Top-News
Mittwoch,
30.03.2022 16:15
von
PR Newswire
| Aufrufe: 147
Eastside Distilling Reports Fourth Quarter 2021 Financial Results
pixabay.com
PR Newswire
PORTLAND, Ore., March 30, 2022
Company to Host Conference Call at 5:00pm ET Today
PORTLAND, Ore., March 30, 2022 /PRNewswire/ -- Eastside Distilling, Inc. (NASDAQ: EAST) ("Eastside" or the "Company"), a consumer-focused beverage company that builds craft inspired experiential brands and high-quality artisan products around premium spirits and ready-to-drink "RTD" craft cocktails, reported fourth quarter and year end 2021 financial results for the period ended December 31, 2021.
Year End 2021 Highlights:
- Raised $4.0 million of cash during the quarter and $3.5 million subsequent to year-end; the proceeds will primarily be used to fund the 3-year strategic growth initiatives
- Improved spirits gross profit over 50% for the year despite challenging business environment
- Significant reduction in operating costs and improved EBITDA performance year over year
- Reduced $13 million of debt and increased working capital by $22 million year over year
"2021 was a difficult year for Eastside. Our businesses were impacted by the pandemic and supply chain challenges, yet we exited the year with a stronger balance sheet," said Geoffrey Gwin, Eastside's CEO. "Despite these challenges, we made substantial investments in 2021 to drive growth in 2022."
Financial Results
Gross sales for the year ending December 31, 2021 decreased to $12.9 million from $14.8 million for the year ending December 31, 2020 primarily driven by a decrease in mobile canning revenue. During 2021, craft brewers have begun to shift sales back to on-premise locations that utilize higher margin kegs. Increased competition in aluminum canning and higher supply chain costs impacted the Company's ability to achieve its sales and margins targets in its Craft C+B business.
The Company's spirits division reported lower sales from the prior year due to Azuñia supply chain constraints and a lack of attention from distribution partners resulting in a slower than planned expansion of distribution outside Oregon. In addition, the Company reduced deep discounting, which resulted in lost chain account placements in California and other markets.
Gross profit for the year ending December 31, 2021 decreased to $2.9 million from $3.6 million for the year ending December 31, 2020. Gross margin decreased to 23% for the year ending December 31, 2021 from 26% for the year ending December 31, 2020 primarily due to an improvement in Spirts margins, offset by lower margins for Craft C+B. Spirits margins have improved despite supply chain challenges due to a fourth quarter price increase, focus on higher margin brands and lower production related expenses.
The Company continued to make improvements in lowering operating expenses, which declined for the year ending December 31, 2021 to $9.8 million from $11.8 million for the year ending December 31, 2020. This reduction was due to lower compensation and marketing spend, as well as lower non-cash expenses including depreciation and amortization.
Net loss including discontinued operations for the year ending December 31, 2021 was $(2.2) million and for the year ending December 31, 2020 it was $(9.9) million. The Company accounted for the Redneck Riviera License Termination and closing of its retail tasting room as part of discontinued operations in its 2021 Form 10-K filing. The Company reported adjusted EBITDA of $(4.2) million for the year ending December 31, 2021 and $(5.3) million for the year ending December 31, 2020. (See description of adjusted EBIDTA in "Use of Non-GAAP Measures" below.)
During the fourth quarter, the Company delivered 8,388 cases of spirits, excluding Redneck Riviera. Of that total, Portland Potato Vodka represented over 4,700 cases as the brand did grow distribution outside of Oregon. The Company shipped 2,032 and 1,299 cases of Azuñia and Burnside, respectively. The Company took strategic price increases in the fourth quarter to offset higher cost of goods, which had an impact on sales. The Eastside brand launch was impacted by lack of brand awareness and did not offset legacy brand volume. The following table details cases delivered during the three months and years ending December 31, 2021 and 2020:
| 9L Cases | Q4 2021 | Q4 2020 | Change | % | FY 2021 | FY 2020 | Change | % |
| Azuñia | 2,032 | 2,553 | (520) | -20% | 11,491 | 11,799 | (308) | -3% |
| Burnside | 1,299 | 1,171 | 128 | 11% | 4,615 | 4,956 | (341) | -7% |
| Hue-Hue | 109 | 119 | (10) | -9% | 368 | 540 | (172) | -32% |
| PPV | 4,721 | 5,070 | (349) | -7% | 19,094 | 19,541 | (447) | -2% |
| Eastside Brands | 203 | - | N/A | N/A | 345 | - | N/A | N/A |
| Legacy Brands | 24 | 267 | (243) | -91% | 386 | 1,509 | (1,123) | -74% |
| | 8,388 | 9,180 | (792) | -9% | 36,298 | 38,345 | (2,047) | -5% |
The Company ended the quarter with $3.9 million in borrowings under its Live Oak and FIB credit facilities and reported cash of $2.8 million. The Company has continued to improve its cash position and has reduced debt while making growth investments. During the fourth quarter of 2021, the Company received $2.5 million in net proceeds from the sale of 2.5 million shares of Series B Convertible Preferred Stock. In addition, the Company sold 579,398 shares of common stock for net proceeds of $1.6 million in at-the-market public placements.
