Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 30, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-40950 | |
Entity Registrant Name | The Vita Coco Company, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 11-3713156 | |
Entity Address, Address Line One | 250 Park Avenue South | |
Entity Address, Address Line Two | Seventh Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10003 | |
City Area Code | 212 | |
Local Phone Number | 206-0763 | |
Title of 12(b) Security | Common Stock, Par Value $0.01 Per Share | |
Trading Symbol | COCO | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 56,683,993 | |
Entity Central Index Key | 0001482981 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 122,978 | $ 132,537 |
Accounts receivable, net of allowance of $3,304 at March 31, 2024, and $2,486 at December 31, 2023 | 57,881 | 50,086 |
Inventory | 56,764 | 50,757 |
Supplier advances, current | 1,535 | 1,521 |
Derivative assets | 1,772 | 3,876 |
Prepaid expenses and other current assets | 25,772 | 24,160 |
Total current assets | 266,702 | 262,937 |
Property and equipment, net | 2,195 | 2,136 |
Goodwill | 7,791 | 7,791 |
Supplier advances, long-term | 2,619 | 2,820 |
Deferred tax assets, net | 6,746 | 6,749 |
Right-of-use assets, net | 1,151 | 1,406 |
Other assets | 1,838 | 1,843 |
Total assets | 289,042 | 285,682 |
Current liabilities: | ||
Accounts payable | 18,134 | 21,826 |
Accrued expenses and other current liabilities | 59,223 | 59,533 |
Notes payable, current | 11 | 13 |
Derivative liabilities | 1,634 | 1,213 |
Total current liabilities | 79,002 | 82,585 |
Notes payable, long-term | 10 | 13 |
Other long-term liabilities | 340 | 647 |
Total liabilities | 79,352 | 83,245 |
Stockholders’ equity: | ||
Common stock, $0.01 par value; 500,000,000 shares authorized; 63,311,737 and 63,135,453 shares issued at March 31, 2024 and December 31, 2023, respectively 56,683,993 and 56,899,253 shares outstanding at March 31, 2024 and December 31, 2023, respectively | 633 | 631 |
Additional paid-in capital | 163,674 | 161,414 |
Retained earnings | 114,980 | 100,742 |
Accumulated other comprehensive loss | (661) | (649) |
Treasury stock, 6,627,744 shares at cost as of March 31, 2024, and $6,236,200 shares at cost as of December 31, 2023. | (68,936) | (59,701) |
Total stockholders’ equity attributable to The Vita Coco Company, Inc. | 209,690 | 202,437 |
Total liabilities and stockholders’ equity | $ 289,042 | $ 285,682 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 3,304 | $ 2,486 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 63,311,737 | 63,135,453 |
Common stock, shares outstanding (in shares) | 56,683,993 | 56,899,253 |
Treasury stock (in shares) | 6,627,744 | 6,236,200 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Net sales | $ 111,698 | $ 109,759 |
Cost of goods sold | 64,521 | 76,098 |
Gross profit | 47,177 | 33,661 |
Operating expenses | ||
Selling, general and administrative | 28,218 | 26,957 |
Income (loss) from operations | 18,959 | 6,704 |
Other income (expense) | ||
Unrealized gain/(loss) on derivative instruments | (2,525) | 1,213 |
Foreign currency gain/(loss) | 58 | 611 |
Interest income | 1,523 | 13 |
Interest expense | 0 | (15) |
Total other income (expense) | (944) | 1,822 |
Income before income taxes | 18,015 | 8,526 |
Income tax expense | (3,777) | (1,821) |
Net income attributable to The Vita Coco Company, Inc. | $ 14,238 | $ 6,705 |
Net income per common share | ||
Basic (in dollars per share) | $ 0.25 | $ 0.12 |
Diluted (in dollars per share) | $ 0.24 | $ 0.12 |
Weighted-average number of common shares outstanding | ||
Basic (in shares) | 56,589,565 | 56,046,904 |
Diluted (in shares) | 58,746,631 | 57,351,405 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 14,238 | $ 6,705 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | (12) | 173 |
Total comprehensive income attributable to The Vita Coco Company, Inc. | $ 14,226 | $ 6,878 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Total Shareholders’ Equity Attributable to The Vita Coco Company, Inc. | Total Shareholders’ Equity Attributable to The Vita Coco Company, Inc. Impact of ASC 326 adoption | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained Earnings Impact of ASC 326 adoption | Accumulated Other Comprehensive Income / (Loss) | Treasury Stock | Common Stock Common Stock | Common Stock with Exit Warrants Common Stock |
Beginning balance, common stock (in shares) at Dec. 31, 2022 | 62,225,250 | 54,112,145 | 8,113,105 | ||||||||
Beginning balance at Dec. 31, 2022 | $ 141,093 | $ 622 | $ 145,210 | $ 55,183 | $ (994) | $ (58,928) | $ 541 | $ 81 | |||
Beginning balance, treasury stock (in shares) at Dec. 31, 2022 | 6,206,200 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | $ 6,705 | 6,705 | 6,705 | ||||||||
Stock-based compensation | 2,162 | 2,162 | |||||||||
Exercise of stock options (in shares) | 185,783 | 185,783 | |||||||||
Exercise of stock awards | 603 | $ 2 | 601 | $ 2 | |||||||
Foreign currency translation adjustment | 173 | 173 | |||||||||
Ending balance, common stock (in shares) at Mar. 31, 2023 | 62,411,033 | 54,297,928 | 8,113,105 | ||||||||
Ending balance at Mar. 31, 2023 | 149,666 | $ 624 | 147,973 | 60,818 | (821) | $ (58,928) | $ 543 | $ 81 | |||
Ending balance, treasury stock (in shares) at Mar. 31, 2023 | 6,206,200 | ||||||||||
Beginning balance, common stock (in shares) at Dec. 31, 2023 | 56,899,253 | 63,135,453 | 55,022,348 | 8,113,105 | |||||||
Beginning balance at Dec. 31, 2023 | $ 202,437 | 202,437 | $ 631 | 161,414 | 100,742 | (649) | $ (59,701) | $ 550 | $ 81 | ||
Beginning balance (Accounting Standards Update 2016-13) at Dec. 31, 2023 | $ (1,070) | $ (1,070) | |||||||||
Beginning balance, treasury stock (in shares) at Dec. 31, 2023 | 6,236,200 | 6,236,200 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | $ 14,238 | 14,238 | 14,238 | ||||||||
Purchase of treasury stock (in shares) | 391,544 | ||||||||||
Purchase of treasury stock | (9,235) | $ (9,235) | |||||||||
Stock-based compensation | 2,109 | 2,109 | |||||||||
Exercise of stock options (in shares) | 176,284 | 176,284 | |||||||||
Exercise of stock awards | 153 | $ 2 | 151 | $ 2 | |||||||
Foreign currency translation adjustment | (12) | (12) | |||||||||
Ending balance, common stock (in shares) at Mar. 31, 2024 | 56,683,993 | 63,311,737 | 55,198,632 | 8,113,105 | |||||||
Ending balance at Mar. 31, 2024 | $ 209,690 | $ 209,690 | $ 633 | $ 163,674 | $ 114,980 | $ (661) | $ (68,936) | $ 552 | $ 81 | ||
Ending balance, treasury stock (in shares) at Mar. 31, 2024 | 6,627,744 | 6,627,744 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |||
Cash flows from operating activities: | |||||
Net income | $ 14,238 | $ 6,705 | |||
Adjustments required to reconcile net income to cash flows from operating activities: | |||||
Depreciation and amortization | 162 | 165 | |||
(Gain)/loss on disposal of equipment | 13 | (1) | |||
Bad debt expense | 517 | 832 | |||
Unrealized (gain)/loss on derivative instruments | 2,525 | (1,213) | |||
Stock-based compensation | 2,109 | 2,162 | |||
Noncash lease expense | 254 | 279 | |||
Changes in operating assets and liabilities: | |||||
Accounts receivable | (8,463) | (21,337) | |||
Inventory | (6,068) | 20,089 | |||
Prepaid expenses, net supplier advances, and other assets | (1,442) | 683 | |||
Accounts payable, accrued expenses, and other liabilities | (4,112) | 1,072 | |||
Net cash provided by (used in) operating activities | (267) | 9,436 | |||
Cash flows from investing activities: | |||||
Cash paid for property and equipment | (124) | (454) | |||
Proceeds from sale of property and equipment | 0 | 5 | |||
Net cash used in investing activities | (124) | (449) | |||
Cash flows from financing activities: | |||||
Proceeds from exercise of stock awards | 153 | 603 | |||
Cash received (paid) on notes payable | (4) | (6) | |||
Cash paid to acquire treasury stock | (9,235) | 0 | $ (773) | ||
Net cash provided by (used in) financing activities | (9,086) | 597 | |||
Effects of exchange rate changes on cash and cash equivalents | (80) | 187 | |||
Net increase/(decrease) in cash and cash equivalents | (9,557) | 9,771 | |||
Cash, cash equivalents and restricted cash at beginning of the period | 132,867 | 19,629 | 19,629 | ||
Cash, cash equivalents and restricted cash at end of period | $ 123,310 | [1] | $ 29,400 | [1] | $ 132,867 |
[1] Includes $332 and $320 of restricted cash as of March 31, 2024 and 2023, respectively, that were included in other current assets. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Cash Flows [Abstract] | ||
