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 ...

U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Quarterly Report Under the Securities Exchange Act of 1934 For Quarter Ended: March 31, 2021 Commission File Number: 333-207889 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- ...

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 ...

GrowGeneration Corp. (NASDAQ:GRWG) Q4 2019 Results Conference Call March 30, 2020 9:00 AM ET Company Participants Michael Salaman - President and Co-Founder Darren Lampert - CEO and Co-Founder Monty Lamirato - CFO Tony Sullivan - COO Conference Call Participants Aaron Grey - Alliance Global Partners Eric Des Lauriers - Craig-Hallum Scott Fortune - Roth Capital Partners Glenn Mattson - Ladenburg Brian Nagel - Oppenheimer Mark Smith - Lake Street Capital Peter Wright - Intro-act Operator Good morning. My name ...

GrowGeneration Corp. (GRWG) Q3 2019 Earnings Conference Call November 11, 2019 9:00 AM ET Company Participants Michael Salaman - Co-Founder and President Darren Lampert - CEO Monty Lamirato - CFO Conference Call Participants Aaron Grey - Alliance Global Partners Mark Smith - Lake Street Capital Markets Scott Fortune - ROTH Capital Partners Glenn Mattson - Ladenburg Thalmann & Co. Operator Good morning. My name is Joanna and I'll be your conference operator today. At this time, I would like to welcome everyo ...