Freshpet, Inc. Reports Fourth Quarter and Full Year 2024 Financial Results
Freshpet (NASDAQ: FRPT) reported strong financial results for Q4 and full year 2024. Fourth quarter net sales increased 22.0% to $262.7 million, with net income of $18.1 million. Full year 2024 saw net sales rise 27.2% to $975.2 million, with net income of $46.9 million compared to a prior year loss of $33.6 million.
The company demonstrated significant margin improvements, with Q4 gross margin reaching 42.5% (up from 34.6%) and adjusted EBITDA of $52.6 million (up from $31.3 million). Operating cash flow for 2024 was $154.3 million, nearly double the previous year.
Looking ahead, Freshpet provided 2025 guidance projecting net sales between $1.18-1.21 billion and adjusted EBITDA of at least $210 million. The company also updated its 2027 targets, maintaining $1.8 billion in net sales while raising adjusted gross margin to 48% and adjusted EBITDA margin to 22%.
Freshpet (NASDAQ: FRPT) ha riportato risultati finanziari solidi per il quarto trimestre e per l'intero anno 2024. Le vendite nette del quarto trimestre sono aumentate del 22,0% a $262,7 milioni, con un reddito netto di $18,1 milioni. Nell'intero anno 2024, le vendite nette sono aumentate del 27,2% a $975,2 milioni, con un reddito netto di $46,9 milioni rispetto a una perdita di $33,6 milioni dell'anno precedente.
L'azienda ha dimostrato significativi miglioramenti dei margini, con un margine lordo del quarto trimestre che ha raggiunto il 42,5% (rispetto al 34,6%) e un EBITDA rettificato di $52,6 milioni (rispetto ai $31,3 milioni). Il flusso di cassa operativo per il 2024 è stato di $154,3 milioni, quasi il doppio rispetto all'anno precedente.
Guardando al futuro, Freshpet ha fornito indicazioni per il 2025 prevedendo vendite nette comprese tra $1,18-1,21 miliardi e un EBITDA rettificato di almeno $210 milioni. L'azienda ha anche aggiornato i suoi obiettivi per il 2027, mantenendo vendite nette di $1,8 miliardi mentre ha aumentato il margine lordo rettificato al 48% e il margine EBITDA rettificato al 22%.
Freshpet (NASDAQ: FRPT) informó resultados financieros sólidos para el cuarto trimestre y todo el año 2024. Las ventas netas del cuarto trimestre aumentaron un 22,0% a $262,7 millones, con una ganancia neta de $18,1 millones. En todo el año 2024, las ventas netas crecieron un 27,2% a $975,2 millones, con una ganancia neta de $46,9 millones en comparación con una pérdida de $33,6 millones del año anterior.
La compañía demostró mejoras significativas en los márgenes, con un margen bruto del cuarto trimestre alcanzando el 42,5% (frente al 34,6%) y un EBITDA ajustado de $52,6 millones (frente a $31,3 millones). El flujo de efectivo operativo para 2024 fue de $154,3 millones, casi el doble que el año anterior.
De cara al futuro, Freshpet proporcionó una guía para 2025 proyectando ventas netas entre $1,18-1,21 mil millones y un EBITDA ajustado de al menos $210 millones. La empresa también actualizó sus objetivos para 2027, manteniendo $1,8 mil millones en ventas netas mientras que elevó el margen bruto ajustado al 48% y el margen EBITDA ajustado al 22%.
프레시펫 (NASDAQ: FRPT)는 2024년 4분기 및 전체 연도의 강력한 재무 결과를 보고했습니다. 4분기 순매출은 22.0% 증가하여 2억 6,270만 달러에 달했으며, 순이익은 1,810만 달러였습니다. 2024년 전체 연도에는 순매출이 27.2% 증가하여 9억 7,520만 달러에 이르렀으며, 순이익은 4,690만 달러로, 전년 대비 3,360만 달러의 손실에서 개선되었습니다.
