Stryve Foods, Inc. Reports Fiscal 2024 Second Quarter Results
Stryve Foods, Inc. (NASDAQ: SNAX) reported strong Q2 2024 results, showing significant improvements in key financial metrics. Net sales reached $6.2 million, up 3.0% year-over-year and 34.4% sequentially. Gross margin expanded to 27.4%, a substantial increase from 17.5% in Q2 2023. The company achieved its lowest Adjusted EBITDA loss in history, improving by 34.8% year-over-year.
Stryve updated its FY2024 net sales guidance to $23-$26 million, projecting 30.0% to 46.9% growth year-over-year. The company's transformation strategy focuses on driving profitable volumes, operational efficiency, and cost management. Stryve closed approximately $3.0 million in convertible promissory notes during Q2 to fund working capital needs for new distribution.
Stryve Foods, Inc. (NASDAQ: SNAX) ha riportato risultati solidi per il secondo trimestre del 2024, evidenziando notevoli miglioramenti nei principali indicatori finanziari. Le vendite nette hanno raggiunto 6,2 milioni di dollari, con un aumento del 3,0% rispetto all'anno precedente e del 34,4% rispetto al trimestre precedente. Il margine lordo è aumentato al 27,4%, un incremento sostanziale rispetto al 17,5% del secondo trimestre del 2023. L'azienda ha registrato la sua perdita di EBITDA rettificato più bassa nella storia, migliorando del 34,8% anno su anno.
Stryve ha aggiornato le sue previsioni di vendite nette per l'anno fiscale 2024 a 23-26 milioni di dollari, prevedendo una crescita del 30,0% al 46,9% rispetto all'anno precedente. La strategia di trasformazione dell'azienda si concentra sul promuovere volumi redditizi, efficienza operativa e gestione dei costi. Stryve ha chiuso circa 3,0 milioni di dollari in note promissorie convertibili durante il secondo trimestre per finanziare le esigenze di capitale circolante per una nuova distribuzione.
Stryve Foods, Inc. (NASDAQ: SNAX) informó resultados sólidos para el segundo trimestre de 2024, mostrando mejoras significativas en los principales indicadores financieros. Las ventas netas alcanzaron 6,2 millones de dólares, un aumento del 3,0% interanual y del 34,4% secuencialmente. El margen bruto se expandió al 27,4%, un aumento considerable desde el 17,5% en el segundo trimestre de 2023. La compañía logró su menor pérdida de EBITDA ajustado en la historia, mejorando en un 34,8% en comparación con el año anterior.
Stryve actualizó su proyección de ventas netas para el año fiscal 2024 a 23-26 millones de dólares, proyectando un crecimiento del 30,0% al 46,9% interanual. La estrategia de transformación de la empresa se enfoca en impulsar volúmenes rentables, eficiencia operativa y gestión de costos. Stryve cerró aproximadamente 3,0 millones de dólares en notas promisorias convertibles durante el segundo trimestre para financiar las necesidades de capital de trabajo para una nueva distribución.
Stryve Foods, Inc. (NASDAQ: SNAX)는 2024년 2분기 실적을 발표하며 주요 재무 지표에서 상당한 개선을 보였다고 보고했습니다. 순매출은 620만 달러에 달했으며, 전년 대비 3.0% 증가하고 전 분기 대비 34.4% 증가했습니다. 총마진은 27.4%로 확대되어 2023년 2분기의 17.5%에서 크게 증가했습니다. 회사는 역사상 최저의 조정 EBITDA 손실을 기록했으며, 이는 전년 대비 34.8% 개선된 수치입니다.
Stryve는 2024 회계연도 순매출 가이던스를 2300만~2600만 달러로 업데이트하며, 전년 대비 30.0%에서 46.9% 성장할 것으로 예상하고 있습니다. 회사의 혁신 전략은 수익성 있는 판매 증대, 운영 효율성 및 비용 관리에 중점을 두고 있습니다. Stryve는 새로운 배급을 위한 운영 자본 필요를 충당하기 위해 2분기 동안 약 300만 달러의 전환사채를 발행했습니다.
