Discover the latest news from urban-gro (NASDAQ: UGRO), a fully integrated design-build organization operating in the CEA sector:
urban-gro Gets $1.5M Contract (2023/08/16)
Urban-gro, Inc., a leading professional services and design-build firm catering to the Controlled Environment, Agriculture, and commercial sectors, has secured a $1.5 million contract to deliver architectural, interior design, and engineering services for a healthcare client in the southeastern U.S. Most of the project’s revenue is expected to be recognized in the upcoming year. CEO Bradley Nattrass highlighted this as a testament to the company’s expanding presence in various sectors, including healthcare.
urban-gro, Inc. Announces Q2 2023 Financial Performance (2023/08/15)
Key Financial Highlights:
- Q2 revenue reached $18.8 million, marking a 12% sequential rise from $16.8 million and a 16% year-over-year increase from $16.3 million.
- The company reported a net loss of $5.4 million and an Adjusted EBITDA of negative $2.0 million. However, this represents a sequential improvement in Adjusted EBITDA by $1.4 million.
- Cash reserves stood at $8.6 million, a sequential boost of $1.2 million, with the company maintaining zero bank debt.
Bradley Nattrass, Chairman and CEO of Urban-Gro, remarked on the company’s Q2 performance, emphasizing the consistent revenue growth and improvement in Adjusted EBITDA. He stated, “Our Q2 results mirror the projections we shared in May, stemming from our team’s unwavering dedication to optimizing expenses and managing working capital.”
Nattrass further highlighted the company’s strategic diversification, which has bolstered non-CEA revenue growth. Despite witnessing positive trends in the cannabis industry, urban-gro remains vigilant of the sector’s challenges. The company has reallocated resources and optimized spending to align with its business scale. As a result, urban-gro has trimmed its SG&A expenses by nearly $3 million in 2023, positioning itself as a leaner and more efficient organization than the previous year.
Additional Financial Insights:
- The revenue boost was primarily attributed to a $1.7 million surge in equipment systems revenue and a $0.8 million increase in construction design-build revenue.
- Gross profit amounted to $2.9 million, or 15% of the revenue, compared to $2.8 million in Q1 and $3.5 million in the prior year.
- Operating expenses totaled $6.8 million, a sequential drop of $1.1 million from the first quarter.
- The net loss per share was $0.50, compared to a $0.17 loss per share in the previous year.
For the first half of 2023, urban-gro reported revenue of $35.6 million, a 5% decrease from the prior year. The net loss for this period was $10.6 million, or $0.97 per share.
As of June 30, 2023, the company’s backlog was approximately $79 million, encompassing construction design-build, equipment systems, and service orders.
Regarding the full-year 2023 guidance, urban-gro anticipates a consolidated revenue between $90 million to $95 million. The company remains committed to achieving positive adjusted EBITDA by year-end.
UGRO Q1 2023: Miss On EPS But Beats Revenue Estimates (2023/05/11)
Urban-gro, Inc. (UGRO) reported Q1 2023 revenues of $16.8 million, a decrease from the prior year’s $21.1 million, despite a $10.2 million revenue growth from the acquisition of Emerald C.M. The gross profit fell to $2.8 million or 17% of revenue, from $4.9 million or 23% of revenue, due to a decline in higher-margin equipment revenue and a rise in lower-margin construction design-build revenue. Operating expenses increased by $2.1 million to $7.9 million, leading to a net loss of $5.1 million or $0.48 per share. The adjusted EBITDA was negative $3.4 million, a decrease from the prior year’s positive $0.4 million. As of Q1 2023, UGRO had a cash position of $7.3 million and a backlog of approximately $105 million in contracts. Despite the performance, UGRO reiterates its 2023 full-year guidance of consolidated revenue of $100 to $120 million and Adjusted EBITDA from negative $3 million to slightly positive, expecting sequential quarterly improvements, especially in the latter half of the year.
Urban-gro Signs Over $40M in Contracts in Q1 2023 (2023/04/13)
Urban-gro, Inc., a professional services and design-build organization operating in the commercial and controlled environment agriculture (CEA) sectors, has reported a record $123 million backlog as of March 31, 2023, following the signing of over $40 million in contracts in the first quarter 2023. The contracts came from diverse clients, bolstering the company’s presence in the commercial sector. Furthermore, a $2.4 million settlement with its former bank further fortified urban-gro’s financial position. CEO Bradley Nattrass expressed optimism about the company’s momentum and capacity to return to positive adjusted EBITDA, owing to the strong demand for its integrated services and design-build platform.
