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Hydrofarm Holdings Group Announces Third Quarter 2022 Results
Company Reiterates Full Year 2022 Outlook SHOEMAKERSVILLE, Pa., Nov. 09, 2022 (GLOBE NEWSWIRE) -- Hydrofarm Holdings Group, Inc. (“Hydrofarm” or the
About this update from Hydrofarm Holdings Group, Inc.
[{"type":"text","content":"Company Reiterates Full Year 2022 Outlook\nSHOEMAKERSVILLE, Pa., Nov. 09, 2022 (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 third quarter ended September 30, 2022. Third Quarter 2022 Highlights vs. Prior Year Period: Net sales decreased to $74.2 million compared to $123.8 million.Gross Profit decreased to $5.9 million compared to $30.0 million. Adjusted Gross Profit(1)(2) was $7.8 million compared to $33.0 million.Net loss was $(23.5) million, or $(0.52) per diluted share, compared to net income of $17.3 million, or $0.37 per diluted share. Net loss in the third quarter of 2022 included $5.5 million in inventory and accounts receivable reserves and related charges due primarily to challenging industry conditions. Adjusted Net Loss(1)(2) was $(15.0) million, or $(0.33) per diluted share, compared to Adjusted Net Income(1)(2) of $31.8 million, or $0.69 per diluted share.The $5.5 million of inventory and accounts receivable reserves and related charges recorded during the third quarter were not treated as an adjustment. Adjusted EBITDA(1)(2) decreased to $(9.0) million compared to $16.1 million in the prior year period.Generated net cash from operating activities of $8.2 million and positive Free Cash Flow(1) of $5.6 million. Reaffirming Full Year 2022 Outlook: Net sales of approximately $330 million to $347 million.Adjusted EBITDA(1)(3) of approximately $(25) million to $(16) million, which reflects $19 million of inventory and accounts receivable reserves and related charges recorded during the nine months year-to-date. (1) Adjusted Gross 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. For reconciliations of GAAP to non-GAAP measures see the “Reconciliation of Non-GAAP Measures” accompanying the release. (2) The $5.5 million of inventory related charges and accounts receivable allowances negatively impacted Net Loss, Adjusted Net (Loss) Income, EPS, Adjusted EPS, and Adjusted EBITDA. Of the $5.5 million, $4.4 million negatively impacted Gross Profit ...