Aerogrow International, Inc. (AERO) SEC Filing 10-Q Quarterly report for the period ending Saturday, September 30, 2017

Exhibit 99.1

 

AeroGrow Reports Strong Second Quarter Results

·	Net Revenue up 156% to $5.7 million

·	Significantly Improved Operating Results

·	Big Sales Increases in e-Commerce and Retail Channels

·	New Products Launching in November

Boulder, CO - (November 13, 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 second quarter of its fiscal year, ended September 30, 2017.

For the quarter ended September 30, 2017 the Company recorded net revenue of $5.7 million, an increase of 156% over the same period in the prior year.  Loss from operations was $129K, improved from a loss of $627K in the prior year period. 

“I’m very pleased to share our Fiscal Year 2018 second quarter results with you, which were strong by every measure,” said AeroGrow President & CEO J. Michael Wolfe.  “Sales were up 156%, led by strong load-in sales to our growing list of retail partners and continued gains in our e-commerce sales platforms.  Loss from operations was also greatly improved – by over 80% -- to just $129K.  Having begun the year with nearly $9 million of cash on hand, our cash position as of September 30^th was $1.4 million as we purchased inventory in support of what we anticipate will be a significant holiday selling season.  We continued to have no debt as of September 30.

“We have been focused on three key goals for our Fiscal Year 2018:  (1) increasing our presence on the web by expanding our programs at Amazon platforms worldwide and by adding several key new .com retailers, (2) increasing our retail distribution in terms of number of stores and partners, and (3) launching several innovative new products.  We have successfully executed on each of these initiatives as we enter our critical holiday selling season.

“I think you’ll be impressed at all the places you’ll be able to find the AeroGarden this fall.  In addition to Bed, Bath & Beyond, QVC and Sur La Table – where we collectively had solid success last year – we’ll also be prominently featured at many other top flight retailers such as Macy’s, Kohl’s, Home Depot and others in the U.S.  We’ll also be in Canadian Tire Stores and Hudson’s Bay in Canada and will be expanding our presence on Amazon platforms throughout Europe and conducting small tests with other UK retailers.  All of this will be in addition to growing our established programs on Amazon.com, Amazon.ca (Canada) and our own Direct Response business.

“We’ve also successfully launched several new and innovative products.  You’ll see more Wi-Fi enabled AeroGardens this fall, including the all new Harvest Wi-Fi, which is planned to be featured by Amazon.com as their Cyber Monday Deal of the Day.   We’ll also be launching two exciting and entirely new products this fall:  (1) The AeroGarden Farm; and (2) The AeroGarden Herbie, the first-ever AeroGarden designed exclusively for kids.  The Farm will be by far our most advanced indoor garden ever with 24 pods, automatically-adjustable 120 watt LED grow lights, and 24 inches of growing height to offer our biggest and best growing experience yet.  The beta testing we’ve done with the Farm has been incredible…I think this is truly going to be a game changer for not only our company but potentially for the indoor gardening market as a whole.  While we’ll only “soft launch” the AeroGarden Herbie this fall, we think it represents a potentially huge market for us – especially when you think about the possibility getting kids interested in gardening at an early age and selling to parents, grandparents and even schools.