1. WEST's Q3 net sales reached $354.8 million, up 60.7%. 2. Gross profit increased 11.6%, but net loss rose to $19.1 million. 3. Issued $30 million in convertible notes with a 5% interest rate. 4. Amended credit agreement improved compliance levels until Q3 2026. 5. Re-evaluating 2026 outlook due to market and price uncertainties.
Despite a net loss, strong revenue growth and a new convertible note issuance indicate financial stability, reminiscent of previous times when similar actions led to positive market reactions for growth companies.
The combination of significant sales growth with strategic financing and outlined future outlook gives strong grounds for potential positive market movements.
The issuance of convertible notes and credit agreement amendments may support future growth and stability, impacting investor sentiment positively in the long run as these measures translate into operational improvements.
Announces Issuance of $30.0 million Convertible Senior Unsecured Notes due 2031
Announces Amendment to Existing Credit Agreement
LITTLE ROCK, Ark., Nov. 06, 2025 (GLOBE NEWSWIRE) -- Westrock Coffee Company (NASDAQ:WEST) ("Westrock Coffee" or the "Company") today reported financial results for the third quarter ended September 30, 2025.
Third Quarter Highlights1
Commenting on our results, Scott T. Ford, CEO and Co-founder stated, "We are pleased to announce another quarter of record results, which reflect the strength of our customer-centered model and the benefits of the strategic investments that we have made over the past three years. We remain on track toward our goal of becoming the premiere integrated, strategic supplier to the pre-eminent global coffee, tea and energy beverage brands."
Capital Markets Activity
On November 4, 2025, the Company sold and issued in a private placement $30.0 million in aggregate principal amount of 5.00% convertible senior notes due 2031 (the "Convertible Notes"). The Convertible Notes are senior unsecured obligations of the Company, and bear interest at a rate equal to 5.00% per year. The Convertible Notes are convertible into shares of the Company's common stock in certain circumstances and during certain periods at a conversion price of $5.25 per share, subject to adjustment.
________________________________
1 Unless otherwise indicated, all comparisons are to the prior year period.
2 Consolidated Adjusted EBITDA is a non-GAAP financial measure. The definition of Consolidated Adjusted EBITDA is included under the section titled "Non-GAAP Financial Measures" and a reconciliation of Consolidated Adjusted EBITDA to the most directly comparable GAAP measure is provided in the tables that accompany this release.
3 Segment Adjusted EBITDA is a segment performance measure, which is required by U.S. GAAP to be disclosed in accordance with FASB Accounting Standards Codification 280, Segment Reporting. Segment Adjusted EBITDA is defined consistently with Consolidated Adjusted EBITDA, except that it excludes scale-up costs related to our Conway Facility.
The Company also announced it has amended its existing credit agreement to increase the Company's total net leverage financial covenant compliance levels and decrease its minimum interest coverage ratio compliance levels through the third quarter of 2026.
Wells Fargo Securities served as Capital Markets Advisor to Westrock Coffee. Wachtell, Lipton, Rosen & Katz served as legal counsel to Westrock Coffee.
Financial Outlook
The Company is updating its 2025 outlook to reflect the Company's current expectations regarding its Consolidated Adjusted EBITDA, Segment Adjusted EBITDA and Beverage Solutions Credit Agreement secured net leverage ratio for the fiscal year.
Consolidated Guidance
| 2025 | ||||||
| (Millions) | Low | High | ||||
| Consolidated Adjusted EBITDA | $ | 60.0 | $ | 65.0 | ||
The Company is not readily able to provide a reconciliation of forecasted Consolidated Adjusted EBITDA to forecasted GAAP net income (loss) without unreasonable effort because certain items that impact such figure are uncertain or outside the Company's control and cannot be reasonably predicted. Such items include the impact of non-cash gains or losses resulting from market-to-market adjustments, among others.
Segment Guidance
| 2025 | ||||||
| (Millions) | Low | High | ||||
| Segment Adjusted EBITDA | ||||||
| Beverage Solutions | $ | 63.0 | $ | 68.0 | ||
| SS&T | 14.0 | 16.0 | ||||
Leverage Guidance
| December 31, | |
| 2025 | |
| Beverage Solutions Credit Agreement secured net leverage ratio | 4.50x |
The Company is not readily able to provide a reconciliation of forecasted Beverage Solutions Credit Agreement Adjusted EBITDA to forecasted Beverage Solutions Adjusted EBITDA without unreasonable effort because certain items that impact such figure are uncertain or outside the Company's control and cannot be reasonably predicted.
