Reed's Inc (NASDAQ:REED) Q2 2020 Earnings Conference Call - Final Transcript

Aug 10, 2020 • 04:30 pm ET

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Reed's Inc (NASDAQ:REED) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon, and welcome to Reed's Second Quarter Fiscal 2020 Earnings Conference Call for the period ending on June 30, 2020. My name is Laura, and I will be your conference call operator today. Today's call is limited to 1 hour and will have prepared remarks from Mr. Norm Snyder, Reed's Chief Executive Officer; and Mr. Tom Spisak, Reed's Chief Financial Officer. Following management's remarks, they will take your questions. Before we begin today's call, I have a safe harbor statement to read to our listeners. I would like to remind our listeners that this call, management's remarks may contain forward-looking statements and that management may make additional forward-looking statements in response to your questions. Forward-looking statements are only current predictions and are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from those anticipated by such statements. These factors include, but are not limited to, the company's ability to manage growth, manage debt and meet development goals; reduction in demand for our products; dependence on third-party manufacturers and distributors; changes in competitive environment; access to capital; and other information detailed from time to time in our filings with the United States Securities and Exchange Commission. Although we believe that the expectations reflected in forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. In addition, any projections as to the company's future performance represents management's estimate as of today, August 10, 2020. We assume no obligation to update these projections in the future as market conditions change. Additionally, please note non-GAAP financial measures referenced during this call are reconciled to their comparable GAAP financial measures in the press release and supplemental materials filed with the SEC and as posted on our website at investor.reedsinc.com. Non-GAAP financial information is not meant as a substitute for GAAP results but is included solely for informational and comparative purposes. We present modified EBITDA because we believe it assists investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of core operating performance.

I would now like to turn the call over to Mr. Snyder. Please go ahead, sir.

Executive
Norman Snyder

Thank you, and good afternoon, everyone. We appreciate you joining us today. We hope that you are well and safe and adjusting to this unprecedented time in our history.

I'm very pleased to discuss our second quarter results, and we'll begin with four key messages. First, we are seeing strong demand across each of our core brands and all of our product lines. Second, the enhancements we have made over the last nine months to our supply chain, especially the build-out of our co-packer network and production redundancies are the real driver of our ability to operate effectively amid the challenges of the COVID-19 pandemic. Third, we continue to have significant distribution opportunities across our portfolio, and the recent new