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Dutch Bros Inc. Reports Fourth Quarter and Fiscal Year 2022 Financial Results

02/22/2023

Annual Revenues Increased Almost 50% Year-over-Year to $739.0 million Driven by 133 New Systemwide Shop Openings in 2022

Welcomes New President, Christine Barone

Issues Additional Guidance for 2023

Dutch Bros Inc. (NYSE: BROS; “Dutch Bros” or the “Company”) one of the fastest-growing brands in the food service and restaurant industry in the United States by location count, today reported financial results for the fourth quarter and year ended December 31, 2022.

Joth Ricci, Chief Executive Officer of Dutch Bros Inc., stated, “In 2022, we delivered another strong year of growth with revenue increasing almost 50% to $739.0 million, driven by 133 new shop openings systemwide. For the third consecutive year, we have exceeded our new shop development targets, doubling our shop count since March 2019, despite unprecedented disruption to communities and the economy. These results are a testament to our team’s ongoing ability to execute our proven strategy. As we continue on our 30+ year growth journey, we’re entering 2023 in a position to build market share, supported by our strong people development and new shop pipelines.”

He added, “This year, we are targeting 150 new systemwide shops, which will enable us to achieve our five-year goal of 800 systemwide shops by year-end. Additionally, we expect to be within striking distance of $1 billion in revenue in 2023 and 1,000 systemwide shops by the first half of 2025, creating jobs and opportunities for our employees and the communities in which we serve.”

He added, “On February 6, we welcomed Christine Barone as our new President. Christine will be instrumental in our next phase of growth, helping ensure we are scaling the business in a meaningful, efficient and effective way as we navigate market uncertainty.”

Fourth Quarter 2022 Highlights:

  • Opened 30 new shops, 26 of which were company-operated, across 11 states.
  • Total revenues grew 44.1% to $201.8 million6 as compared to $140.1 million in the same period of 2021.
  • System same shop sales2 declined (0.6)%, inclusive of the impact of our fortressing strategy, which results in sales being transferred from existing shops to new ones, as compared to the same period in 2021 and grew 15.2% on a 3-year stacked basis3. Company-operated same shop sales declined (2.1)%, inclusive of the impact of our fortressing strategy, as compared to the same period of 2021 and grew 16.2% on a 3-year stacked basis3.
  • Company-operated shop revenues increased 53.7% to $175.5 million6, as compared to $114.2 million in the same period of 2021.
  • Company-operated shop gross profit was $38.8 million as compared to $16.6 million4 in the same period of 2021. In the fourth quarter of 2022, company-operated shop gross margins, which includes 220bps of pre-opening expenses and 210bps of Dutch Rewards loyalty app breakage related to 20216, improved to 22.1%. Year-over-year, company-operated shop gross margins increased 760bps.
  • Company-operated shop contribution5, a non-GAAP financial measure, grew 129.2% to $50.0 million as compared to $21.8 million4 in the same period of 2021. In the fourth quarter of 2022, company-operated shop contribution margins, which includes 220bps of pre-opening expenses and 210bps of Dutch Rewards loyalty app breakage related to 20216, improved to 28.5%. Year-over-year, company-operated shop margins increased 940 bps.
  • Selling, general, and administrative expenses were $50.6 million (25.1% of revenue) as compared to $41.4 million4 (29.5% of revenue) in the same period of 2021.
  • Adjusted selling, general, and administrative expenses5, a non-GAAP financial measure, were $38.1 million (18.9% of revenue) as compared to $28.1 million4 (20.1% of revenue) in the same period of 2021.
  • Net loss was $(2.8) million6 as compared to $(8.2) million4 in the same period of 2021.
  • Adjusted EBITDA5, a non-GAAP financial measure, grew 115.7% to $29.8 million6 as compared to $13.8 million4 in the same period of 2021.
  • Adjusted net income5, a non-GAAP financial measure, was $4.8 million6 as compared to $5.1 million4 in the same period of 2021.
  • Net loss per share of Class A and Class D common stock - diluted6 was $(0.01)6 as compared to net loss per share of $(0.03) in the same period of 2021.
  • Adjusted net income per fully exchanged share of common stock5, a non-GAAP financial measure, was $0.036 as compared to $0.03 in the same period of 2021.

Full Year 2022 Highlights:

  • Opened 133 new shops, 120 of which were company-operated, across 11 states.
  • Total revenues grew 48.4% to $739.0 million6 as compared to $497.9 million in 2021.
  • System same shop sales2 grew 1.0%, inclusive of the impact of our fortressing strategy, which results in sales being transferred from existing shops to new ones, as compared to 2021 and 11.4% on a 3-year stacked basis3. Company-operated same shop sales grew 0.6%, inclusive of the impact of our fortressing strategy, as compared to 2021 and 10.4% on a 3-year stacked basis3.
  • Company-operated shop revenues increased 58.4% to $639.7 million6, as compared to $403.7 million in 2021.
  • Company-operated shop gross profit was $121.3 million as compared to $86.7 million4 in 2021. In 2022, company-operated shop gross margins, which includes 280bps of pre-opening expenses and 50bps of Dutch Rewards loyalty app breakage related to 20216, improved to 19.0%. Year-over-year, company-operated shop gross margins decreased 250 bps.
  • Company-operated shop contribution5, a non-GAAP financial measure, grew 53.1% to $157.6 million as compared to $103.0 million4 in 2021. In 2022, company-operated shop contribution margins, which includes 280bps of pre-opening expenses and 50bps of Dutch Rewards loyalty app breakage related to 20216, improved to 24.6%. Year-over-year, company-operated shop margins decreased 90 bps.
  • Selling, general, and administrative expenses were $183.5 million (24.8% of revenue) as compared to $264.5 million4 (53.1% of revenue) in 2021.
  • Adjusted selling, general, and administrative expenses5 were $136.4 million (18.5% of revenue) as compared to $96.5 million4 (19.4% of revenue) in 2021.
  • Net loss was $(19.3) million6 as compared to $(117.9) million4 in 2021.
  • Adjusted EBITDA5, a non-GAAP financial measure, increased 8.4% to $91.2 million6 as compared to $84.1 million4 in 2021.
  • Adjusted net income5, a non-GAAP financial measure, was $25.2 million6 as compared to $51.4 million4 in 2021.
  • Net loss per share of Class A and Class D common stock - diluted was $(0.09)6 as compared to $(0.28) in 2021.
  • Adjusted net income per fully exchanged share of common stock5, a non-GAAP financial measure, was $0.166 as compared to $0.32 in 2021. 

