0000950170-23-020585.txt : 20230510 0000950170-23-020585.hdr.sgml : 20230510 20230510162904 ACCESSION NUMBER: 0000950170-23-020585 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 104 CONFORMED PERIOD OF REPORT: 20230331 FILED AS OF DATE: 20230510 DATE AS OF CHANGE: 20230510 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Vintage Wine Estates, Inc. CENTRAL INDEX KEY: 0001834045 STANDARD INDUSTRIAL CLASSIFICATION: BEVERAGES [2080] IRS NUMBER: 000000000 STATE OF INCORPORATION: NV FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-40016 FILM NUMBER: 23906938 BUSINESS ADDRESS: STREET 1: 937 TAHOE BOULEVARD STREET 2: SUITE 210 CITY: INCLINE VILLAGE STATE: NV ZIP: 89451 BUSINESS PHONE: 707-346-3640 MAIL ADDRESS: STREET 1: 937 TAHOE BOULEVARD STREET 2: SUITE 210 CITY: INCLINE VILLAGE STATE: NV ZIP: 89451 FORMER COMPANY: FORMER CONFORMED NAME: Bespoke Capital Acquisition Corp DATE OF NAME CHANGE: 20201125 10-Q 1 vwe-20230331.htm 10-Q 10-Q
--06-30Q320230001834045False0001834045us-gaap:FurnitureAndFixturesMember2022-06-300001834045us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001834045us-gaap:NoncontrollingInterestMember2021-07-012021-09-300001834045us-gaap:CustomerRelationshipsMember2022-07-012023-03-310001834045us-gaap:RetainedEarningsMember2022-03-310001834045us-gaap:CustomerRelationshipsMember2022-06-300001834045vwe:BottledWineSpiritsAndCiderMember2023-03-310001834045us-gaap:TrademarksAndTradeNamesMember2022-06-3000018340452022-01-012022-03-310001834045us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310001834045us-gaap:RevolvingCreditFacilityMembervwe:SecondAmendedAndRestatedLoanAndSecurityAgreementMember2022-12-130001834045us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001834045us-gaap:InterestRateSwapMember2023-03-132023-03-130001834045us-gaap:RetainedEarningsMember2021-12-310001834045us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001834045vwe:MarkDownMember2023-01-012023-03-310001834045us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2022-07-012023-03-310001834045us-gaap:WarrantMember2022-07-012023-03-310001834045vwe:RedeemableNonControllingInterestsMember2022-09-300001834045us-gaap:BaseRateMember2022-07-012023-03-310001834045country:US2021-07-012022-03-310001834045us-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:BorrowingsMember2022-07-012022-09-300001834045vwe:CustomerCMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2021-07-012022-03-310001834045vwe:WineryUsePermitsMember2023-03-310001834045us-gaap:FairValueMeasurementsRecurringMember2022-06-300001834045us-gaap:CommonStockMembervwe:EarnoutSharesMember2022-06-3000018340452022-12-152022-12-1500018340452023-01-012023-03-310001834045us-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:NotesPayableToBanksMember2022-07-012022-09-300001834045vwe:DelayDrawTermLoanFacilityMember2021-04-300001834045us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001834045srt:BoardOfDirectorsChairmanMember2023-02-072023-02-070001834045us-gaap:NoncontrollingInterestMember2022-12-3100018340452022-10-012022-12-310001834045us-gaap:TransferredOverTimeMember2021-07-012022-03-310001834045vwe:NonwineInventoryMember2022-06-300001834045srt:MaximumMember2023-03-310001834045vwe:WholesaleMember2022-06-300001834045vwe:FinishedGoodsMember2023-03-310001834045vwe:WineSpiritsAndCiderMember2021-07-012022-03-3100018340452022-06-300001834045vwe:DelayDrawTermLoanFacilityMembersrt:MaximumMember2021-04-300001834045srt:MinimumMembervwe:MeasurementInputRoyaltyRateMember2022-12-310001834045us-gaap:BorrowingsMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2023-03-310001834045us-gaap:NotesPayableToBanksMembervwe:April2023Member2023-03-310001834045us-gaap:TransferredOverTimeMember2022-01-012022-03-310001834045us-gaap:RevolvingCreditFacilityMembervwe:SecondAmendedAndRestatedLoanAndSecurityAgreementMembersrt:MinimumMember2022-07-012023-03-310001834045srt:MaximumMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2022-07-012023-03-310001834045vwe:InterestRateSwapTwoAgreementMember2023-03-130001834045vwe:June2027Memberus-gaap:BorrowingsMemberus-gaap:BaseRateMember2023-01-012023-03-310001834045us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001834045us-gaap:AdditionalPaidInCapitalMember2021-09-300001834045vwe:RedeemableNonControllingInterestsMember2022-01-012022-03-310001834045vwe:InternationalMember2021-07-012022-03-3100018340452021-07-012022-06-300001834045us-gaap:NotesPayableToBanksMembervwe:April2023Member2022-06-300001834045vwe:WarrantsMemberus-gaap:CommonStockMember2023-03-310001834045us-gaap:RetainedEarningsMember2022-10-012022-12-310001834045vwe:SecondAmendedAndRestatedLoanAndSecurityAgreementMembervwe:EquipmentLoanMember2022-07-012023-03-310001834045vwe:BulkWineMember2023-03-310001834045us-gaap:RevolvingCreditFacilityMember2022-