Hydrofarm Holdings Group, Inc., a prominent independent manufacturer and distributor of branded hydroponics equipment and supplies for controlled environment agriculture (CEA) has announced that it will host a conference call on March 9, 2023, at 4:30 PM ET, to review its Q4 and full year 2022 results. The conference call will be held after the press release containing the results is issued after the market close on the same day. The call will provide a platform for the company to discuss its financial performance and business strategy, and investors will be allowed to ask questions. This conference call is a significant event for Hydrofarm’s shareholders, as it will give them insight into the company’s growth and prospects.
Hydrofarm’s Q3 Results:
Compared to the previous year, Hydrofarm has seen a decline in net sales from $123.8 million to $74.2 million. Gross profit decreased from $30.0 million to $5.9 million, with adjusted gross profit amounting to $7.8 million instead of $33.0 million. The company incurred a net loss of $(23.5) million, or $(0.52) per diluted share, as opposed to the prior year’s net income of $17.3 million, or $0.37 per diluted share. This net loss included $5.5 million in inventory, accounts receivable reserves, and related charges, primarily due to challenging industry conditions. The adjusted net loss was $(15.0) million, or $(0.33) per diluted share, compared to an adjusted net income of $31.8 million, or $0.69 per diluted share. It’s worth noting that the $5.5 million in inventory and accounts receivable reserves and related charges were not treated as an adjustment. Additionally, adjusted EBITDA decreased to $(9.0) million from $16.1 million in the previous year period. On the bright side, the company generated net cash from operating activities of $8.2 million and achieved positive Free Cash Flow(1) of $5.6 million.
Hydrofarm’s Chairman and CEO, Bill Toler, commented on the third quarter results, stating that despite the industry recession, their underlying performance was in line with their expectations. The company generated strong cash flow from operating activities and positive Free Cash Flow for the second quarter in a row. These results demonstrate their ability to navigate the challenging operating environment, and as such, they are reaffirming their full-year 2022 outlook ranges for net sales and Adjusted EBITDA.
Image provided by Hydrofarm Holdings Group
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