The Duckhorn Portfolio Announces Fourth Quarter and Fiscal Year 2024 Financial Results
Fourth Quarter
Fourth Quarter Net Income of
Fourth Quarter Adjusted EBITDA of
Fourth Quarter 2024 Highlights
-
Net sales were
$107.4 million , an increase of$7.3 million , or 7.3%, versus the prior year. Excluding Sonoma-Cutrer, net sales declined$13.9 million or 13.9% versus the prior year, due primarily to the shift in timing of the Kosta Browne Appellation Series release into Q3 in fiscal 2024 from Q4 in fiscal 2023. -
Gross profit was
$51.3 million , a decrease of$4.0 million , or 7.2%, versus the prior year. Gross profit margin was 47.8%, versus 55.2% in the prior year. Excluding Sonoma-Cutrer, gross profit declined$10.8 million or 19.5% and gross profit margin was 51.6%. -
Adjusted gross profit was
$55.0 million , in line with the prior year. Adjusted gross profit margin was 51.2%, versus 55.1% in the prior year. Excluding Sonoma-Cutrer, adjusted gross profit declined$10.3 million or 18.7% and gross profit margin was 52.1%. -
Net income was
$11.3 million , or$0.08 per diluted share, versus$17.8 million , or$0.05 per diluted share, in the prior year. Adjusted net income was$20.4 million , or$0.14 per diluted share, versus$16.7 million , or$0.15 per diluted share, in the prior year. -
Adjusted EBITDA was
$39.9 million , an increase of$5.7 million , or 16.7%, and Adjusted EBITDA margin improved by approximately 300 basis points versus the prior year to a margin of 37.2%. -
Cash was
$10.9 million as ofJuly 31, 2024 . The Company’s leverage ratio was 2.0x net debt (net of deferred financing costs), to trailing twelve months adjusted EBITDA.
Fiscal Year 2024 Highlights
-
Net sales were
$405.5 million , an increase of$2.8 million , or 0.7%, versus the prior year. Excluding Sonoma-Cutrer, net sales declined$18.4 million or 4.6% versus the prior year. -
Gross profit was
$214.9 million , a decrease of$0.8 million , or 0.4%, versus the prior year. Gross profit margin was 53.0% versus 53.6% for the prior year. Excluding Sonoma-Cutrer, gross profit declined$7.6 million or 3.5% and gross profit margin was 54.2%. -
Adjusted gross profit was
$217.4 million , a decrease of$0.8 million , or 0.4% versus the prior year. Adjusted gross profit margin was 53.6%, versus 53.7% in the prior year. Excluding Sonoma-Cutrer, adjusted gross profit declined$9.3 million or 4.3% and gross profit margin was 53.9%. -
Net income was
$56.0 million , or$0.45 per diluted share, versus$69.3 million , or$0.60 per diluted share, for the prior year. Adjusted net income was$74.8 million , or$0.60 per diluted share, decreasing by$2.5 million , or 3.2%, versus$77.3 million , or$0.67 per diluted share, for the prior year. -
Adjusted EBITDA was
$155.1 million , an increase of$10.6 million , or 7.3%, versus the prior year. Adjusted EBITDA margin improved by approximately 230 basis points versus the prior year, to a margin of 38.2%.
