THOMASVILLE, Ga., Nov. 9, 2023
/PRNewswire/ -- Flowers Foods, Inc. NYSE: FLO) today reported
financial results for the company's 12-week fiscal third quarter
ended October 7, 2023.
Third Quarter Summary:
Compared to the prior year
third quarter where applicable
- Sales increased 3.5% to a third-quarter record, $1.199 billion.
- Net income decreased $87.3
million to a net loss of $46.7
million, primarily due to increased legal settlement
expense. Adjusted net income(1) decreased 4.5% to $61.7 million.
- Adjusted EBITDA(1) increased 0.6% to $121.2 million, representing 10.1% of sales, a
30-basis point decrease.
- Diluted EPS decreased $0.41 to a
loss of $0.22. Adjusted diluted
EPS(1) decreased $0.01 to
$0.29.
CEO's Remarks:
"We are pleased to have delivered another quarter with record
sales, where we maintained unit share in a challenging
environment," said Ryals McMullian, chairman and CEO of Flowers
Foods. "Our pricing strategy proved effective, helping to mitigate
inflation and drive top line results. Volume trends improved
sequentially, reflecting strong branded retail performance and the
diminished impact of business rationalizations. We continued to
invest in areas that we expect to drive future growth, including
our team, bakeries, brand marketing, and digital initiatives.
"Our diverse product portfolio is well-positioned to meet an
increasingly value-focused consumer. We also are investing in
innovation to introduce additional differentiated products across
the price spectrum, and increasing marketing efforts to aid
awareness. Nature's Own Keto loaf and healthier snacking
options from Dave's Killer Bread are recent examples that
are helping to maintain our strong momentum into the fourth quarter
and expand our market potential. We remain focused on maximizing
our near-term results while enabling future growth in line with our
long-term financial targets."
For the 52-week Fiscal 2023, the Company Expects:
- Sales in the range of approximately $5.085 billion to $5.104
billion, representing an increase of approximately 5.8% to
6.2% compared to the prior year period. Prior guidance called for
sales of approximately $5.095 billion
to $5.141 billion, representing an
increase of approximately 6.0% to 7.0% compared to the prior year
period.
- Adjusted EBITDA(2) in the range of approximately $495 million to $515
million, compared to prior guidance of $503 million to $528
million.
- Diluted EPS in the range of $0.60
to $0.67. Adjusted diluted EPS(1) in
the range of approximately $1.18 to
$1.25, consistent with prior
guidance.
The company's outlook is based on the following assumptions:
- Depreciation and amortization in the range of $150 million to $155
million, compared to prior guidance of $155 million to $160
million
- Net interest expense of approximately $16 million to $18
million
- An effective tax rate of approximately 24%
- Weighted average diluted share count for the year of
approximately 213 million shares
- Capital expenditures in the range of $135 million to $145
million, with $25 million to
$35 million related to the ERP
upgrade, compared to prior guidance of $145
million to $155 million, with
$30 million to $40 million related to the ERP upgrade
Matters Affecting Comparability:
Reconciliation of
Earnings per Share to Adjusted Earnings per Share
|
|
|
|
|
|
12-Week Period
Ended
|
|
|
12-Week Period
Ended
|
|
|
|
October 7,
2023
|
|
|
October 8,
2022
|
|
Net (loss) income per
diluted common share
|
|
$
|
(0.22)
|
|
|
$
|
0.19
|
|
Business process
improvement costs
|
|
|
0.02
|
|
|
|
0.03
|
|
Plant closure costs and
impairment of assets
|
|
NM
|
|
|
|
0.02
|
|
Restructuring
charges
|
|
NM
|
|
|
|
—
|
|
Acquisition-related
costs
|
|
|
—
|
|
|
|
0.04
|
|
Legal settlement and
related costs
|
|
|
0.49
|
|
|
|
0.02
|
|
Adjusted net income per
diluted common share
|
|
$
|
0.29
|
|
|
$
|
0.30
|
|
|
NM - not meaningful.
