Growgeneration Corp. · NASDAQ:GRWG
Growgeneration — ICR Conference 2020
25 slides from Growgeneration's conference presentation, Jan 13, 2020
Slide 1: GrowGeneration Corp. Investor Presentation, ICR Conference 2020
NASDAQ: GRWG 1 GrowGeneration Corp. Investor Presentation ICR Conference 2020 NASDAQ: GRWG
Slide 2: Safe Harbor Statement
NASDAQ: GRWG 2 Safe Harbor Statement This presentation is being provided for information purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any of the Company’s securities . This presentation is not intended, nor should it be distributed, for advertising
Slide 3: Who We Are & What We Do
NASDAQ: GRWG 3 • Largest hydroponic and organic product/solutions provider • National Footprint - 26 sales/service centers in 9 states • Expertise - Deep knowledge base with in - house professionals • Full - service product, solutions – from builds to ongoing grows • Diverse Customer Base – Large co
Slide 4: Corporate Divisions
NASDAQ: GRWG 4 growgeneration.com GrowGeneration Corp. GrowGen.Pro Omni - Channel Hemp Corp. Supply Chain to Hemp Farmers Commercial Management Corp. Capital Projects GrowGeneration Distribution Product Exclusives GrowGeneration Retail 26 Stores Corporate Divisions
Slide 5: GrowGeneration Locations
NASDAQ: GRWG 5 growgeneration.com Livonia, MI GrowGeneration Locations
Slide 6: GrowGeneration Locations
NASDAQ: GRWG 6 growgeneration.com Oklahoma City, OK Denver, CO GrowGeneration Locations Pueblo, CO
Slide 7: Product Mix
NASDAQ: GRWG 7 growgeneration.com • Over 10,000 SKUs • Large consumable revenue mix • 26 locations in 9 states • Growgen.pro online superstore Lighting 17% Climate Control 8% Hydroponic Systems 5% Nutrients & Additives 29% Medium & Containers 23% Plant Production & Harvest 18% Product Mix
Slide 8: Big Opportunity in Private Label Products - SUNLEAVES Brand
NASDAQ: GRWG 8 Big Opportunity in Private Label Products - SUNLEAVES Brand growgeneration.com Rachets Cloth Pots Measuring Cups Exclusively distributed by GrowGeneration Nutrients Lighting
Slide 9: Current GrowGeneration Locations (26 stores)
NASDAQ: GRWG 9 Current GrowGeneration Locations (26 stores) growgeneration.com Alabama Arizona Arkansas California (6) Colorado (5) Florida Georgia Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine (3) Massachusetts Michigan (3) Minnesota Mississippi Missouri Montana Nebraska Nevada (2) Ne
Slide 10: State Regulatory Overview
NASDAQ: GRWG 10 State Regulatory Overview growgeneration.com • 11 Recreational States • 33 Medical States • 15 CBD Only States
Slide 11: Marketing & Branding
NASDAQ: GRWG 11 growgeneration.com Humboldt, CA Out of Home – Billboard In - Store Merchandising Livonia, MI Vehicle Wraps Trade Shows MJBIZ CON 2019 – Las Vegas Social Media Instagram/Facebook All Locations Marketing & Branding
Slide 12: GrowPro Website – WWW.GrowGen.Pro
NASDAQ: GRWG 12 GrowPro Website – WWW.GrowGen.Pro growgeneration.com Omni channel approach that seeks to provide customers with a seamless online shopping experience
Slide 13: Key Stats
NASDAQ: GRWG 13 KEY STATS¹ growgeneration.com TRADING DATA @ (01/010/20) VALUATION METRICS @ (01/010/20) Adjusted EBITDA, 9/30/19 $4.5M $80M, 12/31/19 TOTAL REVENUE $68.4M, 9/30/19 TOTAL ASSETS $13 M, 12/31/19 SAME STORE SALES $1 M, 9/30/19 TOTAL DEBT $ 4.5 M Adjusted EBITDA, 9/30/19 $15.6M, 9/30/19
