DENVER, Aug. 02, 2017 (GLOBE NEWSWIRE) -- GrowGeneration Corp. (OTCQB:GRWG), (“GrowGen” or the “Company”) one of the largest specialty retail hydroponic and organic gardening stores, selling to both the commercial and home cannabis markets, with currently 13 locations, today reported financial results for its 2nd quarter ended June 30, 2017.
2nd Quarter 2017 Financial Highlights:
Revenue of $4.1 million, up 116% compared to revenue of $1.9 million for the 2nd quarter of 2016
Same-store sales increased 54% from $1.7 million for the 2nd quarter of 2016 to $2.6 million for the 2nd quarter of 2017
Adjusted EBITDA for the quarter ended June 30, 2017 totaled $7,167 compared to adjusted EBITDA of $(33,447) for the quarter ended June 30, 2016
Net loss of $340,375, inclusive of $344,932 in non-cash depreciation and share-based compensation expense, compared to a net loss of $143,681 in the 2nd quarter of 2016, inclusive of $109,121 in non-cash depreciation and share-based compensation expense.
The Company had $2.2 million in cash as of June 30, 2017
Darren Lampert, Co-Founder and CEO, said, “This was a record quarter of sales for GrowGeneration, clearly demonstrating the demand for our products and the scalability of our business as we continue our expansion plans. The 2nd quarter was the sixth consecutive quarter of sequential revenue growth. Our company has reached a financial goal of break-even at this level of revenue.”
“We have successfully opened and assimilated into our portfolio, our Denver South, Las Vegas and Trinidad stores, as well as the newly acquired stores in Seattle and Sonoma. All of these operations are performing well. We are aggressively expanding our business, with a focus in California, Nevada, Michigan, Rhode Island, Massachusetts, Maine, Oregon and the state of Washington,” added Mr. Lampert. We continue to forecast revenue for 2017 to be approximately $15 million.”
2nd Quarter 2017 Financial Results:
Revenues for the quarter ended June 30, 2017 increased 116% to $4.1 million, compared to $1.9 million for the quarter ended June 30, 2016.
Same Store Sales:
For the period ended June 30, 2017, the Company had a total of seven stores opened more than one year, generating net revenue of approximately $2.6 million, compared to approximately $1.7 million for the same seven stores for the period ended June 30, 2016, an increase of approximately $904,000 or 54%. The five stores opened less than one year generated approximately $2.2 million for the quarter ended June 30, 2017. Sales from the recently opened San Bernardino store will start being reflected in the Company’s financial results in the third quarter.
Cost of sales for the period ended June 30, 2017 increased $1.6 million to $2.96 million as compared to $1.34 million for the period ended June 30, 2016. The increase was due to the 116% increase in sales. Gross profit was $1.15 million for the period ended June 30, 2017, resulting in a 28% gross margin, compared to $570,000, or a 30% gross margin, for the period ended June 30, 2016. The margin decrease was due to an increase in the number of commercial accounts, which are generally higher revenue, lower margin accounts. As the Company continues to scale, inventory and operating efficiencies are expected to begin to be recognized in higher margins and operating profit, and management expects margins to trend back up to normalized levels in the 2nd half of the year.
Operating expenses include stores operations and corporate overhead. Operating expenses for the period ended June 30, 2017 increased $776,000 to $1.5 million, as compared to $712,000 for the period ended June 30, 2016. Store operating costs were $750,000 for the period ended June 30, 2017 compared to $381,000 for the period ended June 30, 2016. The increase is due to the increase in the number of stores. Store operating cost as a percentage of revenue was 18% for the period ended June 30, 2017 compared to 20% for the period ended June 30, 2016. Store operating costs are generally fixed in nature and do not rise commensurate with the increase in revenues. Corporate overhead, which includes non-cash share based compensation was $738,500 for the period ended June 30, 2017 compared to $331,200 for the period ended June 30, 2016. The increase was mainly due to an increase in non-cash share based compensation of $227,400 and increase in payroll expense of approximately $64,000 and an increase in general and administrative expenses such as advertising and promotion and travel and entertainment. Corporate overhead, exclusive of share based compensation was 10% of revenue for the period ended June 30, 2017 compared to 12% for the period ended June 30, 2016.
For the period ended June 30, 2017, the Company reported a net loss of $340,375, or ($.02) per basic and diluted share, compared with a net loss of $143,681, or ($.02) per basic and diluted share, in the period ended June 30, 2016. The increase was mainly due to a $227,400 increase in non-cash share based compensation.
