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March 1, 2022
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Summary |
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Fourth Quarter of 2021 |
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Fiscal Year 2021 |
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(In millions, except per share data) |
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Change vs. |
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2 Yr. CAGR |
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Change vs. |
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2 Yr. CAGR |
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Amount |
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Q4 2020 |
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vs. Q4 2019 |
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Amount |
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FY 2020 |
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vs. FY 2019 |
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$ |
571.8 |
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12.1 |
% |
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10.3 |
% |
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$ |
2,056.3 |
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4.5 |
% |
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11.3 |
% |
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Base Business |
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$ |
503.6 |
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(1.1 |
)% |
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(0.2 |
)% |
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$ |
1,798.1 |
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(8.3 |
)% |
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2.6 |
% |
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Diluted EPS 2 |
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$ |
(0.07 |
) |
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(136.8 |
)% |
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N/A |
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$ |
1.02 |
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(50.0 |
)% |
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(6.6 |
)% |
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Adj. Diluted EPS 1 |
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$ |
0.39 |
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11.4 |
% |
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18.0 |
% |
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$ |
1.88 |
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(16.8 |
)% |
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7.1 |
% |
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Net Income (Loss) 2 |
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$ |
(4.8 |
) |
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(139.5 |
)% |
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N/A |
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$ |
67.4 |
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(49.0 |
)% |
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(6.1 |
)% |
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Adj. Net Income 1 |
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$ |
26.3 |
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15.5 |
% |
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21.7 |
% |
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$ |
123.7 |
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(15.3 |
)% |
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7.7 |
% |
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Adj. EBITDA 1 |
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$ |
85.1 |
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16.0 |
% |
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10.7 |
% |
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$ |
358.0 |
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(0.9 |
)% |
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8.8 |
% |
Guidance for Full Year Fiscal 2022
Commenting on the results,
Financial Results for the Fourth Quarter of 2021
Net sales for the fourth quarter of 2021 increased
Base business net sales for the fourth quarter of 2021 decreased
Net sales of Green Giant (including Le Sueur) increased
Gross profit was
During the fourth quarter of 2021, the Company’s gross profit was negatively impacted by higher than expected input cost inflation, including materially increased costs for raw materials and transportation. The Company expects input cost inflation will continue to have a significant industry-wide impact during fiscal 2022. The Company is attempting to mitigate the impact of inflation on its gross profit by locking in prices through short-term supply contracts and advance commodities purchase agreements and by implementing cost saving measures. The Company also announced list price increases in 2021 and again during the first quarter of 2022, and, where appropriate, has reduced trade promotions to its customers for certain of the Company’s products. However, increases in the prices the Company charges its customers generally lag behind rising input costs. As such, the Company did not fully offset the incremental costs that it faced in the fourth quarter of fiscal 2021 and may not fully offset the incremental costs that the Company is facing and expects to continue to face in fiscal 2022.
Selling, general and administrative expenses decreased
Net interest expense increased
The Company’s net loss was
For the fourth quarter of 2021, adjusted EBITDA was
For the fourth quarter of 2021, adjusted EBITDA before COVID-19 expenses1 was
Financial Results for the Full Year Fiscal 2021
Net sales for fiscal 2021 increased
Base business net sales1 for fiscal 2021 decreased
Net sales of the Company’s spices & seasonings3 increased
Net sales for fiscal 2021 for spices & seasonings, Green Giant, Ortega,
Gross profit was
During fiscal 2021, the Company’s gross profit was negatively impacted by higher than expected input cost inflation, including materially increased costs for raw materials and transportation. The Company expects input cost inflation will continue to have a significant industry-wide impact during fiscal 2022. The Company is attempting to mitigate the impact of inflation on its gross profit by locking in prices through short-term supply contracts and advance commodities purchase agreements and by implementing cost saving measures. The Company also announced list price increases in 2021 and again during the first quarter of 2022, and, where appropriate, has reduced trade promotions to its customers for certain of the Company’s products. However, increases in the prices the Company charges its customers generally lag behind rising input costs. As such, the Company did not fully offset the incremental costs that it faced in fiscal 2021 and may not fully offset the incremental costs that the Company is facing and expects to continue to face in fiscal 2022.
