2019 Revenue of $63.6 million

SuperStore accounted for 9.1% of all Nevada cannabis dispensary revenue in 2019 1

2019 EBITDA of $9.9 million

Q1 2020 Revenue of $16.6 million

All figures are reported in United States dollars ($) unless otherwise indicated

LAS VEGAS, April 14, 2020 /PRNewswire/ - Planet 13 Holdings Inc. (CSE: PLTH) (OTCQB: PLNHF) ("Planet 13" or the "Company"), a leading vertically-integrated Nevada cannabis company, today announced financial results for the three-month and twelve-month periods ended December 31, 2019. Planet 13's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS").

Larry Scheffler, Co-CEO of Planet 13 commented, "Over the past month, businesses across the country have had to quickly adjust to the reality of COVID-19 related restrictions, and Planet 13 has been no exception. While this has impacted our day to day operations, we are approaching this challenge as an opportunity to deliver safe and responsible cannabis to our community. When cannabis dispensaries in Nevada were told to close, we pivoted to focus on our delivery business, and in only 25 days we've ramped our delivery service from five to twenty-eight vehicles and have shifted our customer mix from 15% local area residents, to 100%."

Mr. Scheffler continued, "While tourism will continue to be a strong driver of our business when things return to normal, this is a unique opportunity for us to build a strong local base and gain lasting market share as we become a fixture in the daily lives of Las Vegas Valley residents.

Bob Groesbeck, Co-CEO added, "We opened Phase II of the SuperStore during Q4 and are pleased to report that as projected, it drove increased traffic, customer engagement, and higher average ticket. Through Q4, a seasonally slow period, we delivered $16.5 million in revenue. During Q1 2020, we saw the network effect of Phase II accelerate, resulting in ~$16.6 million in revenue, a 20% increase compared to Q1 of 2019, despite effects of COVID-19 starting in the middle of March. In addition, the customer-facing production facility is fully ramped up and we have begun to offer Planet 13's portfolio of in-house brands to select third-party dispensaries on a wholesale basis."

Financial Highlights – Q4 – 2019

Operating Results

All comparisons below are to the quarter ended December 31, 2018, unless otherwise noted

Revenues were $16.5 million as compared to $8.3 million , an increase of 99.8%

as compared to , an increase of 99.8% Gross profit before biological adjustments was $9.4 million or 57.1% as compared $4.2 million or 50.5%, an increase of 125.8%

or 57.1% as compared or 50.5%, an increase of 125.8% Operating expenses, excluding non-cash compensation expense, were $7.1 million as compared to $5.8 million , an increase of 21.5%

as compared to , an increase of 21.5% Net loss before taxes of $0.9 million as compared to a net loss of $2.2 million

as compared to a net loss of Net loss of $2.6 million as compared to a net loss of $3.1 million

as compared to a net loss of Adjusted EBITDA of $2.5 million as compared to Adjusted EBITDA loss of $1.5 million

Balance Sheet

All comparisons below are to December 31, 2018, unless otherwise noted

Cash of $12.8 million as compared to $19.4 million

as compared to Total assets of $62.9 million as compared to $44.9 million

as compared to Total liabilities of $21.6 million as compared to $7.0 million

Financial Highlights – Full Year – 2019

All comparisons below are to the year ended December 31, 2018, unless otherwise noted

Revenues were $63.6 million as compared to $21.2 million , an increase of 200.4%

as compared to , an increase of 200.4% Gross profit before biological adjustments was $36.5 million or 57.3% as compared $10.7 million or 50.4%, an increase of 242.0%

or 57.3% as compared or 50.4%, an increase of 242.0% Operating expenses, excluding non-cash compensation expense, were $26.8 million as compared to $11.3 million , an increase of 137.5%

as compared to , an increase of 137.5% Net income before taxes of $0.5 million as compared to a net loss of $8.4 million

as compared to a net loss of Net loss of $6.7 million as compared to a net loss of $10.7 million

as compared to a net loss of Adjusted EBITDA of $9.9 million as compared to Adjusted EBITDA loss of $367,874

Q4 Highlights and Recent Developments

For a more comprehensive overview of these highlights and recent developments, please refer to Planet 13's Management's Discussion and Analysis of the Financial Condition and Results of Operations for the Three and Twelve Months Ended December 31, 2019 (the "MD&A").

