Full Year Highlights
- Consolidated revenue of
$550.9 million , an increase of 2.3% on a reported basis and 2.4% on a constant currency basis compared to the prior year period. - Branded CPG revenue growth of 0.9% on a reported basis and 1.0% on a constant currency basis, driven primarily by pricing, partially offset by lower volume.
- Flavors & Ingredients revenue growth of 7.8% compared to 2022 on both a reported and constant currency basis, driven by a combination of strong volume growth and increased pricing.
- Operating income of
$15.4 million and Adjusted EBITDA of$78.3 million . - Cash provided by operating activities was
$25.3 million for the year endedDecember 31, 2023 , as compared to cash usage of$5.8 million in the prior year, resulting in an improvement of$31.1 million .
Fourth Quarter Highlights
- Consolidated revenue of
$151.2 million , an increase of 8.8% on a reported basis and 8.3% on a constant currency basis compared to the prior year period. - Branded CPG revenue increased 8.5% on a reported basis and 7.9% on a constant currency basis as compared to 2022 due to price and volume growth.
- Flavors & Ingredients revenue grew 10.2% on a reported basis and 9.6% on a constant currency basis compared to the prior year period, to a record
$32.5 million , driven by strong volume growth. - Operating income of
$2.7 million and Adjusted EBITDA of$22.5 million .
Full Year Net Segment Revenue Growth Overview | ||||||
Reported | Foreign Currency Exchange | Constant Currency | ||||
Branded CPG | 0.9% | (0.1)% | 1.0% | |||
Flavors & Ingredients | 7.8% | 0.0% | 7.8% | |||
Total | 2.3% | (0.1)% | 2.4% |
Fourth Quarter Net Segment Revenue Growth Overview | ||||||
Reported | Foreign Currency Exchange | Constant Currency | ||||
Branded CPG | 8.5% | 0.6% | 7.9% | |||
Flavors & Ingredients | 10.2% | 0.6% | 9.6% | |||
Total | 8.8% | 0.6% | 8.3% | |||
“We ended 2023 on a high note, demonstrating continued operational improvement across both segments that drove a significant lift in our free cash flow generation and resulted in reduced balance sheet leverage,” said
FOURTH QUARTER 2023 RESULTS
- Consolidated product revenues were
$151.2 million , an increase of 8.8% on a reported basis and 8.3% on a constant currency basis, as compared to the prior year fourth quarter. - Reported gross profit was
$40.4 million , compared to$28.3 million in the prior year fourth quarter. The increase was largely driven by volume and pricing, lower freight costs and a decline in costs associated with the supply chain reinvention project. Adjusted gross profit was$44.9 million , compared to$40.1 million in the prior year fourth quarter. - Reported gross profit margin increased to 26.7% in the fourth quarter of 2023, compared to 20.4% in the prior year period. Adjusted gross profit margin increased to 29.7%, compared to 28.9% in the prior year fourth quarter.
- Consolidated operating income was
$2.7 million compared to an operating loss of$46.2 million in the prior year fourth quarter, which included non-cash goodwill impairment charges of$7.2 million and$46.5 million , respectively. The increase excluding the impairment charges was driven by the increase in revenues, lower supply chain reinvention costs, bonus expense and import duties, partially offset by strategic review costs. - Consolidated net loss was
$7.4 million in the fourth quarter of 2023 compared to a net loss of$60.3 million in the prior year period primarily as a result of the improvement in operating income, partially offset by higher interest expense due to higher interest rates. - Consolidated Adjusted EBITDA was
$22.5 million compared to$20.2 million in the prior year quarter, representing an increase of 11.6%.
SEGMENT RESULTS
Branded CPG Segment
Branded CPG segment product revenues were
Operating income was
Flavors & Ingredients Segment
Flavors & Ingredients segment product revenues increased 10.2% to a record
Operating income of
Corporate
Corporate expenses for the fourth quarter of 2023 were
FULL YEAR 2023 HIGHLIGHTS
- Consolidated product revenues were
$550.9 million , representing an increase of 2.3% on a reported basis, as compared to the full year 2022. On a constant currency basis, product revenues increased 2.4% compared to the prior year period. - Consolidated operating income was
$15.4 million compared to a loss of$24.6 million in the prior year period, which included non-cash goodwill impairment charges of$7.2 million and$46.5 million , respectively. - Consolidated Adjusted EBITDA decreased
$0.8 million , or 1.1%, to$78.3 million .
