GRWG - Earnings call transcript Q2 2019

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Operator

Good afternoon. My name is Selvi and I'll be your conference operator today. At this time, I would like to welcome everyone to GrowGeneration Corp Second Quarter 2019 Earnings Conference Call. Note that all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator

I host to Please Mr. sir. time, over go the to your Michael would this turn like call ahead, At Salaman, President.

Michael Salaman

afternoon. conference to welcome and to the Salaman, At Good quarter time, everyone is XXXX second GrowGeneration earnings this like of Corp. Co-Founder would I GrowGeneration name My call. President Michael

remarks, our Lamirato, there CEO will both who With is Lampert, Darren CFO, question-and-answer our a me be After our participants will our call on session. today and afternoon. CFO's CEO; and Monty this be

As I filed impact always, the materially with Investors we results our our results that afternoon. expect here. to make that themselves could which XX-K, Form differ forward-looking want our full with and those statements range Commission. this we from could in you say Exchange filed familiarize But what of we to are and the risk caution should that actual Securities factors

remind of and call everyone today. is I'd will today's our later recorded, on call available our being that website also version archived an be

started. get Let's

the GrowGeneration over in chain fastest centers of garden our hydroponic Today, America. North coast and is transactions. weekly to coast, reaches largest X,XXX growing generating chain now supply

growth. execution numbers second our Our and focus team's reflect revenue on EBITDA quarter and

You financial will all from significantly. Monty of and metrics that hear today Darren our improved have

continue we've a and management but Although to on results, successful team our perform is quarter, rest execute had quarter not going one to quarter-over-quarter.

supply merchandise, introductions, the are Advisor. providing second to advice $XX Strategic was of we as to who billion in addition matters Bob branding, financial a Nardelli distribution, channel former quarter, and to appointed relating performance, pricing Mr. Home Nardelli, selection. CEO and be on Depot product Depot In will Home our strong announce proud Grow into the helped Senior new the company chain, to business

Canada. Our the and us every States open and city the is operators, in major which strong, United hydroponic locations aggressively to GrowGeneration balance allows purchasing best-of-breed continue new in sheet

call the our results. turn will I over XXXX will to second present now quarter who Darren

Darren Lampert

XXXX largest hydroponic growing hydroponic leading continued garden conference centers call our years in support and Thank nine and media, to you, set states indoor their Michael. I chain XX five like our ago afternoon, shareholders, ventilation and U.S. GrowGeneration Good and We'd a national gardening. thanking locations the advanced With build distributor employees call. our systems the of second Michael today, management nutrients, of for forth and and in greenhouse belief accessories is to quarter mission the marketer for begin welcome to and lighting, by in

company's quarter and focus performance improved our financial reflect of financial up was $XX.X We continued XXX% million. company year-over-year at results The Revenue second all company's on EBITDA in growth the areas. the revenue expansion.

the June XXXX, EBITDA $XX.X EBITDA for XXXX for the $X.XX For positive million at XXXX, revenue six Adjusted per million, June ending XX, for a period six-month ended versus is increase was months QX an XXX% was the per month of million period XXXX, ended now share. $XX.X XX, June six $X.XX XX, year-over-year. share. Adjusted $X.X

points XX% $X.X period up or versus XXX% profit X.X to million increase million, increased profit year-over-year, were same sales an gross of of increase year-over-year. an same-store Our basis margins year-over-year. the were $X.X XX.X%, dollars Gross

working buying are to by Our efficiently. larger strategies increase margins and in volumes more purchasing

XXX%, California XX%. key Island and in all revenue saw significant markets. Nevada Rhode was XX%, XXX%, increases up Michigan Colorado We up XXX%,

newly driven contributed by in added revenue three $X.X second $X.X Oklahoma acquired in million, new closed in and Our stores on May the that stores stores our XX. in quarter, Maine million

first sales. quarter Our increase e-commerce store a million, HeavyGardens $X XX% over our added over