“We are pleased to conclude fiscal 2024 with a solid fourth quarter performance,” said
Fourth Quarter and Fiscal Year 2024 Results
|
Three months ended |
|
Fiscal year ended |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Net sales growth |
7.3 |
% |
|
28.3 |
% |
|
0.6 |
% |
|
8.2 |
% |
Volume contribution |
23.7 |
% |
|
10.6 |
% |
|
3.1 |
% |
|
5.6 |
% |
Price / mix contribution |
(16.4 |
)% |
|
17.7 |
% |
|
(2.5 |
)% |
|
2.6 |
% |
|
Three months ended |
|
Fiscal year ended |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Wholesale – Distributors |
78.3 |
% |
|
65.1 |
% |
|
69.8 |
% |
|
67.9 |
% |
Wholesale – |
14.8 |
|
|
15.9 |
|
|
16.3 |
|
|
17.1 |
|
DTC |
6.9 |
|
|
19.0 |
|
|
13.9 |
|
|
15.0 |
|
Net sales |
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
Fourth Quarter 2024 Financial Information
Net sales were
Gross profit was
Total selling, general and administrative expenses were
Net income was
Adjusted EBITDA was
Conference Call and Webcast
The Company will no longer host its earnings conference call and webcast previously scheduled for today,
About
Use of Non-GAAP Financial Information
In addition to the Company’s results, which are determined in accordance with generally accepted accounting principles in
Forward-Looking Statements
This press release includes forward-looking statements. These forward-looking statements generally can be identified by the use of words such as “anticipate,” “expect,” “plan,” “could,” “may,” “will,” “believe,” “estimate,” “forecast,” “goal,” “project,” and other words of similar meaning. These forward-looking statements address various matters including statements regarding the timing or nature of future operating or financial performance or other events. For example, all statements
|
|||||
CONSOLIDATED BALANCE SHEETS |
|||||
(Unaudited, in thousands, except shares and per share data) |
|||||
|
|
|
|
||
ASSETS |
|||||
Current assets: |
|
|
|
||
Cash |
$ |
10,872 |
|
$ |
6,353 |
Accounts receivable trade, net |
|
52,262 |
|
|
48,706 |
Due from related party |
|
10,845 |
|
|
— |
Inventories |
|
448,967 |
|
|
322,227 |
Prepaid expenses and other current assets |
|
14,594 |
|
|
10,244 |
Total current assets |
|
537,540 |
|
|
387,530 |
Property and equipment, net |
|
568,457 |
|
|
323,530 |
Operating lease right-of-use assets |
|
27,130 |
|
|
20,376 |
Intangible assets, net |
|
192,467 |
|
|
184,227 |
|
|
483,879 |
|
|
425,209 |
Other assets |
|
7,555 |
|
|
6,810 |
Total assets |
$ |
1,817,028 |
|
$ |
1,347,682 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||
Current liabilities: |
|
|
|
||
Accounts payable |
$ |
5,774 |
|
$ |
4,829 |
Accrued expenses |
|
34,164 |
|
|
38,246 |
Accrued compensation |
|
11,386 |
|
|
16,460 |
Current operating lease liabilities |
|
2,869 |
|
|
3,787 |
Current maturities of long-term debt |
|
9,721 |
|
|
9,721 |
Due to related party |
|
1,714 |
|
|
— |
Other current liabilities |
|
1,116 |
|
|
1,417 |
Total current liabilities |
|
66,744 |
|
|
74,460 |
Revolving line of credit, net |
|
101,000 |
|
|
13,000 |
Long-term debt, net of current maturities and debt issuance costs |
|
200,734 |
|
|
210,619 |
Operating lease liabilities |
|
24,286 |
|
|
16,534 |
Deferred income taxes |
|
151,104 |
|
|
90,216 |
Other liabilities |
|
705 |
|
|
445 |
Total liabilities |
|
544,573 |
|
|
405,274 |
Stockholders’ equity: |
|||||
Common stock, |
|
1,471 |
|
|
1,153 |
