GrowGeneration(US:GRWG)2020-11-12 15:01Revenue Growth - For the quarter ended September 30, 2020, revenue was $55 million, a 153% increase from the same period in the prior year[129]. - For the nine months ended September 30, 2020, revenues were $131.4 million, up 141.8% compared to the same period in 2019[129]. - Same store sales increased by 73% comparing Q3 2020 to Q3 2019, with notable market growth in Oklahoma (288%) and Michigan (271%)[129]. - Net revenue for the three months ended September 30, 2020, was approximately $55 million, an increase of 153% compared to $21.8 million for the same period in 2019[151]. - Same-store sales increased by $14.1 million or 73%, contributing to total revenues of $33.4 million for the same stores in the quarter ended September 30, 2020[150]. - Revenues in the Oklahoma market increased by $9.7 million or 288%, with same-store revenues rising by 51% for the quarter ended September 30, 2020[159]. - Revenues in the Michigan market increased by approximately $6.1 million or 271.7%, driven by an increase in same-store sales and acquisitions[156]. - Revenues in the California market increased approximately $5 million, or 41%[172]. - Revenues in the Rhode Island market increased approximately $8.3 million or 144%[172]. - Revenues in the Michigan market increased approximately $15.6 million or 288%[173]. - Revenues in the Oklahoma market increased $23.2 million or 312%[177]. Profitability - Adjusted EBITDA for Q3 2020 was $6.6 million, a 230% increase from $2 million in Q3 2019[130]. - Gross profit for the three months ended September 30, 2020, was approximately $14.6 million, representing a 124% increase from $6.5 million in the same period in 2019[151]. - Gross profit was approximately $35.1 million for the nine months ended September 30, 2020, an increase of approximately $19.1 million or 119%[182]. - Net income for Q3 2020 was approximately $3.3 million, compared to $1 million in Q3 2019, reflecting a positive change of approximately $2.3 million[166]. - Net income for the nine months ended September 30, 2020 was approximately $3.8 million, compared to $2.3 million for the same period in 2019, a positive change of approximately $1.5 million[187]. Expenses and Costs - The cost of goods sold increased by approximately $25.2 million or 164%, reaching approximately $40.4 million for the three months ended September 30, 2020, due to increased sales and store openings[161]. - Corporate operating expenses increased by 71% to approximately $4.5 million for the three months ended September 30, 2020, compared to $2.6 million in the same period in 2019[151]. - Operating expenses for Q3 2020 were approximately $9.5 million, up 76% from $5.4 million in Q3 2019, driven by a 153% increase in revenues and the addition of seven new store locations[164]. - Cost of goods sold for the nine months ended September 30, 2020 was approximately $96.3 million, an increase of approximately $58 million or 151%[180]. - Operating expenses increased approximately $5.2 million or 70% to approximately $12.5 million for the nine months ended September 30, 2020[183]. E-commerce Performance - Online revenues for Q3 2020 were approximately $2.9 million, a 112% increase from $1.4 million in Q3 2019[134]. - E-commerce revenues grew by $1.5 million or 112%, contributing to the overall revenue increase[151]. - E-commerce sales increased by $4.3 million or 140% for the nine months ended September 30, 2020, compared to the same period in 2019[171]. Market Expansion and Strategy - The company plans to expand to 50 stores across 15 states by the end of 2021, with new locations identified in Ohio, Illinois, Pennsylvania, New York, New Jersey, and Missouri[132]. - The company continues to focus on ten markets and e-commerce for growth opportunities, including the acquisition of Hydroponics Depot in October 2020[153]. - The company continues to focus on market expansion and new e-commerce opportunities, aiming for growth in ten markets[170]. - The company opened or acquired 6 new stores after September 30, 2019, which generated $15.8 million in revenues for the quarter ended September 30, 2020[151]. - The company opened or acquired five new stores after September 30, 2019, contributing $27 million in revenue for the nine months ended September 30, 2020[168]. Financial Position - The company reported working capital of approximately $83 million as of September 30, 2020, an increase of approximately $52.4 million from $30.6 million as of December 31, 2019[195]. - Cash and cash equivalents were approximately $55.3 million as of September 30, 2020, with no current demands or commitments that would reduce working capital[195]. - The company raised approximately $44.6 million in net proceeds from a public offering of common stock completed on July 2, 2020[197]. - Net cash provided by operating activities for the nine months ended September 30, 2020 was approximately $3.7 million, a positive difference of $6 million compared to the same period in 2019[189]. - Net cash provided by financing activities for the nine months ended September 30, 2020 was approximately $45.6 million, primarily from proceeds of a public offering[192]. - The company anticipates needing additional financing in the future to support the acquisition and opening of new stores[196]. Other Financial Information - The allowance for doubtful accounts was approximately $364,262 as of September 30, 2020, compared to $291,372 as of December 31, 2019[204]. - Revenue is recognized upon delivery or shipment of products, with customer deposits not reported as revenue until final payment is received[208]. - The company has no off-balance sheet arrangements that could materially affect its financial condition or results of operations[210]. - The estimated value of stock-based awards is recognized as expense over the service period, with adjustments made for actual forfeitures[209].