FY 2021 preliminary operating results exceed
guidance and drive outperformance ahead of planned business
combination with Ackrell SPAC Partners I Co.
Recognized by NPD for dollar share growth in
key categories
Blackstone Products (“Blackstone” or the “Company”), an
innovative and design-driven company that is redefining the outdoor
cooking experience with griddle cooking appliances and accessories,
announced today certain preliminary financial results for its full
fiscal year ended December 31, 2021. Blackstone also reiterated its
guidance for the fiscal year ending December 31, 2022.
“Blackstone continues to be successful and gain momentum even in
the face of supply chain disruptions that have impacted numerous
industries and many of our competitors,” said Founder and Chief
Executive Officer of Blackstone, Roger Dahle. “Consumers continue
to demonstrate their enthusiasm and love for our innovative griddle
products and outdoor cooking accessories, which is exemplified by
strong revenue and EBITDA growth. We are pleased to report that
2021 was a great year for Blackstone, as we exceeded our previously
announced guidance.”
Fourth Quarter 2021 Financial
Highlights (Preliminary and Unaudited)
- Net Revenue increased 108% to approximately $143
million, compared to $69 million in the fourth quarter of
2020.
- Gross Profit increased 192% to approximately $34
million, compared to $12 million in the fourth quarter of
2020.
- Adjusted EBITDA increased 1,195% to approximately $29
million, compared to $2 million in the fourth quarter of 2020.
Full Year 2021 Financial Highlights
(Preliminary and Unaudited)
- Net Revenue increased 65% to approximately $484 million,
compared to $293 million in 2020.
- Gross Profit increased 74% to approximately $98 million,
compared to $56 million in 2020.
- Adjusted EBITDA increased 120% to approximately $70
million, compared to $32 million in 2020.
Recent Business
Highlights
- Awarded two category wins in The NPD Group’s first U.S. Outdoor
Grill and Smoker Retail Performance Awards, recognizing
Blackstone’s superior retail performance.
- Opened new automated second U.S. warehouse in Logan, UT.
- On December 23, 2021, announced plans to become a
publicly-traded company through an estimated $900 million business
combination with Ackrell SPAC Partners I Co.
2022 Guidance
The Company is reaffirming its 2022 guidance as previously
presented in its Investor Presentation available at
https://blackstoneproducts.com/pages/investor-relations.
Full Year 2022 Guidance
- Net Revenue of $608 million, representing estimated 26%
growth compared to 2021.
- Gross Profit of $132 million, representing estimated 35%
growth compared to 2021.
- Adjusted EBITDA of $81 million, representing estimated
15% growth compared to 2021.
Blackstone Receives Two NPD
Awards
Blackstone was the beneficiary of two awards in the inaugural
U.S. Outdoor Grill and Smoker Retail Performance Awards announced
by The NPD Group, one of the largest point-of-sale data collectors.
The awards acknowledge the fastest-growing brands in ten U.S.
retail outdoor segments, based on 2021 in-store and e-commerce
sales revenue reported in Retail Tracking service data from NPD.
With significant increases in volume and share, Blackstone received
awards for both the Largest Dollar Share Increase in Gas
Griddles and the Largest Dollar Share Increase in Portable
Grills by the NPD.
Business Combination
On December 23, 2021, Blackstone announced it entered into a
definitive business combination agreement with Ackrell SPAC
Partners I Co. (“Ackrell”) (Nasdaq: ACKIU), a special purpose
acquisition company. Upon the closing of the business combination,
which is expected in the second quarter of 2022, the combined
company will be named Blackstone Products, Inc. Blackstone intends
to list the common shares of the combined company on the Nasdaq
under the new ticker symbol, “BLKS.”
About Blackstone
Products
Blackstone Products, headquartered in Logan, UT, is
fundamentally redefining how people cook outdoors. The company
specializes in outdoor griddles which allow users to cook a wider
variety of foods faster and more often. Blackstone’s robust product
line features innovative and easy-to-use griddles, accessories, and
consumables that enhance outdoor cooking and make it more enjoyable
and accessible to all for every meal. Blackstone believes in
helping people create an experience with food that brings family
and friends together.
About Ackrell SPAC Partners I
Co.
Ackrell is a blank check company formed for the purpose of
effecting a merger, capital stock exchange, asset acquisition,
stock purchase, reorganization or similar business combination with
one or more businesses. While Ackrell may pursue an acquisition in
any business industry or sector, it intends to concentrate its
efforts on identifying businesses in the branded fast-moving
consumer goods industry.
