Hostess Brands Delivers Strong Profits Driven by 16.1% Net Revenue Growth in the Fourth Quarter
Hostess Brands (NASDAQ: TWNK) reported a strong fourth quarter and full-year 2021, achieving record sales of $297.2 million, a 16.1% increase year-over-year. Adjusted EBITDA rose 14.9% to $73.2 million, demonstrating effective adaptation amidst inflation and supply chain issues. The company anticipates 2022 adjusted net revenue growth of 5% to 8%, with adjusted EBITDA projected between $280 million and $290 million. Additionally, Hostess launched a new share repurchase program for up to $150 million, enhancing shareholder returns.
- Q4 2021 net income reached $36.5 million compared to a net loss of $1.4 million in Q4 2020.
- 2022 guidance indicates adjusted EBITDA growth of 4% to 8%.
- Share repurchase program approved for up to $150 million to enhance shareholder returns.
- Point-of-sale (POS) for Hostess increased 24.1%, with a 218 basis point rise in market share.
- Operating income impacted by increased workforce investments and selling expenses.
2022 Guidance Continues Profitable Growth Momentum
Investor Day to Outline Strategic Vision and Initiatives for Long-term Growth
“The Hostess team once again showcased its resilience and tenacity by delivering record high quarterly sales and adjusted EBITDA, well-ahead of expectations. Our double-digit top-line growth and stable margins in the fourth quarter, and for the full year, reflect higher volumes, multiple pricing actions, increasingly impactful innovation, omni-channel presence and outstanding execution. We continue to perform at best-in-class levels while navigating inflation and supply chain challenges,” commented
He continued, “Our strong 2022 financial guidance reflects our confidence in maintaining our ongoing profitable growth momentum. We are even more excited to share our long-term strategic vision and planned investments to continue to deliver top-tier shareholder returns at our Investor Day presentation, beginning at
Fourth Quarter 2021 Financial Highlights as Compared to the Prior Year Period1:
-
Net revenue of
increased$297.2 million 16.1% from the same period last year, reflecting strong Hostess® and Voortman® branded growth across all channels. -
Gross profit increased
15.2% from the year-ago period to , or$110.4 million 37.1% of net revenue. On an adjusted basis, gross profit increased15.4% and gross margin was relatively flat at37.2% as higher price, volume leverage, and productivity initiatives offset double-digit inflation. -
Net income of
, or$36.5 million per diluted share compared to a net loss of$0.25 , or$1.4 million per diluted share in the same period last year. Adjusted net income increased$0.01 , or$5.3 million 18.5% , to , resulting in$34.0 million adjusted EPS compared to$0.25 in the year-ago period.$0.21 -
Adjusted EBITDA increased
14.9% to , or$73.2 million 24.6% of net revenue. The increase was driven by higher gross profit, partially offset by investments in its workforce and selling expenses to support double-digit net revenue growth. -
Cash and cash equivalents were
as of$249.2 million December 31, 2021 . Net leverage ratio improved from 3.9x to 3.1x driven by improved operating cash flow.
Other Highlights:
-
Hostess manufacturer point-of-sale (“POS”) increased
24.1% for the quarter and its share of the Sweet Baked Goods category increased by 218 basis points to21.5% . The ongoing Hostess® momentum is driven by the strength of its core portfolio and greater contributions from new innovation including Baby Bundts, Muff'n Stix and Strawberry Cheesecake Donettes®. -
Voortman® branded POS grew
19.7% for the quarter, more than 2x faster than the overall Cookie category, reflecting ongoing distribution gains and strong consumer demand. - Successfully implemented additional pricing actions as the Company continues to execute its revenue management initiatives to maintain its industry-leading margin structure.
