Reed’s, Inc. (NASDAQ: REED) (“Reed’s” or the “Company”), owner of
the nation’s leading portfolio of handcrafted, all-natural ginger
beverages, is providing financial results for the three months and
full year ended December 31, 2021.
FY 2021 Financial Highlights (vs. FY 2020):
- Net revenue increased 19% to $49.6 million.
- Gross profit increased 7% to $13.6 million, with gross margin
of 27.4% compared to 30.7%.
- Operating loss was $(15.9) million compared to $(8.6)
million.
- Modified EBITDA was $(13.5) million compared to $(6.8)
million.
Q4 2021 Financial Highlights (vs. Q4 2020):
- Net revenue increased 20% to $12.8 million.
- Gross profit was $2.6 million compared to $3.5 million, with
gross margin of 20.4% compared to 32.7%.
- Operating loss was $(4.4) million compared to $(2.7)
million.
- Modified EBITDA was $(3.9) million compared to $(2.0)
million.
Management Commentary
“As highlighted in our earnings pre-announcement last month, we
navigated a challenging supply chain environment last year and
continued to deliver strong growth of nearly 20% for both the
fourth quarter and full year,” said Norman E. Snyder, CEO of
Reed’s, Inc. “The cost increases in the global supply chain have
decelerated in the first quarter and the benefit of our various
cost saving initiatives from last year have begun to take effect.
We expect margin improvements in Q1 and going forward as we have
recently implemented price increases across our portfolio of
products and have other cost saving initiatives to roll out in the
coming months.
“Looking ahead to the remainder of 2022, we have multiple
catalysts in our roadmap to deliver on our financial outlook,
including the launch of Hard Ginger in Q2 and ramping Classic Mules
across our extensive nationwide distribution. Further, we plan to
continue driving sales growth with Reed’s Ginger Ale, which is up
nearly 3x since 2020, and with the launch of our new sleek Virgil’s
Zero Sugar cans – hitting the shelves at Sprouts next month.”
Fourth Quarter 2021 Financial Results
During the fourth quarter of 2021, net revenue increased 20% to
$12.8 million compared to $10.7 million in the prior year. The
increase was attributed to strong demand across Reed’s portfolio of
products, particularly Reed’s Ginger Ale, Ginger Beer, and
Virgil’s.
Gross profit during the fourth quarter of 2021 was $2.6 million
compared to $3.5 million for the same period in 2020. Gross margin
was 20.4% compared to 32.7% in the fourth quarter of 2020,
reflecting increased supply chain and input costs, tolling fees,
and ocean freight.
Delivery and handling costs increased to $3.1 million during the
fourth quarter of 2021 compared to $1.9 million in the fourth
quarter of 2020. The year-over-year increase was driven by volume
growth and higher freight rates. Delivery and handling costs were
24% of net sales and $3.94 per case, compared to 18% of net sales
and $2.99 per case during the same period last year.
Selling and marketing costs of $2.2 million during the fourth
quarter of 2021 remained in line with the fourth quarter of
2020.
General and administrative expenses (G&A) decreased to $1.7
million during the fourth quarter of 2021 compared to $2.1 million
in the prior year period. The decrease was driven by lower employee
costs and stock compensation, partially offset by other
administrative costs.
Operating loss during the fourth quarter of 2021 was $4.4
million or $(0.05) per share, compared to operating loss of $2.7
million or $(0.05) per share in the fourth quarter of 2020.
Modified EBITDA was $(3.9) million in the fourth quarter of 2021
compared to $(2.0) million in the fourth quarter of 2020.
Liquidity and Cash Flow
For the full year 2021, the Company used approximately $17.6
million of cash in operating activities compared to $9.5 million of
cash used in 2020. The increase in cash used in operating
activities reflects the increased net loss and an increased
investment in inventory.
As of December 31, 2021, the Company had approximately $49,000
of cash and $109,000 available on its revolving line of credit. The
total facility has a borrowing capacity of $13.0 million with $10.2
million balance.
