CELH), maker of CELSIUS®, the premium lifestyle?energy drink formulated to power active lifestyles with ESSENTIAL ENERGY, today reported record first quarter 2024 financial results.
Summary Financials | 1Q 2024 | 1Q 2023 | Change | |||
(Millions except for | ||||||
Revenue | $355.7 | $259.9 | 37 % | |||
N. America | $339.5 | $248.6 | 37 % | |||
International | $16.2 | $11.3 | 43 % | |||
Gross Margin | 51.2 % | 43.8 % | +740 BPS | |||
Net Income | $77.8 | $41.2 | 89 % | |||
Net Income att. to | $64.8 | $31.5 | 106 % | |||
Diluted EPS | $0.27 | $0.13 | 108 % | |||
Adjusted EBITDA* | $88.0 | $48.7 | 81 % |
John Fieldly, Chairman and CEO of Celsius Holdings, Inc., said: "Celsius reported its best first quarter ever driving record revenue and contributing 47%1 of the quarterly year-over-year growth in the energy drink category. Our category share of 11.5 percent as of April 14 2 reflects the early impact of shelf space gains that we are earning from company-record and ongoing retailer resets, which we believe will serve as a flywheel for our continued growth. Celsius product innovation this year has delighted consumers with the most refreshing products we've ever created."
Jarrod Langhans, Chief Financial Officer of Celsius Holdings, Inc., said: "Celsius' first quarter revenue of $356 million and year-over-year growth of 37 percent is a record, despite changes in days on hand inventory by our largest customer. Our solid 51 percent first quarter gross margin reflects a balanced and disciplined approach to leveraging while simultaneously building the business and expanding globally, as well as an accelerated benefit from raw materials pricing and reduced freight costs."
*The company reports financial results in accordance with generally accepted accounting principles in the United States ("GAAP"), but management believes that disclosure of Adjusted EBITDA, a non-GAAP financial measure that management uses to assess our performance, may provide users with additional insights into operating performance. Please see "Use of Non-GAAP Measures" and reconciliations of this non-GAAP measure to the most directly comparable GAAP measure, both of which can be found below.
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About Celsius Holdings, Inc.
CELH) is the maker of energy drink brand CELSIUS®, a lifestyle energy drink born in fitness and a pioneer in the rapidly growing energy category. For more information, please visit www.celsiusholdings.com.
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Forward-Looking Statements CELSIUS HOLDINGS, INC. - FINANCIAL TABLES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except par value) (Unaudited) March 31, December 31, ASSETS Current assets: Cash and cash equivalents $ 879,498 $ 755,981 Accounts receivable-net 200,117 183,703 Note receivable-current-net 2,259 2,318 Inventories-net 197,504 229,275 Prepaid expenses and other current assets 21,523 19,503 Deferred other costs-current 14,124 14,124 Total current assets 1,315,025 1,204,904 Property and equipment-net 28,350 24,868 Deferred tax assets 22,437 29,518 Right of use assets-operating leases 1,688 1,957 Right of use assets-finance leases 263 208 Other long-term assets 7,963 291 Deferred other costs-non-current 244,807 248,338 Intangibles-net 11,741 12,139 Goodwill 13,866 14,173 Total Assets $ 1,646,140 $ 1,536,396 LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 40,196 $ 42,840 Accrued expenses 63,871 62,120 Income taxes payable 58,619 50,424 Accrued promotional allowance 129,201 99,787 Lease liability obligation-operating leases 821 980 Lease liability obligation-finance leases 61 59 Deferred revenue-current 9,513 9,513 Other current liabilities 12,987 10,890 Total current liabilities 315,269 276,613 Lease liability obligation-operating leases 850 955 Lease liability obligation-finance leases 245 193 Deferred tax liability 2,248 2,880 Deferred revenue-non-current 164,849 167,227 Total Liabilities 483,461 447,868 Commitment and contingencies Mezzanine Equity: Series A convertible preferred shares, $0.001 par value, 5% cumulative dividends; 824,488 824,488 Stockholders' Equity: Common stock, $0.001 par value; 300,000,000 shares authorized, 233,070,146 and 78 77 Additional paid-in capital 281,247 276,717 Accumulated other comprehensive loss (2,055) (701) Retained earnings (accumulated deficit) 58,921 (12,053) Total Stockholders' Equity 338,191 264,040 Total Liabilities, Mezzanine Equity and Stockholders' Equity $ 1,646,140 $ 1,536,396 CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (In thousands, except per share amounts) (Unaudited) For the Three Months Ended 2024 2023 Revenue $ 355,708 $ 259,939 Cost of revenue 173,501 146,121 Gross profit 182,207 113,818 Selling, general and administrative expenses 99,017 68,905 Income (loss) from operations 83,190 44,913 Other income (expense): Interest income on note receivable 28 45 Interest income 9,612 4,924 Foreign exchange loss (369) (118) Total other income 9,271 4,851 Net income before income taxes 92,461 49,764 Income tax expense (14,650) (8,537) Net income $ 77,811 $ 41,227 Dividends on Series A preferred shares (6,837) (6,781) Income allocated to participating preferred shares (6,128) (2,934) Net income attributable to common $ 64,846 $ 31,512 Other comprehensive income (loss): Foreign currency translation (loss) gain, net of (1,354) 594 Comprehensive income (loss) $ 63,492 $ 32,106 *Earnings per share: Basic $ 0.28 $ 0.14 Dilutive $ 0.27 $ 0.13
2024
2023
1,466,666 shares issued and outstanding at each of March 31, 2024 and December 31,
2023, aggregate liquidation preference of $550,000 as of March 31, 2024 and December
31, 2023.