-
Installed a new cake production line in 2021 and purchased a facility in the first quarter of 2022 for the Company’s planned bakery in
Arkansas to support growing consumer demand. -
Executed
of total repurchases under the previously announced$61.1 million securities repurchase authorization, including$100 million during 2021.$53.2 million
1 This press release contains certain non-GAAP financial measures, including adjusted net revenue, adjusted gross profit, adjusted gross margin, adjusted EBITDA, adjusted EBITDA margin, adjusted operating income, adjusted net income margin and adjusted earnings per share ("EPS"). Please refer to the schedules in the press release for reconciliations of non-GAAP financial measures to the comparable GAAP measure. Unless otherwise stated, all comparisons of financial measures in this press release are to the fourth quarter of 2021. All measures of market performance contained in this press release, including point of sale and market share, include all Company branded products within the SBG or Cookie categories as reported by Nielsen but do not include other products sold outside of those categories. All market data in this press release refer to the 13-week period ended |
2022 Financial Guidance2
The Company’s guidance for the full year 2022 is as follows:
-
Adjusted net revenue growth of
5% to8% ; -
Adjusted EBITDA of
to$280 million , an increase of$290 million 4% to8% from 2021; -
Adjusted EPS of
to$0.93 , an increase of$0.98 6% to11% from 2021; - Weighted average diluted shares outstanding of 137 million to 138 million;
-
Capital expenditures of approximately
to$120 million , including nearly$140 million for the new bakery;$80 million -
Income tax rate of approximately
27% .
Fourth Quarter 2021 Compared to Fourth Quarter 2020
Net revenue was
Gross profit was
Operating income was
Adjusted EBITDA of
The Company’s effective tax rate was
Net income was
Cash flow from operations for the twelve months ended
Share Repurchase
The Company announced today that its Board of Directors has approved a stock repurchase authorization of up to
2 The Company provides guidance only on a non-generally accepted accounting principles (non-GAAP) basis and does not provide a reconciliation of the Company's forward-looking financial expectations to the most directly comparable GAAP financial measure because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation; including adjustments that could be made for deferred taxes; remeasurement of the tax receivable agreement, transformation expenses and other non-operating gains or losses reflected in the Company's reconciliation of historic non-GAAP financial measures, the amount of which could be material. Please refer to the Reconciliation of Non-GAAP Financial Measures included in this press release for further information about the use of these measures. |
Conference Call and Webcast
The Company will host a virtual Investor Day on
About
Forward-Looking Statements
This press release contains statements reflecting the Company’s views about its future performance that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve substantial risks and uncertainties. Forward-looking statements are generally identified through the inclusion of words such as “believes,” “expects,” “intends,” “estimates,” “projects,” “anticipates,” “will,” “plan,” “may,” “should,” or similar language. Statements addressing the Company’s future operating performance and statements addressing events and developments that the Company expects or anticipates will occur are also considered as forward-looking statements. All forward-looking statements included herein are made only as of the date hereof. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
