B&G Foods Reports Financial Results for First Quarter 2024
B&G Foods, Inc. reported financial results for Q1 2024, impacted by the Green Giant U.S. shelf‑stable divestiture. Net sales decreased 7.1%, with adjusted diluted EPS down 33.3% and net loss of $40.2 million. The company revised full-year guidance: net sales $1.955B-$1.985B, adjusted EBITDA $300M-$320M, and adjusted diluted EPS $0.75-$0.95.
Improvements in gross profit driven by moderation of input cost inflation, lower transportation, and warehousing costs.
Net sales declined by 7.1% primarily due to Green Giant U.S. shelf‑stable divestiture, lower net pricing, product mix impact, and unit volume decrease.
Net loss of $40.2 million primarily attributed to goodwill impairment charges, base business net sales reduction, and the divestiture impact.
Summary
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First Quarter of 2024 |
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(In millions, except per share data) |
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Change vs. |
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Amount |
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Q1 2023 |
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Net Sales |
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$ |
475.2 |
|
|
(7.1 |
)% |
Base Business Net Sales 1 |
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$ |
475.3 |
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(4.4 |
)% |
Diluted EPS |
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$ |
(0.51 |
) |
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NM |
|
Adj. Diluted EPS 1 |
|
$ |
0.18 |
|
|
(33.3 |
)% |
Net Loss |
|
$ |
(40.2 |
) |
|
NM |
|
Adj. Net Income 1 |
|
$ |
14.4 |
|
|
(24.6 |
)% |
Adj. EBITDA 1 |
|
$ |
75.0 |
|
|
(8.9 |
)% |
Guidance for Full Year Fiscal 2024
-
Net sales revised to a range of
$1.95 5 billion$1.98 5 billion -
Adjusted EBITDA revised to a range of
$300 million $320 million -
Adjusted diluted earnings per share revised to a range of
$0.75 $0.95
Commenting on the results, Casey Keller, President and Chief Executive Officer of B&G Foods, stated, “B&G Foods’ first quarter results demonstrated consistent margins and moderating inflation, with declines in net sales driven by foodservice trends and increased promotion spending. Volumes to retail customers were relatively flat. Going forward, we remain committed to driving low single digit growth and continuing to reduce leverage. Further, we are accelerating efforts to reshape and clarify the portfolio for sharper focus and fit.”
Financial Results for First Quarter of 2024
Net sales for the first quarter of 2024 decreased
Base business net sales for the first quarter of 2024 decreased
Gross profit was
The improvements in gross profit as a percentage of net sales and adjusted gross profit as a percentage of net sales were driven by the moderation of input cost inflation, lower transportation and warehousing costs, and lower depreciation expense.
Selling, general and administrative expenses increased
In connection with the Company’s transition from one reporting segment to four reporting segments during the first quarter of 2024, the Company reassigned assets and liabilities, including goodwill, between the reporting segments and completed a goodwill impairment test both prior to and subsequent to the change. The goodwill impairment test resulted in the Company recognizing pre‑tax, non-cash goodwill impairment charges of
Net interest expense decreased
The Company had a net loss of
For the first quarter of 2024, adjusted EBITDA was
Segment Results(2)
Historically, the Company operated in a single industry segment. However, beginning with the first quarter of 2024, the Company now operates in, and has begun reporting results by, four business segments. This change stemmed from the Company’s recent formation and the evolution of the Company’s four business units: Specialty, Meals, Frozen & Vegetables and Spices & Flavor Solutions, which are further described below. Prior period segment results in this earnings press release have been recast to reflect the change from one single operating segment to four operating segments.
Specialty — includes, among others, the Crisco, Clabber Girl, Bear Creek, Polaner, Underwood, B&G, Grandma’s, New York Style, B&M, TrueNorth, Don Pepino, Sclafani, Baker’s Joy, Regina, SugarTwin and Brer Rabbit brands.
Meals — includes, among others, the Ortega, Maple Grove Farms, Cream of Wheat, Victoria, Las Palmas, Mama Mary’s, Spring Tree, McCann’s, Carey’s and Vermont Maid brands.
Frozen & Vegetables — includes the Green Giant and Le Sueur brands.
Spices & Flavor Solutions — includes, among others, the Dash, Weber, Spice Islands, Tone’s, Ac’cent, Trappey’s, Durkee and Wright’s brands.
