- Generated $11.9 million in cash from operations in the
quarter
- Granted additional time to regain compliance with Nasdaq
minimum bid price listing requirement
Vintage Wine Estates, Inc. (Nasdaq: VWE and VWEWW) (“VWE” or the
“Company”), one of the top wine producers in the U.S., today
reported its financial results for the three and six months ended
December 31, 2023 ("second quarter fiscal 2024").
Seth Kaufman, President and CEO, commented, “We are intensely
focused on our priorities to aggressively execute our turnaround
plan as we transform into a nimble, omnichannel wine company that
offers a unique portfolio of the highest quality Super Premium+
products in the U.S. Cash generation in the second quarter
validates our efforts to monetize inventory and better manage
working capital. We have accelerated our efforts to preserve cash
through restructuring and have taken measurable steps towards
streamlining the business to a competitively advantaged, defensible
core portfolio. We are actively working to sell assets to reduce
debt and continue to optimize operations to further improve cash
generation.”
Mr. Kaufman went on to say, “I am encouraged with the progress
we are making with our asset sales process given the quantity and
quality of our discussions with prospective buyers. Our concerted
effort has resulted in numerous attractive indications of interest,
bids and a non-binding letter of intent across stand-alone DTC
operations, certain production services businesses, and other
non-core assets. The sale of these assets will provide cash to
reduce debt and we believe will simultaneously help us to
substantially reduce costs which have been elevated by these less
profitable businesses. We expect the simplification of our
operations will also enable us to better deploy human and financial
resources to create an omnichannel business that leverages our
market access across wholesale partners, tasting rooms, wine clubs
and ecommerce in order to acquire, engage, retain, and delight
consumers. We expect the restructured foundation of our enterprise
that we are working toward will result in a meaningfully smaller
revenue base that can ultimately support faster growth while
delivering profitability more in line with best-in-class branded
beverage alcohol businesses.”
Second Quarter Fiscal 2024 Financial Results Review
(compared with restated prior-year period unless otherwise
noted)
Net revenue was $68.0 million, down $10.4 million across all
business segments. Approximately 58%, or $7.0 million, of the
decline was related to the impact of simplification and
reallocation of resources including $3.6 million lower in bulk
whiskey sales. Other factors impacting revenue were customer
program timing and softer end market demand. Cost of goods sold was
$83.0 million, which included a $32.3 million provision for
inventory comprised of reducing the value of non-core products and
aged inventory as well as bulk wine inventory related to the
company’s narrowed brand focus.
SG&A, which excludes amortization expense, decreased $6.9
million to $25.3 million. Lower SG&A reflects lower stock-based
compensation expense, reduced marketing expenses on non-core
product lines, improved freight management and tighter cost
controls. Loss from operations in the quarter was $40.7
million.
Interest expense was $6.1 million, an increase of $0.5 million,
or 8.3%, on higher interest rates.
Net loss attributable to VWE common stockholders was $49.4
million, compared with $129.1 million in the prior-year period. On
a per diluted share basis, net loss attributable to VWE common
stockholders was $(0.83) compared with net loss of $(2.19) per
diluted share in the prior-year period.
Second quarter fiscal 2024 adjusted EBITDA1 was $(28.8) million
compared with adjusted EBITDA of $5.0 million in the prior-year
period.
_____________________________________ 1 As referenced here and
throughout the release, adjusted EBITDA is a non-GAAP measure.
Please see related disclosures regarding the use of non-GAAP
measures in this news release.
Balance Sheet and Cash Generation
Cash from operations in the second quarter was $11.9 million
reflecting inventory reductions, aggressive efforts to collect
receivables and carefully managing payables. Inventories were down
$44.1 million, or 22%, from September 30, 2023. The decline
reflects the $32.3 million reserve as well as monetization of
non-core and aged inventory. Property, plant and equipment was
reduced by $27.5 million primarily as a result of $26.4 million in
net assets being categorized as held for sale at December 31,
2023.
As of December 31, 2023, the Company had $21.4 million in cash
and $305.6 million of current debt outstanding. Total debt
increased $2.3 million from $303.3 million at June 30, 2023 but
decreased $3.9 million from $309.5 million at September 30, 2023.