These statements inherently involve risks and uncertainties that could cause actual results to differ materially from those anticipated in such forward-looking statements. These risks and uncertainties include, but are not limited to, maintaining, extending and expanding the Company’s reputation and brand image; protecting intellectual property rights; leveraging the Company’s brand value to compete against lower-priced alternative brands; correctly predicting, identifying and interpreting changes in consumer preferences and demand and offering new products to meet those changes; operating in a highly competitive industry; the continued ability to produce and successfully market products with extended shelf life; the ability to pass cost increases on to our customers; the ability to maintain or add additional shelf or retail space for the Company’s products; our ability to identify or complete strategic acquisitions, alliances, divestitures or joint ventures; our ability to successfully integrate, achieve expected synergies and manage our acquired businesses and brands; the ability to drive revenue growth in key products or add products that are faster-growing and more profitable; adverse impact or disruption to our business caused by COVID-19 or future outbreaks of highly infectious or contagious diseases; volatility in commodity, energy, and other input prices and the ability to adjust pricing to cover increased costs; significant changes in the availability and pricing of transportation; dependence on major customers; supply chain disruptions; increased labor and employee related costs; strikes or work stoppages; product liability claims, product recalls, or regulatory enforcement actions; dependence on third parties for significant services; unanticipated business disruptions; geographic focus that could make the Company particularly vulnerable to economic and other events and trends in
As a result of a number of known and unknown risks and uncertainties, the Company’s actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Risks and uncertainties are identified and discussed in Item 1A-Risk Factors in the Company’s Annual Report on Form 10-K for 2021 to be filed today. All subsequent written or oral forward-looking statements attributable to us or persons acting on the Company’s behalf are expressly qualified in their entirety by these risk factors. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
CONSOLIDATED BALANCE SHEETS (Unaudited, amounts in thousands, except shares and per share data) |
|||||||
|
|
|
|
||||
ASSETS |
2021 |
|
2020 |
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
249,159 |
|
|
$ |
173,034 |
|
Accounts receivable, net |
|
148,180 |
|
|
|
125,550 |
|
Inventories |
|
52,813 |
|
|
|
49,348 |
|
Prepaids and other current assets |
|
10,564 |
|
|
|
21,614 |
|
Total current assets |
|
460,716 |
|
|
|
369,546 |
|
Property and equipment, net |
|
335,305 |
|
|
|
303,959 |
|
Intangible assets, net |
|
1,944,392 |
|
|
|
1,967,903 |
|
|
|
706,615 |
|
|
|
706,615 |
|
Other assets, net |
|
19,283 |
|
|
|
17,446 |
|
Total assets |
$ |
3,466,311 |
|
|
$ |
3,365,469 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Long-term debt and lease obligations payable within one year |
$ |
14,170 |
|
|
$ |
13,811 |
|
Tax receivable agreement obligations payable within one year |
|
11,600 |
|
|
|
11,800 |
|
Accounts payable |
|
68,104 |
|
|
|
61,428 |
|
Customer trade allowances |
|
52,746 |
|
|
|
46,779 |
|
Warrant liabilities |
|
— |
|
|
|
861 |
|
Accrued expenses and other current liabilities |
|
47,009 |
|
|
|
55,715 |
|
Total current liabilities |
|
193,629 |
|
|
|
190,394 |
|
Long-term debt and lease obligations |
|
1,099,975 |
|
|
|
1,113,037 |
|
Tax receivable agreement obligations |
|
134,265 |
|
|
|
144,744 |
|
Deferred tax liability |
|
317,847 |
|
|
|
295,009 |
|
Other long-term liabilities |
|
1,605 |
|
|
|