$X.X million previous revenue, up $X.X Our million commercial the from division in quarter. in over added

of our by With operating reduced expenses our overhead a XX% by corporate over our our we revenue. and percentage growth, line significant top XX% and bottom as

X.X% rollout four-wall Rhode highlight of G&A XX%, its Maine, X%. ERP ERP up revenue, The company adding its not EBITDA a new as non-cash X.X% Island including system. Oklahoma, of our continued was platform Michigan, Northern a year-over-year. economics profit was revenue, To XX.X%, stores California, Adjusted operating was our was expense of gross percentage to from store negative and

store The cost, of our is platform be tools, GrowGen the designed end platform of ERPs departmental productivity, provide our on XXXX. reporting lower all forecasting ERP to and improve by and will current operations

we As our income revenue overhead increase quarter-over-quarter. net will continue continues increase flat, corporate stays to to and relatively

a targets to opening a estate in every close strategic now aggressive have store investing city to major of XXXX. with company program in in also the new and and strong are United real identify We locations set acquisition an We're working States. pipeline QX in new QX national

the company continues uplifting to of larger a exchange. process The

a second We our for are go to increasing like to financial $XX highlights. based for guidance to revenue to EBITDA per million share XXXX XXXX to over few XX.X adjusted quarter $X.XX minutes take our $XX million $X.XX million I'd shares and to XXXX outstanding. on

a XXXX, of QX for compared million. $X.XXX increase On of million $X XXXX, to a compared $X basis, adjusted of negative $X,XXX,XXX an XXXX, increase of QX an net $XXX,XXX net Adjusted QX for million. GAAP XXXX, loss for $XXX,XXX a for QX EBITDA income of of to EBITDA

non-GAAP XXXX for million per of per $XX.X QX revenue and to-date earnings $X.X of share QX over share up share a earnings share revenues $X.XX or $X.XX adjusted and of per basic, GAAP million. XXX% XXXX for $X.XX million, QX per of XXXX, $XX.X

as Store XXXX. up of in for to sales XX.X% XXXX XXXX. QX operating XX.X% to QX XX% QX XX.X% to declined a revenue profit for margin QX were XXXX, Same-store percentage compared QX QX XX% XXXX, compared was versus percentage have costs for Gross for XXXX.

compared Completed revenue financing. to of to X.X% to revenue QX percentage XX.X% million XXXX, a QX as declined overhead $XX.X Corporate XXXX. of for a

participated Merida investors All lead Navy Partners, Partners of institutional Green strategic in the and offering, Capital. investors oversubscribed the Gotham company's Capital including

In investors, three also strategic addition to the Asset participated. Fund company's JW

as June equivalents and in The XX, cash XXXX. cash at company had $XX million

to company million December at As capital XXXX. million $XX.X XXXX, working of the June XX, had capital compared XX, $XX.X working

six period, Colorado; one acquired the Company month For six Denver, in the stores, Palm

and Springs, Tulsa, Nardelli, New as and Depot, . Home CEO new Nevada; in locations Senior California; Oklahoma former of Bob two opened Maine store Maine; Strategic and and appointed We our Brewer, Advisor. Reno in in Manchester, Hampshire;

With our who over CFO, the Monty that, call more I'd like go to financials. regarding Lamirato, to quarter Monty? into will turn second details our

Monty Lamirato

Thanks, Sharon.

a these will a be figures of Some a but little bit, repeat detail. bit more little

June June XXXX. to XXXX, to three for So $XX.X net approximately XXX% approximately $XX.X or ended three compared for million revenue million the ended XX, XX, comparing approximately million, -- months $X.X months increased the

XX X, XXXX and was $XX.X to acquired for new or in April XX new mid-September revenue in increase June due e-commerce e-commerce and primarily contributed XXXX. million The after quarter opened the in stores The XXXX the stores XX, website acquired the new new revenue ended in addition site the of XXXX.