회사는 4분기 총 이익률이 42.5%에 도달(34.6%에서 상승)하고 조정된 EBITDA가 5,260만 달러(3,130만 달러에서 상승)로 증가하는 등 상당한 마진 개선을 보여주었습니다. 2024년 운영 현금 흐름은 1억 5,430만 달러로, 전년 대비 거의 두 배 증가했습니다.
미래를 바라보며, 프레시펫은 2025년 순매출을 11억 8천만에서 12억 1천만 달러로 예상하고, 최소 2억 1천만 달러의 조정된 EBITDA를 목표로 하는 가이드를 제공했습니다. 또한 2027년 목표를 업데이트하여 순매출 18억 달러를 유지하면서 조정된 총 이익률을 48%로, 조정된 EBITDA 마진을 22%로 상향 조정했습니다.
Freshpet (NASDAQ: FRPT) a annoncé des résultats financiers solides pour le quatrième trimestre et l'année entière 2024. Les ventes nettes du quatrième trimestre ont augmenté de 22,0 % pour atteindre 262,7 millions de dollars, avec un bénéfice net de 18,1 millions de dollars. Pour l'année entière 2024, les ventes nettes ont augmenté de 27,2 % pour atteindre 975,2 millions de dollars, avec un bénéfice net de 46,9 millions de dollars par rapport à une perte de 33,6 millions de dollars l'année précédente.
L'entreprise a démontré des améliorations significatives des marges, avec une marge brute du quatrième trimestre atteignant 42,5 % (contre 34,6 %) et un EBITDA ajusté de 52,6 millions de dollars (contre 31,3 millions de dollars). Le flux de trésorerie d'exploitation pour 2024 était de 154,3 millions de dollars, soit presque le double de l'année précédente.
En regardant vers l'avenir, Freshpet a fourni des prévisions pour 2025, projetant des ventes nettes entre 1,18 et 1,21 milliard de dollars et un EBITDA ajusté d'au moins 210 millions de dollars. L'entreprise a également mis à jour ses objectifs pour 2027, maintenant des ventes nettes de 1,8 milliard de dollars tout en augmentant la marge brute ajustée à 48 % et la marge EBITDA ajustée à 22 %.
Freshpet (NASDAQ: FRPT) berichtete über starke finanzielle Ergebnisse für das vierte Quartal und das gesamte Jahr 2024. Der Nettoumsatz im vierten Quartal stieg um 22,0% auf 262,7 Millionen USD, mit einem Nettogewinn von 18,1 Millionen USD. Im gesamten Jahr 2024 stiegen die Nettoumsätze um 27,2% auf 975,2 Millionen USD, mit einem Nettogewinn von 46,9 Millionen USD im Vergleich zu einem Verlust von 33,6 Millionen USD im Vorjahr.
Das Unternehmen zeigte erhebliche Verbesserungen der Margen, wobei die Bruttomarge im vierten Quartal 42,5% erreichte (von 34,6% gestiegen) und das bereinigte EBITDA 52,6 Millionen USD betrug (von 31,3 Millionen USD gestiegen). Der operative Cashflow für 2024 betrug 154,3 Millionen USD, was fast doppelt so viel wie im Vorjahr ist.
Für die Zukunft gab Freshpet eine Prognose für 2025 ab und erwartet Nettoumsätze zwischen 1,18 und 1,21 Milliarden USD sowie ein bereinigtes EBITDA von mindestens 210 Millionen USD. Das Unternehmen aktualisierte auch seine Ziele für 2027 und hielt die Nettoumsätze bei 1,8 Milliarden USD, während die bereinigte Bruttomarge auf 48% und die bereinigte EBITDA-Marge auf 22% angehoben wurde.
