B&G Foods Reports Financial Results for Second Quarter 2021
B&G Foods reported Q2 2021 results with net sales decreasing 9.4% to $464.4 million year-over-year, impacted by elevated demand from the prior year. Base business sales fell 20.8%, yet were 25.1% above pre-pandemic levels from Q2 2019. Diluted EPS decreased 45.7% to $0.38. Adjusted EBITDA dropped 18.3% to $83.8 million, affected by input cost inflation. The company reaffirmed its full-year net sales guidance of $2.05 billion to $2.10 billion. CEO Casey Keller mentioned inflation and ongoing brand integration as challenges.
- Crisco acquisition contributed $58.4 million to net sales in Q2 2021.
- Net sales increased 25.1% compared to pre-pandemic levels in Q2 2019.
- Diluted EPS decreased 45.7% compared to Q2 2020.
- Base business net sales decreased 20.8% year-over-year.
B&G Foods, Inc. (NYSE: BGS) today announced financial results for the second quarter and first two quarters of 2021.
Executive Summary (vs. Second Quarter of 2020 and vs. Second Quarter 2019 for two-year annual compound growth rates, where applicable):
-
Net sales decreased
9.4% to$464.4 million and base business net sales decreased20.8% , driven by comparisons against the extraordinary demand and pantry loading at the height of the COVID-19 pandemic during the second quarter of 2020, partially offset by the Crisco acquisition. -
Net sales and base business net sales for the second quarter of 2021 were
25.1% and7.1% higher than pre-pandemic net sales and base business net sales for the second quarter of 2019. On a two-year compound annual growth basis, relative to pre-pandemic levels, second quarter net sales increased11.8% and base business net sales increased3.5% . -
Diluted earnings per share decreased
45.7% to$0.38 . On a two-year compound annual growth basis, second quarter diluted earnings per share increased16.5% . -
Adjusted diluted earnings per share1 decreased
42.3% to$0.41 . On a two-year compound annual growth basis, second quarter adjusted diluted earnings per share increased5.0% . -
Net income decreased
45.3% to$24.6 million . On a two-year compound annual growth basis, second quarter net income increased16.0% . -
Adjusted net income1 decreased
41.2% to$27.1 million . On a two-year compound annual growth basis, second quarter adjusted net income increased5.0% . -
Adjusted EBITDA1 decreased
18.3% to$83.8 million . On a two-year compound annual growth basis, second quarter adjusted EBITDA increased8.7% . -
Adjusted EBITDA before COVID-19 expenses1 decreased
20.5% to$85.0 million . On a two-year compound annual growth basis, second quarter adjusted EBITDA before COVID-19 expenses increased9.4% . -
Net sales guidance reaffirmed at a range of
$2.05 billion to$2.10 billion .
Commenting on the results, Casey Keller, President and Chief Executive Officer of B&G Foods, stated, “We are pleased with the Company’s performance in the second quarter, and our prospects for the remainder of the year. The second quarter was expected to be the most challenging to lap from a comparative perspective given that the second quarter of 2020 occurred at the height of pantry loading and stocking during the COVID-19 pandemic. However, as expected, our net sales performance has remained elevated relative to 2019. When we look at the consumer trends that accelerated during the early stages of the pandemic—including an increase in cooking, baking and eating at home—trends which we expect may be longer term, our brands are well positioned to continue to capitalize on these opportunities.”
________________________
1 |
|
Please see “About Non-GAAP Financial Measures and Items Affecting Comparability” below for the definition of the non-GAAP financial measures “adjusted diluted earnings per share,” “adjusted net income,” “EBITDA,” “adjusted EBITDA,” “adjusted EBITDA before COVID-19 expenses” and “base business net sales,” as well as information concerning certain items affecting comparability and reconciliations of the non-GAAP terms to the most comparable GAAP financial measures. |
Mr. Keller continued, “Another significant impact coming out of the pandemic is inflation at unprecedented levels across the economy, including the food industry. We are seeing inflation on key input costs across our portfolio. We identified the risks of inflation early and have initiated price increases and cost savings initiatives to offset these costs. While the impact of pricing and cost savings may lag behind the rising input costs, we expect our margins to remain fairly stable in the long term.”
“Lastly, I’m pleased to report that as of earlier this week, the integration of the Crisco brand is substantially complete and we have assumed full responsibility for the operation of the business. Crisco is a tremendous addition to the B&G Foods portfolio.”
