Industry Overview - The cannabis industry is experiencing growth, with increasing interest in investment opportunities despite challenges in achieving consistent profits due to political factors and market momentum [1][2] - Long-term strategies are being adopted by investors, with hopes for better cannabis reform to stabilize trading momentum [2] - Innovation within the cannabis sector is seen as a key driver for future investment potential, with ongoing progress being made [3] Company Highlights - **GrowGeneration Corp. (NASDAQ:GRWG)**: The company operates retail hydroponic and organic gardening stores in the U.S. and is launching new product lines to enhance profitability and meet customer demands [4][7] - **Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM)**: The company reported Q3 2024 earnings with net sales of $44.0 million, a decrease from $54.2 million the previous year. However, gross profit margin improved to 19.4% from 6.1%, and net loss decreased to $13.1 million from $19.9 million [10] - **The Scotts Miracle-Gro Company (NYSE:SMG)**: For Q3 2024, the company reported net sales of $414.7 million, an 11% increase from $374.5 million a year ago, although the Hawthorne segment saw a significant sales decrease of 46% [12]

Group 1 - Alan Brochstein is a pioneer in the cannabis investment sector, starting his career in the securities industry in 1986 and founding AB Analytical Services in 2007 to provide consulting for investment advisors [1] - He has been managing the investing group 420 Investor since 2013, which focuses on publicly-traded cannabis stocks and moved to Seeking Alpha in 2023 [2] - The 420 Investor group covers 23 stocks, providing investment news, earnings report previews, and post-report analyses, along with model portfolios, weekly videos, summaries, and a monthly newsletter [2] Group 2 - The Big Picture is a sub-service of 420 Investor designed to keep investors updated on the cannabis sector [2]

Core Insights - GrowGeneration Corp. reported a loss per share of 19 cents in Q3 2024, which is wider than the Zacks Consensus Estimate of a loss of 11 cents and compared to a loss of 12 cents in Q3 2023 [1] - The company generated revenues of $50 million in Q3 2024, a decline of 10.1% year over year due to 25 fewer retail locations, but exceeded the consensus estimate of $48.9 million [1] - Comparable store sales improved by 12.5% year over year in the quarter [1] Financial Performance - Cost of sales decreased by 0.5% year over year to $39 million, while gross profit fell by 32.9% to $11 million, resulting in a gross margin of 21.6%, down from 29.1% in the prior year [3] - Selling, general and administrative expenses declined by 2.4% to $7.4 million, and total operating expenses fell by 5.4% year over year to $23 million [4] - Adjusted EBITDA was negative $2.4 million in Q3 2024, compared to negative $0.9 million in the prior year [4] Cash Position - At the end of Q3 2024, the company had cash and cash equivalents of $27 million, down from $30 million at the end of 2023 [5] - Inventory stood at $48 million, with prepaid inventory and other current assets totaling $7.7 million [5] - Total current liabilities were $24.5 million at the quarter's end [5] Guidance - The company expects revenues to be between $190 million and $195 million for the full year 2024 [6] Stock Performance - Over the past year, GrowGeneration shares have decreased by 20.8%, while the industry has seen a growth of 2.9% [7]

Financial Data and Key Metrics Changes - The company reported net revenue of $50 million for Q3 2024, down from $55.7 million in the same period last year, representing a decline of 10.2% primarily due to 25 store closures in the trailing 12 months [20] - Same-store sales grew by 12.5%, marking the first quarter of positive same-store sales in three years [13][20] - Gross profit margin decreased to 21.6% from 29.1% year-over-year, impacted by inventory costs and store liquidation sales [22] Business Line Data and Key Metrics Changes - Proprietary brand sales increased to 23.8% of cultivation and gardening sales, up from 19.4% in the previous year, driven by new product launches [14][21] - Net sales of commercial fixtures within the storage solutions segment increased by 12.9% to $8.6 million compared to $7.6 million in the prior year [22] Market Data and Key Metrics Changes - The company observed continued improvements in its business within Michigan, Oregon, and California markets, while facing challenges in Oklahoma [21] - The percentage of consumable product net sales in the cultivation and gardening segment remained stable at 73% compared to the prior year [22] Company Strategy and Development Direction - The company is focused on operational efficiency, enhancing product offerings, and positioning for sustainable growth towards 2025, with an emphasis on high-margin proprietary brands and digital expansion [8][9] - The restructuring plan includes closing 19 stores to prioritize best-performing locations and aims to add approximately 50 new proprietary products over the next 12 months [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the industry, noting challenges in raising capital and legislative hurdles, but remains committed to long-term profitability and growth [54][56] - The company reiterated its full-year 2024 revenue guidance of $190 million to $195 million and expects to provide guidance for 2025 in the next earnings call [17][26] Other Important Information - The company has a solid cash position of $55.2 million with no debt as of September 30, 2024, and repurchased $1.8 million of stock during the quarter [16][26] - The B2B e-commerce portal is set to launch in Q4 2024, aimed at enhancing customer experience and operational efficiency [15][46] Q&A Session Summary Question: Store rationalization and future closures - The company currently operates 31 stores, down from about 65, and may close a few more stores next year as it builds out distribution and B2B networks [32] Question: Performance of new proprietary brands - The company has seen both customer adoption of new products and sales into distribution, with proprietary brands expected to drive higher margins [34] Question: Building out the commercial business - There is significant opportunity in the commercial sector, with the company providing a range of services to make it easier for customers to shop and manage their operations [37][39] Question: Drivers of proprietary brand sales growth - Growth is driven by both new products and existing SKUs, with expectations to reach 35% of sales from proprietary brands in 2025 [41] Question: B2B portal's impact on margins - The B2B portal is expected to enhance margins through cost savings and improved inventory management, with proprietary brands contributing to higher margins [49]

GrowGeneration (GRWG) came out with a quarterly loss of $0.19 per share versus the Zacks Consensus Estimate of a loss of $0.11. This compares to loss of $0.12 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -72.73%. A quarter ago, it was expected that this company would post a loss of $0.08 per share when it actually produced a loss of $0.10, delivering a surprise of -25%.Over the last four quarters, the company has not been a ...

U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Colorado 46-5008129 (State of other jurisdiction of incorporation) (IRS Employer ID No.) Title of each class Trading symbol Name of each exchange on which registered Common Stock, par value $0.001 per share GRWG The NASDAQ Stock Market LLC Large accelerated filer ☐ Smaller reporting company ☐ Non-accelerated filer ☐ Emerging growth company ☐ Accelerated filer ☒ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHAN ...

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Green Plains Inc. (GPRE) Q2 2024 Earnings Conference Call August 8, 2024 4:30 PM ET Company Participants Philip Carlson - Managing Director, KCSA Strategic Communications Darren Lampert - Chief Executive Officer and Co-Founder Greg Sanders - Chief Financial Officer Conference Call Participants Mark Smith - Lake Street Capital Markets Brian Nagel - Oppenheimer Aaron Grey - Alliance Global Partners Andrew Carter - Stifel Operator Hello, everyone, and welcome to GrowGeneration's Second Quarter 2024 Earnings Co ...