Third Quarter 2023 Highlights (in USD):
- Q3 2023 Sales Revenue grew 80.9% to $14.78 million compared to $8.17 million in Q3 2022.
- Production volume for Q3 2023 grew 96.4% to 34.85 million cans compared to 17.75 million cans in Q3 2022.
- Plant Utilization in Q3 2023 grew to 40.7% from 24.2% in Q3 2022.
- Gross Profit in Q3 2023 was 8.5% compared to a Gross Loss of 6.1% in Q3 2022.
- Confirmed Customer Orders grew 37.5% in Q3 2023 to $14.58 million from $10.60 million Q3 2022.
VANCOUVER, BC / ACCESSWIRE / November 29, 2023 / Wildpack Beverage Inc. (TSXV:CANS)(OTC PINK:WLDPF) ("Wildpack Beverage" or the "Company") a leading US middle market co-packer of canned goods announces unaudited financial results for the third quarter ("Q3") ending September 30, 2023. All currencies referenced herein are US Dollars, unless otherwise indicated.
"In Q3, our year-over-year results are promising. Despite ongoing production challenges in Baltimore due to the line upgrade, we remain optimistic about the overall positive trajectory," commented Mitch Barnard, CEO of Wildpack Beverage. "This period of transformation is a testament to our commitment to constant improvement, and we are confident that overcoming these hurdles will lead to even greater success in the future."
Q3 2023 Condensed Consolidated Interim Statements of Loss & Comprehensive Loss (Unaudited)
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||
| Note | 2023 | 2022 (Restated, note 21) | 2023 | 2022 (Restated, note 21) | ||||||||||||||||
Sales | 13 | $ | 14,776 | $ | 8,171 | $ | 42,570 | $ | 25,611 | |||||||||||
Cost of sales | ||||||||||||||||||||
Production costs | 14 | 12,894 | 7,662 | 36,397 | 23,358 | |||||||||||||||
Depreciation and amortization | 6, 7, 8 | 633 | 1,004 | 1,796 | 2,313 | |||||||||||||||
Cost of sales | 13,527 | 8,666 | 38,193 | 25,671 | ||||||||||||||||
Gross profit | 1,249 | (495 | ) | 4,377 | (60 | ) | ||||||||||||||
Operating expenses | ||||||||||||||||||||
Selling | 857 | 673 | 2,752 | 1,979 | ||||||||||||||||
Salaries, wages, and benefits | 1,136 | 1,587 | 4,561 | 5,254 | ||||||||||||||||
Depreciation and amortization | 6, 7, 8 | 1,007 | 968 | 2,840 | 2,858 | |||||||||||||||
Office and administrative | 613 | 552 | 1,796 | 1,472 | ||||||||||||||||
Share-based compensation | 12 | 494 | 116 | 1,026 | 297 | |||||||||||||||
Professional fees | 52 | 294 | 939 | 1,216 | ||||||||||||||||
Bad debt | 350 | 529 | 730 | 655 | ||||||||||||||||
Other operating | 136 | 199 | 428 | 11 | ||||||||||||||||
Operating expenses | 4,645 | 4,918 | 15,072 | 13,742 | ||||||||||||||||
Other expenses | ||||||||||||||||||||
Bank and finance charges | 10 | 1 | 4 | 157 | 25 | |||||||||||||||
Interest on long-term debt | 10 | 2,627 | 1,233 | 5,754 | 3,753 | |||||||||||||||
Interest on lease obligations | 9 | 156 | 177 | 415 | 570 | |||||||||||||||
Loss on derivative asset | 11 | - | (2 | ) | - | 151 | ||||||||||||||
Foreign exchange loss | 2 | - | 11 | - | ||||||||||||||||
Other expenses | 2,786 | 1,412 | 6,337 | 4,499 | ||||||||||||||||
Net loss | $ | (6,182 | ) | $ | (6,825 | ) | $ | (17,032 | ) | $ | (18,301 | ) | ||||||||
Other comprehensive income (loss) | ||||||||||||||||||||
Items that may be reclassified to profit or loss: | ||||||||||||||||||||
Foreign currency on translation (loss) gain | 588 | 1,613 | (53 | ) | 2,434 | |||||||||||||||
TOTAL COMPREHENSIVE LOSS | $ | (5,594 | ) | $ | (5,212 | ) | $ | (17,085 | ) | $ | (15,867 | ) | ||||||||
Weighted average number of common shares outstanding | 112,508,461 | 101,241,490 | 112,042,214 | 101,442,205 | ||||||||||||||||
Loss per share - basic | $ | (0.05 | ) | $ | (0.07 | ) | $ | (0.15 | ) | $ | (0.18 | ) | ||||||||
Loss per share - diluted | $ | (0.05 | ) | $ | (0.07 | ) | $ | (0.15 | ) | $ | (0.18 | ) | ||||||||
Q3 2023 Condensed Consolidated Interim Statement of Cashflows (Unaudited)
| Nine months ended | Nine months ended | |||||||||||
| September 30, | September 30, | |||||||||||
| Note | 2023 | 2022 (Restated, note 21) | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||
