XML 121 R108.htm IDEA: XBRL DOCUMENT v3.22.2.2
Segment Information
 9 Months Ended 12 Months Ended
Sep. 30, 2022
Dec. 31, 2021
Segment Information    
Segment Information

Note 18. Segment Information

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

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

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

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

Selected financial data related to our segments is presented below:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended September 30, 2022

​

    

​

​

    

Sustainable

    

​

​

    

Total of

​

​

Beverage

​

Sourcing &

​

Intersegment

​

Reportable

(Thousands)

​

Solutions

​

Traceability

​

Revenues

​

Segments

Net sales

​

$

173,486

​

$

62,809

​

$

(5,987)

​

$

230,308

​

​

​

​

​

​

​

​

​

​

​

​

​

Adjusted EBITDA

​

​

15,885

​

​

2,028

​

​

n/a

​

​

17,913

Less:

​

​

​

​

​

​

​

​

​

​

​

​

Interest expense

​

​

​

​

​

​

​

​

​

​

​

13,404

Income tax benefit

​

​

​

​

​

​

​

​

​

​

​

(428)

Depreciation and amortization

​

​

​

​

​

​

​

​

​

​

​

5,816

Acquisition, restructuring and integration expense

​

​

​

​

​

​

​

​

​

​

​

3,959

Change in fair value of warrants

​

​

​

​

​

​

​

​

​

​

​

5,215

Management and consulting fees (S&D Coffee, Inc. acquisition)

​

​

​

​

​

​

​

​

​

​

​

834

Equity-based compensation

​

​

​

​

​

​

​

​

​

​

​

705

Mark-to-market adjustments

​

​

​

​

​

​

​

​

​

​

​

543

Loss on disposal of property, plant and equipment

​

​

​

​

​

​

​

​

​

​

​

459

Other

​

​

​

​

​

​

​

​

​

​

​

424

Net loss

​

​

​

​

​

​

​

​

​

​

$

(13,018)

​

​

​

​

​

​

​

​

​

​

​

​

​

Total assets

​

​

638,160

​

​

111,928

​

​

n/a

​

​

750,088

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended September 30, 2021

​

    

​

​

    

Sustainable

    

​

​

    

Total of

​

​

Beverage

​

Sourcing &

​

Intersegment

​

Reportable

(Thousands)

​

Solutions

​

Traceability

​

Revenues

​

Segments

Net sales

​

$

138,838

​

$

47,529

​

$

(5,090)

​

$

181,277

​

​

​

​

​

​

​

​

​

​

​

​

​

Adjusted EBITDA

​

​

11,462

​

​

2,017

​

​

n/a

​

​

13,479

Less:

​

​

​

​

​

​

​

​

​

​

​

​

Interest expense

​

​

​

​

​

​

​

​

​

​

​

8,614

Income tax benefit

​

​

​

​

​

​

​

​

​

​

​

(796)

Depreciation and amortization

​

​

​

​

​

​

​

​

​

​

​

6,072

Acquisition, restructuring and integration expense

​

​

​

​

​

​

​

​

​

​

​

1,829

Management and consulting fees (S&D Coffee, Inc. acquisition)

​

​

​

​

​

​

​

​

​

​

​

1,591

Equity-based compensation

​

​

​

​

​

​

​

​

​

​

​

306

Mark-to-market adjustments

​

​

​

​

​

​

​

​

​

​

​

(4)

Gain on disposal of property, plant and equipment

​

​

​

​

​

​

​

​

​

​

​

(390)

Other

​

​

​

​

​

​

​

​

​

​

​

147

Net loss

​

​

​

​

​

​

​

​

​

​

$

(3,890)

​

​

​

​

​

​

​

​

​

​

​

​

​

Total assets

​

​

497,219

​

​

85,275

​

​

n/a

​

​

582,494

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Nine Months Ended September 30, 2022

​

    

​

​

    

Sustainable

    

​

​

    

Total of

​

​

Beverage

​

Sourcing &

​

Intersegment

​

Reportable

(Thousands)

​

Solutions

​

Traceability

​

Revenues

​

Segments

Net sales

​

$

492,712

​

$

169,041

​

$

(21,604)