Financial Results for the Second Quarter of 2021
Net sales for the second quarter of 2021 decreased
Base business net sales for the second quarter of 2021 decreased
Net sales of Maple Grove Farms increased
Net sales for the second quarter of 2021 for spices & seasonings, Ortega, Cream of Wheat, Maple Grove Farms and Clabber Girl were each higher than the net sales for such brands during pre-pandemic second quarter of 2019. Spices & seasonings2 net sales were higher than second quarter of 2019 net sales by
Gross profit was
________________________
2 |
|
Includes the spices & seasoning brands acquired in the fourth quarter of 2016, as well as the Company’s legacy spices & seasonings brands, such as Dash and Ac’cent. |
3 |
|
Compares net sales of Clabber Girl from May 15, 2021 through July 3, 2021 versus May 15, 2019 through June 29, 2019. Clabber Girl was acquired on May 15, 2019. |
During the second quarter of 2021, the Company’s gross profit was negatively impacted by higher than expected input cost inflation, including materially increased costs for raw materials and transportation. The Company expects input cost inflation to be materially higher in the second half of 2021 than it was in the second half of 2020. The Company is attempting to mitigate the impact of inflation on the Company’s gross profit by locking in prices through short-term supply contracts and advance commodities purchase agreements and by implementing cost saving measures. The Company has also announced list price increases and has reduced trade promotions to its customers for certain of its products. However, increases in the prices the Company charges its customers generally lag behind rising input costs. As such, the Company does not expect to fully offset the incremental costs that the Company is facing in fiscal 2021 and expects continued cost inflation in fiscal 2022.
Selling, general and administrative expenses increased
Net interest expense increased
The Company’s net income was
For the second quarter of 2021, adjusted EBITDA was
For the second quarter of 2021, adjusted EBITDA before COVID-19 expenses was
Financial Results for the First Two Quarters of 2021
Net sales for the first two quarters of 2021 increased
Base business net sales1 for the first two quarters of 2021 decreased
Net sales of the Company’s spices & seasonings2 increased
Net sales for the first two quarters of 2021 for spices & seasonings, Ortega, Maple Grove Farms, Cream of Wheat and Clabber Girl were each higher than the net sales for such brands during the pre-pandemic first two quarters of 2019. Spices & seasonings2 net sales were higher than first two quarters of 2019 net sales by
Gross profit was
During the first two quarters of 2021, the Company’s gross profit was negatively impacted by higher than expected input cost inflation, including materially increased costs for raw materials and transportation. The Company expects input cost inflation to be materially higher in the second half of 2021 than it was in the second half of 2020. The Company is attempting to mitigate the impact of inflation on its gross profit by locking in prices through short-term supply contracts and advance commodities purchase agreements and by implementing cost saving measures. The Company has also announced list price increases and has reduced trade promotions to its customers for certain of its products. However, increases in the prices the Company charges its customers generally lag behind rising input costs. As such, the Company does not expect to fully offset the incremental costs that it is facing in fiscal 2021 and expects continued cost inflation in fiscal 2022.
Selling, general and administrative expenses increased
Net interest expense increased
The Company’s net income was
For the first two quarters of 2021, adjusted EBITDA was
For the first two quarters of 2021, adjusted EBITDA before COVID-19 expenses was
Full Year Fiscal 2021 Guidance
B&G Foods reaffirmed its net sales guidance for full year fiscal 2021. Net sales, which will be positively impacted by a full twelve months of ownership of the Crisco brand, are expected to be approximately
B&G Foods continues to see strong consumer demand for its products relative to pre-pandemic 2019. The Company has also seen and expects to continue to see significant cost inflation for various inputs, including ingredients, packaging and transportation. The Company has initiated various revenue enhancing activities (including list price increases and trade spend initiatives) and cost savings initiatives to offset these costs but there can be no assurance at this point of the ultimate effectiveness of these activities and initiatives. Because the Company’s management is not able to fully estimate the impact COVID-19, cost inflation and the Company’s cost inflation mitigation efforts will have on the Company’s results for the remainder of fiscal 2021, the Company is unable at this time to provide more detailed guidance for full year fiscal 2021. The ultimate impact of the COVID-19 pandemic on the Company’s business will depend on many factors, including, among others: how long social distancing and stay-at-home and work-from home policies and recommendations remain in effect; whether, and the extent to which, additional waves or variants of COVID-19 will affect the United States and the rest of North America; the Company’s ability to continue to operate its manufacturing facilities, maintain its supply chain without material disruption, procure ingredients, packaging and other raw materials when needed; the extent to which macroeconomic conditions resulting from the pandemic and the pace of the subsequent recovery may impact consumer eating and shopping habits; and the extent to which consumers continue to work remotely even after the pandemic subsides and how that may impact consumer habits.