Stryve Foods, Inc. (NASDAQ: SNAX) a annoncé des résultats solides pour le deuxième trimestre de 2024, montrant des améliorations significatives dans les principaux indicateurs financiers. Les ventes nettes ont atteint 6,2 millions de dollars, en hausse de 3,0 % d'une année sur l'autre et de 34,4 % par rapport au trimestre précédent. La marge brute s'est élargie à 27,4 %, une augmentation substantielle par rapport à 17,5 % au deuxième trimestre 2023. L'entreprise a enregistré sa plus faible perte d'EBITDA ajusté de l'histoire, s'améliorant de 34,8 % par rapport à l'année précédente.
Stryve a mis à jour sa prévision de ventes nettes pour l'exercice 2024 entre 23 et 26 millions de dollars, projetant une croissance de 30,0 % à 46,9 % d'une année sur l'autre. La stratégie de transformation de l'entreprise se concentre sur la promotion de volumes rentables, l'efficacité opérationnelle et la gestion des coûts. Stryve a clôturé environ 3,0 millions de dollars de billets à ordre convertibles au cours du deuxième trimestre pour financer les besoins en fonds de roulement pour une nouvelle distribution.
Stryve Foods, Inc. (NASDAQ: SNAX) hat im zweiten Quartal 2024 starke Ergebnisse berichtet und erhebliche Verbesserungen bei den wichtigsten Finanzkennzahlen aufgezeigt. Nettoverkaufszahlen erreichten 6,2 Millionen Dollar, was einem Anstieg von 3,0 % im Jahresvergleich und 34,4 % im Vergleich zum vorherigen Quartal entspricht. Bruttomarge erweiterte sich auf 27,4 %, ein deutlicher Anstieg von 17,5 % im zweiten Quartal 2023. Das Unternehmen erzielte den geringsten bereinigten EBITDA-Verlust in seiner Geschichte, was einer Verbesserung von 34,8 % im Jahresvergleich entspricht.
Stryve hat seine Umsatzprognose für das Geschäftsjahr 2024 auf 23 bis 26 Millionen Dollar aktualisiert und prognostiziert ein Wachstum von 30,0 % bis 46,9 % im Jahresvergleich. Die Transformationsstrategie des Unternehmens konzentriert sich auf die Steigerung profitabler Mengen, betriebliche Effizienz und Kostenmanagement. Stryve schloss im zweiten Quartal etwa 3,0 Millionen Dollar an wandelbaren Schuldverschreibungen ab, um den Finanzierungsbedarf für das Betriebskapital neuer Vertriebswege zu decken.
- Net sales increased by 3.0% year-over-year to $6.2 million in Q2 2024
- Gross margin expanded to 27.4% from 17.5% in Q2 2023
- Adjusted EBITDA loss improved by 34.8% year-over-year
- Operating loss reduced to $2.2 million from $3.4 million in Q2 2023
- FY2024 net sales guidance projects 30.0% to 46.9% growth year-over-year
- Net loss of $3.0 million in Q2 2024, though improved from $4.3 million in Q2 2023
- Other Expense of $0.7 million primarily due to interest expense
- Adjusted EBITDA still shows a loss of $1.5 million for Q2 2024
- Company closed $3.0 million in convertible promissory notes, potentially diluting shareholders
Insights
Stryve Foods' Q2 2024 results show promising signs of improvement, but challenges remain. The 34.4% sequential revenue growth and 3.0% year-over-year growth indicate positive momentum. The substantial gross margin improvement to 27.4% from 17.5% last year is particularly noteworthy, reflecting successful cost management and operational efficiency efforts.
However, the company is still operating at a loss, with a net loss of
The issuance of
Stryve's performance in Q2 2024 reflects broader trends in the healthy snacking market. The company's focus on air-dried meat snacks aligns with growing consumer demand for protein-rich, low-carb options. The improved sales mix and discontinuation of underperforming products demonstrate a strategic pivot towards higher-quality revenue streams.
The projected 30.0% to 46.9% year-over-year growth for FY2024 suggests strong market potential, but it's important to consider the competitive landscape. As larger food companies enter the healthy snacking space, Stryve must continue to innovate and differentiate its offerings.
The company's emphasis on operational improvements and cost management is timely, given inflationary pressures affecting the food industry. However, higher commodity costs remain a challenge, potentially impacting future margins. Stryve's ability to pass these costs to consumers without losing market share will be critical for long-term success in this rapidly evolving market segment.
