FLOWERS FOODS, INC. REPORTS THIRD QUARTER 2024 RESULTS
Third Quarter Summary:
Compared to the prior year third quarter where applicable
- Net sales(1) decreased 0.7% to
$1.191 billion as positive pricing/mix was more than offset by volume declines. - Net income increased
$111.7 million to$65.0 million , primarily due to growth in operating income from a decrease in legal settlements and related costs, partially offset by higher net interest expense. Adjusted net income(2) increased 12.4% to$69.3 million . - Adjusted EBITDA(2) increased 10.0% to
$133.3 million , representing 11.2% of net sales, a 110-basis point increase. - Diluted EPS increased
$0.53 to$0.31 . Adjusted diluted EPS(2) increased$0.04 to$0.33 .
Chairman and CEO Remarks:
"Strong performance by our leading brands and successful execution of our cost initiatives and portfolio strategy drove better-than-expected earnings in the third quarter," said Ryals McMullian, chairman and CEO of
"We are narrowing our 2024 financial outlook to reflect greater certainty as we enter the fourth quarter and strong relative performance in the branded retail bread category, partially offset by headwinds from consumer and promotional behavior. We also expect continued benefits from new business wins and efficiency initiatives. Beyond 2024, our focus remains on enhancing shareholder value and delivering results consistent with our long-term financial targets."
For the 52-week Fiscal 2024, the Company Expects:
- Net sales in the range of approximately
$5.116 billion to$5.147 billion , representing 0.5% to 1.1% growth compared to the prior year. Prior guidance called for net sales in the range of approximately$5.091 billion to$5.172 billion , representing 0.0% to 1.6% growth. - Adjusted EBITDA(3) in the range of approximately
$530 million to$542 million , compared to prior guidance of approximately$524 million to$553 million . - Adjusted diluted EPS(2) in the range of approximately
$1.24 to$1.28 , compared to prior guidance of approximately$1.20 to$1.30 .
The company's outlook is based on the following assumptions:
- Depreciation and amortization in the range of
$155 million to$160 million . - Net interest expense of approximately
$20 million to$24 million . - An effective tax rate of approximately 25%.
- Weighted average diluted share count for the year of approximately 212.5 million shares.
- Capital expenditures in the range of
$130 million to$140 million , with$5 million to$7 million related to the ERP upgrade, compared to prior guidance in the range of$145 million to$155 million , with$3 million to$6 million related to the ERP upgrade.
Matters Affecting Comparability:
Reconciliation of Earnings per Share to Adjusted Earnings per Share |
||||||||
|
||||||||
|
|
For the 12-Week |
|
|
For the 12-Week |
|
||
|
|
|
|
|
|
|
||
Net income (loss) per diluted common share |
|
$ |
0.31 |
|
|
$ |
(0.22) |
|
Business process improvement costs |
|
NM |
|
|
|
0.02 |
|
|
Plant closure costs and impairment of assets |
|
|
0.02 |
|
|
NM |
|
|
Restructuring charges |
|
|
— |
|
|
NM |
|
|
Legal settlements and related costs |
|
NM |
|
|
|
0.49 |
|
|
Adjusted net income per diluted common share |
|
$ |
0.33 |
|
|
$ |
0.29 |
|
|
NM - not meaningful. Certain amounts may not add due to rounding. |
Consolidated Third Quarter Operating Highlights
Compared to the prior year third quarter where applicable
- Net sales decreased 0.7% to
$1.191 billion . Pricing/mix(4) increased 1.7% and volume(5) declined 2.4%.- Branded Retail net sales decreased
$11.5 million or 1.5% to$760.6 million due to unfavorable price/mix resulting from increased promotional activity, and volume declines. Branded cake drove the volume decrease, partially offset by volume growth in branded bread products. Pricing/mix(4) declined 0.9% and volume(5) decreased 0.6%. - Other net sales increased
$2.8 million or 0.7% to$430.0 million due to significant favorable price/mix from optimizing our non-retail business, most notably in foodservice, partially offset by volume declines concentrated in vending, foodservice, and institutional sales. Pricing/mix(4) rose 4.9% and volume(5) declined 4.2%.
