Traeger Announces Third Quarter Fiscal 2024 Results
Traeger (NYSE: COOK) announced its Q3 FY 2024 results, showing a 3.7% increase in total revenue to $122.1 million. Grill revenues surged by 32.5% to $74.9 million, while gross margin improved by 440 basis points to 42.3%. The company reported a net loss of $19.8 million, slightly higher than last year's $19.3 million. However, Adjusted EBITDA rose significantly to $12.3 million from $4.7 million. North America revenue increased by 10.4%, but Rest of World revenue fell by 40.1%. Consumables and accessories revenues decreased by 11.2% and 31.3%, respectively. Traeger updated its FY 2024 guidance, expecting total revenue between $595 million and $605 million, gross margin between 41.8% and 42.3%, and Adjusted EBITDA between $78 million and $81 million.
Traeger (NYSE: COOK) ha annunciato i risultati del terzo trimestre dell'anno fiscale 2024, mostrando un aumento del 3.7% del fatturato totale a 122,1 milioni di dollari. I fatturati delle griglie sono aumentati del 32,5% a 74,9 milioni di dollari, mentre il margine lordo è migliorato di 440 punti base, raggiungendo il 42,3%. L'azienda ha riportato una perdita netta di 19,8 milioni di dollari, leggermente superiore ai 19,3 milioni dello scorso anno. Tuttavia, l'EBITDA rettificato è aumentato significativamente a 12,3 milioni di dollari, rispetto ai 4,7 milioni precedenti. I ricavi del Nord America sono aumentati del 10,4%, ma i ricavi del resto del mondo sono diminuiti del 40,1%. I ricavi da consumabili e accessori sono diminuiti dell'11,2% e del 31,3%, rispettivamente. Traeger ha aggiornato le sue previsioni per l'anno fiscale 2024, prevedendo un fatturato totale tra i 595 milioni e i 605 milioni di dollari, un margine lordo compreso tra il 41,8% e il 42,3%, e un EBITDA rettificato tra i 78 milioni e gli 81 milioni di dollari.
Traeger (NYSE: COOK) anunció los resultados del tercer trimestre del año fiscal 2024, mostrando un aumento del 3.7% en los ingresos totales hasta 122.1 millones de dólares. Los ingresos por parrillas se dispararon un 32.5% hasta 74.9 millones de dólares, mientras que el margen bruto mejoró en 440 puntos básicos hasta el 42.3%. La empresa reportó una pérdida neta de 19.8 millones de dólares, ligeramente superior a los 19.3 millones del año pasado. Sin embargo, el EBITDA ajustado aumentó significativamente a 12.3 millones de dólares desde 4.7 millones. Los ingresos de América del Norte aumentaron un 10.4%, pero los ingresos del resto del mundo cayeron un 40.1%. Los ingresos por consumibles y accesorios disminuyeron un 11.2% y un 31.3%, respectivamente. Traeger actualizó su guía para el año fiscal 2024, esperando ingresos totales entre 595 millones y 605 millones de dólares, un margen bruto entre 41.8% y 42.3%, y un EBITDA ajustado entre 78 millones y 81 millones de dólares.
트레거 (NYSE: COOK)는 2024 회계연도 3분기 실적을 발표하며 총 수익이 3.7% 증가하여 1억 2천2백10만 달러에 달했다고 밝혔습니다. 그릴 수익은 32.5% 증가하여 7천4백90만 달러에 이르렀으며, 총 마진은 440 베이시스 포인트 개선되어 42.3%에 도달했습니다. 회사는 순손실이 1천9백80만 달러로 작년의 1천9백30만 달러보다 약간 증가했다고 보고했습니다. 그러나 조정 EBITDA는 470만 달러에서 1천2백30만 달러로 크게 증가했습니다. 북미의 수익은 10.4% 증가했지만, 세계 다른 지역의 수익은 40.1% 감소했습니다. 소모품과 액세서리 수익은 각각 11.2%와 31.3% 감소했습니다. 트레거는 2024 회계연도 가이드를 업데이트하며, 총 수익은 5억9천5백만 달러에서 6억5백만 달러, 총 마진은 41.8%에서 42.3%, 조정 EBITDA는 7천8백만 달러에서 8천1백만 달러 사이로 예상하고 있습니다.
