Splash Beverage (SBEV) 22 Aug 242024 Q2 Earnings call transcript

Greetings. Welcome to the Splash Beverage Group Second Quarter Conference Call. [Operator Instructions]. I will now turn the conference over to your host, Robert Nistico, Chairman and CEO of Splash Beverage Group.

You may begin.

much. very you Thank everybody. Hi, for joining you us. Thank This Robert Nistico, CEO Group. Beverage Splash is Marketing call with Julius be Meissner, course, Chief have today, speaking our on our and Also their we of with Ivancsits, respect us individual each well, as and CFO; to and President Officer, will the responsibilities. Bill have he's now, of us for with you lot lot but a been thrilled had a of X only months them. exposure Honestly, haven't to we're to Julius because about the team. to It's been addition a tremendous And has is a truly ever presidents course, Bill, of one number people marketing best for of us with been the years, I've really who with. and worked of

to as you'll into this. a chance and them we hear So get questions ask have from

developments future, to for Today, result means being providing future the we'll discussing performance. insights -- be what the today's key the the word. company's key financial

open have HX here, formal of it informal follow all briefly as We possible. and and basic on for topics done. but know today X We we're we'll web we to then, keep dialogue are. to try questions when they as the QX a And what we're results. portal up have going course,

So we're now, we're way. the year. subject structure back moving key as excited year into half in interested the which and stuff the we're of and strategy, next the year a back Distribution Capital again. about, move forward by super we're the brand forward really into more very and financing important really we how moving as into half update, of

outlook months. course, for financial XX next Of the

inventory which from quarter. liquidity. you sales revenue high to part really will. session. to prevented authorizations Key level compared we've and chain us have right, super to the $X quarter, supporting frankly was the limited XXX% in Qplash if reported just course, is for It of to And The and really for decline light narrative, quarter. on the a million also of talk procuring quarter we'll want that X.X% million first recently. the We mergers our and, last Q&A acquisitions. attributed gotten $X.XX about of brief, We course, of very

going in Net million, this per with all $X.X detail basically little came share address last loss we're in XX% here in at bit. and year $X.XX a QX So to XXXX. in compared great

talk So our and that's here the kind move of about in we mirror. a financing to going rearview We're as lot look forward. liquidity

over bit So now performance of the I'm all turn detailed Julius little more it yours. to going review a to financial Julius and

little I to briefer Robert. into a you, the want just bit dive financials. Thank Okay.

as but our backlog to was of liquidity, line to out denoted, -- the revenue only important to revenue, by brand hair impacted over Qplash of Vino June For was Copa as $XXX,XXX Robert note our $X The also get sales was driven down all that liquidity de and performance from well. the compared at sales ash. prevented for us nominal at a our and the on July. carry enough little wasn't door into from It's that quarter, million orders procuring

demand for was that. strong into brand deeper dive and the So the will Bill

can and which SG&A year. of XX% QX material And XX% in lower period. versus side, our really lower than cost in on than margin from in improve XX% this XX% quarter. in the did by the quarter, in really was gross compared lower to QX. was profit $XXX,XXX And margins On the to QX in our the gross challenges, And prior made raw $XXX We spending, margins from about we the the prior attributable gross quarter. did in our last that million $X.X just did to focus X% actually given million expand we liquidity be prior QX

business, as sales very backfilling our the liquidity, travel marketing who diligent and across on to individuals from board and given I limited through loan spending from left entertainment So managing said, everything attrition. then the was the natural

Just of here. points couple kind with of other further a going couple a

period half EBITDA million. This of was $XXX,XXX for $X.X an was QX the loss actually a what from QX of is improvement XXXX. in of the loss and

compensation a from of net $X net Robert year. previously versus you kind flat So prior at was quarter card noted for the One for QX, million if the the score prior thing loss $XXX,XXX on period. losses improvement actually is and QX stock-based from in

QX. thing solid levels the financials we've consumed. period, $XXX,XXX were the we that. the actively liquidity effectively QX were up kind you our bit, anything nominal procured quarter from immediately tight to for unchanged situation, liabilities last the just now, light Inventory little But a terms prior couple liquidity the at quarter. and managing of down effectively were times with for we this And just from had of period, if The back as that is collections the was of current cash even in was said it of a end

really challenges we we the could we everything that So had. as just effectively with liquidity as worked

can turn commercial distribution the I'll product brand now trends, some over to So wins, it strategies on and development. discuss Bill and we update of

We 'XX. had while shortages to of balance sales the successes results and momentum XXXX Indeed, Julius. the hindered Thanks, numerous our inventory into for commercial build quarter.