in cost XX, to due months three the XX, increase XXXX, June million Cost June approximately of compared the or directly sold $XX.X approximately XXX% attributable the operating primarily increase to increase approximately June XXX% to months cost The of is million the XXXX. XX, ended in goods is XX, increase goods number of $X.X XXXX, to sold $X.X in stores. of XXXX. sold June to million in comparing for the ended increased months three three the ended The goods months for as sales, three the ended

XX, the $X.X was approximately $X.X months ended for what increase for approximately months million an to million XXXX, XXXX, X.X into June XXX%. the three three excuse me, June of per compared profit $X.X million approximately -- Gross XX, -- or

XXXX. June increase to large XX, The sale months the ended a product at bulk sales gross XX.X% percentage for is from was a as XXXX, purchase months percentage reduced of XX.X% in a discount. vendors three to pricing the of Profit profit as purchasing a Gross June three for XX, in due QX increased vendors, those substantial margin acquired the ended from compared the of result XXXX in

me, sales have a -- revenues. percentage operating 'XX, operating The store lower operating Store a for by size the -- as of XX% Store volumes. cost-to-revenue costs XX, June positively lower the excuse operating of higher new net were was a as have stores of due for of and ended XX, and three to new June ended three the impact months in their to XXXX XXXX. which percentage the XXXX, larger percentage compared cost months lower XX.X% impacted impact costs acquisition were

Corporate amortization three XX, June corporate cost, of and overhead was compensation, depreciation and XX, ended XX% of depreciation X.X% the Corporate June and share-based ended was the revenue ended X% XXXX. for months non-cash amortization XXXX, for general and compensation, administrative comprised XX, XX.X% June of the overhead June three and months salaries XX, months for ended for of three three months XXXX, revenues revenues share-based the XXXX. and excluding

opportunities its each previously nine on and site, focus exists each and noted, new in opportunity growth The the and company to markets. the e-commerce continues of markets, as the of

acquisitions, on store our of and focus sales. online the Amazon to new proprietary continued continue We products, and development

company started The its effectiveness Michigan, as The productivity and Northern XXXX. departmental Oklahoma, Maine, Rhode to new tools. ERP adding ERP QX system solution, roll reporting to it ERP provide and to Island California, in which previously in improve forecasting and out continues North designed -- XXXX, system, noted, the is

as June capital increase with With approximately capital regard of $XX.X an million we of million, sheet, million. working of to XXXX, XX, XX, our approximately compared of XXXX, -- to the as balance working $X $XX.X had December for

for capital working due XX which totaling December that liabilities, resulted the working a by capital six XX, and accounting $X.X from common application reducing new million. $X.X to in primarily warrants million during to exercise to period, related of in June increase leases, that offset stock sale was the The by in operating one, $XX.X therefore of increase from accounting the proceeds XXXX, the a month approximately standard current million

$XX.X had XX, equivalents XXXX, we approximately of cash June million. cash and At

XX and date believe for filing, operations fund sufficient As are cash of existing at that existing the equivalents next cash the this months. the to we

adjusted let's compensation, and three for With ended EBITDA or stock-based was -- to income XXXX. EBITDA bit little on of X,XXX,XXX income. talk was basis $X,XXX,XXX depreciation, reconciliation about June GAAP net net The this adjusted interest, for a per XX, $X.XX the a months adjustments share. And the amortization

