AeroGrow Reports Results for the Third Quarter Ended December 31, 2015
(firmenpresse) - BOULDER, CO -- (Marketwired) -- 02/11/16 -- AeroGrow International, Inc. (OTCQB: AERO)
AeroGrow International, Inc. (OTCQB: AERO) ("AeroGrow" or the "Company"), which sells the Miracle-Gro AeroGarden® line of extraordinary, soil-free indoor gardening systems, announced results for the third quarter ended December 31, 2015.
For the three months ended December 31, 2015, sales increased to $11.9 million, an increase of 8.3% relative to the same period in the prior year. The adjusted EBITDA for the quarter was a record $1.7 million. Gross margin was up 720 basis points to 37.7% from 30.5% in the prior year period.
"I am extremely pleased with our December quarter results," said President and CEO J. Michael Wolfe. "We set out to achieve three key strategic objectives during this critical selling period, and we were successful in our execution of all three. The first was to continue to grow our top line sales, which we did with huge gains at Amazon.com (up over 100% vs. last year), solid progress at Costco.com and other on-line retailers, and in multiple entries into the housewares channel. Our Direct-to-Consumer channel also demonstrated solid sales growth.
"Second, was to make significant improvements in our gross margin, and we did exactly that with a 720 basis point improvement vs. last year. This improvement was achieved through (1) cost-outs in our supply chain, (2) revised product pricing resulting in higher selling costs, and (3) a focus on selling to retail partners with distribution models that allow us to achieve higher margins.
"Our third key goal was to increase the general brand and category awareness of our products in the minds of targeted consumers. This was successfully achieved through a broad advertising campaign featuring a series of new commercials for use on TV and in digital media. I''m confident that these spots helped drive awareness and -- ultimately -- sell thru in both the retail and direct to consumer channel and will continue to add long-term sales lift, especially when combined with our planned future advertising initiatives. If you missed the airings, you can to see a 120 second version of the spot.
"In addition, we launched an innovative new line of AeroGarden products during the quarter. These all new AeroGardens captured the vision that we''ve been working on for several years -- they are great looking, grow better than ever and have an efficient footprint for kitchen countertops. These new products were very well received, with all new gardens representing 46% of total garden sales for the quarter.
"I am also very excited about a series of successful tests we had in our emerging housewares channel. We were featured at Bed, Bath & Beyond (both in-store and online), QVC, and are currently rolling out at Sur La Table stores nationwide. We are finding that customers who shop at these retailers are highly aligned with our target demographic, making the houseware channel exactly where customers expect to find AeroGardens. We also began the process of selling internationally with a launch on Amazon.co.uk.
"We are very proud of these results and the progress that we have made. We now look forward to continuing our trend of growth, margin, and profitability improvements while developing additional sales channels, continuing to innovate our product line and further establishing our brand."
The U.S. GAAP measure most directly comparable to Adjusted EBITDA is income (loss) from operations. The non-U.S. GAAP financial measure of Adjusted EBITDA should not be considered as an alternative to net earnings. Adjusted EBITDA is not a presentation made in accordance with U.S. GAAP and has important limitations as an analytical tool. Adjusted EBITDA should not be considered in isolation or as a substitute for analysis of our results as reported under U.S. GAAP. Because Adjusted EBITDA excludes some, but not all, items that affect net earnings and is defined differently by different companies, our definition of Adjusted EBITDA may not be comparable to similarly titled measures of other companies.
The conference call is scheduled for 12:00pm ET on February 12, 2016. To participate in the call, please dial
U.S. (Toll Free): 1 (888) 347-7861
Toll/International: 1 (412) 902-4227
A telephonic replay of the call will be available within 2 hours of completion and will be available for the next 24 hours. You will be able to access the audio file for 90 days following the completion of the call through the AeroGrow website at until May 12, 2016. To access the replay by phone, please dial:
U.S. and Canada: 1 (877) 870-5176
Toll/International: 1 (858) 384-5517
Conference Number: 10080315
Headquartered in Boulder, Colorado, AeroGrow International, Inc. is the leader in the rapidly growing indoor gardening market. AeroGardens allow anyone to grow farmer''s market fresh herbs, salad greens, tomatoes, chili peppers, flowers and more, indoors, year-round, so simply and easily that no green thumb is required. With an AeroGarden...you can grow anything! In April 2013, AeroGrow entered into a strategic partnership with Scotts Miracle-Gro to continue to expand the indoor gardening market. For more information, visit .
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements by Mike Wolfe and/or the Company, statements regarding growth of the AeroGarden product line, ability to raise capital, optimism related to the business, expanding sales, market acceptance of developments and enhancements to our product line, improved margins and profitability, and other statements in this press release are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the Company''s business. Words such as expects, anticipates, intends, plans, believes, sees, estimates and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. Actual results could vary materially from the description contained herein due to many factors including continued market acceptance of the Company''s products or the need to raise additional capital. In addition, actual results could vary materially based on changes or slower growth in the indoor garden market; the potential inability to realize expected benefits and synergies; domestic and international business and economic conditions; changes in customer demand or ordering patterns; changes in the competitive environment including pricing pressures or technological changes; technological advances; shortages of manufacturing capacity; future production variables impacting excess inventory and other risk factors listed from time to time in the Company''s Securities and Exchange Commission (SEC) filings, including in "Item 1A Risk Factors" of the Company''s Annual Report on Form 10-K for the fiscal year ended March 31, 2015. The forward-looking statements contained in this press release speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.
Grey Gibbs
Senior Vice President of Finance and Accounting
303-444-7755
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Datum: 11.02.2016 - 15:35 Uhr
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