Flavors &
Third Quarter 2023 Highlights
- Consolidated revenue of
$134.4 million , a decrease of 0.6% on a reported basis and a decrease of 1.5% on a constant currency basis compared to the prior year period. - Branded CPG revenue declined 2.0% on a reported basis and 2.9% on a constant currency basis compared to 2022 as pricing growth was more than offset by volume declines; excluding the planned decrease in Wholesome bulk sugar sales, segment constant currency revenue was essentially flat.
- Flavors & Ingredients revenue grew 4.2% on a reported basis and 3.6% on a constant currency basis compared to the prior year period, to a record
$31.2 million , driven by strong pricing that contributed to improved profitability of the segment. - Operating income of
$6.7 million and Adjusted EBITDA of$21.0 million .
Third Quarter Net Product Revenue Growth Overview | ||||||
Reported | Foreign Currency Exchange | Constant Currency | ||||
Branded CPG | (2.0)% | 0.9% | (2.9)% | |||
Flavors & Ingredients | 4.2% | 0.6% | 3.6% | |||
Total | (0.6)% | 0.8% | (1.5)% | |||
THIRD QUARTER 2023 RESULTS
- Consolidated product revenues were
$134.4 million , a decrease of 0.6% on a reported basis and a decrease of 1.5% on a constant currency basis due to a weaker US dollar, as compared to the prior year third quarter. - Reported gross profit was
$37.5 million , compared to$35.0 million in the prior year third quarter. The increase was largely driven by an improved sales mix resulting from the strategic decision to reduce bulk sugar sales to avoid incremental tariffs, pricing, lower freight costs and a decline in costs associated with the supply chain reinvention project. Adjusted gross profit was$42.5 million , compared to$41.7 million in the prior year third quarter. - Reported gross profit margin increased to 27.9% in the third quarter of 2023, compared to 25.9% in the prior year period. Adjusted gross profit margin expanded to 31.6%, compared to 30.8% in the prior year third quarter. Adjusted gross profit margin has improved approximately 270 basis points year-to-date, as compared to the fourth quarter of 2022.
- Consolidated operating income was
$6.7 million compared to operating income of$6.8 million in the prior year third quarter primarily due to higher bonus expense and strategic review costs, largely offset by lower import duties, freight, and supply chain reinvention costs. - Consolidated net loss was
$5.4 million in the third quarter of 2023 compared to a net loss of$2.5 million in the prior year period primarily as a result of higher interest expense due to higher interest rates. - Consolidated Adjusted EBITDA was
$21.0 million compared to$21.5 million in the prior year quarter, declining 2.3%.
SEGMENT RESULTS
Branded CPG Segment
Branded CPG segment product revenues were
Operating income was
Flavors & Ingredients Segment
Flavors & Ingredients segment product revenues increased 4.2% to
Operating income was
Corporate
Corporate expenses for the third quarter of 2023 were
YEAR-TO-DATE 2023 HIGHLIGHTS
- Consolidated product revenues were
$399.7 million , essentially flat on a reported basis, as compared to the nine months endedSeptember 30, 2022 . On a constant currency basis, product revenues increased 0.4% compared to the prior year period. - Consolidated operating income was
$12.7 million compared to$21.6 million in the prior year period. - Consolidated Adjusted EBITDA decreased
$3.2 million , or 5.4%, to$55.8 million .
BALANCE SHEET
As of
Cash provided by operating activities was
OUTLOOK
The Company has revised its outlook for the full year 2023 as follows:
- Net Product Revenues: The Company now anticipates achieving revenues in the range of
$540 million to$550 million (previously$550 million to$565 million ) - Adjusted EBITDA:
$77 million to$79 million (previously$76 million to$78 million ) - Capital Expenditures: The Company now anticipates approximately
$8 million (down from$9 million previously)
The outlook is provided in the context of greater than usual volatility as a result of current geo-political events, the current inflationary environment and foreign currency exchange rate fluctuations.
CONFERENCE CALL DETAILS
The Company will host a conference call and webcast to review its third quarter results today,
The live audio webcast of the conference call will be accessible in the News & Events section on the Company's Investor Relations website at investor.wholeearthbrands.com. An archived replay of the webcast will also be available shortly after the live event has concluded.