Darren, send back you? the call to me let

Darren Lampert

North advanced and Monty. In largest and GrowGeneration you, fastest the media, chain Thank hydroponic accessories in indoor for selling lighting, and states. is and garden centers nutrients, in national XX built growing conclusion, ventilation gardening. footprint now has hydroponic greenhouse X locations systems with of America, growing GrowGeneration

selection, and solutions. position is mission through driven corporate leadership service, Our a statement,

overhead started out has and down QX service XXXX Our of points transactions. generate XXXX. company with second in a performance XX%, per versus of X,XXX cents XXX%, up the basis $X.XX revenues. improved of quarter operating of down XX.X%, share, was strong. X.X up and store to significantly XX%, second EBITDA growers corporate expenses adjusted weekly margins a the We positive financial were percentage quarter its over as store thousands Revenues

sheet which aggressively balance Our process adjusting the operators in purchasing strong, the open breed of major continues every GrowGen is to in continue new and best city allows the States. locations company The United hydroponic of us to $XX million uplifting cents to EBITDA a for XXXX million in to outstanding. adjusted to exchange. larger up XX.X $X.XX in $XX shares were $X.XX our million We based and to on guidance revenue,

to guidance to share and We successes and partners. we're management need continuing provide our look our excited shareholders, to with be, team as our forward

Now we will few questions. a answer

Operator

will Please Scott. Thank your question at you. for [Operator Roth be Capital. Instructions] Fortune Scott first ahead, go And

Scott Fortune

for Congratulations, strong guys. you quarter

Michael Salaman

Thank Scott. you,

Darren Lampert

Thank you.

Scott Fortune

want deeper. in Just dig to

located? at can store store? to states, your get those states the openings, potentially for looking Do which that? you provide in new states color grow you little on And acquisitions. own you are the new if to How you're GrowGen on mentioned You states favorable deeper a expanding where purchase continuing or are

Darren Lampert

now, related type and the environment country doing proven We're markets, our right we're that of based criteria certainly also on entire a applying at Scott, looking and at we've the successful. facilities analysis and licensing, to be an the model new looking regulatory to

locations business. For example, $X in of in are locations. today a two Oklahoma, up doing opened million Both month we a those almost

is get will real us we're shouldn't national following. be be And openings recently for will that the number be we to model very new as mentioned up, and call, a company able how in just going we're we together that and model the we actually analysis be that a what store and we putting engaged that potential to that executing and with So will very in to estate plan. we're But going announce starting to have be that, have we're and stores. to we're a of we specific we model such aggressive going following as follow that open aggressive new

Scott Fortune

still deal you're out good space, color on you Great. kind are on up little the there, just space, that? the acquisition seeing just opportunities to potentials follow that, And a seeing what this consulting of within are

Darren Lampert

XXX% Scott.

We country fourth continue hydroponic continue mature right and coming markets pipeline online we've best-to-breed will have up into in in purchasing the markets and third a now and best-of-breed picking stores and mature opening been we doing, very full markets. quarters throughout going what country in stores around the more EBITDA and new

Scott Fortune

from last me. great. Okay, then question And

ERP what's structure. XX% your that a kind EBITDA forward going side out, here? or gross be X%, margin favorable its Your but very the at on rolls sense you levels and up systems out is rolling both you're to of it's of (inaudible) fully I seems on have to know just longer-term target your When margin

Darren Lampert

on spending I new growth Right technology. keep improving and we're store and aggressively Scott. openings certainly think they'll year-over-year, now,

margins bump, we continue the the certainly a of we're be revenue that. would that comfortable going for think bump, saw with And a to now costs certainly in year few this year right two, the the our in pretty little where next continue more comfortable last right will will around we quarters, you or percentage direction. As we'll them if certainly can see. but XX% keep like we are, And

Scott Fortune

Great. in. guys. I'll And Thanks, jump back

Darren Lampert

Scott. Thank you,

Operator

be will Please question Alliance Grey go Next Aaron. from of Aaron Global. ahead,

Aaron Grey

and the the guys. questions for congrats Thanks quarter on

Darren Lampert

Aaron. you, Thank

Aaron Grey

sensor store quarter? Can it's states to you during Thank color terms of the the best up there that So be which improvement Just sales, over break down, any kind kind quarter. sell great. of on XX% in same see just the the would that nice you. during sales of

