FLOWERS FOODS, INC. REPORTS SECOND QUARTER 2023 RESULTS
Second Quarter Summary:
Compared to the prior year second quarter where applicable
- Sales increased
8.8% to a second quarter-record .$1.22 8 billion - Net income increased
18.8% to . Adjusted net income(1) increased$63.8 million 8.8% to .$70.9 million - Adjusted EBITDA(1) increased
10.9% to , representing$133.1 million 10.8% of sales, a 20-basis point increase. - Diluted EPS increased
to$0.05 . Adjusted diluted EPS(1) increased$0.30 to$0.02 .$0.33
CEO's Remarks:
"Flowers' record second quarter sales were driven by the effectiveness of our portfolio strategy and strong execution by our team," said Ryals McMullian, chairman, CEO, and president of Flowers Foods. "Our Branded Retail business performed well in a competitive environment, characterized by continued, but moderating, consumer trade down to private label products. We're also pleased to have grown sales and profitability in our Other category, as price increases to mitigate inflationary pressure more than offset business rationalizations and cost increases. To reflect this strong second quarter performance, we are adjusting our fiscal 2023 guidance.
"Consumers continue to seek value, though we are seeing some early indications that they may be acclimating to higher prices and reverting toward prior purchasing behavior. To capitalize on this environment and spur future growth, we remain focused on bringing new and innovative products to market and implementing initiatives to increase productivity and efficiencies. One such growth opportunity, the nationwide launch of our Dave's Killer Bread Snack Bars, remains on track, and we are excited about their potential to expand our brands into additional categories. To drive margin improvement, we are executing on cost savings initiatives and the deployment of our enterprise resource planning upgrade and other digital initiatives. As always, our dedicated Flowers team is focused on maximizing shareholder value and driving results in line with our long-term financial targets."
For the 52-week Fiscal 2023, the Company Expects:
- Sales in the range of approximately
to$5.09 5 billion , representing an increase of approximately$5.14 1 billion6.0% to7.0% compared to the prior year period. Prior guidance called for sales of approximately to$5.08 6 billion .$5.14 1 billion - Adjusted EBITDA(2) in the range of approximately
to$503 million , compared to prior guidance of$528 million to$494 million .$528 million - Adjusted diluted EPS(2) in the range of approximately
to$1.18 , compared to prior guidance of$1.25 to$1.15 .$1.25
The company's outlook is based on the following assumptions:
- Depreciation and amortization in the range of
to$155 million , compared to prior guidance of$160 million to$160 million $165 million - Net interest expense of approximately
to$16 million , compared to prior guidance of$18 million to$9 million $13 million - An effective tax rate of approximately
24% , compared to prior guidance of approximately25% - Weighted average diluted share count for the year of approximately 213 million shares
- Capital expenditures in the range of
to$145 million , with$155 million to$30 million related to the ERP upgrade, compared to prior guidance of$40 million to$140 million $150 million
Matters Affecting Comparability:
Reconciliation of Earnings per Share to Adjusted Earnings per Share | ||||||||
12-Week Period | 12-Week Period | |||||||
July 15, 2023 | July 16, 2022 | |||||||
Net income per diluted common share | $ | 0.30 | $ | 0.25 | ||||
Business process improvement costs | 0.02 | 0.04 | ||||||
Restructuring charges | 0.01 | — | ||||||
Acquisition-related costs | NM | — | ||||||
Severance and lease termination | — | 0.01 | ||||||
Legal settlement | — | 0.01 | ||||||
Adjusted net income per diluted common share | $ | 0.33 | $ | 0.31 |
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
- Sales increased
8.8% to , a second quarter record. Pricing/mix(3) increased$1.22 8 billion13.3% , volume(4) declined6.1% , and the Papa Pita acquisition added1.6% . - Branded Retail sales increased
or$52.0 million 7.1% to due to higher prices intended to offset inflationary pressures, improved mix from greater branded organic product sales, and the acquisition contribution, partially offset by volume declines. Pricing/mix(3) rose$787.8 million 7.1% , volume(4) declined1.5% , and the Papa Pita acquisition added1.5% . - Other sales increased
or$47.0 million 11.9% to due to substantial price increases implemented prior to the second quarter of fiscal 2023 intended to offset inflationary pressures, and the acquisition contribution, partially offset by volume declines. Pricing/mix(3) rose$440.3 million 20.6% , volume(4) declined10.5% , and the Papa Pita acquisition added1.8% . - Materials, supplies, labor, and other production costs (exclusive of depreciation and amortization) were
51.0% of sales, a 90-basis point decrease. These costs decreased as a percentage of sales due to inflation-driven pricing actions more than offsetting input cost inflation, lower production volumes, increased product returns, and increased maintenance costs. - Selling, distribution, and administrative (SD&A) expenses were
38.8% of sales, in line with the prior year period. Lower consulting costs and distributor distribution fees as a percentage of sales were offset by greater marketing expenses, reduced scrap dough income, and an insurance liability reserve. Excluding matters affecting comparability, adjusted SD&A expenses were38.2% of sales, a 70-basis point increase, due to the factors listed above with the exception of the consulting costs. - Depreciation and amortization (D&A) expenses were
, or$35.0 million 2.8% of sales, a 10-basis point decrease. - Net income increased
18.8% to due to all the factors mentioned above, net of higher interest expense and effective tax rate. Adjusted net income(1) increased$63.8 million 8.8% to .$70.9 million - Adjusted EBITDA(1) increased
10.9% to , representing$133.1 million 10.8% of sales, a 20-basis point increase.
