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Aerogrow International, Inc. (AERO) SEC Filing 10-K Annual report for the fiscal year ending Tuesday, March 31, 2020

Aerogrow International, Inc.

CIK: 1316644 Ticker: AERO

Exhibit 99.1

 

AeroGrow Reports Record FY 2020 Results and Announces Significant Developments

 

 

Q4 Sales up 29% to $11.8M; Full Year Sales up 14% to $39.2M

 

Q4 Operating Profit of $1,226K; Full Year Operating Profit of $308K

 

Significant Sales Surge Due to COVID-19 with 3X + Sales Impact Expected in Q1, FY 2021

 

“Grow Anything” Cabinet Initiative Planned to Launch in Q2

 

Stifel Engaged as a Financial Advisor in Reviewing Strategic Alternatives Intended to Maximize Shareholder Value

 

Boulder, CO - (June 23, 2020) - AeroGrow International, Inc. (OTCQB: AERO) ("AeroGrow" or the "Company"), the manufacturer and distributor of AeroGardens - the world’s leading family of In-Home Garden Systems™ – announced today its results for the 4

th Quarter and fiscal year (FY) ended March 31, 2020.

 

For the 4th Quarter ended March 31, 2020, the Company recorded net revenue of $11.8 million, an increase of 29% over the same period in the prior year.  Income from Operations was $1,226K, up from $524K in the prior year. For the year ended March 31, 2020, the Company recorded total revenue of $39.2 million, an increase of 14% over the prior year.  Income from Operations for the full year period was $308K, up from $6K in the prior year.

 

“I am very pleased with our Q4 and FY 2020 results, both of which posted record sales and profitability,” said President and CEO J. Michael Wolfe.  “All three of our distribution channels – Amazon, Direct-to-Consumer and Retail – performed very well during the 4th quarter, continuing their strong performance from the Holiday season. In addition, we continued to gain momentum on all of our key metrics, with our marketing efficiencies, gross margin and overall profitability making notable gains.

 

“Over the past several months the COVID-19 pandemic has had a significant and positive impact on our business that will further accelerate our sales in Q1 of FY 2021 – with sales in the quarter tracking to more than 3X over the prior year. Traffic on our web site and our product rankings on Amazon.com began spiking in mid-to-late March as consumers with an increased interest in at-home meal preparation began looking for access to fresh, safe food sources...and the AeroGarden certainly meets these needs. However, relatively few of these sales were recognized in March due to temporary product backorders and shipping backlogs. We have expanded our supply chain and steadily improved our order fill rates during Q1, and by early July we expect to be consistently in stock to support what we anticipate will be continued strong demand across our entire product line.

 

“I also want to update you on the Grow Anything Appliance. This initiative, which features a fully automated and self-contained indoor gardening system, will be marketed under the name “Bloom by Botanicare.”   As we’ve previously disclosed, our research indicates this is a substantial and under-served market – a market we’ve sized at well over a billion dollars world-wide. Our product testing is on track, we have placed our first manufacturing orders and we expect to launch during our 2nd quarter.

 

“I think the overall state of the business as we begin FY 2021 is at an all-time high. Not only are our sales, profitability and other key metrics all on a significant upward trend, our balance sheet has never been stronger with $10.3 million in cash on hand and $3.8 million in receivables as of 6/15/20 while carrying little debt. As disruptive as the COVID-19 pandemic has been across the world, it appears to have had a profound positive impact on consumers’ interest in the AeroGarden. While the awareness of the AeroGarden in the minds of consumers has been steadily increasing over the past several quarters, we believe that the pandemic has further increased this awareness and may be moving our products from being considered somewhat discretionary to being more of a consumer staple.

 

“I look forward to updating you on our progress on these many fronts.”

 

The Company is also announcing that the Board of Directors has formed a Special Committee consisting of the Independent Directors and this committee is conducting a broad review of strategic alternatives focused on maximizing shareholder value.  We have engaged Stifel to serve as our exclusive financial advisor to assist in this process.

 

The Company has not set a timetable for the conclusion of its review of strategic alternatives and does not expect to comment further or update the market with any additional information on this matter unless and until the Board of Directors has approved a specific transaction or otherwise deems disclosure necessary or appropriate. There is no certainty that the review of strategic alternatives will result in the Company pursuing a particular transaction or completing any such transaction.

 

 

The following information was filed by Aerogrow International, Inc. (AERO) on Tuesday, June 23, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Balance Sheets
Balance Sheets (Parentheticals)
Statement Of Changes In Stockholders??? Equity
Statements Of Cash Flows
Statements Of Operations
Accounting Policies, By Policy (Policies)
Commitments And Contingencies
Commitments And Contingencies (Details)
Commitments And Contingencies (Details) - Schedule Of Future Minimum Rental Payments For Operating Leases
Commitments And Contingencies (Tables)
Description Of The Business And Summary Of Significant Accounting Policies
Description Of The Business And Summary Of Significant Accounting Policies (Details)
Description Of The Business And Summary Of Significant Accounting Policies (Details) - Fair Value, Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation
Description Of The Business And Summary Of Significant Accounting Policies (Details) - Property, Plant And Equipment
Description Of The Business And Summary Of Significant Accounting Policies (Details) - Schedule Of Advertising Expenses
Description Of The Business And Summary Of Significant Accounting Policies (Details) - Schedule Of Fair Value, Assets And Liabilities Measured On Recurring Basis
Description Of The Business And Summary Of Significant Accounting Policies (Details) - Schedule Of Inventory
Description Of The Business And Summary Of Significant Accounting Policies (Tables)
Equity Compensation Plans And Employee Benefit Plans
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Income Taxes (Details) - Schedule Of Components Of Income Tax Expense (Benefit)
Income Taxes (Details) - Schedule Of Deferred Tax Assets And Liabilities
Income Taxes (Details) - Schedule Of Effective Income Tax Rate Reconciliation
Income Taxes (Details) - Schedule Of Income Before Income Tax, Domestic And Foreign
Income Taxes (Details) - Summary Of Operating Loss Carryforwards
Income Taxes (Tables)
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Scotts Miracle-Gro Transactions ??? Convertible Preferred Stock, Warrants And Other Transactions
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Aerogrow International, Inc. provided additional information to their SEC Filing as exhibits

Ticker: AERO
CIK: 1316644
Form Type: 10-K Annual Report
Accession Number: 0001185185-20-000885
Submitted to the SEC: Tue Jun 23 2020 5:03:07 PM EST
Accepted by the SEC: Tue Jun 23 2020
Period: Tuesday, March 31, 2020
Industry: Retail Building Materials Hardware Garden Supply

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