Heritage Distilling Co. Reports Full Year 2024 Financial Results
Company achieves EBITDA exceeding $4.5 million and profitability with net income exceeding $0.7 million, or $0.05 per share, for full year 2024
Heritage reported Q4 2024 topline revenue increased 26.4% versus Q4 2023, eclipsing $3 million
Heritage reported 5.4% year over year revenue growth
GIG HARBOR, Wash., April 28, 2025 (GLOBE NEWSWIRE) -- Heritage Distilling Company, Inc. ("HDC" or "Heritage" or the "Company") (Nasdaq: CASK), a leading craft distiller of innovative premium brands, today reported its full year 2024 financial results for the twelve-month period ended December 31, 2024.
"2024 was a transformative year for Heritage. We successfully transitioned from a private company to a publicly traded company with our IPO in November, marking our debut on Nasdaq. This move strengthened our balance sheet, significantly reduced our liabilities, and put us in a position to grow significantly. I'm proud to report that we achieved positive EBITDA and net income for the first time in the Company's history and increased our revenue year-over-year," said Heritage Distilling co-founder and CEO, Justin Stiefel.
"We operate in the rapidly growing craft spirits segment of the $288 billion spirits market. In addition to our financial progress, we expanded into new markets last year including Colorado, Kentucky, and Oklahoma, launched new products, and continued our support for non-profits and charities. With a reach in 47 states, we plan to keep extending our growth through online direct-to-consumer sales and via Company-owned and co-located tasting rooms, as well as through our Tribal Beverage Network $(TBN)$.
"With a solid financial foundation from which to build, Heritage is poised for continued expansion in 2025, with preliminary first quarter 2025 results already looking promising. We have also identified more than $1 million in annualized cost reductions already being put into place in 2025 as we work to get more efficient and preserve cash while focusing our resources on profitable growth."
Full Year 2024 Financial Highlights
-- EBITDA: $4,539,962 for 2024 compared to $(32,834,439) for 2023
-- Net income: $710,458 - This is the first time the Company has achieved
profitability
-- Net income per share: $0.05 per share
-- Revenue: Best topline revenue since COVID-19 pandemic, up 5.4% year over
year, increasing $431,264 to $8,402,488 for 2024 compared to $7,971,224
in 2023.
-- Gross profit: $2,125,847
-- Total liabilities: Reduced by $42,482,429 year over year
-- Adjusted gross margin excluding unabsorbed overhead: 55.6% for 2024
compared to 54.8% for 2023
-- Cash based operating expenses reduced by $1.1 million in 2024 vs 2023
-- Q4 2024 gross revenue of $3,092,581 versus $2,445,840 for Q4 2023, an
increase of 26.4%
Company Achievements Announced for 2024 and Q1 2025
-- Added three new board members with substantial public company leadership
credentials:
-- Troy Alstead -- 24-year veteran of Starbucks as CFO and COO;
currently director for Harley-Davidson, Levi-Strauss, Array
Technologies, OYO Global and RASA Indian Grill.
-- Andrew Varga -- 23-year veteran of Brown-Forman as CMO and CMO of
Papa John's International
-- Matt Swann -- 10-year VP at Amazon, CTO at Booking.com, CIO for
Citibank and currently a director at Payfare Inc. and Thredd
Payments.
-- Expanded wholesale distribution into Kentucky, Oklahoma and Colorado
-- Opened new Tribal Beverage Network "HDC" branded tasting room at the
Angel of the Winds Casino and broke ground on two more new locations with
Tribes in Oregon and Arizona
-- Saw its Cocoa Bomb chocolate whiskey win "World's Best Flavored Whiskey"
from Whiskey Magazine
-- Launched several new labels under its Salute Series brand, generating
more than $2.4 million in retail sales since its launch, with more than
87% of it being sold through its high margin Direct to Consumer (DtC)
channel, while raising more than $200,000 for military and first
responder charities
-- Q1 2025 sales of the Salute Series surpassing Q4 2024 sales via DtC
channel
-- Additional annualized expense reductions greater than $1 million being
implemented for 2025
Full Year 2024 Financial Results
The Company reported net sales of approximately $8,402,488 and $7,971,224 for the years ended December 31, 2024, and 2023, respectively, an increase of approximately $431,264, or 5.4%, period over period. The increase in net sales resulted primarily from an increase in product sales of $1,478,451, or 28.8%, to $6,614,933 for the year ended December 31, 2024, compared to $5,136,482 for the year ended December 31, 2023, due mainly to the launch of the Special Operations Services product line in November 2023.
