Business
Hydrofarm Holdings Group Announces Fourth Quarter and Full Year 2022 Results
SHOEMAKERSVILLE, Pa., March 09, 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., March 09, 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 (“CEA”), today announced financial results for its fourth quarter and full year ended December 31, 2022. Fourth Quarter 2022 Highlights vs. Prior Year Period: Net sales decreased to $61.5 million compared to $110.4 million.Gross Loss was $(0.5) million compared to gross profit of $18.7 million.Adjusted Gross Profit(1)(2) was $9.0 million compared to $23.3 million; Adjusted Gross Profit(1)(2) in the fourth quarter 2022 was unfavorably impacted by $0.7 million in inventory reserves and related charges.Net loss was $(35.3) million compared to net loss of $(11.0) million.Adjusted EBITDA(1)(2) decreased to $(8.4) million compared to $4.9 million in the prior year period; Adjusted EBITDA(1)(2) in the fourth quarter of 2022 was unfavorably impacted by $2.5 million of inventory and accounts receivable reserves and related charges.Generated net cash from operating activities of $6.5 million and positive Free Cash Flow(1) of $5.4 million.Initiated a restructuring to further right-size the Company and enable cost-savings in future periods. Fiscal Year 2022 Highlights vs. Prior Year: Net sales decreased to $344.5 million compared to $479.4 million.Gross profit decreased to $29.3 million compared to $101.5 million.Adjusted Gross Profit(1)(2) was $48.2 million compared to $109.9 million; Adjusted Gross Profit(1)(2) was unfavorably impacted by $18.5 million in inventory reserves and related charges.Net loss decreased to $(285.4) million compared to net income of $13.4 million.Adjusted EBITDA(1)(2) decreased to $(21.2) million compared to $47.1 million; Adjusted EBITDA(1)(2) was unfavorably impacted by $21.4 million of inventory and accounts receivable reserves and related charges. Full Year 2023 Outlook: Net sales of approximately $290 million to $310 million.Adjusted EBITDA(1) that is modestly positive.Positive Free Cash Flow(1). (1) Adjusted Gross (Loss) Profit, Adjusted Gross Profit Margin, Adjusted Net (Loss) Income, Adjusted EPS, Adjusted SG&A, Adjusted SG&A as a percent of net sales, Adjusted EBITDA, and Free Cash Flow are non-GAAP measures. See the “Reconciliation of Non...