Cash Flow, Capital Allocation, and Capital Return
Year-to-date, through the end of the second quarter of fiscal 2023, cash flow from operating activities decreased by
(1) | Adjusted for items affecting comparability. See reconciliations of non-GAAP measures in the financial statements following this release. |
(2) | No reconciliation of the forecasted range for Adjusted diluted EPS to Diluted EPS and adjusted EBITDA to net income for the 52-week Fiscal 2023 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 reconciliations would imply a degree of precision that would be confusing or misleading to investors. |
(3) | Calculated as (current year period units X change in price per unit) / prior year period sales dollars |
(4) | Calculated as (prior year period price per unit X change in units) / prior year period sales dollars |
Pre-Recorded Management Remarks and Question and Answer Webcast
In conjunction with this release, pre-recorded management remarks and a supporting slide presentation will be posted to the Flowers Foods website. The company will host a live question and answer webcast at 8:30 a.m. (Eastern) on August 11, 2023. The pre-recorded remarks and webcast will be archived at flowersfoods.com/investors.
About Flowers Foods
Headquartered in
FLO-CORP FLO-IR
Forward-Looking Statements
Statements contained in this press release and certain other written or oral statements made from time to time by Flowers Foods, Inc. (the "company", "Flowers Foods", "Flowers", "us", "we", or "our") and its representatives that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to current expectations regarding our business and our future financial condition and results of operations and are often identified by the use of words and phrases such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," "will," "would," "is likely to," "is expected to" or "will continue," or the negative of these terms or other comparable terminology. These forward-looking statements are based upon assumptions we believe are reasonable. Forward-looking statements are based on current information and are subject to risks and uncertainties that could cause our actual results to differ materially from those projected. Certain factors that may cause actual results, performance, liquidity, and achievements to differ materially from those projected are discussed in our Annual Report on Form 10-K (the "Form 10-K") and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission ("SEC") and may include, but are not limited to, (a) unexpected changes in any of the following: (1) general economic and business conditions; (2) the competitive setting in which we operate, including advertising or promotional strategies by us or our competitors, as well as changes in consumer demand; (3) interest rates and other terms available to us on our borrowings; (4) supply chain conditions and any related impact on energy and raw materials costs and availability and hedging counter-party risks; (5) relationships with or increased costs related to our employees and third-party service providers; (6) laws and regulations (including environmental and health-related issues); and (7) accounting standards or tax rates in the markets in which we operate, (b) the loss or financial instability of any significant customer(s), including as a result of product recalls or safety concerns related to our products, (c) changes in consumer behavior, trends and preferences, including health and whole grain trends, and the movement toward less expensive store branded products, (d) the level of success we achieve in developing and introducing new products and entering new markets, (e) our ability to implement new technology and customer requirements as required, (f) our ability to operate existing, and any new, manufacturing lines according to schedule, (g) our ability to implement and achieve our environmental, social, and governance goals in accordance