FLOWERS FOODS, INC. REPORTS SECOND QUARTER 2025 RESULTS
Second Quarter Summary:
Compared to the prior year second quarter where applicable
- Net sales(1) increased 1.5% to
$1.243 billion as the Simple Mills acquisition benefit more than offset pricing/mix and volume declines. - Net income decreased 12.8% to
$58.4 million , representing 4.7% of sales, an 80-basis point decrease, primarily due to greater outside purchases, increased workforce-related costs, and higher interest expense. Adjusted net income(2) decreased 16.0% to$63.4 million . - Adjusted EBITDA(2) decreased 4.0% to
$137.7 million , representing 11.1% of net sales, a 60-basis point decrease. - Diluted EPS decreased
$0.04 to$0.28 . Adjusted diluted EPS(2) decreased$0.06 to$0.30 . - Simple Mills contributed
$61.4 million in net sales, net loss of$2.1 million ,$10.9 million to adjusted EBITDA(2), and ($0.01 ) diluted EPS(2).
Chairman and CEO Remarks:
"Macroeconomic uncertainty and shifting consumer demand have continued to pressure the bread category, but our portfolio strategy has shown promise in offsetting those headwinds," said Ryals McMullian, chairman and CEO of
"Our revised 2025 guidance reflects lower-than-expected second quarter revenues, largely due to softness in traditional loaf sales and a more-intense competitive environment, which we expect to persist throughout the year. We are proactively working to mitigate this weakness with disciplined cost savings efforts. By continuing to focus on factors within our control, we remain confident that our portfolio strategy will help maximize near-term performance while supporting more-consistent long-term growth."
For the 53-week Fiscal 2025, the Company Expects:
- Net sales of approximately
$5.239 billion to$5.308 billion , representing 2.7% to 4.0% growth compared to the prior year. Prior guidance called for net sales of approximately$5.297 billion to$5.395 billion , representing 3.8% to 5.7% growth. Excluding the Simple Mills acquisition, we expect net sales of approximately$5.021 billion to$5.083 billion , representing a change of -1.6% to -0.4% compared to the prior year. Prior guidance, excluding the Simple Mills acquisition, called for net sales of approximately$5.079 billion to$5.170 billion , representing a change of -0.5% to 1.3% compared to the prior year. The partial-year benefit of the Simple Mills acquisition is expected to contribute$218 million to$225 million to net sales, consistent with prior guidance. The 53rd week is expected to contribute$70 million to$80 million to net sales. - Adjusted EBITDA(3) in the range of approximately
$512 million to$538 million , compared to prior guidance of$534 million to$562 million . Excluding the Simple Mills acquisition, we expect adjusted EBITDA(3) of approximately$482 million to$505 million , compared to prior guidance of approximately$504 million to$529 million . The partial-year benefit of the Simple Mills acquisition is expected to contribute$30 million to$33 million to adjusted EBITDA(3), consistent with prior guidance. The 53rd week is expected to contribute$5 million to$7 million to adjusted EBITDA(3). - Adjusted diluted EPS(2) of approximately
$1.00 to$1.10 , compared to prior guidance of$1.05 to$1.15 . Excluding the Simple Mills acquisition, we expect adjusted diluted EPS(2) of$1.08 to$1.17 , compared to prior guidance of$1.13 to$1.22 . The partial-year contribution of the Simple Mills acquisition to adjusted diluted EPS(2) is expected to be ($0.08 ) to ($0.07 ), consistent with prior guidance. The 53rd week is expected to contribute approximately$0.02 to adjusted diluted EPS(2).
The company's outlook is based on the following assumptions:
- Depreciation and amortization of approximately
$168 million to$172 million , compared to prior guidance of$170 million to$175 million . - Net interest expense of approximately
$58 million to$62 million , compared to prior guidance of$63 million to$68 million . - An effective tax rate of approximately 25%.
- Weighted average diluted share count for the year of approximately 212.3 million shares.
- Capital expenditures of approximately
$135 million to$145 million , with$4 million to$6 million related to our enterprise resource planning system upgrade, compared to prior guidance of$140 million to$150 million .
