Beeline Holdings Inc (BLNE) 2024 Q2 法說會逐字稿

Good day, and welcome to the Eastside Distilling second quarter 2024 financial results conference call.

美好的一天，歡迎參加 Eastside Distilling 2024 年第二季財務業績電話會議。

(Operator Instructions) Please note, today's event is being recorded.

（操作員說明）請注意，今天的活動正在錄製中。

I would now like to turn the conference over to Tiffany Milton, Controller.

現在我想將會議交給財務總監 Tiffany Milton。

Please go ahead.

請繼續。

Thank you.

謝謝。

Good evening, everyone, and thank you for joining us today to discuss Eastside Distilling's financial results for the second quarter of 2024.

大家晚上好，感謝您今天加入我們討論 Eastside Distilling 2024 年第二季的財務業績。

I'm Tiffany Milton, Eastside's Controller.

我是蒂芙尼·米爾頓，Eastside 的財務總監。

And joining us on today's call to discuss these results is Geoffrey Gwin, the company's Chief Executive Officer.

該公司執行長 Geoffrey Gwin 參加了今天的電話會議，討論這些結果。

Following our remarks, we will open the call to your questions.

在我們發言之後，我們將開始電話詢問您的問題。

Now before we begin, with prepared remarks, we submit for the record the following statement.

現在，在我們開始之前，透過準備好的發言，我們提交以下聲明以供記錄。

Certain matters discussed on this conference call by the management of Eastside Distilling may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, Section 21E of the Securities Exchange Act of 1934 as amended, and such forward-looking statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

Eastside Distilling 管理階層在本次電話會議上討論的某些事項可能屬於經修訂的1933 年證券法第27A 條、經修訂的1934 年證券交易法第21E 條含義內的前瞻性陳述，並且此類前瞻性陳述前瞻性陳述是根據 1995 年《私人證券訴訟改革法案》的安全港條款做出的。

The forward-looking statements describe future expectations, plans, results or strategies and are generally preceded by the words such as may, future, plan or planned, will or should, expected, anticipates, draft, eventually, or projected.

前瞻性陳述描述了未來的預期、計劃、結果或策略，通常前面有「可能」、「未來」、「計劃」或「計劃」、「將」或「應該」、「預期」、「預期」、 「草案」、「最終」或「預計」等字眼。

Listeners are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements.

請聽眾注意，此類陳述面臨多種風險和不確定性，可能導致未來情況、事件或結果與前瞻性陳述中的預測有重大差異。

Such matters involve risks and uncertainties that may cause actual results to differ materially, include but are not limited to, the company's acceptance and the company's products in the market, success in obtaining new customers, success in product development, ability to execute the business model and strategic plans, success in integrating acquired entities and assets, ability to obtain capital, ability to continue its going concern, and all the risks and related information described from time to time in the company's filings with the Securities and Exchange Commission, including the financial statements and related information pertaining to the company's annual report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission.

此類事項涉及風險和不確定性，可能導致實際結果出現重大差異，包括但不限於公司的接受度和公司產品在市場上的表現、成功獲得新客戶、產品開發成功、執行業務模式的能力和策略計劃、成功整合收購的實體和資產、獲得資本的能力、持續經營的能力，以及公司向證券交易委員會提交的文件中不時描述的所有風險和相關信息，包括財務與公司向美國證券交易委員會提交的截至2023 年12 月31 日止年度的10-K 表格年度報告相關的聲明和相關資訊。

Now with that said, I'd like to turn the call over to Geoffrey Gwin.

話雖如此，我想將電話轉給傑弗裡·格溫 (Geoffrey Gwin)。

Geoffrey, please proceed.

傑弗裡，請繼續。

Thank you, Tiffany, and welcome everyone.

謝謝蒂芙尼，歡迎大家。

I'm glad you can join us today.

我很高興你今天能加入我們。

As we reach the midpoint of 2024, it's a good time to reflect on our progress.

2024 年已過半，現在是反思我們進展的好時機。

We've set ambitious goals for the first half of the year, and while we've made significant strides, there's still a lot to do in the latter half.

