BRC Inc. Reports Second Quarter 2023 Financial Results
- Black Rifle Coffee Company reports a strong 39% increase in net revenue, reaching $91.9 million in Q2 2023.
- The company achieves positive adjusted EBITDA, indicating improved financial performance.
- Black Rifle Coffee Company launches partnerships with a second national grocery customer and two additional regional grocery chains, expanding their distribution channels.
- The company refinances its credit facility, adding additional liquidity to support future growth.
- Black Rifle Coffee Company reports a net loss of $14.7 million in Q2 2023.
Net Revenue Increases
Achieves Positive Adjusted EBITDA for the Second Quarter, Reaffirms Profitability for the Full Year
Launches Second National Grocery Customer and Two Additional Regional Grocery Chains
Refinances Credit Facility Adding Additional Liquidity
“The Black Rifle Coffee Company brand has never been stronger,” said BRCC Founder and Chief Executive Officer Evan Hafer. “Maintaining an authentic connection with our customers has and always will be core to Black Rifle's mission. This unique connection with our customers is why we are growing distribution and new customers across both our FDM and convenience store channels. Our brand is resonating across the country, in cities and small towns alike and we are gaining distribution and doors to meet our customers where they shop every day. Additionally, our aided brand awareness has jumped by almost 10 percentage points, to
“As we alluded to last quarter, we are pleased to announce we are shipping bagged coffee and k-cups to our second national grocery chain as well as two regional chains. We have a strong pipeline of additional retailers and expect our FDM business to continue to gain distribution and share for the next few years. In addition, as of the end of the second quarter, BRCC's RTD coffee was available in over 82,000 doors as we are making progress on our 2023 goal of having our RTD products available in 100,000 doors.”
Second Quarter 2023 Financial Details
-
Net revenue of
$91.9 million 39% year-over-year. -
Gross profit increased year-over-year to
$32.2 million 35.0% gross margin. -
Net loss of
$14.7 million -
Adjusted EBITDA (non-GAAP) of
$0.1 million $(5.1) million $(10.5) million
Year-to-Date 2023 Financial Details
-
Net revenue of
$175.4 million 33% year-over-year. -
Gross profit increased year-over-year to
$59.7 million 34.0% gross margin. -
Net loss of
$32.0 million -
Adjusted EBITDA (non-GAAP) of
$(5.1) million $(16.8) million
Second Quarter 2023 Results
Second quarter 2023 revenue increased
Gross profit increased to
Marketing expenses decreased
Salaries, wages and benefits increased
General and administrative (G&A) expenses increased
Net loss for the second quarter of 2023 was
Refinancing of Credit Facility
After the end of the quarter, BRCC refinanced the Company’s credit facility to provide expanded liquidity to continue to support the growth of the business. The facility consists of an ABL Credit Agreement and a Term Loan Credit Agreement, which collectively provide aggregate borrowing capacity of up to
Financial Outlook
BRC Inc. provides annual guidance based on current market conditions and expectations for revenue, gross margin and Adjusted EBITDA, which is a non-GAAP financial measure. We expect 2023 results to be within the previously issued guidance range but at the lower end of the range across all three metrics, representing low to mid
The guidance provided above constitutes forward-looking statements and actual results may differ materially. Refer to the “Forward-Looking Statements” safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
We have not reconciled forward-looking Adjusted EBITDA to its most directly comparable GAAP measure, net income (loss), because we cannot predict with reasonable certainty the ultimate outcome of certain components of such reconciliations, including market-related assumptions that are not within our control, or others that may arise, without unreasonable effort. For these reasons, we are unable to assess the probable significance of the unavailable information, which could materially impact the amount of future net loss. See “Non-GAAP Financial Measures” for additional important information regarding Adjusted EBITDA.
