Eastside Reports First Quarter 2020 Financial Results

About this update from Beeline Holdings, Inc.

[{"type":"text","content":"PORTLAND, Ore., May 14, 2020 /PRNewswire/ -- Eastside Distilling, Inc. (NASDAQ: EAST) reported first quarter 2020 financial results for the period ended March 31, 2020.\nFinancial ResultsGross sales for the first quarter of 2020 were $3.7 million compared to $3.5 million for the first quarter of 2019, an increase of 8%. The increase in gross sales is primarily attributable to contributions from the Azuñia Tequila brand which were acquired in September 2019, offset by a decrease in sales of Redneck Riviera Whiskey products and Co-Packing Services. Gross sales exclude Retail / Special Events sales that have been classified as Discontinued Operations.\nAmounts shown in thousands\n Q1 2020 \nQ1 2019\nChange\nTotal Gross sales\n$ 3,746\n$ 3,460\n8%\nRedneck Riviera Sales\n616\n877\n-30%\nAzuñia Tequila Sales\n994\n-\n-\nBurnside Whiskey Sales\n199\n196\n2%\nPortland Potato Vodka Sales\n352\n279\n26%\nAll other brands\n90\n114\n-21%\nCo-Packing Services and Barrel Sales\n1,495\n1,994\n-25%\nNote: Retail / Special Events sales moved to Discontinued Operations\nGross margins on net sales were 26% for the first quarter of 2020, compared to 33% during the first quarter of 2019. The reduction in gross margins year over year is primarily attributable to an increase in sales in the Azuñia and Portland Potato Vodka product lines, both of which carry lower margins than the company average as well as $0.1 million of unabsorbed manufacturing overhead related to lower wholesale production levels and $0.2 million adjustment to inventory in the quarter. The Company is focused on improving overall gross margins by evaluating outsourced production as a means to lower cost of goods sold and increasing efficiency while reducing overhead of its production facilities.\nOperating expenses were $3.9 million for the first quarter of 2020, which included $1.1 million of non-cash expenses, compared to $3.8 million, which included $0.6 million of non-cash expenses for the first quarter of 2019. The change in operating expenses consisted of a $0.8 million decrease in cash general and administrative expenses, specifically a reduction in compensation and benefits, legal and professional fees and rent, insurance and other costs offset by a $0.4 million increase in non-cash general and administrative expenses and a $0.5 million increase in sales and marketing expen...

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