Traeger (NYSE: COOK) a annoncé ses résultats du troisième trimestre de l'exercice 2024, révélant une augmentation de 3,7 % du chiffre d'affaires total à 122,1 millions de dollars. Les revenus des grills ont grimpé de 32,5 % à 74,9 millions de dollars, tandis que la marge brute s'est améliorée de 440 points de base pour atteindre 42,3 %. L'entreprise a signalé une perte nette de 19,8 millions de dollars, légèrement supérieure aux 19,3 millions de l'année précédente. Cependant, l'EBITDA ajusté a considérablement augmenté, atteignant 12,3 millions de dollars, contre 4,7 millions de dollars auparavant. Les revenus en Amérique du Nord ont augmenté de 10,4 %, tandis que ceux du reste du monde ont chuté de 40,1 %. Les revenus des consommables et des accessoires ont diminué respectivement de 11,2 % et de 31,3 %. Traeger a mis à jour ses prévisions pour l'exercice 2024, s'attendant à un chiffre d'affaires total entre 595 millions et 605 millions de dollars, une marge brute entre 41,8 % et 42,3 %, et un EBITDA ajusté entre 78 millions et 81 millions de dollars.
Traeger (NYSE: COOK) hat seine Ergebnisse für das 3. Quartal des Geschäftsjahres 2024 bekannt gegeben, die einen Umsatzanstieg von 3,7% auf 122,1 Millionen US-Dollar zeigen. Die Umsätze aus Grillen stiegen um 32,5% auf 74,9 Millionen US-Dollar, während der Bruttomarge um 440 Basispunkte auf 42,3% verbessert wurde. Das Unternehmen berichtete von einem Nettverlust von 19,8 Millionen US-Dollar, der geringfügig höher ist als der Verlust von 19,3 Millionen US-Dollar im Vorjahr. Dennoch stieg das bereinigte EBITDA erheblich auf 12,3 Millionen US-Dollar von 4,7 Millionen US-Dollar. Der Umsatz in Nordamerika stieg um 10,4%, während der Umsatz im Rest der Welt um 40,1% sank. Die Einnahmen aus Verbrauchsmaterialien und Zubehör sanken um 11,2% und 31,3% respectively. Traeger hat seine Prognosen für das Geschäftsjahr 2024 aktualisiert und erwartet einen Gesamtumsatz zwischen 595 Millionen und 605 Millionen US-Dollar, eine Bruttomarge zwischen 41,8% und 42,3% sowie ein bereinigtes EBITDA zwischen 78 Millionen und 81 Millionen US-Dollar.
- Total revenue increased by 3.7% to $122.1 million.
- Grill revenues surged by 32.5% to $74.9 million.
- Gross margin improved by 440 basis points to 42.3%.
- Adjusted EBITDA rose significantly to $12.3 million from $4.7 million.
- North America revenue increased by 10.4%.
- Updated FY 2024 guidance with higher expectations for revenue, gross margin, and Adjusted EBITDA.
- Net loss increased slightly to $19.8 million from $19.3 million last year.
- Rest of World revenue fell by 40.1%.
- Consumables revenue decreased by 11.2%.
- Accessories revenue decreased by 31.3%.