1,560 |
|
Total liabilities |
|
1,747,321 |
|
|
|
1,744,744 |
|
Class A common stock, |
|
14 |
|
|
|
13 |
|
Additional paid in capital |
|
1,303,254 |
|
|
|
1,281,018 |
|
Accumulated other comprehensive loss |
|
(506 |
) |
|
|
(10,407 |
) |
|
|
(59,172 |
) |
|
|
(6,000 |
) |
Retained earnings |
|
475,400 |
|
|
|
356,101 |
|
Stockholders’ equity |
|
1,718,990 |
|
|
|
1,620,725 |
|
Total liabilities and stockholders’ equity |
$ |
3,466,311 |
|
|
$ |
3,365,469 |
|
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, amounts in thousands, except shares and per share data) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Net revenue |
$ |
297,161 |
|
|
$ |
256,043 |
|
|
$ |
1,142,036 |
|
|
$ |
1,016,609 |
|
Cost of goods sold |
|
186,782 |
|
|
|
160,270 |
|
|
|
732,053 |
|
|
|
660,970 |
|
Gross profit |
|
110,379 |
|
|
|
95,773 |
|
|
|
409,983 |
|
|
|
355,639 |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
||||||||
Advertising and marketing |
|
11,991 |
|
|
|
12,741 |
|
|
|
51,683 |
|
|
|
45,724 |
|
Selling |
|
10,038 |
|
|
|
7,556 |
|
|
|
36,288 |
|
|
|
46,729 |
|
General and administrative |
|
29,919 |
|
|
|
21,599 |
|
|
|
99,173 |
|
|
|
92,860 |
|
Amortization of customer relationships |
|
5,877 |
|
|
|
6,177 |
|
|
|
23,510 |
|
|
|
26,510 |
|
Business combination transaction costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,282 |
|
Tax receivable agreement remeasurement |
|
(1,409 |
) |
|
|
150 |
|
|
|
(1,409 |
) |
|
|
760 |
|
Other operating expense |
|
— |
|
|
|
3,318 |
|
|
|
— |
|
|
|
3,464 |
|
Total operating costs and expenses |
|
56,416 |
|
|
|
51,541 |
|
|
|
209,245 |
|
|
|
220,329 |
|
Operating income |
|
53,963 |
|
|
|
44,232 |
|
|
|
200,738 |
|
|
|
135,310 |
|
Other expense: |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
9,863 |
|
|
|
10,256 |
|
|
|
39,762 |
|
|
|
42,826 |
|
Change in fair value of warrant liabilities |
|
(1,249 |
) |
|
|
25,037 |
|
|
|
(566 |
) |
|
|
(39,941 |
) |
Other expense (income) |
|
(78 |
) |
|
|
1,220 |
|
|
|
1,730 |
|
|
|
3,723 |
|
Total other expense |
|
8,536 |
|
|
|
36,513 |
|
|
|
40,926 |
|
|
|
6,608 |
|
Income before income taxes |
|
45,427 |
|
|
|
7,719 |
|
|
|
159,812 |
|
|
|
128,702 |
|
Income tax expense |
|
8,899 |
|
|
|
8,383 |
|
|
|
40,513 |
|
|
|
20,405 |
|
Net income (loss) |
|
36,528 |
|
|
|
(664 |
) |
|
|
119,299 |
|
|
|
108,297 |
|
Less: Net income attributable to the non-controlling interest |
|
— |
|
|
|
761 |
|
|
|
— |
|
|
|
3,621 |
|
Net income (loss) attributable to Class A shareholders |
$ |
36,528 |
|
|
$ |
(1,425 |
) |
|
$ |
119,299 |
|
|
$ |
104,676 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings (Losses) per Class A share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.27 |
|
|
$ |
(0.01 |
) |
|
$ |
0.91 |
|
|
$ |
0.84 |
|
Diluted |
$ |
0.25 |
|
|
$ |
(0.01 |
) |
|
$ |
0.86 |
|
|
$ |
0.51 |
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
134,247,010 |
|
|
|
127,959,039 |
|
|
|
131,571,733 |
|
|
|
124,927,535 |
|
Diluted |
|
138,435,782 |
|
|
|
128,352,959 |
|
|
|
138,198,176 |
|
|
|
127,723,488 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, amounts in thousands) |
|||||||
|
Year Ended |
||||||
|
|
|
|
||||
Operating activities |
|
|
|
||||
Net income |
$ |
119,299 |
|
|
$ |
108,297 |
|
Depreciation and amortization |
|
51,681 |
|
|
|
54,940 |
|
Impairment and loss on sale of assets |
|
— |
|
|
|
3,329 |
|
Debt discount (premium) amortization |
|
1,238 |
|
|
|
1,289 |
|
Tax receivable agreement remeasurement |
|
(1,409 |
) |
|
|
760 |
|
Change in fair value of warrant liabilities |
|
(566 |
) |
|
|
(39,941 |
) |
Unrealized loss (gain) on foreign currency |
|
(503 |
) |
|
|
2,061 |
|
Non-cash lease expense |
|
1,247 |
|
|
|
571 |
|
Share-based compensation |
|
9,585 |
|
|
|
8,671 |
|
Deferred taxes |
|
18,995 |
|
|
|
16,806 |
|
