urban-gro, Inc. (Nasdaq: UGRO), a company specializing in professional services and Design-Build for Controlled Environment Agriculture (CEA) and commercial sectors, disclosed its financial results for the fourth quarter and full year of 2023. The company also provided preliminary results for the first quarter of 2024, alongside guidance for the entirety of 2024.
Financial Overview for 2023 Compared to Previous Year:
- Revenue saw a 6.7% increase, reaching $71.5 million up from $67.0 million.
- Net Income (Loss) reported was $(18.7) million, compared to $(15.3) million.
- Adjusted EBITDA deteriorated to $(9.7) million from $(3.9) million.
Projections for 2024:
- Annual Revenue is anticipated to surpass $84.0 million, indicating a minimum growth of 17.4%.
- Adjusted EBITDA is expected to be positive.
Preliminary Expectations for Q1 2024:
- Revenue is predicted to be at least $15.0 million, against the previous year’s $16.8 million.
- Adjusted EBITDA aims to be at or above $(0.5) million, improving from $(3.4) million.
Bradley Nattrass, Chairman and CEO, shared insights on the company’s strategy and performance, stating, “2023 was a transitional year for the Company as our diversified end market exposure provided a hedge against prolonged softness in the Cannabis segment.” He highlighted the shift in revenue sources, with a significant portion now derived from sectors outside the traditional CEA, attributing this to the company’s diversification strategy.
Despite experiencing project delays in the latter part of 2023, which influenced the annual results, urban-gro has a positive outlook for 2024. This optimism is supported by a considerable project backlog valued at $110 million. Nattrass further elaborated on the company’s future direction, emphasizing the anticipated improvement in service delivery productivity at the beginning of the year.
Detailed Financial Results for Q4 2023:
- Revenue fell to $15.0 million from $17.3 million in the corresponding period of the previous year, influenced by reduced construction Design-Build and professional services revenue.
- Gross Profit decreased to $1.7 million, or 11% of revenue, from $3.2 million, or 19% of revenue, primarily due to a shift towards lower-margin construction Design-Build revenue and project cost revisions.
- Net Loss widened slightly to $4.7 million, or $(0.40) per share, from a net loss of $4.2 million, or $(0.39) per share.
- Adjusted EBITDA declined to negative $3.0 million from negative $1.7 million, reflecting the challenge of maintaining profitability amidst revenue mix shifts and cost structures.
The company has implemented cost reductions exceeding $8 million on an annual basis in the past year, aiming to streamline operations and achieve a positive Adjusted EBITDA in 2024. Nattrass concluded with a forward-looking statement, “Our guidance implies a strong year of organic growth… We also remain well positioned to capture any momentum from industry-specific regulatory changes.”
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urban-gro Latest News
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The cannabis industry, especially over the past few years, has emerged as a powerhouse sector, bolstered by legal reforms, changing public perceptions, and the promise of significant economic gains. Amidst this explosive growth, companies like urban-gro, Inc. have identified a lucrative niche—providing expert professional services to ensure cannabis projects are implemented effectively and efficiently.
Urban-gro and XS Financial’s Strengthened Partnership (2023/09/01)
In a move that signifies a deepened commitment to supporting the Controlled Environment Agriculture and cannabis sectors, urban-gro, Inc. (Nasdaq: UGRO), an integrated professional services and design-build firm, has announced a significant development in its strategic relationship with XS Financial Inc (CSE: XSF) (OTCQB: XSHLF), a prominent equipment finance company serving the US cannabis industry. The two companies have collaboratively agreed on an investment agreement that exemplifies their commitment to mutual growth and underlines their dedication to robust financial management.
Gets $1.5M Contract (2023/08/16)
Urban-gro, Inc. has secured a $1.5 million contract to provide services for a healthcare client in the southeastern U.S. Despite challenges, the company reported a 12% sequential and 16% year-over-year increase in Q2 2023 revenue, reaching $18.8 million. Urban-gro reduced SG&A expenses by nearly $3 million in 2023, reflecting its commitment to becoming a more efficient organization. The company demonstrated strong market demand for its services by signing over $40 million in contracts in Q1 2023 and maintains a record backlog.
Urban-Gro Financial Performance in Q3 2023 (2023/11/10)
Urban-Gro Inc. reported a strong financial performance in Q3 2023 with revenues of $20.9 million, a 69% increase from the previous year. The company’s gross profit remained consistent at $2.9 million, or 14% of revenue. Urban-gro’s operating expenses decreased to $6.0 million. The net loss for the quarter improved to $3.4 million, and the backlog of contracts is approximately $84 million. For Q4 2023, Urban-Gro projects a consolidated revenue of approximately $30 million.
urban-gro, Inc. Secures Contracts Worth Nearly $8M in the Cannabis Sector (2023/10/03)
Urban-gro, Inc. has secured nearly $8 million worth of contracts in the Controlled Environment Agriculture (CEA) cannabis sector. The contracts cover clients across the U.S. and include various services such as design-build and equipment integration. The company anticipates revenue will be recognized over the next four quarters. These contracts indicate future growth opportunities for the company in the cannabis sector.