我們為上半年制定了雄心勃勃的目標，雖然我們取得了重大進展，但下半年仍有許多工作要做。

Consolidated sales were up 11% in the quarter, and we've seen a notable improvement in gross margin compared to the prior year.

本季綜合銷售額成長 11%，毛利率與上年相比顯著提高。

However, what stands out to me is the success that we're having in our operating businesses and key performance metrics that we're following.

然而，對我來說最突出的是我們在經營業務和我們遵循的關鍵績效指標方面所取得的成功。

Craft, for example, saw a nearly 50% increase in digital printing revenue.

例如，Craft 的數位印刷收入成長了近 50%。

I mean, they're setting records pretty much quarterly for can sales, and our order books are full.

我的意思是，他們幾乎每個季度都創下罐頭銷售記錄，而且我們的訂單已滿。

We're addressing the challenge of scaling up our digital can printing capacity.

我們正在應對擴大數位罐印刷能力的挑戰。

Now, we have a plan in place to significantly boost this capacity, and we're focused on executing it for the rest of the year, and I do think that we'll unlock additional capacity.

現在，我們已經制定了一項計劃來顯著提高這一產能，我們的重點是在今年剩餘時間內執行該計劃，我確實認為我們將釋放額外的產能。

But this quarter's performance to me just confirms what I've said on numerous conference calls in the past.

但對我來說，本季的表現恰好證實了我過去在多次電話會議上所說的話。

The digital can printing is gaining traction, strong traction in the market.

數位罐頭印刷正在獲得市場的廣泛關注。

Now, craft still needs to address critical issues like it needs to improve its gross margins.

現在，Craft 仍需要解決關鍵問題，例如需要提高毛利率。

We need to reduce machine downtime, minimize scrap.

我們需要減少機器停機時間，最大限度地減少廢品。

All these things impacted margins and operating cash flow in Q2, and I'm optimistic that we're going to see improvements in the second half of the year.

所有這些因素都影響了第二季的利潤率和營運現金流，我樂觀地認為我們將在今年下半年看到改善。

Now turning to spirits, that business has made substantial progress as well.

現在轉向烈酒，該業務也取得了實質進展。

And remember, the primary goal in that business is to generate positive cash flow.

請記住，該業務的主要目標是產生正現金流。

I think we're very close to that.

我認為我們已經非常接近了。

Now case funds were in fact down 12%.

現在案例基金實際上下降了 12%。

That was driven in part by this reset of our tequila go-to-market strategy that we initiated last year, resetting distribution, starting with new distribution in new markets, and changing our prices and improving gross margins.

這在一定程度上是由於我們去年啟動的龍舌蘭酒進入市場策略的重置，重新調整分銷，從新市場的新分銷開始，改變我們的價格並提高毛利率。

And we've seen better performance in states like Oregon and Arizona.

我們在俄勒岡州和亞利桑那州等州看到了更好的表現。

Our [PPV] performance in Oregon has been outstanding, and I think we'll have some good numbers to report for the back half of the year across the entire portfolio.

我們在俄勒岡州的 [PPV] 表現非常出色，我認為我們將在今年下半年報告整個投資組合的一些不錯的數據。

Despite the lower sales and the fact that we didn't sell any substantial barrels in the quarter, gross profits increased substantially, 84%.

儘管銷量較低，而且本季我們沒有售出任何大量石油，但毛利大幅增加了 84%。

And EBITDA also improved, as I referred to earlier.

正如我之前提到的，EBITDA 也有所改善。

I think for the quarter, we only reported $53,000 loss in EBITDA.

我認為本季我們的 EBITDA 損失僅為 53,000 美元。

So we've had a lot of progress, and we expect to see more progress in Q3.

所以我們已經取得了很多進展，我們預計第三季會取得更多進展。

Finally, our corporate expenses have decreased yet again, quarter-over-quarter, and we've done that pretty much every quarter for the last two years.

最後，我們的公司開支再次環比下降，並且在過去兩年中我們幾乎每個季度都這樣做。

We're working to build a sustainable and growing company, and I think we'll continue to make progress in doing that, and we made progress this quarter.