Matters Affecting Comparability:
|
Reconciliation of Earnings per Share to Adjusted Earnings per Share |
||||||||||||||||
|
|
||||||||||||||||
|
|
|
For the 12-Week |
|
|
For the 12-Week |
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||
|
Net income per diluted common share |
|
$ |
0.28 |
|
|
$ |
0.32 |
|
||||||||
|
Business process improvement costs |
|
NM |
|
|
|
0.01 |
|
|||||||||
|
Plant closure costs and impairment of assets |
|
|
— |
|
|
NM |
|
|||||||||
|
Restructuring charges |
|
|
— |
|
|
|
0.02 |
|
||||||||
|
Restructuring-related implementation costs |
|
|
0.01 |
|
|
|
0.01 |
|
||||||||
|
Legal settlements and related costs |
|
NM |
|
|
|
— |
|
|||||||||
|
Acquisition-related costs |
|
|
0.01 |
|
(a) |
|
— |
|
||||||||
|
Adjusted net income per diluted common share |
|
$ |
0.30 |
|
|
$ |
0.36 |
|
||||||||
|
|
|
|
|
|
|
|
||||||||||
|
(a) Non-deductible tax acquisition-related costs from the prior period that impacted this period by |
|
|||||||||||||||
|
|
|
NM - not meaningful. Certain amounts may not add due to rounding. |
Consolidated Second Quarter Operating Highlights
Compared to the prior year second quarter where applicable
- Net sales increased 1.5% to
$1.243 billion . Pricing/mix(4) decreased 1.2%, volume(5) declined 2.4%, and the Simple Mills acquisition added 5.1%.- Branded Retail net sales increased
$39.2 million , or 5.0%, to$826.7 million due to the acquisition contribution, partially offset by volume declines and unfavorable price/mix. Pricing/mix(4) declined 1.5%, volume(5) decreased 1.3%, and the Simple Mills acquisition contributed 7.8%. - Other net sales decreased
$21.4 million , or 4.9%, to$416.1 million due to softer volumes in store branded retail sales and, to a lesser extent, non-retail sales resulting from execution of our non-retail margin optimization strategies. Pricing/mix(4) declined 1.2% and volume(5) declined 3.7%.
- Branded Retail net sales increased
- Materials, supplies, labor, and other production costs (exclusive of depreciation and amortization) were 51.2% of net sales, a 110-basis point increase. These costs increased as a percentage of net sales mostly due to increased outside purchases of product (sales with no associated ingredient costs) and lower production volumes. That increase was partly offset by lower ingredient and workforce-related costs.
- Selling, distribution, and administrative (SD&A) expenses were 38.1% of net sales, a 40-basis point decrease. SD&A expenses decreased as a percentage of net sales primarily due to lower distributor distribution fees. That benefit was partly offset by increased workforce-related costs and fleet expense largely related to the
California conversion. Excluding matters affecting comparability, adjusted SD&A(2) was 37.7% of net sales, a 50-basis point decrease. - Restructuring charges decreased
$6.8 million , related to a workforce reduction in the prior year period. Plant closure costs and impairment of assets decreased$1.4 million , related to the write off of certain cake distribution territories in the same quarter of the prior year. - Depreciation and amortization (D&A) expenses were
$39.8 million or 3.2% of net sales, a 20-basis point increase. - Net interest expense increased
$10.1 million primarily due to higher interest expense from the issuance of debt to fund the Simple Mills acquisition and related fees and expenses. - Net income decreased 12.8% to
$58.4 million , representing 4.7% of sales, an 80-basis point decrease, and diluted EPS decreased$0.04 to$0.28 . Adjusted net income(2) decreased 16.0% to$63.4 million and adjusted diluted EPS(2) decreased$0.06 to$0.30 . - Adjusted EBITDA(2) decreased 4.0% to
$137.7 million , representing 11.1% of net sales, a 60-basis point decrease. - Simple Mills contributed
$61.4 million in net sales, net loss of$2.1 million ,$10.9 million to adjusted EBITDA(2), and ($0.01 ) diluted EPS.