Net loss | $ | (17,032 | ) | $ | (18,301 | ) | ||||||
Adjustments for items not affecting cash: | ||||||||||||
Depreciation and amortization | 4,534 | 4,730 | ||||||||||
Interest expense | 6,161 | 2,397 | ||||||||||
Share-based compensation | 12 | 1,026 | 297 | |||||||||
Unrealized loss on derivative asset | 11 | - | 301 | |||||||||
Changes in non-cash working capital: | ||||||||||||
Accounts receivable | (6,685 | ) | (68 | ) | ||||||||
Sales taxes recoverable | 67 | (107 | ) | |||||||||
Inventories | (863 | ) | 3,618 | |||||||||
Prepaid expenses and deposits | (1,062 | ) | 109 | |||||||||
Other deposits | (30 | ) | 175 | |||||||||
Accounts payable and accrued liabilities | (3,396 | ) | 2,924 | |||||||||
Deferred revenue | 15 | 1,050 | ||||||||||
Cash used in operating activities | (17,265 | ) | (2,875 | ) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||
Line of credit | 10 | - | (1,016 | ) | ||||||||
Repayments of long-term debt | 10 | (7,948 | ) | (1,305 | ) | |||||||
Net proceeds from convertible debentures | 10, 11 | 24,920 | 4,727 | |||||||||
Proceeds from promissory notes | 10 | - | 996 | |||||||||
Payments of lease obligations | 9 | (2,094 | ) | (2,402 | ) | |||||||
Proceeds from long-term debt | 10 | 6,745 | 2,348 | |||||||||
Interest paid | (2,222 | ) | (2,088 | ) | ||||||||
Cash generated by financing activities | 19,401 | 1,260 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
Purchase of equipment | (2,255 | ) | (136 | ) | ||||||||
Proceeds from sale of equipment | 267 | - | ||||||||||
Cash used in investing activities | (1,988 | ) | (136 | ) | ||||||||
Net increase (decrease) in cash | 148 | (1,751 | ) | |||||||||
Cash, beginning of period | 943 | 1,450 | ||||||||||
Effect of foreign exchange rate changes on cash | (16 | ) | 814 | |||||||||
CASH, END OF PERIOD | $ | 1,075 | $ | 513 | ||||||||
Q3 2023 Condensed Consolidated Interim Statement of Financial Position
| September 30, | December 31, | |||||||||||
| Note | 2023 | 2022 | ||||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash | $ | 1,075 | $ | 943 | ||||||||
Cash held in trust | 658 | 658 | ||||||||||
Accounts receivable | 17 | 11,823 | 5,138 | |||||||||
Sales taxes recoverable | 237 | 302 | ||||||||||
Inventories | 5 | 5,715 | 4,852 | |||||||||
Prepaid expenses and deposits | 1,202 | 140 | ||||||||||
| $ | 20,710 | $ | 12,033 | |||||||||
Property, plant, and equipment | 6 | 9,914 | 6,375 | |||||||||
Right of use assets | 8 | 8,047 | 9,503 | |||||||||
Derivative asset | 11 | 12 | 12 | |||||||||
Intangible assets | 7 | 18,875 | 20,498 | |||||||||
Goodwill | 7 | 4,965 | 4,965 | |||||||||
Other deposits | 347 | 317 | ||||||||||
TOTAL ASSETS | $ | 62,870 | $ | 53,703 | ||||||||
LIABILITIES | ||||||||||||
Current liabilities | ||||||||||||
Accounts payable and accrued liabilities | 15,168 | 16,002 | ||||||||||
Deferred revenue | 2,015 | 2,000 | ||||||||||
Current portion of lease obligations | 9 | 1,929 | 2,107 | |||||||||
Current portion of long-term debt | 10 | 4,916 | 7,422 | |||||||||
| $ | 24,028 | $ | 27,531 | |||||||||
Lease obligations | 9 | 6,974 | 8,168 | |||||||||
Long term debt | 10 | 46,964 | 26,228 | |||||||||
TOTAL LIABILITIES | $ | 77,966 | $ | 61,927 | ||||||||
SHAREHOLDERS' EQUITY | ||||||||||||
Share capital | 12 | 38,024 | 37,853 | |||||||||
Equity reserve | 17,809 | 8,765 | ||||||||||
Contributed surplus | 5,074 | 4,076 | ||||||||||
Accumulated deficit | (77,054 | ) | (60,022 | ) | ||||||||
Accumulated other comprehensive loss | 1,051 | 1,104 | ||||||||||
TOTAL SHAREHOLDERS' EQUITY (DEFICIENCY) | $ | (15,096 | ) | $ | (8,224 | ) | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY) | $ | 62,870 | $ | 53,703 | ||||||||
| 11920 | ||||||||||||
The accompanying notes are an integral part of these condensed consolidated interim financial statements (unaudited), please refer to the full condensed consolidated interim financial statements (unaudited) for the three and nine months ended September 30, 2023 and September 30, 2022, and the Management's Discussion and Analysis of the Financial Condition and Results of Operations for the three and nine months ended September 30, 2023, as filed on SEDAR on November 29, 2023.
