Westrock Coffee Company (Nasdaq: WEST) (“Westrock Coffee” or the
“Company”) today reported financial results for the fourth quarter
and full year ended December 31, 2023 and provides its outlook on
fiscal 2024.
Scott T. Ford, CEO and Co-founder stated, “We
are pleased to announce our fourth quarter, and full year, 2023
financial results. Last year was a significant transition year for
Westrock and we now enter 2024 with a number of critical system
migrations and capital equipment upgrades behind us. The entire
team worked tirelessly to modernize our legacy manufacturing
operations while simultaneously building a new Extract and
Ready-to-Drink plant in Conway, Arkansas which is scheduled to
deliver its first commercial products to customers next month.”
Fourth Quarter Highlights
- Consolidated
net sales were $215.0 million for the fourth quarter of 2023, a
decrease of $12.8 million, or 5.6%, compared to the fourth quarter
of 2022.
- Consolidated
gross profit for the fourth quarter of 2023 was $34.8 million and
included $0.9 million of non-cash mark-to-market losses, compared
to consolidated gross profit of $34.3 million for the fourth
quarter of 2022, which included $2.7 million of non-cash
mark-to-market losses.
- Net loss for
the fourth quarter of 2023 was $20.1 million, compared to a net
loss of $31.9 million for the fourth quarter of 2022. The $20.1
million net loss for the fourth quarter of 2023 included $1.9
million of transaction, restructuring and integration expense, $5.1
million of start-up costs related to our Conway, AR extract and
ready-to-drink facility, and $8.6 million of non-cash expense from
the change in fair value of warrant liabilities. The $31.9 million
net loss for the fourth quarter of 2022 included $4.4 million of
transaction, restructuring and integration expense and $24.5
million of non-cash expense from the change in fair value of
warrant liabilities.
- Adjusted EBITDA
was $13.7 million for the fourth quarter of 2023, a decrease of
$3.7 million, compared to the fourth quarter of 2022.
- Beverage
Solutions segment contributed $175.1 million of net sales and $11.7
million of Adjusted EBITDA for the fourth quarter of 2023, compared
to $192.6 million and $15.2 million, respectively, for the fourth
quarter of 2022.
- SS&T
segment, net of intersegment revenues, contributed $39.8 million of
net sales and $2.1 million of Adjusted EBITDA for the fourth
quarter of 2023, compared to $35.1 million and $2.3 million,
respectively, for the fourth quarter of 2022.
Full Year 2023 Highlights
- Consolidated
net sales were $864.7 million for the year ended December 31, 2023,
a decrease of $3.2 million, or 0.4% compared to the year ended
December 31, 2022.
- Consolidated
gross profit was $139.9 million for the year ended December 31,
2023, and included $0.1 million of non-cash mark-to-market gains,
compared to $152.8 million for the year ended December 31, 2022,
which included $3.5 million of non-cash mark-to-market losses.
- Net loss was
$34.6 million for the year ended December 31, 2023, compared to a
net loss of $55.5 million for the year ended December 31, 2022. The
$34.6 million net loss for the year ended December 31, 2023
included $14.6 million of transaction, restructuring and
integration expense and $11.7 million of start-up costs related to
our Conway, AR extract and ready-to-drink facility, partially
offset by a $10.2 million non-cash gain from the change in fair
value of warrant liabilities. The $55.5 million net loss for the
year ended December 31, 2022 included $13.2 million of transaction,
restructuring and integration expense, $29.7 million of non-cash
expense from the change in fair value of warrant liabilities, and
$5.9 million of interest expense related to the early
extinguishment of debt.
- Adjusted EBITDA
was $45.1 million for the year ended December 31, 2023, a decrease
of $15.0 million, or 25%, compared to the year ended December 31,
2022.
- Beverage
Solutions segment contributed $722.9 million of net sales and $41.6
million of Adjusted EBITDA for the year ended December 31, 2023,
compared to $685.3 million and $54.0 million, respectively, for the
year ended December 31, 2022.