- Branded Retail net sales decreased
- Materials, supplies, labor, and other production costs (exclusive of depreciation and amortization) were 50.2% of net sales, a 130-basis point decrease. These costs decreased as a percentage of net sales due to moderating ingredient and packaging costs, improved net sales price/mix, and decreased product returns. Lower production volumes, higher workforce-related costs, and increased outside purchases of product (sales with no associated ingredient costs) partially offset the overall improvement.
- Selling, distribution, and administrative (SD&A) expenses were 38.7% of net sales, a 1,170-basis point decrease. SD&A decreased as a percentage of net sales due to significantly lower legal settlements and related costs, as well as lower distributor distribution fees, marketing expense, logistics and freight costs, and consulting costs. These items were partially offset by increased workforce-related costs, higher rent expense, and lower scrap dough income. Excluding matters affecting comparability, adjusted SD&A(2) was 38.6% of net sales, a 20 basis point increase.
- Legal settlements and related costs were
$0.8 million , or 0.1% of net sales, compared to$137.5 million , or 11.5% of net sales in the prior year quarter. - The company recognized plant closure costs and asset impairments of
$4.5 million , which represented 0.4% of net sales, primarily related to the closure of itsBaton Rouge bakery. In the prior year quarter, the company recorded an impairment charge of$1.0 million , or 0.1% of net sales, related to an agreement to sell a warehouse classified as held for sale. - Depreciation and amortization (D&A) expenses were
$37.3 million or 3.1% of net sales, a 10-basis point increase. - Net interest expense increased
$0.8 million primarily due to lower interest income resulting from decreases in distributor notes receivable outstanding. - Net income increased
$111.7 million to$65.0 million . Adjusted net income(2) increased 12.4% to$69.3 million . - Adjusted EBITDA(2) increased 10.0% to
$133.3 million , representing 11.2% of net sales, a 110-basis point increase.
Cash Flow, Capital Allocation, and Capital Return
Year-to-date, through the third quarter of fiscal 2024, cash flow from operating activities increased
(1) |
Any reference to sales refers to net sales inclusive of allowances and deductions against gross sales |
(2) |
Adjusted for items affecting comparability. See reconciliations of non-GAAP measures in the financial statements following this release. Earnings are net income (loss). EBITDA and Adjusted EBITDA are reconciled to net income (loss). |
(3) |
No reconciliation of the forecasted range for adjusted EBITDA to net income for the 52-week Fiscal 2024 is included in this press release because the company is unable to quantify certain amounts that would be required to be included in the GAAP measure without unreasonable efforts. In addition, the company believes such reconciliation would imply a degree of precision that would be confusing or misleading to investors. |
(4) |
Calculated as (current year period units X change in price per unit) / prior year period net sales dollars |
(5) |
Calculated as (prior year period price per unit X change in units) / prior year period net sales dollars |
Pre-Recorded Management Remarks and Question and Answer Webcast
In conjunction with this release, pre-recorded management remarks and a supporting slide presentation will be posted to the
About
Headquartered in Thomasville, Ga.,
Forward-Looking Statements
Statements contained in this press release and certain other written or oral statements made from time to time by
Information Regarding Non-GAAP Financial Measures
The company prepares its consolidated financial statements in accordance with
The company defines EBITDA as earnings before interest, taxes, depreciation and amortization. Earnings are net income. The company believes that EBITDA is a useful tool for managing the operations of its business and is an indicator of the company's ability to incur and service indebtedness and generate free cash flow. The company also believes that EBITDA measures are commonly reported and widely used by investors and other interested parties as measures of a company's operating performance and debt servicing ability because EBITDA measures assist in comparing performance on a consistent basis without regard to depreciation or amortization, which can vary significantly depending upon accounting methods and non-operating factors (such as historical cost). EBITDA is also a widely-accepted financial indicator of a company's ability to incur and service indebtedness.
EBITDA should not be considered an alternative to (a) income from operations or net income (loss) as a measure of operating performance; (b) cash flows provided by operating, investing and financing activities (as determined in accordance with GAAP) as a measure of the company's ability to meet its cash needs; or (c) any other indicator of performance or liquidity that has been determined in accordance with GAAP.
