Core Viewpoint - BRC Inc. reported a quarterly loss of $0.01 per share, which was better than the Zacks Consensus Estimate of a loss of $0.02, indicating a 50% earnings surprise [1] - The company generated revenues of $98.2 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 3.31%, although this represents a decline from $100.54 million in the same quarter last year [2] Financial Performance - Over the last four quarters, BRC Inc. has exceeded consensus EPS estimates three times [2] - The company has topped consensus revenue estimates two times in the last four quarters [2] - BRC Inc. shares have declined approximately 13.5% year-to-date, contrasting with the S&P 500's gain of 20.1% [3] Future Outlook - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [3][4] - Current consensus EPS estimate for the upcoming quarter is $0.01 on revenues of $115.86 million, while for the current fiscal year, the estimate is -$0.02 on revenues of $398.32 million [7] Industry Context - The Consumer Products - Staples industry, to which BRC Inc. belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact BRC Inc.'s performance [5]

[Part I - Financial Information](index=6&type=section&id=Part%20I%20-%20Financial%20Information) [Financial Statements (unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents BRC Inc.'s unaudited consolidated financial statements for Q3 2024, including balance sheets, operations, equity, cash flows, and detailed notes [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of September 30, 2024, total assets decreased slightly to $233.7 million, total liabilities decreased to $180.1 million, and total stockholders' equity increased to $53.6 million Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2024 (unaudited) | Dec 31, 2023 (audited) | | :--- | :--- | :--- | | **Total Current Assets** | $102,988 | $107,738 | | **Total Assets** | $233,664 | $235,776 | | **Total Current Liabilities** | $90,588 | $84,109 | | **Total Liabilities** | $180,099 | $189,268 | | **Total Stockholders' Equity** | $53,565 | $46,508 | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) For Q3 2024, net revenue decreased 2% year-over-year to $98.2 million, while gross profit increased 21% to $41.3 million, leading to an operating income of $1.1 million Statement of Operations Summary (in thousands, except per share data) | Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | :--- | :--- | | **Revenue, net** | $98,204 | $100,536 | $285,613 | $275,974 | | **Gross Profit** | $41,348 | $34,059 | $120,791 | $93,777 | | **Operating Income (Loss)** | $1,106 | $(6,986) | $6,040 | $(37,991) | | **Net Loss** | $(1,397) | $(10,694) | $(916) | $(42,680) | | **Net Loss per Share (Basic & Diluted)** | $(0.01) | $(0.05) | $(0.01) | $(0.21) | [Consolidated Statements of Stockholders' Equity](index=10&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity increased from $46.5 million at the beginning of 2024 to $53.6 million as of September 30, 2024, driven by equity-based compensation and other transactions, partially offset by net loss - Total stockholders' equity increased to **$53,565 thousand** as of September 30, 2024, up from **$46,508 thousand** at the start of the year[11](index=11&type=chunk) [Consolidated Statements of Cash Flows](index=13&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first nine months of 2024, the company generated $9.1 million in cash from operating activities, a significant turnaround from the $40.4 million used in the prior year Cash Flow Summary (Nine Months Ended Sep 30, in thousands) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $9,145 | $(40,359) | | **Net cash used in investing activities** | $(6,096) | $(13,296) | | **Net cash (used in) provided by financing activities** | $(9,311) | $22,797 | | **Net decrease in cash** | $(6,262) | $(30,858) | | **Cash and cash equivalents, end of period** | $7,336 | $6,667 | [Notes to Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the company's significant accounting policies, including revenue recognition, leases, equity-based compensation, and breakdowns of financial statement line items - A change in the BRCC Loyalty Program's points expiration policy resulted in a **$5.7 million increase** to revenue in the Direct to Consumer Channel for the nine months ended September 30, 2024[32](index=32&type=chunk) - The company entered into agreements to exchange finished goods inventory for prepaid advertising, recognizing **$15.2 million of revenue** and a corresponding asset for the nine months ended September 30, 2024[81](index=81&type=chunk)[83](index=83&type=chunk) - The company received a purchase incentive of **$13.5 million** from a co-manufacturing partner, which will be recognized as a reduction of cost of sales over five years[85](index=85&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=44&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's Q3 2024 financial performance, highlighting revenue trends, gross margin improvements, and strategic channel adjustments [Overview and Key Factors Affecting Performance](index=44&type=section&id=Overview%20and%20Key%20Factors%20Affecting%20Performance) BRC Inc. operates as a Veteran-led premium coffee and media company, focusing on expanding its Wholesale channel while managing DTC declines and re-evaluating Outpost strategy - The company's strategy involves a three-pronged approach to build its brand: Inform, Inspire, and Entertain[144](index=144&type=chunk) - Current channel trends show increased revenue in Wholesale, declining revenue in DTC due to market shifts and reduced ad spend, and decreased revenue in the Outpost channel with limited growth expected in 2024[149](index=149&type=chunk) [Results of Operations](index=47&type=section&id=Results%20of%20Operations) For