Wildpack Beverage Announces Q3 2023 Financial Results
In This Article:
Third Quarter 2023 Highlights (in USD):
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Q3 2023 Sales Revenue grew 80.9% to $14.78 million compared to $8.17 million in Q3 2022.
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Production volume for Q3 2023 grew 96.4% to 34.85 million cans compared to 17.75 million cans in Q3 2022.
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Plant Utilization in Q3 2023 grew to 40.7% from 24.2% in Q3 2022.
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Gross Profit in Q3 2023 was 8.5% compared to a Gross Loss of 6.1% in Q3 2022.
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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.