Selling, general and administrative expenses increased
Net interest expense increased
The Company’s net income was
For fiscal 2021, adjusted EBITDA was
For fiscal 2021, adjusted EBITDA before COVID-19 expenses was
At-The-Market Equity Offering Program
During fiscal 2021, the Company sold 3,695,706 shares of common stock under its previously announced “at-the-market” (ATM) equity offering program, 3,624,915 of which were sold during the fourth quarter. The Company generated
The Company used the net proceeds from shares sold under the ATM equity offering program during fiscal 2021 to repay revolving credit loans, to pay offering fees and expenses, and for general corporate purposes. The Company intends to use the net proceeds from any future sales of its common stock under the ATM offering for general corporate purposes, which could include, among other things, repayment, refinancing, redemption or repurchase of long-term debt or possible acquisitions.
Full Year Fiscal 2022 Guidance
For fiscal 2022, net sales are expected to be approximately
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, depreciation and amortization and loss on extinguishment of debt), “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 sale of assets) and non-recurring expenses, gains and losses) and “adjusted EBITDA before COVID-19 expenses” (adjusted EBITDA as adjusted for COVID-19 expenses5) 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, adjusted EBITDA and adjusted EBITDA before COVID-19 expenses, and a reconciliation of EBITDA, adjusted EBITDA and adjusted EBITDA before COVID-19 expenses to net income (loss) and to net cash provided by operating activities, is included below for the fourth quarter and full year 2021 and 2020, along with the components of EBITDA, adjusted EBITDA and adjusted EBITDA before COVID-19 expenses. 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 income, 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, adjusted diluted earnings per share, consumer trends, input cost inflation, list price increases, trade spend initiatives, margins, and the Company’s overall expectations for fiscal 2022 and beyond, and B&G Foods’ planned sale of the
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Consolidated Balance Sheets (In thousands, except share and per share data) (Unaudited) |
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2022 |
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2021 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
33,690 |
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$ |
52,182 |
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Trade accounts receivable, net |
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145,281 |
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132,935 |
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Inventories |
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609,794 |
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492,804 |
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Assets held for sale |
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3,256 |
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— |
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Prepaid expenses and other current assets |
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38,151 |
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43,619 |
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Income tax receivable |
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4,284 |
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15,761 |
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Total current assets |
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834,456 |
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737,301 |
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Property, plant and equipment, net |
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341,471 |
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371,854 |
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Operating lease right-of-use assets |
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65,166 |
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32,216 |
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644,871 |
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644,747 |
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Other intangible assets, net |
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1,927,119 |
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1,971,326 |
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Other assets |
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6,916 |
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5,948 |
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Deferred income taxes |
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8,546 |
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4,178 |
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Total assets |
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$ |
3,828,545 |
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$ |
3,767,570 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Trade accounts payable |
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$ |
129,861 |
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$ |
126,537 |
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Accrued expenses |
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66,901 |
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77,460 |
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Current portion of operating lease liabilities |
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12,420 |
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11,034 |
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Income tax payable |
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2,557 |
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101 |
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Dividends payable |
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32,548 |
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30,520 |
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Total current liabilities |
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244,287 |
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245,652 |
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Long-term debt |
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2,267,759 |
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2,334,086 |
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Deferred income taxes |
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310,641 |
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293,121 |
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Long-term operating lease liabilities, net of current portion |
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55,607 |
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23,959 |
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Other liabilities |
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29,997 |
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38,875 |