Due to uncertainties regarding projected customer demand resulting from recently announced industry consolidation, and the continued elevation in coffee prices and tariffs, the Company is re-evaluating its 2026 outlook provided in its earnings release dated March 11, 2025. The Company will update its 2026 outlook when it reports its full year 2025 results.
Management will provide additional details regarding the 2025 and 2026 outlook on its earnings results call to be held today.
Conference Call Details
Westrock Coffee will host a conference call and webcast at 4:30 p.m. ET today to discuss this release. To participate in the live earnings call and question and answer session, please register HERE and dial-in information will be provided directly to you. The live audio webcast will be accessible in the "Events and Presentations" section of the Company's Investor Relations website at https://investors.westrockcoffee.com. An archived replay of the webcast will be available shortly after the live event has concluded and will be available for a minimum of 14 days.
About Westrock Coffee
Westrock Coffee is a leading integrated coffee, tea, flavors, extracts, and ingredients solutions provider in the United States, providing coffee sourcing, supply chain management, product development, roasting, packaging, and distribution services to the retail, food service and restaurant, convenience store and travel center, non-commercial account, CPG, and hospitality industries around the world. With offices in 10 countries, the Company sources coffee and tea from numerous countries of origin.
Forward-Looking Statements
Certain statements in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended from time to time. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook," and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, but are not limited to, our financial outlook, our expectations regarding leverage ratios and compliance with the financial covenants in our credit agreement, expected volume growth in the Company's core coffee business, our expectations regarding volume commitments from existing single serve customers and new single serve customer volumes, the plans, objectives, expectations, and intentions of Westrock Coffee, and other statements that are not historical facts. These statements are based on information available to Westrock Coffee as of the date hereof and Westrock Coffee is not under any duty to update any of the forward-looking statements after the date of this communication to conform these statements to actual results. These statements are based on various assumptions, whether or not identified in this communication, and on the current expectations of the management of Westrock Coffee as of the date hereof and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and should not be relied on by an investor, or others, as a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Westrock Coffee. These forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to, changes in domestic and foreign business, market (including continued increases in the "C" market price of green coffee), financial, political (including effects of a continued government shutdown), and legal conditions; our inability to secure an adequate supply of key raw materials, including green coffee and tea, or disruption in our supply chain, including from tariffs or trade restrictions; risks relating to the uncertainty of the projected financial information with respect to Westrock Coffee; risks related to the rollout of Westrock Coffee's business and the timing of expected business milestones; the effects of competition and industry consolidation on Westrock Coffee's business; the ability of Westrock Coffee to issue equity or equity-linked securities or obtain debt financing in the future; Westrock Coffee's future level of indebtedness, which may reduce funds available for other business purposes and reduce the Company's operational flexibility; the risk that Westrock Coffee fails to attract, motivate or retain qualified personnel; the risk that Westrock Coffee fails to fully realize the potential benefits of acquisitions or joint ventures or has difficulty successfully integrating acquired companies; the availability of equipment and the timely performance by suppliers involved with the build-out of the Conway, Arkansas extract and ready-to-drink facility; Westrock Coffee's inability to complete the installation and commercialization of its second RTD can line or RTD glass line as expected or the risk of incurring additional expenses in the process; the loss of significant customers or delays in bringing their products to market; litigation or legal disputes, which could lead us to incur significant liabilities and costs or harm our reputation; the risk of incurring additional costs if Westrock Coffee no longer qualifies as an emerging growth company (as defined in the JOBS Act); and those factors discussed in Westrock Coffee's Annual Report on Form 10-K, which was filed with the United States Securities and Exchange Commission (the "SEC") on March 12, 2025, in Part I, Item 1A "Risk Factors" and other documents Westrock Coffee has filed, or will file, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Westrock Coffee does not presently know, or that Westrock Coffee currently believes are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. In addition, the forward-looking statements reflect Westrock Coffee's expectations, plans, or forecasts of future events and views as of the date of this communication. Westrock Coffee anticipates that subsequent events and developments will cause Westrock Coffee's assessments to change. However, while Westrock Coffee may elect to update these forward-looking statements at some point in the future, Westrock Coffee specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as a representation of Westrock Coffee's assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements.