urban-gro Gets $1.5M Contract (2023/08/16)
Urban-gro, Inc., a leading professional services and design-build firm catering to the Controlled Environment, Agriculture, and commercial sectors, has secured a $1.5 million contract to deliver architectural, interior design, and engineering services for a healthcare client in the southeastern U.S. Most of the project’s revenue is expected to be recognized in the upcoming year. CEO Bradley Nattrass highlighted this as a testament to the company’s expanding presence in various sectors, including healthcare.
urban-gro, Inc. Announces Q2 2023 Financial Performance (2023/08/15)
Urban-Gro, a company in the cannabis industry, reported consistent revenue growth and an improvement in adjusted EBITDA in Q2. The company has also diversified its revenue streams and reduced its expenses for a leaner and more efficient organization. The net loss per share for Q2 was $0.50, and for the first half of 2023, the net loss was $10.6 million. Urban-Gro anticipates a consolidated revenue between $90 million to $95 million for the full-year 2023.
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Urban-gro Signs Over $40M in Contracts in Q1 2023 (2023/04/13)
Urban-gro, Inc., a professional services and design-build organization operating in the commercial and controlled environment agriculture (CEA) sectors, has reported a record $123 million backlog as of March 31, 2023, following the signing of over $40 million in contracts in the first quarter 2023. The contracts came from diverse clients, bolstering the company’s presence in the commercial sector. Furthermore, a $2.4 million settlement with its former bank further fortified urban-gro’s financial position. CEO Bradley Nattrass expressed optimism about the company’s momentum and capacity to return to positive adjusted EBITDA, owing to the strong demand for its integrated services and design-build platform.
Urban-gro Beats EPS & Revenue Estimates In Q4 2022 Results (2023/03/31)
Urban-gro, Inc., a design-build and professional services firm specializing in controlled environment agriculture and other commercial sectors, reported its 2022 fourth quarter and full-year financial results, along with its outlook for 2023. Despite a downturn in cannabis cultivation equipment sales, the company achieved revenue and Adjusted EBITDA in line with predictions for Q4 2022, propelled by the momentum in design-build and professional services. However, the financial results exhibited a revenue decrease partially counterbalanced by the acquisition of Emerald Construction Management, contributing to $11.5 million in design-build revenue growth, and the acquisition of DVO, which resulted in $0.3 million in professional services revenue growth. Total revenue for 2022 was $67 million, an increase of 7.9% from the previous year, with a net loss of $15.3 million. Looking forward, urban-gro predicts a 2023 revenue between $100 and $120 million and Adjusted EBITDA ranging from negative $3 million to slightly positive.
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Urban-gro appoints JT Archer as its Chief Operating Officer (COO). He formerly held the position of Executive Vice President of Business Operations at the company. Mr. Archer graduated with an M.S. in management from the University of Colorado, Denver. He has held various positions in operations and sales, most recently serving as 4Front Ventures’ VP of Construction and Market Development.
Urban-Gro Reports Record Backlog (2023/01/10)
Urban-gro, a company that provides solutions to the Controlled Environment Agriculture and Commercial sectors, has reported a record backlog for its 2023 fiscal year and has reaffirmed its financial guidance for Q4 2022. The company expects to enter 2023 with a consolidated backlog of around $87 million and has reaffirmed its expectations for revenue of approximately $17 million and adjusted EBITDA of around ($1.5) million for Q4 2022. The CEO of Urban Gro will participate in a fireside chat on January 10, 2023, and management will be available for investor meetings on January 9 and 10. Urban-gro uses adjusted EBITDA, a non-GAAP measure, to measure its operating performance.
Good Lettuce Company Partners With Urban-Gro For New Facility (2022/12/20)
Good Lettuce Company has partnered with urban-gro (NASDAQ: UGRO) to launch a cutting-edge cannabis facility in Pennsville, New Jersey. The company, which holds a conditional Tier VI cannabis growing and production license, plans to authorize its annual report on January 12, 2023. Upon complete construction, the facility will span around 180,000 square feet and be equipped with machinery for extraction, cultivation, and other value-added processes. The project’s first phase will occupy roughly 60,000 square feet, with an additional 120,000 square feet planned for the second and third phases. Good Lettuce Company has granted Urban-gro a $20 million initial construction design-build contract for phase one.
Reports Q3 Results With Record USD 67M Backlog (2022/11/11)
In the third quarter, urban-gro, Inc. (UGRO) reported revenue of $12.4 million, exceeding the anticipated range of $10 to $11 million. The company also registered a net loss of $8.7 million, which includes $4.2 million in one-time operational expenses and a $1.7 million complete impairment of a one-time investment. The company’s adjusted EBITDA was $(2.3) million, slightly better than the predicted range of ($2.6) to ($2.4) million. Additionally, as of September 30, 2022, the company’s project backlog stood at a record $67 million, up $45 million from the previous quarter. Urban-gro also boasted a strong balance sheet, with $18.6 million in cash and no debt. The company projects a consolidated revenue of about $17 million and an adjusted EBITDA of approximately $(1.5) million for the fourth quarter.