Conference Call
B&G Foods will hold a conference call at 4:30 p.m. ET today, August 5, 2021 to discuss second quarter 2021 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 adjusted for certain items that affect comparability), “adjusted diluted earnings per share,” (diluted earnings 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 before net interest expense, income taxes, depreciation and amortization and loss on extinguishment of debt), “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 sale of assets) and non-recurring expenses, gains and losses) and “adjusted EBITDA before COVID-19 expenses” (adjusted EBITDA as adjusted for COVID-19 expenses) 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 United States (GAAP) in B&G Foods’ consolidated balance sheets and related consolidated statements of operations, comprehensive income, changes in stockholders’ equity and cash flows. Non-GAAP financial measures should not be considered in isolation or as a substitute for the most directly comparable GAAP measures. The Company’s non-GAAP financial measures may be different from non-GAAP financial measures used by other companies.
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 and adjusted EBITDA before COVID-19 expenses, and a reconciliation of EBITDA, adjusted EBITDA and adjusted EBITDA before COVID-19 expenses to net income and to net cash provided by operating activities, is included below for the second quarter and first two quarters of 2021 and 2020, along with the components of EBITDA, adjusted EBITDA and adjusted EBITDA before COVID-19 expenses. 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 income, changes in stockholders’ equity and cash flows.
About B&G Foods, Inc.
Based in Parsippany, New Jersey, B&G Foods and its subsidiaries manufacture, sell and distribute high-quality, branded shelf-stable and frozen foods across the United States, Canada and Puerto Rico. With B&G Foods’ diverse portfolio of more than 50 brands you know and love, including Back to Nature, B&G, B&M, Bear Creek, Cream of Wheat, Crisco, Dash, Green Giant, Las Palmas, Le Sueur, Mama Mary’s, Maple Grove Farms, New York Style, Ortega, Polaner, Spice Islands and Victoria, there’s a little something for everyone. For more information about B&G Foods and its brands, please visit www.bgfoods.com.
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, consumer trends, input cost inflation, list price increases, trade spend initiatives, margins, customer service levels for Crisco, and the Company’s overall expectations for the remainder of fiscal 2021 and beyond. 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 impact of the COVID-19 pandemic on the Company’s business, including, without limitation, 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; whether and when the Company will be able to realize the expected financial results and accretive effect of the Crisco acquisition, and how customers, competitors, suppliers and employees will react to the acquisition; the Company’s substantial leverage; the effects of rising costs for the Company’s raw materials, packaging and ingredients; 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 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 U.S. Tax Cuts and Jobs Act and the U.S. CARES Act; the Company’s ability to access the credit markets and the Company’s borrowing costs and credit ratings, which may be influenced by credit markets generally and the credit ratings of the Company’s competitors; unanticipated expenses, including, without limitation, litigation or legal settlement expenses; the effects of currency movements of the Canadian dollar and the Mexican peso as compared to the U.S. dollar; the effects of international trade disputes, tariffs, quotas, and other import or export restrictions on the Company’s international procurement, sales and operations; future impairments of the Company’s goodwill and intangible assets; the Company’s ability to protect information systems against, or effectively respond to, a cybersecurity incident or other disruption; the Company’s sustainability initiatives and changes to environmental laws and regulations; and other factors that affect the food industry generally. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in B&G Foods’ filings with the Securities and Exchange Commission, including under Item 1A, “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and in its subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. B&G Foods undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
