Earnings Analysis: Planet 13, Ascend Wellness And TILT Holdings

In a recent analyst note, Jonathan DeCourcey from Viridian Capital Advisors provided an update on companies Planet 13, Ascend Wellness and TILT Holdings. DeCourcey covered the companies’ earnings and business strategies and offered a market outlook analysis for Nevada, Massachusetts, and Pennsylvania.

Planet 13: Tourist Spending Continues to Drag Results

Planet 13 (OTC: PLNHF) reported Tuesday its financial results for the second quarter of 2022. The firm informed revenues of $28.4M and $3M adjusted EBITDA, below Viridian’s estimates of $37M in revenues and $7.8M adjusted EBITDA. Although customer gains in California are showing major signs of improvement, the firm has been struggling with macro challenges and reduced tourism spending in Las Vegas. 

Viridian updated its forecasts to reflect persistent macro pressure rating Planet 13 as “Buy” while maintaining the price target at $3.70.

In Nevada, reduced customer spending is “a ticket size drag in the quarter,” DeCourcey said. “This is particularly impactful to Planet 13 as the company traditionally benefits from inflated ticket values with tourists seeking out premium goods at the Superstore and because Q2/22 and Q3/22 were supposed to be the time frame in which Planet 13 disproportionately benefited from a post-COVID rebound in Las Vegas travel. The rebound does not appear to be occurring with tourism YTD. Spending is down on inflationary pressures. Despite the tourism pressure, Planet 13 maintained its leading position in Nevada both overall (>9% of sales in the state) and with specific house brands,” De Courcey said.

“The continued leading brand position in Nevada, particularly as

Earnings Analysis: Planet 13, Ascend Wellness And TILT Holdings on Benzinga