Additional paid-in capital |
|
1,011,265 |
|
|
737,557 |
Retained earnings |
|
259,135 |
|
|
203,122 |
Total |
|
1,271,871 |
|
|
941,832 |
Non-controlling interest |
|
584 |
|
|
576 |
Total stockholders’ equity |
|
1,272,455 |
|
|
942,408 |
Total liabilities and stockholders’ equity |
$ |
1,817,028 |
|
$ |
1,347,682 |
|
||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||
(Unaudited, in thousands, except shares and per share data) |
||||||||||||||
|
Three months ended |
|
Fiscal year ended |
|||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||
Sales |
$ |
108,965 |
|
$ |
101,362 |
|
|
$ |
410,966 |
|
|
$ |
408,442 |
|
Excise tax |
|
1,570 |
|
|
1,267 |
|
|
|
5,485 |
|
|
|
5,446 |
|
Net sales |
|
107,395 |
|
|
100,095 |
|
|
|
405,481 |
|
|
|
402,996 |
|
|
|
|
|
|
|
|
|
|||||||
Cost of sales |
|
56,083 |
|
|
44,813 |
|
|
|
190,555 |
|
|
|
187,307 |
|
Gross profit |
|
51,312 |
|
|
55,282 |
|
|
|
214,926 |
|
|
|
215,689 |
|
|
|
|
|
|
|
|
|
|||||||
Selling, general and administrative expenses |
|
30,614 |
|
|
30,404 |
|
|
|
120,083 |
|
|
|
109,711 |
|
Income from operations |
|
20,698 |
|
|
24,878 |
|
|
|
94,843 |
|
|
|
105,978 |
|
|
|
|
|
|
|
|
|
|||||||
Interest expense |
|
5,068 |
|
|
3,882 |
|
|
|
18,103 |
|
|
|
11,721 |
|
Other expense (income), net |
|
2,087 |
|
|
(3,597 |
) |
|
|
(84 |
) |
|
|
(212 |
) |
Total other expenses, net |
|
7,155 |
|
|
285 |
|
|
|
18,019 |
|
|
|
11,509 |
|
Income before income taxes |
|
13,543 |
|
|
24,593 |
|
|
|
76,824 |
|
|
|
94,469 |
|
Income tax expense |
|
2,247 |
|
|
6,825 |
|
|
|
20,803 |
|
|
|
25,183 |
|
Net income |
|
11,296 |
|
|
17,768 |
|
|
|
56,021 |
|
|
|
69,286 |
|
Net loss (income) attributable to non-controlling interest |
|
— |
|
|
1 |
|
|
|
(8 |
) |
|
|
12 |
|
Net income attributable to |
$ |
11,296 |
|
$ |
17,769 |
|
|
$ |
56,013 |
|
|
$ |
69,298 |
|
|
|
|
|
|
|
|
|
|||||||
Earnings per share of common stock: |
|
|
|
|
|
|
|
|||||||
Basic |
|
|
|
|
|
|
|
|||||||
Diluted |
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|||||||
Weighted average shares of common stock outstanding: |
|
|
|
|
|
|
|
|||||||
Basic |
147,060,134 |
|
115,173,211 |
|
123,436,717 |
|
115,233,324 |
|||||||
Diluted |
147,077,828 |
|
115,376,739 |
|
123,549,109 |
|
115,407,624 |
|
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(Unaudited, in thousands) |
|||||||
|
Fiscal year ended |
||||||
|
2024 |
|
2023 |
||||
Cash flows from operating activities |
|
|
|
||||
Net income |
$ |
56,021 |
|
|
$ |
69,286 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Deferred income taxes |
|
30 |
|
|
|
(267 |
) |
Depreciation and amortization |
|
37,168 |
|
|
|
27,768 |
|
Loss on disposal of assets |
|
981 |
|
|
|
157 |
|
Change in fair value of derivatives |
|
716 |
|
|
|
34 |
|
Amortization of debt issuance costs |
|
775 |
|
|
|
975 |
|
Impairment loss |
|
1,200 |
|
|
|
— |
|
Equity-based compensation |
|
7,319 |
|
|
|
6,290 |
|
Inventory reserve adjustments |
|
479 |
|
|
|
722 |
|
Change in operating assets and liabilities; net of acquisition: |
|
|
|
||||
Accounts receivable trade, net |
|
(3,554 |
) |
|
|
(11,679 |
) |
Due from related party |
|
(10,845 |
) |
|
|
— |
|
Inventories |
|
(61,863 |
) |
|
|
(33,894 |
) |
Prepaid expenses and other current assets |
|
(2,773 |
) |
|
|
2,281 |
|
Other assets |
|
(1,810 |
) |
|
|
(917 |
) |
Accounts payable |
|
(1,239 |
) |
|
|
1,549 |
|
Accrued expenses |
|