On November 1, 2019 , Planet 13 announced the opening of the customer-facing production facility.

, Planet 13 announced the opening of the customer-facing production facility. On December 16, 2019 , Planet 13 announced winning U.S. Market Leader Award in Retail at MJBizCon.

, Planet 13 announced winning U.S. Market Leader Award in Retail at MJBizCon. On January 20, 2020 , Planet 13 announced the opening of dosist™ shop-in-shop wellness experience.

, Planet 13 announced the opening of dosist™ shop-in-shop wellness experience. On March 19, 2020 , Planet 13 announced offering expanded online ordering and delivery services.

, Planet 13 announced offering expanded online ordering and delivery services. On March 23, 2020 , Planet 13 announced 24-hour delivery service.

, Planet 13 announced 24-hour delivery service. On April 13, 2020 , Planet 13 announced termination of Santa Ana acquisition.

Results of Operations (Summary)

The following tables set forth consolidated statements of financial information for the three-month and twelve-month period ending December 31, 2019 and December 31, 2018. For further information regarding the Company's financial results for these periods, please refer to the Company's interim financial statements for the period ended December 31, 2019 together with the MD&A, available on Planet 13's issuer profile on SEDAR at www.sedar.com and the Company's website https://www.planet13holdings.com.

Adjusted EBITDA





NV Cannabis Ops

Consolidated









NV Cannabis Ops

Consolidated











Three Months

Three Months

Three Months





Year

Year

Year







Ended

Ended

Ended

Percentage

Ended

Ended

Ended

Percentage



Dec-31-2019

Dec-31-2019

Dec-31-2018

Change

Dec-31-2019

Dec-31-2019

Dec-31-2018

Change EBITDA





























Profit (loss) before taxes

1,416,699

(914,960)

(2,215,973)

(58.7%)

8,422,424

542,664

(8,433,501)

(106.4%) Add back:































Biological asset adjustments

351,080

351,080

(108,084)

(424.8%)

480,181

480,181

(192,908)

(348.9%) Non-cash share based payments

-

1,694,370

367,497

361.1%

-

4,822,787

2,601,233

85.4% Depreciation and amortization

900,278

900,278

332,925

170.4%

2,845,464

2,845,464

400,116

611.2% Depreciation included in COGS

157,030

157,030

141,205

11.2%

286,987

286,987

258,788

10.9% Interest and non-operating expense (income)

329,291

329,291

(24,928)

(1421.0%)

954,960

954,960

4,998,398

(80.9%)

































EBITDA 3,154,378

2,517,089

(1,507,358)

267.0%

12,990,016

9,933,043

(367,874)

2800.1% Margin 19.1%

15.2%

(18.2%)





20.4%

15.6%

(1.7%)





























Expressed in USD$ Three Months

Three Months





Year

Year







Ended

Ended

Percentage

Ended

Ended

Percentage



Dec-31-2019

Dec-31-2018

Change

Dec-31-2019

Dec-31-2018

Change Revenue





















Revenues, net of discounts 16,540,324

8,279,698

99.8%

63,595,036

21,166,755

200.4% Cost of Goods Sold (7,098,908)

(4,097,973)

73.2%

(27,139,658)

(10,507,200)

158.3% Gross Profit, Before Biological Asset Adjustment

9,441,416

4,181,725

125.8%

36,455,378

10,659,555

242.0% Gross Profit Margin %

57.1%

50.5%





57.3%

50.4%



Realized fair value amounts included in COGS (695,361)

207,865

(434.5%)

(1,500,965)

(1,726,685)

(13.1%) Unrealized fair value gain on growth of biological assets 344,281

(99,781)

(445.0%)