Closes Asset Acquisition of DVO Engineering, Inc. (2022/11/01)
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Urban-Gro Announces USD 50M Signed Contracts in Q3 Sends Stocks Up By 11% (2022/10/12)
Urban-gro, Inc. (Nasdaq: UGRO) recently updated the progress of its design-build division and reiterated its guidance for Q3 2022. Post-acquisition of Emerald Construction Management in Q2, the company initiated its complete turnkey design-build solution that incorporates a range of services, including architecture, engineering, cultivation design, construction, equipment procurement, and integration. This move resulted in contracts worth over $10M. Furthermore, it secured design-build contracts amounting to $50M in Q3 from a varied client base, including cannabis CEA clients and leading global consumer goods enterprises. These contracts, typically 6 to 24 months, are independent of associated professional services or equipment system orders. CEO Bradley Nattrass expressed confidence in the company’s progress and future growth. Notably, the company’s share price rose 11.27% during trading hours, reflecting a positive market response.
Urban-Gro, Inc Misses on EPS & Revenue (2022/08/16)
Urban-gro, Inc. reported second-quarter revenue of $16.3 million, marking a growth of 27% compared to the same period last year. The company, however, suffered a net loss of $1.7 million in the quarter. In addition, the adjusted EBITDA for the same period stood at a deficit of $0.5 million. Despite these challenges, the firm maintains a solid financial stance with $22.8 million in cash and no debt. As of June 30, 2022, urban-gro reported a project backlog of equipment systems, construction design-build, and professional services contracts worth $22.0 million.
Signs Over $10 Million in New Design-Build & Related Contracts (2022/06/30)
Urban-gro, Inc. (Nasdaq: UGRO), an integrated design-build firm specializing in the Commercial and Controlled Environment Agriculture sectors, has announced the signing and commencement of seven design-build and construction management-related contracts following its recent acquisition of Emerald C.M. These contracts, incrementally adding to the company’s backlog, are with multi-billion dollar clients, including a leading global healthcare products and services provider and a global convenient foods and beverages leader. This progress indicates the company’s successful strategy to diversify its business by leveraging its professional services and design-build capabilities. CEO Bradley Nattrass noted that the new contracts with high-profile customers signify their diversified capabilities gained through synergistic acquisitions, and the company looks forward to further opportunities in adjacent markets.
Signs MoU for the Turnkey Design Build With E29 Labs (2022/06/01)
Urban-gro, Inc. (UGRO), a company specializing in indoor Controlled Environment Agriculture (CEA) design and construction, announced that it had entered an agreement with E29 Labs, a black, woman-owned commercial cannabis production company, to provide complete architecture, engineering, and design services for E29 Labs’ proposed 100,000 square foot cannabis production facility in New York State. Should E29 Labs secure a license, urban-gro will become their design-build partner for the facility’s completion. E29 Labs, led by co-founders Shelley Roberts, Sheldon Roberts, and cannabis industry veteran Michael Dundas, plans to transform a former Beech-Nut manufacturing plant in Canajoharie into a high-performance, socially conscious cannabis cultivation and processing facility. Urban-gro’s CEO, Bradley Nattrass, expressed excitement at the partnership and the opportunity to support New York’s social equity-focused commercial cannabis growth.
The Acquisition of Emerald CM Enables a Fully Integrated Solution (2022/05/26)
Urban-gro, Inc. (NASDAQ: UGRO), a design-build company, has expanded its business through strategic acquisitions and is now present in many countries. For example, the company recently acquired Emerald Construction Management Inc., a 37-year-old Colorado-based construction management firm. This $7.0 million deal was funded through cash and equity, with Emerald CM expecting 2021 revenues of $26.5 million and an adjusted EBITDA of $1.2 million. This acquisition complements the earlier acquisitions of 2WR+ Partners and MJ12 Design Stu. CEO Bradley Nattrass differentiates Urban-Gro as the only CEA firm to offer clients a broad range of services. In addition, the company plans to expand its European presence, leveraging Emerald CM’s contractors’ expertise in Europe, hiring its team, and seeking potential companies to acquire in the region.
Partners With TFFJ To Promote Sustainable Education (2022/05/12)
Urban-gro, Inc., a design-build company, announced the opening of an indoor farm at Bruce Randolph High School in Denver, CO, in partnership with Teens for Food Justice (TFFJ), a non-profit aimed at ending food insecurity through school-based vertical farming. The first in Colorado, the hydroponic farm trains youth aged 12-18 to construct and maintain indoor vertical farms that supply fresh food and serve as health and nutrition education hubs. Urban-gro’s CEO, Bradley Nattrass, expressed excitement about sharing the company’s expertise with the next generation and enhancing education around sustainable farming practices. Katherine Soll, CEO and Co-founder of TFFJ appreciated urban-gro’s support in constructing the farm and launching their first national location in Denver. She sees the partnership as an opportunity to improve food access while nurturing future leaders in sustainable food systems.
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