Westrock Coffee Company (Nasdaq: WEST) (“Westrock Coffee” or “the
Company”) today reported financial results for the fourth quarter
and full year 2022.
Scott T. Ford, CEO and Co-founder, stated, “We are pleased to
announce strong growth in net sales, gross profit and Adjusted
EBITDA for full year 2022. I am very grateful to the team for their
near heroic efforts that delivered record annual results, even as
they dealt with the damaging macroeconomic challenges of an
inflation surge and record gasoline prices, while simultaneously
contending with internal capacity constraints and increased
operating expenses brought about by the late arrival of critical
manufacturing equipment in both our single serve cup and extracts
units. As we turn to 2023 with the requisite equipment to meet our
legacy customers’ demands now operational, we are focused on
continuing to scale our existing capabilities in service to our
customers. Among our top priorities is delivering our Conway,
Arkansas extract and ready-to-drink facility on time and on budget,
the benefits of which will be material to our business.”
Full Year 2022 Highlights
- Consolidated net sales were $867.9
million for the year ended December 31, 2022, an increase of $169.7
million, or 24%, compared to the year ended December 31, 2021.
- Consolidated gross profit was
$152.8 million for the year ended December 31, 2022, and included
$3.5 million of non-cash mark-to-market losses, compared to $145.4
million for the year ended December 31, 2021, which included $3.6
million of non-cash mark-to-market gains.
- Net loss was $55.5 million for the
year ended December 31, 2022, compared to a net loss of $21.3
million for the year ended December 31, 2021. The $55.5 million net
loss for the year ended December 31, 2022 included $13.2 million of
acquisition, 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. Net loss of $21.3 million for the
year ended December 31, 2021 included $8.8 million of acquisition,
restructuring and integration expense.
- Adjusted EBITDA was $60.1 million
for the year ended December 31, 2022, an increase of $12.9 million,
or 27%, compared to the year ended December 31, 2021.
- At December 31, 2022, the Company
had approximately $192 million of unrestricted cash and undrawn
borrowings under its revolving credit facility, and the Company’s
consolidated leverage ratio was 2.9x based on net debt to fourth
quarter annualized Adjusted EBITDA.
- Beverage Solutions segment
contributed $685.3 million of net sales and $54.0 million of
Adjusted EBITDA for the year ended December 31, 2022, compared to
$551.0 million and $41.5 million, respectively, for the year ended
December 31, 2021. This represents net sales growth of 24%, and
Adjusted EBITDA growth of 30%.
- Sustainable Sourcing &
Traceability (“SS&T”) segment, net of intersegment revenues,
contributed $182.6 million and $6.1 million of Adjusted EBITDA for
the year ended December 31, 2022, compared to $147.1 million and
$5.7 million, respectively, in the year ended December 31, 2021.
This represents net sales growth of 24%, and Adjusted EBITDA growth
of 7%.
Fourth Quarter Highlights
- Consolidated net sales were $227.7
million for the fourth quarter of 2022, an increase of $37.3
million, or 20%, compared to the fourth quarter of 2021.
- Consolidated gross profit for the
fourth quarter of 2022 was $34.3 million and included $2.7 million
of non-cash mark-to-market losses, compared to consolidated gross
profit of $39.7 million for the fourth quarter of 2021, which
included $1.6 million of non-cash mark-to-market gains.
- Net loss for the period was $31.9
million compared to a net loss of $5.2 million for the same period
in 2021. The $31.9 million net loss for the fourth quarter of 2022
included $4.4 million of acquisition, restructuring and integration
expense and $24.5 million of non-cash expense from the change in
fair value of warrant liabilities. Net loss of $5.2 million for the
fourth quarter of 2021 included $5.1 million of acquisition,
restructuring and integration expense.
- Adjusted EBITDA was $17.5 million
for the fourth quarter of 2022, an increase of $3.3 million, or
23%, compared to the fourth quarter of 2021.