Certain amounts may not add due to
rounding.
|
|
Consolidated Third Quarter Operating Highlights
Compared to the prior year third quarter where
applicable
- Sales increased 3.5% to $1.199
billion, a third-quarter record. Pricing/mix(3) increased
6.3%, volume(4) declined 4.1%, and the Papa Pita acquisition added
1.3%.
- Branded Retail sales increased $22.7
million or 3.0% to $771.2
million due to higher prices intended to offset inflationary
pressures, improved mix from greater branded organic product sales,
and the acquisition contribution, partially offset by volume
declines. Pricing/mix(3) rose 2.8%, volume(4) declined 1.1%, and
the Papa Pita acquisition added 1.3%.
- Other sales increased $18.4
million or 4.5% to $428.1
million due to substantial price increases intended to
offset inflationary pressures, and the acquisition contribution,
partially offset by volume declines. Pricing/mix(3) rose 10.4%,
volume(4) declined 7.4%, and the Papa Pita acquisition added
1.5%.
- Materials, supplies, labor, and other production costs
(exclusive of depreciation and amortization) were 51.5% of sales, a
170-basis point decrease. These costs decreased as a percentage of
sales due to inflation-driven pricing actions more than offsetting
input cost inflation, lower production volumes, increased product
returns, and higher maintenance and labor costs.
- Selling, distribution, and administrative (SD&A) expenses
were 50.4% of sales, a 1,180-basis point increase. Increased legal
settlement expense, and, to a much lesser extent, increased
workforce-related costs, marketing investments, and amortization of
technology were partly offset by lower distributor distribution
fees as a percentage of sales and acquisition costs incurred in the
prior year period. Excluding matters affecting comparability,
adjusted SD&A expenses were 38.4% of sales, a 200-basis point
increase, due to the factors listed above with the exception of the
legal settlement expense and prior-year acquisition costs.
- Depreciation and amortization (D&A) expenses were
$36.0 million or 3.0% of sales, a
20-basis point increase.
- Net income decreased $87.3
million to a net loss of $46.7
million due to all the factors mentioned above and higher
interest expense. Adjusted net income(1) decreased 4.5% to
$61.7 million.
- Adjusted EBITDA(1) increased 0.6% to $121.2 million, representing 10.1% of sales, a
30-basis point decrease.
Cash Flow, Capital Allocation, and Capital Return
Year-to-date, through the end of the third quarter of fiscal
2023, cash flow from operating activities decreased by $34.2 million to $257.3
million, capital expenditures decreased $31.4 million to $97.0
million, and dividends paid to shareholders increased
$6.7 million to $146.7 million. Cash and cash equivalents were
$14.6 million at the end of the third
quarter of fiscal 2023.
(1)
|
Adjusted for items
affecting comparability that have occurred through the third
quarter of fiscal 2023. See reconciliations of non-GAAP measures in
the financial statements following this release.
|
(2)
|
No reconciliation of
the forecasted range for adjusted EBITDA to net income for the
52-week Fiscal 2023 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 reconciliations
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 8:30
a.m. (Eastern) on November 10,
2023. The pre-recorded remarks and webcast will be archived
at flowersfoods.com/investors.
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 2022 sales of $4.8
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.
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 (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 environmental, social, and governance
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
Israel and Gaza), 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, Part II, Item 1A., Risk Factors, of the Form 10-Q for the
quarter ended October 7, 2023 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. EBITDA
is used as the primary performance measure in the company's 2014
Omnibus Equity and Incentive Compensation Plan. Furthermore,
pursuant to the terms of our credit facility, EBITDA is used to
determine the company's compliance with certain financial
covenants. 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.
These costs include, but are not limited to, the costs of closing a
plant or costs associated with acquisition-related activities,
certain impairment charges, legal settlements 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.
