Q2 Revenue Grows +26% to $8.135M Second Quarter Highlights:
- Revenue increased in Q2 over Q1 2021 by 26% to $8.135 million.
- Adjusted EBITDA of approximately $184,000.
- Filling volume increased in the second quarter of fiscal 2021 by 50% over Q1 2021.
- Decorating volume increased in the second quarter of fiscal 2021 by 5% over Q1 2021.
- Completed public listing on May 17, 2021, raising $8.32 million, resulting in listing expenses of $748,253.
- Raised $15.20 million through a public offering of 4-year term, maturing June 30, 2025, 8% senior unsecured convertible debenture units.
VANCOUVER, BC, Aug. 30, 2021 /CNW/ - Wildpack Beverage Inc. (TSXV: CANS) ("Wildpack" or the "Company") announces unaudited financial results for the second quarter ending June 30, 2021. All currencies references herein are to US dollars. Wildpack reported revenue of $8.135 million, positive Adjusted EBITDA of approximately $184,000, listing expenses of $748,253, and a net loss of $2.038 million.
Revenue was driven by filling and decorating capacity improvements. Filling and decorating volumes increase by 50% and 5% respectively in the second quarter, outperforming management's internal key performance indicators.
In our Filling Division, in Las Vegas, we completed phase one of our four-phase expansion approach, and initiated phase two, targeted to completed in early September 2021. Upon completion of phase four, the facility is expected to have a monthly production capacity of 300,000 gallons. In Baltimore, phases one and two, previously described in the Wildpack Beverage Inc. First Quarter Fiscal 2021 MD&A, have been completed. Management has decided to spend resources expanding the geographic footprint versus increasing production capacity in Baltimore as a near term goal, future expansion plans are being evaluated and communicated in the future.
In our Decorating Division, the Company has continued expansion progress toward adding a second decorating line both in the Baltimore and Georgia facilities, installing the first decorating line in the Las Vegas facility, and upgrading conveyance on the first decorating line in Baltimore. All expansion projects remain on schedule and on budget.
Chuck Zadlo, COO commented "We are pleased with our operating results to date. In Q2, our decorating lines enjoyed record single shift, single day, and weekly production numbers. We look forward to our continued growth through strategic mergers and acquisitions as well as operational capability improvements."
During the three months ended June 30, 2021, the Company raised $8.32 million in equity and $15.20 million in convertible debentures. The debentures are unsecured, bear 8% interest only payments payable quarterly, convertible into common shares and matures on June 30, 2025. Part of the financing proceeds were used in the July 2, 2021 transaction to wholly acquire CraftPAC LLC in Georgia, USA, and the August 20, 2021 transaction to wholly acquire Vertical Distilling, LLC in Colorado, USA.
"The equity and debenture raises completed in Q2 2021 put the Company in a strong financial position to achieve its growth targets for 2021," commented CFO Ryan Mason. "Quarterly revenue growth of 26% and positive Adjusted EBITDA are important indicators of Wildpack's ability to remain focused on the business' fundamentals of the top and bottom line, while experiencing geographic and production capability growth."
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 an impact on the construction of the second filling line at the Las Vegas facility delaying the project by two months.
This news release should be read in conjunction with the Operating Entity'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 months ended June 30, 2021.