Company Files Quarterly Report on Financial and Operations Results from the Period Ending March 31, 2020
- GrowLife experienced revenue growth of 12.8% quarter-over-quarter in first quarter of 2020 as compared to the fourth quarter of 2019, from $1,473k to $1,661k.
- GrowLife increased its blended gross margins to 39.3% for the period ending March 31, 2020, up from the fourth quarter of 2019 and last year’s overall which were 24.2% and 31.0% respectively.
- GrowLife reported a $400k sales order backlog, not included in revenue, to be shipped in the second quarter of 2020.
- GrowLife reduced operating expenses for the period ending March 31, 2020 by $772,000 when compared to the same period in 2019.
- GrowLife focused on the market opportunity of selling hemp clones through its newly established brand “EZ-CLONEZ” which sells exclusive strains of CBD-rich hemp clones.
- GrowLife continued to operate and provide essential business services on a state-by-state basis throughout the COVID-19 pandemic.
KIRKLAND, Wash., May 29, 2020 (GLOBE NEWSWIRE) -- GrowLife, Inc. (OTC: PHOT) (“GrowLife” or the “Company”), one of the nation’s most recognized indoor cultivation product and service providers, today announced financial results for the period ending March 31, 2020 and provided some recent operational highlights.
The Company reported growth in its revenue over the last quarter, reporting $1,661k for the period ending March 31, 2020, an increase of 12.8% quarter-over-quarter. Additionally, with a continued focus on increasing profitability, the company reported increased gross margins of 39.3%, in comparison to the fourth quarter 2019 which were 24.3% and last year’s overall 31%. As a result of the cost reductions implemented in 2019, the Company reduced operating expenses by $772k and cash used in operations by $694k during the period ending on March 31, 2020 when compared to the same period in 2019.
“Most importantly, we continued to operate and show growth amidst the COVID-19 pandemic and provide essential products and services to the hemp and cannabis industries which recently saw even greater support from the states,” said GrowLife CEO Marco Hegyi. “Our entrance into the CBD-rich clone space has created a whole new market opportunity for GrowLife to capitalize on our high-margin EZ-CLONE business. While this quarter presented unprecedented challenges, our team was able to increase revenue over last quarter and continue to service the CBD industry, which continues to rapidly expand where other industries have experienced downturns. We continue to see the greatest opportunity in positioning ourselves as the industry leader in plant cloning, and more specifically, as the leader in cloning of hemp plants grown for CBD extraction.”
“We believe that with the revenue growth and increased margins we reported in the first quarter, that our fundamentals are strong, our positioning is focused, and our trajectory is encouraging. To put it is simply, we are ready and prepared to make our place in one of the largest shifts in mainstream wellness and agriculture in history,” added Hegyi.
Q1 2020 FINANCIAL RESULTS
Net Revenue: For the period ending March 31, 2020, GrowLife showed net revenue of $1,661,000, as compared to revenue of $1,473,000 for the period ending December 31, 2019 – an increase of 12.8%.
Gross Profit: For the period ending March 31, 2020, GrowLife had Gross Profit of $653,445 as compared to $356,000 for the period ending Dec. 31, 2019 – an increase of approximately 83.3%.
Net Loss: For the period ending March 31, 2020, GrowLife had a Net Loss of $1,293,675 as compared to a loss of $2,338,325 for the period ending March 31, 2019.
Cash Flow used in Operations: For the period ending March 31, 2020, GrowLife had Cash Flow Used in Operations of $422,780 as compared to $1,116,717 for the period ending March 31, 2019.
About GrowLife, Inc.
GrowLife, Inc. (PHOT) aims to become the nation’s largest cultivation service provider for cultivating organics, herbs and greens and plant-based medicines. Our mission is to help make our customers successful. Through a network of local representatives covering the United States and Canada, regional centers and its e-Commerce team, GrowLife provides essential goods and services including media, industry-leading hydroponics and soil, plant nutrients, and thousands of more products to specialty grow operations. GrowLife is headquartered in Kirkland, Washington and was founded in 2012.
Public Relations Contact:
Cassandra Dowell, 858-264-6600
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FORWARD LOOKING STATEMENT:
This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of GrowLife, Inc., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words may, would, will, expect, estimate, can, believe, potential and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond GrowLife, Inc.’s ability to control, and actual results may differ materially from those projected in the forward-looking statements as a result of various factors.