and key all was was thing and just stores ] didn't order This several Pennsylvania, significantly authorization products get expanded de only the intensity. those. entertainment up than Extra larger QX were year-over-year. Florida, from orders authorization our One and and has an venues Vino received to convenience higher an Pulpoloco across some states, orders Vino simply greater and is demand XXX by is stores. Chevron's was reason Pulpoloco and demand an World into the parks in Copa from And challenges Virginia across Copa the Sea X states. United I'll that X the de stores, inventory California, across out, measured the Texas. Pulpoloco mile stores for of [ expansion XXXX. in APM received the that states. but Murphy grown The in size funding take one stores chains that States. X,XXX So USA and XXX across de is system, received of XX.X% was coming you convenience Vino through authorization Copa into to

similarly, executed of test Walmart very We We It's Las state to and continue hope expect successful is grow there coverage Colorado And Vegas XX test. expanded Walgreens. in de and all our in with not FPA are were performing launch of stores in performing in able perform the Copa well. This lost we following previously in with a brands were the about vino's test in we a Florida, group stores new that we're that Distribution. Walmart to in and be expand a executed successful launch Walgreens a go called for certainly XX into to to in as a a greater which test. area. Legacy and Tampa, excited We

authorization. Difficulty]. [Technical Salt received an

straight faced So [indiscernible] liquidity of a will really the tequilas. buttress tequila is the go-to just been from perspective, really with the that have meat we into that in the we on inventory. of And a market for half successful and headwinds quarter Blanco, that And second bulk results of year the was the then tequila. despite This puts category the very flavor it us brand. momentum

retailers enthusiastic to ever-growing our our the and distribution remains national of remain network distributors team sales high-quality focused for Our brands come. on and innovation

our turn now to I'll who on will back an provide it Robert, update structure. capital

of the are hands. Thanks, face sit is even there Bill. great stuff. there -- work. -- though Everybody That's this issues, Good serious their in group didn't the message liquidity on

these all virtually things achieved with little money. we So very

we bit in financing minute, staging while ourselves. achieve group ourselves are about we talk a So a able we'll were with quite to organizing the that here

into ton authorization. what money year. It's as can with come December has marketing in start on revenue doing could of yesterday, as job, for of really team and sales it done. a out digging them thank to that and an resources. we amazing when we and applaud limited are starts you in and and into We do next the So as building actually These capitalize really is we roll

So also, position. into people I just got sure so this to happens. it's want how we clear, understand really make it

cash crunches, companies liquidity issues. Sometimes face

had We not came to we of us, for from level out deal. a signed. we deal of fortunately, documents group on We of and a only of never proof we're one funds Europe we group a -- and signed that fund And even For fruition, had splash, horse. reasons had waited to count the of outside waited. type

their out of group that never got Unfortunately, Florida redundancy. some funding. had we So

expensive we So be on some took guys you from can And banks. course, of know from investment that hustle. a dilution standpoint. Those capital we considered some had to

call It money. we behind retired one it that, news him, I And amount I good overhang needed and love really of money. million. was God significant though, there, The was is of it, originally now we guess, can the have all a them $X.X is us.

Sometimes you to God but I'll good really us, way. it it's on do though, it was behind that pressure put There's lot group downward is just no secret. but a say it of The stock. and there, have waste behind glad that us, news, the difficult us, no surprise it, is for and helping

of work, Wealth there. have for a by early that of that and been York individuals Moving net forward, of course, really of them was out a we Management, with very a fun. Rochester efforts. or announced those the good we high We, the formal It's lot that up an of specifically, had sort managed press placement. superficial a with way people of release private New group of loosely morning, in lot a This agreement a also securities but upstate agreement results group Rochester worth capital

hand. We out We'll the first tranche in [indiscernible] an X-K have shortly. with for the half required money obviously first tranche about the be to put in

still flowing in. Money is

In some -- kind fact, actually amusing to it. it's of pieces there's

effort ], ACHs, checks folks money had male a But message is some [ happy. the folks is here comes, that the underway. Some of we're low that, well but

We I to in as as in have the signed mentioned press in. continues this -- morning, money press the release mentioned the we documents, flow

but it There that doing a in be to sure. for tranches. be third, will going We not say X I'm may

The the it. have second X/X of about tune tranche, to than a as half, we of well documents -- signed little more half

will we're team able leverage is really, confident money in. excited done that be that into revenue. that and to very, work really sales the the that marketing and has with very, and all very flowing So convert And

revolver, a lot Additionally, Julius an on will, worked you credit. ABL hard has or of if

will money As which in, a allow that standpoint, in credit-based that will and little comes liquidity about us talk that, this bit. have extra to triggers a Julius from

Let's see.

Yes. Okay,

receivable accounts been And going. help we've know we're whatnot. put of had in business the We -- where of financed things it's out. difficult It's through legacy I basically, money quarters. So some I've and investors more personally couple a our because

and gear So we're now, and out forward. get move past that of point first time it's to

about we're So very excited that.