Lowest Adj. EBITDA Loss1 in Company History with
Gross Margin of
FY’24 Net Sales Guidance Range Implies YOY Growth of
PLANO, Texas, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Stryve Foods, Inc. (“Stryve” or “the Company”) (NASDAQ: SNAX), an emerging healthy snacking platform and leader in the air-dried meat snack industry in the United States, today reports financial and operating results for the three and six months ended June 30, 2024. The Company reported strong sequential revenue growth, improved gross margins, and a continued reduction in net loss, reflecting the ongoing success of its business transformation initiatives.
Key highlights include net sales of
Q2 2024 – Another Record-Breaking Quarter
The Company’s strategic transformation continued in the second quarter of 2024 showing year-over-year improvements in gross margin, lower operating expenses, and significantly narrowed losses resulting in the Company’s lowest loss quarter ever in terms of Adjusted EBITDA. Management’s strategy has been to transform the business to put it in a position to benefit from growth and operating leverage. The Company’s rationalization and productivity efforts are proving out as expected, delivering improved gross margins despite experiencing higher commodity costs versus the prior year. Additionally, the simplified portfolio has enabled management to further streamline operations and reduce costs. The second quarter of 2024 marks the beginning of the third phase of Stryve’s overall transformation. Significant progress has been made on operational improvements across the enterprise, and management plans to continue driving accelerated growth in a quality manner to capitalize on the redesigned business’s potential for operating leverage as it scales.
Chris Boever, Chief Executive Officer, commented, “The second quarter of 2024 was another significant improvement for Stryve Foods, as we continued to execute our transformation plan with discipline and focus. Our success in expanding distribution and improving gross margins underscores the strength of our strategy and the dedication of our team. We are excited about the momentum we are building as we further establish Stryve as a leader in the healthy protein snacking category. Our ongoing innovation efforts and operational improvements have set the stage for sustainable growth and profitability in the quarters to come.”
Fiscal Year 2024 Revised Outlook
For fiscal year 2024, Stryve Foods updates its net sales guidance to the range of
Alex Hawkins, Chief Financial Officer, said, “We are pleased with the financial progress we made in the second quarter, highlighted by our enhanced gross margins and reduced operating expenses. Our disciplined approach to cost management and strategic investments in high-potential areas have positioned us well for future growth. As we move forward, we remain committed to optimizing our operations, managing our capital efficiently, and delivering value to our shareholders.”
Convertible Promissory Notes
During the second quarter, the Company closed approximately
Second Quarter 2024 Highlights
- Net sales of
$6.2 million , up3.0% as compared to the second quarter a year ago. The mix of net sales improved year over year in part due to the Company’s discontinuation of certain retail programs, rationalization of low-quality revenue, which included the discontinuation of slow-moving and margin losing items some of which was still present in the prior year period while improved sell-through and growth in quality core accounts more than offset the rationalized revenues in the second quarter. - Gross profit of
$1.7 million compared to gross profit of$1.1 million in the second quarter of 2023. The improved performance is primarily attributable to enhanced sales-mix and better utilization of the facilities partially offset by higher commodity costs than in the prior year period. - Operating loss of (
$2.2) million for the second quarter of 2024, compared to operating loss of ($3.4) million in the 2023 second quarter. - Other Expense of
$0.7 million for the 2024 second quarter is primarily attributable to interest expense and is down from$0.9 million in the prior year period. The prior year period is burdened by approximately$0.4 million in interest expense related to the accounting treatment of the warrants issued in connection with the certain bridge notes issued in April 2023. - Net loss of (
$3.0) million , or ($0.91) per share for the second quarter of 2024 as compared to a net loss of ($4.3) million , or ($2.05) per share, in the 2023 second quarter. - Adjusted loss per share1 of (
$0.83) for the second quarter of 2024, which compares favorably to adjusted loss per share of ($1.84) for the year-ago period. - Adjusted EBITDA loss3 of (
$1.5) million for the 2024 second quarter which represents a34.8% improvement compared to ($2.4) million in the prior year quarter.
