Zevia Announces Fourth Quarter and Full Year 2023 Results
Q4 Net Sales up
Fourth Quarter 2023 Highlights
-
Net sales increased
6.9% year over year to , returning to growth$37.8 million -
Unit volume increased
3.7% year over year to 2.8 million equivalized cases -
Gross profit margin was
40.7% , down 3.6 percentage points year over year, primarily driven by inventory losses while accelerating our supply chain transition -
Net loss was
, including$9.2 million of non-cash equity-based compensation expense$1.7 million -
Adjusted EBITDA loss was
(1)$6.8 million -
Loss per share was
per diluted share to Zevia’s Class A Common stockholders$0.14
Full Year 2023 Highlights
-
Net sales increased
2.0% year over year to , reflecting the impact of short-term supply chain disruptions encountered during the year$166.4 million -
Unit volume decreased
6.9% year over year to 12.7 million equivalized cases -
Gross profit margin was
44.9% , up 2.0 percentage points year over year -
Net loss was
, including$28.3 million of non-cash equity-based compensation expense$8.3 million -
Adjusted EBITDA loss was
(1)$19.0 million -
Loss per share was
per diluted share to Zevia’s Class A Common stockholders$0.41
(1) Adjusted EBITDA is a non-GAAP financial measure. See the supplementary schedules in this press release for a discussion of how we define and calculate this measure and a reconciliation thereof to the most directly comparable GAAP measure. |
“Our fourth quarter volume growth reflects continued underlying consumer demand, a healthy business within our core customer base and exciting growth levels with developing customers,” said Amy Taylor, President and Chief Executive Officer. “We enter 2024 on a strong foundation, with a stable and scalable supply chain and the brand refresh fully in market. Our liquidity position and gross margins allow us to invest in growth amid tailwinds from consumer trends, building on our position as the number one consumer choice among natural beverages.”
“We continue to expect top-line acceleration for the full year of 2024 from a mix of volume and price, and gains in household penetration as we execute key initiatives to drive distribution expansion.” Taylor continued. “This includes Zevia’s route-to-market evolution, and an initial expansion into the convenience channel.”
Fourth Quarter 2023 Results
Net sales increased
Gross profit decreased
Selling and marketing expenses were
General and administrative expenses were
Equity-based compensation, a non-cash expense, was
Net loss for the fourth quarter of 2023 was
Loss per share for the fourth quarter of 2023 was
Adjusted EBITDA loss was
Full Year 2023 Results
Net sales increased
Gross profit increased
Selling and marketing expenses were
General and administrative expenses were
Equity-based compensation, a non-cash expense, was
Net loss for the full year of 2023 was
Loss per share for the full year of 2023 was
Adjusted EBITDA loss was
Balance Sheet and Cash Flows
As of December 31, 2023, the Company had
Guidance
The Company expects net sales for the first quarter of 2024 to be in the range of
Webcast
The Company will host a conference call today at 8:30 a.m. Eastern Time to discuss this earnings release. Investors and other interested parties may listen to the webcast of the conference call by logging on via the Investor Relations section of Zevia’s website at https://investors.zevia.com/ or directly here. A replay of the webcast will be available for approximately thirty (30) days following the call.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the
About Zevia
Zevia PBC, a
(ZEVIA-F)
ZEVIA PBC CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) (in thousands, except share and per share amounts) |
||||||||||||||||
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Net sales |
|
$ |
37,794 |
|
|
$ |
35,366 |
|
|
$ |
166,424 |
|
|
$ |
163,181 |
|
Cost of goods sold |
|
|
22,405 |
|
|
|
19,713 |
|
|
|
91,666 |
|
|
|
93,160 |
|
Gross profit |
|
|
15,389 |
|
|
|
15,653 |
|
|
|
74,758 |
|
|
|
70,021 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling and marketing |
|
|
13,845 |
