Aerogrow International, Inc. (AERO) SEC Filing 10-K Annual report for the fiscal year ending Friday, March 31, 2017

Exhibit 99.1

 

AeroGrow Reports Results for the Fourth Quarter and Full Year Ended March 31, 2017

·	Full Year Sales up 20% to $23.6 million

·	Full Year Adjusted EBITDA up 365% to $1.4 million; Operating Income up $953K to ($346)K

·	Fourth Quarter Sales up 19% to $6.0 million

·	Fourth Quarter Adjusted EBITDA up 295% to $718K; Operating Income up $472K to $312K

·	YOY Gross Margin Improves by 60 Basis Points to 36.3%

·	Highly Successful Launch of New Products, More Planned for FY 2018

Boulder, CO - (June 26, 2017) - AeroGrow International, Inc. (OTCQB: AERO) (“AeroGrow” or the “Company”), which is the manufacturer and distributor of the world’s leading indoor gardening systems – the AeroGarden line of Smart Countertop Gardens™  – announced results for the fourth quarter and fiscal year (FY) ended March 31, 2017.

For the year ended March 31, 2017 the Company recorded total revenue of $23.6 million, an increase of 20% over the same period in the prior year.  Adjusted EBITDA for the full year was $1.4 million, an increase of 365% vs. $304K in the prior year period.  Results for the 4th quarter ended March 31, 2017 saw net revenue increase 19% year over year to $6.0 million and Adjusted EBITDA for the quarter improved $536K to $718K.

“Fiscal Year 2017 was a strong year by any measure – overall the best in our Company’s history,” said President and CEO J. Michael Wolfe.  Sales were up a solid 20% and adjusted EBITDA – the measure we use to evaluate our profitability and cash flow – was up a very strong 365%, indicating the leverage that exists in the business.  We also showed significant progress on our balance sheet, which as of March 31, 2017 showed no debt and over $8.8 million of cash on hand.”

“Our focus this past year was to continue the growth in our highly successful on-line channels and to establish in-store success with prominent national retailers.  The results were exceptional as we experienced + 38% sell-thru growth at Amazon.com and + 144% at Amazon.ca.  We also had good results with our other on-line retailers, including a very successful launch at Target.com.  But I think the big breakthrough for us this past year was the success we had in selected in-store initiatives as we experienced nearly 100% chain-wide sell-thru at Bed, Bath & Beyond and Sur La Table, with national roll-outs at both stores.

 “We also had strong double-digit growth in our Direct-to-Consumer business.  Additionally, we had a very successful launch into Europe – with encouraging results on the Amazon platforms in the UK, France and Germany.

“Our new products were extremely well received – particularly our launch of the world’s first Wi-Fi enabled indoor garden.  In addition, we introduced a series of gardens that feature stainless steel and colorful, high-end finishes, a major contributor to our success with housewares retailers.  Look for us to continue to be aggressive in bringing new and innovative products to market – with several significant launches planned for this fall.

“Given all of the progress we have made, I am more excited about our future than I have ever been.  In Amazon and our Direct-to-Consumer business, we have two very well-established channels of distribution that continue to grow and generate significant contribution to our profitability.  In addition, we’ve now proven that we can be successful in-store, a highly scalable distribution channel that can help us grow significantly beginning in FY 2018.  We will also look to expand upon the very promising start to our international distribution efforts by growing our sales on the Amazon platform in Europe.  And all of this is against the backdrop of our product line becoming increasingly well positioned in the market place – smart gardens, indoor gardening and hydroponic gardening all appear to be trending significantly upward, and we are uniquely qualified to address each of these major trends.

“We are better capitalized than we have ever been, with no debt and a strong cash position due to improved performance and the warrant exercise by The Scotts Miracle-Gro Company last November.  When you combine our strong balance sheet with our sales momentum, expanding distribution, and the continued innovation of our product line, we believe we are in a very strong position to grow rapidly in FY 2018 and beyond.”