GrowGeneration Corp.

Good morning. My name is Joanna, and I will be your conference operator today. At this time, I would like to welcome everyone to Growth Generation Corp. 2019 Fiscal Year-End Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, then the number 1 on your telephone keypad. If you would like to withdraw your question, please press star, followed by 2. Thank you, Mr. Michael Salaman, President and Co-Founder. You may begin your conference.

Thank you. Good morning. My name is Michael Salaman, Co-Founder and President of Growth Generation Corporation. At this time, I would like to welcome everyone to the Growth Generation 2019 Earnings Conference Call. With me this morning is Darren Lampert, our CEO and Co-Founder, Monty Lammaretto, our CFO, and Tony Sullivan, our COO, who will all be participants on our call this morning. After our presentation, there will be a question and answer session. As always, we expect to make forward-looking statements this morning and want to caution you that our actual results could differ materially from what we say here. Investors should familiarize themselves of the full range of risk factors that could impact our results, and those are filed in our Form 10-K, which we filed with the Securities and Exchange Commission. I'd also remind everyone that today's call is being recorded and an archived version of our call will be available on our website later today. As we all tackle and cope with the COVID-19 outbreak, Grow Generation has implemented protocols, procedures, and practices to keep our employees and customers safe while continuing to service our customers. Darren and Tony will outline in more detail the steps we have taken and we report to you today all 27 locations are all open for business. GrowGen has been designated essential as we are a critical part of the supply chain to the agricultural and farming industries. Our just-in-time supply chain is operating extremely well with more customers ordering through our online channel growgen.pro and using our curbside and will call options to pick up at our garden centers. We are fulfilling virtually all of the critical products that our customers need to nourish their plants, as well as the many safety products like gloves, isopropylene alcohol, and other items needed to keep their employees and cultivation facilities safe and clean. You will hear today from Darren and Monty that all of our financial metrics continue to be positive, all the while investing in technology and infrastructure. Our balance sheet is strong, allowing us to continue to execute our plan, focusing on internal growth initiatives that include same-store sales, our omni-channel strategy, buy online, pick up in store, private label products, while continuing to purchase the best of breed hydroponic operators and opening up new grow gen garden centers around the country. With that, I will turn the call over to Darren who will present our 2019 results. Darren.

Thank you, Michael. Good morning and welcome to our 2019 earnings call. Before we begin our 2019 earnings call, I'd like to begin by thanking our staff and customers during this time of uncertainty. As we continue to monitor the COVID-19 outbreak, GrowGen is considered an essential supplier to the agricultural industry, supplying the nutrients and nourishments required to feed their plants. Accordingly, all our 27 stores are open during this difficult time, and we remain open for the foreseeable future. We have plans and procedures in place to ensure our customers and employees stay safe during this time of uncertainty. All of us at GrowGeneration remain committed to the safety and well-being of our customers and employees, and send our prayers and thoughts to all in the growing community and beyond. To do our part, Grow Generation has committed to donate up to $500,000 of free product to our loyal customers and local communities that have been severely affected. The company's fiscal year 2019 record financial results reflect our continued focus on revenue growth and adjusted EBITDA expansion. Revenue was up 175% year-over-year to approximately $80 million. Adjusted EBITDA was $6.6 million for 2019, compared to a loss of $823,000 for 2018. Adjusted EBITDA for 2019 was $0.20 per share basic, $0.02 above our high-end guidance, compared to a negative $0.04 per share basic in 2018. Our same-store sales were up 62% in Q4 2019 versus Q4 2018. For the full year, same-store sales were up 36% versus full year 2018. Our online business, GrowGen.pro, is projected to exceed $10 million in revenue in 2020. Our omni-channel strategy will connect all our store inventory to our e-commerce site, allowing for buy online and pick up in-store functionality. GroGen's just-in-time supply chain delivers our products safely and timely to our customers. Today, we offer a will call, curbside, and direct-to-farm shipments from all our store locations and through our online e-commerce platform. We can ship to all 50 states. Recently, we have seen a surge in online sales, and we are well prepared to fulfill these orders. Our commercial division is projected to do 30 million in annual sales for 2020. The company completed the rollout of its new ERP platform in 2019, and it is now fully deployed, providing business intelligence to lower costs, improve departmental productivity, integrate our online store sales and supply channels, providing real-time forecasting and reporting tools. The 10 newly acquired stores and new store openings are all performing better than expected and have been successfully integrated into the operations of the overall company. The company successfully integrated both GrowGen Portland, December 2019 acquisition, and GrowGen Miami, a February acquisition, into its portfolio, with both operations now contributing revenue and positive EBITDA. On March 7, 2020, We opened the largest hydroponic garden center in the United States, a 40,000 square foot commercial and online fulfillment center located in Tulsa, Oklahoma. To highlight our market by market growth, Colorado was up 132% year over year at 15.4 million. California was up 161% at 15.6 million. Michigan was up 200% at 9.3 million. Oklahoma was up 2,400% at 11.8 million. Our commercial sales finished its first full year at 17 million, and our e-commerce sales finished the year at 4.8 million. Due to COVID-19 outbreak, the company is focusing more on internal growth versus external growth for the next few quarters. We are focused on margin expansion strategies that include furthering the deployment of more private label products, executing and growing our buy online, pick up in store plan and approving our customer service for both the customer acquisition and retention perspective. With Portland, Miami and Tulsa too now contributing revenue at EBITDA, we continue to drive growth during these difficult times. The company rang the NASDAQ bell on December 30th, 2019, capping off a great year and is now listed in trading on the NASDAQ exchange. We added five analysts that are now covering the company from investment banks that include Roth Capital, Ladenburg-Thalman, Lake Street Capital Markets, Alliance Global Partners, and Craig Hellam. Revenue guidance for 2020 is $130 to $135 million. Adjusted EBITDA guidance for 2020 is $11.5 million to $13.5 million. Revenue guidance for Q1 2020 is $31.5 million to $32.5 million. I will now turn the call over to Tony Sullivan, our Chief Operating Officer, who will brief everyone on our COVID-19 risk mitigation procedures, and then to our CFO, Monty Lammaretto, who will provide more details to our 2019 year results. Tony?