The company defines adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted diluted EPS, adjusted income tax expense and adjusted SD&A, respectively, to exclude additional costs that the company considers important to present to investors to increase the investors' insights about the company's core operations. These costs include, but are not limited to, the costs of closing a plant or costs associated with acquisition-related activities, restructuring activities, certain impairment charges, legal settlements, costs to implement an enterprise resource planning system and enhance bakery digital capabilities (business process improvement costs) to provide investors direct insight into these costs, and other costs impacting past and future comparability. The company believes that these measures, when considered together with its GAAP financial results, provides management and investors with a more complete understanding of its business operating results, including underlying trends, by excluding the effects of certain charges. Adjusted EBITDA is used as the primary performance measure in the company's 2014 Omnibus Equity and Incentive Compensation Plan (Amended and Restated Effective
Presentation of gross margin includes depreciation and amortization in the materials, supplies, labor and other production costs according to GAAP. Our method of presenting gross margin excludes the depreciation and amortization components, as discussed above.
The reconciliations attached provide reconciliations of the non-GAAP measures used in this release to the most comparable GAAP financial measure.
|
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(000's omitted) |
||||||||
|
||||||||
|
|
|
|
|
|
|
||
Assets |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
14,975 |
|
|
$ |
22,527 |
|
Other current assets |
|
|
676,506 |
|
|
|
655,422 |
|
Property, plant and equipment, net |
|
|
947,702 |
|
|
|
962,981 |
|
Right-of-use leases, net |
|
|
308,995 |
|
|
|
276,864 |
|
Distributor notes receivable (1) |
|
|
128,576 |
|
|
|
133,335 |
|
Other assets |
|
|
39,765 |
|
|
|
40,286 |
|
Cost in excess of net tangible assets, net |
|
|
1,313,440 |
|
|
|
1,335,538 |
|
Total assets |
|
$ |
3,429,959 |
|
|
$ |
3,426,953 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
||
Current liabilities |
|
$ |
504,388 |
|
|
$ |
611,546 |
|
Long-term debt |
|
|
1,054,143 |
|
|
|
1,048,144 |
|
Right-of-use lease liabilities (2) |
|
|
315,803 |
|
|
|
284,501 |
|
Other liabilities |
|
|
149,099 |
|
|
|
130,980 |
|
Stockholders' equity |
|
|
1,406,526 |
|
|
|
1,351,782 |
|
Total liabilities and stockholders' equity |
|
$ |
3,429,959 |
|
|
$ |
3,426,953 |
|
|
|
|
|
|
|
|
|
|
(1) |
Includes current portion of |
(2) |
Includes current portion of |
|
||||||||||||||||
Consolidated Statement of Operations |
||||||||||||||||
(000's omitted, except per share data) |
||||||||||||||||
|
||||||||||||||||
|
|
For the 12-Week |
|
|
For the 12-Week |
|
|
For the 40-Week |
|
|
For the 40-Week |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net sales |
|
$ |
1,190,561 |
|
|
$ |
1,199,260 |
|
|
$ |
3,992,362 |
|
|
$ |
3,961,803 |
|
Materials, supplies, labor and other production costs (exclusive of |
|
|
598,209 |
|
|
|
617,468 |
|
|
|
2,008,757 |
|
|
|
2,044,417 |
|
Selling, distribution, and administrative expenses |
|
|
460,359 |
