Planet 13 Holdings Inc (NASDAQ:PLTH) Q4 2019 Earnings Conference Call - Final Transcript

Apr 14, 2020 • 05:00 pm ET

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Planet 13 Holdings Inc (NASDAQ:PLTH) Q4 2019 Earnings Conference Call - Final Transcript

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Q & A
Analyst
Operator

Thank you. Ladies and gentlemen, we will now take questions from research analysts. [Operator Instructions] Your first question comes from Bobby Burleson from Canaccord. Please go ahead.

Analyst
Bobby Burleson

Hey guys, thanks for taking my questions. So I'm just curious, you guys obviously are heavily tourist dependent, but there are some folks that are struggling that weren't as financially sound and prepared to shift to delivery. So if we combine the ramp of your delivery business, what you're doing there, with maybe some competitors going under, what's the mix that you think you could ultimately drive to do in terms of local customers in your revenue mix longer term? And that's assuming a worst-case scenario of maybe some large conventions continuing to get canceled this year and continued pressure on that tourist traffic?

Executive
Dennis Logan

Hey, Bobby. It's Dennis. I'll take the first part of it, and then the other guys can jump in. I go back to what Larry had said, it's really going to depend on how long the shutdown lasts and how ingrained we become as part of that local customer experience in terms of buying and getting that home delivery. For our $100,000 a day target that we think we're relatively close to achieving, it will be about 1,000-plus deliveries a day, averaging in that sort of $100-plus range. I mean we found that the home delivery model, there's definitely a higher dollar value ordering per ticket, compared to in the SuperStore.

If we can capture and keep half of those people, I think it bumps up our -- it's 500 people a day on the 2,000 to 2,500 that we can do in the SuperStore, that we were doing in the SuperStore in the kind of January to March 17 period. It's a significant chunk of the local traffic. And I think if the other dispensaries, some other dispensaries in the Valley go under and people are used to that online ordering where we're delivering 24 hours a day, I think we'd be able to keep more than 50% of those customers.

Analyst
Bobby Burleson

Great, thanks.

Analyst
Operator

[Operator Instructions] And the next question is from Greg Gibas from Northland. Please go ahead.

Analyst
Greg Gibas

Hey guys good afternoon. thanks for taking my questions. In terms of delivery, would you say that you now have the capacity, I guess, to satisfy all the order or all the demand that are placed these days with the 29 vehicles, I think you said, operating 24/7? And then I just wanted to touch on -- has the shutdown impacted your in-house brand production in any way?

Executive
Robert Groesbeck

Well, let me jump in, Greg. Thanks, this is Bob. So let me address the latter part of your question first, with respect to production. No, that hasn't impacted us at all. In fact, we were working full shifts to build up the inventory in anticipation of when the crisis lifts and we reopen. But we've been very fortunate that we've -- now we have an opportunity to move those brands through the