with regulatory requirements and expectations of stakeholders, suppliers, and customers; (h) our ability to execute our business strategies which may involve, among other things, (1) the ability to realize the intended benefits of completed, planned or contemplated acquisitions, dispositions or joint ventures, (2) the deployment of new systems (e.g., our enterprise resource planning ("ERP") system), distribution channels and technology, and (3) an enhanced organizational structure (e.g., our sales and supply chain reorganization), (i) consolidation within the baking industry and related industries, (j) changes in pricing, customer and consumer reaction to pricing actions (including decreased volumes), and the pricing environment among competitors within the industry, (k) our ability to adjust pricing to offset, or partially offset, inflationary pressure on the cost of our products, including ingredient and packaging costs; (l) disruptions in our direct-store-delivery distribution model, including litigation or an adverse ruling by a court or regulatory or governmental body that could affect the independent contractor classifications of the independent distributor partners, (m) increasing legal complexity and legal proceedings that we are or may become subject to, (n) labor shortages and turnover or increases in employee and employee-related costs, (o) the credit, business, and legal risks associated with independent distributor partners and customers, which operate in the highly competitive retail food and foodservice industries, (p) any business disruptions due to political instability, pandemics, armed hostilities (including the ongoing conflict between
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. EBITDA is used as the primary performance measure in the company's 2014 Omnibus Equity and Incentive Compensation Plan. Furthermore, pursuant to the terms of our credit facility, EBITDA is used to determine the company's compliance with certain financial covenants. 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. These costs include, but are not limited to, the costs of closing a plant or costs associated with acquisition-related activities, certain impairment charges, legal settlements and other costs impacting past and future comparability. The company believes that these measures, when considered together with its GAAP financial results, provides management and investors with a more complete understanding of its business operating results, including underlying trends, by excluding the effects of certain charges.
Presentation of gross margin includes depreciation and amortization in the materials, supplies, labor and other production costs according to GAAP. Our method of presenting gross margin excludes the depreciation and amortization components, as discussed above.
The reconciliations attached provide reconciliations of the non-GAAP measures used in this presentation or release to the most comparable GAAP financial measure.
Flowers Foods, Inc Condensed Consolidated Balance Sheets (000's omitted) | ||||||||
July 15, 2023 | December 31, 2022 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 11,711 | $ | 165,134 | ||||
Other current assets | 711,673 | 613,334 | ||||||
Property, plant and equipment, net | 961,786 | 849,325 | ||||||
Right-of-use leases, net | 271,892 | 275,214 | ||||||
Distributor notes receivable (1) | 156,978 | 163,354 | ||||||
Other assets | 39,190 | 37,008 | ||||||
Cost in excess of net tangible assets, net | 1,352,605 | 1,209,625 | ||||||
Total assets | $ | 3,505,835 | $ | 3,312,994 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities | $ | 504,768 | $ | 518,656 | ||||
Long-term debt | 1,074,544 | 891,842 | ||||||
Right-of-use lease liabilities (2) | 281,542 | 282,862 | ||||||
Other liabilities | 174,907 | 176,344 | ||||||
Stockholders' equity | 1,470,074 | 1,443,290 | ||||||
Total liabilities and stockholders' equity | $ | 3,505,835 | $ | 3,312,994 | ||||
