QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
(Address of principal executive offices) |
(Zip Code) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
Class A |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
☒ | Smaller reporting company | |||||
Emerging growth company |
Page |
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PART I |
4 |
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Item 1. |
4 |
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4 |
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5 |
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8 |
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8 |
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9 |
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10 |
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11 |
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13 |
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14 |
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Item 2. |
40 |
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Item 3. |
59 |
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Item 4. |
59 |
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PART II |
60 |
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Item 1. |
60 |
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Item 1A. |
60 |
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Item 2. |
60 |
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Item 6. |
61 |
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62 |
As of June 30, 2021 |
As of April 1, 2021 |
|||||||
(unaudited) |
||||||||
Assets |
||||||||
Cash |
$ | $ | ||||||
Total assets |
$ | $ | ||||||
|
|
|
|
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Commitments and contingencies |
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Stockholders’ equity |
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Common stock, $ |
$ | $ | ||||||
Total stockholders’ equity |
$ | $ | ||||||
|
|
|
|
• |
BDT WSP Holdings, LLC, an entity controlled by BDT Capital Partners, LLC, the Company’s sponsor; |
• |
WSP Investment LLC, an entity held by the Stephen family; |
• |
Weber-Stephen Management Pool LLC, an entity held by current and former members of the Company’s management team and directors; and |
• |
certain other historical equityholders. |
• |
Weber Merger Sub, LLC (“Weber Merger Sub”), a subsidiary of Weber Inc. formed in April 2021, merged with and into BDT WSP Blocker, LLC (“Blocker”), an entity controlled by BDT Capital Partners, LLC, our sponsor, with Blocker surviving the merger. As a result, (i) the Blocker equityholders received Class A common stock of Weber Inc. in exchange for their equity interests in Blocker, (ii) the nominal shares of Weber Inc. held by Weber-Stephen Products LLC were canceled for no consideration (because Weber Inc. was originally formed as a subsidiary of Weber-Stephen Products LLC) and (iii) Weber Inc. became wholly owned by the former Blocker equityholders; |
• |
Blocker then merged with and into Weber Inc., with Weber Inc. surviving the merger. Weber Inc.’s certificate of incorporation was amended to authorize the issuance of two classes of common stock: Class A common stock and Class B common stock, which we refer to collectively as our “common stock.” Each share of Class A common stock and Class B common stock will entitle its holder to one vote per share on all matters submitted to a vote of our stockholders; |
• |
WSP Merger Sub, a subsidiary of WSP Intermediate formed in April 2021, merged with and into Weber-Stephen Products LLC, with Weber-Stephen Products LLC surviving the merger. As a result, (i) the Pre-IPO LLC Members received non-voting common interest units (the “LLC Units”) in Weber HoldCo LLC in exchange for all of their equity interests in Weber-Stephen Products LLC, (ii) Weber-Stephen Management Pool LLC received LLC Units in exchange for all equity interest that it holds in Weber-Stephen Products LLC, and (iii) Weber-Stephen Products LLC became a wholly owned subsidiary of Weber HoldCo LLC; |
• |
an amended limited liability company operating agreement (“Amended LLC Agreement”) was adopted for Weber HoldCo LLC making Weber Inc. the sole managing member of Weber HoldCo LLC; |
• |
Pre-IPO LLC Members were issued shares of Weber Inc.’s Class B common stock in an amount equal to the number of LLC Units held by each such Pre-IPO LLC Member; |
• |
Weber Inc. issued |
• |
Weber Inc. entered into a tax receivable agreement with the Pre-IPO LLC Members. |
June 30, 2021 |
September 30, 2020 |
|||||||
(unaudited) |
||||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Accounts receivable, less allowance of $ (1) |
||||||||
Inventories, net |
||||||||
Prepaid expenses and other current assets (2) |
||||||||
|
|
|
|
|||||
Total current assets |
||||||||
Property, equipment and leasehold improvements, net |
||||||||
Operating lease right-of-use (3) |
||||||||
Other long-term assets |
||||||||
Trademarks, net |
||||||||
Other intangible assets, net |
||||||||
Goodwill |
||||||||
|
|
|
|
|||||
Total assets |
$ | $ | ||||||
Liabilities and members’ equity (deficit) |
||||||||
Current liabilities: |
||||||||
Trade accounts payable |
$ |
$ |
||||||
Accrued expenses (4) |
||||||||
Income taxes payable |
||||||||
Current portion of long-term debt and other borrowings |
||||||||
Current portion of long-term financing obligation |
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|
|
|||||
Total current liabilities |
||||||||
Long-term debt, less current portion |
||||||||
Long-term financing obligation, less current portion |
||||||||
Non-current operating lease liabilities (5) |
||||||||
Other long-term liabilities |
||||||||
|
|
|
|
|||||
Total liabilities |
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|
|
|
|
|||||
Commitments and Contingencies (Note 9) |
||||||||
Members’ deficit, |
( |
) | ( |
) | ||||
Accumulated other comprehensive loss |
( |
) | ( |
) | ||||
Retained (deficit) earnings |
( |
) | ||||||
|
|
|
|
|||||
Total members’ (deficit) equity |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total liabilities and members’ (deficit) equity |
$ | $ |
(1) | Includes related party royalty receivables of $ |
(2) | Includes related party prepaid royalties of $ |
(3) | Includes related party operating lease assets of $ |
( 4 ) |
Includes related party operating lease liabilities of $ |
( 5 ) |