Restricted cash | $ 332 | $ 320 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | NATURE OF BUSINESS AND BASIS OF PRESENTATION The Vita Coco Company, Inc. and subsidiaries (the “Company”) develops, markets, and distributes various coconut water products under the brand name Vita Coco and for retailers' own brands, predominantly in the United States. Other products include coconut milk, coconut oil, coconut as a commodity, water (under the brand name Ever & Ever ), and protein infused fitness drinks (under the brand name PWR LIFT ). We also offered a natural energy drink (under the brand name Runa ), which we ceased selling in December 2023. The Company was incorporated in Delaware as All Market Inc. on January 17, 2007. On September 9, 2021, we changed our name to The Vita Coco Company, Inc. In 2018, the Company purchased certain assets and liabilities of Runa , which is marketed and distributed primarily in the United States until the Company ceased selling the brand in December 2023. We are a public benefit corporation under Section 362 of the Delaware General Corporation Law. As a public benefit corporation, our Board of Directors is required by the Delaware General Corporation Law to manage or direct our business and affairs in a manner that balances the pecuniary interests of our stockholders, the best interests of those materially affected by our conduct and the specific public benefits identified in our certificate of incorporation. The Company has ten wholly-owned subsidiaries including four wholly-owned Asian subsidiaries established between fiscal 2012 and 2015, four North American subsidiaries established between 2012 and 2018, All Market Europe, Ltd. (“AME”) in the United Kingdom, and one subsidiary in Germany established during 2024. Unaudited interim financial information The Company’s condensed consolidated interim financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and Article 10 of Regulation S-X. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the Company’s financial information for the interim period presented. These interim results are not necessarily indicative of the results to be expected for the year ending December 31, 2024 or for any other interim period or for any other future year. The condensed consolidated balance sheet as of March 31, 2024 is unaudited and should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the fiscal year ended December 31, 2023. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying condensed consolidated financial statements are presented in accordance with U.S. GAAP. Principles of Consolidation The condensed consolidated financial statements include all the accounts of the wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates Preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Management considers many factors in selecting appropriate financial accounting policies and controls in developing the estimates and assumptions that are used in the preparation of these condensed consolidated financial statements. Management must apply significant judgment in this process. In addition, other factors may affect estimates, including expected business and operational changes, sensitivity and volatility associated with the assumptions used in developing estimates, and whether historical trends are expected to be representative of future trends. Additionally, uncertainty in the macroeconomic environment resulting from current geopolitical and economic instability (including the effects of current wars and other international conflicts) and the high interest rate and inflationary cost environment make estimates and assumptions difficult to calculate with precision. The estimation process often may yield a range of reasonable estimates of the ultimate future outcomes, and management must select an amount that falls within that range of reasonable estimates. The most significant estimates in the condensed consolidated financial statements relate to share-based compensation, assessing long-lived assets for impairment, estimating the net realizable value of inventories, determining the accounts receivables reserve, assessing goodwill for impairment, determining the value of trade promotions, and assessing the realizability of deferred income taxes. Actual results could differ from those estimates. Concentration of Credit Risk The Company’s cash and accounts receivable are subject to concentrations of credit risk. The Company’s cash balances are primarily on deposit with banks in the U.S. which are guaranteed by the Federal Deposit Insurance Corporation ("FDIC") up to $250. At times, such cash may be in excess of the FDIC insurance limit. To minimize the risk, the Company’s policy is to maintain cash balances with high quality institutions, which may include banks, financial institutions and investment firms, and invest daily or reserve operating cash in money market funds, government securities, bank obligations, municipal securities or other investment vehicles with short-term maturities. Substantially all of the Company’s customers are either wholesalers or retailers of beverages. A material default in payment, a material reduction in purchases from these or any large customers, or the loss of a large customer or customer groups could have a material adverse impact on the Company’s financial condition, results of operations and liquidity. The Company is exposed to concentration of credit risk from its major customers for which two customers in aggregate represented 47% and 50% of total net sales for the three months ended March 31, 2024 and 2023, respectively. In addition, the two customers in aggregate also accounted for 39% and 43% of total accounts receivable as of March 31, 2024 and December 31, 2023, respectively. The Company has not experienced credit issues with these customers. Refer to Note 7, Commitments and Contingencies regarding additional information on our major customers. Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). The new accounting standard introduced the current expected credit losses methodology ("CECL") for estimating allowances for credit losses. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized costs, including loans and trade receivables. ASU 2016-13 was effective for the Company for annual and interim reporting periods beginning after December 15, 2022. The Company adopted the standard on January 1, 2023 using the modified retrospective method for all financial assets in scope. As a part of the adoption, the Company selected to apply roll-rate method to estimate current expected credit losses for its accounts receivable population and weighted average remaining maturity ("WARM") method for supplier advances. The difference of $1,070 between the incurred credit loss estimate and current expected credit loss estimate was recorded as cumulative effect adjustment to the Company’s opening retained earnings and reflected on the consolidated balance sheet as of January 1, 2023 as a result of the ASC Topic 326, Financial Instruments - Credit Losses ("ASC 326") adoption. The adoption of the standard did not have a material impact on the Company’s consolidated statements of operations, or consolidated statements of cash flows. The following table illustrates the impact of ASC 326. As of January 1, 2023 As reported under ASC 326 Pre-ASC 326 adoption Impact of ASC 326 adoption Allowance for credit losses on accounts receivables $ 3,552 $ 2,898 $ 654 Allowance for credit losses on supplier advances 416 — 416 Total $ 3,968 $ 2,898 $ 1,070 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Revenues are accounted for in accordance with ASC Topic 606, Revenue Recognition ("ASC 606"). The Company disaggregates revenue into the following product categories: • Vita Coco Coconut Water —This product category consists of all branded coconut water product offerings under the Vita Coco labels, where the majority ingredient is coconut water. The Company determined that the sale of the products represents a distinct performance obligation as customers can benefit from purchasing the products on their own or together with other resources that are readily available to the customers. For these products, control is transferred upon customer receipt, at which point the Company recognizes the transaction price for the product as revenue. • Private Label —This product category consists of all private label product offerings, which includes coconut water and oil. The Company determined the production and distribution of private label products represents a distinct performance obligation. Since there is no alternative use for these products and the Company has the right to payment for performance completed to date, the Company recognizes the revenue for the production of these private label products over time as the production for open purchase orders occurs, which may be prior to any shipment. • Other —This product category consists of all other products, which included Runa (until we ceased selling it in December 2023), and includes Ever & Ever and PWR LIFT product offerings and Vita Coco product extensions beyond coconut water, coconut milk products, and other revenue transactions (e.g., bulk product sales). For these products, control is transferred upon customer receipt, at which point the Company recognizes the transaction price for the product as revenue. The Company excludes from revenues all taxes assessed by a governmental authority that are imposed on the sale of its products and collected from customers. The Company provides trade promotions and sales discounts to its customers and distributors. Since these sales promotions and sales discounts do not meet the criteria for a distinct good or service, they are primarily accounted for as a reduction of revenue and include payments to customers and distributors