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)
|
|
|
|
|
|
October 7, 2023
|
|
|
December 31,
2022
|
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
14,561
|
|
|
$
|
165,134
|
|
Other current
assets
|
|
|
674,674
|
|
|
|
613,334
|
|
Property, plant and
equipment, net
|
|
|
961,659
|
|
|
|
849,325
|
|
Right-of-use leases,
net
|
|
|
263,146
|
|
|
|
275,214
|
|
Distributor notes
receivable (1)
|
|
|
139,836
|
|
|
|
163,354
|
|
Other
assets
|
|
|
37,899
|
|
|
|
37,008
|
|
Cost in excess of net
tangible assets, net
|
|
|
1,342,864
|
|
|
|
1,209,625
|
|
Total
assets
|
|
$
|
3,434,639
|
|
|
$
|
3,312,994
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
|
|
|
Current
liabilities
|
|
$
|
620,132
|
|
|
$
|
518,656
|
|
Long-term
debt
|
|
|
1,037,843
|
|
|
|
891,842
|
|
Right-of-use lease
liabilities (2)
|
|
|
271,614
|
|
|
|
282,862
|
|
Other
liabilities
|
|
|
130,399
|
|
|
|
176,344
|
|
Stockholders'
equity
|
|
|
1,374,651
|
|
|
|
1,443,290
|
|
Total liabilities and
stockholders' equity
|
|
$
|
3,434,639
|
|
|
$
|
3,312,994
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes current
portion of $25,344 and $26,472, respectively.
|
(2)
|
Includes current
portion of $49,727 and $45,769, respectively.
|
Flowers Foods,
Inc.
Consolidated
Statement of Operations
(000's omitted, except
per share data)
|
|
|
|
|
|
12-Week Period
Ended
|
|
|
12-Week
Period
Ended
|
|
|
For the 40-Week
Period Ended
|
|
|
For the
40-Week
Period
Ended
|
|
|
|
October 7, 2023
|
|
|
October 8,
2022
|
|
|
October 7, 2023
|
|
|
October 8,
2022
|
|
Sales
|
|
$
|
1,199,260
|
|
|
$
|
1,158,169
|
|
|
$
|
3,961,803
|
|
|
$
|
3,723,152
|
|
Materials, supplies,
labor and other production costs (exclusive of
depreciation and amortization shown separately
below)
|
|
|
617,468
|
|
|
|
615,621
|
|
|
|
2,044,417
|
|
|
|
1,926,297
|
|
Selling, distribution,
and administrative expenses
|
|
|
603,954
|
|
|
|
447,363
|
|
|
|
1,671,813
|
|
|
|
1,440,665
|
|
Restructuring
charges
|
|
|
179
|
|
|
|
—
|
|
|
|
6,873
|
|
|
|
—
|
|
Plant closure costs and
impairment of assets
|
|
|
1,034
|
|
|
|
6,835
|
|
|
|
1,034
|
|
|
|
7,825
|
|
Depreciation and
amortization expense
|
|
|
35,974
|
|
|
|
32,899
|
|
|
|
114,693
|
|
|
|
109,244
|
|
(Loss) income from
operations
|
|
|
(59,349)
|
|
|
|
55,451
|
|
|
|
122,973
|
|
|
|
239,121
|
|
Other pension
benefit
|
|
|
(62)
|
|
|
|
(178)
|
|
|
|
(207)
|
|
|
|
(594)
|
|
Interest expense,
net
|
|
|
4,010
|
|
|
|
1,342
|
|
|
|
12,147
|
|
|
|
4,947
|
|
(Loss) income before
income taxes
|
|
|
(63,297)
|
|
|
|
54,287
|
|
|
|
111,033
|
|
|
|
234,768
|
|
Income tax (benefit)
expense
|
|
|
(16,567)
|
|
|
|
13,759
|
|
|
|
23,293
|
|
|
|
54,971
|
|
Net (loss)
income
|
|
$
|
(46,730)
|
|
|
$
|
40,528
|
|
|
$
|
87,740
|
|
|
$
|
179,797
|
|
Net (loss) income per
diluted common share
|
|
$
|
(0.22)
|
|
|
$
|
0.19
|
|
|
$
|
0.41
|
|
|
$
|
0.84
|
|
Diluted weighted
average shares outstanding
|
|
|
211,522
|
|
|
|
213,326
|
|
|
|
213,455
|
|
|
|
213,317
|
|
Flowers Foods,
Inc.
