Slide 1: Second Quarter 2024: We are America's Coffee
second Quarter 2024 We are America’s Coffee
Slide 2: Disclaimer: Forward-Looking Statements
DISCLAIMER Forward-Looking Statements This press release contains forward-looking statements about the Company and its industry that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this press release, including statements regarding th
Slide 3: Today's Speakers
TODAY’S SPEAKERS Evan Chris Steve Hafer Mondzelewski Kadenacy Founder and Executive Chairman President and Chief Executive Officer Chief Financial Officer I am pleased with BRCC's continued delivery of healthy profitability and above average market growth. Our disciplined execution and increased mar
Slide 4: 2024 Q2 Highlights
2024 Q2 HIGHLIGHTS Gross Revenue Margin Net Revenue flat, (3%), YoY Gross Margin Expanded to $89.0 million 41.9% Wholesale Revenue increase of 8% compared to 35.0% in Q2 2023 Free Cash Profitability Flow Adjusted EBITDA improved to Free Cash Flow1 $8.5 million $1.0 million up $8.4M YoY up $31.0M YoY
Slide 5: Channel Highlights
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Slide 6: Growing Retail Partnerships While Outpacing FDM Category Growth
WE CONTINUE TO GROW OUR RETAIL PARTNERSHIPS WHILE OUTPACING THE FDM CATEGORY GROWTH Coffee xAOC BRCC xAOC ACV GAINS CONTINUE, WITH SIGNIFICANT ADDITIONAL POTENTIAL BRCC xAOC BRCC Grocery 35.2% 40.0 28.2% 23.5 ACV -1.7% -2.5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 YTD 2024 Q2 2024 2022 2023 2024 Source: Niels
Slide 7: RTD Holds Share and Distribution Continues to Build
RTD HOLDS SHARE AND DISTRIBUTION CONTINUES TO BUILD In addition to top line growth, we have line of sight to drive higher margins throughout the RTD business BRCC RTD ACV BRCC RTD Share BRCC xAOC + Convenience BRCC xAOC + Convenience 46.8 41.8 3.24% Share ACV 1.90% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q
Slide 8: Launching January 2025: Black Rifle Energy
LAUNCHING JANUARY 2025 Black Rifle EnergyTM brings a zero-sugar, clean energy option to a consumer market ready for our unique mission-driven approach BRC Inc. | 8
Slide 9: Optimizing the BRCC Ecommerce Experience: DTC Highlights
WE CONTINUE TO OPTIMIZE THE BRCC ECOMMERCE EXPERIENCE Our digital roots are fundamental to our success DTC Highlights Total Subscribers 201k+ New Subscriber AOV +12% vs. legacy platform Site Optimizations have improved LTV Recent partnership with ID.me and provides access to pre-verified Units per v
Slide 10: Operational Excellence & Financial Results
Operational Excellence & Financial Results
Slide 11: Delivery of Gross Margin Above 40%+ Target
DELIVERY OF GROSS MARGIN ABOVE 40%+ TARGET As part of our supply chain culture, we are constantly looking to optimize our gross margin through productivity and other initiatives Gross Margin Adjusted Gross Margin 43.8% 42.3% 35.1% 35.7% 36.8% 37.8% 40%+ 42.9% 41.9% 33.0% 35.0% 33.9% 26.5% Q1 2023 Q2
Slide 12: Third Consecutive Quarter of Adj. EBITDA Margin 9%+
THIRD CONSECUTIVE QUARTER OF ADJ. EBITDA MARGIN 9%+ $ thousand Q2 Adj. EBITDA Q2 YTD Adj. EBITDA 9.5% 12.0% EBITDA Margin EBITDA Margin (2.9%) 0.2% EBITDA Margin EBITDA Margin EBITDA improvement due to rightsized organizational spend and healthy margins Profitability improvement from: Focused Margin
Slide 13: Quarterly Financials
QUARTERLY FINANCIALS $ million (3%) +680 bps GROSS MARGIN NET REVENUE $91.9 41.9% $89.0 35.0% Q2 2023 Q2 2024 Q2 2023 Q2 2024 ADJUSTED EBITDA1 FREE CASH FLOW2 Q2 2023 Q2 2024 Q2 2023 Q2 2024 $1.0 $8.5 ($30.0) $0.1 Inflection Transformed ¹ Refer to slide 23 for Adjusted EBITDA – GAAP Reconciliation B
Slide 14: Outlook
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Slide 15: Updated 2024 Outlook