for performing activities on our behalf, such as payments for in-store displays, payments to gain distribution of new products, payments for shelf space and discounts to promote lower retail prices. These condensed consolidated financial statements include accruals for these promotion and discounts. The accruals are made for invoices that have not yet been received as of the end of the reporting period and are recorded as a reduction of sales, and are based on contract terms and our historical experience with similar programs and require management judgment with respect to estimating customer and consumer participation and performance levels. Disaggregation of Revenue The following table disaggregates net revenue by product type and reportable segment: Three Months Ended March 31, 2024 Americas International Consolidated Vita Coco Coconut Water $ 69,522 $ 9,665 $ 79,187 Private Label 24,273 5,152 29,425 Other 2,296 790 3,086 Total $ 96,091 $ 15,607 $ 111,698 Three Months Ended March 31, 2023 Americas International Consolidated Vita Coco Coconut Water $ 69,138 $ 9,558 $ 78,696 Private Label 25,050 2,666 27,716 Other 2,584 763 3,347 Total $ 96,772 $ 12,987 $ 109,759 |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY Inventory consists of the following: March 31, December 31, Raw materials and packaging $ 4,018 $ 3,360 Finished goods 52,746 47,397 Inventory $ 56,764 $ 50,757 |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GOODWILL Goodwill consists of the following: March 31, December 31, Goodwill $ 7,791 $ 7,791 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The table below details the outstanding balances on the Company’s debt as of March 31, 2024 and December 31, 2023: March 31, December 31, Notes payable Vehicle loans 21 26 $ 21 $ 26 Current 11 13 Non-current $ 10 13 Revolving Credit Facility In May 2020, the Company entered into the five-year credit facility with Wells Fargo Bank, National Association consisting of a revolving line of credit, which currently provides for committed borrowings of $60 million (the "2020 Credit Facility"). The maturity date on the 2020 Credit Facility is May 12, 2026. Starting in December 2022, borrowings on the 2020 Credit Facility bear interest at rates based on either: 1) a fluctuating rate per annum determined to be the sum of Daily Simple Secured Overnight Financing Rate ("SOFR") plus a spread defined in the credit agreement (the "Spread"); or 2) a fixed rate per annum determined to be the sum of the Term SOFR plus the Spread. The Spread ranges from 1.00% to 1.75%, which is based on the Company’s leverage ratio (as defined in the credit agreement) for the immediately preceding fiscal quarter as defined in the credit agreement. In addition, the Company is currently subject to an unused commitment fee ranging from 0.10% and 0.20% on the unused amount of the line of credit, with the rate being based on the Company’s leverage ratio (as defined in the credit agreement). As of March 31, 2024 and December 31, 2023, the Company had no outstanding balance and $60 million undrawn and available under its amended 2020 Credit Facility. Interest expense and unused commitment fee for the 2020 Credit Facility amounted to $15 and $15 for the three months ended March 31, 2024 and March 31, 2023 respectively. The 2020 Credit Facility is collateralized by substantially all of the Company’s assets. The 2020 Credit Facility contains certain affirmative and negative covenants that, among other things, limit the Company’s ability to, subject to various exceptions and qualifications: (i) incur liens; (ii) incur additional debt; (iii) sell, transfer or dispose of assets; (iv) merge with or acquire other companies, (v) make loans, advances or guarantees; (vi) make investments; (vii) make dividends and distributions on, or repurchases of, equity; and (viii) enter into certain transactions with affiliates. The 2020 Credit Facility also requires the Company to maintain certain financial covenants including a maximum leverage ratio, a minimum fixed charge coverage ratio, and a minimum asset coverage ratio. As of March 31, 2024, the Company was compliant with all financial covenants. Vehicle Loans |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Contingencies: Litigation —The Company may engage in various litigation matters in the ordinary course of business. The Company intends to vigorously defend itself in such matters, based upon the advice of legal counsel, and is of the opinion that the resolution of these matters will not have a material effect on the condensed consolidated financial statements.The Company records a liability when it is probable that a loss has been incurred and the amount is reasonably estimable. The Company also discloses when it is reasonably possible that a material loss may be incurred. As of March 31, 2024 and December 31, 2023, the Company has not recorded any liabilities relating to such legal matters. Business Risk —The Company imports finished goods predominantly from manufacturers located in South American and Southeast Asian countries. The Company may be subject to certain business risks due to potential instability in these regions. Major Customers —The Company’s customers that accounted for 10% or more of total net sales and total accounts receivable were as follows: Net sales Accounts receivable Three Months Ended March 31, March 31, December 31, 2024 2023 Customer A 25 % 26 % 18 % 20 % Customer B 22 % 24 % 21 % 23 % One of the customers acquired less than 5% ownership in the Company upon consummation of the Company's initial public offering ("IPO"). As discussed in Note 10, Stockholders' Equity , the same customer also was granted 200,000 restricted stock awards at the time of the IPO, of which 100,000 vested on March 31, 2023 and 100,000 vested on March 31, 2024. The customer continues to hold less than 5% ownership in the Company as of March 31, 2024. In 2023, we agreed to start to discontinue the private label coconut water and coconut oil supply relationship with one of our significant customers as the terms required to retain the business were contrary to our long term margin targets. However, at the request of this customer, we expect to continue the supply relationship for a significant portion of their private label coconut water needs. Major Suppliers —The Company’s suppliers that accounted for 10% or more of the Company’s purchases were as follows: Three Months Ended March 31, 2024 2023 Supplier A 24 % 17 % Supplier B 14 % 15 % |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS The Company accounts for derivative instruments in accordance with the ASC Topic 815, Derivatives and Hedging ("ASC 815"). These principles require that all derivative instruments be recognized at fair value on each balance sheet date unless they qualify for a scope exclusion as a normal purchase or sales transaction, which is accounted for under the accrual method of accounting. In addition, these principles permit derivative instruments that qualify for hedge accounting to reflect the changes in the fair value of the derivative instruments through earnings or stockholders’ equity as other comprehensive income on a net basis until the hedged item is settled and recognized in earnings, depending on whether the derivative is being used to hedge changes in fair value or cash flows. The ineffective portion of a derivative instrument’s change in fair value is immediately recognized in earnings. As of March 31, 2024 and December 31, 2023, the Company did not have any derivative instruments that it had designated as fair value or cash flow hedges. The Company is subject to the following currency risks: Inventory Purchases from Brazilian, Malaysian and Thai Manufacturers —In order to mitigate the currency risk on inventory purchases from its Brazilian, Malaysian and Thai manufacturers, which are settled in Brazilian real ("BRL"), Malaysian ringgit ("MYR") and Thai baht ("THB"), the Company's subsidiary, All Market Singapore Pte. Ltd. ("AMS"), enters a series of forward currency swaps to buy BRL, MYR and THB. Intercompany Transactions Between AME and AMS —In order to mitigate the currency risk on intercompany transactions between AME and AMS, AMS enters into foreign currency swaps to sell British pounds ("GBP"). Intercompany Transactions with Canadian Customer and Vendors —In order to mitigate the currency risk on transactions with Canadian customer and vendors, the Company enters into foreign currency swaps to sell Canadian dollars ("CAD"). The notional amount and fair value of all outstanding derivative instruments in the condensed consolidated balance sheets consist of the following at: March 31, 2024 Derivatives not designated as Notional Fair Balance Sheet Location Assets Foreign currency exchange contracts Receive BRL/sell USD $ 55,191 $ 1,671 Derivative assets Receive USD/pay EUR 4,899 46 Derivative assets Receive USD/pay CAD 6,795 55 Derivative assets Liabilities Foreign currency exchange contracts Receive THB/sell USD $ 17,548 $ (1,186) Derivative liabilities Receive USD/pay GBP 20,610 (448) Derivative liabilities December 31, 2023 Derivatives not designated as Notional Fair Balance Sheet Location Assets Foreign currency exchange contracts Receive BRL/sell USD $ 62,253 $ 3,876 Derivative assets Liabilities Foreign currency exchange contracts Receive THB/sell USD 21,971 (285) Derivative liabilities Receive USD/pay EUR 5,627 (90) Derivative liabilities Receive USD/pay GBP 23,512 (749) Derivative liabilities Receive USD/pay CAD 7,666 (89) Derivative liabilities The amount and location of realized and unrealized gains and losses of the derivative instruments in the condensed consolidated statements of operations for the three months ended March 31, 2024 and 2023 are as follows: Three Months Ended March 31, 2024 2023 Unrealized gain/(loss) on derivative instruments $ (2,525) $ 1,213 Location Unrealized gain/(loss) Unrealized gain/(loss) Foreign currency gain / (loss) $ 607 $ 1,071 Location Foreign currency Foreign currency The Company applies recurring fair value measurements to its derivative instruments in accordance with ASC Topic 820, Fair Value Measurements ("ASC 820"). In determining fair value, the Company used a market approach and incorporated the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable internally developed inputs. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS ASC 820 provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs. Based upon observability of the inputs used in valuation techniques, the Company’s assets and liabilities are classified as follows: Level 1 —Quoted market prices in active markets for identical assets or liabilities. Level 2 —Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted market prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 —Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes internally developed models and methodologies utilizing significant unobservable inputs. Forward Currency Swap Contracts —See Note 8, Derivative Instruments , for a description of these contracts.The Company’s valuation methodology for forward currency swap contracts is based upon third-party institution data. The Company’s fair value hierarchy for those assets (liabilities) measured at fair value on a recurring basis at March 31, 2024 and December 31, 2023, is as follows: Level 1 Level 2 Level 3 Total Forward Currency March 31, 2024 $ — $ 138 $ — $ 138 December 31, 2023 $ — $ 2,663 $ — $ 2,663 There were no transfers between any levels of the fair value hierarchy for any of the Company’s fair value measurements. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Common and Treasury Stock —Each share of Common Stock entitles its holder to one vote on matters required to be voted on by the stockholders of the Company and to receive dividends, when and if declared by the Company’s Board of Directors. As of March 31, 2024 and December 31, 2023, the Company held 6,627,744 and 6,236,200 shares, respectively, in treasury stock. As of March 31, 2024 and December 31, 2023, the Company had 3,231,028 and 3,124,326 shares, respectively, of Common Stock available for issuance upon the conversion of outstanding equity awards under the 2021 Incentive Award Plan ("2021 Plan"). On October 30, 2023, the Company's Board of Directors approved a share repurchase program ("Program") authorizing the Company to repurchase up to $40,000 of Common Stock. Shares of Common Stock may be repurchased under the Program from time to time through open market purchases, block trades, private transactions or accelerated or other structured share repurchase programs. To the extent not retired, shares of Common Stock repurchased under the Program will be placed in the Company's treasury shares. The extent to which the Company repurchases shares of Common Stock, and the timing of such repurchases, will depend upon a variety of factors, including market conditions, regulatory requirements and other corporate considerations, as determined by the Company. The Program has no time limits and may be suspended or discontinued at any time. The Company repurchased 391,544 shares under this Program at a cost of $9,235 during the three months ended March 31, 2024. The Company repurchased 30,000 shares under this Program at a cost of $773 during the year ended December 31, 2023. As of March 31, 2024, the Company had $29,992 remaining under this Program. Stock-based Compensation —The stockholders of the Company approved the adoption of the Company’s 2014 Stock Option and Restricted Stock Plan (the “2014 Plan”). The 2014 Plan allowed for a maximum of 8% of the sum of the Available Equity defined as the sum of: (i) the total then outstanding shares of common shares; and (ii) all available stock options (i.e., granted and outstanding stock options and stock options not yet granted). Under the terms of the 2014 Plan, the Company may grant employees, directors and consultants stock options and restricted stock awards and has the authority to establish the specific terms of each award, including exercise price, expiration and vesting. Currently, only stock options were granted under the 2014 Plan. Generally, stock options issued pursuant to the 2014 Plan contain exercise prices no less than the fair value of Common Stock on the date of grant and have a ten-year contractual term. Subsequent to September 30, 2021, the stockholders of the Company approved the adoption of the 2021 Plan, which became effective after the closing of the Company's IPO completed in October 2021. On and after closing of the offering and the effectiveness of the 2021 Plan, no further grants have been made under the 2014 Plan. The maximum number of shares of our Common Stock available for issuance under the 2021 Plan is equal to the sum of: (i) 3,431,312 shares of our Common Stock; and (ii) an annual increase on the first day of each year beginning in 2022 and ending in and including 2031, equal to the lesser of (A) two percent (2%) of the outstanding shares of our Common Stock on the last day of the immediately preceding fiscal year; and (B) such lesser amount as determined by our Board of Directors; provided, however, no more than 3,431,312 shares may be issued upon the exercise of incentive stock options ("ISOs"). The 2021 Plan provides for the grant of stock options, including ISOs and nonqualified stock options ("NSOs"), restricted stock, dividend equivalents, stock payments, restricted stock units ("RSUs"), other incentive awards, stock appreciation rights ("SARs"), and cash awards. As of March 31, 2024, only stock options, restricted stock, and RSU's have been granted under the 2021 Plan. The Company recognized stock-based compensation expense of $1,958 and $1,297 for the three months ended March 31, 2024 and 2023, respectively, in selling, general and administrative expenses. For the RSUs previously granted to a major customer, $151 and $865 was recognized for the three months ended March 31, 2024 and March 31, 2023, respectively, as stock-based sales incentive based on guidance in ASC 606 and reflected as a reduction in the transaction price revenue. Option Awards with Service-based Vesting Conditions Most of the stock option awards granted under the 2014 Plan and 2021 Plan vest based on continuous service. The options awarded to the employees have differing vesting schedules as specified in each grant agreement. There were 168,076 new service-based stock option awards granted during the three months ended March 31, 2024. Exercises of stock options during the three months ended March 31, 2024, and 2023 were 13,960 and 66,523, respectively. Option Awards with Performance and Market-based Vesting Conditions There are also stock option awards containing performance-based vesting conditions, subject to achievement of various performance goals by a future period,such as revenue and adjusted EBITDA targets. There are also stock option awards granted in 2019 to the current Chief Executive Officer ("CEO") containing performance and market vesting conditions that vest upon occurrence of an IPO or other qualifying liquidity event and upon achieving a predetermined equity value of the Company, which were fully vested as of July 31, 2023. There were no new stock option awards granted during the three months ended March 31, 2024 with performance-based vesting conditions. Service & Performance based Restricted Stock and RSUs Restricted stock and RSUs were granted under the 2021 Plan and primarily vest based on continuous service. The RSUs with service-based vesting conditions awarded to the employees have differing vesting schedules as specified in each grant agreement. The RSUs granted to non-employee directors vest in full on the earlier of: (i) the day immediately preceding the date of the first Annual Shareholders Meeting following the date of grant; or (ii) the first anniversary of the date of grant. During the three months ended March 31, 2024 and March 31, 2023, the Company also granted RSUs that contained performance-based vesting conditions, subject to achievement of various performance goals in the future, specifically net sales growth and Adjusted EBITDA targets. Also included in these awards are $3,000 of shares of restricted Common Stock granted at the time of the IPO to entities affiliated with a significant customer, at a price per share granted at the IPO of $15.00, or 200,000 restricted shares, in connection with an amendment to extend the distributor agreement term to June 10, 2026. Since the distribution agreement has not been terminated by either party for cause as of March 31, 2023, 50% of the shares were released on March 31, 2023. The remaining 50% were released on March 31, 2024. The grant was accounted for as a stock-based sales incentive based on guidance in ASC 606 and is reflected as a reduction in the transaction price of revenue on the basis of the grant-date fair-value measure in accordance with the stock compensation guidance in ASC 718. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES For the three months ended March 31, 2024 and 2023, the Company recorded income tax expense of $3,777 and $1,821, respectively, in its condensed consolidated statements of operations. In assessing the recoverability of its deferred tax assets, the Company continually evaluates all available positive and negative evidence to assess the amount of deferred tax assets for which it is more likely than not to realize a benefit. For any deferred tax asset in excess of the amount for which it is more likely than not that the Company will realize a benefit, the Company establishes a valuation allowance. As of March 31, 2024 and December 31, 2023, there was a $106 liability for income tax uncertainties recorded in the Company's consolidated balance sheets. The Company’s policy is to record interest and penalties related to income taxes as part of its income tax provision. The Company does not expect its uncertain tax positions to change significantly over the next twelve months. The Company recognized no interest and penalties related to income tax uncertainties in its consolidated balance sheets or consolidated statement of operations for the three months ended March 31, 2024 and 2023. The Company is subject to income tax examinations by the Internal Revenue Service ("IRS") and various state and local jurisdictions for the open tax years between December 31, 2019 and December 31, 2022. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic and diluted earnings per share were calculated as follows: Three months ended March 31, 2024 2023 Numerator: Net income $ 14,238 $ 6,705 Denominator: Weighted-average number of common shares used in earnings per share—basic 56,589,565 56,046,904 Effect of conversion of stock options 2,157,066 1,304,501 Weighted-average number of common shares used in earnings per share—diluted 58,746,631 57,351,405 Earnings per share—basic $ 0.25 $ 0.12 Earnings per share—diluted $ 0.24 $ 0.12 The following potentially dilutive securities, prior to the use of the treasury stock method, have been excluded from the computation of diluted weighted-average number of common shares outstanding, as they would be anti-dilutive: Three months ended March 31, 2024 2023 Options to purchase common stock and RSUs 301,813 1,067,435 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Reporting | SEGMENT REPORTING The Company has two operating and reportable segments: • Americas—The Americas segment is comprised primarily of the U.S. and Canada, and derives its revenues from the marketing and distribution of various coconut water and non-coconut water products (e.g., coconut oil and milk). The Company’s aluminum bottle canned water ( Ever & Ever ), protein infused fitness drink ( PWR LIFT ), and guayusa leaf products ( Runa ) are marketed only in the Americas segment. As of December 2023, we ceased offering the Runa brand. • International—The International segment is comprised primarily of Europe, Middle East, and Asia Pacific, which includes the Company’s procurement arm and derives its revenues from the marketing and distribution of various coconut water and non-coconut water products. The Company’s CEO is the chief operating decision maker and evaluates segment performance primarily based on net sales and gross profit. All intercompany transactions between the segments have been eliminated. Information about the Company’s operations by operating segment as of the three months ended March 31, 2024 and 2023 is as follows: Three Months Ended March 31, 2024 2023 Net sales $ 111,698 $ 109,759 Americas 96,091 96,772 International 15,607 12,987 Gross profit $ 47,177 $ 33,661 Americas 40,872 29,150 International 6,305 4,511 As of March 31, As of December 31, 2024 2023 Total segment assets $ 289,042 $ 285,682 Americas 205,709 209,984 International 83,333 75,698 Three Months Ended March 31, Reconciliation 2024 2023 Total gross profit $ 47,177 $ 33,661 Less: Selling, general, and administrative expenses 28,218 26,957 Income (loss) from operations $ 18,959 $ 6,704 Less: Unrealized gain/(loss) on derivative instruments (2,525) 1,213 Foreign currency gain/(loss) 58 611 Interest income 1,523 13 Interest expense — (15) Income before income taxes $ 18,015 $ 8,526 Geographic Data: The following table provides information related to the Company’s net sales by country, which is presented on the basis of the location that revenue from customers is recorded: Three Months Ended March 31, 2024 2023 United States $ 90,153 $ 90,513 United Kingdom 11,221 9,043 All other countries(1) 10,324 10,202 Net sales $ 111,698 $ 109,759 ___________ (1) No individual country is greater than 10% of total net sales for the three months ended March 31, 2024 and 2023. The following table provides information related to the Company’s property and equipment, net by country: March 31, December 31, United States $ 751 $ 729 Ecuador 141 140 Singapore 1,132 1,081 All other countries(1) 171 186 Property and equipment, net (including asset held for sale) $ 2,195 $ 2,136 ___________ (1) No individual country is greater than 10% of total property and equipment, net as of March 31, 2024 and December 31, 2023. |
Related-Party Transactions
Related-Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | RELATED-PARTY TRANSACTIONS Director Nominee Agreements - A member of the Board of Directors appointed under the Investor Rights Agreement by Verlinvest Beverages SA ("Verlinvest"), a stockholder of the Company, entered into a nominee agreement on May 24, 2022 instructing the Company to pay all cash and equity compensation earned in connection with his board of director service to Verlinvest. Based on the aforementioned nominee agreement, RSUs granted to this director will be held by him as nominee for Verlinvest and, upon vesting of the RSUs, the shares will be transferred to Verlinvest. The nominee agreements are primarily between the director and Verlinvest. The Company is a party to this arrangement solely to agree to the manner in which it would satisfy the compensation obligations to this director. Registration Rights and Underwriting Agreements |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTSOn April 24, 2024, the Company announced that AMS, a wholly owned subsidiary of the Company, entered into a Co-Manufacturing and Purchasing Agreement, dated April 18, 2024 with Axelum Resources Corp. (“Axelum”). The Company has an existing relationship with an affiliate of Axelum for the manufacture of various Company products in accordance with the terms of a manufacturing and purchasing agreement, dated April 8, 2020, which was filed as Exhibit 10.15 to the Company's Registration Statement on Form S-1 filed with the Securities and Exchange Commission ("SEC") on September 27, 2021. The new manufacturing agreement expands the Company's existing relationship with Axelum. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 14,238 | $ 6,705 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | In accordance with the disclosure requirements set forth in Item 408(a) of Regulation S-K, the following table discloses any officer (as defined in Rule 16a-1(f) under the Exchange Act), director, or entity controlled by such officer or director who adopted a contract, instruction, or written plan for the sale of securities of the Company intended to satisfy the affirmative defense of Rule 10b5-1(c) during the quarterly period ended March 31, 2024: Name Title Action Taken Date of Action Duration of Trading Arrangement Aggregate Number of Securities to be Sold Jonathan Burth Chief Operating Officer Adoption March 15, 2024 June 14, 2024 to July 31, 2025 Up to 100,000 shares of Common Stock issuable upon exercise of fully vested stock options and up to 40,000 shares of Common Stock Jane Prior Chief Marketing Officer Adoption March 15, 2024 June 14, 2024 to February 3, 2025 Up to 50,000 shares of Common Stock upon exercise of fully vested stock options Charles van Es Chief Sales Officer Adoption March 15, 2024 June 14, 2024 to January 31, 2025 Up to 39,675 shares of Common Stock upon exercise of fully vested stock options |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Jonathan Burth [Member] | |
Trading Arrangements, by Individual | |
Name | Jonathan Burth |
Title | Chief Operating Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 15, 2024 |
Arrangement Duration | 1 year 18 days |
Jane Prior [Member] | |
Trading Arrangements, by Individual | |
Name | Jane Prior |
Title | Chief Marketing Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 15, 2024 |
Arrangement Duration | 7 months 21 days |
Aggregate Available | 50,000 |
Charles van Es [Member] | |
