Eastside Reports Fourth Quarter and Fiscal Year 2019 Financial Results

About this update from Beeline Holdings, Inc.

[{"type":"text","content":"PORTLAND, Ore., March 30, 2020 /PRNewswire/ -- Eastside Distilling, Inc. (NASDAQ: EAST) reported fourth quarter and fiscal year 2019 financial results for the period ended December 31, 2019. \nFinancial Results Gross sales in 2019 were $17.0 million compared to $7.2 million in 2018, an increase of 136%. For the fourth quarter of 2019, gross sales were $4.3 million compared to $2.4 million in the fourth quarter of 2018, an increase of 79%. The increase in gross sales is attributable to organic growth in the Company's Redneck Riviera product, as well as contributions from the Azuñia Tequila and Craft Canning + Bottling acquisitions completed during the year. \nAmounts shown in thousands\n YE 2019 \nYE 2018\n Q4 2019 \nQ4 2018\n Amount \n Amount \nChange\n Amount \n Amount \nChange\nTotal Gross Sales\n$ 17,021\n$ 7,204\n136%\n$ 4,337\n$ 2,417\n79%\nBranded Sales\n$ 7,482\n$ 4,354\n72%\n$ 2,614\n$ 1,639\n59%\nCo-Packing Services\n$ 7,166\n$ 405\n1669%\n$ 1,321\n$ 61\n2066%\nRetail Sales\n$ 1,113\n$ 1,213\n-8%\n$ 401\n$ 480\n-16%\nBarrel Sales\n$ 1,261\n$ 1,232\n2%\n$ -\n$ 237\n-100%\nGross margins on net sales were 35% during 2019 compared to 38% in 2018. For the fourth quarter of 2019, gross margins on net sales were 27% compared to 19% during the fourth quarter of 2018. The reduction in gross margins year over year is primarily attributable to lower margins on the Company's Azuñia product line, which is predominately sold in the lower margin on-premise market. The increase in gross margins for the fourth quarter of 2019 compared to 2018 was due to the Craft Canning acquisition.\nOperating expenses were $19.2 million in 2019, which included $6.8 million of non-cash expenses compared to $10.6 million in 2018, which included $2.7 million of non-cash expenses. The increase in non-cash expenses year over year is primarily related to the revaluation of the Azuñia acquisition, intangible amortization of the Craft acquisition as well as increased stock compensation and depreciation. For the fourth quarter of 2019, operating expenses were $5.7 million, which included $4.4 million of non-cash expenses, compared to $3.5 million, which included $1.0 million of non-cash expenses. The change in operating expenses primarily relates to increased advertising, promotional and selling expenses to support the Company's national sales strategy, increa...

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