Contacts
Media:
PR@westrockcoffee.com
Investor Contact:
IR@westrockcoffee.com
| Westrock Coffee Company | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (Unaudited) | ||||||||
| (Thousands, except par value) | September 30, 2025 | December 31, 2024 | ||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 33,971 | $ | 26,151 | ||||
| Restricted cash | 14,413 | 9,413 | ||||||
| Accounts receivable, net of allowance for credit losses of $1,274 and $3,995, respectively | 97,660 | 99,566 | ||||||
| Inventories | 212,970 | 163,323 | ||||||
| Derivative assets | 14,006 | 19,746 | ||||||
| Prepaid expenses and other current assets | 20,626 | 15,444 | ||||||
| Total current assets | 393,646 | 333,643 | ||||||
| Property, plant and equipment, net | 485,111 | 467,011 | ||||||
| Goodwill | 116,111 | 116,111 | ||||||
| Intangible assets, net | 109,011 | 114,879 | ||||||
| Operating lease right-of-use assets | 60,945 | 63,380 | ||||||
| Other long-term assets | 13,188 | 6,756 | ||||||
| Total Assets | $ | 1,178,012 | $ | 1,101,780 | ||||
| LIABILITIES, CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' EQUITY | ||||||||
| Current maturities of long-term debt | $ | 17,875 | $ | 14,057 | ||||
| Short-term debt | 84,120 | 54,659 | ||||||
| Accounts payable | 75,674 | 84,255 | ||||||
| Supply chain finance program | 98,707 | 78,838 | ||||||
| Derivative liabilities | 30,655 | 11,966 | ||||||
| Accrued expenses and other current liabilities | 77,477 | 34,095 | ||||||
| Total current liabilities | 384,508 | 277,870 | ||||||
| Long-term debt, net | 383,534 | 325,880 | ||||||
| Convertible notes payable - related party, net | 49,758 | 49,706 | ||||||
| Deferred income taxes | 15,397 | 14,954 | ||||||
| Operating lease liabilities | 58,742 | 60,692 | ||||||
| Other long-term liabilities | 1,041 | 1,346 | ||||||
| Total liabilities | 892,980 | 730,448 | ||||||
| Commitments and contingencies | ||||||||
| Series A Convertible Preferred Shares, $0.01 par value, 24,000 shares authorized, 23,511 shares and 23,511 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively, $11.50 liquidation value | 273,590 | 273,850 | ||||||
| Shareholders' Equity | ||||||||
| Preferred stock, $0.01 par value, 26,000 shares authorized, no shares issued and outstanding | — | — | ||||||
| Common stock, $0.01 par value, 300,000 shares authorized, 96,825 shares and 94,221 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively | 968 | 942 | ||||||
| Additional paid-in-capital | 541,657 | 519,878 | ||||||
| Accumulated deficit | (510,806 | ) | (442,922 | ) | ||||
| Accumulated other comprehensive income (loss) | (20,377 | ) | 19,584 | |||||
| Total shareholders' equity | 11,442 | 97,482 | ||||||
| Total Liabilities, Convertible Preferred Shares and Shareholders' Equity | $ | 1,178,012 | $ | 1,101,780 | ||||
| Westrock Coffee Company | ||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| (Thousands, except per share data) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net sales | $ | 354,825 | $ | 220,860 | $ | 849,480 | $ | 621,749 | ||||||||
| Costs of sales | 313,423 | 183,775 | 737,610 | 505,987 | ||||||||||||
| Gross profit | 41,402 | 37,085 | 111,870 | 115,762 | ||||||||||||
| Selling, general and administrative expense | 46,996 | 46,132 | 141,271 | 142,182 | ||||||||||||
| Transaction, restructuring and integration expense | 3,029 | 2,538 | 7,297 | 9,901 | ||||||||||||
| Impairment charges | — | 1,165 | — | 1,996 | ||||||||||||
| Loss (gain) on disposal of property, plant and equipment | 8 | (8 | ) | 15 | 965 | |||||||||||
| Total operating expenses | 50,033 | 49,827 | 148,583 | 155,044 | ||||||||||||
| Loss from operations | (8,631 | ) | (12,742 | ) | (36,713 | ) | (39,282 | ) | ||||||||
| Other (income) expense | ||||||||||||||||
| Interest expense | 14,023 | 6,889 | 39,741 | 21,921 | ||||||||||||
| Change in fair value of warrant liabilities | — | (5,481 | ) | — | (7,134 | ) | ||||||||||
| Other, net | (992 | ) | (10 | ) | (3,962 | ) | 223 | |||||||||