Trading Arrangements, by Individual | |
Name | Charles van Es |
Title | Chief Sales Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 15, 2024 |
Arrangement Duration | 1 year 18 days |
Aggregate Available | 39,675 |
Jonathan Burth Trading Arrangement, Common Stock Issuable Upon Exercise Of Fully Vested Stock Options [Member] | Jonathan Burth [Member] | |
Trading Arrangements, by Individual | |
Aggregate Available | 100,000 |
Jonathan Burth Trading Arrangement, Common Stock [Member] | Jonathan Burth [Member] | |
Trading Arrangements, by Individual | |
Aggregate Available | 40,000 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements are presented in accordance with U.S. GAAP. |
Principles of Consolidation | Principles of Consolidation |
Use of Estimates | Use of Estimates Preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Management considers many factors in selecting appropriate financial accounting policies and controls in developing the estimates and assumptions that are used in the preparation of these condensed consolidated financial statements. Management must apply significant judgment in this process. In addition, other factors may affect estimates, including expected business and operational changes, sensitivity and volatility associated with the assumptions used in developing estimates, and whether historical trends are expected to be representative of future trends. Additionally, uncertainty in the macroeconomic environment resulting from current geopolitical and economic instability (including the effects of current wars and other international conflicts) and the high interest rate and inflationary cost environment make estimates and assumptions difficult to calculate with precision. The estimation process often may yield a range of reasonable estimates of the ultimate future outcomes, and management must select an amount that falls within that range of reasonable estimates. The most significant estimates in the condensed consolidated financial statements relate to share-based compensation, assessing long-lived assets for impairment, estimating the net realizable value of inventories, determining the accounts receivables reserve, assessing goodwill for impairment, determining the value of trade promotions, and assessing the realizability of deferred income taxes. Actual results could differ from those estimates. |
Concentration of Credit Risk | Concentration of Credit Risk The Company’s cash and accounts receivable are subject to concentrations of credit risk. The Company’s cash balances are primarily on deposit with banks in the U.S. which are guaranteed by the Federal Deposit Insurance Corporation ("FDIC") up to $250. At times, such cash may be in excess of the FDIC insurance limit. To minimize the risk, the Company’s policy is to maintain cash balances with high quality institutions, which may include banks, financial institutions and investment firms, and invest daily or reserve operating cash in money market funds, government securities, bank obligations, municipal securities or other investment vehicles with short-term maturities. Substantially all of the Company’s customers are either wholesalers or retailers of beverages. A material default in payment, a material reduction in purchases from these or any large customers, or the loss of a large customer or customer groups could have a material adverse impact on the Company’s financial condition, results of operations and liquidity. The Company is exposed to concentration of credit risk from its major customers for which two customers in aggregate represented 47% and 50% of total net sales for the three months ended March 31, 2024 and 2023, respectively. In addition, the two customers in aggregate also accounted for 39% and 43% of total accounts receivable as of March 31, 2024 and December 31, 2023, respectively. The Company has not experienced credit issues with these customers. Refer to Note 7, Commitments and Contingencies |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). The new accounting standard introduced the current expected credit losses methodology ("CECL") for estimating allowances for credit losses. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized costs, including loans and trade receivables. ASU 2016-13 was effective for the Company for annual and interim reporting periods beginning after December 15, 2022. The Company adopted the standard on January 1, 2023 using the modified retrospective method for all financial assets in scope. As a part of the adoption, the Company selected to apply roll-rate method to estimate current expected credit losses for its accounts receivable population and weighted average remaining maturity ("WARM") method for supplier advances. The difference of $1,070 between the incurred credit loss estimate and current expected credit loss estimate was recorded as cumulative effect adjustment to the Company’s opening retained earnings and reflected on the consolidated balance sheet as of January 1, 2023 as a result of the ASC Topic 326, Financial Instruments - Credit Losses ("ASC 326") adoption. The adoption of the standard did not have a material impact on the Company’s consolidated statements of operations, or consolidated statements of cash flows. The following table illustrates the impact of ASC 326. As of January 1, 2023 As reported under ASC 326 Pre-ASC 326 adoption Impact of ASC 326 adoption Allowance for credit losses on accounts receivables $ 3,552 $ 2,898 $ 654 Allowance for credit losses on supplier advances 416 — 416 Total $ 3,968 $ 2,898 $ 1,070 Recently Issued Accounting Pronouncements In November 2023, the FASB issued Accounting Standards Update 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities to disclose information about their reportable segments’ significant expenses and other segment items on an interim and annual basis ("ASU 2023-07"). Public entities with a single reportable segment are required to apply the disclosure requirements in ASU 2023-07, as well as all existing segment disclosures and reconciliation requirements in ASC Topic 280, Segment Reporting on an interim and annual basis. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2023-07. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the effective tax rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction ("ASU 2023-09"). ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2023-09. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | The following table illustrates the impact of ASC 326. As of January 1, 2023 As reported under ASC 326 Pre-ASC 326 adoption Impact of ASC 326 adoption Allowance for credit losses on accounts receivables $ 3,552 $ 2,898 $ 654 Allowance for credit losses on supplier advances 416 — 416 Total $ 3,968 $ 2,898 $ 1,070 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregation of Revenue | The following table disaggregates net revenue by product type and reportable segment: Three Months Ended March 31, 2024 Americas International Consolidated Vita Coco Coconut Water $ 69,522 $ 9,665 $ 79,187 Private Label 24,273 5,152 29,425 Other 2,296 790 3,086 Total $ 96,091 $ 15,607 $ 111,698 Three Months Ended March 31, 2023 Americas International Consolidated Vita Coco Coconut Water $ 69,138 $ 9,558 $ 78,696 Private Label 25,050 2,666 27,716 Other 2,584 763 3,347 Total $ 96,772 $ 12,987 $ 109,759 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Summary of Inventory | Inventory consists of the following: March 31, December 31, Raw materials and packaging $ 4,018 $ 3,360 Finished goods 52,746 47,397 Inventory $ 56,764 $ 50,757 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill | Goodwill consists of the following: March 31, December 31, Goodwill $ 7,791 $ 7,791 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Summary of Credit Facility and Notes Payable | The table below details the outstanding balances on the Company’s debt as of March 31, 2024 and December 31, 2023: March 31, December 31, Notes payable Vehicle loans 21 26 $ 21 $ 26 Current 11 13 Non-current $ 10 13 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Concentration of Risk, by Risk Factor | The Company’s customers that accounted for 10% or more of total net sales and total accounts receivable were as follows: Net sales Accounts receivable Three Months Ended March 31, March 31, December 31, 2024 2023 Customer A 25 % 26 % 18 % 20 % Customer B 22 % 24 % 21 % 23 % Three Months Ended March 31, 2024 2023 Supplier A 24 % 17 % Supplier B 14 % 15 % |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Notional Amount and Fair Value of All Outstanding Derivative Instruments | The notional amount and fair value of all outstanding derivative instruments in the condensed consolidated balance sheets consist of the following at: March 31, 2024 Derivatives not designated as Notional Fair Balance Sheet Location Assets Foreign currency exchange contracts Receive BRL/sell USD $ 55,191 $ 1,671 Derivative assets Receive USD/pay EUR 4,899 46 Derivative assets Receive USD/pay CAD 6,795 55 Derivative assets Liabilities Foreign currency exchange contracts Receive THB/sell USD $ 17,548 $ (1,186) Derivative liabilities Receive USD/pay GBP 20,610 (448) Derivative liabilities December 31, 2023 Derivatives not designated as Notional Fair Balance Sheet Location Assets Foreign currency exchange contracts Receive BRL/sell USD $ 62,253 $ 3,876 Derivative assets Liabilities Foreign currency exchange contracts Receive THB/sell USD 21,971 (285) Derivative liabilities Receive USD/pay EUR 5,627 (90) Derivative liabilities Receive USD/pay GBP 23,512 (749) Derivative liabilities Receive USD/pay CAD 7,666 (89) Derivative liabilities |
