THOMASVILLE, Ga., Feb. 8, 2024
/PRNewswire/ -- Flowers Foods, Inc. (NYSE: FLO) today
reported financial results for the company's 52-week fiscal 2023
and 12-week fourth quarter ended December
30, 2023.
Fiscal 2023 Summary:
Compared to the prior year
where applicable
- Sales increased 5.9% to a record $5.091
billion.
- Net income decreased 46.0% to $123.4
million, primarily due to increased legal settlement
expense. Adjusted net income(1) decreased 5.4% to $256.3 million.
- Adjusted EBITDA(1) decreased 0.1% to $501.7 million, representing 9.9% of sales, a
50-basis point decrease.
- Diluted EPS decreased $0.49 to
$0.58. Adjusted diluted EPS(1)
decreased $0.07 to $1.20.
Fourth Quarter Summary:
Compared to the prior year
fourth quarter where applicable
- Sales increased 4.3% to a fourth-quarter record, $1.129 billion.
- Net income decreased 26.6% to $35.7
million, primarily due to increased SD&A and
depreciation and amortization expense. Adjusted net income(1)
decreased 11.2% to $42.7
million.
- Adjusted EBITDA(1) increased 0.1% to $96.3 million, representing 8.5% of sales, a
40-basis point decrease.
- Diluted EPS decreased $0.06 to
$0.17. Adjusted diluted EPS(1)
decreased $0.03 to $0.20.
Chairman and CEO Remarks:
"Flowers' fourth quarter and full year 2023 results underscore
the strength of our leading brands, as we delivered record sales
despite difficult market conditions," said Ryals McMullian,
chairman and CEO of Flowers Foods. "Volume trends improved
throughout the year, and we gained dollar and unit share in the
fourth quarter for the first time since early 2022, reflecting the
hard work of our team and investments in innovation and marketing.
Dave's Killer Bread was a particular standout, achieving a
record $1 billion in 2023 retail
sales. Accelerated by our portfolio strategy, we also improved
margins significantly in our cake, foodservice, and private label
businesses.
"The 2024 outlook reflects confidence in our ability to
successfully execute in a challenging category. Results are
expected to benefit from moderating commodity costs, positive
pricing actions, and savings initiatives. Our strong execution on
promotions is driving improved returns, but the competitive
environment remains rational, with promotional activity
significantly below pre-pandemic levels. We remain committed to
investing in innovation and marketing, as well as converting our
distribution model in California.
While these initiatives may present near-term headwinds, they are
expected to ultimately enhance shareholder value. Above all, we are
focused on enabling future growth in line with our long-term
financial targets."
For the 52-week Fiscal 2024, the Company Expects:
- Sales in the range of approximately $5.091 billion to $5.172
billion, representing 0.0% to 1.6% growth compared to the
prior year.
- Adjusted EBITDA(2) in the range of approximately $524 million to $553
million.
- Adjusted diluted EPS(2) in the range of approximately
$1.20 to $1.30.
The company's outlook is based on the following assumptions:
- Depreciation and amortization in the range of $160 million to $165
million.
- Net interest expense of approximately $22 million to $26
million.
- An effective tax rate of approximately 25%.
- Weighted average diluted share count for the year of
approximately 213 million shares.
- Capital expenditures in the range of $120 million to $130
million, with $3 million to
$6 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
|
|
|
|
December 30,
2023
|
|
|
December 31,
2022
|
|
Net income per diluted
common share
|
|
$
|
0.17
|
|
|
$
|
0.23
|
|
Business process
improvement costs
|
|
|
0.01
|
|
|
|
0.02
|
|
Impairment of
assets
|
|
|
0.02
|
|
|
|
—
|
|
FASTER Act, net of
recovery on inferior ingredients
|
|
|
—
|
|
|
NM
|
|
Restructuring
charges
|
|
NM
|
|
|
|
—
|
|
Acquisition-related
costs
|
|
|
—
|
|
|
NM
|
|
Gain on sale and lease
termination gain
|
|
|
—
|
|
|
|
(0.02)
|
|
Adjusted net income per
diluted common share
|
|
$
|
0.20
|
|
|
$
|
0.23
|
|
|
NM - not
meaningful.
