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LAFAYETTE, CO - urban-gro, Inc. (NASDAQ:UGRO), a professional services and Design-Build firm, has been awarded a project to build out a new P.F. Chang's restaurant location in Westminster, Colorado. The project, which is the result of a Master Services Agreement signed in the third quarter of 2023, is expected to start in the third quarter of 2024.
The company's Chairman and CEO, Bradley Nattrass, expressed enthusiasm about the partnership with P.F. Chang's, emphasizing the firm's commitment to delivering innovative construction management solutions in the hospitality sector. The financial details of the project were not disclosed, but urban-gro anticipates recognizing the majority of the revenue within the next six months.
urban-gro, based in North America with offices in Europe, provides architectural, engineering, and construction management services across various sectors, including Controlled Environment Agriculture, industrial, hospitality, and commercial. The firm prides itself on innovation, collaboration, and creativity, aiming to deliver exceptional customer experiences.
P.F. Chang's, an internationally recognized Asian culinary brand, was founded in 1993 and has since expanded to over 300 restaurants in 22 countries. The brand is known for its wok cooking tradition and offers a diverse menu that celebrates Asian flavors from regions like Japan, Korea, Thailand, and beyond.
This collaboration marks urban-gro's continued growth and its ability to secure significant projects in the hospitality industry. The information for this article is based on a press release statement.
In other recent news, urban-gro Inc. has secured contracts in the cannabis sector, collectively valued at approximately $12 million. The company is set to provide engineering, architecture, design, equipment procurement, and construction management services for various cultivation and retail dispensary projects. The majority of the revenue from these deals is expected to be recognized by the end of the third quarter of 2024.
Simultaneously, urban-gro has expanded its stock incentive plan by an additional 1.2 million shares, a decision approved at the company's annual meeting. The company has also appointed Sadler, Gibb & Associates LLC as its new independent registered public accounting firm, strengthening its commitment to robust accounting and financial reporting practices.
In terms of financial performance, urban-gro exceeded its quarterly revenue guidance by $15.5 million in the first quarter of 2024. Despite a decrease in revenue from the previous year, the company's financial health appears stable, with a strong backlog and a continued focus on returning to positive adjusted EBITDA. The company maintains its full-year revenue guidance of over $84 million. These are among the recent developments at urban-gro.
InvestingPro Insights
As urban-gro, Inc. (NASDAQ:UGRO) embarks on its new project with P.F. Chang's, investors are closely monitoring the company's financial health and stock performance. According to InvestingPro data, urban-gro is currently navigating challenging financial waters with a market capitalization of 17.06 million USD. Despite a revenue increase over the last twelve months as of Q1 2024 by 12.08%, the company's gross profit margin stands at a modest 15.03%, reflecting some of the concerns mentioned in InvestingPro Tips about the company's weak gross profit margins.
InvestingPro Tips also highlight that urban-gro is quickly burning through cash and analysts are not expecting the company to be profitable this year. With the stock experiencing significant volatility and a notable decline of 37.05% over the last six months, investors might exercise caution. The company's valuation also implies a poor free cash flow yield, which could be a point of concern for those looking at the long-term financial stability of urban-gro.
For those interested in a deeper analysis, InvestingPro offers additional tips on urban-gro, providing a comprehensive look at factors such as debt levels, stock price history, and dividend policies. There are nine more InvestingPro Tips available, which can be accessed for further guidance on the company's financial outlook.
While the new project with P.F. Chang's represents a positive development for urban-gro's growth in the hospitality sector, the company's financial metrics and stock performance present a nuanced picture that potential investors should consider. The full spectrum of InvestingPro insights can be found at https://www.investing.com/pro/UGRO, offering a valuable resource for those looking to make informed investment decisions concerning urban-gro.
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