Business
Hydrofarm Holdings Group Announces Second Quarter 2023 Results
SHOEMAKERSVILLE, Pa., Aug. 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., Aug. 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, today announced financial results for its second quarter ended June 30, 2023. Second Quarter 2023 Highlights vs. Prior Year Period: Net sales decreased to $63.1 million compared to $97.5 million.Gross Profit increased to $14.5 million compared to $7.3 million. Gross Profit Margin increased to 23.0% of net sales compared to 7.5%.Adjusted Gross Profit(1) increased to $17.0 million compared to $9.1 million. Adjusted Gross Profit Margin(1) increased to 27.0% of net sales compared to 9.3%.Net loss was $12.9 million compared to net loss of $203.3 million.Adjusted EBITDA(1) increased to $2.5 million compared to $(6.8) million.Cash from operating activities of $9.9 million and Free Cash Flow(1) of $8.3 million. Updated Full Year 2023 Outlook: Net sales of approximately $230 million to $240 million.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, “In the second quarter, we delivered positive Adjusted EBITDA for the first time since Q1 of 2022, driven by strong gross margin expansion and significant cost reduction measures. Our Adjusted SG&A is now at its lowest quarterly total since Q2 of 2021, before we made all of our 5 acquisitions. Through the sound execution of our restructuring plan and related cost saving efforts, we have achieved significant margin improvement and are now in a much stronger position to navigate the current volume softness in our industry. In addition, our aggressive working capital management continued as we reduced our inventory levels and created meaningfully positive free cash flow of over $8 million in the quarter. We are pleased with our progress and we remain confident in the long-term fundamentals of our business.” Second Quarter 2023 Financial Results Net sales...