First quarter 2022 operating results
significantly exceed last year’s results and drive momentum ahead
of planned business combination with Ackrell SPAC Partners I
Co.
Blackstone Products (“Blackstone” or the “Company”), an
innovative and design-driven company that is redefining the outdoor
cooking experience with griddle cooking appliances and accessories,
announced today certain financial results for its quarter ended
March 31, 2022. Blackstone also reiterates its guidance for its
fiscal year ending December 31, 2022.
“Despite a volatile and challenging environment, Blackstone
demonstrated strong performance in all of our key metrics during
the first quarter," said Founder and Chief Executive Officer, Roger
Dahle. "Blackstone's growth this quarter is a clear indication that
we are continuing to disrupt the industry as our griddles gain
market share. Customers love the experience of cooking on a
Blackstone, and we are excited about our upcoming product
introductions. We are confident in our ability to drive sustainable
long-term growth.”
First Quarter 2022 Financial Highlights
(Unaudited)
- Net Revenue increased 28% to approximately $128 million,
compared to $100 million in the first quarter of 2021.
- Gross Profit increased 31% to approximately $27 million,
compared to $21 million in the first quarter of 2021.
- Adjusted EBITDA increased 37% to approximately $19
million, compared to $14 million in the first quarter of 2021.
Recent Business
Highlights
- Blackstone is announcing international retail expansion in
Canada, Mexico, Australia, Saudi Arabia, and Israel.
- Blackstone launches new tabletop Pizza Oven at Walmart.
- Newsweek ranks Blackstone #1 in Flat Top Grills and Outdoor
Griddles and #2 in Gas Grills.
Full Year 2022 Guidance
The Company is reaffirming its 2022 guidance as previously
presented in its Investor Presentation available at
https://blackstoneproducts.com/pages/investor-relations.
For its fiscal year ending December 31, 2022, the Company’s
outlook for the following financial metrics remains unchanged vs.
prior outlook:
- Net Revenue of $608 million, representing estimated 26%
growth compared to 2021.
- Gross Profit of $132 million, representing estimated 35%
growth compared to 2021.
- Adjusted EBITDA of $81 million, representing estimated
15% growth compared to 2021.
Business Combination
On December 23, 2021, Blackstone announced it entered into a
definitive business combination agreement with Ackrell SPAC
Partners I Co. (“Ackrell”) (Nasdaq: ACKIU), a special purpose
acquisition company. Upon the closing of the business combination,
which is expected in the second quarter of 2022, the combined
company will be named Blackstone Products, Inc. Blackstone, which
had previously announced its intention to list on Nasdaq, intends
to transfer the listing of the common shares of the combined
company to the NYSE under the new ticker symbol, “BLKS.”
About Blackstone
Products
Blackstone Products, headquartered in Logan, UT, is
fundamentally redefining how people cook outdoors. The company
specializes in outdoor griddles which allow users to cook a wider
variety of foods faster and more often. Blackstone’s robust product
line features innovative and easy-to-use griddles, accessories, and
consumables that enhance outdoor cooking and make it more enjoyable
and accessible to all for every meal. Blackstone believes in
helping people create an experience with food that brings family
and friends together.
About Ackrell SPAC Partners I
Co.
Ackrell is a blank check company formed for the purpose of
effecting a merger, capital stock exchange, asset acquisition,
stock purchase, reorganization or similar business combination with
one or more businesses. While Ackrell may pursue an acquisition in
any business industry or sector, it intends to concentrate its
efforts on identifying businesses in the branded fast-moving
consumer goods industry.
Financial Information; Non-GAAP
Financial Measures
This press release includes financial information for the three
months ended March 31, 2022 and March 31, 2021, respectively. The
financial information for the three months ended March 31, 2022 and
the three months ended March 31, 2021 has been reviewed by the
Company’s auditors under the PCAOB standard but is unaudited.
In addition, this press release includes references to non-GAAP
financial measures, including Adjusted EBITDA. Such non-GAAP
measures should be considered only as supplemental to, and not as
superior to, financial measures prepared in accordance with GAAP.
