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HYDROFARM®Ⓡ Hydrofarm Holdings Group Announces Second Quarter 2021 Results August 12 , 2021 Company Updates Full Year 2021 Outlook FAIRLESS HILLS , Pa . , Aug. 12 , 2021 ( GLOBE NEWSWIRE ) -- Hydrofarm Holdings Group , Inc. ( " Hydrofarm " or the " Company " ) ( Nasdaq : HYFM ) , a leading independent distributor and manufacturer of hydroponics equipment and supplies for controlled environment agriculture ( " CEA " ) , today announced financial results for its second quarter ended June 30 , 2021 . Second Quarter 2021 Highlights vs. Prior Year Period : • Net sales increased 46.7 % to $ 133.8 million compared to $ 91.2 million . • Gross profit increased 65.5 % to $ 29.6 million , or 22.1 % of net sales , compared to $ 17.9 million , or 19.6 % of net sales . • Net income attributable to common stockholders was $ 2.3 million or $ 0.05 per diluted share compared to a $ 1.9 million or $ 0.08 ( 1 ) per diluted share . Pro forma adjusted net income ( 2 ) was $ 12.5 million or $ 0.30 per pro forma diluted share compared to $ 4.0 million or $ 0.12 per pro forma diluted share . ● Adjusted EBITDA ( 2 ) increased 127.5 % to $ 16.2 million compared to $ 7.1 million . • Completed two acquisitions during the quarter : HEAVY 16 and House & Garden . Recent Developments : ● Completed two acquisitions subsequent to quarter end : Aurora Innovations and Greenstar Plant Products . • Completed Investor Warrant redemption , raising approximately $ 56.8 million in gross proceeds . Revised Full Year 2021 Outlook vs. Prior Year : ● Significant increase in full year outlook with contribution from the four completed acquisitions . • Net sales growth of 45 % to 50 % ; Adjusted EBITDA ( 2 ) of $ 55.0 million to $ 62.0 million . • Pro Forma ( 3 ) net sales $ 565 million and $ 590 million ; Adjusted EBITDA ( 2 ) ( 3 ) of $ 80 million to $ 90 million . ( 1 ) Net income attributable to common stockholders after adjustment for assumed conversions of $ 0.2 million . ( 2 ) Adjusted EBITDA and Pro Forma Adjusted Net Income ( Loss ) are non - GAAP measures . For reconciliations of GAAP to non - GAAP measures see the " Reconciliation of Non - GAAP Measures " accompanying this release . ( 3 ) Pro Forma net sales and Pro Forma Adjusted EBITDA assumes that all four acquisitions had occurred on January 1 , 2021 . Bill Toler , Chairman and Chief Executive Officer of Hydrofarm , said , “ We maintained momentum during the second quarter , as demonstrated by 47 % increase in our top - line and significant improvement in our Adjusted EBITDA , which more than doubled on a dollar basis and increased considerably on margin basis . Our team also successfully executed against our acquisition strategy , completing four acquisitions during and subsequent to the second quarter , bringing four fantastic businesses in the nutrient and grow media categories under the Hydrofarm umbrella . These acquisitions not only help expand our proprietary consumable offerings and manufacturing prowess , but also demonstrate our position as the acquirer of choice in this highly fragmented industry . With positive top - line momentum , the execution of our multi - faceted strategy to increase our proprietary and preferred brand penetration via acquisition and in - house growth , while also boosting our robust commercial business , we believe Hydrofarm is uniquely equipped to capitalize on the long - term growth opportunity within the CEA industry . " Recent Developments Acquisition of Aurora Innovations On July 1 , 2021 , the Company completed the acquisition of Aurora Innovations ( together with several related entities , " Aurora " ) , a Eugene , Oregon - based manufacturer and supplier of organic hydroponic products . Through the Aurora acquisition , Hydrofarm added several key branded and self - manufactured products to its line - up , including Roots Organics and Procision grow media , Soul nutrients , Procision perlite and Aurora Peat Products soil mixes . The acquisition also added to the Company's domestic manufacturing footprint with newly acquired manufacturing facilities located in the Northeastern and the Northwestern US along with a peat moss harvesting operation in Canada . Investor Warrant Redemption On July 19 , 2021 , the Company completed its previously announced redemption of its outstanding warrants to purchase shares of the Company's common stock that were issued in connection with a private placement of units . Prior to the redemption date 3,367,647 Investor Warrants were exercised , generating approximately $ 56.8 million of gross proceeds to Hydrofarm and simplifying the Company's capital structure . Acquisition of Greenstar Plant Products On August 3 , 2021 , the Company completed the acquisition of a Canadian nutrient company , Greenstar Plant Products , Inc. With this acquisition ,