- Beverage Solutions segment
contributed $192.6 million of net sales and $15.2 million of
Adjusted EBITDA for the fourth quarter of 2022, compared to $150.5
million and $11.5 million, respectively, for the fourth quarter of
2021. This represents net sales growth of 28%, and Adjusted EBITDA
growth of 31%.
- SS&T segment, net of
intersegment revenues, contributed $35.1 million and $2.3 million
of Adjusted EBITDA for the fourth quarter of 2022, compared to
$39.9 million and $2.7 million, respectively, for the fourth
quarter of 2021.
Business Highlights
- As previously announced, on
February 14, 2023, the Company amended its existing $350 million
credit agreement to establish a new class of incremental term loan
commitments in the form of a senior secured delayed draw term loan
credit facility in the aggregate principal amount of $50
million.
- As previously announced, on
February 28, 2023, the Company completed the acquisition of Bixby
Roasting Co. (“Bixby”), a specialty-grade roaster that is a leader
in the emerging influencer-led brand space. The acquisition, which
includes Bixby’s roasting facility in Los Angeles, CA, allows
Westrock Coffee to continue to expand its omnichannel product
marketing and development resources as we capitalize on shifting
consumer consumption trends toward consumption associated with
personal brands. Bixby co-founders Miles Fisher and Remington
Hotchkis both joined the Westrock Coffee senior management team as
part of the transaction. The terms of the transaction were not
disclosed.
2023 Outlook
The Company expects consolidated Adjusted EBITDA to grow 10% to
25% in fiscal 2023, representing a range of $66 million to $75
million. 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 2023
outlook on the earnings results call later 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/BIf11007e0a18c4ff597d397caa8144f73
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 2023 financial outlook, certain plans,
expectations, goals, projections, and statements about the benefits
of the build-out of the Company's Conway, Arkansas extract and
ready-to-drink facility, the plans, objections, expectations, and
intentions of Westrock Coffee, the anticipated benefits of the
acquisition of Bixby, 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 has difficulty successfully
integrating acquired companies, including Kohana Coffee, LLC and
Bixby; 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; and those factors
discussed in Westrock Coffee’s registration statement on Form S-1,
which was initially filed with the United States Securities and
Exchange Commission (the “SEC”) on September 20, 2022, under the
heading “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:ICR for
Westrock: Westrock@icrinc.com
Investor Relations:ICR for
Westrock: WestrockCoffeeIR@icrinc.com
Westrock Coffee
CompanyCondensed Consolidated Balance
Sheets(Unaudited)
(Thousands, except par value) |
|
December 31, 2022 |
|
December 31, 2021 |
ASSETS |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
16,838 |
|
|
$ |
19,344 |
|
Restricted cash |
|
|
9,567 |
|
|
|
3,526 |
|
