Westrock fee pany(WEST) - 2024 Q4 - Annual Results

Financial Performance - Net sales for the full year 2024 were $850.7 million, a decrease of 1.6% compared to the previous year[6]. - Gross profit for the full year 2024 was $153.8 million, an increase of 10.0%[6]. - The net loss for the full year 2024 was $80.3 million, compared to a net loss of $34.6 million in fiscal 2023[6]. - Net sales for the year ended December 31, 2024, were $850,726,000, a decrease of 1.0% compared to $864,714,000 in 2023[23]. - Gross profit for the year ended December 31, 2024, increased to $153,774,000, up 9.9% from $139,858,000 in 2023[23]. - The company reported a net loss of $80,298,000 for the year ended December 31, 2024, compared to a net loss of $34,567,000 in 2023, indicating a significant increase in losses[23]. - The Company reported a net loss of $24,607,000 for the three months ended December 31, 2024, compared to a net loss of $20,051,000 for the same period in 2023, indicating an increase in losses of approximately 12.7%[32]. Segment Performance - Segment Adjusted EBITDA for Beverage Solutions was $53.6 million, an increase of 28.9%[6]. - Segment Adjusted EBITDA for Sustainable Sourcing & Traceability (SS&T) was $6.4 million, an increase of 84.1%[6]. - Beverage Solutions segment reported net sales of $659,383,000 for the year ended December 31, 2024, down from $722,865,000 in 2023, a decrease of 8.8%[27]. - Segment Adjusted EBITDA for Beverage Solutions increased to $53,639,000 in 2024, up from $41,624,000 in 2023, reflecting a growth of 28.9%[27]. Cash Flow and Expenses - Cash and cash equivalents decreased to $26,151,000 as of December 31, 2024, down from $37,196,000 in 2023, a decline of 29.7%[21]. - The company incurred total operating expenses of $202,898,000 for the year ended December 31, 2024, compared to $160,287,000 in 2023, an increase of 26.5%[23]. - Cash flows from operating activities resulted in a net cash used of $13,243,000 for the year ended December 31, 2024, a significant improvement from $64,064,000 used in 2023[25]. - Interest expense for the three months ended December 31, 2024, was $11,935,000, compared to $7,941,000 for the same period in 2023, representing an increase of approximately 50.4%[32]. - The Company incurred transaction, restructuring, and integration expenses of $3,896,000 for the three months ended December 31, 2024, compared to $1,875,000 in the same period of 2023, showing a significant increase of about 107%[32]. - Depreciation and amortization expenses increased to $11,549,000 for the three months ended December 31, 2024, from $8,166,000 in 2023, marking an increase of approximately 41.5%[32]. - The Company reported impairment charges of $3,690,000 for the three months ended December 31, 2024, with no such charges reported in the same period of 2023[32]. Future Outlook - The company expects Consolidated Adjusted EBITDA for 1H 2025 to be between $17.5 million and $24.0 million[12]. - The company anticipates a significant growth in volume from new retail coffee customers and existing single-serve customers starting in Q3 2025[11]. - The company plans to launch RTD glass bottle products in Q3 2025, with volume scale-up continuing through Q2 2026[11]. Debt and Compliance - The secured net leverage ratio is expected to be 5.70x by June 30, 2025, and decrease to 3.00x by December 31, 2026[14]. - The secured net leverage ratio for the Beverage Solutions segment was reported at 4.71x, indicating a high level of debt relative to earnings[29]. - The secured net leverage ratio is calculated as secured net debt divided by Adjusted EBITDA, which is crucial for compliance with the Credit Agreement[30]. - As of the date of the press release, the Company is in compliance with its financial covenants under the Credit Agreement[31]. Non-GAAP Measures - The Company emphasizes that EBITDA and Consolidated Adjusted EBITDA are important non-GAAP measures for evaluating operating performance and should be considered alongside GAAP measures[33]. - The change in fair value of warrant liabilities resulted in a loss of $7,015,000 for the year ended December 31, 2024, compared to a loss of $10,207,000 in 2023, indicating an improvement of approximately 31.5%[32].