Westrock Coffee Company Reports Fourth Quarter and Full Year 2024 Results and Provides 2025 and 2026 Outlook
LITTLE ROCK, Ark., March 11, 2025 (GLOBE NEWSWIRE) -- Westrock Coffee Company (Nasdaq: WEST) ("Westrock Coffee" or the "Company") today reported financial results for the fourth quarter and full year ended December 31, 2024 and provided its outlook for 2025 and 2026.
Full Year 2024 Highlights(1)
-- Consolidated Results
-- Net sales were $850.7 million, a decrease of 1.6%
-- Gross profit was $153.8 million, an increase of 10.0%
-- Net loss was $80.3 million compared to a net loss of $34.6 million
in fiscal 2023
-- Consolidated Adjusted EBITDA2 was $47.2 million and included $12.8
million of scale-up costs associated with our Conway Facility,
compared to Consolidated Adjusted EBITDA of $45.1 million and no
scale-up costs associated with our Conway Facility
-- Segment Results
-- Beverage Solutions
-- Net sales were $659.4 million, a decrease of 8.8%
-- Segment Adjusted EBITDA3 was $53.6 million, an increase of
28.9%
-- Credit Agreement secured net leverage ratio was 4.71x at
December 31, 2024
-- Sustainable Sourcing & Traceability ("SS&T")
-- Net sales were $191.3 million, an increase of 34.9%
-- Segment Adjusted EBITDA was $6.4 million, an increase of
84.1%
Commenting on our results, Scott T. Ford, CEO and Co-founder stated, "Westrock Coffee's value proposition in the market is to be the premiere integrated strategic supplier to the pre-eminent coffee, tea, and energy beverage brands globally. And, in 2024 we made considerable progress executing against this strategy as evidenced by the dozen new major brands that we began to provide product development and manufacturing services to. These relationships helped us exit 2024 with 4Q Segment Adjusted EBITDA growth in both our reportable segments of over 50%, and leaves us poised for more of the same over the next couple of years as the major new contracts we have recently won begin to flow through the new $400 million manufacturing complex in Conway, Arkansas that comes online at scaled production levels this month."
________________________
(1 Unless otherwise indicated, all comparisons are to the prior year period.)
(2 Consolidated Adjusted EBITDA is a non-GAAP financial measure. The definition of Consolidated Adjusted EBITDA is included under the section titled "Non-GAAP Financial Measures" and a reconciliation of Consolidated Adjusted EBITDA to the most directly comparable GAAP measure is provided in the tables that accompany this release.)
(3 Segment Adjusted EBITDA is a segment performance measure, which is required by U.S. GAAP to be disclosed in accordance with FASB Accounting Standards Codification 280, Segment Reporting. Segment Adjusted EBITDA is defined consistently with Consolidated Adjusted EBITDA, except that it excludes scale-up costs related to our Conway Facility.)
Fourth Quarter Highlights(4)
-- Consolidated Results
-- Net sales were $229.0 million, an increase of 6.5%
-- Gross profit was $38.0 million, an increase of 9.2%
-- Net loss was $24.6 million, compared to a net loss of $20.1
million in the prior year period
-- Consolidated Adjusted EBITDA was $13.3 million and included $7.6
million of scale-up costs associated with our Conway Facility,
compared to Consolidated Adjusted EBITDA of $13.7 million and no
scale-up costs in the prior year period
-- Segment Results
-- Beverage Solutions
-- Net sales were $174.1 million, essentially flat
-- Segment Adjusted EBITDA was $17.8 million, an increase of
53.0%
-- SS&T
-- Net sales were $54.9 million, an increase of 37.8%
-- Segment Adjusted EBITDA was $3.1 million, an increase of
51.6%
________________________
(4 Unless otherwise indicated, all comparisons are to the prior year period.)
Upsizing of Revolving Credit Facility
On January 15, 2025, the Company entered into an Incremental Assumption Agreement and Amendment No. 4 (the "Amendment") to its credit agreement. The Amendment expanded the bank syndicate to include members from the Farm Credit System and increased the amount of revolving credit facility commitments by $25.0 million. As a result of the Amendment, the amount of revolving facility commitments available to the Company is $200.0 million. Proceeds from the expanded revolving credit facility will be used to fund the previously announced installation of a second ready-to-drink can line at the Company's extract and ready-to-drink facility in Conway, Arkansas, and for general corporate purposes. The Amendment also modified the secured net leverage ratio that the Company must comply with during the covenant relief period to increase the maximum secured net leverage ratio to (a) 6.00x for the test period ending June 30, 2025, (b) 5.50x for the test period ending September 30, 2025, and (c) 5.25x for the test period ending December 31, 2025. In addition, the minimum liquidity covenant will not apply after the covenant relief period ends.