Conference Call
A conference call to discuss the Company’s second quarter results is scheduled for August 10, 2023, at 4:30 p.m. ET. Those who wish to participate in the call may do so by dialing (877) 407-0609 or (201) 689-8541 for international callers. A webcast of the call will be available on the investor relations page of the Company’s website at ir.blackriflecoffee.com. For those unable to participate in the conference call, a replay will be available after the conclusion of the call through August 17, 2023. The
About BRC Inc.
Black Rifle Coffee Company (BRCC) is a veteran-founded coffee company serving premium coffee to people who love America. Founded in 2014 by Green Beret Evan Hafer, Black Rifle develops their explosive roast profiles with the same mission focus they learned while serving in the military. BRCC is committed to supporting veterans, active-duty military, first responders and the American way of life.
To learn more about BRCC, visit www.blackriflecoffee.com, follow BRCC on social media, or subscribe to Coffee or Die Magazine's daily newsletter at https://coffeeordie.com/presscheck-signup.
Forward-Looking Statements
This press release contains forward-looking statements about BRC Inc. and its industry that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this press release, including statement’s regarding the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s financial condition, liquidity, prospects, growth, strategies, future market conditions, developments in the capital and credit markets and expected future financial performance, as well as any information concerning possible or assumed future results of operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar expressions, but the absence of these words does not mean that a statement is not forward-looking. The events and circumstances reflected in the Company’s forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Factors that may cause such forward-looking statements to differ from actual results include, but are not limited to: competition and our ability to grow and manage growth sustainably and retain our key employees; failure to achieve profitability; negative publicity affecting our brand and reputation, or the reputation of key employees, which may adversely affect our operating results; failure by us to maintain our message as a supportive member of the veteran and military communities and any other factors which may negatively affect the perception of our brand; our limited operating history, which may make it difficult to successfully execute our strategic initiatives and accurately evaluate future risks and challenges; failed marketing campaigns, which may cause us to incur costs without attracting new customers or realizing higher revenue; failure to attract new customers or retain existing customers; risks related to the use of social media platforms, including dependence on third-party platforms; failure to provide high-quality customer experience to retail partners and end users, including as a result of production defaults, or issues, including due to failures by one or more of our co-manufacturers, affecting the quality of our products, which may adversely affect our brand; decrease in success of the direct to consumer revenue channel; loss of one or more co-manufacturers, or delays, quality, or other production issues, including labor-related production issues at any of our co-manufacturers; failure to effectively manage or distribute our products through our wholesale business partners; failure by third parties involved in the