Financial Information; Non-GAAP
Financial Measures
This press release includes financial information for the three
months and year ended December 31, 2021 and December 31, 2020,
respectively. The financial information for the three months and
year ended December 31, 2021 and the three months ended December
31, 2020 has not been audited or reviewed by the Company’s
auditors. The financial information for the three months and twelve
months ended December 31, 2021 contains preliminary estimates. The
preliminary estimates disclosed in this press release are based on
the Company’s internal management accounts and records based on
currently available preliminary information and, therefore, may
change. The preliminary estimates are subject to revision as the
Company prepares its financial statements and disclosures as of and
for the year ended December 31, 2021.
In addition, this press release includes references to non-GAAP
financial measures, including Adjusted EBITDA. Such non-GAAP
measures should be considered only as supplemental to, and not as
superior to, financial measures prepared in accordance with GAAP.
The Company believes that these non-GAAP financial measures provide
useful information to management and investors regarding certain
financial and business trends relating to the Company’s financial
condition and results of operations. The Company believes that the
use of these non-GAAP financial measures provides an additional
tool for investors to use in evaluating actual and projected
operating results and trends in and in comparing the Company’s
financial measures with other similar companies, many of which
present similar non-GAAP financial measures to investors. The
principal limitation of these non-GAAP financial measures is that
they exclude significant expenses and other amounts that are
required by GAAP to be recorded in the Company’s financial
statements. In addition, they are subject to inherent limitations
as they reflect the exercise of judgments by management about which
expense and other amounts are excluded or included in determining
these non-GAAP financial measures. You should review the Company’s
audited financial statements included in the Form S-4 (as defined
below).
Additional Information and Where to
Find It
In connection with the proposed business combination, on
February 15, 2022, Blackstone Products, Inc. filed a registration
statement on Form S-4 (the “Form S-4”) with a proxy statement with
the Securities and Exchange Commission (the “SEC”). The Form S-4
information about the proposed transaction and the respective
businesses of Blackstone and Ackrell. Ackrell will mail a final
prospectus and definitive proxy statement and other relevant
documents after the SEC completes its review. Ackrell stockholders
are urged to read the preliminary prospectus and proxy statement
and any amendments thereto and the final prospectus and definitive
proxy statement in connection with the solicitation of proxies for
the special meeting to be held to approve the proposed transaction,
because these documents will contain important information about
Ackrell, Blackstone, and the proposed transaction. The final
prospectus and definitive proxy statement will be mailed to
stockholders of Ackrell as of a record date to be established for
voting on the proposed transaction. Stockholders of Ackrell will
also be able to obtain a free copy of the proxy statement, as well
as other filings containing information about Ackrell, without
charge, at the SEC’s website (www.sec.gov) or by calling
1-800-SEC-0330. Copies of the proxy statement and Ackrell’s other
filings with the SEC can also be obtained, without charge, by
directing a request to: info@ackrellspac.com or Ackrell SPAC
Partners I Co., 2093 Philadelphia Pike #1968, Claymont, DE 19703.
Additionally, all documents filed with the SEC can be found on
Ackrell’s website, www.ackrellspac.com. The information contained
in, or that can be accessed through, Ackrell’s or the Company’s
website is not incorporated by reference in, and is not part of,
this press release.
No Offer or Solicitation
This press release does not constitute (i) a solicitation of a
proxy, consent, or authorization with respect to any securities or
in respect of the proposed business combination, or (ii) an offer
to sell or the solicitation of an offer to buy any securities, or a
solicitation of any vote or approval, nor shall there be any sale
of securities in any jurisdiction in which such offer,
solicitation, or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
No offering of securities shall be made except by means of a
prospectus meeting the requirements of the U.S. Securities Act.
Participants in the
Solicitation
Blackstone and Ackrell and their respective directors and
officers and other members of management and employees may be
deemed participants in the solicitation of proxies in connection
with the proposed business combination. Ackrell stockholders and
other interested persons may obtain, without charge, more detailed
information regarding directors and officers of Ackrell in
Ackrell’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2021, which was filed with the SEC on March 31, 2022.
Information regarding the persons who may, under SEC rules, be
deemed participants in the solicitation of proxies from Ackrell’s
stockholders in connection with the proposed business combination
is included in the Form S-4 and will be included in the definitive
proxy statement/prospectus that Ackrell intends to file with the
SEC and mail to its stockholders of record for voting on the
proposed transaction.
Caution Concerning Forward-Looking
Statements
Certain statements herein are “forward-looking statements” made
pursuant to the safe harbor provisions of the United States Private
Securities Litigation Reform Act of 1995. Actual results may differ
from their expectations, estimates, and projections and,
consequently, you should not rely on these forward-looking
statements as predictions of future events. For example,
projections of future net revenue, gross profit, gross margin,
Adjusted EBITDA and other metrics are forward-looking statements.
