PORTLAND, Ore., Jan. 30, 2020 /PRNewswire/ -- Eastside
Distilling, Inc. (NASDAQ: EAST) today announced preliminary fiscal
year 2019 financial results and provided a business update.
Preliminary Fourth Quarter Financial Results
Fourth
quarter 2019 gross sales is anticipated to be between approximately
$4.0 to $4.7
million, an increase of 65% to 94% compared to the year ago
fourth quarter.
Preliminary Year End Financial Results
For the fiscal
year 2019 ended December 31, 2019,
the Company anticipates gross sales of $16.7 to $17.4
million, an increase of approximately 132% to 142% compared
to fiscal year 2018 gross sales of $7.2
million.
Operational Updates and Profitability Outlook
The
Company has initiated a series of operational changes aimed at
reshaping the business to achieve adjusted EBITDA profitability in
the fourth quarter of 2020.
Asset-Backed Revolving Credit Facilities
Over the last
two months, the Company has increased its available working capital
position by closing two new asset-backed revolving credit
facilities totaling up to $10
million, including an up to $8
million inventory facility with Live Oak Bank and a
$2 million Accounts Receivable
factoring agreement with ENGS Capital. The facilities are
anticipated to be used to fund growth in the business and refinance
existing debt.
Management Commentary
"I am pleased to report that the
Eastside Distilling team is executing a number of key operational
initiatives designed to continue to drive growth in our national
distribution platform, led by our Redneck Riviera branded products
and begin the penetration of our Azuñia Tequila brands that we
acquired in September," said Lawrence Firestone, CEO. "We have
worked through changes in how we distribute our products to drive
case profitability, which has resulted in a number of new points of
distribution, and an expectation for record first quarter case
volumes. With the expected growth in the business, coupled with the
improvements to cost of goods sold and operating expense, we are
targeting to achieve adjusted EBITDA profitability by the fourth
quarter of 2020."
The Company plans to issue a press release and file its 10-K for
the year ended December 31, 2019 in
mid to late March 2020.
Conference Call
Date and Time: 5:00pm ET (2:00pm
PT) on Thursday, January 30,
2020
Call-in Information: Interested parties can access the
conference call by dialing (844) 889-4332 or (412) 717-9595.
Live Webcast Information: Interested parties can access the
conference call via a live Internet webcast, which is available in
the Investor Relations section of the Company's website at
https://www.eastsidedistilling.com/investors/.
Replay: A teleconference replay of the call will be available
for three days at (877) 344-7529 or (412) 317-0088, confirmation
#10138933. A webcast replay will be available in the Investor
Relations section of the Company's website at
https://www.eastsidedistilling.com/investors/ for 90 days.
Use of Non-GAAP Measures
Eastside Distilling's
management evaluates and makes operating decisions using various
financial metrics. In addition to the Company's GAAP results,
management also considers the non-GAAP measure of adjusted EBITDA.
Management believes this non-GAAP measure provides useful
information about the Company's operating results.
The Company defines adjusted EBITDA as earnings before interest,
taxes, depreciation and amortization, stock-based compensation and
the newly implemented lease accounting.
About Eastside Distilling
Eastside Distilling, Inc.
(NASDAQ: EAST) has been producing high-quality, craft spirits in
Portland, Oregon since 2008. The
company is known for its award-winning product line, including
Redneck Riviera Whiskeys, Azuñia Tequila, Hue-Hue Coffee Rum,
Burnside Bourbons, Portland Potato Vodkas, and a distinctive line
of fruit infused spirits. All Eastside spirits are crafted from natural
ingredients for quality and taste. Eastside's Craft Bottling + Canning subsidiary
is one of the Northwest's leading independent spirit bottlers and
ready-to-drink canners. For more information visit:
www.eastsidedistilling.com or follow the Company on Twitter and
Facebook.
Important Cautions Regarding Forward-Looking
Statements
Certain matters discussed in this press release
may be forward-looking statements. Such matters involve risks and
uncertainties that may cause actual results to differ materially,
including the following: changes in economic conditions; general
competitive factors; acceptance of the Company's products in the
market; the Company's success in obtaining new customers; the
Company's success in product development; the Company's ability to
execute its business model and strategic plans; the Company's
success in integrating acquired entities and assets, and all the
risks and related information described from time to time in the
Company's filings with the Securities and Exchange Commission
("SEC"), including the financial statements and related information
contained in the Company's Annual Report on Form 10-K and interim
Quarterly Reports on Form 10-Q. Examples of forward-looking
statements in this release may include statements related to
release of new products and entering into RTD and CBD markets,
growth prospects, receipt of future authorizations or anticipated
revenues, our expected success in integrating acquired entities and
assets, including expected co-packing sales momentum and production
efficiencies associated with the acquisition of CC+B, and our
strategic focus, product verticals, use of proceeds from financings
and our ability to utilize our credit facilities to the maximum
amount available, and expected financial performance and
profitability. The Company assumes no obligation to update the
cautionary information in this release.
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SOURCE Eastside Distilling, Inc.