Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 05, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-54866 | |
Entity Registrant Name | CRIMSON WINE GROUP, LTD. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-3607383 | |
Entity Address, Address Line One | 5901 Silverado Trail | |
Entity Address, City or Town | Napa | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94558 | |
City Area Code | 800 | |
Local Phone Number | 486-0503 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 22,360,558 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Entity Central Index Key | 0001562151 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 39,196 | $ 32,732 |
Investments available for sale | 8,961 | 12,493 |
Accounts receivable, net | 5,594 | 6,572 |
Inventory | 46,736 | 52,548 |
Other current assets | 1,626 | 1,456 |
Total current assets | 102,113 | 105,801 |
Property and equipment, net | 110,397 | 111,439 |
Goodwill | 1,262 | 1,262 |
Intangible and other non-current assets, net | 7,660 | 8,322 |
Total non-current assets | 119,319 | 121,023 |
Total assets | 221,432 | 226,824 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 8,756 | 13,171 |
Customer deposits | 625 | 366 |
Current portion of long-term debt, net of unamortized loan fees | 1,128 | 1,128 |
Total current liabilities | 10,509 | 14,665 |
Long-term debt, net of current portion and unamortized loan fees | 18,235 | 18,799 |
Deferred tax liability, net | 798 | 748 |
Other non-current liabilities | 9 | 9 |
Total non-current liabilities | 19,042 | 19,556 |
Total liabilities | 29,551 | 34,221 |
Commitments and contingencies (Note 13) | ||
Stockholders’ Equity | ||
Common shares, par value $0.01 per share, authorized 150,000,000 shares; 22,389,463 and 22,524,185 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively | 224 | 225 |
Additional paid-in capital | 277,877 | 277,719 |
Accumulated other comprehensive (loss) income | (23) | 2 |
Accumulated deficit | (86,197) | (85,343) |
Total stockholders’ equity | 191,881 | 192,603 |
Total liabilities and stockholders’ equity | $ 221,432 | $ 226,824 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common shares, shares issued (in shares) | 22,389,463 | 22,524,185 |
Common shares, shares outstanding (in shares) | 22,389,463 | 22,524,185 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 18,082 | $ 17,391 | $ 36,705 | $ 31,972 |
Cost of sales | 9,729 | 9,051 | 21,257 | 17,991 |
Gross profit | 8,353 | 8,340 | 15,448 | 13,981 |
Operating expenses: | ||||
Sales and marketing | 4,543 | 3,750 | 8,282 | 6,795 |
General and administrative | 3,263 | 3,256 | 6,561 | 6,714 |
Total operating expenses | 7,806 | 7,006 | 14,843 | 13,509 |
Net loss (gain) on disposal of property and equipment | 107 | (31) | 127 | (27) |
Income from operations | 440 | 1,365 | 478 | 499 |
Other (expense) income: | ||||
Interest expense, net | (94) | (181) | (377) | (431) |
Gain on extinguishment of debt | 0 | 3,863 | 0 | 3,863 |
Other income, net | 99 | 208 | 126 | 258 |
Total other income (expense), net | 5 | 3,890 | (251) | 3,690 |
Income before income taxes | 445 | 5,255 | 227 | 4,189 |
Income tax expense | 127 | 537 | 66 | 318 |
Net income | $ 318 | $ 4,718 | $ 161 | $ 3,871 |
Basic weighted-average shares outstanding (in shares) | 22,450 | 22,943 | 22,486 | 23,092 |
Fully diluted weighted-average shares outstanding (in shares) | 22,450 | 22,947 | 22,487 | 23,092 |
Basic earning per share (in dollars per share) | $ 0.01 | $ 0.21 | $ 0.01 | $ 0.17 |
Fully diluted earning per share (in dollars per share) | $ 0.01 | $ 0.21 | $ 0.01 | $ 0.17 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 318 | $ 4,718 | $ 161 | $ 3,871 |
Other comprehensive loss: | ||||
Net unrealized holding losses on investments arising during the period, net of tax | (19) | (1) | (25) | (6) |
Comprehensive income | $ 299 | $ 4,717 | $ 136 | $ 3,865 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Net cash flows from operating activities: | ||
Net income | $ 161 | $ 3,871 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Depreciation and amortization of property and equipment | 2,976 | 3,240 |
Amortization of intangible assets | 643 | 643 |
Loss on write-down of inventory | 926 | 711 |
Net loss (gain) on disposal of property and equipment | 127 | (27) |
Provision for deferred income taxes | 66 | 314 |
Stock-based compensation | 158 | 14 |
Gain on extinguishment of debt | 0 | (3,863) |
Net change in operating assets and liabilities: | ||
Accounts receivable | 978 | 1,407 |
Inventory | 4,886 | 4,432 |
Other current assets | (170) | 833 |
Other non-current assets | 19 | (48) |
Accounts payable and accrued liabilities | (4,825) | (2,175) |
Customer deposits | 265 | 164 |
Other non-current liabilities | 0 | (83) |
Net cash provided by operating activities | 6,210 | 9,433 |
Net cash flows from investing activities: | ||
Purchase of investments available for sale | (5,750) | (8,000) |
Redemptions of investments available for sale | 9,250 | 6,750 |
Acquisition of property and equipment | (1,678) | (1,269) |
Proceeds from disposals of property and equipment | 18 | 143 |
Net cash provided by (used in) investing activities | 1,840 | (2,376) |
Net cash flows from financing activities: | ||
Principal payments on long-term debt | (570) | (285) |
Repurchase of common stock | (1,016) | (6,240) |
Net cash used in financing activities | (1,586) | (6,525) |
Net increase in cash and cash equivalents | 6,464 | 532 |
Cash and cash equivalents - beginning of period | 32,732 | 29,314 |
Cash and cash equivalents - end of period | 39,196 | 29,846 |
Cash paid during the period for: | ||
Interest, net of capitalized interest | 568 | 301 |
Income tax payments, net | 0 | 0 |
Non-cash investing and financing activity: | ||
Unrealized holding losses on investments, net of tax | (25) | (6) |
Acquisition of property and equipment accrued but not yet paid | $ 401 | $ 116 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive (Loss)Income | Accumulated Deficit |
Balance (in shares) at Dec. 31, 2020 | 23,243,476 | ||||
Balance at Dec. 31, 2020 | $ 195,520 | $ 232 | $ 277,550 | $ 13 | $ (82,275) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 3,871 | 3,871 | |||
Other comprehensive loss | (6) | (6) | |||
Stock-based compensation | 14 | 14 | |||
Repurchase of common stock (in shares) | (719,291) | ||||
Repurchase of common stock | (6,240) | $ (7) | (6,233) | ||
Balance (in shares) at Jun. 30, 2021 | 22,524,185 | ||||
Balance at Jun. 30, 2021 | 193,159 | $ 225 | 277,564 | 7 | (84,637) |
Balance (in shares) at Mar. 31, 2021 | 23,243,476 | ||||
Balance at Mar. 31, 2021 | 194,675 | $ 232 | 277,557 | 8 | (83,122) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 4,718 | 4,718 | |||
Other comprehensive loss | (1) | (1) | |||
Stock-based compensation | 7 | 7 | |||
Repurchase of common stock (in shares) | (719,291) | ||||
Repurchase of common stock | (6,240) | $ (7) | (6,233) | ||
Balance (in shares) at Jun. 30, 2021 | 22,524,185 | ||||
Balance at Jun. 30, 2021 | 193,159 | $ 225 | 277,564 | 7 | (84,637) |
Balance (in shares) at Dec. 31, 2021 | 22,524,185 | ||||
Balance at Dec. 31, 2021 | 192,603 | $ 225 | 277,719 | 2 | (85,343) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 161 | 161 | |||
Other comprehensive loss | (25) | (25) | |||
Stock-based compensation | 158 | 158 | |||
Repurchase of common stock (in shares) | (134,722) | ||||
Repurchase of common stock | (1,016) | $ (1) | (1,015) | ||
Balance (in shares) at Jun. 30, 2022 | 22,389,463 | ||||
Balance at Jun. 30, 2022 | 191,881 | $ 224 | 277,877 | (23) | (86,197) |
Balance (in shares) at Mar. 31, 2022 | 22,516,882 | ||||
Balance at Mar. 31, 2022 | 192,438 | $ 225 | 277,776 | (4) | (85,559) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 318 | 318 | |||
Other comprehensive loss | (19) | (19) | |||
Stock-based compensation | 101 | 101 | |||
Repurchase of common stock (in shares) | (127,419) | ||||
Repurchase of common stock | (957) | $ (1) | (956) | ||
Balance (in shares) at Jun. 30, 2022 | 22,389,463 | ||||
Balance at Jun. 30, 2022 | $ 191,881 | $ 224 | $ 277,877 | $ (23) | $ (86,197) |
Background and Basis of Present
