Vintage Wine Estates, Inc. (Nasdaq: VWE and VWEWW) (“VWE” or the
“Company”), one of the fastest-growing wine producers in the U.S.
with an industry leading direct-to-customer platform, today
reported its financial results for its first quarter ended
September 30, 2022. Results include Vinesse, LLC ("Vinesse")
acquired on October 4, 2021, ACE Cider, acquired on November 16,
2021, and Meier's Wine Cellars, Inc. acquired on January 18, 2022.
Pat Roney, Founder and Chief Executive Officer, commented, "Our
first quarter results represent a solid start to the year as we
continue to execute on our growth strategy. We delivered double
digit sales growth for each of our business segments and
strengthened operations while making critical investments to
support our key strategic objectives. We made progress in a number
of areas to improve operational efficiencies against headwinds from
ongoing cost pressures and supply chain constraints. We still
have some work to do and will continue to develop our
infrastructure as we scale the Company. We have invested in talent,
building strength in our leadership and finance teams and we are
effectively integrating and growing our recently acquired brands.
Overall, we are driving consumer demand for our excellent portfolio
of diversified products while making smart investments to fuel
growth."
First Quarter Fiscal 2023 Highlights and Financial
Results Review (compared with prior-year period unless
noted otherwise)
Revenue
- Net revenue of $77.9 million was up $22.2 million, or 40%,
driven by strength in all segments. Acquisitions contributed $14.9
million in net revenue for the quarter.
- DTC revenue grew $5.6 million, or 37%, to $20.5 million driven
by 17% organic growth and acquired revenue of $3.1 million.
VWE's industry-leading, omnichannel DTC platform drove double
digit organic growth with strong sales through QVC and Wine Club
channels; Tasting Room traffic increased nearly 10% versus prior
year.
- B2B revenue increased $9.6 million, or 39%, to $34.1 million
primarily driven by increased custom production activities and $4.9
million of acquired revenue.
- Wholesale revenue increased $7.2 million, or 44%, to $23.4
million due to acquired revenue of $6.9 million. Key priority
brands delivered strong marketplace performance including Bar Dog,
Cherry Pie and Photograph, which outperformed the U.S Wine
category. ACE Cider delivered record volume performance driven by
category growth and production efficiencies achieved since
acquisition.
Volume (9L equivalents; see additional volume data by segment in
the attached tables)
|
|
Three Months Ended September 30, |
|
|
|
|
|
|
|
(in thousands) |
|
2022 |
|
|
2021 |
|
|
Unit Change |
|
|
% Change |
|
Wholesale |
|
|
539 |
|
|
|
209 |
|
|
|
330 |
|
|
|
157.9 |
% |
B2B |
|
* |
|
|
* |
|
|
* |
|
|
* |
|
DTC |
|
|
99 |
|
|
|
60 |
|
|
39 |
|
|
|
65.0 |
% |
Total case
volume |
|
|
638 |
|
|
|
269 |
|
|
|
369 |
|
|
|
137.2 |
% |
Higher volume was primarily due to wholesale which was driven by
the ACE Cider acquisition. ACE Cider ships higher case volume
of lower priced product. The increase in DTC case volume represents
strong growth across channels and the acquisition of
Vinesse.
*B2B segment sales are primarily not related to case volumes,
therefore the Company has elected to eliminate case volumes for
this segment as it would not be indicative of the underlying
performance of the business.
Gross Profit and Margin
Gross profit was up $6.7 million to $30.1 million which resulted
from strong revenue growth across all business segments. Gross
margin was 38.7% compared with 42.1% in the prior period primarily
due to increased overhead absorption.
Selling, General and Administrative Expenses
(SG&A)
SG&A, which excludes amortization expense, increased $17.3
million, or 102%, to $34.2 million. The higher level of SG&A
primarily represents $4.0 million of incremental SG&A from
acquisitions, stock based compensation expense of $4.6 million,
increased freight costs and investments in additional talent. This
was an unusual quarter in the magnitude of SG&A spend. Full
year fiscal 2023 SG&A is expected to be in the range of $115 to
$120 million.