| Loss before income taxes and equity in earnings from unconsolidated entities | (21,662 | ) | (14,140 | ) | (72,492 | ) | (54,292 | ) | ||||||||
| Income tax expense (benefit) | (122 | ) | 84 | 1,336 | 1,254 | |||||||||||
| Equity in (earnings) loss from unconsolidated entities | (2,437 | ) | 35 | (5,944 | ) | 145 | ||||||||||
| Net loss | $ | (19,103 | ) | $ | (14,259 | ) | $ | (67,884 | ) | $ | (55,691 | ) | ||||
| Amortization of Series A Convertible Preferred Shares | 88 | 88 | 260 | 262 | ||||||||||||
| Net loss attributable to common shareholders | $ | (19,015 | ) | $ | (14,171 | ) | $ | (67,624 | ) | $ | (55,429 | ) | ||||
| Loss per common share: | ||||||||||||||||
| Basic | $ | (0.20 | ) | $ | (0.16 | ) | $ | (0.71 | ) | $ | (0.63 | ) | ||||
| Diluted | $ | (0.20 | ) | $ | (0.16 | ) | $ | (0.71 | ) | $ | (0.63 | ) | ||||
| Weighted-average number of shares outstanding: | ||||||||||||||||
| Basic | 95,569 | 88,540 | 94,847 | 88,320 | ||||||||||||
| Diluted | 95,569 | 88,540 | 94,847 | 88,320 | ||||||||||||
| Westrock Coffee Company | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (Unaudited) | ||||||||
| Nine Months Ended September 30, | ||||||||
| (Thousands) | 2025 | 2024 | ||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (67,884 | ) | $ | (55,691 | ) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 40,669 | 23,196 | ||||||
| Impairment charges | — | 1,996 | ||||||
| Equity-based compensation | 11,709 | 8,508 | ||||||
| Provision for credit losses | 165 | 1,368 | ||||||
| Amortization of deferred financing fees included in interest expense | 2,744 | 2,432 | ||||||
| Write-off of unamortized deferred financing fees | 137 | — | ||||||
| Loss on disposal of property, plant and equipment | 15 | 965 | ||||||
| Gain on de-consolidation of Rwanda Trading Company | (2,291 | ) | — | |||||
| Mark-to-market adjustments | (983 | ) | (2,692 | ) | ||||
| Change in fair value of warrant liabilities | — | (7,134 | ) | |||||
| Foreign currency transactions | (141 | ) | 461 | |||||
| Deferred income tax expense (benefit) | 1,336 | 1,133 | ||||||
| Other | (4,784 | ) | 1,003 | |||||
| Change in operating assets and liabilities: | ||||||||
| Accounts receivable | (3,932 | ) | (4,930 | ) | ||||
| Inventories | (54,752 | ) | (7,191 | ) | ||||
| Derivative assets and liabilities | (12,025 | ) | 12,685 | |||||
| Prepaid expense and other assets | (1,891 | ) | 1,447 | |||||
| Accounts payable | 18,795 | (2,650 | ) | |||||
| Accrued liabilities and other | 17,410 | 9,071 | ||||||
| Net cash used in operating activities | (55,703 | ) | (16,023 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Additions to property, plant and equipment | (79,885 | ) | (141,451 | ) | ||||
| Additions to intangible assets | (85 | ) | (144 | ) | ||||
| Proceeds from sale of equity method investments and non-marketable securities | 500 | — | ||||||
| Acquisition of equity method investments and non-marketable securities, inclusive of cash contributed | (2,952 | ) | — | |||||
| Proceeds from sale of property, plant and equipment | 329 | 1,225 | ||||||
| Proceeds from deferred purchase price of sold trade receivables | 3,924 | — | ||||||
| Net cash used in investing activities | (78,169 | ) | (140,370 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Payments on debt | (61,215 | ) | (151,968 | ) | ||||
| Proceeds from debt | 161,923 | 250,882 | ||||||
| Payments on supply chain financing program | (131,068 | ) | (121,203 | ) | ||||
| Proceeds from supply chain financing program | 150,937 | 114,008 | ||||||
| Proceeds from convertible notes payable | — | 22,000 | ||||||
| Proceeds from convertible notes payable - related party | — | 50,000 | ||||||
| Payment of debt issuance costs | (2,730 | ) | (3,329 | ) | ||||
| Payment of convertible notes payable issuance costs | — | (511 | ) | |||||
| Net proceeds from (repayments of) repurchase agreements | 11,161 | (7,111 | ) | |||||
| Net change in unremitted cash collections from servicing factored receivables | 7,896 | — | ||||||