Change in operating assets and liabilities, net of acquisitions and dispositions: |
|
|
|
||||
Accounts receivable |
|
(22,728 |
) |
|
|
4,434 |
|
Inventories |
|
(3,465 |
) |
|
|
5,824 |
|
Prepaids and other current assets |
|
9,876 |
|
|
|
(5,301 |
) |
Accounts payable and accrued expenses |
|
13,723 |
|
|
|
1,900 |
|
Customer trade allowances |
|
6,056 |
|
|
|
(4,397 |
) |
Net cash provided by operating activities |
|
203,029 |
|
|
|
159,243 |
|
|
|
|
|
||||
Investing activities |
|
|
|
||||
Purchases of property and equipment |
|
(60,803 |
) |
|
|
(51,983 |
) |
Acquisition of business, net of cash |
|
— |
|
|
|
(316,013 |
) |
Acquisition and development of software assets |
|
(4,622 |
) |
|
|
(6,269 |
) |
Net cash used in investing activities |
|
(65,425 |
) |
|
|
(374,265 |
) |
|
|
|
|
||||
Financing activities |
|
|
|
||||
Repayments of long-term debt and financing lease obligations |
|
(11,167 |
) |
|
|
(11,168 |
) |
Proceeds from long-term debt origination, net of fees paid |
|
— |
|
|
|
136,888 |
|
Distributions to non-controlling interest |
|
— |
|
|
|
(3,422 |
) |
Repurchase of warrants |
|
— |
|
|
|
(2,000 |
) |
Repurchase of common stock |
|
(53,172 |
) |
|
|
(6,000 |
) |
Payment of taxes related to the net issuance of employee stock awards |
|
(1,767 |
) |
|
|
(1,440 |
) |
Payments on tax receivable agreement |
|
(9,270 |
) |
|
|
(10,327 |
) |
Cash received from exercise of options and warrants, net of fees |
|
14,121 |
|
|
|
690 |
|
Net cash provided by (used in) financing activities |
|
(61,255 |
) |
|
|
103,221 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
(224 |
) |
|
|
(252 |
) |
Net increase (decrease) in cash and cash equivalents |
|
76,125 |
|
|
|
(112,053 |
) |
Cash and cash equivalents at beginning of period |
|
173,034 |
|
|
|
285,087 |
|
Cash and cash equivalents at end of period |
$ |
249,159 |
|
|
$ |
173,034 |
|
|
|
|
|
||||
Supplemental Disclosures of Cash Flow Information: |
|
|
|
||||
Cash paid during the period for: |
|
|
|
||||
Interest |
$ |
38,567 |
|
|
$ |
41,776 |
|
Taxes paid |
$ |
12,081 |
|
|
$ |
5,825 |
|
Supplemental disclosure of non-cash investing: |
|
|
|
||||
Accrued capital expenditures |
$ |
2,244 |
|
|
$ |
4,718 |
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Adjusted net revenue, adjusted gross profit, adjusted gross margin, adjusted operating income, adjusted net income, adjusted net income margin, adjusted Class A net income, adjusted EBITDA, adjusted EBITDA margin, adjusted diluted shares and adjusted EPS collectively referred to as “Non-GAAP Financial Measures,” are commonly used in the Company’s industry and should not be construed as an alternative to net revenue, gross profit, operating income, net income, net income margin, net income attributed to Class A stockholders, diluted shares outstanding or earnings per share as indicators of operating performance (as determined in accordance with GAAP). These Non-GAAP Financial Measures may not be comparable to similarly titled measures reported by other companies. The Company has included these Non-GAAP Financial Measures because it believes the measures provide management and investors with additional information to measure the Company’s performance, estimate the Company’s value and evaluate the Company’s ability to service debt.
Non-GAAP Financial Measures are adjusted to exclude certain items that affect comparability. The adjustments are itemized in the tables below. You are encouraged to evaluate these adjustments and the reason the Company considers them appropriate for supplemental analysis. In evaluating adjustments, you should be aware that in the future, the Company may incur expenses that are the same as or similar to some of the adjustments set forth below. The presentation of Non-GAAP Financial Measures should not be construed as an inference that future results will be unaffected by unusual or recurring items.
