Company Posts Third Consecutive Quarter of
Revenue Growth and Record Average Order Value
Enters Agreement For $30.0 Million in
Additional Funding
Blue Apron (NYSE: APRN) today announced financial results for
the second quarter ended June 30, 2022 (2Q22).
Second Quarter 2022 Highlights
- Net revenue rose slightly year-over-year and 6.0% sequentially
to $124.2 million, inclusive of a bulk sale to an enterprise
customer
- Average Order Value rose 7.1% year-over-year and 6.6%
sequentially to $67.14, a record high for the company, primarily
due to a pricing increase introduced in 2Q22
- Average Revenue per Customer increased to $328 from $321 last
quarter, and decreased slightly from $330 for the same period in
2021
- Company raised $20.5 million of equity and entered into a new
$30.0 million debt agreement. The new debt was used, together with
cash on hand, to repay the company’s senior secured term loan,
which lowers overall debt service obligations and extends debt
maturity to 2027
- On August 7, 2022, the company and RJB Partners LLC (“RJB”), an
affiliate of Joseph N. Sanberg, amended the April 2022 private
placement agreement pursuant to which RJB agreed to purchase from
the company i) the 1,666,667 shares of Class A common stock under
the original agreement at a price of $5.00 per share instead of
$12.00 per share, and ii) an additional 8,333,333 shares of Class A
common stock at a price of $5.00 per share, for an aggregate
investment of $50.0 million for 10 million shares of Class A common
stock at $5.00 per share, which is expected to close later this
month. The company expects to use the proceeds of the private
placement to invest in its long-term growth plan, with $25.0
million expected to be used for strategic purposes aimed at
enhancing shareholder value, including exploring share buybacks.
Upon closing, Alex Chalunkal, Mr. Sanberg’s Chief Investment
Officer, will join the Blue Apron board
- Cash and cash equivalents were $54.0 million as of June 30,
2022, which does not reflect the $10.0 million bulk sale receivable
received subsequent to quarter-end. In addition, cash and cash
equivalents as of June 30, 2022 does not include the $50.0 million
that the company is expected to receive from RJB pursuant to the
private placement that is expected to close on or before August 31,
2022, or the payment of a $20.0 million receivable owed by an
affiliate of Mr. Sanberg, which is expected to be paid on or before
August 31, 2022
Linda Findley, Blue Apron’s President and Chief Executive
Officer, commented, “We are pleased by the team’s continued
execution against ‘The Next Course’ strategy in the second quarter.
Our hard work resulted in continued strong performance in our key
customer engagement metrics. Though significant inflation and the
continued post-pandemic acceleration in travel impacted customer
count, we saw encouraging signs from our new brand campaign
launched in April 2022. The heightened awareness from the program
drove a tangible increase in traffic to our site, and we are
proactively focused on improving conversion going forward.”
“We are also pleased to have reached an agreement with RJB to
increase RJB’s investment in the company pursuant to the April
agreement from $20 million to $50 million, which is expected to
close by the end of this month. This investment will strengthen our
financial position and provide additional flexibility as we move
forward with our long-term growth plan.”
Key Customer Metrics
Key customer metrics in the table below reflect the company’s
product initiatives and targeted marketing investments along with
the impact of an onion recall recovery in 2021; the seasonality of
the company’s business; and other operating trends. The metrics
below exclude the impact of a $10.0 million enterprise sale in the
second quarter of 2022.
Three Months Ended,
June 30, 2022
March 31, 2022
June 30, 2021
Orders (in thousands)
1,701
1,869
1,977
Customers (in thousands)
349
367
375
Average Order Value
$67.14
$62.99
$62.72
Orders per Customer
4.9
5.1
5.3
Average Revenue per Customer
$328
$321
$330
For a description of how Blue Apron defines and uses these key
customer metrics, please see “Use of Key Customer Metrics”
below.
Second Quarter 2022 Financial Results
- Net revenue was $124.2 million, a 6% increase from $117.8
million in 1Q22, and a slight increase from $124.0 million in 2Q21.
The year-over-year and sequential increases were due to a $10.0
million bulk sale related to a directed donation to an enterprise
customer by a company related party, and an increase in Average
Order Value, which reflects pricing increases introduced in the
second half of 2021 and continued execution of the company’s growth
strategy.
