Eastern Security & Protection Services, Inc. (EAST) Misses Q1 EPS by 11c, Miss on Revenues

Eastern Security & Protection Services, Inc. (NASDAQ: EAST) reported Q1 EPS of ($0.27), $0.11 worse than the analyst estimate of ($0.16). Revenue for the quarter came in at $1.41 million versus the consensus estimate of $1.44 million.

Q1 2018 Financial Highlights:

Gross sales for the quarter ended March 31, 2018 were of $1,413,182, an increase of 70% compared to $829,669 in the first quarter of 2017, led by the launch of Redneck Riviera Whiskey, sales from our private label and wine canning operations, as well as resumption of growth within the Pacific Northwest of our rebranded Burnside lineup.
Total shipments increased to 8,305 cases during Q1 2018 from 5,937 cases in Q1 2017, an increase of 40%. Branded product shipments increased 80% over last year.
Initial shipments of Redneck Riviera Whiskey, which first hit store shelves in February 2018, exceeded expectations, with 2,800 9L cases shipped.
Gross margins improved to 49% during Q1 2018 compared to 37% during fiscal 2017.

Key Operational Highlights from Q1 2018:

• Redneck Riviera Whiskey, a collaboration with country music superstar John Rich, launched in January 2018, with first product hitting the shelf in February 2018.
• Eastside began to benefit from the December 2017 tax legislation, which went into effect January 1 of 2018.
• Strengthened the management team with the addition of Tom Wood as VP of Production, Robert Manfredonia as VP of National Accounts, and Kim Davis as Controller.
• Introduced Hue-Hue Coffee Rum, the next Sandstrom rebranded product in our lineup.
• Launched our new “slim line” canning capability during the quarter, with initial shipments to customers in the canned wine segment during the first quarter.

Management Commentary

• Grover Wickersham, Chairman and CEO of Eastside Distilling, commented, “Our first quarter 2018 results are the early returns on the investments EAST made in 2017 to position us as a leader in the emerging craft spirits industry. The sales growth of 70% was achieved with two months of Redneck Riviera shipments and two weeks of wine canning operations during the quarter. The Sandstrom rebranding of our Burnside Bourbon, which re-launched at the end of last year, has resulted in a resumption of growth in that key product line. March sales of the Burnside line in the Pacific Northwest surpassed the peak level reached in 2017. We believe that momentum in our key brands, our pipeline of innovative new products and our canning operations, as well as other of our strategic initiatives, will produce continued strong growth throughout the remainder of 2018 and well into 2019.”

For earnings history and earnings-related data on Eastern Security & Protection Services, Inc. (EAST) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Reading (RDI) Tops Q2 EPS by 4c
• Rein Therapeutics Inc. (RNTX) Tops Q2 EPS by 39c