Increases Outlook for Full Year 2024
Third Quarter FY 24 Highlights
-
Total revenues increased
3.7% to$122.1 million -
Grill revenues increased
32.5% to$74.9 million -
Gross margin of
42.3% , up 440 basis points compared to prior year -
Net loss of
compared to net loss of$19.8 million in the prior year$19.3 million -
Adjusted EBITDA of
, up from$12.3 million in the prior year$4.7 million - Raises low-end of FY 2024 revenue guidance range
- Increases FY 2024 gross margin and Adjusted EBITDA guidance
"Traeger delivered third quarter results which were ahead of our expectations and which demonstrate our team's commitment to execution," commented Jeremy Andrus, CEO of Traeger. "Strong sell-through of our grills drove upside in our replenishment sales in the quarter, resulting in a
Operating Results for the Third Quarter
Total revenue increased
-
Grills increased
32.5% to as compared to the third quarter last year. The increase was primarily driven by unit volume growth partially offset by a reduction in average selling price. Higher unit volume was driven by effective promotional activity and strategic pricing action on select grills. The decrease in average selling price was primarily due to a mix shift to lower priced grills, a higher mix of direct import sales, and strategic pricing action on select grills.$74.9 million -
Consumables decreased
11.2% to as compared to the third quarter last year. The decrease was primarily driven by a reduction in wood pellet unit volume and a reduction in food consumables unit volume. Lower wood pellet and food consumables unit volume was due to seasonal ordering shifts.$22.5 million -
Accessories decreased
31.3% to as compared to the third quarter last year. This decrease was driven by lower sales of MEATER smart thermometers as well as unit volume reductions in Traeger branded accessories.$24.6 million
Gross profit increased to
Sales and marketing expenses were
General and administrative expenses were
Net loss was
Adjusted net loss was
Adjusted EBITDA was
Balance Sheet
Cash and cash equivalents at the end of the third quarter totaled
Inventory at the end of the third quarter was
Guidance For Full Year Fiscal 2024
Based on year to date performance and its outlook for the rest of the year, the Company is updating its total revenue, gross margin and Adjusted EBITDA guidance for Fiscal 2024.
-
Total revenue is expected to be between
and$595 million $605 million -
Gross Margin is expected to be between
41.8% and42.3% -
Adjusted EBITDA is expected to be between
and$78 million million$81
A reconciliation of Adjusted EBITDA guidance to Net Loss on a forward-looking basis cannot be provided without unreasonable efforts, as the Company is unable to provide reconciling information with respect to provision (benefit) for income taxes, interest expense, depreciation and amortization, other (income) expense, stock-based compensation, non-routine legal expenses, and other adjustment items all of which are adjustments to Adjusted EBITDA.
Conference Call Details
A conference call to discuss the Company's third quarter results is scheduled for Wednesday, November 6, 2024, at 4:30 p.m. ET. To participate, please dial (833) 470-1428 or +1 (929) 526-1599 for international callers, conference ID 322897. The conference call will also be webcast live at https://investors.traeger.com. A recording will be available shortly after the conclusion of the call. To access the replay, please dial (866) 813-9403, conference ID 367971. A replay of the webcast will also be available approximately two hours after the conclusion of the call on the Company's website at https://investors.traeger.com. A supplemental presentation has also been posted to the Company's website at https://investors.traeger.com.
About Traeger
Traeger, headquartered in
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our anticipated full year Fiscal 2024 results and our position to deliver growth and shareholder value, as well as our innovation pipeline. Words such as “believes,” “anticipates,” “plans,” “expects,” “intends,” “will,” “goal,” “potential” and similar expressions are intended to identify forward-looking statements. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, our history of operating losses, our ability to manage our future growth effectively, our ability to expand into additional markets, our ability to maintain and strengthen our brand to generate and maintain ongoing demand for our products, our ability to cost-effectively attract new customers and retain our existing customers, our failure to maintain product quality and product performance at an acceptable cost, the impact of product liability and warranty claims and product recalls, the highly competitive market in which we operate, the use of social media and community ambassadors, a decline in sales of our grills, our dependence on three major retailers, risks associated with our international operations, our reliance on a limited number of third-party manufacturers and problems with (or loss of) our suppliers or an inability to obtain raw materials, and the ability of our stockholders to influence corporate matters and other important factors discussed under the caption "Risk Factors" in our periodic and current reports filed with the Securities and Exchange Commission from time to time, including our Annual Report on Form 10-K for the year ended December 31, 2023, as updated by Part II, Item 1A. "Risk Factors" of our Quarterly Report on Form 10-Q for the period ended September 30, 2024. Any such forward-looking statements represent management's estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.
___________________
1 There were no potentially dilutive securities outstanding as of September 30, 2024 and 2023.
2 Reconciliations of GAAP to non-GAAP financial measures, as well as definitions for the non-GAAP financial measures included in this press release and the reasons for their use, are presented below.
