Planet 13 Holdings Inc (OTCMKTS:PLNHF, CNSX:PLTH) is a cannabis play I’ve been following for a long time. Just last month, I wrote that PLNHF was poised to report record third-quarter results. And one month later, the company did just that.
Thanks to a strong rebound of in-store sales and growth in both wholesale and home delivery, third-quarter revenue soared 110% sequentially to a record $22.8 million.
News of the strong preliminary third-quarter results sent Planet 13 Holdings stock considerably higher. The company is currently trading up $0.27 (+9.16%) at $3.22 per share.
PLNHF shares have been pretty bullish over the course of the last 12 months, too, up 71.5% year-over-year, 50% year-to-date, and 318% since hitting March lows.
The outlook for Planet 13 remains solid, too. The company began wholesaling its own products at the end of June; they’re now in 33 dispensaries across the state. And in 2021, Planet 13 will be opening a new dispensary in Santa Ana, California. It will be the world’s second largest dispensary.
PLNHF Stock Overview
Planet 13 Holdings owns the largest pot dispensary in the world and holds six licenses for the Nevada market.
It re-opened a second dispensary in Las Vegas, Medizin, during the third quarter. It will also open the world’s second largest dispensary in California in the first half of 2021. (Source: “Corporate Presentation, September 2020,” Planet 13 Holdings Inc, last accessed October 7, 2020.)
Planet 13’s Las Vegas SuperStore is the closest dispensary to the heart of the Las Vegas Strip. The SuperStore covers 112,000 square feet, which is equal to the size of two football fields, or the average Walmart.
Accounting for 10% of all cannabis retail sales in the state, Planet 13 sells everything you could ever want, from its own portfolio of branded products to vapes, edibles, pre-rolls, concentrates, and accessories. The Las Vegas SuperStore also contains a coffee shop, bistro, and pizzeria. It boasts an event space for private or corporate events.
During the third quarter, Planet 13 reopened its Medizin dispensary. The Las-Vegas-based dispensary offers the same kind of retail experience as the SuperStore, just on a small scale, at 4,750 square feet.
Planet 13 is expanding its operations outside of Nevada, too.
In May, it announced that a second cannabis SuperStore would open in Santa Ana, CA. But because of COVID-19, the company couldn’t provide a date as to when it would be opening. With the market now rebounding, PLNHF has announced it will be opening its California dispensary in the first half of 2021.
More SuperStores are on the way. Over the next five years, Planet 13 is hoping to open at least eight new SuperStores in North America. Potential locations include Seattle, San Francisco, Chicago, New York City, and Miami, as well as Toronto and Vancouver, Canada.
Record Preliminary Q3 Results
On October 6, Planet 13 announced that preliminary revenue for the third quarter soared 110% sequentially and 13% year-over-year to a record $22.8 million.
During the third quarter, the Las Vegas SuperStore served an average of 1,625 customers per day in-store with an average sale of $124.00. (Source: “Planet 13 Announces Record Preliminary Q3 Revenue,” Planet 13 Holdings Inc, August 31, 2020.)
Delivery and Curbside revenue was $3.4 million, compared to $295,000 in the third quarter of 2019. Whole and Other revenue was $1.0 million, compared with $61,000 in the same prior-year period.
Larry Scheffler, Co-CEO, commented, “Q3 has proven Planet 13’s resilience and strength. We drove an impressive rebound in sales and a record quarter by making operational improvements in response to COVID-19. The improvements have led to higher average tickets and conversion rate despite the reduced tourist traffic.”
Bob Groesbeck, the other Co-CEO of Planet 13, added, “We started wholesaling our products at the end of June, and are rapidly gaining momentum. We are now in 33 dispensaries across the state and expect this to grow as our brands continue to gain name recognition.”
Planet 14 Holdings had great momentum heading into the spring, but then the coronavirus hit. Second-quarter results were underwhelming, but that was to be expected.
Investors weren’t really phased though, as they knew the company’s fortunes would rebound. And they did, with record preliminary third-quarter revenue.
In the first half of 2021, PLNHF will be opening the world’s second largest dispensary, which should also help juice the company’s share price in the new year.