Grapevine, Texas, May 12, 2025: Solo Brands, Inc. (NYSE: DTC; OTC: DTCB) ("Solo Brands" or "the Company") a leading portfolio of lifestyle brands (Solo Stove, Chubbies, Isle and Oru) that are redefining the outdoor and apparel industries, today announced its financial results for the three months ended March 31, 2025. (1) John Larson, Interim President and Chief Executive Officer, commented, "The first quarter's performance reflected strong sales from the Chubbies segment, up 44% from a year ago, generating ...

Core Viewpoint - Solo Brands, Inc. plans to report its fiscal 2025 first quarter financial results on May 12, 2025, before the market opens, and will hold a conference call to discuss its strategy and financial results [1]. Group 1 - The conference call is scheduled to begin at 9:00 a.m. ET, and investors and analysts can join by dialing the provided numbers [2]. - A recorded replay of the call will be available shortly after its conclusion and will remain accessible until May 19, 2025 [3]. Group 2 - Solo Brands is headquartered in Grapevine, TX, and operates as an omnichannel lifestyle brand company, offering products through five brands: Solo Stove, TerraFlame, Chubbies, ISLE, and Oru Kayak [4].

Core Viewpoint - Solo Brands, Inc. is appealing the NYSE Regulation's decision to delist its Class A common stock due to "abnormally low" price levels, with the aim of restoring compliance with NYSE listing standards [1][2][4]. Group 1: Company Actions and Status - The NYSE Regulation staff determined that Solo Brands' Class A common stock was unsuitable for listing, leading to a trading halt and current quotation on the OTC Pink Market under the symbol "DTCB" [2][3]. - The company plans to continue operating in compliance with SEC regulations and NYSE listing requirements during the appeal period [5]. - If the appeal is successful, trading of the Class A common stock may resume on the NYSE [3]. Group 2: Company Perspective - The interim President and CEO of Solo Brands stated that the current trading price and market capitalization do not reflect the company's value, prompting the appeal [4]. - The company is committed to executing action plans, including a reverse stock split, to restore compliance with NYSE standards [4]. Group 3: Company Overview - Solo Brands is headquartered in Grapevine, TX, and operates a portfolio of lifestyle brands, including Solo Stove, Chubbies, Isle, and Oru, focusing on innovative outdoor and apparel products [6].

Core Insights - Levi Strauss & Company's shift to a direct-to-consumer (DTC) model is timely and strategically beneficial for its future growth [1] - The DTC model addresses previous challenges with third-party vendor displays, enhancing consumer experience and sales performance [2] Financial Performance - The company reported a revenue growth of 3.4% for fiscal Q1 2025, with a 12% increase in DTC sales contributing to a 9% organic growth [4] - Adjusted diluted earnings increased by 52% to $0.38, significantly surpassing consensus expectations by nearly 2500 basis points [5] - Gross margin improved by 330 basis points and adjusted EBITDA margin by 400 basis points, driven by price realization and cost reductions [5] Market Position and Outlook - The international business showed strong performance with a 9% growth, while U.S. growth was solid at 8% [4] - Women's category sales grew by double digits, now representing 38% of total sales, and non-denim items accounted for 35% of sales [4] - The company projects a 4% organic growth at the midpoint for the year, with an expected gross margin expansion of 100 basis points [5] Capital Return Strategy - Levi's capital return strategy includes a dividend yield of approximately 3.85% and a payout ratio of less than 20%, indicating a sustainable distribution policy [6] - The company has increased its distribution six times since 2021, reflecting a healthy growth outlook despite a brief pandemic-related suspension [7] Balance Sheet Strength - The company's balance sheet remains strong, with equity up by 3.2% despite reduced cash and assets, and leverage is low at less than 0.5x equity [8] - Liquidity is robust, exceeding $1.4 billion, which supports ongoing capital returns and distribution increases [8] Analyst Sentiment - Analysts have mixed responses to Levi's results, with some price target reductions but an upgrade to Overweight by JPMorgan, indicating a potential minimum upside of 10% [11] - The stock is currently rated as Moderate Buy, with a projected earnings growth of 9.45% [9]