|
|
|
10,025 |
|
|
|
62,312 |
|
|
|
52,869 |
|
General and administrative |
|
|
8,393 |
|
|
|
8,536 |
|
|
|
31,495 |
|
|
|
36,793 |
|
Equity-based compensation |
|
|
1,665 |
|
|
|
3,099 |
|
|
|
8,279 |
|
|
|
26,880 |
|
Depreciation and amortization |
|
|
381 |
|
|
|
342 |
|
|
|
1,615 |
|
|
|
1,347 |
|
Total operating expenses |
|
|
24,284 |
|
|
|
22,002 |
|
|
|
103,701 |
|
|
|
117,889 |
|
Loss from operations |
|
|
(8,895 |
) |
|
|
(6,349 |
) |
|
|
(28,943 |
) |
|
|
(47,868 |
) |
Other (expense) income, net |
|
|
(235 |
) |
|
|
222 |
|
|
|
673 |
|
|
|
286 |
|
Loss before income taxes |
|
|
(9,130 |
) |
|
|
(6,127 |
) |
|
|
(28,270 |
) |
|
|
(47,582 |
) |
Provision for income taxes |
|
|
21 |
|
|
|
43 |
|
|
|
52 |
|
|
|
65 |
|
Net loss and comprehensive loss |
|
|
(9,151 |
) |
|
|
(6,170 |
) |
|
|
(28,322 |
) |
|
|
(47,647 |
) |
Loss attributable to noncontrolling interest |
|
|
1,896 |
|
|
|
1,785 |
|
|
|
6,828 |
|
|
|
13,790 |
|
Net loss attributable to Zevia PBC |
|
$ |
(7,255 |
) |
|
$ |
(4,385 |
) |
|
$ |
(21,494 |
) |
|
$ |
(33,857 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss per share attributable to common stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
(0.14 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.41 |
) |
|
$ |
(0.81 |
) |
Diluted |
|
$ |
(0.14 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.41 |
) |
|
$ |
(0.81 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
52,220,804 |
|
|
|
47,368,849 |
|
|
|
50,618,758 |
|
|
|
43,469,383 |
|
Diluted |
|
|
52,220,804 |
|
|
|
47,368,849 |
|
|
|
50,618,758 |
|
|
|
43,469,383 |
|
ZEVIA PBC CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands) |
||||||||
|
|
December 31, 2023 |
|
|
December 31, 2022 |
|
||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
31,955 |
|
|
$ |
47,399 |
|
Accounts receivable, net |
|
|
11,119 |
|
|
|
11,077 |
|
Inventories |
|
|
34,550 |
|
|
|
27,576 |
|
Prepaid expenses and other current assets |
|
|
5,063 |
|
|
|
2,607 |
|
Total current assets |
|
|
82,687 |
|
|
|
88,659 |
|
Property and equipment, net |
|
|
2,109 |
|
|
|
4,641 |
|
Right-of-use assets under operating leases, net |
|
|
1,959 |
|
|
|
708 |
|
Intangible assets, net |
|
|
3,523 |
|
|
|
4,385 |
|
Other non-current assets |
|
|
579 |
|
|
|
539 |
|
Total assets |
|
$ |
90,857 |
|
|
$ |
98,932 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
|
21,169 |
|
|
$ |
8,023 |
|
Accrued expenses and other current liabilities |
|
|
5,973 |
|
|
|
8,408 |
|
Current portion of operating lease liabilities |
|
|
575 |
|
|
|
715 |
|
Total current liabilities |
|
|
27,717 |
|
|
|
17,146 |
|
Operating lease liabilities, net of current portion |
|
|
1,373 |
|
|
|
— |
|
Total liabilities |
|
|
29,090 |
|
|
|
17,146 |
|
|
|
|
|
|
|
|
||
Stockholders’ equity |
|
|
|
|
|
|
||
Class A common stock |
|
|
54 |
|
|
|
48 |
|
Class B common stock |
|
|
17 |
|
|
|
22 |
|
Additional paid-in capital |
|
|
191,144 |
|
|
|
189,724 |
|
Accumulated deficit |
|
|
(101,337 |
) |
|
|
(79,843 |
) |
Total Zevia PBC stockholders’ equity |
|
|
89,878 |
|
|
|
109,951 |
|
Noncontrolling interests |
|
|
(28,111 |
) |
|
|
(28,165 |
) |
Total equity |
|
|
61,767 |
|
|
|
81,786 |
|
Total liabilities and equity |
|
$ |
90,857 |
|
|
$ |
98,932 |
|
ZEVIA PBC CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) |
||||||||
|
|
Year Ended December 31, |
|
|||||
|
|
2023 |
|
|
2022 |
|
||
Operating activities: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(28,322 |
) |
|
$ |
(47,647 |
) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
||
Non-cash lease expense |
|
|
567 |
|
|
|
653 |
|
Depreciation and amortization |
|
|
1,615 |
|
|
|
1,347 |
|
Loss on disposal of property, equipment and software, net |
|
|
480 |
|
|
|
3 |
|
Amortization of debt issuance cost |
|
|
76 |
|
|
|
64 |
|
Equity-based compensation |
|
|
8,279 |
|
|
|
26,880 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable, net |
|
|
(42 |
) |
|
|
(2,030 |
) |
Inventories |
|
|
(6,974 |
) |
|
|
3,925 |
|
Prepaid expenses and other assets |
|
|
(2,573 |
) |
|
|
846 |
|
Accounts payable |
|
|
13,640 |
|
|
|
(5,850 |
) |