UPDATED 2024 OUTLOOK TOPLINE GROWTH¹ $385M - $415M OPTIMIZED GROSS MARGIN BETWEEN 39% - 42% HEALTHY BOTTOM LINE $32M-$42M ADJ EBITDA 80% Free Cash Flow Conversion2 ¹ A barter transaction favorably impacted Net Revenue in 2023 by $28.9 million and projected Net Revenue in 2024 by $11.9 million. Exclu
Slide 16: Appendix
Appendix \2IS COFFEE COMPANY. MEDIUM ROAST | } AMERICA’S COFFEE" BLACK RIFLE COFFEE COMPANY Me: nendlier. Indulge in the founding roast of Black Rifle Coffee Company. NET WT 40 02 (2,5 LBS) 1.13 ie ROUNDS OF SINGLE SERVE COFFEE 75- 0.39 OZ (11 G) CUPS / NET WT 29.1 02 (1 LB 13.1 0Z) 825 G
Slide 17: Financial Highlights
FINANCIAL HIGHLIGHTS Second Quarter 2024 Financial Highlights (in millions, except % data) Quarter To Date Comparisons 2024 2023 $ Change % Change Net Revenue $89.0 $91.9 ($2.9) (3%) Gross Profit 37.2 32.2 5.0 16% Gross Margin 41.9% 35.0% Net Loss ($1.4) ($14.7) $13.3 Adjusted EBITDA $8.5 $0.1 $8.4
Slide 18: Income Statement
INCOME STATEMENT Consolidated Statements of Operations (in thousands, except share and per share amounts) Three Months Ended June 30, 2024 2023 Revenue, net $89,017 $91,947 Cost of goods sold $51,758 $59,741 Gross profit $37,259 $32,206 Operating expenses Marketing and advertising $7,411 $7,013 Sala
Slide 19: Balance Sheet
BALANCE SHEET Consolidated Balance Sheets (in thousands, except share and par value amounts) June 30, December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $9,642 $12,448 Restricted cash $315 $1,465 Accounts receivable, net $25,923 $25,207 Inventories, net $44,793 $56,465 Prepaid e
Slide 20: Cash Flow
CASH FLOW Consolidated Statements of Cash Flow (in thousands) Six Months Ended June 30, 2024 2023 Operating activities Net income (loss) $482 ($31,986) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization $4,797 $3,352 Equit
Slide 21: Cash Flow (Continued)
CASH FLOW (CONTINUED) Consolidated Statements of Cash Flow Continued (in thousands) Six Months Ended June 30, 2024 2023 Non-cash operating activities (Derecognition) Recognition of right-of-use operating lease assets ($3,448) $13,919 Recognition of revenue for inventory exchanged for prepaid adverti
Slide 22: Key Operational Metrics
KEY OPERATIONAL METRICS Key Operating and Financial Metrics Revenue by Sales Channel (in thousands) Three Months Ended June 30, 2024 2023 Wholesale $53,761 $50,010 Direct to Consumer $29,970 $34,586 Outpost $5,286 $7,351 Total net sales $89,017 $91,947 Key Operational Metrics June 30, 2024 2023 FDM
Slide 23: Reconciliation of Net Loss to Adjusted EBITDA
RECONCILIATION OF NET (LOSS) TO ADJUSTED EBITDA Reconciliation of Net Loss to Adjusted EBITDA (amounts in thousands) Three Months Ended June 30, 2024 2023 Net loss ($1,374) ($14,665) Interest expense $2,301 $791 Tax expense $51 $57 Depreciation and amortization $2,384 $1,633 EBITDA $3,362 ($12,184)
Slide 24: Reconciliation of Gross Margin to Adjusted Gross Margin
RECONCILIATION OF GROSS MARGIN TO ADJUSTED GROSS MARGIN GAAP to Non-GAAP Financial Measures: Gross Margin (in thousands, except % data) Three Months Ended, June 30, September 30, December 31, March 31, June 30, 2023 2023 2023 2024 2024 GAAP Results: Revenue, Net $91,947 $100,536 $119,650 $98,392 $89
Slide 25: Reconciliation of Operating Cash Flow to Free Cash Flow
RECONCILIATION OF NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES TO FREE CASH FLOW Reconciliation of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow (amounts in thousands) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net cash provided by (used
Slide 26: Guidance
GUIDANCE For the full-year fiscal 2024, the Company updated its previous guidance as follows: FY2024 Guidance FY2023 (Updated) Actual Low High 1 Net Revenue $395.6 $385.0 $415.0 Growth 31% (3%) 5% Gross Margin 32% 39% 42% Adj. EBITDA $13.3 $32.0 $42.0 Free Cash Flow Conversion 2 80% Conversion ¹ A b