(1) | Includes current portion of |
(2) | Includes current portion of |
Flowers Foods, Inc Consolidated Statement of Operations (000's omitted, except per share data) | ||||||||||||||||
12-Week Period | 12-Week Period | For the 28-Week | For the 28-Week | |||||||||||||
July 15, 2023 | July 16, 2022 | July 15, 2023 | July 16, 2022 | |||||||||||||
Sales | $ | 1,228,050 | $ | 1,129,051 | $ | 2,762,543 | $ | 2,564,983 | ||||||||
Materials, supplies, labor and other production costs (exclusive of | 626,097 | 586,084 | 1,426,949 | 1,310,676 | ||||||||||||
Selling, distribution, and administrative expenses | 475,916 | 438,350 | 1,067,859 | 993,302 | ||||||||||||
Restructuring charges | 2,499 | — | 6,694 | — | ||||||||||||
Impairment of assets | — | — | — | 990 | ||||||||||||
Depreciation and amortization expense | 34,984 | 32,922 | 78,719 | 76,345 | ||||||||||||
Income from operations | 88,554 | 71,695 | 182,322 | 183,670 | ||||||||||||
Other pension benefit | (62) | (178) | (145) | (416) | ||||||||||||
Interest expense, net | 4,251 | 1,504 | 8,137 | 3,605 | ||||||||||||
Income before income taxes | 84,365 | 70,369 | 174,330 | 180,481 | ||||||||||||
Income tax expense | 20,605 | 16,689 | 39,860 | 41,212 | ||||||||||||
Net income | $ | 63,760 | $ | 53,680 | $ | 134,470 | $ | 139,269 | ||||||||
Net income per diluted common share | $ | 0.30 | $ | 0.25 | $ | 0.63 | $ | 0.65 | ||||||||
Diluted weighted average shares outstanding | 213,009 | 213,307 | 213,538 | 213,315 |
Flowers Foods, Inc Condensed Consolidated Statement of Cash Flows (000's omitted) | ||||||||||||||||
12-Week Period | 12-Week Period | For the 28-Week | For the 28-Week | |||||||||||||
July 15, 2023 | July 16, 2022 | July 15, 2023 | July 16, 2022 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 63,760 | $ | 53,680 | $ | 134,470 | $ | 139,269 | ||||||||
Adjustments to reconcile net income to net cash from operating | ||||||||||||||||
Total non-cash adjustments | 42,381 | 44,283 | 105,356 | 108,952 | ||||||||||||
Changes in assets and liabilities | (35,186) | (38,284) | (110,919) | (64,388) | ||||||||||||
Net cash provided by operating activities | 70,955 | 59,679 | 128,907 | 183,833 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchase of property, plant and equipment | (34,427) | (47,365) | (68,385) | (97,862) | ||||||||||||
Proceeds from sale of property, plant and equipment | 679 | 144 | 775 | 1,575 | ||||||||||||
Acquisition of business | (4,304) | — | (274,755) | — | ||||||||||||
Investment in unconsolidated affiliate | (1,981) | (9,000) | (1,981) | (9,000) | ||||||||||||
Other | 2,871 | 5,006 | 5,977 | 12,177 | ||||||||||||
Net cash disbursed for investing activities | (37,162) | (51,215) | (338,369) | (93,110) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Dividends paid | (49,023) | (46,700) | (98,123) | (93,447) | ||||||||||||
Stock repurchases | (15,263) | (6,465) | (26,244) | (16,514) | ||||||||||||
Net change in debt borrowings | 11,000 | — | 182,000 | — | ||||||||||||
Payments on financing leases | (453) | (438) | (1,052) | (864) | ||||||||||||
Other | 3,937 | 2,503 | (542) | (3,258) | ||||||||||||
Net cash (disbursed for) provided by financing activities | (49,802) | (51,100) | 56,039 | (114,083) | ||||||||||||
Net decrease in cash and cash equivalents | (16,009) | (42,636) | (153,423) | (23,360) | ||||||||||||
Cash and cash equivalents at beginning of period | 27,720 | 205,147 | 165,134 | 185,871 | ||||||||||||
Cash and cash equivalents at end of period | $ | 11,711 | $ | 162,511 | $ | 11,711 | $ | 162,511 |
Flowers Foods, Inc Sales by Sales Class and Sales Bridge (000's omitted)
Sales by Sales Class | ||||||||||||||||
12-Week Period Ended | 12-Week Period Ended | |||||||||||||||
July 15, 2023 | July 16, 2022 | $ Change | % Change | |||||||||||||
Branded Retail | $ | 787,765 | $ | 735,728 | $ | 52,037 | 7.1 | % | ||||||||
Other | 440,285 | 393,323 | 46,962 | 11.9 | % | |||||||||||
