Freshpet, Inc. (“Freshpet” or the “Company”) (Nasdaq: FRPT) today
reported financial results for its second quarter ended June
30, 2023.
Second Quarter 2023 Financial Highlights
Compared to Prior Year Period
- Net sales of $183.3 million, an increase of 25.6%
- Net loss of $17.0 million, compared with prior year net
loss of $20.6 million
- Adjusted EBITDA of $9.0 million, compared to prior year of
$(1.9) million.1
"The Freshpet business has real momentum. In the
second quarter, we delivered strong volume and net sales growth,
and significant improvements in our operating performance –
particularly in quality and logistics – which is the basis for
increasing our 2023 adjusted EBITDA guidance today," commented
Billy Cyr, Freshpet’s Chief Executive Officer. “With a strengthened
organization in place, accelerating household ("HH") penetration
growth, record levels of new fridge placements, and a successful
start-up of the Ennis Kitchen, we are well-positioned to fulfill
the long-term potential of Freshpet and change the way people
nourish their pets forever."
Second Quarter 2023
Net sales increased 25.6% to $183.3 million
for the second quarter of 2023 compared to $146.0 million
for the second quarter of 2022. Net sales for the
second quarter of 2023 were driven by both velocity
gains, and higher pricing.
Gross profit was $59.2 million, or 32.3% as
a percentage of net sales, for the second quarter of 2023,
compared to $51.1 million, or 35.0% as a percentage of net
sales, in the prior year period. The decrease in reported gross
profit as a percentage of net sales was primarily due to increased
depreciation expense associated with the Company's capacity
expansion, unabsorbed plant cost and increased share-based
compensation, partially offset by reduced input and quality cost as
a percentage of net sales. For the second quarter of 2023,
Adjusted Gross Profit was $73.0 million, or 39.8% as a
percentage of net sales, compared to $56.5 million, or 38.7%
as a percentage of net sales, in the prior year period. Adjusted
Gross Profit is a non-GAAP financial measure defined under
“Non-GAAP Measures” and is reconciled to gross profit in the
financial tables that accompany this release.
Selling, general and administrative expenses
(“SG&A”) were $76.0 million for the
second quarter of 2023 compared to $69.2 million in
the prior year period. As a percentage of net sales, SG&A
decreased to 41.5% for the second quarter of
2023 compared to 47.4% in the prior year period. The decrease
of 590 basis points in SG&A as a percentage of net
sales was mainly a result of reduced logistics cost as a percentage
of net sales, leverage on media spend, decreased cost related to
the ERP implementation, and increased leverage on depreciation and
option expense as the business scales. Adjusted SG&A for the
second quarter of 2023 was $64.0 million, or 34.9%
as a percentage of net sales, compared to $58.5 million, or
40.0% as a percentage of net sales, in the prior year period.
Adjusted SG&A is a non-GAAP financial measure defined under
“Non-GAAP Measures” and is reconciled to SG&A in the financial
tables that accompany this release.
Net loss was $17.0 million for the
second quarter of 2023 compared to net loss of
$20.6 million for the prior year period. The decrease in net
loss was due to contribution profit from higher sales,
partially offset by increased SG&A including, increased media
spend of $3.2 million, higher depreciation and increased
unabsorbed plant cost.
1 Adjusted EBITDA, as well as certain other
measures in this release, is a non-GAAP financial measure. See
"Non-GAAP Measures" for how the Company defines these measures
and the financial tables that accompany this release for
reconciliations of these measures to the closest comparable GAAP
measures.
Adjusted EBITDA was $9.0 million for the
second quarter of 2023, compared to a loss of
$(1.9) million in the prior year period. The increase in
Adjusted EBITDA was a result of higher Adjusted Gross Profit due to
sales growth and leverage on quality and input costs, partially
offset by higher Adjusted SG&A expenses. Adjusted EBITDA
is a non-GAAP financial measure defined under “Non-GAAP Measures”
and is reconciled to net loss in the financial tables that
accompany this release.
First Six Months of 2023
Net sales increased 26.1% to $350.9 million
for the first six months of 2023 compared to
$278.2 million for the first six months of 2022. Net
sales for the first six months of 2023 were driven by
both velocity gains, and higher pricing.
