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KIRKLAND, Wash., May 14, 2019 (GLOBE NEWSWIRE) -- GrowLife, Inc. (OTC: PHOT) (“GrowLife” or the “Company”), one of the nation’s most recognized indoor cultivation product and service providers, today announced financial results for the quarter ending March 31, 2019, and provided an overview of recent operational highlights from that quarter. The company experienced surging growth over last year, showing a 216% increase in revenue over Q1 2018, from $708,936 to $2,244,279. Additionally, the company better positioned itself financially though increasing its gross margins from 10% in 2018 to over 34% in Q1 2019, a 218% increase.
“I could not be more excited to share the tremendous growth that GrowLife delivered in this first quarter of 2019 as shown by the increase in revenues, paired with our over 34% gross margins, compared to last year’s 8-10%,” said GrowLife CEO Marco Hegyi. “As the cannabis and hemp industries continue to experience explosive growth across the globe, GrowLife is keeping pace with this growth, which is a positive sign for our company and our future potential. This quarter’s $2,244,279 in revenue represents nearly half of the sales generated in 2018.”
“The acquisition of EZ-Clone Enterprises proved to be a strategic and successful venture, enabling our continued growth. The renowned commercial EZ-Clone product line is experiencing heavily increased demand from both the legal cannabis and hemp industries. As we look to bring further innovation in cultivation technologies to these burgeoning markets, we utilized this quarter to create a new organizational executive leadership structure that will enable the company to successfully expand further through potential future acquisitions that strategically meet our goals of expanding GrowLife’s proprietary product offering.”
FIRST QUARTER 2019 FINANCIAL RESULTS
Net Revenue: For the period ending March 31, 2019, GrowLife showed net revenue of $2,244,279 as compared to revenue of $708,936 for the period that ended March 31, 2018, an increase of 216%.
Profit Margin: Gross Profit Margin, expressed as a percentage of the difference between revenue and cost of goods sold divided by revenue, was 34% for the period ending on March 31, 2019, compared to 10% for the period ending March 31, 2018, an increase of 218%.
Balance Sheet: Total Current Liabilities for the company were $5,419,672 as of March 31, 2019, compared to $6,787,574 as of March 31, 2018, a decrease of 20%.
FIRST QUARTER 2019 OPERATIONAL HIGHLIGHTS
During Q1 2019, GrowLife, Inc. achieved the following milestones and significant events:
EXPANDED COMMERCIAL CULTIVATOR OFFERING
GrowLife, Inc. Announces Subscription Service Launch Through E-Logistics Platform for Commercial Growers
FINANCIAL HEALTH OF COMPANY
Retirement of Over One-Half Billion Shares
Reported 112% Quarter-Over-Quarter Revenue Growth in Fourth Quarter and Year End 2018 Financial Results and Operational Highlights Filing
Held an Investor Conference Call on March 11, 2019, Highlighting Strong Financial Performance in 2018 and Outlined Path for Continued Growth in 2019
ORGANIZATIONAL TEAM CHANGES
Launched New Organizational Executive Leadership Structure Enabling Growth
Hired National Sales Director Brian Knight to Expand Sales Program for Commercial Division Focusing on National Accounts
Deepened Financial Bench with Appointment of Foday Deen as Corporate Controller
SALES EVENTS AND TRADESHOWS
Executives Attended Leading European Cannabis Conference and Gain New Insight into Global Markets and Expansion Opportunities
Exhibited at Lift & Co. Cannabis Business Expo in Vancouver, Canada, Where Company Supplied Licensed Cannabis Producers with Equipment
Exhibited at Cannabis Industry’s Leading Trade Conference “Seed to Sale Show”
CEO Marco Hegyi Spoke on Y20 Seattle: Cannabis Panel Hosted by the Association for Corporate Growth
For more information about GrowLife, please visit the company’s website. Products can be purchased at ShopGrowLife.com. Additional commentary on the company and the industry as a whole can be found on the CEO’s blog.
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 more products to specialty grow operations. GrowLife is headquartered in Kirkland, Washington and was founded in 2012.
For more information, The GrowLife 2018 Stockholder Review presentation can be found on the Company’s homepage at www.GrowLifeInc.com.
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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.
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