TRAEGER, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts)
|
|||||||
|
September 30,
|
|
December 31,
|
||||
|
(unaudited) |
|
|
||||
ASSETS |
|
|
|
||||
Current Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
16,872 |
|
|
$ |
29,921 |
|
Accounts receivable, net |
|
70,786 |
|
|
|
59,938 |
|
Inventories |
|
105,058 |
|
|
|
96,175 |
|
Prepaid expenses and other current assets |
|
24,348 |
|
|
|
30,346 |
|
Total current assets |
|
217,064 |
|
|
|
216,380 |
|
Property, plant, and equipment, net |
|
38,241 |
|
|
|
42,591 |
|
Operating lease right-of-use assets |
|
45,429 |
|
|
|
48,188 |
|
Goodwill |
|
74,725 |
|
|
|
74,725 |
|
Intangible assets, net |
|
438,922 |
|
|
|
470,546 |
|
Other non-current assets |
|
3,695 |
|
|
|
8,329 |
|
Total assets |
$ |
818,076 |
|
|
$ |
860,759 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current Liabilities |
|
|
|
||||
Accounts payable |
$ |
30,575 |
|
|
$ |
33,280 |
|
Accrued expenses |
|
56,630 |
|
|
|
52,941 |
|
Line of credit |
|
12,000 |
|
|
|
28,400 |
|
Current portion of notes payable |
|
250 |
|
|
|
250 |
|
Current portion of operating lease liabilities |
|
3,744 |
|
|
|
3,608 |
|
Current portion of contingent consideration |
|
— |
|
|
|
15,000 |
|
Other current liabilities |
|
498 |
|
|
|
495 |
|
Total current liabilities |
|
103,697 |
|
|
|
133,974 |
|
Notes payable, net of current portion |
|
398,159 |
|
|
|
397,300 |
|
Operating leases liabilities, net of current portion |
|
27,574 |
|
|
|
29,142 |
|
Deferred tax liability |
|
8,241 |
|
|
|
8,236 |
|
Other non-current liabilities |
|
579 |
|
|
|
759 |
|
Total liabilities |
|
538,250 |
|
|
|
569,411 |
|
Commitments and contingencies—See Note 10 |
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
|
|
||||
Issued and outstanding shares - 130,427,492 and 125,865,303 as of September 30, 2024 and December 31, 2023 |
|
13 |
|
|
|
13 |
|
Additional paid-in capital |
|
956,195 |
|
|
|
935,272 |
|
Accumulated deficit |
|
(681,927 |
) |
|
|
(654,877 |
) |
Accumulated other comprehensive income |
|
5,545 |
|
|
|
10,940 |
|
Total stockholders’ equity |
|
279,826 |
|
|
|
291,348 |
|
Total liabilities and stockholders’ equity |
$ |
818,076 |
|
|
$ |
860,759 |
|
TRAEGER, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited) (in thousands, except share and per share amounts)
|
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue |
$ |
122,050 |
|
|
$ |
117,730 |
|
|
$ |
435,435 |
|
|
$ |
442,403 |
|
Cost of revenue |
|
70,362 |
|
|
|
73,064 |
|
|
|
248,856 |
|
|
|
278,983 |
|
Gross profit |
|
51,688 |
|
|
|
44,666 |
|
|
|
186,579 |
|
|
|
163,420 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Sales and marketing |
|
26,162 |
|
|
|
25,913 |
|
|
|
76,065 |
|
|
|
75,903 |
|
General and administrative |
|
24,135 |
|
|
|
24,823 |
|
|
|
86,764 |
|
|
|
103,873 |
|
Amortization of intangible assets |
|
8,819 |
|
|
|
8,889 |
|
|
|
26,456 |
|
|
|
26,666 |
|
Change in fair value of contingent consideration |
|
— |
|
|
|
(2,300 |
) |
|
|
— |
|
|
|
508 |
|
Restructuring costs |
|
— |
|
|
|
225 |
|
|
|
— |
|
|
|
225 |
|
Total operating expense |
|
59,116 |
|
|
|
57,550 |
|
|
|
189,285 |
|
|
|
207,175 |
|
Loss from operations |
|
(7,428 |
) |
|
|
(12,884 |
) |
|
|
(2,706 |
) |
|
|
(43,755 |
) |
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
(8,534 |
) |
|
|
(7,517 |
) |
|
|
(25,308 |
) |
|
|
(23,408 |
) |
Other income (expense), net |
|
(3,964 |
) |
|
|
1,992 |
|
|
|
993 |
|
|
|
8,020 |
|
Total other expense |
|
(12,498 |
) |
|
|
(5,525 |
) |
|
|
(24,315 |
) |
|
|
(15,388 |
) |
Loss before provision (benefit) for income taxes |
|
(19,926 |
) |
|
|
(18,409 |
) |
|
|
(27,021 |
) |
|
|
(59,143 |
) |
Provision (benefit) for income taxes |
|
(137 |
) |
|
|
852 |
|
|
|
29 |
|
|
|
1,214 |
|
Net loss |
$ |
(19,789 |
) |
|
$ |
(19,261 |
) |
|
$ |
(27,050 |
) |
|
$ |
(60,357 |
) |
Net loss per share, basic and diluted |
$ |