Summary of Realized and Unrealized Gains and Losses of the Derivative Instruments | The amount and location of realized and unrealized gains and losses of the derivative instruments in the condensed consolidated statements of operations for the three months ended March 31, 2024 and 2023 are as follows: Three Months Ended March 31, 2024 2023 Unrealized gain/(loss) on derivative instruments $ (2,525) $ 1,213 Location Unrealized gain/(loss) Unrealized gain/(loss) Foreign currency gain / (loss) $ 607 $ 1,071 Location Foreign currency Foreign currency |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities that are Measured at Fair Value on a Recurring Basis | The Company’s fair value hierarchy for those assets (liabilities) measured at fair value on a recurring basis at March 31, 2024 and December 31, 2023, is as follows: Level 1 Level 2 Level 3 Total Forward Currency March 31, 2024 $ — $ 138 $ — $ 138 December 31, 2023 $ — $ 2,663 $ — $ 2,663 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share were calculated as follows: Three months ended March 31, 2024 2023 Numerator: Net income $ 14,238 $ 6,705 Denominator: Weighted-average number of common shares used in earnings per share—basic 56,589,565 56,046,904 Effect of conversion of stock options 2,157,066 1,304,501 Weighted-average number of common shares used in earnings per share—diluted 58,746,631 57,351,405 Earnings per share—basic $ 0.25 $ 0.12 Earnings per share—diluted $ 0.24 $ 0.12 |
Summary of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following potentially dilutive securities, prior to the use of the treasury stock method, have been excluded from the computation of diluted weighted-average number of common shares outstanding, as they would be anti-dilutive: Three months ended March 31, 2024 2023 Options to purchase common stock and RSUs 301,813 1,067,435 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | Information about the Company’s operations by operating segment as of the three months ended March 31, 2024 and 2023 is as follows: Three Months Ended March 31, 2024 2023 Net sales $ 111,698 $ 109,759 Americas 96,091 96,772 International 15,607 12,987 Gross profit $ 47,177 $ 33,661 Americas 40,872 29,150 International 6,305 4,511 As of March 31, As of December 31, 2024 2023 Total segment assets $ 289,042 $ 285,682 Americas 205,709 209,984 International 83,333 75,698 |
Reconciliation of Gross Profit to Income (Loss) Before Income Taxes | Three Months Ended March 31, Reconciliation 2024 2023 Total gross profit $ 47,177 $ 33,661 Less: Selling, general, and administrative expenses 28,218 26,957 Income (loss) from operations $ 18,959 $ 6,704 Less: Unrealized gain/(loss) on derivative instruments (2,525) 1,213 Foreign currency gain/(loss) 58 611 Interest income 1,523 13 Interest expense — (15) Income before income taxes $ 18,015 $ 8,526 |
Revenue from External Customers by Geographic Areas | The following table provides information related to the Company’s net sales by country, which is presented on the basis of the location that revenue from customers is recorded: Three Months Ended March 31, 2024 2023 United States $ 90,153 $ 90,513 United Kingdom 11,221 9,043 All other countries(1) 10,324 10,202 Net sales $ 111,698 $ 109,759 ___________ (1) No individual country is greater than 10% of total net sales for the three months ended March 31, 2024 and 2023. |
Long-lived Assets by Geographic Areas | The following table provides information related to the Company’s property and equipment, net by country: March 31, December 31, United States $ 751 $ 729 Ecuador 141 140 Singapore 1,132 1,081 All other countries(1) 171 186 Property and equipment, net (including asset held for sale) $ 2,195 $ 2,136 ___________ (1) No individual country is greater than 10% of total property and equipment, net as of March 31, 2024 and December 31, 2023. |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation (Details) - Subsidiaries | 3 Months Ended |
Mar. 31, 2024 subsidiary | |
Subsidiaries Owned [Line Items] | |
Number of subsidiaries | 10 |
Asia | |
Subsidiaries Owned [Line Items] | |
Number of subsidiaries | 4 |
North America | |
Subsidiaries Owned [Line Items] | |
Number of subsidiaries | 4 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - Customer Concentration Risk - Two Customers | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Sep. 30, 2023 | |
Net sales | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 47% | 50% | |
Accounts receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 39% | 43% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Allowance for Credit Loss (Details) - Accounting Standards Update 2016-13 $ in Thousands | Jan. 01, 2023 USD ($) |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Allowance for credit losses on accounts receivables | $ 2,898 |
Allowance for credit losses on supplier advances | 0 |
Total | 2,898 |
As reported under ASC 326 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Allowance for credit losses on accounts receivables | 3,552 |
Allowance for credit losses on supplier advances | 416 |
Total | 3,968 |
Impact of ASC 326 adoption | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Allowance for credit losses on accounts receivables | 654 |
Allowance for credit losses on supplier advances | 416 |
Total | $ 1,070 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 111,698 | $ 109,759 |
Vita Coco Coconut Water | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 79,187 | 78,696 |
Private Label | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 29,425 | 27,716 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,086 | 3,347 |
Operating Segments | Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 96,091 | 96,772 |
Operating Segments | Americas | Vita Coco Coconut Water | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 69,522 | 69,138 |
Operating Segments | Americas | Private Label | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 24,273 | 25,050 |
Operating Segments | Americas | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,296 | 2,584 |
Operating Segments | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 15,607 | 12,987 |
Operating Segments | International | Vita Coco Coconut Water | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 9,665 | 9,558 |
Operating Segments | International | Private Label | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 5,152 | 2,666 |
Operating Segments | International | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 790 | $ 763 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials and packaging | $ 4,018 | $ 3,360 |
Finished goods | 52,746 | 47,397 |
Inventory | $ 56,764 | $ 50,757 |
Goodwill - Summary of Goodwill
Goodwill - Summary of Goodwill (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 7,791 | $ 7,791 |
Debt - Summary of Credit Facili
Debt - Summary of Credit Facility and Notes Payable (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule Of Line Of Credit Facilities And Notes Payable [Line Items] | ||
Notes payable | $ 21 | $ 26 |
Current | 11 | 13 |
Non-current | 10 | 13 |
Vehicle loans | ||
Schedule Of Line Of Credit Facilities And Notes Payable [Line Items] | ||
Notes payable | $ 21 | $ 26 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Dec. 31, 2022 | May 31, 2020 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Notes Payable, Other Payables | Vehicle loans | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 100,000 | ||||
Notes Payable, Other Payables | Minimum | Vehicle loans | |||||
Debt Instrument [Line Items] | |||||
Interest rate on vehicle loans | 4.56% | ||||
Notes Payable, Other Payables | Maximum | Vehicle loans | |||||
Debt Instrument [Line Items] | |||||
Interest rate on vehicle loans | 5.68% | ||||
2020 Credit facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, interest expense and unused commitment fee | $ 15,000 | $ 15,000 | |||
2020 Credit facility | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, term | 5 years | ||||
Line of credit facility, maximum borrowing capacity | $ 60,000,000 | ||||
Long-term line of credit | 0 | $ 0 | |||
Line of credit facility, remaining borrowing capacity | $ 60,000,000 | $ 60,000,000 | |||
2020 Credit facility | Line of Credit | Minimum | |||||
Debt Instrument [Line Items] | |||||
Unused capacity, commitment fee percentage | 0.10% | ||||
2020 Credit facility | Line of Credit | Maximum | |||||
Debt Instrument [Line Items] | |||||
Unused capacity, commitment fee percentage | 0.20% | ||||
2020 Credit facility | Line of Credit | Secured Overnight Financing Rate (SOFR) | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1% | ||||
2020 Credit facility | Line of Credit | Secured Overnight Financing Rate (SOFR) | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.75% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Concentration Risk [Line Items] | |||
Estimated litigation liability | $ 0 | $ 0 | |
Restricted Stock | |||
Concentration Risk [Line Items] | |||
Granted RSUs (in shares) | 200,000 | ||
One customer | |||
Concentration Risk [Line Items] | |||
Vested (in shares) | 100,000 | 100,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Concentration of Risk, by Risk Factor (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Supplier A | Supplier Concentration Risk | Cost of Goods and Service, Product and Service | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 24% | 17% | |
Supplier B | Supplier Concentration Risk | Cost of Goods and Service, Product and Service | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 14% | 15% | |
Customer A | Customer Concentration Risk | Net sales | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 25% | 26% | |
Customer A | Customer Concentration Risk | Accounts receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 18% | 20% | |
Customer B | Customer Concentration Risk | Net sales | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 22% | 24% | |
Customer B | Customer Concentration Risk | Accounts receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 21% | 23% |
Derivative Instruments - Summar
Derivative Instruments - Summary of Notional Amount and Fair Value of All Outstanding Derivative Instruments (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Receive BRL/sell USD | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, notional amount | $ 55,191 | $ 62,253 |
Derivative asset, fair value | 1,671 | 3,876 |
Receive USD/pay EUR | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, notional amount | 4,899 | |
Derivative asset, fair value | 46 | |
Derivative liability, notional amount | 5,627 | |
Derivative liability, fair value | (90) | |
Receive USD/pay CAD | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, notional amount | 6,795 | |
Derivative asset, fair value | 55 | |
Derivative liability, notional amount | 7,666 | |
Derivative liability, fair value | (89) | |
Receive THB/sell USD | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, notional amount | 17,548 | 21,971 |
Derivative liability, fair value | (1,186) | (285) |
Receive USD/pay GBP | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, notional amount | 20,610 | 23,512 |
Derivative liability, fair value | $ (448) | $ (749) |
Derivative Instruments - Summ_2
Derivative Instruments - Summary of Realized and Unrealized Gains and Losses of the Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivatives, Fair Value [Line Items] | ||
Unrealized gain/(loss) on derivative instruments | $ (2,525) | $ 1,213 |
Unrealized gain/(loss) on derivative instruments | ||
Derivatives, Fair Value [Line Items] | ||
Unrealized gain/(loss) on derivative instruments | (2,525) | 1,213 |
Foreign currency gain / (loss) | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency gain / (loss) | $ 607 | $ 1,071 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 138 | $ 2,663 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 0 | 0 |
Level 2 | Forward Currency Swaps/Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 138 | 2,663 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 0 | $ 0 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2024 USD ($) vote $ / shares shares | Mar. 31, 2023 USD ($) shares | Jun. 30, 2022 | Dec. 31, 2023 USD ($) shares | Oct. 30, 2023 USD ($) | Dec. 31, 2022 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of votes per share of common stock | vote | 1 | |||||
Treasury stock (in shares) | 6,627,744 | 6,236,200 | ||||
Stock repurchase program, authorized amount | $ | $ 29,992 | $ 40,000 | ||||
Payments for repurchase of common stock | $ | 9,235 | $ 0 | $ 773 | |||
Stock-based compensation expense | $ | 1,958 | 1,297 | ||||
Stock-based sales incentive | $ | $ 151 | $ 865 | ||||
Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock repurchased during period (in shares) | 391,544 | 30,000 | ||||
Exercise of stock options (in shares) | 176,284 | 185,783 | ||||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options granted (in shares) | 162,324 | 0 | ||||
Aggregate intrinsic value, nonvested | $ | $ 3,000 | |||||
Granted (in dollars per share) | $ / shares | $ 15 | |||||
Granted RSUs (in shares) | 200,000 | |||||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate grant date fair value | $ | $ 7,858 | |||||
Service-Based Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Exercise of stock options (in shares) | 13,960 | 66,523 | ||||
Granted RSUs (in shares) | 241,791 | |||||
Performance-Based Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted RSUs (in shares) | 58,365 | |||||
Service-based Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options granted (in shares) | 168,076 | |||||
2021 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common shares reserved for future issuance (in shares) | 3,231,028 | 3,124,326 | ||||
Percentage of outstanding stock maximum | 2% | |||||
2021 Plan | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common shares reserved for future issuance (in shares) | 3,431,312 | |||||
2014 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of outstanding stock maximum | 8% | |||||
Share based compensation arrangement by share based payment award, Award vesting period | 10 years | |||||
2014 Plan | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of vesting of award under share-based payment arrangement | 50% | |||||
2014 Plan | Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of vesting of award under share-based payment arrangement | 50% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 3,777,000 | $ 1,821,000 | |
Unrecognized tax benefits | $ 106,000 | $ 106,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net income | $ 14,238 | $ 6,705 |
Denominator: | ||
Weighted-average number of common shares used in earnings per share - basic (in shares) | 56,589,565 | 56,046,904 |
Effect of conversion of stock options and RSUs (in shares) | 2,157,066 | 1,304,501 |
Weighted-average number of common shares used in earnings per share - diluted (in shares) | 58,746,631 | 57,351,405 |
Earnings per share - basic (in dollars per share) | $ 0.25 | $ 0.12 |
Earnings per share - diluted (in dollars per share) | $ 0.24 | $ 0.12 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Payment Arrangement, Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Options to purchase common stock and RSUs (in shares) | 301,813 | 1,067,435 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 2 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Reporting Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 111,698 | $ 109,759 | |
Total gross profit | 47,177 | 33,661 | |
Total segment assets | 289,042 | $ 285,682 | |
Operating Segments | Americas | |||
Segment Reporting Information [Line Items] | |||
Net sales | 96,091 | 96,772 | |
Total gross profit | 40,872 | 29,150 | |
Total segment assets | 205,709 | 209,984 | |
Operating Segments | International | |||
Segment Reporting Information [Line Items] | |||
Net sales | 15,607 | 12,987 | |
Total gross profit | 6,305 | $ 4,511 | |
Total segment assets | $ 83,333 | $ 75,698 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Gross Profit to Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting [Abstract] | ||
Total gross profit | $ 47,177 | $ 33,661 |
Selling, general, and administrative expenses | 28,218 | 26,957 |
Income (loss) from operations | 18,959 | 6,704 |
Unrealized gain/(loss) on derivative instruments | (2,525) | 1,213 |
Foreign currency gain/(loss) | 58 | 611 |
Interest income | 1,523 | 13 |
Interest expense | 0 | (15) |
Income before income taxes | $ 18,015 | $ 8,526 |
Segment Reporting - Revenue fro
Segment Reporting - Revenue from External Customers by Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 111,698 | $ 109,759 |
United States | Operating Segments | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 90,153 | 90,513 |
United Kingdom | Operating Segments | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 11,221 | 9,043 |
All other countries | Operating Segments | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 10,324 | $ 10,202 |
Segment Reporting - Long Lived
Segment Reporting - Long Lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net (including asset held for sale) | $ 2,195 | $ 2,136 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net (including asset held for sale) | 751 | 729 |
Ecuador | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net (including asset held for sale) | 141 | 140 |
Singapore | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net (including asset held for sale) | 1,132 | 1,081 |
All other countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net (including asset held for sale) | $ 171 | $ 186 |
Related-Party Transactions (Det
Related-Party Transactions (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 offering | Mar. 31, 2024 USD ($) | |
Related Party Transactions [Abstract] | ||
Number of secondary offerings | offering | 2 | |
Accrual for legal fees reimbursement | $ | $ 300 |