Summary:
- GrowLife shipped $1.4M in revenue for the period
- GrowLife reported a $1.9M sales order backlog, not included in revenue
- GrowLife increased its blended gross margins to 38.1% for the nine months September 30, 2020, up from 32.5% during the three months ended September 30, 2019
- GrowLife reduced operating expenses for the nine-month period ending September 30, 2020 by $2.8M when compared to the same period in 2019.
- GrowLife focused on positioning its EZ-CLONE business, its base business, and its expanding genetics business to benefit from potential legislative change such as federal decriminalization of cannabis
KIRKLAND, Wash., Nov. 16, 2020 (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 period ending September 30, 2020 and provided further insight into the company’s positioning as a leader in propagation and genetics for the burgeoning cannabis and hemp industries.
The Company shipped $1.4M in revenue and ended with an additional $1.9M backlog of sales for the period ending September 30, 2020. Further, as a result of the cost reduction measures implemented in 2019, the company reported increased gross margins of 38.1% for the nine months September 30, 2020, up from 32.5% during the three months ended September 30, 2019 and a gross profit of $0.5M for the third quarter 2020. Finally, GrowLife reduced its operating expenses by $2.8M during the nine-month period ending September 30, 2020 and reduced cashed used in operations by $0.5M, from $2.0M to $1.5M.
“While 2020 has not been without its challenges, I am proud to report that GrowLife continues to generate new sales, especially in our EZ-CLONE business, and further position ourselves to capitalize on the expanding opportunities in legalized hemp as well as the impending legalization of cannabis,” said GrowLife CEO Marco Hegyi. “We recognize that shipping the $1.9M backlog of sales yet unshipped products could have brought us extremely close to profitability. Therefore, we are seeking to scale up production to meet demand by the majority owned EZ CLONE subsidiary. I believe we are taking all the necessary steps to realize this potential for our shareholders as soon as possible.”
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.
Investor Relations Contact:
investors@growlifeinc.com
206-483-0059
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.