38% Growth in Retail Dollar Sales
Sequential Improvement and Best Quarter Ever in Terms of Adjusted EBITDA Loss
Authorizes 1-for-15 Reverse Stock Split Effective
Preliminary Second Quarter Results1 and Retail Data
The Company’s preliminary estimates for net revenue will be within a range of
The Company anticipates reporting greatly improved gross margins year-over-year as a result of pricing, product mix, and productivity; however, a slight decrease in gross margins on a sequential basis is expected for the quarter.
Based on the information currently available, the Company estimates that its Adjusted EBITDA Loss3 will be within a range of
“As the actions we’ve taken to improve our financial outcomes become realized, we will continue to carefully manage our liquidity position. We anticipate that the progress made, as supported by the retail metrics, will help to deliver our future growth initiatives and expectations. Sales growth paired with our rationalized cost structure and productivity agenda creates operating leverage and positions us to deliver a profitable, sustainable business over time,”
1 These estimates represent the most current information available to management and could change. Our second quarter financial closing and financial statement preparation process has not been completed. As a result, our actual financial results could be different, and those differences could be material.
2 4-week SPINS data as of
3 Adjusted EBITDA Loss is a non-GAAP financial measure. See the section titled “Non-GAAP Financial Information” at the end of this press release.
1-for-15 Reverse Stock Split
The Company will affect a reverse stock split of its outstanding shares of Class A and Class V common stock at a ratio of 1-for-15, to be effective as of
The Company’s Class A common stock will begin trading on a reverse stock split-adjusted basis at the opening of the Nasdaq Capital Market on
No fractional shares will be issued in connection with the reverse stock split. Stockholders of record who otherwise would be entitled to receive fractional shares will be entitled to an amount in cash (without interest or deduction) equal to the fraction of one share to which such stockholder would otherwise be entitled multiplied by the closing price of the Company’s Class A common stock on Nasdaq on
Stockholders who are holding their shares in electronic form at brokerage firms or with the Company’s transfer agent (
The Reverse Stock Split did not impact the number of authorized shares of Class A common stock. In light of the limited purpose of the Class V common stock, the Company will reduce the number of authorized shares of Class V common stock from 200 million to 15 million (and will correspondingly reduce the total authorized shares by such amount).
As of
About
Stryve is a premium air-dried meat snack company that is conquering the intersection of high protein, great taste, and health under the brands of Braaitime, Kalahari, Stryve, and Vacadillos is a healthy snacking and food company that manufactures, markets and sells highly differentiated healthy snacking and food products that is planned to disrupt traditional snacking and CPG categories. Stryve’s mission is “to help Americans eat better and live happier, better lives.” Stryve offers convenient products that are lower in sugar and carbohydrates and higher in protein than other snacks and foods. Stryve’s current product portfolio consists primarily of air-dried meat snack products marketed under the Stryve®, Kalahari®, Braaitime®, and Vacadillos® brand names. Unlike beef jerky, Stryve’s all-natural air-dried meat snack products are made of beef and spices, are never cooked, contain zero grams of sugar*, and are free of monosodium glutamate (MSG), gluten, nitrates, nitrites, and preservatives. As a result, Stryve’s products are Keto and Paleo diet friendly. Further, based on protein density and sugar content, Stryve believes that its air-dried meat snack products are some of the healthiest shelf-stable snacks available today. Stryve also markets and sells human-grade pet treats under the brand Two Tails, made with simple, all-natural ingredients and 100% real beef with no fillers, preservatives, or by-products.
Stryve distributes its products in major retail channels, primarily in
* All Stryve air-dried products contain zero grams of added sugar, with the exception of the Chipotle Honey flavor of Vacadillos, which contains one gram of sugar per serving.
Cautionary Note Regarding Forward-Looking Statements
Certain statements made herein are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “anticipate”, “may”, “will”, “would”, “could”, “intend”, “aim”, “believe”, “anticipate”, “continue”, “target”, “milestone”, “expect”, “estimate”, “plan”, “outlook”, “objective”, “guidance” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters, including, but not limited to, statements regarding Stryve’s expected results for the second quarter of 2023 and the year ended
Non-GAAP Financial Information
Stryve uses non-GAAP financial information and believes it is useful to investors as it provides additional information to facilitate comparisons of historical operating results, identify trends in operating results, and provide additional insight on how the management team evaluates the business. Stryve’s management team uses Adjusted EBITDA to make operating and strategic decisions, evaluate performance and comply with indebtedness related reporting requirements. The Company defines Adjusted EBITDA Loss as Net Loss before Interest Expense, Income Tax Expense, and Depreciation and Amortization Expense as further adjusted for stock-based compensation expense. Stryve believes this non-GAAP measure should be considered along with net income (loss), the most closely related GAAP financial measure. The Company has not reconciled non-GAAP Adjusted EBITDA Loss to net income (loss) in this press release because the Company does not provide guidance for amortization expense, depreciation expense, stock-based compensation expense or interest expense as we are unable to quantify certain of these amounts that would be required to be included in the GAAP measure without unreasonable efforts as of the date of this release. In addition, the Company believes such reconciliations would imply a degree of precision at this time that could be confusing or misleading to investors.
Investor Relations Contact:
Three
smartin@threepa.com or pkupper@threepa.com
214-616-2207 or 817-368-2556
Source:
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