Year-to-Date 2024 Highlights
- Net sales of
$10.8 million for the six months ended June 30th, 2024, up1.2% as compared to the comparable period a year ago. The mix of net sales improved year over year in part due to the Company’s discontinuation of certain retail programs, rationalization of low-quality revenue, which included the discontinuation of slow-moving and margin losing items some of which was still present in the prior year period while improved sell-through and growth in quality core accounts more than offset the rationalized revenues so far this year. - Gross profit of
$2.7 million for the six months ended June 30th, 2024, compared to gross profit of$2.0 million in prior year period. The current year period’s improved performance is primarily attributable to enhanced sales-mix and better utilization of the facilities partially offset by higher commodity costs than in the prior year period. - Operating loss of (
$5.2) million for the six months ended June 30th, 2024, as compared to operating loss of ($7.6) million in the prior year period. - Other Expense of
$1.7 million for the six months ended June 30th, 2024, is up$0.3 million as compared to$1.4 million in the comparable period a year ago. This increase is in part attributable to approximately$0.3 million of a non-cash loss on the extinguishment of debt related to the accounting treatment of the repricing of the warrants connected to the extension of the promissory notes issued on April 19, 2023. The prior year period was burdened by approximately$0.4 million in interest expense related to the accounting treatment of the warrants issued in connection with those same bridge notes issued in April 2023. The remaining difference is primarily attributable to interest expense on new convertible bridge notes put in place during the current year period. - Net loss of (
$6.9) million , or ($2.29) per share for the six months ended June 30th, 2024, as compared to a net loss of ($9.0) million , or ($4.27) per share, in the prior year period. - Adjusted loss per share1 of (
$2.00) for the six months ended June 30th, 2024, which compares favorably to adjusted loss per share of ($3.98) for the year-ago period. - Adjusted EBITDA loss3 of (
$3.8) million for the six months ended June 30th, 2024, which represents a35.0% improvement compared to ($5.9) million in the prior year period.
1 Adjusted EBITDA and adjusted loss per share are a non-GAAP financial measure as defined and reconciled to GAAP below.
Conference Call
The Company will conduct a conference call today at 4:30 p.m. Eastern Time to discuss financial and operating results for the second quarter ended June 30, 2024. To access the call live by phone, dial 1-800-717-1738 or 1-646-307-1865 at least 10 minutes before the call and ask to be joined into the Stryve call. A replay will be available through August 28, 2024, by dialing 1-844-512-2921 or 1-412-317-6671 and using the replay PIN number: 1111896 #. A webcast of the call will also be available live and for later replay on the Company’s Investor Relations website at https://ir.stryve.com/news-events.
About Stryve Foods, Inc.
Stryve is a premium air-dried meat snack company that is conquering the intersection of high protein, great taste, and health under the brands of Braaitime®, Kalahari®, Stryve®, and Vacadillos®. Stryve sells highly differentiated healthy snacking and food products in order to disrupt traditional snacking and CPG categories. Stryve’s mission is “to help Americans eat better and live happier, better lives.” Stryve offers convenient products that are lower in sugar and carbohydrates and higher in protein than other snacks and foods. Stryve’s current product portfolio consists primarily of air-dried meat snack products marketed under the Stryve®, Kalahari®, Braaitime®, and Vacadillos® brand names. Unlike beef jerky, Stryve’s all-natural air-dried meat snack products are made of beef and spices, are never cooked, contain zero grams of sugar*, and are free of monosodium glutamate (MSG), gluten, nitrates, nitrites, and preservatives. As a result, Stryve’s products are Keto and Paleo diet friendly. Further, based on protein density and sugar content, Stryve believes that its air-dried meat snack products are some of the healthiest shelf-stable snacks available today. Stryve also markets and sells human-grade pet treats under the brands Two Tails and Primal Paws, made with simple, all-natural ingredients and
Stryve distributes its products in major retail channels, primarily in North America, including grocery, convenience store, mass merchants, and other retail outlets, as well as directly to consumers through its ecommerce websites and through the Amazon and Wal*mart platforms. For more information about Stryve, visit www.stryve.com or follow us on social media at @stryvebiltong.
* All Stryve Biltong and Vacadillos products contain zero grams of added sugar, with the exception of the Chipotle Honey flavor of Vacadillos, which contains one gram of sugar per serving.