Urban-gro Beats EPS & Revenue Estimates In Q4 2022 Results (2023/03/31)
Urban-gro, Inc., a design-build and professional services firm specializing in controlled environment agriculture and other commercial sectors, reported its 2022 fourth quarter and full-year financial results, along with its outlook for 2023. Despite a downturn in cannabis cultivation equipment sales, the company achieved revenue and Adjusted EBITDA in line with predictions for Q4 2022, propelled by the momentum in design-build and professional services. However, the financial results exhibited a revenue decrease partially counterbalanced by the acquisition of Emerald Construction Management, contributing to $11.5 million in design-build revenue growth, and the acquisition of DVO, which resulted in $0.3 million in professional services revenue growth. Total revenue for 2022 was $67 million, an increase of 7.9% from the previous year, with a net loss of $15.3 million. Looking forward, urban-gro predicts a 2023 revenue between $100 and $120 million and Adjusted EBITDA ranging from negative $3 million to slightly positive.
Appoints New COO (2023/01/12)
Urban-gro appoints JT Archer as its Chief Operating Officer (COO). He formerly held the position of Executive Vice President of Business Operations at the company. Mr. Archer graduated with an M.S. in management from the University of Colorado, Denver. He has held various positions in operations and sales, most recently serving as 4Front Ventures’ VP of Construction and Market Development.
Urban-Gro Reports Record Backlog (2023/01/10)
Urban-gro, a company that provides solutions to the Controlled Environment Agriculture and Commercial sectors, has reported a record backlog for its 2023 fiscal year and has reaffirmed its financial guidance for Q4 2022. The company expects to enter 2023 with a consolidated backlog of around $87 million and has reaffirmed its expectations for revenue of approximately $17 million and adjusted EBITDA of around ($1.5) million for Q4 2022. The CEO of Urban Gro will participate in a fireside chat on January 10, 2023, and management will be available for investor meetings on January 9 and 10. Urban-gro uses adjusted EBITDA, a non-GAAP measure, to measure its operating performance.
Good Lettuce Company Partners With Urban-Gro For New Facility (2022/12/20)
Good Lettuce Company has partnered with urban-gro (NASDAQ: UGRO) to launch a cutting-edge cannabis facility in Pennsville, New Jersey. The company, which holds a conditional Tier VI cannabis growing and production license, plans to authorize its annual report on January 12, 2023. Upon complete construction, the facility will span around 180,000 square feet and be equipped with machinery for extraction, cultivation, and other value-added processes. The project’s first phase will occupy roughly 60,000 square feet, with an additional 120,000 square feet planned for the second and third phases. Good Lettuce Company has granted Urban-gro a $20 million initial construction design-build contract for phase one.
Reports Q3 Results With Record USD 67M Backlog (2022/11/11)
In the third quarter, urban-gro, Inc. (UGRO) reported revenue of $12.4 million, exceeding the anticipated range of $10 to $11 million. The company also registered a net loss of $8.7 million, which includes $4.2 million in one-time operational expenses and a $1.7 million complete impairment of a one-time investment. The company’s adjusted EBITDA was $(2.3) million, slightly better than the predicted range of ($2.6) to ($2.4) million. Additionally, as of September 30, 2022, the company’s project backlog stood at a record $67 million, up $45 million from the previous quarter. Urban-gro also boasted a strong balance sheet, with $18.6 million in cash and no debt. The company projects a consolidated revenue of about $17 million and an adjusted EBITDA of approximately $(1.5) million for the fourth quarter.
Closes Asset Acquisition of DVO Engineering, Inc. (2022/11/01)
Urban-gro, Inc. (Nasdaq: UGRO) announced on November 1, 2022, the successful completion of its subsidiary, urban-gro Engineering, Inc.’s acquisition of substantially all assets of Dawson Van Orden, Inc. (DVO). The company paid a final purchase price of $6.1 million after working capital adjustments, excluding $1.1 million of contingent consideration. The payment included $1.2 million in cash, $3.8 million of a seller’s note paid out over four quarters, and $1.1 million of UGRO common stock at a pre-set price of $4 per share. DVO, generating approximately $5.5 million of revenue and greater than 20% EBITDA margins in the trailing twelve-month period ending September 30, 2022, is expected to contribute to urban-gro’s growth, margin capture, and professional services expansion. Jason Dawson, former DVO President and now urban-gro’s Executive Vice President of Engineering, is enthusiastic about joining urban-gro’s vision and trajectory.
