Boulder-based AeroGrow posts third-quarter profit

BOULDER — AeroGrow International Inc. (OTCQB: AERO), a manufacturer and distributor of indoor-gardening systems, on Tuesday reported a profit for its third quarter that ended Dec. 31.

Its quarterly profit of $406,000, a decline from $622,000 in the same period a year ago, was attributed to an increase in marketing expenses. For the nine-month period, loss from operations improved to $452,000 from $658,000 in the prior year.

The Boulder-based company recorded net revenue of $17.4 million, an increase of 31 percent compared with the same period a year ago, and year-to-date, net revenue increased by 45 percent to $25.6 million.

AeroGrow’s president and chief executive, J. Michael Wolfe, said the company had “exceptional” sales at key retailers during the holiday-selling season.

He said distribution successes included double-digit sell-thru increases at established accounts, including Amazon.com and Bed, Bath & Beyond.

“We also achieved successful first year results at Kohl’s, Macy’s, Canadian Tire and Target, and solid results from established partners like Sur La Table, Walmart.com and others,” he said in a prepared statement.

He said the company generated 200 percent growth on its Amazon platforms in Europe, albeit off of a relatively small base.

Effective March 31, Jack J. Walker and Wayne Harding will step  down from AeroGrow’s board of directors. Nominated to take their places are H. MacGregor Clarke and David B. Kent. Clarke formerly served as AeroGrow’s chief financial officer and is now senior vice president and chief financial officer of Johns Manville, a Berkshire Hathaway company. Kent has experience with Proctor & Gamble Co., E. & J. Gallo Winery and The Wine Group LLC.  

 


 

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