Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Zevia Announces Fourth Quarter and Full Year 2023 Results By: Zevia PBC via Business Wire February 27, 2024 at 07:00 AM EST Q4 Net Sales up 6.9%, including unit volumes up 3.7% Zevia PBC (“Zevia” or the “Company”) (NYSE: ZVIA), the company bringing great tasting, zero sugar beverages made with simple, plant-based ingredients across all usage occasions to households across income levels, today reported results for the fourth quarter and fiscal year ended December 31, 2023. Fourth Quarter 2023 Highlights Net sales increased 6.9% year over year to $37.8 million, returning to growth Unit volume increased 3.7% year over year to 2.8 million equivalized cases Gross profit margin was 40.7%, down 3.6 percentage points year over year, primarily driven by inventory losses while accelerating our supply chain transition Net loss was $9.2 million, including $1.7 million of non-cash equity-based compensation expense Adjusted EBITDA loss was $6.8 million(1) Loss per share was $0.14 per diluted share to Zevia’s Class A Common stockholders Full Year 2023 Highlights Net sales increased 2.0% year over year to $166.4 million, reflecting the impact of short-term supply chain disruptions encountered during the year Unit volume decreased 6.9% year over year to 12.7 million equivalized cases Gross profit margin was 44.9%, up 2.0 percentage points year over year Net loss was $28.3 million, including $8.3 million of non-cash equity-based compensation expense Adjusted EBITDA loss was $19.0 million(1) Loss per share was $0.41 per diluted share to Zevia’s Class A Common stockholders (1) Adjusted EBITDA is a non-GAAP financial measure. See the supplementary schedules in this press release for a discussion of how we define and calculate this measure and a reconciliation thereof to the most directly comparable GAAP measure. “Our fourth quarter volume growth reflects continued underlying consumer demand, a healthy business within our core customer base and exciting growth levels with developing customers,” said Amy Taylor, President and Chief Executive Officer. “We enter 2024 on a strong foundation, with a stable and scalable supply chain and the brand refresh fully in market. Our liquidity position and gross margins allow us to invest in growth amid tailwinds from consumer trends, building on our position as the number one consumer choice among natural beverages.” “We continue to expect top-line acceleration for the full year of 2024 from a mix of volume and price, and gains in household penetration as we execute key initiatives to drive distribution expansion.” Taylor continued. “This includes Zevia’s route-to-market evolution, and an initial expansion into the convenience channel.” Fourth Quarter 2023 Results Net sales increased 6.9% to $37.8 million in the fourth quarter of 2023 compared to $35.4 million in the fourth quarter of 2022, driven by higher price realizations and volumes that increased 3.7%. Gross profit decreased 1.7% to $15.4 million in the fourth quarter of 2023 compared to $15.7 million in the fourth quarter of 2022, and gross profit margin of 40.7% was down 3.6 percentage points compared to the fourth quarter of 2022. The decline in gross profit margin was driven by the decision made in the latter half of the quarter relating to the brand refresh, SKUs optimization, and procurement changes which led to inventory losses. Selling and marketing expenses were $13.8 million, or 36.6%, of net sales in the fourth quarter of 2023 compared to $10.0 million, or 28.3%, of net sales in the fourth quarter of 2022. The increase was primarily due to higher freight and freight transfer costs related to the short-term supply chain logistics challenges in 2023 which have been remediated, and higher warehousing costs as we continued to manage our inventory back to optimal levels. General and administrative expenses were $8.4 million, or 22.2%, of net sales in the fourth quarter of 2023 compared to $8.5 million, or 24.1%, of net sales in the fourth quarter of 2022. Equity-based compensation, a non-cash expense, was $1.7 million in the fourth quarter of 2023, compared to $3.1 million in the fourth quarter of 2022. The decrease of $1.4 million was largely due to the accelerated method of expense recognition on certain equity awards issued in connection with the Company’s IPO in 2021, partially offset by equity-based compensation expense related to new equity awards granted. Net loss for the fourth quarter of 2023 was $9.2 million, compared to net loss of $6.2 million in the fourth quarter of 2022. Loss per share for the fourth quarter of 2023 was $0.14 per diluted share to Zevia’s Class A Common stockholders, compared to loss per share of $0.09 in the fourth quarter of 2022. Adjusted EBITDA loss was $6.8 million in the fourth quarter of 2023, compared to an Adjusted EBITDA loss of $2.9 million in the fourth quarter of 2022. Adjusted EBITDA is a non-GAAP financial measure. See the supplementary schedules in this press release for a discussion of how we define and calculate this measure and a reconciliation thereof to the most directly comparable GAAP measure. Full Year 2023 Results Net sales increased 2.0% to $166.4 million in the full year of 2023 compared to $163.2 million in the full year of 2022, primarily driven by higher price realizations which were partially offset by a decrease in volumes due to short-term logistics challenges in the midst of a supply chain transition. Gross profit increased 6.8% to $74.8 million in the full year of 2023 compared to $70.0 million in the full year of 2022, and gross profit margin of 44.9% was up 2.0 percentage points compared to the full year of 2022. These improvements were primarily driven by pricing increases in 2022 and 2023, partially offset by lower volumes and higher inventory losses. Selling and marketing expenses were $62.3 million, or 37.4%, of net sales in the full year of 2023 compared to $52.9 million, or 32.4%, of net sales in the full year of 2022. The increase was primarily due to higher freight and warehousing costs associated with the short-term supply chain logistics challenges in the third and fourth quarters of 2023. General and administrative expenses were $31.5 million, or 18.9%, of net sales in the full year of 2023 compared to $36.8 million, or 22.5%, of net sales in the full year of 2022. The decrease was primarily due to a $2.6 million decrease in employee-related costs, and $2.8 million decrease driven by cost productivity initiatives. Equity-based compensation, a non-cash expense, was $8.3 million in the full year of 2023, compared to $26.9 million in the full year of 2022. The decrease of $18.6 million was primarily driven by $11.2 million of lower equity-based compensation expense due to the acceleration of vesting of RSU awards upon retirement of senior management employees during 2022, $5.9 million of expense related to the accelerated method of expense recognition on certain equity awards issued in connection with the Company’s IPO in 2021, and $2.7 million related to RSU and restricted phantom stock awards that vested over six months following the IPO in the prior year, partially offset by equity-based compensation expense related to new equity awards granted. Net loss for