Outlook

Dutch Bros is providing the following full-year 2023 outlook:

  • Total system shop openings in 2023 are expected to be at least 150, of which at least 130 shops will be company-operated.
  • Total revenues are projected to be between $950 million and $1 billion.
  • Same shop sales growth is estimated to be in the low single digits. At this point we have no plans to take additional menu pricing in 2023. We expect low-single digits growth from pricing to roll-over into 2023 from menu pricing taken in 2022.
  • Adjusted EBITDA is estimated to be approximately $125 million. This includes approximately $8 million in labor investments related to wage increases in federal minimum wage markets and approximately $11 million in mandated wage increases in markets that do not adhere to the federal minimum wage standard. This Adjusted EBITDA estimate includes our present assumption around no menu price increases in 2023.
  • Capital expenditures are estimated to be in the range of $225 million to $250 million, which includes approximately $15 million to $20 million for our new roasting facility projected to open in 2024.

_________________

1

 

We have not reconciled guidance for Adjusted EBITDA to the corresponding GAAP financial measure because we do not provide guidance for the various reconciling items. We are unable to provide guidance for these reconciling items because we cannot determine their probable significance, as certain items are outside of our control and cannot be reasonably predicted due to the fact that these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measure is not available without unreasonable effort.

2

 

Same shop sales is defined in the section “Select Financial Metrics”.

3

 

3-Year Stack is calculated as current quarter same shop sales growth plus the sum of the same shop sales growth from the same period of the prior two years. Same shop sales data is based on different shop bases for each time period.

4

 

The Company’s historical results have been revised to reflect an immaterial error correction related to employee sick leave accrual. For additional information, see sections “Consolidated Statements of Operations”, “Company-operated Shop Results”, and “Supplemental Reconciliation of GAAP Actuals to Non-GAAP Actuals”.

5

 

Reconciliation of GAAP to non-GAAP results is provided in the section “Non-GAAP Financial Measures”.

6

 

For the three months and year ended December 31, 2022, we recognized loyalty app breakage revenue of $7.4 million, including $4.9 million for points collected prior to January 1, 2022 that expired on December 31, 2022. 

Conference Call and Webcast Today

Joth Ricci, Chief Executive Officer, and Charles Jemley, Chief Financial Officer, will host a conference call and webcast today at 5:00 p.m. Eastern Time (ET) to discuss financial results for the fourth quarter and year ended December 31, 2022.

Event: Fourth Quarter 2022 Conference Call and Webcast

Date: Wednesday, February 22, 2023

Time: 5:00 p.m. ET

Dial In: 1-201-493-6779

Webcast: https://investors.dutchbros.com under “Events & Presentations”.

The webcast will be archived shortly after the conference call has concluded. We will also publish earnings presentation slides related to these financial results on our website https://investors.dutchbros.com under “Events & Presentations”.

About Dutch Bros Inc.

Dutch Bros Inc. (NYSE: BROS) is a high growth operator and franchisor of drive-thru shops that focus on serving high QUALITY, hand-crafted beverages with unparalleled SPEED and superior SERVICE. Founded in 1992 by brothers Dane and Travis Boersma, Dutch Bros began with a double-head espresso machine and a pushcart in Grants Pass, Oregon. While espresso-based beverages are still at the core of what we do, Dutch Bros now offers a wide variety of unique, customizable cold and hot beverages that delight a broad array of customers. We believe Dutch Bros is more than just the products we serve—we are dedicated to making a massive difference in the lives of our employees, customers and communities. This combination of hand-crafted and high-quality beverages, our unique drive-thru experience and our community-driven, people-first culture has allowed us to successfully open new shops and continue to share the “Dutch Luv” at 671 locations across 14 states as of December 31, 2022.

To learn more about Dutch Bros, visit www.dutchbros.com, follow Dutch Bros Coffee on Instagram, Facebook, Twitter, and TikTok, and download the Dutch Bros app to earn points and score rewards!

Dutch Bros, our Windmill logo, Dutch Bros. Blue Rebel, and our other registered and common law trade names, trademarks and service marks are the property of Dutch Bros Inc. All other trademarks, trade names and service marks appearing in this Earnings Release are the property of their respective owners. Solely for convenience, the trademarks and trade names in this Earnings Release may be referred to without the ® and ™ symbols, but such references should not be construed as any indicator that their respective owners will not assert their rights thereto.

Forward-Looking Statements

In addition to historical information, this release contains a number of “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, information concerning Dutch Bros’ possible or assumed future results of operations, including guidance for 2023, new shop openings, business strategies, and potential growth opportunities. These statements are based on Dutch Bros’ current expectations and beliefs, as well as a number of assumptions concerning future events. When used in this press release, the words “estimates,” “projected,” “expects,” “should,” “guidance,” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Dutch Bros’ control that could cause actual results to differ materially from the results discussed in the forward-looking statements, including those related to general economic conditions, commodity inflation, increased labor costs, disruptions in our supply chain, ability to hire and retain employees, the ongoing COVID-19 pandemic, and other risks, including those described under the heading “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2022 filed with the SEC on November 10, 2022 and in our future reports to be filed with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2022. Forward-looking statements contained in this press release are made as of this date, and Dutch Bros undertakes no duty to update such information except as required under applicable law.

DUTCH BROS INC.
Consolidated Statements of Operations

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

(in thousands, except per share amounts; unaudited)

 

 

2022

 

 

2021 ¹

 

 

2022

 

 

2021 ¹

REVENUES

 

 

 

 

 

 

 

 

Company-operated shops

 

$

175,510

 

 

$

114,198

 

 

$

639,710

 

 

$

403,746

 

Franchising and other

 

 

26,317

 

 

 

25,882

 

 

 

99,302

 

 

 

94,130

 

Total revenues

 

 

201,827

 

 

 

140,080

 

 

 

739,012

 

 

 

497,876

 

 

 

 

 

 

 

 

 

 

COSTS AND EXPENSES

 

 

 

 

 

 

 

 

Cost of sales

 

 

147,467

 

 

 

105,819

 

 

 

558,096

 

 

 

344,573

 

Selling, general and administrative

 

 

50,594

 

 

 

41,355

 

 

 

183,528

 

 

 

264,529

 

Total costs and expenses

 

 

198,061

 

 

 

147,174

 

 

 

741,624

 

 

 

609,102

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM OPERATIONS

 

 

3,766

 

 

 

(7,094

)

 

 

