Planet 13 posts a $73.6M loss, but is optimistic about Florida

Planet 13 Holdings Inc. (CSE: PLTH) (OTCQX: PLNH) lost $73.6 million last year, including $14.3 million in the fourth quarter alone, though most of the net loss was from a $46.8 million one-time impairment charge, the Nevada-based company reported this week.

The rest of the losses, Planet 13 said in a press release, could be chalked up to a decline in marijuana sales in its home state market and at its flagship SuperStore in Las Vegas, along with a dip in the cannabis wholesale market in Nevada.

Revenues were down 7.5% both sequentially – to $23 million from $24.8 million in the third quarter – and year-over-year, from $24.8 million in the fourth quarter of 2022. Revenues were also down for the year as a whole, to $98.5 million from $104.6 million in 2022, Planet 13 revealed.

Co-CEO Larry Scheffler said in a press release that the company had demonstrated a “strong quarter,” with 9% of the cannabis retail market share in Nevada and owning “top brands in each category” of marijuana products.

Bob Groesbeck, Planet 13’s other co-CEO, said in the same release that the business “took decisive action” with the acquisition of Florida competitor VidaCann, which sets the multistate operator up to capitalize if a ballot measure to legalize recreational marijuana in the Sunshine State is victorious this coming November.

“We are now well positioned to capture the full benefit of this tremendous opportunity,” Groesbeck said, exuding optimism for the future.

At the close of 2023, Planet 13 had $151.7 million in total assets, including $11.8 million in cash, and $44.1 million in total liabilities. Operating expenses were 79% of the company’s revenues in the fourth quarter and 97% for the year. With the net losses that the company is still clocking, that $11 million in cash doesn’t look like a very big cuchion.

Planet 13 also still has more than $16 million in cash tied up in litigation with El Capitan Advisors and Casa Verde Capital, but the company said in a regulatory filing that it could win back in court at a hearing on April 29.