03-310001834045us-gaap:AllOtherSegmentsMember2022-01-012022-03-310001834045vwe:BusinessToBusinessMember2021-07-012022-03-310001834045vwe:DecemberTwentyTwentySevenMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembervwe:DelayedDrawTermLoanMember2022-07-012023-03-310001834045us-gaap:RetainedEarningsMember2022-09-300001834045us-gaap:SalesRevenueNetMembervwe:CustomerAMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-03-310001834045us-gaap:CommonStockMember2022-10-012022-12-310001834045country:US2022-01-012022-03-310001834045vwe:June2027Memberus-gaap:BorrowingsMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2023-01-012023-03-310001834045us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-3000018340452023-02-072023-02-070001834045us-gaap:RevolvingCreditFacilityMembervwe:SecondAmendedAndRestatedLoanAndSecurityAgreementMember2022-07-012023-03-310001834045us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001834045vwe:WholesaleMember2023-01-012023-03-3100018340452022-12-310001834045us-gaap:LondonInterbankOfferedRateLIBORMembervwe:DecemberTwentyTwentyTwoMembervwe:DelayedDrawTermLoanMember2023-03-310001834045us-gaap:WarrantMember2021-07-012022-03-310001834045vwe:NonwineInventoryMember2023-03-310001834045us-gaap:CommonStockMember2022-01-012022-03-310001834045vwe:BottlingAndPackagingSuppliesMember2022-06-300001834045us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2021-12-132022-01-130001834045us-gaap:RetainedEarningsMember2023-03-310001834045us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001834045vwe:BusinessToBusinessMember2022-01-012022-03-310001834045us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembervwe:EquipmentTermLoanPayableMember2023-03-310001834045us-gaap:RestrictedStockUnitsRSUMember2022-10-012022-12-3100018340452022-07-012023-03-310001834045srt:RevisionOfPriorPeriodReclassificationAdjustmentMember2023-01-012023-03-310001834045us-gaap:AdditionalPaidInCapitalMember2022-10-012022-12-310001834045us-gaap:EmployeeStockOptionMember2022-01-012022-03-310001834045vwe:BusinessToBusinessMember2022-10-012022-12-310001834045us-gaap:EmployeeStockOptionMember2021-07-012022-03-310001834045vwe:DirectToConsumerMember2022-06-300001834045vwe:CooperageMember2023-03-310001834045us-gaap:NoncontrollingInterestMember2021-12-310001834045vwe:WineSpiritsAndCiderMember2022-07-012023-03-310001834045us-gaap:RevolvingCreditFacilityMembervwe:SecondAmendedAndRestatedLoanAndSecurityAgreementMembersrt:MaximumMember2022-07-012023-03-310001834045vwe:CustomerAMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2021-07-012022-06-300001834045vwe:SubleaseMember2023-03-312023-03-310001834045us-gaap:LandMember2023-03-310001834045us-gaap:TrademarksAndTradeNamesMembervwe:BusinessToBusinessMember2022-07-012023-03-310001834045vwe:CooperageMember2022-06-300001834045us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2021-12-132022-03-130001834045vwe:DecemberTwentyTwentySevenMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembervwe:DelayedDrawTermLoanMember2023-01-012023-03-310001834045vwe:December2027Memberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembervwe:DelayedDrawTermLoanMember2023-03-310001834045us-gaap:SalesRevenueNetMembervwe:CustomerAMemberus-gaap:CustomerConcentrationRiskMember2022-07-012023-03-310001834045us-gaap:NotesPayableToBanksMembervwe:April2023Member2022-07-012023-03-310001834045vwe:TermLoanMembervwe:SecondAmendedAndRestatedLoanAndSecurityAgreementMember2022-12-130001834045vwe:WholesaleMember2022-10-012022-12-310001834045vwe:NonwineMember2021-07-012022-03-310001834045vwe:InternationalMember2023-01-012023-03-310001834045us-gaap:MeasurementInputEbitdaMultipleMembersrt:MaximumMember2022-12-310001834045us-gaap:TreasuryStockMember2023-03-310001834045vwe:DecemberTwentyTwentyTwoMemberus-gaap:NotesPayableToBanksMember2022-09-302022-09-300001834045vwe:TermLoanMember2022-07-012023-03-310001834045vwe:DecemberTwentyTwentySixMembervwe:EquipmentTermLoanPayableMemberus-gaap:BaseRateMember2023-01-012023-03-310001834045us-gaap:NoncontrollingInterestMember2021-10-012021-12-310001834045vwe:BottlingAndPackagingSuppliesMember2023-03-310001834045us-gaap:LondonInterbankOfferedRateLIBORMembervwe:DecemberTwentyTwentyTwoMembervwe:DelayedDrawTermLoanMember2022-06-300001834045vwe:RedeemableNonControllingInterestsMember2023-01-012023-03-310001834045us-gaap:EmployeeStockOptionMember2022-07-012023-03-310001834045vwe:RedeemableNonControllingInterestsMember2021-09-3000018340452020-07-012021-06-300001834045us-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:NotesPayableToBanksMember2023-03-310001834045vwe:CustomerDMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2022-07-012023-03-310001834045vwe:BulkWineSpiritsAndCiderMember2022-06-300001834045us-gaap:NotesPayableToBanksMembervwe:June2027Memberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2023-01-012023-03-310001834045us-gaap:TreasuryStockMember2022-12-3100018340452022-07-012022-09-300001834045us-gaap:NoncontrollingInterestMember2022-09-300001834045us-gaap:RevolvingCreditFacilityMember2022-06-300001834045vwe:SecondAmendedAndRestatedLoanAndSecurityAgreementMembervwe:AccountsReceivableAndInventoryRevolvingFacilityMember2022-12-130001834045us-gaap:RetainedEarningsMember2021-10-012021-12-310001834045us-gaap:RestrictedStockUnitsRSUMember2023-03-310001834045srt:MinimumMember2023-03-310001834045us-gaap:NotesPayableToBanksMember2023-03-310001834045us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-07-012023-03-310001834045vwe:BusinessToBusinessMember2023-01-012023-03-310001834045us-gaap:EmployeeStockOptionMember2021-07-012022-03-310001834045us-gaap:RestrictedStockUnitsRSUMember2022-07-012023-03-310001834045us-gaap:FairValueMeasurementsRecurringMember2023-03-310001834045us-gaap:NotesPayableToBanksMembervwe:March2024Member2023-03-310001834045vwe:WholesaleMember2023-03-3100018340452021-10-012021-12-310001834045us-gaap:AdditionalPaidInCapitalMember2022-03-310001834045us-gaap:MachineryAndEquipmentMember2023-03-310001834045us-gaap:AdditionalPaidInCapitalMember2021-06-300001834045us-gaap:NoncontrollingInterestMember2023-03-310001834045srt:RevisionOfPriorPeriodReclassificationAdjustmentMember2023-03-310001834045vwe:MeiersWineCellarsIncMember2022-01-180001834045us-gaap:SalesRevenueNetMembervwe:CustomerAMemberus-gaap:CustomerConcentrationRiskMember2021-07-012022-03-310001834045us-gaap:LondonInterbankOfferedRateLIBORMembervwe:DecemberTwentyTwentyTwoMemberus-gaap:NotesPayableToBanksMember2022-09-302022-09-300001834045vwe:CapexFacilityMembervwe:SecondAmendedAndRestatedLoanAndSecurityAgreementMember2022-12-130001834045vwe:RedeemableNonControllingInterestsMember2021-07-012021-09-3000018340452023-03-312023-03-310001834045vwe:VineyardsMember2023-03-310001834045vwe:CapexFacilityMembervwe:TermLoanMember2023-03-3100018340452023-03-310001834045vwe:BusinessToBusinessMember2022-07-012023-03-310001834045vwe:SecondAmendedAndRestatedLoanAndSecurityAgreementMembervwe:EquipmentLoanMember2022-12-130001834045vwe:SecondAmendedAndRestatedLoanAndSecurityAgreementMember2022-07-012023-03-310001834045us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001834045vwe:RedeemableNonControllingInterestsMember2023-03-310001834045us-gaap:EmployeeStockOptionMember2022-07-012023-03-310001834045vwe:DirectToConsumerMember2022-07-012023-03-310001834045us-gaap:CommonStockMember2022-06-3000018340452022-02-142022-02-140001834045us-gaap:CommonClassAMember2022-07-012023-03-3100018340452021-06-300001834045vwe:SecondAmendedAndRestatedLoanAndSecurityAgreementMember2022-12-130001834045vwe:DelayedDrawTermLoanMember2021-07-012022-03-310001834045us-gaap:TrademarksAndTradeNamesMember2023-03-310001834045us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001834045us-gaap:CommonStockMember2022-09-300001834045vwe:MeiersWineCellarsIncMember2022-01-182022-01-180001834045us-gaap:TransferredAtPointInTimeMember2021-07-012022-03-310001834045vwe:DirectToConsumerMember2023-03-310001834045us-gaap:PropertyPlantAndEquipmentMember2023-03-3100018340452021-07-012022-03-310001834045us-gaap:RevolvingCreditFacilityMembervwe:AdjustedBaseRateMember2022-07-012023-03-310001834045vwe:RedeemableNonControllingInterestsMember2021-06-300001834045us-gaap:RevolvingCreditFacilityMember2023-03-310001834045vwe:RedeemableNonControllingInterestsMember2022-03-310001834045us-gaap:NoncontrollingInterestMember2022-01-012022-03-310001834045vwe:PublicWarrantsMember2021-08-102021-08-110001834045us-gaap:TreasuryStockMember2021-07-012022-03-310001834045us-gaap:NoncontrollingInterestMember2022-10-012022-12-310001834045vwe:AccountsReceivableAndInventoryRevolvingFacilityMember2021-04-300001834045srt:MaximumMemberus-gaap:MeasurementInputDiscountRateMember2022-12-310001834045us-gaap:AdditionalPaidInCapitalMember2022-12-310001834045us-gaap:EmployeeStockOptionMember2023-01-012023-03-310001834045us-gaap:RetainedEarningsMember2022-06-300001834045us-gaap:AllOtherSegmentsMember2023-01-012023-03-310001834045us-gaap:CommonStockMember2022-12-310001834045vwe:PrivateWarrantsMember2023-03-310001834045vwe:WholesaleMember2022-07-012023-03-310001834045srt:MaximumMembervwe:AmendedAndRestatedLoanAndSecurityAgreementMember2021-04-300001834045vwe:SecondAmendedAndRestatedLoanAndSecurityAgreementMembervwe:DelayedDrawTermLoanFacilityCreditAgreementMember2022-07-012023-03-310001834045vwe:CustomerAMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2022-07-012023-03-310001834045us-gaap:TransferredAtPointInTimeMember2022-07-012023-03-310001834045us-gaap:NoncontrollingInterestMember2022-03-310001834045vwe:InternationalMember2022-01-012022-03-310001834045vwe:TermLoanMembervwe:EquipmentLoanMember2023-03-310001834045us-gaap:CommonStockMember2021-12-310001834045vwe:DelayDrawTermLoanFacilityMembervwe:SecondAmendedAndRestatedLoanAndSecurityAgreementMember2022-12-130001834045vwe:DirectToConsumerMember2023-01-012023-03-310001834045country:US2023-01-012023-03-310001834045srt:MaximumMembervwe:MeasurementInputRoyaltyRateMember2022-12-310001834045vwe:RedeemableNonControllingInterestsMember2021-12-310001834045us-gaap:TrademarksAndTradeNamesMembervwe:DirectToConsumerMember2022-07-012023-03-310001834045vwe:WineSpiritsAndCiderMember2023-01-012023-03-310001834045vwe:TenmaVineyardMember2023-01-012023-03-310001834045vwe:BusinessToBusinessMember2023-03-3100018340452021-12-310001834045vwe:NonwineMember2022-07-012023-03-310001834045vwe:RedeemableNonControllingInterestsMember2022-12-310001834045vwe:PrivateWarrantsMemberus-gaap:IPOMember2023-03-310001834045us-gaap:WarrantMember2022-01-012022-03-310001834045us-gaap:NoncontrollingInterestMember2023-01-012023-03-310001834045us-gaap:FederalFundsEffectiveSwapRateMember2022-07-012023-03-310001834045vwe:BusinessToBusinessMember2022-06-300001834045us-gaap:TreasuryStockMember2022-01-012022-03-3100018340452021-09-300001834045us-gaap:LondonInterbankOfferedRateLIBORMembervwe:DelayedDrawTermLoanMember2022-09-012022-09-300001834045us-gaap:TransferredOverTimeMember2022-07-012023-03-310001834045us-gaap:MeasurementInputDiscountRateMembervwe:MeiersWineCellarsIncMember2022-01-180001834045us-gaap:TreasuryStockMember2022-07-012023-03-310001834045us-gaap:NotesPayableToBanksMember2022-07-012023-03-310001834045us-gaap:WarrantMember2022-07-012023-03-310001834045us-gaap:BorrowingsMemberus-gaap:BaseRateMember2022-07-012022-09-300001834045vwe:InterestRateSwapOneAgreementMember2023-03-130001834045us-gaap:MeasurementInputEbitdaMultipleMembersrt:MinimumMember2022-12-310001834045us-gaap:BorrowingsMemberus-gaap:BaseRateMember2023-03-3100018340452023-04-300001834045us-gaap:RetainedEarningsMember2021-07-012021-09-300001834045us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001834045us-gaap:RetainedEarningsMember2022-07-012022-09-300001834045vwe:DryGoodsMember2023-03-310001834045us-gaap:TrademarksAndTradeNamesMember2022-07-012023-03-310001834045us-gaap:AdditionalPaidInCapitalMember2022-06-300001834045us-gaap:CommonStockMember2023-03-310001834045vwe:March2026Memberus-gaap:NotesPayableToBanksMember2022-07-012023-03-310001834045vwe:LoanAndSecurityAgreementMember2023-03-310001834045us-gaap:BuildingAndBuildingImprovementsMember2023-03-310001834045vwe:DecemberTwentyTwentySevenMembervwe:DelayedDrawTermLoanMemberus-gaap:BaseRateMember2023-01-012023-03-310001834045us-gaap:CustomerRelationshipsMember2022-01-012022-12-310001834045vwe:SubleaseMember2023-03-310001834045vwe:DirectToConsumerMember2021-07-012022-03-310001834045us-gaap:CommonStockMembervwe:EarnoutSharesMember2023-03-310001834045us-gaap:NoncontrollingInterestMember2022-07-012022-09-300001834045vwe:WholesaleMember2021-07-012022-03-310001834045us-gaap:NotesPayableToBanksMembervwe:March2024Member2022-06-300001834045us-gaap:MachineryAndEquipmentMember2022-06-300001834045us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001834045vwe:WarrantsMemberus-gaap:CommonStockMember2022-06-300001834045us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001834045vwe:PublicWarrantsMember2022-09-012022-09-300001834045vwe:CapexFacilityMembervwe:SecondAmendedAndRestatedLoanAndSecurityAgreementMember2022-07-012023-03-310001834045us-gaap:EmployeeStockOptionMember2023-01-012023-03-310001834045us-gaap:WarrantMember2023-01-012023-03-310001834045vwe:NonwineMember2022-01-012022-03-310001834045us-gaap:FurnitureAndFixturesMember2023-03-310001834045us-gaap:BorrowingsMemberus-gaap:BaseRateMember2022-06-300001834045srt:MaximumMemberus-gaap:MeasurementInputLongTermRevenueGrowthRateMember2022-12-310001834045us-gaap:RestrictedStockUnitsRSUMember2022-06-300001834045vwe:AdjustedBaseRateMember2022-07-012023-03-310001834045us-gaap:TrademarksAndTradeNamesMember2022-01-012022-12-310001834045vwe:BottledWineSpiritsAndCiderMember2022-06-300001834045srt:RevisionOfPriorPeriodReclassificationAdjustmentMember2022-07-012023-03-310001834045us-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:NotesPayableToBanksMember2022-06-300001834045us-gaap:TrademarksAndTradeNamesMembervwe:AceTrademarksMember2022-07-012023-03-310001834045us-gaap:NotesPayableToBanksMembervwe:DecemberTwentyTwentySevenMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2023-03-312023-03-310001834045vwe:RedeemableNonControllingInterestsMember2022-06-300001834045vwe:InternationalMember2022-07-012023-03-310001834045us-gaap:AllOtherSegmentsMember2022-07-012023-03-3100018340452021-07-012021-09-300001834045us-gaap:RetainedEarningsMember2022-01-012022-03-310001834045us-gaap:LandMember2022-06-300001834045us-gaap:TreasuryStockMember