supply chain of coffee, store supplies or merchandise to produce or deliver products, including as a result of ongoing supply chain disruptions, or our failure to effectively manage such third parties; changes in the market for high-quality coffee beans and other commodities; fluctuations in costs and availability of real estate, labor, raw materials, equipment, transportation or shipping; loss of confidential data from customers and employees, which may subject us to litigation, liability or reputational damage; failure to successfully compete with other producers and retailers of coffee; failure to successfully open new Black Rifle Coffee Outposts, including failure to timely proceed through permitting and other development processes, or the failure of any new or existing Outposts to generate sufficient sales; failure to properly manage our rapid growth and relationships with various business partners; failure to protect against software or hardware vulnerabilities; failure to build brand recognition using our intellectual properties or otherwise; shifts in consumer spending, lack of interest in new products or changes in brand perception upon evolving consumer preferences and tastes; failure to adequately maintain food safety or quality and comply with food safety regulations; failure to successfully integrate into new domestic and international markets; risks related to leasing space subject to long-term non-cancelable leases and with respect to real property; failure of our franchise partners to successfully manage their franchises; failure to raise additional capital to develop the business; risks related to supply chain disruptions; risks related to unionization of employees; failure to comply with federal state and local laws and regulations; inability to maintain the listing of our Class A Common Stock on the New York Stock Exchange; and other risks and uncertainties indicated in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission (the “SEC”) on March 15, 2023 including those set forth under “Item 1A. Risk Factors” included therein, as well as in our other filings with the SEC. Such forward-looking statements are based on information available as of the date of this press release and the Company’s current beliefs and expectations concerning future developments and their effects on the Company. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not place undue reliance on these forward-looking statements as predications of future events. Although the Company believes that it has a reasonable basis for each forward-looking statement contained in this press release, the Company cannot guarantee that the future results, growth, performance or events or circumstances reflected in these forward-looking statements will be achieved or occur at all. These forward-looking statement speak only as of the date of this press release. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
BRC Inc. |
||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(in thousands, except share and per share amounts) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||
Revenue, net |
$ |
91,947 |
|
|
$ |
66,365 |
|
|
$ |
175,437 |
|
|
$ |
132,201 |
|
|
Cost of goods sold |
|
59,741 |
|
|
|
43,809 |
|
|
|
115,720 |
|
|
|
86,432 |
|
|
Gross profit |
|
32,206 |
|
|
|
22,556 |
|
|
|
59,717 |
|
|
|
45,769 |
|
|
Operating expenses |
|
|
|
|
|
|
|
|||||||||
Marketing and advertising |
|
7,013 |
|
|
|
9,026 |
|
|
|
14,157 |
|
|
|
17,177 |
|
|
Salaries, wages and benefits |
|
18,356 |
|
|
|
15,539 |
|
|
|
38,180 |
|
|
|
31,557 |
|
|
General and administrative |
