Question #3 - Using the Blue Apron financial statements 100, provide the following (SHOW THE CALCULATION. IF MISSING NO CREDIT): 3a. Revenue for the three months ending March 31st 2020 and 2019 3b. Gross profit for the three months ending March 31st 2020 and 2019 3c. Cost of sales as a percentage of revenues for the three months ending March 31st 2020 and 2019 3d. Net income (loss) for the three months ending March 31st 2020 and 2019 3e. Net income as a % of revenue for the three months ending March 31st 2020 and 2019 3f. $ and % change from 2019 and 2020 for gross profit (% should be to the tenth e.g. 32.2%) 3g . $ and % change from 2019 to 2020 for revenues 3h.$ % change from 2019 to 2020 for net income/loss PARTI FINANCIAL INFORMATION LA APRON HOLEN, INC. da per dare date CURRENT ASSETS A. 74 Papatys, TOTAL ASSETS LIABILITIES AND STOCKHOLDERS BOEITY DEFICIT CERINTEIS 1 TOTAL.LIARITES Com STOCKHOLDERSHORITY CRICI Class Amma ock, parla con Class commodo di Madhe dhe Comprar Mucho, en el March 2009 December 2010 TOTAL CLIENTI TOALLILITES AND STOCKERSKOLETY DOM BLEKAPRONINGEN 5. HH RE Bewer lifikasi - M Three Months Ended March 2020 2019 (In thousands) S Reconciliation of net income (loss) to adjusted EBITDA Net income (loss) Share-based compensation Depreciation and amortization Other operating expense Interest (income) expense, net Provision (benefit) for income taxes Adjusted EBITDA (20,145) S 2,240 6,753 3,198 2.155 9 (5,790) (5,275) 2,835 8,604 230 2,232 13 8.639 Reconciliation of net cash from (used in operating netivities to free cash flow Net cash from (used in) operating activities Purchases of property and equipment Free cash flow Three Months Ended March 2020 (In thousands) (12,604) $ 5,138 (1,611) (1.734) (14,215) 3,404 The Marketing experienced by 568 million, 5150 million for the three monde Mach 1.20m $12 million for the months ended March 2019. The increase reviews and repaid channels Asaprotage of overged for the three mended Much 31.30 from 10.06 for the three del Mash 1.2009. This increasa perfect included inre of 300 bis in celine paid channels, an inore of 350 basis points in the paid che, perilly offer by decrease of 70 basis potes in our customeidenal program primarily driven by a decrease in the mis of customer cicletesen werden Product Rockologs, General and Administratie 3421 2165 Product, there and ente expendered by 549 million, 135.605342 million for the hehended March 31, 2008. Both the ended March 31, 2018. This doe was primarily de 30 milioni personales primarily driven bywer headcount in cute and other magia dece of milice in poste avec and distincts, which includes a decrease of 0.8 milie in payment processing feesdriven by lower and . de amicifcities for prices and medico Asperge of powered basis 33% for the three months ended March 31, from 27s for the three meended Much 31,289 diven by expenses incurred to support our business and execute key businesses beway 2000, we assumed the planned close of our Arlington, Texas utilisent center and the commodidation of productie volume Alington, Team falliment center for Linden. No one and Richmond Comifition cmten. As a welcomed charges of approximately 1 milion, including 574 lichinchas vedioemplete pe primul v pons, and 50 milie other items. In addition, we expect to copy 8.6 millions of the cut ces, all of which are expected to in cash expenditures in the cond quarter of 230. We expect al saving of approximately 30 miliebeganning in the second quartered 2016 la de Depreciation Depreciation and antication donned by us 2 million for the three months anded March 1 200 from milline for the three monded March 1, 2009 This doma was primarily driven by lower mas well as charges and so ogledat. Asaprotaw, dopractice and american ined for the ones ended Murda 33800 om freemets del March 2014 Other persing expense for the three monded March 31, 2020 and 2019 532 min 50 milice, respectively. Other operating expense for the theme ended March 31, 20 en charge of Ski millierelated to the planned Arlington facility comenced in chay 30, including 57 million of non-comment charges enke lived, 0.6 mln employecto es, primarily comesting of severance payment and I will the in March 200. Other operating expeme for the three months ended March 31, 2017 includes $0.2 milli maplected pemesi vec preting to the Arlington facilidad y Income Table of Contents The following table sets forth our consolidated statements of operations data as a percentage of net revenue for each of the periods indicated Three Months Ended March 2020 2019 100.0 % 100.0% 59.5% 148% 58.3% 100% 276% Net revenue Operating expenses