(2,612

)

 

 

(111,226

)

 

 

 

 

 

 

 

 

 

OTHER EXPENSE

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(6,922

)

 

 

(1,845

)

 

 

(18,018

)

 

 

(7,093

)

Other income (expense)

 

 

5,638

 

 

 

(141

)

 

 

3,976

 

 

 

(1,240

)

Total other expense

 

 

(1,284

)

 

 

(1,986

)

 

 

(14,042

)

 

 

(8,333

)

 

 

 

 

 

 

 

 

 

INCOME (LOSS) BEFORE INCOME TAXES

 

 

2,482

 

 

 

(9,080

)

 

 

(16,654

)

 

 

(119,559

)

Income tax expense (benefit)

 

 

5,299

 

 

 

(912

)

 

 

2,599

 

 

 

(1,628

)

NET LOSS

 

$

(2,817

)

 

$

(8,168

)

 

$

(19,253

)

 

$

(117,931

)

Less: Net loss attributable to Dutch Bros OpCo prior to the Reorganization Transactions

 

 

 

 

 

 

 

 

 

 

 

(67,374

)

Less: Net loss attributable to non-controlling interests

 

 

(2,154

)

 

 

(6,566

)

 

 

(14,500

)

 

 

(37,878

)

NET LOSS ATTRIBUTABLE TO DUTCH BROS INC.

 

$

(663

)

 

$

(1,602

)

 

$

(4,753

)

 

$

(12,679

)

Net loss per share of Class A and Class D common stock 2

 

 

 

 

 

 

 

 

Basic

 

$

(0.01

)

 

$

(0.03

)

 

$

(0.09

)

 

$

(0.28

)

Diluted

 

$

(0.01

)

 

$

(0.03

)

 

$

(0.09

)

 

$

(0.28

)

Weighted-average shares of Class A and Class D common stock outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

55,286

 

 

$

45,874

 

 

 

51,871

 

 

$

45,864

 

Diluted

 

 

55,286

 

 

$

45,874

 

 

 

51,871

 

 

$

45,864

 

_________________

1

 

The Company identified an immaterial error related to the accrual of employee sick leave and the application of ASC 710, Compensation - General, which resulted in corrections to prior period reported amounts within the consolidated statement of operations with impacted line items presented below for the three and twelve months ended December 31, 2021, respectively.

(in thousands)

 

Three Months
Ended December 31, 2021

 

Year Ended
December 31, 2021

Decrease in cost of sales

 

(425)

 

(1,540)

Decrease in selling, general and administrative expenses

 

(85)

 

(506)

Decrease in total costs and expenses

 

(510)

 

(2,046)

Decrease in loss from operations

 

510

 

2,046

Decrease in loss before income taxes

 

510

 

2,046

Decrease in net loss

 

510

 

2,046

Decrease in net loss attributable to Dutch Bros OpCo prior to the Reorganization Transactions

 

 

1,228

Decrease in net loss attributable to non-controlling interests

 

364

 

583

Decrease in net loss attributable to Dutch Bros Inc

 

146

 

235

2

 

Basic and diluted net loss per share of Class A and Class D common stock are applicable only for periods subsequent to  September 14, 2021, which is the effective date of the Company’s Reorganization Transactions and IPO.

DUTCH BROS INC.
Segment Financials

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

(in thousands; unaudited)

 

 

2022

 

 

2021 ¹

 

 

2022

 

 

2021 ¹

Revenues:

 

 

 

 

 

 

 

 

Company-operated shops

 

$

175,510

 

 

$

114,198

 

 

$

639,710

 

 

$

403,746

 

Franchising and other

 

 

26,317

 

 

 

25,882

 

 

 

99,302

 

 

 

94,130

 

Total revenues

 

 

201,827

 

 

 

140,080

 

 

 

739,012

 

 

 

497,876

 

Cost of Sales:

 

 

 

 

 

 

 

 

Company-operated shops

 

 

136,760

 

 

 

97,638

 

 

 

518,383

 

 

 

317,045

 

Franchising and other

 

 

10,707

 

 

 

8,181

 

 

 

39,713

 

 

 

27,528

 

Total cost of sales

 

 

147,467

 

 

 

105,819

 

 

 

558,096

 

 

 

344,573

 

Segment gross profit:

 

 

 

 

 

 

 

 

Company-operated shops

 

 

38,750

 

 

 

16,560

 

 

 

121,327

 

 

 

86,701

 

Franchising and other

 

 

15,610

 

 

 

17,701

 

 

 

59,589

 

 

 

66,602

 

Total gross profit

 

 

54,360

 

 

 

34,261

 

 

 

180,916

 

 

 

153,303

 

Depreciation and amortization:

 

 

 

 

 

 

 

 

Company-operated shops

 

 

11,235

 

 

 

5,253

 

 

 

36,306

 

 

 

16,291

 

Franchising and other

 

 

1,366

 

 

 

1,535

 

 

 

5,706

 

 

 

6,263

 

All other

 

 

596

 

 

 

702

 

 

 

2,716

 

 

 

2,663

 

Total depreciation and amortization

 

 

13,197

 

 

 

7,490

 

 

 

44,728

 

 

 

25,217

 

Segment contribution:

 

 

 

 

 

 

 

 

Company-operated shops

 

 

49,985

 

 

 

21,813

 

 

 

157,633

 

 

 

102,992

 

Franchising and other

 

 

16,976

 

 

 

19,236

 

 

 

65,295

 

 

 

72,865

 

Total segment contribution

 

 

66,961

 

 

 

41,049

 

 

 

222,928

 

 

 

175,857

 

Selling, general and administrative

 

 

(50,594

)

 

 

(41,355

)

 

 

(183,528

)

 

 

(264,529

)

Interest expense, net

 

 

(6,922

)

 

 

(1,845

)

 

 

(18,018

)

 

 

(7,093

)

Other income (expense)

 

 

5,638

 

 

 

(141

)

 

 

3,976

 

 

 

(1,240

)

INCOME (LOSS) BEFORE INCOME TAXES

 

$

2,482

 

 

$

(9,080

)

 

$

(16,654

)

 

$

(119,559

)

_________________

1

 

The Company identified an immaterial error related to the accrual of employee sick leave and the application of ASC 710, Compensation - General, which resulted in corrections to prior period reported amounts within segment financials with impacted line items presented below for the three and twelve months ended December 31, 2021, respectively.

