The Beachbody Company (NYSE: BODI) Announces Amendments to its Term Loan
08 April 2024 - 10:05PM
Business Wire
The Beachbody Company, Inc. (NYSE: BODi) (“BODi” or the
“Company”), a leading health and fitness company, today announced
that it has amended certain financial covenants (and other terms)
of its original $50 million term loan with Blue Torch Capital. The
loan balance as of this date has been reduced to $25.5 million.
“To more effectively synchronize our loan agreement with our
profitability and free cash flow targets, we concluded that it was
more strategically aligned with our priorities to adjust the
conditions of our revenue covenant with Blue Torch Capital. The
modified terms decrease the quarterly revenue floor to $100 million
per quarter until December 31, 2024, and then to $110 million per
quarter for the subsequent periods. These revisions are possible
because of our ability to generate positive free cash flow at a
much lower revenue threshold," said Carl Daikeler, BODi's
Co-Founder and CEO.
As part of the amendment, BODi is paying down $4 million in
debt, reducing the outstanding balance to $25.5 million. The
minimum liquidity covenant will be reduced by the same amount, from
$22 million to $18 million.
“The cornerstone of our turnaround initiative is our updated
business strategy, which focuses on expanding sales channels of our
rich fitness content and nutritional supplements to optimize
profitability and cash generation from our asset base. We have
successfully reduced our revenue breakeven from over $900 million
in 2022 to less than $500 million in 2024 through a comprehensive
rearchitecting of the business. The Blue Torch team has been
exceptional in acknowledging the progress we have made in executing
our turnaround plan, demonstrating their support of our overall
strategy by collaborating with us to modify the terms of our
agreement," said Mark Goldston, BODi’s Executive Chairman.
About BODi and The Beachbody Company, Inc.
Originally known as Beachbody, BODi has been innovating
structured step-by-step home fitness and nutrition programs for 25
years such as P90X, Insanity, and 21-Day Fix, plus the first
premium superfood nutrition supplement, Shakeology. Since its
inception in 1999 BODi has helped over 30 million customers pursue
extraordinary life-changing results. The BODi community represents
millions of people helping each other stay accountable to goals of
healthy weight loss, improved strength and energy, and resilient
mental and physical well-being. For more information, please visit
TheBeachbodyCompany.com.
Ticker Symbol Changed to BODi
On March 4, 2024, the Company transitioned its stock ticker from
"BODY" to "BODi" on the NYSE, in line with its rebrand from
Beachbody to BODi. There were no changes made to the CUSIP or the
stock's listing status on the NYSE.
Forward-Looking Statements
This press release of The Beachbody Company, Inc. (“we,” “us,”
“our,” and similar terms) contains "forward-looking" statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which are statements other than statements of historical
facts and statements in future tense. These statements include but
are not limited to, statements regarding our future performance and
our market opportunity, including expected financial results, our
business strategy, our plans, and our objectives and future
operations.
Forward-looking statements are based upon various estimates and
assumptions, as well as information known to us as of the date
hereof, and are subject to risks and uncertainties. Accordingly,
actual results could differ materially due to a variety of factors,
including: our ability to effectively compete in the fitness and
nutrition industries; our ability to successfully drive growth in
our existing operations; our ability to successfully acquire and
integrate new operations; our reliance on a few key products; our
ability to manage costs with our existing and future operations;
market conditions and global and economic factors beyond our
control; intense competition and competitive pressures from other
companies worldwide in the industries in which we operate;
litigation; and the ability to adequately protect our intellectual
property rights. You can identify these statements by the use of
terminology such as "believe", “plan”, "expect", "will", "should,"
"could", "estimate", "anticipate," “becoming” or similar
forward-looking terms. You should not rely on these forward-looking
statements as they involve risks and uncertainties that may cause
actual results to vary materially from the forward-looking
statements. For more information regarding the risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied in these forward-looking
statements, as well as risks relating to our business in general,
we refer you to the "Risk Factors" section of our Securities and
Exchange Commission (“SEC”) filings, including those risks and
uncertainties included in our Annual Report on Form 10-K filed with
the SEC on March 11, 2024 and any subsequent Quarterly Reports on
Form 10-Q or Current Reports on Form 8-K, which are available on
the Investor Relations page of our website at
https://investors.thebeachbodycompany.com and on the SEC website at
www.sec.gov.
All forward-looking statements contained herein are based on
information available to us as of the date hereof and you should
not rely upon forward-looking statements as predictions of future
events. The events and circumstances reflected in the
forward-looking statements may not be achieved or occur. Although
we believe that the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future results,
performance, or achievements. We undertake no obligation to update
any of these forward-looking statements for any reason after the
date of this press release or to conform these statements to actual
results or revised expectations, except as required by law. Undue
reliance should not be placed on forward-looking statements.
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Investor Relations IR@BODi.com
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