- Sustainable
Sourcing & Traceability (“SS&T”) segment, net of
intersegment revenues, contributed $141.8 million of net sales and
$3.5 million of Adjusted EBITDA for the year ended December 31,
2023, compared to $182.6 million and $6.1 million, respectively, in
the year ended December 31, 2022.
- At December 31,
2023, the Company had approximately $147.2 million of unrestricted
cash and undrawn borrowings under its revolving credit facility,
and the Company’s consolidated leverage ratio was 4.4x based on net
debt to fourth quarter annualized Adjusted EBITDA.
2024 Outlook
As previously disclosed on February 15, 2024,
the Company expects consolidated Adjusted EBITDA to be between $60
million and $80 million in fiscal 2024. The guidance range is
necessarily broad to account for the range of results the Company
may experience as it commences operations at its Extract and RTD
facility in Conway, Arkansas and the commercialization of customers
at that facility. This guidance is an estimate of what the Company
believes is realizable as of the date of this release, and actual
results may vary from this guidance and the variations may be
material. Management will provide additional details regarding the
2024 outlook on its earnings results call to be held today.
The Company is not readily able to provide a
reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net
income 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 of derivatives and the change in fair value of warrant
liabilities, among others.
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 at
https://register.vevent.com/register/BIa80ab8d7d9824bdcb8f729b24cb36937
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 35 origin countries.
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 2024 financial outlook, certain plans,
expectations, goals, projections, and statements about the timing
and benefits of the build-out, and our ability to sell or commit
the capacity prior to commencement of commercial production, of 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,
financial, political, and legal conditions; 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; 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
facility; the loss of significant customers or delays in bringing
their products to market; 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 21, 2023, 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: Westrock Coffee:
PR@westrockcoffee.com
Investor Contact: Westrock Coffee:
IR@westrockcoffee.com
|
Westrock Coffee CompanyConsolidated
Balance Sheets(Unaudited) |
|
(Thousands, except par value) |
|
December 31, 2023 |
|
December 31, 2022 |
ASSETS |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
37,196 |
|
|
$ |
16,838 |
|
Restricted cash |
|
|
644 |
|
|
|
9,567 |
|
Accounts receivable, net of allowance for credit losses of $5,653
and $3,023, respectively |
|
|
99,158 |
|
|
|
101,639 |
|
Inventories |
|
|
149,921 |
|
|
|
145,836 |
|
Derivative assets |
|
|
13,658 |
|
|
|
15,053 |
|
Prepaid expenses and other current assets |
|
|
12,473 |
|
|
|
9,166 |
|
Total current assets |
|
|
313,050 |
|
|
|
298,099 |
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
344,038 |
|
|
|