|
|
|
603,954 |
|
|
|
1,557,010 |
|
|
|
1,671,813 |
|
Restructuring charges |
|
|
— |
|
|
|
179 |
|
|
|
7,403 |
|
|
|
6,873 |
|
Plant closure costs and impairment of assets |
|
|
4,483 |
|
|
|
1,034 |
|
|
|
9,860 |
|
|
|
1,034 |
|
Depreciation and amortization expense |
|
|
37,331 |
|
|
|
35,974 |
|
|
|
122,393 |
|
|
|
114,693 |
|
Income (loss) from operations |
|
|
90,179 |
|
|
|
(59,349) |
|
|
|
286,939 |
|
|
|
122,973 |
|
Other pension benefit |
|
|
(119) |
|
|
|
(62) |
|
|
|
(395) |
|
|
|
(207) |
|
Interest expense, net |
|
|
4,778 |
|
|
|
4,010 |
|
|
|
15,297 |
|
|
|
12,147 |
|
Income (loss) before income taxes |
|
|
85,520 |
|
|
|
(63,297) |
|
|
|
272,037 |
|
|
|
111,033 |
|
Income tax expense (benefit) |
|
|
20,536 |
|
|
|
(16,567) |
|
|
|
67,043 |
|
|
|
23,293 |
|
Net income (loss) |
|
$ |
64,984 |
|
|
$ |
(46,730) |
|
|
$ |
204,994 |
|
|
$ |
87,740 |
|
Net income (loss) per diluted common share |
|
$ |
0.31 |
|
|
$ |
(0.22) |
|
|
$ |
0.97 |
|
|
$ |
0.41 |
|
Diluted weighted average shares outstanding |
|
|
211,975 |
|
|
|
211,522 |
|
|
|
212,123 |
|
|
|
213,455 |
|
|
||||||||||||||||
Condensed Consolidated Statement of Cash Flows |
||||||||||||||||
(000's omitted) |
||||||||||||||||
|
||||||||||||||||
|
|
For the 12-Week |
|
|
For the 12-Week |
|
|
For the 40-Week |
|
|
For the 40-Week |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) |
|
$ |
64,984 |
|
|
$ |
(46,730) |
|
|
$ |
204,994 |
|
|
$ |
87,740 |
|
Adjustments to reconcile net income (loss) to net cash from operating |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total non-cash adjustments |
|
|
58,273 |
|
|
|
6,458 |
|
|
|
182,843 |
|
|
|
111,814 |
|
Changes in assets and liabilities and pension plan contributions |
|
|
(9,308) |
|
|
|
168,683 |
|
|
|
(105,467) |
|
|
|
57,764 |
|
Net cash provided by operating activities |
|
|
113,949 |
|
|
|
128,411 |
|
|
|
282,370 |
|
|
|
257,318 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Purchase of property, plant and equipment |
|
|
(25,373) |
|
|
|
(28,618) |
|
|
|
(86,624) |
|
|
|
(97,003) |
|
Proceeds from sale of property, plant and equipment |
|
|
1,231 |
|
|
|
1,503 |
|
|
|
2,040 |
|
|
|
2,278 |
|
Acquisition of business |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(274,755) |
|
Investment in unconsolidated affiliate |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,981) |
|
Other |
|
|
(12,295) |
|
|
|
(1,051) |
|
|
|
(28,358) |
|
|
|
4,926 |
|
Net cash disbursed for investing activities |
|
|
(36,437) |
|
|
|
(28,166) |
|
|
|
(112,942) |
|
|
|
(366,535) |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Dividends paid |
|
|
(50,543) |
|
|
|
(48,603) |
|
|
|
(152,489) |
|
|
|
(146,726) |
|
Stock repurchases |
|
|
— |
|
|
|
(4,647) |
|
|
|
(22,703) |
|
|
|
(30,891) |
|
Net change in debt borrowings |
|
|
(15,000) |
|
|
|
(37,000) |
|
|
|
5,000 |
|
|
|
145,000 |
|
Payments on financing leases |
|
|
(66) |
|
|
|
(461) |
|
|
|
(235) |
|
|
|
(1,513) |
|
Other |
|
|
(3,794) |
|
|
|
(6,684) |
|
|
|
(6,553) |
|
|
|
(7,226) |
|
Net cash disbursed for financing activities |
|
|
(69,403) |
|
|
|
(97,395) |
|
|
|
(176,980) |
|
|
|
(41,356) |
|
Net increase (decrease) in cash and cash equivalents |
|
|
8,109 |
|
|
|
2,850 |
|
|
|
(7,552) |
|
|
|
(150,573) |
|
Cash and cash equivalents at beginning of period |
|
|
6,866 |
|
|
|
11,711 |
|
|
|