Gross profit was $110.0 million, or 31.4%
as a percentage of net sales, for the first six months of
2023, compared to $95.8 million, or 34.5% as a percentage of
net sales, in the prior year period. The decrease in reported gross
profit as a percentage of net sales was primarily due to increased
depreciation expense associated with the Company's capacity
expansion, unabsorbed plant cost and increased share-based
compensation, partially offset by reduced input and quality cost as
a percentage of net sales. For the first six months of 2023,
Adjusted Gross Profit was $137.5 million, or 39.2% as a
percentage of net sales, compared to $107.2 million, or 38.5%
as a percentage of net sales, in the prior year period. Adjusted
Gross Profit is a non-GAAP financial measure defined under
“Non-GAAP Measures” and is reconciled to gross profit in the
financial tables that accompany this release.
Selling, general and administrative expenses
(“SG&A”) were $148.3 million for the first six
months of 2023 compared to $129.8 million in the
prior year period. As a percentage of net sales, SG&A decreased
to 42.3% for the first six months of 2023 compared to
46.7% in the prior year period. The decrease of 440 basis
points in SG&A as a percentage of net sales was mainly a
result of reduced logistics cost as a percentage of net sales,
leverage on media spend, decreased cost related to the ERP
implementation, and increased leverage on depreciation and option
expense as the business scales. Adjusted SG&A for the
first six months of 2023 was $125.5 million, or 35.8% as a
percentage of net sales, compared to $109.6 million, or 39.4% as a
percentage of net sales, in the prior year period. Adjusted
SG&A is a non-GAAP financial measure defined under “Non-GAAP
Measures” and is reconciled to SG&A in the financial tables
that accompany this release.
Net loss was $41.7 million for the
first six months of 2023 compared to net loss of
$38.1 million for the prior year period. The increase in net
loss was due to increased SG&A including, increased media
spend of $7.4 million, higher depreciation and increased
unabsorbed plant cost, partially offset by contribution profit
from higher sales.
Adjusted EBITDA was $12.0 million for the six
months ended June 30, 2023, compared to a loss of $2.2 million in
the prior year period. The increase in Adjusted EBITDA was a result
of increased Adjusted Gross Profit partially offset by higher
Adjusted SGA expense. Adjusted EBITDA is a non-GAAP financial
measure defined under "Non-GAAP Measures" and is reconciled to net
loss in the financial tables that accompany this release.
Balance Sheet
As of June 30, 2023, the Company had cash and cash equivalents
and short-term investments of $358.5 million with
$391.9 million of debt outstanding net of $10.6 million
of fees. For the three months ended June 30, 2023, the interest
gained on our cash and short-term investments was able to fully
offset the $3.5 million of interest expense
incurred.
The Company will utilize its balance sheet to support
its on-going capital needs in connection with its long-term
capacity plan.
Outlook
For full year 2023, the Company updates its full year Adjusted
EBITDA guidance and reiterates its Net Sales and capital
expenditure guidance as follows:
- Net sales of ~$750 million, an increase of ~26% from 2022,
unchanged from previous guidance.
- Adjusted EBITDA of at least $55 million, from
previous guidance of at least $50 million.
- Capital expenditures for 2023 of ~$240 million,
unchanged from previous guidance.
The Company does not provide guidance for the most directly
comparable GAAP measure, net income, and similarly cannot provide a
reconciliation between its forecasted adjusted EBITDA and net
income metrics without unreasonable effort due to the
unavailability of reliable estimates for certain components of net
income and the respective reconciliations, including the timing of
and amount of costs of goods sold and selling, general and
administrative expenses. These items are not within the Company's
control and may vary greatly between periods and could
significantly impact future results.
Conference Call & Earnings
Presentation Webcast Information As previously announced,
today, August 7, 2023, the Company will host a conference call
beginning at 8:00 a.m. Eastern Time with members of its leadership
team. The conference call webcast will be available live over the
Internet through the "Investors" section of the Company's website
at www.freshpet.com. To participate on the live call, listeners in
North America may dial (877) 407-0792 and international listeners
may dial (201) 689-8263.