- Cost of goods sold, excluding depreciation and amortization
(COGS), as a percentage of net revenue, increased 270 basis points
year-over-year from 62.6% to 65.3%. The increase was primarily
driven by higher food and product packaging costs due to new and
enhanced product offerings and price increases due to inflationary
pressure, as well as an increase in shipping and fulfillment
packaging costs driven by carrier rate increases and fuel
surcharges. COGS as a percentage of net revenue improved 220 basis
points sequentially, mainly due to labor efficiencies
realized.
- Marketing expenses were $21.8 million, or 17.5% of net revenue,
a 22% decline from 1Q22, partially due to a seasonal decline in
promotional spending in the second quarter and the company
strategically pulling back on marketing spend due to rising media
costs and inefficient returns. Marketing expenses rose 33% from
2Q21 as part of the company’s growth strategy to drive customer
acquisitions and target new customers.
- Product, technology, general and administrative (PTG&A)
expenses increased 5% from $36.8 million in 2Q21 to $38.5 million
in 2Q22. The increase was primarily due to an increase in personnel
costs to support the company’s growth strategy. As a percentage of
net revenue, PTG&A increased 130 basis points year-over-year
from 29.7% to 31.0%. PTG&A declined 11% from $43.3 million in
1Q22, primarily due to the purchase and retirement of $3.0 million
in carbon offsets in 1Q22 in order to fulfill the company’s
commitment of being carbon neutral by the end of the first quarter
of 2022.
- Gain (loss) on extinguishment of debt was a gain of $0.7
million related to the termination of the company’s financing
agreement in May 2022. This compares with a non-cash loss of $4.1
million in 2Q21 as a result of the amendment of the same financing
agreement in May 2021, which was deemed to be an extinguishment of
the existing debt for accounting purposes.
- Other income (expense), net, was $0.4 million, which was driven
by a non-cash fair value adjustment related to the company’s
obligation to issue warrants to its lender following the May 2021
amendment of its financing agreement, as well as a gain recognized
upon the derecognition of the liability following the termination
of the financing agreement in May 2022.
- Net loss was $23.1 million, and diluted loss per share was
$0.68, based on 34.1 million weighted-average shares outstanding.
This compares with a net loss of $18.6 million, and diluted loss
per share of $0.98, in 2Q21 based on 18.9 million weighted-average
shares outstanding.
- The total shares outstanding as of June 30, 2022, were
34,795,727.
- Adjusted EBITDA was a loss of $15.5 million, compared with an
adjusted EBITDA loss of $3.5 million in 2Q21.
Liquidity and Capital Resources
- Cash and cash equivalents were $54.0 million as of June 30,
2022, excluding the $50.0 million that RJB is expected to close on
or before August 31, 2022 and the $20.0 million receivable that is
expected to be paid on or before August 31, 2022, as described
below.
- Cash used in operating activities totaled $18.3 million in
2Q22, compared with cash generated of $1.1 million in the second
quarter of the prior year. The higher operating cash outflow was
primarily related to an increase in marketing and unfavorable
working capital changes.
- Capital expenditures totaled $1.7 million in 2Q22, representing
an increase of $0.4 million from 2Q21.
- Free cash flow was $(20.0) million in 2Q22, compared with
$(0.2) million in the second quarter of the prior year. The change
was driven by increased operating cash outflow, as well as a slight
increase in capital expenditures.
- In April 2022, the company issued to Long Live Bruce, LLC, an
affiliate of Joseph N. Sanberg, and Linda Findley, President and
Chief Executive Officer, in separate private placements, shares of
its Class A common stock at $12.00 per share, resulting in $20.5
million of gross proceeds.
- In May 2022, the company issued $30.0 million of senior secured
notes, for $28.2 million of proceeds, net of original issuance
discount. The proceeds, together with cash on hand, were used to
pay off, in full, the company’s then-outstanding senior secured
term loan.
- As contemplated by the April agreement, the company agreed to
issue to RJB, and RJB agreed to purchase from the company, an
additional $20.0 million of the company’s Class A common stock at
$12.00 per share at a second closing to be closed on May 30, 2022
or such other date as was agreed to by the company and RJB.
