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Thanks for the response..
Probably $5-8
ALCON:
Sent traffic to the law firm to give them some background and join, if nothing more than to give them standing and continue forward. Only lost a couple hundred on one trade here, while making much more on the run up in early April, but if nothing will give them what they need to continue forward...standing. To continue, I will stand side by side with anyone, despite how much these greedy ass lawyers will take/make to ensure that those that attempt to use the uniform and the Services as a front/slogan/gimmick to gain financially all the while mortgaging our reputation as a result and abusing this hard-earned position, to gain personally.
I truly have a disdain for BRCC, its leadership and all those involved in this IPO - while I am just one retiree in the NCR, I will do all I can to ensure their questionable activities and actions are brought to light in the military community and beyond. Have started reaching out to my network and professional affiliations in an attempt to have them sever any ties they may have with them and ensure they do not support BRCC in any future transactions. As well, I have reached out to a few publications in an attempt to have a story published on the most recent activities, which cater to the service community. Lastly, compiling a list of vendors who sell their products and will be asking them to discontinue their affiliation/contracts with the company.
"The world will not be destroyed by those who do evil, but by those who watch them without doing anything." — Albert Einstein
Below is what happens when you mislead investors and a board fails to properly execute its fiduciary responsibilities...this will haunt them for years now with litigation, and why....because BRCC (Silverbox) leadership was greedy and corrupt. As when they wore uniforms...their mission, their job was to protect others, in short, they have failed mission!
BRCC INVESTIGATION ALERT: Hittelman Strunk Announces Investigation into BRC Inc. (BRCC, BRCC-WT) f/k/a SilverBox Engaged Merger Corp I Investors and Encourages Investors with Losses to Inquire About Securities Class Action Investigation
PR Newswire
NEWPORT, Calif., May 4, 2022
NEWPORT, Calif., May 4, 2022 /PRNewswire/ --
WHY:
Hittelman Strunk, a securities firm, announces an investigation of potential securities fraud claims on behalf of shareholders of BRC Inc., f/k/a SilverBox Engaged Merger Corp I (NYSE: BRCC, BRCC-WT) resulting from allegations that BRC Inc. breached their fiduciary duties by prioritizing their own interests when they announced redemption of all outstanding public warrants before properly disclosing the effects of shareholder dilution. People at the company claim that timely public disclosure is not the responsibility of BRC Inc.
SO WHAT:
If you purchased BRC Inc. securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. Hittelman Strunk is preparing a class action seeking recovery of investor losses.
WHAT TO DO NEXT:
To join the prospective class action, go to https://www.hittelmanstrunk.com/brcc.
WHAT IS THIS ABOUT:
On March 30, 2022, the SEC proposed extensive new SPAC rules that require enhanced and timely dilution disclosure.
a. https://www.sec.gov/rules/proposed/2022/33-11048.pdf
On April 4, 2022, BRC Inc. announced Redemption of all outstanding warrants
a. https://www.yahoo.com/now/brc-inc-announces-redemption-outstanding-200500254.html
On April 19, 2022, BRC Inc. filed an amendment to their public disclosure regarding their redemption announcement.
From April 4, 2022, to April 19, 2022, BRC's stock price fell $10.60 per share, or
-34.48%, to close at $17.68 per share on April 19, 2022, causing significant harm to investors.
As of May 2, 2022, BRC's stock price closed at $13.70; down approximately 60% from its April 11, 2022 closing price of $33.11.
WHY HITTELMAN STRUNK:
We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience and resources. Many of these firms do not actually litigate securities class actions. Be wise in selecting counsel. Hittelman Strunk represents investors and concentrates its practice in getting justice for investors.
Contact
Hittelman Strunk LLP
https://www.hittelmanstrunk.com/
Cision View original content:https://www.prnewswire.com/news-releases/brcc-investigation-alert-hittelman-strunk-announces-investigation-into-brc-inc-brcc-brcc-wt-fka-silverbox-engaged-merger-corp-i-investors-and-encourages-investors-with-losses-to-inquire-about-securities-class-action-investi-301539234.html
SOURCE Hittelman Strunk
I agree brother. I will buy more at the bottom and ride the wave back up. Sorry about your loss of your house. I live in Canon City…moved there from the Springs. The fire danger is real and hope to get on a fire sale of shares to make some money.
Love the product and get my month delivery of Black Beards delight.
Respectfully, you kind of have to separate the new public entity post-SPAC, and how prior owners divested shares, from their former entity and involvement and solidarity.