22,527 |
|
|
|
165,134 |
|
Cash and cash equivalents at end of period |
|
$ |
14,975 |
|
|
$ |
14,561 |
|
|
$ |
14,975 |
|
|
$ |
14,561 |
|
|
||||||||||||||||
|
||||||||||||||||
(000's omitted) |
||||||||||||||||
|
||||||||||||||||
|
||||||||||||||||
|
||||||||||||||||
|
|
For the 12-Week Period |
|
|
For the 12-Week Period |
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
$ Change |
|
|
% Change |
|
||||
Branded Retail |
|
$ |
760,580 |
|
|
$ |
772,082 |
|
|
$ |
(11,502) |
|
|
|
(1.5) |
% |
Other |
|
|
429,981 |
|
|
|
427,178 |
|
|
|
2,803 |
|
|
|
0.7 |
% |
Total |
|
$ |
1,190,561 |
|
|
$ |
1,199,260 |
|
|
$ |
(8,699) |
|
|
|
(0.7) |
% |
|
||||||||||||||||
|
|
For the 40-Week Period |
|
|
For the 40-Week Period |
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
$ Change |
|
|
% Change |
|
||||
Branded Retail |
|
$ |
2,565,310 |
|
|
$ |
2,539,890 |
|
|
$ |
25,420 |
|
|
|
1.0 |
% |
Other |
|
|
1,427,052 |
|
|
|
1,421,913 |
|
|
|
5,139 |
|
|
|
0.4 |
% |
Total |
|
$ |
3,992,362 |
|
|
$ |
3,961,803 |
|
|
$ |
30,559 |
|
|
|
0.8 |
% |
|
||||||||||||
|
||||||||||||
For the 12-week period ended |
|
Branded Retail |
|
|
Other |
|
|
Total |
|
|||
Pricing/mix* |
|
|
(0.9) |
% |
|
|
4.9 |
% |
|
|
1.7 |
% |
Volume* |
|
|
(0.6) |
% |
|
|
(4.2) |
% |
|
|
(2.4) |
% |
Total percentage point change in net sales |
|
|
(1.5) |
% |
|
|
0.7 |
% |
|
|
(0.7) |
% |
|
||||||||||||
For the 40-week period ended |
|
Branded Retail |
|
|
Other |
|
|
Total |
|
|||
Pricing/mix* |
|
|
0.9 |
% |
|
|
3.2 |
% |
|
|
2.0 |
% |
Volume* |
|
|
(0.1) |
% |
|
|
(3.0) |
% |
|
|
(1.4) |
% |
Acquisition until cycled on |
|
|
0.2 |
% |
|
|
0.2 |
% |
|
|
0.2 |
% |
Total percentage point change in net sales |
|
|
1.0 |
% |
|
|
0.4 |
% |
|
|
0.8 |
% |
|
|
|
|
|
|
|
|
|
|
|||
|
|
|||||||||||
* Computations above are calculated as follows (the Total column is consolidated and is not adding the Branded Retail and Other columns): |
|
|||||||||||
Price/Mix $ = Current year period units × change in price per unit |
|
|||||||||||
Price/Mix % = Price/Mix $ ÷ Prior year period |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||
Volume $ = Prior year period price per unit × change in units |
|
|||||||||||
Volume % = Volume $ ÷ Prior year period |
|
|
||||||||||||||||
Reconciliation of GAAP to Non-GAAP Measures |
||||||||||||||||
(000's omitted, except per share data) |
||||||||||||||||
|
||||||||||||||||
|
|
Reconciliation of Earnings (Loss) per Share to Adjusted Earnings per Share |
|
|||||||||||||
|
|
For the 12-Week |
|
|
For the 12-Week |
|
|
For the 40-Week |
|
|
For the 40-Week |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) per diluted common share |
|
$ |
0.31 |
|
|
$ |
(0.22) |
|
|
$ |
0.97 |
|
|
$ |
0.41 |
|
Business process improvement costs |
|
NM |
|
|
|
0.02 |
|
|
|
0.02 |
|
|
|
0.07 |
|
|
Plant closure costs and impairment of assets |
|
|
0.02 |
|
|
NM |
|
|
|
0.03 |
|
|
NM |
|
||
Restructuring charges |
|
|
— |
|
|
NM |
|
|
|
0.03 |
|
|
|
0.02 |
|
|
Restructuring-related implementation costs |
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
Acquisition-related costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
Legal settlements and related costs |
|
NM |
|
|
|
0.49 |
|
|
NM |
|
|
|
0.48 |
|
||
Adjusted net income per diluted common share |
|
$ |
0.33 |
|
|
$ |
0.29 |
|
|
$ |
1.06 |
|
|
$ |
1.00 |