|
19,296 |
|
|
|
14,831 |
|
|
|
37,054 |
|
|
|
29,718 |
|
|
Impairment on assets held for sale |
|
1,202 |
|
|
|
— |
|
|
|
1,202 |
|
|
|
— |
|
|
Total operating expenses |
|
45,867 |
|
|
|
39,396 |
|
|
|
90,593 |
|
|
|
78,452 |
|
|
Operating loss |
|
(13,661 |
) |
|
|
(16,840 |
) |
|
|
(30,876 |
) |
|
|
(32,683 |
) |
|
Non-operating income (expense) |
|
|
|
|
|
|
|
|||||||||
Interest expense, net |
|
(791 |
) |
|
|
(176 |
) |
|
|
(1,114 |
) |
|
|
(666 |
) |
|
Other income (expense), net |
|
(156 |
) |
|
|
(56 |
) |
|
|
117 |
|
|
|
293 |
|
|
Change in fair value of earn-out liability |
|
— |
|
|
|
(38,553 |
) |
|
|
— |
|
|
|
(209,651 |
) |
|
Change in fair value of warrant liability |
|
— |
|
|
|
5,435 |
|
|
|
— |
|
|
|
(56,675 |
) |
|
Change in fair value of derivative liability |
|
— |
|
|
|
5,172 |
|
|
|
— |
|
|
|
(2,335 |
) |
|
Total non-operating expenses |
|
(947 |
) |
|
|
(28,178 |
) |
|
|
(997 |
) |
|
|
(269,034 |
) |
|
Loss before income taxes |
|
(14,608 |
) |
|
|
(45,018 |
) |
|
|
(31,873 |
) |
|
|
(301,717 |
) |
|
Income tax expense |
|
57 |
|
|
|
67 |
|
|
|
113 |
|
|
|
195 |
|
|
Net loss |
$ |
(14,665 |
) |
|
$ |
(45,085 |
) |
|
$ |
(31,986 |
) |
|
$ |
(301,912 |
) |
|
Less: Net loss attributable to non-controlling interest |
|
(10,437 |
) |
|
|
(34,330 |
) |
|
|
(22,958 |
) |
|
|
(228,236 |
) |
|
Net loss attributable to BRC Inc. |
$ |
(4,228 |
) |
|
$ |
(10,755 |
) |
|
$ |
(9,028 |
) |
|
$ |
(73,676 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Net loss per share attributable to Class A Common Stock(1) |
|
|
|
|
|
|
|
|||||||||
Basic and diluted |
$ |
(0.07 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.15 |
) |
|
$ |
(1.49 |
) |
|
Weighted-average shares of Class A common stock outstanding(1) |
|
|
|
|
|
|
|
|||||||||
Basic and diluted |
|
58,741,717 |
|
|
|
49,771,104 |
|
|
|
58,607,290 |
|
|
|
47,789,909 |
|
|
(1) For the six months ended June 30, 2022, net loss per share of Class A Common Stock and weighted-average shares of Class A Common Stock outstanding is representative of the period from February 9, 2022 through June 30, 2022, the period following the Business Combination. Shares of Class B Common Stock do not participate in the earnings or losses of the Company and are therefore not participating securities. As such, separate presentation of basic and diluted loss per share of Class B Common Stock under the two-class method has not been presented. |
BRC Inc. |
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
(in thousands, except share and par value amounts) |
||||||||
|
June 30, |
|
December 31, |
|||||
|
2023 |
|
2022 |
|||||
|
(unaudited) |
|
(audited) |
|||||
Assets |
|
|
|
|||||
Current assets: |
|
|
|
|||||
Cash and cash equivalents |
$ |
19,782 |
|
|
$ |
38,990 |
|
|
Accounts receivable, net |
|
24,395 |
|
|
|
22,337 |
|
|
Inventories, net |
|
109,720 |
|
|
|
77,183 |
|
|
Prepaid expenses and other current assets |
|
8,848 |
|
|
|
6,783 |
|
|
Assets held for sale |
|
4,043 |
|
|
|
— |
|
|
Total current assets |
|
166,788 |
|
|
|
145,293 |
|
|
Property, plant and equipment, net |
|
63,533 |
|
|
|
59,451 |
|
|
Operating lease, right-of-use asset |
|
33,969 |
|
|
|
20,050 |
|
|
Identifiable intangibles, net |
|
397 |
|
|
|
225 |
|
|
Other |
|
298 |
|
|
|
315 |
|
|
Total assets |
|
264,985 |
|
|
|
225,334 |
|
|
|
|
|
|
|||||
Liabilities and stockholders' equity |
|
|
|
|||||
Current liabilities: |
|
|
|
|||||
Accounts payable |
|
37,497 |
|
|
|
12,429 |
|
|
Accrued liabilities |
|
31,617 |
|
|
|
36,660 |
|
|
Deferred revenue and gift card liability |
|
10,075 |
|
|
|
9,505 |
|
|