The Company defines adjusted EBITDA as net income adjusted to exclude (i) interest expense, net, (ii) depreciation and amortization (iii) income taxes and (iv) share-based compensation, as further adjusted to eliminate the impact of certain items that the Company does not consider indicative of its ongoing operating performance. Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of the Company’s results as reported under GAAP. For example, adjusted EBITDA:
- does not reflect the Company’s capital expenditures, future requirements for capital expenditures or contractual commitments;
- does not reflect changes in, or cash requirements for, the Company’s working capital needs;
- does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on the Company’s debt; and
- does not reflect payments related to income taxes, the tax receivable agreement or distributions to the non-controlling interest to reimburse its tax liability.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited, amounts in thousands, except per share data) |
|||||||||||||||||||||
|
Three Months Ended |
||||||||||||||||||||
|
Gross
|
|
Gross
|
|
Operating
|
|
Net
|
|
Net Income
|
|
Diluted
|
||||||||||
GAAP results |
$ |
110,379 |
|
37.1 |
% |
|
$ |
53,963 |
|
|
$ |
36,528 |
|
|
12.3 |
% |
|
$ |
0.25 |
|
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency remeasurement |
|
— |
|
|
— |
|
|
|
— |
|
|
|
(327 |
) |
|
(0.1 |
) |
|
|
— |
|
Project consulting costs (1) |
|
— |
|
|
— |
|
|
|
3,578 |
|
|
|
3,578 |
|
|
1.2 |
|
|
|
0.03 |
|
Change in fair value of warrant liabilities |
|
— |
|
|
— |
|
|
|
— |
|
|
|
(1,249 |
) |
|
(0.4 |
) |
|
|
(0.01 |
) |
Tax receivable agreement remeasurement |
|
— |
|
|
— |
|
|
|
(1,409 |
) |
|
|
(1,409 |
) |
|
(0.5 |
) |
|
|
— |
|
Other (2) |
|
176 |
|
|
0.1 |
|
|
|
755 |
|
|
|
1,004 |
|
|
0.3 |
|
|
|
0.01 |
|
Remeasurement of tax liabilities |
|
— |
|
|
— |
|
|
|
— |
|
|
|
(3,357 |
) |
|
(1.1 |
) |
|
|
(0.02 |
) |
Tax impact of adjustments |
|
— |
|
|
— |
|
|
|
— |
|
|
|
(769 |
) |
|
(0.3 |
) |
|
|
(0.01 |
) |
Adjusted Non-GAAP results |
$ |
110,555 |
|
|
37.2 |
% |
|
$ |
56,887 |
|
|
|
33,999 |
|
|
11.4 |
|
|
$ |
0.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income tax |
|
|
|
|
|
|
|
13,025 |
|
|
4.4 |
|
|
|
|||||||
Interest expense |
|
|
|
|
|
|
|
9,863 |
|
|
3.3 |
|
|
|
|||||||
Depreciation and amortization |
|
|
|
|
|
|
|
13,689 |
|
|
4.6 |
|
|
|
|||||||
Share-based compensation |
|
|
|
|
|
|
|
2,580 |
|
|
0.9 |
|
|
|
|||||||
Adjusted EBITDA |
|
|
|
|
|
|
$ |
73,156 |
|
|
24.6 |
% |
|
|
(1) |
Project consulting costs are included in general and administrative on the consolidated statement of operations. |
(2)
|
Costs related to certain corporate initiatives, including |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited, amounts in thousands, except per share data) |
||||||||||||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||||||||||
|
Gross
|
|
Gross
|
|
Operating
|
|
Net
|
|
Net Income
|
|
Class A
|
|
Diluted
|
|
Diluted
|
|||||||||||||
GAAP results |
$ |
95,773 |
|
37.4 |
% |
|
$ |
44,232 |
|
$ |
(664 |
) |
|
(0.3 |
)% |
|
$ |
(1,425 |
) |
|
128,353 |
|
$ |
(0.01 |
) |
|||
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Foreign currency remeasurement |
|
— |
|
|
— |
|
|
|
— |
|
|
|
671 |
|
|
0.3 |
|
|
|
649 |
|
|
— |
|
|
|
0.01 |
|
Acquisition, disposal and integration related costs (1) |
|
— |
|
|
— |
|
|
|
309 |
|
|
|
309 |
|
|
0.1 |
|
|
|
299 |
|
|
— |
|
|
|
— |
|
Tax receivable agreement remeasurement |
|
— |
|
|
— |
|
|
|
150 |
|
|
|
150 |
|
|
0.1 |
|
|
|
150 |
|
|
— |
|
|
|
— |
|
Impairment of property and equipment, intangible assets and goodwill |
|
— |
|
|
— |
|
|
|
3,009 |
|
|
|
3,009 |
|
|
1.2 |
|
|
|
2,909 |
|
|
— |
|
|
|
0.02 |
|