Condensed
Consolidated Statement of Cash Flows
(000's
omitted)
|
|
|
|
|
|
12-Week Period
Ended
|
|
|
12-Week
Period
Ended
|
|
|
For the 40-Week
Period Ended
|
|
|
For the
40-Week
Period
Ended
|
|
|
|
October 7, 2023
|
|
|
October 8,
2022
|
|
|
October 7, 2023
|
|
|
October 8,
2022
|
|
Cash flows from operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
|
(46,730)
|
|
|
$
|
40,528
|
|
|
$
|
87,740
|
|
|
$
|
179,797
|
|
Adjustments to
reconcile net (loss) income to net cash from operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
non-cash adjustments
|
|
|
6,458
|
|
|
|
48,562
|
|
|
|
111,814
|
|
|
|
157,514
|
|
Changes
in assets and liabilities and pension plan contributions
|
|
|
168,683
|
|
|
|
18,611
|
|
|
|
57,764
|
|
|
|
(45,777)
|
|
Net cash provided by operating
activities
|
|
|
128,411
|
|
|
|
107,701
|
|
|
|
257,318
|
|
|
|
291,534
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase
of property, plant and equipment
|
|
|
(28,618)
|
|
|
|
(30,510)
|
|
|
|
(97,003)
|
|
|
|
(128,372)
|
|
Proceeds
from sale of property, plant and equipment
|
|
|
1,503
|
|
|
|
1,760
|
|
|
|
2,278
|
|
|
|
3,335
|
|
Acquisition of business
|
|
|
—
|
|
|
|
—
|
|
|
|
(274,755)
|
|
|
|
—
|
|
Investment in unconsolidated affiliate
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,981)
|
|
|
|
(9,000)
|
|
Other
|
|
|
(1,051)
|
|
|
|
2,604
|
|
|
|
4,926
|
|
|
|
14,781
|
|
Net cash disbursed for investing
activities
|
|
|
(28,166)
|
|
|
|
(26,146)
|
|
|
|
(366,535)
|
|
|
|
(119,256)
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
|
(48,603)
|
|
|
|
(46,605)
|
|
|
|
(146,726)
|
|
|
|
(140,052)
|
|
Stock
repurchases
|
|
|
(4,647)
|
|
|
|
(18,072)
|
|
|
|
(30,891)
|
|
|
|
(34,586)
|
|
Net
change in debt borrowings
|
|
|
(37,000)
|
|
|
|
—
|
|
|
|
145,000
|
|
|
|
—
|
|
Payments
on financing leases
|
|
|
(461)
|
|
|
|
(442)
|
|
|
|
(1,513)
|
|
|
|
(1,306)
|
|
Other
|
|
|
(6,684)
|
|
|
|
2,168
|
|
|
|
(7,226)
|
|
|
|
(1,090)
|
|
Net cash disbursed for financing
activities
|
|
|
(97,395)
|
|
|
|
(62,951)
|
|
|
|
(41,356)
|
|
|
|
(177,034)
|
|
Effect of exchange
rates on cash
|
|
|
—
|
|
|
|
(8,371)
|
|
|
|
—
|
|
|
|
(8,371)
|
|
Net increase (decrease)
in cash and cash equivalents
|
|
|
2,850
|
|
|
|
18,604
|
|
|
|
(150,573)
|
|
|
|
(4,756)
|
|
Cash and cash
equivalents at beginning of period
|
|
|
11,711
|
|
|
|
162,511
|
|
|
|
165,134
|
|
|
|
185,871
|
|
Cash and cash
equivalents at end of period
|
|
$
|
14,561
|
|
|
$
|
172,744
|
|
|
$
|
14,561
|
|
|
$
|
172,744
|
|
Flowers Foods,
Inc.
