1 INVESTOR PRESENTATION August 12, 2021 growgeneration.com 2 SAFE HARBOR STATEMENT This presentation is being provided for information purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any of the Company's securities. This presentation is not intended, nor should it be distributed, for advertising purposes, nor is it intended for broadcast or publication to the general public. Any such offer of the Company's securities will only be made in compliance with appli ...

Call Start: 09:00 January 1, 0000 9:57 AM ET GrowGeneration Corp. (NASDAQ:GRWG) Q2 2021 Earnings Conference Call August 12, 2021, 09:00 AM ET Company Participants Darren Lampert – CEO and Co-Founder John Evans – GrowGeneration's Head of Investor Relations Michael Salaman – President and Co-Founder Jeff Lasher – CFO Tony Sullivan – COO Conference Call Participants Brian Nagel – Oppenheimer Andrew Carter – Stifel Eric Des Lauriers – Greg-Hallum Capital Group Mark Smith – Lake Street Capital Owen Rickert – N ...

U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended: June 30, 2021 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 333-207889 GROWGENERATION CORPORATION (Exact name of small business issuer as specified in its charter) (State of other jurisdiction of incorporation) 5619 DTC Parkway, ...

GrowGeneration Corp. (NASDAQ:GRWG) Q1 2021 Earnings Conference Call May 13, 2020 9:00 AM ET Company Participants Darren Lampert - Chief Executive Officer Michael Salaman - President Jeff Lasher - Chief Financial Officer Tony Sullivan - Chief Operating Officer Conference Call Participants Mark Smith - Lake Street Capital Andrew Carter - Stifel Brian Nagel - Oppenheimer Eric Des Lauriers - Craig Hallum Mike Grondahl - Northland Securities Aaron Grey - Alliance Global Gerald Pascarelli - Cowen Nick Meyers - R ...

