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spk07: Hello, everyone. Welcome to Plan 13 Holdings' 2020 Fourth Quarter Financial Results Conference Call. As a reminder, this conference call is being recorded on April 5th, 2021. At this time, all participant lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. Instructions will be provided at that time for research analysts to queue up for questions. If anyone has any difficulty hearing the conference, please press star zero for operator assistance at any time. I would now like to turn the call over to Mark Kindersma, Head of Investor Relations for Plan 13.
spk03: Thank you. Good afternoon, everyone, and thanks for joining us today. Plan 13 Holdings' fourth quarter 2020 financial results were released today. The press release, financial statements, and MD&A are available on CEDAR, as well as on our website, plan13holdings.com. Before I pass the call over to management, we'd like to remind listeners that a portion of today's discussion includes forward-looking statements. There can be no assurance 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 or 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 CDAR, and we encourage listeners to read those statements in conjunction with today's call. Forward-looking statements in this conference call are made as of the date of this call. Plan 13 disclaims any intention or obligation to update or revise such information except as required by applicable law. It does not assume any liability for disclosure relating to any company mentioned herein. Plan 13 financial statements are presented in U.S. dollars, and the results discussed during the call are in U.S. dollars unless otherwise indicated. On the call today, we have Bob Grosbeck, 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 Plan 13 Holdings Inc.
spk06: Good afternoon, everyone, and thank you for participating in our fourth quarter call. I'm thrilled to announce Vegas is back. While Q4 was muted due to seasonality and increased COVID restrictions during November, December, we've seen strength in Q1 with revenue of $23.8 million, which included An incredibly strong March as Las Vegas continues to open. In March, we generated $9.7 million and had multiple new state single-day records, including five days of over $400,000 in single-day sales. Bob and I have been saying for a while that the pent-up demand for tourism, fun, and all things Las Vegas is overwhelming. As more vaccines get into more arms, we will only see this tidal wave of demand grow. The state recognizes this, and with the number of vaccines now delivered in the US, they plan to open up Las Vegas at 100% capacity on May 1st. This means that after over a year of operating at 50% capacity or less, and having our hands tied behind our back, the Las Vegas Superstore will be back and better than ever. Diving into Q4, sales were impacted by the state's decision to reduce in-store capacity limits from 50% to 25% across the city, resulting in less tourism during what is already a slow period of the year. Despite this additional obstacle, we still generated $20.1 million in Q4 revenue, 21.8% higher than the last year. That revenue was broken down into $15 million from the Superstore, $3.4 million from curbside and delivery, $700,000 in 42 days from our medicine neighborhood dispensary, and $1 million from wholesale and up. The medicine dispensary is quickly building back to where it was pre-shutdown. We've seen consistent month-over-month growth in Q1 and are excited to see how it will perform, especially once the football season starts. Along with medicine, our delivery and curbside have remained strong alternatives for locals, especially those that work on the Strip. We're lucky that we've been able to make changes to both our building and parking lot to facilitate proper traffic throughput, which is impossible for most dispensaries in the state. This is a new and convenient way to shop with cannabis, especially when heading home after a long day at work. Looking at our 2020 results, we took share among local customers through our delivery, curbside pickup, wholesale, and our new medicine store. As the city reopens, We plan to maintain our new hard-won local customers. We're picking up where we left off as the destination of choice for anyone visiting Las Vegas, bringing Planet 13 to new heights. On October 13, we announced the addition of non-cannabis retail, continuing to build out the Superstore. In addition to the non-cannabis retail, we're also doubling the dispensary floor, adding an additional 40 points of sale and another entertainment feature. These upgrades will be ready before the end of Q3 2021. With what we are seeing right now in March and April, the expansion of dispensary floor and extra points of sale are absolutely necessary and can't be done soon enough. As a reminder, we also took time to upgrade all the washrooms and back-end facilities to support a club or consumption lounge. While it's still too early to know what will happen, with the club or lounge where I've seen positive movement on creating appropriate regulations and I want Planet 13 to be a first mover in this new and exciting space. Throughout the year, our team has swiftly and professionally adapted to overcome challenge after challenge. I couldn't be prouder of how they've risen to the occasion. In the year where tourism dropped off approximately 55%, in Las Vegas compared to 2019, We were able to grow revenue and maintain our Las Vegas market share, a true testament to the quality and hard work of each and every member of the Planet 13 team, and I can't thank them enough. With that, I'll pass it off to Dennis to discuss our financials.