Certain amounts may
not add due to rounding.
|
Consolidated Fourth Quarter Operating
Highlights
Compared to the prior year fourth quarter
where applicable
- Sales increased 4.3% to $1.129
billion, a fourth-quarter record. Pricing/mix(3) increased
5.6%, volume(4) declined 2.4%, and the Papa Pita acquisition added
1.1%.
- Branded Retail sales increased $25.1
million or 3.6% to $724.6
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 2.6%, volume(4) declined 0.3%, and
the Papa Pita acquisition added 1.3%.
- Other sales increased $21.3
million or 5.6% to $404.4
million due to price increases intended to offset
inflationary pressures, and the acquisition contribution, partially
offset by volume declines. Pricing/mix(3) rose 9.2%, volume(4)
declined 4.4%, and the Papa Pita acquisition added 0.8%.
- Materials, supplies, labor, and other production costs
(exclusive of depreciation and amortization) were 52.1% of sales, a
110-basis point decrease. These costs decreased as a percentage of
sales due to moderating input cost inflation and reduced outside
purchases resulting from the acquisition, partially offset by
higher labor and maintenance costs.
- Selling, distribution, and administrative (SD&A) expenses
were 39.7% of sales, a 180-basis point increase. Increased labor,
insurance, marketing, and technology expenses and a prior year gain
on sale of assets were partly offset by lower distributor
distribution fees as a percentage of sales and bad debt expense.
Excluding matters affecting comparability, adjusted SD&A
expenses were 39.4% of sales, a 150-basis point increase, due to
the factors listed above except for a prior year gain on sale of
assets.
- The company recognized impairments of $6.3 million that represented 0.6% of sales. An
impairment for a cost method investment was $5.5 million and the other impairment was
$0.8 million for an asset held for
sale.
- Depreciation and amortization (D&A) expenses were
$37.0 million or 3.3% of sales, a
30-basis point increase.
- Net interest expense increased $3.6
million primarily due to increased interest expense and
relatively lower interest income.
- Net income decreased 26.6% to $35.7
million. Adjusted net income(1) decreased 11.2% to
$42.7 million.
- Adjusted EBITDA(1) increased 0.1% to $96.3 million, representing 8.5% of sales, a
40-basis point decrease.
Cash Flow, Capital Allocation, and Capital Return
For fiscal 2023, cash flow from operating activities decreased
$11.5 million to $349.4 million, capital expenditures decreased
$40.0 million to $129.1 million, and dividends paid to
shareholders increased $8.7 million
to $195.2 million. Cash and cash
equivalents were $22.5 million at the
end of fiscal 2023.
(1)
|
Adjusted for items
affecting comparability that have occurred during 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 or adjusted
diluted EPS to diluted EPS for the 52-week Fiscal 2024 is included
in this press release because the company is unable to quantify
certain amounts that would be required to be included in the GAAP
measures 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 February 9, 2024. The pre-recorded
remarks and webcast will be archived on the investors page of
flowersfoods.com.
About Flowers Foods
Headquartered in Thomasville,
Ga., Flowers Foods, Inc. (NYSE: FLO) is one of the largest
producers of packaged bakery foods in the
United States with 2023 sales of $5.1
billion. Flowers operates bakeries across the country that
produce a wide range of bakery products. Among the company's top
brands are Nature's Own, Dave's Killer Bread,
Wonder, Canyon Bakehouse, and Tastykake. Learn more
at www.flowersfoods.com.
FLO-CORP FLO-IR
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 the
Middle East), incidents of
terrorism, natural disasters, labor strikes or work stoppages,
technological breakdowns, product contamination, product recalls or
safety concerns related to our products, or the responses to or
repercussions from any of these or similar events or conditions and
our ability to insure against such events, (q) the failure of our
information technology systems to perform adequately, including any
interruptions, intrusions, cyber-attacks or security breaches of
such systems or risks associated with the implementation of the
upgrade of our ERP system; and (r) the potential impact of climate
change on the company, including physical and transition risks,
availability or restriction of resources, higher regulatory and
compliance costs, reputational risks, and availability of capital
on attractive terms. The foregoing list of important factors does
not include all such factors, nor does it necessarily present them
in order of importance. In addition, you should consult other
disclosures made by the company (such as in our other filings with
the SEC or in company press releases) for other factors that may
cause actual results to differ materially from those projected by
the company. Refer to Part I, Item 1A., Risk Factors, of the Form
10-K, 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. The
company also believes that EBITDA measures are commonly reported
and widely used by investors and other interested parties as
measures of a company's operating performance and debt servicing
ability because EBITDA measures assist in comparing performance on
a consistent basis without regard to depreciation or amortization,
which can vary significantly depending upon accounting methods and
non-operating factors (such as historical cost). EBITDA is also a
widely-accepted financial indicator of a company's ability to incur
and service indebtedness.
