Last10K.com

Aerogrow International, Inc. (AERO) SEC Filing 8-K Material Event for the period ending Tuesday, February 16, 2021

Aerogrow International, Inc.

CIK: 1316644 Ticker: AERO

 

Exhibit 99.1

 

AeroGrow Reports 3rd Quarter Results

 

 

3rd Quarter Revenue Increases 107% to $38.4 Million

 

3rd Quarter Operating Profit Increases 290% to $4.7 Million

  Nine month results: Revenue up 151% to $69.1 Million; Income From Operations Rises to $8.7 Million, up from a Prior Year loss of $918 Thousand

 

 

Boulder, CO - (February 16, 2021) - 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 third quarter ended December 31, 2020.

 

For the quarter ended December 31, 2020 the Company recorded net revenue of $38.4M, an increase of 107% over the same period in the prior year.  Income from Operations was $4.7M, an increase of 290% vs. the prior year. Gross margin improved to 41.1%, an increase of 590 basis points vs the prior year. 

 

For the nine months ended December 31, 2020, net revenue stands at $69.1M, an increase of 151% vs. the same period last year. Income from Operations was $8.7M, up from a loss of $918K the prior year. Gross margin for the period improved to 42.0%, up 760 basis points vs. the prior year.

 

Forward-Looking Statements

 

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: Statements by J. Michael Wolfe and/or the Company, statements regarding growth of the AeroGarden product line, ability to raise capital, optimism related to the business, expanding sales, market acceptance of developments and enhancements to our product line, improved margins and profitability, and other statements in this press release are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the Company’s business. Words such as expects, anticipates, intends, plans, believes, sees, estimates and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. Actual results could vary materially from the description contained herein due to many factors including continued market acceptance of the Company’s products or the need to raise additional capital. In addition, actual results could vary materially based on changes or slower growth in the indoor garden market; the potential inability to realize expected benefits and synergies; domestic and international business and economic conditions; changes in customer demand or ordering patterns; changes in the competitive environment including pricing pressures or technological changes; technological advances; shortages of manufacturing capacity; future production variables impacting excess inventory and other risk factors listed from time to time in the Company’s Securities and Exchange Commission (SEC) filings, including in “Item 1A Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2020. The forward-looking statements contained in this press release speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.

 

Additional detailed information concerning a number of the important factors that could cause actual results to differ materially from the forward-looking information contained in this release is readily available in the Company’s publicly filed quarterly, annual and other reports. The Company disclaims any obligation to update developments of these risk factors or to announce publicly any revision to any of the forward-looking statements contained in this release, or to make corrections to reflect future events or developments.

 

 

 

AEROGROW INTERNATIONAL, INC.

CONDENSED BALANCE SHEETS

 

   

December 31, 2020

   

March 31, 2020

 

(in thousands, except share and per share data)

ASSETS

 

(Unaudited)

   

(Derived from

Audited Statements)

 

Current assets

               

Cash

  $ 13,636     $ 9,046  

Restricted cash

    15       15  

Accounts receivable, net of allowance for doubtful accounts of $823 and $376 at December 31, 2020 and March 31, 2020, respectively

    15,155       3,422  

Other receivables

    571       257  

Inventory, net

    11,593       4,788  

Prepaid expenses and other

    2,888       1,392  

Total current assets

    43,858       18,920  

Property and equipment and intangible assets, net of accumulated depreciation of $5,962 and $5,467 at December 31, 2020 and March 31, 2020, respectively

    2,224       1,229  

Operating lease right-of-use

    1,121       1,229  

Deposits

    555       669  

Total assets

  $ 47,758     $ 22,047  
                 

LIABILITIES AND STOCKHOLDERS’ EQUITY

               

Current liabilities

               

Accounts payable

  $ 8,102     $ 2,332  

Accounts payable related party

    2,170       2,396  

Accrued expenses

    7,844       2,308  

Finance lease liability

    -       29  

Notes payable related party-current portion

    6,515       -  

Debt associated with sale of intellectual property-current portion

    10       17  

Operating lease liability-current portion

    146       58  

Total current liabilities

    24,787       7,140  

Long term liabilities

               