Cautionary Note Regarding Forward-Looking Statements
Certain statements made herein are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “anticipate”, “may”, “will”, “would”, “could”, “intend”, “aim”, “believe”, “anticipate”, “continue”, “target”, “milestone”, “expect”, “estimate”, “plan”, “outlook”, “objective”, “guidance” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters, including, but not limited to, statements regarding Stryve’s plans, strategies, objectives, targets and expected financial performance. These forward-looking statements reflect Stryve’s current views and analysis of information currently available. This information is, where applicable, based on estimates, assumptions and analysis that Stryve believes, as of the date hereof, provide a reasonable basis for the information and statements contained herein. These forward-looking statements involve various known and unknown risks, uncertainties and other factors, many of which are outside the control of Stryve and its officers, employees, agents and associates. These risks, uncertainties, assumptions and other important factors, which could cause actual results to differ materially from those described in these forward-looking statements, include: (i) the inability to achieve profitability due to commodity prices, inflation, supply chain interruption, transportation costs and/or labor shortages; (ii) the ability to recognize the anticipated benefits of the Business Combination or meet financial and strategic goals, which may be affected by, among other things, competition, supply chain interruptions, the ability to pursue a growth strategy and manage growth profitability, maintain relationships with customers, suppliers and retailers and retain its management and key employees; (iii) the risk that retailers will choose to limit or decrease the number of retail locations in which Stryve’s products are carried or will choose not to carry or not to continue to carry Stryve’s products; (iv) the possibility that Stryve may be adversely affected by other economic, business, and/or competitive factors; (v) the effect of the COVID-19 pandemic on Stryve; (vi) the possibility that Stryve may not achieve its financial outlook; (vii) risks around the Company’s ability to continue as a going concern and (viii) other risks and uncertainties described in the Company’s public filings with the SEC. Actual results, performance or achievements may differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those projections and forward-looking statements are based.
Investor Relations Contact:
Investor Relations
ir@stryve.com
-Financial Statements Follow-
| Stryve Foods, Inc. | |||||||||||||||
| Condensed Consolidated Statement of Operations | |||||||||||||||
| (In thousands, except share and per share data) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (unaudited) | (unaudited) | ||||||||||||||
| SALES, net | $ | 6,178 | $ | 5,997 | $ | 10,776 | $ | 10,643 | |||||||
| COST OF GOODS SOLD (exclusive of depreciation shown separately below) | 4,484 | 4,946 | 8,066 | 8,629 | |||||||||||
| GROSS PROFIT | 1,694 | 1,051 | 2,710 | 2,014 | |||||||||||
| OPERATING EXPENSES | |||||||||||||||
| Selling expenses | 1,577 | 1,779 | 3,174 | 3,747 | |||||||||||
| Operations expense | 412 | 625 | 764 | 1,139 | |||||||||||
| Salaries and wages | 1,530 | 1,470 | 3,137 | 3,633 | |||||||||||
| Depreciation and amortization expense | 408 | 552 | 870 | 1,104 | |||||||||||
| Gain on disposal of fixed assets | - | 1 | - | 1 | |||||||||||
| Total operating expenses | 3,927 | 4,427 | 7,945 | 9,624 | |||||||||||
| OPERATING LOSS | (2,233 | ) | (3,376 | ) | (5,235 | ) | (7,610 | ) | |||||||
| OTHER (EXPENSE) INCOME | |||||||||||||||
| Interest expense | (728 | ) | (963 | ) | (1,310 | ) | (1,363 | ) | |||||||
| Loss on extinguishment of debt | - | - | (335 | ) | - | ||||||||||
| Change in fair value of Private Warrants | - | 10 | - | 19 | |||||||||||
| Other expense | - | 7 | - | (7 | ) | ||||||||||