EBITDA should not be considered an alternative to (a) income
from operations or net income (loss) as a measure of operating
performance; (b) cash flows provided by operating, investing and
financing activities (as determined in accordance with GAAP) as a
measure of the company's ability to meet its cash needs; or (c) any
other indicator of performance or liquidity that has been
determined in accordance with GAAP.
The company defines adjusted EBITDA, adjusted EBITDA margin,
adjusted net income, adjusted diluted EPS, adjusted income tax
expense and adjusted SD&A, respectively, to exclude additional
costs that the company considers important to present to investors
to increase the investors' insights about the company's core
operations. These costs include, but are not limited to, the costs
of closing a plant or costs associated with acquisition-related
activities, restructuring activities, certain impairment charges,
legal settlements, costs to implement an enterprise resource
planning system and enhance bakery digital capabilities (business
process improvement costs) to provide investors direct insight into
these costs, and other costs impacting past and future
comparability. The company believes that these measures, when
considered together with its GAAP financial results, provides
management and investors with a more complete understanding of its
business operating results, including underlying trends, by
excluding the effects of certain charges. Adjusted EBITDA is used
as the primary performance measure in the company's 2014 Omnibus
Equity and Incentive Compensation Plan (Amended and Restated
Effective May 25, 2023).
Presentation of gross margin includes depreciation and
amortization in the materials, supplies, labor and other production
costs according to GAAP. Our method of presenting gross margin
excludes the depreciation and amortization components, as discussed
above.
The reconciliations attached provide reconciliations of the
non-GAAP measures used in this presentation or release to the most
comparable GAAP financial measure.
Flowers Foods,
Inc. Condensed Consolidated Balance Sheets
|
(000's
omitted)
|
|
|
|
December 30,
2023
|
|
|
December 31,
2022
|
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
22,527
|
|
|
$
|
165,134
|
|
Other current
assets
|
|
|
655,422
|
|
|
|
613,334
|
|
Property, plant and
equipment, net
|
|
|
962,981
|
|
|
|
849,325
|
|
Right-of-use leases,
net
|
|
|
276,864
|
|
|
|
275,214
|
|
Distributor notes
receivable (1)
|
|
|
133,335
|
|
|
|
163,354
|
|
Other
assets
|
|
|
40,286
|
|
|
|
37,008
|
|
Cost in excess of net
tangible assets, net
|
|
|
1,335,538
|
|
|
|
1,209,625
|
|
Total
assets
|
|
$
|
3,426,953
|
|
|
$
|
3,312,994
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
liabilities
|
|
$
|
611,546
|
|
|
$
|
518,656
|
|
Long-term
debt
|
|
|
1,048,144
|
|
|
|
891,842
|
|
Right-of-use lease
liabilities (2)
|
|
|
284,501
|
|
|
|
282,862
|
|
Other
liabilities
|
|
|
130,980
|
|
|
|
176,344
|
|
Stockholders'
equity
|
|
|
1,351,782
|
|
|
|
1,443,290
|
|
Total liabilities and
stockholders' equity
|
|
$
|
3,426,953
|
|
|
$
|
3,312,994
|
|
|
(1)
Includes current portion of $9,764 and $26,472,
respectively.
