PR Newswire
Record Revenue increased 111% to
$116.0 million
-
Adjusted EBITDA of
$10.8 million
for the third quarter
-
Comparable store sales for the quarter increased 15.7% from prior year
-
Earnings of
$0.07
per share in the quarter
-
2021 Full Year revenue guidance updated to
$435
to
$440 million
-
Adjusted EBITDA guidance updated to
$41 million
to
$43 million
DENVER
,
Nov. 11, 2021
/PRNewswire/ – GrowGeneration Corp. (NASDAQ: GRWG), (“GrowGen” or the “Company”), the largest chain of specialty hydroponic and organic garden centers with 62 locations across 13 states, today reported record third quarter 2021 revenues of
$116.0 million
, versus
$55.0 million
in the same period last year.
The Company also reported third quarter 2021 GAAP net income of approximately
$4.0 million
compared to net income of
$3.3 million
in the same period last year. Diluted earnings per share was
$0.07
compared to a
$0.06
in the same period last year.
Non-GAAP earnings before interest, taxes, depreciation, amortization, and share-based compensation (Adjusted EBITDA) of
$10.8 million
was a record for the third quarter, compared to
$6.6 million
in the same period last year, or
$0.18
per share, versus
$0.13
in the same period last year.
Darren Lampert
, GrowGen’s Co-Founder and CEO stated, “The GrowGen team delivered a strong third quarter, with revenues up 111%, compared to the same period last year in a difficult macro environment. Same-store sales at 25 locations increased 15.7% from the prior year. At present, we have 62 retail locations in operation. We increased our inventory positions across all key product categories to get ahead of price increases, as well as expanded more private label purchases. Our private-label and proprietary products reached approximately 8.7% of our overall sales in the third quarter. Our online marketplace, including Agron, is on pace to reach
$35 million
of revenue for 2021. We opened two locations in the
Los Angeles
metro area, and for next year, we are looking to open 15 to 20 locations.”
Mr. Lampert continued, “In order to position the company for 2022 and beyond, we have made several strategic decisions. Most importantly, we have organized the management team to focus on key deliverables. Over the past several months, we have brought on key leaders including
Paul Rutenis
, our Chief Merchant, to lead the private label and proprietary brands,
Dennis Sheldon
to run technology and supply chain, and
Becky Gebhardt
to run e-commerce and marketing.
Tony Sullivan
, our COO, will lead our effort to open new locations and retail operations. At present, we are on track for full year revenue of
$435
to
$440 million
in 2021.”
Financial Highlights for Third Quarter 2021 Compared to Third Quarter 2020
-
Revenues rose 111% to
$116.0 million
for third quarter 2021, versus
$55.0 million
for the same period last year. -
Same-store sales at 25 locations open for the same period in 2020 and 2021 were
$59.2 million
in third quarter 2021, versus
$51.2 million
for third quarter 2020, a 15.7% increase year over year. - Gross profit margin for third quarter 2021 was 29.4%, compared to 26.5% in the same quarter last year, an increase of 290 basis points.
-
GAAP net income before tax was
$5.1 million
for the third quarter 2021, versus
$5.1 million
for the same period last year. -
Net income was
$4.0 million
, or
$0.07
per share based on a basic share count of 58.5 million. -
Adjusted EBITDA was
$10.8 million
for third quarter 2021, versus
$6.6 million
for the same period last year. - Private label sales, inclusive of Power Si and Char Coir, were 8.7% of revenue, compared to 2.1% for the same period last year.
-
E-commerce revenue, inclusive of Agron revenue, was
$10.5 million
, compared to
$3.9 million
for the same period last year. -
Cash and short-term securities as of
September 30, 2021
was
$93.0 million
.
Financial Highlights for Nine Months Ended
September 30
, 2021
-
Net revenue for the nine months ended
September 30, 2021
, was
$331.9 million
, compared to
$131.4 million
for the nine months ended
September 30, 2020
, an increase of
$200.5 million
or 153%. -
Gross profit margin was 28.7% for the nine months ended
September 30, 2021
compared to 26.7% for the nine months ended
September 30, 2020
. -
Net income for the nine months ended
September 30, 2021
was
$16.9 million
, compared to net income of
$3.8 million
for the nine months ended
September 30, 2020
. -
Adjusted EBITDA for the nine months ended
September 30, 2021
was
$36.3 million
, compared to
$13.4 million
for the nine months ended
September 30, 2020
.