(11,143 |
) |
|
|
7,002 |
|
Accrued compensation |
|
(5,350 |
) |
|
|
3,567 |
|
Deferred revenue |
|
13 |
|
|
|
(6 |
) |
Due to related party |
|
1,714 |
|
|
|
— |
|
Other current and non-current liabilities |
|
(3,679 |
) |
|
|
(2,776 |
) |
Net cash provided by operating activities |
|
4,160 |
|
|
|
70,092 |
|
Cash flows from investing activities |
|
|
|
||||
Purchases of property and equipment |
|
(27,967 |
) |
|
|
(72,843 |
) |
Proceeds from sales of property and equipment |
|
307 |
|
|
|
271 |
|
Acquisition of business, net of cash acquired |
|
(49,614 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(77,274 |
) |
|
|
(72,572 |
) |
Cash flows from financing activities |
|
|
|
||||
Payments under line of credit |
|
(47,000 |
) |
|
|
(121,000 |
) |
Borrowings under line of credit |
|
135,000 |
|
|
|
24,000 |
|
Issuance of long-term debt |
|
— |
|
|
|
225,833 |
|
Payments of long-term debt |
|
(10,000 |
) |
|
|
(120,166 |
) |
Proceeds from employee stock purchase plan |
|
247 |
|
|
|
350 |
|
Taxes paid related to net share settlement of equity awards |
|
(496 |
) |
|
|
(680 |
) |
Payment of equity issuance costs |
|
(118 |
) |
|
|
— |
|
Debt issuance costs |
|
— |
|
|
|
(2,671 |
) |
Net cash provided by financing activities |
|
77,633 |
|
|
|
5,666 |
|
Net increase in cash |
|
4,519 |
|
|
|
3,186 |
|
Cash - Beginning of year |
|
6,353 |
|
|
|
3,167 |
|
Cash - End of year |
$ |
10,872 |
|
|
$ |
6,353 |
|
Supplemental cash flow information |
|
|
|
||||
Interest paid, net of amount capitalized |
$ |
18,273 |
|
|
$ |
10,393 |
|
Income taxes paid |
$ |
34,110 |
|
|
$ |
11,562 |
|
Non-cash investing and financing activities |
|
|
|
||||
Property and equipment additions in accounts payable and accrued expenses |
$ |
8,547 |
|
|
$ |
3,360 |
|
Consideration payable for the acquisition of Sonoma-Cutrer in due to related party |
$ |
1,342 |
|
|
$ |
— |
|
Value of shares issued related to the acquisition of Sonoma-Cutrer |
$ |
267,072 |
|
|
$ |
— |
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Adjusted gross profit, adjusted selling, general and administrative expenses, adjusted net income, adjusted EBITDA and adjusted EPS, collectively referred to as “Non-GAAP Financial Measures,” are commonly used in the Company’s industry and should not be construed as an alternative to net income or earnings per share as indicators of operating performance (as determined in accordance with GAAP). These Non-GAAP Financial Measures may not be comparable to similarly titled measures reported by other companies. The Company has included these Non-GAAP Financial Measures because it believes the measures provide management and investors with additional information to evaluate business performance in comparison to budgets, forecasts and prior year financial results.
Non-GAAP Financial Measures are adjusted to exclude certain items that affect comparability. The adjustments are itemized in the tables below. You are encouraged to evaluate these adjustments and the reason the Company considers them appropriate for supplemental analysis. In evaluating adjustments, you should be aware that in the future the Company may incur expenses that are the same as or similar to some of the adjustments set forth below. The presentation of Non-GAAP Financial Measures should not be construed as an inference that future results will be unaffected by unusual or recurring items.