B&G Foods, Inc. and Subsidiaries
|
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|
July 3, |
|
January 2, |
||||
|
2021 |
|
2021 |
||||
Assets |
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
||
Cash and cash equivalents |
$ |
40,322 |
|
|
$ |
52,182 |
|
Trade accounts receivable, net |
|
121,849 |
|
|
|
132,935 |
|
Inventories |
|
533,631 |
|
|
|
492,804 |
|
Prepaid expenses and other current assets |
|
44,370 |
|
|
|
43,619 |
|
Income tax receivable |
|
10,019 |
|
|
|
15,761 |
|
Total current assets |
|
750,191 |
|
|
|
737,301 |
|
|
|
|
|
|
|
||
Property, plant and equipment, net |
|
355,833 |
|
|
|
371,854 |
|
Operating lease right-of-use assets |
|
38,704 |
|
|
|
32,216 |
|
Goodwill |
|
645,070 |
|
|
|
644,747 |
|
Other intangible assets, net |
|
1,961,498 |
|
|
|
1,971,326 |
|
Other assets |
|
5,598 |
|
|
|
5,948 |
|
Deferred income taxes |
|
4,521 |
|
|
|
4,178 |
|
Total assets |
$ |
3,761,415 |
|
|
$ |
3,767,570 |
|
|
|
|
|
|
|
||
Liabilities and Stockholders’ Equity |
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
||
Trade accounts payable |
$ |
119,578 |
|
|
$ |
126,537 |
|
Accrued expenses |
|
58,120 |
|
|
|
77,460 |
|
Current portion of operating lease liabilities |
|
9,801 |
|
|
|
11,034 |
|
Income tax payable |
|
123 |
|
|
|
101 |
|
Dividends payable |
|
30,792 |
|
|
|
30,520 |
|
Total current liabilities |
|
218,414 |
|
|
|
245,652 |
|
|
|
|
|
|
|
||
Long-term debt |
|
2,325,908 |
|
|
|
2,334,086 |
|
Deferred income taxes |
|
305,013 |
|
|
|
293,121 |
|
Long-term operating lease liabilities, net of current portion |
|
31,802 |
|
|
|
23,959 |
|
Other liabilities |
|
38,673 |
|
|
|
38,875 |
|
Total liabilities |
|
2,919,810 |
|
|
|
2,935,693 |
|
|
|
|
|
|
|
||
Stockholders’ equity: |
|
|
|
|
|
||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
648 |
|
|
|
643 |
|
Additional paid-in capital |
|
— |
|
|
|
— |
|
Accumulated other comprehensive loss |
|
(31,556 |
) |
|
|
(35,594 |
) |
Retained earnings |
|
872,513 |
|
|
|
866,828 |
|
Total stockholders’ equity |
|
841,605 |
|
|
|
831,877 |
|
Total liabilities and stockholders’ equity |
$ |
3,761,415 |
|
|
$ |
3,767,570 |
|
B&G Foods, Inc. and Subsidiaries
|
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||||
|
Second Quarter Ended |
|
First Two Quarters Ended |
||||||||||||
|
July 3, |
|
June 27, |
|
July 3, |
|
June 27, |
||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Net sales |
$ |
464,375 |
|
|
$ |
512,539 |
|
|
$ |
969,509 |
|
|
$ |
961,909 |
|
Cost of goods sold |
|
352,785 |
|
|
|
378,438 |
|
|
|
740,125 |
|
|
|
722,892 |
|
Gross profit |
|
111,590 |
|
|
|
134,101 |
|
|
|
229,384 |
|
|
|
239,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||
Selling, general and administrative expenses |
|
47,076 |
|
|
|
44,347 |
|
|
|
97,455 |
|
|
|
84,320 |
|
Amortization expense |
|
5,399 |
|
|
|
4,739 |
|
|
|
10,835 |
|
|
|
9,462 |
|
Operating income |
|
59,115 |
|
|
|
85,015 |
|
|
|
121,094 |
|
|
|
145,235 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other income and expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense, net |
|
26,713 |
|
|
|
24,849 |
|
|
|
53,682 |
|
|
|
50,888 |
|
Other income |
|
(1,117 |
) |
|
|
(701 |
) |
|
|
(2,208 |
) |
|
|
(1,154 |
) |
Income before income tax expense |
|
33,519 |
|
|
|
60,867 |
|
|
|
69,620 |
|
|
|
95,501 |
|
Income tax expense |
|
8,968 |
|
|
|
15,956 |
|
|
|
18,191 |
|
|
|
22,498 |
|
Net income |
$ |
24,551 |
|
|
$ |
44,911 |
|
|
$ |
51,429 |
|
|
$ |
73,003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
64,777 |
|
|
