[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2025, detailing a net loss of $3.0 million driven by a 29% sales decrease and a $14.7 million contingent consideration charge [Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) For Q1 2025, MGP Ingredients reported a net loss of $3.0 million and diluted EPS of -$0.14, a significant decline from prior year's net income due to a 29% sales drop Condensed Consolidated Statements of Income (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Sales | $121,653 | $170,563 | | Gross Profit | $43,330 | $62,795 | | Operating Income (Loss) | $(747) | $28,917 | | Net Income (Loss) | $(3,057) | $20,584 | | Diluted EPS | $(0.14) | $0.92 | Condensed Consolidated Balance Sheets (As of March 31, 2025) | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Total Current Assets | $516,726 | $546,136 | | Total Assets | $1,378,202 | $1,405,785 | | Total Current Liabilities | $182,342 | $92,450 | | Total Liabilities | $551,509 | $573,242 | | Total Equity | $826,693 | $832,543 | Condensed Consolidated Statements of Cash Flows (Q1 2025 vs Q1 2024) | Cash Flow Activity | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $44,684 | $24,623 | | Net cash used in investing activities | $(19,926) | $(27,266) | | Net cash provided by (used in) financing activities | $(30,213) | $3,767 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's accounting policies and financial activities, including significant sales declines, an increased contingent consideration liability, and a subsequent amendment to the credit facility - The company operates and reports across three segments: Branded Spirits, Distilling Solutions, and Ingredient Solutions[25](index=25&type=chunk) Sales by Segment (Q1 2025 vs Q1 2024) | Segment | Q1 2025 Sales (in thousands) | Q1 2024 Sales (in thousands) | | :--- | :--- | :--- | | Branded Spirits | $48,227 | $50,146 | | Distilling Solutions | $46,943 | $84,852 | | Ingredient Solutions | $26,483 | $35,565 | | **Total Sales** | **$121,653** | **$170,563** | - The fair value of the contingent consideration liability for the Penelope acquisition increased by **$14.7 million** during the quarter, reaching a total of **$100 million** as of March 31, 2025, with a potential payout ranging from zero to a maximum of **$110.8 million**[46](index=46&type=chunk) - Subsequent to the quarter end, on April 24, 2025, the company amended its credit agreement, increasing the revolving credit facility from **$400 million** to **$500 million** and extending the maturity to 2030[82](index=82&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes Q1 2025 results, highlighting a 29% sales decrease, a shift to operating loss, and segment-specific declines, while affirming strong liquidity despite the downturn [Results of Operations](index=21&type=section&id=Results%20of%20Operations) Consolidated sales for Q1 2025 decreased by 29% to $121.7 million, leading to a **$0.7 million** operating loss, primarily due to lower gross profit and increased contingent consideration charges Consolidated Results Summary (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Sales | $121,653 | $170,563 | (29)% | | Gross Profit | $43,330 | $62,795 | (31)% | | Operating Income (Loss) | $(747) | $28,917 | (103)% | | Net Income (Loss) | $(3,057) | $20,584 | (115)% | - The operating loss was primarily driven by a **$15.4 million** decrease in gross profit from the Distilling Solutions segment and a **$10.6 million** increase in the charge for the change in fair value of contingent consideration[94](index=94&type=chunk) [Segment Results](index=23&type=section&id=Segment%20Results) Q1 2025 segment performance varied, with Branded Spirits sales down 4%, Distilling Solutions plummeting 45% due to reduced brown goods demand, and Ingredient Solutions falling 26% from supply challenges - Branded Spirits sales decreased **4%** to **$48.2 million**, with premium plus category growth offset by declines in mid and value tiers[99](index=99&type=chunk)[101](index=101&type=chunk) - Distilling Solutions sales fell **45%** to **$46.9 million**, primarily due to a **49%** decrease in brown goods sales resulting from reduced customer demand and elevated industry-wide barrel inventory levels[104](index=104&type=chunk)[106](index=106&type=chunk) - Ingredient Solutions sales dropped **26%** to **$26.5 million**, driven by lower sales volume of specialty wheat starches and proteins, which were affected by supply challenges[109](index=109&type=chunk)[111](index=111&type=chunk) [Cash Flow, Financial Condition, and Liquidity](index=26&type=section&id=Cash%20Flow,%20Financial%20Condition,%20and%20Liquidity) Despite a **$5.2 million** cash decrease, net cash from operating activities increased to **$44.7 million** due to reduced receivables, with the company maintaining strong liquidity supported by available credit facilities Cash Flow Summary (Q1 2025 vs Q1 2024) | Activity | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $44,684 | $24,623 | | Net cash used in investing activities | $(19,926) | $(27,266) | | Net cash provided by (used in) financing activities | $(30,213) | $3,767 | - Total debt was reduced to **$297.1 million** at March 31, 2025, from **$323.5 million** at December 31, 2024[127](index=127&type=chunk) - The company expects to incur approximately **$36,000** in capital expenditures in 2025[120](index=120&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company identifies commodity price volatility and interest rate changes as primary market risks, estimating an **$800,000** increase in annual interest expense for a 100 basis point rate hike - The company is exposed to market price risk for commodities used in production, including grain, wheat flour, and natural gas[132](index=132&type=chunk) - Based on outstanding variable-rate debt at March 31, 2025, a 100 basis point increase in interest rates would increase annual interest expense by approximately **$800,000**[134](index=134&type=chunk) [Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) The Interim CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The Interim CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[135](index=135&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[136](index=136&type=chunk) [PART II. OTHER INFORMATION](index=29&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) The company faces consolidated securities class action and derivative lawsuits alleging securities fraud and breaches of fiduciary duty, which it intends to vigorously defend - The company is a defendant in a consolidated securities class action lawsuit alleging securities fraud under the Securities Exchange Act of 1934 for statements made between May 4, 2023, and October 30, 2024[72](index=72&type=chunk) - The company is also named as a nominal defendant in consolidated derivative lawsuits alleging breaches of fiduciary duties, waste of corporate assets, and other claims against certain officers and directors[73](index=73&type=chunk)[74](index=74&type=chunk) [Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) This section refers readers to the detailed discussion of risk factors in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - For a description of risk factors, the report refers to "Item 1A. Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 31, 2024[139](index=139&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2025, the company did not repurchase any equity securities, with approximately **$53.4 million** remaining available under its **$100 million** share repurchase program Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid | Maximum Value Remaining for Purchase (in thousands) | | :--- | :--- | :--- | :--- | | Jan 1 - Jan 31, 2025 | — | $— | $53,412 | | Feb 1 - Feb 28, 2025 | — | $— | $53,412 | | Mar 1 - Mar 31, 2025 | — | $— | $53,412 | - The **$100 million** share repurchase program was approved on February 29, 2024, and has no expiration date[140](index=140&type=chunk) [Other Information Items (Items 3, 4, 5, 6)](index=29&type=section&id=Other%20Information%20Items%20(Items%203,%204,%205,%206)) The company reported no defaults on senior securities, no Rule 10b5-1 trading arrangement changes by directors or officers, and filed exhibits including an amended credit agreement - Item 3: No defaults upon senior securities were reported[141](index=141&type=chunk) - Item 5: No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement in Q1 2025[143](index=143&type=chunk) - Item 6: Filed exhibits include an Amended and Restated Credit Agreement and a Sixth Amendment to the Note Purchase and Private Shelf Agreement, both dated April 24, 2025[144](index=144&type=chunk)

