BETTER CHOICE PROVIDES POSITIVE PRELIMINARY RESULTS FOR THE SECOND QUARTER OF 2024

Rhea-AI Summary

Better Choice Company Inc. (NYSE American: BTTR) has announced positive preliminary financial results for Q2 2024. The pet health and wellness company estimates:

- Net income of $2.7 million for Q2 2024, a 190% increase year-over-year (YOY)
- Basic EPS of $2.98 per share for Q2 2024, a 170% increase YOY
- Halo, its premium pet food asset, breaking even with $0.02 million Adj. EBITDA for H1 2024, a 101% increase YOY

The company also reported a 20% improvement in cash used in operating activities for H1 2024. CEO Kent Cunningham attributed the improved performance to debt retirement, strong topline sales growth, and renewed focus on the Halo brand.

Positive

• Net income increased 190% YOY to $2.7 million in Q2 2024
• Basic EPS grew 170% YOY to $2.98 per share in Q2 2024
• Halo subsidiary achieved break-even Adj. EBITDA of $0.02 million in H1 2024, a 101% increase YOY
• Cash used in operating activities improved by 20% in H1 2024
• Senior debt retired, contributing to improved financial performance

Negative

• Net loss of $0.2 million reported for H1 2024, despite improvement from previous year
• Cash used in operating activities still negative at $1.0 million for H1 2024

Estimates $2.7 Million Net Income for Second Quarter 2024, a 190% Increase YOY
Estimates Basic EPS of $2.98 per share for Second Quarter 2024, a 170% Increase YOY
Estimates Halo Breaks Even at $0.02 Million Adj. EBITDA for First Half 2024, a 101% Increase YOY*

TAMPA, FL, Aug. 02, 2024 (GLOBE NEWSWIRE) -- Better Choice Company Inc. (NYSE American: BTTR) (the “Company” or “Better Choice”), a pet health and wellness company, today announced preliminary, key financial metrics guidance for the three months and six months ended June 30, 2024.

Based on preliminary unaudited results, Better Choice anticipates reporting strong performance for the second quarter of 2024, highlighting estimated accelerated business growth:

• Net income of $2.7 million for the three months ended June 30, 2024, an increase of 190% year-over-year (“YOY”), and net loss of ($0.2) million for the six months ended June 30, 2024, an increase of 97% YOY.
• Cash used in operating activities of ($1.0) million for the six months ended June 30, 2024, a 20% improvement YOY
• Halo, Purely for Pets, Inc. (“Halo”), the Company’s premium pet food asset, breaks even with Adjusted EBITDA (“Adj. EBITDA”) of $0.02 Million for the first half of 2024, a 101% increase YOY.*
  

"With the retirement of our senior debt and strong topline sales growth, our first half performance has improved significantly versus year ago,” said Kent Cunningham, Chief Executive Officer of Better Choice. “Our ability to improve shareholder value with speed this quarter is a testament to the organization’s renewed focus on building the Halo brand and gives us confidence that our strategic pivots are taking root. We remain committed to strengthening the business and creating long-term value for Better Choice and its stakeholders.”

The estimated net income, subsidiary Adj. EBITDA* and Basic EPS results for the three months and six months ended June 30, 2024 are preliminary and unaudited and are subject to completion of the Company’s financial closing procedures. The Company’s independent registered public accounting firm has not conducted an audit or review of and does not express an opinion or any other form of assurance with respect to, the preliminary unaudited net income results. It is possible that the Company or its independent registered public accounting firm may identify items that require the Company to make adjustments to the preliminary estimates of net income, Adj. EBITDA* and/or Basic EPS set forth in this press release and those changes could be material. Accordingly, undue reliance should not be placed on the preliminary estimates.

¹ Adjusted EBITDA is a non-GAAP measure. Reconciliation of the Company’s consolidated Adjusted EBITDA to net income/loss, the most directly comparable GAAP financial measure, will be set forth in a reconciliation table accompanying the Company’s release of its final results on or before August 14, 2024. Halo, Purely for Pets, Inc., is a wholly-owned subsidiary of Better Choice Company, Inc.

About Better Choice Company Inc.

Better Choice Company Inc. is a pet health and wellness company focused on providing pet products and services that help dogs and cats live healthier, happier and longer lives. We offer a broad portfolio of pet health and wellness products for dogs and cats sold under our Halo brand across multiple forms, including foods, treats, toppers, dental products, chews, and supplements. We have a demonstrated, multi-decade track record of success and are well positioned to benefit from the mainstream trends of growing pet humanization and consumer focus on health and wellness. Our products consist of kibble and canned dog and cat food, freeze-dried raw dog food and treats, vegan dog food and treats, oral care products and supplements. Halo’s core products are made with high-quality, thoughtfully sourced ingredients for natural, science-based nutrition. Each innovative recipe is formulated with leading veterinary and nutrition experts to deliver optimal health. For more information, please visit https://www.betterchoicecompany.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. The Company has based these forward-looking statements largely 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. Some or all of the results anticipated by these forward-looking statements may not be achieved. Further information on the Company’s risk factors is contained in our filings with the SEC. 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. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Company Contact:
Better Choice Company Inc.
Kent Cunningham, CEO

Investor Contact:
KCSA Strategic Communications
Valter Pinto, Managing Director
T: 212-896-1254
Valter@KCSA.com

FAQ

What was Better Choice Company's (BTTR) estimated net income for Q2 2024?

Better Choice Company (BTTR) estimates a net income of $2.7 million for Q2 2024, representing a 190% increase year-over-year.

How much did Better Choice's (BTTR) Basic EPS grow in Q2 2024?

Better Choice (BTTR) estimates Basic EPS of $2.98 per share for Q2 2024, a 170% increase compared to the same period last year.

What was the Adjusted EBITDA for Better Choice's (BTTR) Halo subsidiary in H1 2024?

Halo, Better Choice's (BTTR) premium pet food subsidiary, achieved break-even with an estimated Adjusted EBITDA of $0.02 million for the first half of 2024, a 101% increase year-over-year.

How did Better Choice (BTTR) improve its cash used in operating activities in H1 2024?

Better Choice (BTTR) reported a 20% improvement in cash used in operating activities, reducing it to $1.0 million for the six months ended June 30, 2024.