Thank you, Michael. Good morning and welcome to our third quarter 2019 earnings call. I would like to begin our call by thanking our troops who protect our country every day and our veterans who served our country on Veterans Day. I would also like to thank the Veterans who work for GrowGen for their service as well as our shareholders, management and employees for their continued support and belief in the mission, Michael and I set forth five years ago to build the largest national chain of hydroponic garden centers in the United States. With 25 locations in eight states today, GrowGeneration is a leading marketer and distributor of nutrients, growing media, advanced indoor and greenhouse lighting, ventilation systems and accessories for hydroponic gardening.
GrowGeneration is executing on all fronts; increasing revenues, gross profit margins and adjusted EBITDA for the third consecutive quarter. We've accomplished these financial goals, while aggressively investing in technology, infrastructure and human resources. This past week we hired Tony Sullivan as our Chief Operating Officer, one of our country's most experienced and proven multi-store operators. His initiatives will include, but not be limited to providing unwavering support to the 25 GrowGeneration stores, adding new locations, integrating our e-commerce and store supply channels and leveraging synergies among interconnect departments, working to drive more cost efficiencies across all areas of our company.
Joe Prinzivalli will be stepping away from his role as the Chief Operating Officer and moving into a new role as Chief Technology Officer. Under Joe's leadership, our company has grown into the premier hydroponic chain in the country and successfully rolled out a robust ERP system.
We saw a triple-digit growth in Colorado, Michigan and Nevada, and double-digit growth in all other markets, including HeavyGardens, our online business.
GrowGeneration Management Corp., our commercial division is now approaching $5 million in sales per quarter and we added over 60 new commercial accounts in the third quarter of 2019. The newly acquired stores and new store openings are all performing better-than-expected and have been successfully integrated into the operations of the overall company.
With our success in Oklahoma, which is now at $10 million annual sales and growing. The company assigned two new leases and is opening its 24th location in Oklahoma City on November 15, and 25th location in Tulsa, December of 2019.
Our private-label program under the [indiscernible] brand will hit our shelves and online in Q4.
Our initial private-label lineup includes a one part in micro and macronutrient plus Cal-Mag [ph] powder line for both the Cannabis and Hemp farmers, a [indiscernible] plus micronutrient booster and a root stimulant, all added that can be used with any nutrient regimen.
Addition -- additional private label products that will be on our shelves in Q4 include: [indiscernible] for hosting lice, breathable fabric pots and T5 for [indiscernible] for indoor gardening. The company has $16 million in cash and its now generating over $2 million a quarter free net cash, allowing us to close new acquisitions and open new store locations in emerging markets.
We improved the financial performance of the company in all areas. Revenue was up 159% year-over-year and $21.8 million.
For the nine-month period ending September 30, 2019, revenue was $54.3 million versus $19.9 million for the nine-month period ended September 30, 2018, an increase of 173% year-over-year. Adjusted EBITDA for Q3 2019 was slightly over $2 million, a positive $0.06 per share.
Adjusted EBITDA for the nine-month ended September 30, 2019 is approximately $4.5 million, a positive $0.14 per share.
Our same-store sales for Q3 2019 were up approximately 48% year-over-year. Gross margin profits increased to 29.9%, an increase of 420 basis points year-over-year. Gross profit dollars was $6.5 million, an increase of $4.3 million or 215% versus the same period year-over-year.
Our strategies to increase margins are working by purchasing in larger volumes and buying more efficiently. We saw a significant revenue increases in all key markets. Colorado was up 157%, California 67%, Nevada 136%, Michigan 105% and Rhode Island up 95%.
Our new stores in Oklahoma contributed $3.4 million in revenue in the third quarter and our stores in Maine added $2.5 million.
Our e-commerce store HeavyGardens added over $1.4 million, a 40% increase over the second quarter sales.
Our commercial division added over $4.5 million in revenue, up from $3.8 million in the previous quarter. With our significant top and bottom line growth, we reduced our store operating expenses by 25% and our corporate overhead by over 25% as a percentage of our revenue.
To highlight our four-wall economics as a percentage of revenue, gross profit was 29.9%, store operating expenses was 12.6%, G&A not including non-cash expenditures was 8.3%. Adjusted EBITDA was 9.4% of revenue, up from a negative 0.8% year-over-year. The company has successfully completed the implementation of its ERP system companywide with only our Seattle store left to onboard. The GrowGen ERPs platform is designed to lower costs, integrate our online store sales and supply channels, improve departmental productivity, and provide forecasting and reporting tools.
As our revenue continues to increase and corporate overhead declines as a percentage of revenue, we will continue to increase net income quarter-over-quarter. To date, we’ve acquired six locations and opened two, with two more set to open in the fourth quarter 2019. We've a strong pipeline of new acquisition targets set to close in Q4 2019 and 2020.
We are also investing in an aggressive new store opening program.
The company continues the process of uplifting the company to a larger exchange and we will provide guidance shortly. We were increasing our guidance for 2019 revenues to $74 million to $76 million and adjusted EBITDA to $0.14 to $0.18 per share for 2019 based on 36 million shares outstanding.
I'd like to spend a few minutes going over Q3 2019 financial highlights. Net income of $1,049,000 for Q3 2019 compared to a net loss of $784,000 for Q3 2018, an increase of $1.8 million. Adjusted EBITDA of $2,046,000 for Q3 2019 compared to adjusted EBITDA loss of $71,584 for Q3 2018, an increase of $2.1 million.
GAAP earnings of $0.03 per share for Q3 2019 and $0.07 per share year-to-date basic. Non-GAAP adjusted earnings per share of $0.06 per share for Q3 2019 and $0.14 per share year-to-date basic. Revenue of $21.8 million, up $13.4 million or 159% over Q3 2018 revenues of $8.4 million.
For the nine-month period ended September 30, 2019, revenue was $54.3 million versus $19.9 million. The same period 2018 an increase of 173%.
Same-store sales were up 48% for Q3, 2019 versus Q3, 2018. Gross profit margin percentage was 29.9% for Q3 2019 compared to 25.7% for Q3 2018. Store operating costs as a percentage of revenue have declined to 12.6% for Q3 2019 compared to 16.8% for Q3 2018. Corporate overhead as a percentage of revenue declined to 12%, 8.3% excluding non-cash for Q3 2019 compared to 16% of revenue for Q3 2018.
The company had $16 million in cash and cash equivalents at September 30, 2019.
As of September 30, 2019, the company had working capital of $30.4 million compared to working capital $21.6 million at December 31, 2018.
For the nine-month period ended September 30, 2019, the company acquired and opened eight stores. One in Denver Colorado, Palm Springs California, Reno Nevada, Grand Rapids Michigan and two in Maine, and opened new store locations in Tulsa Oklahoma and Brewer May. In the fourth quarter, the company plan to open its 24th and 25th locations in Oklahoma.
Tony Sullivan appointed Executive Vice President and Chief Operating Officer of GrowGeneration. Tony has most recently served as Executive Vice President and Chief Operating Officer of Forman Mills, a $300 million business, Dollar Express, a $500 million carve-out. Out of 330 Family Dollar stores in 36 states, and 20 plus years at Foot Locker leading 2,100 plus stores over $2.5 billion in sales as VP of Store Operations. All convertible debt has been converted to equity as of September 30, 2019.
It's with great pleasure I now turn the call over to our CFO, Monty Lamirato, who will provide more details to our third quarter results.