- On August 7, 2022, the company and RJB amended the April 2022
purchase agreement with RJB pursuant to which RJB agreed to
purchase from the company, i) 1,666,667 shares of Class A common
stock under the April agreement at a price of $5.00 per share
instead of $12.00 per share, and ii) an additional 8,333,333 shares
of Class A common stock at a price of $5.00 per share for an
aggregate investment of $50.0 million for 10 million shares of
Class A common stock at $5.00 per share in a private placement on
or before August 31, 2022. RJB’s obligation to make this investment
is not subject to closing conditions and Mr. Sanberg has agreed to
personally guarantee the payment of the aggregate purchase price of
$50.0 million. The company expects to invest these proceeds in its
long-term growth plan, or for general corporate purposes, with
$25.0 million expected to be used for strategic purposes aimed at
enhancing shareholder value, including exploring share buybacks. On
August 7, 2022, the company amended the gift card sponsorship
agreement with an affiliate of Mr. Sanberg which added a personal
guarantee from Mr. Sanberg of such affiliate’s payment obligation
and extended the payment date to on or before August 31, 2022 of a
$20.0 million receivable.
- Effective upon the closing of the $50.0 million investment by
RJB, Alex Chalunkal will join the company’s board of directors. Mr.
Chalunkal is Mr. Sanberg’s Chief Investment Officer. Mr. Chalunkal
has an investment track record and associated skill sets that will
complement the board’s expertise as it continues to explore
strategic ways to unlock shareholder value.
ESG Initiatives
The company continues to execute on its ESG strategy and
initiatives. Recent efforts include:
- The purchase of 248,000 metric tons of carbon offsets from a
related party vendor to meet its 2023 and 2024 carbon neutral goals
based on its 2021 estimated carbon footprint. The rate obtained was
equivalent to what the company paid for its 2022 offsets. The total
of $6.0 million is payable in 24 monthly installments starting on
July 31, 2022. The company views carbon offsets as an important
tool as the company continues to implement more practices on its
path to net zero.
- Continued efforts to include ingredients that follow the
company’s animal welfare guidelines. In recognition of that work,
Blue Apron was rated as a “Progress Leader” in Mercy For Animals’
2022 “Count Your Chickens Report” that assessed broiler welfare in
corporate supply chains. Blue Apron was included in a group of
companies that are “leading the industry and reporting measurable
progress toward their broiler welfare goals.” It is a further
example of the importance the company places on sourcing
responsibly.
Outlook
As a result of persistent inflationary pressures which are
impacting consumer demand, the company believes it is prudent to
adjust its 2022 revenue growth target to 7% to 13% compared with
2021, and focus on driving to profitability.
The company remains committed to its longer term targets,
provided at its Investor Day in May 2022, of achieving adjusted
EBITDA profitability in fiscal 2023 and positive operating cash
flow in fiscal 2024. The company continues to expect significantly
lower cash utilization in the second half of 2022 compared with the
first half of the year.
The outlook for certain financial metrics above and elsewhere in
this press release, reflect assumptions regarding the company’s
business. These assumptions include the anticipated benefit to the
company’s business from the execution of the company’s strategic
growth initiatives, including the impact of the planned use of
remaining proceeds from the company's closed equity capital raises,
as well as a portion of the expected proceeds from the expected
equity financing transaction described above and the expected cash
impact of the gift card transaction described above, to increase
investments in marketing and technology initiatives and
infrastructure, as well as continued operational improvements. The
following guidance also assumes certain gift card redemption rates
and the expansion of our enterprise sale and marketplace sale
channels, including the anticipation of additional bulk sale
transactions relating to a planned directed donation to an
enterprise customer from a company related party. The following
guidance also assumes that the company will not experience any
unforeseen significant disruptions in its fulfillment operations or
supply chain, or any increased impacts from macroeconomic trends,
such as inflation.
Conference Call and Webcast
Blue Apron will host a conference call and live webcast today at
8:30 a.m. Eastern Time. The earnings conference call can be
accessed by dialing 1-877-883-038. The conference ID is 1532649.
Alternatively, participants may access the live webcast on Blue
Apron’s Investor Relations website at investors.blueapron.com.
