Summary
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Third Quarter of 2023 |
|
First Three Quarters of 2023 |
||||||||||
(In millions, except per share data) |
|
|
Change vs. |
|
|
|
Change vs. |
|||||||
|
|
Amount |
|
Q3 2022 |
|
Amount |
|
First 3Q 2022 |
||||||
|
|
$ |
502.7 |
|
|
(4.9 |
)% |
|
$ |
1,484.2 |
|
|
(3.6 |
)% |
Base Business |
|
$ |
502.7 |
|
|
(3.0 |
)% |
|
$ |
1,483.7 |
|
|
(1.4 |
)% |
Diluted EPS |
|
$ |
(1.11 |
) |
|
(33.7 |
)% |
|
$ |
(0.94 |
) |
|
(84.3 |
)% |
Adj. Diluted EPS 1 |
|
$ |
0.27 |
|
|
(12.9 |
)% |
|
$ |
0.69 |
|
|
3.0 |
% |
Net Loss |
|
$ |
(82.7 |
) |
|
(38.9 |
)% |
|
$ |
(68.8 |
) |
|
(92.8 |
)% |
Adj. Net Income 1 |
|
$ |
20.5 |
|
|
(8.0 |
)% |
|
$ |
50.3 |
|
|
6.4 |
% |
Adj. EBITDA 1 |
|
$ |
80.4 |
|
|
0.2 |
% |
|
$ |
231.2 |
|
|
11.5 |
% |
Debt Refinancing and Equity Issuance Summary
Sale of the Green Giant
Guidance for Full Year Fiscal 2023
Commenting on the results,
Financial Results for the Third Quarter of 2023
Net sales for the third quarter of 2023 decreased
Base business net sales for the third quarter of 2023 decreased
Net sales of Clabber Girl increased
Gross profit was
The improvements in gross profit and gross profit as a percentage of net sales were driven by an increase in net pricing relative to input costs as compared to the third quarter of 2022, the moderation of input cost inflation and lower transportation and warehousing costs. Beginning in the fourth quarter of 2022, the Company has realized the benefits of previously announced list price increases, which has contributed to the Company’s recovery in gross profit and gross profit as a percentage of net sales through the third quarter of 2023.
Selling, general and administrative expenses increased
In connection with the Company’s sale of assets relating to the Green Giant
Net interest expense increased
The Company’s net loss was
For the third quarter of 2023, adjusted EBITDA was
Financial Results for the First Three Quarters of 2023
Net sales for the first three quarters of 2023 decreased
Base business net sales for the first three quarters of 2023 decreased
Net sales of Clabber Girl increased
Gross profit was
The improvements in gross profit and gross profit as a percentage of net sales were driven by an increase in net pricing relative to input costs as compared to the first three quarters of 2022, the moderation of input cost inflation and lower transportation and warehousing costs. Beginning in the fourth quarter of 2022, the Company has realized the benefits of previously announced list price increases, which has contributed to the Company’s recovery in gross profit and gross profit as a percentage of net sales through the third quarter of 2023.
Selling, general and administrative expenses increased
In connection with the Company’s sale of assets relating to the Green Giant
Net interest expense increased
The Company’s net loss was
For the first three quarters of 2023, adjusted EBITDA was
Sale of Green Giant
As announced in a separate press release issued today, the Company has sold assets relating to the Green Giant
Impairment of Assets Held for Sale
In connection with the sale of assets relating to the Company’s Green Giant
Debt and Equity Refinancing
At-The-Market (ATM) Equity Offering Program. During the third quarter of 2023, the Company sold 6,332,846 shares of its common stock under its ATM equity offering program. For the quarter, the Company generated
Senior Note Repurchases. During the third quarter of 2023, the Company repurchased
Offering of Senior Secured Notes; Partial Redemption of Senior Notes. On
Full Year Fiscal 2023 Guidance
Conference Call
About Non-GAAP Financial Measures and Items Affecting Comparability
“Adjusted net income” (net income (loss) adjusted for certain items that affect comparability), “adjusted diluted earnings per share,” (diluted earnings (loss) per share adjusted for certain items that affect comparability), “base business net sales” (net sales without the impact of acquisitions until the acquisitions are included in both comparable periods and without the impact of discontinued or divested brands), “EBITDA” (net income (loss) before net interest expense, income taxes, and depreciation and amortization) and “adjusted EBITDA” (EBITDA as adjusted for cash and non-cash acquisition/divestiture-related expenses, gains and losses (which may include third-party fees and expenses, integration, restructuring and consolidation expenses, amortization of acquired inventory fair value step-up and gains and losses on the sale of certain assets), gains and losses on extinguishment of debt, impairment of assets held for sale, and non-recurring expenses, gains and losses) are “non-GAAP financial measures.” A non-GAAP financial measure is a numerical measure of financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in
The Company uses non-GAAP financial measures to adjust for certain items that affect comparability. This information is provided in order to allow investors to make meaningful comparisons of the Company’s operating performance between periods and to view the Company’s business from the same perspective as the Company’s management. Because the Company cannot predict the timing and amount of these items that affect comparability, management does not consider these items when evaluating the Company’s performance or when making decisions regarding allocation of resources.
