solo stove(US:DTC)2023-03-08 16:00Financial Performance - Net sales for the year ended December 31, 2022, reached $517.6 million, a 28.2% increase from $403.7 million in 2021[348]. - Gross profit for 2022 was $318.2 million, compared to $258.9 million in 2021, reflecting a gross margin of 61.4%[348]. - The company reported a net loss of $7.6 million for 2022, a significant decline from a net income of $56.5 million in 2021[348]. - Operating expenses increased to $317.8 million in 2022, up from $190.0 million in 2021, primarily due to higher selling, general, and administrative expenses[348]. - Cash flows from operating activities generated $32.4 million in 2022, contrasting with a cash outflow of $10.2 million in 2021[350]. - The company reported a net loss of $20.5 million for the year ended December 31, 2022, compared to a pro-forma net loss of $20.3 million for 2021[442]. - The total income (loss) before income taxes for 2022 was $(6,619) thousand, compared to $58,520 thousand in 2021[489]. - The basic and diluted net income (loss) per share of Class A common stock for 2022 was $(0.08), down from $0.17 in 2021[515]. Assets and Liabilities - As of December 31, 2022, the company reported total assets of $862.3 million, an increase from $837.7 million in 2021, reflecting a growth of approximately 2.3%[345]. - The company's inventory increased to $133.0 million in 2022 from $102.3 million in 2021, representing a rise of about 30.8%[345]. - Long-term debt decreased to $108.4 million in 2022 from $125.0 million in 2021, a reduction of approximately 13.3%[345]. - The company had total current liabilities of $67.0 million in 2022, compared to $46.6 million in 2021, marking an increase of approximately 43.7%[345]. - Accounts receivable increased to $26.2 million in 2022 from $21.5 million in 2021, reflecting a growth of about 21.9%[345]. - The cash and cash equivalents balance at the end of 2022 was $23.3 million, down from $25.1 million at the end of 2021[351]. - The total fair value of long-term debt, net, was $108.383 million as of December 31, 2022, down from $128.148 million in 2021[504]. Equity and Capital - The company reported a retained earnings (accumulated deficit) of $5.7 million in 2022, down from $10.7 million in 2021, indicating an improvement in financial health[345]. - The company has authorized 475 million shares of Class A common stock and 50 million shares of Class B common stock[506][507]. - Equity-based compensation expense for 2022 was $18.598 million, significantly up from $7.329 million in 2021[470]. - Unrecognized equity-based compensation as of December 31, 2022, totals $35.405 million[470]. Taxation - The total current income tax expense for 2022 was $11,502 thousand, significantly higher than $5,164 thousand in 2021[490]. - The company's effective income tax rate for 2022 was (15.11)%, a decrease from 3.44% in 2021[490]. - As of December 31, 2022, the company recorded valuation allowances of $26.9 million for deferred tax assets, a net increase of $0.4 million from $26.5 million in 2021[495]. Acquisitions - The acquisition of Oru Kayak, Inc. was completed for a total cash consideration of $25.4 million, with net sales of Oru contributing $28.2 million to consolidated revenues in 2022[431][433]. - The acquisition of International Surf Ventures, LLC was finalized for total consideration of $41.3 million, with net sales of ISLE amounting to $17.8 million in 2022[434][437]. - Chubbies, Inc. was acquired for a total consideration of $100.4 million in cash and $29.1 million in Class B units, aimed at expanding market share in casual and active wear[438]. Manufacturing and Operations - The majority of the camp stoves and fire pits are currently made in China by one manufacturer, with additional manufacturing capacity between two separate manufacturers in China[379]. - The Company organizes its operations as a single reportable segment focused on outdoor consumer products[380]. - The Company primarily engages in direct-to-consumer transactions and business-to-business transactions, with performance obligations satisfied at the point of shipment[400][401]. Research and Development - Research and development expenses for the Successor years ended December 31, 2022, and December 31, 2021, were $1.1 million and $0.3 million, respectively, indicating a significant increase of 266.67%[411]. Goodwill and Impairment - The company recorded a goodwill impairment charge of $27.9 million in 2022, reducing the carrying value of goodwill to $382.7 million[451]. - Goodwill recognized from the acquisition of Oru Kayak was $18.8 million, reflecting expected future revenue growth and synergies[432]. - Goodwill recognized from the acquisition of ISLE was $29.6 million, also reflecting anticipated future revenue growth and synergies[435]. - The total identifiable net assets acquired from Chubbies amounted to $56.9 million, with goodwill recorded at $73.1 million, resulting in a total acquisition value of $130.1 million[440].