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KIRKLAND, Wash., March 08, 2019 (GLOBE NEWSWIRE) -- GrowLife, Inc. (OTC: PHOT) (“GrowLife” or the “Company”), one of the nation’s most recognized plant cultivation product and service providers, today announced financial results for the quarter and year ending Dec. 31, 2018, and provided an overview of recent operational highlights. The Company continued to show significant market and revenue growth throughout the year, as Q2 2018 revenue increased year over year by 131.78%, Q3 2018 by 44.22%, and Q4 2018 by 112.25% over the previous year in the same quarter. Total revenue for the period ending Dec. 31, 2018, increased 86.49% over the same period last year. Other financial highlights include an increase in gross margins of $197,000 year over year related to the acquisition of EZ-CLONE Enterprises, Inc. EZ-Clone reported gross margins of 47.5% during the quarter ended December 31, 2018. The overall balance sheet was improved with the closing of the rights offering on November 30, 2018 and total assets increased $6,356,000 over the prior year-end. Operational highlights include the Company’s market expansion into Canada where cannabis has been nationally legalized, strategic acquisition of industry leading EZ-Clone Enterprises, Inc., and initiation of research and development of a vertical commercial cannabis growing system set to hit the market in 2019.
This recap highlights various business results and developments within GrowLife’s diverse portfolio throughout the year and reflects enthusiasm for the future of the Company.
“I could not be prouder of the growth and accomplishments our company and team members achieved in 2018,” said GrowLife CEO Marco Hegyi. “Our industry experienced unprecedented legislative developments including Canada going full adult use. GrowLife is more well-positioned than ever to be a leader in the space. Not only did we expand our team, but we integrated two additional companies that will position us to capture additional market share and own the entire cultivation process from clone to harvest, as well as completed the full acquisition of a flooring company we have rebranded as ‘ShopCustomFloors.’ The acquisition of EZ-Clone redefined our path to success as a organization and enables us to supply growers with the all the tools needed, from clone to harvest. While this took an investment at the beginning of 2018, these integrations align with our goals of increasing margins for our products and driving innovation. Adding to GrowLife’s robust intellectual property portfolio, we began development of our game-changing commercial grow system that aims to drastically decrease the costs associated with cannabis cultivation.
“The team executed on our solid fiscal strategy that allowed us to secure additional, less-expensive financing to meet our expansion goals. We expanded our North American footprint with the addition of retail and fulfillment centers in Canada, California, Texas and Maine. Finally, these accomplishments were noticed by renowned news outlets covering innovations in this multi-billion-dollar industry. As promised, 2018 proved to be one of the most pivotal and exciting years for our company and we are preparing to capitalize on the momentum we experienced in the new year.”
Results will be discussed on an Investor Conference Call on Monday, March 11, 2019, at 4:30 p.m. ET.
To access the call:
Dial-In Number: 1-857-232-0157
Access Code: 422095
For those unable to participate in the conference call at that time, a replay will be available at https://smallcapvoice.com/blog/phot/ shortly after the call has concluded.
To view the Company’s 2018 Recap video, visit our website here.
Operation Highlights for 2018 Included:
Executed on Solid Fiscal Strategy
Expanded Leadership Team
Extended North American Footprint
Launched New Products and Began Testing of Others
Expanded Intellectual Property Portfolio
Further Positioning as a Thought Leader Through Continued Media Exposure
Participated in Trade Shows and Speaking Engagements
FOURTH QUARTER AND YEAR-END 2018 FINANCIAL RESULTS
Net Revenue: For the year ending Dec. 31, 2018, GrowLife, Inc. showed net revenue of $4,573,000, as compared to revenue of $2,452,104 for the year that ended December 31, 2017 – an increase of 86.49%.
Balance Sheet: Total Assets for the company were $7,217,948 as of Dec. 31, 2018 as compared to $861,866 of Dec. 31, 2017, an increase of $6,356,082.
Operating Loss: For the year ending Dec. 31, 2018, GrowLife, Inc. had an Operating Loss of $4,548,649 as compared to $2,048,954 for the year ending Dec. 31, 2017. The increase related to non-cash charges and the expansion of our business as discussed above.
Cash Flow used in Operations: For the year ending Dec. 31, 2018, GrowLife, Inc. had Cash Flow Used in Operations of $3,854,506 as compared to $2,082,493 for the year ending Dec. 31, 2017. The increase related to non-cash charges and the expansion of our business as discussed above.
About GrowLife, Inc.
GrowLife, Inc. (PHOT) aims to become the nation’s largest cultivation service provider for cultivating organics, herbs and greens and plant-based medicines. Our mission is to help make our customers successful. Through a network of local representatives covering the United States and Canada, regional centers and its e-Commerce team, GrowLife provides essential goods and services including media, industry-leading hydroponics and soil, plant nutrients, and thousands of more products to specialty grow operations. GrowLife is headquartered in Kirkland, Washington and was founded in 2012.
Public Relations Contact:
Cassandra Dowell, 858-264-6600
Investor Relations Contact:
FORWARD LOOKING STATEMENT:
This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of GrowLife, Inc., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words may, would, will, expect, estimate, can, believe, potential and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond GrowLife, Inc.’s ability to control, and actual results may differ materially from those projected in the forward-looking statements as a result of various factors.