spk02: Thanks, Larry. Before I begin, I'd just like to remind everyone that all numbers discussed on today's call are stated in U.S. dollars, unless specifically stated otherwise. So despite the additional COVID-19 challenges we had to overcome in Q4, the company generated $20.1 million in revenue, a 22% increase over the prior year, same period in Q4 2019. Q1 2021 saw a return to sequential growth as Las Vegas started to reopen and the tourists returned. The company generated $23.8 million in revenue in Q1 2021, including $9.5 million in March, our highest month ever. We expect continued strength in Q2 as tourism returns to more normalized levels and the state of Nevada reopens without any capacity restrictions on May 1st. Gross margins in Q4 2020 were 37.1%. With the capacity limits across the strip reduced in November as part of the state's COVID-19 pause, the company had a minimal number of tourist customers during the last two months of Q4 2020. With practically all sales being made to local customers in November and December, who we've always given a 20% discount to, our gross margin was well below the Planet 13 standard. We've seen this gross margin climb back up to the mid and high 50% range in Q1 2021, especially in March as tourism has returned. Our in-house branded products accounted for 23% of in-store sales in Q4 2020. and the company continues to expand its in-house product offering and is moving towards its goal of 50% vertical integration in Nevada. Sales and marketing expense was $621,000 in Q4 2020, down approximately $370,000 from the prior quarter, and this is mainly as a result of lower marketing spend aimed at the tourist customer. We expect this number to return to a more balanced sales mix, targeting both locals and tourists, for the balance of 2021 and expect to see an increase in spend towards the end of Q2 2021 as we support the opening of our Orange County Superstore. The company spent $7.4 million on G&A in Q4 2020, up from $6.2 million in Q3 2020. This increase is related to the reopening of the medicine dispensary and preparing for our Orange County Superstore opening. This trend will trend slightly higher as we fully staff up Orange County prior to opening the store and is expected then to decrease as a percentage of revenue in the second half of the year as we start to generate revenue from our Orange County location. As of December 31st, 2020, the company had a cash balance of $79 million, up from $56.7 million at the end of September 2020. Cash increased over Q3 as a result of a $20.6 million increase block deal financing and $15.9 million from the exercise of warrants, offset by income tax payments of approximately $7 million and $3.8 million spent on CapEx and licenses related to our new cultivation and expansion of the Superstore. Since December 31, 2020, the company closed on an additional $53.8 million in financing, $69 million Canadian in gross proceeds, We also saw the exercise of approximately 2.9 million wants and 99,000 options that were exercised that brought in an additional 10.9 million in cash. As of today, we have approximately 142 million in the bank. And a reminder, our current outstanding growth CapEx commitments are about 8 million for the Orange County Superstore Phase 1 build-out, 2 million for upgrades and additions at the Superstore, and our recently acquired Bell Drive cultivation facility, improvements there. The balance of funds of approximately $132 million is earmarked for accretive M&A and other expansion opportunities. And with that, I will hand the call back over to Bob.