(in thousands)

 

Three Months
Ended December 31, 2021

 

Year Ended
December 31, 2021

Decrease in company-operated shops cost of sales

 

(415)

 

(1,518)

Decrease in total cost of sales

 

(425)

 

(1,540)

Increase in company-operated shops gross profit

 

415

 

1,518

Increase in total gross profit

 

425

 

1,540

Decrease in selling, general and administrative expenses

 

(85)

 

(506)

Decrease in loss before income taxes

 

510

 

2,046

DUTCH BROS INC.
Company-Operated Shop Results

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

 

2022

 

2021 ¹

 

2022

 

2021 ¹

(in thousands; unaudited)

 

$

 

%

 

$

 

%

 

$

 

%

 

$

 

%

Company-operated shops revenue

 

175,510

 

100.0

 

114,198

 

100.0

 

639,710

 

100.0

 

403,746

 

100.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beverage, food and packaging costs

 

45,602

 

26.0

 

30,658

 

26.8

 

171,864

 

26.9

 

102,222

 

25.3

Labor costs

 

44,860

 

25.5

 

34,466

 

30.2

 

182,861

 

28.6

 

122,161

 

30.3

Occupancy and other costs

 

31,225

 

17.8

 

21,086

 

18.5

 

109,366

 

17.1

 

63,570

 

15.7

Pre-opening costs

 

3,838

 

2.2

 

6,175

 

5.4

 

17,986

 

2.8

 

12,801

 

3.2

Depreciation and amortization

 

11,235

 

6.4

 

5,253

 

4.6

 

36,306

 

5.6

 

16,291

 

4.0

Company-operated shop costs and expenses

 

136,760

 

77.9

 

97,638

 

85.5

 

518,383

 

81.0

 

317,045

 

78.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company-operated shops gross profit

 

38,750

 

22.1

 

16,560

 

14.5

 

121,327

 

19.0

 

86,701

 

21.5

Company-operated shops contribution 2

 

49,985

 

28.5

 

21,813

 

19.1

 

157,633

 

24.6

 

102,992

 

25.5

_________________

1

 

The Company identified an immaterial error related to the accrual of employee sick leave and the application of ASC 710, Compensation - General, which resulted in corrections to prior period reported amounts within the company-operated shop segment with the impacted line items are presented below for the three and twelve months ended December 31, 2021, respectively.

(in thousands)

 

Three Months Ended December 31, 2021

 

Year Ended December 31, 2021

Decrease in company-operated shops labor costs

 

(415)

 

(1,518)

Increase in company-operated shops gross profit

 

415

 

1,518

Increase in company-operated shops contribution

 

415

 

1,518

2

 

Reconciliation of GAAP to non-GAAP results is provided in the section “Non-GAAP Financial Measures”.

DUTCH BROS INC.
Summary Cash Flows Data

 

 

Year Ended
December 31,

(in thousands; unaudited)

 

2022

 

2021

Net cash flows provided by operating activities

 

$ 59,883

 

$ 80,375

Net cash flows used in investing activities

 

(192,572)

 

(121,089)

Net cash provided by financing activities

 

134,361

 

27,580

Net increase (decrease) in cash

 

$ 1,672

 

$ (13,134)

Cash and cash equivalents at beginning of period

 

18,506

 

31,640

Cash and cash equivalents at end of period

 

$ 20,178

 

$ 18,506

DUTCH BROS INC.
Consolidated Balance Sheets

(in thousands)

 

December 31, 2022

 

December 31, 2021 ¹

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

20,178

 

 

$

18,506

 

Accounts receivable, net

 

 

11,966

 

 

 

10,644

 

Inventories, net

 

 

39,229

 

 

 

23,345

 

Prepaid expenses and other current assets

 

 

10,949

 

 

 

8,796

 

Total current assets

 

 

82,322

 

 

 

61,291

 

Property and equipment, net

 

 

365,468

 

 

 

301,998

 

Finance lease right-of-use assets, net

 

 

247,943

 

 

 

 

Operating lease right-of-use assets, net

 

 

169,302

 

 

 

 

Intangibles, net

 

 

8,804

 

 

 

11,103

 

Goodwill

 

 

21,629

 

 

 

18,715

 

Deferred income tax assets, net

 

 

288,765

 

 

 

159,031

 

Other long-term assets

 

 

2,127

 

 

 

1,562

 

Total assets

 

$

1,186,360

 

 

$

553,700

 

LIABILITIES AND EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

21,270

 

 

$

20,440

 

Accrued liabilities

 

 

27,452

 

 

 

20,970

 

Other current liabilities

 

 

7,860

 

 

 

6,471

 

Deferred revenue

 

 

25,335

 

 

 

22,807

 

Line of credit

 

 

110,865

 

 

 

64,104

 

Current portion of tax receivable agreements liability

 

 

 

 

 

450

 

Current portion of finance lease liabilities

 

 

7,971

 

 

 

3,389

 

Current portion of operating lease liabilities

 

 

9,317

 

 

 

 

Current portion of long-term debt

 

 

2,609

 

 

 

103

 

Total current liabilities

 

 

212,679

 

 

 

138,734

 

Deferred revenue, net of current portion

 

 

6,119

 

 

 

5,030

 

Tax receivable agreements liability, net of current portion

 

 

220,923

 

 

 

109,283

 

Finance lease liabilities, net of current portion

 

 

237,130

 

 

 

79,588

 

Operating lease liabilities, net of current portion

 

 

161,228

 

 

 

 

Long-term debt, net of current portion

 

 

96,297

 

 

 

3,503

 

Deferred rent

 

 

 

 

 

3,153

 

Other long-term liabilities

 

 

8

 

 

 

680

 

Total liabilities

 

 

934,384

 

 

 

339,971

 

Equity:

 

 

 

 

Common stock

 

 

2

 

 

 

2

 

Additional paid in capital

 

 

145,613

 

 

 

107,193

 

Accumulated other comprehensive income

 

 

813

 

 

 

 

Accumulated deficit

 

 

(17,310

)

 

 

(12,679

)

Total stockholders' equity attributable to Dutch Bros Inc. / members’ equity

 

 

129,118

 

 

 

94,516

 

Non-controlling interests

 

 

122,858

 

 

 

119,213

 

Total equity

 

 

251,976

 

 

 

213,729

 

Total liabilities and equity

 

$

1,186,360

 

 

$

553,700

 

_______________

1

 

The Company identified an immaterial error related to the accrual of employee sick leave and the application of ASC 710, Compensation - General, which resulted in corrections to prior period reported amounts within the consolidated balance sheet as of December 31, 2021 with impacted line items presented below.