Julius will balance now discuss to then XX outlook of for and the XX%.

at to received to Robert. will occurred financing pivot and has projections Okay. really that Thank ahead based I'm couple you, be acquisitions any we just and are and coming looking over the promising future want of weeks. a then at what referring the Splash. I The upon to they exclude yesterday, next

be in revenue from XXXX. our e-commerce guidance $X the is of platform. standpoint, restart expect with be Vino, better by $XX million year million $XX $XX along of the Copa or, range This reboot in to which de a brands, million we So management, for for XXXX full say, and revenue million our to growth driven Qplash, to will our word organic Pulpoloco

we'll the just M&A to M&A would I later, little be get figures any see the bit but accretive I know a noted. that side So to

savings. for moving gross XXXX, and gross XXs will be year this expect operational On do percentage a to high the I up XXXX margins driven full and points XXs efficiencies procurement in in to perspective, by land about margin high XX and the

footprint. projected So to late $X is by to that a XXXX. be QX And XXXX, based around our of early we upon for the positive QX we're way have if on I jump loss to be EBITDA going EBITDA. programs current million that given the XXXX EBITDA expect we

little of initiatives. strategic our be kind will bit by this these deeper, driven take to just financial So a projections

So project we've hot. white this time is public the kind of first gone this

growth. profitable have pillars: sustainable X We the one and strategic first focused on

The e-commerce our [indiscernible], second, acquisitions operational and the our finally, structure. platform bolt-on excellence; capital third, then

White expected I the flow cost positive any is organic M&A expected EBITDA, move from Project need and path -- and ready a to and operations Project to our next is from to provides strategic Beverage us strategic Hat plan focus flow [indiscernible] ensure organization as and the It operations without on cash our then will growth company get ensure a restructure positive footprint achieving optimizing So cash and there. to and M&A. to for support previously the strengthen noted, the imperative positive operating to the company's operations. have the Splash its for our position growth a pending capital reductions organization Group laser-like cycle to

lines, be expanding we savings, expect our these local margins To expanding its pillars. which in and exceed rest create brands. and these previously spending this year. on and go strategic the cost on with step-up going expansion, liquidity allow investments slash lifted, will the strategic offerings, has and gross distribution production of sorry, expansion. will and will focusing this its just a manufacturing, on year raw -- of success Splash contract gross significant with which and noted, next savings as noted I'm procurement gross savings I it Coke deeper we the little initiatives strategic of along additional in margin into would bit deliver are the a in some to material advertising lot procurement had combination momentum a to margin sales challenges to on our tequila programs. targets freight make Pope product promotion And Bill its marketing [indiscernible]

XXXX. M&A Qplash to platform. nominal, sales A bit for being low just go portfolio developments deeper on relaunch the more Again, we here that's and strategy. bit to platform. weeks everybody bolt-on brands. in And our remind acquisitions. to our liquidity diversified the mid-XXs the more procure balance little M&A for beverage just created want recapitalized, to on splash the we year-to-date provides was pillar Qplash our Splash couple just I the on will things e-commerce in e-commerce coming our And onto a from of on with execute been inventory bolt-on has XXXX side coming where in our sales sheet will for expect do strategic acquisitions in there. that Robert concept the for this is a a

want in kind of The on just I to last structure. capital thing focus is

me successfully the the will our note Robert financing. then that from We strategic have Future securitization equity our liquidity. revolver part through on kind side. Robert will be really Project over then either that. of equity of us did a But provide M&A syndicated ABL just debt, back or our to Hot. And from pillar M&A on on come White of an that's combination deals And of outlook executed let additional the turn partner it

work? and will big be will little how it a you want a understand would not go numbers, Julia, deeper people only into that make happen. that's sure in why like Qplash I realistic it to jump sounds Because and

Yes, sure.

Amazon So reseller. a basically, you're selling as pretty through much

that know, selling So a it's individuals are supporting model. effectively and folks business X fantastic business. on cost-plus a you're really And buying that that inventory for they as don't only it have we

So the overhead low. very is

to do challenges. And that a slash in So used liquidity when we quarter the there around to quickly. $X.X million is $X weren't on fairly time turnaround million

kind but a to So We'll kind the conversion used is of business need large the there. model isn't very a beauty business cash is that cycle pretty get of of this it's couple previously. of we've well-developed get that back to months a fantastic. And there. stretch

immediate the effectively getting inventory and buy You payment. you're

business days. X So getting back you're looking monies XX something and in to procuring at

Yes.

on Western virtually a some a really year. cash actually Thank certainly for it's exercise for we've that. It's time. M&A Great. been group middle a All -- There's because positive, Okay. Son platform And of great for flow been people. -- good next you. right. update. working not Vodka of been by great Thanks by us. really Yes, it's if the basically, neutral,

we well work We will together, very assuming close.

raise to are thing close $XX right into probably We and intention long-term hopefully a of Our will like end year, is by this around -- the debt this. of the numbers January. blend Basically, the the and debt It's roll million. it the equity. but structured

or Three of million will, with long-term you and debt is then an that $XX it, of equity $XX if quarters the partner. million being

names have but We came careful. from done, leave interested, I And that because numbers can they side. sides, execute new go was the I do with plan, tell requested name this, to the about because which signing both yet, talk both is that to done. in circled. and ideal very that a debt as But a strategic We have to our player, And you it's in, I'll on we billion they're is great player many it. It's to $X the not be hard are about diligence, too out, from really they is and do which who now openly can't interested have actually to a sign certainly the deeper due some we space space, have group. the equity so close

