FY 2017 Revenue up 80% to $ 14.4 million; Same-store sales increase 35%
2018 Revenue Guidance Set at $37 million
DENVER, March 28, 2018 /PRNewswire/ - GrowGeneration Corp. (OTCQX: 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 15 current locations (13 locations as of December 31, 2017), today reported financial results for its fiscal year ended December 31, 2017.
Fiscal Year 2017 Financial Highlights:
- Revenue of $14.4 million, up 80% compared to revenue of $8 million for 2016
Same-Store Sales increased 35% from $6.4 million for 2016 compared to $8.6 million for FY 2017
Adjusted EBITDA for the year ended December 31, 2017 totaled $(1,096,580) compared to adjusted EBITDA of $(45,575) for the year ended December 31, 2016
The Company had $1.2 million in cash as of December 31, 2017, $8.0 million at March 23, 2018
As of December 31, 2017, the Company had $5.6 million in working capital compared to $2.8 million in working capital as of December 31, 2016.
The Company raised $5.2 million in equity capital for the year ended December 31, 2017 through the issuance of common stock and the exercise of warrants.
2018 Revenue guidance set at $37 Million
Darren Lampert, Co-Founder and CEO, said, "This was a great year for sales for GrowGeneration, clearly demonstrating the demand for our products and the scalability of our business as we continue our expansion plans. We have a robust pipeline of acquisitions, that we plan to close in the first half of the year. With revenue guidance set at $37M, we anticipate continued growth into 2018 and 2019."
"Our company continues to attract capital, raising $5.2 million in 2017, strengthening our balance sheet to $9.2 millionin assets and breaking the $14 million revenue mark. GrowGen now is operating in 5 states, with 15 commercial and retail stores, with over 50,000 sq. ft. and servicing 100's of licensed commercial growers. We are aggressively expanding our brand and acquisitions model, with a focus in California, Nevada, Michigan, Rhode Island, Massachusetts, Maine, Oregon, and the state of Washington," added Mr. Lampert."
Fiscal Year 2017 Financial Results:
Revenues for the year ended December 31, 2017 increased 80% to $14.4 million, compared to $8 million for the year ended December 31, 2016.
In October 2017, our Santa Rosa store was forced to close for 17 days due to wildfires in the Santa Rosa area. We estimate that the Company's loss of revenue for that period was approximately $120,000. In addition, revenue subsequent to when the store reopened, October 26, 2017, were lower than the months prior to the fire by approximately $100,000 a month.
Same Store Sales:
The Company had the same 7 stores opened for the entire year ended December 31, 2017 and 2016. These same stores generated $8.6 million in sales for the year ended December 31, 2017, compared to $6.4 million in sales for the same period ended December 31, 2016, an increase of 35%. The other Company stores, which were open for only a portion of 2017, generated $5.8 million in sales in 2017 and $1.6 million in sales in 2016.