2025 and 2026 Outlook
In 2025, the Company is expecting significant growth via several important drivers:
(i) volume growth in the Company's core coffee business
from new retail coffee customers;
(ii) volume growth in the Company's core coffee business
from new retail coffee customers;
(iii) full year benefit of expense savings from cost reduction
and facility consolidation efforts in 2024;
(iv) expense savings through operational improvements within
our core manufacturing facilities; and
(v) the rapid scale up of our RTD can volumes beginning
in the second quarter of 2025 and continuing through
the second quarter of 2026, and the launch of our
RTD glass bottle products in the third quarter of
2025 and volume scale up through the second quarter
of 2026.
The guidance presented is an estimate of what the Company believes is realizable as of the date of this release, based on the current "C" market price of coffee, and excludes any impacts of future acquisitions, capital market transactions or the potential impact of tariffs. As such, actual results may vary from this guidance and the variations may be material. Management will provide additional details regarding the 2025 and 2026 outlook on its earnings results call to be held today.
Consolidated Guidance
1H 2025 2H 2025 2026
------------ ------------ --------------
(Millions) Low High Low High Low High
------------- ----- ----- ----- ----- ------ ------
Consolidated
Adjusted
EBITDA $17.5 $24.0 $42.5 $49.0 $130.0 $150.0
The Company is not readily able to provide a reconciliation of forecasted Consolidated Adjusted EBITDA to forecasted GAAP net income (loss) without unreasonable effort because certain items that impact such figure are uncertain or outside the Company's control and cannot be reasonably predicted. Such items include the impacts of non-cash gains or losses resulting from mark-to-market adjustments, among others.
Segment Guidance(5)
1H 2025 2H 2025 2026
------------ ------------ --------------
(Millions) Low High Low High Low High
----------- ----- ----- ----- ----- ------ ------
Segment
Adjusted
EBITDA
Beverage
Solutions $25.0 $30.0 $45.0 $50.0 $125.0 $142.0
SS&T 2.5 4.0 2.5 4.0 5.0 8.0
Leverage Guidance
The Company is subject to a maximum secured net leverage ratio, as defined in its credit agreement. The Company expects its Beverage Solutions credit agreement secured net leverage ratio to be as follows:
June 30, December 31, December 31,
2025 2025 2026
-------- ------------ ------------
Beverage Solutions Credit 5.70x 4.90x 3.00x
Agreement secured net
leverage ratio
The Company is not readily able to provide a reconciliation of forecasted Beverage Solutions Credit Agreement Adjusted EBITDA to forecasted Beverage Solutions Adjusted EBITDA(5) without unreasonable effort because certain items that impact such figure are uncertain or outside the Company's control and cannot be reasonably predicted.
________________________
(5 Segment Adjusted EBITDA is a segment performance measure, which is required by U.S. GAAP to be disclosed in accordance with FASB Accounting Standards Codification 280, Segment Reporting. Segment Adjusted EBITDA is defined consistently with Consolidated Adjusted EBITDA, except that it excludes scale-up costs related to our Conway Facility.)
Conference Call Details
Westrock Coffee will host a conference call and webcast at 4:30 p.m. ET today to discuss this release. To participate in the live earnings call and question and answer session, please register HERE and dial-in information will be provided directly to you. The live audio webcast will be accessible in the "Events and Presentations" section of the Company's Investor Relations website at https://investors.westrockcoffee.com. An archived replay of the webcast will be available shortly after the live event has concluded and will be available for a minimum of 14 days.
About Westrock Coffee
Westrock Coffee is a leading integrated coffee, tea, flavors, extracts, and ingredients solutions provider in the United States, providing coffee sourcing, supply chain management, product development, roasting, packaging, and distribution services to the retail, food service and restaurant, convenience store and travel center, non-commercial account, CPG, and hospitality industries around the world. With offices in 10 countries, the Company sources coffee and tea from numerous countries of origin.
