New Mexico
becomes the 13th state with GrowGeneration retail
locations
Full-Year revenue guidance is
$440 to $452
million
DENVER, Oct. 13, 2021 /PRNewswire/ - GrowGeneration Corp.
(NASDAQ: GRWG), ("GrowGen"or the "Company") the nation's largest
chain of specialty hydroponic and organic garden centers, today
announced that the Company and HGS Hydro mutually terminated the
July 27, 2021, previously announced
asset purchase agreement. The two companies will continue to work
together to develop a mutually beneficial working
relationship.
"This was a difficult decision regarding the HGS Hydro
acquisition, but following appropriate due diligence and capital
allocation analysis, we decided to mutually terminate the
acquisition," said Darren Lampert,
GrowGeneration's CEO. "Importantly, our near-term objectives are to
build and acquire garden centers in new markets that are growth
opportunities for the Company."
The Company pre-announced 2021 third-quarter revenue guidance of
$114 million to $116 million, bringing year-to-date 2021 revenue
to $330 to $332 million, up 150% from 2020. Same-store sales
for the third quarter were up over 15%, versus the same period last
year. The Company announced fourth quarter 2021 revenue guidance of
$110 million to $120 million, incorporating all acquisitions and
new stores announced to date. Full-year revenue guidance has
been revised to $440 million to
$452 million, following the
termination of the planned acquisition of HGS Hydro. This
acquisition was assumed to provide about $20
million of revenue for 2021. In addition, the Company
expects adjusted EBITDA for the full year to be in the range of
$47 million to $51 million. Adjusted EBITDA is a non-GAAP
metric that represents net income before interest, taxes,
depreciation, amortization and share based compensation.
The Company also announced its acquisition of All Seasons
Gardening, an indoor-outdoor garden supply center specializing in
hydroponics systems, lighting, and nutrients. All Seasons Gardening
is the largest hydroponics retailer in New Mexico. With the acquisition of All
Seasons Gardening, GrowGen's portfolio of hydroponic garden centers
now includes 63 stores across 13 states.
"The All Seasons Gardening acquisition is a testament to our
continued investment in best-in-class hydroponic suppliers in
emerging adult-use markets across the U.S.," said Darren Lampert, GrowGeneration's CEO.
"Importantly, it represents our entry into New Mexico's cannabis market, which is
projected to become a $1 billion
industry by 2026."
Founded in 2010, All Seasons Gardening carries both
indoor and outdoor garden supplies at its retail
location in Albuquerque, New
Mexico. As part of the transaction, All Seasons Gardening'
team of nine employees will join GrowGeneration's team of over 500
grow professionals.
"All Seasons Gardening has long been proud to serve growers in
Albuquerque, New Mexico,
with a comprehensive catalog of indoor-outdoor growing supplies.
Joining forces with GrowGeneration, the nation's clear leader in
hydroponics retail, allows us to leverage our combined decades of
cultivation experience to meet the growing demands of New Mexico's flourishing legal cannabis
industry," said All Seasons Gardening founder, Long Duong. The All Seasons
Gardening acquisition is GrowGeneration's fourteenth acquired
location this year.
For more information about GrowGeneration, Corp., or to locate
its stores, please visit www.growgeneration.com.
About GrowGeneration Corp.:
GrowGeneration owns and
operates specialty retail hydroponic and organic gardening stores.
Currently, GrowGeneration has 63 stores, which include 24 locations
in California, 8 locations in
Colorado, 7 locations in
Michigan, 5 locations in
Maine, 5 locations in Oklahoma, 4 locations in Oregon, 3 locations in Washington, 2 locations in Nevada, 1 location in Arizona, 1 location in Rhode Island,1 location
in Florida, 1 location in
Massachusetts and 1 location in
New Mexico.
GrowGeneration also operates an online superstore for
cultivators at growgeneration.com and B2B e-commerce
platform, agron.io. GrowGeneration carries and sells thousands of
products, including organic nutrients and soils, advanced lighting
technology and state of the art hydroponic equipment to be used
indoors and outdoors by commercial and home growers.
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
our 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 our opinions only as of the date of this
release. Please keep in mind that we are not obligating ourselves
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 we make with the United
States Securities and Exchange Commission, available at:
www.sec.gov, and on our website, at: www.growgeneration.com.
Investor Contact:
John Evans
GrowGeneration
john.evans@growgeneration.com
Connect:
Website: www.GrowGeneration.com
Instagram: growgen
Facebook: GrowGenerationCorp
Twitter: @GrowGenCorp
Company Inquiries:
GrowGeneration Corp.
610-216-0057
michael@growgeneration.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/growgeneration-announces-mutual-termination-of-hgs-acquisition-updates-guidance-and-enters-new-mexicos-thriving-cannabis-market-with-acquisition-of-all-seasons-gardening-301399163.html
SOURCE GrowGeneration