Q3 2024, net revenue decreased 2% year-over-year to $98.2 million, while gross profit rose 21% to $41.3 million, boosting gross margin to 42% from 34% Q3 2024 vs. Q3 2023 Net Sales by Channel (in thousands) | Channel | Q3 2024 | Q3 2023 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Wholesale | $63,655 | $61,527 | $2,128 | 3% | | Direct to Consumer | $29,044 | $32,794 | $(3,750) | (11)% | | Outpost | $5,505 | $6,215 | $(710) | (11)% | | **Total net sales** | **$98,204** | **$100,536** | **$(2,332)** | **(2)%** | - Q3 2024 gross margin increased to **42%** from **34%** in Q3 2023, attributed to product mix shifts to higher-margin FDM, RTD productivity improvements, lower warehousing costs, and favorable inventory reserve changes[166](index=166&type=chunk) - Q3 2024 General & Administrative expenses decreased by **$7.2 million (37%)** YoY due to reductions in corporate infrastructure, professional services, and IT[169](index=169&type=chunk) [Liquidity and Capital Resources](index=57&type=section&id=Liquidity%20and%20Capital%20Resources) The company's primary cash sources are cash on hand, operating activities, and credit facilities, which management believes are sufficient to fund working capital and commitments for the next twelve months - As of September 30, 2024, the company had **$7.3 million** in cash and cash equivalents, **$12.4 million** in working capital, and **$9.4 million** of available borrowings under its credit facilities[185](index=185&type=chunk) - For the nine months ended September 30, 2024, net cash from operating activities was **$9.1 million**, a **$49.5 million improvement** from the same period in 2023[188](index=188&type=chunk)[189](index=189&type=chunk) - The company has minimum purchase commitments of approximately **$5.7 million** for the remainder of 2024 and **$26.1 million** for 2025[192](index=192&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=59&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company identifies primary market risks as commodity price volatility, interest rate fluctuations on variable-rate debt, and inflation, which are managed through price increases and efficiency improvements - The company's primary market risk is commodity price volatility for resources like coffee beans, dairy products, and aluminum cans[195](index=195&type=chunk) - The company's debt facilities have variable interest rates; a hypothetical **5% increase** would result in an additional annual interest expense of approximately **$3.4 million** on **$68.2 million** of outstanding variable rate debt[197](index=197&type=chunk) - Inflationary factors impact product, overhead, and freight costs, which the company attempts to offset through price increases and efficiency improvements[198](index=198&type=chunk) [Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of September 30, 2024, following the implementation of a new procure-to-payment system - Management concluded that the company's disclosure controls and procedures were effective as of September 30, 2024[199](index=199&type=chunk) - During Q3 2024, the company implemented a new procure-to-payment system and modified internal controls accordingly; no other material changes to internal controls were reported[200](index=200&type=chunk)[201](index=201&type=chunk) [Part II - Other Information](index=62&type=section&id=Part%20II%20-%20Other%20Information) [Legal Proceedings](index=62&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in several legal disputes, including warrant exercise lawsuits, a former consultant's royalty claim, and a co-manufacturer's breach of contract claim, with related accruals - The company is defending against multiple lawsuits (Tang Capital, John Brian Clark, Alta Partners) alleging breach of contract for refusing to permit the exercise of warrants[137](index=137&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk) - An accrual of **$400,000** has been recorded related to a lawsuit from a former consultant, Strategy and Execution, Inc. (SEI)[138](index=138&type=chunk) - An accrual of **$2.7 million** has been recorded related to a breach of contract complaint filed by a co-manufacturer[140](index=140&type=chunk) [Risk Factors](index=62&type=page&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2023 - There have been no material changes to the risk factors that were previously disclosed in Item 1A of the Company's 2023 Form 10-K[204](index=204&type=chunk) [Unregistered Sales of Equity Securities, Defaults Upon Senior Securities, and Mine Safety Disclosures](index=62&type=section&id=Item%202%2C%203%2C%204) The report indicates 'Not applicable' for Unregistered Sales of Equity Securities and Use of Proceeds, Defaults Upon Senior Securities, and Mine Safety Disclosures - Items 2 (Unregistered Sales of Equity Securities and Use of Proceeds), 3 (Defaults Upon Senior Securities), and 4 (Mine Safety Disclosures) are reported as 'Not applicable'[204](index=204&type=chunk)[205](index=205&type=chunk) [Other Information](index=62&type=section&id=Item%205.%20Other%20Information) This section discloses that on September 16, 2024, director Steven Taslitz adopted a Rule 10b5-1 trading plan to sell up to 337,241 shares of Class A Common Stock - On September 16, 2024, director Steven Taslitz adopted a Rule 10b5-1 trading plan to sell up to **337,241 shares** of Class A Common Stock[206](index=206&type=chunk) [Exhibits](index=63&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the report, including the company's certificate of incorporation, by-laws, officer certifications, and XBRL data files - The report lists exhibits filed, including corporate governance documents, CEO/CFO certifications required by the Sarbanes-Oxley Act, and Inline XBRL documents[209](index=209&type=chunk)