|
NM - not meaningful. |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Certain amounts may not add due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Gross Margin |
|
|||||||||||||
|
|
For the 12-Week |
|
|
For the 12-Week |
|
|
For the 40-Week |
|
|
For the 40-Week |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net sales |
|
$ |
1,190,561 |
|
|
$ |
1,199,260 |
|
|
$ |
3,992,362 |
|
|
$ |
3,961,803 |
|
Materials, supplies, labor and other production costs (exclusive |
|
|
598,209 |
|
|
|
617,468 |
|
|
|
2,008,757 |
|
|
|
2,044,417 |
|
Gross margin excluding depreciation and amortization |
|
|
592,352 |
|
|
|
581,792 |
|
|
|
1,983,605 |
|
|
|
1,917,386 |
|
Less depreciation and amortization for production activities |
|
|
20,914 |
|
|
|
19,225 |
|
|
|
67,581 |
|
|
|
62,932 |
|
Gross margin |
|
$ |
571,438 |
|
|
$ |
562,567 |
|
|
$ |
1,916,024 |
|
|
$ |
1,854,454 |
|
Depreciation and amortization for production activities |
|
$ |
20,914 |
|
|
$ |
19,225 |
|
|
$ |
67,581 |
|
|
$ |
62,932 |
|
Depreciation and amortization for selling, distribution, and |
|
|
16,417 |
|
|
|
16,749 |
|
|
|
54,812 |
|
|
|
51,761 |
|
Total depreciation and amortization |
|
$ |
37,331 |
|
|
$ |
35,974 |
|
|
$ |
122,393 |
|
|
$ |
114,693 |
|
|
|
Reconciliation of Selling, Distribution, and Administrative Expenses to |
|
|||||||||||||
|
|
For the 12-Week |
|
|
For the 12-Week Period |
|
|
For the 40-Week |
|
|
For the 40-Week Period |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling, distribution, and administrative expenses |
|
$ |
460,359 |
|
|
$ |
603,954 |
|
|
$ |
1,557,010 |
|
|
$ |
1,671,813 |
|
Business process improvement costs |
|
|
(490) |
|
|
|
(5,814) |
|
|
|
(5,779) |
|
|
|
(18,621) |
|
Restructuring-related implementation costs |
|
|
— |
|
|
|
— |
|
|
|
(2,979) |
|
|
|
— |
|
Acquisition-related costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,712) |
|
Legal settlements and related costs |
|
|
(827) |
|
|
|
(137,529) |
|
|
|
(827) |
|
|
|
(137,529) |
|
Adjusted SD&A |
|
$ |
459,042 |
|
|
$ |
460,611 |
|
|
$ |
1,547,425 |
|
|
$ |
1,511,951 |
|
|
||||||||||||||||
Reconciliation of GAAP to Non-GAAP Measures |
||||||||||||||||
(000's omitted, except per share data) |
||||||||||||||||
|
||||||||||||||||
|
|
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA |
|
|||||||||||||
|
|
For the 12-Week |
|
|
For the 12-Week |
|
|
For the 40-Week |
|
|
For the 40-Week |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) |
|
$ |
64,984 |
|
|
$ |
(46,730) |
|
|
$ |
204,994 |
|
|
$ |
87,740 |
|
Income tax expense (benefit) |
|
|
20,536 |
|
|
|
(16,567) |
|
|
|
67,043 |
|
|
|
23,293 |
|
Interest expense, net |
|
|
4,778 |
|
|
|
4,010 |
|
|
|
15,297 |
|
|
|
12,147 |
|
Depreciation and amortization |
|
|
37,331 |
|
|
|
35,974 |
|
|
|
122,393 |
|
|
|
114,693 |
|
EBITDA |
|
|
127,629 |
|
|
|
(23,313) |
|
|
|
409,727 |
|
|
|
237,873 |
|
Other pension benefit |
|
|
(119) |
|
|
|
(62) |
|
|
|
(395) |
|
|
|
(207) |
|
Business process improvement costs |
|
|
490 |
|
|
|
5,814 |
|
|
|
5,779 |
|
|
|
18,621 |
|
Plant closure costs and impairment of assets |
|
|
4,483 |
|
|
|
1,034 |
|
|
|
9,860 |
|
|
|
1,034 |
|
Restructuring charges |
|
|
— |
|
|
|
179 |
|
|
|
7,403 |
|
|
|
6,873 |
|
Restructuring-related implementation costs |
|
|
— |
|
|
|
— |
|
|
|
2,979 |
|
|
|
— |
|