- Net sales increased 27.2% to $975.2 million in 2024
- Achieved first full-year positive net income of $46.9 million
- Q4 gross margin improved to 42.5% from 34.6%
- Operating cash flow doubled to $154.3 million
- Strong cash position with $268.6 million in cash and cash equivalents
- SG&A expenses increased to $92.2 million in Q4 2024 from $59.7 million
- Significant planned capital expenditure of ~$250 million for 2025
- Total debt of $395.2 million outstanding
Insights
Freshpet's Q4 and FY2024 results mark a transformative milestone in the company's evolution from a high-growth, negative-profit enterprise to a sustainably profitable business model. The
The dramatic improvement in gross margins, expanding 790 basis points year-over-year to
The 2025 guidance and updated 2027 targets reveal management's increased confidence in operational leverage. The projected Adjusted EBITDA margin of
Most significantly, the company's projection of achieving free cash flow positive status by 2026 marks a important inflection point. This transition to self-funded growth reduces reliance on external capital and potentially lowers the cost of capital, creating a virtuous cycle for sustainable expansion in the premium pet food segment.
Significant Margin Improvement & Strong Cash Generation Provides Full Year 2025 Outlook and Updates 2027 Targets
BEDMINSTER, N.J., Feb. 20, 2025 (GLOBE NEWSWIRE) -- Freshpet, Inc. (“Freshpet” or the “Company”) (Nasdaq: FRPT) today reported financial results for its fourth quarter and full year ended December 31, 2024.
Fourth Quarter 2024 Financial Highlights Compared to Prior Year Period
- Net sales of
$262.7 million , an increase of22.0% . - Net income of
$18.1 million , compared to the prior year period of$15.3 million . - Gross margin of
42.5% , compared to the prior year period of34.6% . - Adjusted Gross Margin of
48.1% , compared to the prior year period of41.1% .1 - Adjusted EBITDA of
$52.6 million , compared to the prior year period of$31.3 million .1
Full Year 2024 Financial Highlights Compared to Prior Year
- Net sales of
$975.2 million , an increase of27.2% . - Net income of
$46.9 million , compared to the prior year net loss of$33.6 million . - Gross margin of
40.6% , compared to the prior year of32.7% . - Adjusted Gross Margin of
46.5% , compared to the prior year of40.0% .1 - Adjusted EBITDA of
$161.8 million , compared to the prior year of$66.6 million .1 - For the year ended December 31, 2024, net cash provided by operating activities was
$154.3 million , compared to$75.9 million in the prior year.
"Fiscal year 2024 was a breakout year for Freshpet. We continued to deliver the exceptional net sales growth investors have come to expect from Freshpet but also delivered very strong profit improvements - and even exceeded some of the fiscal year 2027 targets we set two years ago. We also delivered full-year positive net income for the first time. The strength of this sustained performance, coupled with our operating cash flow improvements, gives us confidence we will be free cash flow positive in 2026 and able to self-fund our growth going forward," commented Billy Cyr, Freshpet’s Chief Executive Officer. "This strong performance also enables us to raise our long-term profit margin targets today to reflect the additional scale benefits we believe we can deliver as we transform the pet food category and nourish pets, people, and the planet. We remain focused on delivering disciplined, consistent growth, and outsized profitability improvements, that we believe will drive shareholder value going forward."
Fourth Quarter 2024
Net sales increased
Gross profit was
Selling, general and administrative expenses (“SG&A”) were
Net income was
Adjusted EBITDA was
Full Year 2024
Net sales increased
Gross profit was
SG&A was
Net income was
Adjusted EBITDA was
Balance Sheet
As of December 31, 2024, the Company had cash and cash equivalents of
The Company will utilize its balance sheet to support its ongoing capital needs in connection with its long-term capacity plan.
1 Adjusted Gross Margin, Adjusted Gross Profit, Adjusted SG&A and Adjusted EBITDA are non-GAAP financial measures. See "Non-GAAP Measures" for how the Company defines these measures and the financial tables that accompany this release for reconciliations of these measures to the closest comparable GAAP measures.
Outlook
For full year 2025, the Company is providing the following guidance:
- Net sales in the range of
$1.18 billion to$1.21 billion , an increase of21% to24% from 2024; - Adjusted EBITDA of at least
$210 million ; and - Capital expenditures of ~
$250 million .
The Company is also updating its long-term guidance. For full year 2027, the Company now expects:
- Net sales of
$1.8 billion , unchanged; - Adjusted Gross Margin of
48% , compared to45% previously; and - Adjusted EBITDA margin of
22% , compared to18% previously.
