Business
GrowGeneration Reports Fourth Quarter and Full Year 2022 Financial Results; Provides First Quarter and Full Year 2023 Guidance
Full Year Net Revenue of $278.2 million, at the High End of Guidance Full Year Net Loss of $163.7 million and Non-GAAP Adjusted EBITDA Loss of $16.7 million
About this update from Growgeneration Corp.
[{"type":"text","content":"\nFull Year Net Revenue of $278.2 million, at the High End of Guidance\n\nFull Year Net Loss of $163.7 million and Non-GAAP Adjusted EBITDA Loss of $16.7 million\n\nFor Full Year 2023, Expected Revenue in the Range of $250 Million to $270 Million with Adjusted EBITDA from a Loss of $4.0 Million to Profit of $1.0 Million\n\n DENVER--(BUSINESS WIRE)--\nGrowGeneration Corp. (NASDAQ: GRWG), (“GrowGen” or the “Company”), the largest chain of specialty hydroponic and organic garden centers in the United States, today announced financial results for fourth quarter and full year ended December 31, 2022.\n\nFourth Quarter 2022 Highlights Compared to Prior Year\n\n\nNet revenues decreased approximately 40% to $54.5 million and same-store sales decreased 51.9%\n\n\nGross profit decreased to $9.6 million, or 17.6% of net revenues, from $23.1 million, or 25.5% of net revenues, primarily due to aggressive inventory clearance and an increase in inventory reserves\n\n\nNet loss was $15.0 million, or $(0.25) per diluted share, compared to net loss of $4.1 million, or $(0.07) per diluted share\n\n\nAdjusted EBITDA(1) was a loss of $10.2 million, compared to a loss of $1.7 million, due in part to approximately $1.0 million in expense associated with closure of Las Vegas, Compton, and Cotati locations and nearly $4.0 million associated with inventory cleanup measures\n\n\nCash and short-term securities were $71.9 million as of December 31, 2022\n\n\nFull Year 2022 Highlights Compared to Prior Year\n\n\nNet revenue decreased approximately 34.2% to $278.2 million, towards the high end of the Company’s previous guidance range\n\n\nGross profit decreased to $70.3 million, or 25.3% of net revenues, from $118.2 million, or 28.0% of net revenues, with the decrease primarily due to a decline of $178.0 million in same-store sales, representing a 51.6% decrease, which is primarily attributable to the downturn in the business cycle for cannabis cultivators, resulting in less supply and equipment demand\n\n\nNet loss was $163.7 million, or a loss of $(2.69) per diluted share, compared to net income of $12.8 million, or $0.21 per diluted share\n\n\nAdjusted EBITDA(1) was a loss of $16.7 million, or $(0.27) per diluted share, compared to earnings of $34.2 million, or $0.57 per diluted share\n\n\nReduced operating expense and selling, general, and administrative ...