Business
Hydrofarm Holdings Group Announces First Quarter 2022 Results
Company Updates Full Year 2022 Outlook SHOEMAKERSVILLE, Pa., May 10, 2022 (GLOBE NEWSWIRE) -- Hydrofarm Holdings Group, Inc. (“Hydrofarm” or the “Company”)
About this update from Hydrofarm Holdings Group, Inc.
[{"type":"text","content":"Company Updates Full Year 2022 Outlook\nSHOEMAKERSVILLE, Pa., May 10, 2022 (GLOBE NEWSWIRE) -- Hydrofarm Holdings Group, Inc. (“Hydrofarm” or the “Company”) (Nasdaq: HYFM), a leading independent manufacturer and distributor of branded hydroponics equipment and supplies for controlled environment agriculture (“CEA”), today announced financial results for its first quarter ended March 31, 2022. First Quarter 2022 Highlights vs. Prior Year Period: Net sales remained flat at $111.4 million.Gross Profit decreased to $16.6 million compared to $23.2 million. Adjusted Gross Profit(1)(2) was $22.3 million compared to $23.4 million.Net loss was ($23.3) million, or a loss of ($0.52) per diluted share, compared to net income of $4.9 million, or $0.13 per diluted share. Adjusted Net Loss(1)(2) was ($7.8) million, or ($0.17) per diluted share, compared to Adjusted Net Income(1) of $7.2 million, or $0.18 per diluted share.Adjusted EBITDA(1)(2) decreased to $3.1 million compared to $9.9 million.The Company recorded a $3.2 million inventory reserve during the quarter, which was not treated as an adjustment. Full Year 2022 Outlook: Net sales of approximately $480 million to $520 million.Adjusted EBITDA(1) of $46 million to $54 million, or approximately 10% of net sales.(1) Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Net (Loss) Income, Adjusted SG&A, Adjusted SG&A as a percent of net sales, and Adjusted EBITDA are non-GAAP measures. For reconciliations of GAAP to non-GAAP measures see the “Reconciliation of Non-GAAP Measures” accompanying the release.(2) As a result of the $3.2 million inventory reserve, Adjusted Gross Profit, Adjusted Net Income and Adjusted EBITDA were negatively impacted. Bill Toler, Chairman and Chief Executive Officer of Hydrofarm, said, “Over the past year, our team has strengthened our business through a number of initiatives, including our five acquisitions, the expansion of our distribution and manufacturing footprint, and the creation of new leadership roles. While we remain optimistic about the health of our business and our long-term potential, our ability to reap the benefits of our actions has been impacted by the agricultural oversupply that has hampered cannabis growing activity across the US and Canada. This dynamic was apparent in our first quarter results.” Mr. Toler added, “We believe these in...