A replay of the conference call will be archived
on the Company's website and telephonic playback will be available
from 12:00 p.m. Eastern Time today through August 21, 2023. North
American listeners may dial (844) 512-2921 and international
listeners may dial (412) 317-6671; the passcode is
13740259About Freshpet
Freshpet’s mission is to improve the lives of
dogs and cats through the power of fresh, real food. Freshpet foods
are blends of fresh meats, vegetables and fruits farmed locally and
made at our Freshpet Kitchens. We thoughtfully prepare our
foods using natural ingredients, cooking them in small batches at
lower temperatures to preserve the natural goodness of the
ingredients. Freshpet foods and treats are kept refrigerated from
the moment they are made until they arrive at Freshpet Fridges in
your local market.
Our foods are available in select mass, grocery
(including online), natural food, club, and pet specialty retailers
across the United States, Canada and Europe. From the care, we take
to source our ingredients and make our food, to the moment it
reaches your home, our integrity, transparency and social
responsibility are the way we like to run our business. To learn
more, visit www.freshpet.com.
Connect with Freshpet:
https://www.facebook.com/Freshpet
https://twitter.com/Freshpet
http://instagram.com/Freshpet
http://pinterest.com/Freshpet
https://www.tiktok.com/@Freshpet
https://en.wikipedia.org/wiki/Freshpet
https://www.youtube.com/user/freshpet400
Forward Looking Statements
Certain statements in this release constitute
“forward-looking” statements, including statements relating to our
long-term capacity planning, net sales guidance and Adjusted EBITDA
guidance. These statements are based on management's current
opinions, expectations, beliefs, plans, objectives, assumptions or
projections regarding future events or future results. These
forward-looking statements, including our updated guidance, are
only predictions, not historical fact, and involve certain risks
and uncertainties, as well as assumptions. Actual results, levels
of activity, performance, achievements and events could differ
materially from those stated, anticipated or implied by such
forward-looking statements. While Freshpet believes that its
assumptions are reasonable, it is very difficult to predict the
impact of known factors, and, of course, it is impossible to
anticipate all factors that could affect actual results. There are
several risks and uncertainties that could cause actual results to
differ materially from forward-looking statements made herein
including, most prominently, the risks discussed under the heading
“Risk Factors” in the Company's latest annual report on Form 10-K
and its quarterly reports on Form 10-Q filed with the Securities
and Exchange Commission. Such forward-looking statements are made
only as of the date of this release. Freshpet undertakes no
obligation to publicly update or revise any forward-looking
statement because of new information, future events or otherwise,
except as otherwise required by law. If we do update one or more
forward-looking statements, no inference should be made that we
will make additional updates with respect to those or other
forward-looking statements.
Non-GAAP Financial Measures
Freshpet uses the following non-GAAP financial
measures in its financial communications. These non-GAAP financial
measures should be considered as supplements to the GAAP reported
measures, should not be considered replacements for, or superior
to, the GAAP measures and may not be comparable to similarly named
measures used by other companies.
- Adjusted Gross Profit
- Adjusted Gross Profit as a % of net sales (Adjusted Gross
Margin)
- Adjusted SG&A
- Adjusted SG&A as a % of net sales
- EBITDA
- Adjusted EBITDA
- Adjusted EBITDA as a % of net sales
Adjusted Gross Profit: Freshpet defines Adjusted
Gross Profit as gross profit before depreciation expense
and non-cash share-based compensation.
Adjusted SG&A Expenses: Freshpet defines
Adjusted SG&A as SG&A expenses before depreciation and
amortization, non-cash share-based compensation, implementation and
other costs associated with the implementation of an enterprise
resource planning ("ERP") system, fees related to the Capped Call
Transactions purchases, loss on disposal of equipment,
and advisory fees related to activism engagement.
EBITDA and Adjusted EBITDA: EBITDA represents
net income (loss) plus interest expense net of interest income,
income tax expense and depreciation and amortization expense, and
Adjusted EBITDA represents EBITDA plus loss on equity method
investment, non-cash share-based compensation expense,
implementation and other costs associated with the implementation
of an ERP system, loss on disposal of equipment, fees related
to the Capped Call Transactions purchases, and advisory fees
related to activism engagement.