Current maturities of long-term debt, net |
|
2,083 |
|
|
|
2,143 |
|
|
Current operating lease liability |
|
1,964 |
|
|
|
1,360 |
|
|
Current maturities of finance lease obligations |
|
95 |
|
|
|
95 |
|
|
Current liabilities related to assets held for sale |
|
2,151 |
|
|
|
— |
|
|
Total current liabilities |
|
85,482 |
|
|
|
62,192 |
|
|
Non-current liabilities: |
|
|
|
|||||
Long-term debt, net |
|
75,795 |
|
|
|
47,017 |
|
|
Finance lease obligations, net of current maturities |
|
171 |
|
|
|
221 |
|
|
Operating lease liability |
|
33,631 |
|
|
|
19,466 |
|
|
Other non-current liabilities |
|
602 |
|
|
|
502 |
|
|
Total non-current liabilities |
|
110,199 |
|
|
|
67,206 |
|
|
Total liabilities |
|
195,681 |
|
|
|
129,398 |
|
|
Commitments and Contingencies |
|
|
|
|||||
Stockholders' equity: |
|
|
|
|||||
Preferred stock, |
|
— |
|
|
|
— |
|
|
Class A common stock, |
|
5 |
|
|
|
5 |
|
|
Class B common stock, |
|
16 |
|
|
|
16 |
|
|
Class C common stock, |
|
— |
|
|
|
— |
|
|
Additional paid in capital |
|
134,953 |
|
|
|
129,508 |
|
|
Accumulated deficit |
|
(112,761 |
) |
|
|
(103,733 |
) |
|
Total BRC Inc.'s stockholders' equity |
|
22,213 |
|
|
|
25,796 |
|
|
Non-controlling interests |
|
47,091 |
|
|
|
70,140 |
|
|
Total stockholders' equity |
|
69,304 |
|
|
|
95,936 |
|
|
Total liabilities and stockholders' equity |
$ |
264,985 |
|
|
$ |
225,334 |
|
|
BRC Inc. |
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(in thousands, unaudited) |
||||||||
|
Six Months Ended June 30, |
|||||||
|
2023 |
|
2022 |
|||||
Operating activities |
|
|
|
|||||
Net loss |
$ |
(31,986 |
) |
|
$ |
(301,912 |
) |
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|||||
Depreciation and amortization |
|
3,352 |
|
|
|
2,015 |
|
|
Equity-based compensation |
|
5,049 |
|
|
|
3,238 |
|
|
Non-employee equity-based compensation |
|
— |
|
|
|
739 |
|
|
Amortization of debt issuance costs |
|
52 |
|
|
|
261 |
|
|
Loss on sale of assets |
|
128 |
|
|
|
— |
|
|
Impairment on assets held for sale |
|
1,202 |
|
|
|
— |
|
|
Change in fair value of earn-out liability |
|
— |
|
|
|
209,651 |
|
|
Change in fair value of warrant liability |
|
— |
|
|
|
56,675 |
|
|
Change in fair value of derivative liability |
|
— |
|
|
|
2,335 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|||||
Accounts receivable, net |
|
(2,058 |
) |
|
|
(6,243 |
) |
|
Inventories, net |
|
(32,537 |
) |
|
|
(5,711 |
) |
|
Prepaid expenses and other assets |
|
(2,248 |
) |
|
|
(4,635 |
) |
|
Accounts payable |
|
22,112 |
|
|
|
(8,922 |
) |
|
Accrued liabilities |
|
(5,043 |
) |
|
|
(3,105 |
) |
|
Deferred revenue and gift card liability |
|
570 |
|
|
|
676 |
|
|
Operating lease liability |
|
850 |
|
|
|
257 |
|
|
Other liabilities |
|
100 |
|
|
|
145 |
|
|
Net cash used in operating activities |
|
(40,457 |
) |
|
|
(54,536 |
) |
|
Investing activities |
|
|
|
|||||
Purchases of property, plant and equipment |
|
(10,009 |
) |
|
|
(9,400 |
) |
|
Proceeds from sale of equipment |
|
186 |
|
|
|
— |
|
|
Net cash used in investing activities |
|
(9,823 |
) |
|
|
(9,400 |
) |
|
Financing activities |
|
|
|
|||||
Proceeds from issuance of long-term debt, net of cash paid for debt issuance costs of |
|
199,000 |
|
|
|
7,597 |
|
|
Repayment of long-term debt |
|
(167,783 |
) |
|
|
(23,617 |
) |
|
Financing lease obligations |
|
(50 |
) |
|
|
13 |
|
|
Repayment of promissory note |
|
(400 |
) |
|
|
— |
|
|
Redemption of common units |
|
305 |
|
|
|
— |
|
|
Distribution and redemption of Series A preferred equity |
|
— |
|
|
|
(127,853 |
) |
|
Proceeds from Business Combination, including PIPE investment |