(in thousands)

 

December 31, 2021

Decrease in accrued liabilities

 

(3,543)

Decrease in total current liabilities

 

(3,543)

Decrease in total liabilities

 

(3,543)

Increase in additional paid in capital

 

783

Decrease in accumulated deficit

 

235

Increase in total stockholders’ equity attributable to Dutch Bros Inc. / members’ equity

 

1,018

Increase in non-controlling interests

 

2,525

Increase in total equity

 

3,543

DUTCH BROS INC.
Select Financial Metrics

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

(in thousands, except number of shops data; unaudited)

 

 

2022

 

 

2021 ¹

 

 

2022

 

 

2021 ¹

Shop count, beginning of period

 

 

 

 

 

 

 

 

Company-operated

 

 

370

 

 

 

241

 

 

 

271

 

 

 

182

 

Franchised

 

 

271

 

 

 

262

 

 

 

267

 

 

 

259

 

 

 

 

641

 

 

 

503

 

 

 

538

 

 

 

441

 

Company-operated new openings

 

 

26

 

 

 

30

 

 

 

120

 

 

 

82

 

Franchised new openings

 

 

4

 

 

 

5

 

 

 

13

 

 

 

16

 

Acquisition of franchise shops

 

 

 

 

 

 

 

 

5

 

 

 

7

 

Closures 2

 

 

 

 

 

 

 

 

 

 

 

(1

)

Shop count, end of period

 

 

 

 

 

 

 

 

Company-operated

 

 

396

 

 

 

271

 

 

 

396

 

 

 

271

 

Franchised

 

 

275

 

 

 

267

 

 

 

275

 

 

 

267

 

Total shop count

 

 

671

 

 

 

538

 

 

 

671

 

 

 

538

 

 

 

 

 

 

 

 

 

 

Systemwide AUV 3

 

 

N/A

 

 

 

N/A

 

 

$

1,924

 

 

$

1,850

 

Company-operated shops AUV 3

 

 

N/A

 

 

 

N/A

 

 

$

1,895

 

 

$

1,752

 

 

 

 

 

 

 

 

 

 

Systemwide same shop sales 4, 5

 

 

(0.6

)%

 

 

10.1

%

 

 

1.0

%

 

 

8.4

%

Company-operated same shop sales 4

 

 

(2.1

)%

 

 

11.5

%

 

 

0.6

%

 

 

9.0

%

 

 

 

 

 

 

 

 

 

Systemwide sales 5

 

$

298,253

 

 

$

240,525

 

 

$

1,163,182

 

 

$

913,822

 

Company-operated operating weeks 6

 

 

4,963

 

 

 

3,315

 

 

 

17,489

 

 

 

11,526

 

Franchising and other operating weeks 6

 

 

3,536

 

 

 

3,373

 

 

 

13,828

 

 

 

13,175

 

Dutch Rewards member registrations 7

 

 

453

 

 

 

464

 

 

 

2,004

 

 

 

3,202

 

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

 

2022

 

2021 ¹

 

2022

 

2021 ¹

(in thousands; unaudited)

 

$

 

%

 

$

 

%

 

$

 

%

 

$

 

%

Company-operated shop revenues

 

175,510

 

100.0

 

114,198

 

100.0

 

639,710

 

100.0

 

403,746

 

100.0

Company-operated gross profit

 

38,750

 

22.1

 

16,560

 

14.5

 

121,327

 

19.0

 

86,701

 

21.5

Company-operated shop contribution 8

 

49,985

 

28.5

 

21,813

 

19.1

 

157,633

 

24.6

 

102,992

 

25.5

Selling, general, and administrative expenses

 

50,594

 

25.1

 

41,355

 

29.5

 

183,528

 

24.8

 

264,529

 

53.1

Adjusted selling, general, and administrative expenses 8

 

38,136

 

18.9

 

28,138

 

20.1

 

136,441

 

18.5

 

96,498

 

19.4

NET LOSS

 

(2,817)

 

(1.4)

 

(8,168)

 

(5.8)

 

(19,253)

 

(2.6)

 

(117,931)

 

(23.7)

Adjusted EBITDA 8

 

29,750

 

14.7

 

13,793

 

9.8

 

91,181

 

12.3

 

84,132

 

16.9

___________

1

 

The Company identified an immaterial error related to the accrual of employee sick leave and the application of ASC 710, Compensation - General, which resulted in corrections to prior period reported amounts within the consolidated statement of operations, segment financials, company-operated shop segment financial results, and non-GAAP results for the three and twelve months ended December 31, 2021  with impacted line items presented below.

 

 

  • Net income prior period adjustment details are provided in the section “Consolidated Statements of Operations”.

 

 

  • Company-operated segment gross profit and segment contribution prior period adjustment details are provided in the sections “Segment Financials” and “Company-operated Shop Results”.

 

 

  • Adjusted EBITDA prior period adjustment details are provided in the section “Non-GAAP Financial Measures”.

2

 

Represents a temporary shop closure in 2021 that remains closed in 2022.

3

 

AUVs are determined based on the net sales for any trailing twelve-month period for systemwide and company-operated shops that have been open a minimum of 15 months. AUVs are calculated by dividing the systemwide and company-operated shop net sales by the total number of systemwide and company-operated shops, respectively. Management uses this metric as an indicator of shop growth and future expectations of mature locations.

4

 

Same shop sales reflects the change in year-over-year sales, for the comparable shop base, which we define as shops open for 15 complete months or longer. Management uses this metric as an indicator of shop growth and future expansion strategy. The number of shops included in the systemwide and company-operated comparable bases for the respective periods are presented in the following table.

 

 

Three Months Ended
December 31,

 

Year Ended December 31,

 

 

2022

 

2021

 

2022

 

2021

Systemwide shop base

 

470

 

398

 

414

 

354

Company-operated shop base

 

216

 

157

 

173

 

120

5

 

Systemwide sales and systemwide same shop sales are operating measures that include sales at company-operated shop and sales at franchised shops during the comparable periods presented. Franchise sales represent sales at all franchise shops and are revenues to our franchisees. We do not record franchise sales as revenues; however, our royalty revenues and advertising fund contributions are calculated based on a percentage of franchise sales. As these metrics include sales reported to us by our non-consolidated franchise partners, these metrics should be considered as a supplement to, not a substitute for, our results as reported under GAAP. Management uses these metrics as indicators of our system’s overall financial health, growth and future expansion prospects.