The Company believes that these non-GAAP financial measures provide
useful information to management and investors regarding certain
financial and business trends relating to the Company’s financial
condition and results of operations. The Company believes that the
use of these non-GAAP financial measures provides an additional
tool for investors to use in evaluating actual and projected
operating results and trends in and in comparing the Company’s
financial measures with other similar companies, many of which
present similar non-GAAP financial measures to investors. The
principal limitation of these non-GAAP financial measures is that
they exclude significant expenses and other amounts that are
required by GAAP to be recorded in the Company’s financial
statements. In addition, they are subject to inherent limitations
as they reflect the exercise of judgments by management about which
expense and other amounts are excluded or included in determining
these non-GAAP financial measures. You should review the Company’s
audited financial statements included in the Form S-4 (as defined
below).
Additional Information and Where to
Find It
In connection with the proposed business combination, on
February 15, 2022, Blackstone Products, Inc. filed a registration
statement on Form S-4 (the “Form S-4”) with a proxy statement with
the Securities and Exchange Commission (the “SEC”), as amended by
Amendment No. 1 on April 13, 2022 and Amendment No. 2 on May 17,
2022. The Form S-4 contains information about the proposed
transaction and the respective businesses of Blackstone and
Ackrell. Ackrell will mail a final prospectus and definitive proxy
statement and other relevant documents after the SEC completes its
review. Ackrell stockholders are urged to read the preliminary
prospectus and proxy statement and any amendments thereto and the
final prospectus and definitive proxy statement in connection with
the solicitation of proxies for the special meeting to be held to
approve the proposed transaction, because these documents will
contain important information about Ackrell, Blackstone, and the
proposed transaction. The final prospectus and definitive proxy
statement will be mailed to stockholders of Ackrell as of a record
date to be established for voting on the proposed transaction.
Stockholders of Ackrell will also be able to obtain a free copy of
the proxy statement, as well as other filings containing
information about Ackrell, without charge, at the SEC’s website
(www.sec.gov) or by calling 1-800-SEC-0330. Copies of the proxy
statement and Ackrell’s other filings with the SEC can also be
obtained, without charge, by directing a request to:
info@ackrellspac.com or Ackrell SPAC Partners I Co., 2093
Philadelphia Pike #1968, Claymont, DE 19703. Additionally, all
documents filed with the SEC can be found on Ackrell’s website,
www.ackrellspac.com. The information contained in, or that can be
accessed through, Ackrell’s or the Company’s website is not
incorporated by reference in, and is not part of, this press
release.
No Offer or Solicitation
This press release does not constitute (i) a solicitation of a
proxy, consent, or authorization with respect to any securities or
in respect of the proposed business combination, or (ii) an offer
to sell or the solicitation of an offer to buy any securities, or a
solicitation of any vote or approval, nor shall there be any sale
of securities in any jurisdiction in which such offer,
solicitation, or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
No offering of securities shall be made except by means of a
prospectus meeting the requirements of the U.S. Securities Act.
Participants in the
Solicitation
Blackstone and Ackrell and their respective directors and
officers and other members of management and employees may be
deemed participants in the solicitation of proxies in connection
with the proposed business combination. Ackrell stockholders and
other interested persons may obtain, without charge, more detailed
information regarding directors and officers of Ackrell in
Ackrell’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2021, which was filed with the SEC on March 31, 2022.
Information regarding the persons who may, under SEC rules, be
deemed participants in the solicitation of proxies from Ackrell’s
stockholders in connection with the proposed business combination
is included in the Form S-4 and will be included in the definitive
proxy statement/prospectus that Ackrell intends to file with the
SEC and mail to its stockholders of record for voting on the
proposed transaction.
Caution Concerning Forward-Looking
Statements
Certain statements herein are “forward-looking statements” made
pursuant to the safe harbor provisions of the United States Private
Securities Litigation Reform Act of 1995. Actual results may differ
from their expectations, estimates, and projections and,
consequently, you should not rely on these forward-looking
statements as predictions of future events. For example,
projections of future net revenue, gross profit, gross margin,
Adjusted EBITDA and other metrics are forward-looking statements.
In some cases, you can identify forward-looking statements through
the use of words or phrases such as “may”, “should”, “could”,
“predict”, “potential”, “believe”, “will likely result”, “expect”,
“continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”,
“plan”, “projection”, “would” and “outlook”, or the negative
version of those words or phrases or other comparable words or
phrases of a future or forward-looking nature, but the absence of
such words does not mean that a statement is not forward-looking.