BALANCE SHEET
As of
Cash provided by operating activities was
DEFINITIVE AGREEMENT TO BE ACQUIRED
As previously announced, on
A special committee of the Company’s board of directors (the “Board”), consisting solely of disinterested members of the Board (the “Special Committee”), in consultation with its independent financial and legal advisors, unanimously recommended the Transaction and the disinterested members of the Board unanimously approved the Transaction.
The Transaction is expected to close in the second quarter of 2024. Consummation of the Transaction is conditioned on, among other things, the approval at a special meeting of the Company’s stockholders (i) of the holders of a majority in voting power of the Company’s outstanding stock and (ii) of the holders of 66 2/3% of the Company’s outstanding stock not owned by Sababa, and is subject to other customary closing conditions, including the expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. The Transaction is not subject to any financing conditions.
About
Forward-Looking Statements
Certain of the matters discussed in this communication constitute forward-looking statements. The forward-looking statements include, among other things, statements regarding the intent, belief or expectations of the Company and can be identified by the use of words such as “achieve,” “aim,” “anticipate,” “believe,” “can,” “continue,” “could,” “drive,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “grow,” “improve,” “increase,” “intend,” “maintain,” “may,” “opportunities,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “strategy,” “will,” “will be,” “will continue,” “will likely result,” “would,” or the negative version of these words and other comparable terms. Examples of forward-looking statements include, but are not limited to, the statements made by
All of our forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we are expecting. There are a number of factors that could have material adverse effects on our future results, performance or achievements and cause our actual results to differ materially from the forward-looking statements. These factors include, but are not limited to, the ability of the parties to satisfy the conditions precedent and consummate the proposed Transaction, the timing of consummation of the proposed Transaction, the ability of the parties to secure any required stockholder approval in a timely manner or on the terms desired or anticipated, failure of Sweet Oak to obtain the financing required to consummate the Transaction, the ability to achieve anticipated benefits and savings of the proposed Transaction, risks related to the potential disruption of management’s attention due to the pending Transaction, operating results and businesses generally, the outcome of any legal proceedings related to the proposed Transaction and the general risks associated with the respective businesses of the Company and Sweet Oak, including the general volatility of the capital markets, terms and employment of capital, the volatility of the Company’s share price, interest rates or general economy, potential adverse effects or changes to the relationships with the parties’ customers, competitors, suppliers or employees or other parties resulting from the announcement or completion of the proposed Transaction, unpredictability and severity of catastrophic events, including but not limited to the risks related to the effects of pandemics and global outbreaks of contagious diseases (such as the COVID-19 pandemic) and domestic or geopolitical crises, such as terrorism, military conflict (including the outbreak of hostilities between
Contacts:
Investor Relations Contact:
312-840-5001
investor@wholeearthbrands.com
ICR
646-277-1263
jeff.sonnek@icrinc.com
Reconciliation of GAAP and Non-GAAP Financial Measures
(Unaudited)
The Company reports its financial results in accordance with accounting principles generally accepted in
DEFINITIONS OF THE COMPANY’S NON-GAAP FINANCIAL MEASURES
The Company’s non-GAAP financial measures and corresponding metrics reflect how the Company evaluates its operating results currently and provide improved comparability of operating results. As new events or circumstances arise, these definitions could change. When these definitions change, the Company provides the updated definitions and presents the related non-GAAP historical results on a comparable basis. When items no longer impact the Company’s current or future presentation of non-GAAP operating results, the Company removes these items from its non-GAAP definitions.
The following is a list of non-GAAP financial measures which the Company has discussed or expects to discuss in the future:
- Constant Currency Presentation: We evaluate our product revenue results on both a reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our product revenue results, thereby facilitating period-to-period comparisons of our business performance and is consistent with how management evaluates the Company’s performance. We calculate constant currency percentages by converting our current period local currency product revenue results using the prior period exchange rates and comparing these adjusted amounts to our prior period reported product revenues.