They're a know they that. perfect know exit and partner as well, that. We

It's an how ideal to see if that's on So that comes situation early, it goes. we'll posted We'll keep that. you but fruition.

but I why? the also So about is piece talk little important, want to bit M&A a

The platform a platform. an it of it been exit. always for to of the intended Splash an acceleration supposed if be vision you was platform. It's will, to was make always have [indiscernible], acquisition incubation We -- to never and

in we the hopper. have potential another So acquisition

That's certain has it's and that today. it. a not to going We the haven't a do deep ready a in I'm that example We're geography to regional and mile it's great regional an a right. did reveal They so. itself, right? wide announced not because proven country. But in brand brand, it

really we're -- mean, hate but it. complement good are it, I we experts, distribution we then I So to because are at

and go that ] MillerCoors have take a with we We of InBev level already group, in a Glazers distribution our massive every Market, [ to purchase relationships But relationship retail but support major ABN enormous and but that the brand also country Budweiser across that's knows achieved spent repeat and not vendor And [ public our certain that to system time we level, certain have now. Southern and together. that the distribution distributor of very country, we numbers, have have accelerating national and network that with because ], has whomever. a amount then putting Young's either we or everybody numbers in

the we mean, and to Right couple we were -- where I to we before happen. all through to quarters, and just had we hit had But liquidity of absolutely at be. we're proposed perfect, why anybody it's that button acquisition was it. potential a unnamed exactly now for problem, this it wanted example not do a wanted a we're pause of we powering that sorry, great is

So the on if that temperature, can their their of that on market. market cetera, the based by for And the you is -- markets. down Geo which fall people adjacent now most year, really will. easy distribution et by take higher piece, ones really time market brand and our we target sense make geography, go influencers button,

we So we're move very excited M&A forward. as about

too. and the efficient falls And be to make trying want most out. the that, DIAGEO. add the clear, most not We're be wherever shareholder to obviously, this value. just want next falls We that doing number I it to we by profitable. out, And

minds. But that. this and to about I And possibly Western the it I'm say. super in crystal potential for over make everybody's should we're I sure -- questions, So Son want turn is leave we'll excited you that's other going to clear this of one.

this is, out Like money rates you of middle saw achieve release. for we each we're for are now. heads finishing in said, right the platforms the we've [indiscernible] is I -- on that of and all, key X press the in, company, Our first to coming other's

will documents from believe, actually easier, go difficult. even the I most signed already have, tranche We Second always tranche, know. people we in said, second first is like we

confident very we're in So that.

base So this our out, we closed and of on it's operations.

the heard of bring whether next Julius, operations of this profitability beginning end any our you raise sometime, QX. or by will on revenue-neutral QX base If summer acquisitions. to That's without it's current of us

thing really great to able a be that's say. to So

financing the that trying put done was being getting to put sitting all we're the here or And financing work together. while

our us, I a on naming the other almost The there We some that second valuable others. that comes fact be word. would that's narrative thing Son Meissner is thing and the and come larger Well, our this Bill X acquisitions. Western really have good and aren't. desk, week that us potentially I'm not there of X executing future. a out there's gem, some But are for and a flow deal in across it are to

final and profitability. And actually then third thing reaching the is

this desirable to that people from completing be less So a know so would that something do we're going considered go financing do standpoint. to have not something, we raise,

never You that. never, can but say past believe we we're

third the XXXX, our all within The and of second eye. thing larger acquisitions, thing narrative things quarter reaching the profitability. now basically These the being -- which of being of blink are second executing these is a reach on X between of

you All to We'd now. explain for right. your A to And operator, please in the words. questions load portal, it your open like attention. questions please. Thank of how lot up for

[Operator Instructions].

It's for It it, looks our with of question please my already. you like bit right. the on to you the raise this year? you how -- believe profitability middle sorry, got further a called got by on. I excellence, get explain Can current All I we little operational next of Can first Julius. glasses we

Sure.

of procure materials. raw raise gives and itself in So to the us actually liquidity

is, our And cost highest looking items [indiscernible] things one at so freight. we're for the of are that

a allows type XX% products. various looking cash will from ever currently there by discounts. that and we'll better adding cycle out as is get volume buying to that a And And if any where because initiatives our basically there conversion getting you're where buy lanes only PLs us you're actually liquidity reduce out so freight we take have at actually that not the and what's costs have to Why, procuring. will hand-to-mouth our between we're efficiently to buying discount you're X wine XX% that we're of be more anywhere not down, well. to locations

labels where table well answers and for of looking then Hopefully, take so we efficient. more question. cost where be and carry forth, out the as continuously the -- at the we're Everything inventory cups can business, lower and levels on is that