Take a breath and realize they still have an enormous corporate and personal effort into giving back to veterans, LEO, and first responders; as well as the community at large.
I was myself a beneficiary after we lost our home in CO in the wildfires this past December.
They are STILL good people.
What they Chose to do with THEIR shares is of no concern to me. Frankly, after all the work they put in building the company i am actually happy for them to make such a solid paycheck.
I understand your frustration, and hear that you think their honor and loyalty are in question. I respectfully disagree, but we are entitled to different opinions- this entitlement of divergent opinion comes on the back of your service to this country.
Either way, I also hope for a dip to single dollars, as I firmly believe BRCC will be +$50 within 1-2 years.
Buy and hold. iMO
See the greedy arse management team is still reaping what they sowed...would like to see it drop to single dollars...then have them default or pull some other dumbass maneuver and bring down the entire thing...
Truly am ashamed, disappointed and frankly pissed they have their "branding" from my branch of service.
Honor and integrity of all involved went right out the window....with their future reputations.
Has zero to do with retail - The merger terms/structure were shit. The companies/shells involved all took a bite of BRCCs ass and warrants were just part of the crap structure they built in an attempt to please all involved. What they ultimately did was show the larger market the ineptness of the management team and where their priorities ultimately lie. They have little to no interest in seeing this succeed and want their capital now! They threw customers and common under the bus as they ran over them with these antics...The market it pricing/treating them accordingly - I will not be surprised to see it dive further. I used to be a huge advocate for the company...I have cut all ties....
So I take it the company has been diluting for a while? Maybe to strengthen position in retail? Thoughts.......
Give the management team kudos for the quickest destruction of a name/brand I have seen in some time. They have effectively killed all value and initial momentum from the excitement of the IPO and displayed for any potential investors they have ZERO issues with diluting and killing any future value. Talk about poising your own future for the sake of a short-term gain.
Continuing to reach out to professional network and educate them of the actions of BRCCs leadership team, also ensuring current company has nothing to do with them, now and in the future. They truly imploded on themselves...captured all the companies/individuals involved - just so when the names come up in the future, I know to let my business partners to not only walk away, but run and dont look back!
Bane, this is exactly what I did and made a substantial profit, that is not my concern. My concern is the way all involved executed this merger and subsequent warrants - mainly the timing and resultant pricing action. I would much have preferred to hold the security for at least a year or years and the company to have been honest. It was simply, a bait and switch; it was corrupt, and it was pure greed on all involved. I have contacted the SEC as well and asked them to investigate (all parties/companies involved) given the volatility and the fact we have not seen any insider filings during this time (I honestly expect them to file soon and validate even more so the corruption - we shall see). Do you mean to assume, that insiders did not take advantage of the most recent pricing or positioned previously knowing a manipulative price would be enacted? In short, the entirety of the IPO since inception has been them throwing stinky trash on a fire, it absolutely reeks of corruption and greed. Not to mention it sets shareholders up for future failure given the unprofessional nature of the management's activities.
I will not speak for others, I speak for myself and will do what I feel/know to be right and just, always have...
Thanks back to you...retired out of the building a few years ago and still know quite a few folks in the E-ring...have reached out to a few of them, enlightening them, or more accurately updating them of the most recent activities of BRCC. They used to set up in the concourse just inside the entrance for the busses/metro next to the Bank of America....I am doing all I can to limit their presence in the building moving forward.
Sorry, as a veteran, I will not stand idly by and watch a company that advertises and frankly profits from their veteran status, while speaking out both sides of their mouth. -- We support you, until there are millions involved then we sell out our brothers and sisters without blinking an eye. They have lost all of my respect...I hope they sleep well at night...well not really.
No matter how you feel about the company, you can still make money on the way up and flip out. I wish I would have bought more on the recent bottom. As with any company that goes public it runs and drops with the selling of warrants or shares to secure the IPO.
Honestly your letter to the military retail will fall on deaf ears as they are in it to mark retail sales not make money in the market. It would take a wave of letters such as your to raven start to convince them not to sell BRCC products.
Thank you for your service Brother. Retire in 2015 after 33yrs at the top of the enlisted corps.
My position on BRCCs leadership and this new entity has changed significantly after these most recent activities and corrupt actions on the part of all involved. I would not have an issue with this if they executed actions differently and did not throw the small retail investor and their longtime supporters under the bus of big money. As a commander I always fiercely defended my troops and punished, in accordance with UCMJ, those which violated the trust of the unit and nation.