Sales by Sales
Class and Sales Bridge
(000's
omitted)
Sales by Sales
Class
|
|
|
|
|
|
12-Week Period Ended
|
|
|
12-Week Period
Ended
|
|
|
|
|
|
|
|
|
|
October 7, 2023
|
|
|
October 8,
2022
|
|
|
$ Change
|
|
|
% Change
|
|
Branded
Retail
|
|
$
|
771,165
|
|
|
$
|
748,474
|
|
|
$
|
22,691
|
|
|
|
3.0
|
%
|
Other
|
|
|
428,095
|
|
|
|
409,695
|
|
|
|
18,400
|
|
|
|
4.5
|
%
|
Total Sales
|
|
$
|
1,199,260
|
|
|
$
|
1,158,169
|
|
|
$
|
41,091
|
|
|
|
3.5
|
%
|
|
|
|
|
For the 40-Week Period Ended
|
|
|
For the 40-Week
Period Ended
|
|
|
|
|
|
|
|
|
|
October 7, 2023
|
|
|
October 8,
2022
|
|
|
$ Change
|
|
|
% Change
|
|
Branded
Retail
|
|
$
|
2,538,711
|
|
|
$
|
2,439,739
|
|
|
$
|
98,972
|
|
|
|
4.1
|
%
|
Other
|
|
|
1,423,092
|
|
|
|
1,283,413
|
|
|
|
139,679
|
|
|
|
10.9
|
%
|
Total Sales
|
|
$
|
3,961,803
|
|
|
$
|
3,723,152
|
|
|
$
|
238,651
|
|
|
|
6.4
|
%
|
Sales Bridge
|
|
|
|
For the 12-week period ended October 7,
2023
|
|
Branded Retail
|
|
|
Other
|
|
|
Total
|
|
Pricing/mix*
|
|
|
2.8
|
%
|
|
|
10.4
|
%
|
|
|
6.3
|
%
|
Volume*
|
|
|
(1.1)
|
%
|
|
|
(7.4)
|
%
|
|
|
(4.1)
|
%
|
Acquisition
|
|
|
1.3
|
%
|
|
|
1.5
|
%
|
|
|
1.3
|
%
|
Total percentage point change in
sales
|
|
|
3.0
|
%
|
|
|
4.5
|
%
|
|
|
3.5
|
%
|
|
|
For the 40-week period ended October 7,
2023
|
|
Branded Retail
|
|
|
Other
|
|
|
Total
|
|
Pricing/mix*
|
|
|
6.3
|
%
|
|
|
18.3
|
%
|
|
|
11.3
|
%
|
Volume*
|
|
|
(3.3)
|
%
|
|
|
(8.7)
|
%
|
|
|
(6.0)
|
%
|
Acquisition
|
|
|
1.1
|
%
|
|
|
1.3
|
%
|
|
|
1.1
|
%
|
Total percentage point change in
sales
|
|
|
4.1
|
%
|
|
|
10.9
|
%
|
|
|
6.4
|
%
|
|
|
|
|
|
|
|
|
|
|
* Computations above are calculated as
follows:
|
|
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 (Loss) Earnings per Share to
Adjusted Earnings per Share
|
|
|
|
12-Week Period Ended
|
|
|
12-Week Period
Ended
|
|
|
For the 40-Week Period Ended
|
|
|
For the 40-Week
Period Ended
|
|
|
|
October 7, 2023
|
|
|
October 8,
2022
|
|
|
October 7, 2023
|
|
|
October 8,
2022
|
|
Net (loss) income per
diluted common share
|
|
$
|
(0.22)
|
|
|
$
|
0.19
|
|
|
$
|
0.41
|
|
|
$
|
0.84
|
|
Business process
improvement costs
|
|
|
0.02
|
|
|
|
0.03
|
|
|
|
0.07
|
|
|
|
0.10
|
|
Plant closure costs and
impairment of assets
|
|
NM
|
|
|
|
0.02
|
|
|
NM
|
|
|
|
0.03
|
|
Restructuring
charges
|
|
NM
|
|
|
|
—
|
|
|
|
0.02
|
|
|
|
—
|
|
Acquisition-related
costs
|
|
|
—
|
|
|
|
0.04
|
|
|
|
0.01
|
|
|
|
0.04
|
|
Severance and lease
termination
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.01
|
|