Group 1 - The article discusses the analysis of oil and gas companies, focusing on identifying undervalued names in the sector, including balance sheet evaluations, competitive positioning, and development prospects [1] - John Malone, a board member of Warner Bros. Discovery, has been a proponent of the company's acquisition from AT&T, indicating his long-term interest and support for the business [2] - The oil and gas industry is characterized as a boom-bust, cyclical sector that requires patience and experience for successful investment [2] Group 2 - The article emphasizes the importance of thorough analysis and understanding of the companies involved in the oil and gas industry for potential investors [1]

Toronto, Ontario--(Newsfile Corp. - April 3, 2025) - Royalties Inc. (CSE: RI) (OTC Pink: ROYIF), ("the Company") is pleased to announce that its common shares are now eligible for electronic clearing and settlement in the United States through the Depository Trust Company ("DTC"). DTC eligibility is expected to simplify the process of trading and enhance the liquidity of its common shares in the United States, the world's largest capital market.DTC eligibility streamlines the trading process, making it mor ...

Financial Data and Key Metrics Changes - Total net sales for 2024 were $455 million, down 8% from the prior year [13] - Adjusted gross profit margin improved to 61.7% [13] - Adjusted EBITDA for the year was $32.6 million, representing 7.2% of net sales [19] - Fourth quarter net sales were $143.5 million, down 13.2% year-over-year [14] - Reported gross profit margin for the fourth quarter was 61.1%, up 280 basis points from the previous year [16] - GAAP net loss for 2024 was $180.2 million, an improvement from a net loss of $195.3 million in 2023 [19] Business Line Data and Key Metrics Changes - Declines in retail and direct-to-consumer channels within the Solo Stove segment were noted, partially offset by increased sales in the Chubbies segment [14] - Selling, general and administrative expenses decreased to $81.8 million in the fourth quarter from $84.3 million in the prior year [16] - Adjusted net income for the year was $11.4 million, with an adjusted EPS of $0.12 [19] Market Data and Key Metrics Changes - The company ended the quarter with $12 million in cash and cash equivalents [25] - Inventories were reported at $108.6 million, down from a year ago [25] - Cash provided by operating activities for the year was $10.5 million [26] Company Strategy and Development Direction - The company is focused on an aggressive turnaround plan for 2025, with over 30 value-accretive initiatives [7][10] - Key initiatives include resetting the cost structure, focusing on profitability by channel and product, and revamping the marketing approach [31][32] - A new water sports division was created by consolidating ISLE paddle boards and Oru Kayaks to enhance profitability [35] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges ahead but expressed confidence in the company's foundation, including strong brands and loyal customers [11] - The company is pausing financial guidance due to an uneven consumer environment and uncertainty with tariffs [23] - Management expects performance improvements to be more visible in the latter half of the year as initiatives ramp up [40] Other Important Information - The company is actively addressing tariff impacts by shifting production to alternative countries [24] - A disciplined capital allocation strategy is being maintained, with no M&A planned for 2025 [26] - The company is evaluating strategies to refinance existing debt and improve liquidity [28] Q&A Session Summary - No questions were taken after the prepared remarks, as management aimed to address most inquiries during the presentation [12]

Solo Brands, Inc. (NYSE:DTC) Q4 2024 Earnings Conference Call March 12, 2025 9:00 AM ET Company Participants Mark Anderson - Senior Director, Treasury and IR John Larson - Interim President and CEO Laura Coffey - CFO Conference Call Participants Operator Good morning, and welcome to the Solo Brands Fourth Quarter and Fiscal Year 2024 Financial Results Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Mark Anderson, Senior Dire ...

