Albert Labs announces Strategic Investment from Cantheon Capital LLC for First In-Human TrialsMindMed Reports Full Year 2022 Financial Results and Business HighlightsCybin to Participate in the Oppenheimer 33rd Annual Healthcare ConferenceNuminus to Participate in the Sequire Cannabis & Psychedelics Conference on Wednesday, April 5, 2023Braxia Scientific Provides Update on Proposed Irwin Transaction; Company Retains Strategic Clinical Assets and Ketamine Numinus Announces Four Peer-Reviewed Publications from its Chief Clinical Officer in 2023Irwin Naturals Signs Letter of Intent to Acquire Braxia ScientificNuminus Wellness Inc. Reports Q1 2023 ResultsIrwin Naturals and Braxia Scientific Announce Partnership for In-Human Clinical Studies Supporting Pharmaceutical CompanNuminus Develops Mushroom Tea for Use in Psychedelic ResearchIs the Psychedelic Sector Poised for a Comeback?!?PSYC + Nucleus Form New Partnership to Develop and Launch Psychedelic FinderWhat You Need to Know About Numinus Wellness…Numinus provides update on acquisition integration and announces new client financing optionsPSYC Corp’s Psychedelic Spotlight Surpasses One Million Page Views for Fourth Consecutive MonthNuminus to Participate in the H.C. Wainwright 24th Annual Global Investment Conference on September 12-14, 2022The Psychedelic Sector is Quietly Outperforming the S&P 500PSYC Completes and Publishes 2021 Audited Financials; Will Begin Audit of Q1 & Q2 2022Numinus to Participate in the H.C. Wainwright 24th Annual Global Investment Conference on September 12-14, 2022PSYC’s Bonfire Platform Development Progresses; Will Host Free Virtual Community Event on August 29th

#Earnings: Aerogrow $AERO

Feb 14, 2017 • 1:53 PM EST
2 MIN READ  •  By Michael Berger
Share Share - Facebook Share - Twitter

Today, AeroGrow International, Inc. (AERO) reported its first earnings report after Scotts Miracle-Gro’s (SMG) subsidiary exercised its warrants to establish an 80% ownership stake in the company.

In April 2013, AeroGrow entered a securities purchase agreement and strategic alliance with a wholly owned subsidiary of The Scotts Miracle-Gro Company (SMG: Nasdaq). Since that time, the business has demonstrated strong and consistent growth with a leading line of consumer indoor gardening systems.

AeroGrow’s principal business is developing, marketing, and distributing advanced indoor aeroponic garden systems for the consumer gardening, cooking and small indoor appliance markets. The company manufactures, distributes and markets its products primarily in North America as well as certain countries in Europe, Asia and Australia.

Financial Highlights

During the third quarter, AeroGrow recorded net loss of $639,000 on $13.2 million in revenue. This is well below the $2.3 million in net income (off $11.9 million in revenue) recorded during the same period last year. The decrease is primarily a result of the fair value revaluation of the Scotts Miracle-Gro warrant and the higher spending on general advertising and brand awareness with key retailers (part of its strategic growth strategy).

One of AeroGrow’s key strategic initiatives for the 2016 Fiscal year has been to increase brand and category awareness of its products with targeted consumers. During the quarter, the company spent $2.6 million in advertising expenditures to support its direct-to- consumer and retail channels, a 25.1% increase when compared to the same period last year.

During the quarter, AeroGrow saw retail sales increased 9.4% to $9.7 million while direct-to-consumer sales increased 7.2%, to $3.2 million.

Liquidity Highlights

As of December 31 st , AeroGrow had $48.4 million in cash. On January 3 rd , the company issued $40.5 million worth of dividends paid to holders of common stock. The large cash balance can be attributed to the exercise of a warrant by Scotts Miracle-Gro in November (warrant was issued in April 2013.) To exercise the warrant, Scotts Miracle-Gro paid AeroGrow approximately $47.8 million. As of December 31 st , AeroGrow’s total inventory balance was $4.0 million and the total accounts payable was $2.5 million


We remain favorable on AeroGrow due to the company’s strategic relationship with Scotts Miracle Gro, its continued success and improving market share, and its expanded product line. AERO is trading at $3.25 after a 1.5% move higher on light volume (21,000 shares) and we will monitor how the market responds to this news. The company’s third quarter financial results were nothing spectacular and we expect to see a mild response from the market.

Share Share - Facebook Share - Twitter


Authored By

Michael Berger

Michael Berger is Managing Partner of StoneBridge Partners, LLC and Founder of Prior to entering the cannabis industry, Michael was an Equity Research Analyst at Raymond James Financial covering the Energy Sector. Michael has been featured in publications such as The Street, Bloomberg, US Money News, and hosts various cannabis events across North America.


Top Stories

Get the Latest Cannabis News & Stock Picks.

Enter your email below to join the official Mushroomstocks newsletter.

 All good -- no spamming here.

The psychedelics sector is starting to take off as smart money begins to position itself across the industry.

Stay updated with all latest updates,upcoming events & much more.