The Company reported a positive EBITDA of $4,539,962 for 2024 compared to an EBITDA of $(32,834,439) for 2023. The Company reported net income of approximately $710,458 or $0.05 per share for the year ended December 31, 2024, compared to a net loss of $(36,798,419), or $(96.45) per share for the year ended December 31, 2023. $18,185,869 of 2024 net income and $(23,005,013) of 2023 net loss stemmed from the (increase)/decrease in fair value of certain convertible notes, warrants and contingencies, and gain on investment. The Company expects to incur operating losses and higher operating expenses for the foreseeable future as it continues to invest in inventory, digital marketing to support its online DtC sales of its high margin Salute Series line of super premium whiskeys, and the overall growth of the business.
2024 operating expenses on a cash basis (excluding expenses related to non-cash share-based RSU grant awards) were reduced by $1,065,803 compared to cash expenses for 2023 as the Company worked towards streamlining operations, exiting certain low margin contracts and third-party production efforts, instead focusing on higher margin products and services. In particular, cash-based sales and marketing expenses were reduced by $629,271 as the Company put more focus on its online DtC model, featuring its high margin Salute Series line of super premium whiskeys honoring active duty and retired military and first responders and their families. Cash based general and administrative expenses were reduced by $437,048 as the Company completed its initial public offering in November 2024.
The Company noted reductions in liabilities of nearly $42.5 million year over year as a result of the closing of its IPO and the reclassification of the fair values of convertible notes and related warrant liabilities to stockholders' equity. The overall reduction in liabilities also included a paydown of $8,465,877 in long term and short-term debt and other obligations through December 31, 2024.
The Company noted it ended 2024 with strong sales of $3.1 million for the 4(th) quarter, improving sales by $0.6 million over 4(th) quarter 2023, an increase of 26.4%.
The Company announced in February 2025 that it formalized a $15,000,000 equity line of credit, giving it access to more capital to help sustain and accelerate its growth. Management has identified more than $1,000,000 in annualized expense reductions slated for elimination in 2025 on top of the more than $1.0 million in expense reductions already realized in 2024 as the Company works to get more efficient, preserve cash and focus on products and activities leading to sustained profitability.
Financial Results
Additional information with respect to the Company's business, operations and financial condition for the year ended December 31, 2024 is contained in the Company's Annual Report on Form 10-K, which has been filed with the U.S. Securities and Exchange Commission (the "SEC") at www.sec.gov.
Use of Non-GAAP Measures
Heritage Distilling's management evaluates and makes operating decisions using various financial metrics. In addition to the Company's GAAP results, management also considers the non-GAAP measures of EBITDA, Adjusted EBITDA and Adjusted Gross Margin excluding unabsorbed overhead as supplements to GAAP results. Management believes these non-GAAP measures provide useful information about the Company's operating results and assists investors in comparing the Company's performance across reporting periods on a consistent basis by excluding items that it does not believe are indicative of its core operating performance.
The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization. The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, expenses related to equity-based compensation and other one-time items. The Company defines Adjusted Gross Margin excluding unabsorbed overhead as GAAP gross profit adjusted for (excluding) unabsorbed overhead. The final tables below provide a reconciliation of these non-GAAP financial measures with the most directly comparable GAAP financial measure.
About Heritage Distilling Company, Inc.
Heritage is among the premier independent craft distilleries in the United States offering a variety of whiskeys, vodkas, gins, rums and ready-to-drink canned cocktails. Heritage has been North America's most awarded craft distillery by the American Distilling Institute for ten consecutive years out of the more than 2,600 craft producers. Beyond this remarkable achievement, Heritage has also garnered numerous Best of Class, Double Gold, and Gold medals at esteemed national and international spirits competitions. As one of the largest craft spirits producers on the West Coast by revenue, the company is expanding its presence nationwide through a diverse range of sales channels, including wholesale, on-premises venues, e-commerce and the innovative Tribal Beverage Network $(TBN.AU)$. The TBN initiative, a groundbreaking collaboration with Native American tribes, focuses on developing Heritage-branded distilleries, unique tribal brands and tasting rooms tailored to tribal communities. By serving patrons of tribal casinos and entertainment venues, the TBN creates meaningful economic and social benefits for participating tribes, while providing an additional avenue for tribes to exercise and strengthen their sovereignty. This unique partnership reflects Heritage's commitment to innovation, community engagement and sustainable growth.
Forward-Looking Statements
This press release contains forward-looking statements, including statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as "aims," "anticipates," "believes," "could," "estimates," "expects," "forecasts," "goal," "intends," "may," "plans," "possible," "potential," "seeks," "will," and variations of these words or similar expressions that are intended to identify forward-looking statements. Any such statements in this press release that are not statements of historical fact may be deemed to be forward-looking statements. These forward-looking statements include, without limitation, statements regarding current or anticipated results, anticipated growth, or benefits anticipated from the Company's plans or results.
