Slide 1: Black Rifle Coffee Company
. CK RIFLE SOFFE COMPANY
Slide 2: Disclaimer: Forward-Looking Statements
DISCLAIMER Forward-Looking Statements This presentation contains forward-looking statements about BRC Inc. and its industry that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this presentation, including statements regarding the Com
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 holistic Q1 performance. It illustrates our team's balance of market growth and disciplined execution. The Black Rifle b
Slide 4: 2024 Q1 Highlights
2024 Q1 HIGHLIGHTS Gross Revenue Margin Net Revenue up 18% YoY to Gross Margin Expanded to $98.4 million 42.9% Driven by Wholesale Revenue increase of 51% compared to 33.0% in Q1 2023 Free Cash Profitability Flow Adjusted EBITDA improved to Free Cash Flow Conversion* of $14.1 million ~80% up $19.3M
Slide 5: Channel Highlights
Channel Highlights
Slide 6: We continue to grow our retail partnerships while outpacing FDM category growth
WE CONTINUE TO GROW OUR RETAIL PARTNERSHIPS WHILE OUTPACING THE FDM CATEGORY GROWTH Coffee xAOC BRCC xAOC SIGNIFICANT RUNWAY TO INCREASE ACV 43% BRCC xAOC BRCC Grocery 37% 37.8 ACV 19.3 -1% -1% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2022 2023 2024 Q1 2024 Mar 2024 Source: Nielsen Total xAOC (eXtended All Outlet
Slide 7: KDP Partnership
KDP Partnership Co-branding and genuine quality Single-serve category leadership Industry leading supply chain and manufacturing capabilities Extends KDP’s coffee portfolio BRC Inc. | 7
Slide 8: RTD outperforming category with improving margins
RTD OUTPERFORMING CATEGORY WITH IMPROVING MARGINS Total xAOC + Convenience BRCC xAOC + Convenience 4 1 7 2 Reduced RTD Manufacturers Reduced Warehouse Network 42.9% ACV from four to one from Seven to Two 4% 2% Reestablished Distribution in CO Consolidated RTD Finished Good and CA while increasing FD
Slide 9: We are a digitally native brand
WE ARE A DIGITALLY NATIVE BRAND Subscription continues to be a strategic enabler for BRCC as a large and fast-growing beverage brand Recent Technological enhancements deployed on our website showing early signs of an optimized subscription experience NEW SITE OBJECTIVES DTC HIGHLIGHTS Customer Acqu
Slide 10: Outposts will be a growth engine in 2025 & beyond
OUTPOSTS WILL BE A GROWTH ENGINE IN 2025 & BEYOND We are reformulating our Outpost Plans to bring the unique Black Rifle experience to consumers as we accelerate retail growth with strong unit economics and Return on Capital OUTPOST COUNTS 18 Company-Owned Outposts 18 Franchise Outpost Units Improve
Slide 11: All of our efforts support our mission
ALL OF OUR EFFORTS SUPPORT OUR MISSION BRC Inc. | 11
Slide 12: Operational Excellence & Financial Results
Operational Excellence & Financial Results
Slide 13: Continued operational excellence traction
CONTINUED OPERATIONAL EXCELLENCE TRACTION Clear, continued trend in improving profitability Q1 2024 exceeded our long-term gross margin goals Gross margin improvement from: SG&A benefits from 2023 initiatives: Mix Between Channels and Reduced Reliance on Products External Consultants Focused Margin
Slide 14: Quarterly Financials
QUARTERLY FINANCIALS $ million +18% +990 bps GROSS MARGIN NET REVENUE $98.4 42.9% 33.0% $83.5 Q1 2023 Q1 2024 Q1 2023 Q1 2024 NET INCOME (LOSS) ADJUSTED EBITDA1 Q1 2023 Q1 2024 Q1 2023 Q1 2024 $1.9 $14.1 ($17.3) ($5.2) Inflection Inflection ¹ Refer to slide 24 for Adjusted EBITDA – GAAP Reconciliati
Slide 15: Outlook
Outlook
Slide 16: Updated 2024 Outlook
UPDATED 2024 OUTLOOK TOPLINE GROWTH¹ $430M - $460M OPTIMIZED GROSS MARGIN AT UPPER END OF 37% - 40% HEALTHY BOTTOM LINE $32M-$42M ADJ EBITDA 80% Free Cash Flow Conversion ¹ A barter transaction favorably impacted Net Revenue in 2023 by $28.9 million and projected Net Revenue in 2024 by an estimated
Slide 17: Appendix
~ Appendix
Slide 18: Financial Highlights
FINANCIAL HIGHLIGHTS First Quarter 2024 Financial Highlights (in millions, except % data) Quarter To Date Comparisons 2024 2023 $ Change % Change Net Revenue $98.4 $83.5 $14.9 18% Gross Profit 42.2 27.5 14.7 53% Gross Margin 42.9% 33.0% Net Income (Loss) $1.9 ($17.3) $19.2 Adjusted EBITDA $14.1 ($5.
Slide 19: Income Statement
INCOME STATEMENT Consolidated Statements of Operations (in thousands, except share and per share amounts) Three Months Ended March 31, 2024 2023 Revenue, net $98,392 $83,490 Cost of goods sold 56,207 55,979 Gross profit $42,185 $27,511 Operating expenses Marketing and advertising 7,609 7,144 Salarie
Slide 20: Balance Sheet
BALANCE SHEET Consolidated Balance Sheets (in thousands, except share and par value amounts) March 31, December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $3,997 $12,448 Restricted cash 1,465 1,465 Accounts receivable, net 24,774 25,207 Inventories, net 50,383 56,465 Prepaid expe
Slide 21: Cash Flow
CASH FLOW Consolidated Statements of Cash Flow (in thousands) Three Months Ended March 31, 2024 2023 Operating activities Net income (loss) $1,855 ($17,321) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 2,413 1,719 Eq
Slide 22: Cash Flow (Continued)
CASH FLOW (CONTINUED) Consolidated Statements of Cash Flow Continued (in thousands) Three Months Ended March 31, 2024 2023 Non-cash operating activities (Derecognition) Recognition of right-of-use operating lease assets ($1,955) $5,786 Recognition of revenue for inventory exchanged for prepaid adver
Slide 23: Key Operational Metrics
KEY OPERATIONAL METRICS Key Operating and Financial Metrics Revenue by Sales Channel (in thousands) Three Months Ended March 31, 2024 2023 Wholesale $60,428 $39,997 Direct to Consumer 32,614 36,780 Outpost 5,350 6,713 Total net sales $98,392 $83,490 Key Operational Metrics March 31, 2024 2023 Wholes
Slide 24: Reconciliation of Net Income (Loss) to Adjusted EBITDA
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA Reconciliation of Net Income (Loss) to Adjusted EBITDA (amounts in thousands) Three Months Ended March 31, 2024 2023 Net income (loss) $1,855 ($17,321) Interest expense 2,051 323 Tax expense 49 56 Depreciation and amortization 2,413 1,719 EBITDA
Slide 25: 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, March 31, June 30, September 30, December 31, March 31, 2023 2023 2023 2023 2024 GAAP Results: Revenue, Net $83,490 $91,947 $100,536 $119,650 $9
Slide 26: Guidance
GUIDANCE For the Full-year fiscal 2024, the Company expects: FY2023 FY2024 Guidance Actual Low High Net Revenue $395.6 $430.0 $460.0 Growth1 31% 9% 16% Gross Margin 32% 37% 40% Adj. EBITDA $13.3 $32.0 $42.0 Free Cash Flow 80% Flow Through ¹ A barter transaction favorably impacted Net Revenue in 2023