Legal settlements and
related costs
|
|
|
0.49
|
|
|
|
0.02
|
|
|
|
0.48
|
|
|
|
0.03
|
|
Adjusted net income per
diluted common share
|
|
$
|
0.29
|
|
|
$
|
0.30
|
|
|
$
|
1.00
|
|
|
$
|
1.04
|
|
NM - not meaningful.
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain amounts may not add due to
rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Gross Margin
|
|
|
|
12-Week Period Ended
|
|
|
12-Week Period
Ended
|
|
|
For the 40-Week Period Ended
|
|
|
For the 40-Week
Period Ended
|
|
|
|
October 7, 2023
|
|
|
October 8,
2022
|
|
|
October 7, 2023
|
|
|
October 8,
2022
|
|
Sales
|
|
$
|
1,199,260
|
|
|
$
|
1,158,169
|
|
|
$
|
3,961,803
|
|
|
$
|
3,723,152
|
|
Materials, supplies,
labor and other production costs (exclusive
of depreciation and amortization)
|
|
|
617,468
|
|
|
|
615,621
|
|
|
|
2,044,417
|
|
|
|
1,926,297
|
|
Gross margin excluding
depreciation and amortization
|
|
|
581,792
|
|
|
|
542,548
|
|
|
|
1,917,386
|
|
|
|
1,796,855
|
|
Less depreciation and
amortization for production activities
|
|
|
19,225
|
|
|
|
18,264
|
|
|
|
62,932
|
|
|
|
59,865
|
|
Gross margin
|
|
$
|
562,567
|
|
|
$
|
524,284
|
|
|
$
|
1,854,454
|
|
|
$
|
1,736,990
|
|
Depreciation and
amortization for production activities
|
|
$
|
19,225
|
|
|
$
|
18,264
|
|
|
$
|
62,932
|
|
|
$
|
59,865
|
|
Depreciation and
amortization for selling, distribution, and
administrative activities
|
|
|
16,749
|
|
|
|
14,635
|
|
|
|
51,761
|
|
|
|
49,379
|
|
Total depreciation and
amortization
|
|
$
|
35,974
|
|
|
$
|
32,899
|
|
|
$
|
114,693
|
|
|
$
|
109,244
|
|
|
|
|
|
|
|
Reconciliation of Selling, Distribution, and
Administrative Expenses to
Adjusted SD&A
|
|
|
|
12-Week Period Ended
|
|
|
12-Week Period
Ended
|
|
|
For the 40-Week Period Ended
|
|
|
For the 40-Week
Period Ended
|
|
|
|
October 7, 2023
|
|
|
October 8,
2022
|
|
|
October 7, 2023
|
|
|
October 8,
2022
|
|
Selling, distribution,
and administrative expenses
(SD&A)
|
|
$
|
603,954
|
|
|
$
|
447,363
|
|
|
$
|
1,671,813
|
|
|
$
|
1,440,665
|
|
Business process
improvement costs
|
|
|
(5,814)
|
|
|
|
(8,144)
|
|
|
|
(18,621)
|
|
|
|
(28,866)
|
|
Legal settlements and
related costs
|
|
|
(137,529)
|
|
|
|
(5,500)
|
|
|
|
(137,529)
|
|
|
|
(7,500)
|
|
Acquisition-related
costs
|
|
|
—
|
|
|
|
(11,582)
|
|
|
|
(3,712)
|
|
|
|
(11,582)
|
|
Severance and lease
termination
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,717)
|
|
Adjusted
SD&A
|
|
$
|
460,611
|
|
|
$
|
422,137
|
|
|
$
|
1,511,951
|
|
|
$
|
1,391,000
|
|
Flowers Foods,
Inc.