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP financial measure that the Company calculates as net income before interest, taxes, depreciation and amortization, non-cash equity-based compensation expense, purchase accounting adjustments, transaction expenses, acquisition integration expenses, changes in the fair value of derivatives and certain other items which are not related to our core operating performance. Adjusted EBITDA is a key performance measure the Company uses in evaluating its operational results. The Company believes adjusted EBITDA is a helpful measure to provide investors an understanding of how management regularly monitors the Company’s core operating performance, as well as how management makes operational and strategic decisions in allocating resources. The Company believes adjusted EBITDA also provides management and investors consistency and comparability with the Company’s past financial performance and facilitates period to period comparisons of operations, as it eliminates the effects of certain variations unrelated to its overall performance.
Adjusted EBITDA has certain limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Some of these limitations include:
- although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
- adjusted EBITDA does not reflect changes in, or cash requirements for, the Company’s working capital needs;
- adjusted EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on the Company’s debt;
- adjusted EBITDA does not reflect income tax payments that may represent a reduction in cash available to the Company; and
- other companies, including companies in the Company’s industry, may calculate adjusted EBITDA differently, which reduce their usefulness as comparative measures.
Because of these limitations, you should consider adjusted EBITDA alongside other financial performance measures, including net income and the Company’s other GAAP results. In evaluating adjusted EBITDA, you should be aware that in the future the Company may incur expenses that are the same as or similar to some of the adjustments in this presentation. The Company’s presentation of adjusted EBITDA should not be construed as an inference that the Company’s future results will be unaffected by the types of items excluded from the calculation of adjusted EBITDA.
Adjusted Gross Profit
Adjusted gross profit is a non-GAAP financial measure that the Company calculates as gross profit excluding the impact of purchase accounting adjustments (including depreciation and amortization related to purchase accounting), non-cash equity-based compensation expense, and certain inventory charges. We believe adjusted gross profit is a useful measure to us and our investors to assist in evaluating our operating performance because it provides consistency and direct comparability with our past financial performance between fiscal periods, as the metric eliminates the effects of non-cash or other expenses unrelated to our core operating performance that would result in fluctuations in a given metric for reasons unrelated to overall continuing operating performance. Adjusted gross profit should not be considered a substitute for gross profit or any other measure of financial performance reported in accordance with GAAP.
Adjusted Net Income and Adjusted Selling, General and Administrative Expenses
Adjusted net income is a non-GAAP financial measure that the Company calculates as net income excluding the impact of non-cash equity-based compensation expense, purchase accounting adjustments, transaction expenses, acquisition integration expenses, changes in the fair value of derivatives and certain other items unrelated to core operating performance, as well as the estimated income tax impacts of all such adjustments included in this non-GAAP performance measure. We believe adjusted net income assists us and our investors in evaluating our performance period-over-period. In calculating adjusted net income, we also calculate the following non-GAAP financial measures which adjust each GAAP-based financial measure for the relevant portion of each adjustment to reach adjusted net income:
- Adjusted SG&A – calculated as selling, general, and administrative expenses excluding the impacts of purchase accounting, transaction expenses, acquisition integration expenses, equity-based compensation; and
- Adjusted income tax – calculated as the tax effect of all adjustments to reach adjusted net income based on the applicable blended statutory tax rate for the period.
Adjusted net income should not be considered a substitute for net income or any other measure of financial performance reported in accordance with GAAP.
