GrowGeneration Reports First Quarter 2021 Financial Results

7 min readPublished On: May 12th, 2021By
DENVER– GrowGen Corp (NASDAQ: GRWG), a chain of specialty hydroponic and organic garden centers with 53 locations across 12 states, today reported record first quarter 2021 revenues of $90 million, versus $33 million in the same period last year.
The Company also reported record first quarter 2021 GAAP pre-tax net income of approximately $7.7 million, compared to pre-tax net loss of $2.1 million in the same period last year.  Fully diluted earnings per share, inclusive of tax expense, was $0.10 compared to a net loss in the same period last year.

Non-GAAP earnings before interest, taxes, depreciation, amortization and share-based compensation (Adjusted EBITDA) was $11.1 million, compared to $2.4 million in the same period last year.

“The GrowGen team delivered an exceptionally strong start to the year, with same store sales up 51%, demonstrating the hard work of the entire team.  For the year so far, we closed 9 acquisitions, adding 15 hydroponic retail locations, bringing our total store count to 53. The strategies implemented several quarters ago, are now positively impacting margins.  I am proud and encouraged with our 110-basis point increase in gross profit margin and 510-basis point increase in adjusted EBITDA margin. These increases were accomplished despite port delays and supply chain interruptions. In addition, we acquired Char Coir, a line of premium coco-based products and, a popular B2B e-commerce website. Both companies are now fully integrated and contributing to both our top and bottom-line numbers.” Darren Lampert, GrowGeneration’s co-founder and CEO stated.  “Based upon our strong performance, we are now raising the financial outlook for the year and expect 2021 revenues to be between $450 million and $470 million, more than double the Company’s sales in 2020.  Further, at these projected sales, adjusted EBITDA guidance for 2021 is now $54 million to $58 million.”

Financial Highlights for First Quarter 2021 Compared to First Quarter 2020

  • Revenues rose 173% to $90.0 million for first quarter 2021, versus $33.0 million, for the same period last year
  • Same-store sales at 22 locations open for the same period in 2020 and 2021 were $43.0 million in first quarter 2021 versus $28.5 million for first quarter 2020, a 51% increase year over year
  • Gross profit margin for first quarter 2021 was 28.2% compared to 27.1% in the same quarter last year, an increase of 110 basis points
  • Income before tax was $7.7 million for the first quarter 2021 versus a loss of $2.1 million for the same period last year
  • Net income was $6.1 million, or $0.10 per share based on fully diluted weighted average share count of 60.3 million
  • Adjusted EBITDA was $11.1 million for first quarter 2021 versus $2.4 million for the same period last year
  • Private-label sales, inclusive of Power Si and Char Coir, were 6.2% of revenue compared to less than 1% for the same period last year
  • E-Commerce revenue was $4.4 million compared to $1.9 million for the same period in 2020, an increase of 126%
  • Cash and short-term securities on March 31, 2021 were $133.1 million, compared $177.9 million at year end December 31, 2020

M&A Activity

The company acquired the following hydroponic equipment and organic garden centers in the First Quarter of 2021:

  • Indoor Garden & Lighting, a two-store chain serving the Seattle and Tacoma, Washington area
  • Grow Depot, a two-store chain in Auburn and Augusta, Maine
  • Grow Warehouse, a four-store chain in Colorado and Oklahoma
  • San Diego Hydroponics & Organics, a four-store chain in San Diego, California
  • 55 Hydroponics, a superstore located in Santa Ana, California
  • Aquarius Hydroponics, located in Springfield, MA
  • Char Coir, an RHP-certified growing medium made from the highest-grade coconut fiber available
  •, a B2B e-commerce and marketplace for commercial growers

Expansion Efforts

The Company’s supply chain, spans 900,000 square feet of retail and warehouse space, across existing locations and signed leases in new locations, spanning 13 states.

