Hydroponics equipment provider Hydrofarm Holdings Group, Inc. HYFM announced its financial results Thursday for the third quarter ended September 30, 2021, reporting net sales of $123.8 million, compared to $96.7 million in the prior-year period.
Third Quarter 2021 Highlights vs. Prior Year Period
- Gross profit increased 64.9% to $30.0 million, or 24.2% of net sales, compared to $18.2 million, or 18.8% of net sales.
- Net income attributable to common stockholders was $17.3 million or $0.37 per diluted share, compared to $2.0 million or $0.08 per diluted share. Pro forma adjusted net income was $7.7 million or $0.17 per pro forma diluted share, compared to $4.3 million or $0.13 per pro forma diluted share.
- Adjusted EBITDA increased 116.7% to $16.1 million compared to $7.4 million.
- Completed two acquisitions during the quarter: Aurora Innovations and Greenstar Plant Products.
- At the end of the reporting period on Sep. 30, the company held $14.5 million in cash.
Recent Developments
- Closed on new $125 million Senior Secured Term Loan Facility.
- Completed one acquisition: Innovative Growers Equipment and related entities.
Reaffirm Full Year 2021 Outlook vs. Prior Year
- Net sales growth of 37% to 43%, or approximately $470.0 million to $490.0 million.
- Adjusted EBITDA of $47.0 million to $53.0 million, or approximately 10% to 11% of net sales.
- Pro Forma net sales of $580.0 million to $600.0 million; Pro Forma Adjusted EBITDA of $85.0 million to $95.0 million.
“During the third quarter, we grew our top line by over 28% and improved gross profit by over 540 basis points year-over-year,” Bill Toler, chairman and CEO of Hydrofarm stated. “We also benefited from a reconfiguring of our product portfolio driven by this year’s M&A activity, as over 76% of our sales now come from our proprietary and preferred brands compared to approximately 65% last year, contributing to a 117% improvement in Adjusted EBITDA.”
Price Action
Hydrofarm’s shares were trading 4.84% higher at $42.69 per share at the time of writing Friday morning.
Photo: Courtesy of Drew Taylor on Unsplash
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