Planet 13 Announces Q4 2024 Financial Results
-- Q4 2024 Revenue of $30.3 million
-- Q4 2024 Net loss of $26.4 million, which included a non-cash impairment
loss of $18.9 million
-- Q4 2024 Adjusted EBITDA of $0 million
All results are reported in United States dollars ($) unless otherwise indicated.
LAS VEGAS, March 26, 2025 (GLOBE NEWSWIRE) -- Planet 13 Holdings Inc. (CSE: PLTH) (OTCQX: PLNH) ("Planet 13" or the "Company"), a leading vertically-integrated cannabis company, today announced its financial results for the three-month and twelve-month periods ended December 31, 2024. Planet 13's financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles ("GAAP").
"In 2024, despite industry-wide price compression, we remained disciplined in executing our key priorities--expanding our retail footprint, scaling operations, and strengthening our product portfolio and brand equity. These strategic moves position Planet 13 to navigate competitive pressures," stated Larry Scheffler, Co-CEO of Planet 13.
"As we move into 2025, our focus is on maximizing productivity and efficiency across our footprint. We are taking decisive steps to enhance per-store performance, optimize retail and wholesale operations, and streamline corporate costs--all with a clear goal of strengthening margins and creating a more resilient, high-performing business," said Bob Groesbeck, Co-CEO of Planet 13.
Financial Highlights -- Q4 -- 2024
Operating Results
All comparisons below are to the quarter ended December 31, 2023, unless otherwise noted
-- Revenues were $30.3 million as compared to $23.0 million, an increase of
31.8%. The increase in revenue was driven by the addition of Florida.
-- Gross profit was $13.1 million or 43.2% as compared to $11.0 million or
47.8%. The decline in gross margin was driven by industry wide price
compression and targeted discounting in Florida.
-- Operating expenses were $35.8 million, including $18.9 million in
non-cash impairment loss as compared to $18.1 million, an increase of
97.5%
-- Net loss of $26.4 million, including $18.9 million in non-cash impairment
loss as compared to a net loss of $14.3 million
-- Adjusted EBITDA of $0.0 million as compared to Adjusted EBITDA of
$1.3 million. Adjusted EBITDA margin was lower due to lower gross margin
performance.
Financial Highlights -- Full Year 2024
Operating Results
All comparisons below are to the full year ended December 31, 2023, unless otherwise noted
-- Revenues were $116.4 million as compared to $98.5 million, an increase of
18.2%. The increase in revenue was driven by the addition of Florida.
-- Gross profit was $56.1 million or 48.2% as compared to $44.8 million or
45.5%. Gross margin increased due to the addition of higher margin
revenue from Florida, that more than offset the impact of price
compression for the full year.
-- Total expenses were $82.6 million as compared to $95.2 million, a
decrease of 13.3%. This included a one-time, non-cash $21.3 million
impairment. Excluding impairment, total expenses were $61.3 million.
-- Net loss of $47.8 million as compared to a net loss of $73.6 million.
-- Adjusted EBITDA of $3.5 million as compared to Adjusted EBITDA of $2.4
million, an increase of 49.2%.
Balance Sheet
All comparisons below are to December 31, 2023, unless otherwise noted
-- Cash of $25.4 million as compared to $17.3 million -- Total assets of $206.7 million as compared to $151.7 million -- Total liabilities of $94.0 million as compared to $44.1 million
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, 2024 (the "MD&A").
-- On October 15, 2024, Planet 13 announced opening its dispensary in Port
Orange, Florida.
-- On December 18, 2024, Planet 13 announced its dispensary in Gulf Breeze,
in the Pensacola Metropolitan Area of Florida.
-- On December 26, 2024, Planet 13 opened its dispensary in Panama City,
Florida.
-- On March 3, 2025, Planet 13 announced a significant recovery of funds
related to El Capitan.
Results of Operations (Summary)
The following table sets forth consolidated statements of financial information for the three-month and full-year periods ended December 31, 2024 and December 31, 2023.
