Barfresh(US:BRFH)2021-05-17 22:34Financial Data and Key Metrics Changes - Revenue for Q1 2021 increased by 38% to $1 million, compared to $733,000 in Q1 2020 and $835,000 in Q1 2019 [9] - Gross margin for Q1 2021 was 34%, down from 54% in Q1 2020, attributed to a higher sales percentage of the lower margin Twist & Go product [10] - Net loss improved to $600,000 in Q1 2021 from a loss of $700,000 in Q1 2020 [11] - Adjusted EBITDA losses decreased to $400,000 in Q1 2021 from $700,000 in Q1 2020 [13] - Net cash used in operating activities improved to $394,000 in Q1 2021 from $973,000 in the prior fiscal period [12] Business Line Data and Key Metrics Changes - The increase in revenue was driven by higher orders for the Twist & Go product in the school channel and a gradual return of bulk and single-serve products [9] - The company expects gross profit margins to increase to approximately 40% for the remainder of 2021 due to a higher concentration of sales from bulk and single-serve products [10] Market Data and Key Metrics Changes - The company achieved over $1 million in revenue for Q2 2021, representing a 100% improvement compared to the full Q2 2020 [14] - Sales in the education channel are expected to more than double as schools reopen, with significant traction anticipated for the Twist & Go product [15][16] Company Strategy and Development Direction - The company is focused on expanding its presence in the education channel, which is seen as a highly attractive market with over 98,000 schools in the U.S. [16] - The Twist & Go product is positioned to meet the needs of schools for low-touch, healthy, ready-to-go items, with plans to extend into other sales channels [19] - The company anticipates a significant ramp-up in sales in Q3 2021, particularly in the education channel [31] Management's Comments on Operating Environment and Future Outlook - Management noted that supply chain issues and ingredient shortages are challenges currently faced, but they have managed to achieve positive results despite these obstacles [28] - The company expects continued revenue and margin improvement throughout 2021 as schools and other sales channels begin to reopen [21] Other Important Information - The company received a $568,000 PPP loan during Q1 2021, contributing to an improved cash position [12] - The introduction of WHIRLZ 100% Juice Concentrates is expected to enhance the product offering for larger schools [18] Q&A Session Summary Question: Can you provide more information on new products in the pipeline and approvals for Twist & Go in schools? - The company is focusing on the Twist & Go products, with flavor extensions planned and significant approvals from school districts in preparation for the new school year [23][24] Question: Any updates on Twist & Go going to retail locations? - The company is working on retail opportunities and has received positive feedback from customers, but no exact timeline is available yet [25][26] Question: Are there any supply chain or shipping issues? - The company is experiencing supply chain challenges, including ingredient shortages and elevated freight prices, but has managed to correct these issues [28] Question: What is the expected return of orders from amusement parks and restaurants? - The return is variable by customer category and location, with current orders at 15% to 35% of pre-COVID levels, but showing signs of improvement [29][30] Question: What is the expected product mix in the education channel by the end of the year? - The Twist & Go product is expected to dominate the mix due to significant approvals and bids from school districts [31]