Additional information regarding EBITDA and adjusted EBITDA and a reconciliation of EBITDA and adjusted EBITDA to net income (loss) and to net cash provided by (used in) operating activities, is included below for the third quarter and first three quarters of 2023 and 2022, along with the components of EBITDA and adjusted EBITDA. Also included below are reconciliations of the non-GAAP terms adjusted net income, adjusted diluted earnings per share and base business net sales to the most directly comparable measure calculated and presented in accordance with GAAP in the Company’s consolidated balance sheets and related consolidated statements of operations, comprehensive loss, changes in stockholders’ equity and cash flows.
End Notes
About
Based in
Forward-Looking Statements
Statements in this press release that are not statements of historical or current fact constitute “forward-looking statements.” The forward-looking statements contained in this press release include, without limitation, statements related to B&G Foods’ expectations regarding net sales, adjusted EBITDA and adjusted diluted earnings per share, and the Company’s overall expectations for the remainder of fiscal 2023 and beyond, and expectations regarding the use of proceeds from the sale of the Green Giant
|
|||||||
Consolidated Balance Sheets |
|||||||
(In thousands, except share and per share data) |
|||||||
(Unaudited) |
|||||||
|
|
|
|
|
|
||
|
|
|
|
||||
|
2023 |
|
2022 |
||||
Assets |
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
||
Cash and cash equivalents |
$ |
359,926 |
|
|
$ |
45,442 |
|
Trade accounts receivable, net |
|
154,679 |
|
|
|
150,019 |
|
Inventories |
|
644,060 |
|
|
|
726,468 |
|
Assets held for sale |
|
68,823 |
|
|
|
51,314 |
|
Prepaid expenses and other current assets |
|
44,123 |
|
|
|
37,550 |
|
Income tax receivable |
|
9,100 |
|
|
|
8,024 |
|
Total current assets |
|
1,280,711 |
|
|
|
1,018,817 |
|
|
|
|
|
|
|
||
Property, plant and equipment, net |
|
302,572 |
|
|
|
317,587 |
|
Operating lease right-of-use assets |
|
68,688 |
|
|
|
65,809 |
|
Finance lease right-of-use assets |
|
2,097 |
|
|
|
2,891 |
|
|
|
619,221 |
|
|
|
619,241 |
|
Other intangible assets, net |
|
1,653,008 |
|
|
|
1,788,157 |
|
Other assets |
|
20,262 |
|
|
|
19,088 |
|
Deferred income taxes |
|
10,291 |
|
|
|
10,019 |
|
Total assets |
$ |
3,956,850 |
|
|
$ |
3,841,609 |
|
|
|
|
|
|
|
||
Liabilities and Stockholders’ Equity |
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
||
Trade accounts payable |
$ |
182,191 |
|
|
$ |
127,809 |
|
Accrued expenses |
|
72,380 |
|
|
|
64,137 |
|
Current portion of operating lease liabilities |
|
15,213 |
|
|
|
14,616 |
|
Current portion of finance lease liabilities |
|
1,063 |
|
|
|
1,046 |
|
Current portion of long-term debt |
|
555,439 |
|
|
|
50,000 |
|
Income tax payable |
|
1,704 |
|
|
|
309 |
|
Dividends payable |
|
14,938 |
|
|
|
13,617 |
|
Total current liabilities |
|
842,928 |
|
|
|
271,534 |
|
|
|
|
|
|
|
||
Long-term debt, net of current portion |
|
1,929,144 |
|
|
|
2,339,049 |
|
Deferred income taxes |
|
268,903 |
|
|
|
288,712 |
|
Long-term operating lease liabilities, net of current portion |
|
53,785 |
|
|
|
51,727 |
|
Long-term finance lease liabilities, net of current portion |
|
996 |
|
|
|
1,795 |
|
Other liabilities |
|
20,455 |
|
|
|
20,626 |
|
Total liabilities |
|
3,116,211 |
|
|
|
2,973,443 |
|
|
|
|
|
|
|
||
Stockholders’ equity: |
|
|
|
|
|
||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
786 |
|
|
|
717 |
|
Additional paid-in capital |
|
60,455 |