Forward-Looking Statements
Certain statements in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended from time to time. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend, " "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook," and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, but are not limited to, our 2025 and 2026 financial outlook, our expectations regarding leverage ratios and compliance with the financial covenants in our credit agreement, expected volume growth in the Company's core coffee business, our expectations regarding volume commitments from existing single serve customers and new single serve customer volumes, our expectations regarding expense savings from cost reduction and facility consolidation efforts in 2024, certain plans, expectations, goals, projections, and statements about the timing and benefits of the build-out of (including the installation of a second RTD can line), and the rapid scale up of our RTD can volumes, and the launch and scale up of our RTD glass bottle products from, the Company's Conway, Arkansas extract and ready-to-drink facility, the plans, objectives, expectations, and intentions of Westrock Coffee, and other statements that are not historical facts. These statements are based on information available to Westrock Coffee as of the date hereof and Westrock Coffee is not under any duty to update any of the forward-looking statements after the date of this communication to conform these statements to actual results. These statements are based on various assumptions, whether or not identified in this communication, and on the current expectations of the management of Westrock Coffee as of the date hereof and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and should not be relied on by an investor, or others, as a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Westrock Coffee. These forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to, changes in domestic and foreign business, market (including continued increases in the "C" market price of green coffee), financial, political, and legal conditions; our inability to secure an adequate supply of key raw materials, including green coffee and tea, or disruption in our supply chain, including from trade restrictions; risks relating to the uncertainty of the projected financial information with respect to Westrock Coffee; risks related to the rollout of Westrock Coffee's business and the timing of expected business milestones; the effects of competition on Westrock Coffee's business; the ability of Westrock Coffee to issue equity or equity-linked securities or obtain debt financing in the future; Westrock Coffee's future level of indebtedness, which may reduce funds available for other business purposes and reduce the Company's operational flexibility; the risk that Westrock Coffee fails to attract, motivate or retain qualified personnel; the risk that Westrock Coffee fails to fully realize the potential benefits of acquisitions or joint ventures or has difficulty successfully integrating acquired companies; the availability of equipment and the timely performance by suppliers involved with the build-out of the Conway, Arkansas extract and ready-to-drink facility; Westrock Coffee's inability to complete the construction and launch of its planned second RTD can line or RTD glass line as expected or the risk of incurring additional expenses in the process; the loss of significant customers or delays in bringing their products to market; litigation or legal disputes, which could lead us to incur significant liabilities and costs or harm our reputation; and those factors discussed in Westrock Coffee's Annual Report on Form 10-K, which was filed with the United States Securities and Exchange Commission (the "SEC") on March 15, 2024, in Part I, Item 1A "Risk Factors" and other documents Westrock Coffee has filed, or will file, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Westrock Coffee does not presently know, or that Westrock Coffee currently believes are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. In addition, the forward-looking statements reflect Westrock Coffee's expectations, plans, or forecasts of future events and views as of the date of this communication. Westrock Coffee anticipates that subsequent events and developments will cause Westrock Coffee's assessments to change. However, while Westrock Coffee may elect to update these forward-looking statements at some point in the future, Westrock Coffee specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as a representation of Westrock Coffee's assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements.
Contacts
Media:
PR@westrockcoffee.com
Investor Contact:
IR@westrockcoffee.com
Westrock Coffee Company
Consolidated Balance Sheets
(Unaudited)