Total Sales | $ | 1,228,050 | $ | 1,129,051 | $ | 98,999 | 8.8 | % | ||||||||
For the 28-Week Period | For the 28-Week Period | |||||||||||||||
July 15, 2023 | July 16, 2022 | $ Change | % Change | |||||||||||||
Branded Retail | $ | 1,767,268 | $ | 1,691,266 | $ | 76,002 | 4.5 | % | ||||||||
Other | 995,275 | 873,717 | 121,558 | 13.9 | % | |||||||||||
Total Sales | $ | 2,762,543 | $ | 2,564,983 | $ | 197,560 | 7.7 | % |
Sales Bridge | ||||||||||||
For the 12-week period ended July 15, 2023 | Branded Retail | Other | Total | |||||||||
Pricing/mix* | 7.1 | % | 20.6 | % | 13.3 | % | ||||||
Volume* | (1.5) | % | (10.5) | % | (6.1) | % | ||||||
Acquisition | 1.5 | % | 1.8 | % | 1.6 | % | ||||||
Total percentage point change in sales | 7.1 | % | 11.9 | % | 8.8 | % | ||||||
For the 28-week period ended July 15, 2023 | Branded Retail | Other | Total | |||||||||
Pricing/mix* | 7.8 | % | 21.9 | % | 13.5 | % | ||||||
Volume* | (4.2) | % | (9.2) | % | (6.8) | % | ||||||
Acquisition | 0.9 | % | 1.2 | % | 1.0 | % | ||||||
Total percentage point change in sales | 4.5 | % | 13.9 | % | 7.7 | % | ||||||
* Computations above are calculated as follows: | ||||||||
Price/Mix $ = Current year period units × change in price per unit | ||||||||
Price/Mix % = Price/Mix $ ÷ Prior year period Sales $ | ||||||||
Volume $ = Prior year period price per unit × change in units | ||||||||
Volume % = Volume $ ÷ Prior year period Sales $ |
Flowers Foods, Inc Reconciliation of GAAP to Non-GAAP Measures (000's omitted, except per share data) | ||||||||||||||||
Reconciliation of Earnings per Share to Adjusted Earnings per Share | ||||||||||||||||
12-Week Period | 12-Week Period | For the 28-Week | For the 28-Week | |||||||||||||
July 15, 2023 | July 16, 2022 | July 15, 2023 | July 16, 2022 | |||||||||||||
Net income per diluted common share | $ | 0.30 | $ | 0.25 | $ | 0.63 | $ | 0.65 | ||||||||
Business process improvement costs | 0.02 | 0.04 | 0.05 | 0.07 | ||||||||||||
Impairment of assets | — | — | — | NM | ||||||||||||
Restructuring charges | 0.01 | — | 0.02 | — | ||||||||||||
Acquisition-related costs | NM | — | 0.01 | — | ||||||||||||
Severance and lease termination | — | 0.01 | — | 0.01 | ||||||||||||
Legal settlement | — | 0.01 | — | 0.01 | ||||||||||||
Adjusted net income per diluted common share | $ | 0.33 | $ | 0.31 | $ | 0.71 | $ | 0.74 | ||||||||
NM - not meaningful | ||||||||||||||||
Reconciliation of Gross Margin | ||||||||||||||||
12-Week Period | 12-Week Period | For the 28-Week | For the 28-Week | |||||||||||||
July 15, 2023 | July 16, 2022 | July 15, 2023 | July 16, 2022 | |||||||||||||
Sales | $ | 1,228,050 | $ | 1,129,051 | $ | 2,762,543 | $ | 2,564,983 | ||||||||
Materials, supplies, labor and other production costs (exclusive | 626,097 | 586,084 | 1,426,949 | 1,310,676 | ||||||||||||
Gross margin excluding depreciation and amortization | 601,953 | 542,967 | 1,335,594 | 1,254,307 | ||||||||||||
Less depreciation and amortization for production activities | 19,259 | 18,167 | 43,707 | 41,601 | ||||||||||||
Gross margin | $ | 582,694 | $ | 524,800 | $ | 1,291,887 | $ | 1,212,706 | ||||||||
Depreciation and amortization for production activities | $ | 19,259 | $ | 18,167 | $ | 43,707 | $ | 41,601 | ||||||||
Depreciation and amortization for selling, distribution, and | 15,725 | 14,755 | 35,012 | 34,744 | ||||||||||||
Total depreciation and amortization | $ | 34,984 | $ | 32,922 | $ | 78,719 | $ | 76,345 | ||||||||
Reconciliation of Selling, Distribution, and Administrative Expenses to | ||||||||||||||||
12-Week Period | 12-Week Period | For the 28-Week | For the 28-Week Period | |||||||||||||
July 15, 2023 | July 16, 2022 | July 15, 2023 | July 16, 2022 | |||||||||||||
Selling, distribution, and administrative expenses | $ | 475,916 | $ | 438,350 | $ | 1,067,859 | $ | 993,302 | ||||||||
Business process improvement costs | (6,588) | (11,658) | (12,807) | (20,722) | ||||||||||||