Slide 14: 2019 Financial Highlights
NASDAQ: GRWG 14 growgeneration.com $- $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 $160,000,000 $180,000,000 $200,000,000 2017 2018 2019 2020 2021 $14.3M $29M $80M $130M $181.4M Projected Revenue Estimated Adjusted EBITDA $0.00 $5.00 $10.00 $15.00 $20.00 $25
Slide 15: 2019 YTD Revenue Growth
NASDAQ: GRWG 15 2019 YTD Revenue Growth growgeneration.com 199% growth 172% growth 159% growth US$ in Millions 187% growth
Slide 16: Revenues from Acquired & Opened Stores
NASDAQ: GRWG 16 Revenues from Acquired & Opened Stores growgeneration.com - 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 $334k $6.9M $8M $21.3M $2.5M $1.2M $3.1M $7.3M $20.9M $5.4M $57.4M 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 Acquired Stores Open
Slide 17: Same Store Sales
NASDAQ: GRWG 17 Same Store Sales growgeneration.com • 36% SSS 2019 • 62% SSS Q4 2019 • Double digit SSS 2020
Slide 18: Store Unit Growth 2017 - 2019
NASDAQ: GRWG 18 Store Unit Growth 2017 - 2019 growgeneration.com • 26 total stores 2019 • 11 new locations( 7 acquired,4 opened and consolidated 3) • 44% - unit growth YOY
Slide 19: New Store Growth Plan 2020 - 2021
NASDAQ: GRWG 19 0 5 10 15 20 25 30 35 40 45 Missouri (2) Illinois (2) Arizona (1) California (LA) (2) Florida (2) Pennysvania (2) New Jersey (2) New Store Growth Plan 2020 - 2021 growgeneration.com *Projected Number of New GrowGeneration Stores (26 stores to date) *28 *31 *31 *33 *37 *35 *39 - 13 ne
Slide 20: Proven Robust Track Record of Acquisitions
NASDAQ: GRWG 20 Proven Robust Track Record of Acquisitions growgeneration.com 2019 2018 2017 2016 2015 2014 • $30M in acquisitions completed in 2019 • Robust M&A pipeline • Acquisitions are margin and profit accretive
Slide 21: Store Economics – Acquisition vs. New Build
NASDAQ: GRWG 21 • Existing Store Acquisition – Warwick, RI – 2019 revenues of $8 million – Total cost of acquisition, $2.4 million – Acquisition multiple, 2.7 times TTM EBITDA – Payback period expected to be less than 2.25 years • New Store Opening Example – – 10,000 sq. ft. (New OKC location) – Rac
Slide 22: 4-Wall Economics and Adjusted EBITDA
NASDAQ: GRWG 22 2019 2020 • Gross Profit 29% 30% • Operating Expenses 12% 12% • Stores Operating Income 17% 18% • G and A 8% 7% • Adjusted EBITDA 9% 11% 4 - Wall Economics and Adjusted EBITDA growgeneration.com
Slide 23: Seasoned Management Team & Board of Directors
NASDAQ: GRWG 23 Seasoned Management Team & Board of Directors growgeneration.com Darren Lampert CEO Director Michael Salaman President Director Tony Sullivan COO ‒ Founding member of law firm Lampert & Lampert (1986 - 2000) ‒ Former portfolio manager and proprietary trader (2000 - 2014) ‒ VP at Nati
Slide 24: Fueling Growth: Plan to $250M+ Revenue
NASDAQ: GRWG 24 • Store acquisitions over $30M in revenue in 2019,same target for 2020 • Open 13 new stores in 6 new markets (organic growth) • 2019 Revenue $80M up from $29M in 2018, continue same growth trajectory • SSS for 4 th Q UP 62%,SSS for 2019 up 36%, double digit growth in 2020 • Commercia
Slide 25: Company Contact
NASDAQ: GRWG 25 Company Contact Darren Lampert , Chief Executive Officer Michael Salaman , President GrowGeneration Corp., Denver, CO Tel 800.935.8420 | darren@growgeneration.com growgeneration.com Contacts