Eastside Distilling, Inc. (EAST) Misses Q4 EPS by 52c, Revenues Beat

Eastside Distilling, Inc. (NASDAQ: EAST) reported Q4 EPS of ($0.78), $0.52 worse than the analyst estimate of ($0.26). Revenue for the quarter came in at $4.34 million versus the consensus estimate of $3.71 million.

Management Commentary

"In 2020, our focus is on transforming Eastside Distilling from a company with one primary lead product, Redneck Riviera Whiskey, to a 'House of Brands' that leverages our national distribution capabilities to also distribute our recently acquired Azuñia Tequila, as well as our Burnside Bourbon and Hue-Hue Coffee Rum brands," said Lawrence Firestone, CEO. "While COVID-19 is having a near-term disruption in our business, we have remained nimble and are adapting to the rapidly changing environment impacting all smaller spirits companies. Importantly however, we are simultaneously focused on driving the long-term improvements and initiatives in our business that we believe will be drivers to long-term value."

COVID-19 Impact and OutlookThe first quarter of 2020 started strong. However, starting in mid-February through the end of March, there has been a slowdown in sell-through as a result of COVID-19. Additionally, the off-premise retailers have delayed the commencement of the planned Burnside Bourbon and Hue-Hue Coffee Rum national launch as a result of COVID-19. The Company has enacted a series of initiatives to improve sell-through, including offering deep promotional discounts on Redneck Riviera Whiskey and Azuñia Tequila, as well as a focus towards online sales. Further, with on-premise shutdown throughout much of the country, Eastside has been ramping up support efforts for local off-premise independent stores and wholesalers by creating several programs aimed to energize the local marketplace. Likewise, as the shutdowns diminish, Eastside plans to expand upon these programs to support its off-premise accounts.

The Company's Craft Canning operations is experiencing strong demand from the craft beer and wine industry as brewers and wineries have batches that they have made and need to get them into cans. Between workforce issues and the closure of the on-premise business, this has pushed demand towards the Company's mobile canning business.

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

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