Business
Hydrofarm Holdings Group Announces First Quarter 2024 Results
Significant Cost Savings Continue to Drive Improvement in Key Operating Metrics SHOEMAKERSVILLE, Pa., May 14, 2024 (GLOBE NEWSWIRE) -- Hydrofarm Holdings
About this update from Hydrofarm Holdings Group, Inc.
[{"type":"text","content":"Significant Cost Savings Continue to Drive Improvement in Key Operating Metrics\nSHOEMAKERSVILLE, Pa., May 14, 2024 (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, 2024. First Quarter 2024 Highlights vs. Prior Year Period: Net sales decreased to $54.2 million compared to $62.2 million.Gross Profit Margin increased to 20.2% of net sales compared to 18.3%.Adjusted Gross Profit Margin(1) increased to 23.4% of net sales compared to 22.6%.Net loss improved to $12.6 million compared to $16.8 million.Adjusted EBITDA(1) increased to $0.3 million compared to $(2.1) million.Cash used in operating activities and Free Cash Flow(1) improved $6.7 million and $6.9 million, respectively. (1) Adjusted Gross Profit (Loss), 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 non-GAAP to GAAP measures see the “Reconciliation of Non-GAAP Measures” accompanying the release. Bill Toler, Chairman and Chief Executive Officer of Hydrofarm, said, “We are pleased with our first quarter results, as we delivered Adjusted Gross Profit Margin(1) expansion for the fifth consecutive quarter driven by elevated operational productivity. We also recognized year-over-year improvements in our Net Loss and Free Cash Flow(1) and we achieved positive Adjusted EBITDA(1) as we further benefited from our restructuring actions and related cost saving initiatives. As we have mentioned the last several quarters, many of our restructuring actions have focused on rightsizing the elements of our business associated with durable products. These efforts have led to our decision to sell assets related to the production of certain durable equipment products, which we expect to result in improved profitability on the sale of our IGE branded products. Our restructuring plan has been effective so far, and we still expect to realize further cost savings in 2024. As a result of our accomplishments, we are reiterating our 2024 guidance of positive Adjusted EBITDA(1) and positive Free Cash Flow(1). We are also encouraged ...