Karat IPO Presentation Deck
VIE OVERVIEW
Year Ended December 31, 2020
($ in millions)
•
•
Net sales
Cost of goods sold
Gross profit
•
.
Operating expenses
Operating income
Rental income
Other income (expense)
Income (loss) before provision for income taxes
Add:
Interest
Depreciation and amortization
EBITDA
Karat
Packaging
$295.5
206.4
89.1
63.1
26.1
0.0
(3.3)
22.8
2.6
7.7
$33.1
Global Wells Eliminations Consolidated
0.0
0.0
0.0
2.0
(2.0)
3.9
(2.9)
(1.0)
CONFIDENTIAL
2.9
0.9
$2.8
0.0
0.0
0.0
(3.6)
3.6
(3.6)
0.1
0.1
0.0
0.0
$0.1
Global Wells was consolidated into Karat's financial statements for the period from March 23, 2018 under the risk and reward model of ASC Topic 810, Consolidation
$295.5
206.4
89.1
61.4
27.7
0.3
(6.1)
21.9
Commentary
Karat, Plutus, and two unrelated parties invested in Global Wells with the purpose of constructing the Rockwall, TX facility in 2018
In June 2020 we entered into 10 year commercial lease agreement with Global Wells with a $147,730 monthly lease payment for the Rockwall, TX facility
Subsequently Global Wells has been used as the vehicle to finance the purchase the Branchburg, NJ facility as well in 2020 and Karat has entered into an operating
lease to utilize that facility
In June 2020, Global Wells entered into a new term loan which provides advances up to $16,540,000 to fund the purchase of the Branchburg, NJ facility
We hold a 13.5% ownership interest and a 25% voting interest in Global Wells
Karat was deemed to have a controlling financial interest in Global Wells and is therefore the primary beneficiary of the entity
• As of December 31, 2020, the total loan guaranteed by Karat related to Global Wells amounted to $37,492,000
5.5
8.6
$36.0
Karat 25View entire presentation