|
|
|
— |
|
Accumulated other comprehensive loss |
|
(3,117 |
) |
|
|
(9,349 |
) |
Retained earnings |
|
782,515 |
|
|
|
876,798 |
|
Total stockholders’ equity |
|
840,639 |
|
|
|
868,166 |
|
Total liabilities and stockholders’ equity |
$ |
3,956,850 |
|
|
$ |
3,841,609 |
|
|
|||||||||||||||
|
|||||||||||||||
Consolidated Statements of Operations |
|||||||||||||||
(In thousands, except per share data) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Third Quarter Ended |
|
First Three Quarters Ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net sales |
$ |
502,734 |
|
|
$ |
528,396 |
|
|
$ |
1,484,185 |
|
|
$ |
1,539,768 |
|
Cost of goods sold |
|
388,896 |
|
|
|
422,635 |
|
|
|
1,153,835 |
|
|
|
1,256,222 |
|
Gross profit |
|
113,838 |
|
|
|
105,761 |
|
|
|
330,350 |
|
|
|
283,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating (income) and expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||
Selling, general and administrative expenses |
|
48,197 |
|
|
|
47,519 |
|
|
|
142,798 |
|
|
|
138,556 |
|
Amortization expense |
|
5,197 |
|
|
|
5,427 |
|
|
|
15,649 |
|
|
|
16,009 |
|
Loss (gain) on sales of assets |
|
— |
|
|
|
— |
|
|
|
85 |
|
|
|
(7,099 |
) |
Impairment of assets held for sale |
|
132,949 |
|
|
|
103,625 |
|
|
|
132,949 |
|
|
|
103,625 |
|
Operating income (loss) |
|
(72,505 |
) |
|
|
(50,810 |
) |
|
|
38,869 |
|
|
|
32,455 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other (income) and expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense, net |
|
35,859 |
|
|
|
31,874 |
|
|
|
111,108 |
|
|
|
88,617 |
|
Other income |
|
(962 |
) |
|
|
(1,846 |
) |
|
|
(2,819 |
) |
|
|
(5,533 |
) |
Loss before income tax benefit |
|
(107,402 |
) |
|
|
(80,838 |
) |
|
|
(69,420 |
) |
|
|
(50,629 |
) |
Income tax benefit |
|
(24,661 |
) |
|
|
(21,255 |
) |
|
|
(647 |
) |
|
|
(14,958 |
) |
Net loss |
$ |
(82,741 |
) |
|
$ |
(59,583 |
) |
|
$ |
(68,773 |
) |
|
$ |
(35,671 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
74,428 |
|
|
|
71,670 |
|
|
|
72,815 |
|
|
|
70,068 |
|
Diluted |
|
74,428 |
|
|
|
72,018 |
|
|
|
72,815 |
|
|
|
70,440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loss per share: |
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
$ |
(1.11 |
) |
|
$ |
(0.83 |
) |
|
$ |
(0.94 |
) |
|
$ |
(0.51 |
) |
Diluted |
$ |
(1.11 |
) |
|
$ |
(0.83 |
) |
|
$ |
(0.94 |
) |
|
$ |
(0.51 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash dividends declared per share |
$ |
0.190 |
|
|
$ |
0.475 |
|
|
$ |
0.570 |
|
|
$ |
1.425 |
|
|
||||||||||||||||
Items Affecting Comparability |
||||||||||||||||
Reconciliation of Net Loss to EBITDA(1) and Adjusted EBITDA(1) |
||||||||||||||||
(In thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Third Quarter Ended |
|
First Three Quarters Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net loss |
|
$ |
(82,741 |
) |
|
$ |
(59,583 |
) |
|
$ |
(68,773 |
) |
|
$ |
(35,671 |
) |
Income tax benefit |
|
|
(24,661 |
) |
|
|
(21,255 |
) |
|
|
(647 |
) |
|
|
(14,958 |
) |
Interest expense, net(2) |
|
|
35,859 |
|
|
|
31,874 |
|
|
|
111,108 |
|
|
|
88,617 |
|
Depreciation and amortization |
|
|
17,282 |
|
|
|
20,766 |
|
|
|
52,586 |
|
|
|
61,065 |
|
EBITDA(1) |
|
|
(54,261 |
) |
|
|
(28,198 |
) |
|
|
94,274 |
|
|
|
99,053 |
|
Acquisition/divestiture-related and non-recurring expenses(3) |
|
|
1,716 |
|
|
|
4,785 |
|
|
|
3,912 |
|
|
|
9,575 |
|
Loss (gain) on sales of assets, net of facility closure costs(4) |
|
|
— |
|
|
|
— |
|
|
|
85 |
|
|
|
(4,928 |
) |
Impairment of assets held for sale(5) |
|
|
132,949 |