Cash Flow, Capital Allocation, and Capital Return
Year-to-date, cash flow from operating activities increased
|
(1) |
Any reference to sales refers to net sales inclusive of allowances and deductions against gross sales for variable consideration and consideration payable to customers |
|
(2) |
Adjusted for items affecting comparability. See reconciliations of non-GAAP measures in the financial statements following this release. Earnings are net income. EBITDA and Adjusted EBITDA are reconciled to net income. |
|
(3) |
No reconciliation of the forecasted range for adjusted EBITDA to net income for the 53-week Fiscal 2025 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 reconciliation would imply a degree of precision that would be confusing or misleading to investors. For the same reasons, the company is unable to address the probable significance of the unavailable information, which could be material to future results. |
|
(4) |
Calculated as (current year period units X change in price per unit) / prior year period net sales dollars |
|
(5) |
Calculated as (prior year period price per unit X change in units) / prior year period net sales dollars |
Pre-Recorded Management Remarks and Question and Answer Webcast
In conjunction with this release,
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, provide 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 release to the most comparable GAAP financial measure.
|
|
||||||||||||||||
|
Condensed Consolidated Balance Sheets |
||||||||||||||||
|
(000's omitted) |
||||||||||||||||
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||
|
Assets |
|
|
|
|
|
|
||||||||||
|
Cash and cash equivalents |
|
$ |
11,045 |
|
|
$ |
5,005 |
|
||||||||
|
Other current assets |
|
|
707,005 |
|
|
|
631,242 |
|
||||||||
|
Property, plant and equipment, net |
|
|
943,784 |
|
|
|
964,320 |
|
||||||||
|
Right-of-use leases, net |
|
|
321,370 |
|
|
|
318,785 |
|
||||||||
|
Distributor notes receivable (1) |
|
|
130,202 |
|
|
|
128,199 |
|
||||||||
|
Other assets |
|
|
44,133 |
|
|
|
46,631 |
|
||||||||
|
Cost in excess of net tangible assets, net |
|
|
2,187,083 |
|
|
|
1,306,265 |
|
||||||||
|
Total assets |
|
$ |
4,344,622 |
|
|
$ |
3,400,447 |
|
||||||||
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
||||||||||
|
Current liabilities |
|
$ |
516,151 |
|
|
$ |
480,079 |
|
||||||||
|
Long-term debt |
|
|
1,749,154 |
|
|
|
1,021,644 |
|
||||||||
|
Right-of-use lease liabilities (2) |
|
|
328,339 |
|
|
|
322,989 |
|
||||||||
|
Other liabilities |
|
|
323,222 |
|
|
|
165,621 |
|
||||||||
|
Stockholders' equity |
|
|
1,427,756 |
|
|
|
1,410,114 |
|
||||||||
|
Total liabilities and stockholders' equity |
|
$ |
4,344,622 |
|
|
$ |
3,400,447 |
|
||||||||
|
|
|
|
|
|
|
|
||||||||||
|
(1) |
Includes current portion of |
|
(2) |
Includes current portion of |
|
|
||||||||||||||||||||||||||||||||
|
Consolidated Statement of Operations |
||||||||||||||||||||||||||||||||
|
(000's omitted, except per share data) |
||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||
|
|
|
For the 12-Week |
|
|
For the 12-Week |
|
|
For the 28-Week |
|
|
For the 28-Week |
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Net sales |
|
$ |
1,242,835 |
|
|
$ |
1,224,983 |
|
|
$ |
2,797,065 |
