THOMASVILLE, Ga., May 16, 2024
/PRNewswire/ -- Flowers Foods, Inc. (NYSE: FLO) today reported
financial results for the company's 16-week first quarter ended
April 20, 2024.
First Quarter Summary:
Compared to the prior year
first quarter where applicable
- Sales increased 2.8% to a first-quarter record, $1.577 billion.
- Net income increased 3.3% to $73.0
million, primarily due to moderating input costs and price
increases implemented in the prior year, partly offset by higher
selling, distribution, and administrative expenses. Adjusted net
income(1) decreased 0.8% to $80.3
million.
- Adjusted EBITDA(1) increased 5.5% to $159.4 million, representing 10.1% of sales, a
30-basis point increase.
- Diluted EPS increased $0.01 to
$0.34. Adjusted diluted EPS(1) was
consistent with the prior year period at $0.38.
Chairman and CEO Remarks:
"Our solid first quarter results highlight the increasing
effectiveness of our portfolio strategy and investments in
marketing and innovation," said Ryals McMullian, chairman and CEO
of Flowers Foods. "Amid challenging market conditions, our brands
continued to thrive, gaining market share as we outperformed the
fresh packaged bread category. Even more impressively, we grew
quarterly branded retail volumes for the first time since 2020.
Initiatives to improve the profitability in away-from-home and
private label are also taking hold, significantly expanding margins
in those businesses.
"We are maintaining our 2024 outlook, which incorporates
continued volume improvement while acknowledging the ongoing
economic uncertainty and its potential impact on consumer behavior
and the promotional environment. Our full-year results are also
expected to benefit from an expansion of our savings initiatives
and new business wins. Looking ahead, we remain focused on building
continued momentum while capitalizing on more favorable trends in
the bread category. We remain confident that our portfolio strategy
will enable further progress and performance in line with our
long-term financial targets."
For the 52-week Fiscal 2024, the Company Expects:
- Sales in the range of approximately $5.091 billion to $5.172
billion, representing 0.0% to 1.6% growth compared to the
prior year.
- Adjusted EBITDA(2) in the range of approximately $524 million to $553
million.
- Adjusted diluted EPS(1) in the range of approximately
$1.20 to $1.30.
The company's outlook is based on the following assumptions:
- Depreciation and amortization in the range of $160 million to $165
million.
- Net interest expense of approximately $22 million to $26
million.
- An effective tax rate of approximately 25%.
- Weighted average diluted share count for the year of
approximately 213 million shares.
- Capital expenditures in the range of $145 million to $155
million, with $3 million to
$6 million related to the ERP
upgrade, compared to prior guidance of $120
million to $130 million.
Matters Affecting Comparability:
Reconciliation of
Earnings per Share to Adjusted Earnings per Share
|
|
|
|
|
|
For the 16-Week
Period Ended
|
|
|
For the 16-Week
Period Ended
|
|
|
|
April 20,
2024
|
|
|
April 22,
2023
|
|
Net income per diluted
common share
|
|
$
|
0.34
|
|
|
$
|
0.33
|
|
Business process
improvement costs
|
|
|
0.01
|
|
|
|
0.02
|
|
Impairment of
assets
|
|
|
0.01
|
|
|
|
—
|
|
Restructuring
charges
|
|
NM
|
|
|
|
0.01
|
|
Restructuring-related
implementation costs
|
|
NM
|
|
|
|
—
|
|
Acquisition-related
costs
|
|
|
—
|
|
|
|
0.01
|
|
Adjusted net income per
diluted common share
|
|
$
|
0.38
|
|
|
$
|
0.38
|
|
NM - not
meaningful.
|
Certain amounts may
not add due to rounding.
|
Consolidated First Quarter Operating
Highlights
Compared to the prior year first quarter where
applicable
- Sales increased 2.8% to $1.577
billion, a first-quarter record. Pricing/mix(3) increased
3.1%, volume(4) declined 0.8%, and the Papa Pita acquisition added
0.5%.