185,206 |
|
Goodwill |
|
|
116,111 |
|
|
|
113,999 |
|
Intangible assets, net |
|
|
122,945 |
|
|
|
130,886 |
|
Operating lease right-of-use assets |
|
|
13,919 |
|
|
|
11,090 |
|
Other long-term assets |
|
|
7,769 |
|
|
|
6,933 |
|
Total Assets |
|
$ |
917,832 |
|
|
$ |
746,213 |
|
|
|
|
|
|
|
|
LIABILITIES,
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
Current maturities of long-term debt |
|
$ |
9,811 |
|
|
$ |
11,504 |
|
Short-term debt |
|
|
43,694 |
|
|
|
42,905 |
|
Accounts payable |
|
|
69,106 |
|
|
|
116,675 |
|
Supply chain finance program |
|
|
78,076 |
|
|
|
— |
|
Derivative liabilities |
|
|
3,731 |
|
|
|
7,592 |
|
Accrued expenses and other current liabilities |
|
|
33,879 |
|
|
|
37,459 |
|
Total current liabilities |
|
|
238,297 |
|
|
|
216,135 |
|
|
|
|
|
|
|
|
Long-term debt, net |
|
|
223,092 |
|
|
|
162,502 |
|
Deferred income taxes |
|
|
10,847 |
|
|
|
14,355 |
|
Warrant liabilities |
|
|
44,801 |
|
|
|
55,521 |
|
Other long-term liabilities |
|
|
12,839 |
|
|
|
11,035 |
|
Total liabilities |
|
|
529,876 |
|
|
|
459,548 |
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
Series A Convertible Preferred Shares, $0.01 par value, 24,000
shares authorized, 23,512 shares and 23,588 shares issued and
outstanding at December 31, 2023 and December 31, 2022,
respectively, $11.50 liquidation value |
|
|
274,216 |
|
|
|
274,936 |
|
|
|
|
|
|
|
|
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, 88,051
shares and 75,020 shares issued and outstanding at December 31,
2023 and December 31, 2022, respectively |
|
|
880 |
|
|
|
750 |
|
Additional paid-in-capital |
|
|
471,666 |
|
|
|
342,664 |
|
Accumulated deficit |
|
|
(362,624 |
) |
|
|
(328,042 |
) |
Accumulated other comprehensive income (loss) |
|
|
3,818 |
|
|
|
(6,103 |
) |
Total shareholders' equity attributable to Westrock Coffee
Company |
|
|
113,740 |
|
|
|
9,269 |
|
Non-controlling interest |
|
|
— |
|
|
|
2,460 |
|
Total shareholders' equity |
|
|
113,740 |
|
|
|
11,729 |
|
|
|
|
|
|
|
|
Total Liabilities,
Convertible Preferred Shares and Shareholders' Equity |
|
$ |
917,832 |
|
|
$ |
746,213 |
|
|
Westrock Coffee CompanyConsolidated
Statements of Operations(Unaudited) |
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
(Thousands, except per share data) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net sales |
|
$ |
214,966 |
|
|
$ |
227,723 |
|
|
$ |
864,714 |
|
|
$ |
867,872 |
|
Costs of sales |
|
|
180,149 |
|
|
|
193,426 |
|
|
|
724,856 |
|
|
|
715,107 |
|
Gross profit |
|
|
34,817 |
|
|
|
34,297 |
|
|
|
139,858 |
|
|
|
152,765 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expense |
|
|
39,302 |
|
|
|
28,653 |
|
|
|
144,577 |
|
|
|
129,985 |
|
Transaction, restructuring and integration expense |
|
|
1,875 |
|
|
|
4,423 |
|
|
|
14,557 |
|
|
|
13,169 |
|
Loss on disposal of property, plant and equipment |
|
|
8 |
|
|
|
187 |
|
|
|
1,153 |
|
|
|
935 |
|
Total operating expenses |
|
|
41,185 |
|
|
|
33,263 |
|
|
|
160,287 |
|
|
|
144,089 |
|
Income (loss) from
operations |
|
|
(6,368 |
) |
|
|
1,034 |
|
|
|
(20,429 |
) |
|
|
8,676 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
7,941 |
|
|
|
5,232 |
|
|
|
29,157 |
|
|
|
35,497 |
|
Change in fair value of warrant liabilities |