Darren Lampert

increases Michigan quarter? for Rhode sales that Island, of sales. part the was this onboard same-store Island first us which in Rhode Colorado growth see now, our was in see seeing you we're coming tremendous quarter What our we're same-store numbers bump We which strong. all of our But purchase operations, Right seeing a Scott, our states. out you'll saw the extremely was wonderful in had in You'll is also.

in So we that but at we've right our into new saw also pretty right Oklahoma. country, much we're certainly growth new tremendous And now. the looking strength markets around markets moving into seen now we're

everywhere. basically So, strength quarter the was

Aaron Grey

sequentially. And terms there? of there's hear. you then of kind of terms been like of you Are And the up terms lot are like the seeing Okay, cultivation, to given where be kind for of to again great. going quarter It's What structure. great a they're the Oklahoma, peak in like licensing any saturation in you of with It's market in like nicely seeing just customers the licensing? continued going forward? during

Darren Lampert

new if Again, that Oklahoma onboard. run industry, there's of I think, into usually we're these over licenses look you X,XXX at a the the Oklahoma. five-year to growth back look states coming happens rate seeing in be, are --

we we that. years lot of be certainly, a and seem growth, of So see capturing a few more then tremendous to

right performing So pleased we're now. our Oklahoma certainly the -- our are stores way with with in

Monty Lamirato

the and interesting of I of patient medical Michigan, as states Florida top the behind of one one metrics emerged California, Aaron, And believe. Oklahoma, it's

getting is And our demand from of of that now footprint the to So support been number licenses that, that the the we're market that, you're state. able granted. because expanding actually have in fact

will location opening in up be location and Oklahoma additional We Tulsa City. an second a in second

Aaron Grey

you one, progress guys up And your just, like Okay MSOs. seems with then steam It one great. any there. update last on just picking were

might sales So from and much be evolving. time those partnerships getting have of just how MSOs you how ambition in been terms

Michael Salaman

a Yeah, to company. the it's great additive been

about individuals do the a the previous that As managers, have dedicated our up accounts. outside that standalone calls, XX a right commercial sales, are entity, commercial set on now we business of of we call that operates big commercial the that and all we've is mentioned, we and store they some division have big as on MSOs

growth ability our level, continuing large time, that And, a because of see national quarter-over-quarter. and do just our attracting it power, in MSOs. deliver we on purchasing And we're to the

were up from we call, the in commercial $X a million pretty We which our are in quarter-over-quarter. business, store we separately mentioned of looking business. significantly we As the terms over at up were

Aaron Grey

best and much, luck. very of you Thank Okay.

Michael Salaman

Aaron. you, Thank

Darren Lampert

Aaron. you, Thank

Operator

next ahead, investor. Thank And question Ken a Ken. be from Instructions] you. [Operator private go Please will Hamilton, your

Unidentified Analyst

Bill been to How a this speak going to to it's I've Congratulations bit that SAFE great little and Yes. now help you you you learning that? Banking on is our quarter. lately? get about lot a feel Could once you politicians and a impacting that together thing? how knuckleheaded pass

Darren Lampert

Hey, Monty, like that? to you would take

Monty Lamirato

it something is action exactly environment -- predict if is like to was bill to terms larger, institutions, of -- to hard it's our much political going mean, but really consolidates larger in if when our discussion, our would very and the would pass, banking, that in come beneficial some a a of needed. which that fruition? I to really efficient of time. attract greatly use Yeah, enhance the to There's Certainly, and like of lot ability be were financial a lot in

So hope whether will political clients that will to in well. predict our that something or very early. environment, And hard will that But we not occur. as this it's in happen things help like fact

it's only it's clients to assist well. not our us, as to going So but help going

Unidentified Analyst

very you thank much. Okay,

Monty Lamirato

Sure.

Operator

you. Thank

Elise. at question from Next Stone go Benchmark. of will Please be ahead, [ph] Elise

Unidentified Analyst

Hi, Great gentlemen. quarter. Congratulations.