6

 

Company-operated and franchise shops operating weeks are calculated based on the number operating days for the shop base and dividing by 7. Our shop base is defined as shops opened as of the period end date. The operating weeks calculations, reflect re-acquired franchises through 2022. Management uses these metrics as indicators of our system’s overall financial health, growth and future expansion prospects.

7

 

Dutch Rewards, a digitally-based rewards program available exclusively through the Dutch Rewards app, was launched February 2021. Management uses this metric as an indicator of customer loyalty adoption of our Dutch Rewards app and future promotional plans.

8

 

Reconciliation of GAAP to non-GAAP results is provided in the section “Non-GAAP Financial Measures”.

Non-GAAP Financial Measures

In addition to disclosing financial results in accordance with U.S. GAAP, this release contains references to the non-GAAP financial measures below. We believe these non-GAAP financial measures provide investors with useful supplemental information about our operating performance, enable comparison of financial trends and results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business and measuring our performance.

Our non-GAAP financial measures reflect adjustments based on one or more of the following items, as well as the related income tax effects where applicable. Income tax effects have been calculated based on the combined total non-GAAP adjustments using our total effective tax rate. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP, and the financial results calculated in accordance with U.S. GAAP and reconciliations from these results should be carefully evaluated.

Company-operated shop contribution (in dollars and as a percentage of revenue)

Definition and/or calculation
Company-operated segment gross profit, before company-operated shop depreciation and amortization. Company-operated shop contribution in dollars (as defined), taken as a percentage of company-operated shop revenue.

Usefulness to management and investors
This non-GAAP measure is used by our management in making performance decisions without the impact of non-cash depreciation and amortization charges. This is a standard metric used across the industry by our investors.

EBITDA, Adjusted EBITDA (in dollars and as a percentage of revenue)

EBITDA — definition and/or calculation
Net income (loss) before interest expense (net of interest income), income taxes expense (benefit), and depreciation and amortization expense.

Adjusted EBITDA — definition and/or calculation
Defined as EBITDA (as defined above), excluding equity-based compensation, expenses and donations associated with equity offerings, COVID-19: “Thank You” pay and catastrophic leave expenses, COVID-19: prepaid costs not utilized, costs incurred for company-wide milestone events, executives transition costs, and (gain) loss on the remeasurement of the liability related to the TRAs.

Usefulness to management and investors
These non-GAAP measures are supplemental operating performance measures we believe facilitate comparisons to historical performance and competitors’ operating results. We believe the non-GAAP measures presented provide investors with a supplemental view of our operating performance that facilitates analysis and comparisons of our ongoing business operations because they exclude items that may not be indicative of our ongoing operating performance.

Adjusted selling, general, and administrative (in dollars and as a percentage of revenue)

Definition and/or calculation
Selling, general, and administrative expenses, excluding equity-based compensation expense, expenses and donations associated with equity offering, COVID-19: prepaid costs not utilized, costs incurred for company-wide milestone events, and executive transitions costs.

Usefulness to management and investors
This non-GAAP measure is used as a supplemental measure of operating performance that we believe is useful to evaluate our performance period over period and relative to our competitors. We believe the non-GAAP measures presented provide investors with a supplemental view of our operating performance that facilitates analysis and comparisons of our ongoing business operations because they exclude items that may not be indicative of our ongoing operating performance.

Adjusted net income

Definition and/or calculation
Net income (loss), excluding equity-based compensation expense, expenses and donations associated with equity offering, COVID-19: “thank you” pay and catastrophic leave expenses, COVID-19: prepaid costs not utilized, costs incurred for company-wide milestone events, executives transition costs, (gain) loss on the remeasurement of the liability related to the TRAs, and income tax effects of items excluded from net income (loss).

Usefulness to management and investors
This non-GAAP measure is used as a supplemental measure of operating performance that we believe is useful to evaluate our performance period over period and relative to our competitors. We believe this measure facilitates a better comparison with other companies that have different organizational and tax structures, as well as comparisons period over period.

Adjusted fully exchanged weighted-average shares of diluted common stock outstanding

Definition and/or calculation
Weighted-average shares of Class A and Class D common stock outstanding - basic with addition of dilutive impacts of RSAs and RSUs, as well as the assumed exchange of the weighted-average shares of Class B and Class C common stock.

Usefulness to management and investors
This non-GAAP measure is used a supplemental measure of operating performance that we believe is useful to evaluate our performance period over period and relative to our competitors. By adding in the assumed full exchange of all of our outstanding Class B and Class C common stock, we believe this measure facilitates a better comparison with other companies that have different organizational and tax structures, as well as comparisons period over period.

Adjusted net income per fully exchanged share of diluted common stock

Definition and/or calculation
Net income per share of Class A and Class D common stock – diluted, excluding per share impacts of equity-based compensation expense, expenses and donations associated with equity offering, COVID-19: “thank you” pay and catastrophic leave expenses, COVID-19: prepaid costs not utilized, costs incurred for company-wide milestone events, executives transition costs, income tax effects of items excluded from net income (loss), and removal of per share impacts of controlling and non-controlling interests.

Usefulness to management and investors
This non-GAAP measure is used as a supplemental measure of operating performance that we believe is useful to evaluate our performance period over period and relative to our competitors. By assuming the full exchange of all of our outstanding Class B and Class C common stock and related net income (loss) adjustments, we believe these measures facilitate a better comparison with other companies that have different organizational and tax structures, as well as comparisons period over period.

Non-GAAP adjustments

Below are the definitions of the non-GAAP adjustments that are used in the calculation of our non-GAAP measures, as described above.

Equity-based compensation
Non-cash expenses related to the grant and vesting of stock awards, restricted stock awards and restricted stock units in Dutch Bros PubCo1 and/or Profit Interest Units in Dutch Bros OpCo2 to certain eligible employees. These awards are accounted for in accordance with guidance prescribed for in accounting for share-based compensation.

Expenses associated with equity offerings
Costs incurred as a result of our stock offerings. These costs include legal fees, consulting fees, tax and accounting fees, and payroll taxes related to the grant and vesting of stock awards for certain employees.

Donations associated with equity offerings
In connection with our IPO, we made donations to the Dutch Bros Foundation. These donations are separate from other donations to the Dutch Bros Foundation that we may periodically make.