Background and Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation Background Crimson Wine Group, Ltd. and its subsidiaries (collectively, “Crimson” or the “Company”) is a Delaware corporation that has been conducting business since 1991. Crimson is in the business of producing and selling luxury wines (i.e., wines that retail for over $16 per 750ml bottle). Crimson is headquartered in Napa, California and through its subsidiaries owns seven primary wine estates and brands: Pine Ridge Vineyards, Archery Summit, Chamisal Vineyards, Seghesio Family Vineyards, Double Canyon, Seven Hills Winery and Malene Wines. Financial Statement Preparation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. The unaudited interim condensed consolidated financial statements, which reflect all adjustments (consisting of normal recurring items or items discussed herein) that management believes necessary to fairly state results of interim operations, should be read in conjunction with the Notes to Consolidated Financial Statements (including the Significant Accounting Policies and Recent Accounting Pronouncements) included in the Company’s audited consolidated financial statements for the year ended December 31, 2021, as filed with the SEC on Form 10-K (the “2021 Report”). Results of operations for interim periods are not necessarily indicative of annual results of operations. The unaudited condensed consolidated balance sheet at December 31, 2021 was extracted from the audited annual consolidated financial statements and does not include all disclosures required by GAAP for annual financial statements. Significant Accounting Policies There were no changes to the Company’s significant accounting policies during the six months ended June 30, 2022. See Note 2 of the 2021 Report for a description of the Company’s significant accounting policies. Recent Accounting Pronouncements Subsequent to the filing of the 2021 Report, the Company evaluated Accounting Standards Update (“ASU”) 2022-01 through 2022-03 issued by the Financial Accounting Standards Board (“FASB”) and concluded none of the accounting pronouncements would have a material effect or are applicable to Crimson’s unaudited interim condensed consolidated financial statements. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Revenue Recognition Revenue is recognized once performance obligations under the terms of the Company’s contracts with its customers have been satisfied; this occurs at a point in time when control of the promised product or service is transferred to customers. Generally, the majority of the Company’s contracts with its customers have a single performance obligation and are short term in nature. Revenue is measured in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. The Company accounts for shipping and handling activities as costs to fulfill its promise to transfer the associated products. Accordingly, the Company records amounts billed for shipping and handling costs as a component of net sales, and classifies such costs as a component of cost of sales. The Company’s products are generally not sold with a right of return unless the product is spoiled or damaged. Historically, returns have not been material to the Company. Wholesale Segment The Company sells its wine to wholesale distributors under purchase orders. The Company transfers control and recognizes revenue for these orders upon shipment of the wine from the Company’s third-party warehouse facilities. Payment terms to wholesale distributors typically range from 30 to 120 days. The Company pays depletion allowances to its wholesale distributors based on their sales to their customers. The Company estimates these depletion allowances and records such estimates in the same period the related revenue is recognized, resulting in a reduction of wholesale product revenue and the establishment of a current liability. Subsequently, wholesale distributors will bill the Company for actual depletions, which may be different from the Company’s estimate. Any such differences are recognized in sales when the bill is received. The Company has historically been able to estimate depletion allowances without significant differences between actual and estimated expense. Direct to Consumer Segment The Company sells its wine and other merchandise directly to consumers through wine club memberships, at the wineries’ tasting rooms and through its website (http://www.crimsonwinegroup.com), third-party websites, direct phone calls, and other online sales (“Ecommerce”). Wine club membership sales are made under contracts with customers, which specify the quantity and timing of future wine shipments. Customer credit cards are charged in advance of quarterly wine shipments in accordance with each contract. The Company transfers control and recognizes revenue for these contracts upon shipment of the wine to the customer. Tasting room and Ecommerce wine sales are paid for at the time of sale. The Company transfers control and recognizes revenue for this wine when the product is either received by the customer (on-site tasting room sales) or upon shipment to the customer (“Ecommerce sales”). Other From time to time, the Company sells grapes or bulk wine because the grapes or wine do not meet the quality standards for the Company’s products, market conditions have changed resulting in reduced demand for certain products, or because the Company may have produced more of a particular varietal than it can use. Grape and bulk sales are made under contracts with customers which include product specification requirements, pricing and payment terms. Payment terms under grape contracts are generally structured around the timing of the harvest of the grapes and are generally due 30 days from the time the grapes are delivered. Payment terms under bulk wine contracts are generally 30 days from the date of shipment and may include an upfront payment upon signing of the sales agreement. The Company transfers control and recognizes revenue for grape sales when product specification has been met and title to the grapes has transferred, which is generally on the date the grapes are harvested, weighed and shipped. The Company transfers control and recognizes revenue for bulk wine contracts upon shipment. The Company provides custom winemaking services at Double Canyon, Chamisal, and Pine Ridge’s winemaking facilities. Custom winemaking services are made under contracts with customers which include specific protocols, pricing, and payment terms and generally have a duration of less than one year. The customer retains title and control of the wine during the winemaking process. The Company recognizes revenue when contract specific performance obligations are met. Estates hold various public and private events for customers and their wine club members. Upfront consideration received from the sale of tickets or under private event contracts for future events is recorded as deferred revenue. The balance of payments are due on the date of the event. The Company recognizes event revenue on the date the event is held. Other revenue also includes tasting fees and retail merchandise sales, which are paid for and received or consumed at the time of sale. The Company transfers control and recognizes revenue at the time of sale. Refer to Note 12, “Business Segment Information,” for revenue by sales channel amounts for the three and six months ended June 30, 2022 and 2021. Contract Balances When the Company receives payments from customers prior to transferring goods or services under the terms of a contract, the Company records deferred revenue, which it classifies as customer deposits on its unaudited condensed consolidated balance sheets, and represents a contract liability. Customer deposits are liquidated when revenue is recognized. Revenue that was included in the contract liability balance at the beginning of each of the 2022 and 2021 years consisted primarily of wine club revenue, grape and bulk sales and event fees. Changes in the contract liability balance during the six-month periods ended June 30, 2022 and 2021, were not materially impacted by any other factors. The outstanding contract liability balance was $0.6 million at June 30, 2022 and $0.4 million at December 31, 2021. Of the amounts included in the opening contract liability balances at the beginning of each period, approximately $0.3 million and $0.2 million were recognized as revenue during the six month periods ended June 30, 2022 and 2021, respectively. Accounts Receivable Accounts receivable are reported at net realizable value. Credit is extended based on an evaluation of the customer’s financial condition. Accounts are charged against the allowance for bad debt as they are deemed uncollectible based on a periodic review of the accounts. In evaluating the collectability of individual receivable balances, the Company considers several factors, including the age of the balance, the customer’s historical payment history, its current credit worthiness and current economic trends. The Company’s accounts receivable balance is net of an allowance for doubtful accounts of $0.2 million at both June 30, 2022 and December 31, 2021. |