(Figures in millions For the Three Months Ended For the Full Year Ended
------------------------------------ ------------------------------------
December December December December
and % change based 31, 31, 31, 31,
on these figures) 2024 2023 change 2024 2023 change
--------------------- --------- --------- ------ --------- --------- ------
Total Revenue $ 30.3 $ 23.0 31.8% $ 116.4 $ 98.5 18.2%
Gross Profit $ 13.1 $ 11.0 19.2% $ 56.1 $ 44.8 25.2%
Gross Profit % 43.2% 47.8% -9.6% 48.2% 45.5% 5.9%
Operating Expenses $ 35.8 $ 18.1 97.5% $ 82.6 $ 95.2 -13.3%
Operating Expenses % 118% 79% 70.9% 96.7% -26.6%
Net Loss Before
Provision for Income
Taxes $ (25.1) $ (10.3) 144.4% $ (35.6) $ (62.1) -42.6%
Net Loss $ (26.4) $ (14.3) 85.4% $ (47.8) $ (73.6) -35.1%
Adjusted EBITDA $ (0.0) $ 1.3 -100.4% $ 3.5 $ 2.4 49.2%
Adjusted EBITDA Margin
% 0.0% 5.6% 3.0% 2.4%
The Company's Annual Report on Form 10-K for the year ended December 31, 2024, is available on the SEC's website at www.sec.gov or at https://investors.planet13.com/overview/default.aspx. The Company's Management Discussion and Analysis for the year and the accompanying financial statements and notes are available under the Company's profile on SEDAR+ and on its website at https://investors.planet13.com/overview/default.aspx
This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.
Conference Call
Planet 13 will host a conference call on March 26, 2025 at 5:00 p.m. ET to discuss its fourth quarter and full year financial results and provide investors with key business highlights, strategy and outlook. The call will be chaired by Bob Groesbeck, Co-CEO, Larry Scheffler, Co-CEO, and Dennis Logan, CFO.
CONFERENCE CALL DETAILS
Date: March 26, 2025 | Time: 5:00 p.m. ET
Call Registration Link:
https://pinconnect.conferenceconsole.com/PINConf?cb0c4e6a-f291-4fa4
-858a-98834141ab84
Non-GAAP Financial Measures
There are financial measures included in this press release that are not in accordance with GAAP and therefore may not be comparable to similarly titled measures and metrics presented by other publicly traded companies. These non-GAAP financial measures should be considered as supplemental to, and not a substitute for, our reported financial results prepared in accordance with GAAP. The Company includes EBITDA and Adjusted EBITDA because it believes certain investors use these measures and metrics as a means of assessing financial performance. EBITDA is calculated as net income (loss) before interest, taxes, depreciation and amortization, and Adjusted EBITDA is calculated as EBITDA before share-based compensation, the change in fair value of warrants and one-time non-recurring expenses.
The following table presents a reconciliation of net income (loss) to Adjusted EBITDA for each of the periods presented:
Reconciliation of
Non-GAAP Adjusted
EBITDA
(Figures in millions For the Three Months Ended For the Full Year Ended
-------------------------------- --------------------------------
December December December December
and % change based 31, 31, 31, 31,
on these figures) 2024 2023 change 2024 2023 change
--------------------- ---------- ---------- ------ ---------- ---------- ------
Net Loss $ (26.4) $ (14.3) 85.4% $ (47.8) $ (73.6) -35.1%
Add impact of:
Interest expense $ (0.0) $ (0.1) -72.5% $ 0.3 $ (0.2) -270.2%
Provision for income
taxes $ 1.3 $ 4.0 -67.3% $ 12.2 $ 11.5 5.7%
Depreciation and
amortization $ 2.3 $ 2.0 15.5% $ 8.9 $ 8.2 8.3%
Depreciation included
in cost of goods
sold $ 1.3 $ 1.0 32.4% $ 3.3 $ 2.4 35.2%
------ ------ ------ ------
EBITDA $ (21.6) $ (7.5) 189.6% $ (23.1) $ (51.7) -55.2%
Impairment of goodwill
and other
intangibles $ 18.9 $ 7.2 $ 21.3 $ 46.8
Change in fair value
of warrants $ - $ - 0.0% $ - $ (0.0) -100.0%
Professional fees
expensed related to
M&A activities $ 0.8 $ 0.2 244.7% $ 1.2 $ 2.6 -54.8%
Professional fees
expensed related to
SEC Domestic Issuer
Form 10 filing and
U.S Domestication
from British Columbia
to Nevada $ - $ - 0.0% $ - $ 0.3 -100.0%
Expenses related to El
Capitan Matter $ 0.6 $ - 0.0% $ 2.6 $ - 0.0%
Loss related to
discontinued Planet
13 Florida Inc
operations $ - $ - 0.0% $ 1.5 $ 1.8 -18.6%
Share-based
compensation and
related premiums $ 1.3 $ 1.3 0.0% $ 0.2 $ 2.5 -92.8%
------ ------ ------ ------
Adjusted EBITDA $ (0.0) $ 1.3 -100.4% $ 3.5 $ 2.4 49.2%
About Planet 13
Planet 13 under the symbol PLTH and are quoted on the OTCQX under the symbol PLNH. To learn more, visit planet13.com and follow Planet 13 on X @ShopPlanet13 and on Instagram @planet13official_.
