Segment Information

12 Months Ended

Dec. 31, 2024

Segment Information

Segment Information

Note 20. Segment Information

Our two operating segments, Beverage Solutions and Sustainable Sourcing & Traceability, are evaluated using Segment Adjusted EBITDA, which is a segment performance measure. We define Segment Adjusted EBITDA as net (loss) 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 transaction, restructuring and integrations costs, including management services and consulting agreements entered into in connection with the acquisition of S&D Coffee, Inc., impairment charges, changes in the fair value of warrant liabilities, non-cash mark-to-market adjustments, certain non-capitalizable costs necessary to place the Conway extract and ready-to-drink facility into commercial production, certain recurring operating costs related to the scale-up of operations of the Conway extract and ready-to-drink facility, the write off of unamortized deferred financing costs, costs incurred as a result of the early repayment of debt, gains or losses on dispositions, and other similar or infrequent items (although we may not have had such charges in the periods presented).

The Company’s Chief Executive Officer, it’s chief operating decision maker (“CODM”), reviews Segment Adjusted EBITDA for the purpose of making operating decisions, assessing financial performance, and deciding how to allocate resources. Segment Adjusted EBITDA is used by the CODM to review operating trends and to monitor budget-to-actual variances in order to make key operating decisions.

Selected financial data, including a reconciliation of total reportable segments’ Segment Adjusted EBITDA to loss before income taxes and equity in earnings from unconsolidated entities, is presented below for the periods indicated:

	Year Ended December 31, 2024
			Sustainable
	Beverage		Sourcing &
(Thousands)	Solutions		Traceability		Total
Net sales(1)	$	659,383	$	191,343	$	850,726
Segment Adjusted EBITDA		53,639		6,366		60,005
Less:
Interest expense						33,856
Depreciation and amortization						34,745
Transaction, restructuring and integration expense						13,797
Change in fair value of warrant liabilities						(7,015)
Equity-based compensation						11,608
Impairment charges						5,686
Conway extract and ready-to-drink facility pre-production costs						35,544
Conway extract and ready-to-drink facility scale up operating costs						12,825
Mark-to-market adjustments						(4,622)
(Gain) loss on disposal of property, plant and equipment						(1,722)
Other						1,681
Loss before income taxes and equity in earnings from unconsolidated entities					$	(76,378)
Capital expenditures	$	159,391	$	234	$	159,625
Total assets		1,004,126		97,654		1,101,780

(1) Excludes $11.1 million of intersegment revenues that represent sales of green coffee from our SS&T segment to our Beverage Solutions segment.

	Year Ended December 31, 2023
			Sustainable
	Beverage		Sourcing &
(Thousands)	Solutions		Traceability		Total
Net sales(1)	$	722,865	$	141,849	$	864,714
Segment Adjusted EBITDA		41,624		3,457		45,081
Less:
Interest expense						29,157
Depreciation and amortization						26,584
Transaction, restructuring and integration expense						14,557
Change in fair value of warrant liabilities						(10,207)
Management and consulting fees (S&D acquisition)						556
Equity-based compensation						8,708
Conway extract and ready-to-drink facility pre-production costs						11,698
Mark-to-market adjustments						(104)
(Gain) loss on disposal of property, plant and equipment						1,153
Other						3,804
Loss before income taxes and equity in earnings from unconsolidated entities					$	(40,825)
Capital expenditures	$	164,474	$	137	$	164,611
Total assets		891,170		80,344		971,514

(1) Excludes $5.1 million of intersegment revenues that represent sales of green coffee from our SS&T segment to our Beverage Solutions segment.

	Year Ended December 31, 2022
			Sustainable
	Beverage		Sourcing &
(Thousands)	Solutions		Traceability		Total
Net sales(1)	$	685,303	$	182,569	$	867,872
Segment Adjusted EBITDA		53,951		6,102		60,053
Less:
Interest expense						35,497
Depreciation and amortization						24,210
Transaction, restructuring and integration expense						13,169
Change in fair value of warrant liabilities						29,675
Management and consulting fees (S&D acquisition)						3,868
Equity-based compensation						2,631
Mark-to-market adjustments						3,502
(Gain) loss on disposal of property, plant and equipment						935
Other						1,916
Loss before income taxes and equity in earnings from unconsolidated entities					$	(55,350)
Capital expenditures	$	63,158	$	103	$	63,261
Total assets		658,814		87,399		746,213

(1) Excludes $25.0 million of intersegment revenues that represent sales of green coffee from our SS&T segment to our Beverage Solutions segment.

Approximately 100% of our long-lived assets were located in the United States as of December 31, 2024.

Significant segment expense for our reportable segments is presented below for the periods indicated:

		Year ended December 31, 2024
			Sustainable
	Beverage		Sourcing &
(Thousands)	Solutions		Traceability
Net Sales	$	659,383	$	191,343
Less:
Cost of sales		502,194		174,274
Employee related(1)		45,227		7,363
Information technology		5,692		n/a
Advertising & marketing		3,949		n/a
Professional fees		10,698		n/a
Corporate insurance		7,197		n/a
Freight		14,492		n/a
Other segment expense(2)		16,295		3,340
Segment Adjusted EBITDA	$	53,639	$	6,366

		Year ended December 31, 2023
			Sustainable
	Beverage		Sourcing &
(Thousands)	Solutions		Traceability
Net Sales	$	722,865	$	141,849
Less:
Cost of sales		582,528		127,994
Employee related(1)		36,296		6,285
Information technology		4,351		n/a
Advertising & marketing		5,562		n/a
Professional fees		8,413		n/a
Corporate insurance		5,020		n/a
Freight		17,846		n/a
Other segment expense(2)		21,225		4,113
Segment Adjusted EBITDA	$	41,624	$	3,457

		Year ended December 31, 2022
			Sustainable
	Beverage		Sourcing &
(Thousands)	Solutions		Traceability
Net Sales	$	685,303	$	182,569
Less:
Cost of sales		533,331		166,994
Employee related(1)		36,927		6,215
Information technology		3,065		n/a
Advertising & marketing		4,957		n/a
Professional fees		8,015		n/a
Corporate insurance		4,244		n/a
Freight		21,432		n/a
Other segment expense(2)		19,381		3,258
Segment Adjusted EBITDA	$	53,951	$	6,102

1 - Employee related costs are costs reported within selling, general and administrative expense in our Consolidated Statements of Operations, and include employee salaries, related taxes and benefits, short-term cash incentive compensation and travel and entertainment expenses.

2 – Other segment expense includes equipment and real estate rent, equipment parts, supplies and service expenses and other overhead expenses.