GrowGeneration Corp. (NASDAQ: GRWG) reported record first-quarter 2021 revenues rose 173% to $90 million, versus $33 million in the same period last year. This beat the analyst estimate for revenues of $87 million. GrowGen said 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. Net income was $6.1 million, or $0.10 per share based on a fully diluted weighted average share count of 60.3 million. This beat the Yahoo Finance analyst estimate for $0.07.
“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 Agron.io, 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 .”
The 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. Adjusted EBITDA was $11.1 million for the first quarter of 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.