Planet 13 Is A One-Hit Wonder So Far

Based on this information, I have projected revenue of about $5.16 million for November and December and $5.67 million for January. Based the January number, growth from a year ago was 39%. This has been driven by 18% growth in customers and 18% growth in spending per customer. Some of that spend includes the food offerings.

Total revenue for Q4 looks to be $15.94 million which would be a sequential decline of almost 5%. In the prior quarter, sequential growth was just 1%. It appears that growth has maxed out.

Looking at the last reported quarter, Q3, the company reported annual growth of 241% as it posted revenue of $16.7 million. The prior period was based on sales from its prior location. Q4, at $15.94 million, which is below the consensus of $17.67 million (2 analysts), would represent growth of 93%, which demonstrates the slowing growth theme.

In Q3, the company reported a gross margin of 59%, which is impressive. Note, though, that full year guidance, revealed in January at 57%, suggests that the Q4 margins were lower than Q3 and likely just below 57%. For January, it reported it to be in a range of 56-59%.

Operating income in Q3 was $462K and $2.08 million year-to-date. The company includes some non-operating expenses, and, after taxes, reported a net loss of $1.7 million in Q3 and $3.86 million year-to-date.

Due to substantial expansion in income tax payable by $5.5 million, operating cash flow for the first three quarters was an impressive $7.6 million, but this should wash out as the company makes the tax payments. The company spent $12.7 million in the first three quarters on capital expenditures.

The balance sheet had $18.1 million cash at the end of Q3, a function of a capital raise in 2018. Current assets o $28.9 million are almost twice the value of the current liabilities, suggesting good liquidity.Balance sheet equity was $41.1 million, all tangible. There is debt of less than $1 million.

Note that the company has changed auditors recently, moving from MNP to Davidson & Company.


At 11/25, the company had 136.75 million shares outstanding, including 81.5 million common shares and 55.2 million Class A shares, which can be converted into common one-for-one under certain conditions. It also had 753K options at a weighted average of C$1.17 and 15.9 million warrants, including 10.7 million at or below C$1.40, 524K at C$3.00 and 4.79 million at C$3.75. Finally, the total share-count should include 4.45 million RSUs.

View single page >> |

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Subscribe to the monthly  more

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.