Acquisition-related costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,712 |
|
Legal settlements and related costs |
|
|
827 |
|
|
|
137,529 |
|
|
|
827 |
|
|
|
137,529 |
|
Adjusted EBITDA |
|
$ |
133,310 |
|
|
$ |
121,181 |
|
|
$ |
436,180 |
|
|
$ |
405,435 |
|
Net sales |
|
$ |
1,190,561 |
|
|
$ |
1,199,260 |
|
|
$ |
3,992,362 |
|
|
$ |
3,961,803 |
|
Adjusted EBITDA margin |
|
|
11.2 |
% |
|
|
10.1 |
% |
|
|
10.9 |
% |
|
|
10.2 |
% |
|
|
Reconciliation of Income Tax Expense (Benefit) to Adjusted Income Tax Expense |
|
|||||||||||||
|
|
For the 12-Week |
|
|
For the 12-Week Period |
|
|
For the 40-Week |
|
|
For the 40-Week Period |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income tax expense (benefit) |
|
$ |
20,536 |
|
|
$ |
(16,567) |
|
|
$ |
67,043 |
|
|
$ |
23,293 |
|
Tax impact of: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Business process improvement costs |
|
|
123 |
|
|
|
1,453 |
|
|
|
1,445 |
|
|
|
4,655 |
|
Plant closure costs and impairment of assets |
|
|
1,122 |
|
|
|
259 |
|
|
|
2,466 |
|
|
|
259 |
|
Restructuring charges |
|
|
— |
|
|
|
45 |
|
|
|
1,851 |
|
|
|
1,718 |
|
Restructuring-related implementation costs |
|
|
— |
|
|
|
— |
|
|
|
745 |
|
|
|
— |
|
Acquisition-related costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
928 |
|
Legal settlements and related costs |
|
|
207 |
|
|
|
34,382 |
|
|
|
207 |
|
|
|
34,382 |
|
Adjusted income tax expense |
|
$ |
21,988 |
|
|
$ |
19,572 |
|
|
$ |
73,757 |
|
|
$ |
65,235 |
|
|
||||||||||||||||
Reconciliation of GAAP to Non-GAAP Measures |
||||||||||||||||
(000's omitted, except per share data) |
||||||||||||||||
|
||||||||||||||||
|
|
Reconciliation of Net Income (Loss) to Adjusted Net Income |
|
|||||||||||||
|
|
For the 12-Week |
|
|
For the 12-Week |
|
|
For the 40-Week |
|
|
For the 40-Week |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) |
|
$ |
64,984 |
|
|
$ |
(46,730) |
|
|
$ |
204,994 |
|
|
$ |
87,740 |
|
Business process improvement costs |
|
|
367 |
|
|
|
4,361 |
|
|
|
4,334 |
|
|
|
13,966 |
|
Plant closure costs and impairment of assets |
|
|
3,361 |
|
|
|
775 |
|
|
|
7,394 |
|
|
|
775 |
|
Restructuring charges |
|
|
— |
|
|
|
134 |
|
|
|
5,552 |
|
|
|
5,155 |
|
Restructuring-related implementation costs |
|
|
— |
|
|
|
— |
|
|
|
2,234 |
|
|
|
— |
|
Acquisition-related costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,784 |
|
Legal settlements and related costs |
|
|
620 |
|
|
|
103,147 |
|
|
|
620 |
|
|
|
103,147 |
|
Adjusted net income |
|
$ |
69,332 |
|
|
$ |
61,687 |
|
|
$ |
225,128 |
|
|
$ |
213,567 |
|
|
|
Reconciliation of Earnings per Share - |
|
|||||
|
|
Range Estimate |
|
|||||
Net income per diluted common share |
|
$ |
1.15 |
|
to |
$ |
1.19 |
|
Business process improvement costs |
|
|
0.02 |
|
|
|
0.02 |
|
Plant closure costs and impairment of assets |
|
|
0.03 |
|
|
|
0.03 |
|
Restructuring charges |
|
|
0.03 |
|
|
|
0.03 |
|
Restructuring-related implementation costs |
|
|
0.01 |
|
|
|
0.01 |
|
Legal settlements and related costs |
|
NM |
|
|
NM |
|
||
Adjusted net income per diluted common share |
|
$ |
1.24 |
|
to |
$ |
1.28 |
|
NM - not meaningful. |
|
|
|
|
|
|
||
Certain amounts may not add due to rounding. |
|
|
|
|
|
|
View original content:https://www.prnewswire.com/news-releases/flowers-foods-inc-reports-third-quarter-2024-results-302299345.html
SOURCE