spk04: Thank you, Dennis, and good afternoon, everyone. 2020 was an incredible year full of challenges, but for Planet 13, 2020 was also a year of incredible improvement and accomplishments. We maintained share of tourists, took share of local customers, grew our wholesale and brands, opened our second Las Vegas dispensary, and are well on our way to our first out-of-state expansion. In the wholesale market, we've gone from eight dispensaries at the start of the year to 40 at the end of Q3 to 53 carrying our brands today. We now sell to approximately 70% of all dispensaries in the state. The cultivation facility we purchased in July has been fully transitioned to medicine strains, increasing our supply of premium flour. We are still limiting sales of medicine to just our two stores. It's proven to be a strong draw among locals and helps us attract customers and build basket size. Overall, in-house products were responsible for 23% of in-store sales during the quarter, up from 15% in Q4 2019. We continue to see a steady share of shelf gain based solely on customer demand. Unlike some other dispensaries, we focus and provide significant support for third-party brands sold at the Superstore. Brands recognize the opportunity to build awareness that comes with having shelf space in the Superstore and having our marketing support behind them and are happy to partner with us. You may have noted our recent deal with Curaleaf Select. This is a fine example for the type of demand for brand building in this industry and how Planet 13 is helping to address that need. Outside of Nevada, our Orange County, California Superstore, P13OC as we affectionately call it, is rapidly progressing. We're on track and on budget for our targeted opening around the middle of the year. We've released preliminary rendings of the store on our website, and we encourage everyone to again take a look. Like in Las Vegas, we are building a different level of entertainment and cannabis shopping experience. While a bit smaller than our Las Vegas operation, I think this store might even be better than our Las Vegas store as we've been able to incorporate everything we've learned over the last two years into its design. Leveraging on our experience, building out our delivery system in Nevada, we specially built our delivery hub to service the entire Orange County region in a way that is both efficient and will not impact the in-store experience. This includes separate loading docks that don't impede traffic flow and utilizing our ordering and delivery systems that we developed here in Nevada. We are coming close to our next set of expansions. Adding both new super stores and neighborhood stores to our network in exciting tourist-focused markets remains our focus. We've weathered the storm. and our team has shown remarkable resiliency and execution throughout 2020. I'll echo Larry's earlier comments. Vegas is back. And I'll also add that Orange County is not far behind. The explosion in demand we've seen in March makes me incredibly excited for this year. Our local focused offerings, including our first neighborhood dispensary, our curbside and delivery programs, are all performing well. We are also seeing tourism grow week over week. Our first out-of-state expansion is on track, and we have many more opportunities we're getting close to closing on. We've built one of the best retail experiences in America and have a proven team in place and a balance sheet to go out and bring that experience to more markets across the country. With that, I'd like again to thank everybody for participating on today's call, and I'd now like to ask the operator to end the call.
spk09: Thank you. Sorry to open it for questions.
spk07: Thank you. At this time, we will be conducting a question and answer session. If you'd like to ask your question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Our first question is from Doug Cooper of Beacon Securities. Please proceed.
spk08: Good afternoon, guys. A couple things. Let's hope everybody's well. Let's start off the GNA, $7.4 million in the quarter. Dennis, can you sort of segment that by the superstore itself? How much was earmarked for California and how much for medicine? I'm just trying to get to the to know what the sort of economics, four-wall economics of the superstore were in the quarter and what they may be in Q1 if you hit the gross margin going from 37 to call it mid-50s.
spk02: Yeah, so, Doug, let me get back to you and address that. I'll do a calculation. I'll come back to you.
spk08: Okay. Medicine, 700,000 revenue contribution from medicine. Can you remind us when the doors opened for medicine?
spk04: December, right?
spk09: Well, December 1, Doug.
spk04: Yeah, this is Bob. December 1. We had a soft opening the last week and a half in November, but 12-1 was really the official start date.
spk08: Okay. So you think that can get back up to sort of $15 million range in 2021 kind of thing? Go ahead, Bob.
spk04: No, it's trending very well. I'm very confident we'll get to where we were before we closed that in November of 2018.
spk08: Okay. In terms of basket size, where do we sit in the quarter?
spk02: In Q4 or are you talking Q1, Doug?
spk08: Both, if you have them.
spk02: Yeah, so Q4, obviously local customers – bit of a 20% discount on most things. So we were, we were down from the previous high, like October, we were 124 bucks a ticket. And I think we were down, you know, in that 95 to 99 range in November, December. And we've trended now back up above that in March on a consistent basis. So it's, you know, we're getting back to where we were before and that with the stimulus checks coming in, people showing up again, tourists back, You know, that average ticket has continued to climb through the month of March and into April.