About
Forward-Looking Statements
This press release contains forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning
Forward-looking statements may be accompanied by words such as “achieve,” “aim,” “anticipate,” “believe,” “can,” “continue,” “could,” “drive,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “grow,” “improve,” “increase,” “intend,” “may,” “outlook,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” or similar words, phrases or expressions. Examples of forward-looking statements include, but are not limited to, the statements made by Messrs. Simon, Robinson and Ohri, and our 2023 outlook. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the ongoing conflicts in
These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company’s control, which could cause actual results to differ materially from the results contemplated by the forward-looking statements. These statements are subject to the risks and uncertainties indicated from time to time in the documents the Company files (or furnishes) with the
You are cautioned not to place undue reliance upon any forward-looking statements, which are based only on information currently available to the Company and speak only as of the date made. The Company undertakes no commitment to publicly update or revise the forward-looking statements, whether written or oral that may be made from time to time, whether as a result of new information, future events or otherwise, except as required by law.
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:
- Asset impairment charges: We exclude the impact of charges related to the impairment of goodwill and other long-lived intangible assets. 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 comparability 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 comparability 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 comparability 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 comparability 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 comparability 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 comparability 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.
Condensed Consolidated Balance Sheets | |||||||
(In thousands of dollars, except for share and per share data) | |||||||
(Unaudited) | |||||||
Assets | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 24,249 | $ | 28,676 | |||
Accounts receivable (net of allowances of | 68,181 | 66,653 | |||||
Inventories | 216,803 | 218,975 | |||||
Prepaid expenses and other current assets | 5,624 | 10,530 | |||||
Total current assets | 314,857 | 324,834 | |||||
Property, Plant and Equipment, net | 54,630 | 58,092 | |||||
Other Assets | |||||||
Operating lease right-of-use assets | 21,233 | 18,238 | |||||
192,506 | 193,139 | ||||||
Other intangible assets, net | 231,189 | 245,376 | |||||
Deferred tax assets, net | 490 | 539 | |||||
Other assets | 10,486 | 8,785 | |||||
Total Assets | $ | 825,391 | $ | 849,003 | |||
Liabilities and Stockholders’ Equity | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 51,201 | $ | 47,002 | |||
Accrued expenses and other current liabilities | 30,327 | 27,488 | |||||
Current portion of operating lease liabilities | 8,414 | 8,804 | |||||
Current portion of long-term debt | 3,750 | 3,750 | |||||
Total current liabilities | 93,692 | 87,044 | |||||
Non-Current Liabilities | |||||||
Long-term debt | 424,480 | 432,172 | |||||
Deferred tax liabilities, net | 33,466 | 32,585 | |||||
Operating lease liabilities, less current portion | 15,883 | 12,664 | |||||
Other liabilities | 10,192 | 9,987 | |||||
Total Liabilities | 577,713 | 574,452 | |||||
Commitments and Contingencies | — | — | |||||
Stockholders’ Equity | |||||||
