Thank you Michael. Good morning and welcome to our third quarter 2020 earnings call.
Before I begin my prepared remarks, I would like to thank each and every one of our staff and customers for their hard work, dedication, and loyalty.
As we continue to monitor the COVID-19 outbreak, GrowGen is considered an essential supplier to the agricultural industry, supplying the nutrients and nourishments required to feed their plants. Accordingly, all our 31 garden centers remained open during this difficult time.
We have procedures in place to ensure our customers and employees stay safe.
All of us at GrowGeneration remain committed the safety and wellbeing of our customers and employees.
We’re excited to report another quarter of record financial results and operating performance by our company.
As we continue to outpace our guidance, we are increasing fiscal year 2020 revenue guidance to $185 million to $190 million and increasing adjusted EBITDA guidance for 2020 to $19 million to $20 million.
We have set 2020 full year GAAP pre-tax net income guidance to $9 million to $11 million. Revenue guidance for full year 2021 is $280 million to $300 million, and full year adjusted EBITDA 2021 is $34 million to $36 million. The company’s third quarter 2020 record financial results reflect our continued focus on revenue growth and adjusted EBITDA expansion.
The third quarter of 2020 was the company’s 11th consecutive quarter of record revenue growth.
Our continued ability to attract the best of breed hydroponic garden centers is again evidenced by the recent signing of our asset purchase agreement with The GrowBiz that we plan to close before the end of the year. The GrowBiz adds an additional five garden centers in California and Oregon to the GrowGen portfolio and is the nation’s third largest hydroponic chain. The GrowBiz business is operating at an annual revenue run rate in excess of $50 million. Founded in 2020 by Ross and Ryan Haley, the GrowBiz team of 60 grow professionals brings tremendous experience and commercial relationships to GrowGen. Ross Haley, the former CEO of Hawthorne Gardening Company, a division of Scott’s MiracleGro, will be joining Bob Nardelli, the former CEO of Home Depot on GrowGen’s advisory board and will be contributing to the company in his role as senior strategic advisor, and we look forward to working with Ross not only continuing his legacy at The GrowBiz but also working with Ross on future acquisitions and other strategic initiatives. Revenue grew 153% quarter-over-quarter to approximately $55 million for the third quarter versus $21.8 million in the same period last year.
For the nine months ended September 30, 2020, revenue was $131 million versus $54 million for the nine months ended September 30, 2019, an increase of 142%. Adjusted EBITDA was $6.6 million for the third quarter compared to $2 million last year, an increase of 230%. Adjusted EBITDA for third quarter 2020 was $0.14 per share basic.
For the nine months 2020, adjusted EBITDA was $0.32 per share basic. Net income from store operations grew 156% to approximately $9.6 million for the third quarter, compared to $3.8 million for the same period last year.
For the nine months, income from operations grew 161% to $23 million from $8.6 million for the same period last year. Same store sales grew 73% in the third quarter when compared to the same period last year, and for the nine months ending September 30, 2020 same store sales grew 59% compared to the same period last year. GrowGeneration.com, the online business, is now generating a million dollars per month, up 112% for the third quarter versus last year and up 140% for nine months ending September 30, 2020 as compared to the same period last year.
Our commercial division is projected to do in excess of $40 million in annual revenue for 2020 and added $13 million in revenue in the quarter. This represents 188% increase for the third quarter of 2020 versus third quarter 2019, and a 200% increase for the nine months of 2020 versus 2019. To highlight our market by market growth, Colorado was up 37% quarter-over-quarter, 27% for the nine months; California plus-58%, plus-41% for the nine months; Michigan plus-272%, up 288% for the nine months; and Oklahoma, plus-288% or 312% for the nine months.
Our commercial revenues for the nine months ended September 30, 2020 were $32.7 million and our ecommerce revenues finished the first nine months of 2020 at $7.5 million.
We continue to focus on margin expansion strategies that include furthering the deployment of more private label products and driving more efficiencies at the purchasing level as we continue to scale and grow top line revenue.
Our private label program is in full production and we plan to derive 10% of our revenue from our private label product offerings.
We are proud of the reduction in store operating costs that fell to just 9% of revenue, down 28% from 12.6% compared to the third quarter of 2019, and corporate payroll and G&A, excluding non-cash compensation and depreciation declined 34% to 5.5% of revenue compared to 8.4% of revenue for the third quarter of 2019.
We expect new acquisitions and new store openings to continue through the remainder of 2020 and in the first quarter of 2021 to continue to drive and help achieve our planned 50-plus locations in 2021 across 15 states.
Following the state legalization road map, GrowGen acquired Phoenix, Arizona-based Hydroponic Depot and is securing leases in New Jersey for spring 2021 opening of GrowGen locations in the Garden State. The New Jersey locations will serve not only the emerging New Jersey market but also the adjacent states of New York and Pennsylvania, as we believe both states will follow New Jersey’s legalization path. GrowGen has a tremendous team of essential employees who have made a commitment to our company and customers, and I could not be any prouder. I am inspired by their efforts and dedication, and they have worked tirelessly to service our customers and communities. I will now turn the call over to Tony Sullivan, our Chief Operating Officer, who will brief everyone on our current COVID-19 risk mitigation procedures and key operational initiatives executed in the third quarter, and then to our CFO, Monty Lamirato, who will provide more details on our third quarter 2020 results. Tony?