|
(2)
Includes current portion of $47,606 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 52-Week
Period Ended
|
|
|
For the 52-Week
Period Ended
|
|
|
|
December 30,
2023
|
|
|
December 31,
2022
|
|
|
December 30,
2023
|
|
|
December 31,
2022
|
|
Sales
|
|
$
|
1,129,027
|
|
|
$
|
1,082,670
|
|
|
$
|
5,090,830
|
|
|
$
|
4,805,822
|
|
Materials, supplies,
labor and other production costs (exclusive of
depreciation and amortization shown separately
below)
|
|
|
587,719
|
|
|
|
575,698
|
|
|
|
2,632,136
|
|
|
|
2,501,995
|
|
Selling, distribution,
and administrative expenses
|
|
|
447,905
|
|
|
|
409,929
|
|
|
|
2,119,718
|
|
|
|
1,850,594
|
|
Restructuring
charges
|
|
|
226
|
|
|
|
—
|
|
|
|
7,099
|
|
|
|
—
|
|
FASTER Act, net of
recovery on inferior ingredients
|
|
|
—
|
|
|
|
236
|
|
|
|
—
|
|
|
|
236
|
|
Plant closure costs and
impairment of assets
|
|
|
6,264
|
|
|
|
—
|
|
|
|
7,298
|
|
|
|
7,825
|
|
Depreciation and
amortization expense
|
|
|
37,016
|
|
|
|
32,713
|
|
|
|
151,709
|
|
|
|
141,957
|
|
Income from
operations
|
|
|
49,897
|
|
|
|
64,094
|
|
|
|
172,870
|
|
|
|
303,215
|
|
Other pension
benefit
|
|
|
(62)
|
|
|
|
(179)
|
|
|
|
(269)
|
|
|
|
(773)
|
|
Interest expense,
net
|
|
|
3,885
|
|
|
|
330
|
|
|
|
16,032
|
|
|
|
5,277
|
|
Income before income
taxes
|
|
|
46,074
|
|
|
|
63,943
|
|
|
|
157,107
|
|
|
|
298,711
|
|
Income tax
expense
|
|
|
10,398
|
|
|
|
15,346
|
|
|
|
33,691
|
|
|
|
70,317
|
|
Net income
|
|
$
|
35,676
|
|
|
$
|
48,597
|
|
|
$
|
123,416
|
|
|
$
|
228,394
|
|
Net income per diluted
common share
|
|
$
|
0.17
|
|
|
$
|
0.23
|
|
|
$
|
0.58
|
|
|
$
|
1.07
|
|
Diluted weighted
average shares outstanding
|
|
|
212,309
|
|
|
|
212,925
|
|
|
|
213,356
|
|
|
|
213,227
|
|
Flowers Foods,
Inc. Condensed Consolidated Statement of Cash
Flows
|
(000's
omitted)
|
|
|
|
12-Week Period
Ended
|
|
|
12-Week Period
Ended
|
|
|
For the 52-Week
Period Ended
|
|
|
For the 52-Week
Period Ended
|
|
|
|
December 30,
2023
|
|
|
December 31,
2022
|
|
|
December 30,
2023
|
|
|
December 31,
2022
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
35,676
|
|
|
$
|
48,597
|
|
|
$
|
123,416
|
|
|
$
|
228,394
|
|
Adjustments to
reconcile net income to net cash from operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
non-cash adjustments
|
|
|
49,002
|
|
|
|
25,976
|
|
|
|
160,816
|
|
|
|
183,490
|
|
Changes
in assets and liabilities and pension plan contributions
|
|
|
7,357
|
|
|
|
(5,218)
|
|
|
|
65,121
|
|
|
|
(50,995)
|
|
Net cash provided by
operating activities
|
|
|
92,035
|
|
|
|
69,355
|
|
|
|
349,353
|
|
|
|
360,889
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase
of property, plant and equipment
|
|
|