Urban-Gro Announces USD 50M Signed Contracts in Q3 Sends Stocks Up By 11% (2022/10/12)
Urban-gro, Inc. (Nasdaq: UGRO) recently updated the progress of its design-build division and reiterated its guidance for Q3 2022. Post-acquisition of Emerald Construction Management in Q2, the company initiated its complete turnkey design-build solution that incorporates a range of services, including architecture, engineering, cultivation design, construction, equipment procurement, and integration. This move resulted in contracts worth over $10M. Furthermore, it secured design-build contracts amounting to $50M in Q3 from a varied client base, including cannabis CEA clients and leading global consumer goods enterprises. These contracts, typically 6 to 24 months, are independent of associated professional services or equipment system orders. CEO Bradley Nattrass expressed confidence in the company’s progress and future growth. Notably, the company’s share price rose 11.27% during trading hours, reflecting a positive market response.
Urban-Gro, Inc Misses on EPS & Revenue (2022/08/16)
Urban-gro, Inc. reported second-quarter revenue of $16.3 million, marking a growth of 27% compared to the same period last year. The company, however, suffered a net loss of $1.7 million in the quarter. In addition, the adjusted EBITDA for the same period stood at a deficit of $0.5 million. Despite these challenges, the firm maintains a solid financial stance with $22.8 million in cash and no debt. As of June 30, 2022, urban-gro reported a project backlog of equipment systems, construction design-build, and professional services contracts worth $22.0 million.
Signs Over $10 Million in New Design-Build & Related Contracts (2022/06/30)
Urban-gro, Inc. (Nasdaq: UGRO), an integrated design-build firm specializing in the Commercial and Controlled Environment Agriculture sectors, has announced the signing and commencement of seven design-build and construction management-related contracts following its recent acquisition of Emerald C.M. These contracts, incrementally adding to the company’s backlog, are with multi-billion dollar clients, including a leading global healthcare products and services provider and a global convenient foods and beverages leader. This progress indicates the company’s successful strategy to diversify its business by leveraging its professional services and design-build capabilities. CEO Bradley Nattrass noted that the new contracts with high-profile customers signify their diversified capabilities gained through synergistic acquisitions, and the company looks forward to further opportunities in adjacent markets.
Signs MoU for the Turnkey Design Build With E29 Labs (2022/06/01)
Urban-gro, Inc. (UGRO), a company specializing in indoor Controlled Environment Agriculture (CEA) design and construction, announced that it had entered an agreement with E29 Labs, a black, woman-owned commercial cannabis production company, to provide complete architecture, engineering, and design services for E29 Labs’ proposed 100,000 square foot cannabis production facility in New York State. Should E29 Labs secure a license, urban-gro will become their design-build partner for the facility’s completion. E29 Labs, led by co-founders Shelley Roberts, Sheldon Roberts, and cannabis industry veteran Michael Dundas, plans to transform a former Beech-Nut manufacturing plant in Canajoharie into a high-performance, socially conscious cannabis cultivation and processing facility. Urban-gro’s CEO, Bradley Nattrass, expressed excitement at the partnership and the opportunity to support New York’s social equity-focused commercial cannabis growth.
The Acquisition of Emerald CM Enables a Fully Integrated Solution (2022/05/26)
Urban-gro, Inc. (NASDAQ: UGRO), a design-build company, has expanded its business through strategic acquisitions and is now present in many countries. For example, the company recently acquired Emerald Construction Management Inc., a 37-year-old Colorado-based construction management firm. This $7.0 million deal was funded through cash and equity, with Emerald CM expecting 2021 revenues of $26.5 million and an adjusted EBITDA of $1.2 million. This acquisition complements the earlier acquisitions of 2WR+ Partners and MJ12 Design Stu. CEO Bradley Nattrass differentiates Urban-Gro as the only CEA firm to offer clients a broad range of services. In addition, the company plans to expand its European presence, leveraging Emerald CM’s contractors’ expertise in Europe, hiring its team, and seeking potential companies to acquire in the region.
Partners With TFFJ To Promote Sustainable Education (2022/05/12)
Urban-gro, Inc., a design-build company, announced the opening of an indoor farm at Bruce Randolph High School in Denver, CO, in partnership with Teens for Food Justice (TFFJ), a non-profit aimed at ending food insecurity through school-based vertical farming. The first in Colorado, the hydroponic farm trains youth aged 12-18 to construct and maintain indoor vertical farms that supply fresh food and serve as health and nutrition education hubs. Urban-gro’s CEO, Bradley Nattrass, expressed excitement about sharing the company’s expertise with the next generation and enhancing education around sustainable farming practices. Katherine Soll, CEO and Co-founder of TFFJ appreciated urban-gro’s support in constructing the farm and launching their first national location in Denver. She sees the partnership as an opportunity to improve food access while nurturing future leaders in sustainable food systems.
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