Planet 13 Holdings (OTC: PLNHF) posted results that missed expectations — showing how waning demand and slimming margins are affecting even the largest operators.
The Nevada-based cannabis superstore delivered its financial results for the second quarter ending June 30, 2021.
Planet 13 reported approximately $28.4 million in revenue during the period, a 15.5% loss versus the same period last year — below analysts’ estimates for revenues of $33 million. Despite that, revenue this quarter is still up from $25.7 million in the previous period.
Planet 13 also reported a second-quarter net loss of $2 million versus a $2.1 million loss sequentially; and a net loss of $5.6 in the same period last year. The earnings were for a loss of once cent per share — beating analyst expectations of a three-cent loss per share — versus a loss of two cents per share in the previous quarter.
“Since we reported Q1 we’ve seen a material weakening of the consumer, which has impacted tourist spending in Nevada,” said Co-CEO Larry Scheffler. “Despite this, we have been able to maintain above 9% retail market share. We are taking steps as a Company to improve resiliency in the face of this new macro dynamic. During the quarter all of our brands held or gained share in Nevada according to research firm Headset. We also launched our owned brands in California for the first time, starting with the widely popular TRENDI products.”
The company posted an adjusted EBITDA of $3 million this quarter versus a loss of $7.2 million
Planet 13 had $52.6 million worth of cash on hand versus $61.6 million this time last year; total assets of $268.4 million as versus $216.8 million in the same period last year; total liabilities of $35.5 million versus $43.1 million in the same quarter last year.
“Q2 was a big quarter for advancing our growth initiatives,” said Co-CEO Bob Groesbeck. We secured our cultivation property in Florida. We entered into an option agreement to purchase the remaining ownership in our subsidiary which holds an Illinois dispensary license. In Nevada, consumption lounge legislation was finally passed and we’ve completed our premium, indoor cultivation expansion and are just waiting on final approvals. Our expansions are progressing according to plan and it is likely that a year from now we will have doubled our retail and state footprint.”