A recording of the webcast will be available on Blue Apron’s
Investor Relations website at investors.blueapron.com following the
conference call. Additionally, a replay of the conference call can
be accessed until Monday, August 15, 2022, by dialing (877)
344-7529 or (412) 317-0088, utilizing the replay access code
3856149.
About Blue Apron
Blue Apron’s vision is Better Living Through Better FoodTM.
Launched in 2012, Blue Apron offers fresh, chef-designed recipes
that empower home cooks to embrace their culinary curiosity and
challenge their abilities to see what a difference cooking quality
food can make in their lives. Through its mission to spark
discovery, connection and joy through cooking, Blue Apron
continuously focuses on bringing incredible recipes to its
customers, while minimizing its carbon footprint, reducing food
waste, and promoting diversity and inclusion.
Forward-Looking Statements
This press release includes statements concerning Blue Apron
Holdings, Inc. and its future expectations, plans and prospects
that constitute "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. For this
purpose, any statements contained herein that are not statements of
historical fact may be deemed to be forward-looking statements. In
some cases, you can identify forward-looking statements by terms
such as "may," "should," "expects," "plans," "anticipates,"
"could," "intends," "target," "projects," "contemplates,"
"believes," "estimates," "predicts," "potential," or "continue," or
the negative of these terms or other similar expressions. The
forward-looking statements in this press release are only
predictions. Blue Apron has based these forward-looking statements
largely on its current expectations and projections about future
events and financial trends that it believes may affect its
business, financial condition and results of operations. These
forward-looking statements speak only as of the date of this press
release and are subject to a number of risks, uncertainties and
assumptions including, without limitation, the company's ability to
operate as a going-concern in the event that the pending financing
and gift card transaction described in this press release do not
close on the expected terms, the company’s expectations regarding
its expenses and revenue, its ability to grow adjusted EBITDA and
achieve or maintain profitability, the sufficiency of the company’s
cash resources, the company’s needs for additional financing; the
company’s ability, including the timing and extent, to sufficiently
manage costs and to fund investments in its operations in amounts
necessary to maintain compliance with financial, environmental,
sustainability and corporate governance (“ESG”), and other
covenants under its indebtedness while continuing to support the
execution and acceleration of its growth strategy on the company’s
anticipated timelines; the company’s ability, including the timing
and extent, to successfully support the execution of its growth
strategy and to meet its outlook forecasts (including the ability
to successfully increase marketing and technology improvements on
the planned timeline, if at all), cost-effectively attract new
customers and retain existing customers, including its ability to
sustain any increase in demand resulting from both its growth
strategy or the COVID-19 pandemic, and its ability to continue to
expand its product offerings and distribution channels, and to
continue to execute operational efficiency practices; the company’s
expectations regarding, and the stability of, its supply chain,
including potential shortages, interruptions and/or increased costs
in the supply or delivery of ingredients, and parcel and freight
carrier interruptions or delays and/or higher freight or fuel
costs, as a result of inflation or otherwise; changes in consumer
behaviors, tastes and preferences that could lead to changes in
demand, including as a result of, among other things the impact of
inflation or other macroeconomic factors, and to some extent,
long-term impacts on consumer behavior and spending habits; the
company’s ability to attract and retain qualified employees and
personnel in sufficient numbers; any material and adverse impact of
the COVID-19 pandemic or any future surges, including as a result
of new variants and subvariants of the virus, on the company’s
operations and results, such as challenges in employee recruiting
and retention, any prolonged closures, or series of temporary
closures, of one or both of its fulfillment centers, supply chain
or carrier interruptions or delays, and any resulting need to
cancel or shift customer orders; the company’s ability to
effectively compete; the company’s ability to maintain and grow the
value of its brand and reputation; the company’s ability to achieve
its ESG goals in its anticipated timeframe, if at all; the
company’s ability to maintain food safety and prevent food-borne
illness incidents and its susceptibility to supplier-initiated
recalls; the company’s ability to comply with modified or new laws
and regulations applying to its business, or the impact that such
compliance may have on its business; the company’s vulnerability to
adverse weather conditions, natural disasters, wars, and public
health crises, including pandemics; the company’s ability to
protect the security and integrity of its data and protect against
data security risks and breaches; the company’s ability to obtain
and maintain intellectual property protection; and other risks more
fully described in the company’s Annual Report on Form 10-K for the
year ended December 31, 2021 filed with the SEC on February 25,
2022, the company’s Quarterly Report on Form 10-Q for the quarter
ended March 31, 2022 filed with the SEC on May 9, 2022 and the
company’s Quarterly Report on Form 10-Q for the quarter ended June
30, 2022 to be filed with the SEC and in other filings that the
company may make with the SEC in the future. The company assumes no
obligation to update any forward-looking statements contained in
this press release, whether as a result of any new information,
future events, or otherwise.