(0.15 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.49 |
) |
Weighted average common shares outstanding, basic and diluted |
|
128,291,933 |
|
|
|
124,053,643 |
|
|
|
126,886,385 |
|
|
|
123,265,134 |
|
Other comprehensive income (loss): |
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments |
$ |
25 |
|
|
$ |
(27 |
) |
|
$ |
111 |
|
|
$ |
(24 |
) |
Change in cash flow hedge |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,088 |
) |
Amortization of dedesignated cash flow hedge |
|
(1,456 |
) |
|
|
(2,666 |
) |
|
|
(5,506 |
) |
|
|
(7,808 |
) |
Total other comprehensive loss |
|
(1,431 |
) |
|
|
(2,693 |
) |
|
|
(5,395 |
) |
|
|
(9,920 |
) |
Comprehensive loss |
$ |
(21,220 |
) |
|
$ |
(21,954 |
) |
|
$ |
(32,445 |
) |
|
$ |
(70,277 |
) |
TRAEGER, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
|
|||||||
|
Nine Months Ended September 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|||||
Net loss |
$ |
(27,050 |
) |
|
$ |
(60,357 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
||||
Depreciation of property, plant and equipment |
|
10,139 |
|
|
|
11,204 |
|
Amortization of intangible assets |
|
31,936 |
|
|
|
32,074 |
|
Amortization of deferred financing costs |
|
1,500 |
|
|
|
1,519 |
|
Loss on disposal of property, plant and equipment |
|
414 |
|
|
|
2,262 |
|
Stock-based compensation expense |
|
23,064 |
|
|
|
47,180 |
|
Unrealized loss (gain) on derivative contracts |
|
7,526 |
|
|
|
(2,689 |
) |
Amortization of dedesignated cash flow hedge |
|
(5,506 |
) |
|
|
(7,808 |
) |
Change in contingent consideration |
|
(15,000 |
) |
|
|
288 |
|
Other non-cash adjustments |
|
1,425 |
|
|
|
141 |
|
Change in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(10,851 |
) |
|
|
(9,099 |
) |
Inventories |
|
(8,883 |
) |
|
|
51,580 |
|
Prepaid expenses and other current assets |
|
2,596 |
|
|
|
(6,077 |
) |
Other non-current assets |
|
86 |
|
|
|
(393 |
) |
Accounts payable and accrued expenses |
|
5,020 |
|
|
|
(15,467 |
) |
Other non-current liabilities |
|
— |
|
|
|
1 |
|
Net cash provided by operating activities |
|
16,416 |
|
|
|
44,359 |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
||||
Purchase of property, plant, and equipment |
|
(10,034 |
) |
|
|
(15,678 |
) |
Capitalization of patent costs |
|
(312 |
) |
|
|
(373 |
) |
Proceeds from sale of property, plant, and equipment |
|
113 |
|
|
|
2,925 |
|
Net cash used in investing activities |
|
(10,233 |
) |
|
|
(13,126 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
||||
Proceeds from line of credit |
|
47,000 |
|
|
|
103,100 |
|
Repayments on line of credit |
|
(63,400 |
) |
|
|
(161,809 |
) |
Repayments of long-term debt |
|
(188 |
) |
|
|
(188 |
) |
Payment of deferred financing costs |
|
(119 |
) |
|
|
— |
|
Principal payments on finance lease obligations |
|
(384 |
) |
|
|
(386 |
) |
Payments of acquisition related contingent consideration |
|
— |
|
|
|
(12,225 |
) |
Taxes paid related to net share settlement of equity awards |
|
(2,141 |
) |
|
|
— |
|
Net cash used in financing activities |
|
(19,232 |
) |
|
|
(71,508 |
) |
Net decrease in cash, cash equivalents and restricted cash |
|
(13,049 |
) |
|
|
(40,275 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
29,921 |
|
|
|
51,555 |
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ |
16,872 |
|
|
$ |
11,280 |
|
TRAEGER, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands)
|
|||||
|
|
|
|
||
(Continued) |
Nine Months Ended September 30, |
||||
|
|
2024 |
|
|
2023 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: |
|
|
|
||
Cash paid during the period for interest |
$ |
29,643 |
|
$ |
30,243 |
Income taxes paid, net of refunds |
$ |
1,575 |
|
$ |
2,449 |
NON-CASH FINANCING AND INVESTING ACTIVITIES |
|
|
|
||
Equipment purchased under finance leases |
$ |
206 |
|
$ |
451 |
Property, plant, and equipment included in accounts payable and accrued expenses |
$ |
51 |
|
$ |
2,152 |
TRAEGER, INC.