Management believes that the non-GAAP financial
measures are meaningful to investors because they provide a view of
the Company with respect to ongoing operating results. The non-GAAP
financial measures are shown as supplemental disclosures in this
release because they are widely used by the investment community
for analysis and comparative evaluation. They also provide
additional metrics to evaluate the Company’s operations and, when
considered with both the Company’s GAAP results and the
reconciliation to the most comparable GAAP measures, provide a more
complete understanding of the Company’s business than could be
obtained absent this disclosure. The non-GAAP measures are not and
should not be considered an alternative to the most comparable GAAP
measures or any other figure calculated in accordance with GAAP, or
as an indicator of operating performance. The Company’s calculation
of the non-GAAP financial measures may differ from methods used by
other companies. Management believes that the non-GAAP measures are
important to an understanding of the Company's overall operating
results in the periods presented. The non-GAAP financial measures
are not recognized in accordance with GAAP and should not be viewed
as an alternative to GAAP measures of performance.
Investor Contact:ICRJeff
Sonnek646-277-1263Jeff.sonnek@icrinc.com
Media
Contact:Freshpet@edelmansmithfield.com
FRESHPET, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(Unaudited, in thousands, except per share data)
|
|
June 30, |
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
ASSETS |
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
244,048 |
|
|
$ |
132,735 |
|
Short-term investments |
|
|
114,437 |
|
|
|
— |
|
Accounts receivable, net of allowance for doubtful accounts |
|
|
51,889 |
|
|
|
57,572 |
|
Inventories, net |
|
|
65,269 |
|
|
|
58,290 |
|
Prepaid expenses |
|
|
8,182 |
|
|
|
9,778 |
|
Other current assets |
|
|
3,315 |
|
|
|
3,590 |
|
Total Current Assets |
|
|
487,140 |
|
|
|
261,965 |
|
Property, plant and equipment,
net |
|
|
865,237 |
|
|
|
800,586 |
|
Deposits on equipment |
|
|
2,429 |
|
|
|
3,823 |
|
Operating lease right of use
assets |
|
|
4,358 |
|
|
|
5,165 |
|
Equity method investment |
|
|
— |
|
|
|
25,418 |
|
Long term investment in equity
securities |
|
|
23,528 |
|
|
|
— |
|
Other assets |
|
|
27,679 |
|
|
|
28,426 |
|
Total Assets |
|
$ |
1,410,371 |
|
|
$ |
1,125,383 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
32,389 |
|
|
$ |
55,088 |
|
Accrued expenses |
|
|
43,477 |
|
|
|
33,016 |
|
Current operating lease liabilities |
|
|
1,576 |
|
|
|
1,510 |
|
Total Current Liabilities |
|
$ |
77,442 |
|
|
$ |
89,614 |
|
Convertible senior notes |
|
|
392,048 |
|
|
|
— |
|
Long term operating lease
liabilities |
|
|
3,097 |
|
|
|
4,200 |
|
Total Liabilities |
|
$ |
472,587 |
|
|
$ |
93,814 |
|
Commitments and
contingencies |
|
|
— |
|
|
|
— |
|
STOCKHOLDERS' EQUITY: |
|
|
|
|
|
|
|
|
Common stock — voting, $0.001 par value, 200,000 shares authorized,
48,199 issued and 48,185 outstanding on June 30, 2023, and 48,051
issued and 48,037 outstanding on December 31, 2022 |
|
|
48 |
|
|
|
48 |
|
Additional paid-in capital |
|
|
1,275,510 |
|
|
|
1,325,524 |
|
Accumulated deficit |