the full year of 2023 was $28.3 million, compared to net loss of $47.6 million in the full year of 2022. Loss per share for the full year of 2023 was $0.41 per diluted share to Zevia’s Class A Common stockholders, compared to loss per share of $0.81 in the full year of 2022. Adjusted EBITDA loss was $19.0 million in the full year of 2023, compared to an Adjusted EBITDA loss of $19.6 million in the full year of 2022. Adjusted EBITDA is a non-GAAP financial measure. See the supplementary schedules in this press release for a discussion of how we define and calculate this measure and a reconciliation thereof to the most directly comparable GAAP measure. Balance Sheet and Cash Flows As of December 31, 2023, the Company had $32.0 million in cash and cash equivalents and no outstanding debt, as well as an unused credit line of $20 million. Guidance The Company expects net sales for the first quarter of 2024 to be in the range of $38 million to $40 million. Webcast The Company will host a conference call today at 8:30 a.m. Eastern Time to discuss this earnings release. Investors and other interested parties may listen to the webcast of the conference call by logging on via the Investor Relations section of Zevia’s website at https://investors.zevia.com/ or directly here. A replay of the webcast will be available for approximately thirty (30) days following the call. Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words such as “anticipate,” “believe,” “consider,” “contemplate,” “continue,” “could,’” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “on track,” “outlook,” “plan,” “potential,” “predict,” “project,” pursue,” “seek,” “should,” “target,” “will,” “would,” or the negative of these words or other similar words, terms or expressions with similar meanings. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements contained in this press release relate to, among other things, statements regarding 2024 Guidance and anticipated growth and distribution expansion, future results of operations or financial condition, strategic direction, plans and objectives of management for future operations, branding, operating environment, distribution, velocity, pricing and costs. Forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties, including, but not limited to, the ability to develop and maintain our brand, our ability to successfully execute on our rebranding strategy and to compete effectively, cost reduction initiatives, our ability to maintain supply chain service levels and any disruption of our supply chain, product demand, changes in the retail landscape or in sales to any key customer; change in consumer preferences, pricing factors, our ability to manage changes in our workforce, future cyber incidents and other disruptions to our information systems, failure to comply with personal data protection and privacy laws, the impact of inflation on our sales growth and cost structure such as increased commodity, packaging, transportation and freight, warehouse, labor and other input costs and other economic conditions, our reliance on contract manufacturers and service providers, competitive and governmental factors outside of our control, such as pandemics or epidemics, adverse global macroeconomic conditions, including relatively high interest rates, instability in financial institutions and a recessionary environment, any potential shutdown of the U.S. government, and geopolitical events or conflicts, including the military conflicts in Ukraine and the Middle East and trade tensions between the U.S. and China, failure to adequately protect our intellectual property rights or infringement on intellectual property rights of others, potential liabilities and costs from litigation, claims, legal or regulatory proceedings, inquiries or investigations, that may cause our business, strategy or actual results to differ materially from the forward-looking statements. We do not intend and undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. Investors are referred to our filings with the U.S. Securities and Exchange Commission for additional information regarding the risks and uncertainties that may cause actual results to differ materially from those expressed in any forward-looking statement. About Zevia Zevia PBC, a Delaware public benefit corporation designated as a “Certified B Corporation,” is focused on addressing the global health challenges resulting from excess sugar consumption by offering a broad portfolio of zero sugar, zero calorie, naturally sweetened beverages. All Zevia® beverages are made with a handful of simple, plant-based ingredients, contain no artificial sweeteners, and are Non-GMO Project verified, gluten-free, Kosher, vegan and zero sodium. Zevia is distributed in more than 34,000 retail locations in the U.S. and Canada through a diverse network of major retailers in the food, drug, warehouse club, mass, natural and ecommerce channels. (ZEVIA-F) ZEVIA PBC CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) (in thousands, except share and per share amounts) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Net sales $ 37,794 $ 35,366 $ 166,424 $ 163,181 Cost of goods sold 22,405 19,713 91,666 93,160 Gross profit 15,389 15,653 74,758 70,021 Operating expenses: Selling and marketing 13,845 10,025 62,312 52,869 General and administrative 8,393 8,536 31,495 36,793 Equity-based compensation 1,665 3,099 8,279 26,880 Depreciation and amortization 381 342 1,615 1,347 Total operating expenses 24,284 22,002 103,701 117,889 Loss from operations (8,895 ) (6,349 ) (28,943 ) (47,868 ) Other (expense) income, net (235 ) 222 673 286 Loss before income taxes (9,130 ) (6,127 ) (28,270 ) (47,582 ) Provision for income taxes 21 43 52 65 Net loss and comprehensive loss (9,151 ) (6,170 ) (28,322 ) (47,647 ) Loss attributable to noncontrolling interest 1,896 1,785 6,828 13,790 Net loss attributable to Zevia PBC $ (7,255 ) $ (4,385 ) $ (21,494 ) $ (33,857 ) Net loss per share attributable to common stockholders Basic $ (0.14 ) $ (0.09 ) $ (0.41 ) $ (0.81 ) Diluted $ (0.14 ) $ (0.09 ) $ (0.41 ) $ (0.81 ) Weighted average common shares outstanding Basic 52,220,804 47,368,849 50,618,758 43,469,383 Diluted 52,220,804 47,368,849 50,618,758 43,469,383 ZEVIA PBC CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands) December 31, 2023 December 31, 2022 ASSETS Current assets: Cash and cash equivalents $ 31,955 $ 47,399 Accounts receivable, net 11,119 11,077 Inventories 34,550 27,576 Prepaid expenses and other current assets 5,063 2,607 Total current assets 82,687 88,659 Property and equipment, net 2,109 4,641 Right-of-use assets under operating leases, net 1,959 708 Intangible assets, net 3,523 4,385 Other non-current assets 579 539 Total assets $ 90,857 $ 98,932 LIABILITIES AND EQUITY Current liabilities: Accounts payable 21,169 $ 8,023 Accrued expenses and other current liabilities 5,973 8,408 Current portion of operating lease liabilities 575 715 Total current liabilities 27,717 17,146 Operating lease liabilities, net of current portion 1,373 — Total liabilities 29,090 17,146 Stockholders’ equity Class A common stock 54 48 Class B common stock 17 22 Additional paid-in capital 191,144 189,724 Accumulated deficit (101,337 ) (79,843 ) Total Zevia PBC stockholders’ equity 89,878 109,951 Noncontrolling interests (28,111 ) (28,165 ) Total equity 61,767 81,786 Total liabilities and equity $ 90,857 $ 98,932 ZEVIA PBC CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) Year Ended December 31, 2023 2022 Operating activities: Net loss $ (28,322 ) $ (47,647 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Non-cash lease expense 567 653 Depreciation and amortization 1,615 1,347 Loss on disposal of property, equipment and software, net 480 3 Amortization of debt issuance cost 76 64 Equity-based compensation 8,279 26,880 Changes in operating assets and liabilities: Accounts receivable, net (42 ) (2,030 ) Inventories (6,974 ) 3,925 Prepaid expenses and other assets (2,573 ) 846 Accounts payable 13,640 (5,850 ) Accrued expenses and other current liabilities (2,435 ) 1,703 Operating lease liabilities (585 ) (672 ) Net cash used in operating activities (16,274 ) (20,778 ) Investing activities: Proceeds from maturities of short-term investments — 30,000 Purchases of property, equipment and software (1,624 ) (2,593 ) Proceeds from sales of property and equipment 2,429 — Net cash provided by investing activities 805 27,407 Financing activities: Payment of debt issuance costs — (334 ) Minimum tax withholding paid on behalf of employees for net share settlement — (2,130 ) Proceeds from exercise of stock options 25 124 Net cash provided by (used in) financing activities 25 (2,340 ) Net change from operating, investing, and financing activities (15,444 ) 4,289 Cash and cash equivalents at beginning of period 47,399 43,110 Cash and cash equivalents at end of period $ 31,955 $ 47,399 Use of Non-GAAP Financial Information We use Adjusted EBITDA, a financial measure that is not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company’s management believes that Adjusted EBITDA, when taken together with our financial results presented in accordance with GAAP, provides meaningful supplemental information regarding our operating performance and facilitates internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of Adjusted EBITDA is helpful to our investors as it is a measure used by management in assessing the health of our business, determining incentive compensation and evaluating our operating performance, as well as for internal planning and forecasting purposes. We calculate Adjusted EBITDA as net income (loss) adjusted to exclude: (1) other income (expense), net, which includes interest (income) expense, foreign currency (gains) losses, and (gains) losses on disposal of fixed assets, (2) provision (benefit) for income taxes, (3) depreciation and amortization, and (4) equity-based compensation. Also, Adjusted EBITDA may in the future be adjusted for amounts impacting net income related to the Tax Receivable Agreement liability and other infrequent and unusual transactions. Adjusted EBITDA is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of the limitations of Adjusted EBITDA include that (1) it does not properly reflect capital commitments to be paid in the future, (2) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA does not reflect these capital expenditures, (3) it does not consider the impact of equity-based compensation expense, including the potential dilutive impact thereof, and (4) it does not reflect other non-operating expenses, including interest (income) expense, foreign currency (gains) losses and (gains) losses on disposal of fixed assets. In addition, our use of Adjusted EBITDA may not be comparable to similarly titled measures of other companies because they may not calculate Adjusted EBITDA in the same manner, limiting its usefulness as comparative measures. Because of these limitations, when evaluating our performance, you should consider Adjusted EBITDA alongside other financial measures, including our net loss or income and other results stated in accordance with GAAP. The following table presents a reconciliation of net loss, the most directly comparable financial measure stated in accordance with GAAP, to Adjusted EBITDA for the periods presented: Three Months Ended December 31, Year Ended December 31, (in thousands) 2023 2022 2023 2022 Net loss and comprehensive loss $ (9,151 ) $ (6,170 ) $ (28,322 ) $ (47,647 ) Other expense (income), net* 235 (222 ) (673 ) (286 ) Provision for income taxes 21 43 52 65 Depreciation and amortization 381 342 1,615 1,347 Equity-based compensation 1,665 3,099 8,279 26,880 Adjusted EBITDA $ (6,849 ) $ (2,908 ) $ (19,049 ) $ (19,641 ) * Includes interest (income) expense, foreign currency (gains) losses, and (gains) losses on disposal of fixed assets. View source version on businesswire.com: https://www.businesswire.com/news/home/20240227272707/en/Contacts Media Annie Thompson Edelman Smithfield 713-299-4115 Annie.Thompson@edelmansmithfield.com Investors Greg Davis Zevia PBC 424-343-2654 Gregory@zevia.com Reed Anderson ICR 646-277-1260 Reed.Anderson@icrinc.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Zevia Announces Fourth Quarter and Full Year 2023 Results By: Zevia PBC via Business Wire February 27, 2024 at 07:00 AM EST Q4 Net Sales up 6.9%, including unit volumes up 3.7% Zevia PBC (“Zevia” or the “Company”) (NYSE: ZVIA), the company bringing great tasting, zero sugar beverages made with simple, plant-based ingredients across all usage occasions to households across income levels, today reported results for the fourth quarter and fiscal year ended December 31, 2023. Fourth Quarter 2023 Highlights Net sales increased 6.9% year over year to $37.8 million, returning to growth Unit volume increased 3.7% year over year to 2.8 million equivalized cases Gross profit margin was 40.7%, down 3.6 percentage points year over year, primarily driven by inventory losses while accelerating our supply chain transition Net loss was $9.2 million, including $1.7 million of non-cash equity-based compensation expense Adjusted EBITDA loss was $6.8 million(1) Loss per share was $0.14 per diluted share to Zevia’s Class A Common stockholders Full Year 2023 Highlights Net sales increased 2.0% year over year to $166.4 million, reflecting the impact of short-term supply chain disruptions encountered during the year Unit volume decreased 6.9% year over year to 12.7 million equivalized cases Gross profit margin was 44.9%, up 2.0 percentage points year over year Net loss was $28.3 million, including $8.3 million of non-cash equity-based compensation expense Adjusted EBITDA loss was $19.0 million(1) Loss per share was $0.41 per diluted share to Zevia’s Class A Common stockholders (1) Adjusted EBITDA is a non-GAAP financial measure. See the supplementary schedules in this press release for a discussion of how we define and calculate this measure and a reconciliation thereof to the most directly comparable GAAP measure. “Our fourth quarter volume growth reflects continued underlying consumer demand, a healthy business within our core customer base and exciting growth levels with developing customers,” said Amy Taylor, President and Chief Executive Officer. “We enter 2024 on a strong foundation, with a stable and scalable supply chain and the brand refresh fully in market. Our liquidity position and gross margins allow us to invest in growth amid tailwinds from consumer trends, building on our