2022-09-300001834045country:US2022-07-012023-03-310001834045us-gaap:NoncontrollingInterestMember2022-06-300001834045us-gaap:AllOtherSegmentsMember2021-07-012022-03-310001834045vwe:WholesaleMemberus-gaap:TrademarksAndTradeNamesMember2022-07-012023-03-310001834045us-gaap:RestrictedStockUnitsRSUMember2021-07-012022-03-310001834045us-gaap:TreasuryStockMember2022-03-310001834045vwe:CustomerBMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2021-07-012022-03-310001834045us-gaap:BuildingAndBuildingImprovementsMember2022-06-300001834045us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001834045vwe:RedeemableNonControllingInterestsMember2022-10-012022-12-310001834045us-gaap:TreasuryStockMember2022-06-300001834045us-gaap:RevolvingCreditFacilityMember2022-07-012023-03-310001834045vwe:VineyardsMember2022-06-300001834045vwe:BulkWineSpiritsAndCiderMember2023-03-3100018340452022-09-300001834045vwe:LayerCakeMemberus-gaap:TrademarksAndTradeNamesMember2022-07-012023-03-310001834045us-gaap:NoncontrollingInterestMember2021-06-300001834045us-gaap:SalesRevenueNetMembervwe:CustomerAMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-03-310001834045vwe:WineSpiritsAndCiderMember2022-01-012022-03-310001834045us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-03-310001834045us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-03-310001834045us-gaap:CustomerRelationshipsMember2023-03-310001834045us-gaap:WarrantMember2023-03-310001834045vwe:NonwineMember2023-01-012023-03-310001834045vwe:March2026Memberus-gaap:NotesPayableToBanksMember2023-03-310001834045vwe:DecemberTwentyTwentySevenMembervwe:DelayedDrawTermLoanMember2023-01-012023-03-310001834045vwe:MisuseOfNonCompeteAgreementAndFailedEarnoutPaymentMember2022-07-012023-03-310001834045us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2021-12-132022-06-130001834045us-gaap:EmployeeStockOptionMember2022-01-012022-03-310001834045vwe:OtherThanRevolvingCreditFacilityMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2022-07-012023-03-310001834045vwe:DecemberTwentyTwentySixMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembervwe:EquipmentTermLoanPayableMember2023-01-012023-03-310001834045srt:MinimumMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2022-07-012023-03-310001834045vwe:RedeemableNonControllingInterestsMember2021-10-012021-12-310001834045srt:MinimumMemberus-gaap:MeasurementInputLongTermRevenueGrowthRateMember2022-12-310001834045vwe:DirectToConsumerMember2022-01-012022-03-310001834045us-gaap:AdditionalPaidInCapitalMember2023-03-310001834045us-gaap:MeasurementInputDiscountRateMembervwe:MeiersWineCellarsIncMember2023-03-310001834045srt:MinimumMemberus-gaap:MeasurementInputDiscountRateMember2022-12-310001834045us-gaap:AdditionalPaidInCapitalMember2022-09-300001834045vwe:PublicWarrantsMember2023-03-310001834045us-gaap:TransferredAtPointInTimeMember2022-01-012022-03-3100018340452022-03-080001834045us-gaap:CommonStockMember2022-03-310001834045vwe:MeasurementInputRoyaltyRateMembervwe:MeiersWineCellarsIncMember2022-01-180001834045us-gaap:TransferredAtPointInTimeMember2023-01-012023-03-310001834045us-gaap:RetainedEarningsMember2023-01-012023-03-310001834045us-gaap:RetainedEarningsMember2022-12-3100018340452022-03-310001834045vwe:WineryUsePermitsMember2022-06-300001834045us-gaap:NotesPayableToBanksMembervwe:DecemberTwentyTwentySevenMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2022-07-012023-03-310001834045us-gaap:EmployeeStockOptionMember2023-03-310001834045us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001834045us-gaap:CommonStockMember2021-06-300001834045us-gaap:WarrantMembervwe:ShareRepurchasePlanMember2022-07-012023-03-310001834045vwe:MeiersWineCellarsIncMember2022-07-012023-03-310001834045vwe:InterimChiefExecutiveOfficerMember2023-02-072023-02-070001834045us-gaap:NotesPayableToBanksMembervwe:DecemberTwentyTwentySevenMember2023-03-312023-03-310001834045us-gaap:NoncontrollingInterestMember2021-09-300001834045vwe:RedeemableNonControllingInterestsMember2022-07-012022-09-300001834045us-gaap:CommonStockMember2021-09-300001834045vwe:SecondAmendedAndRestatedLoanAndSecurityAgreementMembervwe:TermLoanMember2022-07-012023-03-310001834045vwe:WholesaleMember2022-01-012022-03-310001834045us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001834045vwe:CapitalExpenditureFacilityMember2021-04-300001834045us-gaap:NotesPayableToBanksMembervwe:March2024Member2022-07-012023-03-310001834045us-gaap:NotesPayableToBanksMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2023-03-310001834045vwe:TermLoanMember2021-04-300001834045us-gaap:RetainedEarningsMember2021-09-300001834045us-gaap:TransferredOverTimeMember2023-01-012023-03-310001834045us-gaap:AdditionalPaidInCapitalMember2021-12-31iso4217:USDxbrli:sharesutr:Ratexbrli:purexbrli:sharesvwe:Segmentiso4217:USD

