American Rebel Reports Financial Results for the Second Quarter and First Half Ended June 30, 2024

Rhea-AI Summary

American Rebel Holdings (NASDAQ: AREB) reported financial results for Q2 and H1 2024. Key highlights include:

- H1 2024 revenue: $7.3 million
- Q2 2024 revenue: $3.3 million
- H1 2024 Adjusted EBITDA: $(3.7) million
- Q2 2024 Adjusted EBITDA: $(2.6) million

The company successfully launched American Rebel Beer at Country Stampede and secured distribution partnerships in Ohio, Tennessee, Kansas, and Connecticut. American Rebel Light Beer is now available in over 150 retail locations in Kansas. The company plans full-scale beer production in August 2024 and aims to expand its distribution network. Despite seasonal challenges in the safe business, American Rebel is focusing on operational improvements and new products to drive profitability in 2025.

Positive

• Successful launch of American Rebel Beer at Country Stampede
• Secured distribution partnerships in multiple states for American Rebel Beer
• American Rebel Light Beer available in over 150 retail locations in Kansas
• Plans for full-scale beer production in August 2024
• Focus on operational improvements and new products in the safe business to increase margins

Negative

• H1 2024 Adjusted EBITDA loss of $3.7 million
• Q2 2024 Adjusted EBITDA loss of $2.6 million
• Seasonal challenges in June and July 2024 for the Champion safe business

Insights

Financial Analyst

American Rebel's Q2 2024 results paint a mixed picture. While revenue reached $3.3 million for the quarter and $7.3 million for the first half, the company reported significant losses. The Adjusted EBITDA of $(2.6) million for Q2 and $(3.7) million for H1 2024 indicate substantial operational challenges.

The launch of American Rebel Beer presents a potential growth avenue, but it's entering a highly competitive $110+ billion market. The expansion of distribution networks is promising, yet it's important to monitor how quickly this translates into meaningful revenue. The safe business faces seasonality issues, which could impact near-term performance. Investors should watch for improvements in operational efficiencies and margins, as these will be key to achieving profitability in 2025.

Market Research Analyst

American Rebel's diversification into the beer market is an intriguing move. The company's patriotic branding could resonate with a specific consumer segment, potentially carving out a niche in the crowded beer industry. However, the success of this venture will heavily depend on effective marketing and distribution strategies.

The expansion of retail locations for American Rebel Light Beer to over 150 in Kansas is a positive sign, but national scalability remains a question. The safe business, while facing seasonality challenges, still forms the core of the company's revenue. It's important to balance resources between the established safe business and the new beer venture. Investors should closely monitor the beer segment's growth rate and its impact on overall financial performance in the coming quarters.

Business Strategy Consultant

American Rebel's strategy of diversifying from safes and personal security products into the beer market is bold but risky. While it leverages the brand's patriotic image, it also stretches the company thin across vastly different industries. The negative Adjusted EBITDA suggests that this expansion is currently a drain on resources.

The company needs to demonstrate that it can successfully manage both businesses without compromising either. The focus on improving operational efficiencies in the safe business is crucial. For the beer segment, securing distribution partnerships is a good start, but the real test will be in scaling production and sales while managing costs. Investors should look for concrete metrics on beer sales and market penetration in future reports to gauge the success of this diversification strategy.

Nashville, TN, Aug. 20, 2024 (GLOBE NEWSWIRE) -- American Rebel Holdings, Inc. (NASDAQ: AREB) ("American Rebel" or the "Company"), a designer, manufacturer, and marketer of branded safes, personal security and self-defense products and apparel, and American Rebel Beer (americanrebelbeer.com), announced its financial results for the quarter (“Q2 2024”) and first half ended June 30, 2024. Investors are encouraged to read the Company’s quarterly report on Form 10-Q, which was filed with the Securities and Exchange Commissions (the “SEC”) and contains additional information and is posted at https://americanrebel.com/investor-relations.

First Half 2024 Financial Summary:

Revenue		$	7.3 Million
Gross Profit		$	0.87 Million
EBITDA (GAAP)		$	(6.4) Million
Adjusted EBITDA (Non-GAAP)1		$	(3.7) Million

Second Quarter 2024 Financial Summary:

Revenue		$	3.3 Million
Gross Profit		$	0.31 Million
EBITDA (GAAP)		$	(4.2) Million
Adjusted EBITDA (Non-GAAP)1		$	(2.6) Million

1 - Adjusted EBITDA is a non-GAAP measure. Refer to the tables at the end of this press release for a reconciliation to GAAP.