The Company announced on March 5, 2024 that its lender group has
accepted its plans to reorganize and dispose of certain assets and
has provided an agreement to forbear exercising their rights and
remedies under the Second Amended and Restated Loan and Security
Agreement as amended on October 12, 2023 (the “Second A&R Loan
and Security Agreement”), in respect of, or arising out of, certain
defaults under the Second A&R Loan and Security Agreement until
the earlier of March 31, 2024 or in the event of any other event of
default other than those designated in the agreement. As previously
disclosed, the Second A&R Loan and Security Agreement currently
has principal amounts outstanding of $324.3 million at February 29,
2024. The forbearance agreement provides flexibility for the
Company to continue executing the previously announced
restructuring and transformation while working with its lenders on
an amended credit agreement. If the Company does not meet the terms
of the forbearance agreement or if the events of default continue
past the term of the forbearance agreement, and if the agent and
lenders accelerate the maturity of the debt thereunder, the Company
does not have sufficient cash to repay the outstanding debt.
At December 31, 2023, approximately 40% of debt was hedged at a
blended rate of 2.3% until 2025.
180-day extension to continue trading on Nasdaq and regain
compliance
The Company’s application for transfer to the Capital Markets
was approved by Nasdaq. VWE received confirmation today that it has
been granted an additional 180-day extension for the Company to
regain compliance with the minimum bid price requirement under
Nasdaq Listing Rule 5450(a)(1), which requires the bid price of VWE
Common Shares to close at or above US$1.00 per share for a minimum
of 10 consecutive business days. The Company now has until
September 9, 2024 to regain compliance. The Company filed a Form
8-K on September 19, 2023 regarding its receipt of notice from The
Nasdaq Stock Market LLC (“Nasdaq”) stating that the Company was not
in compliance with the minimum bid price requirement.
About Vintage Wine Estates, Inc. Vintage Wine Estates
brings to market a unique portfolio of cider and Super Premium+
wines at $15+ per bottle. The Company focuses on building enduring
and differentiated brands that resonate with consumers to generate
increasing organic demand in the U.S. It leverages brand-affiliated
wine clubs, tasting rooms, and owned ecommerce sites in conjunction
with deep wholesale relationships to offer consumers a holistic,
omnichannel experience. VWE’s ambition is to be one of the fastest
growing players in the branded wine space with best-in-class
profitability and consistent cash generation to create value for
all stakeholders. The Company is doubling down on a culture that is
uniquely consumer-centric and intensely data-driven in service of
over fifteen core wine brands spanning approachably priced
lifestyle labels and high-scoring premium brands.
Non-GAAP Financial Measures In addition to reporting net
income/(loss) and net income/(loss) margin prepared in accordance
with accounting principles generally accepted in the United States
(“GAAP”), VWE uses adjusted EBITDA, adjusted EBITDA margin,
adjusted net income/(loss) and adjusted net income/(loss) per share
to supplement GAAP measures of performance to evaluate the
effectiveness of its business strategies. Beginning for the three
months ended September 30, 2023, Adjusted EBITDA is defined as net
income (loss) attributable to common stockholders before interest,
income taxes, depreciation and amortization, stock-based
compensation expense, casualty losses or gains, impairment losses,
changes in the fair value of derivatives, restructuring related
income or expenses, acquisition and integration costs, and certain
non-cash, nonrecurring, or other items that are included in net
income that VWE does not consider indicative of its ongoing
operating performance. Prior to the three months ended September
30, 2023, we used net income (loss) in our calculation of Adjusted
EBITDA. We believe the use of net income (loss) attributable to
common stockholders in our calculation of Adjusted EBITDA is more
helpful than net income (loss) in evaluating our operating
performance because it excludes amounts attributable to
non-controlling interests. Adjusted EBITDA margin is the ratio of
adjusted EBITDA to net revenue. Presentations of Adjusted EBTDA
EBITDA and Adjusted EBTDA EBITDA margin for prior periods have been
recast to conform to the current period presentation. Adjusted net
income/(loss) is defined as net income/(loss) attributable to
common stockholders as reported adjusted for the impacts of
amortization of intangible assets, acquisition integration costs,
gains or losses on disposition of assets, gain on litigation of
proceeds, COVID impact, and inventory acquisition basis adjustment
and also adjusted for a normalized tax rate. Adjusted net
income/(loss) per share is calculated based on the weighted average
shares outstanding for the period.