- Adjusted EBITDA: We define Adjusted EBITDA as net income or loss from our consolidated statements of operations before interest income and expense, income taxes, depreciation and amortization, as well as certain other items that arise outside of the ordinary course of our continuing operations specifically described below:
Goodwill impairment charges: We exclude the impact of charges related to the impairment of goodwill. We believe that the exclusion of these impairments, which are non-cash, allows for more meaningful comparisons of operating results to peer companies. We believe that this increases period-to-period comparability and is useful to evaluate the performance of the company.- Purchase accounting adjustments: We exclude the impact of purchase accounting adjustments, including the revaluation of inventory at the time of the business combination. These adjustments are non-cash and we believe that the adjustments of these items allows for more meaningful comparison of our operating results.
- Long-term incentive plan: We exclude the impact of costs relating to the long-term incentive plan. We believe that the adjustments of these items allow for more meaningful comparison of our operating results.
- Non-cash pension expenses: We exclude non-cash pension expenses/credits related to closed, defined pension programs of the Company. We believe that the adjustments of these items allow for more meaningful comparison of our operating results.
- Severance and related expenses: We exclude employee severance and associated expenses related to roles that have been eliminated or reduced in scope as a productivity measure taken by the Company. We believe that the adjustments of these items allow for more meaningful comparison of our operating results.
- M&A transaction/strategic review: We exclude expenses directly related to the acquisition of businesses and the Company’s strategic review. We believe that the adjustments of these items allow for more meaningful comparison of our operating results.
- Supply chain reinvention: To measure operating performance, we exclude certain one-time and other costs associated with reorganizing our North America Branded CPG operations and facilities in connection with our supply chain reinvention program, which will drive long-term productivity and cost savings. These costs include incremental expenses such as hiring, training, startup, exit and other temporary costs. We believe that the adjustments of these items allow for more meaningful comparison of our operating results.
- Other items: To measure operating performance, we exclude certain expenses and include certain gains that we believe are not operational in nature. We believe the exclusion or inclusion of such amounts allows management and the users of the financial statements to better understand our financial results.
Adjusted EBITDA is not a presentation made in accordance with GAAP, and our use of the term Adjusted EBITDA may vary from the use of similarly titled measures by others in our industry due to the potential inconsistencies in the method of calculation and differences due to items subject to interpretation. Adjusted EBITDA margin is Adjusted EBITDA for a particular period expressed as a percentage of product revenues for that period.
We use Adjusted EBITDA to measure our performance from period to period both at the consolidated level as well as within our operating segments, to evaluate and fund incentive compensation programs and to compare our results to those of our competitors. In addition to Adjusted EBITDA being a significant measure of performance for management purposes, we also believe that this presentation provides useful information to investors regarding financial and business trends related to our results of operations and that when non-GAAP financial information is viewed with GAAP financial information, investors are provided with a more meaningful understanding of our ongoing operating performance.
Adjusted EBITDA should not be considered as an alternative to net income or loss, operating income, cash flows from operating activities or any other performance measures derived in accordance with GAAP as measures of operating performance or cash flows as measures of liquidity. Adjusted EBITDA has important limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP.
The Company cannot reconcile its expected Adjusted EBITDA to Net Income under “Outlook” without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company’s control and/or cannot be reasonably predicted. These items include, but are not limited to, stock-based compensation expense and acquisition-related charges. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period.
Adjusted Gross Profit Margin: We define Adjusted Gross Profit Margin as Gross Profit excluding all cash and non-cash adjustments impacting Cost of Goods Sold, included in the Adjusted EBITDA reconciliation, as a percentage of Product Revenues, net. Such adjustments include: depreciation, purchase accounting adjustments, long-term incentives and other items adjusted by management to better understand our financial results.