Recent Business Highlights:

• American Rebel Beer will enter full scale production in August of 2024
• Successfully launched American Rebel Beer at Country Stampede in Bonner Springs, KS
• Reached premier distribution partnerships for American Rebel Beer in the following regions: 
  • Bonbright Distributors - Ohio
  • Best Brands - Tennessee
  • Standard Beverage – Kansas
  • Dichello Distributors - Connecticut
• Multiple distributors in numerous territories are engaged and we look forward to announcing additional distribution agreements during Q3 2024.
• American Rebel Light Beer surpassed 150+ retail locations throughout Kansas as of August 2024.
• Continued improvement in our subsidiary Champion Safe’s financial performance with tighter cost controls and increasing inventory.

Andy Ross, Chief Executive Officer of American Rebel, commented, “America’s Patriotic, God-Fearing, Constitution-Loving, National Anthem-Singing, Stand Your Ground Beer – Rebel Light is coming to a store near you. We made great strides during the quarter toward the market launch of our beer, with initial retail distribution in Kansas of our first production run. Our second run, which is much larger, is scheduled for late August. With our second run, we will be able to provide beer throughout our network of distributors while signing on new distributors, increasing our distribution network and footprint. This distribution network is key to positioning our beer to compete within the $110+ billion beer market.”

Ross continued, “We have experienced some seasonality challenges in June and July of 2024 with our Champion safe business, which is common within the outdoor durable goods industry. Meanwhile, we will continue to posture our legacy safe business for growth while incorporating operational improvements to increase efficiencies and reduce expenses. With improved operational efficiencies and new products, we can sell safes at higher margins which should also drive profitability in 2025.”

About American Rebel Holdings, Inc.

American Rebel Holdings, Inc. (NASDAQ: AREB) has operated primarily as a designer, manufacturer and marketer of branded safes and personal security and self-defense products and has recently transitioned into the beverage industry through the introduction of American Rebel Beer. The Company also designs and produces branded apparel and accessories. To learn more, visit www.americanrebel.com and www.americanrebelbeer.com. For investor information, visit www.americanrebel.com/investor-relations.

Non-GAAP Financial Measures

American Rebel Holdings, Inc reports its financial results in accordance with accounting principles generally accepted in the U.S. (GAAP). In addition, the Company is providing in this news release financial information in the form of Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, other income/expense, stock compensation, restructuring, receivables adjustment and non-cash lease charges) and Adjusted Net Loss. Management believes these non-GAAP financial measures are useful to investors and lenders in evaluating the overall financial health of the Company in that they allow for greater transparency of additional financial data routinely used by management to evaluate performance. Adjusted EBITDA can be useful for investors or lenders as an indicator of available earnings. Non-GAAP financial measures should not be considered in isolation from, or as an alternative to, the financial information prepared in accordance with GAAP.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. American Rebel Holdings, Inc., (NASDAQ: AREB; AREBW) (the “Company,” "American Rebel,” “we,” “our” or “us”) desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "forecasts" "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "could," "target," "potential," "is likely," "expect" and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements primarily on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include continued increase in revenues, actual receipt of funds under the Reg A Offering, effects of the offering on the trading price of our securities, implied or perceived benefits resulting from the receipt of funds from the offering, actual launch timing and availability of American Rebel Beer, our ability to effectively execute our business plan, and the Risk Factors contained within our filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2023. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by law.

Reconciliation of Net Income (Loss) attributable to American Rebel Holdings, Inc.,
to Adjusted EBITDA for the Three Months Ended June 30, 2024
Unaudited

Net Loss		$	(5,253,004	)
Interest expense			1,055,282
Depreciation and amortization			30,681
EBITDA		$	(4,167,041	)
Stock compensation expense			1,344,125
Loss on settlement of debt instrument			250,000
Adjusted EBITDA (Non-GAAP)		$	(2,572,916	)

Reconciliation of Net Income (Loss) attributable to American Rebel Holdings, Inc.,
to Adjusted EBITDA for the Six Months Ended June 30, 2024
Unaudited

Net Loss		$	(7,954,282	)
Interest expense			1,479,141
Depreciation and amortization			54,996
EBITDA		$	(6,420,145	)
Stock compensation expense			2,478,125
Loss on settlement of debt instrument			250,000
Adjusted EBITDA (Non-GAAP)		$	(3,692,020	)

Company Contact:
info@americanrebel.com

Investor Relations:
Brian Prenoveau
MZ North America
+1 (561) 489-5315
AREB@mzgroup.us

FAQ

What was American Rebel's (AREBW) revenue for Q2 2024?

American Rebel's revenue for Q2 2024 was $3.3 million.

When will American Rebel Beer enter full-scale production?

American Rebel Beer is scheduled to enter full-scale production in August 2024.

How many retail locations carry American Rebel Light Beer in Kansas?

As of August 2024, American Rebel Light Beer is available in over 150 retail locations throughout Kansas.

What was American Rebel's (AREBW) Adjusted EBITDA for H1 2024?

American Rebel's Adjusted EBITDA for H1 2024 was $(3.7) million.

In which states has American Rebel secured beer distribution partnerships?

American Rebel has secured beer distribution partnerships in Ohio, Tennessee, Kansas, and Connecticut.