Urban-gro in the black for the first time

LAFAYETTE — Indoor agricultural engineering firm Urban-gro Inc. (Nasdaq: UGRO) posted a quarterly profit for the first time in the company’s eight-year history.

For the period that ended June 30, the Lafayette firm had net income of more than $1.25 million on record sales of nearly $12.2 million. That’s compared with a loss of nearly $1.57 million on revenues of roughly $3.1 million.

“I am excited that we achieved positive net income for the first time in our company’s eight-year history. Our backlog of signed contracts continues to build, which demonstrates a strong runway for the second half of the year,” Urban-gro CEO Bradley Nuttrass said in a statement accompanying the company’s quarterly report. “With the completed acquisition of MJ12 Design Studio, which now establishes Urban-gro as the only fully integrated vertical services company in the industry, we anticipate that the incremental projects will drive further high margin revenues and profits to the business.”

Based on the strength of Urban-gro’s recent performance, the company has purchased back about 400,000 of its shares at an average price of $8.63, according to chief financial officer Dick Ackright.

For the full fiscal year 2021, Urban-gro projects sales of $54 million to $59 million and adjusted EBITDA of $4 million to $5 million.

Urban-gro reported its earnings after the close of trading Wednesday. The company’s stock price was down 2.68% on the day but began picking up steam in early after-hours trading.

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