Adjusted EPS
Adjusted EPS is a non-GAAP financial measure that the Company calculates as adjusted net income divided by diluted share count for the applicable period. We believe adjusted EPS is useful to us and our investors because it improves the comparability of results of operations from period to period. Adjusted EPS should not be considered a substitute for net income per share or any other measure of financial performance reported in accordance with GAAP.
|
|||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||||||||||||||||||||||
(Unaudited, in thousands, except per share data) |
|||||||||||||||||||||||||||
|
Three months ended |
||||||||||||||||||||||||||
|
Net
|
|
Gross
|
|
SG&A |
|
Adjusted
|
|
Income
|
|
Net
|
|
Diluted
|
||||||||||||||
GAAP results |
$ |
107,395 |
|
|
$ |
51,312 |
|
|
$ |
30,614 |
|
|
$ |
11,296 |
|
|
$ |
2,247 |
|
|
$ |
11,296 |
|
|
$ |
0.08 |
|
Percentage of net sales |
|
|
|
47.8 |
% |
|
|
28.5 |
% |
|
|
10.5 |
% |
|
|
|
|
|
|
||||||||
Interest expense |
|
|
|
|
|
|
|
5,068 |
|
|
|
|
|
|
|
||||||||||||
Income tax expense |
|
|
|
|
|
|
|
2,247 |
|
|
|
|
|
|
|
||||||||||||
Depreciation and amortization expense |
|
|
|
143 |
|
|
|
(1,902 |
) |
|
|
10,470 |
|
|
|
|
|
|
|
||||||||
EBITDA |
|
|
|
|
|
|
$ |
29,081 |
|
|
|
|
|
|
|
||||||||||||
Purchase accounting adjustments |
|
|
|
3,320 |
|
|
|
|
|
3,320 |
|
|
|
551 |
|
|
|
2,769 |
|
|
|
0.02 |
|
||||
Transaction expenses |
|
|
|
|
|
(739 |
) |
|
|
739 |
|
|
|
56 |
|
|
|
683 |
|
|
|
— |
|
||||
Acquisition integration costs |
|
|
|
|
|
(307 |
) |
|
|
307 |
|
|
|
51 |
|
|
|
256 |
|
|
|
— |
|
||||
Change in fair value of derivatives |
|
|
|
|
|
|
|
2,433 |
|
|
|
404 |
|
|
|
2,029 |
|
|
|
0.01 |
|
||||||
Equity-based compensation |
|
|
|
226 |
|
|
|
(1,894 |
) |
|
|
2,120 |
|
|
|
328 |
|
|
|
1,792 |
|
|
|
0.01 |
|
||
Impairment loss |
|
|
|
|
|
(1,200 |
) |
|
|
1,200 |
|
|
|
199 |
|
|
|
1,001 |
|
|
|
0.01 |
|
||||
Loss on property and equipment |
|
|
|
|
|
(710 |
) |
|
|
710 |
|
|
|
118 |
|
|
|
592 |
|
|
|
— |
|
||||
Non-GAAP results |
$ |
107,395 |
|
|
$ |
55,001 |
|
|
$ |
23,862 |
|
|
$ |
39,910 |
|
|
$ |
3,954 |
|
|
$ |
20,418 |
|
|
$ |
0.14 |
|
Percentage of net sales |
|
|
|
51.2 |
% |
|
|
22.2 |
% |
|
|
37.2 |
% |
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Three months ended |
||||||||||||||||||||||||||
|
Net
|
|
Gross
|
|
SG&A |
|
Adjusted
|
|
Income
|
|
Net
|
|
Diluted
|
||||||||||||||
GAAP results |
$ |
100,095 |
|
|
$ |
55,282 |
|
|
$ |