The Company does not provide guidance for net income (loss), the U.S. GAAP measure most directly comparable to Adjusted EBITDA, and similarly cannot provide a reconciliation between its forecasted Adjusted EBITDA and net income (loss) metrics without unreasonable effort due to the unavailability of reliable estimates for certain components of net income (loss) and the respective reconciliations, including the timing of and amount of costs of goods sold and selling, general and administrative expenses. These items are not within the Company's control and may vary greatly between periods and could significantly impact future results.
Conference Call & Earnings Presentation Webcast Information
As previously announced, today, February 20, 2025, the Company will host a conference call with members of its leadership team. The conference call webcast is scheduled to begin at 6:30 a.m. ET and will be hosted and archived on the "Investors" section of the Company's website at www.freshpet.com. Due to the Company's participation in the 2025 Consumer Analyst Group of New York (CAGNY) Conference, there will not be a question and answer session this quarter.
About Freshpet
Freshpet’s mission is to improve the lives of dogs and cats through the power of fresh, real food. Freshpet foods are blends of fresh meats, vegetables and fruits farmed locally and made at our Freshpet Kitchens. We thoughtfully prepare our foods using natural ingredients, cooking them in small batches at lower temperatures to preserve the natural goodness of the ingredients. Freshpet foods and treats are kept refrigerated from the moment they are made until they arrive at Freshpet Fridges in your local market.
Our foods are available in select grocery, mass, digital, pet specialty, and club retailers across the United States, Canada and Europe. From the care we take to source our ingredients and make our food, to the moment it reaches your home, our integrity, transparency and social responsibility are the way we like to run our business. To learn more, visit www.freshpet.com.
Connect with Freshpet:
https://www.facebook.com/Freshpet
https://x.com/Freshpet
http://instagram.com/Freshpet
http://pinterest.com/Freshpet
https://www.tiktok.com/@Freshpet
https://www.youtube.com/user/freshpet400
Forward Looking Statements
Certain statements in this release constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to our ability to achieve our 2027 targets, create meaningful shareholder value, and guidance with respect to 2024 net sales, Adjusted EBITDA and capital expenditures. These statements are based on management's current opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results. While Freshpet believes that its assumptions are reasonable, it is very difficult to predict the impact of known factors, and, of course, it is impossible to anticipate all factors that could affect actual results. There are several risks and uncertainties which could cause actual results, performance, and achievements to differ materially from those stated or implied by the forward-looking statements described herein, including, most prominently, the risks discussed under the heading “Risk Factors” in the Company's latest annual report on Form 10-K and its quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. Such forward-looking statements are made only as of the date of this release. Freshpet undertakes no obligation to publicly update or revise any forward-looking statement because of new information, future events or otherwise, except as otherwise required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements.
Non-GAAP Financial Measures
Freshpet uses the following non-GAAP financial measures in its financial communications. These non-GAAP financial measures should be considered as supplements to the U.S. GAAP reported measures, should not be considered replacements for, or superior to, the U.S. GAAP measures and may not be comparable to similarly named measures used by other companies.
- Adjusted Gross Profit
- Adjusted Gross Profit as a percentage of net sales (Adjusted Gross Margin)
- Adjusted SG&A Expenses
- Adjusted SG&A Expenses as a percentage of net sales
- EBITDA
- Adjusted EBITDA
- Adjusted EBITDA as a percentage of net sales
Adjusted Gross Profit: Freshpet defines Adjusted Gross Profit as gross profit before depreciation expense, non-cash share-based compensation and loss on disposal of manufacturing equipment.
Adjusted SG&A Expenses: Freshpet defines Adjusted SG&A as SG&A expenses before depreciation and amortization expense, non-cash share-based compensation, implementation and other costs associated with the implementation of an enterprise resource planning ("ERP") system, fees related to the capped call transactions, loss on disposal of equipment, advisory fees related to shareholder activism defense engagement, and organizational changes.
