FLOWERS FOODS, INC. REPORTS FOURTH QUARTER AND FULL YEAR 2023 RESULTS
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
"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
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 |
|
|
12-Week Period |
|
||
|
|
|
|
|
|
|
||
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%.
- Branded Retail sales increased
- 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
(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
About
Headquartered in
Forward-Looking Statements
Statements contained in this press release and certain other written or oral statements made from time to time by
Information Regarding Non-GAAP Financial Measures
The company prepares its consolidated financial statements in accordance with
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
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.
|
||||||||
(000's omitted) |
||||||||
|
||||||||
|
|
|
|
|
|
|
||
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 |
(2) Includes current portion of |
|
||||||||||||||||
(000's omitted, except per share data) |
||||||||||||||||
|
||||||||||||||||
|
|
12-Week Period |
|
|
12-Week Period |
|
|
For the 52-Week |
|
|
For the 52-Week |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sales |
|
$ |
1,129,027 |
|
|
$ |
1,082,670 |
|
|
$ |
5,090,830 |
|
|
$ |
4,805,822 |
|
Materials, supplies, labor and other production costs (exclusive of |
|
|
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 |
|
|
||||||||||||||||
(000's omitted) |
||||||||||||||||
|
||||||||||||||||
|
|
12-Week Period |
|
|
12-Week Period |
|
|
For the 52-Week |
|
|
For the 52-Week |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
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 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
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 |
|
|
||||||||||||||||
(000's omitted) |
||||||||||||||||
Sales by Sales Class |
||||||||||||||||
|
||||||||||||||||
|
|
12-Week Period Ended |
|
|
12-Week Period Ended |
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
$ 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 |
|
|
For the 52-Week Period |
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
$ 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 |
% |
|
||||||||||||
|
||||||||||||
For the 12-week period ended |
|
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 |
|
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 $ |
|
|
||||||||||||||||
(000's omitted, except per share data) |
||||||||||||||||
|
||||||||||||||||
|
|
Reconciliation of Earnings per Share to Adjusted Earnings per Share |
|
|||||||||||||
|
|
12-Week Period |
|
|
12-Week Period |
|
|
For the 52-Week |
|
|
For the 52-Week |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
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 |
|
|
12-Week Period |
|
|
For the 52-Week |
|
|
For the 52-Week |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sales |
|
$ |
1,129,027 |
|
|
$ |
1,082,670 |
|
|
$ |
5,090,830 |
|
|
$ |
4,805,822 |
|
Materials, supplies, labor and other production costs (exclusive |
|
|
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 |
|
|
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 |
|
|||||||||||||
|
|
12-Week Period |
|
|
12-Week Period Ended |
|
|
For the 52-Week |
|
|
For the 52-Week |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling, distribution, and administrative expenses |
|
$ |
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 |
|
|
||||||||||||||||
(000's omitted, except per share data) |
||||||||||||||||
|
||||||||||||||||
|
|
Reconciliation of Net Income to EBITDA and Adjusted EBITDA |
|
|||||||||||||
|
|
12-Week Period |
|
|
12-Week Period Ended |
|
|
For the 52-Week |
|
|
For the 52-Week |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
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) |
|
|
— |
|
|
|
(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 |
|
|
12-Week Period Ended |
|
|
For the 52-Week |
|
|
For the 52-Week |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
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) |
|
|
— |
|
|
|
(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 |
|
|
||||||||||||||||
(000's omitted, except per share data) |
||||||||||||||||
|
|
|||||||||||||||
|
|
Reconciliation of Net Income to Adjusted Net Income |
|
|||||||||||||
|
|
12-Week Period |
|
|
12-Week Period Ended |
|
|
For the 52-Week |
|
|
For the 52-Week |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
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