30,404 |
|
|
$ |
17,769 |
|
|
$ |
6,825 |
|
|
$ |
17,769 |
|
|
$ |
0.15 |
|
Percentage of net sales |
|
|
|
55.2 |
% |
|
|
30.4 |
% |
|
|
17.8 |
% |
|
|
|
|
|
|
||||||||
Interest expense |
|
|
|
|
|
|
|
3,882 |
|
|
|
|
|
|
|
||||||||||||
Income tax expense |
|
|
|
|
|
|
|
6,825 |
|
|
|
|
|
|
|
||||||||||||
Depreciation and amortization expense |
|
|
|
114 |
|
|
|
(2,105 |
) |
|
|
7,240 |
|
|
|
|
|
|
|
||||||||
EBITDA |
|
|
|
|
|
|
$ |
35,716 |
|
|
|
|
|
|
|
||||||||||||
Purchase accounting adjustments |
|
|
|
19 |
|
|
|
|
|
19 |
|
|
|
5 |
|
|
|
14 |
|
|
|
— |
|
||||
Transaction expenses |
|
|
|
|
|
(256 |
) |
|
|
256 |
|
|
|
71 |
|
|
|
185 |
|
|
|
— |
|
||||
Change in fair value of derivatives |
|
|
|
|
|
|
|
(2,909 |
) |
|
|
(807 |
) |
|
|
(2,102 |
) |
|
|
(0.02 |
) |
||||||
Equity-based compensation |
|
|
|
140 |
|
|
|
(1,212 |
) |
|
|
1,352 |
|
|
|
321 |
|
|
|
1,031 |
|
|
|
0.01 |
|
||
Lease income, net |
|
(364 |
) |
|
|
(364 |
) |
|
|
(141 |
) |
|
|
(223 |
) |
|
|
(62 |
) |
|
|
(161 |
) |
|
|
— |
|
Non-GAAP results |
$ |
99,731 |
|
|
$ |
55,191 |
|
|
$ |
26,690 |
|
|
$ |
34,211 |
|
|
$ |
6,353 |
|
|
$ |
16,736 |
|
|
$ |
0.15 |
|
Percentage of net sales |
|
|
|
55.1 |
% |
|
|
26.7 |
% |
|
|
34.2 |
% |
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Sum of individual amounts may not recalculate due to rounding. |
|
||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
||||||||||||||||||||||||||
(Unaudited, in thousands, except per share data) |
||||||||||||||||||||||||||
|
Fiscal year ended |
|||||||||||||||||||||||||
|
Net
|
|
Gross
|
|
SG&A |
|
Adjusted
|
|
Income
|
|
Net
|
|
Diluted
|
|||||||||||||
GAAP results |
$ |
405,481 |
|
|
$ |
214,926 |
|
|
$ |
120,083 |
|
|
$ |
56,013 |
|
|
$ |
20,803 |
|
|
$ |
56,013 |
|
|
$ |
0.45 |
Percentage of net sales |
|
|
|
53.0 |
% |
|
|
29.6 |
% |
|
|
13.8 |
% |
|
|
|
|
|
|
|||||||
Interest expense |
|
|
|
|
|
|
|
18,103 |
|
|
|
|
|
|
|
|||||||||||
Income tax expense |
|
|
|
|
|
|
|
20,803 |
|
|
|
|
|
|
|
|||||||||||
Depreciation and amortization expense |
|
|
|
469 |
|
|
|
(10,463 |
) |
|
|
37,168 |
|
|
|
|
|
|
|
|||||||
EBITDA |
|
|
|
|
|
|
$ |
132,087 |
|
|
|
|
|
|
|
|||||||||||
Purchase accounting adjustments |
|
|
|
3,379 |
|
|
|
|
|
3,379 |
|
|
|
915 |
|
|
|
2,464 |
|
|
|
0.02 |
||||
Transaction expenses |
|
|
|
|
|
(9,963 |
) |
|
|
9,963 |
|
|
|
834 |
|
|
|
9,129 |
|
|
|
0.07 |
||||
Acquisition integration costs |
|
|
|
|
|
(923 |
) |
|
|
923 |
|
|
|
250 |
|
|
|
673 |
|
|
|
0.01 |
||||