BRCC leadership violated the trust and confidence of their customers and supporters with their most recent actions.
I used to be large advocate of the company/products, educating my peers in the Pentagon, skydivers at the drop zone and my professional network here in the National Capital Region - now I will be one of their largest opponents.
For my part, I have drafted correspondence to AAFES, MCX, and Navy Exchange Service Command making them aware of the company's questionable actions and their most recent financial activities - while I will not label them as illegal, I will label them as corrupt and in violation of the values we hold as service members, veterans, and patriots.
Good luck to you as well.
I don’t read into this the severity that you do, in fact I just bought more.
But then again I know several of the owners on a closer level that most.
I will continue to buy and see the value +$50 by 2023.
Will BRCC be successful, they took countless steps backwards with today's filing(s); only time will tell, but today the veteran leadership of BRCC sold out to wall street and in the process threw quite a few brothers and sisters to the wolves of big capital. I would not be surprised to see a longer term decrease in shareholder value/trust as a result of this horrific action by insiders and as a result, they will likely face a longer time to recover due to the short-sighted actions by greedy insiders. They sold their souls today, mortgaged their honor and integrity and damaged their reputation(s), potentially indefinitely....
I thankfully exited at much higher prices after the warrant call and short run up, could see the market/insiders were manipulating the price and churning volume/shares. My exit from the security, again, indefinitely, as well as terminated all my business with the company and will not purchase any BRCC products for the foreseeable future.
In short, do not execute or deal with a business that treats its customers in such a dishonorable manner. Best of luck to you in your dealings with this questionable team...
Shamed to share a uniform with these fellas on this day...
I see the pullback, sell off, sell out, whatever, as a long term buying opp.
Company is going nowhere but upward.
One can hope, but hope does not work out so well. They not only exercised all the warrants, but then pivoted, piling back on with restricted units and other incentives for insiders. In short, looks like a sell out to big money and every insider setting themselves up with the golden parachutes at the expense of the small guy/retail holders. Truly a shame that the fellas that started this turned so quickly on the retail holder/customer...that was quick. Company has not even established itself and brand. In short, looks like a huge sell out and breach of trust on part of initial ownership team.
Ah, short term pain I think
Nope and unfortunately now insiders are diluting and getting greedy at the same time. I will be so sad to watch this military owned company get ruined by wall street...looking like I may need to find a new membership and say goodbye to my beyond black...sooo sad. I thought our home team would protect us from the leaches up in NY, but appears not...
Hit my $24 and bounced. Let’s see if she holds
I’d like to see it retrace even as far as $24 area, and find support.
Also just to give me more time to buy low.
Agree 100% this will be +$50 within that timeframe.
Glad it is cooling off a bit, it needs to consolidate and get rid of some of the chaf. Now needs to consolidate in the 23 to 28 range and establish another floor while the company continues to increase footprint and product. With all the warrants out of the way, also lets shareholders know what the full picture/share count looks like, know guessing when dilution will/would occur. Zero doubt this will be 50.00 within two to three years..
This thing is a powerhouse...even on significant down days on the market, BRCC continue to buck the trend...up to all time highs, AGAIN. It does need to consolidate some....wont mind a down day or two....
BLUF: Solid company and expect exponential growth with this leadership team and those surrounding them...they have put together a solid proven team
No manipulation to see here. Move along.
Up on huge volume of 8 million yesterday, and then down 13% on 15k shares.
Going up where we both know it should live RFB. Solid day!
Up another 7% today and at all time highs since the IPO...as one commentator put it....the red state Starbucks....Hope on while you can...this will be 50 by end of next year....easy doubling of money...
Loving the action here and volume. MMs and shorts finally stopped bottom feeding and the volume speaks for itself. Expect it to stay in the 19.00 to 25.00 for next quarter or to, but will start climbing again after some profit taking off the recent lows...
Looking more and more, that shorts are running out of strategies. While I will often allow brokers to borrow my shares, this is one that I told the brokerage to pound sand on!
Just saw this news on my account, on Friday MMs had an imbalance of 296,567 shares on the buy side. Market makers (and the same manipulators) are trying to keep this depressed best they can, but retail are snapping shares up...Insiders in the market need to stop the BS and let traders price the security as it should be...
Cheers right back, RFB.