Includes related party operating lease liabilities of $ ). |
Three Months Ended June 30, |
Nine Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Net sales (1) |
$ | $ | $ | $ | ||||||||||||
Cost of goods sold (2) |
||||||||||||||||
Gross profit |
||||||||||||||||
Operating expenses: |
||||||||||||||||
Selling, general and administrative (3)(4) |
||||||||||||||||
Amortization of intangible assets |
||||||||||||||||
Gain on disposal of assets held for sale |
— | — | ( |
) | — | |||||||||||
Income from operations |
||||||||||||||||
Foreign currency (gain) loss |
( |
) | ( |
) | ( |
) | ||||||||||
Interest income (5) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Interest expense |
||||||||||||||||
Loss from early extinguishment of debt |
— | — | — | |||||||||||||
Income before taxes |
||||||||||||||||
Income tax expense |
||||||||||||||||
Loss (gain) from investments in unconsolidated affiliates |
— | ( |
) | |||||||||||||
Net income |
$ | $ | $ | $ | ||||||||||||
Earnings allocated to participating securities |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net income attributable to common members |
$ | $ | $ | $ | ||||||||||||
Net income per common unit |
||||||||||||||||
Basic |
$ | $ | $ | $ | ||||||||||||
Diluted |
$ | $ | $ | $ | ||||||||||||
Weighted average common units outstanding |
||||||||||||||||
Basic |
||||||||||||||||
Diluted |
(1) | Includes related party royalty revenue of $ |
(2) | Includes related party rental expense of $ |
(3) | Includes related party rental expense of $ |
(4) | Includes related party royalty expense of $ and $ |
(5) | Includes related party interest income of $ |
Three Months Ended June 30, |
Nine Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Net income |
$ | $ | $ | $ | ||||||||||||
Other comprehensive income (loss): |
||||||||||||||||
Foreign currency translation adjustments |
||||||||||||||||
(Loss) gain on derivative instruments |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2021 |
||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) |
||||||||||||||||||||||||||||
Units |
Capital Contribution |
Notes Receivable From Members |
Cumulative Translation Adjustments |
Unrealized Gain (Loss) on Derivative Instruments |
Retained Earnings (Deficit) |
Total |
||||||||||||||||||||||
Balance at March 31, 2021 |
$ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | $ | ||||||||||||||||
Capital contributions |
( |
) | — | — | — | |||||||||||||||||||||||
Issuance of common units in connection with acquisition |
— | — | — | — | ||||||||||||||||||||||||
Repurchase of members’ interest |
( |
) | ( |
) | — | — | — | ( |
) | ( |
) | |||||||||||||||||
Interest income on notes receivable |
— | — | ( |
) | — | — | — | ( |
) | |||||||||||||||||||
Notes receivables repayment |
— | — | — | — | — | |||||||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
Foreign currency translation adjustments |
— | — | — | — | — | |||||||||||||||||||||||
Loss on derivative instruments |
— | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||
Unit based compensation |
— | — | — | — | — | |||||||||||||||||||||||
Reclassification of realized loss on derivative instruments to net income |
— | — | — | — | — | |||||||||||||||||||||||
Members’ distributions |
— | ( |
) | — | — | — | ( |
) | ( |
) | ||||||||||||||||||
Balance at June 30, 2021 |
$ | — |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | |||||||||||
Three Months Ended June 30, 2020 |
||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) |
||||||||||||||||||||||||||||
Units |
Capital Contribution |
Notes Receivable From Members |
Cumulative Translation Adjustments |
Unrealized Gain (Loss) on Derivative Instruments |
Retained Earnings (Deficit) |
Total |
||||||||||||||||||||||
Balance at March 31, 2020 |
$ |
$ |
( |
) | $ |
( |
) | $ |
( |
) | $ |
( |
) | $ |
( |
) | ||||||||||||
Interest income on notes receivable |
— | — | ( |
) | — | — | — | ( |
) | |||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
Foreign currency translation adjustments |
— | — | — | — | — | |||||||||||||||||||||||
Loss on derivative instruments |
— | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||
Reclassification of realized loss on derivative instruments to net income |
— | — | — | — | — | |||||||||||||||||||||||
Members’ distributions |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||
Balance at June 30, 2020 |
$ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | $ | ( |
) | ||||||||||||||
Nine Months Ended June 30, 2021 |
||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) |
||||||||||||||||||||||||||||
Units |
Capital Contributions |
Notes Receivable from Members |
Cumulative Translation Adjustments |
Unrealized Gain/(Loss) on Derivative Instruments |
Retained Earnings (Deficit) |
Total |
||||||||||||||||||||||
Balance at September 30, 2020 |
$ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | $ | ( |
) | ||||||||||||||
Capital contributions |
( |
) | — | — | — | |||||||||||||||||||||||
Issuance of common units in connection with acquisition |
— | — | — | — | ||||||||||||||||||||||||
Repurchase of Members’ Interest |
( |
) | ( |
) | — | — | — | ( |
) | ( |
) | |||||||||||||||||
Interest income on notes receivable |
— | — | ( |
) | — | — | — | ( |
) | |||||||||||||||||||
Notes receivable repayments |
— | — | — | — | — | |||||||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
Foreign currency translation adjustments |
— | — | — | — | — | |||||||||||||||||||||||
Gain on derivative instruments |
— | — | — | — | — | |||||||||||||||||||||||
Unit based compensation |
— | — | — | — | — | |||||||||||||||||||||||
Reclassification of realized loss on derivative instruments to net income |
— | — | — | — | — | |||||||||||||||||||||||
Members’ distributions |
— | ( |
) | — | — | — | ( |
) | ( |
) | ||||||||||||||||||
Balance at June 30, 2021 |
$ | — |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | |||||||||||
Nine Months Ended June 30, 2020 |
||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) |
||||||||||||||||||||||||||||
Units |
Capital Contributions |
Notes Receivable from Members |
Cumulative Translation Adjustments |
Unrealized Gain/(Loss) on Derivative Instruments |
Retained Earnings (Deficit) |
Total |
||||||||||||||||||||||
Balance at September 30, 2019 |
$ | — | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | |||||||||||
Capital contributions |
— | — | — | — | ||||||||||||||||||||||||
Interest income on notes receivable |
— | — | ( |
