Business
Hydrofarm Holdings Group Announces Second Quarter 2021 Results
Company Updates Full Year 2021 Outlook FAIRLESS HILLS, Pa., Aug. 12, 2021 (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 2021 Outlook\nFAIRLESS HILLS, Pa., Aug. 12, 2021 (GLOBE NEWSWIRE) -- Hydrofarm Holdings Group, Inc. (“Hydrofarm” or the “Company”) (Nasdaq: HYFM), a leading independent distributor and manufacturer of hydroponics equipment and supplies for controlled environment agriculture (“CEA”), today announced financial results for its second quarter ended June 30, 2021. Second Quarter 2021 Highlights vs. Prior Year Period: Net sales increased 46.7% to $133.8 million compared to $91.2 million.Gross profit increased 65.5% to $29.6 million, or 22.1% of net sales, compared to $17.9 million, or 19.6% of net sales.Net income attributable to common stockholders was $2.3 million or $0.05 per diluted share compared to a $1.9 million or $0.08(1) per diluted share. Pro forma adjusted net income(2) was $12.5 million or $0.30 per pro forma diluted share compared to $4.0 million or $0.12 per pro forma diluted share.Adjusted EBITDA(2) increased 127.5% to $16.2 million compared to $7.1 million.Completed two acquisitions during the quarter: HEAVY 16 and House & Garden. Recent Developments: Completed two acquisitions subsequent to quarter end: Aurora Innovations and Greenstar Plant Products.Completed Investor Warrant redemption, raising approximately $56.8 million in gross proceeds. Revised Full Year 2021 Outlook vs. Prior Year: Significant increase in full year outlook with contribution from the four completed acquisitions.Net sales growth of 45% to 50%; Adjusted EBITDA(2) of $55.0 million to $62.0 million.Pro Forma(3) net sales $565 million and $590 million; Adjusted EBITDA(2)(3) of $80 million to $90 million. (1) Net income attributable to common stockholders after adjustment for assumed conversions of $0.2 million.(2) Adjusted EBITDA and Pro Forma Adjusted Net Income (Loss) are non-GAAP measures. For reconciliations of GAAP to non-GAAP measures see the ”Reconciliation of Non-GAAP Measures” accompanying this release.(3) Pro Forma net sales and Pro Forma Adjusted EBITDA assumes that all four acquisitions had occurred on January 1, 2021. Bill Toler, Chairman and Chief Executive Officer of Hydrofarm, said, “We maintained momentum during the second quarter, as demonstrated by 47% increase in our top-line and significant improvement in our Adjusted EBITDA, which more than doubled on a dollar basis and increased considerably on margin...