- Branded Retail sales increased $34.4
million or 3.5% to $1.015
billion due to pricing actions taken in the prior year,
improved mix from greater branded organic product sales, and the
acquisition contribution. Pricing/mix(3) rose 2.6%, volume(4)
increased 0.3%, and the Papa Pita acquisition added 0.6%.
- Other sales increased $7.9
million or 1.4% to $561.9
million due to pricing actions taken in the prior year and
the acquisition contribution, partially offset by volume declines
related to business rationalizations. Pricing/mix(3) rose 3.3%,
volume(4) declined 2.2%, and the Papa Pita acquisition added
0.3%.
- Materials, supplies, labor, and other production costs
(exclusive of depreciation and amortization) were 50.6% of sales, a
160-basis point decrease. These costs decreased as a percentage of
sales due to prior year inflation-driven pricing actions and
moderating ingredient and packaging costs, partially offset by
higher labor costs.
- Selling, distribution, and administrative (SD&A) expenses
were 39.7% of sales, a 110-basis point increase. Increased labor
and technology expenses were partly offset by lower distributor
distribution fees as a percentage of sales. Excluding matters
affecting comparability, adjusted SD&A expenses were 39.3% of
sales, a 130-basis point increase, due to the factors listed
above.
- Restructuring charges were $0.6
million, or 0.0% of sales, compared to $4.2 million, or 0.3% of sales in the prior year
quarter.
- The company recognized impairments of $4.0 million that represented 0.3% of sales for a
cost method investment.
- Depreciation and amortization (D&A) expenses were
$48.2 million or 3.1% of sales, a
20-basis point increase.
- Net interest expense increased $1.7
million primarily due to higher average amounts of debt
outstanding, increased interest rates on that debt, and relatively
lower interest income.
- Net income increased 3.3% to $73.0
million. Adjusted net income(1) decreased 0.8% to
$80.3 million.
- Adjusted EBITDA(1) increased 5.5% to $159.4 million, representing 10.1% of sales, a
30-basis point increase.
Cash Flow, Capital Allocation, and Capital Return
For the first quarter of fiscal 2024, cash flow from operating
activities increased $47.2 million to
$105.1 million, capital expenditures
decreased $0.6 million to
$33.3 million, and dividends paid to
shareholders increased $2.0 million
to $51.1 million. Cash and cash
equivalents were $15.8 million at
quarter end.
(1)
|
Adjusted for items
affecting comparability. See reconciliations of non-GAAP measures
in the financial statements following this release. Earnings are
net income. EBITDA and Adjusted EBITDA are reconciled to net
income.
|
(2)
|
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.
|
(3)
|
Calculated as
(current year period units X change in price per unit) / prior year
period sales dollars
|
(4)
|
Calculated as (prior
year period price per unit X change in units) / prior year period
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 Flowers Foods website. The company will host a live
question and answer webcast at 5:00
p.m. (Eastern) on May 16,
2024. The pre-recorded remarks and webcast will be archived
on the investors page of flowersfoods.com.
About Flowers Foods
Headquartered in Thomasville,
Ga., Flowers Foods, Inc. (NYSE: FLO) is one of the largest
producers of packaged bakery foods in the
United States with 2023 sales of $5.1
billion. Flowers operates bakeries across the country that
produce a wide range of bakery products. Among the company's top
brands are Nature's Own, Dave's Killer Bread,
Wonder, Canyon Bakehouse, and Tastykake. Learn more
at www.flowersfoods.com.
FLO-IR FLO-CORP
Forward-Looking Statements
Statements contained in this press release and certain other
written or oral statements made from time to time by Flowers Foods,
Inc. (the "company", "Flowers Foods", "Flowers", "us", "we", or
"our") and its representatives that are not historical facts are
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements relate to
current expectations regarding our business and our future
financial condition and results of operations and are often
identified by the use of words and phrases such as "anticipate,"
"believe," "continue," "could," "estimate," "expect," "intend,"
"may," "plan," "predict," "project," "should," "will," "would," "is
likely to," "is expected to" or "will continue," or the negative of
these terms or other comparable terminology. These forward-looking
statements are based upon assumptions we believe are reasonable.
