Planet 13 Holdings Inc (NASDAQ:PLTH) Q1 2020 Earnings Conference Call - Final Transcript

Jun 01, 2020 • 05:00 pm ET


Planet 13 Holdings Inc (NASDAQ:PLTH) Q1 2020 Earnings Conference Call - Final Transcript


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Hi, everyone. Welcome to Planet 13 Holdings 2020 First Quarter Financial Results Conference Call. As a reminder, this conference call is being recorded on June 1, 2020. [Operator Instructions]

And, I would like to turn the call over to Mark Kuindersma, Head of Investor Relations for Planet 13. Please go ahead, sir.

Mark Kuindersma

Thank you. Good afternoon, everyone, and thank you for joining us today. Planet 13 Holdings' first quarter 2020 financial results were released today. The press release, financial statement and MD&A are available on SEDAR as well as on our website,

Before I pass the call over to management, we'd like to remind listeners that portions of today's discussion include forward-looking statements. There can be no assurances that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results of the events predicted in these forward-looking statements may differ materially from actual results or events. Risk factors that could affect results are detailed in the Company's public filings that are made available on SEDAR and we encourage listeners to read those statements in conjunction with today's call.

The forward-looking statements in this conference call are made as of the date of this call. Planet 13 disclaims any intention or obligation to update or revise such information except as required by applicable law and does not assume any liability for disclosure relating to any company mentioned herein. Planet 13's financial statements are presented in U.S. dollars and the results discussed during this call are in U.S. dollars, unless otherwise indicated. On the call today, we have Bob Groesbeck, Co-Chairman and Co-CEO; Larry Scheffler, Co-Chairman and Co-CEO; and Dennis Logan, CFO.

I will now pass the call over to Larry Scheffler, Co-Chairman and Co-CEO of Planet 13 Holdings.

Larry Scheffler

Thanks, Mark. Good afternoon, everyone, and thank you for participating in our first quarter call. Even in the current environment, Planet 13 has demonstrated in this position as one of the top operators in Nevada. On our last call, we were all reacting to daily developments in the fight against COVID-19, and I'd like to commend the Planet 13 team for their hard work and execution on the pivot to a delivery-only model.

While we generated almost no revenue in the last two weeks of March, as all operators were adjusting to the new reality and significant uncertainty, the team quickly turned a negative into both short-term financial results and further long-term competitive advantages. We have strengthened and grown our local customer base, increased the profile of our in-house brands and broaden our delivery capabilities, thereby enhancing the long-term growth profile of the SuperStore. And we achieved this while maintaining balance sheet strength and setting the Company not only for short-term through the phased reopening of the SuperStore alongside all Nevada, but also for future growth in California.

In Q1, the SuperStore generated $16.8 million in revenue and $2.5 million in EBITDA, is