) | — | — | — | ( |
) | |||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
Foreign currency translation adjustments |
— | — | — | — | — | |||||||||||||||||||||||
Loss on derivative instruments |
— | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||
Unit based compensation |
— | — | — | — | — | |||||||||||||||||||||||
Reclassification of realized loss on derivative instruments to net income |
— | — | — | — | — | |||||||||||||||||||||||
Application of ASC 842 |
— | — | — | — | — | |||||||||||||||||||||||
Members’ distributions |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
Balance at June 30, 2020 |
$ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | $ | ( |
) | ||||||||||||||
Nine Months Ended June 30, |
||||||||
2021 |
2020 |
|||||||
Operating activities |
||||||||
Net income |
$ |
$ |
||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Provision for depreciation |
||||||||
Provision for amortization of intangible assets |
||||||||
Provision for amortization of deferred financing costs |
||||||||
Management incentive plan compensation, net of forfeitures |
||||||||
(Gain) loss from investments in unconsolidated affiliates |
( |
) |
||||||
Gain on disposal of assets held for sale |
( |
) |
— |
|||||
Unit based compensation |
||||||||
Loss from early extinguishment of debt |
— |
|||||||
Changes in operating assets and liabilities |
||||||||
Accounts receivable |
( |
) |
( |
) | ||||
Inventories |
( |
) |
( |
) | ||||
Prepaid expenses and other current assets |
( |
) | ||||||
Trade accounts payable |
||||||||
Accrued expenses |
||||||||
Income taxes payable |
||||||||
Other |
( |
) |
( |
) | ||||
Net cash provided by operating activities |
||||||||
Investing activities |
||||||||
Proceeds from disposal of property, equipment and leasehold improvements |
||||||||
Additions to property, equipment and leasehold improvements |
( |
) |
( |
) | ||||
Payments for acquisitions |
( |
) |
— |
|||||
Net cash used in investing activities |
( |
) |
( |
) | ||||
Financing activities |
||||||||
Proceeds from issuance of long-term debt |
— |
|||||||
Payments for deferred financing costs |
( |
) |
( |
) | ||||
Payments for deferred offering costs |
( |
) |
— |
|||||
Payments under agreement with iDevices |
( |
) |
( |
) | ||||
Interest rate swap settlement payments |
( |
) |
— |
|||||
Proceeds from contribution of capital, net |
||||||||
Repurchase of members’ interests |
( |
) |
— |
|||||
Members’ distributions |
( |
) |
( |
) | ||||
Borrowings from revolving credit facility |
||||||||
Payments on revolving credit facility |
( |
) |
( |
) | ||||
Payments of long-term debt |
( |
) |
( |
) | ||||
Payment for the acquired Q Grill Trademark |
— |
( |
) | |||||
Service on financing obligation |
( |
) |
— |
|||||
Net cash provided by (used in) financing activities |
( |
) | ||||||
Effect of exchange rate changes on cash and cash equivalents |
||||||||
Increase in cash and cash equivalents |
||||||||
Cash and cash equivalents at beginning of period |
||||||||
Cash and cash equivalents at end of period |
$ |
$ |
||||||
Supplemental disclosures of cash flow information: |
||||||||
Cash paid for interest |
$ |
$ |
||||||
Cash paid for income taxes, net of refunds of $ |
$ |
$ |
||||||
Supplemental disclosures of non-cash investing and financing information: |
||||||||
Property and equipment included in accounts payable and accrued expenses |
$ |
$ |
||||||
Deferred offering costs included in accounts payable and accrued expenses |
$ |
$ |
— |
|||||
Settlement of existing relationship through business combination |
$ |
$ |
— |
|||||
Issuance of common units for business acquisition |
$ |
$ |
— |
Balance at September 30, 2020 |
$ | |||
Charges (credits) to the provision, net |
||||
Accounts written off, net of recoveries |
( |
) | ||
|
|
|||
Balance at June 30, 2021 |
$ | |||
|
|
|||
|
|
|
|
|
Balance at September 30, 2019 |
$ | |||
Charges (credits) to the provision, net |
||||
Accounts written off, net of recoveries |
( |
) | ||
|
|
|||
Balance at June 30, 2020 |
$ | |||
|
|
June 30, 2021 (unaudited) |
September 30, 2020 |
|||||||
Work-in-process |
$ | $ | ||||||
Finished products |
||||||||
|
|
|
|
|||||
Total Inventories, net |
$ |
$ | ||||||
|
|
|
|
Americas |
EMEA |
APAC |
Total |
|||||||||||||
Balance as of September 30, 2020 |
$ | $ | |
$ | $ | |||||||||||
Acquisitions |
— | |||||||||||||||
Foreign exchange |
— | ( |
) | ( |
) | |||||||||||
Balance as of June 30, 2021 |
$ | $ | $ | $ | ||||||||||||
Balance as of September 30, 2019 |
$ | |
$ | $ | $ | |||||||||||
Foreign exchange |
— | |||||||||||||||
Balance as of June 30, 2020 |
$ | $ | $ | $ | ||||||||||||
June 30, 2021 (unaudited) |
||||||||||||
Gross Amount |
Accumulated Amortization |
Net Value |
||||||||||
Trademark—Weber |
$ | |
$ | $ | ||||||||
Trademarks—Other |
( |
) | ||||||||||
Trademarks, net |
( |
) | ||||||||||
Customer lists |
( |
) | ||||||||||
Patents |
( |
) | ||||||||||
In-process research and development |
( |
) | ||||||||||
Developed technology |
( |
) | ||||||||||
Reacquired rights |
( |
) | ||||||||||
Non-compete agreement |
( |
) | ||||||||||
Other intangible assets, net |
( |
) | ||||||||||
Total |
$ | $ | ( |
) | $ | |||||||
September 30,2020 |
||||||||||||
Gross Carrying Amount |
Accumulated Amortization |
Net Book Value |
||||||||||
Trademark—Weber |
$ | |
$ | $ | ||||||||
Trademarks—Other |
( |
) | ||||||||||
Trademarks, net |
( |
) | ||||||||||
Customer lists |
( |
) | ||||||||||
Patents |
( |
) | ||||||||||
Internally developed software |
( |
) | — | |||||||||
In-process research and development |
( |
) | ||||||||||
Non-compete agreement |
( |
) | ||||||||||
Other intangible assets, net |
( |
) | ||||||||||
Total |
$ | $ | ( |
) | $ | |||||||
Weighted- Average Years |
||||
Trademarks—Other |
||||
Customer lists |
||||
Patents |
||||
In-process research and development |
||||
Developed technology |
||||
Reacquired rights |
||||
Non-compete agreement |
Remaining period of 2021 |
$ | |||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
Thereafter |
||||
Total |
$ | |
||
June 30, 2021 (unaudited) |
September 30, 2020 |
|||||||
Land |
$ | $ | ||||||
Buildings |
||||||||
Computer equipment and software |
||||||||
Equipment |
||||||||
Leasehold improvements |
||||||||
Construction-in-progress |
||||||||
Accumulated depreciation |
( |
) | ( |
) | ||||
Total |
$ | $ | ||||||
Cash |
$ | |||
Fair value of equity interest |
||||
Settlement of existing contractual relationship |