Financial Performance - Net sales decreased to $454.55 million in 2024 from $494.78 million in 2023, representing a decline of approximately 8.1%[369] - Gross profit fell to $260.26 million in 2024, down from $302.15 million in 2023, a decrease of about 13.9%[369] - Total operating expenses were $434.88 million in 2024, compared to $530.00 million in 2023, reflecting a reduction of approximately 17.9%[369] - The net loss attributable to Solo Brands, Inc. was $113.36 million in 2024, slightly higher than the loss of $111.35 million in 2023[369] - Cash and cash equivalents decreased to $11.98 million at the end of 2024 from $19.84 million at the end of 2023, a decline of about 39.8%[371] - Total assets decreased to $495.06 million in 2024 from $659.32 million in 2023, a reduction of approximately 25%[367] - Total current liabilities increased to $121.71 million in 2024 from $88.56 million in 2023, an increase of about 37.4%[367] - Long-term debt remained relatively stable at $142.06 million in 2024 compared to $142.99 million in 2023[367] - The company reported cash flows from operating activities of $10.52 million in 2024, down from $62.42 million in 2023[371] - The basic and diluted net income (loss) per Class A common stock was $(1.94) in 2024, compared to $(1.84) in 2023[369] Debt and Interest Rates - The company had indebtedness of $69.0 million and $83.0 million under its Revolving Credit Facility and Term Loan, respectively, with annualized interest rates of 7.03% and 7.08% as of December 31, 2024[350] - A 100 basis points increase in SOFR would increase the company's interest expense by approximately $1.5 million in any given year[350] - The company has not entered into any interest rate swap contracts to mitigate interest rate fluctuations as of December 31, 2024[350] - The Company is evaluating strategies to refinance its existing debt, which may include restructuring or issuing new debt[389] Compliance and ESG - The company expects to incur significant additional costs for compliance with new ESG regulations, including the California Climate Corporate Data Accountability Act and the European Union Corporate Sustainability Reporting Directive, which will require expansive disclosures on sustainability topics[247][248] - The company may face reputational damage and financial impacts if it fails to meet evolving stakeholder expectations regarding ESG practices[246] International Operations - International sales accounted for 6.9% of consolidated revenues in 2024, up from 6.0% in 2023[353] - The company is exposed to risks from international geopolitical conflicts, which may negatively impact its operations and supply chain[250] - A 100 basis points unfavorable change in foreign currency exchange rates would increase operating expenses by approximately $0.3 million and decrease net sales by approximately $0.3 million for the year ended December 31, 2024[353] Acquisitions and Market Strategy - The acquisition of TerraFlame on May 1, 2023, was for a total purchase consideration of $13.2 million, aimed at increasing brand and market share in the outdoor activities industry[468] - The acquisition of IcyBreeze on July 1, 2023, totaled $52.1 million, with cash paid at closing amounting to $29.4 million, intended to complement the Company's product portfolio[473] - IcyBreeze generated net sales of $14.8 million in 2024, but incurred a net loss of $61.7 million for the same period[477] Impairments and Restructuring - The Company recognized total impairment charges of $136.1 million in 2024, including $76.0 million related to goodwill impairment within the Solo Stove reporting unit[464] - The Company underwent significant restructuring and contract termination charges in 2024 due to management changes[460] - The Company identified goodwill impairment indicators as of September 30, 2024, leading to impairment charges of $19.9 million and $25.0 million for the IcyBreeze and Solo Stove reporting units, respectively[498] Inventory and Expenses - Inventory obsolescence expense increased to $18.0 million in 2024 from $2.0 million in 2023, primarily due to a write-down of inventory associated with IcyBreeze[478] - Total sales returns and allowances were $19.3 million and $14.7 million for the years ended December 31, 2024 and 2023, respectively[434] - Total sales rebates were $6.3 million and $5.8 million for the years ended December 31, 2024 and 2023, respectively[434] - Research and development expense was $1.7 million and $0.7 million for the years ended December 31, 2024 and 2023, respectively[441] - Advertising expense was $96.0 million and $96.9 million for the years ended December 31, 2024 and 2023, respectively[439] Stock and Compensation - The total unrecognized equity-based compensation as of December 31, 2024, was $11,944,000, down from $15,118,000 in 2023[514] - The total weighted average grant date fair value of restricted stock units vested in 2024 was $4.1 million, compared to $4.4 million in 2023[522] - The Company granted 3,017,000 restricted stock units in 2024 at a weighted average grant date fair value of $2.02[522] - The Company granted 1,468 Executive Performance Stock Units (EPSUs) in 2024, with a weighted-average grant date fair value of $2.36[526] Tax and Income - The Company recognized a total income tax benefit of $8.96 million for the year ended December 31, 2024, compared to a benefit of $36.23 million in 2023, resulting in effective tax rates of 4.7% and 15.6%, respectively[540] - The total income (loss) before income taxes for 2024 was $(189.15) million, an improvement from $(231.56) million in 2023[539]

