Company to Host Conference Call at 5:00 pm ET Monday May 13, 2024 PORTLAND, Oregon, May 13, 2024 /PRNewswire/ -- Eastside Distilling, Inc. (NASDAQ:EAST) ("Eastside" or the "Company"), a consumer-focused beverage company that builds craft inspired experiential brands and high-quality artisanal products around premium spirits, digital can printing, co-packing and mobile filling, reported first quarter financial results for the period ended March 31, 2024. First Quarter 2024 Highlights: Craft digitally printed a quarter-record 4.8 million cans representing a +320% increase over the prior year Both operating segments made improvements in the quarter over the prior year excluding barrel sales at Spirits Company decreased operating costs over $0.6 million Financial Results Gross sales for the three months ending March 31, 2024 decreased to $2.5 million from $2.9 million for the three months ending March 31, 2023.  Higher digital printing sales were offset by lower mobile canning and spirits sales. Spirits sales fell due primarily to the Company's bulk sale of 250 barrels for gross proceeds of $0.6 million during the three months ended March 31, 2023. Gross profit for the three months ending March 31, 2024 decreased to $0.2 million from $0.6 million for the three months ending March 31, 2023. Consolidated gross margin was 8% and 22% for the three months ending March 31, 2024 and 2023, respectively. Craft C+P gross margin increased due to higher printed can volumes. Spirits gross margin decreased due to gross profit of $0.5 million from bulk sales of barrels during the three months ended March 31, 2023. Operating costs for the three months ending March 31, 2024 decreased to $0.2 million from $0.6 million for the three months ending March 31, 2023 primarily due to decreased headcount and lower professional fees and sponsorship costs. The Company continues its broad restructuring in spirits as it realigns investment focusing on the most profitable spirits brands and regions. Net loss for the three months ending March 31, 2024 decreased to $1.3 million from $1.6 million for the three months ending March 31, 2023. The Company reported improved EBITDA of $(0.7) million and $(0.9) million for the three months ending March 31, 2024 and 2023, respectively. Craft's EBITDA loss improved to $(0.3) million. Spirits reported EBITDA of $(0.1) million in the quarter.  (See description of EBITDA in "Use of Non-GAAP Measures" below.) The Company will give further updates on its earnings conference call. Use of Non-GAAP Measures Eastside Distilling's management evaluates and makes operating decisions using various financial metrics. In addition to the Company's GAAP results, management also considers the non-GAAP measure of adjusted EBITDA as a supplement to GAAP results. Management believes this non-GAAP measure provides useful information about the Company's operating results and assists investors in comparing the Company's performance across reporting periods on a consistent basis by excluding items that it does not believe are indicative of its core operating performance. The Company defines adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, stock-based compensation, and other one-time items. The final table below provides a reconciliation of this non-GAAP financial measure with the most directly comparable GAAP financial measure. First Quarter 2024 Conference Call Details Date and Time: Monday, May 13, 2024 at 5:00 pm ET Call-in Information: Interested parties can access the conference call by dialing (844) 889-4332 or (412) 717-9595. Live Webcast Information: Interested parties can access the conference call via a live Internet webcast, which is available in the Conference Calls section of the Company's website at https://www.eastsidedistilling.com/conference-calls. Replay: A teleconference replay of the call will be available for three days at (877) 344-7529 or (412) 317-0088, replay access code #10189029. A webcast replay will be available in the Conference Calls section of the Company's website at https://www.eastsidedistilling.com/conference-calls for 90 days. About Eastside Distilling Eastside Distilling, Inc. (NASDAQ:EAST) has been producing high-quality, award-winning craft spirits in Portland, Oregon since 2008. The Company is distinguished by its highly decorated product lineup that includes Azuñia Tequilas®, Burnside Whiskeys®, Hue-Hue Coffee Rum®, and Portland Potato Vodkas®. All Eastside spirits are crafted from natural ingredients for highest quality and taste. Eastside's Craft Canning + Printing subsidiary is one of the Northwest's leading independent mobile canning, co-packing and digital can printing businesses. Important Cautions Regarding Forward-Looking Statements Certain matters discussed in this press release may be forward-looking statements that reflect our expectations or anticipations rather than historical fact. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions, general competitive factors, the Company's ongoing financing requirements and ability to achieve financing, acceptance of the Company's products in the market, the Company's success in obtaining new customers, the Company's ability to execute its business model and strategic plans, and other risks and related information described from time to time in the Company's filings with the Securities and Exchange Commission ("SEC"). A detailed discussion of the most significant risks can be found in the "Risk Factors" section of the Company's Annual Report on Form 10-K. The Company assumes no obligation to update the cautionary information in this press release. Financial Summary Tables The following financial information should be read in conjunction with the audited financial statements and accompanying notes filed by the Company with the Securities and Exchange Commission on Form 10-K for the period ended December 31, 2023, which can be viewed at www.sec.gov and in the investor relations section of the Company's website at www.eastsidedistilling.com/investors.   Eastside Distilling, Inc. and Subsidiaries Consolidated Balance Sheets March 31, 2024 and December 31, 2023 Dollars in thousands, except share and per share March 31, 2024 December 31, 2023 (unaudited) Assets Current assets: Cash $ 336 $ 403 Trade receivables, net 673 559 Inventories 3,189 3,212 Prepaid expenses and other current assets 498 363 Total current assets 4,696 4,537 Property and equipment, net 4,571 4,768 Right-of-use assets 2,388 2,602 Intangible assets, net 4,902 5,005 Other assets, net 465 568 Total Assets $ 17,022 $ 17,480 Liabilities and Stockholders' Equity (Deficit) Current liabilities: Accounts payable $ 2,392 $ 2,076 Accrued liabilities 739 575 Deferred revenue 66 88 Current portion of secured credit facilities, related party 2,680 - Current portion of secured credit facilities, net of debt issuance costs 364 - Current portion of notes payable