MGP INGREDIENTS REPORTS FIRST QUARTER 2025 RESULTS Encouraging first quarter results; Reaffirms full year 2025 financial outlook ATCHISON, Kan., May 1, 2025 - MGP Ingredients, Inc. (Nasdaq: MGPI), a leading provider of branded and distilled spirits and food ingredient solutions, today reported results for the first quarter ended March 31, 2025. "We are pleased with first quarter results that keep us on track to meet our full-year guidance. While elevated industry-wide barrel whiskey inventories and a cautio ...

Wall Street expects a year-over-year decline in earnings on lower revenues when MGP (MGPI) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 1. On the other han ...

Core Insights - El Mayor Tequila is produced at Destiladora Gonzalez Lux in Arandas, Mexico, using 100% estate-grown Blue Weber Agave from Jalisco, Mexico [1][3] - The brand has adopted a consistent packaging design across its product line to enhance consumer recognition [1] - El Mayor Tequila has received multiple prestigious awards, including gold medals at the ASCOT and SIP Awards, and recognition as one of the top 10 tequilas in the world at the 2025 International Wines and Spirits Competition [1][3] Product Offerings - El Mayor Tequila Blanco is an unaged clear tequila with a light body and floral hints [5] - El Mayor Tequila Reposado is aged for a minimum of nine months, offering fruit flavors with vanilla and spice [5] - El Mayor Tequila Rosado Reposado is finished in Cabernet Sauvignon casks for nine months, providing a rich, smooth taste with spiced-berry notes [5] - El Mayor Tequila Añejo is aged for 18 to 36 months, delivering a sophisticated flavor profile with caramel and grilled fruits [5] - El Mayor Tequila Extra Añejo is aged for a minimum of three-and-a-half years, featuring complex flavors of wood, caramel, dark chocolate, and hazelnut [5] - El Mayor Tequila Cristalino is aged for at least 12 months and filtered for a bright, crisp profile while retaining Añejo complexity [5] Company Background - Luxco, founded in 1958, is a leading producer and supplier of beverage alcohol products, operating under MGP Ingredients Inc. since 2021 [4] - The company has a diverse portfolio that includes brands from multiple distilleries, including the production of El Mayor Tequila at Destiladora Gonzalez Lux [4]

With fourth-generation Master Distiller Graciela Gonzalez at the helm, EscasaTM Tequila premieres with Blanco, Reposado to followST. LOUIS, April 16, 2025 /PRNewswire/ -- Today, Luxco, Inc. announces the launch of EscasaTM – a new ultra-premium sipping Tequila, now available nationwide. With the portfolio offering both Blanco and Reposado, the latter releasing in summer 2025, Escasa Tequila showcases the beauty of Tequila when crafted with care, highlighting – not masking – the flavors intrinsic to the soil ...

The 11th annual secret offering from Lux Row Distillers is finished in Añejo tequila barrelsST. LOUIS, March 25, 2025 /PRNewswire/ -- Lux Row Distillers Master Distiller and Master Blender John Rempe renews his annual pact with bourbon drinkers by releasing Blood Oath Pact 11 Kentucky Straight Bourbon Whiskey Finished in Añejo Tequila Barrels. This year's secret blend features a union of two well-bred bourbons – a 14-year ryed and a 10-year wheated – blended with an impressive 7-year ryed which was finished ...

Six-year-aged bourbon features bold proof to deliver intense yet balanced flavorST. LOUIS, March 13, 2025 /PRNewswire/ -- Lebanon, Kentucky-based Yellowstone Bourbon announced the release of Small Batch 107, a new permanent addition to the Yellowstone family. The elevated expression pays homage to the brand's history while featuring several firsts for the family lineup. Small Batch is aged six years and the only variety in the Yellowstone portfolio to feature an age statement on packaging. Lebanon, Kent ...

Core Insights - Remus Bourbon has launched the Master Distiller Experimental Series, marking a new annual limited-edition series that emphasizes innovation in bourbon craftsmanship [1][2] - The first release, Master Distiller Experimental Series No. 1, was inspired by a barrel experiment from 2015 and showcases unique flavor profiles [1][3] Product Details - Master Distiller Experimental Series No. 1 has been aged for nine years in specially treated barrels, featuring a 107-proof bourbon with tasting notes of cedar, port wine, fig, oak, toasted marshmallow, chocolate, candied pecans, black walnut, and leather [4] - The suggested retail price for this limited edition bourbon is $79.99, and it will be available in select states including AZ, CA, CT, KS, MA, MD, MO, NY, OH, TX, UT, WA, and WI [5] Company Background - Remus Bourbon is produced by Ross & Squibb Distillery, located in Lawrenceburg, Indiana, known for its high-rye bourbons and rich distilling heritage [6] - The brand is named after the "King of the Bootleggers" and aims to appeal to both seasoned whiskey connoisseurs and newcomers [7] - Luxco, the parent company of Ross & Squibb, is a significant player in the beverage alcohol industry, having merged with MGP Ingredients, Inc. in 2021 [8]