||||
Total |
$ | |||
Cash |
$ | |||
Inventory |
||||
Accounts receivable |
||||
Prepaid expenses and other current assets |
||||
Property and equipment |
||||
Intangibles |
||||
Goodwill |
||||
Accounts payable |
( |
) | ||
Accrued expenses |
( |
) | ||
Other long-term liabilities |
( |
) | ||
Total |
$ | |||
Gross Carrying Amount |
||||
Trade names and trademarks |
$ | |||
Developed software / patented technology |
||||
Non-competition / restrictive covenant agreements |
||||
Total |
$ | |
||
Useful Lives |
||||
Trade names and trademarks |
||||
Developed software / patented technology |
||||
Non-competition / restrictive covenant agreements |
||||
Total weighted average useful life |
Cash |
$ | |||
Equity consideration issued by the Company ( |
||||
Total |
$ | |||
Property and equipment |
$ | |||
Reacquired rights |
||||
Goodwill |
||||
Accrued expenses |
( |
) | ||
Total |
$ | |||
5. |
Investments |
6. |
Debt |
June 30, 2021 (unaudited) |
September 30, 2020 |
|||||||
Secured Credit Facility Term Loan, due October 2027 |
$ | $ | ||||||
Senior Facility term loan, due December 2022 |
||||||||
Total borrowings |
||||||||
Deferred financing costs |
( |
) | ( |
) | ||||
Original issue discount |
( |
) | ||||||
Total debt |
||||||||
Less: current portion of long-term debt and other borrowings |
( |
) | ( |
) | ||||
Total long-term debt |
$ | $ | ||||||
Remaining period of 2021 |
$ | |||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
Thereafter |
||||
$ | ||||
7. |
Derivative Instruments |
June 30, 2021 (unaudited) |
September 30, 2020 |
|||||||
Interest rate swap contracts |
$ | $ |
June 30, 2021 (unaudited) |
September 30, 2020 |
|||||||
Foreign currency forward contracts |
$ | $ |
Three Months Ended June 30, |
Nine Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Interest rate swap contracts |
$ | ( |
) | $ | ( |
) | $ | $ | ( |
) | ||||||
Foreign currency forward contracts |
— | — | ( |
) | ( |
) | ||||||||||
Total (loss) gain recognized |
$ | ( |
) | $ | ( |
) | $ | $ | ( |
) | ||||||
Three Months Ended June 30, |
Nine Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Interest rate swap contracts |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Foreign currency forward contracts |
( |
) | ( |
) | ( |
) | ||||||||||
Total (loss) gain recognized |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Three Months Ended June 30, |
Nine Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Foreign currency forward contracts |
$ | ( |
) | $ | ( |
) | $ | $ |
Three Months Ended June 30, |
Nine Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Commodity index contracts |
$ | ( |
) | $ | $ | ( |
) | $ |
8. |
Income Taxes |
Balance at September 30, 2020 |
$ | |||
Accrual for warranties issued |
||||
Acquired June warranty reserve |
||||
Warranty settlements made |
( |
) | ||
Balance at June 30, 2021 |
$ | |||
Balance at September 30, 2019 |
$ | |||
Accrual for warranties issued |
||||
Warranty settlements made |
( |
) | ||
Balance at June 30, 2020 |
$ | |||
• | Level 1—Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets. |
• | Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These are typically obtained from readily available pricing sources for comparable instruments. |
• | Level 3—Unobservable inputs, where there is little or no market activity for the asset or liability. These inputs reflect the reporting entity’s own assumptions of the data that market participants would use in pricing the asset or liability based on the best information available in the circumstances. |
(unaudited) |
Level 1 |
Level 2 |
Level 3 |
|||||||||||||
Prepaid expenses and other current assets: |
||||||||||||||||
Foreign currency forward contracts |
$ | $ | — | $ | $ | — | ||||||||||
Commodity index contracts |
— | — | ||||||||||||||
Interest rate swap contracts |
— | — | ||||||||||||||
Total |
$ | $ | — | $ | $ | — | ||||||||||
Other long-term assets: |
||||||||||||||||
Interest rate swap contracts |
$ | $ | — | $ | $ | — | ||||||||||
Total |
$ | $ | — | $ | $ | — | ||||||||||
Accrued expenses: |
||||||||||||||||
Interest rate swap contracts |
$ | $ | — | $ | $ | — | ||||||||||
Total |
$ | $ | — | $ | $ | — | ||||||||||
Other long-term liabilities: |
||||||||||||||||
Interest rate swap contracts |
$ | $ | — | $ | $ | — | ||||||||||
Contingent consideration |
— | — | ||||||||||||||
Total |
$ | $ | — | $ | $ | |||||||||||
September 30, 2020 |
Level 1 |
Level 2 |
Level 3 |
|||||||||||||
Accrued expenses: |
||||||||||||||||
Foreign currency forward contracts |
$ | $ | — | $ | $ | — | ||||||||||
Commodity index contracts |
— | — | ||||||||||||||
Interest rate swap contracts |
— | — | ||||||||||||||
Total |
$ | $ | — | $ | $ | — | ||||||||||
Other long-term liabilities: |
||||||||||||||||
Interest rate swap contracts |
$ | $ | — | $ | $ | — | ||||||||||
Commodity index contracts |
||||||||||||||||
Contingent consideration |
— | — | ||||||||||||||
Total |
$ | $ | — | $ | $ | |||||||||||
Balance at September 30, 2020 |
$ | |||
Royalty payments |
( |
) | ||
Balance at June 30, 2021 |
$ | |||
Balance at September 30, 2019 |
$ | |||
Royalty payments |
( |
) | ||
Fair value adjustments |
||||
Balance at June 30, 2020 |
$ | |||
Distribution Threshold |
Units Outstanding |
|||
$ |
||||
$ |
||||
$ |
||||
$ |
||||
Total |
||||
Units Outstanding |
||||
Balance as of September 30, 2020 |
||||
Units granted |
||||
Units exercised |
— |
|||
Units forfeited or canceled |
— |
|||
Balance at June 30, 2021 |
||||
Units Vested |
||||
Balance as of September 30, 2020 |
— |
|||
Units vested |
||||
Units exercised |
— |
|||
Units forfeited or canceled |
— |
|||
Balance at June 30, 2021 |
||||
Fair value per unit |
$ | |||
Expected term (in years) |
||||
Risk-free interest rate |
% | |||
Expected volatility |
% | |||
Expected dividend yield |
% |
Three Months Ended June 30, 2021 |
||||||||||||||||||||
Americas |
EMEA |
APAC |
Corporate/Other |
Total |
||||||||||||||||
Net sales |
$ | $ | $ | $ | — | $ | ||||||||||||||
Adjusted income from operations (1) |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||
Depreciation and amortization |
$ | $ | $ | $ | $ | |||||||||||||||
Capital expenditures |
$ | $ | $ | $ | $ | |||||||||||||||
Three Months Ended June 30, 2020 |
||||||||||||||||||||
Americas |
EMEA |
APAC |
Corporate/Other |
Total |
||||||||||||||||
Net sales |
$ | $ | $ | $ | — | $ | ||||||||||||||
Adjusted income from operations (1) |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||