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2023

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from _______ to______

Commission file number 001-40016

 

img9431817_0.jpg 

 

VINTAGE WINE ESTATES, INC.

(Exact name of registrant as specified in its charter)

 

Nevada

 

 

 

87-1005902

(State or other jurisdiction of incorporation or organization)

 

 

 

(I.R.S. Employer Identification No.)

 

937 Tahoe Boulevard, Suite 210

Incline Village, Nevada 89451

(Address of principal executive offices) (Zip code)

 

Registrant’s telephone number, including area code: (877) 289-9463

 

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Common stock, no par value per share

 

VWE

 

The Nasdaq Stock Market LLC

Warrants to purchase common stock

 

VWEWW

 

The Nasdaq Stock Market LLC

 

 

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes No ☒

As of April 30, 2023, 59,339,163 shares of the registrant’s common stock were outstanding.

 


 

 

Part I. Financial Information

 

Item 1. Financial Statements

1

Condensed Consolidated Balance Sheets (Unaudited)

1

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)

2

Condensed Consolidated Statements of Stockholders' Equity (Unaudited)

3

Condensed Consolidated Statements of Cash Flows (Unaudited)

4

Notes to the Condensed Consolidated Financial Statements (Unaudited)

5

Note 1: Basis of Presentation and Significant Accounting Policies

5

Note 2: Business Combinations

10

Note 3: Inventory

11

Note 4: Assets Held for Sale

11

Note 5: Property, Plant and Equipment

12

Note 6: Goodwill and Intangibles

12

Note 7: Accrued Liabilities

14

Note 8: Fair Value Measurements

14

Note 9: Leases

15

Note 10: Long-Term and Other Short-Term Obligations

18

Note 11: Stockholders' Equity

20

Note 12: Income Taxes

23

Note 13: Commitments and Contingencies

23

Note 14: Related Party Transactions

24

Note 15: Segments

25

Note 16: Earnings Per Share

27

Note 17: Subsequent Events

28

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

29

Item 3. Quantitative and Qualitative Disclosures About Market Risk

39

Item 4. Controls and Procedures

39

Part II. Other Information

41

Item 1. Legal Proceedings

41

Item 1A. Risk Factors

41

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

42

Item 3. Defaults Upon Senior Securities

42

Item 4. Mine Safety Disclosures

42

Item 5. Other Information

42

Item 6. Exhibits

43

Signatures

44

 

 

 


Table of Contents

Part I—Financial Information

Item 1. Financial Statements

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

 

March 31, 2023

 

 

June 30, 2022

 

 

 

(Unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash

 