| Total other (expense) income | (728 | ) | (946 | ) | (1,645 | ) | (1,351 | ) | |||||||
| NET LOSS BEFORE INCOME TAXES | (2,961 | ) | (4,322 | ) | (6,880 | ) | (8,961 | ) | |||||||
| Income tax expense (benefit) | 1 | (13 | ) | 10 | (10 | ) | |||||||||
| NET LOSS | $ | (2,962 | ) | $ | (4,309 | ) | $ | (6,890 | ) | $ | (8,951 | ) | |||
| Loss per common share: | |||||||||||||||
| Basic and diluted | $ | (0.91 | ) | $ | (2.05 | ) | $ | (2.29 | ) | $ | (4.27 | ) | |||
| Weighted average shares outstanding: | |||||||||||||||
| Basic and diluted | 3,254,028 | 2,105,620 | 3,014,671 | 2,095,621 | |||||||||||
| Stryve Foods, Inc. | |||||||
| Condensed Consolidated Balance Sheets | |||||||
| (in thousands) | |||||||
| June 30, | December 31, | ||||||
| 2024 | 2023 | ||||||
| (unaudited) | (audited) | ||||||
| ASSETS | |||||||
| CURRENT ASSETS | |||||||
| Cash and cash equivalent | $ | 447 | $ | 369 | |||
| Accounts receivable, net | 2,953 | 2,092 | |||||
| Inventory, net | 4,801 | 5,200 | |||||
| Prepaid expenses and other current assets | 396 | 720 | |||||
| Total current assets | 8,597 | 8,381 | |||||
| Property and equipment, net | 6,448 | 7,151 | |||||
| Right of use assets, net | 4,401 | 4,610 | |||||
| Goodwill | 8,450 | 8,450 | |||||
| Intangible assets, net | 3,999 | 4,120 | |||||
| TOTAL ASSETS | $ | 31,895 | $ | 32,712 | |||
| LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | |||||||
| CURRENT LIABILITIES | |||||||
| Accounts payable | $ | 5,670 | $ | 4,460 | |||
| Accrued expenses | 2,683 | 2,688 | |||||
| Current portion of lease liability | 326 | 362 | |||||
| Line of credit, net of debt issuance costs | 4,169 | 3,568 | |||||
| Promissory notes payable, net of debt discount and debt issuance costs | 4,157 | 2,914 | |||||
| Promissory notes payable due to related parties, net of debt discount and debt issuance costs | 2,864 | 1,175 | |||||
| Current portion of long-term debt and other short-term borrowings | 423 | 606 | |||||
| Total current liabilities | 20,292 | 15,773 | |||||
| Long-term debt, net of current portion, net of debt issuance costs | 3,331 | 3,475 | |||||
| Lease liability, net of current portion | 4,232 | 4,372 | |||||
| Financing obligation - related party operating lease | 7,500 | 7,500 | |||||
| TOTAL LIABILITIES | 35,355 | 31,120 | |||||
| COMMITMENTS AND CONTINGENCIES (Note 12) | |||||||
| STOCKHOLDERS' (DEFICIT) EQUITY | |||||||
| Preferred stock - | - | - | |||||
| Class A common stock - | - | - | |||||
| Class V common stock - | - | - | |||||
| Additional paid-in-capital | 139,723 | 137,885 | |||||
| Accumulated deficit | (143,183 | ) | (136,293 | ) | |||
| TOTAL STOCKHOLDERS' (DEFICIT) EQUITY | (3,460 | ) | 1,592 | ||||
| TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | $ | 31,895 | $ | 32,712 | |||
| Stryve Foods, Inc. | |||||||
| Condensed Consolidated Statement of Cash Flows | |||||||
| (In thousands) | |||||||
| Six Months Ended June 30, | |||||||
| 2024 | 2023 | ||||||
| (unaudited) | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
| Net loss | $ | (6,890 | ) | $ | (8,951 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
| Depreciation expense | 749 | 983 | |||||
| Amortization of intangible assets | 121 | 121 | |||||
| Amortization of debt issuance costs | 110 | 125 | |||||
| Amortization of debt discount | - | 387 | |||||
| Amortization of debt premium | 7 | - | |||||
| Amortization of right-of-use asset | 208 | 197 | |||||
| Loss on extinguishment of debt | 335 | - | |||||
| Gain on disposal of fixed assets | - | 1 | |||||
| Reserve for credit losses | 222 | 80 | |||||
| Stock based compensation expense | 547 | 618 | |||||
| Change in fair value of Private Warrants | - | (19 | ) | ||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (1,084 | ) | (565 | ) | |||
| Inventory | 399 | (93 | ) | ||||
| Prepaid expenses and other current assets | 325 | 479 | |||||
| Accounts payable | 1,178 | 1,502 | |||||
| Accrued liabilities | 243 | 88 | |||||
| Operating lease obligations | (177 | ) | (166 | ) | |||
| Net cash used in operating activities | $ | (3,707 | ) | $ | (5,213 | ) | |