​

$

640,149

​

​

​

​

​

​

​

​

​

​

​

​

​

Adjusted EBITDA

​

​

38,776

​

​

3,824

​

​

n/a

​

​

42,600

Less:

​

​

​

​

​

​

​

​

​

​

​

​

Interest expense

​

​

​

​

​

​

​

​

​

​

​

30,265

Income tax benefit

​

​

​

​

​

​

​

​

​

​

​

(3,511)

Depreciation and amortization

​

​

​

​

​

​

​

​

​

​

​

17,782

Acquisition, restructuring and integration expense

​

​

​

​

​

​

​

​

​

​

​

8,746

Change in fair value of warrants

​

​

​

​

​

​

​

​

​

​

​

5,215

Management and consulting fees (S&D Coffee, Inc. acquisition)

​

​

​

​

​

​

​

​

​

​

​

3,035

Equity-based compensation

​

​

​

​

​

​

​

​

​

​

​

1,184

Mark-to-market adjustments

​

​

​

​

​

​

​

​

​

​

​

793

Loss on disposal of property, plant and equipment

​

​

​

​

​

​

​

​

​

​

​

748

Other

​

​

​

​

​

​

​

​

​

​

​

1,885

Net loss

​

​

​

​

​

​

​

​

​

​

$

(23,542)

​

​

​

​

​

​

​

​

​

​

​

​

​

Total assets

​

​

638,160

​

​

111,928

​

​

n/a

​

​

750,088

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Nine Months Ended September 30, 2021

​

    

​

​

    

Sustainable

    

​

​

    

Total of

​

​

Beverage

​

Sourcing &

​

Intersegment

​

Reportable

(Thousands)

​

Solutions

​

Traceability

​

Revenues

​

Segments

Net sales

​

$

400,506

​

$

121,550

​

$

(14,304)

​

$

507,752

​

​

​

​

​

​

​

​

​

​

​

​

​

Adjusted EBITDA

​

​

29,924

​

​

3,047

​

​

n/a

​

​

32,971

Less:

​

​

​

​

​

​

​

​

​

​

​

​

Interest expense

​

​

​

​

​

​

​

​

​

​

​

24,283

Income tax benefit

​

​

​

​

​

​

​

​

​

​

​

(2,239)

Depreciation and amortization

​

​

​

​

​

​

​

​

​

​

​

18,386

Acquisition, restructuring and integration expense

​

​

​

​

​

​

​

​

​

​

​

3,772

Management and consulting fees (S&D Coffee, Inc. acquisition)

​

​

​

​

​

​

​

​

​

​

​

4,791

Equity-based compensation

​

​

​

​

​

​

​

​

​

​

​

918

Mark-to-market adjustments

​

​

​

​

​

​

​

​

​

​

​

(1,979)

Gain on disposal of property, plant and equipment

​

​

​

​

​

​

​

​

​

​

​

(147)

Other

​

​

​

​

​

​

​

​

​

​

​

1,268

Net loss

​

​

​

​

​

​

​

​

​

​

$

(16,082)

​

​

​

​

​

​

​

​

​

​

​

​

​

Total assets

​

​

497,219

​

​

85,275

​

​

n/a

​

​

582,494

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended September 30, 

​

Nine Months Ended September 30, 

(Thousands)

    

2022

    

2021

    

2022

    

2021

United States

​

$

181,789

​

$

146,642

​

$

515,742

​

$

423,524

All other countries

​

​

48,519

​

​

34,635

​

​

124,407

​

​

84,228

Net sales

​

$

230,308

​

$

181,277

​

$

640,149

​

$

507,752

​

Note 18. Segment Information

Beginning in the fourth quarter of 2021, management, including our chief executive officer, who is our chief operating decision maker, manages our business in two operating segments.

Beverage Solutions: Reflects sales of our value-added beverage solutions, including coffee, tea, juices, flavors, extracts and ingredients. We provide products in a variety of packaging, including branded and private label coffee in bags, fractional packs, and single serve cups, as well as extract solutions to be used in products such as cold brew and ready-to-drink offerings. Currently we serve customers in the United States, Europe and Asia, through foodservice (limited and quick-serve restaurants and food distributors), retail, hospitality, as well as convenience stores distribution channels.