$

31,966

 

 

$

45,492

 

Restricted cash

 

 

-

 

 

 

4,800

 

Accounts receivable, net

 

 

41,381

 

 

 

38,192

 

Other receivables

 

 

721

 

 

 

3,866

 

Inventories

 

 

199,268

 

 

 

192,102

 

Assets held for sale, net

 

 

547

 

 

 

-

 

Current interest rate swap asset

 

 

3,920

 

 

 

2,877

 

Prepaid expenses and other current assets

 

 

23,519

 

 

 

13,394

 

Total current assets

 

 

301,322

 

 

 

300,723

 

Property, plant, and equipment, net

 

 

219,680

 

 

 

236,100

 

Operating lease right-of-use assets

 

 

32,971

 

 

 

-

 

Finance lease right-of-use-assets

 

 

624

 

 

 

-

 

Goodwill

 

 

29,666

 

 

 

154,951

 

Intangible assets, net

 

 

45,438

 

 

 

64,377

 

Interest rate swap asset

 

 

3,619

 

 

 

6,280

 

Other assets

 

 

4,701

 

 

 

3,464

 

Total assets

 

$

638,021

 

 

$

765,895

 

Liabilities, redeemable noncontrolling interest, and stockholders' equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Line of credit

 

$

114,429

 

 

$

144,215

 

Accounts payable

 

 

28,785

 

 

 

13,947

 

Accrued liabilities and other payables

 

 

34,325

 

 

 

24,204

 

Current operating lease liabilities

 

 

6,357

 

 

 

-

 

Current finance lease liabilities

 

 

286

 

 

 

-

 

Current maturities of long-term debt

 

 

191,580

 

 

 

14,909

 

Total current liabilities

 

 

375,762

 

 

 

197,275

 

Other long-term liabilities

 

 

1,693

 

 

 

6,491

 

Long-term debt, less current maturities

 

 

-

 

 

 

169,095

 

Long-term operating lease liabilities

 

 

27,695

 

 

 

-

 

Long-term finance lease liabilities

 

 

344

 

 

 

-

 

Deferred tax liability

 

 

5,698

 

 

 

29,979

 

Deferred gain

 

 

10,116

 

 

 

10,666

 

Total liabilities

 

 

421,308

 

 

 

413,506

 

Commitments and contingencies (Note 13)

 

 

 

 

 

 

Redeemable noncontrolling interest

 

 

262

 

 

 

1,663

 

Stockholders' equity:

 

 

 

 

 

 

Preferred stock, no par value, 2,000,000 shares authorized, and none issued and outstanding at March 31, 2022 and June 30, 2022.

 

 

-

 

 

 

-

 

Common stock, no par value, 200,000,000 shares authorized, 62,161,553 issued and 59,289,659 outstanding at March 31, 2023 and 61,691,054 issued and 58,819,160 outstanding at June 30, 2022.

 

 

-

 

 

 

-

 

Additional paid-in capital

 

 

383,720

 

 

 

377,897

 

Treasury stock, at cost: 2,871,894 shares held at March 31, 2023 and June 30, 2022.

 

 

(26,034

)

 

 

(26,034

)

Accumulated Deficit

 

 

(140,601

)

 

 

(571

)

Total Vintage Wine Estates, Inc. stockholders' equity

 

 

217,085

 

 

 

351,292

 

Noncontrolling interests

 

 

(634

)

 

 

(566

)

Total stockholders' equity

 

 

216,451

 

 

 

350,726

 

Total liabilities, redeemable noncontrolling interest, and stockholders' equity

 

$

638,021

 

 

$

765,895

 

See notes to unaudited condensed consolidated financial statements.

1


Table of Contents

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME

(Unaudited)

(in thousands, except per share amounts)

 

 

Three Months Ended March 31,

 

 

Nine Months Ended March 31,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net revenue

 

 

 

 

 

 

 

 

 

 

 

 

Wine, spirits and cider

 

$

41,443

 

 

$

50,859

 

 

$

146,160

 

 

$

157,292

 

Nonwine

 

 

28,035

 

 

 

28,074

 

 

 

78,540

 

 

 

60,939

 

 

 

 

69,478

 

 

 

78,933

 

 

 

224,700

 

 

 

218,231

 

Cost of revenue

 

 

 

 

 

 

 

 

 

 

 

 

Wine, spirits and cider

 

 

37,829

 

 

 

38,764

 

 

 

108,499

 

 

 

98,428

 

Nonwine

 

 

15,303

 

 

 

12,152

 

 

 

46,524

 

 

 

29,886

 

 

 

 

53,132

 

 

 

50,916

 

 

 

155,023

 

 

 

128,314

 

Gross profit

 

 

16,346

 

 

 

28,017

 

 

 

69,677

 

 

 

89,917

 

Selling, general, and administrative expenses

 

 

25,526

 

 

 

24,952

 

 

 

92,458

 

 

 

66,724

 

Amortization expense

 

 

1,813

 

 

 

2,083

 

 

 

5,429

 

 

 

3,938

 

Goodwill impairment losses

 

 