Any forward-looking statements in this press release are based on Heritage's current expectations, estimates and projections only as of the date of this release and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the risks of slowing growth for its online eCommerce sales, interruptions in that market segment, or the availability and pricing of bulk bourbon for its products. These and other risks concerning Heritage's programs and operations are described in additional detail in its registration statement on Form S-1, and its quarterly 10-Q and annual 10-K filings, which are on file with the SEC. Heritage explicitly disclaims any obligation to update any forward-looking statements except to the extent required by law.
Investor Contact
(800) 595-3550
ir@heritagedistilling.com
Financial Summary Tables
The following financial information should be read in conjunction with the audited financial statements and accompanying notes filed by the Company with the Securities and Exchange Commission on Form 10-K for the period ended December 31, 2024, which can be viewed at www.sec.gov and in the investor relations section of the Company's website at ir.heritagedistilling.com.
Heritage Distilling Holding Company, Inc.
Consolidated Balance Sheets
As of December 31,
------------------------------
2024 2023
----------- -----------
ASSETS
Current Assets
Cash $ 453,162 $ 76,878
Accounts Receivable 638,890 721,932
Inventory 2,471,567 2,756,350
Other Current Assets 355,928 1,717,650
----------- -----------
Total Current Assets 3,919,547 5,272,810
----------- -----------
Long Term Assets
Property and Equipment, net of
Accumulated Depreciation 5,449,412 6,428,112
Operating Lease Right-of-Use Assets,
net 3,303,158 3,658,493
Investment in Flavored Bourbon LLC 14,285,222 10,864,000
Intangible Assets (Note 10) 421,151 0
Goodwill (Note 10) 589,870 0
Other Long Term Assets 31,666 44,817
----------- -----------
Total Long Term Assets 24,080,479 20,995,422
----------- -----------
Total Assets $ 28,000,026 $ 26,268,232
=========== ===========
LIABILITIES & STOCKHOLDERS' EQUITY /
(DEFICIT)
Current Liabilities
Accounts Payable $ 4,979,353 $ 5,228,786
Accrued Payroll 950,974 1,321,298
Accrued Tax Liability 1,535,628 1,468,994
Other Current Liabilities 1,253,052 1,827,013
Operating Lease Liabilities, Current 1,131,545 1,294,706
Notes Payable, Current 3,758,595 14,270,956
Convertible Notes Payable (2022 and
2023 Convertible Notes) (including
related party convertible notes of
$0 and $17,220,203 as of December
31, 2024 and 2023, respectively)
(See Notes 5 and 15) 0 36,283,891
Accrued Interest 202,367 1,152,998
----------- -----------
Total Current Liabilities 13,811,514 62,848,642
----------- -----------
Long Term Liabilities
Operating Lease Liabilities, net of
Current Portion 2,810,015 3,081,924
Notes Payable, net of Current
Portion 9,482,339 0
Convertible Notes Payable (2022 and
2023 Convertible Notes) (including
a related party convertible note of
$0 and $3,476,057 as of December
31, 2024 and 2023, respectively) 0 0
Convertible Notes Payable (Whiskey
Notes) (including a related party
convertible note of $390,607 and $0
as of December 31, 2024 and 2023,
respectively) 0 1,452,562
Warrant Liabilities (2022 and 2023
Convertible Notes) (including a
related party warrant liability of
$0 and $340,918 as of December 31,
2024 and 2023, respectively) 0 794,868
Warrant Liabilities (Whiskey Notes)
(including a related party warrant
liability of $406,774 and $0 as of
December 31, 2024 and 2023,
respectively) 0 1,512,692
Accrued Interest, net of Current
Portion 977,316 0
Other Long Term Liabilities 127,075 0
----------- -----------
Total Long-Term Liabilities 13,396,745 6,842,046
----------- -----------
Total Liabilities 27,208,259 69,690,688
----------- -----------
Commitments and Contingencies (Note
13)
Stockholders' Equity / (Deficit)
Preferred Stock, par value $0.0001
per share; 5,000,000 and 0 shares
authorized; 500,000 and 0 shares
designated Series A as of December
31, 2024 and 2023, respectively;
494,840 and 0 shares issued and
outstanding as of December 31, 2024
and 2023, respectively 49 0
Common Stock, par value $0.0001 per
share; 70,000,000 and 10,000,000
shares authorized as of December 31,
2024 and 2023 respectively;
5,273,611 and 381,484 shares issued
and outstanding as of December 31,
2024 and 2023, respectively 556 67
Additional Paid-In-Capital 74,925,180 31,421,953
Accumulated Deficit (74,134,018) (74,844,476)
----------- -----------
Total Stockholders' Equity /
(Deficit) 791,767 (43,422,456)
----------- -----------
Total Liabilities & Stockholders'
Equity / (Deficit) $ 28,000,026 $ 26,268,232
=========== ===========
Heritage Distilling Holding Company, Inc.