|
|
|
103,625 |
|
|
|
132,949 |
|
|
|
103,625 |
|
Adjusted EBITDA(1) |
|
$ |
80,404 |
|
|
$ |
80,212 |
|
|
$ |
231,220 |
|
|
$ |
207,325 |
|
|
||||||||||||||||
|
||||||||||||||||
Items Affecting Comparability |
||||||||||||||||
Reconciliation of Net Cash Provided by (Used In) Operating Activities to EBITDA(1) and Adjusted EBITDA(1) |
||||||||||||||||
(In thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Third Quarter Ended |
|
First Three Quarters Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net cash provided by (used in) operating activities |
|
$ |
23,304 |
|
|
$ |
(69,535 |
) |
|
$ |
155,681 |
|
|
$ |
(48,408 |
) |
Income tax benefit |
|
|
(24,661 |
) |
|
|
(21,255 |
) |
|
|
(647 |
) |
|
|
(14,958 |
) |
Interest expense, net(2) |
|
|
35,859 |
|
|
|
31,874 |
|
|
|
111,108 |
|
|
|
88,617 |
|
Gain on extinguishment of debt(2) |
|
|
582 |
|
|
|
— |
|
|
|
1,368 |
|
|
|
— |
|
(Loss) gain on sales of assets(4) |
|
|
(598 |
) |
|
|
(19 |
) |
|
|
(775 |
) |
|
|
7,094 |
|
Deferred income taxes |
|
|
34,037 |
|
|
|
27,945 |
|
|
|
18,940 |
|
|
|
27,415 |
|
Amortization of deferred debt financing costs and bond discount/premium |
|
|
(1,007 |
) |
|
|
(1,184 |
) |
|
|
(5,691 |
) |
|
|
(3,530 |
) |
Share-based compensation expense |
|
|
(2,151 |
) |
|
|
(736 |
) |
|
|
(5,452 |
) |
|
|
(2,984 |
) |
Changes in assets and liabilities, net of effects of business combinations |
|
|
13,323 |
|
|
|
108,337 |
|
|
|
(47,309 |
) |
|
|
149,432 |
|
Impairment of assets held for sale |
|
|
(132,949 |
) |
|
|
(103,625 |
) |
|
|
(132,949 |
) |
|
|
(103,625 |
) |
EBITDA(1) |
|
|
(54,261 |
) |
|
|
(28,198 |
) |
|
|
94,274 |
|
|
|
99,053 |
|
Acquisition/divestiture-related and non-recurring expenses(3) |
|
|
1,716 |
|
|
|
4,785 |
|
|
|
3,912 |
|
|
|
9,575 |
|
Loss (gain) on sales of assets, net of facility closure costs(4) |
|
|
— |
|
|
|
— |
|
|
|
85 |
|
|
|
(4,928 |
) |
Impairment of assets held for sale(5) |
|
|
132,949 |
|
|
|
103,625 |
|
|
|
132,949 |
|
|
|
103,625 |
|
Adjusted EBITDA(1) |
|
$ |
80,404 |
|
|
$ |
80,212 |
|
|
$ |
231,220 |
|
|
$ |
207,325 |
|
||||||||||||||||
|
||||||||||||||||
Items Affecting Comparability |
||||||||||||||||
Reconciliation of Net Loss to Adjusted Net Income and Adjusted Diluted Earnings per Share |
||||||||||||||||
(In thousands, except per share data) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Thirteen Weeks Ended |
|
Thirty-nine Weeks Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net loss |
|
$ |
(82,741 |
) |
|
$ |
(59,583 |
) |
|
$ |
(68,773 |
) |
|
$ |
(35,671 |
) |
Gain on extinguishment of debt(2) |
|
|
(582 |
) |
|
|
— |
|
|
|
(1,368 |
) |
|
|
— |
|
Acquisition/divestiture-related and non-recurring expenses(3) |
|
|
1,716 |
|
|
|
4,785 |
|
|
|
3,912 |
|
|
|
9,575 |
|
Loss (gain) on sales of assets, net of facility closure costs(4) |
|
|
— |
|
|
|
— |
|
|
|
85 |
|
|
|
(4,928 |
) |
Impairment of assets held for sale(5) |
|
|
132,949 |
|
|
|
103,625 |
|
|
|
132,949 |
|
|
|
103,625 |
|
Credit agreement amendment fee(6) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,600 |
|
Tax adjustment related to Back to Nature divestiture(7) |
|
|
— |
|
|
|
— |
|
|
|
14,736 |
|
|
|
— |
|
Tax effects of non-GAAP adjustments(8) |
|
|
(30,846 |
) |
|
|
(26,560 |
) |
|
|
(31,213 |
) |
|
|
(26,919 |
) |
Adjusted net income |
|
$ |
20,496 |
|
|
$ |
22,267 |
|
|
$ |
50,328 |
|
|
$ |
47,282 |
|
Adjusted diluted earnings per share |
|
$ |
0.27 |
|
|
$ |
0.31 |
|
|
$ |
0.69 |
|
|
$ |
0.67 |
|
____________________________ | |
(1) |