RECONCILIATIONS OF AND OTHER INFORMATION REGARDING NON-GAAP FINANCIAL MEASURES
(unaudited)
In addition to our results and measures of performance determined in accordance with
Each of Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted Net Income (Loss) per share, Adjusted EBITDA Margin, and Adjusted Net Income (Loss) Margin are key performance measures that our management uses to assess our financial performance and are also used for internal planning and forecasting purposes. We believe that these non-GAAP financial measures are useful to investors and other interested parties in analyzing our financial performance because they provide a comparable overview of our operations across historical periods. In addition, we believe that providing each of Adjusted EBITDA and Adjusted Net Income (Loss), together with a reconciliation of Net Loss to each such measure, and providing Adjusted Net Income (Loss) per share, together with a reconciliation of Net Loss per share to such measure, and Adjusted EBITDA Margin and Adjusted Net Income (Loss) Margin, together with a reconciliation of Net Loss Margin to such measures, helps investors make comparisons between our company and other companies that may have different capital structures, different tax rates, and/or different forms of employee compensation. For example, due to finite-lived intangible assets included on our balance sheet following our corporate reorganization in 2017, we have significant non-cash amortization expense attributable to the nature of our capital structure.
Each of Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted Net Income (Loss) per share, and Adjusted Gross Margin are used by our management team as an additional measure of our performance for purposes of business decision-making, including managing expenditures, and evaluating potential acquisitions. Period-to-period comparisons of Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted Net Income (Loss) per share, and Adjusted Gross Margin help our management identify additional trends in our financial results that may not be shown solely by period-to-period comparisons of Net Loss or Loss from Continuing Operations or Net Loss per share. In addition, we may use Adjusted EBITDA in the incentive compensation programs applicable to some of our employees. Each of Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted Net Income (Loss) per share, and Adjusted Gross Margin has inherent limitations because of the excluded items, and may not be directly comparable to similarly titled metrics used by other companies.
The following table presents a reconciliation of Net Loss, Net Loss Margin and Net Loss per share, the most directly comparable financial measures calculated in accordance with
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(dollars in thousands, except share and per share amounts) |
||||||||||||||
Net loss |
$ |
(19,789 |
) |
|
$ |
(19,261 |
) |
|
$ |
(27,050 |
) |
|
$ |
(60,357 |
) |
Adjustments: |
|
|
|
|
|
|
|
||||||||
Other (income) expense (1) |
|
2,419 |
|
|
|
(5,644 |
) |
|
|
(7,131 |
) |
|
|
(16,302 |
) |
Restructuring costs (2) |
|
— |
|
|
|
225 |
|
|
|
— |
|
|
|
225 |
|
Stock-based compensation |
|
5,901 |
|
|
|
6,201 |
|
|
|
23,064 |
|
|
|
47,180 |
|
Non-routine legal expenses (3) |
|
79 |
|
|
|
— |
|
|
|
1,782 |
|
|
|
481 |
|
Amortization of acquisition intangibles (4) |
|
8,246 |
|
|
|
8,253 |
|
|
|
24,756 |
|
|
|
24,762 |
|