Subsequent to year-end, in March 2022 the Company closed a $5.4
million private placement through the issuance of 18.6 million
shares of common stock and warrants to purchase up to an aggregate
of 9.3 million shares of common stock. Officers and directors of
the Company purchased approximately $1.1 million of the securities
in the offering. More details can be found in the Company’s Form
8-k filed with the Securities and Exchange Commission on March 14,
2022.
FY 2022 Financial Guidance and Outlook
Reed’s continues to expect 2022 net sales to range between
approximately $59-62 million, reflecting growth of approximately
20-25% from 2021. The Company also continues to expect gross margin
in 2022 to be approximately 30% compared to 27.4% in 2021.
In addition, management is implementing a series of cost saving
initiatives to offset higher freight costs such as prioritizing
direct shipments, selling a greater mix of cans as opposed to
bottles, establishing minimum order quantities, restructuring
third-party logistics agreements, and optimizing distribution
center locations. These cost saving initiatives are expected to
result in improved modified EBITDA in fiscal 2022.
Conference Call
The Company will conduct a conference call today, March 31,
2022, at 5:00 p.m. Eastern time to discuss its results for the
fourth quarter and full year ended December 31, 2021.
Reed’s management will host the conference call, followed by a
question-and-answer period.
Date: Thursday, March 31, 2022Time: 5:00 p.m. Eastern
timeToll-free dial-in number: (844) 850-0544International dial-in
number: (412) 542-4115Conference ID: 10164980
Please dial into the conference call 5-10 minutes prior to the
start time. An operator will register your name and organization.
If you have any difficulty connecting with the conference call,
please contact the company’s investor relations team at (720)
330-2829.
The conference call will be broadcast live and available for
replay here and on the investor relations section of the Company’s
website at https://investor.reedsinc.com.
About Reed's, Inc.
Reed’s, Inc. is an innovative company and category leader that
provides the world with high quality, premium and naturally bold™
better-for-you beverages. Established in 1989, Reed's Inc. is a
leader in craft beverages under the Reed’s®, Virgil’s® and Flying
Cauldron® brand names. The company’s beverages are now sold in over
45,000 stores nationwide.
Reed’s is known as America's #1 name in all-natural,
ginger-based beverages. Crafted using real ginger and premium
ingredients, the Reed’s portfolio includes ginger beers, ginger
ales, ready-to-drink ginger mules, ginger shots, and ginger
candies. The brand has recently successfully expanded into the
zero-sugar segment with its proprietary, all-natural sweetener
system.
Virgil's® is an award-winning line of craft sodas, made with the
finest natural ingredients and without GMOs or artificial
preservatives. The brand offers an array of great tasting, bold
flavored sodas including Root Beer, Vanilla Cream, Black Cherry,
Orange Cream, and more. These flavors are also available in nine
zero sugar varieties which are naturally sweetened and certified
ketogenic.
Flying Cauldron® is a non-alcoholic butterscotch beer
prized for its creamy vanilla and butterscotch flavors. Sought
after by beverage aficionados, Flying Cauldron is made with
all-natural ingredients and no artificial flavors, sweeteners,
preservatives, gluten, caffeine, or GMOs.
For more information,
visit drinkreeds.com, virgils.com and flyingcauldron.com.
Forward-Looking Statements
Statements in this release that are not historical are
forward-looking statements made pursuant to the safe harbor
provisions of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements are typically identified
by terms such as "estimate," "expect,”, "guidance," "intend,"
"likely," "financial outlook," "plan, "potential," "predict,"
"probable," "project," ["seek," "should," "will," and similar
expressions. These forward-looking statements are based on current
expectations and include our , management’s expectations of margin
improvements in Q1 and plans and catalysts intended to drive sales
growth under the heading “Management’s Commentary” and guidance for
fiscal year 2022, growth disclosure under then heading “FY 2022
Financial Guidance and Outlook”. The achievement or success of the
matters covered by such forward-looking statements involves risks,
uncertainties, and assumptions, many of which involve factors or
circumstances that are beyond our control. Reed‘s 2022 guidance
reflects year-to-date and expected future business trends and
includes impacts of COVID-19 on the supply chain and logistics as
of the date hereof. New supply chain challenges that may develop
and further potential inflation cannot be reasonably estimated and
are not factored into current fiscal 2022 guidance. These risks
could materially impact our ability to access raw materials,
production, transportation and/or other logistics needs.