Use of Non-GAAP Financial Information
This press release includes non-GAAP financial measures,
adjusted EBITDA and free cash flow, that are not prepared in
accordance with, nor an alternative to, financial measures prepared
in accordance with U.S. generally accepted accounting principles
(“GAAP”). In addition, these non-GAAP financial measures are not
based on any standardized methodology prescribed by GAAP and are
not necessarily comparable to similarly-titled measures presented
by other companies.
The company defines adjusted EBITDA as net earnings (loss)
before interest income (expense), net, other operating expense,
gain (loss) on extinguishment of debt, other income (expense) net,
benefit (provision) for income taxes and depreciation and
amortization, adjusted to eliminate share-based compensation
expense. The company presents adjusted EBITDA because it is a key
measure used by the company’s management and board of directors to
understand and evaluate the company’s operating performance,
generate future operating plans and make strategic decisions
regarding the allocation of capital. In particular, the company
believes that the exclusion of certain items in calculating
adjusted EBITDA can produce a useful measure for period-to-period
comparisons of the company’s business. Further, Blue Apron uses
adjusted EBITDA to evaluate its operating performance and trends
and make planning decisions, and it believes that adjusted EBITDA
helps identify underlying trends in its business that could
otherwise be masked by the effect of the items that the company
excludes. Accordingly, Blue Apron believes that adjusted EBITDA
provides useful information to investors and others in
understanding and evaluating its operating results, enhancing the
overall understanding of the company’s past performance and future
prospects, and allowing for greater transparency with respect to
key financial metrics used by its management in its financial and
operational decision-making.
There are a number of limitations related to the use of adjusted
EBITDA rather than net income (loss), which is the most directly
comparable GAAP equivalent. Some of these limitations are:
- adjusted EBITDA excludes share-based compensation expense, as
share-based compensation expense has recently been, and will
continue to be for the foreseeable future, a significant recurring
expense for the company’s business and an important part of its
compensation strategy;
- adjusted EBITDA excludes depreciation and amortization expense
and, although these are non-cash expenses, the assets being
depreciated may have to be replaced in the future;
- adjusted EBITDA excludes (gain) loss on extinguishment of debt,
as these represent primarily non-cash accounting adjustments;
- adjusted EBITDA does not reflect other (income) expense net, as
this represents changes in the fair value of the
liability-classified warrant obligation as of each reporting
period, which were required to be settled in either cash, which
would have harmed our liquidity, or our Class A common shares,
which would have resulted in dilution to our stockholders;
- adjusted EBITDA does not reflect interest expense, or the cash
requirements necessary to service interest, which reduces cash
available to us;
- adjusted EBITDA does not reflect income tax payments that
reduce cash available to us; and
- other companies, including companies in the company’s industry,
may calculate adjusted EBITDA differently, which reduces its
usefulness as a comparative measure.
The company defines free cash flow as net cash from (used in)
operating activities less purchases of property and equipment. The
company presents free cash flow because it is used by the company’s
management and board of directors as an indicator of the amount of
cash the company generates or uses and to evaluate the company’s
ability to satisfy current and future obligations and to fund
future business opportunities. Accordingly, Blue Apron believes
that free cash flow provides useful information to investors and
others in understanding and evaluating its operating results,
enhancing the overall understanding of the company’s ability to
satisfy its financial obligations and pursue business
opportunities, and allowing for greater transparency with respect
to a key financial metric used by its management in its financial
and operational decision making.
There are a number of limitations related to the use of free
cash flow rather than net cash from (used in) operating activities,
which is the most directly comparable GAAP equivalent. Some of
these limitations are:
- free cash flow is not a measure of cash available for
discretionary expenditures since the company has certain
non-discretionary obligations such as debt repayments or capital
lease obligations that are not deducted from the measure; and
- other companies, including companies in the company’s industry,
may calculate free cash flow differently, which reduces its
usefulness as a comparative measure.