Forward-looking statements are based on current information and are
subject to risks and uncertainties that could cause our actual
results to differ materially from those projected. Certain factors
that may cause actual results, performance, liquidity, and
achievements to differ materially from those projected are
discussed in our Annual Report on Form 10-K for the year ended
December 30, 2023 (the "Form 10-K")
and Quarterly Reports on Form 10-Q filed with the Securities and
Exchange Commission ("SEC") and may include, but are not limited
to, (a) unexpected changes in any of the following: (1) general
economic and business conditions; (2) the competitive setting in
which we operate, including advertising or promotional strategies
by us or our competitors, as well as changes in consumer demand;
(3) interest rates and other terms available to us on our
borrowings; (4) supply chain conditions and any related impact on
energy and raw materials costs and availability and hedging
counter-party risks; (5) relationships with or increased costs
related to our employees and third-party service providers; (6)
laws and regulations (including environmental and health-related
issues); and (7) accounting standards or tax rates in the markets
in which we operate, (b) the loss or financial instability of
any significant customer(s), including as a result of product
recalls or safety concerns related to our products, (c) changes in
consumer behavior, trends and preferences, including health and
whole grain trends, and the movement toward less expensive store
branded products, (d) the level of success we achieve in developing
and introducing new products and entering new markets, (e) our
ability to implement new technology and customer requirements as
required, (f) our ability to operate existing, and any new,
manufacturing lines according to schedule, (g) our ability to
implement and achieve our corporate responsibility goals in
accordance with regulatory requirements and expectations of
stakeholders, suppliers, and customers; (h) our ability to execute
our business strategies which may involve, among other things, (1)
the ability to realize the intended benefits of completed, planned
or contemplated acquisitions, dispositions or joint ventures, (2)
the deployment of new systems (e.g., our enterprise resource
planning ("ERP") system), distribution channels and technology, and
(3) an enhanced organizational structure (e.g., our sales and
supply chain reorganization), (i) consolidation within the baking
industry and related industries, (j) changes in pricing, customer
and consumer reaction to pricing actions (including decreased
volumes), and the pricing environment among competitors within the
industry, (k) our ability to adjust pricing to offset, or partially
offset, inflationary pressure on the cost of our products,
including ingredient and packaging costs; (l) disruptions in our
direct-store-delivery distribution model, including litigation or
an adverse ruling by a court or regulatory or governmental body
that could affect the independent contractor classifications of the
independent distributor partners, and changes to our
direct-store-delivery distribution model in California, (m) increasing legal complexity
and legal proceedings that we are or may become subject to, (n)
labor shortages and turnover or increases in employee and
employee-related costs, (o) the credit, business, and legal risks
associated with independent distributor partners and customers,
which operate in the highly competitive retail food and foodservice
industries, (p) any business disruptions due to political
instability, pandemics, armed hostilities (including the ongoing
conflict between Russia and
Ukraine and the conflict in the
Middle East), incidents of
terrorism, natural disasters, labor strikes or work stoppages,
technological breakdowns, product contamination, product recalls or
safety concerns related to our products, or the responses to or
repercussions from any of these or similar events or conditions and
our ability to insure against such events, (q) the failure of our
information technology systems to perform adequately, including any
interruptions, intrusions, cyber-attacks or security breaches of
such systems or risks associated with the implementation of the
upgrade of our ERP system; and (r) the potential impact of climate
change on the company, including physical and transition risks,
availability or restriction of resources, higher regulatory and
compliance costs, reputational risks, and availability of capital
on attractive terms. The foregoing list of important factors does
not include all such factors, nor does it necessarily present them
in order of importance. In addition, you should consult other
disclosures made by the company (such as in our other filings with
the SEC or in company press releases) for other factors that may
cause actual results to differ materially from those projected by
the company. Refer to Part I, Item 1A., Risk Factors, of the Form
10-K and subsequent filings with the SEC for additional information
regarding factors that could affect the company's results of
operations, financial condition and liquidity. We caution you not
to place undue reliance on forward-looking statements, as they
speak only as of the date made and are inherently uncertain. The
company undertakes no obligation to publicly revise or update such
statements, except as required by law. You are advised, however, to
consult any further public disclosures by the company (such as in
our filings with the SEC or in company press releases) on related
subjects.