[PART I FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section presents GrowGeneration Corporation's unaudited interim consolidated financial statements and management's analysis [Item 1. Unaudited Interim Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents GrowGeneration Corporation's unaudited condensed consolidated financial statements, covering balance sheets, operations, equity, cash flows, and detailed notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's assets, liabilities, and equity at specific dates | ASSETS (in thousands) | March 31, 2021 (Unaudited) | December 31, 2020 | | :-------------------- | :------------------------- | :------------------ | | Cash and cash equivalents | $92,042 | $177,912 | | Marketable securities | $41,077 | $- | | Inventory, net | $77,862 | $54,024 | | Total current assets | $239,500 | $250,229 | | TOTAL ASSETS | $407,513 | $354,734 | | LIABILITIES & STOCKHOLDERS' EQUITY (in thousands) | March 31, 2021 (Unaudited) | December 31, 2020 | | Total current liabilities | $45,685 | $27,350 | | Total liabilities | $57,774 | $37,737 | | Total stockholders' equity | $349,739 | $316,997 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $407,513 | $354,734 | - Cash and cash equivalents decreased significantly from **$177.9 million** at December 31, 2020, to **$92.0 million** at March 31, 2021[10](index=10&type=chunk) - Total assets increased by approximately **$52.8 million**, from **$354.7 million** to **$407.5 million**, primarily driven by increases in marketable securities, inventory, intangible assets, and goodwill[10](index=10&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's revenues, expenses, and net income over specific periods | Metric (in thousands, except per share) | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | Change ($) | Change (%) | | :------------------------------------ | :-------------------------------- | :-------------------------------- | :--------- | :--------- | | Sales | $90,022 | $32,982 | $57,040 | 172.9% | | Gross profit | $25,377 | $8,946 | $16,431 | 183.7% | | Net income (loss) from operations | $7,736 | $(2,117) | $9,853 | 465.4% | | Net income (loss) | $6,147 | $(2,094) | $8,241 | 393.6% | | Net income per share, basic | $0.11 | $(0.06) | $0.17 | - | | Net income per share, diluted | $0.10 | $(0.06) | $0.16 | - | - Sales increased by **172.9%** year-over-year, reaching **$90.0 million** for Q1 2021, compared to **$33.0 million** in Q1 2020[12](index=12&type=chunk)[106](index=106&type=chunk) - The company achieved a net income of **$6.1 million** in Q1 2021, a significant turnaround from a net loss of **$2.1 million** in Q1 2020[12](index=12&type=chunk)[113](index=113&type=chunk) [Condensed Consolidated Statements of Shareholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders%20Equity) This section outlines changes in the company's equity, including common stock and retained earnings | Stockholders' Equity (in thousands) | December 31, 2020 | March 31, 2021 | | :---------------------------------- | :---------------- | :------------- | | Total Stockholders' Equity | $316,997 | $349,739 | | Common stock issued in connection with business combinations | - | $29,249 | | Share based compensation | - | $1,187 | | Net income | - | $6,147 | - Total stockholders' equity increased from **$317.0 million** at December 31, 2020, to **$349.7 million** at March 31, 2021[15](index=15&type=chunk) - Significant increases in additional paid-in capital were primarily due to common stock issued in connection with business combinations (**$29.2 million**) and share-based compensation (**$1.2 million**)[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section details the cash inflows and outflows from operating, investing, and financing activities | Cash Flow Activity (in thousands) | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | $742 | $752 | | Net cash used in investing activities | $(82,774) | $(2,761) | | Net cash used in financing activities | $(3,868) | $471 | | Net decrease in cash | $(85,870) | $(1,538) | | Cash at the end of period | $92,042 | $11,441 | - Net cash used in investing activities dramatically increased to **$82.8 million** in Q1 2021, primarily due to **$39.3 million** for store acquisitions and **$41.1 million** for marketable securities purchases[18](index=18&type=chunk)[115](index=115&type=chunk) - Cash at the end of the period decreased to **$92.0 million** from **$177.9 million** at the beginning of the period, largely driven by investing activities[18](index=18&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures for the financial statements [1. GENERAL](index=7&type=section&id=1.%20GENERAL) This note provides an overview of GrowGeneration's business and its operational context - GrowGeneration is the largest chain of hydroponic garden centers in North America, operating **53 retail stores** across **12 states**, an e-commerce platform, and proprietary businesses[21](index=21&type=chunk) - The company has been deemed an 'essential' business during the COVID-19 pandemic, experiencing minimal business interruption and only temporary supply chain delays[25](index=25&type=chunk) [2. Fair Value Measures](index=8&type=section&id=2.%20Fair%20Value%20Measures) This note details the classification and measurement of financial assets and liabilities at fair value - Financial assets and liabilities are classified into Level 1, 2, or 3 based on the observability of inputs used in fair value measurement[27](index=27&type=chunk)[30](index=30&type=chunk) | Asset (in thousands) | Level | March 31, 2021 | December 31, 2020 | | :------------------- | :---- | :------------- | :---------------- | | Cash equivalents | 2 | $110,414 | $163,418 | | Marketable securities | 2 | $41,077 | $- | | Notes receivable | 2 | $4,786 | $2,937 | | Notes receivable impaired | 3 | $- | $875 | [3. RECENT ACCOUNTING PRONOUNCEMENTS](index=9&type=section&id=3.%20RECENT%20ACCOUNTING%20PRONOUNCEMENTS) This note discusses the impact of recently adopted accounting standards on the financial statements - The adoption of ASU 2018-13 (Fair Value Measurement) and ASU 2019-12 (Simplifying the Accounting for Income Taxes) effective January 1, 2020, and December 15, 2020, respectively, did not have a material impact on the company's financial statements[34](index=34&type=chunk)[35](index=35&type=chunk) [4. REVENUE RECOGNITION](index=9&type=section&id=4.%20REVENUE%20RECOGNITION) This note outlines the company's policies for recognizing revenue from various sources | Revenue Source (in thousands) | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :---------------------------- | :-------------------------------- | :-------------------------------- | | Sales at company owned stores | $82,790 | $31,037 | | Distribution | $2,835 | $- | | E-commerce sales | $4,3