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Total liabilities |
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2,908,291 |
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2,935,693 |
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Stockholders’ equity: |
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Preferred stock, |
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— |
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— |
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Common stock, |
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685 |
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643 |
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Additional paid-in capital |
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3,547 |
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— |
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Accumulated other comprehensive loss |
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(18,169 |
) |
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(35,594 |
) |
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Retained earnings |
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934,191 |
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866,828 |
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Total stockholders’ equity |
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920,254 |
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831,877 |
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Total liabilities and stockholders’ equity |
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$ |
3,828,545 |
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$ |
3,767,570 |
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Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) |
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Fourth Quarter Ended |
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Fiscal Year Ended |
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2022 |
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2021 |
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2022 |
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2021 |
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Net sales |
$ |
571,790 |
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$ |
510,241 |
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$ |
2,056,264 |
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$ |
1,967,909 |
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Cost of goods sold |
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469,873 |
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403,544 |
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1,619,298 |
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1,486,169 |
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Gross profit |
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101,917 |
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106,697 |
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436,966 |
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481,740 |
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Operating expenses: |
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Selling, general and administrative expenses |
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52,308 |
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58,476 |
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196,172 |
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186,191 |
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Amortization expense |
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5,396 |
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4,914 |
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21,627 |
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19,111 |
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Impairment of intangible assets |
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23,088 |
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— |
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|
23,088 |
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— |
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Operating income |
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21,125 |
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|
43,307 |
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|
196,079 |
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276,438 |
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Other income and expenses: |
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Interest expense, net |
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26,577 |
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24,316 |
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106,889 |
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101,634 |
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Other income |
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(1,126 |
) |
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(702 |
) |
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(4,464 |
) |
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(2,558 |
) |
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Income (loss) before income tax expense |
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(4,326 |
) |
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19,693 |
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93,654 |
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177,362 |
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Income tax expense |
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487 |
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7,521 |
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26,291 |
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45,374 |
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Net income (loss) |
$ |
(4,813 |
) |
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$ |
12,172 |
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$ |
67,363 |
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$ |
131,988 |
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Weighted average shares outstanding: |
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Basic |
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66,146 |
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64,253 |
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65,088 |
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64,163 |
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Diluted |
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66,874 |
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64,927 |
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65,747 |
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64,557 |
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Earnings (loss) per share: |
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Basic |
$ |
(0.07 |
) |
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$ |
0.19 |
