Planet 13 Hldgs Inc Nev

Greetings, and welcome to today's Planet 13 fourth quarter 2023 conference call. At this time, all participants have been placed on a listen-only mode. We will be conducting a question and answer session with the covering analyst after the presentation. It is now my pleasure to turn the floor over to your host, Mark Kunderspa, Head of Investor Relations. Mark, the floor is yours.

Thank you. Good afternoon, everyone, and thanks for joining us today. Planet 13 Holdings fourth quarter 2023 financial results were released today. The press release of the company's annual report 10-K, including the MB&A and financial statements, are available on the SEC website, EDGAR, and CDAR+, as well as on our website, plant13holdings.com. Before I pass the call over to management, I'd like to remind listeners that portions of today's discussion include forward-looking statements. The forward-looking statements in this conference call are made as of the date of this call. There can be no assurances that such information will prove to be accurate. whether management's expectations or estimates of future developments, circumstances, or results will materialize. Risk factors that could affect results are detailed in the company's public filings that are made available with the United States Securities and Exchange Commission and on CDAR+. We encourage listeners to read those statements in conjunction with today's call. As a result of these risks and incentives, the results or events predicting these forward-looking statements may differ materially from actual results or events. In addition, we will refer to both GAAP and non-GAAP financial measures. For information regarding our non-GAAP financial measures and reconciliation to the most directly comparable GAAP measures, please refer to today's press release posted on our website. Plan 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 Larry Scheffler, co-chairman and co-CEO, Bob Grosbeck, co-chairman and co-CEO, and Dennis Logan, CFO. We'll now pass the call over to Larry Scheffler. Larry?

Good afternoon, everyone, and thanks for participating in our fourth quarter call. The fourth quarter was challenging for Planet 13, driven primarily by non-operating and macro factors. In response, we focused on what we can control, performances in our core states, reinforcing our balance sheet and cost control and efficiency across the organizations. Looking at our core states, in Nevada, we generated $16.7 million in retail revenue, approximately 9% of the state's total retail sales. This retail performance in Nevada compares to $18 million in Q3 2023 and $18 million in Q4 2022. The revenue decline is almost completely driven by reduction in total market sales and over 20% average unit price compression throughout the year. In terms of market share, the factor we have the best control over, Q4 2023, was slightly higher than both of the other two comparative periods. In addition to the $16.7 million in retail sales, we generated $1.8 million from wholesale and other revenue in Nevada, compared to $2.2 million the previous quarter and $2 million in Q4 2022. This came as we shifted more of our product towards vertical sales through our own dispensaries, where we capture better margins and have faster cash conversion. We also have taken a very disciplined approach to extending products on credit to dispensaries, restricting our sales to other dispensaries with strong balance sheets. According to BDSA, we have the five most branded sales of any company in Nevada, and had top individual brands across almost every product category. This includes the number one chocolate brand in Dreamland, a top four beverage brand in Haha Beverages, a top 10 candy brand in Haha Gummies, and a top 10 vape, concentrate, and flower brands. In total, Nevada's combined retail and wholesale was $18.5 million in Q4 2023. Once again, this is a 9% share of the retail market in a top five brand portfolio, representing a very strong competitive position in the state, great operating leverage, and a very valuable base that many MSOs would be envious of. Completing their operations in Nevada, California generated, I'm sorry, complementing operations in Nevada, California generated $4.1 million in revenue, with $2.3 million from retail and $1.8 million from wholesales. We also officially opened our Illinois dispensary on December 4th. We're seeing that dispensary turn to build its reputation, following, and sales with sequential growth every month since it has been open. It will take some time for us to fully ramp up that store to its full potential and optimize our operations in a new state. We now have active operations in three states, generating a total of 23 million in revenue and a positive adjusted EBITDA. This is an attractive foundation that we will build on in the coming quarters. Looking ahead, our goal is to maintain sales level and market share in Nevada and California in the face of continued pricing compression. In both markets, our primary focus is on efficiency and cost control to generate better profitability. In Illinois, we will continue to tweak our operations to drive increased sales. With that, I'll pass it over to Dennis to discuss our financials.