Cost of goods sold, excluding depreciation and amortization Marketing Product, technology, general and administrative Depreciation and amortization Other operating expense Total operating expenses Income (loss) from operations Interest income (expense), net Income (loss) before income taxes Benefit (provision) for income taxes Net income (loss) 6.6% 3.1% 117.7% (17.77% (2.119 (19.87% (0.01% (19.8% 02% 102.1% (2.1) (1.6% (3.71 (0.01% (3.7% Three Months Ended March 31, 2020 Compared to Three Months Ended Merch 31,2019 Net Revenue Three Months anded March 31. Chao la thousands Net revenue 101.857 $ 141.890 (28)% Net revenue decreased by S40.0 million, or 28%, to $101.9 million for the three months ended March 31, 2020 from $141.9 million for the three months ended March 31, 2019. The decrease in net revenue was primarily due to a decrease in Customers during the three months ended March 31, 2020 as we deliberately reduced marketing spend in prior periods while we continue to strategically invest in the marketing channels we believe to be the most efficient and target consumers that we believe will exhibit higher affinity and retention. Operating Expenses Cast of Goods Sold, excluding Depreciation and Amortization Three Months Eaded March 2019 Change la thousands) Cost of goods sold, excluding depreciation and amortization $ 60,638 $ 82,704 (27)% % of net revenue 5959 38.3% Cost of goods sold, excluding depreciation and amortization, decreased by $22.1 million, or 27% to 560.6 million for the three months ended March 31, 2020 from $82.7 million for the three months ended March 31, 2019. This decrease was primarily driven by a decrease in Orders. As a percentage of net revenue, cost of goods sold, excluding depreciation and amortization, increased to 59.5% for the three months ended March 31, 2020 from 58,3% for the three months ended March 31. 2019. The increase in cost of goods sold, excluding depreciation and amortization, as a percentage of net revenue, was primarily due to 28 PARTICIPATION la card pada AMES CURRENT ASSETS Mund the TOTALANES LIABILITIES AND STOCKHOLM 5 me and the SI herm TOTAL LIABILITIES STOCKHOLDERS' EQUITY DEKID wwwdorhome Clasele March And Accommodation TOTAL SOCKERSKI TOTAL LIABILITIES AND STOCKHOLMS BOUNTY OCI w 21 BARONILANG IN Mag HH Salem 1 D 11 0411 Question #3 - Using the Blue Apron financial statements 100, provide the following (SHOW THE CALCULATION. IF MISSING NO CREDIT): 3a. Revenue for the three months ending March 31st 2020 and 2019 3b. Gross profit for the three months ending March 31st 2020 and 2019 3c. Cost of sales as a percentage of revenues for the three months ending March 31st 2020 and 2019 3d. Net income (loss) for the three months ending March 31st 2020 and 2019 3e. Net income as a % of revenue for the three months ending March 31st 2020 and 2019 3f. $ and % change from 2019 and 2020 for gross profit (% should be to the tenth e.g. 32.2%) 3g . $ and % change from 2019 to 2020 for revenues 3h.$ % change from 2019 to 2020 for net income/loss PARTI FINANCIAL INFORMATION LA APRON HOLEN, INC. da per dare date CURRENT ASSETS A. 74 Papatys, TOTAL ASSETS LIABILITIES AND STOCKHOLDERS BOEITY DEFICIT CERINTEIS 1 TOTAL.LIARITES Com STOCKHOLDERSHORITY CRICI Class Amma ock, parla con Class commodo di Madhe dhe Comprar Mucho, en el March 2009 December 2010 TOTAL CLIENTI TOALLILITES AND STOCKERSKOLETY DOM BLEKAPRONINGEN 5. HH RE Bewer lifikasi - M Three Months Ended March 2020 2019 (In thousands) S Reconciliation of net income (loss) to adjusted EBITDA Net income (loss) Share-based compensation Depreciation and amortization Other operating expense Interest (income) expense, net Provision (benefit) for income taxes Adjusted EBITDA (20,145) S 2,240 6,753 3,198 2.155 9 (5,790) (5,275) 2,835 8,604 230 2,232 13 8.639 Reconciliation of net cash from (used in operating netivities to free cash flow Net cash from (used in) operating activities Purchases of property and equipment Free cash flow Three Months Ended March 2020 (In thousands) (12,604) $ 5,138 (1,611) (1.734) (14,215) 3,404 The Marketing experienced by 568 million, 5150 million for the three monde Mach 1.20m $12 million for the months ended March 2019. The increase reviews and repaid channels Asaprotage of overged for the three mended Much 31.30 from 10.06 for the three del Mash 1.2009. This increasa perfect included inre of 300 bis in celine paid channels, an inore of 350 basis points in the paid che, perilly offer by decrease of 70 basis potes in our customeidenal program primarily driven by a decrease in the mis of customer cicletesen werden Product Rockologs, General