Swiss Water Decaffeinated Coffee Inc

OTC Pink - Current Information:SWSSFUnited StatesView on Canadian Exchange

Nov 5, 2024

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• *DJ Swiss Water Decaff Coffee 3Q Rev C$41.8M >SWP.T, from 6:05PM ET on Tuesday Nov 05, 2024 by Dow Jones

  6:05PM ET on Tuesday Nov 05, 2024 by Dow Jones
  Companies Mentioned: SWP

• -- Swiss Water Brief: Net loss Q3 $0.8 million compared to net loss of $0.4 million for the same period in 2023, from 6:04PM ET on Tuesday Nov 05, 2024 by MT Newswires

  6:04PM ET on Tuesday Nov 05, 2024 by MT Newswires
  Companies Mentioned: SWP
  06:04 PM EST, 11/05/2024 (MT Newswires) -- ...

• Swiss Water Reports Third Quarter Results, from 6:01PM ET on Tuesday Nov 05, 2024 by Dow Jones

  6:01PM ET on Tuesday Nov 05, 2024 by Dow Jones
  Companies Mentioned: SWP
  change in estimate, these assets had a carrying value of approximately $3.0 million. The financial impact of the change in estimate was a one-time incremental depreciation expense of $2.5 million for the nine months ended September 30, 2023. There was no such change in estimate during the comparable period this year, as Swiss Water had fully exited the Burnaby location in June 2023. -- Gross profit for the three and nine months ended September 30, 2024, was $6.4 million and $19.2 million respectively, which represents a $2.9 million increase for the quarter and a $7.3 million increase for the year-to-date, when compared to the same periods last year. The gross margin percentage was 15% for the quarter and 16% for the nine months, compared to 11% and 10% respectively for the same periods in 2023. The improvements were driven by higher processing volumes, cost savings associated with the consolidation of operations at one location, lower utility rates, and the $2.5 million decrease in one-time depreciation expense. These positive factors were partially offset by increased operating expenses associated with planned headcount and wage increases, higher professional fees, and increased stock-based compensation due to an increase in Swiss Water's share price. -- The Company recorded a net loss of $0.8 million for the third quarter and $0.7 million for the nine months, compared to net losses of $0.4 million and $1.5 million respectively for the same periods in 2023. Last year, the reported losses were largely due to additional one-time costs related to Swiss Water's exit from its legacy production facility in Burnaby. This year, despite a much improved gross margin, higher interest expenses on construction loans and increased mark-to-market losses on risk management activities offset much of the benefit. Non-cash losses on the revaluation of the Company's embedded option, and mark-to-market adjustments on stock-based compensation also impacted profitability. -- Adjusted EBITDA for the three and nine months ended September 30, 2024, was $2.2 million and $9.4 million respectively, which represents a $0.6 million increase for the quarter and a $1.1 million increase for the year-to-date, when compared to the same periods in 2023. The increase in adjusted EBITDA was primarily driven by the same factors influencing gross profit. These positive impacts were partially offset by higher operating expenses and increased losses on risk management activities as a result of the near record high coffee futures prices experienced this year. -- Subsequent to the end of the third quarter, on October 31, 2024, the Company fully repaid the debenture with warrants, which was due to Mill Road Capital ("MRC"). The total repayment of $15.9 million consisted of $15.0 million of principal and $0.9 million of accrued interest. Following this payment, all obligations, duties and responsibilities of the parties to the debenture were terminated. The maturity of the debenture did not affect the obligations of the Company or the rights of MRC under their existing warrant agreement.