Consolidated Balance Sheets (In thousands of dollars, except for share and per share data) (Unaudited) | |||||||
Assets | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 30,513 | $ | 28,676 | |||
Accounts receivable (net of allowances of | 74,012 | 66,653 | |||||
Inventories | 209,271 | 218,975 | |||||
Prepaid expenses and other current assets | 6,429 | 10,530 | |||||
Total current assets | 320,225 | 324,834 | |||||
Property, Plant and Equipment, net | 54,937 | 58,092 | |||||
Other Assets | |||||||
Operating lease right-of-use assets | 19,223 | 18,238 | |||||
193,610 | 193,139 | ||||||
Other intangible assets, net | 229,936 | 245,376 | |||||
Deferred tax assets, net | 500 | 539 | |||||
Other assets | 7,266 | 8,785 | |||||
Total Assets | $ | 825,697 | $ | 849,003 | |||
Liabilities and Stockholders’ Equity | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 55,662 | $ | 47,002 | |||
Accrued expenses and other current liabilities | 32,173 | 27,488 | |||||
Current portion of operating lease liabilities | 7,370 | 8,804 | |||||
Current portion of long-term debt | 3,750 | 3,750 | |||||
Total current liabilities | 98,955 | 87,044 | |||||
Non-Current Liabilities | |||||||
Long-term debt | 417,929 | 432,172 | |||||
Deferred tax liabilities, net | 31,579 | 32,585 | |||||
Operating lease liabilities, less current portion | 14,336 | 12,664 | |||||
Other liabilities | 11,208 | 9,987 | |||||
Total Liabilities | 574,007 | 574,452 | |||||
Commitments and Contingencies | — | — | |||||
Stockholders’ Equity | |||||||
Preferred shares, | — | — | |||||
Common stock, | 4 | 4 | |||||
Additional paid-in capital | 365,721 | 360,777 | |||||
Accumulated deficit | (123,284 | ) | (85,188 | ) | |||
Accumulated other comprehensive income (loss) | 9,249 | (1,042 | ) | ||||
Total stockholders’ equity | 251,690 | 274,551 | |||||
Total Liabilities and Stockholders’ Equity | $ | 825,697 | $ | 849,003 | |||
Consolidated Statements of Operations | |||||||||||||||
(In thousands of dollars, except for per share data) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
Product revenues, net | $ | 151,164 | $ | 138,897 | $ | 550,913 | $ | 538,272 | |||||||
Cost of goods sold | 110,736 | 110,574 | 407,236 | 398,060 | |||||||||||
Gross profit | 40,428 | 28,323 | 143,677 | 140,212 | |||||||||||
Selling, general and administrative expenses | 25,805 | 23,421 | 102,354 | 99,735 | |||||||||||
Amortization of intangible assets | 4,709 | 4,625 | 18,698 | 18,623 | |||||||||||
7,230 | 46,500 | 7,230 | 46,500 | ||||||||||||
Operating income (loss) | 2,684 | (46,223 | ) | 15,395 | (24,646 | ) | |||||||||
Interest expense, net | (11,090 | ) | (9,926 | ) | (43,974 | ) | (30,600 | ) | |||||||
Other (expense) income, net | (1,855 | ) | (1,702 | ) | (3,188 | ) | 2,283 | ||||||||
Loss before income taxes | (10,261 | ) | (57,851 | ) | (31,767 | ) | (52,963 | ) | |||||||
(Benefit) provision for income taxes | (2,909 | ) | 2,432 | 6,329 | 5,789 | ||||||||||
Net loss | $ | (7,352 | ) | $ | (60,283 | ) | $ | (38,096 | ) | $ | (58,752 | ) | |||
Net loss per share: | |||||||||||||||
Basic | $ | (0.17 | ) | $ | (1.44 | ) | $ | (0.90 | ) | $ | (1.42 | ) | |||
Diluted | $ | (0.17 | ) | $ | (1.44 | ) | $ | (0.90 | ) | $ | (1.42 | ) | |||
