Planet 13 Holdings Inc. (CSE:PLTH) (OTCQB:PLNHF) reported that revenues rose 36.5% to $$22.8 million for the third-quarter ending September 30, 2020, versus last year’s $16.7 million. The company also delivered a net income of $0.2 million as compared to a net loss of $1.7 million in 2019. The net income before taxes was $3.4 million as compared to a net income of $0.3 million last year for the same time period.
“Our performance in the third quarter exceeded expectations – leading to our highest quarter of sales ever,” said Larry Scheffler, Co-CEO of Planet 13. “Despite being impacted by the ongoing global pandemic and our Las Vegas SuperStore only at 50% capacity, we achieved 36% higher revenue compared to pre-COVID quarters. This is a testament to the strength of Planet 13’s business model and the success of the operational improvements we put in place to ensure our ability to serve local customers. As Las Vegas returns to normal and the economy recovers, we will undertake further strategic initiatives to grow revenue at the SuperStore and increase our sales to local customers in Las Vegas.”
The operating expenses, excluding non-cash compensation expense and depreciation and amortization, was $7.2 million in the quarter versus $6.7 million in 2019, an increase of 7.9%. The third-quarter 2020 adjusted EBITDA of $6.2 million was higher than the 2019 Adjusted EBITDA of $3.4 million.
“In the third quarter, our in-house brands contributed 25% to SuperStore revenue – continuing to be one of the most recognized and fastest-growing segments within the Planet 13 portfolio. In the wholesale market, we saw increasing sales month over month throughout the quarter and continuing into October. Building on this momentum, we continue to invest in cultivation with our recently announced acquisition of a 45,000 square foot facility in Las Vegas, better positioning us to supply wholesale and retail sales within the state,” commented Bob Groesbeck, Co-CEO. “We are excited to leverage our knowledge and experience from Nevada to California, with the opening of our new dispensary in Santa Ana in 2021 – the world’s second-largest dispensary. Planet 13 is well-capitalized, and we look forward to executing on future expansion into other major growth markets.”
Post Quarter Updates
Following the end of the third quarter, the company listed the following highlights in a statement:
- On October 13, 2020, Planet 13 announced the addition of non-cannabis retail space to the Las Vegas SuperStore.
- On October 19, 2020, Planet 13 announced expanding the dispensary floor of the Las Vegas SuperStore.
- On October 19, 2020, Planet 13 announced a CDN$20 million bought deal public offering.
- On October 20, 2020, Planet 13 announced an upsize to bought deal public offering to CDN$25 million.
- On November 5, 2020, Planet 13 announced the closing of a CDN$28.8 million bought deal public offering.
- On November 20, 2020, Planet 13 announced opening the Medizin dispensary.