Reconciliation of
GAAP to Non-GAAP Measures
(000's omitted, except
per share data)
|
|
|
|
|
|
Reconciliation of Net (Loss) Income to EBITDA and
Adjusted EBITDA
|
|
|
|
12-Week Period Ended
|
|
|
12-Week Period
Ended
|
|
|
For the 40-Week Period Ended
|
|
|
For the 40-Week
Period Ended
|
|
|
|
October 7, 2023
|
|
|
October 8,
2022
|
|
|
October 7, 2023
|
|
|
October 8,
2022
|
|
Net (loss)
income
|
|
$
|
(46,730)
|
|
|
$
|
40,528
|
|
|
$
|
87,740
|
|
|
$
|
179,797
|
|
Income tax (benefit)
expense
|
|
|
(16,567)
|
|
|
|
13,759
|
|
|
|
23,293
|
|
|
|
54,971
|
|
Interest expense,
net
|
|
|
4,010
|
|
|
|
1,342
|
|
|
|
12,147
|
|
|
|
4,947
|
|
Depreciation and
amortization
|
|
|
35,974
|
|
|
|
32,899
|
|
|
|
114,693
|
|
|
|
109,244
|
|
EBITDA
|
|
|
(23,313)
|
|
|
|
88,528
|
|
|
|
237,873
|
|
|
|
348,959
|
|
Other pension
benefit
|
|
|
(62)
|
|
|
|
(178)
|
|
|
|
(207)
|
|
|
|
(594)
|
|
Business process
improvement costs
|
|
|
5,814
|
|
|
|
8,144
|
|
|
|
18,621
|
|
|
|
28,866
|
|
Plant closure costs and
impairment of assets
|
|
|
1,034
|
|
|
|
6,835
|
|
|
|
1,034
|
|
|
|
7,825
|
|
Restructuring
charges
|
|
|
179
|
|
|
|
—
|
|
|
|
6,873
|
|
|
|
—
|
|
Acquisition-related
costs
|
|
|
—
|
|
|
|
11,582
|
|
|
|
3,712
|
|
|
|
11,582
|
|
Severance and lease
termination
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,717
|
|
Legal settlements and
related costs
|
|
|
137,529
|
|
|
|
5,500
|
|
|
|
137,529
|
|
|
|
7,500
|
|
Adjusted
EBITDA
|
|
$
|
121,181
|
|
|
$
|
120,411
|
|
|
$
|
405,435
|
|
|
$
|
405,855
|
|
Sales
|
|
$
|
1,199,260
|
|
|
$
|
1,158,169
|
|
|
$
|
3,961,803
|
|
|
$
|
3,723,152
|
|
Adjusted EBITDA
margin
|
|
|
10.1
|
%
|
|
|
10.4
|
%
|
|
|
10.2
|
%
|
|
|
10.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Income Tax (Benefit) Expense to
Adjusted Income Tax Expense
|
|
|
|
12-Week Period Ended
|
|
|
12-Week Period
Ended
|
|
|
For the 40-Week Period Ended
|
|
|
For the 40-Week
Period Ended
|
|
|
|
October 7, 2023
|
|
|
October 8,
2022
|
|
|
October 7, 2023
|
|
|
October 8,
2022
|
|
Income tax (benefit)
expense
|
|
$
|
(16,567)
|
|
|
$
|
13,759
|
|
|
$
|
23,293
|
|
|
$
|
54,971
|
|
Tax impact
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
Business process
improvement costs
|
|
|
1,453
|
|
|
|
2,036
|
|
|
|
4,655
|
|
|
|
7,217
|
|
Plant closure costs