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
| Cash paid for purchase of equipment | (14 | ) | (64 | ) | |||
| Net cash used in investing activities | $ | (14 | ) | $ | (64 | ) | |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
| Proceeds from the issuance of common stock, net | 711 | - | |||||
| Repayments on long-term debt | (68 | ) | (76 | ) | |||
| Borrowings on related party debt | 1,685 | 1,175 | |||||
| Borrowings on short-term debt | 10,164 | 12,967 | |||||
| Repayments on short-term debt | (8,693 | ) | (8,877 | ) | |||
| Debt issuance costs | - | (176 | ) | ||||
| Deferred offering costs | - | (39 | ) | ||||
| Net cash provided by financing activities | $ | 3,799 | $ | 4,974 | |||
| Net change in cash and cash equivalents | 78 | (303 | ) | ||||
| Cash and cash equivalents at beginning of period | 369 | 623 | |||||
| Cash and cash equivalents at end of period | $ | 447 | $ | 320 | |||
| SUPPLEMENTAL INFORMATION: | |||||||
| Cash paid for interest | $ | 879 | $ | 755 | |||
| NON-CASH INVESTING AND FINANCING ACTIVITY: | |||||||
| Non-cash commercial premium finance borrowing | $ | - | $ | 291 | |||
| Common stock issued for accrued expenses | $ | 147 | $ | - | |||
| Common stock issued for accrued expenses - related party | $ | 100 | $ | - | |||
| Accrued fixed assets | $ | 32 | $ | - | |||
Reconciliation of GAAP to Non-GAAP Information
Stryve uses non-GAAP financial information and believes it is useful to investors as it provides additional information to facilitate comparisons of historical operating results, identify trends in operating results, and provide additional insight on how the management team evaluates the business. Stryve’s management team uses EBITDA, Adjusted EBITDA, and Adjusted Earnings Per Share to make operating and strategic decisions, evaluate performance and comply with indebtedness related reporting requirements. Below are details on this non-GAAP measure and the non-GAAP adjustments that the management team makes in the definition of EBITDA, Adjusted EBITDA and Adjusted Earnings Per Share. Stryve believes this non-GAAP measure should be considered along with Net Loss Before Income Taxes, and Net Loss, the most closely related GAAP financial measure. Reconciliation between EBITDA, Adjusted EBITDA, Adjusted Earnings per Share, Net Loss Before Income Taxes, and Net Loss are below:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| (In thousands) | ||||||||||||||||
| Net loss before income taxes | $ | (2,961 | ) | $ | (4,322 | ) | $ | (6,880 | ) | $ | (8,961 | ) | ||||
| Interest expense | 728 | 964 | 1,310 | 1,363 | ||||||||||||
| Depreciation and amortization expense | 408 | 552 | 870 | 1,104 | ||||||||||||
| EBITDA | $ | (1,825 | ) | $ | (2,806 | ) | $ | (4,700 | ) | $ | (6,494 | ) | ||||
| Additional Adjustments: | ||||||||||||||||
| Loss on Extinguishment of Debt | — | — | 335 | — | ||||||||||||
| Stock Based Compensation Expense | 276 | 432 | 547 | 618 | ||||||||||||
| Adjusted EBITDA | $ | (1,549 | ) | $ | (2,374 | ) | $ | (3,818 | ) | $ | (5,876 | ) | ||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| (In thousands except share and per share information) | ||||||||||||||||
| Net loss | $ | (2,962 | ) | $ | (4,309 | ) | $ | (6,890 | ) | $ | (8,951 | ) | ||||
| Weighted average shares outstanding | 3,254,028 | 2,105,620 | 3,014,671 | 2,095,621 | ||||||||||||
| Basic & Diluted Net Loss per Share | $ | (0.91 | ) | $ | (2.05 | ) | $ | (2.29 | ) | $ | (4.27 | ) | ||||
| Additional Adjustments: | ||||||||||||||||
| Loss on Extinguishment of Debt | — | — | 0.11 | — | ||||||||||||
| Stock Based Compensation Expense | 0.08 | 0.21 | 0.18 | 0.29 | ||||||||||||
| Adjusted Earnings per Share | $ | (0.83 | ) | $ | (1.84 | ) | $ | (2.00 | ) | $ | (3.98 | ) | ||||
FAQ
What was Stryve Foods' (SNAX) net sales for Q2 2024?
How did Stryve Foods' (SNAX) gross margin change in Q2 2024?
What is Stryve Foods' (SNAX) updated net sales guidance for FY2024?
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