urban-gro, Inc. Awarded First Project Under Master Services Agreement with P.F. Chang’s, Marking a Significant Milestone in Hospitality Sector Diversification

Rhea-AI Summary

urban-gro, Inc. (NASDAQ:UGRO), an integrated professional services and Design-Build firm, has been awarded its first project with P.F. Chang's under a Master Services Agreement signed in Q3 2023. The project, set to begin in Q3 2024, involves the full build-out of a restaurant in Westminster, Colorado. urban-gro expects to recognize the majority of the undisclosed revenue from this project over the next six months.

This partnership marks a significant milestone in urban-gro's diversification into the hospitality sector. CEO Bradley Nattrass expressed excitement about the collaboration, emphasizing the company's commitment to excellence and innovative construction management solutions in the hospitality industry.

Positive

• Secured first project with major restaurant chain P.F. Chang's
• Diversification into hospitality sector
• Revenue recognition expected over next six months
• Potential for future projects with P.F. Chang's

Negative

• None.

Insights

Financial Analyst

The announcement of urban-gro's first project with P.F. Chang's under their Master Services Agreement is a positive development for the company's diversification strategy. While the revenue for this specific project is undisclosed, it represents a significant milestone in urban-gro's expansion into the hospitality sector.

The project's timeline, set to commence in Q3 2024 with the majority of revenue recognition expected over the following six months, suggests a potential boost to urban-gro's financial performance in late 2024 and early 2025. This could provide a steady revenue stream and improved visibility for investors.

However, it's important to note that the impact on overall financials may be without knowing the project's size relative to urban-gro's total revenue. Investors should watch for future announcements regarding additional P.F. Chang's projects to gauge the long-term value of this partnership.

Market Research Analyst

urban-gro's entry into the hospitality sector with P.F. Chang's represents a strategic diversification move. This expansion beyond their traditional focus areas demonstrates the company's adaptability and potential for market share growth in new sectors.

The partnership with a well-known brand like P.F. Chang's could serve as a valuable reference for urban-gro, potentially opening doors to other major players in the hospitality industry. This move may help mitigate risks associated with overreliance on specific sectors, enhancing the company's resilience to market fluctuations.

Investors should monitor how this diversification affects urban-gro's overall growth trajectory and whether it leads to a significant expansion of their client base in the hospitality sector. The success of this initial project could be a key indicator of urban-gro's ability to compete effectively in this new market.

LAFAYETTE, CO / ACCESSWIRE / September 3, 2024 / urban-gro, Inc. (NASDAQ:UGRO) ("urban-gro" or the "Company"), an integrated professional services and Design-Build firm offering solutions to multiple sectors, today announced that after executing a Master Services Agreement (MSA) in the third quarter of 2023, the Company has been awarded its first project with the well-known Asian culinary restaurant, P.F. Chang's. Anticipated to commence in the third quarter of 2024, the project scope of work will include the full build-out of a restaurant location in Westminster, Colorado. The company anticipates that the majority of the undisclosed revenue for this project will be recognized during the next six months.

"We are incredibly excited to partner with P.F. Chang's and look forward to delivering on schedule, and in turn, earning the opportunity to participate on additional projects in the future," said Bradley Nattrass, Chairman and CEO. "The partnership underscores our commitment to excellence in the hospitality sector through the deployment of innovative construction management solutions."

About urban-gro, Inc.

urban-gro, Inc.® (Nasdaq:UGRO) is an integrated professional services and Design-Build firm. We offer value-added architectural, engineering, and construction management solutions to the Controlled Environment Agriculture, industrial, hospitality, and other commercial sectors. Innovation, collaboration, and creativity drive our team to provide exceptional customer experiences. With offices across North America and in Europe, we deliver Your Vision - Built. Learn more by visiting www.urban-gro.com.

About P.F. Chang's

Founded in 1993 by Philip Chiang and Paul Fleming, P.F. Chang's is the first internationally recognized multi-unit Asian culinary brand to honor and celebrate the 2,000-year-old tradition of wok cooking as the center of the guest experience. With roots in Chinese cuisine, today's menu at P.F. Chang's spans across all of Asia, honoring cultures and recipes from Japan, Korea, Thailand, and beyond. Each item offers a unique exploration of flavor, whether it's a handcrafted cocktail, wok-fired lunch bowl, or celebratory Chef's Feast 3-course dinner. Worldwide, P.F. Chang's has more than 300 restaurants in 22 countries and U.S. airport locations. For more P.F. Chang's news, visit pfchangs.com and follow us on Facebook, Instagram, and TikTok @pfchangs.

Safe Harbor Statement

This press release contains forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this release, terms such as "believes," "will," "expects," "anticipates," "may," "projects" and similar expressions and variations as they relate to the Company or its management are intended to identify forward-looking statements. The forward-looking statements in this press release include, without limitation, financial projections, financial guidance, future events, business strategy, future performance, future operations, future demand, backlog, financial position, estimated revenues, losses, adjusted EBITDA, prospects, plans and objectives of management, including the future ability to position the Company for long-term profitable growth. These and other forward-looking statements are based on current expectations, forecasts, and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially from those anticipated or expected, including, among others, our ability to successfully manage and integrate acquisitions, our ability to accurately forecast revenues and costs, competition for projects in our markets, our ability to predict and respond to new laws and governmental regulatory actions, including delays granting licenses to clients or potential clients and delays in passage of legislation expected to benefit our clients or potential clients, our ability to successfully develop new and/or enhancements to our product offerings and develop a product mix to meet demand, risks related to adverse weather conditions, supply chain issues, rising interest rates, economic downturn or other factors that could cause delays or the cancellation of projects in our backlog or our ability to secure future projects, our ability to maintain favorable relationships with suppliers, risks associated with reliance on key customers and suppliers, our ability to attract and retain key personnel, results of litigation and other claims and insurance coverage issues, risks related to our information technology systems and infrastructure, risks associated with climate change and ESG matters, our ability to maintain effective internal controls, our ability to execute on our strategic plans, our ability to achieve and maintain cost savings, the sufficiency of our liquidity and capital resources, and our ability to achieve our key initiatives for 2023, particularly our growth initiatives. A more detailed description of these and certain other factors that could affect actual results is included in the Company's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date hereof, except as may be required by law.

Investor Contacts:

Jeff Sonnek - ICR, Inc.
(720) 730-8160
investors@urban-gro.com

Media Contact:

Barbara Graham - urban-gro, Inc.
(720) 903-1139
media@urban-gro.com

SOURCE: urban-gro, Inc.

View the original press release on accesswire.com

FAQ

What is the first project urban-gro (UGRO) has been awarded under its agreement with P.F. Chang's?

urban-gro has been awarded the full build-out of a P.F. Chang's restaurant location in Westminster, Colorado, set to commence in the third quarter of 2024.

When did urban-gro (UGRO) sign the Master Services Agreement with P.F. Chang's?

urban-gro signed the Master Services Agreement with P.F. Chang's in the third quarter of 2023.

How will the P.F. Chang's project impact urban-gro's (UGRO) revenue?

The majority of the undisclosed revenue from this project is expected to be recognized by urban-gro over the next six months.

What sector is urban-gro (UGRO) expanding into with this P.F. Chang's project?

This project marks urban-gro's significant expansion and diversification into the hospitality sector.