Accounts receivable, net of allowance for credit losses of $3,023
and $3,749, respectively |
|
|
101,639 |
|
|
|
85,795 |
|
Inventories |
|
|
144,149 |
|
|
|
109,166 |
|
Derivative assets |
|
|
15,053 |
|
|
|
13,765 |
|
Prepaid expenses and other current assets |
|
|
9,166 |
|
|
|
6,410 |
|
Total current assets |
|
|
296,412 |
|
|
|
238,006 |
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
185,206 |
|
|
|
127,613 |
|
Goodwill |
|
|
113,999 |
|
|
|
97,053 |
|
Intangible assets, net |
|
|
130,886 |
|
|
|
125,914 |
|
Other long-term assets |
|
|
18,023 |
|
|
|
4,434 |
|
Total Assets |
|
$ |
744,526 |
|
|
$ |
593,020 |
|
|
|
|
|
|
|
|
LIABILITIES,
CONVERTIBLE PREFERRED SHARES, REDEEMABLE UNITS, AND SHAREHOLDERS'
EQUITY (DEFICIT) |
|
|
|
|
|
|
Current maturities of long-term debt |
|
$ |
11,504 |
|
|
$ |
8,735 |
|
Short-term debt |
|
|
42,905 |
|
|
|
4,510 |
|
Short-term related party debt |
|
|
— |
|
|
|
34,199 |
|
Accounts payable |
|
|
116,675 |
|
|
|
80,405 |
|
Derivative liabilities |
|
|
7,592 |
|
|
|
14,021 |
|
Accrued expenses and other current liabilities |
|
|
35,772 |
|
|
|
26,370 |
|
Total current liabilities |
|
|
214,448 |
|
|
|
168,240 |
|
|
|
|
|
|
|
|
Long-term debt, net |
|
|
162,502 |
|
|
|
277,064 |
|
Subordinated related party debt |
|
|
— |
|
|
|
13,300 |
|
Deferred income taxes |
|
|
14,355 |
|
|
|
25,515 |
|
Warrant liabilities |
|
|
55,521 |
|
|
|
— |
|
Other long-term liabilities |
|
|
11,035 |
|
|
|
3,028 |
|
Total liabilities |
|
|
457,861 |
|
|
|
487,147 |
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
Series A Convertible Preferred Shares, $0.01 par value, 24,000
shares authorized, 23,588 shares issued and outstanding, $11.50
liquidation value |
|
|
274,936 |
|
|
|
— |
|
Series A Redeemable Common Equivalent Preferred Units: $0.00 par
value, 222,150 units authorized, no units and 222,150 units issued
and outstanding at December 31, 2022 and December 31, 2021,
respectively |
|
|
— |
|
|
|
264,729 |
|
Series B Redeemable Common Equivalent Preferred Units: $0.00 par
value, 17,000 units authorized, no units and 17,000 units issued
and outstanding at December 31, 2022 and December 31, 2021,
respectively |
|
|
— |
|
|
|
17,142 |
|
|
|
|
|
|
|
|
Shareholders' Equity
(Deficit)(1) |
|
|
|
|
|
|
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, 75,020
shares issued and outstanding at December 31, 2022; $0.00 par
value, 39,389 shares authorized, 34,523 shares issued and
outstanding at December 31, 2021 |
|
|
750 |
|
|
|
345 |
|
Additional paid-in-capital |
|
|
342,664 |
|
|
|
60,628 |
|
Accumulated deficit |
|
|
(328,042 |
) |
|
|
(251,725 |
) |
Accumulated other comprehensive income (loss) |
|
|
(6,103 |
) |
|
|
12,018 |
|
Total shareholders' equity (deficit) attributable to
Westrock Coffee Company |
|
|
9,269 |
|
|
|
(178,734 |
) |
Noncontrolling interest |
|
|
2,460 |
|
|
|
2,736 |
|
Total shareholders' equity (deficit) |
|
|
11,729 |
|
|
|
(175,998 |
) |
|
|
|
|
|
|
|
Total Liabilities,
Convertible Preferred Shares, Redeemable Units and Shareholders'
Equity (Deficit) |
|
$ |
744,526 |
|
|
$ |
593,020 |
|
(1) Retroactively adjusted for de-SPAC merger transaction.