  • On March 9, 2021, the company announced the addition 52,000 square feet in downtown Los Angeles and 70,000 square feet in Rancho Dominguez, California, that will serve as distribution and fulfillment locations for the Company
  • The Company is in the process of building several additional locations that will serve as fulfillment centers that include 25,000 square feet in Phoenix, Arizona and 58,000 square feet in Medley, Florida. These locations are expected to be opened by summer of 2021
  • In April 2021, the Company acquired Downriver Hydroponics, a Michigan garden center located in Wayne County
  • In April 2021, the Company entered into a lease for a 40,000 sq. ft facility in Jackson, MS, the 13th state of operation
  • In May 2021, the Company announced the building of a sixth Oklahoma location in Ardmore

Subsequent Events

  • On May 10, 2021, the Company hired Dennis Sheldon as Senior Vice President of Global Supply Chain. Mr. Sheldon

is a highly accomplished operations and supply chain executive with over 30 years of global experience. From 2007 to 2017, he was SVP of global supply chain for Crocs, Inc. (Nasdaq: CROX) and most recently from 2018-2020, COO at Pop Sockets, Inc.

Forward Looking Statements:

This press release may include predictions, estimates or other information that might be considered forward-looking within the meaning of applicable securities laws. While these forward-looking statements represent current judgments, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect opinions only as of the date of this release. Please keep in mind that the company does not have an obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. When used herein, words such as “look forward,” “believe,” “continue,” “building,” or variations of such words and similar expressions are intended to identify forward-looking statements. Factors that could cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are often discussed in filings made with the United States Securities and Exchange Commission, available at:, and on the company’s website, at:





(in thousands)

March 31,


December 31,


Current assets:
Cash and cash equivalents$92,042$177,912
Marketable securities41,077
Accounts receivable, net4,2763,901
Notes receivable, current3,9052,612
Inventory, net77,86254,024
Income taxes receivable655
Prepaids and other current assets20,33811,125
Total current assets239,500250,229
Property and equipment, net8,3386,475
Operating leases right-of-use assets, net14,38912,088
Notes receivables, net of current portion8811,200
Intangible assets, net42,77121,490
Other assets591301
TOTAL ASSETS$407,513354,734
Current liabilities:
Accounts payable$24,96514,623
Accrued liabilities1,083672
Payroll and payroll tax liabilities2,9162,655
Customer deposits9,9395,155
Sales tax payable2,3741,161
Income taxes payable455
Current maturities of lease liability3,8703,001
Current portion of long-term debt8383
Total current liabilities45,68527,350
Deferred tax liability1,134750
Operating lease liability, net of current maturities10,8249,479
Long-term debt, net of current portion131158
Total liabilities57,77437,737
Stockholders’ Equity:
Common stock5857
Additional paid-in capital346,176319,582
Retained earnings (deficit)3,505(2,642)
Total stockholders’ equity349,739316,997
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.




(in thousands, except per share amounts)


For the Three Months

Ended March 31,

Cost of sales64,64524,036
Gross profit25,3778,946
Operating expenses:
Store operations8,1823,639
Selling, general, and administrative7,4057,065
Depreciation and amortization2,054359
Total operating expenses17,64111,063
Net income (loss) from operations7,736(2,117)
Other income (expense):
Miscellaneous (expense) income(38)5
Interest income425
Interest expense(2)(7)
Total non-operating (expense) income, net(36)23
Net income (loss) before taxes7,700(2,094)
Provision for income taxes(1,553)
Net income (loss)$6,147$(2,094)
Net income per share, basic$.11$(.06)
Net income per share, diluted$.10$(.06)
Weighted average shares outstanding, basic58,39437,823
Weighted average shares outstanding, diluted60,31737,823
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Use of Non-GAAP Financial Information

The Company believes that the presentation of results excluding certain items in “Adjusted EBITDA,” such as non-cash equity compensation charges, provides meaningful supplemental information to both management and investors, facilitating the evaluation of performance across reporting periods. The Company uses these non-GAAP measures for internal planning and reporting purposes. These non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income or net income per share prepared in accordance with generally accepted accounting principles.

Set forth below is a reconciliation of Adjusted EBITDA to net income (loss):

Three Months Ended
March 31, 2021March 31, 2020
Net income$6,147$(2,094)
Income taxes1,553
Depreciation and Amortization2,054359
Share based compensation (option compensation, warrant compensation, stock issued for services)1,3274,115
Adjusted EBITDA$11,083$2,387
Adjusted EBITDA per share, basic$.19$.06
Adjusted EBITDA per share, diluted$.18$.06

(This information is primarily sourced from GrowGeneration Corp.  Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).

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Newsteam at Highly Capitalized are some of the most experienced writers in cannabis and psychedelics business & finance. We cover capital markets, finance, branding, marketing and everything important in between. Most of all, we follow the money.

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