Hydrofarm Holdings Group, Inc. · NASDAQ:HYFM
Hydrofarm — Q1 2024 Earnings Presentation
14 slides from Hydrofarm's earnings presentation, May 14, 2024
Slide 1: First Quarter 2024 Earnings Presentation
F i r s t Q u a r te r 2 0 24 Earnings Presentation May 14, 2024
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements. This presentation contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to known and unknown risks, uncertainties and other important factors that may cause actual results to be materi
Slide 3: Business Overview
ROnGENR TH Business Overview
Slide 4: First Quarter 2024: Key Profitability Metrics Improved
First Quarter 2024: Key Profitability Metrics Improved Net Sales performance on-track to achieve full year guide • March ‘24 marked the fifth consecutive month of sequential net sales growth • Q1 industry demand levels were generally in-line with our internal expectations Improved Adjusted EBITDA to
Slide 5: 2024 Strategic Priorities
2024 Strategic Priorities Positioning brand and product portfolio for potential industry catalysts Focusing on diverse revenue streams Driving improved sales mix via Proprietary Brands Continue right-sizing our cost structure Further improving our Adjusted EBITDA margin 5
Slide 6: Financial Overview
ROnGENR TH Financial Overview
Slide 7: Financial Summary
Financial Summary Adjusted Gross Profit, Adjusted SG&A Expense and Adjusted EBITDA are non-GAAP measures. Please see appendix for reconciliation of non-GAAP to GAAP measures. 7
Slide 8: Margin Improvement Continued in Q1
Margin Improvement Continued in Q1 Q1 Adjusted Gross Profit Margin % Q1 Adjusted EBITDA Margin % 0.6% -3.4% Q1 2023 Q1 2024 +80 basis point increase in Adj. Gross Profit Margin +400 basis point increase in Adj. EBITDA Margin • Marks the fifth consecutive quarter of AGPM% YoY increases • Aided by res
Slide 9: Liquidity and Cash Flow Remain Strong
Liquidity and Cash Flow Remain Strong Balance Sheet Highlights as of March 31, 2024 Cash and cash equivalents $24.2MM Total Debt $130.0MM Net Debt $105.8MM Cash Flow Highlights 3 months ended March 31, 2024 Net Cash Used in Operations ($2.3)MM Capital Expenditures ($1.4)MM Free Cash Flow ($3.7)MM Fr
Slide 10: Debt Details
Debt Details Un-utilized Revolving Credit facility and Covenant-light Term Loan that does not mature until 2028 Revolving Line of Credit $55MM Total Facility Size $0MM Drawn and $25MM (estimated) available as of 3/31/24 Adjusted Term SOFR Rate + grid-based spread Availability varies with bor
Slide 11: Reaffirming Fiscal 2024 Outlook
Reaffirming Fiscal 2024 Outlook Key Financial Metrics and Assumptions Reaffirming 2 0 24 Fu l l Ye a r Outlook • Proprietary product sales to increase as % of total Decline low to high 1 Net Sales • Improving revenue diversity teens in % terms • Productivity in manufacturing Adjusted • Productivity
Slide 12: Appendix
ROnGENR TH Appendix
Slide 13: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures ($ in thousands) We define Adjusted EBITDA (non-GAAP) as net loss (GAAP) excluding interest expense, income taxes, depreciation, depletion and amortization, stock-based compensation including employer payroll taxes on stock
Slide 14: Slide 14
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