and impairment of assets
|
|
|
259
|
|
|
|
1,708
|
|
|
|
259
|
|
|
|
1,956
|
|
Restructuring
charges
|
|
|
45
|
|
|
|
—
|
|
|
|
1,718
|
|
|
|
—
|
|
Acquisition-related
costs
|
|
|
—
|
|
|
|
2,896
|
|
|
|
928
|
|
|
|
2,896
|
|
Severance and lease
termination
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
429
|
|
Legal settlements and
related costs
|
|
|
34,382
|
|
|
|
1,375
|
|
|
|
34,382
|
|
|
|
1,875
|
|
Adjusted income tax
expense
|
|
$
|
19,572
|
|
|
$
|
21,774
|
|
|
$
|
65,235
|
|
|
$
|
69,344
|
|
Flowers Foods,
Inc.
Reconciliation of
GAAP to Non-GAAP Measures
(000's omitted, except
per share data)
|
|
|
|
|
|
Reconciliation of Net (Loss) Income to Adjusted Net
Income
|
|
|
|
12-Week Period Ended
|
|
|
12-Week Period
Ended
|
|
|
For the 40-Week Period Ended
|
|
|
For the 40-Week
Period Ended
|
|
|
|
October 7, 2023
|
|
|
October 8,
2022
|
|
|
October 7, 2023
|
|
|
October 8,
2022
|
|
Net (loss)
income
|
|
$
|
(46,730)
|
|
|
$
|
40,528
|
|
|
$
|
87,740
|
|
|
$
|
179,797
|
|
Business process
improvement costs
|
|
|
4,361
|
|
|
|
6,108
|
|
|
|
13,966
|
|
|
|
21,649
|
|
Plant closure costs and
impairment of assets
|
|
|
775
|
|
|
|
5,127
|
|
|
|
775
|
|
|
|
5,869
|
|
Restructuring
charges
|
|
|
134
|
|
|
|
—
|
|
|
|
5,155
|
|
|
|
—
|
|
Acquisition-related
costs
|
|
|
—
|
|
|
|
8,686
|
|
|
|
2,784
|
|
|
|
8,686
|
|
Severance and lease
termination
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,288
|
|
Legal settlements and
related costs
|
|
|
103,147
|
|
|
|
4,125
|
|
|
|
103,147
|
|
|
|
5,625
|
|
Adjusted net
income
|
|
$
|
61,687
|
|
|
$
|
64,574
|
|
|
$
|
213,567
|
|
|
$
|
222,914
|
|
|
|
Reconciliation of Earnings per Share -
Full Year Fiscal 2023 Guidance
|
|
|
|
Range Estimate
|
|
Net income per diluted
common share
|
|
$
|
0.60
|
|
to
|
$
|
0.67
|
|
Business process
improvement costs
|
|
|
0.07
|
|
|
|
0.07
|
|
Plant closure costs and
impairment of assets
|
|
NM
|
|
|
NM
|
|
Restructuring
charges
|
|
|
0.02
|
|
|
|
0.02
|
|
Acquisition-related
costs
|
|
|
0.01
|
|
|
|
0.01
|
|
Legal settlements and
related costs
|
|
|
0.48
|
|
|
|
0.48
|
|
Adjusted net income per
diluted common share
|
|
$
|
1.18
|
|
to
|
$
|
1.25
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/flowers-foods-inc-reports-third-quarter-2023-results-301983661.html
SOURCE Flowers Foods, Inc.