Financial guidance should not be viewed as a substitute for full
financial statements prepared in accordance with GAAP.
If any such risks or uncertainties materialize or if any of the
assumptions prove incorrect, Reed’s actual results could differ
materially from the results expressed or implied by the
forward-looking statements we make, including our ability to
achieve our targets for the fiscal year ending December 31, 2022.
The risks and uncertainties referred to above include, but are not
limited to: risks associated with current economic uncertainties
tied to the COVID-19 pandemic, including but not limited to its
effect on customer demand for the our products and services and the
impact of potential delays in supply of product inputs and customer
payments; risks associated with new product releases; the impacts
of further inflation; risks that customer demand may fluctuate or
decrease; risks that we are unable to collect unbilled contractual
commitments, particularly in the current economic environment; our
ability to compete successfully and manage growth; our need for
significant capital; our ability to develop and expand strategic
and third party distribution channels; our dependence on third
party suppliers, brewers and distributors risks related to our
international operations; our ability to continue to innovate; our
strategy of making investments in sales to drive growth; increasing
costs of fuel and freight, protection of intellectual property;
competition; general political or destabilizing events, including
war, conflict or acts of terrorism; the effect of evolving domestic
and foreign government regulations, including those addressing data
privacy and cross-border data transfers; and other risks detailed
from time to time in Reed’s public filings, including Reed’s annual
report on Form 10-K expected to be filed on or about March 31, 2022
and subsequent reports filed with the Securities and Exchange
Commission, which are available on the Securities and Exchange
Commission’s web site at www.sec.gov. These forward-looking
statements are based on current expectations and speak only as of
the date hereof. Reed’s assumes no obligation and does not intend
to update these forward-looking statements, except as required by
law.
Investor Relations Contact
Sean Mansouri, CFAElevate IRir@reedsinc.com (720) 330-2829
REED'S
INC. |
STATEMENTS
OF OPERATIONS |
For the
Three Months and Years Ended December 31, 2021 and
2020 |
(Amounts in
thousands, except share and per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
Three Months Ended December 31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
$ |
49,599 |
|
|
$ |
41,615 |
|
|
$ |
12,781 |
|
|
$ |
10,677 |
|
Cost of
goods sold |
|
36,001 |
|
|
|
28,849 |
|
|
|
10,177 |
|
|
|
7,155 |
|
Gross
profit |
|
13,598 |
|
|
|
12,766 |
|
|
|
2,605 |
|
|
|
3,522 |
|
Gross
margin |
|
27 |
% |
|
|
31 |
% |
|
|
20 |
% |
|
|
33 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Delivery and handling expense |
|
11,939 |
|
|
|
6,856 |
|
|
|
3,051 |
|
|
|
1,906 |
|
Selling and marketing expense |
|
9,665 |
|
|
|
7,503 |
|
|
|
2,172 |
|
|
|
2,121 |
|
General and administrative expense |
|
7,965 |
|
|
|
7,023 |
|
|
|
1,738 |
|
|
|
2,151 |
|
(Gain)/Loss on sale of assets |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total
operating expenses |
|
29,569 |
|
|
|
21,382 |
|
|
|
6,961 |
|
|
|
6,178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
(15,971 |
) |
|
|
(8,616 |
) |
|
|
(4,357 |
) |
|
|
(2,656 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Loss on
