Eastside Distilling, Inc. (EAST) Reports Q4 Revenues Above Estimates

Eastside Distilling, Inc. (NASDAQ: EAST) reported Q4 revenue for the quarter came in at $2.42 million versus the consensus estimate of $2 million.

Q4 2018:

• Gross sales for Q4 2018 were $2,417,205, an increase of 104% compared to $1,183,009 in Q4 2017, led by the continued launch of Redneck Riviera Whiskey (“RRW”), sales from the Company’s private label and wine canning operations and growth within the Pacific Northwest.
• Total shipments increased to 18,765 cases (13,949 for branded products and 4,816 for private label and co-packing) during Q4 2018 from 6,444 cases (5,924 for branded products and 520 for private label and co-packing) cases during Q4 2017, an increase of 191%.
• Branded product shipments increased 135% to 13,949 cases in Q4 2018 compared to 5,924 in the year ago quarter.
• Q4 2018 case shipments of Redneck Riviera Whiskey were approximately 6,500.
• Adjusted EBITDA during Q4 2018 was $(2,129,970), which compared to $(930,472) in Q4 2017 as the company continued to invest in key areas, including the Redneck Riviera Whiskey via marketing and sales.
• Eastside Distilling has incurred (through the end of December 2018) cumulative sales and marketing expenses of over $1.5 million to support the rollout of Redneck Riviera Whiskey and build a national distribution platform.

Management Commentary

Grover Wickersham, Chairman and CEO of Eastside Distilling, commented, “I am pleased with the progress that has gone into elevating Eastside into a true scalable platform. Our ‘brand factory’ approach to building this business, which includes our ability to leverage our award-winning blending and branding, increasingly efficient production and canning, regional and national distribution, localized retail, and effective marketing techniques, allows us multiple opportunities for long-term success. Redneck Riviera Whiskey has tested and proven that the platform works as one of the more successful first year launches of a spirit. We are rapidly developing and rebranding additional products, including the introduction of new product categories such as RTD cocktails and CBD beverages that further enhances our opportunities for success.”

Robert Manfredonia, President of Eastside Distilling, commented, “We continue to build wide spread support for Redneck Riviera Whiskey amongst the largest retailers in the U.S. Over the past few months alone, we have substantially increased the points of distribution as retailers have come to understand the growth that Redneck Riviera Whiskey provides them, and the mission that John Rich and Eastside have undertaken to bring the product to their shelves and support a tremendous cause in the Folds of Honor. Throughout 2019, we are looking to further introduce Redneck Riviera product extensions that should further bolster our shelf presence.”

Wickersham continued, “As we enter 2019, we are well positioned to grow our business and begin to drive efficiencies. The acquisition of Craft Canning + Bottling in January 2019 will not only help us meet the anticipated production ramp from our branded products but will drive revenue and cash flow through their own co-packing business as well. To this point, CC+B had been capacity constrained as they relied strictly on mobile canning operations, and so the ability to leverage our well-equipped fixed production facility in Portland should allow for additional sales synergies and operational efficiencies for both operations. In addition, due to the sizeable market demand and the very short pay-back period, we intend to add additional equipment and hence further add to our capacity and growth in this area.”

“We enter 2019 in the best position the company has ever been. We have built a scalable platform that allows us to bring products to market quicker and more efficiently than ever before. Redneck Riviera continues to grow at tremendous rates with many new store authorizations coming on line in the first half of this year. Our balance sheet is in a strong position as we have recently made the necessary investments in bulk spirits inventory and production CapEx to meet near-term demands, and expect to continuously drive improvements in our operating results as we move through 2019. With the addition of CC+B, growth in our other areas, and a focus on driving efficiencies and improving operating performance, we look forward to an exciting 2019 for Eastside,” concluded Wickersham.

For earnings history and earnings-related data on Eastside Distilling, Inc. (EAST) click here.

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