Change in fair value of contingent consideration |
|
— |
|
|
|
(2,300 |
) |
|
|
— |
|
|
|
508 |
|
Other adjustment items (5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
669 |
|
Tax impact of adjusting items (6) |
|
(4,268 |
) |
|
|
(1,765 |
) |
|
|
(10,880 |
) |
|
|
(14,686 |
) |
Adjusted net income (loss) |
$ |
(7,412 |
) |
|
$ |
(14,291 |
) |
|
$ |
4,541 |
|
|
$ |
(17,520 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(19,789 |
) |
|
$ |
(19,261 |
) |
|
$ |
(27,050 |
) |
|
$ |
(60,357 |
) |
Adjustments: |
|
|
|
|
|
|
|
||||||||
Provision (benefit) for income taxes |
|
(137 |
) |
|
|
852 |
|
|
|
29 |
|
|
|
1,214 |
|
Interest expense |
|
8,534 |
|
|
|
7,517 |
|
|
|
25,308 |
|
|
|
23,408 |
|
Depreciation and amortization |
|
13,885 |
|
|
|
14,433 |
|
|
|
42,076 |
|
|
|
43,275 |
|
Other (income) expense (7) |
|
3,875 |
|
|
|
(2,978 |
) |
|
|
(1,625 |
) |
|
|
(8,494 |
) |
Restructuring costs (2) |
|
— |
|
|
|
225 |
|
|
|
— |
|
|
|
225 |
|
Stock-based compensation |
|
5,901 |
|
|
|
6,201 |
|
|
|
23,064 |
|
|
|
47,180 |
|
Non-routine legal expenses (3) |
|
79 |
|
|
|
— |
|
|
|
1,782 |
|
|
|
481 |
|
Change in fair value of contingent consideration |
|
— |
|
|
|
(2,300 |
) |
|
|
— |
|
|
|
508 |
|
Other adjustment items (5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
669 |
|
Adjusted EBITDA |
$ |
12,348 |
|
|
$ |
4,689 |
|
|
$ |
63,584 |
|
|
$ |
48,109 |
|
|
|
|
|
|
|
|
|
||||||||
Revenue |
$ |
122,050 |
|
|
$ |
117,730 |
|
|
$ |
435,435 |
|
|
$ |
442,403 |
|
Net loss margin |
|
(16.2 |
)% |
|
|
(16.4 |
)% |
|
|
(6.2 |
)% |
|
|
(13.6 |
)% |
Adjusted net income (loss) margin |
|
(6.1 |
)% |
|
|
(12.1 |
)% |
|
|
1.0 |
% |
|
|
(4.0 |
)% |
Adjusted EBITDA margin |
|
10.1 |
% |
|
|
4.0 |
% |
|
|
14.6 |
% |
|
|
10.9 |
% |
|
|
|
|
|
|
|
|
||||||||
Net loss per diluted share |
$ |
(0.15 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.49 |
) |
Adjusted net income (loss) per diluted share |
$ |
(0.06 |
) |
|
$ |
(0.12 |
) |
|
$ |
0.04 |
|
|
$ |
(0.14 |
) |
Weighted average common shares outstanding - diluted |
|
128,291,933 |
|
|
|
124,053,643 |
|
|
|
126,886,385 |
|
|
|
123,265,134 |
|
(1) Represents realized and unrealized gains (losses) on the interest rate swap, including amortization of dedesignated cash flow hedge, losses on the disposal of property, plant, and equipment, as well as unrealized gains (losses) from foreign currency transactions and derivatives.
(2) Represents the final costs related to the 2022 restructuring plan.
(3) Represents loss contingency and external legal costs incurred in connection with the settlement and defense of a class action lawsuit and intellectual property litigation.
(4) Represents the amortization expense associated with intangible assets recorded in connection with the 2017 acquisition of Traeger Pellet Grills Holdings LLC.
(5) Represents non-routine operational wind-down costs.
(6) Represents the tax effect of non-GAAP adjustments calculated at an estimated blended statutory tax rate of
(7) Represents realized and unrealized gains (losses) on the interest rate swap, losses on the disposal of property, plant, and equipment, as well as unrealized gains (losses) from foreign currency transactions and derivatives.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106888047/en/
Investors:
Nick Bacchus
Traeger, Inc.
investor@traeger.com
Media:
The Brand Amp
Traeger@thebrandamp.com
Source: Traeger, Inc.
FAQ
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