Depreciation and amortization |
$ | $ | $ | $ | $ | |||||||||||||||
Capital expenditures |
$ | — | $ | $ | $ | $ | ||||||||||||||
Nine Months Ended June 30, 2021 |
||||||||||||||||||||
Americas |
EMEA |
APAC |
Corporate/Other |
Total |
||||||||||||||||
Net sales |
$ | $ | $ | $ | — | $ | ||||||||||||||
Adjusted income from operations (1) |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||
Depreciation and amortization |
$ | $ | $ | $ | $ | |||||||||||||||
Capital expenditures |
$ | $ | $ | $ | $ |
Nine Months Ended June 30, 2020 |
||||||||||||||||||||
Americas |
EMEA |
APAC |
Corporate/Other |
Total |
||||||||||||||||
Net sales |
$ | $ | $ | |
$ | — | $ | |||||||||||||
Adjusted income from operations (1) |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||
Depreciation and amortization |
$ | $ | $ | $ | $ | |||||||||||||||
Capital expenditures |
$ | $ | $ | $ | $ |
(1) | Adjusted income from operations for each reportable segment includes cost of goods sold transfer price allocations and distribution allocations from Corporate/Other. Corporate/Other includes unallocated corporate and certain supply chain expenses, inter-segment eliminations and other adjustments, including business and operational transformation costs, debt refinancing and IPO costs and COVID-19 costs. |
Three Months Ended June 30, |
Nine Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Segment adjusted income from operations |
||||||||||||||||
Americas |
$ | $ | $ | $ | ||||||||||||
EMEA |
||||||||||||||||
APAC |
||||||||||||||||
Segment adjusted income from operations for reportable segments |
||||||||||||||||
Unallocated net expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Adjustments to income before taxes |
||||||||||||||||
Non-cash stock compensation / LTIP and profits interest expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Gain on disposal of assets held for sale |
— | — | — | |||||||||||||
Interest income |
||||||||||||||||
Interest expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Loss from early extinguishment of debt |
— | — | ( |
) | — | |||||||||||
Income before taxes |
$ | $ | $ | $ | ||||||||||||
June 30, 2021 |
||||||||||||||||||||
Americas |
EMEA |
APAC |
Corporate/Other |
Total |
||||||||||||||||
Segment assets (1) |
$ |
$ |
$ |
$ |
— |
$ |
||||||||||||||
All other (2) |
||||||||||||||||||||
|
|
|||||||||||||||||||
Total assets |
$ |
|||||||||||||||||||
|
|
|||||||||||||||||||
September 30, 2020 |
||||||||||||||||||||
Americas |
EMEA |
APAC |
Corporate/Other |
Total |
||||||||||||||||
Segment assets (1) |
$ |
$ |
$ |
$ |
— |
$ |
||||||||||||||
All other (2) |
||||||||||||||||||||
|
|
|||||||||||||||||||
Total assets |
$ |
|||||||||||||||||||
|
|
(1) |
Inventory is the only segment asset reviewed by the CODM. |
(2) |
“All other” consists of assets that are not reviewed by the CODM at a segment level: cash and cash equivalents; accounts receivable; prepaid expenses and other current assets; property, equipment and leasehold improvements, net; operating lease right-of-use |
Three Months Ended June 30, |
Nine Months Ended June 30, |
|||||||||||||||
(in thousands, except unit and per unit data) |
2021 |
2020 |
2021 |
2020 |
||||||||||||
Net income |
$ |
$ |
$ |
$ |
||||||||||||
Less: Net earnings allocated to participating securities |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income attributable to common members |
$ |
$ |
$ |
$ |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Units used in computation: |
||||||||||||||||
Basic and diluted weighted-average common units outstanding (1) |
||||||||||||||||
Basic and diluted net income per common unit |
$ |
$ |
$ |
$ |
(1) |
Amount excludes |
• |
Weber Merger Sub, LLC (“Weber Merger Sub”), a subsidiary of Weber Inc. formed in April 2021, merged with and into BDT WSP Blocker, LLC (“Blocker”), an entity controlled by BDT Capital Partners, LLC, our sponsor, with Blocker surviving the merger. As a result, (i) the Blocker equityholders received Class A common stock of Weber Inc. in exchange for their equity interests in Blocker, (ii) the nominal shares of Weber Inc. held by Weber-Stephen Products LLC were canceled for no consideration (because Weber Inc. was originally formed as a subsidiary of Weber-Stephen Products LLC) and (iii) Weber Inc. became wholly owned by the former Blocker equityholders; |
• |
Blocker then merged with and into Weber Inc., with Weber Inc. surviving the merger. Weber Inc.’s certificate of incorporation was amended to authorize the issuance of two classes of common stock: Class A common stock and Class B common stock, which we refer to collectively as our “common stock.” Each share of Class A common stock and Class B common stock will entitle its holder to one vote per share on all matters submitted to a vote of our stockholders; |
• | WSP Merger Sub, a subsidiary of WSP Intermediate formed in April 2021, merged with and into Weber-Stephen Products LLC, with Weber-Stephen Products LLC surviving the merger. As a result, (i) the Pre-IPO LLC Members received non-voting common interest units (the “LLC Units”) in Weber HoldCo LLC in exchange for all of their equity interests in Weber-Stephen Products LLC, (ii) Weber-Stephen Management Pool LLC received LLC Units in exchange for all equity interest that it holds in Weber-Stephen Products LLC and profits interests in Weber HoldCo LLC with terms substantially similar to the terms of the profits interests that it holds in Weber-Stephen Products LLC and (iii) Weber-Stephen Products LLC became a wholly owned subsidiary of Weber HoldCo LLC; |
• |
an amended limited liability company operating agreement (“Amended LLC Agreement”) was adopted for Weber HoldCo LLC making Weber Inc. the sole managing member of Weber HoldCo LLC; |
• |
Pre-IPO Pre-IPO |
• |
Weber Inc. issued |
• |
Weber Inc. entered into a tax receivable agreement with the Pre-IPO |
Three Months Ended June 30, |
Nine Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
(Dollars in thousands) |
||||||||||||||||
Income from operations |
$ |
36,107 |
$ |
98,155 |
$ |
156,969 |
$ |
154,541 |
||||||||
Adjustments: |
||||||||||||||||
Foreign currency gain (loss) (1) |
3,758 | 1,210 | 3,772 | (4,823 | ) | |||||||||||
Non-cash stock compensation / LTIP and profits interest expense(2) |
61,714 | 975 | 94,193 | 1,867 | ||||||||||||
Business transformation costs (3) |
6,572 | 2,776 | 9,496 | 6,367 | ||||||||||||
Operational transformation costs (4) |