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$ |
1.03 |
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$ |
2.06 |
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Diluted |
$ |
(0.07 |
) |
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$ |
0.19 |
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$ |
1.02 |
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$ |
2.04 |
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Cash dividends declared per share |
$ |
0.475 |
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$ |
0.475 |
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$ |
1.900 |
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$ |
1.900 |
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Items Affecting Comparability Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Before COVID-19 Expenses to Net Income (Loss) and to Net Cash Provided by Operating Activities (In thousands) (Unaudited) |
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Fourth Quarter Ended |
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Fiscal Year Ended |
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2022 |
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2021 |
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2022 |
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2021 |
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Net income (loss) |
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$ |
(4,813 |
) |
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$ |
12,172 |
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$ |
67,363 |
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$ |
131,988 |
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Income tax expense |
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|
487 |
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|
7,521 |
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26,291 |
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|
45,374 |
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Interest expense, net |
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26,577 |
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|
24,316 |
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106,889 |
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|
101,634 |
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Depreciation and amortization |
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21,631 |
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|
17,193 |
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|
82,888 |
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|
63,701 |
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EBITDA(1) |
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43,882 |
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|
61,202 |
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|
283,431 |
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|
342,697 |
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Acquisition/divestiture-related and non-recurring expenses(2) |
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18,287 |
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|
10,824 |
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|
32,504 |
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|
17,227 |
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Amortization of acquisition-related inventory step-up(3) |
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— |
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|
1,323 |
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|
5,054 |
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|
1,323 |
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Accrual for multi-employer pension plan withdrawal liability(4) |
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|
(149 |
) |
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|
— |
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|
13,907 |
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|
|
— |
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Impairment of intangible assets(5) |
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|
23,088 |
|
|
|
— |
|
|
|
23,088 |
|
|
|
— |
|
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Adjusted EBITDA(1) |
|
|
85,108 |
|
|
|
73,349 |
|
|
|
357,984 |
|
|
|
361,247 |
|
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COVID-19 expenses(6) |
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|
351 |
|
|
|
4,296 |
|
|
|
4,650 |
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|
|
13,521 |
|
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Adjusted EBITDA before COVID-19 expenses(1) |
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|
85,459 |
|
|
|
77,645 |
|
|
|
362,634 |
|
|
|
374,768 |
|
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Income tax expense |
|
|
(487 |
) |
|
|
(7,521 |
) |
|
|
(26,291 |
) |
|
|
(45,374 |
) |
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Interest expense, net |
|
|
(26,577 |
) |
|
|
(24,316 |
) |
|
|
(106,889 |
) |
|
|
(101,634 |
) |
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Acquisition/divestiture-related and non-recurring expenses(2) |
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|
(18,287 |
) |
|
|
(10,824 |
) |
|
|
(32,504 |
) |
|
|
(17,227 |
) |
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Amortization of acquisition-related inventory step-up(3) |
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|
— |
|
|
|
(1,323 |
) |
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|
(5,054 |
) |
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|
(1,323 |
) |
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Accrual for multi-employer pension plan withdrawal liability(4) |
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|
149 |
|
|
|
— |
|
|
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(13,907 |
) |
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— |
|
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Net loss/(gain) on sales and disposals of property, plant and equipment |
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|
775 |
|
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|
11 |
|
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|
775 |
|
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(50 |
) |
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Deferred income taxes |
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|
(7,625 |
) |
|
|
22,745 |
|
|
|
7,269 |
|
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|
42,613 |
|
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Amortization of deferred debt financing costs and bond discount/premium |
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|
1,162 |
|
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|
927 |
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|
4,606 |
|
|
|
4,691 |
|
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Share-based compensation expense |
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|
2,155 |
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|
3,557 |
|
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|