| Proceeds from exercise of stock options | — | 12 | ||||||
| Proceeds from issuance of common stock | 12,097 | 635 | ||||||
| Payment of equity issuance costs | (181 | ) | (10 | ) | ||||
| Payment for taxes for net share settlement of equity awards | (2,079 | ) | (2,041 | ) | ||||
| Net cash provided by financing activities | 146,741 | 151,364 | ||||||
| Effect of exchange rate changes on cash | (49 | ) | (131 | ) | ||||
| Net increase (decrease) in cash and cash equivalents and restricted cash | 12,820 | (5,160 | ) | |||||
| Cash and cash equivalents and restricted cash at beginning of period | 35,564 | 37,840 | ||||||
| Cash and cash equivalents and restricted cash at end of period | $ | 48,384 | $ | 32,680 | ||||
The total cash and cash equivalents and restricted cash at June 30, 2025 and 2024 is as follows:
| (Thousands) | September 30, 2025 | September 30, 2024 | ||||
| Cash and cash equivalents | $ | 33,971 | $ | 22,359 | ||
| Restricted cash | 14,413 | 10,321 | ||||
| Total | $ | 48,384 | $ | 32,680 | ||
| Westrock Coffee Company | |||||||||||
| Summary of Segment Results | |||||||||||
| (Unaudited) | |||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
| (Thousands) | 2025 | 2024 | 2025 | 2024 | |||||||
| Beverage Solutions | |||||||||||
| Net sales | $ | 263,029 | $ | 164,010 | $ | 635,922 | $ | 485,322 | |||
| Segment Adjusted EBITDA1 | 20,422 | 11,752 | 49,675 | 35,797 | |||||||
| Sustainable Sourcing & Traceability | |||||||||||
| Net sales2 | $ | 91,796 | $ | 56,850 | $ | 213,558 | $ | 136,427 | |||
| Segment Adjusted EBITDA1 | 5,755 | 2,475 | 10,998 | 3,236 | |||||||
________________________________
1 - Segment Adjusted EBITDA is a segment performance measure, which is required by U.S. GAAP to be disclosed in accordance with FASB Accounting Standards Codification 280, Segment Reporting. Segment Adjusted EBITDA is defined consistently with Consolidated Adjusted EBITDA, except that it excludes scale-up costs related to our Conway Facility. Refer to the Notes to Condensed Consolidated Financial Statements included in our Quarterly Report on Form 10-Q for additional information regarding our segments and a reconciliation of Segment Adjusted EBITDA to loss before income taxes and equity in earnings from unconsolidated entities.
2 - Net of intersegment revenues.
| Westrock Coffee Company | ||||
| Calculation of Beverage Solutions Credit Agreement Secured Net Leverage Ratio | ||||
| (Unaudited) | ||||
| (Thousands, except leverage ratio) | Trailing Twelve-Months | |||
| Beverage Solutions Segment Adjusted EBITDA | $ | 67,517 | ||
| Permissible credit agreement adjustments1 | 8,612 | |||
| Trailing Twelve-Months Credit Agreement Adjusted EBITDA | $ | 76,129 | ||
| End of period: | ||||
| Term loan facility | $ | 148,750 | ||
| Delayed draw term loan facility | 46,250 | |||
| Revolving credit facility | 182,500 | |||
| Letters of credit outstanding | 1,980 | |||
| Secured debt | 379,480 | |||
| Beverage Solutions unrestricted cash and cash equivalents | (31,134 | ) | ||
| Secured net debt | $ | 348,346 | ||
| Beverage Solutions Credit Agreement secured net leverage ratio | 4.58x | |||
________________________________
1 – Primarily consists of $6.1 million of pro forma run-rate impact of cost savings initiatives, as permitted by the Credit Agreement.
The Company is required to maintain compliance with, among other things, a secured net leverage ratio under the terms of its credit agreement (the "Credit Agreement") among the Company, Westrock Beverage Solutions, LLC, as the borrower, Wells Fargo Bank, N.A., as administrative agent, collateral agent, and swingline lender, Wells Fargo Securities, LLC, as sustainability structuring agent, and each issuing bank and lender party thereto. The secured net leverage ratio is calculated as secured net debt divided by Adjusted EBITDA for the trailing twelve-month period, each as defined in the Credit Agreement, and is applicable only to our Beverage Solutions segment.