Change in fair value of derivatives |
|
|
|
|
|
|
|
716 |
|
|
|
194 |
|
|
|
522 |
|
|
|
— |
||||||
Equity-based compensation |
|
|
|
806 |
|
|
|
(5,614 |
) |
|
|
6,420 |
|
|
|
1,589 |
|
|
|
4,831 |
|
|
|
0.04 |
||
Impairment loss |
|
|
|
|
|
(1,200 |
) |
|
|
1,200 |
|
|
|
325 |
|
|
|
875 |
|
|
|
0.01 |
||||
Loss on property and equipment |
|
|
|
|
|
(710 |
) |
|
|
710 |
|
|
|
192 |
|
|
|
518 |
|
|
|
— |
||||
Lease income, net |
|
(2,176 |
) |
|
|
(2,176 |
) |
|
|
(1,862 |
) |
|
|
(314 |
) |
|
|
(85 |
) |
|
|
(229 |
) |
|
|
— |
Non-GAAP results |
$ |
403,305 |
|
|
$ |
217,404 |
|
|
$ |
89,348 |
|
|
$ |
155,084 |
|
|
$ |
25,017 |
|
|
$ |
74,796 |
|
|
$ |
0.60 |
Percentage of net sales |
|
|
|
53.6 |
% |
|
|
22.0 |
% |
|
|
38.2 |
% |
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Fiscal year ended |
|||||||||||||||||||||||||
|
Net
|
|
Gross
|
|
SG&A |
|
Adjusted
|
|
Income
|
|
Net
|
|
Diluted
|
|||||||||||||
GAAP results |
$ |
402,996 |
|
|
$ |
215,689 |
|
|
$ |
109,711 |
|
|
$ |
69,298 |
|
|
$ |
25,183 |
|
|
$ |
69,298 |
|
|
$ |
0.60 |
Percentage of net sales |
|
|
|
53.5 |
% |
|
|
27.2 |
% |
|
|
17.2 |
% |
|
|
|
|
|
|
|||||||
Interest expense |
|
|
|
|
|
|
|
11,721 |
|
|
|
|
|
|
|
|||||||||||
Income tax expense |
|
|
|
|
|
|
|
25,183 |
|
|
|
|
|
|
|
|||||||||||
Depreciation and amortization expense |
|
|
|
476 |
|
|
|
(7,815 |
) |
|
|
27,768 |
|
|
|
|
|
|
|
|||||||
EBITDA |
|
|
|
|
|
|
$ |
133,970 |
|
|
|
|
|
|
|
|||||||||||
Purchase accounting adjustments |
|
|
|
350 |
|
|
|
|
|
350 |
|
|
|
93 |
|
|
|
257 |
|
|
|
— |
||||
Transaction expenses |
|
|
|
|
|
(4,051 |
) |
|
|
4,051 |
|
|
|
982 |
|
|
|
3,069 |
|
|
|
0.03 |
||||
Change in fair value of derivatives |
|
|
|
|
|
|
|
34 |
|
|
|
9 |
|
|
|
25 |
|
|
|
— |
||||||
Equity-based compensation |
|
|
|
420 |
|
|
|
(5,042 |
) |
|
|
5,462 |
|
|
|
1,299 |
|
|
|
4,163 |
|
|
|
0.04 |
||
Debt refinancing costs |
|
|
|
|
|
|
|
865 |
|
|
|
231 |
|
|
|
634 |
|
|
|
0.01 |
||||||
Lease income, net |
|
(364 |
) |
|
|
(364 |
) |
|
|
(141 |
) |
|
|
(223 |
) |
|
|
(59 |
) |
|
|
(164 |
) |
|
|
— |
Non-GAAP results |
$ |
402,632 |
|
|
$ |
216,571 |
|
|
$ |
92,662 |
|
|
$ |
144,509 |
|
|
$ |
27,738 |
|
|
$ |
77,282 |
|
|
$ |
0.67 |
Percentage of net sales |
|
|
|
53.7 |
% |
|
|
23.0 |
% |
|
|
35.9 |
% |
|
|
|
|
|
|
Note: Sum of individual amounts may not recalculate due to rounding. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241007005375/en/
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