|
64,130 |
|
|
|
64,680 |
|
|
|
64,088 |
|
Diluted |
|
65,410 |
|
|
|
64,410 |
|
|
|
65,310 |
|
|
|
64,247 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
$ |
0.38 |
|
|
$ |
0.70 |
|
|
$ |
0.80 |
|
|
$ |
1.14 |
|
Diluted |
$ |
0.38 |
|
|
$ |
0.70 |
|
|
$ |
0.79 |
|
|
$ |
1.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash dividends declared per share |
$ |
0.475 |
|
|
$ |
0.475 |
|
|
$ |
0.950 |
|
|
$ |
0.950 |
|
B&G Foods, Inc. and Subsidiaries
|
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|
|
|
|
|
|
|
|
||||
|
|
Second Quarter Ended |
|
First Two Quarters Ended |
||||||||||||
|
|
July 3, |
|
June 27, |
|
July 3, |
|
June 27, |
||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Net income |
|
$ |
24,551 |
|
|
$ |
44,911 |
|
|
$ |
51,429 |
|
|
$ |
73,003 |
|
Income tax expense |
|
|
8,968 |
|
|
|
15,956 |
|
|
|
18,191 |
|
|
|
22,498 |
|
Interest expense, net |
|
|
26,713 |
|
|
|
24,849 |
|
|
|
53,682 |
|
|
|
50,888 |
|
Depreciation and amortization |
|
|
20,238 |
|
|
|
15,385 |
|
|
|
40,529 |
|
|
|
30,919 |
|
EBITDA(1) |
|
|
80,470 |
|
|
|
101,101 |
|
|
|
163,831 |
|
|
|
177,308 |
|
Acquisition/divestiture-related and non-recurring expenses(2) |
|
|
3,319 |
|
|
|
1,497 |
|
|
|
7,829 |
|
|
|
5,980 |
|
Amortization of acquisition-related inventory step-up(3) |
|
|
— |
|
|
|
— |
|
|
|
5,054 |
|
|
|
— |
|
Adjusted EBITDA(1) |
|
|
83,789 |
|
|
|
102,598 |
|
|
|
176,714 |
|
|
|
183,288 |
|
COVID-19 expenses(4) |
|
|
1,199 |
|
|
|
4,289 |
|
|
|
4,090 |
|
|
|
4,439 |
|
Adjusted EBITDA before COVID-19 expenses(1) |
|
|
84,988 |
|
|
|
106,887 |
|
|
|
180,804 |
|
|
|
187,727 |
|
Income tax expense |
|
|
(8,968 |
) |
|
|
(15,956 |
) |
|
|
(18,191 |
) |
|
|
(22,498 |
) |
Interest expense, net |
|
|
(26,713 |
) |
|
|
(24,849 |
) |
|
|
(53,682 |
) |
|
|
(50,888 |
) |
Acquisition/divestiture-related and non-recurring expenses(2) |
|
|
(3,319 |
) |
|
|
(1,497 |
) |
|
|
(7,829 |
) |
|
|
(5,980 |
) |
Amortization of acquisition-related inventory step-up(3) |
|
|
— |
|
|
|
— |
|
|
|
(5,054 |
) |
|
|
— |
|
Net gain on sales and disposals of property, plant and equipment |
|
|
(4 |
) |
|
|
(63 |
) |
|
|
(30 |
) |
|
|
(61 |
) |
Deferred income taxes |
|
|
5,182 |
|
|
|
(116 |
) |
|
|
11,370 |
|
|
|
14,281 |
|
Amortization of deferred debt financing costs and bond discount/premium |
|
|
1,148 |
|
|
|
901 |
|
|
|
2,289 |
|
|
|
1,799 |
|
Share-based compensation expense |
|
|
1,402 |
|
|
|
3,821 |
|
|
|
2,125 |
|
|
|
4,244 |
|
Changes in assets and liabilities, net of effects of business combinations |
|
|
(12,572 |
) |
|
|
123,949 |
|
|
|
(41,747 |
) |
|
|
122,181 |
|
Net cash provided by operating activities |
|
$ |
39,945 |
|
|
$ |
188,788 |
|
|
$ |
65,965 |
|
|
$ |
246,366 |
|
________________________
(1) |
|
EBITDA, adjusted EBITDA and adjusted EBITDA before COVID-19 expenses 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 income, changes in stockholders’ equity and cash flows. The Company defines EBITDA as net income before net interest expense, income taxes, depreciation and amortization and loss on extinguishment of debt. 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 assets); and non-recurring expenses, gains and losses, including severance and other expenses relating to the separation of the Company’s former chief executive officer in fiscal 2020 and a workforce reduction in fiscal 2019. The Company defines adjusted EBITDA before COVID-19 expenses as adjusted EBITDA adjusted for COVID-19 expenses. |
|
|