5,027 | 2,526 | 10,853 | 3,920 | ||||||||||||
Debt refinancing and IPO costs (5) |
8,954 | — | 12,660 | — | ||||||||||||
COVID-19 costs(6) |
68 | 6,305 | 548 | 8,356 | ||||||||||||
Gain on disposal of assets held for sale |
— | — | (5,185 | ) | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted income from operations |
$ |
122,200 |
$ |
111,947 |
$ |
283,306 |
$ |
170,228 |
||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income |
$ |
17,825 |
$ |
79,455 |
$ |
91,620 |
$ |
103,062 |
||||||||
Adjustments: |
||||||||||||||||
Non-cash stock compensation / LTIP and profits interest expense(2) |
61,714 | 975 | 94,193 | 1,867 | ||||||||||||
Business transformation costs (3) |
6,572 | 2,776 | 9,496 | 6,367 | ||||||||||||
Operational transformation costs (4) |
5,027 | 2,526 | 10,853 | 3,920 | ||||||||||||
Debt refinancing and IPO costs (5) |
8,954 | — | 12,660 | — | ||||||||||||
COVID-19 costs(6) |
68 | 6,305 | 548 | 8,356 | ||||||||||||
Loss from early extinguishment of debt |
— | — | 5,448 | — | ||||||||||||
Gain on disposal of assets held for sale |
— | — | (5,185 | ) | — | |||||||||||
Tax impact of adjusting items |
(15,118 | ) | (1,211 | ) | (23,523 | ) | (2,154 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted net income |
$ |
85,042 |
$ |
90,826 |
$ |
196,110 |
$ |
121,418 |
||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income |
$ |
17,825 |
$ |
79,455 |
$ |
91,620 |
$ |
103,062 |
||||||||
Adjustments: |
||||||||||||||||
Interest expense, net |
18,031 | 10,584 | 49,780 | 30,994 | ||||||||||||
Income tax expense |
4,009 | 8,548 | 19,398 | 12,106 | ||||||||||||
Depreciation and amortization |
12,079 | 10,454 | 32,407 | 31,926 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
EBITDA |
$ |
51,944 |
$ |
109,041 |
$ |
193,205 |
$ |
178,088 |
||||||||
Non-cash stock compensation / LTIP and profits interest expense(2) |
61,714 | 975 | 94,193 | 1,867 | ||||||||||||
Business transformation costs (3) |
6,572 | 2,776 | 9,496 | 6,367 | ||||||||||||
Operational transformation costs (4) |
5,027 | 2,526 | 10,853 | 3,920 | ||||||||||||
Debt refinancing and IPO costs (5) |
8,954 | — | 12,660 | — | ||||||||||||
COVID-19 costs(6) |
68 | 6,305 | 548 | 8,356 | ||||||||||||
Loss from early extinguishment of debt |
— | — | 5,448 | — | ||||||||||||
Gain on disposal of assets held for sale |
— | — | (5,185 | ) | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted EBITDA |
$ |
134,279 |
$ |
121,623 |
$ |
321,218 |
$ |
198,598 |
||||||||
|
|
|
|
|
|
|
|
(1) | Adjusted income from operations includes foreign currency gain (loss) in order to align adjusted income from operations with Adjusted EBITDA, with the exception of depreciation and amortization and loss (gain) from investments in unconsolidated affiliates. |
(2) | Our financial results reflect an increase in other long-term liabilities related to an increase in the value of our LTIP and profits interest units as well as a change in accounting methodology from the intrinsic value method to the fair value method during the second quarter of Fiscal Year 2021. These changes resulted in selling, general and administrative expense of approximately $62 million and $94 million for the three and nine months ended June 30, 2021, respectively. |
(3) | “Business transformation costs” are defined as costs incurred to implement the leadership team’s plans to transition the organization to the future operating structure. These costs include major business transformation initiatives that require severance or other costs to transition to a new operating model. |
(4) | “Operational transformation costs” are defined as restructuring and transformation initiatives related to major supply chain, operational moves and startups that are designed to enable future productivity. These costs also include significant systems integration costs, as well was plant shutdown and closure costs that will drive future efficiencies. |
(5) | “Debt refinancing and IPO costs” are defined as certain non-capitalizable costs from the refinancing of the Company’s term loan and costs related to the initial public offering. |
(6) | During the nine months ended June 30, 2021 and 2020, the Company incurred a number of significant costs related to the global COVID-19 pandemic. These non-recurring costs included plant shutdown costs, the impact of enhanced employee safety and social distancing protocols as well as overtime and expedited freight costs to fulfill significant unexpected demand increases driven by stay-at-home |
Three Months Ended June 30, |
$ Variance Increase/ (Decrease) |
% Variance Increase/ (Decrease) |
||||||||||||||
(Dollars in thousands) |
2021 |
2020 |
||||||||||||||
Net sales |
$ | 668,867 | $ | 560,793 | $ | 108,074 | 19% | |||||||||
Cost of goods sold (1)(2) |
369,776 | 329,115 | 40,661 | 12% | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
299,091 | 231,678 | 67,413 | 29% | ||||||||||||
Operating expenses: |
||||||||||||||||
Selling, general and administrative (1)(2) |
257,758 | 130,333 | 127,425 | 98% | ||||||||||||
Amortization of intangible assets |
5,226 | 3,190 | 2,036 | 64% | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income from operations |
36,107 | 98,155 | (62,048 | ) | (64%) | |||||||||||
Foreign currency gain |
(3,758 | ) | (1,210 | ) | (2,548 | ) | N/M (4) |
|||||||||
Interest income |
(252 | ) | (311 | ) | 59 | (19%) | ||||||||||
Interest expense |
18,283 | 10,895 | 7,388 | 68% | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income before taxes |
21,834 | 88,781 | (66,947 | ) | (75%) | |||||||||||
Income tax expense |
4,009 | 8,548 | |
(4,539 |
) |
(53%) | ||||||||||
Loss from investments in unconsolidated affiliates |
— | 778 | (778 | ) | N/M (4) |
|||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income |
$ | 17,825 | $ | 79,455 | $ | (61,630 | ) | (78%) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted income from operations (3) |
$ | 122,200 | $ | 111,947 | $ | 10,253 | 9% | |||||||||
Adjusted net income (3) |
$ | 85,042 | $ | 90,826 | $ | (5,784 | ) | (6%) | ||||||||
EBITDA (3) |
$ | 51,944 | $ | 109,041 | $ | (57,097 | ) | (52%) | ||||||||
Adjusted EBITDA (3) |
$ | 134,279 | $ | 121,623 | $ | 12,656 | 10% |
(1) | Amounts include unit based compensation as follows: |
Three Months Ended June 30, |
||||||||
2021 |
2020 |
|||||||
(dollars in thousands) |
||||||||
Cost of goods sold |
$ | 504 | $ | 148 | ||||
Selling, general and administrative |