Management believes that our secured net leverage ratio provides useful information to investors and other users of our financial data regarding the Company's compliance with its material financial covenants. Failure to comply with the covenants in the Credit Agreement or make payments when due could result in an event of default, which, if not cured or waived, could accelerate our repayment obligations under the Credit Agreement and could result in a default and acceleration under other agreements containing cross-default provisions. Under these circumstances, we might not have sufficient funds or other resources to satisfy all of our obligations. As of the date of this press release, the Company is in compliance with its financial covenants.
| Westrock Coffee Company | ||||||||||||||||
| Reconciliation of Net (Loss) Income to Non-GAAP Consolidated Adjusted EBITDA | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (Thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net loss | $ | (19,103 | ) | $ | (14,259 | ) | $ | (67,884 | ) | $ | (55,691 | ) | ||||
| Interest expense | 14,023 | 6,889 | 39,741 | 21,921 | ||||||||||||
| Income tax expense (benefit) | (122 | ) | 84 | 1,336 | 1,254 | |||||||||||
| Depreciation and amortization | 13,898 | 7,680 | 40,669 | 23,196 | ||||||||||||
| EBITDA | 8,696 | 394 | 13,862 | (9,320 | ) | |||||||||||
| Transaction, restructuring and integration expense | 3,029 | 2,538 | 7,297 | 9,901 | ||||||||||||
| Change in fair value of warrant liabilities | — | (5,481 | ) | — | (7,134 | ) | ||||||||||
| Equity-based compensation | 3,629 | 3,028 | 11,709 | 8,508 | ||||||||||||
| Impairment charges | — | 1,165 | — | 1,996 | ||||||||||||
| Conway extract and ready-to-drink facility pre-production costs | 5,246 | 7,937 | 18,766 | 30,115 | ||||||||||||
| Mark-to-market adjustments | 2,531 | 470 | (983 | ) | (2,692 | ) | ||||||||||
| Loss (gain) on disposal of property, plant and equipment | 8 | (8 | ) | 15 | 965 | |||||||||||
| Other | 20 | 226 | (3,946 | ) | 1,506 | |||||||||||
| Consolidated Adjusted EBITDA | $ | 23,159 | $ | 10,269 | $ | 46,720 | $ | 33,845 | ||||||||
Non-GAAP Financial Measures
We refer to EBITDA and Consolidated Adjusted EBITDA in our analysis of our results of operations, which are not required by, or presented in accordance with, accounting principles generally accepted in the United States ("GAAP"). While we believe that net (loss) income, as defined by GAAP, is the most appropriate earnings measure, we also believe that EBITDA and Consolidated Adjusted EBITDA are important non-GAAP supplemental measures of operating performance as they contribute to a meaningful evaluation of the Company's future operating performance and comparisons to the Company's past operating performance. The Company believes that providing these non-GAAP financial measures to investors helps investors evaluate the Company's operating performance, profitability and business trends in a way that is consistent with how management evaluates such performance.
We define "EBITDA" as net (loss) income, as defined by GAAP, before interest expense, provision for income taxes and depreciation and amortization. We define "Consolidated Adjusted EBITDA" as EBITDA before equity-based compensation expense and the impact, which may be recurring in nature, of transaction, restructuring and integration related costs, impairment charges, changes in the fair value of warrant liabilities, non-cash mark-to-market adjustments, certain non-capitalizable costs necessary to place the Conway extract and ready-to-drink facility into commercial production, the write off of unamortized deferred financing costs, costs incurred as a result of the early repayment of debt, gains or losses on dispositions, and other similar or infrequent items (although we may not have had such charges in the periods presented). We believe EBITDA and Consolidated Adjusted EBITDA are important supplemental measures to net (loss) income because they provide additional information to evaluate our operating performance on an unleveraged basis.
Since EBITDA and Consolidated Adjusted EBITDA are not measures calculated in accordance with GAAP, they should be viewed in addition to, and not be considered as alternatives for, net income (loss) determined in accordance with GAAP. Further, our computations of EBITDA and Consolidated Adjusted EBITDA may not be comparable to that reported by other companies that define EBITDA and Consolidated Adjusted EBITDA differently than we do.
