Business
Hydrofarm Holdings Group Announces First Quarter 2023 Results
SHOEMAKERSVILLE, Pa., May 10, 2023 (GLOBE NEWSWIRE) -- Hydrofarm Holdings Group, Inc. (“Hydrofarm” or the “Company”) (Nasdaq: HYFM), a leading independent
About this update from Hydrofarm Holdings Group, Inc.
[{"type":"text","content":"SHOEMAKERSVILLE, Pa., May 10, 2023 (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, today announced financial results for its first quarter ended March 31, 2023. First Quarter 2023 Highlights vs. Prior Year Period: Net sales decreased to $62.2 million compared to $111.4 million.Gross Profit decreased to $11.4 million compared to $16.6 million. Adjusted Gross Profit(1) was $14.1 million compared to $22.3 million.Gross Profit Margin increased to 18.3% of net sales compared to 14.9%. Adjusted Gross Profit Margin(1) increased to 22.6% of net sales compared to 20.0%.Net loss was $(16.8) million, or $(0.37) per diluted share, compared to net loss of $(23.3) million, or $(0.52) per diluted share.Adjusted EBITDA(1) decreased to $(2.1) million compared to $3.1 million in the prior year period.Cash used in operating activities of $(9.0) million and negative Free Cash Flow(1) of $(10.6) million, a $2.0 million improvement compared to the first quarter of 2022. Reaffirms Full Year 2023 Outlook: Net sales of approximately $290 million to $310 million, and now expects results to be toward the lower end of the range.Adjusted EBITDA(1) that is modestly positive.Positive Free Cash Flow(1). (1) Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted SG&A, Adjusted SG&A as a percent of net sales, Adjusted EBITDA, and Free Cash Flow are non-GAAP measures. For reconciliations of GAAP to non-GAAP measures see the “Reconciliation of Non-GAAP Measures” accompanying the release. Bill Toler, Chairman and Chief Executive Officer of Hydrofarm, said, “I am proud of our team who has worked tirelessly to execute on our restructuring and related cost savings initiatives while navigating the challenging operating environment as the broader industry finds its way through supply/demand imbalances. We recently completed the consolidation of our Canadian nutrient manufacturing facility, the closure of our regional office in China as well as the relocation of our distribution center in Western Canada. We have made strides by reducing our overall costs in an effort to position ourselves to drive profitability in the near-term by improving brand sales mix, increasing productivity...