Consolidated Statements of Cash Flows (In thousands of dollars) (Unaudited) | |||||||||||
Year Ended | |||||||||||
Operating activities | |||||||||||
Net (loss) income | $ | (38,096 | ) | $ | (58,752 | ) | $ | 83 | |||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||
Stock-based compensation | 7,029 | 4,933 | 8,715 | ||||||||
Depreciation | 6,638 | 6,001 | 4,727 | ||||||||
Amortization of intangible assets | 18,698 | 18,623 | 18,295 | ||||||||
Deferred income taxes | (1,054 | ) | (456 | ) | (12,300 | ) | |||||
7,230 | 46,500 | — | |||||||||
Amortization of inventory fair value adjustments | — | (2,537 | ) | (3,396 | ) | ||||||
Non-cash loss on extinguishment of debt | — | — | 4,435 | ||||||||
Amortization of debt issuance costs and original issue discount | 2,252 | 1,982 | 1,783 | ||||||||
Change in fair value of warrant liabilities | (78 | ) | (1,232 | ) | (29 | ) | |||||
Changes in current assets and liabilities: | |||||||||||
Accounts receivable | (5,455 | ) | 1,222 | 964 | |||||||
Inventories | 10,282 | (7,684 | ) | (22,957 | ) | ||||||
Prepaid expenses and other current assets | 1,572 | 201 | (1,030 | ) | |||||||
Accounts payable, accrued liabilities and income taxes | 14,266 | (11,574 | ) | 12,050 | |||||||
Other, net | 2,034 | (3,037 | ) | (1,858 | ) | ||||||
Net cash provided by (used in) operating activities | 25,318 | (5,810 | ) | 9,482 | |||||||
Investing activities | |||||||||||
Capital expenditures | (5,661 | ) | (8,887 | ) | (12,198 | ) | |||||
Acquisitions, net of cash acquired | — | — | (190,231 | ) | |||||||
Proceeds from sale of fixed assets | 18 | 468 | 4,516 | ||||||||
Net cash used in investing activities | (5,643 | ) | (8,419 | ) | (197,913 | ) | |||||
Financing activities | |||||||||||
Proceeds from revolving credit facility | — | 54,000 | 25,000 | ||||||||
Repayments of revolving credit facility | (12,000 | ) | (3,000 | ) | (47,855 | ) | |||||
Long-term borrowings | — | — | 375,000 | ||||||||
Repayments of long-term borrowings | (3,750 | ) | (3,750 | ) | (139,314 | ) | |||||
Debt issuance costs | (461 | ) | (719 | ) | (11,589 | ) | |||||
Payment of contingent consideration | — | (29,108 | ) | — | |||||||
Proceeds from sale of common stock and warrants | — | — | 1 | ||||||||
Tax withholdings related to net share settlements of stock-based awards | (1,468 | ) | (898 | ) | (1,913 | ) | |||||
Net cash (used in) provided by financing activities | (17,679 | ) | 16,525 | 199,330 | |||||||
Consolidated Statements of Cash Flows (Continued) (In thousands of dollars) (Unaudited) | |||||||||||
Year Ended | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | (159 | ) | (1,916 | ) | 499 | ||||||
Net change in cash and cash equivalents | 1,837 | 380 | 11,398 | ||||||||
Cash and cash equivalents, beginning of period | 28,676 | 28,296 | 16,898 | ||||||||
Cash and cash equivalents, end of period | $ | 30,513 | $ | 28,676 | $ | 28,296 | |||||
Supplemental disclosure of cash flow information | |||||||||||
Interest paid | $ | 41,770 | $ | 28,386 | $ | 21,203 | |||||
Taxes paid, net of refunds | $ | 4,815 | $ | 9,113 | $ | 4,523 | |||||
Supplemental disclosure of non-cash investing | |||||||||||
Non-cash capital expenditures | $ | — | $ | — | $ | 3,796 | |||||
Adjusted EBITDA Reconciliation | |||||||||||||||