spk08: So let's just assume December, you sort of alluded to the fact that there wasn't many tourists at all, let's say, in the seasonally slow period anyway in Vegas. By the time you moved to March, what percentage of your shoppers were tourists, you think, in March?
spk09: Bob, what do you think on that one?
spk02: I don't have the detail, but I think it's greater than, greater, what, it was approaching 50% probably in March?
spk04: No, no, I was going to say we're right probably in the high 50s right now. Keep in mind, Doug, the town is still officially at 50% of occupancy for the hotel, but the hotel rooms that are open are fully booked.
spk06: And it depends on what day of the week. If we're looking at a Friday-Saturday, we could be 80% tourists during the Friday-Saturday. And then during the week, the locals pick up more, and they tend to shy away when we get so busy on Friday-Saturday. Go ahead, Larry. We're still looking up to two weekends ago. I think on a Friday, we had 4,400 people in one day come through the store.
spk08: Okay. Just to confirm, Dennis, what you said.
spk03: Go ahead.
spk08: So gross margin, whatever it was, 37%, 38% in Q4. You said for Q1 it was up in the mid-50s, or was that for March?
spk02: Yeah, for March we're back up in the mid-to-high 50s, and for Q1 we're well above where we were in Q4.
spk08: Okay. Would it be sort of in the high 40s for the first quarter then?
spk02: Yeah, I think so. I think we'll probably exceed the 50%, but we'll have to see in the next couple of weeks as we work through our Q1 numbers, Doug.
spk08: Okay. And just the vertical integration strategy with the acquisition you made for the cultivation in Las Vegas. Bob, I think you alluded to the fact that it's fully integrated planted with the medicine strains. When would you expect that to start impacting gross margin?
spk04: Well, I think it is now, Doug, as more and more product, you know, rotations come through. I mean, we're seeing that benefit now. And Dennis, I'll let you talk to the specifics, but we're very pleased with the turnaround. It's actually ahead of schedule.
spk02: I was going to say that same thing, Bob. We are now seeing that benefit both through our sales of premium flour, which is growing as a percentage more in line with the rest of the product offerings we have, and then our ability to use all of the trim from that location in our concentrate products and vape pens, etc. So we're very pleased with the progress that we've made at the WVAPES facility. And getting our strains into that building. I mean, part of the problem was that building, you know, certain strains do better in that building than others. And so we've moved all of the strains that are optimized for that type of growing location. And so we're starting to see the yields now trend back well above where they were when we acquired the facility.
spk08: Okay. So the goal of 50% of your own products, when do you think you'll reach that? And you're just talking about Nevada, I'm assuming, not corporately.
spk02: Yeah, exactly. Just talking about Nevada, I mean, I'd like to be there by the sort of end of Q3, going into Q4. It's going to depend. Obviously, the more tourists come back, the more we can push our own products. And so I think as we see the city reopen, we'll see that continue to expand.
spk08: Okay. My final one, just on the lounges, Bob, you sort of alluded to the fact that there might be some movement along those lines. Can you elaborate a little bit?
spk04: Well, the good thing is there are multiple parties at the table now, unlike the last session where really there weren't many, particularly in our sector, engaged in the conversation. So, you know, this is where they make the sausage, and it's not a pretty experience. But I'm encouraged from the standpoint that, again, there are multiple parties at the table looking to find a solution. You know, how gaming comes into the picture, you know, we don't know yet. But I think everyone recognizes now that there's a critical need to fill this void, that, you know, tourists can come into the city and legally purchase products, marijuana products, but can't legally use them anywhere in the strip corridor. And, you know, with that recognition, now there's meaningful talk of a solution. You know, it's a toss-up. I can't predict what's going to happen, but I can tell you we're way ahead this session than we were, you know, two years ago. Okay.
spk09: Great. That's it for me. Thanks, gentlemen.
spk04: Thanks, Doug.
spk09: Good talking to you.
spk07: Thank you. Our next question is from Bobby Burleson of Ken Accord. Please proceed.