Legal settlement | — | (2,000) | — | (2,000) | ||||||||||||
Acquisition-related costs | (489) | — | (3,712) | — | ||||||||||||
Severance and lease termination | — | (1,717) | — | (1,717) | ||||||||||||
Adjusted SD&A | $ | 468,839 | $ | 422,975 | $ | 1,051,340 | $ | 968,863 |
Flowers Foods, Inc Reconciliation of GAAP to Non-GAAP Measures (000's omitted, except per share data) | ||||||||||||||||
Reconciliation of Net Income to EBITDA and Adjusted EBITDA | ||||||||||||||||
12-Week Period | 12-Week Period Ended | For the 28-Week | For the 28-Week | |||||||||||||
July 15, 2023 | July 16, 2022 | July 15, 2023 | July 16, 2022 | |||||||||||||
Net income | $ | 63,760 | $ | 53,680 | $ | 134,470 | $ | 139,269 | ||||||||
Income tax expense | 20,605 | 16,689 | 39,860 | 41,212 | ||||||||||||
Interest expense, net | 4,251 | 1,504 | 8,137 | 3,605 | ||||||||||||
Depreciation and amortization | 34,984 | 32,922 | 78,719 | 76,345 | ||||||||||||
EBITDA | 123,600 | 104,795 | 261,186 | 260,431 | ||||||||||||
Other pension benefit | (62) | (178) | (145) | (416) | ||||||||||||
Business process improvement costs | 6,588 | 11,658 | 12,807 | 20,722 | ||||||||||||
Impairment of assets | — | — | — | 990 | ||||||||||||
Restructuring charges | 2,499 | — | 6,694 | — | ||||||||||||
Acquisition-related costs | 489 | — | 3,712 | — | ||||||||||||
Severance and lease termination | — | 1,717 | — | 1,717 | ||||||||||||
Legal settlement | — | 2,000 | — | 2,000 | ||||||||||||
Adjusted EBITDA | $ | 133,114 | $ | 119,992 | $ | 284,254 | $ | 285,444 | ||||||||
Sales | $ | 1,228,050 | $ | 1,129,051 | $ | 2,762,543 | $ | 2,564,983 | ||||||||
Adjusted EBITDA margin | 10.8 | % | 10.6 | % | 10.3 | % | 11.1 | % | ||||||||
Reconciliation of Income Tax Expense to Adjusted Income Tax Expense | ||||||||||||||||
12-Week Period | 12-Week Period Ended | For the 28-Week | For the 28-Week Period | |||||||||||||
July 15, 2023 | July 16, 2022 | July 15, 2023 | July 16, 2022 | |||||||||||||
Income tax expense | $ | 20,605 | $ | 16,689 | $ | 39,860 | $ | 41,212 | ||||||||
Tax impact of: | ||||||||||||||||
Business process improvement costs | 1,647 | 2,915 | 3,202 | 5,181 | ||||||||||||
Impairment of assets | — | — | — | 248 | ||||||||||||
Restructuring charges | 624 | — | 1,673 | — | ||||||||||||
Acquisition-related costs | 122 | — | 928 | — | ||||||||||||
Severance and lease termination | — | 429 | — | 429 | ||||||||||||
Legal settlement | — | 500 | — | 500 | ||||||||||||
Adjusted income tax expense | $ | 22,998 | $ | 20,533 | $ | 45,663 | $ | 47,570 |
Flowers Foods, Inc Reconciliation of GAAP to Non-GAAP Measures (000's omitted, except per share data) | |||||||||||||||
Reconciliation of Net Income to Adjusted Net Income | |||||||||||||||
12-Week Period | 12-Week Period Ended | For the 28-Week | For the 28-Week | ||||||||||||
July 15, 2023 | July 16, 2022 | July 15, 2023 | July 16, 2022 | ||||||||||||
Net income | $ | 63,760 | $ | 53,680 | $ | 134,470 | $ | 139,269 | |||||||
Business process improvement costs | 4,941 | 8,743 | 9,605 | 15,541 | |||||||||||
Impairment of assets | — | — | — | 742 | |||||||||||
Restructuring charges | 1,875 | — | 5,021 | — | |||||||||||
Acquisition-related costs | 367 | — | 2,784 | — | |||||||||||
Severance and lease termination | — | 1,288 | — | 1,288 | |||||||||||
Legal settlement | — | 1,500 | — | 1,500 | |||||||||||
Adjusted net income | $ | 70,943 | $ | 65,211 | $ | 151,880 | $ | 158,340 |
Reconciliation of Earnings per Share - | |||||||
Range Estimate | |||||||
Net income per diluted common share | $ | 1.10 | to | $ | 1.17 | ||
Business process improvement costs | 0.05 | 0.05 | |||||
Restructuring charges | 0.02 | 0.02 | |||||
Acquisition-related costs | 0.01 | 0.01 | |||||
Adjusted net income per diluted common share | $ | 1.18 | to | $ | 1.25 |
View original content:https://www.prnewswire.com/news-releases/flowers-foods-inc-reports-second-quarter-2023-results-301898272.html
SOURCE Flowers Foods, Inc.