Consolidated Statement of Operations
For the Years Ended
December 31,
------------------------------
2024 2023
----------- -----------
NET SALES
Products $ 6,614,933 $ 5,136,482
Services 1,787,555 2,834,742
----------- -----------
Total Net Sales 8,402,488 7,971,224
COST OF SALES
Products 6,173,189 4,963,176
Services 103,452 857,007
----------- -----------
Total Cost of Sales 6,276,641 5,820,183
----------- -----------
Gross Profit 2,125,847 2,151,041
----------- -----------
OPERATING EXPENSES
Sales and Marketing 6,038,636 5,938,315
General and Administrative 11,006,021 7,477,285
----------- -----------
Total Operating Expenses 17,044,657 13,415,600
----------- -----------
Operating Loss (14,918,810) (11,264,559)
----------- -----------
OTHER INCOME / (EXPENSE)
Interest Expense (2,535,701) (2,526,740)
Gain on Investment 3,421,222 0
Change in Fair Value of Convertible
Notes 14,028,067 (22,764,854)
Change in Fair Value of Warrant
Liabilities 736,580 (240,159)
Change in Fair Value of Contingency
Liability 0 0
Other Income / (Expense) (11,750) 4,893
----------- -----------
Total Other Income / (Expense) 15,638,418 (25,526,860)
----------- -----------
Income / (Loss) Before Income
Taxes 719,608 (36,791,419)
Income Taxes (9,150) (7,000)
----------- -----------
Net Income / (Loss) $ 710,458 $(36,798,419)
=========== ===========
Net Income / (Loss) Per Share, Basic $ 0.05 $ (96.45)
=========== ===========
Weighted Average Common Shares
Outstanding, Basic 1,281,339 381,543
=========== ===========
Net Income / (Loss) Per Share, Diluted
(See Note 16) $ (1.97) $ (96.45)
=========== ===========
Weighted Average Common Shares
Outstanding, Diluted 7,077,759 381,543
=========== ===========
Heritage Distilling Holding Company, Inc.
Gross Profit Analysis excluding unabsorbed overhead
Years Ended
December 31,
(rounded to $000's)
------------------------------
2024 2023
--------- ---------
GAAP Total Net Sales $8,403,000 $7,972,000
--------- ---------
GAAP Gross Profit 2,126,000 2,151,000
--------- ---------
GAAP Gross Profit
Additions/(Deductions):
Unabsorbed Overhead 2,550,000 2,215,000
--------- ---------
Adjusted Gross Profit excluding
unabsorbed overhead $4,676,000 $4,366,000
========= =========
GAAP Gross Margin 25.3% 27.0%
Adjusted Gross Margin excluding
unabsorbed overhead 55.6% 54.8%
Heritage Distilling Holding Company, Inc.
EBITDA Analysis
Years Ended
December 31,
(rounded to $000's)
------------------------------
2024 2023
----------- -----------
Net Income (Loss) $ 710,000 $(36,798,000)
=========== ===========
Add (Deduct):
Income Tax 9,000 7,000
Interest Expense 2,536,000 2,527,000
Depreciation and Amortization 1,285,000 1,430,000
----------- -----------
EBITDA $ 4,540,000 $(32,834,000)
----------- -----------
Change in fair value of convertible
notes (14,028,000) 22,765,000
Change in fair value of warrant
liabilities (737,000) 240,000
Investment (Gain) Loss (3,421,000) 0
Share-Based Compensation 4,892,000 19,000
----------- -----------
Adjusted EBITDA $ (8,754,000) $ (9,810,000)
----------- -----------
Heritage Distilling Holding Company, Inc.
Non-Cash Share-Based Compensation
Years Ended
December 31,
(rounded to $000's)
------------------------
2024 2023 Change
---------- ------- ----------
Production / Cost of Sales $ 178,000 $ - $ 178,000
Sales and Marketing 730,000 - 730,000
General and Administrative 2,414,000 6,000 2,408,000
---------- ------- ---------
Subtotal Employee
Compensation 3,322,000 6,000 3,316,000
---------- ------- ---------
Professional Fees 1,570,000 13,000 1,557,000
---------- ------- ---------
Total Non-Cash Share-Based
Compensation $ 4,892,000 $ 19,000 $4,873,000
========== ======= =========
(END) Dow Jones Newswires
April 28, 2025 08:15 ET (12:15 GMT)
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