(32,075)
|
|
|
|
(40,699)
|
|
|
|
(129,078)
|
|
|
|
(169,071)
|
|
Proceeds
from sale of property, plant and equipment
|
|
|
34
|
|
|
|
4,346
|
|
|
|
2,312
|
|
|
|
7,681
|
|
Acquisition of business
|
|
|
—
|
|
|
|
—
|
|
|
|
(274,755)
|
|
|
|
—
|
|
Investment in unconsolidated affiliate
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,981)
|
|
|
|
(9,000)
|
|
Other
|
|
|
(5,236)
|
|
|
|
4,521
|
|
|
|
(310)
|
|
|
|
19,302
|
|
Net cash disbursed
for investing activities
|
|
|
(37,277)
|
|
|
|
(31,832)
|
|
|
|
(403,812)
|
|
|
|
(151,088)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
|
(48,489)
|
|
|
|
(46,449)
|
|
|
|
(195,215)
|
|
|
|
(186,501)
|
|
Stock
repurchases
|
|
|
(14,910)
|
|
|
|
—
|
|
|
|
(45,801)
|
|
|
|
(34,586)
|
|
Net
change in debt borrowings
|
|
|
10,000
|
|
|
|
—
|
|
|
|
155,000
|
|
|
|
—
|
|
Payments
on financing leases
|
|
|
(306)
|
|
|
|
(291)
|
|
|
|
(1,819)
|
|
|
|
(1,597)
|
|
Other
|
|
|
6,913
|
|
|
|
1,607
|
|
|
|
(313)
|
|
|
|
517
|
|
Net cash disbursed
for financing activities
|
|
|
(46,792)
|
|
|
|
(45,133)
|
|
|
|
(88,148)
|
|
|
|
(222,167)
|
|
Effect of exchange
rates on cash
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(8,371)
|
|
Net increase (decrease)
in cash and cash equivalents
|
|
|
7,966
|
|
|
|
(7,610)
|
|
|
|
(142,607)
|
|
|
|
(12,366)
|
|
Cash and cash
equivalents at beginning of period
|
|
|
14,561
|
|
|
|
172,744
|
|
|
|
165,134
|
|
|
|
185,871
|
|
Cash and cash
equivalents at end of period
|
|
$
|
22,527
|
|
|
$
|
165,134
|
|
|
$
|
22,527
|
|
|
$
|
165,134
|
|
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
|
|
|
|
|
|
|
|
|
|
December 30,
2023
|
|
|
December 31,
2022
|
|
|
$ Change
|
|
|
% Change
|
|
Branded
Retail
|
|
$
|
724,635
|
|
|
$
|
699,567
|
|
|
$
|
25,068
|
|
|
|
3.6
|
%
|
Other
|
|
|
404,392
|
|
|
|
383,103
|
|
|
|
21,289
|
|
|
|
5.6
|
%
|
Total
Sales
|
|
$
|
1,129,027
|
|
|
$
|
1,082,670
|
|
|
$
|
46,357
|
|
|
|
4.3
|
%
|
|
|
|
For the 52-Week
Period
Ended
|
|
|
For the 52-Week
Period
Ended
|
|
|
|
|
|
|
|
|
|
December 30,
2023
|
|
|
December 31,
2022
|
|
|
$ Change
|
|
|
% Change
|
|
Branded
Retail
|
|
$
|
3,263,277
|
|
|
$
|
3,139,306
|
|
|
$
|
123,971
|
|
|
|
3.9
|
%
|
Other
|
|
|
1,827,553
|
|
|
|
1,666,516
|
|
|
|
161,037
|
|
|
|
9.7
|
%
|
Total
Sales
|
|
$
|
5,090,830
|
|
|
$
|
4,805,822
|
|
|
$
|
285,008
|
|
|
|
5.9
|
%
|
Sales
Bridge
|
|
For the 12-week
period ended December 30, 2023
|
|
Branded
Retail
|
|
|
Other
|
|
|
Total
|
|
Pricing/mix*
|
|
|
2.6
|
%
|
|
|
9.2
|
%
|
|
|
5.6
|
%
|
Volume*
|
|
|
(0.3)
|
%
|
|
|
(4.4)
|
%
|
|
|
(2.4)
|
%
|
Acquisition
|
|
|
1.3
|
%
|
|
|
0.8
|
%
|
|
|
1.1
|
%
|
Total percentage
point change in sales
|
|
|
3.6
|
%
|
|
|