Financial Data and Key Metrics Changes - Consolidated sales for Q4 2024 decreased by 16% to $180.8 million compared to the prior year period, and excluding the impact of the Atchison Distillery, sales decreased by 7% [10][38] - Adjusted EBITDA decreased by 9% to $53.1 million, with lower SG&A expenses partially offsetting reduced gross profits [11][43] - Basic earnings per common share declined to a loss of $1.91 due to a one-time noncash adjustment to goodwill, while adjusted basic earnings per share decreased 4% to $1.57 [11][45] - Full year 2024 capital expenditures were approximately $73 million, expected to decline to about $36 million in 2025 [35][46] Business Line Data and Key Metrics Changes - Distilling Solutions segment reported sales declined by 25%, with a 10% decline in Brown Goods sales partially offset by a 15% increase in warehouse service sales [38] - Branded Spirits segment sales decreased by 12% due to continued declines in value price brands and a 12% decline in premium plus sales [39] - Ingredient Solutions sales increased by 4%, with specialty protein sales posting its first quarterly growth [39][40] Market Data and Key Metrics Changes - Annual whiskey production in the US increased by nearly 1 million barrels since 2020, reaching nearly 4.6 million barrels, but consumption has normalized from post-COVID levels, leading to excess inventory [21][22] - Industry data shows total US whiskey production through October 2024 is down 1%, with a 4% decline in the last six months [25][26] Company Strategy and Development Direction - The company aims to maintain its position as a leading supplier of high-quality differentiated premium American whiskey while navigating challenges in the Brown Goods business [8][9] - The focus is on enhancing branded spirits and ingredient solutions businesses, which are expected to drive consolidated financial performance in 2025 and beyond [10][30] - The company is committed to optimizing its distillery cost structure and strengthening key customer relationships to mitigate the impact of lower production volumes [27][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging operating environment due to elevated industry-wide barrel whiskey inventories and soft whiskey consumption [9][21] - The company expects ongoing challenges in the distilling solutions business to overshadow growth in branded spirits and ingredient solutions in 2025 [30] - Management remains confident in the long-term value of aged whiskey inventory and the potential for recovery in the distilling solutions segment [60][80] Other Important Information - The company recorded a $73.8 million non-cash adjustment to the carrying value of goodwill in the branded spirits segment due to unfavorable macroeconomic factors [44] - The net whiskey put away declined from $51.1 million in 2023 to $32.9 million in 2024, contributing to a 22% increase in full-year cash flow from operations [46] Q&A Session Summary Question: Strategy for aged whiskey going forward - Management confirmed that while aged sales are expected to decline, they remain committed to the aged business and are proactively engaging with customers to understand their needs [56][60] Question: Confidence in distilling solutions returning to growth - Management expressed cautious optimism, noting that industry players are expected to behave more rationally over time, and they are taking steps to control costs and improve efficiency [78][80] Question: Impact of tariffs on international sales - Management indicated that current exposure to European tariffs is minimal, but they are monitoring the situation closely as tariffs are set to resume at higher rates [108] Question: Guidance visibility and contracted sales - Management stated that a large percentage of projections for the year are contracted, and they are proactively renegotiating contracts to align with market needs [89][91] Question: Cash flow projections and capital expenditures - Despite pressure on earnings, management expects strong free cash flow due to reduced capital expenditures and lower net whiskey put away [97][100]

FOURTH QUARTER AND FULL YEAR 2024 RESULTS This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation statements regarding the impact of whiskey consumption and whiskey inventories on brand goods performance for MGP Ingredients, Inc. (the "Company" or "MGP"); the Company's ability to access capital and drive shelf presence; and the Company's 2025 guidance, including its expectations for sales, adjusted EBIT ...