Adjusted EBITDA, adjusted EBITDA margin, adjusted net
income/(loss) and adjusted net income/(loss) per share are not
recognized measures of financial performance under GAAP. VWE
believes these non-GAAP measures provide investors with additional
insight into the underlying trends of VWE’s business and assist in
analyzing VWE’s performance across reporting periods on a
consistent basis by excluding items that VWE does not believe are
indicative of its core operating performance, which allows for a
better comparison against historical results and expectations for
future performance. Adjusted EBITDA, adjusted EBITDA margin,
adjusted net income/(loss), and adjusted net income/(loss) per
share have certain limitations as analytical tools, and they should
not be considered in isolation or as a substitute for analysis of
results as reported under U.S. GAAP. These non-GAAP measures, as
presented, may produce results that vary from the most comparable
GAAP measure and may not be comparable with a similarly defined
non-GAAP measure used by other companies.
In evaluating adjusted EBITDA, adjusted EBITDA margin, adjusted
net income/(loss), and adjusted net income/(loss) per share, be
aware that in the future the Company may incur expenses that are
the same as or similar to some of the adjustments in this
presentation. VWE’s presentation of adjusted EBITDA, adjusted
EBITDA margin, adjusted net income/(loss), and adjusted net
income/(loss) per share should not be construed as an implication
that future results will be unaffected by the types of items
excluded from the calculation of these non-GAAP measures.
Key Performance Indicators A key performance indicator
("KPI") is generally defined as a quantifiable measurement or
metric used to gauge performance, specifically to help determine
strategic, financial, and operational achievements, especially
compared to those of similar businesses.
Case volume represents the number of 9-liter equivalent cases of
wine that we sell during a particular period. Case volumes are an
important indicator of what is driving gross margin. This metric
also allows us to develop our supply and production targets for
future periods.
Forward-Looking Statements Some of the statements
contained in this press release are forward-looking statements
within the meaning of applicable securities laws (collectively,
“forward-looking statements”). Forward-looking statements are all
statements other than those of historical fact, and generally may
be identified by the use of words such as “believe,” “intent,”
“may,” “plan,” “should,” “can,” “expect,” “continue,” “working,”
“will,” or other similar expressions that indicate future events or
trends. These forward-looking statements include, but are not
limited to, statements related to business plans and strategies;
the ability of the company to monetize non-core assets and for such
monetization to generate cash to reduce debt and optimize
operations; the timing and expectations related to the sales
process including the work to sell stand-along DTC operations,
certain production service businesses, and other non-core assets
including through indications of interests, bids, and the
non-binding letter of intent; the ability of the Company to
simplify its business and for such simplification to allow it to
leverage its human and financial resources; the ability of the
Company to restructure its foundation and for such foundation to
support faster growth and deliver profitability; the grant of an
additional compliance period to regain compliance with Nasdaq
listing requirements; the ability of the company to remain in
compliance with the forbearance agreement and cure its events of
default before the term of the forbearance agreement; the ability
of and timing related to VWE entering into an amendment to its
credit agreement with its lenders. These statements are based on
various assumptions, whether or not identified in this news
release, and on the current expectations of VWE’s management. These
forward-looking statements are not intended to serve as, and should
not be relied on by any investor as, a guarantee of actual
performance or an assurance or definitive statement of fact or
probability. Actual events and circumstances are difficult or
impossible to predict and may differ materially from those
contained in or implied by such forward-looking statements. These
forward-looking statements are subject to a number of risks and
uncertainties, many of which are beyond the control of VWE. Factors
that could cause actual results to differ materially from the
results expressed or implied by such forward-looking statements
include, among others: the Company’s ability to continue as a going
concern; the Company’s ability to deleverage within the anticipated
time frame or at all and its ability to regain and remain in
compliance with the covenants in its credit agreement, or satisfy
its other contractual arrangements, including the forbearance