Financial Data and Key Metrics Changes - The company generated revenues of almost $200 million in 2020, representing a 143% increase year-over-year with a 63% increase in same-store sales [12][13] - Adjusted EBITDA was $19.2 million for the full year 2020, compared to $5.3 million for 2019, marking a 264% increase year-over-year [13][46] - Net income for 2020 was approximately $5.3 million, up from $1.3 million in 2019, reflecting a $4 million increase [44] Business Line Data and Key Metrics Changes - The commercial division generated over $49 million in sales, growing at 188% year-over-year [14][18] - E-commerce revenue reached $10.6 million, an increase of 123% from the previous year [14][18] - The company added 14 new stores in 2020, bringing the total to 52 hydroponic garden centers across 12 states [14][36] Market Data and Key Metrics Changes - The hydroponic industry has seen significant changes due to legislation, allowing more states to cultivate plants legally [6][7] - The company expects to reach over 60 garden centers by 2023, with plans to exceed 100 locations [12][50] Company Strategy and Development Direction - The company focuses on customer service and delivering end-to-end solutions for commercial operators, aiming to be the largest chain of hydroponic garden centers in North America [8][51] - Strategic acquisitions are a key part of the growth strategy, with the company acquiring two leading product brands expected to contribute over $10 million each in revenue in 2021 [14][19] - The company is investing in technology and supply chain efficiencies to enhance service delivery [52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the increased revenue guidance of $415 million to $430 million for 2021, driven by organic growth and acquisitions [12][60] - The company anticipates continued growth in the commercial division and e-commerce, with a focus on private label products to drive margin expansion [19][62] - Management highlighted the importance of adapting to supply chain disruptions and maintaining inventory levels to meet customer demand [81][82] Other Important Information - The company has a working capital of approximately $223 million as of December 31, 2020, primarily due to net proceeds from the sale of common stock [47] - The company plans to continue its acquisition strategy and new store openings throughout 2021 [21][50] Q&A Session Summary Question: Can you help us understand the composition between organic growth and acquisitions in the 2021 sales guidance? - Management indicated that the 2021 sales guidance reflects a combination of organic growth and successful acquisitions, with a run rate of approximately $390 million to $400 million [60] Question: What are the expectations for gross profit margins within the Agron business? - Management expects Agron to contribute about $20 million in additional revenue and enhance customer service through its ERP platform [69] Question: Can you discuss organic store openings in 2021? - Management is working on building out two distribution hubs in LA and plans to sign leases in New Jersey, Mississippi, and Illinois [70][72] Question: How do you view the impact of port disruptions and input cost inflation? - Management noted that while there are challenges, the company has maintained a strong inventory position and is confident in its margin guidance [81][84] Question: How should we think about free cash flow for the year? - Management highlighted that increased revenues and improved margins from purchasing power will positively impact free cash flow [87][89] Question: What is the strategy for expanding the private label portfolio? - Management is focused on acquiring proprietary products that show strong sales trends, leveraging data to make strategic decisions [96][98] Question: How important is the online business going forward? - Management emphasized the importance of an omni-channel strategy, integrating online and retail operations to enhance customer experience [111][114]