|
|
(336,855 |
) |
|
|
(295,117 |
) |
Accumulated other comprehensive (loss) income |
|
|
(663 |
) |
|
|
1,370 |
|
Treasury stock, at cost — 14 shares on June 30, 2023 and on
December 31, 2022 |
|
|
(256 |
) |
|
|
(256 |
) |
Total Stockholders'
Equity |
|
|
937,784 |
|
|
|
1,031,569 |
|
Total Liabilities and
Stockholders' Equity |
|
$ |
1,410,371 |
|
|
$ |
1,125,383 |
|
FRESHPET, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS(Unaudited, in thousands,
except per share data)
|
|
For the Three Months Ended |
|
|
For the Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
NET SALES |
|
$ |
183,331 |
|
|
$ |
146,007 |
|
|
$ |
350,853 |
|
|
$ |
278,179 |
|
COST OF GOODS SOLD |
|
|
124,087 |
|
|
|
94,927 |
|
|
|
240,849 |
|
|
|
182,346 |
|
GROSS PROFIT |
|
|
59,244 |
|
|
|
51,080 |
|
|
|
110,004 |
|
|
|
95,833 |
|
SELLING, GENERAL, AND
ADMINISTRATIVE EXPENSES |
|
|
75,996 |
|
|
|
69,215 |
|
|
|
148,267 |
|
|
|
129,846 |
|
LOSS FROM OPERATIONS |
|
|
(16,752 |
) |
|
|
(18,135 |
) |
|
|
(38,263 |
) |
|
|
(34,013 |
) |
OTHER INCOME (EXPENSES): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and Other Income (Expense), net |
|
|
4,108 |
|
|
|
(21 |
) |
|
|
5,055 |
|
|
|
237 |
|
Interest Expense |
|
|
(3,329 |
) |
|
|
(1,672 |
) |
|
|
(6,501 |
) |
|
|
(2,243 |
) |
|
|
|
779 |
|
|
|
(1,693 |
) |
|
|
(1,446 |
) |
|
|
(2,006 |
) |
LOSS BEFORE INCOME TAXES |
|
|
(15,972 |
) |
|
|
(19,828 |
) |
|
|
(39,708 |
) |
|
|
(36,019 |
) |
INCOME TAX EXPENSE |
|
|
70 |
|
|
|
41 |
|
|
|
140 |
|
|
|
82 |
|
LOSS ON EQUITY METHOD
INVESTMENT |
|
|
910 |
|
|
|
717 |
|
|
|
1,890 |
|
|
|
2,027 |
|
LOSS ATTRIBUTABLE TO COMMON
STOCKHOLDERS |
|
$ |
(16,952 |
) |
|
$ |
(20,586 |
) |
|
$ |
(41,738 |
) |
|
$ |
(38,128 |
) |
OTHER COMPREHENSIVE (LOSS)
INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in foreign currency
translation |
|
$ |
(2,039 |
) |
|
|
1,849 |
|
|
$ |
(2,033 |
) |
|
$ |
1,487 |
|
TOTAL OTHER COMPREHENSIVE
INCOME (LOSS) |
|
|
(2,039 |
) |
|
|
1,849 |
|
|
|
(2,033 |
) |
|
|
1,487 |
|
TOTAL COMPREHENSIVE LOSS |
|
$ |
(18,991 |
) |
|
$ |
(18,737 |
) |
|
$ |
(43,771 |
) |
|
$ |
(36,641 |
) |
NET LOSS PER SHARE
ATTRIBUTABLE TO COMMON STOCKHOLDERS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-BASIC |
|
$ |
(0.35 |
) |
|
$ |
(0.45 |
) |
|
$ |
(0.87 |
) |
|
$ |
(0.85 |
) |
-DILUTED |
|
$ |
(0.35 |
) |
|
$ |
(0.45 |
) |
|
$ |
(0.87 |
) |
|
$ |
(0.85 |
) |
WEIGHTED AVERAGE SHARES OF
COMMON STOCK OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-BASIC |
|
|
48,132 |
|
|
|
45,636 |
|
|
|
48,089 |
|
|
|
44,691 |
|
-DILUTED |
|
|
48,132 |
|
|
|
45,636 |
|
|
|
48,089 |
|
|
|
44,691 |
|
FRESHPET, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENT OF
CASH FLOWS (Unaudited, in thousands)
|
|
For the Six Months Ended |
|
|
|
June 30, |
|
|
|
2023 |
|
|
2022 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(41,738 |
) |
|
$ |
(38,128 |
) |
Adjustments to reconcile net loss to net cash flows used in
operating activities: |
|
|
|
|
|
|
|
|
Provision for loss (gains) on accounts receivable |
|
|
8 |
|
|
|
(14 |
) |
Loss on disposal of equipment |
|
|
464 |
|
|
|
89 |
|
Share-based compensation |
|
|
16,862 |
|
|
|
12,589 |
|
Inventory obsolescence |
|
|
- |
|
|
|
3,455 |
|