COVID-19: “thank you” pay and catastrophic leave
Costs related to two separate programs established to support employees during the COVID-19 pandemic. We implemented an hourly wage supplement program for shop employees who continued to work while their state or county was under a stay at home order or similar lockdown requirement. This program lasted in various markets until April 2021. We also established a catastrophic leave policy that provided paid leave to employees who were required to quarantine due to in-shop exposures and could not work their regular hours. All COVID-19-related protocols, including catastrophic leave, will remain in effect until the end of the COVID-19 pandemic as determined by the appropriate government agency.

COVID-19: Prepaid costs not utilized
Costs related to the write-off of previously prepaid expenses for the cancellation of our 2023 annual kick-off meeting as a result of COVID-19 concerns and the development of a virtual corporate engagement platform built in response to the health restrictions of the COVID-19 pandemic. The platform was developed as a substitute for in person engagement practices used pre-pandemic. The platform has been determined ineffective, particularly as we shift back to in-person events with the easing of restrictions related to the COVID-19 pandemic.

Milestone events
Costs incurred for company-wide events to celebrate 30 years of serving high QUALITY, hand-crafted beverages with unparalleled SPEED and superior SERVICE to our customers.

Executives transition costs
Employee severance and related benefit costs, as well as sign-on bonus(es) for several executive level transitions occurring in 2022 and 2023.

TRAs remeasurements
(Gain) loss impacts on consolidated statements of operations related to adjustments of our TRAs liabilities.

Dilutive effects of RSAs and RSUs
Addition of incremental shares of RSAs and RSUs calculated under the treasury stock method, when they are dilutive for the calculation of weighted-average shares on a non-GAAP and GAAP basis.

Assumed exchange of weighted-average Class B and Class C shares of common stock
Weighted-average shares of Class B and C common stock that are assumed to be exchanged for Class A common stock.

Removal of allocation for controlling and non-controlling interests
Removal of the net income (loss) allocation to controlling and non-controlling interests to align the numerator of the net income (loss) per share to the denominator, which assumes the full exchange of shares of Class B and Class C common stock.

___________

1

 

Dutch Bros PubCo refers to Dutch Bros Inc., a Delaware Corporation, of which its Class A common stock is publicly traded on the New York Stock Exchange under the symbol “BROS”.

2

 

Dutch Bros OpCo refers to Dutch Mafia, LLC, a Delaware limited liability company, and a direct subsidiary of Dutch Bros Inc.

Supplemental Reconciliations of GAAP Actuals to Non-GAAP Actuals

Following are the reconciliations of the most comparable GAAP financial measure to non-GAAP financial measure. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP, and the reconciliations from U.S. GAAP to Non-GAAP actuals should be carefully evaluated. Please refer to "Explanation of Non-GAAP Financial Measures" in this release for a detailed explanation of the adjustments made to the comparable U.S. GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide useful information for investors.

 

 

Three Months Ended
December 31,

 

Year Ended December 31,

 

 

2022

 

2021 ¹

 

2022

 

2021 ¹

(in thousands; unaudited)

 

$

 

%

 

$

 

%

 

$

 

%

 

$

 

%

Company-operated shop gross profit 2

 

38,750

 

22.1

 

16,560

 

14.5

 

121,327

 

19.0

 

86,701

 

21.5

Depreciation and amortization

 

11,235

 

6.4

 

5,253

 

4.6

 

36,306

 

5.6

 

16,291

 

4.0

Company-operated shop contribution 2

 

49,985

 

28.5

 

21,813

 

19.1

 

157,633

 

24.6

 

102,992

 

25.5

_________________

1

 

The Company’s historical results for the three and twelve months ended December 31, 2021 have been revised to reflect an immaterial error correction related to employee sick leave accrual. For additional information, see section “Company-operated Shop Results”.

2

 

Includes the recognition of $4.9 million of revenue from the loyalty points collected prior to January 1, 2022 that expired on December 31, 2022.

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2022

 

2021 ¹

 

2022

 

2021 ¹

(in thousands; unaudited)

 

$

 

%

 

$

 

%

 

$

 

%

 

$

 

%

NET LOSS 2

 

(2,817)

 

(1.4)

 

(8,168)

 

(5.8)

 

(19,253)

 

(2.6)

 

(117,931)

 

(23.7)

Depreciation and amortization

 

13,197

 

6.6

 

7,490

 

5.3

 

44,728

 

6.0

 

25,217

 

5.1

Interest expense, net 3

 

6,922

 

3.4

 

1,845

 

1.3

 

18,018

 

2.4

 

7,093

 

1.4

Income tax expense (benefit)

 

5,299

 

2.6

 

(912)

 

(0.6)

 

2,599

 

0.4

 

(1,628)

 

(0.3)

EBITDA 2

 

22,601

 

11.2

 

255

 

0.2

 

46,092

 

6.2

 

(87,249)

 

(17.5)

Equity-based compensation

 

10,662

 

5.3

 

9,955

 

7.1

 

41,657

 

5.6

 

157,716

 

31.7

Expenses associated with equity offerings

 

 

 

862

 

0.6

 

 

 

6,523

 

1.3

Donations associated with equity offerings

 

 

 

2,400

 

1.7

 

 

 

3,792

 

0.7

COVID-19: “thank you pay” and catastrophic leave

 

67

 

 

321

 

0.2

 

1,468

 

0.2

 

3,350

 

0.7

COVID-19: prepaid costs not utilized

 

1,105

 

0.6

 

 

 

2,305

 

0.3

 

 

Milestone events

 

 

 

 

 

2,434

 

0.3

 

 

Executives transition costs

 

691

 

0.3

 

 

 

691

 

0.1

 

 

TRAs remeasurements

 

(5,376)

 

(2.7)

 

 

 

(3,466)

 

(0.4)

 

 

Adjusted EBITDA 2

 

29,750

 

14.7

 

13,793

 

9.8

 

91,181

 

12.3

 

84,132

 

16.9

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

 

 

2022

 

2021 ¹

 

2022

 

 

2021 ¹

(in thousands; unaudited)

 

$

 

%

 

$

 

%

 

$

 

%

 

$

 

%

Selling, general, and administrative 4

 

50,594

 

 

25.1

 

 

41,355

 

 

29.5

 

 

$

183,528

 

 

24.8

 

 

$

264,529

 

 

53.1

 

Equity-based compensation

 

(10,662

)

 

(5.3

)

 

(9,955

)

 

(7.1

)

 

 

(41,657

)

 

(5.6

)

 

 

(157,716

)

 

(31.7

)

Expenses associated with equity offerings

 

 

 

 

 

(862

)

 

(0.6

)

 

 

 

 

 

 

 

(6,523

)

 