Operating and Net Income
Loss from operations was $4.9 million, compared with income from
operations of $6.1 million in the prior year quarter. Operating
loss reflected an increase in the cost of revenues and SG&A
expenses as the company continues to scale the business as a public
company.
Interest expense for the quarter was $3.4 million, a decrease of
$0.2 million, or 6%, on lower outstanding debt balances.
Net income available to VWE common shareholders was $1.0
million, compared to $2.8 million in the prior-year period. On a
per diluted share basis, net income available to VWE common
shareholders was $0.02 compared to $0.05 per diluted share in the
prior-year period.
Adjusted net income3 was $2.7 million, or $0.05 per diluted
share.
Adjusted EBITDA
Adjusted EBITDA for the quarter was $5.1 million compared with
adjusted EBITDA of $10.6 million in the prior-year quarter
primarily reflecting the fully burdened cost of revenues inclusive
of overhead and increased SG&A, offset by favorable product
mix.
Strong Balance Sheet with Financial
Flexibility
Liquidity
As of September 30, 2022, the Company had ample liquidity
available for organic investments. This included $44.6 million in
unrestricted cash, approximately $22.4 million available under its
revolving line of credit and up to $100.0 million available under
the accordion feature of the lending agreement..
VWE executed an amendment to its lending agreement that adjusted
the definition of certain covenants. The Company is in
compliance with all financial covenants of the amended
agreement.
Capital Investments
Capital expenditures were $3.5 million for the quarter.
Investments were primarily related to the new ACE Cider canning
line and barrel purchases.
Fiscal Year 2023 Outlook
The Company reaffirmed fiscal year 2023 expectations for net
revenue (excluding any potential fiscal 2023 acquisitions) and
revised the FY23 Adjusted EBITDA to be in the ranges noted in the
table below.
|
|
Guidance |
FY23 Net Revenue: |
|
$300 million to $310 million |
FY23 Adjusted EBITDA: |
|
$50 million to $60 million |
FY23 Capital Expenditures: |
|
$12 million to $15 million |
FY23 Selling, General and Administrative
Expenses: |
|
$115 million to $120 million |
Note regarding forward looking non-GAAP metrics: VWE cannot
provide a reconciliation between its forecasted adjusted EBITDA and
net revenue metrics to the nearest GAAP measure without
unreasonable effort or expense due to the inherent difficulty of
forecasting and providing reliable estimates for certain items.
These non-GAAP financial measures are preliminary estimates and are
subject to risks and uncertainties, including, among others,
changes in connection with quarter-end and yearend adjustments.
These items reside outside the Company’s control and may vary
greatly between periods and could significantly impact future
financial results. For more information regarding the use of
non-GAAP measures, please see discussion provided under Non-GAAP
Financial Measures in this news release and the Company’s filings
with the SEC.
Conference Call and Webcast
The Company will host a conference call and live webcast today
at 4:45 PM ET/ 1:45 PM PT, at which time management will review the
Company’s first quarter financial results and strategy. The review
will be accompanied by a slide presentation, which will be
available on the Company’s website at
https://ir.vintagewineestates.com/. A question-and-answer session
will follow the formal discussion.
The conference call can be accessed by dialing 1-631-891-4304.
The listen-only audio webcast can be monitored at
https://ir.vintagewineestates.com/. A telephonic replay will be
available from 7:45 PM ET / 4:45 PM PT on the day of the call
through Wednesday, November 16, 2022, and can be accessed by
dialing 1-412-317-6671 and entering the conference ID number
10020403. Alternatively, an archived webcast of the call can be
found on the Company’s website in the investor relations
section. A transcript of the call will be posted to the
website once available.
About Vintage Wine Estates, Inc.