spk10: Hey, guys. So just following up on the last question, bills 235 and 341, conversion of medical to adult use and consumption lounges. Any idea when we can expect, you know, incremental updates on the progress, any key milestones that'll kind of let us know that it's getting done in your favor?
spk04: So, Bobby, this is Bob, and I apologize. I missed the first part of your question. I was just turning back into the room. If you could repeat that, I'll be happy to get your answer.
spk10: Yeah, just curious about Bill 235, you know, the conversion of medical to adult use stores, what that looks like for your medicine asset and kind of likelihood of it going through.
spk04: Well, the bill's got a lot of problems. So, you know, kind of put it out there in the most base terms. explanation. It's basically an end around effort to double the number of licenses. And I don't think it's, although there is support, obviously there were sponsors significant enough to get it, get a bill draft out. Um, there's a lot of opposition and I think people now are recognizing her for what it was or what it is. It's just, it's an attempt to end around doing an end around on the licensing process. Whether it's cleaned up and whether, you know, they can bring some sense to the bill, I don't know at this point. But things are moving quickly, I can tell you that. So, you know, we've got a 120-day session here in Nevada. So, you know, they'll either get it done by June or it won't get done. So right now, the last draft I saw of the bill, my prediction is that will not pass. Again, if there's meaningful revision, there might be an opportunity to see something change. come out of it. Okay.
spk10: Great. Thanks. And then in terms of your kind of long-term goal of, you know, maintaining 8% to 10% share of Nevada sales, how should we start thinking about wholesale? You know, that's becoming more meaningful for you. I think you said 53 dispensaries, 76% of the network there in Nevada. You know, how does your share look when you factor in that wholesale presence?
spk04: Dennis, you want to jump in on that?
spk02: Yeah. So, Bobby, so we definitely want to see that grow. Historically, we've been closer to 10%, and obviously COVID hit. The levels are down. We're focused on tourists. I think it comes back. I think we'll be above the 10%, probably 10%, 11%, and then the wholesale component of that will add to it. I mean, we're hoping that it continues to grow. Right now, I think we're running in there about a million people In the quarter, I'd like to see that significantly increase in terms of revenue. So what it looks like in total with the wholesale in it, we haven't given any guidance, but I definitely think we'll get back above the 10% in that 10%, 11% range.
spk10: Okay, great. And then in terms of timing of the home delivery ramp in Orange County, is that launching simultaneously with the store or in short order after the mid-year launch? And, you know, is that a slow ramp or a fast one?
spk04: Yeah, so, Bobby, it's Bob. Our goal, I mean, ideally, I'd like to open delivery before we open the superstore itself. Again, there are a lot of timing issues involved here. But, you know, it may be, you know, at or about the same time we open to the public at the facility itself. But it is going to be a steep ramp up. We're making the commitment to have a fleet fully mobilized and fully staffed. So we're going to come out both barrels blazing as soon as that thing opens.
spk10: And then we have kind of an idea of what could happen with margins as you bring on additional cultivation production through M&A in California. you know, in terms of becoming more competitive with other players in home delivery? Right.
spk04: Well, we're obviously looking at cultivation and production opportunities as well. You know, I think Larry and I and Dennis, we all were of like mind that we want to be an integrated operator there. Obviously that helps us on our margins, but it helps us also control our, you know, our product lines and our supply. So we're, We're actively looking at opportunities over there. And fortunately, there are a lot of stressed assets in both the cultivation and production space to give us an opportunity.
spk09: Okay, great. Thanks. Yep, thanks, Bobby. Great talking to you.
spk07: Thank you. Our next question is from Greg Gibbous from Northland Securities. Please proceed.
spk05: Good afternoon, Larry, Bob, and Dennis. Thanks for taking the questions, and great to hear about the strong March revenue. If I could, I guess, first follow up on the tourist uplift that you saw in Q1. I know this was already talked about, but just a follow up. I think, Bob, you last mentioned you're kind of seeing it at the high 50% right now is where tourists kind of fall. How should we think about that maybe compared to what Q4 was roughly?