Because of these limitations, adjusted EBITDA and free cash flow
should be considered together with other financial information
presented in accordance with GAAP. A reconciliation of these
non-GAAP financial measures to the most directly comparable
measures calculated in accordance with GAAP is set forth below
under the heading “Reconciliation of Non-GAAP Financial
Measures.”
Use of Key Customer Metrics
This press release includes various key customer metrics that
the company uses to evaluate our business and operations, measure
its performance, identify trends affecting its business, project
its future performance, and make strategic decisions. You should
read these metrics in conjunction with the company’s financial
statements. The company defines and determines its key customer
metrics as follows:
Orders The company defines Orders as the number of paid orders
by Customers across the company’s meal, wine and market products
sold on its e-commerce platforms and, beginning in 2Q22, through
third-party sales platforms in any reporting period, inclusive of
orders that may have eventually been refunded or credited to
customers.
Customers The company determines its number of Customers by
counting the total number of individual customers who have paid for
at least one Order from Blue Apron across the company’s meal, wine
or market products sold on its e-commerce platforms and, beginning
in 2Q22, through third-party sales platforms in a given reporting
period.
Average Order Value The company defines Average Order Value as
the company’s net revenue from its meal, wine and market products
sold on its e-commerce platforms and, beginning in 2Q22, through
third-party sales platforms, in a given reporting period divided by
the number of Orders in that period. For 2Q22, Average Order Value
excludes the $10.0 million bulk enterprise sale. If the bulk sale
is included, Average Order Value for 2Q22 would be $73.04.
Orders per Customer The company defines Orders per Customer as
the number of Orders in a given reporting period divided by the
number of Customers in that period.
Average Revenue per Customer The company defines Average Revenue
per Customer as the company’s net revenue from its meal, wine and
market products sold on the company’s e-commerce platforms and,
beginning in 2Q22, through third-party sales platforms in a given
reporting period divided by the number of Customers in that period.
For 2Q22, Average Revenue per Customer excludes the $10.0 million
bulk enterprise sale. If the bulk sale is included, Average Revenue
per Customer for 2Q22 would be $356.
BLUE APRON HOLDINGS,
INC.
Condensed Consolidated Balance
Sheets
(In thousands)
(Unaudited)
June 30, 2022
December 31,
2021
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
54,028
$
82,160
Accounts receivable, net
276
234
Related party receivables
10,000
—
Inventories, net
28,856
24,989
Prepaid expenses and other current
assets
15,519
12,249
Total current assets
108,679
119,632
Property and equipment, net
100,397
108,355
Other noncurrent assets
6,995
3,719
TOTAL ASSETS
$
216,071
$
231,706
LIABILITIES AND STOCKHOLDERS’
EQUITY
CURRENT LIABILITIES:
Accounts payable
$
40,653
$
27,962
Current portion of related party
payables
6,000
—
Current portion of long-term debt
—
3,500
Accrued expenses and other current
liabilities
29,507
31,951
Deferred revenue
13,308
7,958
Warrant obligation
—
8,001
Total current liabilities
89,468
79,372
Long-term debt
27,217
25,886
Facility financing obligation
35,832
35,886
Related party payables
3,000
—
Other noncurrent liabilities
8,156
10,509
TOTAL LIABILITIES
163,673
151,653
TOTAL STOCKHOLDERS’ EQUITY
52,398
80,053
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
216,071
$
231,706
BLUE APRON HOLDINGS,
INC.