right. All

me for And -- The the taken jump or to question question me, maybe Meissner excuse trying Bill as risk. I screen read -- the deal deal I'll long on start in the is okay, Western think a at is I'm Here's and what's Son. will risk, a at as well. so

about to in vision that So strategics to million, interested statement acquiring it's our the in. to already. that's that that want regional a accelerate be means be Generally, brands level going And those that We for of platform. $XX back the going have million beauty them. brands revenue to the my us range is $XX success grab what $XX is in too for million, and low

worked very hard we we accelerate that's it's also absolutely because It's where beverage, We XX, mentioned -- Why and on brands word man's Unless non-Accor strategics well. brands to long, taken difficult easy. acquiring $XX it before. legacy a perfect, come no ALK from incubation it's depending for sort lucky, business not land XX is lot of your against Incubation to your range a XX, thing really of it, away lot operate and in you But ideal in of to I money. ], get is a as the I'll core is them the million million and It it. do. finding revenue whether that, so takes $XX and it's standpoint. from it [ the costs then very a so segment takes in. brands time, call us,

a And Drexel. raise. brought at the I gentleman getting to found think now response. we blend was finally of with on And a debt help we're we us and tremendous right director also that equity. he top And

to help Bill, as going that's well. I'm there? missing So anything

there. as like We that just just Son and very as we do. Western on just the want see the assure can great work question team far the they are favor They going brand Well, I that this be together, to can is continue motivated. is the risk, everyone deal and that get with brand they the patient very help They next this in Splash us. level, much work and partner know and to

it by difficult hear this. X stand Okay. second, I to I'm think on Great. everybody. we like man, topical sorry. should looks Maybe

Let's looks isn't fast. -- I think yes. portal it's Operator, like the web very -- working it

open So ahead up phone why don't we and please? go the queue,

Absolutely. question from Buck comes [Operator Instructions] Scott with H.C. The first Wainwright.

Appreciate the update.

on up lot Son, of driven lining information that's the by almost You're Robert, that I'm holdup financing? a Is us. entirely at the fair? throwing curious,

There's as it's Yes. spirits, [ ] think you you licensing and right. That's about also right? exactly also colo So to also permitting, and well. have waivers have

mentioned And it's down that portion billion we're thing. They're a be figured we mentioned, [indiscernible] financing to now, and think sort to yes, get not the circled better I quick it, much other and a don't We've that But of you we a that's done. better So the getting group. blend of I not by the really but real. much we're group done meaningful. asked it's then give style $X that the way. want to this exact out and why going percentage, indication

us. takes So we'll see where that

to call future, present the business. really using just really express external the the a momentum there, things to what and market our Scott, our we how show on and put enthusiasm confidence like design just future didn't of in out to the for in build so And of the of what wanted that we're financials quarter funds, of of just just kind really looking these wanted to kind the pop looks is I the things information. right, kind this lot in by you're vision saving the really in we're

production will recent looks like Is deck, guys with Yes. that you the investor In be the think it area. very Western that No, helpful. correct? closing Dallas the Son I to most it's moving of some

] this point, is is North I'll Western Well, or The Texas. say located pilot Son way. in Campus which it [

of our production will some it, and can be some of there, our relocated production but and logistics And of all not which be great.

shipping Just be tremendous. will alone savings lane

So necessarily, but of it portion yes, a sure. everything for yes, not

margin or or are was that's I there? some guess of Yes, production if question, savings the what I inventory the cost benefit going the of Okay. with the health where you moved potential

the just just yes, probably XX% a if we're just lens, we it savings on costs. freight at our freight -- on is focus looking

is material. Which

material. not very just -- big I X a just that's points. it. like it's it's of mean It's And piece or then X also,

at your the looking the look just basically for truck of from you for Dallas that's kind If just us. lanes to area big outside how Portland and very go, it

in from a good your Coast. we wine the And are believe those bring don't So savings can West thing. even It's I current.

buying wine -- is, just from. incorporated would vintage. Vino, no, di come line and No, a haven't it's that Copa like at even again, that's too, we savings, on some not but have look we better if you Also procurement geography strategic where

Pacific we're So throwing whether that's about not California that do since necessarily one, that, into West the kind line Texas, that it not even of is just excess baked but from would could talking that, a yet. numbers or be out from there

marketing That's the not the accountant guy. talking

Western be clear, I on it But include guys, to not the brought right? for the that you XX, does Just Son, know call. guide up you both brought

That's correct. is correct. That

correct. That's

So here get to took we're even it in really spot a though here. good while pretty us a

of with? can accounts do catch proceeds most goes payable growth have you curious, as things capital. it from of mean, with either to inventory I'm kind I up what up you right. what raise, kind into refill Right, on about recent this before think cleaning

Yes.

vendors to and have and mouth on bills really in been some us. on our So working quite of the obviously, cash, we've with behind we're excellent hand been

we'll that pay raise just And to the we're paydown next due. check everybody we're X- XX-week have, of not a going off. write we with an that to There'll be week and get just past anybody So whether smartly leverage. price higher can wine as be buying just buying we in investments then Qplash again, then it's some side, the or on purchasing in quantities making so and inventory

in So -- highlight in ticket That want for have a leadership one and a cash as just also us. bigger bank thing on on takes have our you of relief when managing the senior limited I focus strategic welcome away focus vendors, and will liquidity, so to the right? be the basically to from on items to spending well you're time is lot

this or Or filed this on be raise? will tomorrow. information Yes. afternoon included either Can the that you share in the X-K pricing that's

but X-K, you'll see the in Yes, reasonable. it's it

the be I think And XX it's Yes, a will it. from very XX with debt it's be like very people -- comfy It's not think people I down some will to comfortable. years line standpoint. reasonable.

