GrowGeneration Corp (OTCQX:GRWG) said on Friday that third-quarter revenue soared, led by stronger sales for one of the largest specialty retail hydroponic and organic gardening stores in the country.
The company said revenue for the period more than doubled to $8.4 million, from $4 million in the same period a year ago. For the first nine months of the year, revenue was up 86% to $20 million.
The company CEO, Darren Lampert, said the acquisition of "HeavyGardens.com sets our e-commerce strategy to offer an omni-channel shopping experience for all of our customers."
The formation of GrowGen Canada and GrowGen Hemp Corp demonstrates a commitment to "unleash growth from all emerging markets in our industry," he added.
"As reported, we are forecasting a revenue run rate of approximately $42 million coming out of 2018 and $10 million for Q4 2018," Lampert said.
Sales in California have seen growth of approximately $2.6 million from the addition of four new stores through acquisitions, offset by a decline in revenues in the Santa Rosa store of approximately $281,000.
The California market experienced slower growth in the prior and current quarters because of a change in the regulatory environment and the implementation of new rules and regulations which have slowed the issuance of new licenses.
Sales of the company's products in the Colorado market declined by $17,249 and is primarily due to store consolidations and the company's focus on operating larger, more profitable stores.
GrowGeneration had total assets of $36 million, compared to $9 million as of December 31, 2017, working capital of approximately $23.1 million, compared to working capital of approximately $5.6 million as of December 31, 2017, an increase of approximately $17.5 million.
Shares of the company were trading 0.97% lower at $4.08 on Friday.
GrowGen USA owns and operates specialty retail hydroponic and organic gardening stores. The company plans to own and operate GrowGeneration-branded stores in all the major legalized cannabis states in the US and Canada.
The company is based in Denver, Colorado.
Reporting by Rene Pastor, contactable on [email protected]