GrowGeneration, large chain of specialty hydroponic and organic garden centres, release financial reports for their third quarter
GrowGeneration Corp, the largest chain of specialty hydroponic and organic garden centres, with currently 25 locations, today reported financial results for its quarter ended September 30, 2019.
Darren Lampert, Co-Founder and CEO, said, "the Company's third quarter financial results reflect our continued focus on revenue growth and EBITDA expansion.
We continue to invest in technology and infrastructure, while improving the financial performance of the Company in all areas. Revenue was up 159% year over year to $21.8 million. Adjusted EBITDA was approximately $2.0 million, with adjusted EPS at a positive $.06.
"Our same store sales were up 48% versus Q3 2018. We generated triple-digit growth in Colorado, Michigan and Nevada and double-digit growth in all other markets.
Our online business rose over 1000% for the same period year over year. GrowGeneration Management Corp, our commercial division, is now approaching a $5.0 million per quarter segment of our business."
Gross profit margins increased 420 basis points, to 29.9%. Gross profit dollars were $6.5 million for the 3rd quarter 2019, an increase of $4.3 million versus the same period year over year. With our significant top and bottom-line growth, we were able to reduce our store operating expenses by 25% and our corporate overhead by over 25 % as a percentage of our revenue. The Company continues the rollout of its new ERP platform, adding our California, Michigan, Maine, Oklahoma, Nevada and Rhode Island stores to our ERP system in 2019.
The GrowGen ERP platform is designed to lower costs, improve departmental productivity, integrate our online and store sales and supply channels and provides forecasting and reporting tools. All of our current store operations will be on our ERP platform by the end of 2019.
The newly acquired stores and new store openings are all performing better than expected and have been successfully integrated into the operations of the overall Company. With our success in Oklahoma, the Company has signed 2 new leases and is opening its 24th and 25th locations in Q4 2019.
The Company has nearly $16.0 million in cash, which will allow the Company to close new acquisitions targets expected to close in the fourth quarter of 2019 and into 2020. The Company is also investing in opening new store locations.
We have filed our NASDAQ application and expect to have an update shortly. We are raising our revenue guidance for 2019 revenue to $74M-76M and non-GAAP adjusted EBITDA of $.14-$.18 per share, based on 35.7 million shares outstanding."
To learn more about GrowGeneration Corp visit their Company HQ here.
Disclaimer: Past performance is not an indicator of future performance.
Disclaimer: past performance is not an indicator of future performance
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