Westrock Coffee
CompanyCondensed Consolidated Statements of
Operations(Unaudited)
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
(Thousands, except per share data) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Net sales |
|
$ |
227,723 |
|
|
$ |
190,392 |
|
|
$ |
867,872 |
|
|
$ |
698,144 |
|
Costs of sales |
|
|
193,426 |
|
|
|
150,741 |
|
|
|
715,107 |
|
|
|
552,721 |
|
Gross profit |
|
|
34,297 |
|
|
|
39,651 |
|
|
|
152,765 |
|
|
|
145,423 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expense |
|
|
28,653 |
|
|
|
32,197 |
|
|
|
129,985 |
|
|
|
128,506 |
|
Acquisition, restructuring and integration expense |
|
|
4,423 |
|
|
|
5,063 |
|
|
|
13,169 |
|
|
|
8,835 |
|
Loss on disposal of property, plant and equipment |
|
|
187 |
|
|
|
390 |
|
|
|
935 |
|
|
|
243 |
|
Total operating expenses |
|
|
33,263 |
|
|
|
37,650 |
|
|
|
144,089 |
|
|
|
137,584 |
|
Income from
operations |
|
|
1,034 |
|
|
|
2,001 |
|
|
|
8,676 |
|
|
|
7,839 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
5,232 |
|
|
|
8,266 |
|
|
|
35,497 |
|
|
|
32,549 |
|
Change in fair value of warrant liabilities |
|
|
24,460 |
|
|
|
— |
|
|
|
29,675 |
|
|
|
— |
|
Other, net |
|
|
(361 |
) |
|
|
90 |
|
|
|
(1,146 |
) |
|
|
(34 |
) |
Loss before income
taxes |
|
|
(28,297 |
) |
|
|
(6,355 |
) |
|
|
(55,350 |
) |
|
|
(24,676 |
) |
Income tax expense (benefit) |
|
|
3,622 |
|
|
|
(1,129 |
) |
|
|
111 |
|
|
|
(3,368 |
) |
Net loss |
|
$ |
(31,919 |
) |
|
$ |
(5,226 |
) |
|
$ |
(55,461 |
) |
|
$ |
(21,308 |
) |
Net (loss) income attributable to non-controlling interest |
|
|
(319 |
) |
|
|
206 |
|
|
|
(276 |
) |
|
|
639 |
|
Net loss attributable
to shareholders |
|
|
(31,600 |
) |
|
|
(5,432 |
) |
|
|
(55,185 |
) |
|
|
(21,947 |
) |
Accretion of convertible preferred stock |
|
|
(1,316 |
) |
|
|
— |
|
|
|
(1,316 |
) |
|
|
— |
|
Loss on extinguishment of Redeemable Common Equivalent Preferred
Units, net |
|
|
— |
|
|
|
— |
|
|
|
(2,870 |
) |
|
|
— |
|
Common equivalent preferred dividends |
|
|
— |
|
|
|
— |
|
|
|
(4,380 |
) |
|
|
— |
|
Accumulating preferred dividends |
|
|
— |
|
|
|
(6,251 |
) |
|
|
(13,882 |
) |
|
|
(24,208 |
) |
Net loss attributable
to common shareholders |
|
$ |
(32,916 |
) |
|
$ |
(11,683 |
) |
|
$ |
(77,633 |
) |
|
$ |
(46,155 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common
share(1): |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.44 |
) |
|
$ |
(0.34 |
) |
|
$ |
(1.60 |
) |
|
$ |
(1.34 |
) |
Diluted |
|
$ |
(0.44 |
) |
|
$ |
(0.34 |
) |
|
$ |
(1.60 |
) |
|
$ |
(1.34 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares
outstanding(1): |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
74,038 |
|
|
|
34,523 |
|
|
|
48,444 |
|
|
|
34,472 |
|
Diluted |
|
|
74,038 |
|
|
|
34,523 |
|
|
|
48,444 |
|
|
|
34,472 |
|
(1) Retroactively adjusted for de-SPAC merger transaction.