agreement with its lenders; the ability of the Company to regain
compliance with Nasdaq continued listing requirements; the
Company’s limited experience operating as a public company; the
time and expense associated with any necessary remediation of
control deficiencies; the ability of the Company to effectively
execute its strategic plans to reimagine the Company; the ability
of the Company to retain key personnel; the effect of economic
conditions on the industries and markets in which VWE operates,
including financial market conditions, rising inflation,
fluctuations in prices, interest rates and market demand; risks
relating to the uncertainty of projected financial information; the
effects of competition on VWE’s future business; risks related to
the organic and inorganic growth of VWE’s business and the timing
of expected business milestones; the potential adverse effects of
pandemics, or other outbreaks that could disrupt VWE’s business and
the U.S. economy; declines or unanticipated changes in consumer
demand for VWE’s products; VWE’s ability to adequately source
grapes and other raw materials and any increase in the cost of such
materials; the impact of environmental catastrophe, natural
disasters, disease, pests, weather conditions and inadequate water
supply on VWE’s business; VWE’s level of insurance against
catastrophic events and losses; VWE’s significant reliance on its
distribution channels, including independent distributors;
potential reputational harm to VWE’s brands from internal and
external sources; possible decreases in VWE’s wine quality ratings;
integration risks associated with recent acquisitions; possible
litigation relating to misuse or abuse of alcohol; changes in
applicable laws and regulations and the significant expense to VWE
of operating in a highly regulated industry; VWE’s ability to
maintain necessary licenses; VWE’s ability to protect its
trademarks and other intellectual property rights; risks associated
with the Company’s information technology and ability to maintain
and protect personal information; VWE’s ability to make payments on
its indebtedness; and those factors discussed in the Company’s most
recent Annual Report on Form 10-K and in subsequent Quarterly
Reports on Form 10-Q or other reports filed with the Securities and
Exchange Commission. There may be additional risks including other
adjustments that VWE does not presently know or that VWE currently
believes are immaterial that could also cause actual results to
differ from those expressed in or implied by these forward-looking
statements. In addition, forward-looking statements reflect VWE’s
expectations, plans or forecasts of future events and views as of
the date and time of this news release. VWE undertakes no
obligation to update or revise any forward-looking statements
contained herein, except as may be required by law. Accordingly,
undue reliance should not be placed upon these forward-looking
statements.
Financial Tables Follow.
Vintage Wine Estates,
Inc.
Condensed Consolidated Balance
Sheets
(in thousands)
December 31, 2023
June 30, 2023
Assets
(Unaudited)
Current assets:
Cash and cash equivalents
$
21,412
$
18,233
Restricted cash
200
-
Accounts receivable, net
22,970
24,561
Other receivables
443
507
Inventories
155,255
201,363
Assets held for sale, net
35,878
511
Current interest rate swap asset
4,048
4,669
Prepaid expenses
11,831
14,895
Total current assets
252,037
264,739
Property, plant, and equipment, net
187,768
215,967
Operating lease right-of-use assets
28,783
32,945
Finance lease right-of-use-assets
516
630
Intangible assets, net
28,117
38,994
Interest rate swap asset
2,092
4,317
Other assets
3,195
3,562
Total assets
$
502,508
$
561,154
Liabilities, redeemable noncontrolling
interest, and stockholders' equity
Current liabilities:
Line of credit
$
121,731
$
115,444
Accounts payable
27,425
20,413
Accrued liabilities and other payables
17,936
19,668
Accrued employee compensation
8,956
6,618
Current operating lease liabilities
6,194
6,243
Current finance lease liabilities
259
304
Current maturities of long-term debt
183,872
14,449
Total current liabilities
366,373
183,139
Other long-term liabilities
351
4,196
Long-term debt, less current
maturities
-
173,409
Long-term operating lease liabilities
24,186
26,792
Long-term finance lease liabilities
265
334
Deferred tax liability
465
506
Total liabilities
391,640
388,376
Commitments and contingencies (Note 6)
Redeemable noncontrolling interest
252
262
Stockholders' equity:
Preferred stock, no par value, 2,000,000
shares authorized, and none issued and outstanding at December 31,
2023 and June 30, 2023.
-
-
Common stock, no par value, 200,000,000
shares authorized, 62,761,784 issued and 59,889,890 outstanding at
December 31, 2023 and 62,234,028 issued and 59,362,134 outstanding
at June 30, 2023.
-
-
Additional paid-in capital
384,260
381,689
Treasury stock, at cost: 2,871,894 shares
held at December 31, 2023 and June 30, 2023.