spk09: Dennis, you want to jump in first?
spk02: Yeah, so Greg, it's Dennis. I mean, we look at Q4. We had the COVID pause went in, reducing the capacity basically to 25% from 50% early November. So October was trending much like it was for us through, you know, July, August, September, October, we're all, you know, strong months, month over month growth, lots of tourists, still not the same number, uh, that we were getting, you know, pre COVID shutdown. We were sort of, you know, 55,000 a month total customers. And then through November, December, you saw that drop off, uh, substantially from a tourist perspective and the, the local, you know, the local traffic pick up a bit, but over overall, obviously down, uh, and then that, that, COVID pause continued through January, February. Really didn't see the lift come back until March when those stimulus checks started going out and people started coming back to Vegas. And now with the planned reopening and no capacity limits starting May 1st, we expect the floodgates to open and people to come in droves back to the dispensary and back to Vegas. So I think we'll be well north of that 50% as we move towards May. Sure.
spk05: Sounds good. I guess I did want to follow up, just given the strong balance sheet, too. If there is any update you can provide us on the attractive opportunities that you're seeing in other states, have any of these fallen through, or are, I guess, some looking more attractive in any way? I know you can't share too much, but maybe how have multiples or anything you can share, how have they trended during your search process?
spk02: Well, if I, if I look at a couple of the states, you know, obviously there've been some deals announced and I look at Massachusetts in that, you know, the recent, the recent deals they've done in that marketplace in the four to six times EBITDA range. I mean, we're seeing stuff in that ballpark in certain markets, slightly more expensive depending on, on how big the operations are, if they're multi-state, if it's single state, if it's fully vertically integrated. So we're, We're seeing opportunities across the board, as Bob mentioned, in California, both retail production and cultivation in California, vertical in other markets, single-state vertical, multi-state vertical. So it's going to depend on how big the operations are and what the footprint is in terms of what that multiple ultimately looks like. But I'd say for a single-state scenario, we're not far off that four to six times.
spk05: Okay, great. That's helpful. And then I did want to follow up, too, regarding the timeline, I guess, of doubling the dispensary sales floor to add, I think it was 40 points of sale and then an additional entertainment feature. Larry, I think the last call you talked about even, you know, potentially expanding the sales floor further post, you know, once the COVID pandemic is gone and, you know, we're back to 100% versus the 50%, which we now have a little bit of visibility on. But, you know, have any of the updated, you know, plans or thoughts, I guess, into the sales floor expansion, anything you can share there or whether that makes sense regarding the updated timeline?
spk06: Well, we're currently, pre-COVID, we had less than 3% of the tourists coming to our store. As we doubled the size of it, if we had 40 more cash registers, it would be less than 6% of the tourists. And if we doubled that again and got 120 cash registers, which I predict in 18 months we will be looking at again, but that's just me, We'll still have less than 12% of the tourists, and we'll be fully built out with 120 cash registers. With all of that said, that's really the biggest expansion profit margin and growth we're going to see even more than wholesale is the square footage enlargement of the dispensaries. I mean, of the dispensary here in Las Vegas. So I'm expecting huge, huge jumps, and... We've had such good success and it started getting so crazy letting everybody know with internet searches, with people doing Facebooks and social medias after they'd come here and saw their experience. It was just blowing up when COVID started. So we still ask people throughout the store what is going on and where have they heard about us and why did they come to see us? And it's always been either a Google search or a friend told them that they got to see it when they get here. So Again, we're seeing on the Friday and Saturday 100 people in line an hour wait. And again, why we decided to double the size in COVID is because 25 to 30% of our customers, as we're doing our surveys on those weekdays, Friday, Saturday, we're leaving the lines and going to our competitors across the street, which I don't blame them. I hate lines also when I got to wait an hour to get waited on just because we're that jammed up. So. It will keep expanding, but we've got to do it right away to get the people in and out. And, again, we're going to give them another experience. There are actually going to be two more experiences probably by the time it opens for entertainment, again, which more reasons to come and see what's going on next in Las Vegas.