Information Regarding Non-GAAP Financial Measures
The company prepares its consolidated financial statements in
accordance with U.S. Generally Accepted Accounting Principles
(GAAP). However, from time to time, the company may present in its
public statements, press releases and SEC filings, non-GAAP
financial measures such as, EBITDA, adjusted EBITDA, adjusted
EBITDA margin, adjusted net income, adjusted diluted EPS, adjusted
income tax expense, adjusted selling, distribution and
administrative expenses (SD&A), and gross margin excluding
depreciation and amortization. The reconciliations attached provide
reconciliations of the non-GAAP measures used in this presentation
or release to the most comparable GAAP financial measure. The
company's definitions of these non-GAAP measures may differ from
similarly titled measures used by others. These non-GAAP measures
should be considered supplemental to, and not a substitute for,
financial information prepared in accordance with GAAP.
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 May 25, 2023).
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 presentation or release to the most
comparable GAAP financial measure.
Flowers Foods,
Inc
Condensed
Consolidated Balance Sheets
|
|
(000's
omitted)
|
|
|
|
|
|
April 20,
2024
|
|
|
December 30,
2023
|
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
15,818
|
|
|
$
|
22,527
|
|
Other current
assets
|
|
|
661,975
|
|
|
|
655,422
|
|
Property, plant and
equipment, net
|
|
|
959,096
|
|
|
|
962,981
|
|
Right-of-use leases,
net
|
|
|
294,539
|
|
|
|
276,864
|
|
Distributor notes
receivable (1)
|
|
|
128,802
|
|
|
|
133,335
|
|
Other
assets
|
|
|
41,014
|
|
|
|
40,286
|
|
Cost in excess of net
tangible assets, net
|
|
|
1,327,922
|
|
|
|
1,335,538
|
|
Total
assets
|
|
$
|
3,429,166
|
|
|
$
|
3,426,953
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
liabilities
|
|
$
|
564,631
|
|
|
$
|
611,546
|
|
Long-term
debt
|
|
|
1,043,543
|
|
|
|
1,048,144
|
|
Right-of-use lease
liabilities (2)
|
|
|
305,190
|
|
|
|
284,501
|
|
Other
liabilities
|
|
|
139,922
|
|
|
|
130,980
|
|
Stockholders'
equity
|
|
|
1,375,880
|
|
|
|
1,351,782
|
|
Total liabilities and
stockholders' equity
|
|
$
|
3,429,166
|
|
|
$
|
3,426,953
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes current
portion of $10,611 and $9,764, respectively.
|
(2)
|
Includes current
portion of $57,763 and $47,606, respectively.
|
Flowers Foods,
Inc
Consolidated
Statement of Operations
|
|
(000's omitted, except
per share data)
|
|
|
|
|
|
For the 16-Week
Period
Ended
|
|
|
For the 16-Week
Period
Ended
|
|
|
|
April 20,
2024
|
|
|
April 22,
2023
|
|
Sales
|
|
$
|
1,576,818
|
|
|
$
|
1,534,493
|
|
Materials, supplies,
labor and other production costs (exclusive of
depreciation and amortization shown separately
below)
|
|
|
797,186
|
|
|
|
800,852
|
|
Selling, distribution,