position as the number one consumer choice among natural beverages.” “We continue to expect top-line acceleration for the full year of 2024 from a mix of volume and price, and gains in household penetration as we execute key initiatives to drive distribution expansion.” Taylor continued. “This includes Zevia’s route-to-market evolution, and an initial expansion into the convenience channel.” Fourth Quarter 2023 Results Net sales increased 6.9% to $37.8 million in the fourth quarter of 2023 compared to $35.4 million in the fourth quarter of 2022, driven by higher price realizations and volumes that increased 3.7%. Gross profit decreased 1.7% to $15.4 million in the fourth quarter of 2023 compared to $15.7 million in the fourth quarter of 2022, and gross profit margin of 40.7% was down 3.6 percentage points compared to the fourth quarter of 2022. The decline in gross profit margin was driven by the decision made in the latter half of the quarter relating to the brand refresh, SKUs optimization, and procurement changes which led to inventory losses. Selling and marketing expenses were $13.8 million, or 36.6%, of net sales in the fourth quarter of 2023 compared to $10.0 million, or 28.3%, of net sales in the fourth quarter of 2022. The increase was primarily due to higher freight and freight transfer costs related to the short-term supply chain logistics challenges in 2023 which have been remediated, and higher warehousing costs as we continued to manage our inventory back to optimal levels. General and administrative expenses were $8.4 million, or 22.2%, of net sales in the fourth quarter of 2023 compared to $8.5 million, or 24.1%, of net sales in the fourth quarter of 2022. Equity-based compensation, a non-cash expense, was $1.7 million in the fourth quarter of 2023, compared to $3.1 million in the fourth quarter of 2022. The decrease of $1.4 million was largely due to the accelerated method of expense recognition on certain equity awards issued in connection with the Company’s IPO in 2021, partially offset by equity-based compensation expense related to new equity awards granted. Net loss for the fourth quarter of 2023 was $9.2 million, compared to net loss of $6.2 million in the fourth quarter of 2022. Loss per share for the fourth quarter of 2023 was $0.14 per diluted share to Zevia’s Class A Common stockholders, compared to loss per share of $0.09 in the fourth quarter of 2022. Adjusted EBITDA loss was $6.8 million in the fourth quarter of 2023, compared to an Adjusted EBITDA loss of $2.9 million in the fourth quarter of 2022. Adjusted EBITDA is a non-GAAP financial measure. See the supplementary schedules in this press release for a discussion of how we define and calculate this measure and a reconciliation thereof to the most directly comparable GAAP measure. Full Year 2023 Results Net sales increased 2.0% to $166.4 million in the full year of 2023 compared to $163.2 million in the full year of 2022, primarily driven by higher price realizations which were partially offset by a decrease in volumes due to short-term logistics challenges in the midst of a supply chain transition. Gross profit increased 6.8% to $74.8 million in the full year of 2023 compared to $70.0 million in the full year of 2022, and gross profit margin of 44.9% was up 2.0 percentage points compared to the full year of 2022. These improvements were primarily driven by pricing increases in 2022 and 2023, partially offset by lower volumes and higher inventory losses. Selling and marketing expenses were $62.3 million, or 37.4%, of net sales in the full year of 2023 compared to $52.9 million, or 32.4%, of net sales in the full year of 2022. The increase was primarily due to higher freight and warehousing costs associated with the short-term supply chain logistics challenges in the third and fourth quarters of 2023. General and administrative expenses were $31.5 million, or 18.9%, of net sales in the full year of 2023 compared to $36.8 million, or 22.5%, of net sales in the full year of 2022. The decrease was primarily due to a $2.6 million decrease in employee-related costs, and $2.8 million decrease driven by cost productivity initiatives. Equity-based compensation, a non-cash expense, was $8.3 million in the full year of 2023, compared to $26.9 million in the full year of 2022. The decrease of $18.6 million was primarily driven by $11.2 million of lower equity-based compensation expense due to the acceleration of vesting of RSU awards upon retirement of senior management employees during 2022, $5.9 million of expense related to the accelerated method of expense recognition on certain equity awards issued in connection with the Company’s IPO in 2021, and $2.7 million related to RSU and restricted phantom stock awards that vested over six months following the IPO in the prior year, partially offset by equity-based compensation expense related to new equity awards granted. Net loss for the full year of 2023 was $28.3 million, compared to net loss of $47.6 million in the full year of 2022. Loss per share for the full year of 2023 was $0.41 per diluted share to Zevia’s Class A Common stockholders, compared to loss per share of $0.81 in the full year of 2022. Adjusted EBITDA loss was $19.0 million in the full year of 2023, compared to an Adjusted EBITDA loss of $19.6 million in the full year of 2022. Adjusted EBITDA is a non-GAAP financial measure. See the supplementary schedules in this press release for a discussion of how we define and calculate this measure and a reconciliation thereof to the most directly comparable GAAP measure. Balance Sheet and Cash Flows As of December 31, 2023, the Company had $32.0 million in cash and cash equivalents and no outstanding debt, as well as an unused credit line of $20 million. Guidance The Company expects net sales for the first quarter of 2024 to be in the range of $38 million to $40 million. Webcast The Company will host a conference call today at 8:30 a.m. Eastern Time to discuss this earnings release. Investors and other interested parties may listen to the webcast of the conference call by logging on via the Investor Relations section of Zevia’s website at https://investors.zevia.com/ or directly here. A replay of the webcast will be available for approximately thirty (30) days following the call. Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words such as “anticipate,” “believe,” “consider,” “contemplate,” “continue,” “could,’” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “on track,” “outlook,” “plan,” “potential,” “predict,” “project,” pursue,” “seek,” “should,” “target,” “will,” “would,” or the negative of these words or other similar words, terms or expressions with similar meanings. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements contained in this press release relate to, among other things, statements regarding 2024 Guidance and anticipated growth and distribution expansion, future results of operations or financial condition, strategic direction, plans and objectives of management for future operations, branding, operating environment, distribution, velocity, pricing and costs. Forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties, including, but not limited to, the ability to develop and maintain our brand, our ability to successfully execute on our rebranding strategy and to compete effectively, cost reduction initiatives, our ability to maintain supply chain service levels and any disruption of our supply chain, product demand, changes in the retail landscape or in sales to any key customer; change in consumer preferences, pricing factors, our ability to manage changes in our workforce, future cyber incidents and other disruptions to our information systems, failure to comply with personal data protection and privacy laws, the impact of inflation on our sales growth and cost structure such as increased commodity, packaging, transportation and freight, warehouse, labor and other input costs and other economic conditions, our reliance on contract manufacturers and service providers, competitive and governmental factors outside of our control, such as pandemics or epidemics, adverse global macroeconomic conditions, including relatively high interest rates, instability in financial institutions and a recessionary environment, any potential shutdown of the U.S. government, and geopolitical events or conflicts, including the military conflicts in Ukraine and the Middle East and trade tensions between the U.S. and China, failure to adequately protect our intellectual property rights or infringement on intellectual property rights of others, potential liabilities and costs from litigation, claims, legal or regulatory proceedings, inquiries or investigations, that may cause our business, strategy or actual results to differ materially from the forward-looking statements. We do not intend and undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. Investors are referred to our filings with the U.S. Securities and Exchange Commission for additional information regarding the risks and uncertainties that may cause actual results to differ materially from those expressed in any forward-looking statement. About Zevia Zevia PBC, a Delaware public benefit corporation designated as a “Certified B Corporation,” is focused on addressing the global health challenges resulting from excess sugar consumption by offering a broad portfolio of zero sugar, zero calorie, naturally sweetened beverages. All Zevia® beverages are made with a handful of simple, plant-based ingredients, contain no artificial sweeteners, and are Non-GMO Project verified, gluten-free, Kosher, vegan and zero sodium. Zevia is distributed in more than 34,000 retail locations in the U.S. and Canada through a diverse network of major retailers in the food, drug, warehouse club, mass, natural and ecommerce channels. (ZEVIA-F) ZEVIA PBC CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) (in thousands, except share and per share amounts) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Net sales $ 37,794 $ 35,366 $ 166,424 $ 163,181 Cost of goods sold 22,405 19,713 91,666 93,160 Gross profit 15,389 15,653 74,758 70,021 Operating expenses: Selling and marketing 13,845 10,025 62,312 52,869 General and administrative 8,393 8,536 31,495 36,793 Equity-based compensation 1,665 3,099 8,279 26,880 Depreciation and amortization 381 342 1,615 1,347 Total operating expenses 24,284 22,002 103,701 117,889 Loss from operations (8,895 ) (6,349 ) (28,943 ) (47,868 ) Other (expense) income, net (235 ) 222 673 286 Loss before income taxes (9,130 ) (6,127 ) (28,270 ) (47,582 ) Provision for income taxes 21 43 52 65 Net loss and comprehensive loss (9,151 ) (6,170 ) (28,322 ) (47,647 ) Loss attributable to noncontrolling interest 1,896 1,785 6,828 13,790 Net loss attributable to Zevia PBC $ (7,255 ) $ (4,385 ) $ (21,494 ) $ (33,857 ) Net loss per share attributable to common stockholders Basic $ (0.14 ) $ (0.09 ) $ (0.41 ) $ (0.81 ) Diluted $ (0.14 ) $ (0.09 ) $ (0.41 ) $ (0.81 ) Weighted average common shares outstanding Basic 52,220,804 47,368,849 50,618,758 43,469,383 Diluted 52,220,804 47,368,849 50,618,758 43,469,383 ZEVIA PBC CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands) December 31, 2023 December 31, 2022 ASSETS Current assets: Cash and cash equivalents $ 31,955 $ 47,399 Accounts receivable, net 11,119 11,077 Inventories 34,550 27,576 Prepaid expenses and other current assets 5,063 2,607 Total current assets 82,687 88,659 Property and equipment, net 2,109 4,641 Right-of-use assets under operating leases, net 1,959 708 Intangible assets, net 3,523 4,385 Other non-current assets 579 539 Total assets $ 90,857 $ 98,932 LIABILITIES AND EQUITY Current liabilities: Accounts payable 21,169 $ 8,023 Accrued expenses and other current liabilities 5,973 8,408 Current portion of operating lease liabilities 575 715 Total current liabilities 27,717 17,146 Operating lease liabilities, net of current portion 1,373 — Total liabilities 29,090 17,146 Stockholders’ equity Class A common stock 54 48 Class B common stock 17 22 Additional paid-in capital 191,144 189,724 Accumulated deficit (101,337 ) (79,843 ) Total Zevia PBC stockholders’ equity 89,878 109,951 Noncontrolling interests (28,111 ) (28,165 ) Total equity 61,767 81,786 Total liabilities and equity $ 90,857 $ 98,932 ZEVIA PBC CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) Year Ended December 31, 2023 2022 Operating activities: Net loss $ (28,322 ) $ (47,647 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Non-cash lease expense 567 653 Depreciation and amortization 1,615 1,347 Loss on disposal of property, equipment and software, net 480 3 Amortization of debt issuance cost 76 64 Equity-based compensation 8,279 26,880 Changes in operating assets and liabilities: Accounts receivable, net (42 ) (2,030 ) Inventories (6,974 ) 3,925 Prepaid expenses and other assets (2,573 ) 846 Accounts payable 13,640 (5,850 ) Accrued expenses and other current liabilities (2,435 ) 1,703 Operating lease liabilities (585 ) (672 ) Net cash used in operating activities (16,274 ) (20,778 ) Investing activities: Proceeds from maturities of short-term investments — 30,000 Purchases of property, equipment and software (1,624 ) (2,593 ) Proceeds from sales of property and equipment 2,429 — Net cash provided by investing activities 805 27,407 Financing activities: Payment of debt issuance costs — (334 ) Minimum tax withholding paid on behalf of employees for net share settlement — (2,130 ) Proceeds from exercise of stock options 25 124 Net cash provided by (used in) financing activities 25 (2,340 ) Net change from operating, investing, and financing activities (15,444 ) 4,289 Cash and cash equivalents at beginning of period 47,399 43,110 Cash and cash equivalents at end of period $ 31,955 $ 47,399 Use of Non-GAAP Financial Information We use Adjusted EBITDA, a financial measure that is not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company’s management believes that Adjusted EBITDA, when taken together with our financial results presented in accordance with GAAP, provides meaningful supplemental information regarding our operating performance and facilitates internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of Adjusted EBITDA is helpful to our investors as it is a measure used by management in assessing the health of our business, determining incentive compensation and evaluating our operating performance, as well as for internal planning and forecasting purposes. We calculate Adjusted