Yahoo Finance Urban-gro Inc (UGRO) (Q1 2024) Earnings Call Transcript Highlights: Navigating Challenges with ...
Revenue: $15.5 million in Q1 2024, a decrease of 7% year-over-year.
Adjusted EBITDA: Negative $0.3 million in Q1 2024, a $3.1 million improvement year-over-year.
Net Loss: $2.1 million in Q1 2024, improved from a net loss of $5.1 million in the prior year period.
Gross Profit: $3.1 million in Q1 2024, representing 20% of revenue.
Operating Expenses: Reduced to $5.2 million in Q1 2024 from $7.9 million in Q1 2023.
Backlog: $99 million as of March 31, 2024, with 76% in the CYA sector and 24% in commercial.
Cash and Credit: $0.7 million in cash and $2.0 million balance on line of credit as of Q1 2024.
Release Date: April 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: What are the expectations for the cannabis industry following the DEA's support for reclassifying cannabis from Schedule I to Schedule III? A: Bradley Nattrass, CEO, expressed that the reclassification is a significant catalyst for the cannabis industry, potentially increasing operators' working capital and encouraging investment in infrastructure. This change is expected to revitalize the industry, which has faced challenges in recent years.
Q: Can you provide details on Urban-gro's financial performance in the first quarter of 2024? A: Richard Akright, CFO, reported a revenue of $15.5 million and an adjusted EBITDA loss of $0.3 million. The financial results showed an improvement, attributed to diversified revenue streams and reduced operating expenses.
Q: How is the potential legalization of recreational cannabis in Florida expected to impact Urban-gro? A: Bradley Nattrass, CEO, noted that the potential legalization in Florida, which is up for a vote, could significantly impact the company positively. Urban-gro is preparing for increased activity in the state, anticipating that operators will invest in new facilities and equipment.
Q: What is the status of Urban-gro's backlog and how does it relate to the company's guidance for 2024? A: Bradley Nattrass, CEO, mentioned that the company maintains a strong backlog of $99 million and is confident in achieving the guided revenue of more than $84 million for 2024. The backlog includes various projects that are expected to contribute to this target.
Q: How has the recent DEA announcement affected Urban-gro's market position and client engagement? A: Bradley Nattrass, CEO, shared that the announcement has already resulted in increased discussions and commitments from clients, indicating a positive shift in market dynamics and potential growth opportunities for Urban-gro.
Q: What are the implications of the DEA's reclassification of cannabis for Urban-gro's strategy and operations moving forward? A: Bradley Nattrass, CEO, explained that the reclassification would likely lead to increased capital expenditures in the cannabis industry, benefiting Urban-gro by expanding its project opportunities and enhancing its service and equipment offerings to meet the anticipated demand.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
