Growgeneration Corp. · NASDAQ:GRWG
Growgeneration — Roth Capital Conference March 2018
18 slides from Growgeneration's conference presentation, Mar 12, 2018
Slide 1: Roth Capital Conference March 2018
OTCQX: GRWG 1 Roth Capital Conference March 2018 growgeneration.com OTCQX: GRWG
Slide 2: Safe Harbor Statement
OTCQX: 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: GrowGeneration: Transforming the Hydroponic Grow Supply Distribution Industry
OTCQX: GRWG 3 GrowGeneration: Transforming the Hydroponic Grow Supply Distribution industry growgeneration.com Company Highlights 2017 net sales mix projected net sales National coast to coast wholesale distributor of hydroponic grow supplies – Over 100% growth year over year with over $20m in targe
Slide 4: 2017 - 2020 Proj. Rev and Adjusted EBITDA
OTCQX: GRWG 4 2017 - 2020 Proj. Rev and Adjusted EBITDA $14.3M $37M $60M $84.6M $(1.2M) $2.7M $6.2M $9.5M $(10,000,000) $- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 $90,000,000 2017 2018 2019 2020 2017 - 2020 (Revenue and EBITDA in millions) grow
Slide 5: Capital Structure
OTCQX: GRWG 5 Capital Structure growgeneration.com 15 operations across 5 markets, CO, CA, NV, WA and RI capital raised to date has driven exponential revenue growth and strong balance sheet Stock Price 1 $4.18 Shares Outstanding 1 19.1M Warrants Outstanding 1 3.6M Stock Options Outstanding 1 1.9M E
Slide 6: Proven Robust Track Record of Acquisitions
OTCQX: GRWG 6 Proven Robust Track Record of Acquisitions growgeneration.com 2017 2016 2015 2014 $2,100,000 4 Pueblo, CO $470,000 1 Conifer, CO $3,113,000 2 Santa Rosa, CA, Seattle, WA Annualized sales # stores added Locations $9,000,000 3 Arcata, McKinlv. CA Bellevue, WA 2018 • $15m in acquisitions
Slide 7: 2017 Highlights
OTCQX: GRWG 7 2017 Highlights • Sales increased 80% 2017 over 2016 • Same Store Sales increased 43% 2017 over 2016 • Raised $14.2M in equity capital(includes $9m raise in Jan 2018) • Acquired Seattle Hydro Spot, located in Seattle, WA • Acquired Sonoma Hydro and consolidated GrowGen Santa Rosa into
Slide 8: Store Acquisitions 2018
OTCQX: GRWG 8 Store Acquisitions 2018 • Humboldt Depot, Arcata, CA, 2 stores, closed 1 st Q 2018 $4.0M in Rev., $400k in net income • East Coast Hydroponics, Warwick, R.I., largest hydro store on the East Coast $5.0M in Rev.,$750k in net income , closed 1 st Q 2018 • Additional acquisition target ma
Slide 9: Market Overview
OTCQX: GRWG 9 Market Overview • Commercial cultivation is exploding • US hydroponic sales projected to exceed $4.5B by 2020 • Highly fragmented retail space – >1,000 existing hydroponic stores – Smaller players struggling to compete as commercial market expands • ~7,000 licensed commercial growers i
Slide 10: Investment Considerations
OTCQX: GRWG 10 Investment Considerations • Established market presence focused on “picks and shovels” of cultivation equipment & supplies, located in close proximity to commercial growers • U.S. cannabis market is expected to reach $23B by 2020 (1) • Strong year - over - year growth – FY2017 revenue
Slide 11: Key Financial Metrics
OTCQX: GRWG 11 Key Financial Metrics Attractive business profile for increasing shareholder value Gross Margin ~30% - 35% 27.7% Target 2017 Acquisition model 3X $ Each $1M in capital drives ~$3M in annual revenue Commercial Cannabis Grower 15 - 20% of total sales will be invested in hydroponic and a
Slide 12: Growth Strategy: National Expansion
OTCQX: GRWG 12 Growth Strategy: National Expansion Growth to be fueled by both new store openings and acquisitions • Current operations in 15 stores across 5 states • 2018 - 2019 expansion markets: CA,OR,MI and MA - Current Operations - Targeted for Expansion in 2018 - 2018 growgeneration.com Alabam
Slide 13: GrowGeneration Plays a Critical Role in the Professional Hydroponic Supply Chain
OTCQX: GRWG 13 growgeneration.com Small – 39% of 2017 net sales • <$10K in average annual purchases Medium – 41% of 2017 net sales • $10K - $100K in average annual purchases Large – 20% of 2017 net sales • >$100K in average annual purchases GrowGeneration Plays a Critical Role in the Professional Hy
Slide 14: One Stop Shop for Industrial Growers
OTCQX: GRWG 14 One Stop shop for Industrial Growers growgeneration.com % of 2017 Sales 29% 23% 18% 17% 8% 5% Key Products Key Suppliers Nutrients Hydroponics Climate Control Lighting Plant Production Soil and Containers Active Aqua
Slide 15: Growth Strategy: B2B Platform
OTCQX: GRWG 15 • Online purchasing platform for growers to access online - Q1 2018 launch • Features Custom Pricing New item requests Searchable inventory database of over 10,000 items Pick - up at a GrowGen location or drop to the grow • Content - rich website designed around topics of high grower
Slide 16: Large Inventory and Supply Chain
OTCQX: GRWG 16 Large Inventory and Supply Chain Selection - Service - Solutions growgeneration.com
Slide 17: Leadership and Strategic Investors
OTCQX: GRWG 17 Leadership and Strategic Investors Strategic Investors Board of Directors and Executive Management Darren Lampert CEO Director Steven Aiello Director Sean Stiefel Director Merida Capital Partners Robert Yosaitis Michael Salaman President Director ‒ Founding member of law firm Lampert
Slide 18: Company Contact
Company Contact Darren Lampert, Chief Executive Officer GrowGeneration Corp., Denver, CO Tel 800.935.8420 | darren@growgeneration.com 18 OTcQX: GAWG growgeneration.com ayy