Notes Receivable
Notes Receivable | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Notes Receivable | Notes Receivable Notes receivable consisted of the following as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Notes receivable, current (1) $ 36 $ 36 Notes receivable, non-current (2) 396 405 Total $ 432 $ 441 __________________________________________ (1) Reported within other current assets of the unaudited interim condensed consolidated balance sheets (2) Reported within other non-current assets of the unaudited interim condensed consolidated balance sheets In June 2021, the Company closed on the sale of 36 acres of fallow apple orchards located in Umatilla County, Oregon for an aggregate sale price of $0.6 million. Per the sales agreement, approximately $0.1 million was paid in cash at the closing of the asset sale with the Company financing the remainder of the purchase price in the form of a promissory note in the aggregate principal amount of $0.5 million. The note earns interest at a rate per annum of 5.00% with monthly principal and interest payments commencing July 2021. The note contains an arrangement for two balloon payments with the first balloon payment paid to the Company in December 2021 and the final balloon payment due to the Company on or before June 1, 2024. In June 2021, per the Company’s leasing agreement of its restaurant space in Walla Walla, Washington, the Company agreed to finance the incoming tenant’s purchase of restaurant equipment from the prior tenant. Therefore, a promissory note in the aggregate principal amount of approximately $0.1 million was issued to the Company. The note is due in June 2026 and earns interest at a rate per annum of 5.00% with annual principal and interest payments commencing on September 1, 2021. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory A summary of inventory at June 30, 2022 and December 31, 2021 is as follows (in thousands): June 30, 2022 December 31, 2021 Finished goods $ 19,518 $ 26,362 In-process goods 25,886 25,450 Packaging and bottling supplies 1,332 736 Total inventory $ 46,736 $ 52,548 As required, the Company reduces the carrying value of inventories that are obsolete or in excess of estimated usage to estimated net realizable value. The Company’s estimates of net realizable value are based on analyses and assumptions including, but not limited to, historical usage, projected future demand and market requirements. Reductions to the carrying value of inventories are recorded in cost of sales. If future demand and/or profitability for the Company’s products are less than previously estimated, then the carrying value of the inventories may be required to be reduced, resulting in additional expense and reduced profitability. The Company's inventory write-downs may consist of reductions to bottled or bulk wine inventory as well as crop insurance proceeds from farming losses recorded as offsets against previously recognized write-downs. Inventory write-downs of $0.2 million and $0.1 million were recorded during the three month periods ended June 30, 2022 and 2021, respectively. Inventory write-downs of $0.9 million and $0.7 million were recorded during the six month periods ended June 30, 2022 and 2021, respectively. The Company’s inventory balances are presented at the lower of cost or net realizable value. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment A summary of property and equipment at June 30, 2022 and December 31, 2021, and depreciation and amortization for the three and six months ended June 30, 2022 and 2021, is as follows (in thousands): Depreciable Lives (in years) June 30, 2022 December 31, 2021 Land and improvements N/A $ 44,912 $ 44,912 Buildings and improvements 20-40 60,548 59,529 Winery and vineyard equipment 3-25 33,921 33,744 Vineyards and improvements 7-25 34,411 34,331 Caves 20-40 5,639 5,639 Vineyards under development N/A 1,554 1,224 Construction in progress N/A 2,608 4,229 Total 183,593 183,608 Accumulated depreciation and amortization (73,196) (72,169) Total property and equipment, net $ 110,397 $ 111,439 Three Months Ended June 30, Six Months Ended June 30, Depreciation and amortization: 2022 2021 2022 2021 Capitalized into inventory $ 1,110 $ 1,213 $ 2,234 $ 2,435 Expensed to general and administrative 377 403 742 805 Total depreciation and amortization $ 1,487 $ 1,616 $ 2,976 $ 3,240 |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Financial Instruments | Financial Instruments The Company’s material financial instruments include cash and cash equivalents, investments classified as available for sale, and short-term and long-term debt. Investments classified as available for sale are the only assets or liabilities that are measured at fair value on a recurring basis. All of the Company’s investments mature within two years or less. The par value, amortized cost, gross unrealized gains and losses, and estimated fair value of investments classified as available for sale as of June 30, 2022 and December 31, 2021 are as follows (in thousands): June 30, 2022 Par Value Amortized Cost Gross Gross Level 1 Level 2 Total Fair Value Certificates of Deposit $ 9,000 $ 9,000 $ 1 $ (40) $ — $ 8,961 $ 8,961 December 31, 2021 Par Value Amortized Cost Gross Gross Level 1 Level 2 Total Fair Value Certificates of Deposit $ 12,500 $ 12,500 $ — $ (7) $ — $ 12,493 $ 12,493 Gross unrealized losses on available for sale securities were less than $0.1 million as of June 30, 2022. The Company believes the gross unrealized losses are temporary as it does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities before the recovery of their amortized cost basis. As of June 30, 2022 and December 31, 2021, the Company did not have any assets or liabilities measured at fair value on a nonrecurring basis. For cash and cash equivalents, the carrying amounts of such financial instruments approximate their fair values. For short-term debt, the carrying amounts of such financial instruments approximate their fair values. As of June 30, 2022, the Company has estimated the fair value of its outstanding debt to be approximately $16.7 million compared to its carrying value of $19.5 million, based upon discounted cash flows with Level 3 inputs, such as the terms that management believes would currently be available to the Company for similar issues of debt, taking into account the current credit risk of the Company and other factors. Level 3 inputs include market rates obtained from American AgCredit, FLCA (“Lender”) as of June 30, 2022 of 6.78% and 6.68% for the 2015 Term Loan and 2017 Term Loan, respectively, as further discussed in Note 9, “Debt.” The Company does not invest in any derivatives or engage in any hedging activities. |
Intangible and Other Non-Curren
Intangible and Other Non-Current Assets | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible and Other Non-Current Assets | Intangible and Other Non-Current Assets A summary of intangible and other non-current assets at June 30, 2022 and December 31, 2021, and amortization expense for the three and six months ended June 30, 2022 and 2021, is as follows (in thousands): June 30, 2022 December 31, 2021 Amortizable lives Gross carrying amount Accumulated amortization Net book value Gross carrying amount Accumulated amortization Net book value Brand 15-17 $ 18,000 $ (11,624) $ 6,376 $ 18,000 $ (11,092) $ 6,908 Distributor relationships 10-14 2,700 (2,122) 578 2,700 (2,025) 675 Legacy permits 14 250 (198) 52 250 (189) 61 Trademark 20 200 (138) 62 200 (133) 67 Total $ 21,150 $ (14,082) $ 7,068 $ 21,150 $ (13,439) $ 7,711 Other non-current assets 592 611 Total intangible and other non-current assets, net $ 7,660 $ 8,322 Three Months Ended June 30, Six Months Ended Amortization expense 2022 2021 2022 2021 Total amortization expense $ 322 $ 322 $ 643 $ 643 The estimated aggregate future amortization of intangible assets as of June 30, 2022 is identified below (in thousands): Amortization Remainder of 2022 $ 643 2023 1,286 2024 1,286 2025 1,168 2026 1,073 Thereafter 1,612 Total $ 7,068 |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities consisted of the following as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Accounts payable and accrued grape liabilities $ 2,311 $ 5,689 Accrued compensation related expenses 2,136 2,881 Sales and marketing 633 1,434 Acquisition of property and equipment 407 649 Accrued interest 258 268 Depletion allowance 1,613 1,300 Production and farming 602 445 Other accrued expenses 796 505 Total accounts payable and accrued liabilities $ 8,756 $ 13,171 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt A summary of debt at June 30, 2022 and December 31, 2021 is as follows (in thousands): June 30, 2022 December 31, 2021 Revolving Credit Facility (1) $ — $ — Senior Secured Term Loan Agreement due 2040, with an interest rate of 5.24% (2) 11,840 12,160 Senior Secured Term Loan Agreement due 2037, with an interest rate of 5.39% (3) 7,625 7,875 Unamortized loan fees (102) (108) Total debt 19,363 19,927 Less current portion of long-term debt 1,128 1,128 Long-term debt due after one year, net $ 18,235 $ 18,799 ______________________________________ (1) The Revolving Credit Facility is comprised of a revolving loan facility (the “Revolving Loan”) and a term revolving loan facility (the “Term Revolving Loan”), which together are secured by substantially all of Crimson’s assets. The Revolving Loan is for up to $10.0 million of availability in the aggregate for a five year term, and the Term Revolving Loan is for up to $50.0 million in the aggregate for a fifteen year (2) Pine Ridge Winery, LLC, a wholly-owned subsidiary of Crimson, is party to a senior secured term loan agreement due on October 1, 2040 (the “2015 Term Loan”). Principal and interest are payable in quarterly installments. (3) Double Canyon Vineyards, LLC, a wholly-owned subsidiary of Crimson, is party to a senior secured term loan agreement due on July 1, 2037 (the “2017 Term Loan”). Principal and interest are payable in quarterly installments. Debt covenants include the maintenance of specified debt and equity ratios, a specified debt service coverage ratio, and certain customary affirmative and negative covenants, including limitations on the incurrence of additional indebtedness, limitations on dividends and other distributions to shareholders and restrictions on certain investments, certain mergers, consolidations and sales of assets. The Company was in compliance with all existing debt covenants as of June 30, 2022. A summary of debt maturities as of June 30, 2022 is as follows (in thousands): Principal due the remainder of 2022 $ 570 Principal due in 2023 1,140 Principal due in 2024 1,140 Principal due in 2025 1,140 Principal due in 2026 1,140 Principal due thereafter 14,335 Total $ 19,465 |
Stockholders' Equity and Stock-
Stockholders' Equity and Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity and Stock-Based Compensation | Stockholders' Equity and Stock-Based Compensation Share Repurchase On May 24, 2021, with the unanimous written consent of the Board of Directors, the Company repurchased an aggregate of 719,291 shares of its common stock at a purchase price of $8.65 per share for an aggregate purchase price of $6.2 million. The Company’s repurchase was funded through cash on hand, and the shares were retired. In March 2022, the Company commenced a share repurchase program (the “2022 Repurchase Program”) that provided for the repurchase of up to $4.0 million of outstanding common stock. Under the 2022 Repurchase Program, any repurchased shares are constructively retired. During the six months ended June 30, 2022, the Company repurchased 134,722 shares of its common stock at an average purchase price of $7.52 per share for an aggregate purchase price of $1.0 million. Stock-Based Compensation In February 2013, the Company adopted the 2013 Omnibus Incentive Plan (the "2013 Plan"), which provides for the granting of up to 1,000,000 stock options or other common stock-based awards. In July 2022, upon the approval of the Company's Board of Directors and shareholders, the Company adopted the 2022 Omnibus Incentive Plan ("the 2022 Plan") to supersede and replace the 2013 Plan. The 2022 Plan provides for the granting of up to 678,000 stock options or other common stock-based awards. The terms of awards that may be granted, including vesting and performance criteria, if any, will be determined by the Company’s Board of Directors. In December 2019, under the Company’s 2013 Omnibus Incentive Plan, option grants for 89,000 shares were issued. The options vest annually over five years and expire seven years from the date of grant. In July 2021, stock option awards for an additional 233,000 shares were issued to certain members of management. Subject to the terms of the respective option award agreements, the options vest in four equal increments on each of January 4, 2022, January 4, 2023, January 4, 2024 and January 4, 2025, and the options will expire seven years from the date of grant. In March 2022, stock option awards for an additional 500,000 shares were issued. The options for the aggregate of 500,000 shares are divided into four tranches, subject to both performance-based vesting requirements and time-based vesting requirements and expire ten years from the date of grant. The performance-based vesting requirements are tied to annual or cumulative Adjusted EBITDA targets, as defined within the underlying option award agreement. The Company believes it will achieve these targets and has recorded the related stock-based compensation expense for the three and six months ended June 30, 2022. The exercise price for all respective options was the closing price on the date of grant. Estimates of stock-based compensation expense require a number of complex and subjective assumptions, including the selection of an option pricing model. The Company determined the grant date fair value of the awards using the Black-Scholes-Merton option-pricing valuation model, with the following assumptions and values: December 2019 Grants July 2021 Grants March 2022 Grants Shares issued 89,000 233,000 500,000 Expected term 5.00 years 4.75 years 6.90 - 8.40 years Expected dividend yield — % — % — % Risk-free interest rate 1.60 % 0.76 % 2.01 % Expected stock price volatility 22 % 31 % 27 - 28% Stock price $ 6.90 $ 8.88 $ 7.50 Weighted-average grant date fair value $ 1.58 $ 2.47 $ 2.54 - 2.73 Grant date fair value (in thousands) $ 141 $ 575 $ 1,331 As of June 30, 2022, options in respect of all 822,000 shares remained outstanding with no stock option exercises or expirations during the quarter. The stock-based compensation expense for these grants is based on the grant date fair value, which will be recorded over the vesting period. $102 thousand and $159 thousand were recorded as stock-based compensation expense for the three and six months ended June 30, 2022, respectively. $7 thousand and $14 thousand were recorded as stock-based compensation expense for the three and six months ended June 30, 2021, respectively. Stock-based compensation expense was recorded to general and administrative expense in the unaudited interim condensed consolidated statements of operations. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The consolidated income tax expense for the three and six months ended June 30, 2022 and 2021, was determined based upon the Company’s estimated consolidated effective income tax rates calculated without discrete items for the years ending December 31, 2022 and 2021, respectively. The Company’s effective tax rates for the three months ended June 30, 2022 and 2021 were 28.9% and 10.2%, respectively. The increase in the effective tax rate for the three months ended June 30, 2022 as compared to the three months ended June 30, 2021 was primarily due to the income exclusion of PPP loan forgiveness for federal income taxes during the three months ended June 30, 2021. The Company’s effective tax rates for the six months ended June 30, 2022 and 2021 were 29.1% and 7.6%, respectively. The increase in the effective tax rate for the six months ended June 30, 2022 as compared to the six months ended June 30, 2021 was primarily due to the income exclusion of PPP loan forgiveness for federal income taxes during the six months ended June 30, 2021. The difference between the consolidated effective income tax rate and the U.S. federal statutory rate for the three and six months ended June 30, 2022 was primarily attributable to state income taxes and other permanent items. |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information The Company has identified two operating segments, Wholesale net sales and Direct to Consumer net sales, which are reportable segments for financial statement reporting purposes, based upon their different distribution channels, margins and selling strategies. Wholesale net sales include all sales through a third party where prices are given at a wholesale rate, whereas Direct to Consumer net sales include retail sales in tasting rooms, remote sites and on-site events, wine club sales, direct phone sales, Ecommerce sales, and other sales made directly to the consumer without the use of an intermediary. The two segments reflect how the Company’s operations are evaluated by senior management and the structure of its internal financial reporting. The Company evaluates performance based on the gross profit of the respective business segments. Selling expenses that can be directly attributable to the segment are allocated accordingly. However, centralized selling expenses and general and administrative expenses are not allocated between operating segments. Therefore, net income information for the respective segments is not available. Based on the nature of the Company’s business, revenue generating assets are utilized across segments. Therefore, discrete financial information related to segment assets and other balance sheet data is not available and that information continues to be aggregated. The following tables outline the net sales, cost of sales, gross profit (loss), directly attributable selling expenses and operating income (loss) for the Company’s reportable segments for the three and six months ended June 30, 2022 and 2021, and also includes a reconciliation of consolidated income (loss) from operations. Other/Non-allocable net sales and gross profit include bulk wine and grape sales, event fees, tasting fees and non-wine retail sales. Other/Non-allocable expenses include centralized corporate expenses not specific to an identified reporting segment. Sales figures are net of related excise taxes. Three Months Ended June 30, Wholesale Direct to Consumer Other/Non-Allocable Total (in thousands) 2022 2021 2022 2021 2022 2021 2022 2021 Net sales $ 9,423 $ 9,727 $ 7,494 $ 6,635 $ 1,165 $ 1,029 $ 18,082 $ 17,391 Cost of sales 6,194 5,844 2,630 2,440 905 767 9,729 9,051 Gross profit 3,229 3,883 4,864 4,195 260 262 8,353 8,340 Operating expenses: Sales and marketing 1,465 1,142 1,965 1,530 1,113 1,078 4,543 3,750 General and administrative — — — — 3,263 3,256 3,263 3,256 Total operating expenses 1,465 1,142 1,965 1,530 4,376 4,334 7,806 7,006 Net loss (gain) on disposal of property and equipment — — — — 107 (31) 107 (31) Income (loss) from operations $ 1,764 $ 2,741 $ 2,899 $ 2,665 $ (4,223) $ (4,041) $ 440 $ 1,365 Six Months Ended June 30, Wholesale Direct to Consumer Other/Non-Allocable Total (in thousands) 2022 2021 2022 2021 2022 2021 2022 2021 Net sales $ 20,973 $ 17,917 $ 13,721 $ 12,602 $ 2,011 $ 1,453 $ 36,705 $ 31,972 Cost of sales 14,107 11,153 4,735 4,791 2,415 2,047 21,257 17,991 Gross profit (loss) 6,866 6,764 8,986 7,811 (404) (594) 15,448 13,981 Operating expenses: Sales and marketing 2,806 2,264 3,648 2,854 1,828 1,677 8,282 6,795 General and administrative — — — — 6,561 6,714 6,561 6,714 Total operating expenses 2,806 2,264 3,648 2,854 8,389 8,391 14,843 13,509 Net loss (gain) on disposal of property and equipment — — — — 127 (27) 127 (27) Income (loss) from operations $ 4,060 $ 4,500 $ 5,338 $ 4,957 $ (8,920) $ (8,958) $ 478 $ 499 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation The Company and its subsidiaries may become parties to legal proceedings that are considered to be either ordinary, routine litigation incidental to their business or not significant to the Company’s consolidated financial position or liquidity. The Company does not believe that there is any pending litigation that could have a significant adverse impact on its consolidated financial position, liquidity or results of operations. 2017 and 2020 Wildfires In October 2017, significant wildfires impacted the Company's operations and damaged its inventory. The Company has settled on several insurance claims since the time of the wildfires but anticipates additional settlements for insurance proceeds for amounts that cannot be reasonably estimated at this time. In August and September 2020, a series of major wildfires broke out in regions across the Western United States, including Napa and Sonoma counties in California, as well as Umatilla and Yamhill Counties in Oregon. The wildfires and ensuing smoke caused damage to grapes at the vineyard properties and traffic reduction at the Company’s tasting rooms. Some of the inventory losses and smoke damage to grapes were partially covered under existing crop insurance policies. During 2021, the Company settled and recognized a total of $0.8 million from crop insurance proceeds related to loss claims for the 2020 wildfires and recorded the proceeds as an offset against inventory losses, which are reductions to cost of sales. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table reconciles the weighted-average common shares outstanding used in the calculations of the Company's basic and diluted earnings per share: Three Months Ended Six Months Ended ($ and shares in thousands, except per share amounts) 2022 2021 2022 2021 Net income $ 318 $ 4,718 $ 161 $ 3,871 Common shares: Weighted-average number of common shares outstanding - basic 22,450 22,943 22,486 23,092 Dilutive effect of stock options outstanding — 4 1 — Weighted-average number of common shares outstanding - diluted 22,450 22,947 22,487 23,092 Earnings per share: Basic $ 0.01 $ 0.21 $ 0.01 $ 0.17 Diluted $ 0.01 $ 0.21 $ 0.01 $ 0.17 Antidilutive stock options (1) 822 — 540 89 __________________________________________ (1) Amounts represent stock options that are excluded from the diluted earnings per share calculations because the options are antidilutive. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsNone. |
Background and Basis of Prese_2
Background and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Financial Statement Preparation | Financial Statement PreparationThe accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. The unaudited interim condensed consolidated financial statements, which reflect all adjustments (consisting of normal recurring items or items discussed herein) that management believes necessary to fairly state results of interim operations, should be read in conjunction with the Notes to Consolidated Financial Statements (including the Significant Accounting Policies and Recent Accounting Pronouncements) included in the Company’s audited consolidated financial statements for the year ended December 31, 2021, as filed with the SEC on Form 10-K (the “2021 Report”). Results of operations for interim periods are not necessarily indicative of annual results of operations. The unaudited condensed consolidated balance sheet at December 31, 2021 was extracted from the audited annual consolidated financial statements and does not include all disclosures required by GAAP for annual financial statements. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Subsequent to the filing of the 2021 Report, the Company evaluated Accounting Standards Update (“ASU”) 2022-01 through 2022-03 issued by the Financial Accounting Standards Board (“FASB”) and concluded none of the accounting pronouncements would have a material effect or are applicable to Crimson’s unaudited interim condensed consolidated financial statements. |
Notes Receivable (Tables)
Notes Receivable (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Summary of Accounts, Notes, Loans and Financing Receivable | Notes receivable consisted of the following as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Notes receivable, current (1) $ 36 $ 36 Notes receivable, non-current (2) 396 405 Total $ 432 $ 441 __________________________________________ (1) Reported within other current assets of the unaudited interim condensed consolidated balance sheets (2) Reported within other non-current assets of the unaudited interim condensed consolidated balance sheets |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Summary of Inventory | A summary of inventory at June 30, 2022 and December 31, 2021 is as follows (in thousands): June 30, 2022 December 31, 2021 Finished goods $ 19,518 $ 26,362 In-process goods 25,886 25,450 Packaging and bottling supplies 1,332 736 Total inventory $ 46,736 $ 52,548 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary Of Property And Equipment | A summary of property and equipment at June 30, 2022 and December 31, 2021, and depreciation and amortization for the three and six months ended June 30, 2022 and 2021, is as follows (in thousands): Depreciable Lives (in years) June 30, 2022 December 31, 2021 Land and improvements N/A $ 44,912 $ 44,912 Buildings and improvements 20-40 60,548 59,529 Winery and vineyard equipment 3-25 33,921 33,744 Vineyards and improvements 7-25 34,411 34,331 Caves 20-40 5,639 5,639 Vineyards under development N/A 1,554 1,224 Construction in progress N/A 2,608 4,229 Total 183,593 183,608 Accumulated depreciation and amortization (73,196) (72,169) Total property and equipment, net $ 110,397 $ 111,439 Three Months Ended June 30, Six Months Ended June 30, Depreciation and amortization: 2022 2021 2022 2021 Capitalized into inventory $ 1,110 $ 1,213 $ 2,234 $ 2,435 Expensed to general and administrative 377 403 742 805 Total depreciation and amortization $ 1,487 $ 1,616 $ 2,976 $ 3,240 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule Of Available For Sale Securities | The par value, amortized cost, gross unrealized gains and losses, and estimated fair value of investments classified as available for sale as of June 30, 2022 and December 31, 2021 are as follows (in thousands): June 30, 2022 Par Value Amortized Cost Gross Gross Level 1 Level 2 Total Fair Value Certificates of Deposit $ 9,000 $ 9,000 $ 1 $ (40) $ — $ 8,961 $ 8,961 December 31, 2021 Par Value Amortized Cost Gross Gross Level 1 Level 2 Total Fair Value Certificates of Deposit $ 12,500 $ 12,500 $ — $ (7) $ — $ 12,493 $ 12,493 |
Intangible and Other Non-Curr_2
Intangible and Other Non-Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary Of Intangible Assets | A summary of intangible and other non-current assets at June 30, 2022 and December 31, 2021, and amortization expense for the three and six months ended June 30, 2022 and 2021, is as follows (in thousands): June 30, 2022 December 31, 2021 Amortizable lives Gross carrying amount Accumulated amortization Net book value Gross carrying amount Accumulated amortization Net book value Brand 15-17 $ 18,000 $ (11,624) $ 6,376 $ 18,000 $ (11,092) $ 6,908 Distributor relationships 10-14 2,700 (2,122) 578 2,700 (2,025) 675 Legacy permits 14 250 (198) 52 250 (189) 61 Trademark 20 200 (138) 62 200 (133) 67 Total $ 21,150 $ (14,082) $ 7,068 $ 21,150 $ (13,439) $ 7,711 Other non-current assets 592 611 Total intangible and other non-current assets, net $ 7,660 $ 8,322 Three Months Ended June 30, Six Months Ended Amortization expense 2022 2021 2022 2021 Total amortization expense $ 322 $ 322 $ 643 $ 643 |
Summary Of Amortization Expense for Intangible Assets | The estimated aggregate future amortization of intangible assets as of June 30, 2022 is identified below (in thousands): Amortization Remainder of 2022 $ 643 2023 1,286 2024 1,286 2025 1,168 2026 1,073 Thereafter 1,612 Total $ 7,068 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Payables and Accruals [Abstract] | |
Summary of Other Accrued Expenses | Accounts payable and accrued liabilities consisted of the following as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Accounts payable and accrued grape liabilities $ 2,311 $ 5,689 Accrued compensation related expenses 2,136 2,881 Sales and marketing 633 1,434 Acquisition of property and equipment 407 649 Accrued interest 258 268 Depletion allowance 1,613 1,300 Production and farming 602 445 Other accrued expenses 796 505 Total accounts payable and accrued liabilities $ 8,756 $ 13,171 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Debt | A summary of debt at June 30, 2022 and December 31, 2021 is as follows (in thousands): June 30, 2022 December 31, 2021 Revolving Credit Facility (1) $ — $ — Senior Secured Term Loan Agreement due 2040, with an interest rate of 5.24% (2) 11,840 12,160 Senior Secured Term Loan Agreement due 2037, with an interest rate of 5.39% (3) 7,625 7,875 Unamortized loan fees (102) (108) Total debt 19,363 19,927 Less current portion of long-term debt 1,128 1,128 Long-term debt due after one year, net $ 18,235 $ 18,799 ______________________________________ (1) The Revolving Credit Facility is comprised of a revolving loan facility (the “Revolving Loan”) and a term revolving loan facility (the “Term Revolving Loan”), which together are secured by substantially all of Crimson’s assets. The Revolving Loan is for up to $10.0 million of availability in the aggregate for a five year term, and the Term Revolving Loan is for up to $50.0 million in the aggregate for a fifteen year (2) Pine Ridge Winery, LLC, a wholly-owned subsidiary of Crimson, is party to a senior secured term loan agreement due on October 1, 2040 (the “2015 Term Loan”). Principal and interest are payable in quarterly installments. (3) Double Canyon Vineyards, LLC, a wholly-owned subsidiary of Crimson, is party to a senior secured term loan agreement due on July 1, 2037 (the “2017 Term Loan”). Principal and interest are payable in quarterly installments. |
Summary of Maturities of Long-term Debt | A summary of debt maturities as of June 30, 2022 is as follows (in thousands): Principal due the remainder of 2022 $ 570 Principal due in 2023 1,140 Principal due in 2024 1,140 Principal due in 2025 1,140 Principal due in 2026 1,140 Principal due thereafter 14,335 Total $ 19,465 |
Stockholders' Equity and Stoc_2
Stockholders' Equity and Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Summary of Fair Value Assumptions of Share-based Compensation | The Company determined the grant date fair value of the awards using the Black-Scholes-Merton option-pricing valuation model, with the following assumptions and values: December 2019 Grants July 2021 Grants March 2022 Grants Shares issued 89,000 233,000 500,000 Expected term 5.00 years 4.75 years 6.90 - 8.40 years Expected dividend yield — % — % — % Risk-free interest rate 1.60 % 0.76 % 2.01 % Expected stock price volatility 22 % 31 % 27 - 28% Stock price $ 6.90 $ 8.88 $ 7.50 Weighted-average grant date fair value $ 1.58 $ 2.47 $ 2.54 - 2.73 Grant date fair value (in thousands) $ 141 $ 575 $ 1,331 |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting | The following tables outline the net sales, cost of sales, gross profit (loss), directly attributable selling expenses and operating income (loss) for the Company’s reportable segments for the three and six months ended June 30, 2022 and 2021, and also includes a reconciliation of consolidated income (loss) from operations. Other/Non-allocable net sales and gross profit include bulk wine and grape sales, event fees, tasting fees and non-wine retail sales. Other/Non-allocable expenses include centralized corporate expenses not specific to an identified reporting segment. Sales figures are net of related excise taxes. Three Months Ended June 30, Wholesale Direct to Consumer Other/Non-Allocable Total (in thousands) 2022 2021 2022 2021 2022 2021 2022 2021 Net sales $ 9,423 $ 9,727 $ 7,494 $ 6,635 $ 1,165 $ 1,029 $ 18,082 $ 17,391 Cost of sales 6,194 5,844 2,630 2,440 905 767 9,729 9,051 Gross profit 3,229 3,883 4,864 4,195 260 262 8,353 8,340 Operating expenses: Sales and marketing 1,465 1,142 1,965 1,530 1,113 1,078 4,543 3,750 General and administrative — — — — 3,263 3,256 3,263 3,256 Total operating expenses 1,465 1,142 1,965 1,530 4,376 4,334 7,806 7,006 Net loss (gain) on disposal of property and equipment — — — — 107 (31) 107 (31) Income (loss) from operations $ 1,764 $ 2,741 $ 2,899 $ 2,665 $ (4,223) $ (4,041) $ 440 $ 1,365 Six Months Ended June 30, Wholesale Direct to Consumer Other/Non-Allocable Total (in thousands) 2022 2021 2022 2021 2022 2021 2022 2021 Net sales $ 20,973 $ 17,917 $ 13,721 $ 12,602 $ 2,011 $ 1,453 $ 36,705 $ 31,972 Cost of sales 14,107 11,153 4,735 4,791 2,415 2,047 21,257 17,991 Gross profit (loss) 6,866 6,764 8,986 7,811 (404) (594) 15,448 13,981 Operating expenses: Sales and marketing 2,806 2,264 3,648 2,854 1,828 1,677 8,282 6,795 General and administrative — — — — 6,561 6,714 6,561 6,714 Total operating expenses 2,806 2,264 3,648 2,854 8,389 8,391 14,843 13,509 Net loss (gain) on disposal of property and equipment — — — — 127 (27) 127 (27) Income (loss) from operations $ 4,060 $ 4,500 $ 5,338 $ 4,957 $ (8,920) $ (8,958) $ 478 $ 499 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Loss Per Common Share | The following table reconciles the weighted-average common shares outstanding used in the calculations of the Company's basic and diluted earnings per share: Three Months Ended Six Months Ended ($ and shares in thousands, except per share amounts) 2022 2021 2022 2021 Net income $ 318 $ 4,718 $ 161 $ 3,871 Common shares: Weighted-average number of common shares outstanding - basic 22,450 22,943 22,486 23,092 Dilutive effect of stock options outstanding — 4 1 — Weighted-average number of common shares outstanding - diluted 22,450 22,947 22,487 23,092 Earnings per share: Basic $ 0.01 $ 0.21 $ 0.01 $ 0.17 Diluted $ 0.01 $ 0.21 $ 0.01 $ 0.17 Antidilutive stock options (1) 822 — 540 89 __________________________________________ (1) Amounts represent stock options that are excluded from the diluted earnings per share calculations because the options are antidilutive. |
Background and Basis of Prese_3
Background and Basis of Presentation (Details) | 6 Months Ended |
Jun. 30, 2022 USD ($) winery | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Price per bottle, low range | $ | $ 16 |
Number of wineries owned (in wineries) | winery | 7 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Outstanding contract liability | $ 625 | $ 366 | |
Revenue recognized | 300 | $ 200 | |
Allowance for doubtful accounts | $ 200 | $ 200 | |
Wholesale distributor sales | Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Payment terms | 30 days | ||
Wholesale distributor sales | Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Payment terms | 120 days | ||
Bulk wine sales | |||
Disaggregation of Revenue [Line Items] | |||
Payment terms | 30 days |
Notes Receivable (Schedule of N
Notes Receivable (Schedule of Notes Receivable) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Notes receivable, current | $ 36 | $ 36 |
Notes receivable, non-current | 396 | 405 |
Total | $ 432 | $ 441 |
Notes Receivable ( Narrative) (
Notes Receivable ( Narrative) (Details) $ in Thousands | 1 Months Ended | ||
Jun. 30, 2021 USD ($) a payment | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable | $ 432 | $ 441 | |
Real Estate Loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Area of apple orchards (in acres) | a | 36 | ||
Consideration received | $ 600 | ||
Proceeds from sale of real estate | 100 | ||
Financing receivable | $ 500 | ||
Stated interest | 5% | ||
Financing receivable, number of balloon payments | payment | 2 | ||
Equipment Loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable | $ 100 | ||
Stated interest | 5% |
Inventory (Summary of Inventory
Inventory (Summary of Inventory) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 19,518 | $ 26,362 |
In-process goods | 25,886 | 25,450 |
Packaging and bottling supplies | 1,332 | 736 |
Total inventory | $ 46,736 | $ 52,548 |
Inventory (Narrative) (Details)
Inventory (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | ||||
Loss on write-down of inventory | $ 200 | $ 100 | $ 926 | $ 711 |
Property and Equipment (Summary
Property and Equipment (Summary of Property and Equipment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 183,593 | $ 183,593 | $ 183,608 | ||
Accumulated depreciation and amortization | (73,196) | (73,196) | (72,169) | ||
Total property and equipment, net | 110,397 | 110,397 | 111,439 | ||
Capitalized into inventory | 1,110 | $ 1,213 | 2,234 | $ 2,435 | |
Expensed to general and administrative | 377 | 403 | 742 | 805 | |
Total depreciation and amortization | 1,487 | $ 1,616 | 2,976 | $ 3,240 | |
Land and improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 44,912 | 44,912 | 44,912 | ||
Buildings and improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 60,548 | $ 60,548 | 59,529 | ||
Buildings and improvements | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciable Lives | 20 years | ||||
Buildings and improvements | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciable Lives | 40 years | ||||
Winery and vineyard equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 33,921 | $ 33,921 | 33,744 | ||
Winery and vineyard equipment | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciable Lives | 3 years | ||||
Winery and vineyard equipment | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciable Lives | 25 years | ||||
Vineyards and improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 34,411 | $ 34,411 | 34,331 | ||
Vineyards and improvements | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciable Lives | 7 years | ||||
Vineyards and improvements | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciable Lives | 25 years | ||||
Caves | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 5,639 | $ 5,639 | 5,639 | ||
Caves | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciable Lives | 20 years | ||||
Caves | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciable Lives | 40 years | ||||
Vineyards under development | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 1,554 | $ 1,554 | 1,224 | ||
Construction in progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 2,608 | $ 2,608 | $ 4,229 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Investment maturity period | 2 years | |
Gross unrealized losses on available for sale securities (less than) | $ 100 | |
Fair value of outstanding debt | 16,700 | |
Carrying value of outstanding debt | 19,465 | |
2015 Term Loan | ||
Debt Instrument [Line Items] | ||
Carrying value of outstanding debt | $ 11,840 | $ 12,160 |
Interest rate (as a percent) | 6.78% | |
2017 Term Loan | ||
Debt Instrument [Line Items] | ||
Carrying value of outstanding debt | $ 7,625 | $ 7,875 |
Interest rate (as a percent) | 6.68% |
Financial Instruments (Schedule
Financial Instruments (Schedule Of Available For Sale Securities) (Details) - Certificates of Deposit - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-sale [Line Items] | ||
Par Value | $ 9,000 | $ 12,500 |
Amortized Cost | 9,000 | 12,500 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | (40) | (7) |
Total Fair Value Measurements | 8,961 | 12,493 |
Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total Fair Value Measurements | 0 | 0 |
Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total Fair Value Measurements | $ 8,961 | $ 12,493 |
Intangible and Other Non-Curr_3
Intangible and Other Non-Current Assets (Summary Of Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | $ 21,150 | $ 21,150 | $ 21,150 | ||
Accumulated amortization | (14,082) | (14,082) | (13,439) | ||
Net book value | 7,068 | 7,068 | 7,711 | ||
Other non-current assets | 592 | 592 | 611 | ||
Total intangible and other non-current assets, net | 7,660 | 7,660 | 8,322 | ||
Total amortization expense | 322 | $ 322 | 643 | $ 643 | |
Brand | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 18,000 | 18,000 | 18,000 | ||
Accumulated amortization | (11,624) | (11,624) | (11,092) | ||
Net book value | 6,376 | $ 6,376 | 6,908 | ||
Brand | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortizable lives (in years) | 15 years | ||||
Brand | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortizable lives (in years) | 17 years | ||||
Distributor relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 2,700 | $ 2,700 | 2,700 | ||
Accumulated amortization | (2,122) | (2,122) | (2,025) | ||
Net book value | 578 | $ 578 | 675 | ||
Distributor relationships | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortizable lives (in years) | 10 years | ||||
Distributor relationships | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortizable lives (in years) | 14 years | ||||
Legacy permits | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortizable lives (in years) | 14 years | ||||
Gross carrying amount | 250 | $ 250 | 250 | ||
Accumulated amortization | (198) | (198) | (189) | ||
Net book value | 52 | $ 52 | 61 | ||
Trademark | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortizable lives (in years) | 20 years | ||||
Gross carrying amount | 200 | $ 200 | 200 | ||
Accumulated amortization | (138) | (138) | (133) | ||
Net book value | $ 62 | $ 62 | $ 67 |
Intangible and Other Non-Curr_4
Intangible and Other Non-Current Assets (Amortization expense for Intangible Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2022 | $ 643 | |
2023 | 1,286 | |
2024 | 1,286 | |
2025 | 1,168 | |
2026 | 1,073 | |
Thereafter | 1,612 | |
Net book value | $ 7,068 | $ 7,711 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Accounts payable and accrued grape liabilities | $ 2,311 | $ 5,689 |
Accrued compensation related expenses | 2,136 | 2,881 |
Sales and marketing | 633 | 1,434 |
Acquisition of property and equipment | 407 | 649 |
Accrued interest | 258 | 268 |
Depletion allowance | 1,613 | 1,300 |
Production and farming | 602 | 445 |
Other accrued expenses | 796 | 505 |
Total accounts payable and accrued liabilities | $ 8,756 | $ 13,171 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Carrying value of outstanding debt | $ 19,465,000 | |
Unamortized loan fees | (102,000) | $ (108,000) |
Total debt | 19,363,000 | 19,927,000 |
Less current portion of long-term debt | 1,128,000 | 1,128,000 |
Long-term debt due after one year, net | $ 18,235,000 | 18,799,000 |
Minimum | ||
Debt Instrument [Line Items] | ||
Unused line fee (as a percent) | 0.15% | |
Maximum | ||
Debt Instrument [Line Items] | ||
Unused line fee (as a percent) | 0.25% | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facility borrowing capacity | $ 10,000,000 | |
Term of debt | 5 years | |
Term Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facility borrowing capacity | $ 50,000,000 | |
Term of debt | 15 years | |
2015 Term Loan | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 5.24% | |
Carrying value of outstanding debt | $ 11,840,000 | 12,160,000 |
2015 Term Loan | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Revolving Credit Facility | $ 0 | 0 |
2017 Term Loan | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 5.39% | |
Carrying value of outstanding debt | $ 7,625,000 | $ 7,875,000 |
Debt (Long-term Debt Maturities
Debt (Long-term Debt Maturities) (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Maturities of Long-term Debt [Abstract] | |
Principal due the remainder of 2022 | $ 570 |
Principal due in 2023 | 1,140 |
Principal due in 2024 | 1,140 |
Principal due in 2025 | 1,140 |
Principal due in 2026 | 1,140 |
Principal due thereafter | 14,335 |
Total | $ 19,465 |
Stockholders' Equity and Stoc_3
Stockholders' Equity and Stock-Based Compensation (Narrative) (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
May 24, 2021 USD ($) $ / shares shares | Mar. 31, 2022 USD ($) tranche shares | Jul. 31, 2021 increment shares | Dec. 31, 2019 shares | Jun. 30, 2022 USD ($) shares | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) | Jul. 31, 2022 shares | Feb. 28, 2013 shares | |
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Repurchased common stock (in shares) | 719,291 | |||||||||
Purchase price (in dollars per share) | $ / shares | $ 8.65 | $ 7.52 | ||||||||
Repurchase of common stock | $ | $ 6,200 | $ 1,016 | $ 6,240 | |||||||
Units issued under share-based compensation arrangement (in shares) | 500,000 | 233,000 | 89,000 | |||||||
Vesting period (in years) | 5 years | |||||||||
Expiration period (in years) | 10 years | 7 years | 7 years | |||||||
Number of vesting tranches | 4 | 4 | ||||||||
Options outstanding under share-based compensation arrangement (in shares) | 822,000 | 822,000 | ||||||||
Share-based compensation arrangement by share-based payment award, options, exercises in period (in shares) | 0 | |||||||||
Stock-based compensation | $ | $ 102 | $ 7 | $ 159 | $ 14 | ||||||
2013 Plan | Stock Option | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Share-based compensation arrangement by share-based payment award, number of shares authorized (in shares) | 1,000,000 | |||||||||
2022 Plan | Subsequent Event | Stock Option | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Share-based compensation arrangement by share-based payment award, number of shares authorized (in shares) | 678,000 | |||||||||
2022 Repurchase Program | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Repurchased common stock (in shares) | 134,722 | |||||||||
Repurchase of common stock | $ | $ 1,000 | |||||||||
Share repurchase program amount authorized (up to) | $ | $ 4,000 |
Stockholders' Equity and Stoc_4
Stockholders' Equity and Stock-Based Compensation (Grant Date Fair Value of the Awards) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Shares issued (shares) | 822 | 822 | ||
Grant date fair value | $ 102 | $ 7 | $ 159 | $ 14 |
December 2019 Grants | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Shares issued (shares) | 89 | 89 | ||
Expected term (in years) | 5 years | |||
Expected dividend yield (as a percent) | 0% | |||
Risk-free interest rate (as a percent) | 1.60% | |||
Expected Stock price volatility (as a percent) | 22% | |||
Stock price (in dollars per share) | $ 6.90 | $ 6.90 | ||
Weighted-average grant date fair value (in dollars per share) | $ 1.58 | |||
Grant date fair value | $ 141 | |||
July 2021 Grants | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Shares issued (shares) | 233 | 233 | ||
Expected term (in years) | 4 years 9 months | |||
Expected dividend yield (as a percent) | 0% | |||
Risk-free interest rate (as a percent) | 0.76% | |||
Expected Stock price volatility (as a percent) | 31% | |||
Stock price (in dollars per share) | $ 8.88 | $ 8.88 | ||
Weighted-average grant date fair value (in dollars per share) | $ 2.47 | |||
Grant date fair value | $ 575 | |||
March 2022 Grants | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Shares issued (shares) | 500 | 500 | ||
Expected dividend yield (as a percent) | 0% | |||
Risk-free interest rate (as a percent) | 2.01% | |||
Expected Stock price volatility, minimum (as a percent) | 27% | |||
Expected Stock price volatility, maximum (as a percent) | 28% | |||
Stock price (in dollars per share) | $ 7.50 | $ 7.50 | ||
Grant date fair value | $ 1,331 | |||
Minimum | March 2022 Grants | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Expected term (in years) | 6 years 10 months 24 days | |||
Weighted-average grant date fair value (in dollars per share) | $ 2.54 | |||
Maximum | March 2022 Grants | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Expected term (in years) | 8 years 4 months 24 days | |||
Weighted-average grant date fair value (in dollars per share) | $ 2.73 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 28.90% | 10.20% | 29.10% | 7.60% |
Business Segment Information (N
Business Segment Information (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2022 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Business Segment Information (S
Business Segment Information (Schedule Of Segment Reporting) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 18,082 | $ 17,391 | $ 36,705 | $ 31,972 |
Cost of sales | 9,729 | 9,051 | 21,257 | 17,991 |
Gross profit | 8,353 | 8,340 | 15,448 | 13,981 |
Operating expenses: | ||||
Sales and marketing | 4,543 | 3,750 | 8,282 | 6,795 |
General and administrative | 3,263 | 3,256 | 6,561 | 6,714 |
Total operating expenses | 7,806 | 7,006 | 14,843 | 13,509 |
Net loss (gain) on disposal of property and equipment | 107 | (31) | 127 | (27) |
Income from operations | 440 | 1,365 | 478 | 499 |
Operating Segments | Wholesale | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 9,423 | 9,727 | 20,973 | 17,917 |
Cost of sales | 6,194 | 5,844 | 14,107 | 11,153 |
Gross profit | 3,229 | 3,883 | 6,866 | 6,764 |
Operating expenses: | ||||
Sales and marketing | 1,465 | 1,142 | 2,806 | 2,264 |
General and administrative | 0 | 0 | 0 | 0 |
Total operating expenses | 1,465 | 1,142 | 2,806 | 2,264 |
Net loss (gain) on disposal of property and equipment | 0 | 0 | 0 | 0 |
Income from operations | 1,764 | 2,741 | 4,060 | 4,500 |
Operating Segments | Direct to Consumer | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 7,494 | 6,635 | 13,721 | 12,602 |
Cost of sales | 2,630 | 2,440 | 4,735 | 4,791 |
Gross profit | 4,864 | 4,195 | 8,986 | 7,811 |
Operating expenses: | ||||
Sales and marketing | 1,965 | 1,530 | 3,648 | 2,854 |
General and administrative | 0 | 0 | 0 | 0 |
Total operating expenses | 1,965 | 1,530 | 3,648 | 2,854 |
Net loss (gain) on disposal of property and equipment | 0 | 0 | 0 | 0 |
Income from operations | 2,899 | 2,665 | 5,338 | 4,957 |
Other/Non-Allocable | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,165 | 1,029 | 2,011 | 1,453 |
Cost of sales | 905 | 767 | 2,415 | 2,047 |
Gross profit | 260 | 262 | (404) | (594) |
Operating expenses: | ||||
Sales and marketing | 1,113 | 1,078 | 1,828 | 1,677 |
General and administrative | 3,263 | 3,256 | 6,561 | 6,714 |
Total operating expenses | 4,376 | 4,334 | 8,389 | 8,391 |
Net loss (gain) on disposal of property and equipment | 107 | (31) | 127 | (27) |
Income from operations | $ (4,223) | $ (4,041) | $ (8,920) | $ (8,958) |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Insurance proceeds | $ 0.8 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income | $ 318 | $ 4,718 | $ 161 | $ 3,871 |
Common shares: | ||||
Weighted-average number of common shares outstanding - basic (in shares) | 22,450 | 22,943 | 22,486 | 23,092 |
Dilutive effect of stock options outstanding (in shares) | 0 | 4 | 1 | 0 |
Weighted-average number of common shares outstanding - diluted (in shares) | 22,450 | 22,947 | 22,487 | 23,092 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.01 | $ 0.21 | $ 0.01 | $ 0.17 |
Diluted (in dollars per share) | $ 0.01 | $ 0.21 | $ 0.01 | $ 0.17 |
Stock Option | ||||
Earnings per share: | ||||
Antidilutive stock options (in shares) | 822 | 0 | 540 | 89 |