1,020,784

1,919,593

(46.8%) Gross profit

9,090,336

4,289,809

111.9%

35,975,197

10,852,463

231.5% Gross Profit Margin %

55.0%

51.8%





56.6%

51.3%





























Expenses





















General and Administrative 5,351,056

4,682,652

14.3%

20,269,839

9,583,376

111.5% Sales and Marketing 1,730,301

1,147,636

50.8%

6,539,483

1,702,841

284.0% Depreciation and Amortization 900,278

332,925

170.4%

2,845,464

400,116

611.2% Share based payments 1,694,370

367,497

361.1%

4,822,787

2,601,233

85.4% Total Expenses 9,676,005

6,530,710

48.2%

34,477,573

14,287,566

141.3%

























Income (Loss) From Operations (585,669)

(2,240,901)

(73.9%)

1,497,624

(3,435,103)

(143.6%)

























Other (Income) Expense:























Interest Expense, net

404,332

5,674

7026.0%

1,306,876

241,860

440.3% Realized Foreign Exchange gain (loss)

-

(4,376)

(100.0%)

(1,141)

37,879

(103.0%) RTO acquisition costs

-

-

na

-

4,702,604

na Other expense (income)

(75,041)

(26,226)

186.1%

(350,775)

(80,285)

336.9% Loss on settlement of accounts payable (Note 13(d))

-

-

na

-

96,340

na Total Other Expense (Income)

329,291

(24,928)

(1421.0%)

954,960

4,998,398

(80.9%)

























Income (loss) for the period before tax

(914,960)

(2,215,973)

(58.7%)

542,664

(8,433,501)

(106.4%) Provision for income tax (current and deferred)

1,662,213

889,066

87.0%

7,200,997

2,290,203

214.4% (Loss) for the period

(2,577,173)

(3,105,039)

(17.0%)

(6,658,333)

(10,723,704)

(37.9%)

























Other Comprehensive Income (Loss)





















Items that may be reclassified subsequently to profit/loss





















Foreign exchange translation adjustment (24,607)

(666,969)





195,213

(802,920)



Net Comprehensive (Loss) for the period (2,601,780)

(3,772,008)





(6,463,120)

(11,526,624)



(Loss) per share for the period























Basic and fully diluted loss per share

($0.02)

($0.02)





($0.05)

($0.11)





























Weighted Average Number of Shares Outstanding























Basic and fully diluted

135,888,982

128,166,081





134,074,476

95,997,827





Outstanding Shares

As at the date of this report, the Company had 84,451,832 common shares and 55,232,940 class A convertible, restricted voting shares issued and outstanding for a total of 139,684,772 shares outstanding. There were 558,507 options issued and outstanding of which 250,834 have fully vested. There were 13,572,238 warrants outstanding and 3,454,589 RSU's outstanding of which nil RSUs had fully vested as at the date of this report.

Conference Call

Planet 13 will host a conference call on Tuesday, April 14, 2020 at 5:00 p.m. EST to discuss its third quarter financial results and provide investors with key business highlights. The call will be chaired by Bob Groesbeck, Co-CEO, Larry Scheffler, Co-CEO, and Dennis Logan, CFO.

CONFERENCE CALL DETAILS

Date: April 14, 2020 | Time: 5:00 p.m. EST

Participant Dial-in: 416-764-8688 or 1-888-390-0546

Replay Dial-in: 416-764-8677 or 1-888-390-0541

(Available for 2 weeks)

Reference Number: 656850

Listen to webcast: https://bit.ly/3dUnQs2

Financial Measures

There are measures included in this news release that do not have a standardized meaning under generally accepted accounting principles (GAAP) and therefore may not be comparable to similarly titled measures and metrics presented by other publicly traded companies. The Company includes these measures because it believes certain investors use these measures and metrics as a means of assessing financial performance. EBITDA (earnings before interest, taxes, depreciation and amortization) is calculated as net earnings before finance costs (net of finance income), income tax expense, and depreciation and amortization of intangibles and is a non-GAAP financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.