Financial Performance - Net sales for Q4 2024 decreased by $21.8 million to $143.5 million, down 13.2%, primarily due to declines in both retail and direct-to-consumer channels within the Solo Stove segment[6]. - Gross profit for Q4 2024 was $87.8 million, or 61.1% of net sales, an increase of 280 basis points compared to the previous year[6]. - The net loss for Q4 2024 was $58.2 million, or (40.6)% of net sales, which improved compared to the prior year[6]. - For the full year 2024, net sales decreased by $40.2 million to $454.6 million, down 8.1%, driven by declines in both retail and DTC channels within the Solo Stove segment[6]. - Adjusted EBITDA for the full year 2024 was $32.6 million, or 7.2% of net sales, which declined from the prior year[6]. - Net loss attributable to Solo Brands, Inc. for the year ended December 31, 2024, was $113.4 million, compared to a loss of $111.3 million in 2023[19]. - Year-end 2024 net loss was $180,192 thousand, compared to a net loss of $195,332 thousand for the year 2023[51]. - The adjusted EBITDA margin for the year 2024 was 7.2%, down from 14.2% in 2023[51]. Operating Expenses - Operating expenses decreased by $194.2 million to $143.0 million, down 57.6%, mainly due to a reduction in restructuring and impairment charges[6]. - Total operating expenses in Q4 2024 were $143.0 million, significantly reduced from $337.2 million in Q4 2023[19]. - Restructuring and related charges for Q4 2024 amounted to $52,048 thousand, compared to $244,650 thousand in Q4 2023[51]. - The company incurred restructuring, contract termination, impairment, and related charges of $154,408,000 for the year ended December 31, 2024[49]. Cash and Liquidity - Cash and cash equivalents were $12.0 million as of December 31, 2024, compared to $19.8 million at the end of 2023[7]. - The company reported a net cash provided by operating activities of $10.5 million for the year ended December 31, 2024, down from $62.4 million in 2023[28]. - The company is evaluating strategies to refinance existing debt and improve liquidity through operational improvements in 2025[9]. Inventory and Assets - Inventory as of December 31, 2024, was $108.6 million, a slight decrease from $111.6 million at the end of 2023[8]. - Total assets decreased to $495.1 million in 2024, down from $659.3 million in 2023[26]. - Long-term debt remained relatively stable at $142.1 million in 2024 compared to $143.0 million in 2023[26]. Marketing and Business Initiatives - Marketing expenses for Solo Stove in 2024 were $67.7 million, a decrease from $71.8 million in 2023[24]. - The company has identified 30+ value accretive initiatives as part of its turnaround plan for 2025[3]. - The company reported a significant increase in business optimization and expansion expenses, totaling $8,108,000 for the year ended December 31, 2024[48]. - Business optimization and expansion expenses for Q4 2024 were $1,852 thousand, compared to $6 thousand in Q4 2023[51]. Profit Margins and Adjustments - For the year ended December 31, 2024, the adjusted gross profit was $280,305,000, with an adjusted gross profit margin of 61.7%[47]. - The company reported a gross profit of $260,264,000 for the year ended December 31, 2024, with a gross profit margin of 57.3%[47]. - The adjusted net income (loss) per Class A common stock for the year ended December 31, 2024, was $0.12, compared to $(1.94) for the net income (loss) per Class A common stock[49]. - The company plans to present adjusted net income (loss) per Class A common stock excluding noncontrolling interests going forward, enhancing comparability[37].