Specialty Segment Results
Specialty segment results were as follows (dollars in thousands):
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First Quarter Ended |
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March 30, |
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April 1, |
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2024 |
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2023 |
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$ Change |
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% Change |
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Specialty segment net sales |
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$ |
154,729 |
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$ |
162,623 |
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$ |
(7,894 |
) |
|
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(4.9 |
)% |
Specialty segment adjusted EBITDA |
|
$ |
37,192 |
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$ |
36,484 |
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$ |
708 |
|
|
|
1.9 |
% |
The decrease in Specialty segment net sales was primarily due to lower Crisco pricing driven by softening commodity costs coupled with decreased foodservice and industrial net sales. The increase in Specialty segment adjusted EBITDA was primarily due to rate improvements across key materials and freight costs.
Meals Segment Results
Meals segment results were as follows (dollars in thousands):
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First Quarter Ended |
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March 30, |
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April 1, |
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2024 |
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2023 |
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$ Change |
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% Change |
||||
Meals segment net sales |
|
$ |
120,031 |
|
$ |
121,949 |
|
$ |
(1,918 |
) |
|
|
(1.6 |
)% |
Meals segment adjusted EBITDA |
|
$ |
25,629 |
|
$ |
26,238 |
|
$ |
(609 |
) |
|
|
(2.3 |
)% |
The decrease in Meals segment net sales was primarily due to lower net sales in foodservice. The decrease in Meals segment adjusted EBITDA was primarily due to lower net sales, primarily in foodservice, and increases in material costs, partially offset by improvements in freight costs.
Frozen & Vegetables Segment Results
Frozen & Vegetables segment results were as follows (dollars in thousands):
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First Quarter Ended |
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March 30, |
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April 1, |
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2024 |
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2023 |
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$ Change |
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% Change |
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Frozen & Vegetables segment net sales |
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$ |
104,887 |
|
$ |
126,206 |
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$ |
(21,319 |
) |
|
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(16.9 |
)% |
Frozen & Vegetables segment adjusted EBITDA |
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$ |
7,830 |
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$ |
10,454 |
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$ |
(2,624 |
) |
|
|
(25.1 |
)% |
The decrease in Frozen & Vegetables segment net sales was primarily due to the Green Giant
Spices & Flavor Solutions Segment Results
Spices & Flavor Solutions segment results were as follows (dollars in thousands):
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First Quarter Ended |
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March 30, |
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April 1, |
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||||
|
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2024 |
|
2023 |
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$ Change |
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% Change |
||||
Spices & Flavor Solutions segment net sales |
|
$ |
95,576 |
|
$ |
101,036 |
|
$ |
(5,460 |
) |
|
|
(5.4 |
)% |
Spices & Flavor Solutions segment adjusted EBITDA |
|
$ |
28,669 |
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$ |
30,680 |
|
$ |
(2,011 |
) |
|
|
(6.6 |
)% |
The decrease in Spices & Flavor Solutions segment net sales was primarily due to lower net sales in foodservice. The decrease in Spices & Flavor Solutions segment adjusted EBITDA was primarily due to lower net sales, primarily in foodservice, and increases in material costs, partially offset by improvements in freight costs.
Full Year Fiscal 2024 Guidance
B&G Foods revised its net sales guidance for fiscal 2024 at a range of
B&G Foods provides earnings guidance only on a non-GAAP basis and does not provide a reconciliation of the Company’s forward-looking adjusted EBITDA and adjusted diluted earnings per share guidance to the most directly comparable GAAP financial measures because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that could be made for deferred taxes; acquisition/divestiture-related expenses, gains and losses (which may include third-party fees and expenses, integration, restructuring and consolidation expenses, amortization of acquired inventory fair value step-up and gains and losses on the sale of certain assets); gains and losses on extinguishment of debt; impairment of assets held for sale; impairment of intangible assets; non-recurring expenses, gains and losses; and other charges reflected in the Company’s reconciliation of historic non-GAAP financial measures, the amounts of which, based on past experience, could be material. For additional information regarding B&G Foods’ non-GAAP financial measures, see “About Non-GAAP Financial Measures and Items Affecting Comparability” below.
Possible Divestitures; Strategic Review of Frozen & Vegetables Business Unit
The Company announced today that it plans to continue and will accelerate the reshaping of the Company’s portfolio to sharpen focus, improve margins and cash flow, and maximize future value creation. As previously disclosed, the Company has been evaluating potential divestitures that represent between
The Company divested the Green Giant
Mr. Keller stated, “Green Giant remains a strong brand with broad awareness and distribution, and the frozen vegetables category is on trend with health and dietary trends. However, I believe the frozen vegetable business may not be the right fit with B&G Foods’ focus and capabilities, particularly since we have no plans to add more assets in the frozen portfolio given the opportunities in our core shelf-stable businesses and overall capital constraints.”