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, adjusted EBITDA and adjusted EBITDA before COVID-19 expenses 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, adjusted EBITDA and adjusted EBITDA before COVID-19 expenses 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, adjusted EBITDA and adjusted EBITDA before COVID-19 expenses 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, adjusted EBITDA and adjusted EBITDA before COVID-19 expenses are not recognized terms under GAAP and do not purport to be alternatives to operating income, net income or any other GAAP measure as an indicator of operating performance. EBITDA, adjusted EBITDA and adjusted EBITDA before COVID-19 expenses are not complete net cash flow measures because EBITDA, adjusted EBITDA and adjusted EBITDA before COVID-19 expenses 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, adjusted EBITDA and adjusted EBITDA before COVID-19 expenses are two potential indicators of an entity’s ability to fund these cash requirements. EBITDA, adjusted EBITDA and adjusted EBITDA before COVID-19 expenses 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, adjusted EBITDA and adjusted EBITDA before COVID-19 expenses may not be comparable to other similarly titled measures of other companies. However, EBITDA, adjusted EBITDA and adjusted EBITDA before COVID-19 expenses 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 second quarter and first two quarters of 2021 of |
(3) |
|
For the first two quarters of 2021, amortization of acquisition-related inventory step-up of |
(4) |
|
COVID-19 expenses of |
B&G Foods, Inc. and Subsidiaries
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter Ended |
|
First Two Quarters Ended |
|||||||||
|
|
July 3, |
|
June 27, |
|
July 3, |
|
June 27, |
|||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||
Net income |
|
$ |
24,551 |
|
$ |
44,911 |
|
$ |
51,429 |
|
$ |
73,003 |
|
Acquisition/divestiture-related and non-recurring expenses, net of tax(1) |
|
|
2,506 |
|
|
1,130 |
|
|
5,911 |
|
|
4,515 |
|
Tax benefit(2) |
|
|
— |
|
|
— |
|
|
— |
|
|
(2,258 |
) |
Amortization of acquisition-related inventory step-up, net of tax(3) |
|
|
— |
|
|
— |
|
|
3,816 |
|
|
— |
|
Adjusted net income |
|
$ |
27,057 |
|
$ |
46,041 |
|
$ |
61,156 |
|
$ |
75,260 |
|
Adjusted diluted earnings per share |
|
$ |
0.41 |
|
$ |
0.71 |
|
$ |
0.94 |
|
$ |
1.17 |
|
________________________
(1) |
|
Acquisition/divestiture-related and non-recurring expenses for the second quarter and first two quarters of 2021 primarily includes acquisition and integration expenses for the Crisco and Clabber Girl acquisitions, and certain cost savings initiatives. Acquisition/divestiture-related and non-recurring expenses for the second quarter and first two quarters of 2020 primarily includes acquisition and integration expenses for the Clabber Girl and Farmwise acquisitions, and severance and other expenses primarily relating to a workforce reduction in fiscal 2019 and certain cost savings initiatives. |
(2) |
|
The first two quarters of 2020 includes a |
(3) |
|
For the first two quarters of 2021, amortization of acquisition-related inventory step-up of
|
B&G Foods, Inc. and Subsidiaries
|
||||||||||||||
2021 Compared to 2020 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Second Quarter Ended |
|
First Two Quarters Ended |
||||||||||
|
|
July 3, |
|
June 27, |
|
July 3, |
|
June 27, |
||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||
Net sales |
|
$ |
464,375 |
|
|
$ |
512,539 |
|
$ |
969,509 |
|
|
$ |
961,909 |
Net sales from acquisitions(2) |
|
|
(58,442 |
) |
|
|
— |
|
|
(116,698 |
) |
|
|
— |
Base business net sales |
|
$ |
405,933 |
|
|
$ |
512,539 |
|
$ |
852,811 |
|
|
$ |
961,909 |
2021 Compared to 2019 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Second Quarter Ended |
|
First Two Quarters Ended |
||||||||||
|
|
July 3, |
|
June 29, |
|
July 3, |
|
June 29, |
||||||
|
|
2021 |
|
2019 |
|
2021 |
|
2019 |
||||||
Net sales |
|
$ |
464,375 |
|
|
$ |
371,197 |
|
$ |
969,509 |
|
|
$ |
783,931 |
Net sales from acquisitions(3) |
|
|
(66,731 |
) |
|
|
— |
|
|
(142,534 |
) |
|
|
— |
Base business net sales |
|
$ |
397,644 |
|
|
$ |
371,197 |
|
$ |
826,975 |
|
|
$ |
783,931 |
________________________
(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) |
|
Primarily reflects |
(3) |
|
Primarily reflects (a) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210805006087/en/
FAQ
What were BGS's Q2 2021 net sales results?
How did BGS perform compared to pre-pandemic levels?
What is BGS's EPS for Q2 2021?
What guidance did BGS provide for fiscal 2021?