(Thousands, except par
value) December 31, 2024 December 31, 2023
--------------------------- ------------------- ---------------------
ASSETS
Cash and cash equivalents $ 26,151 $ 37,196
Restricted cash 9,413 644
Accounts receivable, net
of allowance for credit
losses of $3,995 and
$2,915, respectively 99,566 99,158
Inventories 163,323 149,921
Derivative assets 19,746 13,658
Prepaid expenses and
other current assets 15,444 12,473
-------------- --------------
Total current assets 333,643 313,050
Property, plant and
equipment, net 467,011 344,038
Goodwill 116,111 116,111
Intangible assets, net 114,879 122,945
Operating lease
right-of-use assets 63,380 67,601
Other long-term assets 6,756 7,769
-------------- --------------
Total Assets $ 1,101,780 $ 971,514
============== ==============
LIABILITIES, CONVERTIBLE
PREFERRED SHARES AND
SHAREHOLDERS' EQUITY
Current maturities of
long-term debt $ 14,057 $ 9,811
Short-term debt 54,659 43,694
Accounts payable 84,255 69,106
Supply chain finance
program 78,838 78,076
Derivative liabilities 11,966 3,731
Accrued expenses and
other current
liabilities 34,095 35,217
-------------- --------------
Total current
liabilities 277,870 239,635
Long-term debt, net 325,880 223,092
Convertible notes
payable - related party,
net 49,706 --
Deferred income taxes 14,954 10,847
Operating lease
liabilities 60,692 63,554
Warrant liabilities -- 44,801
Other long-term
liabilities 1,346 1,629
-------------- --------------
Total liabilities 730,448 583,558
Commitments and
contingencies
Series A Convertible
Preferred Shares, $0.01
par value, 24,000 shares
authorized, 23,511
shares and 23,512 shares
issued and outstanding
at December 31, 2024 and
December 31, 2023,
respectively, $11.50
liquidation value 273,850 274,216
Shareholders' Equity
Preferred stock, $0.01
par value, 26,000 shares
authorized, no shares
issued and outstanding -- --
Common stock, $0.01 par
value, 300,000 shares
authorized, 94,221
shares and 88,051 shares
issued and outstanding
at December 31, 2024 and
December 31, 2023,
respectively 942 880
Additional
paid-in-capital 519,878 471,666
Accumulated deficit (442,922) (362,624)
Accumulated other
comprehensive income 19,584 3,818
-------------- --------------
Total shareholders'
equity 97,482 113,740
-------------- --------------
Total Liabilities,
Convertible Preferred
Shares and Shareholders'
Equity $ 1,101,780 $ 971,514
============== ==============
Westrock Coffee Company
Consolidated Statements of Operations
(Unaudited)
Three Months Ended Year Ended December
December 31, 31,
-------------------- ----------------------
(Thousands, except
per share data) 2024 2023 2024 2023
------------------ -------- -------- -------- --------
Net sales $228,977 $214,966 $850,726 $864,714
Costs of sales 190,965 180,149 696,952 724,856
------- ------- ------- -------
Gross profit 38,012 34,817 153,774 139,858
Selling, general
and
administrative
expense 42,955 39,302 185,137 144,577
Transaction,
restructuring
and integration
expense 3,896 1,875 13,797 14,557
Impairment
charges 3,690 -- 5,686 --
(Gain) loss on
disposal of
property, plant
and equipment (2,687) 8 (1,722) 1,153
------- ------- ------- -------
Total operating
expenses 47,854 41,185 202,898 160,287
------- ------- ------- -------
Loss from
operations (9,842) (6,368) (49,124) (20,429)
Other (income)
expense
Interest expense 11,935 7,941 33,856 29,157
Change in fair
value of warrant
liabilities 119 8,626 (7,015) (10,207)
Other, net 190 123 413 1,446
------- ------- ------- -------
Loss before income
taxes and equity
in earnings from
unconsolidated
entities (22,086) (23,058) (76,378) (40,825)
Income tax
expense
(benefit) 2,474 (3,027) 3,728 (6,358)
Equity in
(earnings) loss
from
unconsolidated
entities 47 20 192 100
------- ------- ------- -------
Net loss $(24,607) $(20,051) $(80,298) $(34,567)
Net loss
attributable to
non-controlling
interest -- -- -- 15
------- ------- ------- -------
Net loss
attributable to
shareholders (24,607) (20,051) (80,298) (34,582)
Accretion of
Series A
Convertible
Preferred
Shares 87 88 349 (161)
------- ------- ------- -------
Net loss
attributable to
common
shareholders $(24,520) $(19,963) $(79,949) $(34,743)
======= ======= ======= =======
Loss per common
share:
Basic $ (0.26) $ (0.23) $ (0.89) $ (0.43)
======= ======= ======= =======
Diluted $ (0.26) $ (0.23) $ (0.89) $ (0.43)
======= ======= ======= =======
Weighted-average
number of shares
outstanding:
Basic 94,188 88,047 89,795 80,684
======= ======= ======= =======
Diluted 94,188 88,047 89,795 80,684
======= ======= ======= =======
Westrock Coffee Company
Consolidated Statements of Cash Flows
(Unaudited)
Year Ended December 31,
-----------------------------
(Thousands) 2024 2023
-------------------------------------- -------------- -------------
Cash flows from operating activities:
Net loss $ (80,298) $ (34,567)