EBITDA and Adjusted EBITDA: EBITDA represents net income (loss) plus interest expense net of interest income, income tax expense and depreciation and amortization expense, and Adjusted EBITDA represents EBITDA less gain on equity investment, plus loss on equity method investment, non-cash share-based compensation expense, implementation and other costs associated with the implementation of an ERP system, loss on disposal of property, plant and equipment, fees related to the capped call transactions, advisory fees related to shareholder activism defense engagement, and organizational changes.
Management believes that the non-GAAP financial measures are meaningful to investors because they provide a view of the Company with respect to ongoing operating results. The non-GAAP financial measures are shown as supplemental disclosures in this release because they are widely used by the investment community for analysis and comparative evaluation. They also provide additional metrics to evaluate the Company’s operations and, when considered with both the Company’s GAAP results and the reconciliation to the most comparable U.S. GAAP measures, provide a more complete understanding of the Company’s business than could be obtained absent this disclosure. The non-GAAP measures are not and should not be considered an alternative to the most comparable U.S. GAAP measures or any other figure calculated in accordance with U.S. GAAP, or as an indicator of operating performance. The Company’s calculation of the non-GAAP financial measures may differ from methods used by other companies. Management believes that the non-GAAP measures are important to an understanding of the Company's overall operating results in the periods presented. The non-GAAP financial measures are not recognized in accordance with U.S. GAAP and should not be viewed as an alternative to U.S. GAAP measures of performance.
Investor Contact:
Rachel Ulsh
Rulsh@freshpet.com
Media Contact:
Press@freshpet.com
| FRESHPET, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) | |||||||
| December 31, 2024 | December 31, 2023 | ||||||
| ASSETS | |||||||
| CURRENT ASSETS: | |||||||
| Cash and cash equivalents | $ | 268,633 | $ | 296,871 | |||
| Accounts receivable, net of allowance for doubtful accounts | 68,419 | 56,754 | |||||
| Inventories, net | 80,794 | 63,238 | |||||
| Prepaid expenses | 16,026 | 7,615 | |||||
| Other current assets | 3,126 | 2,841 | |||||
| Total Current Assets | 436,998 | 427,319 | |||||
| Property, plant and equipment, net | 1,065,869 | 979,164 | |||||
| Deposits on equipment | 1,047 | 1,895 | |||||
| Operating lease right of use assets | 3,366 | 3,616 | |||||
| Long term investment in equity securities | 33,446 | 23,528 | |||||
| Other assets | 34,152 | 28,899 | |||||
| Total Assets | $ | 1,574,878 | $ | 1,464,421 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| CURRENT LIABILITIES: | |||||||
| Accounts payable | $ | 39,164 | $ | 36,096 | |||
| Accrued expenses | 56,263 | 49,816 | |||||
| Current operating lease liabilities | 1,322 | 1,312 | |||||
| Current finance lease liabilities | 2,120 | 1,998 | |||||
| Total Current Liabilities | $ | 98,869 | $ | 89,222 | |||
| Convertible senior notes | 395,163 | 393,074 | |||||
| Long term operating lease liabilities | 2,213 | 2,591 | |||||
| Long term finance lease liabilities | 23,273 | 26,080 | |||||
| Total Liabilities | $ | 519,518 | $ | 510,967 | |||
| Commitments and contingencies | — | — | |||||
| STOCKHOLDERS' EQUITY: | |||||||
| Common stock — voting, | 49 | 48 | |||||
| Additional paid-in capital | 1,338,160 | 1,282,984 | |||||
| Accumulated deficit | (281,806 | ) | (328,731 | ) | |||
| Accumulated other comprehensive loss | (787 | ) | (591 | ) | |||