There can be no assurance that any divestitures of any portions of the Frozen & Vegetables business unit or any other portions of the Company’s business will be achieved, and the Company does not intend to comment further on the process unless and until the Company decides to proceed with a divestiture or other transaction and signs a definitive agreement or otherwise determines that further disclosure is appropriate or required by law.
Conference Call
B&G Foods will hold a conference call at 4:30 p.m. ET today, May 8, 2024 to discuss first quarter and full year 2024 financial results. The live audio webcast of the conference call can be accessed at www.bgfoods.com/investor-relations. A replay of the webcast will be available following the conference call through the same link.
About Non-GAAP Financial Measures and Items Affecting Comparability
“Adjusted net income” (net income (loss) adjusted for certain items that affect comparability), “adjusted diluted earnings per share” (diluted earnings (loss) per share adjusted for certain items that affect comparability), “base business net sales” (net sales without the impact of acquisitions until the acquisitions are included in both comparable periods and without the impact of discontinued or divested brands), “EBITDA” (net income (loss) before net interest expense, income taxes, and depreciation and amortization), “adjusted EBITDA” (EBITDA as adjusted for cash and non-cash acquisition/divestiture-related expenses, gains and losses (which may include third-party fees and expenses, integration, restructuring and consolidation expenses, amortization of acquired inventory fair value step-up and gains and losses on the sale of certain assets), gains and losses on extinguishment of debt, impairment of assets held for sale, impairment of intangible assets, and non-recurring expenses, gains and losses), “segment adjusted EBITDA” (adjusted EBITDA for operating segments), “adjusted gross profit” (gross profit adjusted for acquisition/divestiture-related expenses and non-recurring expenses included in cost of goods sold) and “adjusted gross profit percentage” (gross profit as a percentage of net sales adjusted for acquisition/divestiture-related expenses and non-recurring expenses included in cost of goods sold) are “non-GAAP financial measures.” A non-GAAP financial measure is a numerical measure of financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in
The Company uses non-GAAP financial measures to adjust for certain items that affect comparability. This information is provided in order to allow investors to make meaningful comparisons of the Company’s operating performance between periods and to view the Company’s business from the same perspective as the Company’s management. Because the Company cannot predict the timing and amount of these items that affect comparability, management does not consider these items when evaluating the Company’s performance or when making decisions regarding allocation of resources.
Additional information regarding EBITDA, adjusted EBITDA, segment adjusted EBITDA and reconciliations of EBITDA, adjusted EBITDA and segment adjusted EBITDA to net (loss) income and, in the case of EBITDA and adjusted EBITDA, to net cash provided by operating activities, is included below for the first quarter of 2024 and 2023, along with the components of EBITDA, adjusted EBITDA and segment adjusted EBITDA. Also included below are reconciliations of the non-GAAP terms adjusted net income, adjusted diluted earnings per share and base business net sales to the most directly comparable measure calculated and presented in accordance with GAAP in the Company’s consolidated balance sheets and related consolidated statements of operations, comprehensive (loss) income, changes in stockholders’ equity and cash flows.
End Notes
(1) |
Please see “About Non-GAAP Financial Measures and Items Affecting Comparability” above for the definition of the non-GAAP financial measures “base business net sales,” “adjusted diluted earnings per share,” “adjusted net income ,” “EBITDA,” “adjusted EBITDA,” “segment adjusted EBITDA,” “adjusted gross profit” and “adjusted gross profit percentage,” as well as information concerning certain items affecting comparability and reconciliations of the non-GAAP terms to the most comparable GAAP financial measures. |
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(2) |
Segment net sales and segment adjusted EBITDA are the primary measures used by the Company’s chief operating decision maker (CODM) to evaluate segment operating performance and to decide how to allocate resources to segments. The Company’s CODM is the Company’s chief executive officer. Segment adjusted EBITDA excludes unallocated corporate items, depreciation and amortization, acquisition/divestiture-related and non-recurring expenses, impairment of intangible assets, gains and losses on sales of assets, interest expense, and income tax expense or benefit. Unallocated corporate items consist of centrally managed corporate functions, including selling, marketing, procurement, centralized administrative functions, insurance, and other similar expenses not directly tied to segment operating performance. Depreciation and amortization expenses are neither maintained nor available by operating segment, as the Company’s manufacturing, warehouse, and distribution activities are centrally managed. These items that are centrally managed at the corporate level, and therefore excluded from the measure of segment adjusted EBITDA, are reviewed by the CODM. Expenses that are managed centrally but can be attributed to a segment, such as warehousing and transportation expenses, are generally allocated based on sales. |
NM – Not meaningful.
About B&G Foods, Inc.