5,383 |
|
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|
10,618 |
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Changes in assets and liabilities, net of effects of business combinations |
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|
44,719 |
|
|
|
(7,431 |
) |
|
|
(97,494 |
) |
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|
27,916 |
|
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Net cash provided by operating activities |
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$ |
81,092 |
|
|
$ |
49,174 |
|
|
$ |
93,878 |
|
|
$ |
281,477 |
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| ____________________ | ||
| (1) |
EBITDA, adjusted EBITDA and adjusted EBITDA before COVID-19 expenses 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 income, changes in stockholders’ equity and cash flows. The Company defines EBITDA as net income (loss) before net interest expense, income taxes, depreciation and amortization and loss on extinguishment of debt. 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 assets); and non-recurring expenses, gains and losses, including severance and other expenses relating to the separation of the Company’s former chief executive officer in fiscal 2020; a workforce reduction in fiscal 2019; intangible asset impairment charges; and an accrual for the present value of a multi-employer pension plan withdrawal liability. The Company defines adjusted EBITDA before COVID-19 expenses as adjusted EBITDA adjusted for COVID-19 expenses. |
|
|
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, adjusted EBITDA and adjusted EBITDA before COVID-19 expenses 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, adjusted EBITDA and adjusted EBITDA before COVID-19 expenses 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, adjusted EBITDA and adjusted EBITDA before COVID-19 expenses 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, adjusted EBITDA and adjusted EBITDA before COVID-19 expenses are not recognized terms under GAAP and do not purport to be alternatives to operating income, net income (loss) or any other GAAP measure as an indicator of operating performance. EBITDA, adjusted EBITDA and adjusted EBITDA before COVID-19 expenses are not complete net cash flow measures because EBITDA, adjusted EBITDA and adjusted EBITDA before COVID-19 expenses 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, adjusted EBITDA and adjusted EBITDA before COVID-19 expenses are potential indicators of an entity’s ability to fund these cash requirements. EBITDA, adjusted EBITDA and adjusted EBITDA before COVID-19 expenses 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, adjusted EBITDA and adjusted EBITDA before COVID-19 expenses may not be comparable to other similarly titled measures of other companies. However, EBITDA, adjusted EBITDA and adjusted EBITDA before COVID-19 expenses 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) |
Acquisition/divestiture-related and non-recurring expenses for the fourth quarter and fiscal 2021 of |
|
| (3) |
For fiscal 2021, amortization of acquisition-related inventory step-up of |
|
| (4) |
In connection with the closure and pending sale of the Company’s |
|
| (5) |
During the fourth quarter of 2021, the Company recorded impairment charges of |
|
| (6) |
COVID-19 expenses of |
|
|
Items Affecting Comparability Reconciliation of Adjusted Net Income and Adjusted Diluted Earnings per Share to Net Income (Loss) (In thousands, except per share data) (Unaudited) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Fourth Quarter Ended |
|
Fiscal Year Ended |
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||
|
Net income (loss) |
|
$ |
(4,813 |
) |
|
$ |
12,172 |
|
$ |
67,363 |
|
$ |
131,988 |
|
|
Acquisition/divestiture-related and non-recurring expenses, net of tax(1) |
|
|
13,807 |
|
|
|
8,172 |
|
|
24,541 |
|
|
13,006 |
|
|
Accelerated amortization of deferred debt financing costs(2) |
|
|
— |
|
|
|
— |
|
|
— |
|
|
808 |
|
|
Tax benefit(3) |
|
|
— |
|
|
|
— |
|
|
— |
|
|
(2,258 |
) |
|
Amortization of acquisition-related inventory step-up, net of tax(4) |
|
|
— |
|
|
|
999 |
|
|
3,816 |
|
|
999 |
|
|
Accrual for multi-employer pension plan withdrawal liability, net of tax(5) |
|
|
(112 |
) |
|
|
— |
|
|
10,500 |
|
|
— |
|
|
Impairment of intangible assets, net of tax(6) |
|
|
17,431 |
|
|
|
— |
|
|
17,431 |
|
|
— |
|
|
Tax true-ups(7) |
|
|
— |
|
|
|
1,432 |
|
|
— |
|
|
1,432 |
|
|
Adjusted net income |
|
$ |
26,313 |
|
|
$ |
22,775 |
|
$ |
123,651 |
|
$ |
145,975 |
|
|
Adjusted diluted earnings per share |
|
$ |
0.39 |
|
|
$ |
0.35 |
|
$ |
1.88 |
|
$ |
2.26 |
|
| ____________________ | ||
| (1) |
Acquisition/divestiture-related and non-recurring expenses for the fourth quarter and fiscal 2021 primarily includes acquisition and integration expenses for the Crisco acquisition, expenses for the closure and pending sale of the Company’s |
|
| (2) |
Interest expense for fiscal 2020 includes the accelerated amortization of deferred debt financing costs of |
|
| (3) |
Fiscal 2020 includes a |
|
| (4) |
For fiscal 2021, amortization of acquisition-related inventory step-up of |
|
| (5) |
In connection with the closure and pending sale of the Company’s |
|
| (6) |
During the fourth quarter of 2021, the Company recorded impairment charges of |
|
| (7) |
Tax true-ups for the fourth quarter and fiscal 2020 reflects |
|
|
Items Affecting Comparability Reconciliation of Base Business (In thousands) (Unaudited) |
||||||||||||||||
|
2021 Compared to 2020 |
||||||||||||||||
|
|
|
|
||||||||||||||
|
|
Fourth Quarter Ended |
Fiscal Year Ended |
||||||||||||||
|
|
|
|
|
|
||||||||||||
|
|
2022 |
2021 |
2022 |
2021 |
||||||||||||
|
Net sales |
$ |
571,790 |
|
$ |
510,241 |
|
$ |
2,056,264 |
|
$ |
1,967,909 |
|
||||
|
Net sales from acquisitions(2) |
|
(68,006 |
) |
|
— |
|
|
(255,721 |
) |
|
— |
|
||||
|
Net sales from discontinued brands(3) |
|
(168 |
) |
|
(1,220 |
) |
|
(2,450 |
) |
|
(7,699 |
) |
||||
|
Base business net sales |
$ |
503,616 |
|
$ |
509,021 |
|
$ |
1,798,093 |
|
$ |
1,960,210 |
|
||||
|
|
|
|
|
|
||||||||||||
|
2021 Compared to 2019 |
||||||||||||||||
|
|
Fourth Quarter Ended |
Fiscal Year Ended |
||||||||||||||
|
|
|
|
|
|
||||||||||||
|
|
2022 |
2019 |
2022 |
2019 |
||||||||||||
|
Net sales |
$ |
571,790 |
|
$ |
470,172 |
|
$ |
2,056,264 |
|
$ |
1,660,414 |
|
||||
|
Net sales from acquisitions(4) |
|
(105,696 |
) |
|
— |
|
|
(318,952 |
) |
|
— |
|
||||
|
Net sales from divested and discontinued brands(3) |
|
(168 |
) |
|
(2,172 |
) |
|
(2,450 |
) |
|
(11,444 |
) |
||||
|
Base business net sales |
$ |
465,926 |
|
$ |
468,000 |
|
$ |
1,734,862 |
|
$ |
1,648,970 |
|
||||
| ____________________ | ||
| (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 for Crisco for two months of the fourth quarter, and fiscal 2021, respectively, for which there is no comparable period of net sales during the fourth quarter and fiscal 2020, respectively. The Crisco acquisition closed on |
|
| (3) |
Reflects net sales of the SnackWell’s and Farmwise brands, which are being discontinued. |
|
| (4) |
Reflects (a) |
|
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