| Treasury stock, at cost — 14 shares on December 31, 2024 and on December 31, 2023 | (256 | ) | (256 | ) | |||
| Total Stockholders' Equity | 1,055,360 | 953,454 | |||||
| Total Liabilities and Stockholders' Equity | $ | 1,574,878 | $ | 1,464,421 | |||
| FRESHPET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (In thousands, except per share data) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (Unaudited) | |||||||||||||||
| NET SALES | $ | 262,708 | $ | 215,420 | $ | 975,177 | $ | 766,895 | |||||||
| COST OF GOODS SOLD | 151,108 | 140,846 | 579,221 | 516,023 | |||||||||||
| GROSS PROFIT | 111,600 | 74,575 | 395,956 | 250,872 | |||||||||||
| SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES | 92,223 | 59,680 | 357,957 | 281,318 | |||||||||||
| INCOME (LOSS) FROM OPERATIONS | 19,377 | 14,895 | 37,999 | (30,446 | ) | ||||||||||
| OTHER INCOME (EXPENSES): | |||||||||||||||
| Interest and Other Income, net | 2,710 | 3,843 | 11,868 | 13,029 | |||||||||||
| Interest Expense | (3,528 | ) | (3,449 | ) | (12,262 | ) | (14,097 | ) | |||||||
| Gain on Equity Investment | — | — | 9,918 | — | |||||||||||
| (818 | ) | 394 | 9,524 | (1,068 | ) | ||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | 18,559 | 15,289 | 47,523 | (31,514 | ) | ||||||||||
| INCOME TAX EXPENSE | 436 | — | 598 | 210 | |||||||||||
| LOSS ON EQUITY METHOD INVESTMENT | — | — | — | 1,890 | |||||||||||
| INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 18,123 | $ | 15,289 | $ | 46,925 | $ | (33,614 | ) | ||||||
| OTHER COMPREHENSIVE (LOSS) INCOME: | |||||||||||||||
| Change in foreign currency translation | $ | (603 | ) | $ | 368 | $ | (196 | ) | $ | (1,961 | ) | ||||
| TOTAL OTHER COMPREHENSIVE (LOSS) INCOME | (603 | ) | 368 | (196 | ) | (1,961 | ) | ||||||||
| TOTAL COMPREHENSIVE INCOME (LOSS) | $ | 17,520 | $ | 15,657 | $ | 46,729 | $ | (35,575 | ) | ||||||
| NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS | |||||||||||||||
| -BASIC | $ | 0.37 | $ | 0.32 | $ | 0.97 | $ | (0.70 | ) | ||||||
| -DILUTED | $ | 0.36 | $ | 0.31 | $ | 0.93 | $ | (0.70 | ) | ||||||
| WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING | |||||||||||||||
| -BASIC | 48,642 | 48,244 | 48,487 | 48,163 | |||||||||||
| -DILUTED | 50,407 | 49,889 | 50,255 | 48,163 | |||||||||||
| FRESHPET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS (In thousands) | |||||||||||
| Year Ended December 31, | |||||||||||
| 2024 | 2023 | 2022 | |||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
| Net income (loss) | $ | 46,925 | $ | (33,614 | ) | $ | (59,494 | ) | |||
| Adjustments to reconcile net income (loss) to net cash flows provided by operating activities: | |||||||||||
| Provision for loss (gains) on accounts receivable | 467 | (2 | ) | (20 | ) | ||||||
| Loss on disposal of property, plant and equipment | 1,284 | 4,321 | 396 | ||||||||
| Share-based compensation | 51,807 | 24,935 | 26,092 | ||||||||
| Inventory obsolescence | 347 | — | 3,455 | ||||||||
| Depreciation and amortization | 73,615 | 58,517 | 34,555 | ||||||||
| Write-off and amortization of deferred financing costs and loan discount | 2,089 | 4,060 | 795 | ||||||||
| Change in operating lease right of use asset | 1,350 | 1,549 | 1,372 | ||||||||
| Loss on equity method investment | — | 1,890 | 3,731 | ||||||||
| Gain on equity investment | (9,918 | ) | — | — | |||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | (12,228 | ) | 820 | (32,993 | ) | ||||||
| Inventories | (15,484 | ) | (1,207 | ) | (26,171 | ) | |||||
| Prepaid expenses and other current assets | 269 | (2,249 | ) | (435 | ) | ||||||
| Other assets | (5,063 | ) | (4,053 | ) | (3,141 | ) | |||||
| Accounts payable | 12,484 | 3,543 | (3,063 | ) | |||||||
| Accrued expenses | 7,811 | 19,237 | 13,078 | ||||||||