Condensed Consolidated
Statement of Operations
(In thousands, except share
and per-share data)
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Net revenue
$
124,237
$
124,010
$
241,988
$
253,716
Operating expenses:
Cost of goods sold, excluding depreciation
and amortization
81,158
77,585
160,648
159,177
Marketing
21,776
16,316
49,690
36,256
Product, technology, general, and
administrative
38,510
36,802
81,767
73,353
Depreciation and amortization
5,464
5,612
10,868
11,232
Total operating expenses
146,908
136,315
302,973
280,018
Income (loss) from operations
(22,671
)
(12,305
)
(60,985
)
(26,302
)
Gain (loss) on extinguishment of debt
650
(4,089
)
650
(4,089
)
Interest income (expense), net
(1,435
)
(2,731
)
(3,205
)
(4,439
)
Other income (expense), net
387
548
2,033
548
Income (loss) before income taxes
(23,069
)
(18,577
)
(61,507
)
(34,282
)
Benefit (provision) for income taxes
(54
)
(10
)
(65
)
(26
)
Net income (loss)
$
(23,123
)
$
(18,587
)
$
(61,572
)
$
(34,308
)
Net income (loss) per share – basic
$
(0.68
)
$
(0.98
)
$
(1.86
)
$
(1.86
)
Net income (loss) per share – diluted
$
(0.68
)
$
(0.98
)
$
(1.86
)
$
(1.86
)
Weighted average shares outstanding –
basic
34,073,695
18,876,600
33,185,992
18,410,729
Weighted average shares outstanding –
diluted
34,073,695
18,876,600
33,185,992
18,410,729
BLUE APRON HOLDINGS,
INC.
Condensed Consolidated
Statement of Cash Flows
(In thousands)
(Unaudited)
Six Months Ended June
30,
2022
2021
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income (loss)
$
(61,572
)
$
(34,308
)
Adjustments to reconcile net income (loss)
to net cash from (used in) operating activities:
Depreciation and amortization of property
and equipment
10,868
11,232
Loss (gain) on disposal of property and
equipment
135
—
Loss (gain) on extinguishment of debt
(650
)
4,089
Loss (gain) upon derecognition of Blue
Torch warrant obligation
(214
)
—
Changes in fair value of warrant
obligation
(1,819
)
(548
)
Changes in reserves and allowances
66
132
Share-based compensation
4,039
5,465
Non-cash interest expense
450
807
Changes in operating assets and
liabilities:
1,577
2,253
Net cash from (used in) operating
activities
(47,120
)
(10,878
)
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchases of property and equipment
(2,985
)
(3,009
)
Proceeds from sale of property and
equipment
111
1,302
Net cash from (used in) investing
activities
(2,874
)
(1,707
)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Net proceeds from debt issuances
28,200
—
Net proceeds from equity and warrant
issuances
25,500
21,571
Repayments of debt
(30,625
)
(1,750
)
Payments of debt and equity issuance
costs
(1,143
)
(572
)
Receipt of funds held in escrow
—
5,000
Release of funds held in escrow
—
(5,000
)
Principal payments on capital lease
obligations
(69
)
(77
)
Net cash from (used in) financing
activities
21,863
19,172
NET INCREASE (DECREASE) IN CASH, CASH
EQUIVALENTS, AND RESTRICTED CASH
(28,131
)
6,587
CASH, CASH EQUIVALENTS, AND RESTRICTED
CASH — Beginning of period
83,597
45,842
CASH, CASH EQUIVALENTS, AND RESTRICTED
CASH — End of period
$
55,466
$
52,429
BLUE APRON HOLDINGS,
INC.
Reconciliation of Non-GAAP
Financial Measures
(In thousands)
(Unaudited)
Three Months Ended
June 30, 2022
March 31, 2022
June 30, 2021
Reconciliation of net income (loss) to
adjusted EBITDA
Net income (loss)
$
(23,123
)
$
(38,449
)
$
(18,587
)
Share-based compensation
1,704
2,173
3,146
Depreciation and amortization
5,464
5,404
5,612
Loss (gain) on extinguishment of debt
(650
)
—
4,089
Interest (income) expense, net
1,435
1,770
2,731
Other (income) expense, net
(387
)
(1,646
)
(548
)
Provision (benefit) for income taxes
54
11
10
Adjusted EBITDA
$
(15,503
)
$
(30,737
)
$
(3,547
)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Reconciliation of net cash from (used
in) operating activities to free cash flow
Net cash from (used in) operating
activities
$
(18,322
)
$
1,073
$
(47,120
)
$
(10,878
)
Purchases of property and equipment
(1,664
)
(1,263
)
(2,985
)
(3,009
)
Free cash flow
$
(19,986
)
$
(190
)
$
(50,105
)
$
(13,887
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220807005044/en/
Media Muriel Lussier Blue Apron
muriel.lussier@blueapron.com
Investors Tip Fleming Blue Apron
investor.relations@blueapron.com
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