Based in
Forward-Looking Statements
Statements in this press release that are not statements of historical or current fact constitute “forward-looking statements.” The forward-looking statements contained in this press release include, without limitation, statements related to B&G Foods’ expectations regarding net sales, adjusted EBITDA and adjusted diluted earnings per share, the Company’s overall expectations for fiscal 2024 and beyond, the Company’s plan to continue and accelerate the reshaping and restructuring of the Company’s portfolio to sharpen focus, improve margins and cash flow, and maximize future value creation, and possible divestitures. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of B&G Foods to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms “believes,” “belief,” “expects,” “projects,” “intends,” “anticipates,” “assumes,” “could,” “should,” “estimates,” “potential,” “seek,” “predict,” “may,” “will” or “plans” and similar references to future periods to be uncertain and forward-looking. Factors that may affect actual results include, without limitation: the Company’s substantial leverage; the effects of rising costs for and/or decreases in supply of the Company’s commodities, ingredients, packaging, other raw materials, distribution and labor; crude oil prices and their impact on distribution, packaging and energy costs; the Company’s ability to successfully implement sales price increases and cost saving measures to offset any cost increases; intense competition, changes in consumer preferences, demand for the Company’s products and local economic and market conditions; the Company’s continued ability to promote brand equity successfully, to anticipate and respond to new consumer trends, to develop new products and markets, to broaden brand portfolios in order to compete effectively with lower priced products and in markets that are consolidating at the retail and manufacturing levels and to improve productivity; the ability of the Company and its supply chain partners to continue to operate manufacturing facilities, distribution centers and other work locations without material disruption, and to procure ingredients, packaging and other raw materials when needed despite disruptions in the supply chain or labor shortages; the impact pandemics or disease outbreaks, such as the COVID-19 pandemic, may have on the Company’s business, including among other things, the Company’s supply chain, manufacturing operations or workforce and customer and consumer demand for the Company’s products; the Company’s ability to recruit and retain senior management and a highly skilled and diverse workforce at the Company’s corporate offices, manufacturing facilities and other locations despite a very tight labor market and changing employee expectations as to fair compensation, an inclusive and diverse workplace, flexible working and other matters; the risks associated with the expansion of the Company’s business; the Company’s possible inability to identify new acquisitions or to integrate recent or future acquisitions or the Company’s failure to realize anticipated revenue enhancements, cost savings or other synergies from recent or future acquisitions; the Company’s ability to successfully complete the integration of recent or future acquisitions into the Company’s enterprise resource planning (ERP) system; tax reform and legislation, including the effects of the Infrastructure Investment and Jobs Act,
B&G Foods, Inc. and Subsidiaries |
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Consolidated Balance Sheets |
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(In thousands, except share and per share data) |
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(Unaudited) |
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March 30, |
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December 30, |
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2024 |
|
2023 |
||
Assets |
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Current assets: |
|
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|
|
|
Cash and cash equivalents |
$ |
42,460 |
|
$ |
41,094 |
Trade accounts receivable, net |
|
136,011 |
|
|
143,015 |
Inventories |
|
560,589 |
|
|
568,980 |
Prepaid expenses and other current assets |
|
42,962 |
|
|
41,747 |
Income tax receivable |
|
3,299 |
|
|
7,988 |
Total current assets |
|
785,321 |
|
|
802,824 |
|
|
|
|
|
|
Property, plant and equipment, net |
|
296,004 |
|
|
302,288 |
