Starco Brands Reports Third Quarter 2024 Financial Results
Reported Net Revenue of
Planned Distribution Expansion and New Product Pipeline Pave Way for Growth in Fiscal Year 2025
Conference Call to be Held at 1:30 p.m. PT Today
Management Comments
Starco Brands Chairman & CEO Ross Sklar said: “Our third quarter showed strong operational and financial progress, delivering positive Adjusted EBITDA and sequential margin improvement through effective cost management and expanded distribution channels. Throughout 2024, we've focused on building a stronger operational foundation while gathering valuable market intelligence across our brand portfolio. This data-driven approach has provided clear insights into optimal channel strategies and retail partnerships, which will inform our expansion plans and appropriate marketing spend. Our shared services platform is now fully operational, enabling us to identify and remove approximately
Third Quarter of 2024 Financial Results
Reported net revenue for the third quarter of 2024 was
Gross profit was
Marketing, General and Administrative expenses were
Reported unadjusted net loss for the third quarter of 2024 was
First Nine Months of 2024 Financial Results
Reported net revenue for the first nine months of 2024 was
Gross profit was
Marketing, General and Administrative expenses for the first nine months of 2024 increased to
Reported unadjusted net loss for the first nine months of 2024 was
Non-GAAP Adjusted EBITDA
Adjusted EBITDA, which is net loss adjusted for stock-based compensation, gain on disposal of property and equipment, gain on settlements, interest and other expense, net, depreciation of property and equipment, amortization of intangible assets, (recovery) provision for doubtful accounts, and provision for income taxes and certain other items that impact the periods presented. Adjusted EBITDA is provided so that investors have the same financial data that management uses to assess the Company’s operating results with the belief that it will assist the investment community in properly assessing the ongoing performance of the Company for the periods being reported and future periods. The presentation of this additional information is not meant to be considered a substitute for measures prepared in accordance with
Adjusted EBITDA was
Adjusted EBITDA is a non-GAAP financial measure. See the supplementary schedules in this press release for a reconciliation thereof to the most directly comparable GAAP measure.
Quarter | Year to Date | ||||||||||||||
Q3 24 | Q3 23 | FY 24 | FY 23 | ||||||||||||
Net Income | $ |
(6,257 |
) |
$ |
2,361 |
|
$ |
(22,090 |
) |
$ |
(5,253 |
) |
|||
Interest expense |
|
303 |
|
|
256 |
|
|
711 |
|
|
617 |
|
|||
Tax |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||
Depreciation & Amortization |
|
707 |
|
|
1,015 |
|
|
2,138 |
|
|
1,742 |
|
|||
Other expense (income) |
|
378 |
|
|
121 |
|
|
740 |
|
|
(212 |
) |
|||
Fair value share adjustment loss (gain) |
|
5,106 |
|
|
(3,144 |
) |
|
15,703 |
|
|
2,751 |
|
|||
Stock based compensation |
|
421 |
|
|
477 |
|
|
1,322 |
|
|
1,440 |
|
|||
Adjusted EBITDA | $ |
658 |
|
$ |
1,086 |
|
$ |
(1,476 |
) |
$ |
1,085 |
|
Balance Sheet
As of September 30, 2024, the Company had approximately
First Nine Months of 2024 Segment Review
Starco Brands: Starco Brands’ segment includes AOS, Whipshots and Winona Popcorn Spray. Segment gross revenues of
Skylar: Segment gross revenues of
Soylent: Segment gross revenues of
Conference Call
The conference call to discuss these results is scheduled for today, Thursday, November 14, 2024, at 1:30 pm Pacific Time (4:30 pm Eastern Time). Listeners can dial (877) 407-0792 in
Forward-Looking Statements
Any statements in this press release about the Company's future expectations, plans and prospects, including statements about our financing strategy, future operations, future financial position and results, market growth, new product launches and product growth, total revenue, as well as other statements containing the words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "project," "should," "target," "will," or "would" and similar expressions, constitute forward-looking statements within the meaning of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. The Company may not achieve the plans, intentions or expectations disclosed in the Company's forward-looking statements, and you should not place undue reliance on the Company's forward-looking statements. All forward-looking statements are subject to assumptions, risks and uncertainties that may change at any time. Therefore, readers are cautioned that actual results could differ materially from those expressed in forward-looking statements. The Company undertakes no obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as expressly required by law. This cautionary statement entirely qualifies all forward-looking statements in this document.
Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward- looking statements the Company make as a result of a variety of risks and uncertainties, including risks related to the Company's estimates regarding the potential market opportunity for the Company's current and future products and services, the impact of the COVID-19 pandemic, the competitive nature of the industries in which we conduct our business, general business and economic conditions, our ability to acquire suitable businesses, our ability to successfully launch new products and seize market share, the Company's expectations regarding the Company's sales, expenses, gross margins and other results of operations, and the other risks and uncertainties described in the "Risk Factors" sections of the Company's public filings with the Securities and Exchange Commission on Form 10-K for the year ended December 31, 2023. Copies of our SEC filings are available on our website at www.starcobrands.com. In addition, the forward-looking statements included in this press release represent the Company's views as of the date hereof. The Company anticipates that subsequent events and developments may cause the Company's views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's views as of any date after the date hereof.
About Starco Brands
Starco Brands (OTCQB: STCB) invents consumer products with behavior-changing technologies that spark excitement in the everyday. Today, its disruptive brands include Whipshots®, the world’s only vodka-infused whipped cream; Art of Sport, the body care brand designed for athletes and co-founded by Kobe Bryant; Winona® Pure, the first indulgent theater-popcorn spray powered by air; Skylar, the only fragrance that is both hypoallergenic and safe for sensitive skin; and Soylent, the complete non-dairy nutrition brand. A modern-day invention factory to its core, Starco Brands identifies whitespaces across consumer product categories. Starco Brands publicly trades on the OTCQB stock exchange so that retail investors can invest in STCB alongside accredited individuals and institutions. Visit www.starcobrands.com for more information.
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Investor Relations
John Mills
ICR
646-277-1254
John.Mills@icrinc.com
Deirdre Thomson
ICR
646-277-1283
Deirdre.Thomson@icrinc.com
Source: Starco Brands, Inc.