Planet 13 Endures Market Shifts with Strategic Expansion Amidst Revenue Decline

LOS ANGELES— Planet 13 Holdings Inc., a vertically-integrated, multi-state cannabis operator, announced its financial results for the third quarter ending September 30, 2023. According to the U.S. Generally Accepted Accounting Principles (GAAP), Planet 13’s revenues saw a slight downturn, with a 3.3% decrease from the same quarter in the previous year, amounting to $24.8 million.

Larry Scheffler, co-CEO, expressed pride in the team’s capacity to sustain market share in a highly competitive environment, with nearly one-tenth of cannabis sales in Nevada traced back to the company’s dispensaries. He also pointed to the strong performance of the brand, which continued to be among the top in their categories, and looked forward to expansion into Illinois and Florida.

Bob Groesbeck, co-CEO, highlighted major strides towards the company’s strategic goals, including imminent operations in Florida and Illinois, as well as forthcoming enhancements to the SuperStore, with expectations set high for the year 2024.

Financially, the company reported a gross profit increase to $11.1 million, or 44.7%, attributed to reduced product discounting at retail. However, total expenses surged by 268.4% to $55.1 million, including a substantial non-cash impairment of $39.6 million. Excluding this impairment, total expenses amounted to $15.4 million. The net loss for the quarter was significant at $46.0 million, largely due to the one-time impairment charge. Adjusted EBITDA was $0.2 million, a decline from $0.5 million in the previous year.

The balance sheet indicated a cash reserve of $36.8 million, with total assets at $178.4 million and total liabilities at $41.5 million.

The quarter was marked by significant developments:

• Acquisition agreement with VidaCann announced on August 28, 2023.
• Completion of a domicile change to Nevada and a new OTC trading symbol on September 15, 2023.
• Announcement of the Dazed! Consumption Lounge on November 1, 2023.

The company’s complete financial details are accessible on the SEC’s website and on Planet 13’s investor relations page, where the Management’s Discussion and Analysis (MD&A) and financial statements can be found.

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