and administrative expenses
|
|
|
625,251
|
|
|
|
591,943
|
|
Restructuring
charges
|
|
|
598
|
|
|
|
4,195
|
|
Impairment of
assets
|
|
|
4,000
|
|
|
|
—
|
|
Depreciation and
amortization expense
|
|
|
48,235
|
|
|
|
43,735
|
|
Income from
operations
|
|
|
101,548
|
|
|
|
93,768
|
|
Other pension
benefit
|
|
|
(158)
|
|
|
|
(83)
|
|
Interest expense,
net
|
|
|
5,611
|
|
|
|
3,886
|
|
Income before income
taxes
|
|
|
96,095
|
|
|
|
89,965
|
|
Income tax
expense
|
|
|
23,052
|
|
|
|
19,255
|
|
Net income
|
|
$
|
73,043
|
|
|
$
|
70,710
|
|
Net income per diluted
common share
|
|
$
|
0.34
|
|
|
$
|
0.33
|
|
Diluted weighted
average shares outstanding
|
|
|
212,114
|
|
|
|
213,397
|
|
Flowers Foods,
Inc
Condensed
Consolidated Statement of Cash Flows
|
(000's
omitted)
|
|
|
|
For the 16-Week
Period
Ended
|
|
|
For the 16-Week Period
Ended
|
|
|
|
April 20,
2024
|
|
|
April 22,
2023
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
73,043
|
|
|
$
|
70,710
|
|
Adjustments to
reconcile net income to net cash from operating
activities:
|
|
|
|
|
|
|
Total
non-cash adjustments
|
|
|
78,221
|
|
|
|
62,975
|
|
Changes
in assets and liabilities
|
|
|
(46,115)
|
|
|
|
(75,733)
|
|
Net cash provided by
operating activities
|
|
|
105,149
|
|
|
|
57,952
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Purchase
of property, plant and equipment
|
|
|
(33,332)
|
|
|
|
(33,958)
|
|
Proceeds
from sale of property, plant and equipment
|
|
|
60
|
|
|
|
96
|
|
Acquisition of business
|
|
|
—
|
|
|
|
(270,451)
|
|
Other
|
|
|
(2,655)
|
|
|
|
3,106
|
|
Net cash disbursed
for investing activities
|
|
|
(35,927)
|
|
|
|
(301,207)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Dividends
paid
|
|
|
(51,106)
|
|
|
|
(49,100)
|
|
Stock
repurchases
|
|
|
(8,879)
|
|
|
|
(10,981)
|
|
Net
change in debt borrowings
|
|
|
(5,000)
|
|
|
|
171,000
|
|
Payments
on financing leases
|
|
|
(95)
|
|
|
|
(599)
|
|
Other
|
|
|
(10,851)
|
|
|
|
(4,479)
|
|
Net cash (disbursed
for) provided by financing activities
|
|
|
(75,931)
|
|
|
|
105,841
|
|
Net decrease in cash
and cash equivalents
|
|
|
(6,709)
|
|
|
|
(137,414)
|
|
Cash and cash
equivalents at beginning of period
|
|
|
22,527
|
|
|
|
165,134
|
|
Cash and cash
equivalents at end of period
|
|
$
|
15,818
|
|
|
$
|
27,720
|
|
Flowers Foods,
Inc
Sales by Sales Class
and Sales Bridge
|
(000's
omitted)
|
|
Sales by Sales Class
|
|
Sales by Sales
Class
|
|
For the 16-Week
Period
Ended
|
|
|
For the 16-Week
Period
Ended
|
|
|
|
|
|
|
|
|
|
April 20,
2024
|
|
|
April 22,
2023
|
|
|
$ Change
|
|
|
% Change
|
|
Branded
Retail
|
|
$
|
1,014,901
|
|
|
$
|
980,479
|
|
|
$
|
34,422
|
|
|
|
3.5
|
%
|
Other
|
|
|
561,917
|
|
|
|
554,014
|
|
|
|
7,903
|
|
|
|
1.4
|
%
|
Total
Sales
|
|
$
|
1,576,818
|
|
|
$
|
1,534,493
|
|
|
$
|
42,325
|
|
|
|
2.8
|
%
|
Sales
Bridge
|
For the 16-week
period ended April 20, 2024
|
|
Branded
Retail
|
|
|
