Slide 1: Third Quarter 2024 - We are America's Coffee
Third Quarter 2024 We are America’s Coffee
Slide 2: Disclaimer: Forward-Looking Statements
DISCLAIMER iN Forward-Looking Statements This presentation contains forward-looking statements about the BRC Inc. (the “Company”) and its industry that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this presentation, including state
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 “The Black Rifle brand continues to perform well, and I’m proud of our progress in gaining market share and improving profitability this quarter.
Slide 4: 2024 Q3 Highlights
2024 Q3 HIGHLIGHTS Gross Revenue Margin Net Revenue Gross Margin Expanded to $98.2 million 42.1% Sales to FDM retailers grew 3x compared to compared to 33.9% in Q3 2023 Q3 2023 Free Cash Profitability Flow Adjusted EBITDA1 Free Cash Flow2 $7.1 million $(0.2) million up $0.9M YoY compared to $(3.38)
Slide 5: Channel Highlights
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Slide 6: We Continue to Grow Our Retail Partnerships While Outpacing the FDM Category
WE CONTINUE TO GROW OUR RETAIL PARTNERSHIPS WHILE OUTPACING THE FDM CATEGORY GROWTH ACV GAINS CONTINUE, WITH SIGNIFICANT ADDITIONAL POTENTIAL BRCC x AOC BRCC Grocery Coffee xAOC BRCC xAOC 47.2% 25.8% 41.5% ACV 15.0% 0.1% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 -0.9% 2022 2023 2024 YTD 2024 Q3 2024 BRC Inc.
Slide 7: RTD Gains Share and Distribution Continues to Build
RTD GAINS 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 ACV By Quarter BRCC $-Share-% By Quarter Total US xAOC + Conv Total US xAOC + Conv 47.3% 4.6% 42.0% 4.2% 2.5% 15.9% Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 8: Launching December 2024: Black Rifle Energy
LAUNCHING December 2024 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: We Continue to Optimize the BRCC Ecommerce Experience
WE CONTINUE TO OPTIMIZE THE BRCC ECOMMERCE EXPERIENCE Our digital roots are fundamental to our success DTC Highlights Total Subscribers 194k+ New Subscriber AOV +10% Higher than Existing Subs Partnership with ID.me Generated $2.2mn in Revenue In first 100 days BRC Inc. | 9
Slide 10: Operational Excellence & Financial Results
Operational Excellence & Financial Results
Slide 11: Quarterly Financials
QUARTERLY FINANCIALS GROSS MARGIN $100.5 NET REVENUE $98.2 Q3 2023 Q3 2024 ADJUSTED EBITDA1 FREE CASH FLOW2 ¹ Refer to slide 23 for Adjusted EBITDA – GAAP Reconciliation BRC Inc. | 11 2 Refer to slide 25 for Free Cash Flow – GAAP Reconciliation
Slide 12: Delivery of Gross Margin Above 40%+ Target
DELIVERY OF GROSS MARGIN ABOVE 40%+ TARGET Gross Margin Adjusted Gross Margin ¹ Adjusted Gross Margins exclude RTD transformation costs for the quarter – refer to slide 24 for GAAP Reconciliation BRC Inc. | 12
Slide 13: YTD Adj. EBITDA Margin Greater Than 10%+
YTD ADJ. EBITDA MARGIN GREATER THAN 10%+ Q3 Adj. EBITDA Q3 YTD Adj. EBITDA 10.4% EBITDA Margin 7.2% 6.2% EBITDA Margin EBITDA Margin 0.4% EBITDA Margin YTD profitability improvement driven by: Focused Margin Reduced Reliance on Improvement Initiatives External Consultants Mix Between Channels and Al
Slide 14: Outlook
Outlook
Slide 15: Updated 2024 Outlook
UPDATED 2024 OUTLOOK TOPLINE GROWTH¹ $390M - $395M OPTIMIZED GROSS MARGIN BETWEEN 40% - 42% HEALTHY BOTTOM LINE $35M-$40M ADJ EBITDA Free Cash Flow Positive ¹ A barter transaction favorably impacted Net Revenue in 2023 by $28.9 million and projected Net Revenue in 2024 by $15.2 million. Excluding th
Slide 16: Appendix
Appendix ‘21S COFFEE COMPANY MEDIUM ROAST |, 1 AMERICA’S COFFEE © ar ou cP mars oo 5 LBS) 1.13 en ROUNDS OF SINGLE SERVE COFFEE 75- 0.39 OZ (11 G) CUPS / NET WT 29.1 02 (1 LB 13.1 02) 825 G | | | — qe
Slide 17: Financial Highlights
FINANCIAL HIGHLIGHTS (in millions, except % data) BRC Inc. | 17
Slide 18: Income Statement
INCOME STATEMENT BRC Inc. | 18
Slide 19: Balance Sheet
BALANCE SHEET Consolidated Balance Sheets (in thousands, except share and par value amounts) Assets Cunent assets: Cash and cash equivalents Resticted cash ‘Accounts receivable, nat Inventories, net Prepaid expenses and other cutentasets Total cutent assets Property plantand equipment, net Operating
Slide 20: Cash Flow
CASH FLOW Consolidated Statements of Cash Flow (in thousands) Operating activities Net loss ‘Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization Equity-based compensation ‘Amortization of debt issuance costs Loss on disposa
Slide 21: Cash Flow (Continued)
CASH FLOW (CONTINUED) BRC Inc. | 21
Slide 22: Key Operational Metrics
KEY OPERATIONAL METRICS BRC BRC Inc.Inc. | 22| 22
Slide 23: Reconciliation of Net (Loss) to Adjusted EBITDA
RECONCILIATION OF NET (LOSS) TO ADJUSTED EBITDA (1) Represents the non-cash expense related to our equity-based compensation arrangements for employees, directors, consultants and a Wholesale channel partner. (2) Represents non-capitalizable costs associated with the implementation of our enterprise
Slide 24: Reconciliation of Gross Margin to Adjusted Gross Margin
RECONCILIATION OF GROSS MARGIN TO ADJUSTED GROSS MARGIN BRCBRC Inc.Inc. | 24| 24
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 BRCBRC Inc.Inc. | 25| 25
Slide 26: Guidance
GUIDANCE ¹ A barter transaction favorably impacted Net Revenue in 2023 by $28.9 million and projected Net Revenue in 2024 by $15.2 million. Excluding the impact of the barter transaction reduces revenue growth from 2022 to 2023 by 10%. 2 We define Free Cash Flow Conversion as Free Cash Flow divided