Perfect. the thing, little And last information how mean, guess, capacity can the whatever a is or what revolver, you I Okay. Julius, on more the us give then of the... I ABL? --

syndicated financing. basically, Yes. things your We've one it and just sheet. it's a And on got that, ABL, us of And with AR is contingent was standard doing inventory. term the

can So to you I million. is the that $X million range $X give

the we'll get coming more information finalized, on is in And as weeks that raise this current right?

to correct. itself the gradual got up. should there'll inventory and inventory, a of so be buildup, to buy Yes, finance right? will You Again, that kind

pull even mean, happy with we that just way, was through, the situation, honest, were what, pretty that could to shocked by call coming I And like of terms given the that everybody be actually fact kind it, at that with. is financial Robert the was our

stuff. Yes, it's good

And thing, have, anything you months that the I'm that in Robert, then X brands front, front. months, the portfolio see now? of more on sure XX I currently we from could of the divestiture not potentially mean M&A . last the

I'll -- been why about Yes. I'm There There's to corporate Yes, go there. going some are go just just there. quiet we've reasons that.

with and and that's about success talked we me, great. your going I'm regional acquiring brands be question. bear to When acquiring and repeat So them, regional answering with purchase accelerating brands it's

a already the company brand, preexisting Our for Splash, TapouT. a very agreement first awareness. lot of to has when came licensing brand TapouT I had

can well, really because incubation it was ], about project. I But really And with we that that's work this week. MMA [ folks with TapouT the lifestyle was fine. brand UFC So conversations had associated some ultimately, a an we and with some thought, this that. And

licensing In continuing just was not level pretty actually fact, to an continuing. but But a wasn't level have or incubate. was of And as the to then, don't from brand standpoint, And takes And up end to of lot have millions it's evaluate good would it we're brand we I time. on say, -- and to then success from worth the we still it's of that was -- no, that it. continue worth consider And successful. it want brand not course, to and figured failed, had regional hope, that whether authorizations to darn standpoint, payments dollars selling, not -- spending we we the that it a going incubation we to it well. a we

So decision, hard away the brand. sticking we're to made walking our core from strategy of the regional success we and

be are and chain that chains work all and to able there we have distributors. through to to and the We haven't considerations, about talked because get and distribution it

if we be little -- We down standpoint. our we've want is, in continue were to the to from like it this not But the course, it. a guess, it just kept of rather if cash cost wish honestly, do world, So and, we bit take them to it no, that, it's another had where a and X years with guess brands, best my functional we million. $XX get But kind on will focus acquisition. all I'd exciting on would other and just a million, could the is incubate we we that it been X of to they're with really $XX I'd the continuing TapouT. to

appreciate transparency you to and Yes. guys host time I taking the appreciate there call. I Well, this the

from with Sean ROTH The next question comes Partners. McGowan Capital

talk opportunity to the Appreciate guys.

$XX million Going you guidance. in to expectation did back $XX the you your to for revenue, 'XX on say Would comments repeating range mind on the million.

XX% no, to No, no, XX%.

XX%. to XX%

of talked XQ, Okay. I'm Would I you year? QX. for EBITDA positive being the EBITDA late about it. positive you asked to And expect when glad be kind

like it's I'm conservative. again, So

million quarter. first $X.X full be year, most I'm the in the I out a XX rosy things pull aren't months get And of that to into with am can I we don't little want kind different numbers. the built I But like year, to think because on second is a too down where out. have of and that, sales $X million I and of expecting noted again, I But momentum. upside we've to think that for couple full

Right. Right.

in half the quarters you on seasonality quarter? expect of that given stay business question Okay. last that the would still think would the once EBITDA could there in negative? other every And Or 'XX, and the second is, would you that consistently going positive you wind cross guidance that some potential things into there do up on, threshold -- then you be in

about state, the No. Qplash and getting more no. can't brands, of once margin only No, much And Because you off because I on a there standpoint we talking a cost have model. Vino, Pulpoloco cross more room I'm our taking do into I that of -- our once resale is can so a I tequila plus. momentum. you on second I'm I de from XXXX lot start Qplash expansion legacy starts have Copa half and the when our right? a steady start in commercial But threshold

that. crossed in though, be what after way threshold, guess and calendar calendar investments for positive if 'XX, this calendar do I asking, am and I'm I quarter, in I and turn would I made taking -- when stay we'll like is or I've we first -- is I post-holiday retired the know to the future growth, I'm to I've the -- -- turns the I a the step then I just -- all back because do

seasonality, backwards give from I won't it that Robert I positive. way think be and And We a can maybe it. the Bill won't go little say significant you like see Yes, of on bit then but that. sense of