Michael Salaman

Thank you, Elise

Darren Lampert

Thank you, Elise.

Unidentified Analyst

Mr. wondering a his I with going And opportunities mean, Also, and think really you specifically welcome. of the on collaborations sort I tremendous addition after Nardelli. be that's You’re of congratulations what I assistance? addition. might strategic of types was

Darren Lampert

our XXXX is billion Depot to Home Nardelli what when with the Nardelli today, we XXXX, into is, what generation, background billion meetings his is was Depot Home our is left. $XX he which scheduling next grew $XX from of he there, and where having Mr. taking Well, to the team focus business what that executive regular think really with basically, and with really Board, with and the we're doing we're Mr. and

of supply and doing that been are has the with just lot team. a he's implemented inside today, And all strategic wonderful executive opportunity from Home product him him. the pricing. new introductions, at everything chain, we're table just merchandising, environment, things our wonderful the certainly These we're having addition that distribution, branding, And Depot having conversations a to

with into overlays certainly, And certainly relationships leveraging sitting background we're a so quarterly his strategic his GrowGeneration his regular his a basis, is And basis, certainly experience, and on and access tremendous. down markets monthly, but not are where the and it's is him, going.

those So, it's And have be going extremely think the an and we company. that initiatives one to are an the it's relationship. certainly, ongoing we accretive to

Unidentified Analyst

side It helps acquisition as too? on the certainly I'm sure well

Darren Lampert

Absolutely.

Unidentified Analyst

again good luck. congratulations Well, and

Darren Lampert

you, Thank Elise.

Operator

Thank you.

Next be Alan. Alan Brochstein from Centers. question New ahead, Please will at Canada go

Alan Brochstein

Hey, guys, on the congrats continued success.

Darren Lampert

you, Thank Alan.

Monty Lamirato

Alan. you, Thank

Alan Brochstein

one. much and it you last starting little didn't quick get us Hemp update, a how on Can Just I you give about you a hear your unrolling? to operations I going. said quarter maybe Hemp missed were just

Darren Lampert

are Yeah, certainly the issued, interesting, additives vertical I acres hemp very as being process things. as company. to the working And now licenses we're it's mean, those of great actively their and right of for the -- and supply we've a nutrients great secured of market we're and it's the now kind a because right X,XXX and in that about overlay

will constantly hemp for a which first to aggressively we're seeking, that working create come chain they So, they're to GrowGeneration will and that farmers products and soliciting the one foremost. in be supply

we've we're products The chain. farmers. to and are little So, developed in starting we've hemp for bit some some company a for focus, the specifically forming headway Alan, sourced and products some the products it's get supply certainly different, a a

As to a two you are harvest turns the one year. rates know,

in is and into seeds working a September. on farmers their these spring hemp coming up harvest So, season, most planted harvest the in which and with of of going we're they're lot the farmers

innovation, after products and we're as developing, But going new said, it's focus a customer. I the and certainly aggressively and

Alan Brochstein

And you January about you you a actually when I in would that talking you of Because hear Conference, mainly and a so Are seeing far? at amount spoke substantial Benzinga indoor. the this lot mentioned I you that thought or outdoor? be

Darren Lampert

It's interesting we because have service.

Indiana, in it is houses. we're outdoor seeing states, North hemp facilities the most Oregon house are green the But of is big now Colorado, farm of in hemp. seen the We've Carolina. right cultivate Some Kentucky, market, green

more terms indoor creating requiring the But the seems outdoor it cultivation be to But than for the right to seems CBD, in now, right now, of more an outdoor be it. of crop Alan. side demand of volume,

Alan Brochstein

opportunity they or a are is greater those – all and And equally? you things indoor given lights view the additional

Darren Lampert

certainly house. grow of going to money in see the what green It's than dependent mean, indoor And cheaper down out Alan, indoors. much is I quality you'll the the upon coming outdoors is pike, that's outdoors.