Preferred shares, | — | — | |||||
Common stock, | 4 | 4 | |||||
Additional paid-in capital | 366,313 | 360,777 | |||||
Accumulated deficit | (115,932 | ) | (85,188 | ) | |||
Accumulated other comprehensive loss | (2,707 | ) | (1,042 | ) | |||
Total stockholders’ equity | 247,678 | 274,551 | |||||
Total Liabilities and Stockholders’ Equity | $ | 825,391 | $ | 849,003 |
Condensed Consolidated Statements of Operations | |||||||||||||||
(In thousands of dollars, except for share and per share data) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Product revenues, net | $ | 134,430 | $ | 135,280 | $ | 399,749 | $ | 399,375 | |||||||
Cost of goods sold | 96,902 | 100,263 | 296,500 | 287,486 | |||||||||||
Gross profit | 37,528 | 35,017 | 103,249 | 111,889 | |||||||||||
Selling, general and administrative expenses | 26,226 | 23,566 | 76,549 | 76,314 | |||||||||||
Amortization of intangible assets | 4,641 | 4,629 | 13,989 | 13,998 | |||||||||||
Operating income | 6,661 | 6,822 | 12,711 | 21,577 | |||||||||||
Interest expense, net | (11,117 | ) | (8,214 | ) | (32,884 | ) | (20,674 | ) | |||||||
Other (expense) income, net | (448 | ) | 278 | (1,333 | ) | 3,985 | |||||||||
(Loss) income before income taxes | (4,904 | ) | (1,114 | ) | (21,506 | ) | 4,888 | ||||||||
Provision for income taxes | 526 | 1,407 | 9,238 | 3,357 | |||||||||||
Net (loss) income | $ | (5,430 | ) | $ | (2,521 | ) | $ | (30,744 | ) | $ | 1,531 | ||||
Net (loss) earnings per share: | |||||||||||||||
Basic | $ | (0.13 | ) | $ | (0.06 | ) | $ | (0.73 | ) | $ | 0.04 | ||||
Diluted | $ | (0.13 | ) | $ | (0.06 | ) | $ | (0.73 | ) | $ | 0.04 |
Condensed Consolidated Statements of Cash Flows | |||||||
(In thousands of dollars) | |||||||
(Unaudited) | |||||||
Nine Months Ended | |||||||
Operating activities | |||||||
Net (loss) income | $ | (30,744 | ) | $ | 1,531 | ||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||
Stock-based compensation | 7,340 | 4,957 | |||||
Depreciation | 5,038 | 4,324 | |||||
Amortization of intangible assets | 13,989 | 13,998 | |||||
Deferred income taxes | 686 | (4,586 | ) | ||||
Amortization of inventory fair value adjustments | — | (2,537 | ) | ||||
Amortization of debt issuance costs and original issue discount | 1,664 | 1,450 | |||||
Change in fair value of warrant liabilities | (75 | ) | (1,240 | ) | |||
Changes in current assets and liabilities: | |||||||
Accounts receivable | (1,733 | ) | (3,746 | ) | |||
Inventories | 952 | (20,926 | ) | ||||
Prepaid expenses and other current assets | 1,348 | (1,972 | ) | ||||
Accounts payable, accrued liabilities and income taxes | 10,972 | (5,196 | ) | ||||
Other, net | 1,178 | (3,321 | ) | ||||
Net cash provided by (used in) operating activities | 10,615 | (17,264 | ) | ||||
Investing activities | |||||||
Capital expenditures | (4,112 | ) | (6,947 | ) | |||
Proceeds from the sale of fixed assets | 18 | 50 | |||||
Net cash used in investing activities | (4,094 | ) | (6,897 | ) | |||
Financing activities | |||||||
Proceeds from revolving credit facility | — | 54,000 | |||||
Repayments of revolving credit facility | (6,000 | ) | — | ||||
Repayments of long-term borrowings | (2,813 | ) | (2,812 | ) | |||
Debt issuance costs | (447 | ) | (682 | ) | |||
Payment of contingent consideration | — | (29,108 | ) | ||||
Tax withholdings related to net share settlements of stock awards | (1,444 | ) | (874 | ) | |||
Net cash (used in) provided by financing activities | (10,704 | ) | 20,524 | ||||
Effect of exchange rate changes on cash and cash equivalents | (244 | ) | (3,813 | ) | |||
Net change in cash and cash equivalents | (4,427 | ) | (7,450 | ) | |||
Cash and cash equivalents, beginning of period | 28,676 | 28,296 | |||||