So you've talking hope you. to been way, you Sean, I the hope well. nice do by

I but too. this, -- So understand

On for the with frankly, have TapouT, we're and we salt the where of for of already tequila talked and about getting the that. Pulpoloco beverage didn't those the a -- now chain exception the on had chains we and and ton Copa But of some legacy business, we for chain just authorizations before. regional for side meaningful the national de Vino brands

build and I everybody what are on understands the that this -- So think, chains call, brands.

about Walmarts increase So the et getting in into once [indiscernible], the world, of you you're the ], [ talking start Circle-Ks Walgreens, massive revenue. cetera, the a

So for slide no, there's to numbers reason backwards. those no

M&A. without [indiscernible]

out kind all more 'XX, standard so -- Understood. XX it's Just going like, again, into is months or M&A like of this

I'm TapouT. for that I but it thanks to say of challenge have on X would not require the color other incubated, you One out kind out, is right.... questions. hearing not ruling there is the you're be that

just brand No, about this no we're talking specific.

exception [indiscernible] Bill own because the He's -- Marketer the a this liquid. [indiscernible], and Meissner design. we President. We the dress this he fact, name did can own He the as well trade of TapouT the to did and speak In with positioning. and the

both. So out no, getting non-out business, to want the do we not we of are

is And last loco. sense. question Makes Okay. my Poco then on

be? -- there and years that of about technology. type other cornered? applications talked kind is you of So that update some might what Can us you on over extensively we've give a the of plans I other kind packaging of Or little back

Yes. no. outstanding it earlier. I'm brought glad it you up. No, have brought an That's question. I should up

that loco the a liquid. on But for deposit we're raise can -- the authorization talk So we're little on ]. organization. for it's Pope -- to reason want a that And the daily and fabulous about sustainable just capital proceeds the we sangria roller. a our really a chains It's this if impacts you multiple is there and other Number is paper use unique bit I on mind, part not have loading as positive one, a it the first don't of It's of the has by of package [ that and stores nice biodegradability [indiscernible] recognized well. and buyers basis. because

packaging that important to super So us. is

for of on those cans layered intent here, in eighth -- it's an Texas. probably the North here paper As X to layer. the can. label. cost procure the is The our call, outside we cost estimated the States, first that It's it's roller, will put layer everybody and be The once also our it the

$X.XX the of is domestically. that roughly cost So

we as raw it. material now that $X.XX right import as think I package is a about

than So we less that half. cut

Our current is printed can aluminum about $X.XXX.

So tremendous savings.

increasing that has COGS margin. down racketing And

We're hope [indiscernible]. current a can not that water first line back more can as no, project very about put jump of that that So absolutely it brands Bill we of brands, in quarter. I'm now But current here we is to We thing. excited it, and second that the going take our well. and put extensions and to our in have get there, paper about machine in can on some first in talk

going, Account for some I factual. Aragon [ [ ], anecdotal, private have an is buyers but Bentonville this wine is And Inside the between can. maybe. And if National can minute, we and and analyst, And not cans the we in as time and add giggled of sell that the here this you this XXX wine sell $X.XX last up, guidance, and capacity sell an [ buyer, said, smiled up. $X.XX was the ] straight Can you that right? on When opportunity math, our a a with an but So VP, Aida you're is do well. somewhere I'm capacity. Walmart no, not we I could label excess yet. is our as But exclusive there's ] to excess

build these that. this project It us. do talk is Bill takes So tremendous project in slowed long your second you a has package? on about a a for down time want Meissner, nothing this to water to for No, machines.

the a who CartoCan. spring with in natural CartoCan, water in love made amount and have of retailers sustainability to replace in really amount the tremendous opportunity of a specific market venues will KPIs We fair The on a Yes. water. see the [indiscernible]

that size. own by limited are We

So perspective. overall a from water category, terms case huge the relative that's smaller a absolutely in segment but of volume

highly CartoCan. we of water think of the future So in very

X-ounce you them.... that bottles, about kind these waste of goes think with If little PET and the along

criminal. it's

hold and have overwhelmingly guys like while by I a that It's for over there probably here, is water. as the been down sustainability It's just aluminum to And some of that like but in a death a be absolutely definitely [indiscernible] perfect have to around liquid -- in blowing can't and industry time. package, and you breaks a the us that glass, just in think biodegradable of are proved the has recyclable or water not up also candle case CartoCan. can, kind which well, the

some think, wine, Further, wine? wouldn't qualified time that be was actually took for package for why It to front, Sangrias, might have well, which innovation figure on for was we it the you great out.

