Hydrofarm Holdings Group Inc. (HYFM) stock gained 11.71% value on Tuesday, March 30, 2021. The HYFM stock surged after the recent announcement. Let’s have a look at it.
On March 30, 2021, Hydrofarm Holdings Group announced financial results for its fourth quarter and full fiscal year ended December 31, 2020.
Financial highlights for the fourth quarter
- For the fourth quarter, HYFM’s net sales were $87.4 million compared to $53.8 million for the same period in 2019.
- HYFM stock gross profit was $16.0 million for the reported quarter, compared to $5.5 million for the same period in 2019.
- For the fourth quarter, Selling, general and administrative expenses were $21.4 million compared to $13.0 million in the fourth quarter of 2019.
- It suffered a net loss of $10.0 million or $0.43per diluted share for the 4Q 2020 compared to a net loss of $17.7 million or $0.86per diluted share in Q4 2019.
- The HYFM adjusted net income was $0.5 million, or $0.02 per pro forma diluted share for the reported quarter compared to a loss of $9.6 million, or $0.29 per pro forma diluted share in 4Q 2019.
The year 2020 financial highlights
- For the year 2020 HYFM net sales were $342.2 million compared to $235.1 million for the prior year
- It suffered a net loss of $9.9 million or $0.46per diluted share for 2020, compared to a net loss of $40.1million or $1.94 per diluted share for 2019.
- Pro forma adjusted net income was $7.3 million, or $0.21 per pro forma diluted share compared to a loss of $(22.6) million, or $(0.68) per pro forma diluted share.
- For the year 2020 adjusted EBITDA was $21.1 million, compared to a loss of $9.5million for 2019.
- HYFM had $1.0 million of interest-bearing debt outstanding, $75.2 million in unrestricted cash and cash equivalents, and up to $45.0 million in total borrowing capacity as of December 31, 2020.
2021 Financial Outlook
- Hydrofarm Holdings Group is expecting an organic net sales growth of 20% to 25%.
- HYFM stock is expecting adjusted EBITDA to be between $28.0 million to $31.0 million.
New Products for Indoor Farming
On March 26, 2021,Hydrofarmannounced new sustainable products for indoor forming which are mentioned below.
- Autopilot 4-Light and 8-Light High Power HID Controllers
- GroStar pH EC Pens
- Plant Success King Crab
- Rock Rootinator
- Roots Organics Terp Tea Bloom Booster
- Roots Organics Terp Tea Microbe Charge
The details and specifications are given on HYFM stock’s website.
Hydrofarm is a leading distributor and manufacturer of controlled environment agriculture equipment and supplies, including high-intensity, grow lights, climate control solutions, and growing media, as well as a broad portfolio of innovative and proprietary branded products. For more than 40 years, Hydrofarm has helped growers in the U.S. and Canadian markets make growing easier and more productive. HYFM stock’s mission is to empower growers, farmers and cultivators with products that enable greater quality, efficiency, consistency and speed in their growing projects.