|
— |
|
|
|
337,957 |
|
|
Payment of Business Combination costs |
|
— |
|
|
|
(31,638 |
) |
|
Redemption of Class A and Class B units |
|
— |
|
|
|
(20,145 |
) |
|
Redemption of incentive units |
|
— |
|
|
|
(3,627 |
) |
|
Net cash provided by financing activities |
|
31,072 |
|
|
|
138,687 |
|
|
Net increase (decrease) in cash and cash equivalents |
|
(19,208 |
) |
|
|
74,751 |
|
|
Beginning cash and cash equivalents |
|
38,990 |
|
|
|
18,334 |
|
|
Ending cash and cash equivalents |
$ |
19,782 |
|
|
$ |
93,085 |
|
|
BRC Inc. |
||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) |
||||||
(in thousands, unaudited) |
||||||
|
Six Months Ended June 30, |
|||||
|
2023 |
|
2022 |
|||
Non-cash operating activities |
|
|
|
|||
Recognition of right-of-use operating lease assets |
$ |
13,919 |
|
$ |
10,392 |
|
|
|
|
|
|||
Non-cash investing and financing activities |
|
|
|
|||
Accrued capital expenditures |
|
2,956 |
|
|
23 |
|
Series A preferred exchange for PIPE shares |
|
— |
|
|
26,203 |
|
Series A preferred equity amortization |
|
— |
|
|
5,390 |
|
|
|
|
|
|||
Supplemental cash flow information |
|
|
|
|||
Cash paid for income taxes |
|
422 |
|
|
233 |
|
Cash paid for interest |
$ |
1,324 |
|
$ |
531 |
|
KEY OPERATING AND FINANCIAL METRICS |
||||||||||||
(unaudited) |
||||||||||||
Revenue by Sales Channel |
|
|
||||||||||
(in thousands) |
|
|
||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||
|
2023 |
2022 |
2023 |
2022 |
||||||||
Wholesale |
$ |
50,010 |
$ |
23,971 |
$ |
90,007 |
$ |
45,926 |
||||
Direct to Consumer |
|
34,586 |
|
36,962 |
|
71,366 |
|
75,294 |
||||
Outpost |
|
7,351 |
|
5,432 |
|
14,064 |
|
10,981 |
||||
Total net sales |
$ |
91,947 |
$ |
66,365 |
$ |
175,437 |
$ |
132,201 |
||||
Key Operational Metrics |
|
|
||||||||||
|
Six Months Ended June 30, |
|||||||||||
|
2023 |
|
2022 |
|||||||||
Wholesale Doors |
|
8,770 |
|
3,730 |
||||||||
RTD Doors |
|
82,410 |
|
66,770 |
||||||||
DTC Subscribers |
|
239,500 |
|
287,800 |
||||||||
Outposts |
|
|
||||||||||
Company-owned stores |
|
17 |
|
10 |
||||||||
Franchise stores |
|
14 |
|
10 |
||||||||
Total Outposts |
|
31 |
|
20 |
||||||||
Non-GAAP Financial Measures
To evaluate the performance of our business, we rely on both our results of operations recorded in accordance with generally accepted accounting principles in
A reconciliation of net loss, the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA is set forth below:
Reconciliation of Net Loss to Adjusted EBITDA |
|
|
||||||||||||||
(amounts in thousands) |
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||
Net loss |
$ |
(14,665 |
) |
|
$ |
(45,085 |
) |
|
$ |
(31,986 |
) |
|
$ |
(301,912 |
) |
|
Interest expense |
|
791 |
|
|
|
176 |
|
|
|
1,114 |
|
|
|
666 |
|
|
Tax expense |
|
57 |
|
|
|
67 |
|
|
|
113 |
|
|
|
195 |
|
|
Depreciation and amortization |
|
1,633 |
|
|
|
1,027 |
|
|
|
3,352 |
|
|
|
2,015 |
|
|
EBITDA |
$ |
(12,184 |
) |
|
$ |
(43,815 |
) |
|
$ |
(27,407 |
) |
|
$ |
(299,036 |
) |
|
Non-cash fair value adjustments |
|
|
|
|
|
|
|
|||||||||
Change in fair value of earn-out liability expense(1) |
|
— |
|
|
|
38,553 |
|
|
|
— |
|
|
|
209,651 |
|
|
Change in fair value of warrant liability expense(2) |
|
— |
|
|
|
(5,435 |
) |
|
|
— |
|
|
|
56,675 |
|
|
Change in fair value of derivative liability(3) |
|
— |
|
|
|
(5,172 |
) |
|
|
— |
|
|
|
2,335 |
|
|
EBITDA, excluding non-cash fair value adjustments |
$ |
(12,184 |
) |
|
$ |
(15,869 |
) |
|
$ |
(27,407 |
) |
|
$ |
(30,375 |
) |
|
Equity-based compensation(4) |
|
2,543 |
|
|
|
1,363 |
|
|
|
5,049 |
|
|
|
3,977 |
|
|