I would not disagree and have received my Beyond Black for over two years now as well, I am also a shareholder...I heard it said this is the red state Starbucks and I have no doubt soon enough, you will see this company in the same league within the next five years (it will take them time to build out locations/branding and expand their offerings) but they will be in the 100.00 price range in quick order, all the while a whole new crew of "I should have got in early" will be whining, lol. Cheers!
Their games give believers in the company (I’ve been a BRCC member since 2015) a chance to buy more shares for cheap.
The sad and ugly part of the markets, watching MMs and insiders try to bottom feed shares after this report. This company is experiencing explosive growth and continues to do so. They will nearly triple locations and see double digit growth across the board, yet MMs try to profit from retail traders on the cheap....this is the reason for the anemic volume down here. They need to stop with the manipulation, scare tactics and price the security accordingly, thus resulting in proper volume.
BRC Inc. Reports Fourth Quarter and Full Year 2021 Financial Results
March 16 2022 - 07:00AM
Business Wire
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Beat Expectations for Net Revenue, Increasing 42% in 2021 to $233 million
Increases Full Year 2022 Revenue Outlook to $315 million
BRC Inc. (NYSE: BRCC), a rapidly growing and mission-driven premium coffee company founded to support Veterans, active-duty military, first responders and serve a broad customer base by connecting consumers with great coffee and a unique brand experience, today announced financial results for the fourth quarter and full year 2021.
“Growing customer enthusiasm for our coffee and mission continues to drive strong results as we increase brand awareness. People overwhelmingly want to buy from companies who share their values, and BRCC’s mission is one everyone can get behind,” said BRCC Founder and CEO Evan Hafer. “In the fourth quarter, we reached important milestones, placing BRCC ready-to-drink products in over 42,000 doors; and opening our sixteenth retail Outpost. This growth is important as we begin our journey as a public company, and it is essential to increasing our support for the Veteran, active-duty military, and first responder communities who are essential to everything we do at Black Rifle.”
“Prior to our offering, we were constrained in terms of capital, capacity and leadership talent. The public listing completed on Feb 9th addresses our capital constraint by adding $150 million to our balance sheet. Our RTD capacity situation is improving as we are in advanced discussions with several co-manufacturers that will enable us to address product demand that is currently unmet. We’ve also added new senior leaders to help us maximize our opportunities in the wholesale and outpost channels. We are more confident than ever in our ability to grow this business for the long term.”
Recent Business Highlights
Direct to Consumer (DTC) subscribers ended the year at 287,300, a 14% increase from 2020
Ready to Drink (RTD) doors grew 300% to 42,370 from 10,600 in 2020
Wholesale doors ended 2021 at 2,630, an increase of 127% from 2020
Ended the year with 16 Outposts, eight company-owned and eight franchised
Fourth Quarter 2021 Financial Details
Net revenue of $71.8 million, an increase of 19.9% year-over-year
Gross profit increased 3.0% to $24.7 million or 34.3% of net revenue
Net loss of $4.6 million
Adjusted EBITDA (non-GAAP) of ($0.3) million
Full Year 2021 Financial Details
Net revenue of $233.1 million, an increase of 42.2% year-over-year
Gross profit increased 29.2% to $89.7 million or 38.5% of net revenue
Net loss of $13.8 million
Adjusted EBITDA (non-GAAP) of $0.8 million
Fourth Quarter 2021 Results
Fourth quarter 2021 revenue increased 19.9% to $71.8 million from $59.9 million the fourth quarter of 2020. Direct to Consumer revenue increased 2.9% to $49.6 million compared to $48.3 million in the fourth quarter of 2020. Wholesale revenue increased 74.0% to $17.2 million compared to $9.9 million in the fourth quarter of 2020, and our Outpost revenue increased 181.1% to $5.1 million versus $1.8 million in the fourth quarter of 2020. The year-over-year growth in revenue was primarily driven by the continued growth in our Wholesale revenue channel due to expanding points of distribution and strong retail velocities in addition to the opening of four company owned outposts in Q4 of 2021.
Gross profit increased 3.0% to $24.7 million compared to $24.0 million in the fourth quarter of 2020. Gross margins decreased 570 basis points to 34.3% from 40.0% million for the fourth quarter of 2020. The decrease in gross profit was due to inflationary pressures on product and shipping costs (not yet offset by price increases) as well as product mix shift from our higher margin DTC channel into our Wholesale channel, which is principally comprised of sales of RTD.
