urban-gro Stock Slightly Up After Announcing Record Financial Results In Q2 2021, Continues To Provide Cannabis-Focused Agricultural Solutions

Cannabis-focused engineering design and services company urban-gro, Inc. UGRO announced record financial results Wednesday for its second quarter ended June 30, 2021.

Based in Lafayette, Colorado, the company achieved profitability for the first time in its history, record revenue in the second quarter of the 2021 fiscal year, as well as a strong project backlog.

Here’s a breakdown of what the second-quarter earnings report showed:

• Revenues totaled $12.8 million compared to revenues of $4 million in the same quarter of last year, representing an $8.8 million improvement or 220%.
• Record net income of $1.3 million, compared to a net loss of $1.6 million in the corresponding quarter of 2020.
• Record income from operations of $0.2 million versus negative $0.9 million in the same quarter of 2020.
• Record positive adjusted EBITDA of $0.6 million versus a $0.5 million adjusted EBITDA gain in the prior period and a negative adjusted EBITDA of $0.3 million in the same quarter of last year.
• Record project backlog of contractually committed equipment orders with deposits received of $27.9 million at the end of the second quarter, representing an increase of $12.7 million, or 84% from the end of the previous quarter.
• The balance sheet remains strong with $50.4 million in cash and cash equivalents and no debt.

Operational Highlights

The finalization of MJ12 Design Studio’s acquisition resulted in creating the horticulture industry’s first fully integrated architecture, engineering and cultivation systems integration company.

The company inked additional contracts over the quarter for engineering and design services in Europe.

In addition, it also signed multiple engineering contracts for food-focused vertical farm facilities in North America.

Financial Highlights For First Half Of 2021 & Full Year Guidance

In the first six months of 2021, revenues increased to $24.9 million, up 201% from $8.3 million in the same period of 2020, while adjusted EBITDA grew $2.3 million to $1.1 million from a negative $1.2 million. Income from operations grew by $2.7 million to $0.4 million from a loss of $2.3 million.

urban-gro revealed its guidance for the full 2021 year, expecting to achieve between $54 and $59 million in revenue and between $4 and $5 million in adjusted EBITDA.

Price Action

urban-gro traded 10.23% higher at $10.17 per share during Thursday’s pre-market trading hours.

Photo: Courtesy of Ryan Lange on Unsplash