|
|
8,626 |
|
|
|
24,460 |
|
|
|
(10,207 |
) |
|
|
29,675 |
|
Other, net |
|
|
123 |
|
|
|
(361 |
) |
|
|
1,446 |
|
|
|
(1,146 |
) |
Loss before income
taxes and equity in earnings from unconsolidated
entities |
|
|
(23,058 |
) |
|
|
(28,297 |
) |
|
|
(40,825 |
) |
|
|
(55,350 |
) |
Income tax expense (benefit) |
|
|
(3,027 |
) |
|
|
3,622 |
|
|
|
(6,358 |
) |
|
|
111 |
|
Equity in (earnings) loss from unconsolidated entities |
|
|
20 |
|
|
|
— |
|
|
|
100 |
|
|
|
— |
|
Net loss |
|
$ |
(20,051 |
) |
|
$ |
(31,919 |
) |
|
$ |
(34,567 |
) |
|
$ |
(55,461 |
) |
Net income (loss) attributable to non-controlling interest |
|
|
— |
|
|
|
(319 |
) |
|
|
15 |
|
|
|
(276 |
) |
Net loss attributable
to shareholders |
|
|
(20,051 |
) |
|
|
(31,600 |
) |
|
|
(34,582 |
) |
|
|
(55,185 |
) |
Accretion of Series A Convertible Preferred Shares |
|
|
88 |
|
|
|
(1,316 |
) |
|
|
(161 |
) |
|
|
(1,316 |
) |
Loss on extinguishment of Redeemable Common Equivalent Preferred
Units, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,870 |
) |
Common equivalent preferred dividends |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,380 |
) |
Accumulating preferred dividends |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(13,882 |
) |
Net loss attributable
to common shareholders |
|
$ |
(19,963 |
) |
|
$ |
(32,916 |
) |
|
$ |
(34,743 |
) |
|
$ |
(77,633 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.23 |
) |
|
$ |
(0.44 |
) |
|
$ |
(0.43 |
) |
|
$ |
(1.60 |
) |
Diluted |
|
$ |
(0.23 |
) |
|
$ |
(0.44 |
) |
|
$ |
(0.43 |
) |
|
$ |
(1.60 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
88,047 |
|
|
|
74,038 |
|
|
|
80,684 |
|
|
|
48,444 |
|
Diluted |
|
|
88,047 |
|
|
|
74,038 |
|
|
|
80,684 |
|
|
|
48,444 |
|
|
Westrock Coffee CompanyConsolidated
Statements of Cash Flows(Unaudited) |
|
|
|
Year Ended December 31, |
(Thousands) |
|
2023 |
|
|
2022 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
Net loss |
|
$ |
(34,567 |
) |
|
$ |
(55,461 |
) |
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
26,584 |
|
|
|
24,210 |
|
Equity-based compensation |
|
|
8,708 |
|
|
|
2,631 |
|
Paid-in-kind interest added to debt principal |
|
|
— |
|
|
|
295 |
|
Provision for credit losses |
|
|
2,979 |
|
|
|
1,790 |
|
Amortization of deferred financing fees included in interest
expense, net |
|
|
3,517 |
|
|
|
1,726 |
|
Write-off of unamortized deferred financing fees |
|
|
— |
|
|
|
4,296 |
|
Loss on debt extinguishment |
|
|
— |
|
|
|
1,580 |
|
Loss on disposal of property, plant and equipment |
|
|
1,153 |
|
|
|
935 |
|
Mark-to-market adjustments |
|
|
(104 |
) |
|
|
3,502 |
|
Change in fair value of warrant liabilities |
|
|
(10,207 |
) |
|
|
29,675 |
|
Foreign currency transactions |
|
|
1,864 |
|
|
|
667 |
|
Deferred income tax benefit |
|
|
(6,512 |
) |
|
|
(2,037 |
) |
Other |
|
|
2,486 |
|
|
|
1,204 |
|
Change in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
|
(312 |
) |
|
|
(16,789 |
) |
Inventories |
|
|
915 |
|
|
|
(46,770 |
) |
Derivative assets and liabilities |
|
|
6,440 |
|
|
|
(22,937 |
) |
Prepaid expense and other assets |
|
|
(1,890 |
) |
|
|
(15,476 |
) |
Accounts payable |
|
|
(59,292 |
) |
|
|
27,646 |
|
Accrued liabilities and other |
|
|