| Operating lease liability | (1,467 | ) | (1,807 | ) | (1,384 | ) | |||||
| Net cash flows provided by (used in) operating activities | 154,288 | 75,940 | (43,227 | ) | |||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
| Acquisitions of property, plant and equipment, software and deposits on equipment | (187,092 | ) | (239,093 | ) | (230,071 | ) | |||||
| Purchase of short-term investments | — | (113,441 | ) | (19,840 | ) | ||||||
| Proceeds from maturities of short-term investments | 113,441 | 19,840 | |||||||||
| Investments in equity method investment | — | — | (3,293 | ) | |||||||
| Net cash flows used in investing activities | (187,092 | ) | (239,093 | ) | (233,364 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
| Proceeds from exercise of options to purchase common stock | 9,138 | 4,517 | 471 | ||||||||
| Tax withholdings related to net shares settlements of restricted stock units | (2,595 | ) | (1,400 | ) | (1,441 | ) | |||||
| Principal payments under finance lease obligations | (1,977 | ) | (1,109 | ) | — | ||||||
| Purchase of capped call options | — | (66,211 | ) | — | |||||||
| Proceeds from issuance of convertible senior notes | — | 393,518 | — | ||||||||
| Debt issuance costs | — | (2,026 | ) | — | |||||||
| Proceeds from borrowings under Credit Facility | — | — | 78,000 | ||||||||
| Repayment of borrowings under Credit Facility | — | — | (78,000 | ) | |||||||
| Proceeds from common shares issued in primary offering, net of issuance cost | — | — | 337,508 | ||||||||
| Net cash flows provided by financing activities | 4,566 | 327,289 | 336,538 | ||||||||
| NET CHANGE IN CASH AND CASH EQUIVALENTS | (28,238 | ) | 164,136 | 59,947 | |||||||
| CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 296,871 | 132,735 | 72,788 | ||||||||
| CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 268,633 | $ | 296,871 | $ | 132,735 | |||||
| FRESHPET, INC. AND SUBSIDIARIES RECONCILIATION BETWEEN GROSS PROFIT AND ADJUSTED GROSS PROFIT | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (Dollars in thousands) | |||||||||||||||
| Gross profit | $ | 111,600 | $ | 74,575 | $ | 395,956 | $ | 250,872 | |||||||
| Depreciation expense | 13,358 | 8,103 | 49,056 | 41,209 | |||||||||||
| Non-cash share-based compensation | 1,310 | 2,299 | 7,761 | 10,995 | |||||||||||
| Loss on disposal of manufacturing equipment | 5 | 3,547 | 696 | 3,547 | |||||||||||
| Adjusted Gross Profit | $ | 126,273 | $ | 88,524 | $ | 453,469 | $ | 306,623 | |||||||
| Adjusted Gross Profit as a % of Net Sales | 48.1 | % | 41.1 | % | 46.5 | % | 40.0 | % | |||||||
| FRESHPET, INC. AND SUBSIDIARIES RECONCILIATION BETWEEN SG&A EXPENSES AND ADJUSTED SG&A EXPENSES | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (Dollars in thousands) | |||||||||||||||
| SG&A expenses | $ | 92,223 | $ | 59,680 | $ | 357,957 | $ | 281,318 | |||||||
| Depreciation and amortization expense | 5,780 | 4,248 | 21,747 | 15,849 | |||||||||||
| Non-cash share-based compensation (a) | 12,635 | (2,315 | ) | 44,045 | 13,941 | ||||||||||
| Loss on disposal of equipment | 225 | 86 | 588 | 774 | |||||||||||
| Enterprise Resource Planning (b) | — | 465 | — | 2,457 | |||||||||||
| Capped Call Transactions fees (c) | — | — | — | 113 | |||||||||||
| Shareholder activism defense engagement (d) | — | — | — | 8,177 | |||||||||||
| Organization changes (e) | — | — | — | (67 | ) | ||||||||||
| Adjusted SG&A Expenses | $ | 73,583 | $ | 57,196 | $ | 291,577 | $ | 240,074 | |||||||
| Adjusted SG&A Expenses as a % of Net Sales | 28.0 | % | 26.6 | % | 29.9 | % | 31.3 | % | |||||||