Operating lease right-of-use assets |
|
66,361 |
|
|
70,046 |
Finance lease right-of-use assets |
|
1,568 |
|
|
1,832 |
Goodwill |
|
548,661 |
|
|
619,399 |
Other intangible assets, net |
|
1,622,335 |
|
|
1,627,836 |
Other assets |
|
24,307 |
|
|
23,484 |
Deferred income taxes |
|
15,967 |
|
|
15,581 |
Total assets |
$ |
3,360,524 |
|
$ |
3,463,290 |
|
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Liabilities and Stockholders’ Equity |
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|
Current liabilities: |
|
|
|
|
|
Trade accounts payable |
$ |
132,907 |
|
$ |
123,778 |
Accrued expenses |
|
55,379 |
|
|
83,217 |
Current portion of operating lease liabilities |
|
17,223 |
|
|
16,939 |
Current portion of finance lease liabilities |
|
1,076 |
|
|
1,070 |
Current portion of long-term debt |
|
22,000 |
|
|
22,000 |
Income tax payable |
|
630 |
|
|
475 |
Dividends payable |
|
15,020 |
|
|
14,939 |
Total current liabilities |
|
244,235 |
|
|
262,418 |
|
|
|
|
|
|
Long-term debt, net of current portion |
|
2,014,153 |
|
|
2,023,088 |
Deferred income taxes |
|
249,176 |
|
|
267,053 |
Long-term operating lease liabilities, net of current portion |
|
49,860 |
|
|
53,724 |
Long-term finance lease liabilities, net of current portion |
|
455 |
|
|
726 |
Other liabilities |
|
21,425 |
|
|
20,818 |
Total liabilities |
|
2,579,304 |
|
|
2,627,827 |
|
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|
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|
Stockholders’ equity: |
|
|
|
|
|
Preferred stock, |
|
— |
|
|
— |
Common stock, |
|
791 |
|
|
786 |
Additional paid-in capital |
|
32,894 |
|
|
46,990 |
Accumulated other comprehensive income |
|
2,684 |
|
|
2,597 |
Retained earnings |
|
744,851 |
|
|
785,090 |
Total stockholders’ equity |
|
781,220 |
|
|
835,463 |
Total liabilities and stockholders’ equity |
$ |
3,360,524 |
|
$ |
3,463,290 |
B&G Foods, Inc. and Subsidiaries |
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Consolidated Statements of Operations |
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(In thousands, except per share data) |
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(Unaudited) |
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|
First Quarter Ended |
||||||
|
March 30, |
|
April 1, |
||||
|
2024 |
|
2023 |
||||
Net sales |
$ |
475,223 |
|
|
$ |
511,814 |
|
Cost of goods sold |
|
366,342 |
|
|
|
397,578 |
|
Gross profit |
|
108,881 |
|
|
|
114,236 |
|
|
|
|
|
|
|
||
Operating expenses: |
|
|
|
|
|
||
Selling, general and administrative expenses |
|
48,612 |
|
|
|
46,729 |
|
Amortization expense |
|
5,112 |
|
|
|
5,241 |
|
Impairment of goodwill |
|
70,580 |
|
|
|
— |
|
Loss on sales of assets |
|
135 |
|
|
|
85 |
|
Operating (loss) income |
|
(15,558 |
) |
|
|
62,181 |
|
|
|
|
|
|
|
||
Other (income) and expenses: |
|
|
|
|
|
||
Interest expense, net |
|
37,825 |
|
|
|
39,435 |
|
Other income |
|
(1,042 |
) |
|
|
(921 |
) |
(Loss) income before income tax (benefit) expense |
|
(52,341 |
) |
|
|
23,667 |
|
Income tax (benefit) expense |
|
(12,102 |
) |
|
|
20,252 |
|
Net (loss) income |
$ |
(40,239 |
) |
|
$ |
3,415 |
|
|
|
|
|
|
|
||
Weighted average shares outstanding: |
|
|
|
|
|
||
Basic |
|
78,648 |
|
|
|
71,779 |
|
Diluted |
|
78,648 |
|
|
|
71,795 |
|
|
|
|
|
|
|
||
(Loss) earnings per share: |
|
|
|
|
|
||
Basic |
$ |
(0.51 |
) |
|
$ |
0.05 |
|
Diluted |
$ |
(0.51 |
) |
|
$ |
0.05 |
|
|
|
|
|
|
|
||
Cash dividends declared per share |
$ |
0.19 |
|
|
$ |
0.19 |
|
B&G Foods, Inc. and Subsidiaries |
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Net Sales and Adjusted EBITDA by Segment and Reconciliation of Segment Adjusted EBITDA |
|||||||
to Net (Loss) Income |
|||||||
(In thousands) |
|||||||
(Unaudited) |
|||||||
|
|
First Quarter Ended |
|||||
|
|
March 30, |
|
April 1, |
|||
|
|
2024 |
|
2023 |
|||
Net sales: |
|
|
|
|
|
|
|
Specialty |
|
$ |
154,729 |
|
|
$ |
162,623 |
Meals |
|
|
120,031 |
|
|
|
121,949 |
Frozen & Vegetables |
|
|
104,887 |
|
|
|
126,206 |
Spices & Flavor Solutions |
|
|
95,576 |
|
|
|
101,036 |
Total net sales |
|
|
475,223 |
|
|
|
511,814 |
|
|
|
|
|
|
|
|
Segment adjusted EBITDA: |
|
|
|
|
|
|
|
Specialty |
|
|
37,192 |
|
|
|
36,484 |
Meals |
|
|
25,629 |
|
|
|
26,238 |
Frozen & Vegetables |
|
|
7,830 |
|
|
|
10,454 |
Spices & Flavor Solutions |
|
|
28,669 |
|
|
|
30,680 |
Total segment adjusted EBITDA |
|
|
99,320 |
|
|
|
103,856 |
|
|
|
|
|
|
|
|
Unallocated corporate expenses |
|
|
24,275 |
|
|
|
21,491 |
Adjusted EBITDA |
|
$ |
75,045 |
|
|
$ |