Balance Sheet Summary
As of June 30, 2017, the Company had $2.2 million in cash and $7.7 million in total current assets compared with $606,000 and $3.6 million, respectively, as of December 31, 2017. Current liabilities were $1.8 million at June 30, 2017, compared to $$843,000 at December 31, 2017. The Company ended the June 30, 2017 period with a working capital surplus of $5.9 million compared to $2.76 million for the period ended December 31, 2017. The Company raised $3.8 million in equity capital during the period ended June 30, 2017 through the issuance of common stock and the exercise of warrants.
Adjusted EBITDA for the quarter ended June 30, 2017 totaled $7,167 compared to adjusted EBITDA of $(33,447) for the quarter ended June 30, 2016 (see definition and further discussion about the presentation of a EBITDA, a non-GAAP term, below).
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.
https://www.otcmarkets.com/stock/GRWG/news/GrowGeneration-Reports-Record-2nd-Quarter-Revenue?id=166163&b=y
1c
Recent GRWG News
- GrowGeneration to Participate in the Lake Street Capital Markets 8th Annual Best Ideas Growth Conference on September 12, 2024 • Business Wire • 08/28/2024 08:05:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/16/2024 09:00:15 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/15/2024 09:01:08 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/15/2024 09:00:37 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/08/2024 08:27:24 PM
- GrowGeneration Reports Second Quarter 2024 Financial Results • Business Wire • 08/08/2024 08:05:00 PM
- GrowGeneration Schedules Second Quarter 2024 Earnings Release Conference Call for August 8, 2024 • Business Wire • 07/24/2024 08:05:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/23/2024 03:12:45 PM
- GrowGeneration Announces Second Quarter 2024 Preliminary Results, Strategic Restructuring Plan and Outlines Path to Profitability • Business Wire • 07/22/2024 08:05:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/18/2024 07:29:15 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/18/2024 07:28:46 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/18/2024 07:28:15 PM
- GrowGeneration to Participate in The Benzinga Cannabis Market Spotlight on June 17, 2024 • Business Wire • 06/13/2024 12:00:00 PM
- GrowGeneration’s Horticultural Rep Group Unveils B2B Portal for Hydroponic Retailers and Garden Centers Nationwide • Business Wire • 06/11/2024 12:00:00 PM
- KCSA Cannabis Virtual Investor Conference Presentations Now Available for Online Viewing • GlobeNewswire Inc. • 06/06/2024 12:35:00 PM
- GrowGeneration to Participate in Oppenheimer's 24th Annual Consumer Growth and E-Commerce Virtual Conference • Business Wire • 06/06/2024 12:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/03/2024 09:06:37 PM
- KSCA Cannabis Virtual Investor Conference Agenda Announced for June 5th • GlobeNewswire Inc. • 05/31/2024 12:43:44 PM
- GrowGeneration to Present at the KCSA Cannabis Virtual Investor Conference June 5th • GlobeNewswire Inc. • 05/30/2024 12:35:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/08/2024 09:13:47 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/08/2024 09:12:49 PM
- GrowGeneration Reports First Quarter 2024 Financial Results • Business Wire • 05/08/2024 08:05:00 PM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 05/08/2024 06:04:44 PM
- GrowGeneration Announces Change to Board of Directors • Business Wire • 04/25/2024 12:00:00 PM
- GrowGeneration Schedules First Quarter 2024 Earnings Release Conference Call for May 8, 2024 • Business Wire • 04/23/2024 12:00:00 PM
North Bay Resources Commences Operations at Bishop Gold Mill, Inyo County, California; Engages Sabean Group Management Consulting • NBRI • Sep 25, 2024 9:15 AM
CEO David B. Dorwart Anticipates a Bright Future at Good Gaming Inc. Through His Most Recent Shareholder Update • GMER • Sep 25, 2024 8:30 AM
Cannabix Technologies and Omega Laboratories Inc. Advance Marijuana Breathalyzer Technology - Dr. Bruce Goldberger to Present at Society of Forensic Toxicologists Conference • BLOZF • Sep 24, 2024 8:50 AM
Integrated Ventures, Inc Announces Strategic Partnership For GLP-1 (Semaglutide) Procurement Through MedWell USA, LLC. • INTV • Sep 24, 2024 8:45 AM
Avant Technologies Accelerates Creation of AI-Powered Platform to Revolutionize Patient Care • AVAI • Sep 24, 2024 8:00 AM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM