BRFH - Earnings call 4 2020 | Barfresh Food Group, Inc.

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Operator

Good afternoon, everyone, and thank you for participating in today's Full Year 2020 Corporate Update Call for Barfresh Food Group.

Joining us today is Barfresh Food Group's Founder and CEO, Riccardo Delle Coste.

Following prepared remarks, we will open the call for your questions.

The discussion today will include forward-looking statements, except for historical information herein, matters set forth on this call are forward-looking within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements about the company's commercial progress, success of its strategic relationships and projections of future financial performance.

These forward-looking statements are identified by the use of words such as grow, expand, anticipate, intend, estimate, believe, expect, plan, should, hypothetical, potential, forecast and project, continue, could, may, predict, and will and variations of such words and similar expressions are intended to identify such forward-looking statements.

the the developments historical or that or occur than activities, that anticipates other statements. may or forward-looking events the in statements statements facts of address will All are future company believes

These statements made experience, appropriate the future expected under that certain the and factors believes based other on developments company based are on assumptions are circumstances.

Should of beyond number by uncertainties, many Such risks and the of materialize statements underlying risks control are or more vary or statements. of assumptions actual subject assumptions, from one the or uncertainties prove anticipated company. to those indicated forward-looking these results which are or materially a should such of may incorrect,

of cautioned undue made. to place are are forward-looking reliance investors statements, not date only the they these Accordingly, as on which speak

this XX-K considered including reports Exchange the and factors with contents in the filings warnings, contained any Form call Commission, on and recent Form XX-Q The current be cautionary risk on therein. conjunction and with statements report should reports company's the on and X-K, Securities including Form quarterly its annual of

disclaims or expressly as new any a future of intention in publicly any to company forward-looking call, statements result the Furthermore, information, changes events, whether otherwise. update after assumptions this current

table measures. understanding comparable the In non-GAAP most is a also business business are measures, which the of order presenting update to GAAP including in in to performance, aid the in reconciled certain company's release the the company adjusted EBITDA,

issued and including items Management information the the costs derivatives. loss cash flow primary of sale reconciling factors or noncash stock The it compensation, services believes the the are that of EBITDA gain reflective is adjusted provides useful on these directly because to of for company. stock investor in

turn go sir. CEO the over Now Please Mr. Group, Barfresh of Riccardo I ahead, Delle Coste. the Food to will call

Riccardo Delle Coste

Thank afternoon, everyone. Good you.

make accomplishments, detail today, in will diverse improvements we our and and discuss and to pipeline On continue full the efficiencies. year results the call sales review our our channels operating XXXX I sales

Before made into revenue $X XXXX gross I'd our to This quarter share first have were and XXXX, discuss million results, XXXX. is already over like happy in expect improvement dive XXXX. to to we environment. over impressive we I year over I'm improvement of a last achieve an quarter in the headway first normal operating XX% when for the a the in first of XX% we that

Additionally, second the of we the XX% for have $XXX,XXX booked gross did what year. April, month of already quarter over entire in which revenue, we last for is

not so less year, posting These XXXX but and results significant our due the channel. and bulk also than our and last sales footprint in of reduction half selling over in into effect are only available are increases we for education over incredibly single-serve also COVID given doing encouraging with to a still

of channel serving levels industry recreation all Almost at channels bulk items reduced our to our significantly and this our paused has time. business And are and and temporarily operating school at still pre-COVID. compared amusement restaurant

and existing to Therefore, to new new with the are customers seeing & our over course school progress the made are a of reach XXXX we testament these results Twist and expand Go. traction the strong with offering, we our

locations resumed double the of really serving. schools than potential of more conditions, we see once We full to currently to normal in expect the we that product are we fall, get believe the and have number will school operating

repeat offset products orders offerings education initial result of within new and XXXX. year starting full revenue our Revenue was year financials. full for by the and X was for a was closure our the The our the serve single-serve that bulk temporary for to year XXXX, full million our of compared discuss COVID with in product channel. decline from of $X.X million partially XXXX to businesses $X.X Now and the

product launched of Gross in gross to company to well in the new products margin some XXXX related the as was primarily was the the decrease the as write-downs. to COVID-related X costs The margin and due compared in product expenses full XXXX prior for year mix year. XX% start-up XX% for

for Twist are margins we the profit the Gross year sales fiscal and as write-downs. products and the our single-serve expected dramatically Go onetime start-up past to and resume XXXX year costs prior of over improve COVID of bulk move of &

by During XX%, personnel to certain sales marketing expenses core lower operating from improvement total in commission administrative and expenses, significantly the reduce continued and driven and and renegotiation we agreements. year, selling reducing general of by headcount, the expenses

year $X million $X.X XXXX, year $X.X million full of full by as the loss our million for the to to improved operating For compared XXXX.

a year, For loss loss to with for $X.X EBITDA of the a year adjusted of full compared as our $X XXXX. decreased of full losses million million the

had the to XXXX and XX, year as approximately of cash million of million of We approximately and Turning approximately $X balance ended we of March the sheet. $X.X in with cash. inventory XXXX, $XXX,XXX

also increase quarter able cash amount been position by our the second have and and operating the meaningfully with to a to increased of $XXX,XXX. of during round burn in cash due funding our sales reducing first costs We restructured PPP

Now accomplishments we about growth the the and in future review so opportunities. we've to why made are XXXX excited

in to this this we always openings from market mobile With but able attractive as year, United the in seen type out to Over were channel. in XX,XXX of as the channel building assess course capacity year in education schools very operating a on limited over presence every we of feedings. the focused schools leaned we've States, the our heavily

need healthy, and XXXX. items. And Our new the for ready-to-go was an & product, Go, low-touch, launch Twist had still have product incredible administrators in fit

accounted as profitability products quarter Go our opportunity of for of as the million and the generated, post-COVID. XXXX, demonstrating Twist further Go the also rest up the both approximately come $X & revenue back first business, the the Twist for other ramp XX% for & In of online of we

advantage we the look not customers year us. were of it we up ramp product This a our were to, education when take traction And has with to and being operations to in seen year, its it. fully their forward to partners orders already resuming great marketing able first able

I we as ago, number will locations next moments serving believe school our said than double product of we the fall. more And

We are the type constrained only one able education product supply varying can budgets. channel now to point, schools' at being in one we a and of price no of meet needs by to and products longer offer range

number Easy bulk year our this one X:X was large WHIRLZ is with students that concentrates. schools XXX% past at the which need introduction feed Our enhanced juice Pour attractive for product to time, of of

stored product concentrate price WHIRLZ affordable delivered a is at bulk and our than and ambient. more in point X:X X:X juice Easy a Pour

that greatly budget or Twist in it solution. instead with bring complete districts of as beverage the smaller for schools us don't have implementation now individual schools. us and & However, school Go to work & our is need the shortens perfect the possibilities Twist expands for Go allows a to equipment, dispensing window

led students. district of The of school a in schools an the XXth U.S. including Twist & many year, announcement XXX largest expansion of District, Schools, close rollout school to Brevard over the district the County Go XX,XXX Pasco the with course Public and school to School wins the within and

& begin to expect seeing big opportunities with to strong the Twist Go sales education more come back will as traction are and in online, this lead product We schools this year. we channel

have a by milestone our and largest in Angeles largest offerings. district Los California added country as & to the huge the the of a company school menu and is December approved in fantastic we District, were announced LAUSD district school list for in of when LAUSD, Unified School to Go our Twist part also school customers. second addition We

as a channels, COVID, country conversations especially We other potential & wellness. setter respected on to heels They major trend the have can Twist extend Go the districts nationwide. the the sales are with facilitate and health other throughout focus increased our on into consumer of with and school believe

space white have our will we a and this focus education channel, that However, immediate be still within the lot product. with of

While again, online days. of we past with are military engaged continue year, to our stay our other some education bases sales still early to once although and it place U.S. shifted this to to attraction see And centers orders those focus we channels is channels. several starting with beginning we come back heavily the channel

opportunities pipeline we with and and been As QSRs a had large chains working the in here, COVID, different robust stages a prior rollout. to on of had restaurant reminder, and development

customers, expect make we engaging our and as progress those to are back We accounts with to start up. these pick national with still businesses

in As for U.S., the X.X active military roughly there serving troops. XXX are million opportunity, bases the

channel another scale. has of for could become is that runway So once at steady revenue growth stream lot a a this and

those This companies, a who past year many due for difficult foodservice. like to COVID one especially Barfresh operate in was

products, new XX%, reduce base customer operating reduced expedited challenges, or out However, expenses channel, in maintain at X cash rolled core the despite our continue and education gross burn. these successfully our above we our to and margins grew

improvement over come online. improvement We the start and as of other expect margin to revenue course and schools reopen channels more slowly back sales our continued XXXX

also additional marketing will We opportunities. further channels have selling expand reopening and our that

the XXXX early, on to and results speaking share look updated year. be is year to you the quarter up forward you shaping recap with still I a is record weeks it in first all and few Barfresh with outlook While a to for again an

your Now with questions. take let's Operator? that,

Operator

Instructions] [Operator

Our Maxim from Group. of first is Anthony Vendetti question

Anthony Vendetti

Twist and wanted I WHIRLZ. focus Riccardo, to on just & Go

Twist the product resonate you a schools. be schools? with opportunities to see the outside to seems & Go that product think I that's the of going for Do well

platforms? product. the on And across touch you expand other could see students, build as this then this do well business that as help opportunity to customers, try What maybe your bulk significantly military. just as And

Riccardo Delle Coste

Yes, sure.

kids product feedback Go it purchase of great e-mail product kind we other & love some getting the we're they're their for the Probably where looking it Anthony, the day, they tried can and or because requesting parents in So receive every on grocery. and Twist correspondence have product.

of So the I was there the earlier. And towards we additional the will one of alluding directly, that we that and is channel, absolutely was one be to that's think the points really paths future. looking to answer question that

do incredible us. really in front white we of amount an of have space that, said Having

Twist We in the the haven't even channel. iceberg education reached of the with Go tip &

back This an also for time fall be not Go, business but to because coming the just the exciting company, Twist online. incredibly of & is of rest because the of going

starting come back. So is channels but other the to see It it definitely is we coming slow, back. are

So that. we're excited very about

Anthony Vendetti

some being be this for still customers that that you of contemplated? like retail, not you're may then years that maybe something starting Or And know retail. in Is look to and a in maybe? couple mentioned I is away, Okay. that's

Riccardo Delle Coste

work No, on it. that doing we're it. on We're work way. actively doing it Put

Anthony Vendetti

that. Actively looking at

progress, Okay. how just -- and broad you're 'XX look? discussion with some QSRs, to you as schools in terms in and then vaccine And reopening if the does give a the about the that And restaurants. here a of getting just pipeline rollout had of of opportunity the to continues opportunities

Riccardo Delle Coste

sure. Yes,

So are timing engaged are to confirmed that we increase tell developments. activity are you definitely channel, of and in have reopen. things an there's we since QSR not I yet, and those been but can that actively with engagement The started the expecting

as look life to to to forward well. coming going we're So that

work We've national done various us in channels a now, that it's products, various of position the national account in channel. years the and we're lot to over account the market with put whether the particularly

I once for to fruition, it's great actually So comes think company. the that to be going

Anthony Vendetti

the any then fourth you of you, a impacted number charges margin. feel like in gross spillover the quarter sold? those lastly, goods It here were Do side. like just Okay. on financial of the here that cost there And are in in the that terms looks charges behind first quarter of

Riccardo Delle Coste

I that's going we for cleanup that some part. the mean, really little cost had because for goods, pressure of We bit COVID the it's on to of -- a really feel last particularly be us don't behind year. -- and I of most

also improvement of improvements. over that. year, because do manufacturing we've towards also some We course will margin made taking contribute the see particularly some the place That

adjusted we're the because think is only important though the not to as And of we a I really have feeling kind this going cash of we did So it, is made and on front, definitely margin improve. our the point sales, changes of XX% made that lot they're still improve to of are reduction that right? all in a face and stick, going a managed in the we nearly going EBITDA -- we to of

the for first about just at like that and company the in position looking significantly come you're We for about what -- cash of gave change of a $XXX,XXX, net of the has burn cash down. snapshot $XXX,XXX the quarter, a looks So with cash QX.

that worst is going of this to quarter And the year. -- be the

out going improved here it's be So quarter. to other significantly from in on every

obviously, is that company business of So at the our probably about contribution really saying the about important the without XX%. is and we're margin the that sales trajectory, how going really tracking cash is other excited and position what's

when it's sales. to the contribution be starts bottom with going So incredible to come an back on, the to that line

So from cash well. a perspective as

Operator

Instructions] [Operator

the session. question-and-answer reached have conference. of today's end We the This concludes

You a may disconnect you Thank great for your at participation, day. lines and time. your this have

Barfresh Food (BRFH) 14 Apr 212020 Q4 Earnings call transcript