Third Quarter Highlights:
- Gross margin increased by 56% to 19.7% in Q3 over Q2 2021
- Total can volume increased by 36% to 24.8M in Q3 over Q2 2021
- Adjusted EBITDA* increased by 137% to $436K in Q3 over Q2 2021
- Quality assurance yield increased 35% in Q3 over Q2
2021
- Completed acquisitions of Craftpac, LLC in Marietta, GA and Vertical Distilling, LLC in
Longmont, CO
- Increased annual run rate decorating capacity by 48 million
cans
- Progressed construction on the label printing line in the
Las Vegas facility, on schedule
for pilot production in Q4 2021
*Non IFRS Measure - See "Use of Non-IFRS Measures" section for
further information.
VANCOUVER, BC, Nov. 29, 2021 /CNW/ - Wildpack Beverage
Inc. (TSXV: CANS) (OTC: WLDPF) ("Wildpack" or the
"Company") announces unaudited financial results for the
third quarter ending September
30, 2021. All currencies referenced herein are to
US dollars. Wildpack reported in Q3 2021, revenue of $7.069 million, gross profit margin of 19.7%,
positive Adjusted EBITDA of approximately $436,000, normalizing expenses of $1.045 million and a net loss of $1.493 million on total can volume of 24.863
million.
Wildpack wholly acquired the outstanding securities of Craftpac,
LLC on July 2, 2021 for $1.89 million and Vertical Distilling, LLC on
August 20, 2021 for $4.14 million with consideration paid and payable
in cash. Both acquisitions have a history of cash flow positive
operations and represent key geographic locations with no overlap
of the current network of Wildpack's facilities.
Regarding these acquisitions, Thomas
Walker, CGO said: "We are very pleased with our acquisitions
this quarter. Both companies bring a history of successful
operations and positive cash flows. Their integrations are going
smoothly and we are excited to continue to expand our geographic
reach. We are already seeing interest from our existing customers
looking to make use of our expanded footprint."
Gross profit margin improvement was driven by a focus on higher
margin work and the implementation of substantially more rigorous
quality assurance protocols, which result in higher yields and
correspondingly more billable product. These improvements were made
on budget and ahead of management's internal key performance
milestones.
In the Filling Division, in Las
Vegas, the Company continued the commissioning phase with
the addition of a second line. Construction and equipment delays
were experienced due to COVID-19, however the commissioning phase
is now completed with a focus on increasing monthly output. In
Baltimore, continued evaluation of
the filling expansion was considered, previously described in the
Wildpack Beverage Inc. Second Quarter Fiscal 2021 MD&A,
management made the decision to invest resources to reduce labour
hours and improve efficiencies. Improved carbonation and heat
exchange systems led to a 35% increase in yields from quarter two
to quarter three.
In the Decorating Division, the Company has completed the
addition of a second decorating line in the Baltimore facility and the installation of the
first decorating line in the Las
Vegas facility. These additions increase total annual
decorating capacity by 48 million cans. The Company progressed
construction of the label printing line in the Las Vegas facility, remaining on schedule for
pilot production in Q4 2021.
Chuck Zadlo, COO commented: "The
past quarter represented my first full quarter with Wildpack and I
am proud of the work the operations team has done in executing on
our excellence based strategy to integrate our new acquisitions as
well as improve safety, quality, and productivity in our
facilities. A key component in driving our strategy this past
quarter began with the expansion of the operations leadership team
and the value they have brought from day one has exceeded
expectations. Lastly, a big congratulations is in order to
Thomas Walker for his dedication to
our most recent acquisition of Land and Sea in November 2021."
COVID-19 has caused a global shortage in aluminum can supply as
demand increased and supply chains were disrupted. Wildpack was
deemed an essential service and has not faced any mandatory
shutdowns. In addition, Wildpack has prioritized protocols to
ensure that our workers stayed healthy and safe, and many received
early access to vaccinations. During this quarter there have been
no material production delays due to COVID-19. COVID-19 has had a
minor impact on the construction of the second filling line at the
Las Vegas facility delaying the
project; however, this was completed within the quarter.
This news release should be read in conjunction with the
Company's audited consolidated financial statements for the
nine-month fiscal period ended December 31,
2020, and interim condensed consolidated financial
statements (unaudited) and Management Discussion and Analysis for
the three and nine-month periods ended September 30, 2021.
Use of Non-IFRS Measures
Adjusted EBITDA is a non-IFRS earnings measure, therefore it does
not have any standardized meaning prescribed by International
Financial Reporting Standards ("IFRS") and may not be similar to
measures presented by other companies. Adjusted EBITDA represents
earnings before interest, income taxes, depreciation, amortization,
share-based compensation, professional fees, listing expense,
realized and unrealized foreign exchange expense, and directors and
officer's compensation. Management uses this measurement to
evaluate the operating results of the Company. This measure is also
important to management since it is used by the Company's lenders
to evaluate the ongoing cash-generating capability of the Company
and therefore the amounts those lenders are willing to lend to the
Company. Management believes investors may find adjusted EBITDA to
be useful information because it provides an alternative measure of
the Company's operating performance. As required by Canadian
securities laws, we reconcile this non-IFRS measure to the most
comparable IFRS measure in our MD&A for Q3 2021.
Per: "Mitch Barnard"
Mitch Barnard
Chief Executive Officer and Director
Advisors
Stifel GMP is financial advisor to Wildpack Beverage, Inc.,
Fasken Martineau DuMoulin LLP is its legal advisor.
Visit our investor website at:
https://investor.wildpackbev.com
About Wildpack
Wildpack is engaged in beverage manufacturing and packaging,
operating in the middle market by providing sustainable aluminum
can filling and ecofriendly decorating services to brands
throughout the United States.
Wildpack currently operates indirectly through its wholly owned
subsidiaries and out of facilities in Baltimore, Maryland, Atlanta, Georgia, Longmont, Colorado, Sacramento, California and Las Vegas, Nevada with a focus on digital
innovation and green ready-to-drink packaging. Wildpack commenced
trading on May 19, 2021 on the TSX
Venture Exchange under the symbol "CANS.V".
Forward-Looking Statements
This news release may contain "forward-looking statements"
within the meaning of applicable Canadian securities laws.
Forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by
management, are inherently subject to significant business,
economic and competitive uncertainties, and contingencies. 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 future results,
performance or achievements to be materially different from the
estimated future results, performance or achievements expressed or
implied by those forward-looking statements and the forward-looking
statements are not guarantees of future performance. Wildpack's
statements expressed or implied by these forward-looking statements
are subject to a number of risks, uncertainties, and conditions,
many of which are outside of Wildpack's control, and undue reliance
should not be placed on such statements. Forward-looking statements
are qualified in their entirety by the inherent risks and
uncertainties related to Wildpack's business, including: that
Wildpack's assumptions in making forward-looking statements may
prove to be incorrect; 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 operates. Except as required by
securities law, Wildpack 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.
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SOURCE Wildpack Beverage Inc.