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. All statements, other than statements of historical fact, are forward-looking statements and are often, but not always, identified by phrases such "plans", "expects", "proposed", "may", "could", "would", "intends", "anticipates", or "believes", or variations of such words and phrases. In this news release, forward-looking statements relate to the Company's fourth quarter 2024 financial performance and expectations for future financial performance. Such forward-looking statements reflect what management of the Company believes, or believed at the time, to be reasonable assumptions and accordingly readers are cautioned not to place undue reliance upon such forward-looking statements and that actual results may vary from such forward-looking statements. These assumptions, risks and uncertainties which may cause actual results to differ include, among others, those assumptions, risks and uncertainties discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K/A for the year ended December 31, 2024 and any of the Company's subsequent periodic reports filed with the U.S. Securities and Exchange Commission at www.sec.gov and on SEDAR+ at www.sedarplus.ca. Forward-looking statements contained herein are made only as to the date of this press release and we assume no obligation to update or revise any forward-looking statements should they change, except as required by law. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
For further inquiries, please contact:
LodeRock Advisors Inc., Planet 13 Investor Relations
mark.kuindersma@loderockadvisors.com
Bob Groesbeck and Larry Scheffler
Co-Chief Executive Officers
ir@planet13lasvegas.com
PLANET 13 HOLDINGS INC.
Interim Condensed Consolidated Balance Sheets
(In United States Dollars)
December 31, December 31,
2024 2023
------------- -------------
ASSETS
Current Assets:
Cash $ 23,384,493 $ 11,831,008
Restricted Cash 2,050,584 5,450,584
Accounts Receivable 1,473,156 1,195,927
Inventory 22,821,994 15,760,648
Asset held for sale - 9,000,000
Prepaid Expenses and Other
Current Assets 4,568,816 4,072,820
------------ ------------
Total Current Assets 54,299,043 47,310,987
Property, Plant and Equipment 63,511,423 67,551,697
Intangible Assets and Goodwill 48,763,931 15,253,797
Right of Use Assets - Operating 38,229,399 20,054,369
Long-term Deposits and Other Assets 1,033,758 869,853
Deferred Tax Asset 896,525 706,038
------------ ------------
TOTAL ASSETS $ 206,734,079 $ 151,746,741
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Current:
Accounts Payable $ 7,421,921 $ 2,850,922
Accrued Expenses 7,285,415 6,097,641
Income Taxes Payable 139,480 4,782,538
Notes Payable - Current Portion 8,681,684 884,000
Operating Lease Liabilities 1,818,588 674,594
------------ ------------
Total Current Liabilities 25,347,088 15,289,695
Long-Term Liabilities:
Operating Lease Liabilities 46,448,666 25,271,706
Other Long-term Liabilities 1,220,722 33,000
Uncertain Tax Positions 19,321,475 -
Deferred Tax Liability 1,682,207 3,511,559
------------ ------------
Total Liabilities 94,020,158 44,105,960
Shareholders' Equity
Common Stock, no par value,
1,500,000,000 shares authorized,
325,163,800 issued and outstanding
at December 31, 2024 and 223,317,270
at December 31, 2023 - -
Preferred Stock, no par value,
50,000,000 shares authorized, 0
issued and outstanding at December
31, 2024 and 0 at December 31, 2023 - -
Additional Paid-In Capital 368,821,339 315,951,343
Deficit (256,107,418) (208,310,562)
------------ ------------
Total Shareholders' Equity 112,713,921 107,640,781
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 206,734,079 $ 151,746,741
============ ============
PLANET 13 HOLDINGS INC.
