GrowGeneration Corp (NASDAQ: GRWG) stock rose over 2.1% on 25th March, 2021 (as of 09:39:38 UTC-4 · USD; Source: Google finance) post fourth quarter of FY 20.
The company has reported Pre-Tax net income of 4.5% of revenue for fourth quarter 2020, compared to -4%, for the same period last year. Adjusted EBITDA was $5.6 million for the fourth quarter of 2020, compared to $0.91 million, for the same period last year, which represents an increase of 515%.
GRWG in the fourth quarter of FY 20 has reported the adjusted earnings per share of 3 cents, while reported the adjusted revenue growth of 144 percent to $62 million in the fourth quarter of FY 20, beating the analysts’ estimates for revenue by 1.73%. The revenue growth is driven primarily due to the addition of 14 stores in 2020, and an increase in same store sales of 58%.
The Company has raised its 2021 revenue guidance to be in the range of $335 million-$350 million and raised its 2021 adjusted EBITDA guidance to be in the range of $38 million-$40 million. GrowGen plans to have 55 garden center locations by the end of 2021.
On the other hand, the company has recently acquired Agron.io, which is a leading wholesale agriculture platform that allows commercial growers to manage their purchasing and logistics in one platform. The platform manages real-time product updates, tier-pricing changes, case quantities, pallet quantities, profit margin projections, hazmat fees, ETL/UL listings and state chemical regulations, as well as guarantees the latest shipping quotes using API generated pallet and box shipping rates. They also provide financing options and manage administrative matters such as online purchasing history and order tracking. The Company projects Agron will contribute $20 million in revenue for GrowGen this year.
In addition, the company has also recently purchased the assets of Aquarius Hydroponics, an indoor-outdoor garden supply center specializing in hydroponics systems, lighting and nutrients.
Meanwhile, the company in December had raised approximately $162.5 million through an underwritten public offering of 5,750,000 shares of its common stock. The company’s working capital was $223 million on December 31, 2020, compared to $29 million on December 31, 2019, an increase of 668%. The Cash on December 31, 2020 was $178 million, compared to cash on December 31, 2019 was $13 million, and cash as of March 24, 2021 was $132 million. Shareholder Equity had increased to $317 million on December 31, 2020 versus $58 million on December 31, 2019.