Marketing expenses increased 5.8% to $11.1 million from $10.5 million in the fourth quarter of 2020. This increase was driven by increased ad spend to increase brand awareness as well as increased costs for inhouse production of content. As a percentage of revenue, marketing decreased 206 bps to 15.4% versus 17.5% in the fourth quarter of 2020.
Salaries, wages and benefits increased 9.9% to $9.0 million from $8.2 million in the fourth quarter of 2020, primarily due to the building out of the management teams within the outpost and wholesale channels. As a percentage of revenue, salaries, wages and benefits decreased 115bps to 12.5% as compared to 13.7% for the fourth quarter of 2020.
G&A expenses increased 120.5% to $8.7 million compared to $3.9 million in the fourth quarter of 2020. This increase is due primarily to increased technology costs and professional services. As a percentage of revenue, G&A increased 550 basis points to 12.1% compared to 6.6% in the fourth quarter of 2020.
In the fourth quarter of 2021, we had a net loss of $4.6 million and an adjusted EBITDA of ($0.3) million. In the fourth quarter of 2020, net income was $1 million and adjusted EBITDA was $2.5 million.
Financial Outlook
BRC Inc. provides guidance based on current market conditions and expectations for revenue, adjusted EBITDA, which is a non-GAAP financial measure, and new outpost openings.
For the full-year fiscal 2022, the Company expects:
Net revenue of $315 million
Positive Adjusted EBITDA
15 – 20 New Company-owned Outposts
The guidance provided above constitutes forward-looking statements and actual results may differ materially. Refer to the “Forward-Looking Statements” safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
We have not reconciled forward-looking Adjusted EBITDA to its most directly comparable GAAP measure, net income (loss), because we cannot predict with reasonable certainty the ultimate outcome of certain components of such reconciliations, including market-related assumptions that are not within our control, or others that may arise, without unreasonable effort. For these reasons, we are unable to assess the probable significance of the unavailable information, which could materially impact the amount of future net loss. See “Non-GAAP Financial Measures” for additional important information regarding Adjusted EBITDA.
A reconciliation of Adjusted EBITDA, a non-GAAP measure, to net loss, its most comparable financial measure under generally accepted accounting principles in the United States (“GAAP”), together with additional information about Adjusted EBITDA, has been provided below under the heading “Non-GAAP Financial Measures.”
Conference Call
A conference call to discuss the Company’s fourth quarter and full year 2021 results is scheduled for March 16, 2022, at 8:00 a.m. ET. Those who wish to participate in the call may do so by dialing (877) 407-0609 or (201) 689-8541 for international callers. A webcast of the call will be available on the investor relations page of the Company’s website at Black Rifle Coffee Company (BRCC). For those unable to participate in the conference call, a replay will be available after the conclusion of the call on March 16, 2022 through March 23, 2022. The U.S. toll-free replay dial-in number is (877) 660-6853, and the international replay dial-in number is (201) 612-7415. The replay passcode is 13727120.
About BRC Inc.
Black Rifle Coffee Company (BRCC) is a veteran-founded coffee company serving premium coffee to people who love America. Founded in 2014 by Green Beret Evan Hafer, Black Rifle develops their explosive roast profiles with the same mission focus they learned while serving in the military. BRCC is committed to supporting veterans, active-duty military, first responders and the American way of life.
To learn more about BRCC, visit www.blackriflecoffee.com, follow BRCC on social media, or subscribe to Coffee or Die Magazine's daily newsletter at https://coffeeordie.com/presscheck-signup.