Notes payable related party

    900       900  

Operating lease liability

    1,090       1,201  

Other liability

    -       297  

Total liabilities

    26,777       9,538  

Commitments and contingencies

               

Stockholders’ equity

               

Common stock, $.001 par value, 750,000,000 shares authorized, 34,328,036 shares issued and outstanding at December 31, 2020 and March 31, 2020, respectively

    34       34  

Additional paid-in capital

    140,817       140,817  

Accumulated deficit

    (119,870

)

    (128,342

)

Total stockholders’ equity

    20,981       12,509  

Total liabilities and stockholders’ equity

  $ 47,758     $ 22,047  

 

 

 

AEROGROW INTERNATIONAL, INC.

CONDENSED STATEMENTS OF OPERATIONS

 

   

Three Months ended

December 31,

   

Nine Months ended

December 31,

 

(in thousands, except per share data)

 

2020

   

2019

   

2020

   

2019

 

Net revenue

  $ 38,367     $ 18,526     $ 69,088     $ 27,424  

Cost of revenue

    22,594       12,001       40,051       17,978  

Gross profit

    15,773       6,525       29,037       9,446  
                                 

Operating expenses

                               

Research and development

    454       308       1,049       794  

Sales and marketing

    7,860       3,780       13,563       6,553  

General and administrative

    2,751       1,230       5,731       3,017  

Total operating expenses

    11,065       5,318       20,343       10,364  
                                 

Profit (loss) from operations

    4,708       1,207       8,694       (918

)

                                 

Other expense, net

                               

Interest expense – related party

    (136

)

    (137

)

    (184

)

    (191

)

Other expense, net

    (14

)

    (4

)

    (38

)

    (9

)

Total other expense, net

    (150

)

    (141

)

    (222

)

    (200

)

                                 

Net income (loss)

  $ 4,558     $ 1,066     $ 8,472     $ (1,118

)

                                 

Net income (loss) per share, basic and diluted

  $ 0.13     $ 0.03     $ 0.25     $ (0.03

)

                                 

Weighted average number of common shares outstanding, basic and diluted

    34,328       34,328       34,328       34,328  

 

 

About AeroGrow International, Inc.

 

Headquartered in Boulder, Colorado, AeroGrow International, Inc. is the leader in the rapidly growing indoor gardening category. AeroGardens allow anyone to grow farmer’s market fresh herbs, salad greens, tomatoes, chili peppers, flowers and more, indoors, year-round, so simply and easily that no green thumb is required. With an AeroGarden…you can grow anything! In April 2013, AeroGrow entered into a strategic partnership with Scotts Miracle-Gro to continue to expand the indoor gardening market. For more information, visit http://www.aerogrow.com.

 

 

Investor Relations: 

Grey Gibbs

Senior Vice President of Finance and Accounting

grey@aerogrow.com

303-444-7755

 

 

 

 

View differences made from one to another to evaluate Aerogrow International, Inc.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Aerogrow International, Inc..

Continue

Assess how Aerogrow International, Inc.'s management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Aerogrow International, Inc.'s Definitive Proxy Statement (Form DEF 14A) filed after their 2021 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors

Continue

SEC Filing Tools

Material Contracts, Statements, Certifications & more

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

Ticker: AERO
CIK: 1316644
Form Type: 8-K Corporate News
Accession Number: 0001185185-21-000222
Submitted to the SEC: Tue Feb 16 2021 5:03:30 PM EST
Accepted by the SEC: Tue Feb 16 2021
Period: Tuesday, February 16, 2021
Industry: Retail Building Materials Hardware Garden Supply
Events:
  1. Earnings Release
  2. Financial Exhibit

External Resources:
Stock Quote
Social Media

Bookmark the Permalink:
https://last10k.com/sec-filings/aero/0001185185-21-000222.htm