and Administratie 3421 2165 Product, there and ente expendered by 549 million, 135.605342 million for the hehended March 31, 2008. Both the ended March 31, 2018. This doe was primarily de 30 milioni personales primarily driven bywer headcount in cute and other magia dece of milice in poste avec and distincts, which includes a decrease of 0.8 milie in payment processing feesdriven by lower and . de amicifcities for prices and medico Asperge of powered basis 33% for the three months ended March 31, from 27s for the three meended Much 31,289 diven by expenses incurred to support our business and execute key businesses beway 2000, we assumed the planned close of our Arlington, Texas utilisent center and the commodidation of productie volume Alington, Team falliment center for Linden. No one and Richmond Comifition cmten. As a welcomed charges of approximately 1 milion, including 574 lichinchas vedioemplete pe primul v pons, and 50 milie other items. In addition, we expect to copy 8.6 millions of the cut ces, all of which are expected to in cash expenditures in the cond quarter of 230. We expect al saving of approximately 30 miliebeganning in the second quartered 2016 la de Depreciation Depreciation and antication donned by us 2 million for the three months anded March 1 200 from milline for the three monded March 1, 2009 This doma was primarily driven by lower mas well as charges and so ogledat. Asaprotaw, dopractice and american ined for the ones ended Murda 33800 om freemets del March 2014 Other persing expense for the three monded March 31, 2020 and 2019 532 min 50 milice, respectively. Other operating expense for the theme ended March 31, 20 en charge of Ski millierelated to the planned Arlington facility comenced in chay 30, including 57 million of non-comment charges enke lived, 0.6 mln employecto es, primarily comesting of severance payment and I will the in March 200. Other operating expeme for the three months ended March 31, 2017 includes $0.2 milli maplected pemesi vec preting to the Arlington facilidad y Income Table of Contents The following table sets forth our consolidated statements of operations data as a percentage of net revenue for each of the periods indicated Three Months Ended March 2020 2019 100.0 % 100.0% 59.5% 148% 58.3% 100% 276% Net revenue Operating expenses Cost of goods sold, excluding depreciation and amortization Marketing Product, technology, general and administrative Depreciation and amortization Other operating expense Total operating expenses Income (loss) from operations Interest income (expense), net Income (loss) before income taxes Benefit (provision) for income taxes Net income (loss) 6.6% 3.1% 117.7% (17.77% (2.119 (19.87% (0.01% (19.8% 02% 102.1% (2.1) (1.6% (3.71 (0.01% (3.7% Three Months Ended March 31, 2020 Compared to Three Months Ended Merch 31,2019 Net Revenue Three Months anded March 31. Chao la thousands Net revenue 101.857 $ 141.890 (28)% Net revenue decreased by S40.0 million, or 28%, to $101.9 million for the three months ended March 31, 2020 from $141.9 million for the three months ended March 31, 2019. The decrease in net revenue was primarily due to a decrease in Customers during the three months ended March 31, 2020 as we deliberately reduced marketing spend in prior periods while we continue to strategically invest in the marketing channels we believe to be the most efficient and target consumers that we believe will exhibit higher affinity and retention. Operating Expenses Cast of Goods Sold, excluding Depreciation and Amortization Three Months Eaded March 2019 Change la thousands) Cost of goods sold, excluding depreciation and amortization $ 60,638 $ 82,704 (27)% % of net revenue 5959 38.3% Cost of goods sold, excluding depreciation and amortization, decreased by $22.1 million, or 27% to 560.6 million for the three months ended March 31, 2020 from $82.7 million for the three months ended March 31, 2019. This decrease was primarily driven by a decrease in Orders. As a percentage of net revenue, cost of goods sold, excluding depreciation and amortization, increased to 59.5% for the three months ended March 31, 2020 from 58,3% for the three months ended March 31. 2019. The increase in cost of goods sold, excluding depreciation and amortization, as a percentage of net revenue, was primarily due to 28 PARTICIPATION la card pada AMES CURRENT ASSETS Mund the TOTALANES LIABILITIES AND STOCKHOLM 5 me and the SI herm TOTAL LIABILITIES STOCKHOLDERS' EQUITY DEKID wwwdorhome Clasele March And Accommodation TOTAL SOCKERSKI TOTAL LIABILITIES AND STOCKHOLMS BOUNTY OCI w 21 BARONILANG IN Mag HH Salem 1 D 11 0411