Forward-Looking Statements
This press release contains management’s current intentions and expectations for the future, all of which are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include statements about the Company’s expectations, beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Actual results may differ materially due to various factors. The following include some but not all of the factors that could cause actual results or events to differ materially from those anticipated, including failure to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition and our ability to grow and manage growth profitably and retain our key employees; negative publicity impacting our brand and reputation, which may adversely impact our operating results; failure by us to maintain our message as a supportive member of the veteran and military communities and any other factors which may negatively impact the perception of our brand; our limited operating history, which may make it difficult to successfully execute our strategic initiatives and accurately evaluate future risks and challenges; failed marketing campaigns, which may cause us to incur costs without attracting new customers or realizing higher revenue; failure to attract new customers or retain existing customers; risks related to the use of social media platforms, including dependence on third-party platforms; failure to provide high-quality customer experience, which may impact our brand; decrease in success of the direct to consumer revenue channel; loss of one or more of co-manufacturers; failure to effectively manage or distribute our products through our wholesale business partners; failure by third parties involved in the supply chain of coffee, store supplies or merchandise to produce or deliver products; changes in the market for high-quality Arabica coffee beans and other commodities; fluctuations in costs and availability of real estate, labor, raw materials, equipment, transportation or shipping; loss of confidential data from customers and employees, which may subject us to litigation, liability or reputational damage; failure to successfully compete with other producers and retailers of coffee; failure to successfully open new retail coffee shops; failure to properly manage our rapid growth and relationships with various business partners; failure to protect against software or hardware vulnerabilities; failure to build brand recognition using our intellectual properties; shifts in consumer spending, lack of interest in new products or changes in brand perception upon evolving consumer preferences and tastes; failure to adequately maintain food safety or quality and comply with food safety regulations; failure to successfully integrate into new domestic and international markets; risks related to leasing space subject to long-term non-cancelable leases and with respect to real property; failure of our franchise partners to successfully manage their franchise; failure to raise additional capital to develop the business; risks related to the COVID-19 pandemic, including supply chain disruptions; the loss of one or more of our executive officers and other key employees; failure to hire and retain qualified employees; failure to meet our goal of hiring 10,000 veterans; risks related to unionization of employees; failure to comply with federal state and local laws and regulations; and inability to maintain the listing of our Class A Common Stock on the New York Stock Exchange. For additional information about the factors that could cause actual results to differ materially from forward-looking statements, please see the Company's documents filed or to be filed with the Securities and Exchange Commission, including the current reports on Form 8-K filed and the annual report on Form 10-K to be filed. You should not place undue reliance on forward-looking statements, which speak only as of the date of this release. Except as is required by law, the Company expressly disclaims any obligation to publicly release any revisions to forward-looking statements to reflect events after the date of this release.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, unaudited)
Three Months Ended December 31,
Twelve Months Ended December 31,
2021
2020
2021
2020
Revenue, net
$71,848
$59,906
$233,101
$163,909
Cost of goods sold
47,169
35,935
143,414
94,500
Gross profit
24,679
23,971
89,687
69,409
Operating expenses
Marketing and advertising
11,068
10,461
36,358
25,513
Salaries, wages and benefits
8,991
8,185
38,746
24,194
General and administrative
8,689
3,940
26,162
13,922
Total operating expenses
28,748
22,586
101,266
63,629
Income (loss) from operations
(4,069)
1,385
(11,579)
5,780
Other income (expense):
Interest expense
(443)
(233)
(2,033)
(1,047)
Other income (expense), net
(50)
(132)
(55)
(227)
Total other (expense), net
(493)
(365)
(2,088)
(1,274)
Earnings (loss) before income taxes
(4,562)
1,020
(13,667)
4,506
State income tax expense
45
44
178
185
Net income (loss)
$(4,607)
$976
$(13,845)
$4,321
CONSOLIDATED BALANCE SHEETS1
(in thousands, unaudited)
December 31,
2021
December 31,
2020
Assets
Current assets:
Cash and cash equivalents
$18,334
$35,232
Accounts receivable, net
7,442
3,629
Inventories
20,872
16,041
Prepaid expenses and other current assets
6,377
2,186
Total current assets
53,025
57,088
Property and equipment, net
31,114
14,714
Identifiable intangibles, net
167
191
Restricted Cash
--
400
Other
2,776
149
Total Assets
$87,082
$72,542
Liabilities and members’ deficit
Current liabilities:
Accounts payable
$17,387
$11,527
Accrued liabilities
22,233
16,063
Deferred revenue and gift card liability
7,334
4,615
Current maturities of long-term debt, net
11,979
866
Current maturities of capital lease obligations
85
469
Total current liabilities
59,018
33,540
Non-current liabilities:
Long-term debt, net
22,712
12,170
Capital lease obligations, net of current maturities
228
727
Other non-current liabilities
334
--
Total non-current liabilities
23,274
12,897
Total liabilities
82,292
46,437
Series A preferred equity, less issuance costs (151,406 and 150,000 units authorized, issued and outstanding as of December 31, 2021 and 2020, respectively)
154,281
128,983
Members’ deficit (18,769 Class A units and 73,890 Class B units authorized, issued and outstanding as of December 31, 2021 and 2020)
(149,491)
