Hydrofarm Holdings Group, Inc. · NASDAQ:HYFM
Hydrofarm — Q4 2024 Earnings Presentation
15 slides from Hydrofarm's earnings presentation, Mar 5, 2025
Slide 1: Fourth Quarter 2024 Earnings Presentation
Four th Quar ter 2024 Earnings Presentat ion March 5th, 2025
Slide 2: Disclaimer: Forward-Looking Statements
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
Business Over v iew
Slide 4: Fourth Quarter and Full-Year 2024 Financial Results
Fourth Quarter and Full-Year 2024 Financial Results Net Sales within our Full-Year Expectations • Reached the midpoint of our full-year outlook range • Revenue streams were more diversified in 2024 compared to 2023 Significant Reductions in Adjusted SG&A • Effective cost savings and restructuring ac
Slide 5: Strategic Priorities
✓ Drive Diverse, High-Quality Revenue Streams • Improve Proprietary Brand Mix • Targeted Investments and New Proprietary Product Innovations • Expand Non-US/CAN and Non-Cannabis Sales ✓ Improve Profit Margins • Increase Production and Efficiency in our Manufacturing Operations • Further Optimize our
Slide 6: Financial Overview
HYDREFARM Financial Overview
Slide 7: Financial Summary
Financial Summary 7 AGPM% refers to 'Adjusted Gross Profit Margin’. ASG&A$ refers to ‘Adjusted Selling General & Administrative expenses in USD’. Adjusted Gross Profit, Adjusted SG&A, Adjusted EBITDA, and Free Cash Flow are non-GAAP measures. Please see appendix for reconciliation of GAAP to non-GAA
Slide 8: Trend in AGPM% and Adjusted SG&A$
Trend in AGPM% and Adjusted SG&A$ Quarterly 2024 AGPM% Trend • In Q4’ 24 lower sales, proprietary brand mix decline, and ~$1.4 million of inventory reserves and related charges impacted AGPM% • Actions to re-emphasize our proprietary brand focus in 2025 to improve AGPM% Continued Favorable Adjusted
Slide 9: Liquidity Remains Strong
Liquidity Remains Strong 'Total Debt' is defined as Term Loan debt principal outstanding plus finance leases and other debt. Net Debt, Liquidity and Free Cash Flow are non-GAAP measures. Please see appendix for reconciliation of GAAP to non-GAAP measures. Cash and cash equivalents $26.1 Total Debt $
Slide 10: Debt Details: Revolving Line of Credit and Senior Secured Term Loan
Revolving Line of Credit ✓ $35 million Total Facility Size (effective in Q4’ 24) ✓ $0M Drawn and $13 million available as of 12/31/24 ✓ Adjusted Term SOFR Rate + grid-based spread ✓ Availability varies with borrowing base ✓ Matures 6/30/2026 Senior Secured Term Loan ✓ $119.3 million in principal out
Slide 11: Fiscal 2025 Outlook on Key Metrics
Net Sales1 Adjusted EBITDA 2 Free Cash Flow 3 Decline 10-20% Improve Adjusted EBITDA Improve Free Cash Flow • Increase proprietary brand mix • Improve revenue diversity • AGPM% benefit from proprietary brand mix and productivity • SG&A reductions in professional & outside service fees, facilities an
Slide 12: Appendix
‘ Appendix
Slide 13: Hydrofarm's Value Proposition and Customer Base
Source: Company Information Specialty hydroponic retailers Garden centers / retail eCommerce Greenhouse / channel partners Selling to a fragmented customer base… Branded manufacturer and distributor serving the CEA (Controlled Environment Agriculture) market Hydrofarm’s Value Proposition Proprietary
Slide 14: End-to-End Category Coverage Through Proprietary and Preferred Brands
We have end-to-end category coverage through innovative, well-recognized proprietary and preferred brands Strong proprietary brand portfolio with solutions across key categories Illustrative margin benefit as we improve proprietary brand mix Distributed Brands Preferred Brands Proprietary Brands Con
Slide 15: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures ($ 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
Hydrofarm Holdings Group — Q4 2024 Earnings Presentation on 6ix