spk05: Okay, great. Yeah, I look forward to any updates there. But, yeah, that makes a lot of sense to me. And I did want to follow up, too, on – and I apologize if you already talked about this – you know, the, your ability to expand wholesale and then contract manufacturing, uh, I guess just in Nevada right now. Um, you know, if you think about, I think you said now selling to 70 dispensaries in Nevada, you know, do you see additional growth coming from going deeper, I guess, with those current dispensaries or maybe adding additional wholesale partners? Where do you think that number can go? And then, um, just to make sure, I guess I had it right. Did you break out revenue for, from wholesale and then, um, the revenue from medicine, even though, like you said, it was one month out of the quarter?
spk02: Yeah, it's Dennis, Greg. We did break out the revenue, and I think in Larry's comments, he talked about it in the MD&A in terms of the $20.1 million for Q4 fully broken out. If you give me a minute, I'll find it back. I'll get it back for you on that front. And what was the second part of your question? Okay.
spk05: Just kind of where you see additional expansion from wholesale coming in.
spk02: Oh, yeah, on the wholesale piece of it, yeah. Yeah, so we're seeing of the dispensaries we're in, there are obviously some that are performing better than others. We're seeing big reorders on the ones that are focused on pushing quality brands, and we're seeing others start to dabble and try the product. So we see some decent success in that throughput selling and the reordering. we have a lot of capacity right now in that production facility. I think we're still only running one shift, and we're able to supply all our own needs and all of the needs of the wholesale channels right now. We have looked at contract manufacturing. We've been approached by brands trying to get into Nevada, and I think it will play well for us if we can offer that contract manufacturing and the dispensary experience for up to 50% of of our revenue. That's sort of our target. So we're kind of leveraging both fronts on that contract manufacturing side. So I think we've got lots of room for expansion there. It's just a slow and steady, don't want to flood the market, want to make sure that the throughput selling is happening across the network. And that seems to be the case with the reorders we're seeing.
spk04: So, hey, Greg, this is Bob. Let me just add to Dennis' comment that we're also expanding the array of products that we're offering out to, uh, to our, uh, retail partners. And so we've got some really exciting additions to our brand portfolio. That'll be hitting the market here over the next 60, 90 days that we think are going to help us, you know, capture additional revenues, obviously.
spk02: And then Greg, just to follow up on that point. So, uh, you know, in Q4, The $20.1 million in revenue, $15 million was from in-store at the superstore. $3.4 million was curbside and delivery. $700,000 was the medicine neighborhood dispensary. That's kind of for 42 days of operations. And then we had $1 million in wholesale in the quarter of Q4.
spk05: Perfect. Appreciate the breakout, Dennis. I will leave it there. Thanks, guys.
spk09: Thanks, Greg.
spk00: Thanks, Greg.
spk07: Thank you. As a reminder, if you would like to ask a question, please press star 1 on your telephone keypad, and a confirmation tone will indicate your line is in the question queue. Our next question is from Adam Altberg of Bank of Montreal. Please proceed.
spk01: Good afternoon, guys, and great numbers slogging through some really challenging times. So congrats to the entire team there. I have a couple of questions for you guys. They have to do more with the macro forward-looking approach. I'm not asking specifically related to Planet 13 forward-looking numbers. It's more so around Vegas and expansion. I know a couple of the other guys touched on it briefly. One item you mentioned, Larry, I think that you said Vegas is slated to reopen to 100% starting May the 1st. And we saw, as an example, the Texas Rangers, I believe, their baseball home opener was open 100% to fans. Is there any guidance, because I'm very interested in that additional Vegas traffic that is, you know, that we've talked about for a while to come both through the football, you know, through the NFL season and, you know, obviously as well through any, for lack of a better term, I guess like live nation. I don't know who controls that stadium in terms of live events, but have they given you any type of guidance in terms of what stadium is capacity and availability might look like, given what you said about May the 1st and 100% opening?