Adjustments to reconcile net loss to
net cash provided by (used in)
operating activities:
Depreciation and amortization 34,745 26,584
Impairment charges 5,686 --
Equity-based compensation 11,608 8,708
Provision for credit losses 2,316 979
Amortization of deferred financing
fees included in interest expense 3,224 3,517
(Gain) loss on disposal of
property, plant and equipment (1,722) 1,153
Mark-to-market adjustments (4,622) (104)
Change in fair value of warrant
liabilities (7,015) (10,207)
Foreign currency transactions 598 1,864
Deferred income tax expense
(benefit) 3,287 (6,512)
Other 1,257 2,486
Change in operating assets and
liabilities:
Accounts receivable (2,766) 1,688
Inventories (6,558) 915
Derivative assets and liabilities 16,383 6,440
Prepaid expense and other assets 1,983 (1,890)
Accounts payable 5,693 (59,292)
Accrued liabilities and other 2,958 (5,826)
--------- ---------
Net cash used in operating activities (13,243) (64,064)
Cash flows from investing activities:
Additions to property, plant and
equipment (159,625) (164,611)
Additions to intangible assets (173) (173)
Acquisition of business, net of cash
acquired -- (2,392)
Acquisition of equity method
investments and non-marketable
securities -- (1,385)
Proceeds from sale of property, plant
and equipment 13,875 206
--------- ---------
Net cash used in investing activities (145,923) (168,355)
Cash flows from financing activities:
Payments on debt (181,242) (199,196)
Proceeds from debt 278,141 258,490
Payments on supply chain financing
program (163,869) (32,141)
Proceeds from supply chain financing
program 164,631 110,217
Proceeds from convertible notes
payable 22,000 --
Proceeds from convertible notes
payable - related party 50,000 --
Payment of debt issuance costs (3,329) (3,158)
Payment of convertible notes payable
issuance costs (511) --
Net proceeds from (repayments of)
repurchase agreements (7,706) (6,268)
Proceeds from exercise of stock
options 12 848
Proceeds from exercise of Public
Warrants -- 2,632
Proceeds from issuance of common
stock 635 118,767
Payment of equity issuance costs (10) (1,000)
Payment for purchase of
non-controlling interest -- (2,000)
Payment for taxes for net share
settlement of equity awards (2,122) (2,977)
--------- ---------
Net cash provided by financing
activities 156,630 244,214
Effect of exchange rate changes on
cash 260 $(360.AU)$
--------- ---------
Net (decrease) increase in cash and
cash equivalents and restricted cash (2,276) 11,435
Cash and cash equivalents and
restricted cash at beginning of
period 37,840 26,405
--------- ---------
Cash and cash equivalents and
restricted cash at end of period $ 35,564 $ 37,840
========= =========
Westrock Coffee Company
Summary of Segment Results
(Unaudited)
Three Months Ended Year Ended December
December 31, 31,
------------------ --------------------
(Thousands) 2024 2023 2024 2023
-------- -------- -------- ----------
Beverage
Solutions
Net sales $174,061 $175,119 $659,383 $722,865
Segment
Adjusted
EBITDA(1) 17,842 11,659 53,639 41,624
Sustainable
Sourcing &
Traceability
Net sales(2) $ 54,916 $ 39,847 $191,343 $141,849
Segment
Adjusted
EBITDA(1) 3,130 2,064 6,366 3,457
________________________
(1 - Segment Adjusted EBITDA is a segment performance measure, which is required by U.S. GAAP to be disclosed in accordance with FASB Accounting Standards Codification 280, Segment Reporting. Segment Adjusted EBITDA is defined consistently with Consolidated Adjusted EBITDA, except that it excludes scale-up costs related to our Conway Facility. Refer to the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for additional information regarding our segments and a reconciliation of Segment Adjusted EBITDA to loss before income taxes and equity in earnings from unconsolidated entities.)
(2 - Net of intersegment revenues.)
Westrock Coffee Company
Calculation of Beverage Solutions Credit Agreement
Secured Net Leverage Ratio
(Unaudited)
(Thousands, except leverage ratio) Trailing Twelve-Months
-------------------------------------------- --------------------------
Beverage Solutions Segment Adjusted EBITDA $ 53,639
Permissible credit agreement adjustments(1) 9,126
--- -----------------
Trailing Twelve-Months Credit Agreement
Adjusted EBITDA $ 62,765
End of period:
Term loan facility $ 155,313
Delayed draw term loan facility 48,125
Revolving credit facility 112,500
Letters of credit outstanding 2,560
--- -----------------
Secured debt 318,498
Beverage Solutions unrestricted cash and
cash equivalents (22,917)
--- -----------------
Secured net debt $ 295,581
Beverage Solutions Credit Agreement secured 4.71x
net leverage ratio
________________________
(1 -- Primarily consists of $6.6 million of pro forma run-rate impact of cost savings initiatives enacted during the second quarter of 2024, as permitted by the Credit Agreement.)