Subsequent to quarter-end, the Company sold 798 barrels of 95% rye whiskey ranging in age from three-year-old to eight-year-old for gross proceeds of $1.5 million and thereby reducing its Live Oak debt to $1.9 million. In addition, the Company entered into a loan of $2.0 million plus an additional, conditional $1.0 million to expand the availability of capital for continued growth investments in working capital and to further its three-year strategic plan.
Expansion of Board of Directors
The Board of Directors appointed Joseph Giansante and Geoffrey Gwin as directors, effective March 28, 2022.
The Company will give further updates on its earnings conference call.
Use of Non-GAAP Measures
Eastside Distilling's management evaluates and makes operating decisions using various financial metrics. In addition to the Company's GAAP results, management also considers the non-GAAP measure of adjusted EBITDA as a supplement to GAAP results. Management believes this non-GAAP measure provides useful information about the Company's operating results and assists investors in comparing the Company's performance across reporting periods on a consistent basis by excluding items that it does not believe are indicative of its core operating performance.
The Company defines adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, stock-based compensation, and other one-time items. The table below provides a reconciliation of this non-GAAP financial measure with the most directly comparable GAAP financial measure.
Fourth Quarter 2021 Conference Call Details
Date and Time: Wednesday, March 30, 2022 at 5:00pm ET
Call-in Information: Interested parties can access the conference call by dialing (844) 889-4332 or (412) 717-9595.
Live Webcast Information: Interested parties can access the conference call via a live Internet webcast, which is available in the Conference Calls section of the Company's website at https://www.eastsidedistilling.com/conference-calls.
Replay: A teleconference replay of the call will be available for three days at (877) 344-7529 or (412) 317-0088, confirmation #1678739. A webcast replay will be available in the Conference Calls section of the Company's website at https://www.eastsidedistilling.com/conference-calls for 90 days.
About Eastside Distilling
Eastside Distilling, Inc. (NASDAQ: EAST) has been producing high-quality, award-winning craft spirits in Portland, Oregon, since 2008. The Company is distinguished by its highly decorated product lineup that includes Azuñia Tequilas®, Burnside Whiskeys®, Hue-Hue Coffee Rum®, and Portland Potato Vodkas®. All Eastside spirits are crafted from natural ingredients for quality and taste. Eastside's Craft Canning + Bottling subsidiary is one of the Northwest's leading independent spirit bottlers and ready-to-drink canners.
Important Cautions Regarding Forward-Looking Statements
Certain matters discussed in this press release may be forward-looking statements that reflect our expectations or anticipations rather than historical fact. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions, general competitive factors, the impact of COVID-19 and related business disruption, the Company's ongoing financing requirements and ability to achieve financing, acceptance of the Company's products in the market, the Company's success in obtaining new customers, the Company's ability to execute its business model and strategic plans, and other risks and related information described from time to time in the Company's filings with the Securities and Exchange Commission ("SEC"). A detailed discussion of the most significant risks can be found in the "Risk Factors" section of the Company's Annual Report on Form 10-K. The Company assumes no obligation to update the cautionary information in this press release.
Financial Summary Tables
The following financial information should be read in conjunction with the audited financial statements and accompanying notes filed by the Company with the Securities and Exchange Commission on Form 10-K for the period ended December 31, 2021, which can be viewed at www.sec.gov and in the investor relations section of the Company's website at www.eastsidedistilling.com/investors.
| Eastside Distilling, Inc. and Subsidiaries | ||
| Consolidated Balance Sheets | ||
| December 31, 2021 and 2020 | ||
| Dollars in thousands, except share and per share Werbung Mehr Nachrichten zur EASTERN SEC & PRO Aktie kostenlos abonnieren
E-Mail-Adresse
Bitte überprüfe deine die E-Mail-Adresse.
Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1  Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News |