spk04: So, Adam, this is Bob. Larry just stepped out for a second, but let me address that to the extent that I can. The May 1st date, obviously, is a date that we're all excited about, but this is, of course, COVID and things can change on a whim, as we all know. You know, what I'm encouraged about is I'm now seeing venues open, albeit at a reduced capacity, but nonetheless open every day we're seeing announcements. So, you know, I'm seeing shows, for instance, now that are, you know, 25% to 35% capacity, restaurants now at 35% with indoor dining. As far as the larger venues, the stadiums like Allegiant Stadium, for instance, there's a large concert that's been promoted or postponed three times, a country western star who was the inaugural act to open the stadium, and Garth Brooks. So I saw recently, I think it was like a week ago, they put an announcement out and said, yeah, they're going to now have the show on June. But, of course, with an asterisk and a caveat that, you know, the level of attendance is 2%. They just don't know how many people they're going to have in the venue at that time. So we don't really have any guidance beyond that. We're just following the directives from the government officials. And as those events get closer to their active dates, then, of course, we expect to get more information.
spk01: Okay, great. Understood. Second question. The expansion... licenses in the state of Nevada are you or have you guys been able to sort of get a head start on establishing relationships you know with some of some of the competitors or you know not necessarily competitors because obviously it's a large state but with some of the potential parties that might win a license and getting ahead of that to make sure that you're establishing a wholesale relationship or potential wholesale relationship once those are awarded?
spk04: Well, it's a great question. And yes, we are. We're actively courting, you know, current license holders. And we don't know who, you know, who the new licensees will be. But when that materializes, if it does, we'll actively court them as well. And it's a big state geographically, but it's a very small state with respect to our industry. And so we're constantly looking to forge relationships and to expand our wholesale offerings into our competitor stores. You know, it's in flux now, Adam. We don't know. As was mentioned earlier, we've got, you know, a couple bills out here in our current legislature, or the current session, rather, that, you know, are basically attempting to potentially double the number of licenses in the state. You know, we can have a discussion whether that's good or bad, but probably shouldn't right now. But I can assure you, if it's 10, 20, 30, we'll be knocking on their doors. And, you know, it's our expectation because of the quality of our products that we'll be in those facilities.
spk01: Got it. And thank you. Thanks, Bob. And last question, if you are able to. I would, you know, obviously out of all negative situations, you know, afford some opportunities. And, you know, there are some key rec legal states you know, that I know, you know, or that you guys have indicated, I should say, historically are on your sort of hit list. And, you know, out of the pandemic, I'm sure that you guys have been presented with or have seen some prime locations of real estate that have become available due to the pandemic. Now, you know, as far as, you know, some of the other guys, they did touch briefly upon expansion and, What I am seeing is I believe that the window is rapidly closing, especially since, you know, according to the government, you're vaccinating over 20 million people a week. The window is rapidly closing if it hasn't already closed on some of those prime real estate locations. So have you been able to, you know, even lock down or sign LOIs or anything along those lines? to, to acquire some, some key locations, you know, let's say in Illinois or, you know, obviously now New York is going legal. So maybe you can just touch on that topic.
spk04: Well, yeah, Adam, um, we are looking in just about every adult use market, uh, right now, um, for opportunities. And, um, All I can say is we've identified some fantastic real estate. It's another thing now to identify the operator to either bring them into the tent in a merger situation or just an outright purchase. We're doing that. Now that the borders are opening up, we can fly. We can drive. We're actively engaged in those opportunities. We're really excited about... about where things are going. It's just the opposite for me in my experience. I think last week I put 6,000 miles in the air and another 1,000 miles driving looking at deals. And there's plenty of opportunities. And closer to home in California in particular, Adam, there are a lot of assets out there that are now in play that weren't three months ago. So we're spending a lot of time doing a deep dive trying to find opportunities that complement our portfolio. Okay, great.
spk09: All right, thanks very much. Yep, good talking to you. Ladies and gentlemen, this concludes today's conference. You may disconnect your lines at this time.
spk07: Thank you for your participation. Thank you.
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