5.6
|
%
|
|
|
4.3
|
%
|
|
For the 52-week
period ended December 30, 2023
|
|
Branded
Retail
|
|
|
Other
|
|
|
Total
|
|
Pricing/mix*
|
|
|
5.5
|
%
|
|
|
16.3
|
%
|
|
|
10.1
|
%
|
Volume*
|
|
|
(2.6)
|
%
|
|
|
(7.8)
|
%
|
|
|
(5.3)
|
%
|
Acquisition
|
|
|
1.0
|
%
|
|
|
1.2
|
%
|
|
|
1.1
|
%
|
Total percentage
point change in sales
|
|
|
3.9
|
%
|
|
|
9.7
|
%
|
|
|
5.9
|
%
|
|
|
|
|
|
|
|
|
|
|
* 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
Earnings per Share to Adjusted Earnings per Share
|
|
|
|
12-Week Period
Ended
|
|
|
12-Week Period
Ended
|
|
|
For the 52-Week
Period Ended
|
|
|
For the 52-Week
Period Ended
|
|
|
|
December 30,
2023
|
|
|
December 31,
2022
|
|
|
December 30,
2023
|
|
|
December 31,
2022
|
|
Net income per diluted
common share
|
|
$
|
0.17
|
|
|
$
|
0.23
|
|
|
$
|
0.58
|
|
|
$
|
1.07
|
|
Business process
improvement costs
|
|
|
0.01
|
|
|
|
0.02
|
|
|
|
0.08
|
|
|
|
0.12
|
|
Plant closure costs and
impairment of assets
|
|
|
0.02
|
|
|
|
—
|
|
|
|
0.03
|
|
|
|
0.03
|
|
Restructuring
charges
|
|
NM
|
|
|
|
—
|
|
|
|
0.02
|
|
|
|
—
|
|
FASTER Act, net of
recovery on inferior ingredients
|
|
|
—
|
|
|
NM
|
|
|
|
—
|
|
|
NM
|
|
Acquisition-related
costs
|
|
|
—
|
|
|
NM
|
|
|
|
0.01
|
|
|
|
0.04
|
|
Gain on sale, severance
costs and lease termination (gain) loss
|
|
|
—
|
|
|
|
(0.02)
|
|
|
|
—
|
|
|
|
(0.02)
|
|
Legal settlements and
related costs
|
|
|
—
|
|
|
|
—
|
|
|
|
0.48
|
|
|
|
0.03
|
|
Adjusted net income per
diluted common share
|
|
$
|
0.20
|
|
|
$
|
0.23
|
|
|
$
|
1.20
|
|
|
$
|
1.27
|
|
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 52-Week
Period Ended
|
|
|
For the 52-Week
Period Ended
|
|
|
|
December 30,
2023
|
|
|
December 31,
2022
|
|
|
December 30,
2023
|
|
|
December 31,
2022
|
|
Sales
|
|
$
|
1,129,027
|
|
|
$
|
1,082,670
|
|
|
$
|
5,090,830
|
|
|
$
|
4,805,822
|
|
Materials, supplies,
labor and other production costs (exclusive
of depreciation and amortization)
|
|
|
587,719
|
|
|
|
575,698
|
|
|
|
2,632,136
|
|
|
|
2,501,995
|
|
Gross margin excluding
depreciation and amortization
|
|
|
541,308
|
|
|
|
506,972
|
|
|
|
2,458,694
|
|
|
|
2,303,827
|
|
Less depreciation and
amortization for production activities
|
|
|
20,213
|
|
|
|
18,085
|
|
|
|
83,145
|
|
|
|
77,950
|
|
Gross margin
|
|
$
|
521,095
|
|
|
$
|
488,887
|
|
|
$
|
2,375,549
|
|
|
$
|
2,225,877
|
|
Depreciation and
amortization for production activities
|
|
$
|
20,213
|
|
|
$
|
18,085
|
|
|
$
|
83,145
|
|
|
$
|
77,950
|
|
Depreciation and
amortization for selling, distribution, and
administrative activities
|
|
|
16,803
|
|
|
|
14,628
|
|
|
|
68,564
|
|
|
|
64,007
|
|
Total depreciation and
amortization
|
|
$
|
37,016
|