Vintage Wine Estates (Nasdaq: VWE and VWEWW) is a family of
wineries and wines whose singular focus is producing the finest
quality wines and incredible customer experiences with wineries
throughout Napa, Sonoma, California’s Central Coast, Oregon and
Washington State. Since its founding 20 years ago, the Company
has grown to be the 14th largest wine producer in the U.S., selling
more than two million nine-liter equivalent cases annually. To
consistently drive growth, the Company curates, creates, stewards
and markets its many brands and services to customers and end
consumers via a balanced omni-channel strategy encompassing
direct-to-consumer, wholesale and exclusive brand arrangements with
national retailers. While VWE is diverse across price points and
varietals with over 60 brands ranging from $10 to $150 USD at
retail, its primary focus is on the fastest growing luxury segment
of the [U.S.] wine industry with the majority of brands selling at
over $15 per bottle. The Company regularly posts updates and
additional information at https://www.vintagewineestates.com.
Non-GAAP Financial Measures
In addition to reporting net income/(loss) prepared in
accordance with accounting principles generally accepted in the
United States, VWE uses adjusted EBITDA, adjusted net income/(loss)
and adjusted net income/(loss) per share to supplement GAAP
measures of performance to evaluate the effectiveness of its
business strategies. Adjusted EBITDA is defined as earnings/(loss)
before interest, income taxes, depreciation and amortization,
stock-based compensation expense, casualty losses or gains,
impairment losses, changes in the fair value of derivatives,
restructuring related income or expenses, acquisition and
integration costs, and certain non-cash, nonrecurring, or other
items that are included in net income that VWE does not consider
indicative of its ongoing operating performance. Adjusted EBITDA
margin is the ratio of adjusted EBITDA to net revenue.
Adjusted net income/(loss) is defined as net income/(loss) as
reported adjusted for the impacts of amortization of intangible
assets, acquisition integration costs, gains or losses on
disposition of assets, gain on litigation of proceeds, COVID
impact, and inventory acquisition basis adjustment and also
adjusted for a normalized tax rate. Adjusted net
income/(loss) per share is calculated based on the weighted average
shares outstanding for the period.
Adjusted EBITDA, adjusted net income/(loss) and adjusted net
income/(loss) per share are not recognized measures of financial
performance under GAAP. VWE believes these non-GAAP measures
provide investors with additional insight into the underlying
trends of VWE’s business and assist in analyzing VWE’s performance
across reporting periods on a consistent basis by excluding items
that VWE does not believe are indicative of its core operating
performance, which allows for a better comparison against
historical results and expectations for future performance.
Adjusted EBITDA and adjusted net income have certain limitations as
analytical tools, and they should not be considered in isolation or
as a substitute for analysis of results as reported under U.S.
GAAP. Adjusted EBITDA, adjusted net income/(loss) and
adjusted net income/(loss) per share, as presented, may produce
results that vary from the most comparable GAAP measure and may not
be comparable with a similarly defined non-GAAP measure used by
other companies.
In evaluating adjusted EBITDA, adjusted net income/(loss) and
adjusted net income/(loss) per share, be aware that in the future
the Company may incur expenses that are the same as or similar to
some of the adjustments in this presentation. VWE’s
presentation of adjusted EBITDA and adjusted net income should not
be construed as an implication that future results will be
unaffected by the types of items excluded from the calculation of
these non-GAAP measures.
Forward-Looking Statements
Some of the statements contained in this press release are
forward-looking statements within the meaning of applicable
securities laws (collectively, “forward-looking statements”).
Forward-looking statements are all statements other than those of
historical fact, and generally may be identified by the use of
words such as “anticipate,” “believe,” “continue,” “driving,”
“estimate,” “expect,” “future,” “intend,” “may,” “making,”
“outlook,” “plan,” “project,” “should,” “will,” “would” or other
similar expressions that indicate future events or trends. These
forward-looking statements include, but are not limited to,
estimates and forecasts of financial and performance metrics,
projections of market opportunity and market share, business plans
and strategies, expansion and acquisition opportunities, potential
synergies from prior acquisitions, growth prospects and consumer
and industry trends. These statements are based on various
assumptions, whether or not identified in this news release, and on
the current expectations of VWE’s management. These forward-looking
statements are not intended to serve as, and should not be relied
on by any investor as, a guarantee of actual performance or an
assurance or definitive statement of fact or probability.