(1.3

)

Donations associated with equity offerings

 

 

 

 

 

(2,400

)

 

(1.7

)

 

 

 

 

 

 

 

(3,792

)

 

(0.7

)

COVID-19: prepaid costs not utilized

 

(1,105

)

 

(0.6

)

 

 

 

 

 

 

(2,305

)

 

(0.3

)

 

 

 

 

 

Milestone events

 

 

 

 

 

 

 

 

 

 

(2,434

)

 

(0.3

)

 

 

 

 

 

Executives transition costs

 

(691

)

 

(0.3

)

 

 

 

 

 

 

(691

)

 

(0.1

)

 

 

 

 

 

Adjusted selling, general, and administrative

 

38,136

 

 

18.9

 

 

28,138

 

 

20.1

 

 

$

136,441

 

 

18.5

 

 

$

96,498

 

 

19.4

 

 

 

Three Months Ended
December 31,

 

Year Ended
December 31,

(in thousands; unaudited)

 

 

2022

 

 

2021 ¹

 

 

2022

 

 

2021 ¹

NET LOSS 2

 

$

(2,817

)

 

$

(8,168

)

 

$

(19,253

)

 

$

(117,931

)

Equity-based compensation

 

 

10,662

 

 

 

9,955

 

 

 

41,657

 

 

 

157,716

 

Expenses associated with equity offerings

 

 

 

 

 

862

 

 

 

 

 

 

6,523

 

Donations associated with equity offerings

 

 

 

 

 

2,400

 

 

 

 

 

 

3,792

 

COVID-19: “thank you pay” and catastrophic leave

 

 

67

 

 

 

321

 

 

 

1,468

 

 

 

3,350

 

COVID-19: prepaid costs not utilized

 

 

1,105

 

 

 

 

 

 

2,305

 

 

 

 

Milestone events

 

 

 

 

 

 

 

 

2,434

 

 

 

 

Executives transition costs

 

 

691

 

 

 

 

 

 

691

 

 

 

 

TRAs remeasurements

 

 

(5,376

)

 

 

 

 

 

(3,466

)

 

 

 

Income tax effects

 

 

442

 

 

 

(236

)

 

 

(609

)

 

 

(2,029

)

Adjusted net income 2

 

$

4,774

 

 

$

5,134

 

 

$

25,227

 

 

$

51,421

 

_________________

1

 

The Company identified an immaterial error related to the accrual of employee sick leave and the application of ASC 710, Compensation - General, which resulted in corrections to prior period reported amounts within the consolidated statements of operations and non-GAAP results for the three and twelve months ended December 31, 2021 with impacted line items presented below.

(in thousands)

 

Three Months Ended
December 31, 2021 ¹

 

Year Ended
December 31, 2021 ¹

Decrease in selling, general, and administrative expenses

 

(85)

 

(506)

Decrease in adjusted selling, general, and administrative expenses

 

(85)

 

(506)

Decrease in net loss

 

510

 

2,046

Decrease in EBITDA

 

510

 

2,046

Decrease in adjusted EBITDA

 

510

 

2,046

Decrease in adjusted net income

 

510

 

2,046

2

 

Includes the recognition of $4.9 million of revenue from the loyalty points collected prior to January 1, 2022 that expired on December 31, 2022.

3

 

Effective as of the second half of 2022 and on a prospective basis, we recorded commitment fees for the unused portion of the revolving credit facility as interest expense. These amounts were previously recorded as selling, general, and administrative expense.

4

 

Selling, general, and administrative expenses include depreciation and amortization.

 

 

Three Months Ended December 31,

 

Year Ended December 31,

(in thousands, except per share amounts; unaudited)

 

 

2022

 

 

2021 ¹

 

 

2022

 

 

2021 ¹

Weighted-average shares of Class A and Class D common stock outstanding - diluted

 

 

55,286

 

 

 

45,874

 

 

 

51,871

 

 

 

45,864

 

Dilutive effects of RSAs and RSUs

 

 

1,481

 

 

 

2,807

 

 

 

1,523

 

 

 

2,579

 

Assumed exchange of weighted-average Class B and Class C shares of common stock

 

 

105,756

 

 

 

113,705

 

 

 

109,132

 

 

 

113,705

 

Adjusted fully exchanged weighted-average shares of common stock outstanding - diluted

 

 

162,523

 

 

 

162,386

 

 

 

162,526

 

 

 

162,148

 

 

 

 

 

 

 

 

 

 

Net loss per share of Class A and Class D common stock - diluted 2

 

$

(0.01

)

 

$

(0.03

)

 

$

(0.09

)

 

$

(0.28

)

Controlling and non-controlling interest adjustments

 

 

(0.01

)

 

 

(0.02

)

 

 

(0.02

)

 

 

(0.44

)

Equity-based compensation

 

 

0.07

 

 

 

0.06

 

 

 

0.26

 

 

 

0.97

 

Expenses associated with equity offerings

 

 

 

 

 

0.01

 

 

 

 

 

 

0.04

 

Donations associated with equity offerings

 

 

 

 

 

0.01

 

 

 

 

 

 

0.02

 

COVID-19: “thank you pay” and catastrophic leave

 

 

 

 

 

 

 

 

0.01

 

 

 

0.02

 

COVID-19: prepaid costs not utilized

 

 

0.01

 

 

 

 

 

 

0.01

 

 

 

 

Milestone events

 

 

 

 

 

 

 

 

0.01

 

 

 

 

Executives transition costs

 

 

 

 

 

 

 

 

 

 

 

 

TRAs remeasurements

 

 

(0.03

)

 

 

 

 

 

(0.02

)

 

 

 

Income tax effects

 

 

 

 

 

 

 

 

 

 

 

(0.01

)

Adjusted net income per fully exchanged share of common stock 2

 

$

0.03

 

 

$

0.03

 

 

$

0.16

 

 

$

0.32

 

_________________

1

 

Weighted-average shares, net loss per share, and related adjustments on a diluted basis are applicable only for the periods subsequent to September 14, 2021, which is the effective date of the Company’s Reorganization Transactions and IPO.

2

 

Includes the recognition of $4.9 million of revenue from the loyalty points collected prior to January 1, 2022 that expired on December 31, 2022.

 

For Investor Relations inquiries:
Raphael Gross
ICR
(203) 682-8253
investors@dutchbros.com

For Media Relations inquiries:
Jessica Liddell
ICR
(203) 682-8208
jessica.liddell@icrinc.com

Source: Dutch Bros Inc.

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