Other
|
|
|
Total
|
|
Pricing/mix*
|
|
|
2.6
|
%
|
|
|
3.3
|
%
|
|
|
3.1
|
%
|
Volume*
|
|
|
0.3
|
%
|
|
|
(2.2)
|
%
|
|
|
(0.8)
|
%
|
Acquisition
|
|
|
0.6
|
%
|
|
|
0.3
|
%
|
|
|
0.5
|
%
|
Total percentage
point change in sales
|
|
|
3.5
|
%
|
|
|
1.4
|
%
|
|
|
2.8
|
%
|
|
|
|
|
|
|
|
|
|
|
* 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 Sales $
|
|
|
|
|
|
|
|
|
|
|
|
Volume $ = Prior year
period price per unit × change in units
|
|
Volume % = Volume $ ÷
Prior year period Sales $
|
|
Flowers Foods,
Inc
Reconciliation of
GAAP to Non-GAAP Measures
|
|
(000's omitted, except
per share data)
|
|
|
|
|
|
Reconciliation of
Earnings per Share to Adjusted Earnings per
Share
|
|
|
|
For the 16-Week
Period Ended
|
|
|
For the 16-Week Period
Ended
|
|
|
|
April 20,
2024
|
|
|
April 22,
2023
|
|
Net income per diluted
common share
|
|
$
|
0.34
|
|
|
$
|
0.33
|
|
Business process
improvement costs
|
|
|
0.01
|
|
|
|
0.02
|
|
Impairment of
assets
|
|
|
0.01
|
|
|
|
—
|
|
Restructuring
charges
|
|
NM
|
|
|
|
0.01
|
|
Restructuring-related
implementation costs
|
|
NM
|
|
|
|
—
|
|
Acquisition-related
costs
|
|
|
—
|
|
|
|
0.01
|
|
Adjusted net income per
diluted common share
|
|
$
|
0.38
|
|
|
$
|
0.38
|
|
NM - not
meaningful
|
|
|
|
|
|
|
Certain amounts may
not add due to rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Gross Margin
|
|
|
|
For the 16-Week
Period
Ended
|
|
|
For the 16-Week Period
Ended
|
|
|
|
April 20,
2024
|
|
|
April 22,
2023
|
|
Sales
|
|
$
|
1,576,818
|
|
|
$
|
1,534,493
|
|
Materials, supplies,
labor and other production costs (exclusive
of depreciation and amortization)
|
|
|
797,186
|
|
|
|
800,852
|
|
Gross margin excluding
depreciation and amortization
|
|
|
779,632
|
|
|
|
733,641
|
|
Less depreciation and
amortization for production activities
|
|
|
26,353
|
|
|
|
24,448
|
|
Gross margin
|
|
$
|
753,279
|
|
|
$
|
709,193
|
|
Depreciation and
amortization for production activities
|
|
$
|
26,353
|
|
|
$
|
24,448
|
|
Depreciation and
amortization for selling, distribution, and
administrative activities
|
|
|
21,882
|
|
|
|
19,287
|
|
Total depreciation and
amortization
|
|
$
|
48,235
|
|
|
$
|
43,735
|
|
|
|
|
|
Reconciliation of
Selling, Distribution, and Administrative Expenses
to
Adjusted SD&A
|
|
|
|
For the 16-Week
Period Ended
|
|
|
For the 16-Week Period
Ended
|
|
|
|
April 20,
2024
|
|
|
April 22,
2023
|
|
Selling, distribution,
and administrative expenses
(SD&A)
|
|
$
|
625,251
|
|
|
$
|
591,943
|
|
Business process
improvement costs
|
|
|
(3,683)
|
|
|
|
(6,219)
|
|
Restructuring-related
implementation costs
|
|
|
(1,344)
|
|
|
|
—
|
|
Acquisition-related
costs
|
|
|
—
|
|
|
|
(3,223)
|
|
Adjusted
SD&A
|
|
$
|
620,224
|
|
|
$
|
582,501
|
|
Flowers Foods,
Inc
Reconciliation of
GAAP to Non-GAAP Measures
|
|
(000's omitted, except
per share data)
|
|
|
|
|
|
Reconciliation of
Net Income to EBITDA and Adjusted EBITDA