So we CartoCan the in be be to able as wine first well. will

in those platform. X So that is both for innovations there right of us, that

monetary -- the a that by just to And none is that yet, on It's right? it early put to another just way, have were what that and value we quoted, figures. of us, really the would built upside but our numbers to into mean too

as And CEO, a I call sandbag. a that

to guidance? the you number glad of in I'm there, that are is, have for they because okay, your would brought question some take but in that in -- I not up some going Well, the revenue initiatives these EBITDA costs? is there you Are

of kind of as -- kind a almost kind way arrangement like I like you for the characterize this tolling of got a a almost would don't baked in. word. lack of that that like I better have I

yes... But Okay.

plan. it it's again, that's the right, that to into. business that a kind something And profitable. the everything on, that. going has of I will of -- looking down that market help an like is obviously, it's it's a And But tremendously. strong in putting way we're operating need finger to this, with for our But hard approach The instantly timing put this just put

reason go our The are assuming favor our water probably this in way. it then of you put can a in against $X.XX us, think it it. versus Sean, will And numbers at correct,

so but the is profitable. do instantly So math purified,

Okay. All right. Appreciate the update guys.

problem. No

there. a we've So know out million we're -- I got questions

until midnight. we'll or more few Who's a next. answer and try Let's be here

Up [ Investment, next, David we Inc. Figueredo CSU ] have with

hear you me? can Robert,

Yes. Yes. you. Got

and times first the you this and want really part. tough I've all, for just stuck I [indiscernible], the team -- your growth through past, in of thank the of with thick tenacity for business. of and to I a in -- talked you thin. to been to I've couple a your here it get through Dave while

drinks athletic I I on trying in So be day. energy really, XX you But And I really enjoy there. anyway. once really want still and to to thank I I sipping guys just of It's use June. pretty Qplash, a turned those X -- really

X -- like as a ounces people how have But the that. possible, get drink see me, tequila, to your we X.X. liking as I are dinner, want before that. really I And So I much that's citrus and for

from to going your green recipe hybrid But [indiscernible].

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Yes.

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in -- that can the tequila about, on be couple restaurant. quite an of liquid. for real feel, on-premise tequila things. yes, the or don't we're exclusive you right. hand is I to only with so that we amazing. if bar you actually is a the be the proud straight the the we're hand Salt know or only Bill heard launching tequila, of a a silver, Yes, talk feel we and then, the Meissner respect call So And -- the are reason account it paper Because, can we can

but X tequila. X anything on straight for because coming we So now now we didn't have the -- flavors had back bar

So now we have exclusive. that ability be to

important... an that's So

Cannot wait.

by Yes, forward. is the fantastic. the And strategic silver move way,

thing.... second The

Cannot wait.

Yes. Yes.

the talking drink. about So we energy were

of we remember, own So label basically the the We exception own what's with the TapouT. dress, liquid. trade called the

yes, go will the point we away forever, near but at transitioning going So be to in future. that it's not some

it the we're lines, And important. for it's question because came quick be and imminent. to we'll of That that cautious close revenue year then on would that. objective is announce reporting time. a But the being done, that Also, that we when it's through, our not it's but I but that about of capture We're to done, basis. very Western along And talking want details there's acquisition. to written by second it is kind XX, potential close December those about Son, a address thing so this can it's --

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the not to from just from walk So away got yes, name that walk work -- going we've we're done, we TapouT. the away to

Got you.

drink Our do. much people as in like I the as energy

I it. it. I'm love right Yes. Yes, now. people X love drinking

the [indiscernible] lemons. [indiscernible] go into sparkling

All guys' much. tenacity. your right. appreciate very Thank Really you

You recognizing a well bet. appreciate We for Thanks Yes. as partner. as it. you

you. Thank bet. You

Okay.

have remarks. I'd management to queue. to any We for further questions no the turn like in closing floor back

events road we if it as for All And good difficult talking think that. easy, excited I been about, as do be and it. the excited near incredibly reporting could the We're in anybody right. We'll And gentleman and the more perseverance and Bill this Well, was most call. a know persistence tenacity, more I been we've by live and wins. Julius. I hope about It's lives future. future. Meissner has questions people's a very listen, answered clear transparent future. been I the and possible, about are

sets of we're dominoes. organize set like we're -- waiting while did this now in things this we really of up you I'll sets leave the is as on motion. us. round It thought. It -- It's to with into financing. close And so this of All work many front we a master

we that everyone's So amount. long-term starting in forward we and to a we're shareholders we like we hope is We We like said, have, in. support. actually love money I thrilled company, and material now, to the And future, come family. this our our possession some have look value

a I'm very Remember, large shareholder.

mind. to So always going we're in have you

run to about a things but and expect for care we price, share the we business, future. equally have great also We

great and Thank have the and and weekend. and you joining men rest and appreciate guys a we you women, we hope very week for of guys you much

participation. you concludes disconnect This this at your and may today's Thank time. you lines your for you. Thank conference,