Business
GrowGeneration Reports Record Q3 2019 Revenues and Net Income
Company Raises Revenue Guidance to $74M-$76M DENVER, Nov. 11, 2019 /PRNewswire/ - GrowGeneration Corp. (OTCQX: GRWG), ("GrowGen" or the "Company"), the
About this update from Growgeneration Corp.
[{"type":"text","content":"Company Raises Revenue Guidance to $74M-$76M\n DENVER, Nov. 11, 2019 /PRNewswire/ - GrowGeneration Corp. (OTCQX: GRWG), (\"GrowGen\" or the \"Company\"), the largest chain of specialty hydroponic and organic garden centers, with currently 25 locations, today reported financial results for its quarter ended September 30, 2019.\n\n \nQ3 2019 Financial Highlights:\nNet income of $1,049,699 for Q3 2019 compared to a net loss of $(784,573) for Q3 2018, an increase of $1.8 million. Adjusted EBITDA of $2,046,730 for Q3 2019 compared to adjusted EBITDA of $(71,584) for Q3 2018, an increase of $2.1 million. GAAP earnings of $.03 per share for Q3 2019 and $.07 per share year to date, basic. NON-GAAP adjusted earnings per share of $.06 per share for Q3 2019 and $.14 per share year to date, basic. Revenue of $21.8 million up $13.4 million or 159% over Q3 2018 revenues of $8.4 million. For the nine-month period ended September 30, 2019, revenue was $54.3 million versus $19.9 million for the same period 2018. Same store sales were up 48% for Q3 2019 versus Q3 2018. Gross profit margin percentage was 29.9% for Q3 2019 compared to 25.7% for Q3 2018. Store operating costs, as a percentage of revenue, have declined to 12.6% for Q3 2019 compared to 16.8% for Q3 2018. Corporate overhead, as a percentage of revenue declined to 12%,(8.3% excluding non-cash) for Q3 2019 compared to 16% of revenue for Q3 2018. The Company had $16 million in cash and cash equivalents at September 30, 2019. As of September 30, 2019, the Company had working capital of $30.4 million compared to working capital of $21.6 million at December 31, 2018. For the nine-month period ended September 30, 2019, the Company acquired and opened 8 stores, one in Denver, CO, Palm Springs, CA, Reno, NV, Grand Rapids, MI and two in Maine and opened new store locations in Tulsa, OK and Brewer, ME. In the 4th quarter, the Company plans to open its 24th and 25th locations in Oklahoma. Tony Sullivan appointed Executive Vice President and Chief Operating Officer of GrowGeneration. Tony most recently served as Executive Vice President and Chief Operating Officer of Forman Mills, a $300 million business, Dollar Express, a $500 million carve-out of 330 Family Dollar stores in 36 states, and 20+ years at Foot Locker Inc. leading 2100 + stores over $2.5B in sales as VP Store Operations. All convertib...