(In thousands of dollars) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Three Months Ended | Twelve Months Ended | Twelve Months Ended | ||||||||||||
Product revenues, net | $ | 151,164 | $ | 138,897 | $ | 550,913 | $ | 538,272 | |||||||
Net loss | $ | (7,352 | ) | $ | (60,283 | ) | $ | (38,096 | ) | $ | (58,752 | ) | |||
(Benefit) provision for income taxes | (2,909 | ) | 2,432 | 6,329 | 5,789 | ||||||||||
Other expense (income), net | 1,855 | 1,702 | 3,188 | (2,283 | ) | ||||||||||
Interest expense, net | 11,090 | 9,926 | 43,974 | 30,600 | |||||||||||
Operating income (loss) | 2,684 | (46,223 | ) | 15,395 | (24,646 | ) | |||||||||
Depreciation | 1,600 | 1,677 | 6,638 | 6,001 | |||||||||||
Amortization of intangible assets | 4,709 | 4,625 | 18,698 | 18,623 | |||||||||||
7,230 | 46,500 | 7,230 | 46,500 | ||||||||||||
Purchase accounting adjustments | - | - | - | (2,537 | ) | ||||||||||
Long term incentive plan | (320 | ) | 2,806 | 4,214 | 7,763 | ||||||||||
Severance and related expenses | 981 | 334 | 2,179 | 1,381 | |||||||||||
Non-cash pension expense | 108 | 198 | 108 | 228 | |||||||||||
M&A transaction/strategic review | 906 | - | 1,898 | 723 | |||||||||||
Supply chain reinvention | 2,353 | 9,508 | 14,995 | 22,842 | |||||||||||
Other items | 2,277 | 762 | 6,978 | 2,289 | |||||||||||
Adjusted EBITDA | $ | 22,528 | $ | 20,187 | $ | 78,332 | $ | 79,167 | |||||||
Constant Currency Product Revenues, Net Reconciliation | ||||||||||||||||||||||||||
(In thousands of dollars) | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
$ change | % change | |||||||||||||||||||||||||
Product revenues, net | 2023 | 2022 | Reported | Constant Dollar | Foreign Exchange (1) | Reported | Constant Dollar | Foreign Exchange | ||||||||||||||||||
Branded CPG | $ | 118,707 | $ | 109,431 | $ | 9,276 | $ | 8,668 | $ | 607 | 8.5% | 7.9% | 0.6% | |||||||||||||
Flavors & Ingredients | 32,458 | 29,466 | 2,992 | 2,826 | 165 | 10.2% | 9.6% | 0.6% | ||||||||||||||||||
Combined | $ | 151,164 | $ | 138,897 | $ | 12,267 | $ | 11,494 | $ | 773 | 8.8% | 8.3% | 0.6% | |||||||||||||
Twelve Months Ended | ||||||||||||||||||||||||||
$ change | % change | |||||||||||||||||||||||||
Product revenues, net | 2023 | 2022 | Reported | Constant Dollar | Foreign Exchange (1) | Reported | Constant Dollar | Foreign Exchange | ||||||||||||||||||
Branded CPG | $ | 426,287 | $ | 422,638 | $ | 3,649 | $ | 4,121 | $ | (472 | ) | 0.9% | 1.0% | -0.1% | ||||||||||||
Flavors & Ingredients | 124,626 | 115,634 | 8,992 | 8,975 | 17 | 7.8% | 7.8% | 0.0% | ||||||||||||||||||
Combined | $ | 550,913 | $ | 538,272 | $ | 12,641 | $ | 13,096 | $ | (455 | ) | 2.3% | 2.4% | -0.1% | ||||||||||||
(1)The "foreign exchange" amounts presented, reflect the estimated impact from fluctuations in foreign currency exchange rates on product revenues. | ||||||||||||||||||||||||||
GAAP to Adjusted EBITDA Reconciliation | |||||||||||||||||||||||||||||||
(In thousands of dollars) | |||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||
GAAP | Non-cash adj. | Cash adj. | Adjusted EBITDA | GAAP | Non-cash adj. | Cash adj. | Adjusted EBITDA | $ Change | % Change | ||||||||||||||||||||||
Product revenues, net | $ | 151,164 | $ | - | $ | - | $ | 151,164 | $ | 138,897 | $ | - | $ | - | $ | 138,897 | $ | 12,267 | 8.8% | ||||||||||||