EBITDA and adjusted EBITDA are non-GAAP financial measures used by management to measure operating performance. A non-GAAP financial measure is defined as a numerical measure of the Company’s financial performance that excludes or includes amounts so as to be different from the most directly comparable measure calculated and presented in accordance with GAAP in the Company’s consolidated balance sheets and related consolidated statements of operations, comprehensive loss, changes in stockholders’ equity and cash flows. The Company defines EBITDA as net income (loss) before net interest expense, income taxes, and depreciation and amortization. The Company defines adjusted EBITDA as EBITDA adjusted for cash and non-cash acquisition/divestiture-related expenses, gains and losses (which may include third-party fees and expenses, integration, restructuring and consolidation expenses, amortization of acquired inventory fair value step-up, and gains and losses on the sale of certain assets); gains and losses on extinguishment of debt; impairment of assets held for sale; impairment of intangible assets; and non-recurring expenses, gains and losses. |
Management believes that it is useful to eliminate these items because it allows management to focus on what it deems to be a more reliable indicator of ongoing operating performance and the Company’s ability to generate cash flow from operations. The Company uses EBITDA and adjusted EBITDA in the Company’s business operations to, among other things, evaluate the Company’s operating performance, develop budgets and measure the Company’s performance against those budgets, determine employee bonuses and evaluate the Company’s cash flows in terms of cash needs. The Company also presents EBITDA and adjusted EBITDA because the Company believes they are useful indicators of the Company’s historical debt capacity and ability to service debt and because covenants in the Company’s credit agreement and the Company’s senior notes indentures contain ratios based on these measures. As a result, reports used by internal management during monthly operating reviews feature the EBITDA and adjusted EBITDA metrics. However, management uses these metrics in conjunction with traditional GAAP operating performance and liquidity measures as part of its overall assessment of company performance and liquidity, and therefore does not place undue reliance on these measures as its only measures of operating performance and liquidity. |
|
EBITDA and adjusted EBITDA are not recognized terms under GAAP and do not purport to be alternatives to operating income (loss), net income (loss) or any other GAAP measure as an indicator of operating performance. EBITDA and adjusted EBITDA are not complete net cash flow measures because EBITDA and adjusted EBITDA are measures of liquidity that do not include reductions for cash payments for an entity’s obligation to service its debt, fund its working capital, capital expenditures and acquisitions and pay its income taxes and dividends. Rather, EBITDA and adjusted EBITDA are potential indicators of an entity’s ability to fund these cash requirements. EBITDA and adjusted EBITDA are not complete measures of an entity’s profitability because they do not include certain costs and expenses and gains and losses described above. Because not all companies use identical calculations, this presentation of EBITDA and adjusted EBITDA may not be comparable to other similarly titled measures of other companies. However, EBITDA and adjusted EBITDA can still be useful in evaluating the Company’s performance against the Company’s peer companies because management believes these measures provide users with valuable insight into key components of GAAP amounts. |