(26,034
)
(26,034
)
Accumulated deficit
(246,717
)
(182,308
)
Total Vintage Wine Estates, Inc.
stockholders' equity
111,509
173,347
Noncontrolling interests
(893
)
(831
)
Total stockholders' equity
110,616
172,516
Total liabilities, redeemable
noncontrolling interest, and stockholders' equity
$
502,508
$
561,154
Vintage Wine Estates,
Inc.
Condensed Consolidated
Statements of Operations
(in thousands, except per share
data)
Three Months Ended December
31,
Six Months Ended December
31,
2023
2022
2023
2022
Net revenue
Wine, spirits and cider
$
46,838
$
53,706
$
99,501
$
105,976
Nonwine
21,151
24,695
41,762
50,505
Total revenue
67,989
78,401
141,263
156,481
Cost of revenue
Wine, spirits and cider
67,393
36,655
102,328
69,676
Nonwine
15,579
16,000
29,218
31,529
Total cost of revenue
82,972
52,655
131,546
101,205
Gross (loss) profit
(14,983
)
25,746
9,717
55,276
Selling, general, and administrative
expenses
25,262
32,139
54,011
63,588
Amortization expense
1,888
1,805
3,524
3,616
Goodwill impairment losses
-
125,285
-
125,285
Intangible impairment losses
4,742
12,643
4,742
12,643
Gain on remeasurement of contingent
liability
(6,179
)
(3,474
)
(5,208
)
(3,289
)
Restructuring (benefit) expense
(158
)
-
3,844
-
Loss (gain) on insurance and
litigation
148
-
148
(530
)
(Gain) loss on sale of assets
(2
)
4,430
(799
)
4,430
Loss from operations
(40,684
)
(147,082
)
(50,545
)
(150,467
)
Other income (expense)
Interest expense
(6,119
)
(5,650
)
(11,044
)
(9,031
)
Net (loss) gain on interest rate swap
agreements
(2,726
)
(839
)
(2,821
)
8,488
Loss on extinguishment of debt
-
(479
)
-
(479
)
Other, net
(53
)
216
(26
)
487
Total other (expense) income,
net
(8,898
)
(6,752
)
(13,891
)
(535
)
Loss before provision for income taxes
(49,582
)
(153,834
)
(64,436
)
(151,002
)
Income tax (benefit) provision
(199
)
(23,652
)
45
(22,178
)
Net loss
(49,383
)
(130,182
)
(64,481
)
(128,824
)
Net loss attributable to the
noncontrolling interests
(32
)
(1,047
)
(72
)
(1,221
)
Net loss attributable to common
stockholders
$
(49,351
)
$
(129,135
)
$
(64,409
)
$
(127,603
)
Net earnings per share allocable to
common stockholders
Basic
$
(0.83
)
$
(2.19
)
$
(1.08
)
$
(2.17
)
Diluted
$
(0.83
)
$
(2.19
)
$
(1.08
)
$
(2.17
)
Weighted average shares used in the
calculation of earnings per share allocable to common
stockholders
Basic
59,721,395
58,941,899
59,567,221
58,880,529
Diluted
59,721,395
58,941,899
59,567,221
58,880,529
Vintage Wine Estates,
Inc.
