Urban-gro clawed closer to profitability in 2021

LAFAYETTE — Urban-gro Inc. (Nasdaq: UGRO) grew its sales and shrunk its losses in 2021, nearing profitability for the full fiscal year. 

The company lost $900,000, or 9 cents per share, on $62.1 million in sales 2021, compared with a loss of $5.1 million on $25.8 million in revenues during the prior year. 

In the fourth quarter of 2021, Urban-gro was $600,000 in the red on sales of $19 million, double the revenues posted in the fourth quarter of 2020.

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Urban-gro, an indoor agricultural engineering firm that primarily operates in the food and cannabis industries, has had an eventful 2021 and early 2022. Last February, it went public with a $62.1 million initial public offering. In June, Urban-gro purchased for $9 million the architecture and interior design firm MJ12 Design Studio, making it the first integrated architecture, engineering and cultivation company in the marijuana space. In August, it posted a quarterly profit for the first time. Then, in late 2021, Urban-gro invested $2.5 million in XS Financial (CSE: XSF), a company that provides financing and equipment leasing services to cannabis firms, before agreeing last month to acquire Centennial-based Emerald Construction for $7 million.

“I am thrilled about our strong fourth quarter results, which capped off a record full year performance for urban-gro. In 2021, we more than doubled the company from a revenue perspective, achieved positive Adjusted EBITDA, built our backlog to record levels, and expanded our integrated service model with the strategic acquisition of the architect firm, 2WR,” Urban-gro CEO Bradley Nattrass said in a prepared statement. “Building upon that momentum entering 2022, earlier this month we announced the pending acquisition of Emerald Construction, which adds an accretive and highly complementary CEA-experienced construction management services solution to our offering and further optimizes our in-house capabilities to provide complete design-built facilities to our clients. With these additional capabilities, we are in an ideal position to accelerate our momentum in the global CEA industry while simultaneously enhancing shareholder value.”

Urban-gro expects to record $110 million in sales for the 2022 fiscal year.