(5,826 |
) |
|
|
2,685 |
|
Net cash used in operating activities |
|
|
(64,064 |
) |
|
|
(56,628 |
) |
Cash flows from
investing activities: |
|
|
|
|
|
|
Additions to property, plant and equipment |
|
|
(164,611 |
) |
|
|
(63,261 |
) |
Additions to intangible assets |
|
|
(173 |
) |
|
|
(167 |
) |
Acquisition of business, net of cash acquired |
|
|
(2,392 |
) |
|
|
(14,885 |
) |
Acquisition of equity method investments and non-marketable
securities |
|
|
(1,385 |
) |
|
|
— |
|
Proceeds from sale of property, plant and equipment |
|
|
206 |
|
|
|
4,144 |
|
Net cash used in investing activities |
|
|
(168,355 |
) |
|
|
(74,169 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
Payments on debt |
|
|
(199,196 |
) |
|
|
(438,571 |
) |
Proceeds from debt |
|
|
258,490 |
|
|
|
328,539 |
|
Payments on supply chain financing program |
|
|
(32,141 |
) |
|
|
— |
|
Proceeds from supply chain financing program |
|
|
110,217 |
|
|
|
— |
|
Proceeds from related party debt |
|
|
— |
|
|
|
11,700 |
|
Debt extinguishment costs |
|
|
— |
|
|
|
(1,580 |
) |
Payment of debt issuance costs |
|
|
(3,158 |
) |
|
|
(6,007 |
) |
Proceeds from de-SPAC merger and PIPE financing |
|
|
— |
|
|
|
255,737 |
|
Payment of common equity issuance costs |
|
|
(1,000 |
) |
|
|
(23,998 |
) |
Proceeds from common equity issuance |
|
|
118,767 |
|
|
|
— |
|
Payment of preferred equity issuance costs |
|
|
— |
|
|
|
(1,250 |
) |
Net proceeds from (repayments of) repurchase agreements |
|
|
(6,268 |
) |
|
|
14,588 |
|
Proceeds from exercise of stock options |
|
|
848 |
|
|
|
375 |
|
Proceeds from exercise of Public Warrants |
|
|
2,632 |
|
|
|
— |
|
Common equivalent preferred dividends |
|
|
— |
|
|
|
(4,380 |
) |
Payment for purchase of non-controlling interest |
|
|
(2,000 |
) |
|
|
— |
|
Payment for taxes for net share settlement of equity awards |
|
|
(2,977 |
) |
|
|
(477 |
) |
Net cash provided by financing activities |
|
|
244,214 |
|
|
|
134,676 |
|
Effect of exchange rate changes on cash |
|
|
(360 |
) |
|
|
(344 |
) |
Net increase in cash and cash
equivalents and restricted cash |
|
|
11,435 |
|
|
|
3,535 |
|
Cash and cash equivalents and
restricted cash at beginning of period |
|
|
26,405 |
|
|
|
22,870 |
|
Cash and cash equivalents and restricted cash at end of
period |
|
$ |
37,840 |
|
|
$ |
26,405 |
|
|
Westrock Coffee CompanyReconciliation of
Net Income (Loss) to Non-GAAP Adjusted
EBITDA(Unaudited) |
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
(Thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net loss |
|
$ |
(20,051 |
) |
|
$ |
(31,919 |
) |
|
$ |
(34,567 |
) |
|
$ |
(55,461 |
) |
Interest expense, net |
|
|
7,941 |
|
|
|
5,232 |
|
|
|
29,157 |
|
|
|
35,497 |
|
Income tax expense (benefit) |
|
|
(3,027 |
) |
|
|
3,622 |
|
|
|
(6,358 |
) |
|
|
111 |
|
Depreciation and amortization |
|
|
8,166 |
|
|
|
6,428 |
|
|
|
26,584 |
|
|
|
24,210 |
|
EBITDA |
|
|
(6,971 |
) |
|
|
(16,637 |
) |
|
|
14,816 |
|
|
|
4,357 |
|
Transaction, restructuring and integration expense |
|
|
1,875 |
|
|
|
4,423 |
|
|
|
14,557 |
|
|
|
13,169 |
|
Change in fair value of warrant liabilities |
|
|
8,626 |
|
|
|
24,460 |
|
|
|
(10,207 |
) |
|
|
29,675 |
|
Management and consulting fees (S&D Coffee, Inc.