Actual events and circumstances are difficult or impossible to
predict and may differ materially from those contained in or
implied by such forward-looking statements. These
forward-looking statements are subject to a number of risks and
uncertainties, many of which are beyond the control of VWE.
Factors that could cause actual results to differ materially from
the results expressed or implied by such forward-looking statements
include, among others: the Company’s limited experience operating
as a public company and its ability to remediate its material
weakness in internal control over financial reporting and to
maintain effective internal control over financial reporting, the
ability of the Company to retain key personnel, the effect of
economic conditions on the industries and markets in which VWE
operates, including financial market conditions, rising inflation,
fluctuations in prices, interest rates and market demand; risks
relating to the uncertainty of projected financial information; the
effects of competition on VWE’s future business; risks related to
the organic and inorganic growth of VWE’s business and the timing
of expected business milestones; the potential adverse effects of
the ongoing COVID-19 pandemic on VWE’s business and the U.S.
economy; declines or unanticipated changes in consumer demand for
VWE’s products; VWE’s ability to adequately source grapes and other
raw materials and any increase in the cost of such materials; the
impact of environmental catastrophe, natural disasters, disease,
pests, weather conditions and inadequate water supply on VWE’s
business; VWE’s level of insurance against catastrophic events and
losses; VWE’s significant reliance on its distribution channels,
including independent distributors; potential reputational harm to
VWE’s brands from internal and external sources; possible decreases
in VWE’s wine quality ratings; integration risks associated with
recent acquisitions; possible litigation relating to misuse or
abuse of alcohol; changes in applicable laws and regulations and
the significant expense to VWE of operating in a highly regulated
industry; VWE’s ability to maintain necessary licenses; VWE’s
ability to protect its trademarks and other intellectual property
rights; risks associated with the Company’s information technology
and ability to maintain and protect personal information; VWE’s
ability to make payments on its indebtedness; and those factors
discussed in the Company’s most recent Annual Report on Form 10-K
and in subsequent Quarterly Reports on Form 10-Q or other reports
filed with the Securities and Exchange Commission. There may be
additional risks including other adjustments that VWE does not
presently know or that VWE currently believes are immaterial that
could also cause actual results to differ from those expressed in
or implied by these forward-looking statements. In addition,
forward-looking statements reflect VWE’s expectations, plans or
forecasts of future events and views as of the date and time of
this news release. VWE undertakes no obligation to update or
revise any forward-looking statements contained herein, except as
may be required by law. Accordingly, undue reliance should not be
placed upon these forward-looking statements.
Financial Tables Follow.
Contacts:
Investors