|
|
$ |
2,801,801 |
|
||||||||||||||||
|
Materials, supplies, labor and other production costs (exclusive of |
|
|
636,060 |
|
|
|
613,362 |
|
|
|
1,414,406 |
|
|
|
1,410,548 |
|
||||||||||||||||
|
Selling, distribution, and administrative expenses |
|
|
473,537 |
|
|
|
471,400 |
|
|
|
1,107,050 |
|
|
|
1,096,651 |
|
||||||||||||||||
|
Restructuring charges |
|
|
— |
|
|
|
6,805 |
|
|
|
573 |
|
|
|
7,403 |
|
||||||||||||||||
|
Plant closure costs and impairment of assets |
|
|
— |
|
|
|
1,377 |
|
|
|
7,397 |
|
|
|
5,377 |
|
||||||||||||||||
|
Depreciation and amortization expense |
|
|
39,826 |
|
|
|
36,827 |
|
|
|
89,094 |
|
|
|
85,062 |
|
||||||||||||||||
|
Income from operations |
|
|
93,412 |
|
|
|
95,212 |
|
|
|
178,545 |
|
|
|
196,760 |
|
||||||||||||||||
|
Other pension benefit |
|
|
(88) |
|
|
|
(118) |
|
|
|
(205) |
|
|
|
(276) |
|
||||||||||||||||
|
Interest expense, net |
|
|
15,036 |
|
|
|
4,908 |
|
|
|
29,084 |
|
|
|
10,519 |
|
||||||||||||||||
|
Income before income taxes |
|
|
78,464 |
|
|
|
90,422 |
|
|
|
149,666 |
|
|
|
186,517 |
|
||||||||||||||||
|
Income tax expense |
|
|
20,099 |
|
|
|
23,455 |
|
|
|
38,303 |
|
|
|
46,507 |
|
||||||||||||||||
|
Net income |
|
$ |
58,365 |
|
|
$ |
66,967 |
|
|
$ |
111,363 |
|
|
$ |
140,010 |
|
||||||||||||||||
|
Net income per diluted common share |
|
$ |
0.28 |
|
|
$ |
0.32 |
|
|
$ |
0.53 |
|
|
$ |
0.66 |
|
||||||||||||||||
|
Diluted weighted average shares outstanding |
|
|
211,991 |
|
|
|
212,315 |
|
|
|
212,084 |
|
|
|
212,199 |
|
||||||||||||||||
|
|
||||||||||||||||||||||||||||||||
|
Condensed Consolidated Statement of Cash Flows |
||||||||||||||||||||||||||||||||
|
(000's omitted) |
||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||
|
|
|
For the 12-Week |
|
|
For the 12-Week |
|
|
For the 28-Week |
|
|
For the 28-Week |
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Net income |
|
$ |
58,365 |
|
|
$ |
66,967 |
|
|
$ |
111,363 |
|
|
$ |
140,010 |
|
||||||||||||||||
|
Adjustments to reconcile net income to net cash from operating |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Total non-cash adjustments |
|
|
74,705 |
|
|
|
46,349 |
|
|
|
151,840 |
|
|
|
124,570 |
|
||||||||||||||||
|
Changes in assets and liabilities |
|
|
(2,241) |
|
|
|
(50,044) |
|
|
|
3,260 |
|
|
|
(96,159) |
|
||||||||||||||||
|
Net cash provided by operating activities |
|
|
130,829 |
|
|
|
63,272 |
|
|
|
266,463 |
|
|
|
168,421 |
|
||||||||||||||||
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Purchase of property, plant and equipment |
|
|
(30,810) |
|
|
|
(27,919) |
|
|
|
(56,366) |
|
|
|
(61,251) |
|
||||||||||||||||
|
Proceeds from sale of property, plant and equipment |
|
|
194 |
|
|
|
749 |
|
|
|
208 |
|
|
|
809 |
|
||||||||||||||||
|
Acquisition of business, net of cash acquired |
|
|
— |
|
|
|
— |
|
|
|
(791,880) |
|
|
|
— |
|
||||||||||||||||
|
Other |
|
|
(4,757) |
|
|
|
(13,408) |
|
|
|
(23,349) |
|
|
|
(16,063) |
|
||||||||||||||||
|
Net cash disbursed for investing activities |
|
|
(35,373) |
|
|
|
(40,578) |
|
|
|
(871,387) |
|
|
|
(76,505) |
|
||||||||||||||||
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Dividends paid |
|
|
(52,449) |
|
|
|
(50,840) |
|
|
|
(104,772) |
|
|
|
(101,946) |
|
||||||||||||||||
|
Stock repurchases |