82,365 |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
$ |
17,209 |
|
|
$ |
18,018 |
Acquisition/divestiture-related and non-recurring expenses |
|
|
1,637 |
|
|
|
1,160 |
Impairment of goodwill |
|
|
70,580 |
|
|
|
- |
Loss on sales of assets, net of facility closure costs |
|
|
135 |
|
|
|
85 |
Interest expense, net |
|
|
37,825 |
|
|
|
39,435 |
Income tax expense |
|
|
(12,102 |
) |
|
|
20,252 |
Net (loss) income |
|
$ |
(40,239 |
) |
|
$ |
3,415 |
B&G Foods, Inc. and Subsidiaries |
|||||||
Items Affecting Comparability |
|||||||
Reconciliation of Net (Loss) Income to EBITDA(1) and Adjusted EBITDA(1) |
|||||||
(In thousands) |
|||||||
(Unaudited) |
|||||||
|
|
|
|
|
|
|
|
|
|
First Quarter Ended |
|||||
|
|
March 30, |
|
April 1, |
|||
|
|
2024 |
|
2023 |
|||
Net (loss) income |
|
$ |
(40,239 |
) |
|
$ |
3,415 |
Income tax (benefit) expense |
|
|
(12,102 |
) |
|
|
20,252 |
Interest expense, net |
|
|
37,825 |
|
|
|
39,435 |
Depreciation and amortization |
|
|
17,209 |
|
|
|
18,018 |
EBITDA(1) |
|
|
2,693 |
|
|
|
81,120 |
Acquisition/divestiture-related and non-recurring expenses(2) |
|
|
1,637 |
|
|
|
1,160 |
Impairment of goodwill(3) |
|
|
70,580 |
|
|
|
— |
Loss on sales of assets, net of facility closure costs |
|
|
135 |
|
|
|
85 |
Adjusted EBITDA(1) |
|
$ |
75,045 |
|
|
$ |
82,365 |
B&G Foods, Inc. and Subsidiaries |
||||||||
Items Affecting Comparability |
||||||||
Reconciliation of Net Cash Provided by Operating Activities to EBITDA(1) and Adjusted EBITDA(1) |
||||||||
(In thousands) |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
First Quarter Ended |
||||||
|
|
March 30, |
|
April 1, |
||||
|
|
2024 |
|
2023 |
||||
Net cash provided by operating activities |
|
$ |
35,122 |
|
|
$ |
69,527 |
|
Income tax (benefit) expense |
|
|
(12,102 |
) |
|
|
20,252 |
|
Interest expense, net |
|
|
37,825 |
|
|
|
39,435 |
|
Impairment of goodwill(3) |
|
|
(70,580 |
) |
|
|
— |
|
Loss on sales of assets |
|
|
(135 |
) |
|
|
(93 |
) |
Deferred income taxes |
|
|
17,874 |
|
|
|
(15,019 |
) |
Amortization of deferred debt financing costs and bond discount/premium |
|
|
(1,298 |
) |
|
|
(3,648 |
) |
Share-based compensation expense |
|
|
(1,783 |
) |
|
|
(927 |
) |
Changes in assets and liabilities, net of effects of business combinations |
|
|
(2,230 |
) |
|
|
(28,407 |
) |
EBITDA(1) |
|
|
2,693 |
|
|
|
81,120 |
|
Acquisition/divestiture-related and non-recurring expenses(2) |
|
|
1,637 |
|
|
|
1,160 |
|
Impairment of goodwill(3) |
|
|
70,580 |
|
|
|
— |
|
Loss on sales of assets, net of facility closure costs |
|
|
135 |
|
|
|
85 |
|
Adjusted EBITDA(1) |
|
$ |
75,045 |
$ |
82,365 |
|||
B&G Foods, Inc. and Subsidiaries |
|||||||
Items Affecting Comparability |
|||||||
Reconciliation of Net (Loss) Income to Adjusted Net Income(3) and Adjusted Diluted Earnings per Share(3) |
|||||||
(In thousands, except per share data) |
|||||||
(Unaudited) |
|||||||
|
|
|
|
|
|
||
|
First Quarter Ended |
||||||
|
March 30, |
|
April 1, |
||||
|
2024 |
|
2023 |
||||
Net (loss) income |
$ |
(40,239 |
) |
|
$ |
3,415 |
|
Acquisition/divestiture-related and non-recurring expenses(2) |
|
1,637 |
|
|
|
1,160 |
|
Impairment of goodwill(3) |
|
70,580 |
|
|
|
— |
|
Loss on sales of assets, net of facility closure costs |
|
135 |
|
|
|
85 |
|
Tax adjustment related to Back to Nature divestiture(5) |
|
— |
|
|
|
14,736 |
|
Tax effects of non-GAAP adjustments(6) |
|
(17,724 |
) |
|
|
(305 |
) |
Adjusted net income(4) |
$ |
14,389 |
|
|
$ |
19,091 |
|
Adjusted diluted earnings per share(4) |
$ |
0.18 |
|
|
$ |
0.27 |
|
(1) |
EBITDA and adjusted EBITDA are non-GAAP financial measures used by management to measure operating performance. A non-GAAP financial measure is defined as a numerical measure of the Company’s financial performance that excludes or includes amounts so as to be different from the most directly comparable measure calculated and presented in accordance with GAAP in the Company’s consolidated balance sheets and related consolidated statements of operations, comprehensive (loss) income, changes in stockholders’ equity and cash flows. The Company defines EBITDA as net income (loss) before net interest expense, income taxes, and depreciation and amortization. The Company defines adjusted EBITDA as EBITDA adjusted for cash and non-cash acquisition/divestiture-related expenses, gains and losses (which may include third-party fees and expenses, integration, restructuring and consolidation expenses, amortization of acquired inventory fair value step-up, and gains and losses on the sale of certain assets); gains and losses on extinguishment of debt; impairment of assets held for sale; impairment of intangible assets; and non-recurring expenses, gains and losses. |
