By Ian Gilson, PhD, CFA
OTC:ESDI
On March 31, 2017 Eastside Distilling (ESDI) filed its 10K for 2016 with the SEC and held a conference call on April 6, 2017 to discuss the results.
Gross sales declined from the 4Q15 due to a change in strategy made in the 3Q15. Revenue had been driven by volume and it was decided to emphasize higher margined products, albeit at lower price points, such as the popular Potato Vodka. One impact of this change was an increase in excise tax per case as a proportion of gross sales per case. Excise taxes are based on the alcohol content and do not depend on selling prices.
As we had mentioned special event and retail sales declined in 2016 due to fewer tasting rooms. This should reverse in 2017 since new rooms have been added. This revenue carries no distributor costs.
Sales outside of Oregon increased from $0.2 million to nearly $1 million, sales from retail operations declined from $1.3 million to $1.2 million and sales to the Oregon Liquor Control Commission increased from $0.7 to $0.9 million.
The company has announced its first sales in Alaska and we expect continued growth in sales outside of Oregon.
Eastside distilling stated that its ah sufficient cash and cash flow to carry it through the next twelve months. The costs of raising money had a significant negative impact on cash flow in 2016.
The company intends to move its spirits more into the Super Premium sector of the spirits market, with an emphasis on the Potato Vodka and the Burnside Oregon Oaked Bourbon (with a higher alcohol content). Since the company now has bottling capability it can offer private label spirits and small volume seasonal offerings at minimal extra costs and above average selling prices.
Other areas of revenue are e-commerce sales, but there may be legal problems since the laws on wine may not carry over to the spirits world.
Overall we have a positive outlook for increased revenue and declining expenses for 2017 and 2018.
Recent EAST News
- Eastside Distilling Reports Fourth Quarter 2023 Financial Results • PR Newswire (US) • 04/01/2024 08:30:00 PM
- Eastside Distilling, Inc. to Report 2023 Fiscal Year Results on Monday, April 1, 2024 • PR Newswire (US) • 03/27/2024 02:36:00 PM
- Eastside Distilling to Attend the 36th Annual Roth Conference March 17-19, 2024 and schedules 4th Quarter Earnings Call • PR Newswire (US) • 03/11/2024 06:56:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 03/11/2024 03:45:30 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 01/31/2024 05:30:42 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/26/2024 03:54:53 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/04/2024 05:32:18 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/13/2023 04:50:13 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 12/12/2023 04:57:28 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/01/2023 03:45:43 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 11/27/2023 04:52:12 PM
- Eastside Distilling Reports Third Quarter 2023 Financial Results • PR Newswire (US) • 11/14/2023 09:10:00 PM
- Form EFFECT - Notice of Effectiveness • Edgar (US Regulatory) • 11/07/2023 05:15:34 AM
- Eastside Distilling, Inc. to Report Third Quarter 2023 Financial Results on Tuesday, November 14, 2023 • PR Newswire (US) • 11/06/2023 05:18:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/26/2023 07:28:47 PM
- Form S-1 - General form for registration of securities under the Securities Act of 1933 • Edgar (US Regulatory) • 10/25/2023 07:34:48 PM
- Form PRE 14A - Other preliminary proxy statements • Edgar (US Regulatory) • 10/25/2023 07:20:07 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/05/2023 10:51:15 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/05/2023 10:51:09 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/05/2023 10:51:05 PM
- Eastside Distilling Announces Completion of Debt-for-Equity Exchange • PR Newswire (US) • 10/02/2023 12:15:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 09/29/2023 08:17:20 PM
- Eastside Distilling Reports Second Quarter 2023 Financial Results • PR Newswire (US) • 08/14/2023 08:40:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/14/2023 08:28:23 PM
FEATURED Cannabix's Breath Logix Alcohol Device Delivers Positive Impact to Private Monitoring Agency in Montana, USA • Apr 25, 2024 8:52 AM
Bantec Reports an Over 50 Percent Increase in Sales and Profits in Q1 2024 from Q1 2023 • BANT • Apr 25, 2024 10:00 AM
Kona Gold Beverages, Inc. Announces Name Change to NuVibe, Inc. and Initiation of Ticker Symbol Application Process • KGKG • Apr 25, 2024 8:30 AM
Axis Technologies Group and Carbonis Forge Ahead with New Digital Carbon Credit Technology • AXTG • Apr 24, 2024 3:00 AM
North Bay Resources Announces Successful Equipment Test at Bishop Gold Mill, Inyo County, California • NBRI • Apr 23, 2024 9:41 AM
Epazz, Inc.: CryObo, Inc. solar Bitcoin operations will issue tokens • EPAZ • Apr 23, 2024 9:20 AM