231,787,482 shares issued and outstanding at March 31, 2024 and December 31, 2023,
respectively.
March 31,
stockholders
income tax
*Please refer to Note 3 in the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2024, for Earnings per Share reconciliations.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||
Reconciliation of GAAP net income to non-GAAP adjusted EBITDA | |||
Three months ended | |||
2024 | 2023 | ||
Net income (GAAP measure) | $ 77,811 | $ 41,227 | |
Add back/(Deduct): | |||
Net interest income | (9,640) | (4,969) | |
Income tax expense | 14,650 | 8,537 | |
Depreciation and amortization expense | 1,229 | 549 | |
Non-GAAP EBITDA | 84,050 | 45,344 | |
Stock-based compensation13 | 3,563 | 5,507 | |
Foreign exchange | 369 | 118 | |
Distributor Termination14 | - | (2,234) | |
Non-GAAP Adjusted EBITDA | $ 87,982 | $ 48,735 | |
USE OF NON-GAAP MEASURES
Celsius defines Adjusted EBITDA as net income before net interest income, income tax expense (benefit), and depreciation and amortization expense, further adjusted by excluding stock-based compensation expense, foreign exchange gains or losses, distributor termination fees, legal settlement costs and certain impairment charges. Adjusted EBITDA is a non-GAAP financial measure.
Celsius uses Adjusted EBITDA for operational and financial decision-making and believes these measures are useful in evaluating its performance because they eliminate certain items that management does not consider indicators of Celsius' operating performance. Adjusted EBITDA may also be used by many of Celsius' investors, securities analysts, and other interested parties in evaluating its operational and financial performance across reporting periods. Celsius believes that the presentation of Adjusted EBITDA provides useful information to investors by allowing an understanding of measures that it uses internally for operational decision-making, budgeting and assessing operating performance.
Adjusted EBITDA is not a recognized term under GAAP and should not be considered as a substitute for net income or any other financial measure presented in accordance with GAAP. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of Celsius' results as reported under GAAP. Celsius strongly encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.
Because non-GAAP financial measures are not standardized, Adjusted EBITDA, as defined by Celsius, may not be comparable to similarly titled measures reported by other companies. It therefore may not be possible to compare Celsius' use of these non-GAAP financial measures with those used by other companies.
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1 | Circana Total US MULOC L13W Ended 3/31/24, RTD Energy |
2 | Circana Total US MULOC L4W Ended 4/14/24, RTD Energy |
3 | Circana Total US MULOC L13W ended 3/31/24, RTD Energy |
4 | Circana Total US MULOC ended 4/21/24, RTD Energy |
5 | Circana Total US MULOC L4W ended 4/14/24, RTD Energy |
6 | Circana Total US MULOC RTD energy weekly sugar free dollar share from 4/11/21 - 3/31/24 |
7 | Circana Total US MULOC L13W ended 3/31/24, RTD Energy |
8 | Circana Total US MULOC L13W ended 3/31/24, RTD Energy |
9 | Stackline Total US Energy Drink Category L14W ended 3/30/24 |
10 | Circana Total US MULOC L4W ended 3/24/24, RTD Energy |
11 | Circana Total US MULOC L4W ended 3/24/24, RTD Energy |
12 | Circana Total US MULOC L4W ended 3/24/24, Energy Powders |
13 | Selling, general and administrative expenses related to employee non-cash stock-based compensation expense. Stock-based compensation expense consists of non-cash charges for the estimated fair value of unvested restricted share unit and stock option awards granted to employees and directors. The Company believes that the exclusion provides a more accurate comparison of operating results and is useful to investors to understand the impact that stock-based compensation expense has on its operating results. |
14 | 2023 distributor termination represents reversals of accrued termination payments. The unused funds designated for termination expense payments to legacy distributors were reimbursed to Pepsi for the quarter ended June 30, 2023. |
SOURCE Celsius Holdings, Inc.
