IRVINE, Calif. – Commercial nursery operator Hines Horticulture Inc. recently reported record results for the first quarter ended March 31, 2000, predominantly due to its recent acquisitions in both the nursery and growing media businesses. The results also reflect a steady economy and a positive outlook for the nursery industry [see Nursery Industry Booming In The ‘90s].
Hines’ net sales for the first quarter were $84.9 million, a 43 percent increase from $59.4 million a year ago. Operating income increased 48 percent to $10.9 million and net income for the quarter grew by 37 percent to $2.3 million from $1.7 million for the first quarter of 1999.
NURSERY PRODUCTS. Sales of Hines' nursery products increased by 49 percent during the first quarter, with particularly strong performances registered in its eastern region, due to unseasonably warm weather in early March, and its southern region, due to planned capacity expansions and store service programs.
The company's store service programs in the western region also continued to gain momentum; however, performance in the region overall was moderated by cool, wet weather in California during late February and early March. The company's most recent nursery acquisitions, Willow Creek in Arizona and Lovell Farms in Florida were both major contributors to a strong first quarter performance as each significantly increased sales from recent capacity expansions. [For more information about those two acquisitions, please click here: Commercial Nursery Operator Grows With Recent Acquisitions.]
GROWING MEDIA PRODUCTS. Net sales of Hines’ growing media products were up 37 percent for the quarter, despite the unfavorable weather conditions in California. Sales in the Eastern and Central regions both increased by more than 40 percent.
Sales of professional peat and mix led the growing media segment. According to Hines, rather than buying raw materials to do their own mixing, growers are increasingly purchasing higher margin, value-adding growing mixes to ensure product consistency and achieve cost savings related to labor and equipment.
OUTLOOK. Stephen Thigpen, Hines president and CEO, stated, "We have begun the new millennium with a very successful first quarter and are increasing momentum as we move into the heart of our peak selling season. The acquisitions which we have made during the past nine months have come on stream exceptionally well."
"These acquisitions are already contributing in many respects to our strong performance. Willow Creek is a prime example, having recently completed an ambitious growth plan investing in automation, mechanization and controlled production space to further increase its market share. Our most recent addition, Lovell Farms, joins Hines as the No. 1 supplier of bedding plants in Florida with more than $50 million in annual sales," he continued.