Business
GrowGeneration Reports Third Quarter 2022 Financial Results
Net sales of $71 million exceeds internal expectations Raising 2022 financial guidance for revenue and adjusted EBITDA DENVER--(BUSINESS WIRE)--
About this update from Growgeneration Corp.
[{"type":"text","content":"\nNet sales of $71 million exceeds internal expectations\n\nRaising 2022 financial guidance for revenue and adjusted EBITDA\n\n DENVER--(BUSINESS WIRE)--\nGrowGeneration Corp. (NASDAQ: GRWG) (“GrowGen” or the “Company”), the largest chain of specialty hydroponic and organic garden centers with 58 locations across 15 states, today reported financial results for the third quarter ended September 30, 2022.\n\nThird Quarter 2022 Highlights\n\n\nNet sales declined 39% to $70.9 million driven by softer industry demand\n\n\nComparable store sales for the quarter decreased 58.1%\n\n\nNet loss of $7.2 million compared to net income of $4.0 million last year\n\n\nLoss per share of $0.12 in the quarter\n\n\nAdjusted EBITDA loss of $2.6 million\n\n\nRevenue guidance for 2022 updated to be between $270 million to $280 million, an improvement from the previous range of $250 million to $275 million\n\n\nAdjusted EBITDA guidance updated to be between a loss of $10 million to $13 million, an improvement from the previous range of a loss of $12 million to $15 million\n\n\nCash and cash equivalents were $71.1 million on September 30, 2022\n\n\nDarren Lampert, GrowGeneration’s Co-Founder and Chief Executive Officer, stated, “I am proud of how resilient our team has been throughout this year as GrowGen – and the entire hydroponics category – has faced significant industry and economic headwinds. In the third quarter of 2022, net sales of $70.9 million outpaced our internal expectations, bolstered primarily by stronger-than-expected demand within our distribution and private label business. During the quarter we generated $8.3 million of positive cash flow from operations as working capital management remains a top priority across the business, and we ended the third quarter with $71.1 million of cash on our balance sheet with zero debt. On the expense side, we have reduced the payroll by an incremental $1.7 million in the quarter and $11.7 million year to date. We reduced inventory quarter-over-quarter by $10 million compared to the end of the second quarter 2022, which amounts to an aggregate reduction in our retail business of more than $24.1 million in inventory year-to-date since December 31, 2021.”\n\nLampert continued, “We remain cautiously optimistic on the broader industry as a whole and are seeing some early signs of stabilization. However,...