Company Files Quarterly Report on Financial and Operations Results from the Period Ending June 30, 2020
- GrowLife experienced revenue growth of 11% quarter-over-quarter in second quarter of 2020 as compared to the first quarter of 2020, from $1.7M to $1.8M
- GrowLife increased its blended gross margins to 39.3% for the period ending June 30, 2020, up from 30.7% in the same quarter of 2019
- GrowLife reported a $1M sales order backlog, not included in revenue, to be shipped in the third quarter of 2020 and setting a revenue floor for the quarter not previously seen in the company’s history
- GrowLife increased gross profit for the quarter to $0.7M, an increase over the same quarter last year
- GrowLife reduced operating expenses for the six-month period ending June 30, 2020 by $1.7M when compared to the same period in 2019.
- GrowLife experienced increased demand for its commercial line of EZ-CLONE plant propagators fueled by growing demand for CBD-rich hemp and essential classification of cannabis across the country
KIRKLAND, Wash., Aug. 17, 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 June 30, 2019 and provided an insight into the company’s position in the Management's Discussion and Analysis section of the filing.
The Company reported growth in its revenue over the last quarter, reporting $1.8M for the period ending June 30, 2020, an increase of 11% quarter-over-quarter. In addition to the revenue generated, the company also reported a $1M backlog of sales, scheduled to ship in the third quarter 2020, effectively starting the third quarter with a base of $1M in revenue. Further, as a result of the cost reduction measures implemented in 2019, the company reported increased gross margins of 39.3%, up from 30.7% when compared to the same quarter in 2019 and a gross profit of $0.7M for the second quarter 2020. Finally, GrowLife reduced its operating expenses by $1.7M during the six months ending June 30, 2020 and reduced cashed used in operations by $1.2M, from $2.1M to $0.9M.
“While others are pulling back due to the pandemic and other conditions, we are so happy to announce an up quarter where our revenue beat last quarter, we saw further increases in gross margins, and have an outstanding backlog of sales revenue,” said GrowLife CEO Marco Hegyi. “We continued to operate throughout the pandemic as an essential service, providing the equipment necessary for hemp farmers and cannabis operators to continue to plant during the pivotal spring season. Beginning in March, we saw a significant increase in demand for our EZ-CLONE commercial cloning units, one of our highest priced items with attritive margins. This demand resulted in us reporting a one-million-dollar backlog in sales, something extremely noteworthy. This is a key metric I want to highlight,. Even without it, we were able to report quarter-over-quarter growth, and year-over-year increased margins. This is really exciting and the fact that we are growing during these unprecedented times, speaks volumes to how we are positioned as a company.”
Q2 2020 FINANCIAL RESULTS
Net Revenue: For the period ending June 30, 2020, GrowLife showed net revenue of $1,849,837, as compared to revenue of $1,661,800 for the period ending March 31, 2020 – an increase of 11.3%.
Gross Profit: For the period ending June 30, 2020, GrowLife had Gross Profit of $727,831 as compared to $675,773 the period ending March 31, 2020 – an increase of approximately 7.7%.
Net Loss: For the period ending June 30, 2020, GrowLife had a Net Loss of $610,523 as compared to a loss of $1,376,996 for the period ending June 30, 2019.
Cash Flow used in Operations: For the six-month period ending June 30, 2020, GrowLife had Cash Flow Used in Operations of $905,804 as compared to $2,097,363 for the same six-month period ending June 30, 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.
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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.