Cash and cash equivalents, end of period | $ | 24,249 | $ | 20,846 | |||
Supplemental disclosure of cash flow information | |||||||
Interest paid | $ | 31,323 | $ | 19,161 | |||
Taxes paid, net of refunds | $ | 3,844 | $ | 7,510 |
Adjusted EBITDA Reconciliation | |||||||||||||||
(In thousands of dollars) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||
Product revenues, net | $ | 134,430 | $ | 135,280 | $ | 399,749 | $ | 399,375 | |||||||
Net (loss) income | $ | (5,430 | ) | $ | (2,521 | ) | $ | (30,744 | ) | $ | 1,531 | ||||
Provision for income taxes | 526 | 1,407 | 9,238 | 3,357 | |||||||||||
Other expense (income), net | 448 | (278 | ) | 1,333 | (3,985 | ) | |||||||||
Interest expense, net | 11,117 | 8,214 | 32,884 | 20,674 | |||||||||||
Operating income | 6,661 | 6,822 | 12,711 | 21,577 | |||||||||||
Depreciation | 1,564 | 1,408 | 5,038 | 4,324 | |||||||||||
Amortization of intangible assets | 4,641 | 4,629 | 13,989 | 13,998 | |||||||||||
Purchase accounting adjustments | - | - | - | (2,537 | ) | ||||||||||
Long term incentive plan | 2,472 | 1,743 | 4,534 | 4,957 | |||||||||||
Severance and related expenses | 8 | 783 | 1,198 | 1,047 | |||||||||||
Non-cash pension expense | - | 10 | - | 30 | |||||||||||
M&A transaction/strategic review | 992 | 30 | 992 | 723 | |||||||||||
Supply chain reinvention | 2,935 | 5,354 | 12,642 | 13,334 | |||||||||||
Other items | 1,758 | 737 | 4,701 | 1,527 | |||||||||||
Adjusted EBITDA | $ | 21,032 | $ | 21,517 | $ | 55,804 | $ | 58,980 | |||||||
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 | $ | 103,270 | $ | 105,373 | $ | (2,103 | ) | $ | (3,064 | ) | $ | 961 | -2.0% | -2.9% | 0.9% | |||
Flavors & Ingredients | 31,160 | 29,907 | 1,253 | 1,073 | 180 | 4.2% | 3.6% | 0.6% | ||||||||||
Combined | $ | 134,430 | $ | 135,280 | $ | (850 | ) | $ | (1,991 | ) | $ | 1,141 | -0.6% | -1.5% | 0.8% | |||
Nine Months Ended | ||||||||||||||||||
$ change | % change | |||||||||||||||||
Product revenues, net | 2023 | 2022 | Reported | Constant Dollar | Foreign Exchange (1) | Reported | Constant Dollar | Foreign Exchange | ||||||||||
Branded CPG | $ | 307,581 | $ | 313,207 | $ | (5,626 | ) | $ | (4,547 | ) | $ | (1,079 | ) | -1.8% | -1.5% | -0.3% | ||
Flavors & Ingredients | 92,168 | 86,168 | 6,000 | 6,149 | (149 | ) | 7.0% | 7.1% | -0.2% | |||||||||
Combined | $ | 399,749 | $ | 399,375 | $ | 374 | $ | 1,602 | $ | (1,228 | ) | 0.1% | 0.4% | -0.3% | ||||
(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 | $ | 134,430 | $ | - | $ | - | $ | 134,430 | $ | 135,280 | $ | - | $ | - | $ | 135,280 | $ | (850) | (0.6%) | |||||||||||
Cost of goods sold | 96,902 | (2,689) | (2,325) | 91,888 | 100,263 | (1,635) | (5,070) | 93,558 | (1,669) | (1.8%) | ||||||||||||||||||||
Gross profit | 37,528 | 2,689 | 2,325 | 42,542 | 35,017 | 1,635 | 5,070 | 41,722 | 819 | 2.0% | ||||||||||||||||||||
Gross profit margin % | 27.9% | 31.6% | 25.9% | 30.8% | 0.8% | |||||||||||||||||||||||||
Selling, general and administrative expenses | 26,226 | (3,424) | (1,292) | 21,510 | 23,566 | (2,253) | (1,107) | 20,206 | 1,304 | 6.5% | ||||||||||||||||||||
Amortization of intangible assets | 4,641 | (4,641) | - | - | 4,629 | (4,629) | - | - | - | - | ||||||||||||||||||||
Operating income | $ | 6,661 | $ | 10,754 | $ | 3,617 | $ | 21,032 | $ | 6,822 | $ | 8,517 | $ | 6,178 | $ | 21,517 | $ | (485) | (2.3%) | |||||||||||
Operating margin % | 5.0% | 15.6% | 5.0% | 15.9% | (0.3%) | |||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
GAAP | Non-cash adj. | Cash adj. | Adjusted EBITDA | GAAP | Non-cash adj. | Cash adj. | Adjusted EBITDA | $ Change | % Change | |||||||||||||||||||||
Product revenues, net | $ | 399,749 | $ | - | $ | - | $ | 399,749 | $ | 399,375 | $ | - | $ | - | $ | 399,375 | $ | 374 | 0.1% | |||||||||||