Deborah K. Pawlowski, Kei Advisors LLC dpawlowski@keiadvisors.com
Phone: 716.843.3908 |
Media Mary Ann
Vangrin MVangrin@vintagewineestates.com |
Vintage Wine Estates,
Inc.Condensed Consolidated Balance
Sheets(in thousands)
|
|
September 30, 2022 |
|
|
June 30, 2022 |
|
|
|
(Unaudited) |
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash |
|
$ |
44,622 |
|
|
$ |
45,492 |
|
Restricted cash |
|
|
- |
|
|
|
4,800 |
|
Accounts receivable, net |
|
|
38,424 |
|
|
|
38,192 |
|
Other receivables |
|
|
3,071 |
|
|
|
3,866 |
|
Inventories |
|
|
201,940 |
|
|
|
192,102 |
|
Assets held for sale |
|
|
6,553 |
|
|
|
- |
|
Current interest rate swap asset |
|
|
5,826 |
|
|
|
2,877 |
|
Prepaid expenses and other current assets |
|
|
9,478 |
|
|
|
13,394 |
|
Total current assets |
|
|
309,914 |
|
|
|
300,723 |
|
Property, plant, and equipment,
net |
|
|
228,204 |
|
|
|
236,100 |
|
Operating lease right-of-use
assets |
|
|
35,509 |
|
|
|
- |
|
Finance lease
right-of-use-assets |
|
|
689 |
|
|
|
- |
|
Goodwill |
|
|
154,951 |
|
|
|
154,951 |
|
Intangible assets, net |
|
|
62,672 |
|
|
|
64,377 |
|
Interest rate swap asset |
|
|
12,555 |
|
|
|
6,280 |
|
Other assets |
|
|
5,187 |
|
|
|
3,464 |
|
Total assets |
|
$ |
809,681 |
|
|
$ |
765,895 |
|
Liabilities, redeemable
noncontrolling interest, and stockholders' equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Line of credit |
|
$ |
140,066 |
|
|
$ |
144,215 |
|
Accounts payable |
|
|
20,076 |
|
|
|
13,947 |
|
Accrued liabilities and other payables |
|
|
27,867 |
|
|
|
24,204 |
|
Current operating lease liabilities |
|
|
5,197 |
|
|
|
- |
|
Current finance lease liabilities |
|
|
263 |
|
|
|
- |
|
Current maturities of long-term debt |
|
|
14,738 |
|
|
|
14,909 |
|
Total current liabilities |
|
|
208,207 |
|
|
|
197,275 |
|
Other long-term liabilities |
|
|
6,140 |
|
|
|
6,491 |
|
Long-term debt, less current maturities |
|
|
165,577 |
|
|
|
169,095 |
|
Long-term operating lease liabilities |
|
|
31,637 |
|
|
|
- |
|
Long-term finance lease liabilities |
|
|
429 |
|
|
|
- |
|
Deferred tax liability |
|
|
29,952 |
|
|
|
29,979 |
|
Deferred gain |
|
|
10,332 |
|
|
|
10,666 |
|
Total liabilities |
|
|
452,274 |
|
|
|
413,506 |
|
Commitments and contingencies
(Note 13) |
|
|
|
|
|
|
Redeemable noncontrolling interest |
|
|
1,282 |
|
|
|
1,663 |
|
Stockholders' equity: |
|
|
|
|
|
|
Preferred stock, no par value, 2,000,000 shares authorized, and
none issued and outstanding at September 30, 2022 and June 30,
2022. |
|
|
- |
|
|
|
- |
|
Common stock, no par value, 200,000,000 shares authorized,
61,691,054 issued and 58,819,160 outstanding at September 30, 2022
and 60,461,611 issued and outstanding at June 30, 2022. |
|
|
- |
|
|
|
- |
|
Additional paid-in capital |
|
|
382,347 |
|
|
|
377,897 |
|
Treasury stock, at cost: 2,871,894 shares held at September 30,
2022 and June 30, 2022, respectively. |
|
|
(26,034 |
) |
|
|
(26,034 |
) |
Retained earnings (accumulated deficit) |
|
|
406 |
|
|
|
(571 |
) |
Total Vintage Wine Estates, Inc. stockholders' equity |
|
|
356,719 |
|
|
|
351,292 |
|
Noncontrolling interests |
|
|
(594 |
) |
|
|
(566 |
) |
Total stockholders' equity |
|
|
356,125 |
|
|
|
350,726 |
|
Total liabilities, redeemable noncontrolling interest, and
stockholders' equity |
|
$ |
809,681 |
|
|
$ |
765,895 |
|
Vintage Wine Estates, Inc.