|
|
— |
|
|
|
(13,824) |
|
|
|
(5,499) |
|
|
|
(22,703) |
|
||||||||||||||||
|
Net change in debt borrowings |
|
|
(41,700) |
|
|
|
25,000 |
|
|
|
734,880 |
|
|
|
20,000 |
|
||||||||||||||||
|
Payment of financing fees |
|
|
(64) |
|
|
|
(40) |
|
|
|
(10,120) |
|
|
|
(190) |
|
||||||||||||||||
|
Payments on financing leases |
|
|
(24) |
|
|
|
(74) |
|
|
|
(44) |
|
|
|
(169) |
|
||||||||||||||||
|
Other |
|
|
2,486 |
|
|
|
8,132 |
|
|
|
(3,481) |
|
|
|
(2,569) |
|
||||||||||||||||
|
Net cash (disbursed for) provided by financing activities |
|
|
(91,751) |
|
|
|
(31,646) |
|
|
|
610,964 |
|
|
|
(107,577) |
|
||||||||||||||||
|
Net increase (decrease) in cash and cash equivalents |
|
|
3,705 |
|
|
|
(8,952) |
|
|
|
6,040 |
|
|
|
(15,661) |
|
||||||||||||||||
|
Cash and cash equivalents at beginning of period |
|
|
7,340 |
|
|
|
15,818 |
|
|
|
5,005 |
|
|
|
22,527 |
|
||||||||||||||||
|
Cash and cash equivalents at end of period |
|
$ |
11,045 |
|
|
$ |
6,866 |
|
|
$ |
11,045 |
|
|
$ |
6,866 |
|
||||||||||||||||
|
|
||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||
|
(000's omitted) |
||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||
|
|
|
For the 12-Week Period |
|
|
For the 12-Week Period |
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
$ Change |
|
|
% Change |
|
||||||||||||||||||||
|
Branded Retail |
|
$ |
826,730 |
|
|
$ |
787,506 |
|
|
$ |
39,224 |
|
|
|
5.0 |
% |
||||||||||||||||
|
Other |
|
|
416,105 |
|
|
|
437,477 |
|
|
|
(21,372) |
|
|
|
(4.9) |
% |
||||||||||||||||
|
Total |
|
$ |
1,242,835 |
|
|
$ |
1,224,983 |
|
|
$ |
17,852 |
|
|
|
1.5 |
% |
||||||||||||||||
|
|
||||||||||||||||||||||||||||||||
|
|
|
For the 28-Week Period |
|
|
For the 28-Week Period |
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
$ Change |
|
|
% Change |
|
||||||||||||||||||||
|
Branded Retail |
|
$ |
1,838,592 |
|
|
$ |
1,802,590 |
|
|
$ |
36,002 |
|
|
|
2.0 |
% |
||||||||||||||||
|
Other |
|
|
958,473 |
|
|
|
999,211 |
|
|
|
(40,738) |
|
|
|
(4.1) |
% |
||||||||||||||||
|
Total |
|
$ |
2,797,065 |
|
|
$ |
2,801,801 |
|
|
$ |
(4,736) |
|
|
|
(0.2) |
% |
||||||||||||||||
|
|
||||||||||||||||||||||||
|
|
||||||||||||||||||||||||
|
For the 12-week period ended |
|
Branded Retail |
|
|
Other |
|
|
Total |
|
|||||||||||||||
|
Pricing/mix^* |
|
|
(1.5) |
% |
|
|
(1.2) |
% |
|
|
(1.2) |
% |
||||||||||||
|
Volume* |
|
|
(1.3) |
% |
|
|
(3.7) |
% |
|
|
(2.4) |
% |
||||||||||||
|
Acquisition |
|
|
7.8 |
% |
|
|
0.0 |
% |
|
|
5.1 |
% |
||||||||||||
|
Total percentage point change in net sales |
|
|
5.0 |
% |
|
|
(4.9) |
% |
|
|
1.5 |
% |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
For the 28-week period ended |
|
Branded Retail |
|
|
Other |
|
|
Total |
|
|||||||||||||||
|
Pricing/mix^* |
|
|
(1.2) |
% |
|
|
(0.4) |
% |
|
|
(0.7) |
% |
||||||||||||
|
Volume* |
|
|
(1.6) |
% |
|
|
(3.7) |
% |
|
|
(2.5) |
% |
||||||||||||
|
Acquisition |
|
|
4.8 |
% |
|
|
0.0 |
% |
|
|
3.0 |
% |
||||||||||||
|
Total percentage point change in net sales |
|
|
2.0 |
% |
|
|
(4.1) |
% |
|
|
(0.2) |
% |
||||||||||||
|
|
|
|||||||||||
|
The table above presents certain sales by category that have been reclassified from amounts previously reported to conform to the current period presentation. |
|
|||||||||||
|
