Published: Oct. 13, 2021 at 8:00 AM EDT|Updated: 8 hours ago
New Mexico becomes the 13th state with GrowGeneration retail locations
Full-Year revenue guidance is $440 to $452 million
DENVER, Oct. 13, 2021 /PRNewswire/ – GrowGeneration Corp. (NASDAQ: GRWG), (“GrowGen”or the “Company”) the nation’s largest chain of specialty hydroponic and organic garden centers, today announced that the Company and HGS Hydro mutually terminated the July 27, 2021, previously announced asset purchase agreement. The two companies will continue to work together to develop a mutually beneficial working relationship.
GrowGeneration Announces Mutual Termination of HGS Acquisition, Updates Guidance, and Enters New Mexico’s Thriving Cannabis Market with Acquisition of All Seasons Gardening (CNW Group/GrowGeneration)
“This was a difficult decision regarding the HGS Hydro acquisition, but following appropriate due diligence and capital allocation analysis, we decided to mutually terminate the acquisition,” said Darren Lampert, GrowGeneration’s CEO. “Importantly, our near-term objectives are to build and acquire garden centers in new markets that are growth opportunities for the Company.”
The Company pre-announced 2021 third-quarter revenue guidance of $114 million to $116 million, bringing year-to-date 2021 revenue to $330 to $332 million, up 150% from 2020. Same-store sales for the third quarter were up over 15%, versus the same period last year. The Company announced fourth quarter 2021 revenue guidance of $110 million to $120 million, incorporating all acquisitions and new stores announced to date. Full-year revenue guidance has been revised to $440 million to $452 million, following the termination of the planned acquisition of HGS Hydro. This acquisition was assumed to provide about $20 million of revenue for 2021. In addition, the Company expects adjusted EBITDA for the full year to be in the range of $47 million to $51 million. Adjusted EBITDA is a non-GAAP metric that represents net income before interest, taxes, depreciation, amortization and share based compensation.