Condensed Consolidated Statements of
Operations(in thousands, except per share data)
|
|
Three Months Ended September 30, |
|
|
|
2022 |
|
|
2021 |
|
Net
revenues |
|
|
|
|
|
|
Wine, spirits and cider |
|
$ |
52,052 |
|
|
$ |
36,287 |
|
Nonwine |
|
|
25,810 |
|
|
|
19,400 |
|
|
|
|
77,862 |
|
|
|
55,687 |
|
Cost of
revenues |
|
|
|
|
|
|
Wine, spirits and cider |
|
|
34,522 |
|
|
|
20,588 |
|
Nonwine |
|
|
13,192 |
|
|
|
11,662 |
|
|
|
|
47,714 |
|
|
|
32,250 |
|
Gross
profit |
|
|
30,148 |
|
|
|
23,437 |
|
Selling, general, and
administrative expenses |
|
|
34,244 |
|
|
|
16,983 |
|
Amortization expense |
|
|
1,811 |
|
|
|
651 |
|
Gain on litigation
proceeds |
|
|
(530 |
) |
|
|
- |
|
Gain on
sale of property, plant, and equipment |
|
|
(452 |
) |
|
|
(340 |
) |
Income (loss) from
operations |
|
|
(4,925 |
) |
|
|
6,143 |
|
Other income (expense) |
|
|
|
|
|
|
Interest expense |
|
|
(3,381 |
) |
|
|
(3,603 |
) |
Net unrealized gain on interest rate swap agreements |
|
|
9,327 |
|
|
|
1,393 |
|
Other, net |
|
|
271 |
|
|
|
39 |
|
Total other income
(expense), net |
|
|
6,217 |
|
|
|
(2,171 |
) |
Income before provision for
income taxes |
|
|
1,292 |
|
|
|
3,972 |
|
Income
tax provision |
|
|
658 |
|
|
|
1,193 |
|
Net
income |
|
|
634 |
|
|
|
2,779 |
|
Net loss attributable to the noncontrolling interests |
|
|
(343 |
) |
|
|
(25 |
) |
Net income
attributable to Vintage Wine Estates, Inc. |
|
|
977 |
|
|
|
2,804 |
|
Accretion on redeemable Series B stock |
|
|
- |
|
|
|
- |
|
Net income allocable to common stockholders |
|
$ |
977 |
|
|
$ |
2,804 |
|
|
|
|
|
|
|
|
Net earnings per share
allocable to common stockholders |
|
|
|
|
|
|
Basic |
|
$ |
0.02 |
|
|
$ |
0.05 |
|
Diluted |
|
$ |
0.02 |
|
|
$ |
0.05 |
|
Weighted average
shares used in the calculation of earnings per share allocable to
common stockholders |
|
|
|
|
|
|
Basic |
|
|
58,819,160 |
|
|
|
60,461,611 |
|
Diluted |
|
|
58,819,160 |
|
|
|
60,461,611 |
|
Vintage Wine Estates,
Inc.Condensed Consolidated Statements of Cash
Flows(in thousands)
|
|
Three Months Ended September 30, |
|
|
|
2022 |
|
|
2021 |
|
Cash flows from
operating activities |
|
|
|
|
|
|
Net income |
|
$ |
634 |
|
|
$ |
2,779 |
|
Adjustments to reconcile net income to net cash from operating
activities: |
|
|
|
|
|
|
Depreciation |
|
|
3,215 |
|
|
|
3,503 |
|
Non-cash operating lease expense |
|
|
37 |
|
|
|
- |
|
Amortization expense |
|
|
1,978 |
|
|
|
750 |
|
Stock-based compensation expense |
|
|
4,622 |
|
|
|
- |
|
Provision for doubtful accounts |
|
|
(280 |
) |
|
|
(15 |
) |
Net unrealized gain on interest rate swap agreements |
|
|
(9,327 |
) |
|
|
(1,393 |
) |
(Benefit) provision for deferred income tax |
|
|
(27 |
) |
|
|
- |
|
(Gain) on disposition of assets |
|
|
(118 |
) |
|
|
(6 |
) |
Deferred gain on sale leaseback |
|
|
(334 |
) |
|
|
(334 |
) |
Deferred rent |
|
|
(2,079 |
) |
|
|
128 |
|