In some cases, you can identify forward-looking statements through
the use of words or phrases such as “may,” “should,” “could,”
“predict,” “potential,” “believe,” “will likely result,” “expect,”
“continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,”
“plan,” “projection,” “would” and “outlook,” or the negative
version of those words or phrases or other comparable words or
phrases of a future or forward-looking nature, but the absence of
such words does not mean that a statement is not forward-looking.
These forward-looking statements are not historical facts and are
based upon estimates and assumptions that, while considered
reasonable by Ackrell and its management, and the Company and its
management, as the case may be, are inherently uncertain. Factors
that may cause actual results to differ materially from current
expectations include, but are not limited to: (1) the occurrence of
any event, change or other circumstances that could give rise to
the termination of the business combination agreement and any
subsequent definitive agreements with respect to the proposed
business combination; (2) the outcome of any legal proceedings that
may be instituted against Ackrell, the Company, the combined
company or other following the announcement of the proposed
business combination and the business combination agreement with
respect thereto; (3) the inability to complete the proposed
business combination due to the failure to obtain approval of the
stockholders of Ackrell, to obtain financing to complete the
proposed business combination or to satisfy other conditions to
closing; (4) changes to the proposed structure of the proposed
business combination that may be required or appropriate as a
result of applicable laws or regulations or as a condition to
obtaining regulatory approval of the proposed business combination;
(5) the ability to meet stock exchange listing standards following
the consummation of the proposed business combination; (6) the risk
that the proposed business combination disrupts current plans and
operations of Ackrell or the Company as a result of the
announcement and consummation of the proposed business combination;
(7) the ability to recognize the anticipated benefits of the
proposed business combination, which may be affected by, among
other things, competition and the ability of the combined company
to grow and manage growth profitably, maintain relationships with
customers and retain its management and key employees; (8) costs
related to the proposed business combination; (9) changes in
applicable laws or regulations and delays in obtaining, adverse
conditions contained in, or the inability to obtain regulatory
approvals required to complete the proposed business combination;
(10) the Company’s estimates of expenses and profitability and
underlying assumptions with respect to stockholder redemptions and
purchase price and other adjustments; (11) the Company's inability
to increase outdoor cooking market penetration or expand the
categories for outdoor cooking; (12) the addressable market the
Company intends to target does not grow as expected; (13) increased
regulatory costs and compliance requirements in connection with any
international or product line expansion; (14) the Company's
inability to expand and diversify its supply chain; (15) the loss
of any key executives; (16) the loss of any relationships with key
retailers; (17) the loss of any relationships with key suppliers;
(18) the inability to protect the Company's patents and other
intellectual property; (19) lower than expected attachment rate and
cross-selling capabilities for new products; (20) new technologies
that compete with the Company in the griddle market and other
outdoor cooking markets; (21) the inability to increase engagement
with end-users via social media or other digital channels; (22)
fluctuations in sales of the Company’s major customers; (23) the
Company’s ability to execute its business plans and strategy; (24)
the Company’s ability to maintain sufficient inventory and meet
customer demand; (25) the Company’s inability to deliver expected
cost and manufacturing efficiencies; and (26) other risks and
uncertainties indicated from time to time in the Form S-4 and other
documents filed or to be filed with the SEC by Blackstone Products,
Inc. and Ackrell.
CONSOLIDATED STATEMENT OF
OPERATIONS
(Preliminary and
Unaudited)
Year Ended December
31,
($ in thousands)
2021
2020
Revenue, net
$
483,591
$
292,811
Cost of goods sold
385,768
236,537
Gross profit
97,823
56,274
Operating expenses Sales and marketing
14,923
13,339
General and administrative
15,065
9,743
Research and development
3,365
2,517
Total operating expenses
33,353
25,599
Income from operations
64,470
30,675
Interest expense, net
2,872
1,651
Other expense (income), net
(2,212
)
(548
)
Income before income tax
63,809
29,572
Income tax expense
14,614
5,576
Net income
$
49,195
$
23,996
ADJUSTED EBITDA
RECONCILIATION
Year Ended December
31,
Quarter Ended December
31,
($ in thousands)
2021
2020
2021
2020
Revenue, net
$
483,591
$
292,811
$
142,644
$
68,548
Gross profit
97,823
56,274
34,247
11,715
Adjusted EBITDA reconciliation: Net income
$
49,195
$
23,996
$
16,571
$
955
Add (deduct): Net interest expense
2,872
1,655
2,082
358
Income tax expense
14,614
5,576
6,628
(173
)
Depreciation and amortization
1,073
738
452
285
EBITDA
67,754
31,965
25,733
1,425
Business transformation fees
4,761
398
3,569
159
Non-operating (income)/expenses
(2,211
)
(395
)
(211
)
664
Adjusted EBITDA
$
70,304
$
31,968
$
29,092
$
2,247
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220404005306/en/
Media and Investor Contact
ICR Blackstone@icrinc.com
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