Per: "Mitch Barnard"
Mitch Barnard
Chief Executive Officer and Board Director
For further information, please contact us at:
or
Elijah Clare
Vice President, Investor Relations
[email protected]
Advisors
Fasken Martineau DuMoulin LLP is the legal advisor to Wildpack Beverage Inc.
Visit our investor website at:
https://investor.wildpackbev.com
About Wildpack Beverage
Wildpack Beverage provides beverage manufacturing and packaging to the middle market by providing sustainable aluminum can filling, decorating, packaging, brokering, sleeve/label printing services, and logistics to brands throughout the United States. Wildpack Beverage currently operates indirectly through its wholly owned subsidiaries and out of five facilities in Baltimore, Maryland; Grand Rapids, Michigan; Atlanta, Georgia; Sacramento, California; and Las Vegas, Nevada with a focus on digital innovation and green ready-to-drink packaging. Wildpack Beverage commenced trading on the TSX Venture Exchange under the symbol "CANS" on May 19, 2021.
Cautionary Statement on Forward Looking Information
This news release may contain "forward-looking statements" within the meaning of applicable Canadian securities laws, including, but not limited to, statements with respect to the timing, review, completion and filing of the Required Filings, Wildpack Beverage's plans, investments, anticipated revenue from manufacturing agreements, plans to build additional facilities, financial performance and operating performance, anticipated growth in co-packing business, the estimation of revenue, the timing and targets of M&A activity, costs, future capital expenditures, and the success of scaling up production. Forward-looking statements are based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive risks including but not limited to: the risk of the Company not filing the Required Filings on time, risks related to the successful integration of acquisitions; risks related to operations; risks related to general economic conditions and credit availability, ability to obtain sufficient and suitable financing, actual results of current production and decorating, fluctuations in prices of aluminum; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the co-packaging industry; delays in the completion of capex activities, changes in national and local government regulation of manufacturing operations and labour laws particularly in light of the COVID pandemic, tax rules and regulations, and political and economic developments where Wildpack Beverage operates. These statements generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe", or "continue", or the negative thereof or similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, or achievements of Wildpack Beverage to be materially different from any future results, performance, or achievements expressed, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. Forward-looking statements expressed or implied by Wildpack Beverage are subject to a number of risks, uncertainties, and conditions, many of which are outside of Wildpack Beverage's control, and undue reliance should not be placed on such statements. Although Wildpack Beverage has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Forward-looking statements are qualified in their entirety by the inherent risks and uncertainties related to Wildpack's business, including that Wildpack Beverage's assumptions in making forward-looking statements may prove to be incorrect; delays in filing of financial information; adverse market conditions; risks inherent in the beverage manufacturing and packaging sector in general; that future results may vary from historical results; and competition in the markets where Wildpack Beverage operates. Except as required by securities law, Wildpack Beverage does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Wildpack Beverage Inc.