Financial Data and Key Metrics Changes - GrowGeneration reported record revenues for the 11th consecutive quarter, with total sales up 153% to approximately $55 million compared to $21.8 million in the same period last year [18] - Adjusted EBITDA increased by 230% to $6.6 million for the third quarter, compared to $2 million last year [18][45] - Net income from store operations grew 156% to approximately $9.6 million for the third quarter, compared to $3.8 million for the same period last year [19] - The company increased its fiscal year 2020 revenue guidance to $185 million to $190 million and adjusted EBITDA guidance to $19 million to $20 million [15][53] Business Line Data and Key Metrics Changes - Commercial sales increased by 188% and e-commerce sales rose by 112% compared to the same quarter last year [10] - Same store sales grew 73% in the third quarter compared to the same period last year [19] - The online business generated $1 million per month, reflecting a 112% increase for the third quarter versus last year [20] Market Data and Key Metrics Changes - Colorado sales were up 37% quarter-over-quarter, California up 58%, Michigan up 272%, and Oklahoma up 288% [21] - The company anticipates opening a location in New Jersey in spring 2021 following the state's approval of adult-use cannabis [8][24] Company Strategy and Development Direction - GrowGeneration aims to expand its geographic reach across the U.S. through organic growth and acquisitions, targeting over 50 locations in 15 states by 2021 [50][47] - The company is focusing on margin expansion strategies, including the deployment of private label products, which are expected to contribute 10% of total sales in 2021 [22][52] - The acquisition of The GrowBiz, the third largest hydroponic chain, is expected to add $50 million in revenue and enhance the company's commercial division [16][115] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong performance in existing markets and the potential for new market entries [50] - The company is monitoring the COVID-19 situation closely, ensuring all locations remain operational and safe for employees and customers [13][28] - Management noted that the industry is still in an early growth stage, making forecasting challenging but optimistic about future performance [63] Other Important Information - The company has approximately $50 million in cash on its balance sheet, allowing for continued growth initiatives and acquisitions [52][47] - Store operating costs as a percentage of revenue decreased to 9% from 12.6% compared to the third quarter of 2019 [23] Q&A Session Summary Question: Can you provide more color on the 2021 revenue guidance and potential acquisitions? - Management indicated that the guidance is conservative due to the pandemic and that new markets may take time to develop [58][60] Question: How do you view M&A versus greenfield openings? - The company typically acquires in mature markets and opens new stores in emerging markets, with unit economics favoring acquisitions [70][72] Question: Is the GrowBiz acquisition included in the guidance? - Yes, the GrowBiz acquisition is built into the guidance for 2021 [113] Question: What is the expected tax rate going forward? - The tax rate is influenced by federal and state rates, with some non-deductible expenses affecting the current quarter's rate [120] Question: Can you elaborate on private label initiatives and their impact on margins? - The company targets 10% of revenue from private label products, which are expected to have margins upwards of 50% [126]

U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 GROWGENERATION CORPORATION (Exact name of small business issuer as specified in its charter) | Colorado | 46-5008129 | | --- | --- | | (State of other jurisdiction | (IRS Employer | | of incorporation) | ID No.) | 930 W 7th Ave, Suite A Denver, Colorado 80204 (Address of principal executive offices) (800)935-8420 FORM 10-Q Quarterly Report Under the Securities Exchange Act of 1934 For Quarter Ended: September 30, 2020 Commission File Number: 333 ...

GrowGeneration Corp. (NASDAQ:GRWG) Q2 2020 Earnings Conference Call August 13, 2020 9:00 AM ET Company Participants Michael Salaman - President and Co-Founder Darren Lampert - Chief Executive Officer and Co-Founder Tony Sullivan - Chief Operating Officer and Executive Vice President Monty Lamirato - Chief Financial Officer and Secretary Conference Call Participants Brian Nagel - Oppenheimer & Co. Inc. Glenn Mattson - Ladenburg Thalmann & Co. Inc. Mark Smith - Lake Street Capital Markets, LLC Scott Fortune - ...

GrowGeneration Corp. (NASDAQ:GRWG) Q1 2020 Earnings Conference Call May 14, 2020 9:00 AM ET Company Participants Michael Salaman - Co-Founder and President Darren Lampert - CEO and Co-Founder Monty Lamirato - Chief Financial Officer Tony Sullivan - Chief Operating Officer Conference Call Participants Aaron Grey - Alliance Eric Des Lauriers - Craig-Hallum Capital Group Scott Fortune - Roth Capital Partners Glenn Mattson - Ladenburg Thalmann Mark Smith - Lake Street Capital Peter Wright - Intro-acts Brian Na ...