61,210 | 827 | ||||||
|
|
|
|
|||||
Total unit based compensation |
$ | 61,714 | $ | 975 | ||||
|
|
|
|
(2) | Amount includes depreciation expense as follows: |
Three Months Ended June 30, |
||||||||
2021 |
2020 |
|||||||
(dollars in thousands) |
||||||||
Cost of goods sold |
$ | 3,354 | $ | 3,945 | ||||
Selling, general and administrative |
3,499 | 3,319 | ||||||
|
|
|
|
|||||
Total depreciation expense |
$ | 6,853 | $ | 7,264 | ||||
|
|
|
|
(3) | See the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Measures.” |
(4) | “N/M” indicates that variance as a percentage is not meaningful. |
Three Months Ended June 30, |
||||||||
2021 |
2020 |
|||||||
Net sales |
100.0 | % | 100.0 | % | ||||
Cost of goods sold |
55.3 | % | 58.7 | % | ||||
Gross margin |
44.7 | % | 41.3 | % | ||||
Operating expenses: |
||||||||
Selling, general and administrative |
38.5 | % | 23.2 | % | ||||
Amortization of intangible assets |
0.8 | % | 0.6 | % | ||||
Income from operations |
5.4 | % | 17.5 | % | ||||
Foreign currency gain |
(0.6 | %) | (0.2 | %) | ||||
Interest income |
0.0 | % | (0.1 | %) | ||||
Interest expense |
2.7 | % | 1.9 | % | ||||
Income before taxes |
3.3 | % | 15.8 | % | ||||
Income tax expense |
0.6 | % | 1.5 | % | ||||
Loss from investments in unconsolidated affiliates |
0.0 | % | 0.1 | % | ||||
Net income |
2.7 | % | 14.2 | % | ||||
Adjusted income from operations |
18.3 | % | 20.0 | % | ||||
Adjusted net income |
12.7 | % | 16.2 | % | ||||
EBITDA |
7.8 | % | 19.4 | % | ||||
Adjusted EBITDA |
20.1 | % | 21.7 | % |
Three Months Ended June 30, |
$ Variance Increase/ (Decrease) |
% Variance Increase/ (Decrease) |
||||||||||||||
(Dollars in thousands) |
2021 |
2020 |
||||||||||||||
Americas |
$ | 339,441 | $ | 315,053 | $ | 24,388 | 8% | |||||||||
EMEA |
306,668 | 227,552 | 79,116 | 35% | ||||||||||||
APAC |
22,758 | 18,188 | 4,570 | 25% | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total net sales |
$ | 668,867 | $ | 560,793 | $ | 108,074 | 19% | |||||||||
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
$ Variance Increase/ (Decrease) |
% Variance Increase/ (Decrease) |
||||||||||||||
(Dollars in thousands) |
2021 |
2020 |
||||||||||||||
Americas |
$ | 61,206 | $ | 70,153 | $ | (8,947 | ) | (13%) | ||||||||
EMEA |
108,380 | 79,447 | 28,933 | 36% | ||||||||||||
APAC |
1,989 | 3,490 | (1,501 | ) | (43%) |
Three Months Ended June 30, |
||||||||
2021 |
2020 |
|||||||
(Dollars in thousands) |
||||||||
Segment adjusted income from operations |
||||||||
Americas |
$ | 61,206 | $ | 70,153 | ||||
EMEA |
108,380 | 79,447 | ||||||
APAC |
1,989 | 3,490 | ||||||
|
|
|
|
|||||
Segment adjusted income from operations for reportable segments |
171,575 | 153,090 | ||||||
Corporate and supply chain costs |
(49,375 | ) | (41,143 | ) | ||||
Foreign currency (gain) (1) |
(3,758 | ) | (1,210 | ) | ||||
Non-cash stock compensation / LTIP expense(1) |
(61,714 | ) | (975 | ) | ||||
Business transformation costs (1) |
(6,572 | ) | (2,776 | ) | ||||
Operational transformation costs (1) |
(5,027 | ) | (2,526 | ) | ||||
Debt refinancing and IPO costs (1) |
(8,954 | ) | — | |||||
COVID-19 costs(1) |
(68 | ) | (6,305 | ) | ||||
|
|
|
|
|||||
Income from operations |
$ | 36,107 | $ | 98,155 | ||||
|
|
|
|
(1) | See “Non-GAAP Measures—adjusted income from operations” for descriptions of reconciling items from income from operations to adjusted income from operations. |
(Dollars in thousands) |
Three Months Ended June 30, |
$ Variance Increase/ (Decrease) |
% Variance Increase/ (Decrease) |
|||||||||||||
2021 |
2020 |
|||||||||||||||
Total segment net sales |
$ | 339,441 | $ | 315,053 | $ | 24,388 | 8% | |||||||||
Segment adjusted income from operations |
$ | 61,206 | $ | 70,153 | $ | (8,947 | ) | (13%) |
(Dollars in thousands) |
Three Months Ended June 30, |
$ Variance Increase/ (Decrease) |
% Variance Increase/ (Decrease) |
|||||||||||||
2021 |
2020 |
|||||||||||||||
Total segment net sales |
$ | 306,668 | $ | 227,552 | $ | 79,116 | 35% | |||||||||
Segment adjusted income from operations |
$ | 108,380 | $ | 79,447 | $ | 28,933 | 36% |
(Dollars in thousands) |
Three Months Ended June 30, |
$ Variance Increase/ (Decrease) |
% Variance Increase/ (Decrease) |
|||||||||||||
2021 |
2020 |
|||||||||||||||
Total segment net sales |
$ | 22,758 | $ | 18,188 | $ | 4,570 | 25% | |||||||||
Segment adjusted income from operations |
$ | 1,989 | $ | 3,490 | $ | (1,501 | ) | (43%) |
(Dollars in thousands) |
Nine Months Ended June 30, |
$ Variance Increase/ (Decrease) |
% Variance Increase/ (Decrease) |
|||||||||||||
2021 |
2020 |
|||||||||||||||
Net sales |
$ | 1,632,176 | $ | 1,157,169 | $ | 475,007 | 41% | |||||||||
Cost of goods sold (1)(2) |
912,558 | 687,532 | 225,026 | 33% | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
719,618 | 469,637 | 249,981 | 53% | ||||||||||||
Operating expenses: |
||||||||||||||||
Selling, general and administrative (1)(2) |
555,744 | 305,051 | 250,693 | 82% | ||||||||||||
Amortization of intangible assets |
12,090 | 10,045 | 2,045 | 20% | ||||||||||||
Gain on disposal of assets held for sale |
(5,185 | ) | – | (5,185 | ) | N/M (4) |
||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income from operations |
156,969 | 154,541 | 2,428 | 2% | ||||||||||||
Foreign currency (gain) loss |
(3,772 | ) | 4,823 | (8,595 | ) | N/M (4) |
||||||||||
Interest income |
(677 | ) | (1,012 | ) | 335 | (33%) | ||||||||||
Interest expense |
50,457 | 32,006 | 18,451 | 58% | ||||||||||||
Loss from early extinguishment of debt |
5,448 | – | 5,448 | N/M (4) |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income before taxes |
105,513 | 118,724 | (13,211 | ) | (11%) | |||||||||||
Income tax expense |
19,398 | 12,106 | 7,292 | 60% | ||||||||||||
(Gain) loss from investments in unconsolidated affiliates |
(5,505 | ) | 3,556 | (9,061 | ) | N/M (4) |
||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income |
$ | 91,620 | $ | 103,062 | $ | (11,442 | ) | (11%) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted income from operations (3) |
$ | 283,306 | $ | 170,228 | $ | 113,078 | 66% | |||||||||
Adjusted net income (3) |
$ | 196,110 | $ | 121,418 | $ | 74,692 | 62% | |||||||||
EBITDA (3) |
$ | 193,205 | $ | 178,088 | $ | 15,117 | 8% | |||||||||
Adjusted EBITDA (3) |
$ | 321,218 | $ | 198,598 | $ | 122,620 | 62% |
(1) | Amounts include unit based compensation as follows: |
Nine Months Ended June 30, |
||||||||
2021 |
2020 |
|||||||
(dollars in thousands) |