Cost of goods sold | 110,736 | (3,106 | ) | (1,345 | ) | 106,286 | 110,574 | (4,712 | ) | (7,114 | ) | 98,748 | 7,538 | 7.6% | |||||||||||||||||
Gross profit | 40,428 | 3,106 | 1,345 | 44,878 | 28,323 | 4,712 | 7,114 | 40,149 | 4,730 | 11.8% | |||||||||||||||||||||
Gross profit margin % | 26.7% | 29.7% | 20.4% | 28.9% | 0.8% | ||||||||||||||||||||||||||
Selling, general and administrative expenses | 25,805 | (693 | ) | (2,762 | ) | 22,350 | 23,421 | (2,934 | ) | (525 | ) | 19,962 | 2,388 | 12.0% | |||||||||||||||||
Amortization of intangible assets | 4,709 | (4,709 | ) | - | - | 4,625 | (4,625 | ) | - | - | - | - | |||||||||||||||||||
7,230 | (7,230 | ) | - | - | 46,500 | (46,500 | ) | - | - | - | - | ||||||||||||||||||||
Operating income | $ | 2,684 | $ | 15,738 | $ | 4,107 | $ | 22,528 | $ | (46,223 | ) | $ | 58,771 | $ | 7,639 | $ | 20,187 | $ | 2,341 | 11.6% | |||||||||||
Operating margin % | 1.8% | 14.9% | (33.3%) | 14.5% | 0.4% | ||||||||||||||||||||||||||
Twelve Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||||||
GAAP | Non-cash adj. | Cash adj. | Adjusted EBITDA | GAAP | Non-cash adj. | Cash adj. | Adjusted EBITDA | $ Change | % Change | ||||||||||||||||||||||
Product revenues, net | $ | 550,913 | $ | - | $ | - | $ | 550,913 | $ | 538,272 | $ | - | $ | - | $ | 538,272 | $ | 12,641 | 2.3% | ||||||||||||
Cost of goods sold | 407,236 | (11,467 | ) | (12,253 | ) | 383,516 | 398,060 | (7,845 | ) | (19,303 | ) | 370,912 | 12,604 | 3.4% | |||||||||||||||||
Gross profit | 143,677 | 11,467 | 12,253 | 167,397 | 140,212 | 7,845 | 19,303 | 167,360 | 37 | 0.0% | |||||||||||||||||||||
Gross profit margin % | 26.1% | 30.4% | 26.0% | 31.1% | (0.7%) | ||||||||||||||||||||||||||
Selling, general and administrative expenses | 102,354 | (8,009 | ) | (5,280 | ) | 89,065 | 99,735 | (8,826 | ) | (2,717 | ) | 88,193 | 872 | 1.0% | |||||||||||||||||
Amortization of intangible assets | 18,698 | (18,698 | ) | - | - | 18,623 | (18,623 | ) | - | - | - | - | |||||||||||||||||||
7,230 | (7,230 | ) | - | - | 46,500 | (46,500 | ) | - | - | - | - | ||||||||||||||||||||
Operating income | $ | 15,395 | $ | 45,404 | $ | 17,533 | $ | 78,332 | $ | (24,646 | ) | $ | 81,793 | $ | 22,020 | $ | 79,167 | $ | (835 | ) | (1.1%) | ||||||||||
Operating margin % | 2.8% | 14.2% | (4.6%) | 14.7% | (0.5%) | ||||||||||||||||||||||||||
Adjustments to Operating Income by Income Statement Line and Nature | |||||||||||||||||||||||||||||||
(In thousands of dollars) | |||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||
Non-Cash adjustments | Cost of Goods Sold | SG&A | Amort. Of Intangibles | Operating Income | Cost of Goods Sold | SG&A | Amort. Of Intangibles | Operating Income | |||||||||||||||||||||||
Depreciation | $ | 1,412 | $ | 188 | $ | - | $ | - | $ | 1,600 | $ | 1,364 | $ | 313 | $ | - | $ | - | $ | 1,677 | |||||||||||
Amortization of intangible assets | - | - | 4,709 | - | 4,709 | - | - | 4,625 | - | 4,625 | |||||||||||||||||||||
- | - | - | 7,230 | 7,230 | - | - | - | 46,500 | 46,500 | ||||||||||||||||||||||
Non-cash pension expense | - | 108 | - | - | 108 | - | 198 | - | - | 198 | |||||||||||||||||||||
