Press Release: Westrock Coffee Company Reports Fourth Quarter and Full Year 2024 Results and Provides 2025 and 2026 Outlook

Dow Jones
12 Mar

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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