-

 

 

 

-

 

 

 

125,285

 

 

 

-

 

Intangible impairment losses

 

 

-

 

 

 

-

 

 

 

13,823

 

 

 

-

 

Gain on remeasurement of contingent liability

 

 

-

 

 

 

-

 

 

 

(2,648

)

 

 

-

 

Gain on litigation proceeds

 

 

(884

)

 

 

-

 

 

 

(1,414

)

 

 

-

 

Loss (gain) on sale leaseback

 

 

(333

)

 

 

(333

)

 

 

(550

)

 

 

(1,000

)

Loss (gain) on sale of property, plant, and equipment

 

 

(5,977

)

 

 

431

 

 

 

(5,625

)

 

 

507

 

(Loss) income from operations

 

 

(3,799

)

 

 

884

 

 

 

(157,081

)

 

 

19,748

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(4,291

)

 

 

(3,729

)

 

 

(13,322

)

 

 

(10,825

)

Net (loss) gain on interest rate swap agreements

 

 

(3,596

)

 

 

4,553

 

 

 

4,892

 

 

 

8,582

 

Loss on extinguishment of debt

 

 

-

 

 

 

-

 

 

 

(479

)

 

 

-

 

Other, net

 

 

(161

)

 

 

1,957

 

 

 

326

 

 

 

1,945

 

Total other income (expense), net

 

 

(8,048

)

 

 

2,781

 

 

 

(8,583

)

 

 

(298

)

(Loss) Income before provision for income taxes

 

 

(11,847

)

 

 

3,665

 

 

 

(165,664

)

 

 

19,450

 

Income tax (benefit) provision

 

 

(1,673

)

 

 

958

 

 

 

(24,231

)

 

 

5,412

 

Net (loss) income

 

 

(10,174

)

 

 

2,707

 

 

 

(141,433

)

 

 

14,038

 

Net loss attributable to the noncontrolling interests

 

 

(14

)

 

 

(73

)

 

 

(1,403

)

 

 

(138

)

Net (loss) income attributable to common stockholders

 

$

(10,160

)

 

$

2,780

 

 

$

(140,030

)

 

$

14,176

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share allocable to common stockholders

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.17

)

 

$

0.05

 

 

$

(2.37

)

 

$

0.23

 

Diluted

 

$

(0.17

)

 

$

0.05

 

 

$

(2.37

)

 

$

0.23

 

Weighted average shares used in the calculation of earnings per share allocable to common stockholders

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

59,289,659

 

 

 

61,410,403

 

 

 

59,014,915

 

 

 

60,773,258

 

Diluted

 

 

59,289,659

 

 

 

61,410,403

 

 

 

59,014,915

 

 

 

60,773,258

 

See notes to unaudited condensed consolidated financial statements.

2


Table of Contents

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

(in thousands, except share amounts)

 

 

Redeemable Non-Controlling
Interest Amount

 

 

Common Stock

 

 

Treasury Stock

 

 

Additional
Paid-In Capital

 

 

Retained
Earnings (Accumulated Deficit)

 

 

Non-Controlling
Interests

 

 

Total Stockholders' Equity

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, June 30, 2022

 

$

1,663

 

 

 

61,691,054

 

 

$

-

 

 

 

2,871,894

 

 

$

(26,034

)

 

$

377,897

 

 

$

(571

)

 

$

(566

)

 

$

350,726

 

Stock-based compensation expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4,651

 

 

 

-

 

 

 

-

 

 

 

4,651

 

Repurchase of public warrants

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(172

)

 

 

-

 

 

 

-

 

 

 

(172

)

Shareholder distribution

 

 

(66

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net income (loss)

 

 

(315

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(293

)

 

 

(28

)

 

 

(321

)

Balance, September 30, 2022

 

$

1,282

 

 

 

61,691,054

 

 

$

-

 

 

 

2,871,894

 

 

$

(26,034

)

 

$

382,376

 

 

$

(864

)

 

$

(594

)

 

$

354,884

 

Stock-based compensation expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4,328

 

 

 

-

 

 

 

-

 

 

 

4,328

 

Vesting of restricted stock

 

 

-

 

 

 

755,880

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Taxes paid related to net share settlement of equity awards

 

 

-

 

 

 

(285,381

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(976

)

 

 

-

 

 

 

-

 

 

 

(976

)

Net income (loss)

 

 

(1,022

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(129,577

)

 

 

(24

)

 

 

(129,601

)

Balance, December 31, 2022

 

$

260

 

 

 

62,161,553

 

 

$

-

 

 

 

2,871,894

 

 

$

(26,034

)

 

$

385,728

 

 

$

(130,441

)

 

$

(618

)

 

$

228,635

 

Stock-based compensation expense

 

 

-

 

 

 

-

 

 

 

 

 

 

-

 

 

 

-

 

 

 

(2,008

)

 

 

-

 

 

 

-

 

 

 

(2,008

)

Net income (loss)

 

 

2

 

 

 

-

 

 

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(10,160

)

 

 

(16

)

 

 

(10,176

)

Balance, March 31, 2023