The results include a $40 million write-off and some cash burn.
Planet 13 Holdings Inc. (CSE:PLTH) (OTCQX:PLNH) reported a slight decrease in revenue for the third quarter ending Sept. 30, as the company prepares to branch out into new markets.
The Las Vegas-based retailer known for its sprawling SuperStore saw its revenue drop by 3.3% to $24.8 million, down from $25.6 million in the same period last year. The modest decline comes amid a competitive Nevada market that has been seeing wider contraction since last year.
Despite the drop in revenue, Planet 13 reported a gross profit margin rise, buoyed by reduced product discounting. Gross profit for the quarter was $11.1 million or 44.7% of revenue, compared to $10.6 million or 41.2% in the previous year.
The company’s co-CEOs, Larry Scheffler and Bob Groesbeck, remain optimistic about the future, citing nearly one in ten cannabis purchases in Nevada can be traced back to their operations. They also highlighted the impending expansion into Illinois and Florida as potential growth catalysts.
“This quarter, we took major steps towards executing the strategic goals we laid out at the start of the year and becoming a major player in Florida,” Groesbeck said in a statement. “We are also getting very close to opening our Illinois dispensary and completing the next phase of exciting new additions to the SuperStore. I’m very excited for 2024 when all our hard work starts to pay dividends.”
Operating expenses surged to $55.1 million from $15 million, a stark increase attributed to a one-time, non-cash impairment charge of $39.6 million, leading to a net loss of $46 million, significantly higher than the $6.3 million loss from the same quarter in the previous year.
Adjusted EBITDA was $200,000, shrinking from $500,000 year over year.
The balance sheet also showed a reduction in cash from $52.4 million to $36.8 million and a decrease in total assets from $233.6 million to $178.4 million. Total liabilities showed a minor decrease.
Planet 13’s strategic moves during the quarter included a definitive agreement to acquire Florida-based VidaCann, a domicile change to Nevada, and the change in its OTC trading symbol.
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