Long term incentive plan | 120 | (439 | ) | - | - | (320 | ) | 441 | 2,364 | - | - | 2,806 | |||||||||||||||||||
Supply chain reinvention | 1,000 | - | - | - | 1,000 | 2,251 | - | - | - | 2,251 | |||||||||||||||||||||
Other items | 573 | 837 | - | - | 1,410 | 656 | 58 | - | - | 714 | |||||||||||||||||||||
Total non-cash adjustments | $ | 3,106 | $ | 693 | $ | 4,709 | $ | 7,230 | $ | 15,737 | $ | 4,712 | $ | 2,934 | $ | 4,625 | $ | 46,500 | $ | 58,771 | |||||||||||
Cash adjustments | |||||||||||||||||||||||||||||||
Severance and related expenses | - | 981 | - | - | 981 | - | 334 | - | - | 334 | |||||||||||||||||||||
M&A transaction/strategic review | - | 906 | - | - | 906 | - | - | - | - | - | |||||||||||||||||||||
Supply chain reinvention | 1,345 | 8 | - | - | 1,353 | 7,114 | 144 | - | - | 7,257 | |||||||||||||||||||||
Other items | - | 867 | - | - | 867 | - | 48 | - | - | 48 | |||||||||||||||||||||
Total cash adjustments | $ | 1,345 | $ | 2,762 | $ | - | $ | - | $ | 4,107 | $ | 7,114 | $ | 525 | $ | - | $ | - | $ | 7,639 | |||||||||||
Total adjustments | $ | 4,450 | $ | 3,455 | $ | 4,709 | $ | 7,230 | $ | 19,844 | $ | 11,826 | $ | 3,459 | $ | 4,625 | $ | 46,500 | $ | 66,410 | |||||||||||
Twelve Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||||||
Non-Cash adjustments | Cost of Goods Sold | SG&A | Amort. Of Intangibles | Operating Income | Cost of Goods Sold | SG&A | Amort. Of Intangibles | Operating Income | |||||||||||||||||||||||
Depreciation | $ | 5,879 | $ | 759 | $ | - | $ | - | $ | 6,638 | $ | 5,075 | $ | 927 | $ | - | $ | - | $ | 6,001 | |||||||||||
Amortization of intangible assets | - | - | 18,698 | - | 18,698 | - | - | 18,623 | - | 18,623 | |||||||||||||||||||||
- | - | - | 7,230 | 7,230 | - | - | - | 46,500 | 46,500 | ||||||||||||||||||||||
Non-cash pension expense | - | 108 | - | - | 108 | - | 228 | - | - | 228 | |||||||||||||||||||||
Long term incentive plan | 417 | 3,798 | - | - | 4,214 | 604 | 7,159 | - | - | 7,763 | |||||||||||||||||||||
Purchase accounting costs | - | - | - | - | - | (2,537 | ) | - | - | - | (2,537 | ) | |||||||||||||||||||
Supply chain reinvention | 2,798 | - | - | - | 2,798 | 3,023 | - | - | - | 3,023 | |||||||||||||||||||||
Other items | 2,373 | 3,345 | - | - | 5,718 | 1,680 | 512 | - | - | 2,192 | |||||||||||||||||||||
Total non-cash adjustments | $ | 11,467 | $ | 8,009 | $ | 18,698 | $ | 7,230 | $ | 45,404 | $ | 7,845 | $ | 8,826 | $ | 18,623 | $ | 46,500 | $ | 81,793 | |||||||||||
Cash adjustments | |||||||||||||||||||||||||||||||
Severance and related expenses | 54 | 2,125 | - | - | 2,179 | 102 | 1,279 | - | - | 1,381 | |||||||||||||||||||||
M&A transaction/strategic review | - | 1,898 | - | - | 1,898 | - | 723 | - | - | 723 | |||||||||||||||||||||
Supply chain reinvention | 12,199 | (3 | ) | - | - | 12,196 | 19,202 | 617 | - | - | 19,819 | ||||||||||||||||||||
Other items | - | 1,261 | - | - | 1,261 | - | 98 | - | - | 98 | |||||||||||||||||||||
Total cash adjustments | $ | 12,253 | $ | 5,280 | $ | - | $ | - | $ | 17,533 | $ | 19,303 | $ | 2,717 | $ | - | $ | - | $ | 22,020 | |||||||||||
Total adjustments | $ | 23,720 | $ | 13,289 | $ | 18,698 | $ | 7,230 | $ | 62,937 | $ | 27,148 | $ | 11,542 | $ | 18,623 | $ | 46,500 | $ | 103,813 | |||||||||||
Source:
2024 GlobeNewswire, Inc., source