Condensed Consolidated
Statements of Cash Flows
(in thousands)
Six Months Ended December
31,
2023
2022
Cash flows from operating
activities
Net loss
$
(64,481
)
$
(128,824
)
Adjustments to reconcile net loss to net
cash from operating activities:
Depreciation expense
8,126
7,856
Non-cash operating lease expense
2,799
2,638
Amortization expense
3,680
3,742
Amortization of deferred loan fees and
line of credit fees
862
220
Goodwill and intangible assets impairment
losses
4,742
137,928
Stock-based compensation expense
2,546
6,690
(Benefit) provision for credit losses
(84
)
360
Provision for inventory reserves
32,474
497
Deferred income tax provision
(benefit)
(41
)
(22,212
)
(Gain) loss on disposition of assets
(799
)
4,430
Loss on extinguishment of debt
-
479
Remeasurement of contingent consideration
liabilities
(5,208
)
(3,289
)
Net loss (gain) on interest rate swap
agreements
2,821
(8,488
)
Change in operating assets and
liabilities:
Accounts receivable
1,353
1,485
Other receivables
64
3,066
Inventories
7,484
(4,837
)
Prepaid expenses and other current
assets
3,064
(12,186
)
Other assets
(421
)
619
Accounts payable
5,386
12,001
Accrued liabilities and other payables
4,329
2,081
Net change in lease assets and
liabilities
(1,291
)
(3,206
)
Net cash provided by operating
activities
7,405
1,050
Cash flows from investing activities
Proceeds from sale of assets
1,366
8,692
Purchases of property, plant and
equipment
(6,348
)
(8,312
)
Net cash (used in) provided by investing
activities
(4,982
)
380
Cash flows from financing activities
Principal payments on line of credit
(10,791
)
(120,820
)
Proceeds from line of credit
17,078
101,903
Payment of deferred financing costs
-
(1,975
)
Change in outstanding checks in excess of
cash
1,685
(467
)
Loan fees
(564
)
(377
)
Principal payments on long-term debt
(3,986
)
(58,497
)
Proceeds from long-term debt
-
72,619
Principal payments on finance leases
(156
)
(133
)
Payments of minimum tax withholdings on
stock-based payment awards
(103
)
(976
)
Distributions to noncontrolling
interest
-
(66
)
Repurchase of public warrants
-
(172
)
Payments on acquisition earnout
(2,207
)
(334
)
Net cash provided by (used in) financing
activities
956
(9,295
)
Net change in cash, cash equivalents and
restricted cash
3,379
(7,865
)
Cash, cash equivalents and restricted
cash, beginning of period
18,233
49,558
Cash and cash equivalents, and
restricted cash, end of period
$
21,612
$
41,693
Six Months Ended December
31,
2023
2022
Supplemental cash flow
information
Noncash investing and financing
activities:
Increase in operating lease assets and
liabilities upon adoption of ASC 842
$
-
$
37,759
Increase in finance lease assets and
liabilities upon adoption of ASC 842
$
-
$
67
Operating lease assets obtained in
exchange for operating lease liabilities
$
118
$
-
Finance lease assets obtained in exchange
for finance lease obligations
$
53
$
-
Issuance of shares in lieu of payment to
consultant
$
129
$
-
Accrued interest on term loan and line-of
credit refinanced to principal
$
-
$
1,726
Line of credit refinanced as term debt
$
-
$
9,646
Term debt refinanced with line of credit
proceeds
$
-
$
3,823
Financing costs deducted from long-term
debt proceeds
$
-
$
474
Financing costs deducted from line of
credit proceeds
$
-
$
532
Vintage Wine Estates,
Inc.
Segment Data
(in thousands)
Segment Revenue
Three Months Ended December
31,
Net Revenue
2023
2022
$ Change
% Change
Direct-to-Consumer
$
23,651
$
26,472
$
(2,821
)
(10.7
%)
Wholesale
17,786
23,083
(5,297
)
(22.9
%)
Business to Business
26,552
28,814
(2,262
)
(7.9
%)
Other/ Non-Allocable
-
32
(32
)
(100.0
%)
Total
$
67,989
$
78,401
$
(10,412
)
(13.3
%)
Six Months Ended December
31,
Net Revenue
2023
2022
$ Change
% Change
Direct-to-Consumer
$
41,633
$
46,464
$
(4,831
)
(10.4
%)
Wholesale
36,930
47,070
(10,140
)
(21.5
%)
Business to Business
62,700
62,994
(294
)
(0.5
%)
Other/ Non-Allocable
-
(47
)
47
(100.0
%)
Total
$
141,263
$
156,481
$
(15,218
)
(9.7
%)
Segment Operating
Income
Three Months Ended December
31,
Operating Income
2023
2022
Dollar Change
Percent Change
Direct-to-Consumer
$
(8,400
)
$
1,424
$
(9,824
)
(689.9
%)
Wholesale
(19,729
)
(126,896
)
107,167
n/m
Business to Business
(1,305
)
(1,167
)
(138
)
n/m
Other/ Non-Allocable
(11,250
)
(20,443
)
9,193
n/m
Total
$
(40,684
)
$
(147,082
)
$
106,398
(72.3
%)
n/m - Not meaningful
Six Months Ended December
31,
Operating Income
2023
2022
Dollar Change
Percent Change
Direct-to-Consumer
$
(6,186
)
$
3,393
$
(9,579
)
(282.3
%)
Wholesale
(20,764
)
(124,608
)
103,844
n/m
Business to Business
3,335
9,366
(6,031
)
n/m
Other/ Non-Allocable
(26,930
)
(38,618
)
11,688
n/m
Total
$
(50,545
)
$
(150,467
)
$
99,922
(66.4
%)
n/m - Not meaningful
Segment Case Volume
Three Months Ended December
31,
(in thousands)
2023
2022
Unit Change
% Change
Direct-to-Consumer
106
125
-19
-15.2
%
Wholesale
357
453
-96
-21.2
%
Total case volume
463
578
-115
-19.9
%
Six Months Ended December
31,
(in thousands)
2023
2022
Unit Change
% Change
Direct-to-Consumer
182
224
-42
-18.8
%
Wholesale
806
992
-186
-18.8
%
Total case volume
988
1,216
-228
-18.8
%
Vintage Wine Estates,
Inc.