M&A Activity
The Company acquired the following hydroponic equipment and organic garden centers in the third quarter of 2021:
-
In
July 2021
, the Company acquired the assets of Aqua Serene, Inc., an indoor/outdoor garden center with stores in
Eugene
and
Ashland, Oregon
. -
In
July 2021
, the Company purchased the assets of Mendocino Greenhouse & Garden Supply, Inc, a hydroponic garden center located in
Mendocino, California
. -
In
August 2021
, the Company purchased the assets of Commercial Grow Supply, Inc., consisting of a hydroponic and garden supply center serving the
Santa Clarita, California
area. -
In
August 2021
, the Company purchased the assets of Hoagtech Hydroponics, Inc., consisting of a hydroponic and garden supply center serving the
Bellingham, Washington
area.
Expansion Efforts
The Company’s supply chain spans approximately 950,000 square feet of retail and warehouse space across 13 states. The Company opened two greenfield locations in
Los Angeles county
in September, 2021. The Company is scheduled to open a sixth
Oklahoma
location in
Ardmore
in the first quarter of 2022, and is in the process of building several additional locations which will serve as fulfillment centers, including 25,000 square feet in
Phoenix, Arizona
and the recently opened 58,000 square feet in
Medley, Florida
.
Conference Call
The Company will host a conference call today,
November 11, 2021
, at
9:00AM Eastern Time
.
To participate in the call, please dial (866) 269-4260 (domestic) or (647) 792-1241 (international). The conference code is 8073498. This call is being webcast and can be accessed on the Investor Relations section of GrowGen’s website at:
https://ir.growgeneration.com/news-events/ir-calendar
.
A replay of the webcast will be available approximately two hours after the conclusion of the call and remain available for approximately 90 calendar days.
About GrowGeneration Corp:
GrowGen owns and operates specialty retail hydroponic and organic gardening stores. Currently, GrowGen has 62 stores, which include 23 locations in
California
, 8 locations in
Colorado
, 7 locations in
Michigan
, 5 locations in
Maine
, 5 locations in
Oklahoma
, 4 locations in
Oregon
, 3 locations in
Washington
, 2 locations in
Nevada
, 1 location in
Arizona
, 1 location in
Rhode Island
, 1 location in
Florida
, 1 location in
Massachusetts
and 1 location in
New Mexico
.
GrowGen also operates an online superstore for cultivators at growgeneration.com and B2B e-commerce platform, agron.io. and distribution centers. GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers.
Forward Looking Statements:
This press release may include predictions, estimates or other information that might be considered forward-looking within the meaning of applicable securities laws. While these forward-looking statements represent current judgments, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect opinions only as of the date of this release. Please keep in mind that the company does not have an obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. When used herein, words such as “look forward,” “believe,” “continue,” “building,” or variations of such words and similar expressions are intended to identify forward-looking statements. Factors that could cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are often discussed in filings made with the United States Securities and Exchange Commission, available at:
www.sec.gov
, and on the company’s website, at:
www.growgeneration.com
.
Contacts:
Michael Salaman
[email protected]
John Evans
Investor Relations
415-309-0230
[email protected]
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
ITEM 1. FINANCIAL STATEMENTS
GROWGENERATION CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
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The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
GROWGENERATION CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
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Use of Non-GAAP Financial Information
The Company believes that the presentation of results excluding certain items in “Adjusted EBITDA,” such as non-cash equity compensation charges, provides meaningful supplemental information to both management and investors, facilitating the evaluation of performance across reporting periods. The Company uses these non-GAAP measures for internal planning and reporting purposes. These non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income or net income per share prepared in accordance with generally accepted accounting principles.
Set forth below is a reconciliation of Adjusted EBITDA to net income (loss):
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View original content to download multimedia:
https://www.prnewswire.com/news-releases/growgeneration-reports-record-third-quarter-2021-financial-results-301421860.html
SOURCE GrowGeneration
