Vegas Is Back as Planet 13 Holdings Inc Reports Strong Results & Outlook

PLNHF stock 2021Planet 13 Stock Up 582% Year-Over-Year & Just Getting Started

Planet 13 Holdings Inc (CNSX:PLTH, OTCMKTS:PLNHF) continues to be one of the best pot stocks out there, and worth keeping on your radar. PLNHF stock has soared 582% year-over-year and has rallied by an impressive 24% year-to-date.

There are good reasons to remain bullish on Planet 13 stock in 2021. In addition to reporting strong fourth-quarter and full-year results, the company announced that, in March 2021, it set a single-month record for revenue.

Planet 13 Holdings Inc also recently broke ground on its new Orange County “SuperStore.” (Source: “Planet 13 Begins Construction of Orange County SuperStore,” Planet 13 Holdings Inc, February 3, 2021.)

And more Planet 13 SuperStores are on the way.


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PLNHF Stock Overview

If you build it, they will come. Planet 13 owns and operates the largest cannabis store on the planet. The company’s Las Vegas SuperStore, which is the closest legal pot dispensary to the Las Vegas strip, covers 112,000 square feet. (Source: “Corporate Presentation: March 2021,” Planet 13 Holdings Inc, last accessed April 14, 2021.)

According to the most recent data, 74% of Americans prioritize experiences over products. This might help explain why Planet 13 has been expanding the floor space of its massive Las Vegas dispensary.

And it’s not the only place in Las Vegas where you can purchase “Planet 13”-branded cannabis products. In November 2020, the company officially re-opened its second dispensary in the city, “Medizin.” At 4,750 square feet, this dispensary is much smaller than the SuperStore but offers the same kind of experience.

Accounting for nine percent of all legal cannabis retail sales in Nevada, Planet 13 Holdings Inc sells vapes, edibles, pre-rolls, concentrates, and accessories—including its own branded products. The Las Vegas SuperStore also contains a coffee shop, bistro, and pizzeria.

In February 2021, Planet 13 Holdings Inc announced that it had begun construction on its Orange County SuperStore. Expected to open in July, the new cannabis store will mean a new revenue stream for Planet 13 and should result in another year of stellar results. (Source: Planet 13 Holdings Inc, February 3, 2021, op. cit.)

Located in Santa Ana, CA, the Orange County dispensary is the company’s first out-of-state dispensary. It’s strategically located close to Disneyland, South Coast Plaza Mall, Knott’s Berry Farm, and beaches.

Construction of the Orange County location is expected to be completed by the middle of 2021. Once finished, the 55,000-square-foot facility will comprise 16,500 square feet of dispensary space, with additional space reserved for ancillary stores and experiences similar to the Las Vegas SuperStore.

In addition to opening its new Orange County location, Planet 13 expects to win or acquire one or two additional licenses in tier-one markets for SuperStore development. It also plans to open neighborhood stores in attractive markets. (Source: “Corporate Presentation: March 2021,” Planet 13 Holdings Inc, op. cit.)

Over the next five years, Planet 13 Holdings Inc hopes to open eight or more SuperStores in tier-one markets in the U.S. and Canada. If a city is affluent enough to support a major league sports team, Planet 13 is interested in opening a cannabis store. And there are a lot of rich U.S. cities with professional sports teams.

Potential sites include Boston, Chicago, Dallas, Denver, Houston, Miami, Phoenix, Portland, San Francisco, Seattle, and New York City. Potential Canadian sites include Toronto and Vancouver.

Other Recent Developments

  • On October 13, 2020, Planet 13 announced the addition of non-cannabis retail space to its Las Vegas SuperStore
  • On October 19, 2020, Planet 13 announced the expansion of the dispensary floor of its Las Vegas SuperStore
  • On November 5, 2020, Planet 13 announced the closing of a CA$28.8-million bought deal public offering
  • On February 2, 2021, Planet 13 announced the closing of a CA$69.0-million bought deal
  • On March 15, 2021, Planet 13 announced a partnership with “Curaleaf Select” to open shop-in-shop

(Source: “Planet 13 Announces Full Year 2020 Financial Results and Q1 2021 Revenue,” Planet 13 Holdings Inc, April 5, 2021.)

Strong Q4 & 2020 Results

For the fourth quarter ended December 31, 2020, Planet 13 announced that its revenue increased 21.8% year-over-year to $20.1 million. The company also reported gross profit before biological adjustments of $7.5 million (37.1%), versus $9.4 million (57.1%) in the same prior-year period. (Source: Ibid.)

Planet 13 Holdings Inc reported a 2020 fourth-quarter net loss of $2.9 million, compared to a 2019 fourth-quarter net loss of $2.6 million. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $300,000, compared to $2.6 million in Q4 2019.

For fiscal 2020, the company’s revenue was up 10.8%, at $70.5 million. Its gross 2020 profit before biological adjustments was $34.2 million (48.5%), compared to $36.5 million (57.3%) in 2019.

The company reported a full-year net loss of $7.9 million, compared to a net loss of $6.7 million in 2019. Its adjusted EBITDA were $8.9 million, compared to $10.2 million in 2019.

Planet 13 Holdings Inc ended 2020 with $79.0 million in cash, compared to $12.8 million at the end of 2019. Its total assets were $150.0 million in 2020, compared to $62.9 million in 2019. The company’s total liabilities in 2020 were $29.3 million, compared to $21.6 million in 2019.

The future remains bright, too.

“Based on our performance in March 2021, it is clear that Las Vegas is back,” said Larry Scheffler, co-CEO. “We dwarfed our single month record with $9.7 million in revenue in March, and we believe that as more people get vaccinated and Las Vegas continues to open, revenue will continue to increase.” (Source: Ibid.)

Analyst Take

The year 2020 will be remembered for the global pandemic and global recession.

Planet 13 Holdings Inc weathered a perfect storm in that brutal year. Tourism in Las Vegas plunged 55%, but the company’s full-year revenue still climbed, with Planet 13 generating more than $70.0 million while maintaining its record share of the Nevada market.

This year looks like it could be even better for PLNHF stock.