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Aerogrow International, Inc. (AERO) SEC Filing 10-Q Quarterly report for the period ending Wednesday, September 30, 2020

Aerogrow International, Inc.

CIK: 1316644 Ticker: AERO

Exhibit 99.1

 

AeroGrow Reports 2nd Quarter Results

 

 

Revenue Increases 224% to $14.3M; Favorable Sales Trends Continue in Early Q3

 

Income From Operations Rises to $1.3M – Gross Margin Improves 800+ basis points to 41.3%

 

Six month results: Revenue up 245% to $30.7M; Income From Operations Rises to $4.0M, up from a PY loss of $2.1M; Gross Margin Improves 1,000+ basis points to 43.2%

 

Effective 11/11/20, The Company Enters into a Merger Agreement with a Subsidiary of the Scotts Miracle-Gro Company

 

Boulder, CO - (November 16, 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 results for its 2

nd quarter ended September 30, 2020.

 

The Company recorded Net Revenue of $14.3 million, an increase 224% vs. the same period in the prior year.  Income from Operations was $1.3M, up from a loss of $1.1M in the prior year period.  For the first six months of Fiscal Year 2021, Net Revenue was up 245% to $30.7M and Income from Operations rose to $4.0M, up from a loss of $2.1M the prior year.

 

“Our string of excellent results continued in the second quarter,” said J. Michael Wolfe, AeroGrow’s President & CEO. “Sales across all three of our distribution channels – Amazon, Direct-to-Consumer and Retail – were strong throughout the quarter. This is our fourth consecutive quarter with record sales and profitability, a trend which accelerated due to the COVID-19 pandemic beginning in March. That being said, it appears the significant COVID sales spike that we experienced this spring has moderated – but with the business now routinely operating at a much higher level than it was prior to the pandemic. We believe this spike reflects an increased interest in gardening, at-home meal preparation and access to fresh, safe food sources...and the AeroGarden certainly meets all of these needs.

 

“Over the past six months we have focused on refining our pricing model and reducing our product costs. This focus helped drive our gross margin up to 43.2%, an increase of over 1,000 bps vs. the same period last year. Our gross margin has also benefited from a larger portion of our sales coming through our Direct-to-Consumer channel (AeroGarden.com), which affords us better margins. In addition, our digital marketing programs continued to help drive our growth with significantly improved efficiencies. These factors drove the significant improvement in our sales and operating profit and demonstrate the leverage in our business as it continues to scale.

 

“Our general marketing and public relations campaigns for the upcoming holiday selling season launch in earnest beginning later this week. The hallmark of our campaign will be a television spot that you can view here: https://vimeo.com/478249976/71bff315ff. We are also partnering with Olympic Gold Medalist and avid gardener Aly Raisman along with former Iron Chef and restaurateur Cat Cora, who will be supporting our brand digitally to their millions of followers. In addition, the AeroGarden will be featured in Oprah Winfrey’s Holiday Gift Guide, dozens of news articles and podcasts as well as high profile television programs such as Good Morning America and the Kelly Clarkson show.

 

“A key challenge in the business has been managing our world-wide supply chain to support our triple-digit growth and what appears to be continued strong demand for our products as we approach our peak holiday selling season. While our key vendors have done a good job of delivering for us in a timely fashion, we must acknowledge that there is general infrastructural stress affecting the world’s supply chain (e.g., ocean freight, customs clearance, availability of trucks and trains, FedEx and UPS capacity constraints, etc.) that could impact our inventory levels and which represents a potential risk as we enter the key holiday selling season.

 

“Last month we introduced a new Farm model and an all new Sprout into our AeroGarden product line. We are also nearing the launch of “Bloom by Botanicare,” our large-plant growing device that we believe is the most advanced in the world. Bloom monitors and dynamically adjusts key environmental factors for each stage of a plant’s development – maximizing the speed of growth, yields, flavor and consistency of thousands of potential plant varieties. While the launch of our Bloom product has experienced several slight delays, we now have numerous units in the field and the feedback is exceptional. We expect the initial launch of the Bloom web site and preliminary marketing efforts to begin in the coming weeks.

 

“I am extremely pleased with our results for the first six months of this fiscal year. Moreover, we believe we are well prepared to deliver a successful holiday selling season and to continue building on our recent success.”

 

 

 

The following information was filed by Aerogrow International, Inc. (AERO) on Monday, November 16, 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside this 10-Q Quarterly Report

Document And Entity Information
Balance Sheets
Balance Sheets (Parentheticals)
Statement Of Changes In Stockholders??? Equity
Statements Of Cash Flows
Statements Of Operations
Accounting Policies, By Policy (Policies)
Basis Of Presentation, Liquidity And Summary Of Significant Accounting Policies
Basis Of Presentation, Liquidity And Summary Of Significant Accounting Policies (Details)
Basis Of Presentation, Liquidity And Summary Of Significant Accounting Policies (Details) - Schedule Of Advertising Expenses
Basis Of Presentation, Liquidity And Summary Of Significant Accounting Policies (Details) - Schedule Of Inventory
Basis Of Presentation, Liquidity And Summary Of Significant Accounting Policies (Tables)
Description Of The Business
Equity Compensation Plans And Employee Benefit Plans
Equity Compensation Plans And Employee Benefit Plans (Details)
Income Taxes
Leases
Leases (Details)
Leases (Details) - Lessee, Operating Lease, Disclosure
Leases (Details) - Lessee, Operating Lease, Liability, Maturity
Leases (Tables)
Notes Payable And Long Term Debt
Notes Payable And Long Term Debt (Details)
Notes Payable And Long Term Debt (Details) - Schedule Of Debt
Notes Payable And Long Term Debt (Tables)
Related Party Transactions
Related Party Transactions (Details)
Scotts Miracle-Gro Transactions ??? Convertible Preferred Stock, Warrants And Other Transactions
Scotts Miracle-Gro Transactions ??? Convertible Preferred Stock, Warrants And Other Transactions (Details)
Segment Information
Segment Information (Details)
Segment Information (Details) - Schedule Of Segment Reporting Information, By Segment
Segment Information (Tables)
Subsequent Events
Subsequent Events (Details)

Material Contracts, Statements, Certifications & more

Aerogrow International, Inc. provided additional information to their SEC Filing as exhibits

Ticker: AERO
CIK: 1316644
Form Type: 10-Q Quarterly Report
Accession Number: 0001185185-20-001620
Submitted to the SEC: Mon Nov 16 2020 5:02:40 PM EST
Accepted by the SEC: Mon Nov 16 2020
Period: Wednesday, September 30, 2020
Industry: Retail Building Materials Hardware Garden Supply

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