Planet 13 Holdings Inc. (CSE: PLTH) (OTCQB: PLNHF), a leading vertically-integrated Nevada cannabis company, recently announced financial results for the first quarter of 2019. The company reported first-quarter earnings of $13.8 million or a 286% increase from $3.6 million in revenues from the same period of last year.
Larry Scheffler, Co-CEO of Planet 13 commented, “The SuperStore is now drawing over 3,000 visitors per day and generating over $5 million a month in revenue. For the first two months of 2019, the SuperStore accounted for ~8.2% of all cannabis dispensary sales in Nevada.1 We fully expect to generate additional growth at the SuperStore as we continue to execute awareness initiatives and complete Phase II of our expansion plan, which is designed to generate strong traffic and incremental, high-margin revenue. Other companies are starting to recognize the value of being in our store. In Q1 we made a focused effort to start leveraging the Planet 13 Las Vegas SuperStore’s unique sales platform, highlighted by our exclusive launch of the Tyson Ranch brand.”
The first quarter Planet 13 had gross profits of $7.4 million (or a gross margin of 53.8%) compared to the 45.7% gross margin in the first quarter of 2018. The company also reported an increase in operating and non-cash expenses of 388% or $5.9 million compared to $1.2 million for the same period of last year. The increase in operating costs translates to a net loss of $1.2 million from a net profit of $12,741 for the first quarter of last year.
First Quarter 2019 Results Highlights:
- Q1 Revenue of $13.8 million with the SuperStore now generating over $5 million per month in revenue.
- SuperStore accounted for ~8.2% of all cannabis dispensary revenue for Nevada in January and February.
- Q1 EBITDA of $1.3 million and Cash Flow from Operating Activities of $2.6 million.
- Well capitalized with $20 million to complete all growth initiatives.
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