我們正在努力建立一家可持續發展的公司，我認為我們將繼續在這方面取得進展，我們本季取得了進展。

Now, with that said, I'll turn it over to Tiffany, and she can present the numbers, and after that, we'll take some questions.

現在，話雖如此，我會將其交給蒂芙尼，她可以提供這些數字，然後我們將回答一些問題。

Thank you, Geoffrey.

謝謝你，傑弗裡。

I'll summarize the financial results for the quarter, and then we will take questions.

我將總結本季度的財務業績，然後我們將回答問題。

On a consolidated basis, our gross sales were $3.1 million for the second quarter of '24, and $2.8 million for Q2 '23, primarily due to an increase in printed can sales.

綜合來看，我們 24 年第二季的總銷售額為 310 萬美元，23 年第二季為 280 萬美元，這主要是由於印刷罐銷售額的成長。

Craft sales were $2.4 million for '24 and $1.9 million for '23, as our printing operation improved sales and production throughput.

由於我們的印刷業務提高了銷售和生產量，24 年工藝品銷售額為 240 萬美元，23 年為 190 萬美元。

Craft printed a record 6 million cans in Q2 of '24.

Craft 在 2024 年第二季印製了創紀錄的 600 萬罐罐頭。

Spirit sales were $700,000 for '24 and $800,000 for '23, decreasing as a result of lower volumes, primarily in tequila due to changes in our go-to market strategy with distributors.

'24 年烈酒銷售額為 700,000 美元，'23 年為 800,000 美元，由於銷量下降而下降，主要是由於我們與經銷商的市場策略發生變化而導致龍舌蘭酒銷量下降。

Our consolidated gross profit was $200,000 for Q2 '24, and $26,000 for 2023, primarily due to our printed can sales.

我們 24 年第二季的綜合毛利為 20 萬美元，2023 年為 26,000 美元，主要歸功於我們的印刷罐銷售。

Our consolidated gross margins were 5% for '24, and 1% for '23.

我們的綜合毛利率在 24 年為 5%，在 23 年為 1%。

Craft had no reportable profit margin for 2024, and negative 3% for 2023.

Craft 2024 年沒有可報告利潤率，2023 年為負 3%。

Spirit's margins were 26% for '24, and 12% for 2023.

Spirit 24 年的利潤率為 26%，2023 年為 12%。

Operating expenses were $1.3 million for Q2 '24, and $1.4 million for Q2 '23.

2024 年第二季的營運費用為 130 萬美元，23 年第二季的營運費用為 140 萬美元。

Our lowered expenses reflect the success of our continued restructuring efforts throughout 2024.

我們降低的費用反映了我們在 2024 年持續重組努力的成功。

Our net loss was $1.5 million for Q2 '24, and $1.6 million for Q2 '23, and our adjusted EBITDA was flat at about negative $900,000 for both periods.

我們 24 年第二季的淨虧損為 150 萬美元，23 年第二季的淨虧損為 160 萬美元，兩期調整後的 EBITDA 持平，約為負 90 萬美元。

During Q2, we closed on a $1.1 million debt facility for working capital.

第二季度，我們完成了 110 萬美元的債務融資，用於營運資金。

We will now open the floor for questions.

我們現在開始提問。

Operator?

操作員？

Thank you.

謝謝。

We will now begin the question-and-answer session.

我們現在開始問答環節。

(Operator Instructions) This concludes our question-and-answer session.

（操作員說明）我們的問答環節到此結束。

I'd like to turn the conference back over to management for any closing remarks.

我想將會議轉回管理階層進行閉幕致詞。

Great.

偉大的。

Thank you, Rocco.

謝謝你，羅科。

Thank you for the opportunity to share these results with you for the second quarter, and we'll look forward to talking to you soon for the third quarter.

感謝您有機會與您分享第二季的這些結果，我們期待很快與您討論第三季的情況。

Thank you.

謝謝。

Thank you.

謝謝。

This concludes today's conference call.

今天的電話會議到此結束。

We thank you all for attending today's presentation.

我們感謝大家參加今天的演講。

You may now disconnect your lines and have a wonderful day.

您現在可以斷開線路並度過美好的一天。