The news is good coming from Las Vegas cannabis company Planet 13 (Planet 13 Stock Quote, Chart, News CSE:PLTH), according to analyst Doug Cooper of Beacon Securities.
In an update to clients on Tuesday, Cooper said PLTH is poised to break through the $100-million run rate plateau in the fourth quarter.
Planet 13, a vertically integrated cannabis company which operates its 100,000 square foot Superstore in Las Vegas and owns cultivation and production operations in Nevada, announced preliminary numbers on Tuesday for its third quarter 2020. Revenue for the Q3 was said to be $22.8 million, representing a 110 per cent increase over the previous quarter, while gross margin was listed at about 50 per cent.
Management said the Q3 topline would be the highest in the company’s history and comes due to a rebound in in-store sales with the city’s reopening after COVID-19 along with growth in P13’s home delivery and wholesale businesses. In-store revenue was pegged at $18.5 million compared to $16.3 million, delivery and curbside revenue at $3.4 million compared to $295,000 in Q3 2019 and wholesale and other revenue was listed at $1.0 million compared to $61,000 a year earlier. (All figures in US dollars except where
Planet 13 Superstore (CNW Group/Planet 13)
“Q3 has proven Planet 13’s resilience and strength,” said co-CEO Larry Scheffler in a press release. “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. Along with these operational improvements at the store, our delivery and curbside pickup have expanded our revenue from Las Vegas residents.”
In his update, Cooper noted that while no EBITDA number was given, by its 50 per cent