demand upon So, and the they're again, dependent future. and pricing in quality,

from to indoor. -- it's out is But coming see too again, tell. change may crops the you This I You'll think, again. first of early outdoor a one to

yet. you seen many harvests that haven't So

point, it's really it's So again, at to too. to where hard this tell going gravitate

Alan Brochstein

address Scotts different maybe a pickup how business But Mircale-Gro? mainly did guys how cannabis-related much I has you them, larger And them I'm in been subject. you view do view or seeing On publicly. just should Scotts as investors as a well. heard compare Scotts competitors nice Okay. this or you never to your their pretty relationship with guys wondering, you

Darren Lampert

We of right ours. view now as them partners

We customer customers and get we as partners, from are we their we view certainly collaborate, them them. again largest

now. with been So relationship a way, have for us, we it's Scotts a wonderful right

Alan Brochstein

for congratulations that, again. thank clarifying Great, and you

Darren Lampert

Alan. you, Thank

Operator

you. Thank

from be will go Merida. at Mitch. ahead, Please Baruchowitz question Next Mitch

Mitch Baruchowitz

it feels Gentlemen, like it's…

Darren Lampert

Hey, are Mitch. How you?

Mitch Baruchowitz

long like in a did it's XXXX, right? time from we first feels way this So… It the

Darren Lampert

Thanks, Mitch.

Mitch Baruchowitz

Yeah.

So questions. two quick

more the First, improvement you efficiency directly to companies given carry impact are a used with the -- a of out than from have to distributor your bigger supplies rather going much you which much That’s their prominent, comes to first guys through the impact that margins? much how footprint, question. margin to reaching

acquisition on What dispensary potentially next the least pretty guys at know is at at a lot well. We of we've seen. sort of see how entertain That's becoming a what brands? And the how are second, Merida we is to stuff carries their really shelves. least what willing those of house many leg to companies brands of you similar

a can are guys impact. guys, for house pretty that's probably accretive that's growing acquisition you you your a brand, big become if you a guys. company And For

of much is what prominence to margins you on and much So and how how much you your side are how drive helping seeing improve that -- over now time? expected

Darren Lampert

think margin has The what that fact I going -- think and seen inflection points margins in scaled one we've of occurred, up business. you've company the a is chain locations the to most approaching now, the now with volume national driven rate the and of $million. XX able in better with the command the what are we I the company, pricing, run XX in it's is markets coast-to-coast major

We really have leverage now with the that to ability our vendors.

and So we've better I been think deals, first too. getting negotiating we're foremost, smarter,

our purchasing are So, to we getting second we're power, And ability developing, and of that private is our of the seeing which leverage you're to with the about, developing margin. lot an different then your team, with certainly that products. we're that label purchasing area a accretiveness point now

that certainly We've of can are label we we already different to continue to products to think products some develop, accretive that locations margin brought margin market, the additives private actually big to that's all specific, strategy. and the drive part expansion continue margin bring a certainly and going the the and across expansion company and to we're

Mitch Baruchowitz

thanks see soon. you Great well, and we'll lot. Guys, quarter, a

Darren Lampert

Mitch. you, Thank

Operator

at time, we other Thank have this you. registered. [Operator no questions And Instructions] for

any presenters comments. like additional back turn So over the to I our for would to call

Darren Lampert

third our investors in have we shareholders, everyone thank forward results reporting And partners even our for and management of and our to Just our employees, want appreciate our quarter. all Thank the great we second support to better really a afternoon. quarter earnings. team, you and again look of attending

Operator

rest and your for day. at this we Thank do indeed you, Once again, today. attending. the gentlemen, concludes please this lines. time, thank ask your And to conference call you your ladies disconnect does Enjoy of for

Darren Lampert

you. Thank

GrowGeneration (GRWG) 8 Aug 192019 Q2 Earnings call transcript