AeroGrow Reports 3rd Quarter Results

  • 3rd Quarter Revenue Increases 107% to $38.4 Million
  • 3rd Quarter Operating Profit Increases 290% to $4.7 Million
  • Nine month results: Revenue up 151% to $69.1 Million; Income From Operations Rises to $8.7 Million, up from a Prior Year loss of $918 Thousand

BOULDER, Colo., Feb. 16, 2021 (GLOBE NEWSWIRE) -- AeroGrow International, Inc. (OTCQB: AERO) (“AeroGrow" or “the Company"), the manufacturer and distributor of AeroGardens - the world’s leading family of In-Home Garden Systems™ – announced results for its third quarter ended December 31, 2020.

For the quarter ended December 31, 2020 the Company recorded net revenue of $38.4M, an increase of 107% over the same period in the prior year.  Income from Operations was $4.7M, an increase of 290% vs. the prior year. Gross margin improved to 41.1%, an increase of 590 basis points vs the prior year. 

For the nine months ended December 31, 2020, net revenue stands at $69.1M, an increase of 151% vs. the same period last year. Income from Operations was $8.7M, up from a loss of $918K the prior year. Gross margin for the period improved to 42.0%, up 760 basis points vs. the prior year.

Forward-Looking Statements
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: Statements by J. Michael Wolfe and/or the Company, statements regarding growth of the AeroGarden product line, ability to raise capital, optimism related to the business, expanding sales, market acceptance of developments and enhancements to our product line, improved margins and profitability, and other statements in this press release are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the Company’s business. Words such as expects, anticipates, intends, plans, believes, sees, estimates and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. Actual results could vary materially from the description contained herein due to many factors including continued market acceptance of the Company’s products or the need to raise additional capital. In addition, actual results could vary materially based on changes or slower growth in the indoor garden market; the potential inability to realize expected benefits and synergies; domestic and international business and economic conditions; changes in customer demand or ordering patterns; changes in the competitive environment including pricing pressures or technological changes; technological advances; shortages of manufacturing capacity; future production variables impacting excess inventory and other risk factors listed from time to time in the Company’s Securities and Exchange Commission (SEC) filings, including in “Item 1A Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2020. The forward-looking statements contained in this press release speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release. 

Additional detailed information concerning a number of the important factors that could cause actual results to differ materially from the forward-looking information contained in this release is readily available in the Company’s publicly filed quarterly, annual and other reports. The Company disclaims any obligation to update developments of these risk factors or to announce publicly any revision to any of the forward-looking statements contained in this release, or to make corrections to reflect future events or developments.

AEROGROW INTERNATIONAL, INC.
CONDENSED BALANCE SHEETS

 December 31, 2020 March 31, 2020 
(in thousands, except share and per share data)
ASSETS
(Unaudited) (Derived from
Audited Statements)
 
Current assets      
Cash$13,636 $9,046 
Restricted cash 15  15 
Accounts receivable, net of allowance for doubtful accounts of $823 and $376 at December 31, 2020 and March 31, 2020, respectively 15,155  3,422 
Other receivables 571  257 
Inventory, net 11,593  4,788 
Prepaid expenses and other 2,888  1,392 
Total current assets 43,858  18,920 
Property and equipment and intangible assets, net of accumulated depreciation of $5,962 and $5,467 at December 31, 2020 and March 31, 2020, respectively 2,224  1,229 
Operating lease right-of-use 1,121  1,229 
Deposits 555  669 
Total assets$47,758 $22,047 
       
LIABILITIES AND STOCKHOLDERS’ EQUITY      
Current liabilities      
Accounts payable$8,102 $2,332 
Accounts payable related party 2,170  2,396 
Accrued expenses 7,844  2,308 
Finance lease liability -  29 
Notes payable related party-current portion 6,515  - 
Debt associated with sale of intellectual property-current portion 10  17 
Operating lease liability-current portion 146  58 
Total current liabilities 24,787  7,140 
Long term liabilities      
Notes payable related party 900  900 
Operating lease liability 1,090  1,201 
Other liability -  297 
Total liabilities 26,777  9,538 
Commitments and contingencies      
Stockholders’ equity      
Common stock, $.001 par value, 750,000,000 shares authorized, 34,328,036 shares issued and outstanding at December 31, 2020 and March 31, 2020, respectively 34  34 
Additional paid-in capital 140,817  140,817 
Accumulated deficit (119,870) (128,342)
Total stockholders’ equity 20,981  12,509 
Total liabilities and stockholders’ equity$47,758 $22,047 
 

AEROGROW INTERNATIONAL, INC.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)

 Three Months ended
December 31,
 Nine Months ended
December 31,
 
(in thousands, except per share data)2020 2019 2020 2019 
Net revenue$38,367 $18,526 $69,088 $27,424 
Cost of revenue 22,594  12,001  40,051  17,978 
Gross profit 15,773  6,525  29,037  9,446 
             
Operating expenses            
Research and development 454  308  1,049  794 
Sales and marketing 7,860  3,780  13,563  6,553 
General and administrative 2,751  1,230  5,731  3,017 
Total operating expenses 11,065  5,318  20,343  10,364 
             
Profit (loss) from operations 4,708  1,207  8,694  (918)
             
Other expense, net            
Interest expense – related party (136) (137) (184) (191)
Other expense, net (14) (4) (38) (9)
Total other expense, net (150) (141) (222) (200)
             
Net income (loss)$4,558 $1,066 $8,472 $(1,118)
             
Net income (loss) per share, basic and diluted$0.13 $0.03 $0.25 $(0.03)
             
Weighted average number of common shares outstanding, basic and diluted 34,328  34,328  34,328  34,328 

About AeroGrow International, Inc.
Headquartered in Boulder, Colorado, AeroGrow International, Inc. is the leader in the rapidly growing indoor gardening category. AeroGardens allow anyone to grow farmer’s market fresh herbs, salad greens, tomatoes, chili peppers, flowers and more, indoors, year-round, so simply and easily that no green thumb is required. With an AeroGarden…you can grow anything! In April 2013, AeroGrow entered into a strategic partnership with Scotts Miracle-Gro to continue to expand the indoor gardening market. For more information, visit http://www.aerogarden.com.


Investor Relations: 
Grey Gibbs
Senior Vice President of Finance and Accounting
grey@aerogrow.com
303-444-7755

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