System implementation costs(5) |
|
1,171 |
|
|
|
276 |
|
|
|
1,862 |
|
|
|
528 |
|
|
Transaction expenses(6) |
|
— |
|
|
|
37 |
|
|
|
— |
|
|
|
1,020 |
|
|
Executive recruiting, relocation and sign-on bonus(7) |
|
758 |
|
|
|
1,338 |
|
|
|
1,067 |
|
|
|
1,657 |
|
|
Write-off of site development costs(8) |
|
277 |
|
|
|
— |
|
|
|
1,062 |
|
|
|
— |
|
|
Strategic initiative related costs(9) |
|
282 |
|
|
|
1,709 |
|
|
|
1,505 |
|
|
|
5,259 |
|
|
Non-routine legal expense(10) |
|
3,240 |
|
|
|
458 |
|
|
|
4,246 |
|
|
|
458 |
|
|
RTD start-up and production issues(11) |
|
595 |
|
|
|
— |
|
|
|
2,394 |
|
|
|
— |
|
|
Impairment for assets held for sale(12) |
|
1,202 |
|
|
|
— |
|
|
|
1,202 |
|
|
|
— |
|
|
Contract termination costs(13) |
|
188 |
|
|
|
— |
|
|
|
730 |
|
|
|
— |
|
|
Restructuring fees and related costs(14) |
|
2,075 |
|
|
|
210 |
|
|
|
3,209 |
|
|
|
697 |
|
|
Adjusted EBITDA |
$ |
147 |
|
|
$ |
(10,478 |
) |
|
$ |
(5,081 |
) |
|
$ |
(16,779 |
) |
|
(1) |
Represents the non-cash expense recognized to remeasure the earn-out liability to fair value upon vesting events. The change in fair value was a result of the increase of the closing price of our publicly traded common stock subsequent to the closing of our business combination. |
|
(2) |
Represents non-cash expense recognized to remeasure the warrant liability to fair value upon redemption. The change in fair value was a result of the increase of the closing price of our publicly traded common stock subsequent to the closing of our business combination. |
|
(3) |
Represents non-cash expense recognized to remeasure the derivative liability to fair value upon the vesting event. The change in fair value was a result of the increase of the closing price of our publicly traded common stock subsequent to the closing of our business combination. |
|
(4) |
Represents the non-cash expense related to our equity-based compensation arrangements for employees, directors, consultants and wholesale channel partner. |
|
(5) |
Represents non-capitalizable costs associated with the implementation of our enterprise-wide resource planning (ERP) system. |
|
(6) |
Represents expenses related to becoming a public company such as public company readiness, consulting and other fees that are not related to core operations. |
|
(7) |
Represents nonrecurring payments made for executive recruitment, relocation, and sign-on bonuses. |
|
(8) |
Represents the write-off of development costs for abandoned retail locations. |
|
(9) |
Represents nonrecurring third-party consulting costs related to the planning and execution of our growth and productivity strategic initiatives. |
|
(10) |
Represents legal costs and fees incurred in connection with certain non-routine legal disputes consisting of certain claims relating to deSPAC warrants and a commercial dispute with a former consultant resulting from the Company in-housing certain activities. |
|
(11) |
Represents nonrecurring, non-cash costs and expense incurred as a result of our RTD start-up and production issue. |
|
(12) |
Represents the adjustment recorded to recognize assets held for sale at their estimate net realizable value less estimated cost to sell. |
|
(13) |
Represents nonrecurring costs incurred for early termination of software and service contracts. |
|
(14) |
Represents restructuring advisory fees, severance, and other related costs (previously included in footnote (7) and footnote (9). |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230810859269/en/
Investors
Tanner Doss: IR@BlackRifleCoffee.com
ICR for BRCC: BlackrifleIR@icrinc.com
Source: BRC Inc.