EBITDA as net income (loss) adjusted to exclude: (1) other income (expense), net, which includes interest (income) expense, foreign currency (gains) losses, and (gains) losses on disposal of fixed assets, (2) provision (benefit) for income taxes, (3) depreciation and amortization, and (4) equity-based compensation. Also, Adjusted EBITDA may in the future be adjusted for amounts impacting net income related to the Tax Receivable Agreement liability and other infrequent and unusual transactions. Adjusted EBITDA is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of the limitations of Adjusted EBITDA include that (1) it does not properly reflect capital commitments to be paid in the future, (2) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA does not reflect these capital expenditures, (3) it does not consider the impact of equity-based compensation expense, including the potential dilutive impact thereof, and (4) it does not reflect other non-operating expenses, including interest (income) expense, foreign currency (gains) losses and (gains) losses on disposal of fixed assets. In addition, our use of Adjusted EBITDA may not be comparable to similarly titled measures of other companies because they may not calculate Adjusted EBITDA in the same manner, limiting its usefulness as comparative measures. Because of these limitations, when evaluating our performance, you should consider Adjusted EBITDA alongside other financial measures, including our net loss or income and other results stated in accordance with GAAP. The following table presents a reconciliation of net loss, the most directly comparable financial measure stated in accordance with GAAP, to Adjusted EBITDA for the periods presented: Three Months Ended December 31, Year Ended December 31, (in thousands) 2023 2022 2023 2022 Net loss and comprehensive loss $ (9,151 ) $ (6,170 ) $ (28,322 ) $ (47,647 ) Other expense (income), net* 235 (222 ) (673 ) (286 ) Provision for income taxes 21 43 52 65 Depreciation and amortization 381 342 1,615 1,347 Equity-based compensation 1,665 3,099 8,279 26,880 Adjusted EBITDA $ (6,849 ) $ (2,908 ) $ (19,049 ) $ (19,641 ) * Includes interest (income) expense, foreign currency (gains) losses, and (gains) losses on disposal of fixed assets. View source version on businesswire.com: https://www.businesswire.com/news/home/20240227272707/en/Contacts Media Annie Thompson Edelman Smithfield 713-299-4115 Annie.Thompson@edelmansmithfield.com Investors Greg Davis Zevia PBC 424-343-2654 Gregory@zevia.com Reed Anderson ICR 646-277-1260 Reed.Anderson@icrinc.com
Zevia PBC (“Zevia” or the “Company”) (NYSE: ZVIA), the company bringing great tasting, zero sugar beverages made with simple, plant-based ingredients across all usage occasions to households across income levels, today reported results for the fourth quarter and fiscal year ended December 31, 2023. Fourth Quarter 2023 Highlights Net sales increased 6.9% year over year to $37.8 million, returning to growth Unit volume increased 3.7% year over year to 2.8 million equivalized cases Gross profit margin was 40.7%, down 3.6 percentage points year over year, primarily driven by inventory losses while accelerating our supply chain transition Net loss was $9.2 million, including $1.7 million of non-cash equity-based compensation expense Adjusted EBITDA loss was $6.8 million(1) Loss per share was $0.14 per diluted share to Zevia’s Class A Common stockholders Full Year 2023 Highlights Net sales increased 2.0% year over year to $166.4 million, reflecting the impact of short-term supply chain disruptions encountered during the year Unit volume decreased 6.9% year over year to 12.7 million equivalized cases Gross profit margin was 44.9%, up 2.0 percentage points year over year Net loss was $28.3 million, including $8.3 million of non-cash equity-based compensation expense Adjusted EBITDA loss was $19.0 million(1) Loss per share was $0.41 per diluted share to Zevia’s Class A Common stockholders (1) Adjusted EBITDA is a non-GAAP financial measure. See the supplementary schedules in this press release for a discussion of how we define and calculate this measure and a reconciliation thereof to the most directly comparable GAAP measure. “Our fourth quarter volume growth reflects continued underlying consumer demand, a healthy business within our core customer base and exciting growth levels with developing customers,” said Amy Taylor, President and Chief Executive Officer. “We enter 2024 on a strong foundation, with a stable and scalable supply chain and the brand refresh fully in market. Our liquidity position and gross margins allow us to invest in growth amid tailwinds from consumer trends, building on our position as the number one consumer choice among natural beverages.” “We continue to expect top-line acceleration for the full year of 2024 from a mix of volume and price, and gains in household penetration as we execute key initiatives to drive distribution expansion.” Taylor continued. “This includes Zevia’s route-to-market evolution, and an initial expansion into the convenience channel.” Fourth Quarter 2023 Results Net sales increased 6.9% to $37.8 million in the fourth quarter of 2023 compared to $35.4 million in the fourth quarter of 2022, driven by higher price realizations and volumes that increased 3.7%. Gross profit decreased 1.7% to $15.4 million in the fourth quarter of 2023 compared to $15.7 million in the fourth quarter of 2022, and gross profit margin of 40.7% was down 3.6 percentage points compared to the fourth quarter of 2022. The decline in gross profit margin was driven by the decision made in the latter half of the quarter relating to the brand refresh, SKUs optimization, and procurement changes which led to inventory losses. Selling and marketing expenses were $13.8 million, or 36.6%, of net sales in the fourth quarter of 2023 compared to $10.0 million, or 28.3%, of net sales in the fourth quarter of 2022. The increase was primarily due to higher freight and freight transfer costs related to the short-term supply chain logistics challenges in 2023 which have been remediated, and higher warehousing costs as we continued to manage our inventory back to optimal levels. General and administrative expenses were $8.4 million, or 22.2%, of net sales in the fourth quarter of 2023 compared to $8.5 million, or 24.1%, of net sales in the fourth quarter of 2022. Equity-based compensation, a non-cash expense, was $1.7 million in the fourth quarter of 2023, compared to $3.1 million in the fourth quarter of 2022. The decrease of $1.4 million was largely due to the accelerated method of expense recognition on certain equity awards issued in connection with the Company’s IPO in 2021, partially offset by equity-based compensation expense related to new equity awards granted. Net loss for the fourth quarter of 2023 was $9.2 million, compared to net loss of $6.2 million in the fourth quarter of 2022. Loss per share for the fourth quarter of 2023 was $0.14 per diluted share to Zevia’s Class A Common stockholders, compared to loss per share of $0.09 in the fourth quarter of 2022. Adjusted EBITDA loss was $6.8 million in the fourth quarter of 2023, compared to an Adjusted EBITDA loss of $2.9 million in the fourth quarter of 2022. Adjusted