extinguishment of debt |
|
- |
|
|
|
(262 |
) |
|
|
- |
|
|
|
(262 |
) |
Gain on
extinguishment of PPP note payable |
|
770 |
|
|
|
0 |
|
|
|
(0 |
) |
|
|
- |
|
Interest
expense |
|
(1,201 |
) |
|
|
(1,307 |
) |
|
|
(509 |
) |
|
|
(346 |
) |
Change in
fair value of warrant liability |
|
(0 |
) |
|
|
8 |
|
|
|
(0 |
) |
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
$ |
(16,402 |
) |
|
$ |
(10,177 |
) |
|
$ |
(4,866 |
) |
|
$ |
(3,257 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Dividends on
Series A Convertible Preferred Stock |
|
(5 |
) |
|
|
(5 |
) |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss
Attributable to Common Stockholders |
$ |
(16,407 |
) |
|
$ |
(10,182 |
) |
|
$ |
(4,866 |
) |
|
$ |
(3,257 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per
common share - basic and diluted |
$ |
(0.18 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.05 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted |
|
91,234,406 |
|
|
|
60,644,842 |
|
|
|
93,685,027 |
|
|
|
62,940,091 |
|
|
|
|
|
|
|
|
|
|
|
|
|
REED'S
INC. |
|
BALANCE
SHEETS |
|
(Amounts in
thousands, except share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
December 31, 2020 |
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash |
$ |
49 |
|
$ |
595 |
|
|
|
Accounts receivable, net of allowance of $215 and $234,
respectively |
|
5,183 |
|
|
4,718 |
|
|
|
Receivable from related party |
|
933 |
|
|
682 |
|
|
|
Inventories |
|
17,049 |
|
|
11,119 |
|
|
|
Prepaid expenses and other current assets |
|
1,491 |
|
|
1,341 |
|
|
|
|
Total current assets |
|
24,705 |
|
|
18,455 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net of accumulated depreciation of $561 and
$361, respectively |
|
992 |
|
|
920 |
|
|
|
Equipment held for sale |
|
- |
|
|
67 |
|
|
|
Intangible assets |
|
624 |
|
|
615 |
|
|
|
|
Total assets |
$ |
26,321 |
|
$ |
20,057 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
$ |
10,434 |
|
$ |
6,746 |
|
|
|
Accrued expenses |
|
286 |
|
|
895 |
|
|
|
Revolving line of credit |
|
10,229 |
|
|
- |
|
|
|
Payable to related party |
|
614 |
|
|
557 |
|
|
|
Current portion of note payable |
|
- |
|
|
599 |
|
|
|
Current portion of leases payable |
|
161 |
|
|
130 |
|
|
|
|
Total current liabilities |
|
21,724 |
|
|
8,927 |
|
|
|
|
|
|
|
|
|
|
|
Long-term liabilities: |
|
|
|
|
|
|
Lease payable, less of current portion |
|
394 |
|
|
555 |
|
|
|
Convertible note to related party |
|
- |
|
|
- |
|
|
|
Note payable, less of current portion |
|
- |
|
|
171 |
|
|
|
Warrant liability |
|
0 |
|
|
- |
|
|
|
|
|
Total liabilities |
|
22,118 |
|
|
9,653 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
Series A Convertible Preferred stock, $10 par value, 500,000 shares
authorized, 94,11 shares issued and outstanding |
|
94 |
|
|
94 |
|
|
|
Common stock, $.0001 par value, 180,000,000 and 120,000,000 shares
authorized, respectively; 93,733,975 and 86,317,096 shares issued
and outstanding, respectively |
|
9 |
|
|
9 |
|
|
|
Additional paid-in capital |
|
107,237 |
|
|
97,031 |
|
|
|
Accumulated deficit |
|
(103,137 |
) |
|
(86,730 |
) |
|
|
|
Total stockholders' equity |
|
4,203 |
|
|
10,404 |
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
26,321 |
|
$ |
20,057 |
|
|
|
|
|
|
|
|
|
|
|
REEDS,
INC. |
|
CONDENSED
STATEMENTS OF CASH FLOWS |
|
For the
Years Ended December 31, 2021 and 2020 |
|
(Amount in
thousands) |
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2021 |
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from operating activities: |
|
|
|
|
|
|
Net Loss |
|
$ |
(16,402 |
) |
$ |
(10,177 |
) |
|
