LAFAYETTE, CO - urban-gro, Inc. (NASDAQ:UGRO), a professional services and design-build firm, has been selected to provide architectural and interior design services for the Henry County Water Authority (HCWA) project in McDonough, Georgia. The project is set to consolidate various departments into a modern workspace, comprising a new office building, shop, warehouse, and ancillary structures. The design phase, led by urban-gro in partnership with BARGE Design Solutions, begins immediately with expected revenue recognition by the end of the second quarter of 2025.
Bradley Nattrass, Chairman and CEO of urban-gro, expressed pride in joining the HCWA project team and emphasized the company's commitment to creating a functional and sustainable community resource. The collaboration with BARGE is anticipated to reinforce their long-standing relationship.
urban-gro specializes in providing integrated services across various sectors, including Controlled Environment Agriculture (CEA), industrial, healthcare, and commercial. The company prides itself on innovation, collaboration, and creativity, aiming to deliver exceptional customer experiences.
The press release also includes forward-looking statements regarding the company's financial projections, business strategy, and future operations. It outlines potential risks such as competition, regulatory actions, supply chain issues, economic factors, and reliance on key customers and suppliers that could impact the company's performance.
The information in this article is based on a press release statement from urban-gro, Inc. and does not include any promotional content or subjective judgment. The focus remains on the factual announcement of the HCWA project and urban-gro's role in its development.
In other recent news, urban-gro, a professional services and Design-Build firm, has made significant progress with various projects and contracts. The company has secured contracts valued at approximately $12 million in the cannabis sector, providing a range of services such as equipment procurement and engineering, architecture, and design for cultivation, extraction, and retail dispensaries. These contracts are expected to generate substantial revenue, with the majority anticipated by the end of the first quarter of 2025.
Furthermore, urban-gro's portfolio has expanded to include architectural design for the new Union City Fire Station in Georgia and the construction of a new establishment for Brazilian restaurant chain Fogo de Chão in Texas. The company has also been awarded contracts to renovate the Davidson Student Center at Columbus State University and to build a new P.F. Chang's restaurant location in Colorado.
In terms of financial performance, urban-gro exceeded its first quarter 2024 revenue guidance by $15.5 million and maintains its full-year revenue guidance of over $84 million. As part of its corporate governance, the company has expanded its stock incentive plan by an additional 1.2 million shares and appointed Sadler, Gibb & Associates LLC as its new independent registered public accounting firm. These are the recent developments in urban-gro's business operations.
InvestingPro Insights
As urban-gro, Inc. (NASDAQ:UGRO) embarks on this new project with the Henry County Water Authority, investors may want to consider some key financial metrics and insights from InvestingPro.
According to InvestingPro data, urban-gro's market capitalization stands at $18.23 million USD, reflecting its current market valuation. The company has shown revenue growth of 12.08% over the last twelve months as of Q1 2024, reaching $70.32 million USD. This growth aligns with the company's ongoing efforts to secure projects like the HCWA design contract.
However, it's important to note that urban-gro faces some financial challenges. An InvestingPro Tip indicates that the company is "quickly burning through cash," which could be a concern for investors considering the long-term timeline of the HCWA project, with revenue recognition expected by the end of Q2 2025. Additionally, another InvestingPro Tip points out that urban-gro "suffers from weak gross profit margins," with the data showing a gross profit margin of 15.03% for the last twelve months as of Q1 2024.
Despite these challenges, the stock has shown a positive 1-year price total return of 23.33% as of the latest data, suggesting some investor optimism. The company's price-to-book ratio of 0.98 indicates that the stock is trading close to its book value.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for urban-gro, providing a deeper understanding of the company's financial health and market position.
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