Change in operating assets and liabilities (net of effect of
business combinations): |
|
|
|
|
|
|
Accounts receivable |
|
|
48 |
|
|
|
863 |
|
Other receivables |
|
|
795 |
|
|
|
(2,850 |
) |
Inventories |
|
|
(8,138 |
) |
|
|
(4,671 |
) |
Prepaid expenses and other current assets |
|
|
3,916 |
|
|
|
884 |
|
Other assets |
|
|
(1,766 |
) |
|
|
116 |
|
Accounts payable |
|
|
2,087 |
|
|
|
(3,071 |
) |
Accrued liabilities and other payables |
|
|
5,532 |
|
|
|
1,356 |
|
Net change in lease assets and liabilities |
|
|
1,288 |
|
|
|
- |
|
Net cash provided by (used in) operating activities |
|
|
2,083 |
|
|
|
(1,961 |
) |
Cash flows from
investing activities |
|
|
|
|
|
|
Proceeds from disposition of assets |
|
|
- |
|
|
|
6 |
|
Purchases of property, plant, and equipment |
|
|
(3,454 |
) |
|
|
(7,792 |
) |
Label design expenditures |
|
|
(95 |
) |
|
|
(59 |
) |
Net cash used in investing activities |
|
|
(3,549 |
) |
|
|
(7,845 |
) |
Cash flows from
financing activities |
|
|
|
|
|
|
Principal payments on line of credit |
|
|
(34,466 |
) |
|
|
(6,304 |
) |
Proceeds from line of credit |
|
|
30,317 |
|
|
|
17,675 |
|
Outstanding checks in excess of cash |
|
|
4,042 |
|
|
|
387 |
|
Principal payments on long-term debt |
|
|
(3,753 |
) |
|
|
(2,482 |
) |
Principal payments on finance leases |
|
|
(67 |
) |
|
|
- |
|
Distributions to noncontrolling interest |
|
|
(66 |
) |
|
|
- |
|
Repurchase of public warrants |
|
|
(172 |
) |
|
|
- |
|
Payments on acquisition payable |
|
|
(39 |
) |
|
|
(74 |
) |
Net cash (used in) provided by financing activities |
|
|
(4,204 |
) |
|
|
9,202 |
|
Net change in cash and
restricted cash |
|
|
(5,670 |
) |
|
|
(604 |
) |
Cash
and restricted cash, beginning of period |
|
|
50,292 |
|
|
|
123,679 |
|
Cash and restricted cash, end of period |
|
$ |
44,622 |
|
|
$ |
123,075 |
|
Supplemental cash flow
information |
|
|
|
|
|
|
Cash paid during the period for: |
|
|
|
|
|
|
Interest |
|
$ |
3,187 |
|
|
$ |
2,603 |
|
Income taxes |
|
$ |
- |
|
|
$ |
- |
|
Noncash investing and financing activities: |
|
|
|
|
|
|
Increase in operating lease assets and liabilities upon adoption of
ASC 842 |
|
$ |
36,776 |
|
|
$ |
- |
|
Increase in finance lease assets and liabilities upon adoption of
ASC 842 |
|
$ |
759 |
|
|
$ |
- |
|
Vintage Wine Estates, Inc.
Segment Data($'s in
thousands)
|
Three months ended September 30, |
|
|
|
|
|
|
|
Net Revenue |
2022 |
|
|
2021 |
|
|
$ Change |
|
|
% Change |
|
Wholesale |
$ |
23,381 |
|
|
$ |
16,203 |
|
|
$ |
7,178 |
|
|
|
44.3 |
% |
Direct to Consumer |
|
20,497 |
|
|
|
14,915 |
|
|
|
5,582 |
|
|
|
37.4 |
% |
Business to Business |
|
34,084 |
|
|
|
24,467 |
|
|
|
9,617 |
|
|
|
39.3 |
% |
Corporate and Other/ Non-Allocable |
|
(100 |
) |
|
|
102 |
|
|
|
(202 |
) |
|
* |
|
Total |
$ |
77,862 |
|
|
$ |
55,687 |
|
|
$ |
22,175 |
|
|
|
39.8 |
% |
* Not meaningful
|
Three months ended September 30, |
|
|
|
|
|
|
|
Operating
Income |