acquisition) |
|
|
— |
|
|
|
833 |
|
|
|
556 |
|
|
|
3,868 |
|
Equity-based compensation |
|
|
2,411 |
|
|
|
1,447 |
|
|
|
8,708 |
|
|
|
2,631 |
|
Conway extract and ready-to-drink facility start-up costs |
|
|
5,083 |
|
|
|
— |
|
|
|
11,698 |
|
|
|
— |
|
Mark-to-market adjustments |
|
|
941 |
|
|
|
2,709 |
|
|
|
(104 |
) |
|
|
3,502 |
|
Loss on disposal of property, plant and equipment |
|
|
8 |
|
|
|
187 |
|
|
|
1,153 |
|
|
|
935 |
|
Other |
|
|
1,750 |
|
|
|
31 |
|
|
|
3,904 |
|
|
|
1,916 |
|
Adjusted
EBITDA |
|
$ |
13,723 |
|
|
$ |
17,453 |
|
|
$ |
45,081 |
|
|
$ |
60,053 |
|
|
Westrock Coffee CompanyReconciliation of
Segment Results(Unaudited) |
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
(Thousands) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net Sales |
|
|
|
|
|
|
|
|
|
|
|
|
Beverage Solutions |
|
$ |
175,119 |
|
$ |
192,591 |
|
$ |
722,865 |
|
$ |
685,303 |
Sustainable Sourcing &
Traceability1 |
|
|
39,847 |
|
|
35,132 |
|
|
141,849 |
|
|
182,569 |
Total of Reportable
Segments |
|
$ |
214,966 |
|
$ |
227,723 |
|
$ |
864,714 |
|
$ |
867,872 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
(Thousands) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Gross
Profit |
|
|
|
|
|
|
|
|
|
|
|
|
Beverage Solutions |
|
$ |
31,031 |
|
$ |
32,297 |
|
$ |
125,899 |
|
$ |
140,692 |
Sustainable Sourcing &
Traceability |
|
|
3,786 |
|
|
2,000 |
|
|
13,959 |
|
|
12,073 |
Total of Reportable
Segments |
|
$ |
34,817 |
|
$ |
34,297 |
|
$ |
139,858 |
|
$ |
152,765 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
(Thousands) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Adjusted
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
Beverage Solutions |
|
$ |
11,659 |
|
$ |
15,175 |
|
$ |
41,624 |
|
$ |
53,951 |
Sustainable Sourcing &
Traceability |
|
|
2,064 |
|
|
2,278 |
|
|
3,457 |
|
|
6,102 |
Total of Reportable
Segments |
|
$ |
13,723 |
|
$ |
17,453 |
|
$ |
45,081 |
|
$ |
60,053 |
_____________________________1 - Net of intersegment
revenues
Non-GAAP Financial Measures
We refer to EBITDA and 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 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. Additionally, we use these non-GAAP financial measures
in evaluating the performance of our segments, to make operational
and financial decisions and in our budgeting and planning process.
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, net, provision for income taxes and
depreciation and amortization. We define “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 costs specifically excluded from the
calculation of EBITDA under our material debt agreements, such as
facility start-up costs, 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 Adjusted EBITDA are
important supplemental measures to net (loss) income because they
provide additional information to evaluate our operating
performance on an unleveraged basis. In addition, Adjusted EBITDA
is calculated similar to defined terms in our material debt
agreements used to determine compliance with specific financial
covenants.
Since EBITDA and 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
Adjusted EBITDA may not be comparable to that reported by other
companies that define EBITDA and Adjusted EBITDA differently than
we do.
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