On November 14, 2024, Reed’s, Inc. (NYSE: REED), a Delaware corporation, disclosed its financial outcomes for the three months ended September 30, 2024, in a press release. The company acknowledges a conference call at 8:30 a.m. Eastern time on the same day to further discuss the results. Reed’s highlights its strengthened liquidity position through a new $10 million credit facility and the assumption of secured notes by the majority stockholder, D&D Source of Life Holding LTD.
Financially, Reed’s reported the following Q3 2024 highlights compared to Q3 2023:
– Net sales: $6.8 million (down from $11.9 million)
– Gross profit: $1.2 million (down from $4.0 million)
– Operating loss: $3.1 million (compared to a $0.1 million profit)
– Modified EBITDA: $(3.0) million (compared to $0.2 million)
On October 23, 2024, D&D bought all secured notes from Whitebox Advisors, LLC, and Reed’s is set to close a $10 million revolving credit facility with Whitebox on November 14, 2024.
Management Commentary:
Norman E. Snyder, Jr., the CEO of Reed’s, expressed optimism regarding the company’s strides to improve its financial standing and liquidity. The acquisition of outstanding note obligations by the majority stockholder along with the new funding signifies trust in Reed’s potential.
Financial Overview:
During Q3 2024, net sales declined due to credit terms and reduced collateral affecting raw material purchases. Operating costs were impacted by increased expenses, resulting in an operating loss of $3.1 million. The company reported improved cash flow from operating activities compared to the prior year.
Outlook and Disclosure:
Due to inventory challenges faced so far, Reed’s retracted its previously issued FY 2024 outlook. The information provided, including the attached exhibit 99.1, is furnished to the Securities and Exchange Commission and is not subject to liabilities or deemed as “filed.”
Reed’s will host a conference call on November 14, 2024, to deliberate on its Q3 results. Interested parties can access the call via the provided details. The call will also be available for replay on the company’s investor relations website.
Investors seeking additional information can contact Elevate IR at [email protected] or (720) 330-2829.
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This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Reed’s’s 8K filing here.
About Reed’s
Reed's, Inc engages in the manufacture and distribution of natural beverages in the United States. The company offers Reed's craft ginger beer; Reed's real ginger ales; Reed's Classic Mules; Reed's Hard Ginger Ale; Reed's ready to drink products; and Virgil's handcrafted sodas.