Exhibit 99.1 BRC Inc. Reports Third Quarter 2024 Financial Results Highlights • Wholesale revenue grew 3.5% compared to Q3 2023 while consolidated net revenue decreased 2.3% in Q3 2024 to $98.2 million. • Adjusted EBITDA of $7.1 million and Net Loss of $1.4 million, an increase of $0.9 million compared to Adjusted EBITDA of $6.2 million in Q3 2023 and an improvement of $9.3 million from Net Loss of $10.7 million in Q3 2023. • Increased midpoint guidance for Gross Margin and adjusted EBITDA, while narrowing ...

The Phase 2 double-blind placebo-controlled clinical trial will evaluate the potential of RJx-01 to maintain muscle integrity in older persons with severe acute exacerbation of COPD Rejuvenate Biomed anticipates commencing patient enrollment first half 2025 DIEPENBEEK, Belgium and LEICESTER, United Kingdom and LOS ANGELES, Oct. 28, 2024 (GLOBE NEWSWIRE) -- Rejuvenate Biomed, the University of Leicester, the National Institute for Health and Care Research (NIHR) Leicester Biomedical Research Centre (BRC), an ...

Investors looking for stocks in the Security and Safety Services sector might want to consider either Brady (BRC) or Allegion (ALLE) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look. We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estim ...

Investors in BRC Inc. (BRCC) need to pay close attention to the stock based on moves in the options market lately. That is because the Oct. 18, 2024 $1 Call had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean the ...

second Quarter 2024 We are America's Coffee 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 the Company's intentions, beliefs or current expectations concerning, among other things, the launch of Black Rifle Energy , the Company's financial condition, liquidity, ...

BRC Inc. (NYSE:BRCC) Q2 2024 Earnings Conference Call August 8, 2024 8:30 AM ET Company Participants Jason Martini – Investor Relations Chris Mondzelewski – Chief Executive Officer Steve Kadenacy – Chief Financial Officer Conference Call Participants Michael Baker – D.A. Davidson Matt McGinley – Needham & Company George Kelly – ROTH Capital Partners David Shakno – William Blair Sarang Vora – Telsey Advisory Group Operator Greetings. Welcome to the Black Rifle Coffee Company 2024 Earnings Call. At this time, ...

BRC Inc. (BRCC) reported $89.02 million in revenue for the quarter ended June 2024, representing a year-overyear decline of 3.2%. EPS of -$0.01 for the same period compares to -$0.03 a year ago. The reported revenue represents a surprise of -12.33% over the Zacks Consensus Estimate of $101.54 million. With the consensus EPS estimate being -$0.01, the company has not delivered EPS surprise. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectatio ...

BRC Inc. (BRCC) came out with a quarterly loss of $0.01 per share in line with the Zacks Consensus Estimate. This compares to loss of $0.03 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post a loss of $0.03 per share when it actually produced earnings of $0.01, delivering a surprise of 133.33%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. BRC INC, which belongs to the Zacks Consume ...