|
|
Management believes that it is useful to eliminate these items because it allows management to focus on what it deems to be a more reliable indicator of ongoing operating performance and the Company’s ability to generate cash flow from operations. The Company uses EBITDA and adjusted EBITDA in the Company’s business operations to, among other things, evaluate the Company’s operating performance, develop budgets and measure the Company’s performance against those budgets, determine employee bonuses and evaluate the Company’s cash flows in terms of cash needs. The Company also presents EBITDA and adjusted EBITDA because the Company believes they are useful indicators of the Company’s historical debt capacity and ability to service debt and because covenants in the Company’s credit agreement and the Company’s senior notes indentures contain ratios based on these measures. As a result, reports used by internal management during monthly operating reviews feature the EBITDA and adjusted EBITDA metrics. However, management uses these metrics in conjunction with traditional GAAP operating performance and liquidity measures as part of its overall assessment of company performance and liquidity, and therefore does not place undue reliance on these measures as its only measures of operating performance and liquidity. |
|
|
EBITDA and adjusted EBITDA are not recognized terms under GAAP and do not purport to be alternatives to operating income (loss), net (loss) income or any other GAAP measure as an indicator of operating performance. EBITDA and adjusted EBITDA are not complete net cash flow measures because EBITDA and adjusted EBITDA are measures of liquidity that do not include reductions for cash payments for an entity’s obligation to service its debt, fund its working capital, capital expenditures and acquisitions and pay its income taxes and dividends. Rather, EBITDA and adjusted EBITDA are potential indicators of an entity’s ability to fund these cash requirements. EBITDA and adjusted EBITDA are not complete measures of an entity’s profitability because they do not include certain costs and expenses and gains and losses described above. Because not all companies use identical calculations, this presentation of EBITDA and adjusted EBITDA may not be comparable to other similarly titled measures of other companies. However, EBITDA and adjusted EBITDA can still be useful in evaluating the Company’s performance against the Company’s peer companies because management believes these measures provide users with valuable insight into key components of GAAP amounts. |
|
(2) |
Acquisition/divestiture-related and non-recurring expenses for the first quarter of 2024 of |
|
(3) |
In connection with the Company’s transition from one reporting segment to four reporting segments during the first quarter of 2024, the Company reassigned assets and liabilities, including goodwill, between the reporting segments and completed a goodwill impairment test both prior to and subsequent to the change. The goodwill impairment test resulted in the Company recognizing pre‑tax, non-cash goodwill impairment charges of |
|
(4) |
Adjusted net income and adjusted diluted earnings per share are non-GAAP financial measures used by management to measure operating performance. The Company defines adjusted net income and adjusted diluted earnings per share as net income (loss) and diluted earnings (loss) per share adjusted for certain items that affect comparability. These non-GAAP financial measures reflect adjustments to net income (loss) and diluted earnings (loss) per share to eliminate the items identified in the reconciliation above. This information is provided in order to allow investors to make meaningful comparisons of the Company’s operating performance between periods and to view the Company’s business from the same perspective as the Company’s management. Because the Company cannot predict the timing and amount of these items, management does not consider these items when evaluating the Company’s performance or when making decisions regarding allocation of resources. |
|
(5) |
As a result of the Back to Nature divestiture, the Company incurred a capital loss for tax purposes, for which the Company recorded a deferred tax asset during the first quarter of 2023. A valuation allowance has been recorded against this deferred tax asset, which negatively impacted the Company’s first quarter of 2023 income taxes by |