Adjustments to reconcile net loss to cash used in operating
activities: |
|
|
|
|
|
|
Depreciation |
|
|
143 |
|
|
88 |
|
|
Loss on disposal of property and equipment |
|
|
67 |
|
|
- |
|
|
Gain on termination of leases |
|
|
(2 |
) |
|
- |
|
|
Loss on extinguishment of debt |
|
|
- |
|
|
262 |
|
|
Gain on forgiveness of debt |
|
|
(770 |
) |
|
- |
|
|
Amortization of debt discount |
|
|
162 |
|
|
452 |
|
|
Amortization of prepaid financing costs |
|
|
295 |
|
|
- |
|
|
Fair value of vested options |
|
|
1,684 |
|
|
1,176 |
|
|
Fair value of vested restricted shares granted to directors and
officers for services |
|
|
243 |
|
|
416 |
|
|
Common stock issued for services |
|
|
- |
|
|
- |
|
|
Common stock issued for financing costs |
|
|
- |
|
|
- |
|
|
Decrease in allowance for doubtful accounts |
|
|
(19 |
) |
|
(141 |
) |
|
Decrease in inventory reserve |
|
|
(59 |
) |
|
(452 |
) |
|
Increase in fair value of warrant liability |
|
|
- |
|
|
(8 |
) |
|
Accrual of interest on convertible note to a related party |
|
|
- |
|
|
558 |
|
|
Lease Liability |
|
|
(115 |
) |
|
(28 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
|
(446 |
) |
|
(2,478 |
) |
|
Inventory |
|
|
(5,871 |
) |
|
(159 |
) |
|
Prepaid expenses and other assets |
|
|
322 |
|
|
(759 |
) |
|
Decrease in Amortization of right of use assets |
|
|
100 |
|
|
116 |
|
|
Accounts payable |
|
|
3,689 |
|
|
1,390 |
|
|
Accrued expenses |
|
|
(609 |
) |
|
248 |
|
|
Net cash used in operating activities |
|
|
(17,589 |
) |
|
(9,496 |
) |
|
|
|
|
|
|
|
|
Cash flows
from investing activities: |
|
|
|
|
|
|
Intangible asset trademark costs |
|
|
(9 |
) |
|
(39 |
) |
|
Proceeds from sale of property and equipment |
|
|
- |
|
|
0 |
|
|
Purchase of property and equipment |
|
|
(326 |
) |
|
(122 |
) |
|
Net cash used in investing activities |
|
|
(335 |
) |
|
(161 |
) |
|
|
|
|
|
|
|
|
Cash flows
from financing activities: |
|
|
|
|
|
|
Borrowing on line of credit |
|
|
66,234 |
|
|
50,975 |
|
|
Repayment of line of credit |
|
|
(56,005 |
) |
|
(54,636 |
) |
|
Capitalization of financing costs |
|
|
- |
|
|
(130 |
) |
|
Proceeds from loan payable |
|
|
- |
|
|
770 |
|
|
Amounts from related party |
|
|
(193 |
) |
|
49 |
|
|
Repayment of amounts due to/from officers |
|
|
- |
|
|
- |
|
|
Repayment of convertible notes payable |
|
|
|
|
(4,250 |
) |
|
Principal repayments on finance lease obligations |
|
|
(2 |
) |
|
(22 |
) |
|
Exercise of options |
|
|
32 |
|
|
19 |
|
|
Exercise of warrants |
|
|
- |
|
|
- |
|
|
Repurchase of common stock |
|
|
(15 |
) |
|
- |
|
|
Proceeds from sale of common stock |
|
|
7,327 |
|
|
16,564 |
|
|
Net cash provided by financing activities |
|
|
17,378 |
|
|
9,339 |
|
|
|
|
|
|
|
|
|
Net increase/(decrease) in cash |
|
|
(546 |
) |
|
(318 |
) |
|
Cash at beginning of period |
|
|
595 |
|
|
913 |
|
|
Cash at end of period |
|
$ |
49 |
|
$ |
595 |
|
|
|
|
|
|
|
|
|
Modified EBITDA
In addition to our GAAP results, we present Modified EBITDA as a
supplemental measure of our performance. However, Modified EBITDA
is not a recognized measurement under GAAP and should not be
considered as an alternative to net income, income from operations
or any other performance measure derived in accordance with GAAP,
or as an alternative to cash flow from operating activities as a
measure of liquidity. We define Modified EBITDA as net income
(loss), plus interest expense, depreciation and amortization,
stock-based compensation, changes in fair value of warrant expense,
and one-time restructuring-related costs including employee
severance and asset impairment.