Accrued expenses and other current liabilities |
|
|
(2,435 |
) |
|
|
1,703 |
|
Operating lease liabilities |
|
|
(585 |
) |
|
|
(672 |
) |
Net cash used in operating activities |
|
|
(16,274 |
) |
|
|
(20,778 |
) |
Investing activities: |
|
|
|
|
|
|
||
Proceeds from maturities of short-term investments |
|
|
— |
|
|
|
30,000 |
|
Purchases of property, equipment and software |
|
|
(1,624 |
) |
|
|
(2,593 |
) |
Proceeds from sales of property and equipment |
|
|
2,429 |
|
|
|
— |
|
Net cash provided by investing activities |
|
|
805 |
|
|
|
27,407 |
|
Financing activities: |
|
|
|
|
|
|
||
Payment of debt issuance costs |
|
|
— |
|
|
|
(334 |
) |
Minimum tax withholding paid on behalf of employees for net share settlement |
|
|
— |
|
|
|
(2,130 |
) |
Proceeds from exercise of stock options |
|
|
25 |
|
|
|
124 |
|
Net cash provided by (used in) financing activities |
|
|
25 |
|
|
|
(2,340 |
) |
Net change from operating, investing, and financing activities |
|
|
(15,444 |
) |
|
|
4,289 |
|
Cash and cash equivalents at beginning of period |
|
|
47,399 |
|
|
|
43,110 |
|
Cash and cash equivalents at end of period |
|
$ |
31,955 |
|
|
$ |
47,399 |
|
|
|
|
|
|
|
|
Use of Non-GAAP Financial Information
We use Adjusted EBITDA, a financial measure that is not calculated in accordance with
We calculate Adjusted EBITDA as net income (loss) adjusted to exclude: (1) other income (expense), net, which includes interest (income) expense, foreign currency (gains) losses, and (gains) losses on disposal of fixed assets, (2) provision (benefit) for income taxes, (3) depreciation and amortization, and (4) equity-based compensation. Also, Adjusted EBITDA may in the future be adjusted for amounts impacting net income related to the Tax Receivable Agreement liability and other infrequent and unusual transactions.
Adjusted EBITDA is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of the limitations of Adjusted EBITDA include that (1) it does not properly reflect capital commitments to be paid in the future, (2) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA does not reflect these capital expenditures, (3) it does not consider the impact of equity-based compensation expense, including the potential dilutive impact thereof, and (4) it does not reflect other non-operating expenses, including interest (income) expense, foreign currency (gains) losses and (gains) losses on disposal of fixed assets. In addition, our use of Adjusted EBITDA may not be comparable to similarly titled measures of other companies because they may not calculate Adjusted EBITDA in the same manner, limiting its usefulness as comparative measures. Because of these limitations, when evaluating our performance, you should consider Adjusted EBITDA alongside other financial measures, including our net loss or income and other results stated in accordance with GAAP.
The following table presents a reconciliation of net loss, the most directly comparable financial measure stated in accordance with GAAP, to Adjusted EBITDA for the periods presented:
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
||||||||||
(in thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Net loss and comprehensive loss |
|
$ |
(9,151 |
) |
|
$ |
(6,170 |
) |
|
$ |
(28,322 |
) |
|
$ |
(47,647 |
) |
Other expense (income), net* |
|
|
235 |
|
|
|
(222 |
) |
|
|
(673 |
) |
|
|
(286 |
) |
Provision for income taxes |
|
|
21 |
|
|
|
43 |
|
|
|
52 |
|
|
|
65 |
|
Depreciation and amortization |
|
|
381 |
|
|
|
342 |
|
|
|
1,615 |
|
|
|
1,347 |
|
Equity-based compensation |
|
|
1,665 |
|
|
|
3,099 |
|
|
|
8,279 |
|
|
|
26,880 |
|
Adjusted EBITDA |
|
$ |
(6,849 |
) |
|
$ |
(2,908 |
) |
|
$ |
(19,049 |
) |
|
$ |
(19,641 |
) |
* Includes interest (income) expense, foreign currency (gains) losses, and (gains) losses on disposal of fixed assets. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240227272707/en/
Media
Annie Thompson
Edelman Smithfield
713-299-4115
Annie.Thompson@edelmansmithfield.com
Investors
Greg Davis
Zevia PBC
424-343-2654
Gregory@zevia.com
Reed Anderson
ICR
646-277-1260
Reed.Anderson@icrinc.com
Source: Zevia PBC