urban-gro Q1 Revenue Increases 182% to $12 Million

urban-gro, Inc. Reports Record First Quarter 2021 Financial Results
  • Record revenues in Q1 2021 of $12.0 million compared to revenues of $4.2 million during the three months ended March 31, 2020, an increase of $7.8 million, or 182%.
  • Record Adjusted EBITDA of $0.5 million, an improvement of $1.4 million from negative ($0.9) million in Q1 2020.
  • Record Backlog of $15.2 million as of March 31, 2021, an increase of $0.6 million from $14.6 million on December 31, 2020.
  • Company to host conference call and audio webcast today, Tuesday, May 11th at 5:00 PM ET.

LAFAYETTE, Colo., May 11, 2021 (GLOBE NEWSWIRE) — urban-gro, Inc. (Nasdaq: UGRO) (“urban-gro” or the “Company”), a leading global horticulture company that engineers and designs commercial Controlled Environment Agriculture (“CEA”) facilities and integrates complex environmental equipment systems, today reported its financial results for its first quarter ended March 31, 2021.

Bradley Nattrass, Chairman and CEO of urban-gro stated, “We continued to build significant momentum on multiple fronts throughout the first quarter of this year. Beginning with our uplisting to Nasdaq and the closing of our $62.1 million financing, we have never been in a stronger financial position. With a cash position of $50 million, and having paid down nearly all of our debt, we are in an ideal position to grow, both organically and through acquisitions of complementary companies.”

This is our third consecutive quarter where we have had record revenues, positive adjusted EBITDA, and an increase in quarter end backlog of signed contracts.

Bradley Nattrass, Chairman and CEO of urban-gro

Looking to the future, we remain laser focused on the execution of strategic growth initiatives within the food and cannabis CEA space.

“This includes growing our footprint in the United States as an increasing number of states continue to legalize recreational and adult-use marijuana, gaining traction on our expansion into Europe, increasing our higher margin service offerings during both the engineering and design stages as well as post start-up, and by launching an end-to-end turn-key solution for CEA,” continued Mr. Nattrass.

First Quarter 2021 Highlights and Comparisons:

  • Record revenue of $12.0 million compared to $4.2 million in 2020, an increase of $7.8 million, or 182%.
  • Record Adjusted EBITDA of $0.5 million, compared to an Adjusted EBITDA loss of $0.9 million in 2020, an improvement of $1.4 million.
  • Record income from operations of $0.2 million, compared with a loss of ($1.4) million year prior, an improvement of $1.6 million, driven by increased revenues and gross margin.
  • As of March 31, 2021, Company has contractually committed orders (backlog) of a record $15.2 million, an increase of $0.6 million from the previous record of $14.6 million as of December 31, 2020.

Nasdaq Uplisting and Public Offering

  • On February 17, 2021, and complementing the uplisting to The Nasdaq exchange, the Company consummated an underwritten public offering of 6,210,000 shares of common stock, including the full exercise by the underwriters of their option to purchase an additional 810,000 shares of common stock to cover over-allotments. The shares were sold at a public offering price of $10.00 per share, generating gross proceeds of $62.1 million, before deducting the underwriting discounts and other offering expenses. Net proceeds, net of all costs, were used to repay debt, increase cash holdings, and for general working capital purposes to position the company for future growth.

Conference Call Details

urban-gro will host a conference call and live audio webcast to discuss the operational and financial results today, May 11, 2021 at 5:00 PM ET. Interested participants and investors may access the conference call by dialing (877) 524-8416 (domestic) or (412) 902-1028 (international). The live webcast will be accessible on the Events page of the Investors section of the urban-gro website, urban-gro.com, and will be archived for 90 days following the event.

Use of Non-GAAP Financial Information

We define Adjusted EBITDA as net income (loss) attributable to urban-gro, Inc., determined in accordance with GAAP, excluding the effects of certain operating and non-operating expenses including, but not limited to, interest expense, depreciation of tangible assets, amortization of intangible assets, impairment of investments, and stock-based compensation that we do not believe reflect our core operating performance. We use Adjusted EBITDA as a measure of our operating performance. Adjusted EBITDA is a supplemental non-GAAP financial measure, and it is not a substitute for net income (loss), income (loss) from operations, cash flows from operating activities or any other measure prescribed by GAAP.

Our board of directors and management team focus on Adjusted EBITDA as a key performance and compensation measure. We believe that Adjusted EBITDA assists us in comparing our performance over various reporting periods because it removes from our operating results the impact of items that our management believes do not reflect our core operating performance.

There are limitations to using non-GAAP measures such as Adjusted EBITDA. Although we believe that Adjusted EBITDA can make an evaluation of our operating performance more consistent because it removes items that do not reflect our core operations, other companies in our industry may define Adjusted EBITDA differently than we do. As a result, it may be difficult to use Adjusted EBITDA to compare the performance of those companies to our performance. Adjusted EBITDA should not be considered as a measure of the income generated by our business or discretionary cash available to us to invest in the growth of our business.

The following table reconciles net loss attributable to the Company to Adjusted EBITDA for the periods presented:

About urban-gro, Inc.

urban-gro, Inc.® (Nasdaq: UGRO) is a global engineering and design services company focused on the commercial horticulture market. With experience in hundreds of Controlled Environment Agriculture (CEA) facilities spanning millions of square feet, we engineer, design and integrate complex environmental equipment systems into high-performance facilities.

Once operational, urban-gro’s gro-care® Managed Services Platform leverages the company’s expertise to reduce downtime, provide continuity, and drive facility optimization. Operating as a crop-agnostic solutions provider in both food and cannabis CEA sectors, our crop-focused end-to-end approach provides a single point of accountability across all aspects of growing operations.

Visit urban-gro.com to discover how we help you gro plants and gro profits.

Original press release

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Published by NCV Newswire
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