(102,878)
Total liabilities, Series A preferred units and members’ deficit
$87,082
$72,542
(1)
This balance sheet is for Authentic Brands for the period ending 12/31/2021. This is pre-close of the transaction with Silver Box Engaged Merger Corp II and does not include any proceeds from the transaction close on 2/9/2022.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)
Twelve Months Ended December 31,
2021
2020
Operating activities
Net Income (loss)
$(13,845)
$4,321
Adjustments to reconcile net income (loss) to net cash used in operating
Depreciation and amortization
2,895
1,375
Equity-based compensation
3,204
1,929
Non-employee equity-based compensation
1,492
1,384
Amortization of debt issuance costs
358
133
Loss on extinguishment of debt
726
--
Bad debt expense (recovery)
(51)
195
Loss from equity method investment
--
52
Loss on disposal/sale of property and equipment
70
--
Changes in operating assets and liabilities:
Accounts receivable, net
(3,761)
(2,956)
Inventories
(4,831)
(10,897)
Prepaid expenses and other assets
(5,283)
(1,054)
Accounts payable
4,646
7,032
Accrued liabilities
3,659
6,425
Accrued sales tax
(23)
292
Deferred revenue and gift card liability
2,719
3,315
Other liabilities
334
--
Net cash provided by (used in) operating activities
(7,691)
11,546
Investing activities
Purchase of property and equipment
$(19,287)
$(9,760)
Net cash used in investing activities
(19,287)
(9,760)
Financing activities
Proceeds from issuance of long-term debt, net of cash paid for debt issuance costs of $338 and $591 in 2021 and 2020
$38,402
$16,436
Repayment of long-term debt
(20,058)
(7,333)
Repayment of and restricted cash for capital lease obligations
(1,663)
(451)
Issuance of Series A preferred equity, net of cash paid for issuance costs of $4,897
--
145,103
Payment of Series A preferred dividends
(7,001)
--
Repurchase of member units
--
(125,000)
Repayment of notes receivable from members
--
56
Net Cash provided by provided by financing activities
9,680
28,811
Net increase in cash, cash equivalents, and restricted cash
(17,298)
30,597
Beginning cash, cash equivalents, and restricted cash
35,632
5,035
Ending cash, cash equivalents, and restricted cash
$18,334
$35,632
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(in thousands, unaudited)
Twelve Months Ended December 31,
2021
2020
Non-Cash operating activities
Accrued other assets
$750
$--
Deferred transaction costs
1,214
--
Non-cash investing and financing activities
Issuance of Series A preferred unit dividend
$1,406
$--
Accrued Series A preferred equity distribution and related discount
27,510
870
Capital expenditures financing through credit facilities and capital leases
--
6,430
Accrued capital expenditures
803
140
Supplemental cash flow information
Cash paid for state income taxes
$147
$114
Cash paid for interest
$719
$1,007
KEY OPERATING AND FINANCIAL METRICS
(unaudited)
Key Operational Metrics
Twelve Months Ended December 31,
2021
2020
DTC Subscribers (thousands)
287,300
252,100
Wholesale Doors
2,630
1,160
RTD Doors
42,370
10,600
Outposts
16
4
Company-owned stores
8
1
Franchise stores
8
3
Revenue by Sales Channel
Three Months Ended December 31,
Twelve Months Ended December 31,
(sales in thousands)
2021
2020
2021
2020
Revenue by Sales Channel
Direct to Consumer
$49,643
$48,251
$165,299
$137,724
Wholesale
17,153
9,858
55,761
23,351
Outpost
5,052
1,797
12,041
2,834
Total net revenue
$71,848
$59,906
$233,101
$163,909
Non-GAAP Financial Measures
To evaluate the performance of our business, we rely on both our results of operations recorded in accordance with GAAP and certain non-GAAP financial measures, including EBITDA and Adjusted EBITDA. These measures, as defined below, are not defined or calculated under principles, standards or rules that comprise GAAP. Accordingly, the non-GAAP financial measures we use and refer to should not be viewed as a substitute for performance measures derived in accordance with GAAP or as a substitute for a measure of liquidity. Our definitions of EBITDA and Adjusted EBITDA described below are specific to our business and you should not assume that they are comparable to similarly titled financial measures of other companies. We define EBITDA as net income (loss) before interest, state income taxes, depreciation and amortization expense. We define Adjusted EBITDA as EBITDA, as adjusted for equity-based compensation, system implementation costs, transaction expenses, executive recruiting, severance and sign-on bonus, write-off of site development costs and outpost pre-opening expenses. When used in conjunction with GAAP financial measures, we believe that EBITDA and Adjusted EBITDA are useful supplemental measures of operating performance because it facilitates comparisons of historical performance by excluding non-cash items such as equity-based payments and other amounts not directly attributable to our primary operations, such as the impact of system implementation, acquisitions, disposals, executive searches, executive severance, non-routine investigations, litigation and settlements. Adjusted EBITDA is also a key metric used internally by our management to evaluate performance and develop internal budgets and forecasts. EBITDA and Adjusted EBITDA have limitations as an analytical tool and should not be considered in isolation or as a substitute for analyzing our results as reported under GAAP and may not provide a complete understanding of our operating results as a whole. Some of these limitations are (i) they do not reflect changes in, or cash requirements for, our working capital needs, (ii) they not reflect our interest expense or the cash requirements necessary to service interest or principal payments on our debt, (iii) they do not reflect our tax expense or the cash requirements to pay our taxes, (iv) they do not reflect historical capital expenditures or future requirements for capital expenditures or contractual commitments, (v) although equity-based compensation expenses are non-cash charges, we rely on equity compensation to compensate and incentivize employees, directors and certain consultants, and we may continue to do so in the future and (vi) although depreciation, amortization and impairments are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and these non-GAAP measures do not reflect any cash requirements for such replacements.