|
(2) |
Net interest expense for the third quarter and first three quarters of 2023 were reduced by |
(3) |
Acquisition/divestiture-related and non-recurring expenses for the third quarter and first three quarters of 2023 of |
(4) |
During the first quarter of 2023, the Company completed the Back to Nature divestiture and recorded a loss on the sale of |
(5) |
In connection with the sale of assets relating to the Company’s Green Giant |
In connection with the Company’s decision to sell its Back to Nature business, the Company reclassified |
|
(6) |
During the second quarter of 2022, the Company paid a fee of |
(7) |
As a result of the Back to Nature divestiture, the Company incurred a capital loss for tax purposes, for which the Company recorded a deferred tax asset during the first quarter of 2023. A valuation allowance has been recorded against this deferred tax asset, which negatively impacted the Company’s first quarter of 2023 income taxes by |
(8) |
Represents the tax effects of the non-GAAP adjustments listed above, assuming a tax rate of 24.5%. |
|
|||||||||||||||
Items Affecting Comparability |
|||||||||||||||
Reconciliation of |
|||||||||||||||
(In thousands) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
Third Quarter Ended |
|
First Three Quarters Ended |
|||||||||||
|
|
|
|
|
|
|
|
|
|||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||
Net sales |
|
$ |
502,734 |
|
$ |
528,396 |
|
|
$ |
1,484,185 |
|
|
$ |
1,539,768 |
|
Net sales from acquisitions(2) |
|
|
— |
|
|
— |
|
|
|
(550 |
) |
|
|
— |
|
Net sales from discontinued or divested brands(3) |
|
|
9 |
|
|
(10,146 |
) |
|
|
40 |
|
|
|
(34,642 |
) |
Base business net sales(1) |
|
$ |
502,743 |
|
$ |
518,250 |
|
|
$ |
1,483,675 |
|
|
$ |
1,505,126 |
|
____________________________ | |
(1) |
Base business net sales is a non-GAAP financial measure used by management to measure operating performance. The Company defines base business net sales as the Company’s net sales excluding (1) the net sales of acquisitions until the net sales from such acquisitions are included in both comparable periods and (2) net sales of discontinued or divested brands. The portion of current period net sales attributable to recent acquisitions for which there is no corresponding period in the comparable period of the prior year is excluded. For each acquisition, the excluded period starts at the beginning of the most recent fiscal period being compared and ends on the first anniversary of the acquisition date. For discontinued or divested brands, the entire amount of net sales is excluded from each fiscal period being compared. The Company has included this financial measure because management believes it provides useful and comparable trend information regarding the results of the Company’s business without the effect of the timing of acquisitions and the effect of discontinued or divested brands. |
(2) |
Reflects net sales from the Yuma acquisition, for which there is no comparable period of net sales during the first four months of the first three quarters of 2022. The Yuma acquisition was completed on |
(3) |
For the third quarter and first three quarters of 2022, reflects net sales of the Back to Nature brand, which was sold on |
View source version on businesswire.com: https://www.businesswire.com/news/home/20231108876692/en/
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