Traeger(US:COOK)2022-08-14 16:00Financial Performance - Total revenue for the three months ended June 30, 2022, was $200.27 million, a decrease of 5.5% from $213.02 million in the same period of 2021[22]. - Gross profit for the six months ended June 30, 2022, was $157.07 million, down 14.6% from $183.94 million in the prior year[22]. - Net loss for the three months ended June 30, 2022, was $132.28 million, compared to a net loss of $4.91 million for the same period in 2021[22]. - Net loss for the six months ended June 30, 2022, was $140.7 million compared to a net income of $34.0 million for the same period in 2021[30]. - Revenue from grills for the six months ended June 30, 2022, was $268.11 million, down 20% from $334.76 million in the same period of 2021[58]. - Revenue decreased by 6.0% to $200.3 million for the three months ended June 30, 2022, compared to $213.0 million for the same period in 2021[146]. - Revenue from grills decreased by $38.4 million, or 24.6%, to $117.7 million for the three months ended June 30, 2022, primarily due to lower unit volume[170]. - Revenue from consumables increased by $0.9 million, or 2.2%, to $42.1 million for the three months ended June 30, 2022, driven by increased average selling prices[171]. - Revenue from accessories increased by $24.8 million, or 157.2%, to $40.5 million for the three months ended June 30, 2022, primarily due to sales of MEATER smart thermometers[172]. Assets and Liabilities - Total current assets increased to $308.87 million as of June 30, 2022, from $269.74 million at the end of 2021, representing a growth of 14.5%[19]. - Total liabilities rose to $601.66 million as of June 30, 2022, compared to $571.50 million at the end of 2021, an increase of 5.3%[19]. - The company’s accumulated deficit increased to $(325.53) million as of June 30, 2022, compared to $(184.82) million at the end of 2021[19]. - Cash and cash equivalents decreased to $13.61 million as of June 30, 2022, down from $16.74 million at the end of 2021[19]. - Accounts receivable as of June 30, 2022, totaled $111.76 million, an increase of 20.2% from $92.93 million at December 31, 2021[70]. - Total inventories as of June 30, 2022, were $163.80 million, up from $145.04 million at December 31, 2021, reflecting an increase of 12.9%[71]. Expenses - Operating expenses for the three months ended June 30, 2022, totaled $193.33 million, significantly higher than $80.37 million in the same period of 2021[22]. - General and administrative expenses increased by $33.4 million, or 87.1%, to $71.8 million for the six months ended June 30, 2022, representing 16.9% of revenue[191]. - Sales and marketing expenses are expected to increase as the company expands outreach to potential new customers[157]. - Research and development expenses were $6.7 million for the six months ended June 30, 2022, up from $5.8 million for the same period in 2021[159]. - The total expenses recorded for customer service and support through a third party amounted to $3.6 million for the six months ended June 30, 2022[134]. Goodwill and Impairments - The company reported a goodwill impairment of $111.49 million for the three months ended June 30, 2022[22]. - The company recorded a non-cash goodwill impairment charge of $111.5 million for the three and six months ended June 30, 2022, due to the carrying value exceeding fair value[54]. - The company recorded a non-cash goodwill impairment of $111.5 million for the six months ended June 30, 2022, representing 26.3% of revenue, compared to no impairment for the same period in 2021[195]. Financing and Capital Structure - The Company refinanced its credit facilities, entering into a First Lien Credit Agreement providing for a $560.0 million senior secured term loan facility and a $125.0 million revolving credit facility[95]. - As of June 30, 2022, the total principal amount outstanding on the First Lien Term Loan Facility was $391.7 million, including a $12.5 million balance under the delayed draw term loan[96]. - The Company had drawn down $83.8 million under the Receivables Financing Agreement as of June 30, 2022, with a borrowing capacity increased to $100.0 million[103]. - The company may seek additional equity or debt financing to support growth or acquisitions, which could be dilutive to existing stockholders[198]. Strategic Initiatives - The company continues to expand its distribution in Canada and Europe, focusing on wood pellet fueled barbecue grills and related products[35]. - The company acquired Apption Labs for approximately $78.3 million, which is expected to enhance its product portfolio and create new growth channels[61]. - The identifiable intangible assets acquired from Apption Labs were valued at $53.1 million, with technology valued at $32.3 million and trademarks at $17.7 million[69]. - The contingent consideration related to the Apption Labs acquisition includes a potential payment of up to $27.4 million based on revenue thresholds for fiscal year 2022[62]. Market Conditions and Outlook - Inflationary pressures and supply chain constraints have increased product component and freight costs, impacting revenue costs[151]. - The company is well positioned to attract new customers and capitalize on industry trends despite uncertainties from the COVID-19 pandemic[149]. - Seasonal fluctuations in revenue are expected, with higher sales typically occurring in the first and second quarters[153]. - The company’s financial projections reflect management's best estimates of economic and market conditions, including revenue growth and margins[75].