^ Includes sales reductions from variable consideration and payments to customers. |
|
|||||||||||
|
* Computations above are calculated as follows (the Total column is consolidated and is not adding the Branded Retail and Other columns): |
|
|||||||||||
|
Price/Mix $ = Current year period units × change in price per unit |
|
|||||||||||
|
Price/Mix % = Price/Mix $ ÷ Prior year period |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||
|
Volume $ = Prior year period price per unit × change in units |
|
|||||||||||
|
Volume % = Volume $ ÷ Prior year period |
|
|||||||||||
|
|
||||||||||||||||||||||||||||||||
|
Reconciliation of GAAP to Non-GAAP Measures |
||||||||||||||||||||||||||||||||
|
(000's omitted, except per share data) |
||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||
|
|
|
Reconciliation of Earnings per Share to Adjusted Earnings per Share |
|
|||||||||||||||||||||||||||||
|
|
|
For the 12-Week |
|
|
For the 12-Week |
|
|
For the 28-Week |
|
|
For the 28-Week |
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Net income per diluted common share |
|
$ |
0.28 |
|
|
$ |
0.32 |
|
|
$ |
0.53 |
|
|
$ |
0.66 |
|
||||||||||||||||
|
Business process improvement costs |
|
NM |
|
|
|
0.01 |
|
|
NM |
|
|
|
0.02 |
|
||||||||||||||||||
|
Plant closure costs and impairment of assets |
|
|
— |
|
|
NM |
|
|
|
0.03 |
|
|
|
0.02 |
|
|||||||||||||||||
|
Restructuring charges |
|
|
— |
|
|
|
0.02 |
|
|
NM |
|
|
|
0.03 |
|
|||||||||||||||||
|
Restructuring-related implementation costs |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.03 |
|
|
|
0.01 |
|
||||||||||||||||
|
Acquisition-related costs |
|
|
0.01 |
|
(a) |
|
— |
|
|
|
0.06 |
|
|
|
— |
|
||||||||||||||||
|
Legal settlements and related costs |
|
NM |
|
|
|
— |
|
|
NM |
|
|
|
— |
|
||||||||||||||||||
|
Adjusted net income per diluted common share |
|
$ |
0.30 |
|
|
$ |
0.36 |
|
|
$ |
0.65 |
|
|
$ |
0.73 |
|
||||||||||||||||
|
NM - not meaningful. |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Certain amounts may not add due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
(a) Non-deductible tax acquisition-related costs from the prior period that impacted this period by |
|
|||||||||||||||||||||||||||||||
|
|
|
Reconciliation of Gross Margin |
|
|||||||||||||
|
|
|
For the 12-Week |
|
|
For the 12-Week |
|
|
For the 28-Week |
|
|
For the 28-Week |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net sales |
|
$ |
1,242,835 |
|
|
$ |
1,224,983 |
|
|
$ |
2,797,065 |
|
|
$ |
2,801,801 |
|
|
Materials, supplies, labor and other production costs (exclusive |
|
|
636,060 |
|
|
|
613,362 |
|
|
|
1,414,406 |
|
|
|
1,410,548 |
|
|
Gross margin excluding depreciation and amortization |
|
|
606,775 |
|
|
|
611,621 |
|
|
|
1,382,659 |
|
|
|
1,391,253 |
|
|
Less depreciation and amortization for production activities |
|
|
21,072 |
|
|
|
20,314 |
|
|
|
48,555 |
|
|
|
46,667 |
|
|
Gross margin |
|
$ |
585,703 |
|
|
$ |
591,307 |
|
|
$ |
1,334,104 |
|
|
$ |
1,344,586 |
|
|
Depreciation and amortization for production activities |
|
$ |
21,072 |
|
|
$ |
20,314 |
|
|
$ |
48,555 |
|
|
$ |
46,667 |
|
|
Depreciation and amortization for selling, distribution, and |
|
|
18,754 |
|
|
|
16,513 |
|
|
|
40,539 |
|
|
|
38,395 |
|
|
Total depreciation and amortization |