||||||||
Cost of goods sold |
$ | 783 | $ | 213 | ||||
Selling, general and administrative |
93,410 | 1,654 | ||||||
|
|
|
|
|||||
Total unit based compensation |
$ | 94,193 | $ | 1,867 | ||||
|
|
|
|
(2) | Amount includes depreciation expense as follows: |
Nine Months Ended June 30, |
||||||||
2021 |
2020 |
|||||||
(dollars in thousands) |
||||||||
Cost of goods sold |
$ | 9,810 | $ | 11,969 | ||||
Selling, general and administrative |
10,507 | 9,912 | ||||||
|
|
|
|
|||||
Total depreciation expense |
$ | 20,317 | $ | 21,881 | ||||
|
|
|
|
(3) | See the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Measures.” |
(4) | “N/M” indicates that variance as a percentage is not meaningful. |
Nine Months Ended June 30, |
||||||||
2021 |
2020 |
|||||||
Net sales |
100.0 | % | 100.0 | % | ||||
Cost of goods sold |
55.9 | % | 59.4 | % | ||||
Gross margin |
44.1 | % | 40.6 | % | ||||
Operating expenses: |
||||||||
Selling, general and administrative |
34.0 | % | 26.4 | % | ||||
Amortization of intangible assets |
0.7 | % | 0.9 | % | ||||
Gain on disposal of assets held for sale |
(0.3 | %) | – | |||||
Income from operations |
9.6 | % | 13.4 | % | ||||
Foreign currency (gain) loss |
(0.2 | %) | 0.4 | % | ||||
Interest income |
0.0 | % | (0.1 | %) | ||||
Interest expense |
3.1 | % | 2.8 | % | ||||
Loss from early extinguishment of debt |
0.3 | % | – | |||||
Income before taxes |
6.5 | % | 10.3 | % | ||||
Income tax expense |
1.2 | % | 1.0 | % | ||||
(Gain) loss from investments in unconsolidated affiliates |
(0.3 | %) | 0.3 | % | ||||
Net income |
5.6 | % | 8.9 | % | ||||
Adjusted income from operations |
17.4 | % | 14.7 | % | ||||
Adjusted net income |
12.0 | % | 10.5 | % | ||||
EBITDA |
11.8 | % | 15.4 | % | ||||
Adjusted EBITDA |
19.7 | % | 17.2 | % |
Nine Months Ended June 30, |
$ Variance Increase/ (Decrease) |
% Variance Increase/ (Decrease) |
||||||||||||||
(Dollars in thousands) |
2021 |
2020 |
||||||||||||||
Americas |
$ | 891,649 | $ | 649,913 | $ | 241,736 | 37% | |||||||||
EMEA |
617,995 | 434,755 | 183,240 | 42% | ||||||||||||
APAC |
122,532 | 72,501 | 50,031 | 69% | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total net sales |
$ | 1,632,176 | $ | 1,157,169 | $ | 475,007 | 41% | |||||||||
|
|
|
|
|
|
|
|
Nine Months Ended June 30, |
$ Variance Increase/ (Decrease) |
% Variance Increase/ (Decrease) |
||||||||||||||
(Dollars in thousands) |
2021 |
2021 |
||||||||||||||
Americas |
$ | 178,246 | $ | 139,082 | $ | 39,164 | 28% | |||||||||
EMEA |
206,516 | 125,187 | 81,329 | 65% | ||||||||||||
APAC |
28,963 | 15,778 | 13,185 | 84% |
Nine Months Ended June 30, |
||||||||
2021 |
2020 |
|||||||
(Dollars in thousands) |
||||||||
Segment adjusted income from operations |
||||||||
Americas |
$ | 178,246 | $ | 139,082 | ||||
EMEA |
206,516 | 125,187 | ||||||
APAC |
28,963 | 15,778 | ||||||
|
|
|
|
|||||
Segment adjusted income from operations for reportable segments |
413,725 | 280,047 | ||||||
Corporate and supply chain costs |
(130,419 | ) | (109,819 | ) | ||||
Foreign currency (gain) loss (1) |
(3,772 | ) | 4,823 | |||||
Non-cash stock compensation / LTIP expense(1) |
(94,193 | ) | (1,867 | ) | ||||
Business transformation costs (1) |
(9,496 | ) | (6,367 | ) | ||||
Operational transformation costs (1) |
(10,853 | ) | (3,920 | ) | ||||
Debt refinancing and IPO costs (1) |
(12,660 | ) | — | |||||
COVID-19 costs(1) |
(548 | ) | (8,356 | ) | ||||
Gain on disposal of assets held for sale |
5,185 | — | ||||||
|
|
|
|
|||||
Income from operations |
$ | 156,969 | $ | 154,541 | ||||
|
|
|
|
(1) | See “Non-GAAP Measures—adjusted income from operations” for descriptions of reconciling items from income from operations to adjusted income from operations. |
(Dollars in thousands) |
Nine Months Ended June 30, |
$ Variance Increase/ (Decrease) |
% Variance Increase/ (Decrease) |
|||||||||||||
2021 |
2020 |
|||||||||||||||
Total segment net sales |
$ | 891,649 | $ | 649,913 | $ | 241,736 | 37% | |||||||||
Segment adjusted income from operations |
178,246 | 139,082 | 39,164 | 28% |
(Dollars in thousands) |
Nine Months Ended June 30, |
$ Variance Increase/ (Decrease) |
% Variance Increase/ (Decrease) |
|||||||||||||
2021 |
2020 |
|||||||||||||||
Total segment net sales |
$ | 617,995 | $ | 434,755 | $ | 183,240 | 42% | |||||||||
Segment adjusted income from operations |
206,516 | 125,187 | 81,329 | 65% |
(Dollars in thousands) |
Nine Months Ended June 30, |
$ Variance Increase/ (Decrease) |
% Variance Increase/ (Decrease) |
|||||||||||||
2021 |
2020 |
|||||||||||||||
Total segment net sales |
$ | 122,532 | $ | 72,501 | $ | 50,031 | 69% | |||||||||
Segment adjusted income from operations |
28,963 | 15,778 | 13,185 | 84% |
Nine Months Ended June 30, |
||||||||
(Dollars in thousands) |
2021 |
2020 |
||||||
Net cash provided by operating activities |
$ | 74,460 | $ | 121,298 | ||||
Net cash used in investing activities |
(154,989 | ) | (16,144 | ) | ||||
Net cash provided by (used in) financing activities |
102,577 | (58,497 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents |
629 | 7,808 | ||||||
|
|
|
|
|||||
Net increase in cash and cash equivalents |
$ | 22,677 | $ | 54,465 | ||||
|
|
|
|
Exhibit No. |
Description | |
31.1* |
||
31.2* |
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1* |
Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
32.2* |
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101* |
The following financial statements from Weber Inc.’s Quarterly Report on Form 10-Q for the nine months ended June 30, 2021, filed with the Securities and Exchange Commission on September 16, 2021, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) the Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Statements of Comprehensive Income, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Cash Flows, (v) the Condensed Consolidated Statements of Changes in Members’ Equity (Deficit), and (vi) the Notes to Condensed Consolidated Financial Statements. | |
104** |
The cover page from Weber Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 formatted in iXBRL (Inline eXtensible Business Reporting Language) and contained in Exhibit 101. |
* | Filed herewith. |
** | Furnished herewith. |
Weber Inc. | ||
By: | /s/ Chris M. Scherzinger | |
Chris M. Scherzinger | ||
Chief Executive Officer (As Principal Executive Officer) | ||
By: | /s/ William J. Horton | |
William J. Horton | ||
Chief Financial Officer (As Principal Financial Officer) |