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

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

Selected financial data related to our segments is presented below:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 2021

​

    

​

​

    

Sustainable

    

​

​

    

Total of

​

​

Beverage

​

Sourcing &

​

Intersegment

​

Reportable

(Thousands)

​

Solutions

​

Traceability

​

Revenues

​

Segments

Revenues

​

$

551,013

​

$

170,035

​

$

(22,904)

​

$

698,144

​

​

​

​

​

​

​

​

​

​

​

​

​

Adjusted EBITDA

​

​

41,468

​

​

5,706

​

​

n/a

​

​

47,174

Less:

​

​

​

​

​

​

​

​

​

​

​

​

Interest expense, net

​

​

​

​

​

​

​

​

​

​

​

32,549

Income tax benefit

​

​

​

​

​

​

​

​

​

​

​

(3,368)

Depreciation and amortization

​

​

​

​

​

​

​

​

​

​

​

25,501

Acquisition, restructuring and integration expense

​

​

​

​

​

​

​

​

​

​

​

8,835

Management and consulting fees

​

​

​

​

​

​

​

​

​

​

​

6,382

Equity-based compensation

​

​

​

​

​

​

​

​

​

​

​

1,223

Mark-to-market adjustments

​

​

​

​

​

​

​

​

​

​

​

(3,585)

Loss on disposal of property, plant and equipment

​

​

​

​

​

​

​

​

​

​

​

243

Other

​

​

​

​

​

​

​

​

​

​

​

702

Net loss

​

​

​

​

​

​

​

​

​

​

$

(21,308)

​

​

​

​

​

​

​

​

​

​

​

​

​

Capital expenditures

​

$

22,665

​

$

614

​

​

n/a

​

$

23,279

Total assets

​

​

510,751

​

​

82,269

​

​

n/a

​

​

593,020

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 2020

​

    

​

​

    

Sustainable

    

​

​

    

Total of

​

​

Beverage

​

Sourcing &

​

Intersegment

​

Reportable

(Thousands)

​

Solutions

​

Traceability

​

Revenues

​

Segments

Revenues

​

$

424,906

​

$

150,577

​

$

(24,637)

​

$

550,846

​

​

​

​

​

​

​

​

​

​

​

​

​

Adjusted EBITDA

​

​

28,802

​

​

4,793

​

​

n/a

​

​

33,595

Less:

​

​

​

​

​

​

​

​

​

​

​

​

Interest expense, net

​

​

​

​

​

​

​

​

​

​

​

25,229

Income tax benefit

​

​

​

​

​

​

​

​

​

​

​

(17,545)

Depreciation and amortization

​

​

​

​

​

​

​

​

​

​

​

23,838

Acquisition, restructuring and integration expense

​

​

​

​

​

​

​

​

​

​

​

22,355

Management and consulting fees

​

​

​

​

​

​

​

​

​

​

​

5,317

Equity-based compensation

​

​

​

​

​

​

​

​

​

​

​

1,553

Impairment charges

​

​

​

​

​

​

​

​

​

​

​

82,083

Inventory write-offs

​

​

​

​

​

​

​

​

​

​

​

5,432

Mark-to-market adjustments

​

​

​

​

​

​

​

​

​

​

​

(217)

Loss on disposal of property, plant and equipment

​

​

​

​

​

​

​

​

​

​

​

7,750

Other

​

​

​

​

​

​

​

​

​

​

​

6,665

Net loss

​

​

​

​

​

​

​

​

​

​

$

(128,865)

​

​

​

​

​

​

​

​

​

​

​

​

​

Capital expenditures

​

$

19,019

​

$

528

​

​

n/a

​

$

19,547

Total assets

​

​

488,577

​

​

59,563

​

​

n/a

​

​

548,140

​

Approximately 97% of our long-lived assets were located in the United States as of December 31, 2021.

​

The following table presents revenue information by geographic area:

​

​

​

​

​

​

​

​

​

​

Year Ended December 31,

(Thousands)

    

2021

    

2020

Revenues:(1)

​

​

​

​

​

​

United States

​

$

583,011

​

$

445,210

All other countries

​

​

115,133

​

​

105,636

Total

​

$

698,144

​

$

550,846

(1)Revenues are attributed to countries based on the invoice location of the customer.