About Planet 13

Planet 13 (www.planet13holdings.com) is a vertically integrated cannabis company based in Nevada, with award-winning cultivation, production and dispensary operations in Las Vegas - the entertainment capital of the world. Planet 13's mission is to build a recognizable global brand known for world-class dispensary operations and a creator of innovative cannabis products. Planet 13's shares trade on the Canadian Stock Exchange (CSE) under the symbol PLTH and OTCQX under the symbol PLNHF.

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward looking statements relate to, among other things, future expansion plans.

These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: final regulatory and other approvals or consents; fluctuations in general macroeconomic conditions; fluctuations in securities markets; expectations regarding the size of the Nevada and California cannabis markets and changing consumer habits; the ability of the Company to successfully achieve its business objectives; plans for expansion; political and social uncertainties; inability to obtain adequate insurance to cover risks and hazards; and the presence of laws and regulations that may impose restrictions on cultivation, production, distribution and sale of cannabis and cannabis related products in the States of Nevada and California; and employee relations. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

The Company is indirectly involved in the manufacture, possession, use, sale and distribution of cannabis in the recreational and medicinal cannabis marketplace in the United States through its subsidiary MM Development Company, Inc. ("MMDC") in Nevada. Local state laws where MMDC operates permit such activities however, these activities are currently illegal under United States federal law. Additional information regarding this and other risks and uncertainties relating to the Company's business are contained under the heading "Risk Factors" in the Company's annual information form dated April 30, 2019 filed on its issuer profile on SEDAR at www.sedar.com.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION











Expressed in United States Dollars

As at

As at



December 31,

December 31,



2019

2018 Assets







Current Assets







Cash

$ 12,814,712

$ 19,364,086 HST receivable

16,544

101,831 Inventories

5,474,004

5,322,111 Biological assets

514,526

915,177 Prepaid expenses and other current assets

3,694,272

1,391,278 Total Current Assets

22,514,058

27,094,483









Property and equipment

30,211,154

17,256,484 Right of use assets

9,478,733

- Long-term deposits and other assets

694,601

594,339



40,384,488

17,850,823 Total Assets

$ 62,898,546

$ 44,945,306









Liabilities







Current Liabilities







Accounts payable

$ 864,260

$ 1,720,721 Accrued expenses

1,910,046

1,306,145 Income taxes payable

7,015,606

2,187,109 Notes payable - current portion

884,000

884,000 Current portion of lease liabilities

-

14,459 Total Current Liabilities

10,673,912

6,112,434









Long -term lease liabilities

10,522,377

29,768 Deferred rent

-

427,508 Other long-term liabilities

28,000

- Deferred tax liability

379,665

470,856



10,930,042

928,132 Total Liabilities

21,603,954

7,040,566









Shareholders' Equity







Share capital

51,986,849

42,460,824 Restricted share units

4,119,485

2,800,335 Warrants

5,961,091

7,046,843 Option reserve

399,439

305,890 Accumulated other comprehensive loss

(607,707)

(802,920) Deficit

(20,564,565)

(13,906,232) Total Shareholders' Equity

41,294,592

37,904,740 Total Liabilities and Shareholders' Equity

$ 62,898,546

$ 44,945,306

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)



















Expressed in United States Dollars

Year

Year

Three months

Three months



Ended

Ended

Ended

Ended



December 31,

December 31,

December 31,

December 31,



2019

2018

2019

2018 Revenue















Revenues, net of discounts

$ 63,595,036

$ 21,166,755

$ 16,540,324

$ 8,279,698 Cost of Goods Sold

(27,139,658)

(10,507,200)

(7,098,908)

(4,097,973) Gross Profit before fair value asset adjustment

36,455,378

10,659,555

9,441,416

4,181,725 Realized fair value amounts included in inventory sold

(1,500,965)

(1,726,685)

(695,361)