Management considers our core operating performance to be that
which our managers can affect in any particular period through
their management of the resources that affect our underlying
revenue and profit generating operations during that period.
Non-GAAP adjustments to our results prepared in accordance with
GAAP are itemized below. You are encouraged to evaluate these
adjustments and the reasons we consider them appropriate for
supplemental analysis. In evaluating Modified EBITDA, you should be
aware that in the future we may incur expenses that are the same as
or similar to some of the adjustments in this presentation. Our
presentation of Modified EBITDA should not be construed as an
inference that our future results will be unaffected by unusual or
non-recurring items.
Set forth below is a reconciliation of net loss to Modified
EBITDA for the three and twelve months ended December 31, 2021 and
2020 (unaudited; in thousands):
REEDS,
INC. |
MODIFIED
EBITDA RECONCILIATION |
For the
Three Months and Years Ended December 31, 2021 and
2020 |
(Amount in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
Three Months Ended December 31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net loss |
$ |
(16,402 |
) |
|
$ |
(10,177 |
) |
|
$ |
(4,867 |
) |
|
$ |
(3,257 |
) |
|
|
|
|
|
|
|
|
Modified EBITDA adjustments: |
|
|
|
|
|
|
|
Depreciation
and amortization |
|
243 |
|
|
|
204 |
|
|
|
63 |
|
|
|
59 |
|
Interest
expense |
|
1,201 |
|
|
|
1,307 |
|
|
|
509 |
|
|
|
346 |
|
Stock option
and other noncash compensation |
|
1,927 |
|
|
|
1,592 |
|
|
|
429 |
|
|
|
585 |
|
Gain on
extinguishment of debt |
|
(770 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Legal
settlements |
|
292 |
|
|
|
- |
|
|
|
-53 |
|
|
|
0 |
|
Loss on
extinguishment of debt |
|
- |
|
|
|
262 |
|
|
|
- |
|
|
|
262 |
|
Chang in
fair value of warrant liability |
|
- |
|
|
|
(8 |
) |
|
|
- |
|
|
|
(7 |
) |
Impairment
of severance costs |
|
- |
|
|
|
5 |
|
|
|
- |
|
|
|
5 |
|
Total EBITDA adjustments |
$ |
2,893 |
|
|
$ |
3,362 |
|
|
$ |
948 |
|
|
$ |
1,250 |
|
|
|
|
|
|
|
|
|
Modified EBITDA |
$ |
(13,509 |
) |
|
$ |
(6,815 |
) |
|
$ |
(3,918 |
) |
|
$ |
(2,007 |
) |
|
|
|
|
|
|
|
|
We present Modified EBITDA because we believe it assists
investors and analysts in comparing our performance across
reporting periods on a consistent basis by excluding items that we
do not believe are indicative of our core operating performance. In
addition, we use Modified EBITDA in developing our internal
budgets, forecasts, and strategic plan; in analyzing the
effectiveness of our business strategies in evaluating potential
acquisitions; making compensation decisions; and in communications
with our board of directors concerning our financial performance.
Modified EBITDA has limitations as an analytical tool, which
includes, among others, the following:
- Modified EBITDA does not reflect our cash expenditures, or
future requirements, for capital expenditures or contractual
commitments;
- Modified EBITDA does not reflect changes in, or cash
requirements for, our working capital needs;
- Modified EBITDA does not reflect future interest expense, or
the cash requirements necessary to service interest or principal
payments, on our debts; and
- Although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized will often have to be
replaced in the future, and Modified EBITDA does not reflect any
cash requirements for such replacements.
Reeds (NASDAQ:REED)
Historical Stock Chart
From Mar 2024 to Apr 2024
Reeds (NASDAQ:REED)
Historical Stock Chart
From Apr 2023 to Apr 2024