GrowLife, Inc. Reports Over 131% Year-Over-Year Revenue Growth in Second Quarter 2018 Financial Results and Operational Ramp-Up Highlights Update
KIRKLAND, Wash., Aug. 02, 2018 (GLOBE NEWSWIRE) -- GrowLife, Inc. (OTCQB: 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 June 30, 2018, and provided an overview of recent operational highlights. The company experienced escalated growth over last year, showing a 131.7% increase in revenue over the same quarter last year. For the six-month period ending June 30, 2018, the company experienced revenue growth of over 90% over the same period last year and a gross profit increase of 71%. Other highlights include that current liabilities were decreased by approximately 5%.
“We are proud to announce another quarter of solid and significant revenue growth compared to last year, as the company continues to build momentum and expand our presence throughout North America,” said GrowLife CEO Marco Hegyi. “During the second quarter, we sowed the seeds of leadership growth with functional, full-scale plant production in a licensed grow that is considered a game-changer by many customers. Additionally, GrowLife’s launch of a Canadian e-commerce platform provides the company with a competitive advantage to capture Canada’s newly legal adult-use cannabis market. Finally, we promoted and secured top talent within our organization to strengthen our domestic and international expansion efforts with the goal of bringing greater value to our shareholders.”
SECOND QUARTER 2018 HIGHLIGHTS
During Q2 2018, GrowLife, Inc. achieved the following milestones and significant events:
Reported year-over-year revenue growth in first quarter 2018 financial results
- As previously reported in Q1 2018, the company reported continual growth over the previous year, showing a 52% increase in revenue over Q1 2017. Additionally, the company continued increasing margins with Gross Profit in the first quarter, with Gross Profits increasing almost $61,000 over Q1 2017.
Launched Canadian e-commerce platform to meet increasing demand for cultivation equipment
- The new website can be found at GrowLifeHydro.ca and features thousands of products designed to support cost-effective and efficacious indoor plant cultivation for growers of all sizes. The addition of this platform reflects GrowLife’s expansion efforts throughout Canada as the company continues to strategically position itself within Canada’s rapidly evolving legislative landscape as the regulated legal cannabis market expands with full adult use legalization.
Patent and Testing of GrowLife Grow Room Systems to Lower Customer Growing Costs
- Completed design and development and began testing of patent-pending cubical growing rooms in major cultivator location, Colorado. Preliminary results support increased quantity of plants in the same square footprint, growing 70 plants with GrowLife Rooms instead of 5-15 plants with traditional flatbed and at a lower set up cost. Additional preliminary results show over 70% lower electricity operating usage due to LED lighting, thermal management and higher efficiencies.
- Objectives of helping customers reach total growing cost of $0.35-$0.50 per gram are seen as obtainable by the end of September.
- Filed patent with USPTO for the GrowLife Grow Room, a complete turn-key grow room solution that is modular, intelligent and renders the lowest production costs for indoor cultivation.
Added Vice President of Consumer Division to leadership team
- Lauren Schmitt was promoted to Vice President of GrowLife’s Consumer Division, which includes management of the company’s e-commerce sales platform in both the United States and Canada.
- The company’s consumer division has seen significant growth in recent months due to continued legalization of cannabis across the United States and Canada. As of May 2018 eight states, accounting for more than 61 million people, allow anyone 21 years of age or older to grow cannabis plants in their home with an additional nine states that allow cultivation with a medical recommendation.
Added Vice President of Administration
- The company promoted longtime controller Will Scott to Vice President of Administration. With years of experience in finance and operations positions including within the company, Scott has demonstrated the ability to scale organizations in hyper-growth sectors while developing great relationships with vendors and other industry members. Scott oversees operational systems management for GrowLife including e-logistics for its e-commerce and retail platforms, international exchanges and taxation for its international properties and overall coordination of an efficiency strategy focusing on systems and processes.
Presented at two internationally renowned conferences
- CEO Marco Hegyi presented at the 2018 World Medical Cannabis Conference & Expo in Pittsburgh, Pa., on a panel entitled “Investing in Publicly Traded Cannabis Companies.” Hegyi discussed the opportunities and challenges that stem from working in a rapid-growth, newly regulated market.
- GrowLife sponsored an exhibition of its commercial cultivation consulting services at the Marijuana Industry Trade Association’s April 2018 meeting in Phoenix, Ariz. The event provided a valuable opportunity to align with cultivators across the state and further GrowLife’s reputation as an industry expert in the state’s rapidly expanding market.
SECOND QUARTER 2018 FINANCIAL RESULTS
Net Revenue: For the period ending June 30, 2018, GrowLife showed net revenue of $1,208,415, as compared to revenue of $521,358 for the period that ended June 30, 2017, an increase of 131.7%.
Balance Sheet: Total Assets for the company were $1,118,060 as of June 30, 2018, compared to $861,866 as of December 31, 2017.
Gross Profit: For the quarter ending June 30, 2018, GrowLife showed gross profit of $111,481, as compared to $94,341 for the same period in 2017, an increase of 18.16%.
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 2017 Stockholder Review presentation can be found on the Company’s homepage at www.GrowLifeInc.com.
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.