BRC (US:BRCC)2025-03-03 21:23Revenue Performance - Net revenue for the year ended December 31, 2024 decreased by $4.1 million, or 1%, to $391.5 million compared to $395.6 million in 2023[295] - Wholesale channel revenue increased by $20.0 million, or 9%, to $245.0 million, driven by growth in packaged coffee and the launch of Black Rifle Energy[297] - DTC channel revenue decreased by $19.5 million, or 14%, to $123.8 million, primarily due to lower customer acquisition and a strategic reallocation of advertising spend[298] - Outpost channel revenue decreased by $4.7 million, or 17%, to $22.7 million, attributed to lower transaction volumes and reduced foot traffic[299] - For the year ended December 31, 2024, BRC Inc. reported net revenue of $391.49 million, a decrease of 1.43% from $395.62 million in 2023[349] - Total net sales for the year ended December 31, 2024, were $391,490, a slight decrease from $395,623 in 2023, but an increase from $301,313 in 2022[382] - Wholesale revenue increased to $245,040 in 2024 from $225,059 in 2023, while DTC revenue decreased to $123,779 from $143,232 in the same period[382] Cost and Expenses - Cost of goods sold decreased by $39.9 million, or 15%, to $230.3 million, resulting in a gross margin increase to 41% from 32% in the previous year[300] - Total operating expenses decreased by $18.3 million, or 10%, to $157.3 million, reflecting cost management efforts[296] - Marketing and advertising expenses increased by $4.8 million, or 16%, to $35.6 million, indicating continued investment in brand awareness[296] - Salaries, wages, and benefits expenses decreased by $8.6 million, or 12%, to $62.4 million in 2024, due to headcount reductions from the 2023 Restructuring Plan[302] - General and administrative expenses decreased by $20.8 million, or 29%, to $50.8 million in 2024, as a result of the 2023 Restructuring Plan[303] - Other operating expenses increased by $6.3 million, or 285%, to $8.5 million in 2024, related to impairment losses recognized in the fourth quarter[304] Operating Income and Loss - Operating income improved to $3.8 million in 2024 from a loss of $50.2 million in 2023[295] - BRC Inc. incurred a net loss of $7.65 million in 2024, which is a reduction from a net loss of $56.72 million in 2023[349] - The net loss for the year ended December 31, 2024, was $7,649 thousand, a significant improvement compared to a net loss of $56,716 thousand in 2023 and $338,044 thousand in 2022[356] Cash Flow and Investments - Net cash provided by operating activities was $11.3 million in 2024, a $36.3 million improvement from net cash used of $25.0 million in 2023[315] - Net cash used in investing activities decreased by $13.8 million to $7.7 million in 2024, primarily due to reduced capital expenditures[316] - Net cash used in financing activities was $10.7 million in 2024, a decrease of $32.1 million from net cash provided of $21.4 million in 2023[317] Assets and Liabilities - The total current assets decreased to $95.47 million in 2024 from $107.74 million in 2023, primarily due to a decline in cash and cash equivalents[348] - Total liabilities decreased to $177.89 million in 2024 from $189.27 million in 2023, reflecting a reduction in both current and non-current liabilities[348] - The company had $40.0 million outstanding on its Term Loan Facility and $28.9 million on its ABL Facility as of December 31, 2024[335] - The company’s accumulated deficit increased to $123.43 million in 2024 from $120.48 million in 2023, indicating ongoing financial challenges[348] Inventory and Receivables - Inventories decreased from $56,465 million as of December 31, 2023 to $42,647 million as of December 31, 2024, representing a decline of about 24.5%[391] - The allowance for doubtful accounts receivable was $593 million and $496 million as of December 31, 2024 and 2023, respectively, indicating an increase of approximately 19.5% year-over-year[390] - Four customers accounted for 63% of total outstanding receivables as of December 31, 2024, while three customers accounted for 55% as of December 31, 2023, indicating a concentration of credit risk[408] Debt and Financing - The company has a senior secured asset-based revolving credit facility (ABL Facility) with an aggregate principal amount of up to $75,000, available as of December 31, 2024[440] - The Term Loan Facility provided $40,000 in senior secured term loans, with an option to add up to $20,000 under certain conditions[441] - The total principal amount of long-term debt decreased from $76,440 in 2023 to $70,299 in 2024, reflecting a reduction of 8.1%[439] Impairment and Losses - The Company recognized a total impairment loss of $6,100 thousand on certain assets related to BRCC Outposts during the fourth quarter of 2024[428] - The Company recorded a loss on extinguishment of debt of approximately $1,127 due to early retirement of debt[444] Equity and Stock - The Company redeemed 11,396,726 public warrants and 6,266,667 private placement warrants, representing approximately 99.0% and 100.0% of the respective warrants, resulting in the issuance of 6,376,346 shares of Class A Common Stock[459] - The Series A preferred units were redeemed for a total of $134,698,000, which included $8,265,000 of applicable premium placed in an escrow account[465]