|
$ |
39,826 |
|
|
$ |
36,827 |
|
|
$ |
89,094 |
|
|
$ |
85,062 |
|
|
|
|
Reconciliation of Selling, Distribution, and Administrative Expenses to |
|
|||||||||||||
|
|
|
For the 12-Week |
|
|
For the 12-Week |
|
|
For the 28-Week |
|
|
For the 28-Week |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Selling, distribution, and administrative expenses |
|
$ |
473,537 |
|
|
$ |
471,400 |
|
|
$ |
1,107,050 |
|
|
$ |
1,096,651 |
|
|
Business process improvement costs |
|
|
(471) |
|
|
|
(1,606) |
|
|
|
(1,362) |
|
|
|
(5,289) |
|
|
Restructuring-related implementation costs |
|
|
(2,896) |
|
|
|
(1,635) |
|
|
|
(7,184) |
|
|
|
(2,979) |
|
|
Acquisition-related costs |
|
|
(871) |
|
|
|
— |
|
|
|
(14,635) |
|
|
|
— |
|
|
Legal settlements and related costs |
|
|
(205) |
|
|
|
— |
|
|
|
(902) |
|
|
|
— |
|
|
Adjusted SD&A |
|
$ |
469,094 |
|
|
$ |
468,159 |
|
|
$ |
1,082,967 |
|
|
$ |
1,088,383 |
|
|
|
||||||||||||||||||||||||||||||||
|
Reconciliation of GAAP to Non-GAAP Measures |
||||||||||||||||||||||||||||||||
|
(000's omitted, except per share data) |
||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||
|
|
|
Reconciliation of Net Income to EBITDA and Adjusted EBITDA |
|
|||||||||||||||||||||||||||||
|
|
|
For the 12-Week |
|
|
For the 12-Week |
|
|
For the 28-Week |
|
|
For the 28-Week |
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Net income |
|
$ |
58,365 |
|
|
$ |
66,967 |
|
|
$ |
111,363 |
|
|
$ |
140,010 |
|
||||||||||||||||
|
Income tax expense |
|
|
20,099 |
|
|
|
23,455 |
|
|
|
38,303 |
|
|
|
46,507 |
|
||||||||||||||||
|
Interest expense, net |
|
|
15,036 |
|
|
|
4,908 |
|
|
|
29,084 |
|
|
|
10,519 |
|
||||||||||||||||
|
Depreciation and amortization |
|
|
39,826 |
|
|
|
36,827 |
|
|
|
89,094 |
|
|
|
85,062 |
|
||||||||||||||||
|
EBITDA |
|
|
133,326 |
|
|
|
132,157 |
|
|
|
267,844 |
|
|
|
282,098 |
|
||||||||||||||||
|
Other pension benefit |
|
|
(88) |
|
|
|
(118) |
|
|
|
(205) |
|
|
|
(276) |
|
||||||||||||||||
|
Business process improvement costs |
|
|
471 |
|
|
|
1,606 |
|
|
|
1,362 |
|
|
|
5,289 |
|
||||||||||||||||
|
Plant closure costs and impairment of assets |
|
|
— |
|
|
|
1,377 |
|
|
|
7,397 |
|
|
|
5,377 |
|
||||||||||||||||
|
Restructuring charges |
|
|
— |
|
|
|
6,805 |
|
|
|
573 |
|
|
|
7,403 |
|
||||||||||||||||
|
Restructuring-related implementation costs |
|
|
2,896 |
|
|
|
1,635 |
|
|
|
7,184 |
|
|
|
2,979 |
|
||||||||||||||||
|
Acquisition-related costs |
|
|
871 |
|
|
|
— |
|
|
|
14,635 |
|
|
|
— |
|
||||||||||||||||
|
Legal settlements and related costs |
|
|
205 |
|
|
|
— |
|
|
|
902 |
|
|
|
— |
|
||||||||||||||||
|
Adjusted EBITDA |
|
$ |
137,681 |
|
|
$ |
143,462 |
|
|
$ |
299,692 |
|
|
$ |
302,870 |
|
||||||||||||||||
|
Net sales |
|
$ |
1,242,835 |
|
|
$ |
1,224,983 |
|
|
$ |
2,797,065 |
|
|
$ |
2,801,801 |
|
||||||||||||||||
|
Adjusted EBITDA margin |
|
|
11.1 |
% |
|
|
11.7 |
% |
|
|
10.7 |
% |
|
|
10.8 |
% |
||||||||||||||||
|
|
|
Reconciliation of Income Tax Expense to Adjusted Income Tax Expense |
|
|||||||||||||
|
|
|
For the 12-Week |
|
|
For the 12-Week |
|
|
For the 28-Week |
|
|
For the 28-Week |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Income tax expense |
|
$ |
20,099 |
|
|
$ |
23,455 |
|
|
$ |
38,303 |
|
|
$ |