|
|
$
|
32,713
|
|
|
$
|
151,709
|
|
|
$
|
141,957
|
|
|
|
|
|
Reconciliation of
Selling, Distribution, and Administrative Expenses to
Adjusted SD&A
|
|
|
|
12-Week Period
Ended
|
|
|
12-Week
Period Ended
|
|
|
For the 52-Week
Period Ended
|
|
|
For the 52-Week
Period Ended
|
|
|
|
December 30,
2023
|
|
|
December 31,
2022
|
|
|
December 30,
2023
|
|
|
December 31,
2022
|
|
Selling, distribution,
and administrative expenses
(SD&A)
|
|
$
|
447,905
|
|
|
$
|
409,929
|
|
|
$
|
2,119,718
|
|
|
$
|
1,850,594
|
|
Business process
improvement costs
|
|
|
(2,900)
|
|
|
|
(4,303)
|
|
|
|
(21,521)
|
|
|
|
(33,169)
|
|
Legal settlements and
related costs
|
|
|
—
|
|
|
|
—
|
|
|
|
(137,529)
|
|
|
|
(7,500)
|
|
Acquisition-related
costs
|
|
|
—
|
|
|
|
(936)
|
|
|
|
(3,712)
|
|
|
|
(12,518)
|
|
Gain on sale, severance
costs and lease termination (gain) loss
|
|
|
—
|
|
|
|
6,107
|
|
|
|
—
|
|
|
|
4,390
|
|
Adjusted
SD&A
|
|
$
|
445,005
|
|
|
$
|
410,797
|
|
|
$
|
1,956,956
|
|
|
$
|
1,801,797
|
|
Flowers Foods,
Inc. Reconciliation of GAAP to Non-GAAP
Measures
|
(000's omitted, except
per share data)
|
|
|
|
Reconciliation of
Net Income to EBITDA and Adjusted EBITDA
|
|
|
|
12-Week Period
Ended
|
|
|
12-Week Period
Ended
|
|
|
For the 52-Week
Period Ended
|
|
|
For the 52-Week
Period Ended
|
|
|
|
December 30,
2023
|
|
|
December 31,
2022
|
|
|
December 30,
2023
|
|
|
December 31,
2022
|
|
Net income
|
|
$
|
35,676
|
|
|
$
|
48,597
|
|
|
$
|
123,416
|
|
|
$
|
228,394
|
|
Income tax
expense
|
|
|
10,398
|
|
|
|
15,346
|
|
|
|
33,691
|
|
|
|
70,317
|
|
Interest expense,
net
|
|
|
3,885
|
|
|
|
330
|
|
|
|
16,032
|
|
|
|
5,277
|
|
Depreciation and
amortization
|
|
|
37,016
|
|
|
|
32,713
|
|
|
|
151,709
|
|
|
|
141,957
|
|
EBITDA
|
|
|
86,975
|
|
|
|
96,986
|
|
|
|
324,848
|
|
|
|
445,945
|
|
Other pension
benefit
|
|
|
(62)
|
|
|
|
(179)
|
|
|
|
(269)
|
|
|
|
(773)
|
|
Business process
improvement costs
|
|
|
2,900
|
|
|
|
4,303
|
|
|
|
21,521
|
|
|
|
33,169
|
|
Plant closure costs and
impairment of assets
|
|
|
6,264
|
|
|
|
—
|
|
|
|
7,298
|
|
|
|
7,825
|
|
Restructuring
charges
|
|
|
226
|
|
|
|
—
|
|
|
|
7,099
|
|
|
|
—
|
|
FASTER Act, net of
recovery on inferior ingredients
|
|
|
—
|
|
|
|
236
|
|
|
|
—
|
|
|
|
236
|
|
Acquisition-related
costs
|
|
|
—
|
|
|
|
936
|
|
|
|
3,712
|
|
|
|
12,518
|
|
Gain on sale, severance
costs and lease termination (gain)
loss
|
|
|
—
|
|
|
|
(6,107)
|
|
|
|
—
|
|
|
|
(4,390)
|
|
Legal settlements and
related costs
|
|
|
—
|
|
|
|
—
|
|
|
|
137,529
|
|
|
|
7,500
|
|
Adjusted
EBITDA
|
|
$
|
96,303
|
|
|
$
|
96,175
|
|
|
$
|
501,738
|
|
|
$
|
502,030
|
|
Sales
|
|
$
|
1,129,027
|
|
|
$
|
1,082,670
|
|
|
$
|
5,090,830