EBITDA is a non-GAAP financial measure. See the supplementary schedules in this press release for a discussion of how we define and calculate this measure and a reconciliation thereof to the most directly comparable GAAP measure. Full Year 2023 Results Net sales increased 2.0% to $166.4 million in the full year of 2023 compared to $163.2 million in the full year of 2022, primarily driven by higher price realizations which were partially offset by a decrease in volumes due to short-term logistics challenges in the midst of a supply chain transition. Gross profit increased 6.8% to $74.8 million in the full year of 2023 compared to $70.0 million in the full year of 2022, and gross profit margin of 44.9% was up 2.0 percentage points compared to the full year of 2022. These improvements were primarily driven by pricing increases in 2022 and 2023, partially offset by lower volumes and higher inventory losses. Selling and marketing expenses were $62.3 million, or 37.4%, of net sales in the full year of 2023 compared to $52.9 million, or 32.4%, of net sales in the full year of 2022. The increase was primarily due to higher freight and warehousing costs associated with the short-term supply chain logistics challenges in the third and fourth quarters of 2023. General and administrative expenses were $31.5 million, or 18.9%, of net sales in the full year of 2023 compared to $36.8 million, or 22.5%, of net sales in the full year of 2022. The decrease was primarily due to a $2.6 million decrease in employee-related costs, and $2.8 million decrease driven by cost productivity initiatives. Equity-based compensation, a non-cash expense, was $8.3 million in the full year of 2023, compared to $26.9 million in the full year of 2022. The decrease of $18.6 million was primarily driven by $11.2 million of lower equity-based compensation expense due to the acceleration of vesting of RSU awards upon retirement of senior management employees during 2022, $5.9 million of expense related to the accelerated method of expense recognition on certain equity awards issued in connection with the Company’s IPO in 2021, and $2.7 million related to RSU and restricted phantom stock awards that vested over six months following the IPO in the prior year, partially offset by equity-based compensation expense related to new equity awards granted. Net loss for the full year of 2023 was $28.3 million, compared to net loss of $47.6 million in the full year of 2022. Loss per share for the full year of 2023 was $0.41 per diluted share to Zevia’s Class A Common stockholders, compared to loss per share of $0.81 in the full year of 2022. Adjusted EBITDA loss was $19.0 million in the full year of 2023, compared to an Adjusted EBITDA loss of $19.6 million in the full year of 2022. Adjusted EBITDA is a non-GAAP financial measure. See the supplementary schedules in this press release for a discussion of how we define and calculate this measure and a reconciliation thereof to the most directly comparable GAAP measure. Balance Sheet and Cash Flows As of December 31, 2023, the Company had $32.0 million in cash and cash equivalents and no outstanding debt, as well as an unused credit line of $20 million. Guidance The Company expects net sales for the first quarter of 2024 to be in the range of $38 million to $40 million. Webcast The Company will host a conference call today at 8:30 a.m. Eastern Time to discuss this earnings release. Investors and other interested parties may listen to the webcast of the conference call by logging on via the Investor Relations section of Zevia’s website at https://investors.zevia.com/ or directly here. A replay of the webcast will be available for approximately thirty (30) days following the call. Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words such as “anticipate,” “believe,” “consider,” “contemplate,” “continue,” “could,’” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “on track,” “outlook,” “plan,” “potential,” “predict,” “project,” pursue,” “seek,” “should,” “target,” “will,” “would,” or the negative of these words or other similar words, terms or expressions with similar meanings. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements contained in this press release relate to, among other things, statements regarding 2024 Guidance and anticipated growth and distribution expansion, future results of operations or financial condition, strategic direction, plans and objectives of management for future operations, branding, operating environment, distribution, velocity, pricing and costs. Forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties, including, but not limited to, the ability to develop and maintain our brand, our ability to successfully execute on our rebranding strategy and to compete effectively, cost reduction initiatives, our ability to maintain supply chain service levels and any disruption of our supply chain, product demand, changes in the retail landscape or in sales to any key customer; change in consumer preferences, pricing factors, our ability to manage changes in our workforce, future cyber incidents and other disruptions to our information systems, failure to comply with personal data protection and privacy laws, the impact of inflation on our sales growth and cost structure such as increased commodity, packaging, transportation and freight, warehouse, labor and other input costs and other economic conditions, our reliance on contract manufacturers and service providers, competitive and governmental factors outside of our control, such as pandemics or epidemics, adverse global macroeconomic conditions, including relatively high interest rates, instability in financial institutions and a recessionary environment, any potential shutdown of the U.S. government, and geopolitical events or conflicts, including the military conflicts in Ukraine and the Middle East and trade tensions between the U.S. and China, failure to adequately protect our intellectual property rights or infringement on intellectual property rights of others, potential liabilities and costs from litigation, claims, legal or regulatory proceedings, inquiries or investigations, that may cause our business, strategy or actual results to differ materially from the forward-looking statements. We do not intend and undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. Investors are referred to our filings with the U.S. Securities and Exchange Commission for additional information regarding the risks and uncertainties that may cause actual results to differ materially from those expressed in any forward-looking statement. About Zevia Zevia PBC, a Delaware public benefit corporation designated as a “Certified B Corporation,” is focused on addressing the global health challenges resulting from excess sugar consumption by offering a broad portfolio of zero sugar, zero calorie, naturally sweetened beverages. All Zevia® beverages are made with a handful of simple, plant-based ingredients, contain no artificial sweeteners, and are Non-GMO Project verified, gluten-free, Kosher, vegan and zero sodium. Zevia is distributed in more than 34,000 retail locations in the U.S. and Canada through a diverse network of major retailers in the food, drug, warehouse club, mass, natural and