|
(6) |
Represents the tax effects of the non-GAAP adjustments listed above, assuming a tax rate of |
B&G Foods, Inc. and Subsidiaries |
||||||
Items Affecting Comparability |
||||||
Reconciliation of Net Sales to Base Business Net Sales(1) |
||||||
(In thousands) |
||||||
(Unaudited) |
||||||
|
First Quarter Ended |
|||||
|
March 30, |
|
April 1, |
|||
|
2024 |
|
2023 |
|||
Net sales |
$ |
475,223 |
|
$ |
511,814 |
|
Net sales from discontinued or divested brands(2) |
|
65 |
|
|
(14,482 |
) |
Base business net sales(1) |
$ |
475,288 |
|
$ |
497,332 |
|
(1) |
Base business net sales is a non-GAAP financial measure used by management to measure operating performance. The Company defines base business net sales as the Company’s net sales excluding (1) the net sales of acquisitions until the net sales from such acquisitions are included in both comparable periods and (2) net sales of discontinued or divested brands. The portion of current period net sales attributable to recent acquisitions for which there is no corresponding period in the comparable period of the prior year is excluded. For each acquisition, the excluded period starts at the beginning of the most recent fiscal period being compared and ends on the first anniversary of the acquisition date. For discontinued or divested brands, the entire amount of net sales is excluded from each fiscal period being compared. The Company has included this financial measure because management believes it provides useful and comparable trend information regarding the results of the Company’s business without the effect of the timing of acquisitions and the effect of discontinued or divested brands. |
|
(2) |
For the first quarter of 2023, reflects net sales of the Green Giant |
B&G Foods, Inc. and Subsidiaries |
||||||||
Items Affecting Comparability |
||||||||
Reconciliation of Gross Profit to Adjusted Gross Profit(1) and Gross Profit Percentage to Adjusted Gross Profit Percentage(1) |
||||||||
(In thousands, except percentages) |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
First Quarter Ended |
||||||
|
|
March 30, |
|
April 1, |
||||
|
|
2024 |
|
2023 |
||||
Gross profit |
|
$ |
108,881 |
|
|
$ |
114,236 |
|
Acquisition/divestiture-related expenses and non-recurring expenses included in cost of goods sold(2) |
|
|
1,005 |
|
|
|
649 |
|
Adjusted gross profit(1) |
|
$ |
109,886 |
|
|
$ |
114,885 |
|
|
|
|
|
|
|
|
||
Gross profit percentage |
|
|
22.9 |
% |
|
|
22.3 |
% |
Acquisition/divestiture-related expenses and non-recurring expenses included in cost of goods sold as a percentage of net sales |
|
|
0.2 |
% |
|
|
0.1 |
% |
Adjusted gross profit percentage(1) |
|
|
23.1 |
% |
|
|
22.4 |
% |
(1) |
Adjusted gross profit and adjusted gross profit percentage are non-GAAP financial measures used by management to measure operating performance. The Company defines adjusted gross profit as gross profit adjusted for acquisition/divestiture-related expenses and non-recurring expenses included in cost of goods sold and adjusted gross profit percentage as gross profit percentage (i.e., gross profit as a percentage of net sales) adjusted for acquisition/divestiture-related expenses and non-recurring expenses included in cost of goods sold. These non-GAAP financial measures reflect adjustments to gross profit and gross profit percentage to eliminate the items identified in the reconciliation above. This information is provided in order to allow investors to make meaningful comparisons of the Company’s operating performance between periods and to view the Company’s business from the same perspective as the Company’s management. Because the Company cannot predict the timing and amount of these items, management does not consider these items when evaluating the Company’s performance or when making decisions regarding allocation of resources. |
|
(2) |
Acquisition/divestiture related expenses and non-recurring expenses included in cost of goods sold for the first quarter of 2024 of |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240508719358/en/
Investor Relations:
ICR, Inc.
Dara Dierks
866.211.8151
Media Relations:
ICR, Inc.
Matt Lindberg
203.682.8214
Source: B&G Foods, Inc.
FAQ
What were B&G Foods' net sales for Q1 2024?
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What is B&G Foods' revised guidance for full-year fiscal 2024?