Reconciliation of Net Income
Attributable to Common Stockholders to Adjusted EBITDA
(Unaudited, in thousands)
Three Months Ended
Six Months Ended
(in thousands)
December 31, 2023
December 31, 2022
December 31, 2023
December 31, 2022
Net (loss) income attributable to
common stockholders
$
(49,351
)
$
(129,135
)
$
(64,409
)
$
(127,603
)
Goodwill and intangible asset impairment
losses
4,742
137,928
4,742
137,928
Interest expense
6,119
5,650
11,044
9,031
Depreciation Expense
3,995
3,860
8,126
7,856
Restructuring expenses*
(158
)
-
3,844
-
Amortization expense
1,888
1,805
3,524
3,616
Stock-based compensation expense
1,277
3,250
2,546
6,690
Income tax provision
(199
)
(23,652
)
45
(22,178
)
Net loss (gain) on interest rate swap
agreements
2,726
839
2,821
(8,488
)
Loss (gain) on insurance and litigation
proceeds
148
-
148
(530
)
(Gain) loss on disposition of assets
(2
)
4,430
(799
)
4,430
Adjusted EBITDA
$
(28,815
)
$
4,975
$
(28,368
)
$
10,752
Net revenues
$
67,989
$
78,401
$
141,263
$
156,481
Net Income (loss) attributable to
common stockholders margin
n/m
(60.7
)%
n/m
(122.6
)%
Adjusted EBITDA margin
n/m
6.3
%
n/m
6.9
%
n/m - Not meaningful
* Restructuring expenses are primarily
comprised of employee severance and related benefit costs.
Reconciliation of Net Income
Attributable to Common Stockholders to Adjusted Net Income
(Unaudited, in thousands, except
per share data)
Three Months Ended
Six Months Ended
(in thousands)
December 31, 2023
December 31, 2022
December 31, 2023
December 31, 2022
Net (loss) income attributable to
common stockholders
$
(49,351
)
$
(129,135
)
$
(64,409
)
$
(127,603
)
Restructuring expenses*
(158
)
-
3,844
-
Amortization expense
1,888
1,805
3,524
3,616
Net loss (gain) on interest rate swap
agreements
2,726
839
2,821
(8,488
)
Loss (gain) on insurance and litigation
proceeds
148
-
148
(530
)
(Gain) loss on disposition of assets
(2
)
4,430
(799
)
4,430
Adjusted EBITDA
$
(44,749
)
$
(122,061
)
$
(54,871
)
$
(128,575
)
Net (loss) income per share
$
(0.83
)
$
(2.19
)
$
(1.08
)
$
(2.17
)
Non-GAAP net income per share
$
(0.75
)
$
(2.07
)
$
(0.92
)
$
(2.18
)
* Restructuring expenses are primarily
comprised of employee severance and related benefit costs.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240312164494/en/
Deborah K. Pawlowski, Kei Advisors LLC
dpawlowski@keiadvisors.com 716.843.3908
Vintage Wine Estates (NASDAQ:VWE)
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Von Okt 2024 bis Nov 2024
Vintage Wine Estates (NASDAQ:VWE)
Historical Stock Chart
Von Nov 2023 bis Nov 2024
