Segment Information

9 Months Ended

Sep. 30, 2022

Segment Information

Segment Information

Note 18. Segment Information

Management, including our chief executive officer, who is our chief operating decision maker, manages our business in two operating segments.

Beverage Solutions: Through this segment, we combine our product innovation and customer insights to provide value-added beverage solutions, including coffee, tea, juices, flavors, extracts and ingredients. We provide products in a variety of packaging, including branded and private label coffee in bags, fractional packs, and single serve cups, as well as extract solutions to be used in products such as cold brew and ready-to-drink offerings. Currently we serve customers in the United States, Europe and Asia, through the retail, food service and restaurant, convenience store and travel center, non-commercial account, CPG, and hospitality industries.

Sustainable Sourcing & Traceability: Through this segment, we utilize our proprietary technology and digitally traceable supply chain to directly impact and improve the lives of our farming partners, tangible economic empowerment and an emphasis on environmental accountability and farmer literacy. Revenues primarily relate to the physical delivery and settlement of forward sales contracts for green coffee.

Management evaluates the performance of each segment using Adjusted EBITDA, which is a segment performance measure we define as net income determined in accordance with GAAP, before interest expense, provision for income taxes, depreciation and amortization, equity-based compensation expense and the impact, which may be recurring in nature, of acquisition, transaction and integrations costs, including management services and consulting agreements entered into in connection with the acquisition of S&D Coffee, Inc. (“S&D”), impairment charges, changes in the fair value of warrant liabilities, non-cash mark-to-market adjustments, certain costs specifically excluded from the calculation of EBITDA under our material debt agreements, such as facility start-up costs, and other similar or infrequent items (although we may not have had such charges in the periods presented).

Selected financial data related to our segments is presented below:

	Three Months Ended September 30, 2022
			Sustainable				Total of
	Beverage		Sourcing &		Intersegment		Reportable
(Thousands)	Solutions		Traceability		Revenues		Segments
Net sales	$	173,486	$	62,809	$	(5,987)	$	230,308
Adjusted EBITDA		15,885		2,028		n/a		17,913
Less:
Interest expense								13,404
Income tax benefit								(428)
Depreciation and amortization								5,816
Acquisition, restructuring and integration expense								3,959
Change in fair value of warrants								5,215
Management and consulting fees (S&D Coffee, Inc. acquisition)								834
Equity-based compensation								705
Mark-to-market adjustments								543
Loss on disposal of property, plant and equipment								459
Other								424
Net loss							$	(13,018)
Total assets		638,160		111,928		n/a		750,088

	Three Months Ended September 30, 2021
			Sustainable				Total of
	Beverage		Sourcing &		Intersegment		Reportable
(Thousands)	Solutions		Traceability		Revenues		Segments
Net sales	$	138,838	$	47,529	$	(5,090)	$	181,277
Adjusted EBITDA		11,462		2,017		n/a		13,479
Less:
Interest expense								8,614
Income tax benefit								(796)
Depreciation and amortization								6,072
Acquisition, restructuring and integration expense								1,829
Management and consulting fees (S&D Coffee, Inc. acquisition)								1,591
Equity-based compensation								306
Mark-to-market adjustments								(4)
Gain on disposal of property, plant and equipment								(390)
Other								147
Net loss							$	(3,890)
Total assets		497,219		85,275		n/a		582,494

	Nine Months Ended September 30, 2022
			Sustainable				Total of
	Beverage		Sourcing &		Intersegment		Reportable
(Thousands)	Solutions		Traceability		Revenues		Segments
Net sales	$	492,712	$	169,041	$	(21,604)	$	640,149
Adjusted EBITDA		38,776		3,824		n/a		42,600
Less:
Interest expense, net								30,265
Income tax benefit								(3,511)
Depreciation and amortization								17,782
Acquisition, restructuring and integration expense								8,746
Change in fair value of warrants								5,215
Management and consulting fees (S&D Coffee, Inc. acquisition)								3,035
Equity-based compensation								1,184
Mark-to-market adjustments								793
Loss on disposal of property, plant and equipment								748
Other								1,885
Net loss							$	(23,542)
Total assets		638,160		111,928		n/a		750,088

	Nine Months Ended September 30, 2021
			Sustainable				Total of
	Beverage		Sourcing &		Intersegment		Reportable
(Thousands)	Solutions		Traceability		Revenues		Segments
Net sales	$	400,506	$	121,550	$	(14,304)	$	507,752
Adjusted EBITDA		29,924		3,047		n/a		32,971
Less:
Interest expense, net								24,283
Income tax benefit								(2,239)
Depreciation and amortization								18,386
Acquisition, restructuring and integration expense								3,772
Management and consulting fees (S&D Coffee, Inc. acquisition)								4,791
Equity-based compensation								918
Mark-to-market adjustments								(1,979)
Gain on disposal of property, plant and equipment								(147)
Other								1,268
Net loss							$	(16,082)
Total assets		497,219		85,275		n/a		582,494

The following table presents net sales information by geographic area. Net sales are attributed to countries based on the customer invoice location.

	Three Months Ended September 30,				Nine Months Ended September 30,
(Thousands)	2022		2021		2022		2021
United States	$	181,789	$	146,642	$	515,742	$	423,524
All other countries		48,519		34,635		124,407		84,228
Net sales	$	230,308	$	181,277	$	640,149	$	507,752