Westrock Coffee
CompanyCondensed Consolidated Statements of Cash
Flows(Unaudited)
|
|
Year Ended December 31, |
(Thousands) |
|
2022 |
|
2021 |
Cash flows from
operating activities: |
|
|
|
|
|
|
Net loss |
|
$ |
(55,461 |
) |
|
$ |
(21,308 |
) |
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
24,210 |
|
|
|
25,501 |
|
Equity-based compensation |
|
|
2,631 |
|
|
|
1,223 |
|
Paid-in-kind interest added to debt principal |
|
|
295 |
|
|
|
1,777 |
|
Provision for credit losses |
|
|
1,790 |
|
|
|
439 |
|
Amortization of deferred financing fees included in interest
expense |
|
|
1,726 |
|
|
|
1,840 |
|
Write-off of unamortized deferred financing fees |
|
|
4,296 |
|
|
|
— |
|
Loss on debt extinguishment |
|
|
1,580 |
|
|
|
— |
|
Loss on disposal of property, plant and equipment |
|
|
935 |
|
|
|
243 |
|
Mark-to-market adjustments |
|
|
3,502 |
|
|
|
(3,585 |
) |
Change in fair value of warrant liabilities |
|
|
29,675 |
|
|
|
— |
|
Foreign currency transactions |
|
|
667 |
|
|
|
492 |
|
Deferred income tax (benefit) expense |
|
|
(2,037 |
) |
|
|
(3,448 |
) |
Other |
|
|
1,204 |
|
|
|
— |
|
Change in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
|
(16,789 |
) |
|
|
(20,102 |
) |
Inventories |
|
|
(45,083 |
) |
|
|
(16,543 |
) |
Derivative assets and liabilities |
|
|
(22,937 |
) |
|
|
14,860 |
|
Prepaid expense and other assets |
|
|
(15,476 |
) |
|
|
(401 |
) |
Accounts payable |
|
|
27,646 |
|
|
|
18,724 |
|
Accrued liabilities and other |
|
|
998 |
|
|
|
3,165 |
|
Net cash provided by (used in) operating activities |
|
|
(56,628 |
) |
|
|
2,877 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Additions to property, plant and equipment |
|
|
(63,261 |
) |
|
|
(25,115 |
) |
Additions to intangible assets |
|
|
(167 |
) |
|
|
(321 |
) |
Acquisition of business, net of cash acquired |
|
|
(14,885 |
) |
|
|
— |
|
Proceeds from sale of property, plant and equipment |
|
|
4,144 |
|
|
|
2,789 |
|
Net cash used in investing activities |
|
|
(74,169 |
) |
|
|
(22,647 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
Payments on debt |
|
|
(438,571 |
) |
|
|
(111,313 |
) |
Proceeds from debt |
|
|
328,539 |
|
|
|
119,740 |
|
Proceeds from related party debt |
|
|
11,700 |
|
|
|
— |
|
Debt extinguishment costs |
|
|
(1,580 |
) |
|
|
— |
|
Payment of debt issuance costs |
|
|
(6,007 |
) |
|
|
(1,426 |
) |
Proceeds from de-SPAC merger and PIPE financing |
|
|
255,737 |
|
|
|
— |
|
Payment of common equity issuance costs |
|
|
(23,998 |
) |
|
|
— |
|
Payment of preferred equity issuance costs |
|
|
(1,250 |
) |
|
|
— |
|
Net proceeds from repurchase agreements |
|
|
14,588 |
|
|
|
— |
|
Common equivalent preferred dividends |
|
|
(4,380 |
) |
|
|
— |
|
Payment of taxes for net share settlement of equity awards |
|
|
(477 |
) |
|
|
(162 |
) |
Proceeds from exercise of stock options |
|
|
375 |
|
|
|
— |
|
Proceeds from the issuance of common equivalent preferred
units |
|
|
— |
|
|
|
17,000 |
|
Net cash provided by financing activities |
|
|
134,676 |
|
|
|
23,839 |
|
Effect of exchange rate changes on cash |
|
|
(344 |
) |
|
|
149 |
|
Net increase in cash and cash
equivalents and restricted cash |
|
|
3,535 |
|
|
|
4,218 |
|
Cash and cash equivalents and
restricted cash at beginning of period |
|
|
22,870 |
|
|
|
18,652 |
|
Cash and cash equivalents
and restricted cash at end of period |
|
$ |
26,405 |
|
|
$ |
22,870 |
|
|
|
|
|
|
|
|
|
|
Westrock Coffee
CompanyReconciliation of Net Loss to Non-GAAP
Adjusted EBITDA(Unaudited)
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
(Thousands) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Net loss |
|
$ |
(31,919 |
) |
|
$ |
(5,226 |
) |
|
$ |
(55,461 |
) |
|
$ |
(21,308 |
) |
Interest expense |
|
|
5,232 |
|
|
|
8,266 |
|
|
|
35,497 |
|
|
|
32,549 |
|
Income tax expense (benefit) |
|
|
3,622 |
|
|
|
(1,129 |
) |
|
|
111 |
|
|
|
(3,368 |
) |
Depreciation and amortization |
|
|
6,428 |
|
|
|
7,115 |
|
|
|
24,210 |
|
|
|
25,501 |
|
EBITDA |
|
|
(16,637 |
) |
|
|
9,026 |
|
|
|
4,357 |
|
|
|
33,374 |
|
Acquisition, restructuring and integration expense |
|
|
4,423 |
|
|
|
5,063 |
|
|
|
13,169 |
|
|
|
8,835 |
|
Change in fair value of warrant liabilities |
|
|
24,460 |
|
|
|
— |
|
|
|
29,675 |
|
|
|
— |
|
Management and consulting fees (S&D Coffee, Inc.
