- Approximately 695,000 customers served in 2019 at an average ticket above $90 for preliminary unaudited revenue of ~$63 million
- Preliminary unaudited gross margin of ~57% for 2019, with margin expansion throughout the year – 50% in Q4 2018 compared to between 56% and 59% in Q4 2019
- Served an average of ~1,900 customers per day in 2019 at an average ticket greater than $90 – well above the expectations set for the market at the time of Planet 13's public listing
- Planet 13 served 1,757 customers per day in December at a record average ticket of USD$100
All figures are reported in United States dollars ($) unless otherwise indicated
LAS VEGAS, Jan. 9, 2020 /CNW/ - Planet 13 Holdings Inc. (CSE: PLTH) (OTCQX: PLNHF) ("Planet 13" or the "Company"), a leading vertically-integrated Nevada cannabis company, today announced a strong end to 2019. The Company served ~695,000 customers in 2019 at an average ticket of above $90 from the Planet 13 Las Vegas Cannabis Entertainment Complex (the "SuperStore"). In addition, although Q4 is a seasonally slower period in Las Vegas with lower overall tourist traffic, Planet 13 successfully delivered a record average ticket of $100 during December.
"At the time of our public listing, we targeted 2,000 customers per day on average and a USD$75 ticket. In 2019 we far exceeded these targets, with ~1,900 customers per day and an average ticket of above $90 driving approximately $63 million in preliminary unaudited revenue, making Planet 13 one of the largest revenue generators in the public cannabis sphere," said Bob Groesbeck, Co-CEO of Planet 13. "We hosted over one million visitors during the year, while setting the foundation for continued growth in 2020 and beyond, with a new restaurant and customer-facing production facility opened in Q4 at the SuperStore and with our Santa Ana location on track to open in the 2nd half of 2020."
Mr. Groesbeck continued, "The SuperStore is Nevada's highest-grossing and most influential dispensary with over 9% of Nevada's total sales in 20191. It is proving to be a powerful engine both for third party and in-house brand launches and development. During the year, we introduced four new in-house brands – two vapes and two edibles – that have been well received by customers. These brands drive revenue and margin at the SuperStore, we see an even bigger opportunity to leverage the growing value of these brands into third-party dispensaries in Nevada. As we look forward to 2020, we are focused on increasing our share of the Nevada market by entering the wholesale market, opening the first SuperStore concept store outside of Nevada, and by continuing to focus on innovation and providing the highest quality cannabis entertainment and shopping experience on the planet."
During Q4, Planet 13 opened Phase II of the SuperStore adding a restaurant in late October and customer-facing production facility in November to what was already the top-grossing publicly reporting dispensary in America2. Planet 13's two new edible brands Dreamland Chocolates and HaHa gummies were introduced at MJ Biz with purchases starting December 10th, 2019.
About Planet 13
Planet 13 (www.planet13holdings.com) is a vertically integrated cannabis company based in Nevada, with award-winning cultivation, production and dispensary operations in Las Vegas - the entertainment capital of the world. Planet 13's mission is to build a recognizable global brand known for world-class dispensary operations and a creator of innovative cannabis products. Planet 13's shares trade on the Canadian Stock Exchange (CSE) under the symbol PLTH and OTCQX under the symbol PLNHF.
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward looking-statements relate to, among other things, future expansion plans.
These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: final regulatory and other approvals or consents; fluctuations in general macroeconomic conditions; fluctuations in securities markets; expectations regarding the size of the Nevada cannabis market and changing consumer habits; the ability of the Company to successfully achieve its business objectives; plans for expansion; political and social uncertainties; inability to obtain adequate insurance to cover risks and hazards; and the presence of laws and regulations that may impose restrictions on cultivation, production, distribution and sale of cannabis and cannabis related products in the State of Nevada; and employee relations. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
The Company is indirectly involved in the manufacture, possession, use, sale and distribution of cannabis in the recreational and medicinal cannabis marketplace in the United States through its subsidiary MM Development Company, Inc. (or "MMDC"). Local state laws where MMDC operates permit such activities however, these activities are currently illegal under United States federal law. Additional information regarding this and other risks and uncertainties relating to the Company's business are contained under the heading "Risk Factors" in the Company's annual information form dated April 30, 2019 filed on its issuer profile on SEDAR at www.sedar.com.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
2 Company fillings
SOURCE Planet 13 Holdings Inc.
For further information: LodeRock Advisors Inc., Planet 13 Investor Relations, [email protected], (416) 519-2156 ext. 2230; Robert Groesbeck or Larry Scheffler, Co-Chief Executive Officers, [email protected]