These forward-looking statements are not historical facts and are
based upon estimates and assumptions that, while considered
reasonable by Ackrell and its management, and the Company and its
management, as the case may be, are inherently uncertain. Factors
that may cause actual results to differ materially from current
expectations include, but are not limited to: (1) the occurrence of
any event, change or other circumstances that could give rise to
the termination of the business combination agreement and any
subsequent definitive agreements with respect to the proposed
business combination; (2) the outcome of any legal proceedings that
may be instituted against Ackrell, the Company, the combined
company or other following the announcement of the proposed
business combination and the business combination agreement with
respect thereto; (3) the inability to complete the proposed
business combination due to the failure to obtain approval of the
stockholders of Ackrell, to obtain financing to complete the
proposed business combination or to satisfy other conditions to
closing; (4) changes to the proposed structure of the proposed
business combination that may be required or appropriate as a
result of applicable laws or regulations or as a condition to
obtaining regulatory approval of the proposed business combination;
(5) the ability to meet stock exchange listing standards following
the consummation of the proposed business combination; (6) the risk
that the proposed business combination disrupts current plans and
operations of Ackrell or the Company as a result of the
announcement and consummation of the proposed business combination;
(7) the ability to recognize the anticipated benefits of the
proposed business combination, which may be affected by, among
other things, competition and the ability of the combined company
to grow and manage growth profitably, maintain relationships with
customers and retain its management and key employees; (8) costs
related to the proposed business combination; (9) changes in
applicable laws or regulations and delays in obtaining, adverse
conditions contained in, or the inability to obtain regulatory
approvals required to complete the proposed business combination;
(10) the Company’s estimates of expenses and profitability and
underlying assumptions with respect to stockholder redemptions and
purchase price and other adjustments; (11) the Company's inability
to increase outdoor cooking market penetration or expand the
categories for outdoor cooking; (12) the addressable market the
Company intends to target does not grow as expected; (13) increased
regulatory costs and compliance requirements in connection with any
international or product line expansion; (14) the Company's
inability to expand and diversify its supply chain; (15) the loss
of any key executives; (16) the loss of any relationships with key
retailers; (17) the loss of any relationships with key suppliers;
(18) the inability to protect the Company's patents and other
intellectual property; (19) lower than expected attachment rate and
cross-selling capabilities for new products; (20) new technologies
that compete with the Company in the griddle market and other
outdoor cooking markets; (21) the inability to increase engagement
with end-users via social media or other digital channels; (22)
fluctuations in sales of the Company’s major customers; (23) the
Company’s ability to execute its business plans and strategy; (24)
the Company’s ability to maintain sufficient inventory and meet
customer demand; (25) the Company’s inability to deliver expected
cost and manufacturing efficiencies; and (26) other risks and
uncertainties indicated from time to time in the Form S-4 and other
documents filed or to be filed with the SEC by Blackstone Products,
Inc. and Ackrell.
CONSOLIDATED STATEMENT OF
OPERATIONS
(Unaudited)
Quarter Ended March 31, ($ in thousands)
2022
2021
Revenue, net
$128,334
$100,302
Cost of goods sold
100,850
79,267
Gross profit
27,484
21,035
Operating expenses Sales and marketing
4,913
3,960
General and administrative
4,821
2,720
Research and development
1,137
615
Total operating expenses
10,871
7,295
Income from operations
16,613
13,740
Interest expense, net
(2,484
)
(265
)
Other income (expense), net
1,492
(11
)
Income before income tax
15,621
13,464
Income tax expense
(2,958
)
(2,109
)
Net income
$12,663
$11,355
ADJUSTED EBITDA
RECONCILIATION
Quarter Ended March 31, ($ in thousands)
2022
2021
Revenue, net
$128,334
$100,302
Gross profit
27,484
21,035
Adjusted EBITDA reconciliation: Net income
$12,663
$11,355
Add (deduct): Net interest expense
(2,484
)
(265
)
Income tax expense
(2,958
)
(2,109
)
Depreciation and amortization
776
205
EBITDA
7,997
9,186
Business transformation fees
1,753
42
Non-operating (income)/expenses
(1,492
)
11
Adjusted EBITDA
$19,142
$13,987
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