acquisition) |
|
|
833 |
|
|
|
1,591 |
|
|
|
3,868 |
|
|
|
6,382 |
|
Equity-based compensation |
|
|
1,447 |
|
|
|
305 |
|
|
|
2,631 |
|
|
|
1,223 |
|
Mark-to-market adjustments |
|
|
2,709 |
|
|
|
(1,606 |
) |
|
|
3,502 |
|
|
|
(3,585 |
) |
Loss on disposal of property, plant and equipment |
|
|
187 |
|
|
|
390 |
|
|
|
935 |
|
|
|
243 |
|
Other |
|
|
31 |
|
|
|
(566 |
) |
|
|
1,916 |
|
|
|
702 |
|
Adjusted
EBITDA |
|
$ |
17,453 |
|
|
$ |
14,203 |
|
|
$ |
60,053 |
|
|
$ |
47,174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beverage Solutions |
|
$ |
15,175 |
|
|
$ |
11,544 |
|
|
$ |
53,951 |
|
|
$ |
41,468 |
|
Sustainable Sourcing & Traceability |
|
|
2,278 |
|
|
|
2,659 |
|
|
|
6,102 |
|
|
|
5,706 |
|
Total of Reportable
Segments |
|
$ |
17,453 |
|
|
$ |
14,203 |
|
|
$ |
60,053 |
|
|
$ |
47,174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Westrock Coffee
CompanyReconciliation of Segment
Results(Unaudited)
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
(Thousands) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Net Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beverage Solutions |
|
$ |
192,591 |
|
|
$ |
150,507 |
|
|
$ |
685,303 |
|
|
$ |
551,013 |
|
Sustainable Sourcing &
Traceability1 |
|
|
35,132 |
|
|
|
39,885 |
|
|
|
182,569 |
|
|
|
147,131 |
|
Total of Reportable
Segments |
|
$ |
227,723 |
|
|
$ |
190,392 |
|
|
$ |
867,872 |
|
|
$ |
698,144 |
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
(Thousands) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Gross Profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beverage Solutions |
|
$ |
32,297 |
|
|
$ |
33,171 |
|
|
$ |
140,692 |
|
|
$ |
127,699 |
|
Sustainable Sourcing &
Traceability |
|
|
2,000 |
|
|
|
6,480 |
|
|
|
12,073 |
|
|
|
17,724 |
|
Total of Reportable
Segments |
|
$ |
34,297 |
|
|
$ |
39,651 |
|
|
$ |
152,765 |
|
|
$ |
145,423 |
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
(Thousands) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beverage Solutions |
|
$ |
15,175 |
|
|
$ |
11,544 |
|
|
$ |
53,951 |
|
|
$ |
41,468 |
|
Sustainable Sourcing &
Traceability |
|
|
2,278 |
|
|
|
2,659 |
|
|
|
6,102 |
|
|
|
5,706 |
|
Total of Reportable
Segments |
|
$ |
17,453 |
|
|
$ |
14,203 |
|
|
$ |
60,053 |
|
|
$ |
47,174 |
|
________________________________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, 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 acquisition, 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 (loss) income 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.
Westrock Coffee (NASDAQ:WEST)
過去 株価チャート
から 11 2024 まで 12 2024
Westrock Coffee (NASDAQ:WEST)
過去 株価チャート
から 12 2023 まで 12 2024