The Company is required to maintain compliance with, among other things, a secured net leverage ratio under the terms of its credit agreement (the "Credit Agreement") among the Company, Westrock Beverage Solutions, LLC, as the borrower, Wells Fargo Bank, N.A., as administrative agent, collateral agent, and swingline lender, Wells Fargo Securities, LLC, as sustainability structuring agent, and each issuing bank and lender party thereto. The secured net leverage ratio is calculated as secured net debt divided by Adjusted EBITDA for the trailing twelve-month period, each as defined in the Credit Agreement, and is applicable only to our Beverage Solutions segment.
Management believes that our secured net leverage ratio provides useful information to investors and other users of our financial data regarding the Company's compliance with its material financial covenants. Failure to comply with the covenants in the Credit Agreement or make payments when due could result in an event of default, which, if not cured or waived, could accelerate our repayment obligations under the Credit Agreement and could result in a default and acceleration under other agreements containing cross-default provisions. Under these circumstances, we might not have sufficient funds or other resources to satisfy all of our obligations. As of the date of this press release, the Company is in compliance with its financial covenants.
Westrock Coffee Company
Reconciliation of Net (Loss) Income to Non-GAAP Consolidated
Adjusted EBITDA
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
-------------------- ----------------------
(Thousands) 2024 2023 2024 2023
----------------- --------- --------- --------- -----------
Net loss $(24,607) $(20,051) $(80,298) $(34,567)
Interest expense 11,935 7,941 33,856 29,157
Income tax
expense
(benefit) 2,474 (3,027) 3,728 (6,358)
Depreciation and
amortization 11,549 8,166 34,745 26,584
------- ------- ------- -------
EBITDA 1,351 (6,971) (7,969) 14,816
Transaction,
restructuring
and integration
expense 3,896 1,875 13,797 14,557
Change in fair
value of
warrant
liabilities 119 8,626 (7,015) (10,207)
Management and
consulting fees
(S&D Coffee,
Inc.
acquisition) -- -- -- 556
Equity-based
compensation 3,100 2,411 11,608 8,708
Impairment
charges 3,690 -- 5,686 --
Conway extract
and
ready-to-drink
facility
pre-production
costs 5,429 5,083 35,544 11,698
Mark-to-market
adjustments (1,930) 941 (4,622) (104)
(Gain) loss on
disposal of
property, plant
and equipment (2,687) 8 (1,722) 1,153
Other 366 1,750 1,873 3,904
------- ------- ------- -------
Consolidated
Adjusted EBITDA $ 13,334 $ 13,723 $ 47,180 $ 45,081
======= ======= ======= =======
Non-GAAP Financial Measures
We refer to EBITDA and Consolidated Adjusted EBITDA in our analysis of our results of operations, which are not required by, or presented in accordance with, accounting principles generally accepted in the United States ("GAAP"). While we believe that net (loss) income, as defined by GAAP, is the most appropriate earnings measure, we also believe that EBITDA and Consolidated Adjusted EBITDA are important non-GAAP supplemental measures of operating performance as they contribute to a meaningful evaluation of the Company's future operating performance and comparisons to the Company's past operating performance. The Company believes that providing these non-GAAP financial measures to investors helps investors evaluate the Company's operating performance, profitability and business trends in a way that is consistent with how management evaluates such performance.
We define "EBITDA" as net (loss) income, as defined by GAAP, before interest expense, provision for income taxes and depreciation and amortization. We define "Consolidated Adjusted EBITDA" as EBITDA before equity-based compensation expense and the impact, which may be recurring in nature, of transaction, restructuring and integration related costs, including management services and consulting agreements entered into in connection with the acquisition of S&D Coffee, Inc., impairment charges, changes in the fair value of warrant liabilities, non-cash mark-to-market adjustments, certain non-capitalizable costs necessary to place the Conway extract and ready-to-drink facility into commercial production, the write off of unamortized deferred financing costs, costs incurred as a result of the early repayment of debt, gains or losses on dispositions, and other similar or infrequent items (although we may not have had such charges in the periods presented). We believe EBITDA and Consolidated Adjusted EBITDA are important supplemental measures to net (loss) income because they provide additional information to evaluate our operating performance on an unleveraged basis.
Since EBITDA and Consolidated Adjusted EBITDA are not measures calculated in accordance with GAAP, they should be viewed in addition to, and not be considered as alternatives for, net income (loss) determined in accordance with GAAP. Further, our computations of EBITDA and Consolidated Adjusted EBITDA may not be comparable to that reported by other companies that define EBITDA and Consolidated Adjusted EBITDA differently than we do.
(END) Dow Jones Newswires
March 11, 2025 16:05 ET (20:05 GMT)
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