Depreciation and amortization |
|
|
28,930 |
|
|
|
15,888 |
|
Write-off and amortization of deferred financing costs and loan
discount |
|
|
3,034 |
|
|
|
398 |
|
Change in operating lease right of use asset |
|
|
807 |
|
|
|
675 |
|
Loss on equity method investment |
|
|
1,890 |
|
|
|
2,027 |
|
Amortization of discount on short-term investments |
|
|
(996 |
) |
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
5,675 |
|
|
|
(36,268 |
) |
Inventories |
|
|
(6,979 |
) |
|
|
(28,560 |
) |
Prepaid expenses and other current assets |
|
|
(430 |
) |
|
|
2,416 |
|
Other assets |
|
|
(3,762 |
) |
|
|
(358 |
) |
Accounts payable |
|
|
(7,488 |
) |
|
|
(421 |
) |
Accrued expenses |
|
|
4,529 |
|
|
|
4,487 |
|
Operating lease liability |
|
|
(1,037 |
) |
|
|
(677 |
) |
Net cash flows used in operating activities |
|
|
(231 |
) |
|
|
(62,402 |
) |
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
|
|
|
|
Purchase of short-term investments |
|
|
(113,441 |
) |
|
|
(19,840 |
) |
Investments in equity method investment |
|
|
— |
|
|
|
(3,294 |
) |
Acquisitions of property, plant and equipment, software and
deposits on equipment |
|
|
(102,507 |
) |
|
|
(94,872 |
) |
Net cash flows used in investing activities |
|
|
(215,948 |
) |
|
|
(118,006 |
) |
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
|
|
|
|
Proceeds from common shares issued in primary offering, net of
issuance cost |
|
|
— |
|
|
|
337,849 |
|
Proceeds from exercise of options to purchase common stock |
|
|
3,061 |
|
|
|
329 |
|
Tax withholdings related to net shares settlements of restricted
stock units |
|
|
(850 |
) |
|
|
(1,213 |
) |
Proceeds from borrowings under Credit Facility |
|
|
— |
|
|
|
78,000 |
|
Purchase of capped call option |
|
|
(66,211 |
) |
|
|
— |
|
Proceeds from issuance of convertible senior notes |
|
|
393,518 |
|
|
|
— |
|
Debt issuance costs |
|
|
(2,026 |
) |
|
|
— |
|
Net cash flows provided by financing activities |
|
|
327,492 |
|
|
|
414,965 |
|
NET CHANGE IN CASH AND CASH
EQUIVALENTS |
|
|
111,313 |
|
|
|
234,557 |
|
CASH AND CASH EQUIVALENTS,
BEGINNING OF YEAR |
|
|
132,735 |
|
|
|
72,788 |
|
CASH AND CASH EQUIVALENTS, END
OF PERIOD |
|
$ |
244,048 |
|
|
$ |
307,345 |
|
FRESHPET, INC. AND
SUBSIDIARIESRECONCILIATION BETWEEN GROSS PROFIT
AND ADJUSTED GROSS PROFIT
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
(Dollars in thousands) |
|
Gross profit |
|
$ |
59,244 |
|
|
$ |
51,080 |
|
|
$ |
110,004 |
|
|
$ |
95,833 |
|
Depreciation expense |
|
|
10,618 |
|
|
|
4,295 |
|
|
|
21,339 |
|
|
|
8,996 |
|
Non-cash share-based
compensation |
|
|
3,161 |
|
|
|
1,170 |
|
|
|
6,117 |
|
|
|
2,339 |
|
Adjusted Gross
Profit |
|
$ |
73,023 |
|
|
$ |
56,545 |
|
|
$ |
137,460 |
|
|
$ |
107,168 |
|
Adjusted Gross Profit as a %
of Net Sales |
|
|
39.8 |
% |
|
|
38.7 |
% |
|
|
39.2 |
% |
|
|
38.5 |
% |
FRESHPET, INC. AND
SUBSIDIARIESRECONCILIATION BETWEEN SG&A
EXPENSES AND ADJUSTED SG&A EXPENSES
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
(Dollars in thousands) |
|
SG&A expenses |
|
$ |
75,996 |
|
|
$ |
69,215 |
|
|
$ |
148,267 |
|
|
$ |
129,846 |
|
Depreciation and amortization
expense |
|
|
3,820 |
|
|
|
3,585 |
|
|
|
7,591 |
|
|
|
6,871 |
|
Non-cash share-based
compensation |
|
|
5,286 |
|
|
|