2022 |
|
|
2021 |
|
|
Dollar Change |
|
|
Percent Change |
|
Wholesale |
$ |
1,828 |
|
|
$ |
4,188 |
|
|
$ |
(2,360 |
) |
|
|
(56.4 |
%) |
Direct to Consumer |
|
2,355 |
|
|
|
2,539 |
|
|
|
(184 |
) |
|
|
(7.2 |
%) |
Business to Business |
|
12,761 |
|
|
|
7,514 |
|
|
|
5,247 |
|
|
|
69.8 |
% |
Corporate and Other/ Non-Allocable |
|
(21,869 |
) |
|
|
(8,098 |
) |
|
|
(13,771 |
) |
|
|
170.1 |
% |
Total |
$ |
(4,925 |
) |
|
$ |
6,143 |
|
|
$ |
(11,068 |
) |
|
|
(180.2 |
%) |
|
|
Three Months Ended September 30, |
|
|
|
|
|
|
|
(in thousands) |
|
2022 |
|
|
2021 |
|
|
Unit Change |
|
|
% Change |
|
Wholesale |
|
|
539 |
|
|
|
209 |
|
|
|
330 |
|
|
|
157.9 |
% |
B2B |
|
* |
|
|
* |
|
|
* |
|
|
* |
|
DTC |
|
|
99 |
|
|
|
60 |
|
|
39 |
|
|
|
65.0 |
% |
Total case
volume |
|
|
638 |
|
|
|
269 |
|
|
|
369 |
|
|
|
137.2 |
% |
*B2B segment sales are primarily not related to case volumes,
therefore the Company has elected to eliminate case volumes for
this segment as it would not be indicative of the underlying
performance of the business.
Vintage Wine Estates, Inc.
Reconciliation of Net Income to Adjusted
EBITDA(Unaudited, in thousands)
|
Three Months Ended |
|
(in thousands) |
September 30, 2022 |
|
|
September 30, 2021 |
|
Net income |
$ |
634 |
|
|
$ |
2,779 |
|
Interest expense |
|
3,381 |
|
|
|
3,603 |
|
Income tax provision |
|
658 |
|
|
|
1,193 |
|
Depreciation |
|
3,215 |
|
|
|
3,623 |
|
Amortization |
|
1,811 |
|
|
|
531 |
|
Stock-based compensation
expense |
|
4,622 |
|
|
|
- |
|
Net unrealized gain on interest
rate swap agreements |
|
(9,327 |
) |
|
|
(1,393 |
) |
Gain on disposition of
assets |
|
(118 |
) |
|
|
(340 |
) |
Deferred rent adjustment |
|
- |
|
|
|
128 |
|
Acquisition integration
costs |
|
391 |
|
|
|
- |
|
Deferred gain on sale
leaseback |
|
(334 |
) |
|
|
- |
|
Gain on litigation proceeds |
|
(530 |
) |
|
|
- |
|
Inventory acquisition basis adjustment |
|
663 |
|
|
|
437 |
|
Adjusted EBITDA |
$ |
5,066 |
|
|
$ |
10,561 |
|
Revenue |
$ |
77,862 |
|
|
$ |
55,687 |
|
Adjusted EBITDA margin |
|
6.5 |
% |
|
|
19.0 |
% |
Reconciliation of Net Income to Adjusted
Net Income(Unaudited, in thousands, except per share
data)
|
Three Months Ended |
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
Net income |
$ |
634 |
|
|
$ |
2,779 |
|
Amortization of intangible
assets |
|
1,705 |
|
|
|
531 |
|
Acquisition integration
costs |
|
391 |
|
|
|
- |
|
(Gain)/loss on disposition of
assets |
|
(118 |
) |
|
|
(340 |
) |
Inventory acquisition basis
adjustment |
|
663 |
|
|
|
437 |
|
Tax effect of above |
|
(555 |
) |
|
|
(132 |
) |
Non-GAAP net income |
|
2,721 |
|
|
|
3,275 |
|
Non-GAAP net income per diluted share |
$ |
0.05 |
|
|
$ |
0.05 |
|
Grafico Azioni Vintage Wine Estates (NASDAQ:VWEWW)
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Grafico Azioni Vintage Wine Estates (NASDAQ:VWEWW)
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