| (a) | Includes true-ups to share-based compensation expense compared to prior periods. We have certain outstanding share-based awards with performance-based vesting conditions that require the achievement of certain Adjusted EBITDA and/or Net Sales targets as a condition of vesting. At each reporting period, we reassess the probability of achieving the performance criteria and the performance period required to meet those targets. When the probability of achieving such performance conditions changes, the compensation cost previously recorded is adjusted as needed. When such performance conditions are deemed to be improbable of achievement, the compensation cost previously recorded is reversed. |
| (b) | Represents costs associated with the implementation of an ERP system. |
| (c) | Represents fees associated with the Capped Call Transactions associated with our sale of Convertible Notes in 2023. |
| (d) | Represents advisory fees related to shareholder activism defense engagement. |
| (e) | Represents a true-up to transition costs related to the organization changes designed to support growth, including several changes in organizational structure designed to enhance capabilities and support long-term growth objectives. |
| FRESHPET, INC. AND SUBSIDIARIES RECONCILIATION BETWEEN NET INCOME (LOSS) AND ADJUSTED EBITDA | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (Dollars in thousands) | |||||||||||||||
| Net income (loss) | $ | 18,123 | $ | 15,289 | $ | 46,925 | $ | (33,614 | ) | ||||||
| Depreciation and amortization | 19,138 | 12,351 | 70,803 | 57,058 | |||||||||||
| Interest expense, net of interest income | 760 | (394 | ) | 335 | 1,069 | ||||||||||
| Income tax expense | 436 | — | 598 | 210 | |||||||||||
| EBITDA | $ | 38,457 | $ | 27,246 | $ | 118,661 | $ | 24,723 | |||||||
| Gain on equity investment | $ | — | $ | — | $ | (9,918 | ) | $ | — | ||||||
| Loss on disposal of property, plant and equipment | 230 | 3,633 | 1,284 | 4,321 | |||||||||||
| Non-cash share-based compensation (a) | 13,946 | (16 | ) | 51,807 | 24,936 | ||||||||||
| Loss on equity method investment | — | — | — | 1,890 | |||||||||||
| Enterprise Resource Planning (b) | — | 465 | — | 2,457 | |||||||||||
| Capped Call Transactions fees (c) | — | — | — | 113 | |||||||||||
| Shareholder activism defense engagement (d) | — | — | — | 8,177 | |||||||||||
| Organization changes (e) | — | — | — | (67 | ) | ||||||||||
| Adjusted EBITDA | $ | 52,633 | $ | 31,328 | $ | 161,834 | $ | 66,550 | |||||||
| Adjusted EBITDA as a % of Net Sales | 20.0 | % | 14.5 | % | 16.6 | % | 8.7 | % | |||||||
| (a) | Includes true-ups to share-based compensation expense compared to prior periods. We have certain outstanding share-based awards with performance-based vesting conditions that require the achievement of certain Adjusted EBITDA and/or Net Sales targets as a condition of vesting. At each reporting period, we reassess the probability of achieving the performance criteria and the performance period required to meet those targets. When the probability of achieving such performance conditions changes, the compensation cost previously recorded is adjusted as needed. When such performance conditions are deemed to be improbable of achievement, the compensation cost previously recorded is reversed. |
| (b) | Represents costs associated with the implementation of an ERP system. |
| (c) | Represents fees associated with the Capped Call Transactions associated with our sale of Convertible Notes in 2023. |
| (d) | Represents advisory fees related to shareholder activism defense engagement. |
| (e) | Represents a true-up to transition costs related to the organization changes designed to support growth, including several changes in organizational structure designed to enhance capabilities and support long-term growth objectives. |
FAQ
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