Cost of goods sold | 296,500 | (8,361) | (10,909) | 277,230 | 287,486 | (3,132) | (12,190) | 272,164 | 5,066 | 1.9% | ||||||||||||||||||||
Gross profit | 103,249 | 8,361 | 10,909 | 122,519 | 111,889 | 3,132 | 12,190 | 127,211 | (4,692) | (3.7%) | ||||||||||||||||||||
Gross profit margin % | 25.8% | 30.6% | 28.0% | 31.9% | (1.2%) | |||||||||||||||||||||||||
Selling, general and administrative expenses | 76,549 | (7,316) | (2,518) | 66,715 | 76,314 | (5,892) | (2,191) | 68,231 | (1,516) | (2.2%) | ||||||||||||||||||||
Amortization of intangible assets | 13,989 | (13,989) | - | - | 13,998 | (13,998) | - | - | - | - | ||||||||||||||||||||
Operating income | $ | 12,711 | $ | 29,666 | $ | 13,426 | $ | 55,804 | $ | 21,577 | $ | 23,022 | $ | 14,381 | $ | 58,980 | $ | (3,177) | (5.4%) | |||||||||||
Operating margin % | 3.2% | 14.0% | 5.4% | 14.8% | (0.8%) |
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 | $ | 1,381 | $ | 184 | $ | - | $ | 1,564 | $ | 1,222 | $ | 186 | $ | - | $ | 1,408 | ||||
Amortization of intangible assets | - | - | 4,641 | 4,641 | - | - | 4,629 | 4,629 | ||||||||||||
Non-cash pension expense | - | - | - | - | - | 10 | - | 10 | ||||||||||||
Long term incentive plan | 119 | 2,353 | - | 2,472 | (121 | ) | 1,865 | - | 1,743 | |||||||||||
Supply chain reinvention | 609 | - | - | 609 | - | - | - | - | ||||||||||||
Other items | 580 | 887 | - | 1,467 | 534 | 192 | - | 726 | ||||||||||||
Total non-cash adjustments | $ | 2,689 | $ | 3,424 | $ | 4,641 | $ | 10,754 | $ | 1,635 | $ | 2,253 | $ | 4,629 | $ | 8,517 | ||||
Cash adjustments | ||||||||||||||||||||
Severance and related expenses | - | 8 | - | 8 | 102 | 681 | - | 783 | ||||||||||||
M&A transaction/strategic review | - | 992 | - | 992 | - | 30 | - | 30 | ||||||||||||
Supply chain reinvention | 2,325 | - | - | 2,325 | 4,969 | 385 | - | 5,354 | ||||||||||||
Other items | - | 292 | - | 292 | - | 11 | - | 11 | ||||||||||||
Total cash adjustments | $ | 2,325 | $ | 1,292 | $ | - | $ | 3,617 | $ | 5,070 | $ | 1,107 | $ | - | $ | 6,178 | ||||
Total adjustments | $ | 5,014 | $ | 4,716 | $ | 4,641 | $ | 14,371 | $ | 6,705 | $ | 3,360 | $ | 4,629 | $ | 14,695 | ||||
Nine Months Ended | Nine 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 | $ | 4,467 | $ | 571 | $ | - | $ | 5,038 | $ | 3,711 | $ | 613 | $ | - | $ | 4,324 | ||||
Amortization of intangible assets | - | - | 13,989 | 13,989 | - | - | 13,998 | 13,998 | ||||||||||||
Non-cash pension expense | - | - | - | - | - | 30 | - | 30 | ||||||||||||
Long term incentive plan | 297 | 4,237 | - | 4,534 | 163 | 4,795 | - | 4,958 | ||||||||||||
Purchase accounting costs | - | - | - | - | (2,537 | ) | - | - | (2,537 | ) | ||||||||||
Supply chain reinvention | 1,798 | - | - | 1,798 | 772 | - | - | 772 | ||||||||||||
Other items | 1,800 | 2,508 | - | 4,308 | 1,024 | 453 | - | 1,477 | ||||||||||||
Total non-cash adjustments | $ | 8,361 | $ | 7,316 | $ | 13,989 | $ | 29,666 | $ | 3,132 | $ | 5,892 | $ | 13,998 | $ | 23,022 | ||||
Cash adjustments | ||||||||||||||||||||
Severance and related expenses | 54 | 1,143 | - | 1,198 | 102 | 945 | - | 1,047 | ||||||||||||
M&A transaction/strategic review | - | 992 | - | 992 | - | 723 | - | 723 | ||||||||||||
Supply chain reinvention | 10,854 | (11 | ) | - | 10,843 | 12,088 | 473 | - | 12,562 | |||||||||||
Other items | - | 394 | - | 394 | - | 50 | - | 50 | ||||||||||||
Total cash adjustments | $ | 10,909 | $ | 2,518 | $ | - | $ | 13,426 | $ | 12,190 | $ | 2,191 | $ | - | $ | 14,381 | ||||
Total adjustments | $ | 19,270 | $ | 9,834 | $ | 13,989 | $ | 43,093 | $ | 15,322 | $ | 8,083 | $ | 13,998 | $ | 37,403 |
Source:
2023 GlobeNewswire, Inc., source