A reconciliation of net income, the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA is set forth below:
Three Months Ended December 31,
Twelve Months Ended December 31,
(in thousands)
2021
2020
2021
2020
Net Income (loss)
$(4,607)
$976
$(13,845)
$4,321
Interest Expense
443
233
2,033
1,047
Tax Expense
45
44
178
185
Depreciation and amortization
895
390
2,895
1,375
EBITDA
$(3,224)
$1,643
$(8,739)
$6,928
Equity-based compensation (1)
$934
$663
$4,696
$3,313
System implementation costs (2)
355
52
801
556
Transaction expenses (3)
357
108
1,042
575
Executive recruiting, severance and sign-on bonus (4)
286
--
1,626
357
Write-off of site development costs (5)
429
--
429
--
Outpost pre-opening expenses (6)
585
--
913
166
Adjusted EBITDA
$(278)
$2,466
$768
$11,895
(1)
Represents the non-cash expense of our equity-based compensation arrangements for employees, directors, consultants and wholesale channel partner.
(2)
Represents costs associated with the implementation of our enterprise-wide resource planning (ERP) system.
(3)
Represents expenses related to our business combination and our 2020 preferred equity raise such as legal, accounting, consulting and other fees.
(4)
Represents nonrecurring payments made for executive recruitment and severance that do not represent or relate to operations of core business functions.
(5)
Represents write-off of direct costs incurred related to planned Outpost locations where development efforts were subsequently abandoned.
(6)
Represent costs incurred prior to the opening of an Outpost including labor, rent and utilities, travel and lodging costs, legal fees and training expenses.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220316005306/en/
Investor Contact
Tanner Doss: IR@BlackRifleCoffee.com
ICR for BRCC: BlackrifleIR@icrinc.com
Media Contact
TrailRunner International for BRCC: Pat Shortridge, (651) 491-6764; pats@trailrunnerint.com
Manipulators attempt to take it below again 16.00 AGAIN and the volume disappears. Market makers need to stop placating the shorts and add the liquidity and get them out of the security for now...they have no place and the misleading short papers out there doing all they can to take this below 16.00 to only have zero volume...WAKE UP MARKET! Wait until earnings tomorrow.....gonna be allot of upset folks
Hopefully some took my advice and got in under 15! This is one that will grow much like Starbucks...as they were referred to, the red state Starbucks. They have a great team onboard and have zero doubt this will be a double in next year or two with explosive growth...
Being heavily manipulated atm...a ton of smaller letters out there saying it is over-priced, so they can load up on the cheap, then they will change their toon and hype accordingly once they are positioned. I will be glad for the results to be released soon, so we can get a better valuation and hopefully stop all the manipulative actions/trading...glad they are on major exchange and hopefully regulators keeping an eye on this new ticker.
You’ll see $75 here within the year.
Loaded up on March $20 calls as well here
Amen sir!
I dont have any...
except one TRUE friend=
would be surprised to see 30 plus here soon in the next month or so....
The coffee is awesome, I had no idea they were going public. I'm in
Here. Been here. Just waited for this awesome co to go public.
I just created the board a few days ago. Tell your friends. Both of them. LOL
where is everybody?
BRCC
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