|
|
|
|
For the 16-Week
Period Ended
|
|
|
For the 16-Week Period
Ended
|
|
|
|
April 20,
2024
|
|
|
April 22,
2023
|
|
Net income
|
|
$
|
73,043
|
|
|
$
|
70,710
|
|
Income tax
expense
|
|
|
23,052
|
|
|
|
19,255
|
|
Interest expense,
net
|
|
|
5,611
|
|
|
|
3,886
|
|
Depreciation and
amortization
|
|
|
48,235
|
|
|
|
43,735
|
|
EBITDA
|
|
|
149,941
|
|
|
|
137,586
|
|
Other pension
benefit
|
|
|
(158)
|
|
|
|
(83)
|
|
Business process
improvement costs
|
|
|
3,683
|
|
|
|
6,219
|
|
Impairment of
assets
|
|
|
4,000
|
|
|
|
—
|
|
Restructuring
charges
|
|
|
598
|
|
|
|
4,195
|
|
Restructuring-related
implementation costs
|
|
|
1,344
|
|
|
|
—
|
|
Acquisition-related
costs
|
|
|
—
|
|
|
|
3,223
|
|
Adjusted
EBITDA
|
|
$
|
159,408
|
|
|
$
|
151,140
|
|
Sales
|
|
$
|
1,576,818
|
|
|
$
|
1,534,493
|
|
Adjusted EBITDA
margin
|
|
|
10.1
|
%
|
|
|
9.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Income Tax Expense to Adjusted Income
Tax Expense
|
|
|
|
For the 16-Week
Period Ended
|
|
|
For the 16-Week Period
Ended
|
|
|
|
April 20,
2024
|
|
|
April 22,
2023
|
|
Income tax
expense
|
|
$
|
23,052
|
|
|
$
|
19,255
|
|
Tax impact
of:
|
|
|
|
|
|
|
Business process
improvement costs
|
|
|
921
|
|
|
|
1,555
|
|
Impairment of
assets
|
|
|
1,000
|
|
|
|
—
|
|
Restructuring
charges
|
|
|
150
|
|
|
|
1,049
|
|
Restructuring-related
implementation costs
|
|
|
336
|
|
|
|
—
|
|
Acquisition-related
costs
|
|
|
—
|
|
|
|
806
|
|
Adjusted income tax
expense
|
|
$
|
25,459
|
|
|
$
|
22,665
|
|
Flowers Foods,
Inc.
Reconciliation of
GAAP to Non-GAAP Measures
(000's omitted, except
per share data)
|
|
|
|
Reconciliation of
Net Income to Adjusted Net Income
|
|
|
|
For the 16-Week
Period Ended
|
|
|
For the 16-Week Period
Ended
|
|
|
|
April 20,
2024
|
|
|
April 22,
2023
|
|
Net income
|
|
$
|
73,043
|
|
|
$
|
70,710
|
|
Business process
improvement costs
|
|
|
2,762
|
|
|
|
4,664
|
|
Impairment of
assets
|
|
|
3,000
|
|
|
|
—
|
|
Restructuring
charges
|
|
|
448
|
|
|
|
3,146
|
|
Restructuring-related
implementation costs
|
|
|
1,008
|
|
|
|
—
|
|
Acquisition-related
costs
|
|
|
—
|
|
|
|
2,417
|
|
Adjusted net
income
|
|
$
|
80,261
|
|
|
$
|
80,937
|
|
|
|
Reconciliation of
Earnings per Share -
Full Year Fiscal 2024 Guidance
|
|
|
|
Range
Estimate
|
|
Net income per diluted
common share
|
|
$
|
1.16
|
|
to
|
$
|
1.26
|
|
Business process
improvement costs
|
|
|
0.01
|
|
|
|
0.01
|
|
Impairment of
assets
|
|
|
0.01
|
|
|
|
0.01
|
|
Restructuring
charges
|
|
NM
|
|
|
NM
|
|
Restructuring-related
implementation costs
|
|
NM
|
|
|
NM
|
|
Adjusted net income per
diluted common share
|
|
$
|
1.20
|
|
to
|
$
|
1.30
|
|
NM - not
meaningful
|
|
|
|
|
|
|
Certain amounts may
not add due to rounding
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/flowers-foods-inc-reports-first-quarter-2024-results-302148034.html
SOURCE Flowers Foods, Inc.