Westrock fee pany(US:WEST)2024-11-07 21:11Financial Performance - Net sales for Q3 2024 were $220.9 million, an increase of $1.2 million or 0.6% compared to Q3 2023[4] - Gross profit for Q3 2024 was $37.1 million, up from $35.1 million in Q3 2023, despite including $0.5 million of non-cash mark-to-market losses[4] - The net loss for Q3 2024 was $14.3 million, compared to a net income of $16.6 million in Q3 2023[5] - Consolidated Adjusted EBITDA for Q3 2024 was $10.3 million, down from $11.6 million in Q3 2023, including $4.0 million of scale-up costs related to the Conway Facility[6] - Total operating expenses increased to $49,827 for the three months ended September 30, 2024, from $40,435 in the prior year, representing a rise of 23.5%[21] - The company reported a net loss of $14,259 for the three months ended September 30, 2024, compared to a net income of $16,621 in the same period last year[21] - Consolidated Adjusted EBITDA for the nine months ended September 30, 2024, was $33,845 thousand, an increase from $31,358 thousand for the same period in 2023[24] Segment Performance - The Beverage Solutions segment generated $164.0 million in net sales with Segment Adjusted EBITDA of $11.8 million for Q3 2024, compared to $176.8 million and $9.9 million, respectively, in Q3 2023[7] - Beverage Solutions segment net sales for the three months ended September 30, 2024, were $164,010, down from $176,818 in the same period of 2023, a decrease of 7.2%[23] - The Sustainable Sourcing & Traceability segment reported net sales of $56.9 million and Segment Adjusted EBITDA of $2.5 million for Q3 2024, up from $42.8 million and $1.7 million in Q3 2023[8] - Sustainable Sourcing & Traceability segment net sales increased to $56,850 for the three months ended September 30, 2024, from $42,794 in the prior year, marking a growth of 32.8%[23] - The company reported an Adjusted EBITDA of $11,752 for the Beverage Solutions segment for the three months ended September 30, 2024, compared to $9,884 in the same period last year, an increase of 18.8%[23] Future Expectations - The company expects to report $50.0 million of Consolidated Adjusted EBITDA for fiscal year 2024, including $10.0 million of scale-up costs associated with the Conway Facility[11] - For fiscal year 2025, the company anticipates Consolidated Adjusted EBITDA between $80.0 million and $100.0 million, driven by volume growth and new customer commitments[12] - The Conway Facility is expected to onboard over a dozen new customers in Q1 2025, projected to generate more annual Consolidated Adjusted EBITDA than the current base business[3] Cash Flow and Expenses - Cash used in operating activities for the nine months ended September 30, 2024, was $16,023, a significant improvement from $75,131 used in the same period of 2023[22] - Net cash provided by financing activities for the nine months ended September 30, 2024, was $151,364, compared to $223,147 in the prior year[22] - The company incurred $30,115 thousand in pre-production costs for the Conway extract and ready-to-drink facility during the nine months ended September 30, 2024[24] - Transaction, restructuring, and integration expenses totaled $9,901 thousand for the nine months ended September 30, 2024, down from $12,682 thousand in the same period of 2023[24] - Interest expense for the three months ended September 30, 2024, was $6,889 thousand, slightly down from $7,803 thousand in the prior year[24] - Depreciation and amortization increased to $7,680 thousand for the three months ended September 30, 2024, compared to $6,364 thousand in the same period last year[24] - Equity-based compensation for the three months ended September 30, 2024, was $3,028 thousand, compared to $2,439 thousand in the same period last year[24] Governance - Ken Parent has been appointed to the Board of Directors, bringing extensive experience from Pilot Flying J[10] Other Financial Metrics - The total liabilities, convertible preferred shares, and shareholders' equity amounted to $1,077,114 as of September 30, 2024, compared to $971,514 at the end of 2023[20] - The company reported a change in the fair value of warrant liabilities of $(5,481) thousand for the three months ended September 30, 2024[24] - Consolidated Adjusted EBITDA for the three months ended June 30, 2024, was revised to $12,434 thousand after excluding scale-up costs[25] - The company emphasizes that EBITDA and Consolidated Adjusted EBITDA are important non-GAAP measures for evaluating operating performance and profitability[26]