5,124 |
|
|
|
10,745 |
|
|
|
10,250 |
|
Loss on disposal of
equipment |
|
|
196 |
|
|
|
48 |
|
|
|
464 |
|
|
|
91 |
|
Enterprise Resource Planning
(a) |
|
|
537 |
|
|
|
1,991 |
|
|
|
1,338 |
|
|
|
3,008 |
|
Capped Call Transactions fees
(b) |
|
|
— |
|
|
|
— |
|
|
|
113 |
|
|
|
— |
|
Activism engagement (c) |
|
|
2,241 |
|
|
|
— |
|
|
|
2,630 |
|
|
|
— |
|
Organization changes (d) |
|
|
(67 |
) |
|
|
— |
|
|
|
(67 |
) |
|
|
— |
|
Adjusted SG&A
Expenses |
|
$ |
63,983 |
|
|
$ |
58,467 |
|
|
$ |
125,453 |
|
|
$ |
109,626 |
|
Adjusted SG&A Expenses as
a % of Net Sales |
|
|
34.9 |
% |
|
|
40.0 |
% |
|
|
35.8 |
% |
|
|
39.4 |
% |
|
(a) |
Represents implementation, amortization of deferred implementation
costs and other costs associated with the implementation of an ERP
system. |
|
(b) |
Represents fees associated with the Capped Call Transactions
purchases. |
|
(c) |
Represents advisory fees related to activism
engagement. |
|
(d) |
Represents a true up to transition costs related to the
organization changes designed to support growth, including several
changes in organizational structure designed to enhance
capabilities and support long-term growth objectives. |
FRESHPET, INC. AND
SUBSIDIARIESRECONCILIATION BETWEEN NET (LOSS)
AND ADJUSTED EBITDA
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
(Dollars in thousands) |
|
Net loss |
|
$ |
(16,952 |
) |
|
$ |
(20,586 |
) |
|
$ |
(41,738 |
) |
|
$ |
(38,128 |
) |
Depreciation and
amortization |
|
|
14,438 |
|
|
|
7,880 |
|
|
|
28,930 |
|
|
|
15,867 |
|
Interest expense, net of
interest income |
|
|
(779 |
) |
|
|
1,671 |
|
|
|
1,446 |
|
|
|
2,243 |
|
Income tax expense |
|
|
70 |
|
|
|
41 |
|
|
|
140 |
|
|
|
82 |
|
EBITDA |
|
$ |
(3,223 |
) |
|
$ |
(10,994 |
) |
|
$ |
(11,222 |
) |
|
$ |
(19,936 |
) |
Loss on equity method
investment |
|
|
910 |
|
|
|
717 |
|
|
$ |
1,890 |
|
|
|
2,027 |
|
Loss on disposal of
equipment |
|
|
196 |
|
|
|
48 |
|
|
|
464 |
|
|
|
91 |
|
Non-cash share-based
compensation |
|
|
8,447 |
|
|
|
6,294 |
|
|
|
16,862 |
|
|
|
12,589 |
|
Enterprise Resource Planning
(a) |
|
|
537 |
|
|
|
1,991 |
|
|
|
1,338 |
|
|
|
3,008 |
|
Capped Call Transactions fees
(b) |
|
|
— |
|
|
|
— |
|
|
|
113 |
|
|
|
— |
|
Activism engagement (c) |
|
|
2,240 |
|
|
|
— |
|
|
|
2,629 |
|
|
|
— |
|
Organization changes (d) |
|
|
(67 |
) |
|
|
— |
|
|
|
(67 |
) |
|
|
— |
|
Adjusted
EBITDA |
|
$ |
9,040 |
|
|
$ |
(1,944 |
) |
|
$ |
12,007 |
|
|
$ |
(2,221 |
) |
Adjusted EBITDA as a % of Net
Sales |
|
|
4.9 |
% |
|
|
-1.3 |
% |
|
|
3.4 |
% |
|
|
-0.8 |
% |
|
(a) |
Represents implementation, amortization of deferred implementation
costs and other costs associated with the implementation of an ERP
system. |
|
(b) |
Represents fees associated with the Capped Call Transactions
purchases. |
|
(c) |
Represents advisory fees related to activism engagement. |
|
(d) |
Represents a true up to transition costs related to the
organization changes designed to support growth, including several
changes in organizational structure designed to enhance
capabilities and support long-term growth objectives. |
Freshpet (NASDAQ:FRPT)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Freshpet (NASDAQ:FRPT)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024