Benzinga has learned revenue figures from specialty hydroponic and organic garden centers chain operator GrowGeneration Corp. (OTCQX: GRWG) set a new record.
What To Know
For the first quarter of 2019, GrowGeneration reported adjusted EBITDA of $615,509, up from a loss $366,945 in the same quarter last year. Net income of $229,421 also represents a massive surge when compared to last year’s net loss of $953,430.
Revenue came in at a record $13.1 million, up 199 percent year-over-year. Same-store sales were up 42 percent in the quarter. The company posted a small improvement in gross profit margins and operating costs.
Why It's Important
Co-founder and CEO Darren Lampert qualifies these results as “transformational,†noting GrowGeneration has improved its financial performance in all areas.
“With our significant top and bottom-line growth, we were able to reduce our operating expenses by 26 percent and our corporate overhead by over 100 percent as a percentage of our revenue," said Lampert.
What's Next
“With Q2 being our traditional strongest quarter, revenue and net income are trending significantly higher than our Q1 numbers," said Lampert. "The newly acquired stores and our new store openings are all performing better than expected. We have a strong pipeline of new acquisition targets set to close in Q2. We are increasing our guidance for 2019 revenue to $60M-65M and adjusted EBITDA to $0.14-$0.18 per share for 2019."
GrowGeneration will continue the process of up-listing itself to a larger exchange.
View more earnings on GRWG
GrowGeneration's stock closed Monday's session at $2.72 per share.
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