207,865 Unrealized fair value gain on growth of biological assets

1,020,784

1,919,593

344,281

(99,781) Gross Profit

35,975,197

10,852,463

9,090,336

4,289,809

















Expenses















General and Administrative

20,269,839

9,583,376

5,351,056

4,682,652 Sales and Marketing

6,539,483

1,702,841

1,730,301

1,147,636 Depreciation and Amortization

2,845,464

400,116

900,278

332,925 Share-Based Compensation Expense

4,822,787

2,601,233

1,694,370

367,497 Total Expenses

34,477,573

14,287,566

9,676,005

6,530,710

















Income (Loss) From Operations

1,497,624

(3,435,103)

(585,669)

(2,240,901)

















Other Expense:















Interest expense, net

1,306,876

241,860

404,332

5,674 Realized foreign exchange (gain) loss

(1,141)

37,879

-

(4,376) Other income

(350,775)

(80,285)

(75,041)

(26,226) RTO listing expense

-

4,702,604

-

- Loss on settlement of accounts payable

-

96,340

-

- Total Other Expense

954,960

4,998,398

329,291

(24,928)

















Income (Loss) before income taxes

542,664

(8,433,501)

(914,960)

(2,215,973) Provision for tax - current

7,292,188

2,198,295

1,402,227

909,107 Provision for tax - deferred

(91,191)

91,908

259,986

(20,041) Net (loss) for the Year

$ (6,658,333)

$ (10,723,704)

$ (2,577,173)

$ (3,105,039)

















Other Comprehensive Income (Loss)

































Foreign exchange translation gain (loss)

195,213

(802,920)

(24,607)

(666,969) Net Comprehensive (Loss) for the Year

$ (6,463,120)

$ (11,526,624)

$ (2,601,780)

$ (3,772,008)

















Loss per share for the Year















Basic and diluted loss per share

($0.05)

($0.11)

($0.02)

($0.02)

















Weighted Average Number of Common Shares Outstanding















Basic and Diluted (Note 17)

134,074,476

95,997,827

135,888,982

128,166,081



















CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS











Expressed in United States Dollars

Year

Year



Ended

Ended



December 31,

December 31,



2019

2018 Operating activities







Net (loss) for the year

$ (6,658,333)

$ (10,723,704) Add (deduct) non-cash items:







Share based payments

4,822,787

2,601,233 Depreciation and amortization

3,607,286

988,768 Write-off of fixed assets duringthe year

82,882

- Loss on settlement of accounts payable

-

96,340 Share base payment to Carpincho shareholders on RTO

-

4,040,637 Deferred tax liability

(91,191)

91,908 Realized foreign exchange (gain) loss

-

37,879 Interst on lease liabilities

1,367,759

- Non-cash interest expense

-

217,048









Net change in non-cash working capital







HST receivable

85,287

(101,831) Inventories

(151,893)

(3,618,283) Biological assets

400,651

152,129 Prepaid expenses and other assets

(2,426,866)

(1,299,148) Long term deposits and other assets

(100,262)

(594,339) Accounts payable

(856,462)

798,672 Accrued expenses

603,902

250,318 Income tax payable

4,828,497

927,433 Other liabilities

28,000

427,508 Cash flow provided by (used in) operating activities

5,542,044

(5,707,432)









Investing activities







Net cash acquired on acquisition

-

34,678 Purchase of property, plant and equipment

(16,061,582)

(13,313,401) Cash flow used in investing activities

(16,061,582)

(13,278,723)









Financing activities







Issuance of common shares and warrants

-

40,381,022 Issuance of shares on warrant and option exercises

5,030,185

2,374,253 Share and warrant issuance costs

-

(4,032,025) Principal and interest payment on lease liabilities

(1,247,546)

(11,845) Cash flow provided by financing activities

3,782,639

38,711,405









Net increase (decrease) in cash

(6,736,899)

19,725,250 Cash at beginning of the year

19,364,086

451,869 Effect of foreign exchange on cash

187,525

(813,033) Cash at end of the year

$ 12,814,712

$ 19,364,086

SOURCE Planet 13 Holdings Inc.

Related Links

https://planet13lasvegas.com/