|
|
|
$
|
4,805,822
|
|
Adjusted EBITDA
margin
|
|
|
8.5
|
%
|
|
|
8.9
|
%
|
|
|
9.9
|
%
|
|
|
10.4
|
%
|
|
|
|
Reconciliation of
Income Tax Expense to Adjusted Income Tax Expense
|
|
|
|
12-Week Period
Ended
|
|
|
12-Week Period
Ended
|
|
|
For the 52-Week
Period Ended
|
|
|
For the 52-Week
Period Ended
|
|
|
|
December 30,
2023
|
|
|
December 31,
2022
|
|
|
December 30,
2023
|
|
|
December 31,
2022
|
|
Income tax
expense
|
|
$
|
10,398
|
|
|
$
|
15,346
|
|
|
$
|
33,691
|
|
|
$
|
70,317
|
|
Tax impact
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
Business process
improvement costs
|
|
|
725
|
|
|
|
1,075
|
|
|
|
5,380
|
|
|
|
8,292
|
|
Plant closure costs
and impairment of assets
|
|
|
1,566
|
|
|
|
—
|
|
|
|
1,825
|
|
|
|
1,956
|
|
Restructuring
charges
|
|
|
57
|
|
|
|
—
|
|
|
|
1,775
|
|
|
|
—
|
|
FASTER Act, net of
recovery on inferior ingredients
|
|
|
—
|
|
|
|
59
|
|
|
|
—
|
|
|
|
59
|
|
Acquisition-related
costs
|
|
|
—
|
|
|
|
234
|
|
|
|
928
|
|
|
|
3,130
|
|
Gain on sale,
severance costs and lease termination (gain)
loss
|
|
|
—
|
|
|
|
(1,527)
|
|
|
|
—
|
|
|
|
(1,098)
|
|
Legal settlements and
related costs
|
|
|
—
|
|
|
|
—
|
|
|
|
34,382
|
|
|
|
1,875
|
|
Adjusted income tax
expense
|
|
$
|
12,746
|
|
|
$
|
15,187
|
|
|
$
|
77,981
|
|
|
$
|
84,531
|
|
Flowers Foods,
Inc. Reconciliation of GAAP to Non-GAAP
Measures
|
(000's omitted, except
per share data)
|
|
|
|
|
Reconciliation of
Net Income to Adjusted Net Income
|
|
|
|
12-Week Period
Ended
|
|
|
12-Week Period
Ended
|
|
|
For the 52-Week
Period Ended
|
|
|
For the 52-Week
Period Ended
|
|
|
|
December 30,
2023
|
|
|
December 31,
2022
|
|
|
December 30,
2023
|
|
|
December 31,
2022
|
|
Net income
|
|
$
|
35,676
|
|
|
$
|
48,597
|
|
|
$
|
123,416
|
|
|
$
|
228,394
|
|
Business process
improvement costs
|
|
|
2,175
|
|
|
|
3,228
|
|
|
|
16,141
|
|
|
|
24,877
|
|
Plant closure costs and
impairment of assets
|
|
|
4,698
|
|
|
|
—
|
|
|
|
5,473
|
|
|
|
5,869
|
|
Restructuring
charges
|
|
|
169
|
|
|
|
—
|
|
|
|
5,324
|
|
|
|
—
|
|
FASTER Act, net of
recovery on inferior ingredients
|
|
|
—
|
|
|
|
177
|
|
|
|
—
|
|
|
|
177
|
|
Acquisition-related
costs
|
|
|
—
|
|
|
|
702
|
|
|
|
2,784
|
|
|
|
9,388
|
|
Gain on sale, severance
costs and lease termination (gain) loss
|
|
|
—
|
|
|
|
(4,580)
|
|
|
|
—
|
|
|
|
(3,292)
|
|
Legal settlements and
related costs
|
|
|
—
|
|
|
|
—
|
|
|
|
103,147
|
|
|
|
5,625
|
|
Adjusted net
income
|
|
$
|
42,718
|
|
|
$
|
48,124
|
|
|
$
|
256,285
|
|
|
$
|
271,038
|
|
View original
content:https://www.prnewswire.com/news-releases/flowers-foods-inc-reports-fourth-quarter-and-full-year-2023-results-302057867.html
SOURCE Flowers Foods, Inc.