46,507 |
|
|
Tax impact of: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Business process improvement costs |
|
|
118 |
|
|
|
401 |
|
|
|
341 |
|
|
|
1,322 |
|
|
Plant closure costs and impairment of assets |
|
|
— |
|
|
|
344 |
|
|
|
1,850 |
|
|
|
1,344 |
|
|
Restructuring charges |
|
|
— |
|
|
|
1,701 |
|
|
|
144 |
|
|
|
1,851 |
|
|
Restructuring-related implementation costs |
|
|
724 |
|
|
|
409 |
|
|
|
1,796 |
|
|
|
745 |
|
|
Acquisition-related costs |
|
|
(1,510) |
|
(a) |
|
— |
|
|
|
1,929 |
|
|
|
— |
|
|
Legal settlements and related costs |
|
|
52 |
|
|
|
— |
|
|
|
226 |
|
|
|
— |
|
|
Adjusted income tax expense |
|
$ |
19,483 |
|
|
$ |
26,310 |
|
|
$ |
44,589 |
|
|
$ |
51,769 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
(a) Includes certain non-deductible tax acquisition-related costs from the prior period. |
|
|
|
|
|
|
|
|||||||||
|
|
||||||||||||||||||||||||||||||||
|
Reconciliation of GAAP to Non-GAAP Measures |
||||||||||||||||||||||||||||||||
|
(000's omitted, except per share data) |
||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||
|
|
|
Reconciliation of Net Income to Adjusted Net Income |
|
|||||||||||||||||||||||||||||
|
|
|
For the 12-Week |
|
|
For the 12-Week |
|
|
For the 28-Week |
|
|
For the 28-Week |
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Net income |
|
$ |
58,365 |
|
|
$ |
66,967 |
|
|
$ |
111,363 |
|
|
$ |
140,010 |
|
||||||||||||||||
|
Business process improvement costs |
|
|
353 |
|
|
|
1,205 |
|
|
|
1,021 |
|
|
|
3,967 |
|
||||||||||||||||
|
Plant closure costs and impairment of assets |
|
|
— |
|
|
|
1,033 |
|
|
|
5,547 |
|
|
|
4,033 |
|
||||||||||||||||
|
Restructuring charges |
|
|
— |
|
|
|
5,104 |
|
|
|
429 |
|
|
|
5,552 |
|
||||||||||||||||
|
Restructuring-related implementation costs |
|
|
2,172 |
|
|
|
1,226 |
|
|
|
5,388 |
|
|
|
2,234 |
|
||||||||||||||||
|
Acquisition-related costs |
|
|
2,381 |
|
(a) |
|
— |
|
|
|
12,706 |
|
|
|
— |
|
||||||||||||||||
|
Legal settlements and related costs |
|
|
153 |
|
|
|
— |
|
|
|
676 |
|
|
|
— |
|
||||||||||||||||
|
Adjusted net income |
|
$ |
63,424 |
|
|
$ |
75,535 |
|
|
$ |
137,130 |
|
|
$ |
155,796 |
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
(a) Includes certain non-deductible tax acquisition-related costs from the prior period. |
|
|
|
|
|
|
|
|||||||||||||||||||||||||
|
|
|
Reconciliation of Earnings per Share - |
|
|||||
|
|
|
Range Estimate |
|
|||||
|
Net income per diluted common share |
|
$ |
0.88 |
|
to |
$ |
0.98 |
|
|
Business process improvement costs |
|
NM |
|
|
NM |
|
||
|
Plant closure costs and impairment of assets |
|
|
0.03 |
|
|
|
0.03 |
|
|
Restructuring charges |
|
NM |
|
|
NM |
|
||
|
Restructuring-related implementation costs |
|
|
0.03 |
|
|
|
0.03 |
|
|
Acquisition-related costs |
|
|
0.06 |
|
|
|
0.06 |
|
|
Legal settlements and related costs |
|
NM |
|
|
NM |
|
||
|
Adjusted net income per diluted common share |
|
$ |
1.00 |
|
to |
$ |
1.10 |
|
|
NM - not meaningful. |
|
|
|
|
|
|
||
|
Certain amounts may not add due to rounding. |
|
|
|
|
|
|
||
View original content to download multimedia:https://www.prnewswire.com/news-releases/flowers-foods-inc-reports-second-quarter-2025-results-302530576.html
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