Interim Condensed Consolidated Statements of Operations
and Comprehensive Loss
(In United States Dollars, except share amounts)
December 31,
---------------------------
2024 2023
------------ ------------
Revenues, net of discounts $116,408,966 $ 98,505,170
Cost of Goods Sold (60,298,520) (53,682,026)
----------- -----------
Gross Profit 56,110,446 44,823,144
Expenses:
General and Administrative 51,171,892 42,421,172
Sales and Marketing 5,805,721 5,368,473
Lease Expense 4,511,997 3,105,996
Impairment loss 21,275,942 46,846,866
Depreciation and Amortization 8,860,921 8,180,465
----------- -----------
Total Expenses 91,626,473 105,922,972
----------- -----------
Loss From Operations (35,516,027) (61,099,828)
----------- -----------
Other Income (Expense):
Interest income (expense), net (333,082) 195,722
Foreign exchange gain (loss) (14,942) 3,653
Change in fair value of warrant
liability - 18,127
Provision for stolen funds - (2,000,000)
Other Income, net 257,438 807,023
----------- -----------
Total Other Income (Expense) (90,586) (975,475)
----------- -----------
Loss Before Provision for Income Taxes (35,606,613) (62,075,303)
----------- -----------
Provision For Income Taxes
Current Tax expense (14,210,082) (9,868,881)
Deferred Tax recovery (expense) 2,019,839 (1,664,574)
----------- -----------
(12,190,243) (11,533,455)
----------- -----------
Net Loss and Comprehensive Loss $(47,796,856) $(73,608,758)
=========== ===========
Loss per Share
Basic and diluted loss per share $ (0.16) $ (0.33)
=========== ===========
Weighted Average Number of Shares of
Common Stock
Basic and diluted 292,166,589 221,964,287
=========== ===========
PLANET 13 HOLDINGS INC.
Interim Condensed Consolidated Statements of Cash
Flows
(In United States Dollars)
December 31, 2024 December 31, 2023
------------------- -------------------
CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Net loss $ (47,796,856) $ (73,608,758)
Adjustments for items not
involving cash:
Share based compensation 180,308 2,520,407
Non-cash lease expense 2,047,680 4,974,644
Depreciation 13,414,690 12,147,052
Change in fair value of
warrant liability - (18,127)
Deferred tax recovery (1,829,352) 2,024,355
Lease incentive
amortization (109,109) (109,902)
Loss on impairment of
fixed assets 11,885,063 -
Loss on impairment of ROU
assets 3,239,536 -
Loss on impairment of
intangible assets 6,151,343 46,846,866
Loss on disposal of
intangible assets 762,091 -
Loss on disposal of
property and equipment 78,563 180,177
--------------- ---------------
Finders shares issued in
VidaCann acquisition 750,000 -
Shares issued for SDC
settlement - 728,700
(11,226,043) (4,314,586)
Net Changes in Non-cash
Working Capital Items 17,469,125 (3,589,711)
Repayment of lease
liabilities (1,032,183) (4,141,221)
--------------- ---------------
Total Operating 5,210,899 (12,045,518)
--------------- ---------------
FINANCING ACTIVITIES
Taxes paid in lieu of share
issuance - RSUs (45,833) (267,529)
Proceeds from public
share issuance, net of
share issuance costs 9,862,207 -
Net Cash From VidaCann
Acquisition 911,715 -
VidaCann Acquisition-Cash
Component (4,000,000) -
--------------- ---------------
Total Financing 6,728,089 (267,529)
--------------- ---------------
INVESTING ACTIVITIES
Purchase of property, plant
and equipment (12,044,412) (8,393,593)
Proceeds from sale of fixed
assets 21,000 64,878
Purchase of licenses - (866,250)
Proceeds from sale of
licenses 8,237,909 -
Total Investing (3,785,503) (9,194,965)
--------------- ---------------
NET CHANGE IN CASH DURING
THE YEAR 8,153,485 (21,508,012)
CASH AND RESTRICTED CASH
Beginning of Year 17,281,592 38,789,604
--------------- ---------------
End of Year $ 25,435,077 $ 17,281,592
=============== ===============
(END) Dow Jones Newswires
March 26, 2025 16:30 ET (20:30 GMT)
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