ecommerce channels. (ZEVIA-F) ZEVIA PBC CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) (in thousands, except share and per share amounts) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Net sales $ 37,794 $ 35,366 $ 166,424 $ 163,181 Cost of goods sold 22,405 19,713 91,666 93,160 Gross profit 15,389 15,653 74,758 70,021 Operating expenses: Selling and marketing 13,845 10,025 62,312 52,869 General and administrative 8,393 8,536 31,495 36,793 Equity-based compensation 1,665 3,099 8,279 26,880 Depreciation and amortization 381 342 1,615 1,347 Total operating expenses 24,284 22,002 103,701 117,889 Loss from operations (8,895 ) (6,349 ) (28,943 ) (47,868 ) Other (expense) income, net (235 ) 222 673 286 Loss before income taxes (9,130 ) (6,127 ) (28,270 ) (47,582 ) Provision for income taxes 21 43 52 65 Net loss and comprehensive loss (9,151 ) (6,170 ) (28,322 ) (47,647 ) Loss attributable to noncontrolling interest 1,896 1,785 6,828 13,790 Net loss attributable to Zevia PBC $ (7,255 ) $ (4,385 ) $ (21,494 ) $ (33,857 ) Net loss per share attributable to common stockholders Basic $ (0.14 ) $ (0.09 ) $ (0.41 ) $ (0.81 ) Diluted $ (0.14 ) $ (0.09 ) $ (0.41 ) $ (0.81 ) Weighted average common shares outstanding Basic 52,220,804 47,368,849 50,618,758 43,469,383 Diluted 52,220,804 47,368,849 50,618,758 43,469,383 ZEVIA PBC CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands) December 31, 2023 December 31, 2022 ASSETS Current assets: Cash and cash equivalents $ 31,955 $ 47,399 Accounts receivable, net 11,119 11,077 Inventories 34,550 27,576 Prepaid expenses and other current assets 5,063 2,607 Total current assets 82,687 88,659 Property and equipment, net 2,109 4,641 Right-of-use assets under operating leases, net 1,959 708 Intangible assets, net 3,523 4,385 Other non-current assets 579 539 Total assets $ 90,857 $ 98,932 LIABILITIES AND EQUITY Current liabilities: Accounts payable 21,169 $ 8,023 Accrued expenses and other current liabilities 5,973 8,408 Current portion of operating lease liabilities 575 715 Total current liabilities 27,717 17,146 Operating lease liabilities, net of current portion 1,373 — Total liabilities 29,090 17,146 Stockholders’ equity Class A common stock 54 48 Class B common stock 17 22 Additional paid-in capital 191,144 189,724 Accumulated deficit (101,337 ) (79,843 ) Total Zevia PBC stockholders’ equity 89,878 109,951 Noncontrolling interests (28,111 ) (28,165 ) Total equity 61,767 81,786 Total liabilities and equity $ 90,857 $ 98,932 ZEVIA PBC CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) Year Ended December 31, 2023 2022 Operating activities: Net loss $ (28,322 ) $ (47,647 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Non-cash lease expense 567 653 Depreciation and amortization 1,615 1,347 Loss on disposal of property, equipment and software, net 480 3 Amortization of debt issuance cost 76 64 Equity-based compensation 8,279 26,880 Changes in operating assets and liabilities: Accounts receivable, net (42 ) (2,030 ) Inventories (6,974 ) 3,925 Prepaid expenses and other assets (2,573 ) 846 Accounts payable 13,640 (5,850 ) Accrued expenses and other current liabilities (2,435 ) 1,703 Operating lease liabilities (585 ) (672 ) Net cash used in operating activities (16,274 ) (20,778 ) Investing activities: Proceeds from maturities of short-term investments — 30,000 Purchases of property, equipment and software (1,624 ) (2,593 ) Proceeds from sales of property and equipment 2,429 — Net cash provided by investing activities 805 27,407 Financing activities: Payment of debt issuance costs — (334 ) Minimum tax withholding paid on behalf of employees for net share settlement — (2,130 ) Proceeds from exercise of stock options 25 124 Net cash provided by (used in) financing activities 25 (2,340 ) Net change from operating, investing, and financing activities (15,444 ) 4,289 Cash and cash equivalents at beginning of period 47,399 43,110 Cash and cash equivalents at end of period $ 31,955 $ 47,399 Use of Non-GAAP Financial Information We use Adjusted EBITDA, a financial measure that is not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company’s management believes that Adjusted EBITDA, when taken together with our financial results presented in accordance with GAAP, provides meaningful supplemental information regarding our operating performance and facilitates internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of Adjusted EBITDA is helpful to our investors as it is a measure used by management in assessing the health of our business, determining incentive compensation and evaluating our operating performance, as well as for internal planning and forecasting purposes. We calculate Adjusted EBITDA as net income (loss) adjusted to exclude: (1) other income (expense), net, which includes interest (income) expense, foreign currency (gains) losses, and (gains) losses on disposal of fixed assets, (2) provision (benefit) for income taxes, (3) depreciation and amortization, and (4) equity-based compensation. Also, Adjusted EBITDA may in the future be adjusted for amounts impacting net income related to the Tax Receivable Agreement liability and other infrequent and unusual transactions. Adjusted EBITDA is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of the limitations of Adjusted EBITDA include that (1) it does not properly reflect capital commitments to be paid in the future, (2) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA does not reflect these capital expenditures, (3) it does not consider the impact of equity-based compensation expense, including the potential dilutive impact thereof, and (4) it does not reflect other non-operating expenses, including interest (income) expense, foreign currency (gains) losses and (gains) losses on disposal of fixed assets. In addition, our use of Adjusted EBITDA may not be comparable to similarly titled measures of other companies because they may not calculate Adjusted EBITDA in the same manner, limiting its usefulness as comparative measures. Because of these limitations, when evaluating our performance, you should consider Adjusted EBITDA alongside other financial measures, including our net loss or income and other results stated in accordance with GAAP. The following table presents a reconciliation of net loss, the most directly comparable financial measure stated in accordance with GAAP, to Adjusted EBITDA for the periods presented: Three Months Ended December 31, Year Ended December 31, (in thousands) 2023 2022 2023 2022 Net loss and comprehensive loss $ (9,151 ) $ (6,170 ) $ (28,322 ) $ (47,647 ) Other expense (income), net* 235 (222 ) (673 ) (286 ) Provision for income taxes 21 43 52 65 Depreciation and amortization 381 342 1,615 1,347 Equity-based compensation 1,665 3,099 8,279 26,880 Adjusted EBITDA $ (6,849 ) $ (2,908 ) $ (19,049 ) $ (19,641 ) * Includes interest (income) expense, foreign currency (gains) losses, and (gains) losses on disposal of fixed assets. View source version on businesswire.com: https://www.businesswire.com/news/home/20240227272707/en/
Media Annie Thompson Edelman Smithfield 713-299-4115 Annie.Thompson@edelmansmithfield.com Investors Greg Davis Zevia PBC 424-343-2654 Gregory@zevia.com Reed Anderson ICR 646-277-1260 Reed.Anderson@icrinc.com