Business
GrowGeneration Reports Record Q1 2020 Revenues of $33.0 Million and Record Adjusted EBITDA of $2.7 Million
2020 Revenue Guidance Increased to $135-$140 Million Adjusted EBITDA Guidance for 2020 is $12.0 Million-$14.0 Million GAAP Pre-Tax Net Income Guidance set
About this update from Growgeneration Corp.
[{"type":"text","content":"2020 Revenue Guidance Increased to $135-$140 Million\nAdjusted EBITDA Guidance for 2020 is $12.0 Million-$14.0 Million\nGAAP Pre-Tax Net Income Guidance set $5.5-$7.5 Million\n DENVER, May 14, 2020 /PRNewswire/ - GrowGeneration Corp. (NASDAQ:GRWG), (\"GrowGen\" or the \"Company\"), the largest chain of specialty hydroponic and organic garden centers, with currently 27 locations, today reported record revenue of $33.0 million for the Q1 2020 and record adjusted EBITDA of $2.7 million. Q1 2020 was the company's 10th consecutive quarter of record revenue. On a GAAP basis the Company shows a GAAP net loss of approximately $2.1 million for Q1 2020 compared to net income of $229,000 for Q1 2019, which is primarily attributable to $4.1 million in non-cash share-based compensation(Shares and Options) for the quarter ended March 31, 2020. The increase in non-cash share-based compensation was primarily the result of several new executive employment agreements which became effective January 1, 2020 that had some accelerated vesting. The non-cash share-based compensation for the remainder of 2020 is projected to be substantially less than the amount recorded in the first quarter of 2020 and based on current awards outstanding is estimated to be approximately $2.4 million for the remainder of 2020. Had the new executive shared based awards been level vested and not front-end vested, the Company would have Q1 2020 net income of approximately $332,000 on a GAAP basis. As we continue to outpace guidance, we are increasing 2020 revenue guidance to $135M-$140M and Adjusted EBITDA to $12.0M-$14.0M. Revenue guidance for Q2 2020 is $36.0M-$37.0M. Guidance for Q2 2020 adjusted EBITDA is $3.6M and GAAP pre-tax net income is $2.1M. \n\n \n \n \n \n \n \n\n \nQ1 2020 Financial Highlights:\nRevenues up 152% to $33.0 million for Q1 2020 vs $13.1 million for Q1 2019 Adjusted EBITDA of $2.7 million for Q1 2020 compared to $0.6 million for Q1 2019, $.07 per share, basic for Q1 2020 Net income from store operations was approximately $5.3 million for the quarter ended March 31, 2020, compared to approximately $1.7 million for the quarter ended March 31, 2019, an increase of 207% Gross profit margin percentage of 27.1% for Q1 2020 compared to 28.2 % for Q1 2019 Same store sales contributed revenue of $15.2 million for the quarter ended March 31, 2020 compared t...