Change in fair value of warrant liabilities |
|
— |
|
|
— |
|
|
|
— |
|
|
|
25,037 |
|
|
9.8 |
|
|
|
25,037 |
|
|
4,050 |
|
|
|
0.19 |
|
Other |
|
— |
|
|
— |
|
|
|
— |
|
|
|
549 |
|
|
0.2 |
|
|
|
531 |
|
|
— |
|
|
|
— |
|
Remeasurement of tax liabilities |
|
— |
|
|
— |
|
|
|
— |
|
|
|
767 |
|
|
0.3 |
|
|
|
767 |
|
|
— |
|
|
|
0.01 |
|
Tax impact of adjustments |
|
— |
|
|
— |
|
|
|
— |
|
|
|
(1,089 |
) |
|
(0.4 |
) |
|
|
(1,089 |
) |
|
— |
|
|
|
(0.01 |
) |
Adjusted Non-GAAP results |
$ |
95,773 |
|
|
37.4 |
% |
|
$ |
47,700 |
|
|
|
28,739 |
|
|
11.3 |
|
|
$ |
27,828 |
|
|
132,403 |
|
|
$ |
0.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income tax |
|
|
|
|
|
|
|
8,705 |
|
|
3.4 |
|
|
|
|
|
|
|
||||||||||
Interest expense |
|
|
|
|
|
|
|
10,256 |
|
|
4.0 |
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization |
|
|
|
|
|
|
|
13,941 |
|
|
5.4 |
|
|
|
|
|
|
|
||||||||||
Share-based compensation |
|
|
|
|
|
|
|
2,088 |
|
|
0.8 |
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA |
|
|
|
|
|
|
$ |
63,729 |
|
|
24.9 |
% |
|
|
|
|
|
|
(1) |
Acquisition, disposal and integration costs are included in general and administrative expenses on the consolidated statement of operations. |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited, amounts in thousands, except per share data) |
||||||||||||||||||||||
|
Year Ended |
|||||||||||||||||||||
|
|
Gross
|
|
Gross
|
|
Operating
|
|
Net
|
|
Net Income
|
|
Diluted
|
||||||||||
GAAP Results |
|
$ |
409,983 |
|
35.9 |
% |
|
$ |
200,738 |
|
|
$ |
119,299 |
|
|
10.4 |
% |
|
$ |
0.86 |
|
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency remeasurement |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(505 |
) |
|
— |
|
|
|
— |
|
Project consulting costs (1) |
|
|
— |
|
|
— |
|
|
|
6,081 |
|
|
|
6,081 |
|
|
0.5 |
|
|
|
0.04 |
|
Change in fair value of warrant liabilities |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(566 |
) |
|
— |
|
|
|
— |
|
Tax receivable agreement remeasurement |
|
|
— |
|
|
— |
|
|
|
(1,409 |
) |
|
|
(1,409 |
) |
|
(0.1 |
) |
|
|
(0.01 |
) |
Other (2) |
|
|
704 |
|
|
0.1 |
|
|
|
2,107 |
|
|
|
4,338 |
|
|
0.4 |
|
|
|
0.03 |
|
Remeasurement of tax liabilities |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(3,357 |
) |
|
(0.3 |
) |
|
|
(0.03 |
) |
Tax impact of adjustments |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(1,871 |
) |
|
(0.2 |
) |
|
|
(0.01 |
) |
Adjusted Non-GAAP results |
|
$ |
410,687 |
|
|
36.0 |
% |
|
$ |
207,517 |
|
|
|
122,010 |
|
|
10.7 |
|
|
$ |
0.88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income tax |
|
|
|
|
|
|
|
|
45,741 |
|
|
4.0 |
|
|
|
|||||||
Interest expense |
|
|
|
|
|
|
|
|
39,762 |
|
|
3.5 |
|
|
|
|||||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
51,681 |
|
|
4.5 |
|
|
|
|||||||
Share-based compensation |
|
|
|
|
|
|
|
|
9,585 |
|
|
0.8 |
|
|
|
|||||||
Adjusted EBITDA |
|
|
|
|
|
|
|
$ |
268,779 |
|
|
23.5 |
% |
|
|
(1) |
Project consulting costs are included in general and administrative on the consolidated statement of operations. |
(2)
|
Costs related to certain corporate initiatives, including |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited, amounts in thousands, except per share data) |
|||||||||||||||||||||||||||||
|
Year Ended |
||||||||||||||||||||||||||||
|
Net
|
|
Gross
|
|
Gross
|
|
|
Operating
|
|
Net
|
|
Net Income
|
|
Class A
|
|
Diluted
|
|||||||||||||
GAAP results |
$ |
1,016,609 |
|
$ |
355,639 |
|
35.0 |
% |
|
$ |
135,310 |
|
$ |
108,297 |
|
|
10.7 |
% |
|
$ |
104,676 |
|
|
$ |
0.51 |
|
|||
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Foreign currency remeasurement |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
2,065 |
|
|
0.2 |
|
|
|
1,966 |
|
|
|
0.02 |
|
Acquisition, disposal and integration related costs (1) |
|
6,821 |
|
|
|
7,963 |
|
|
0.5 |
|
|
|
29,166 |
|
|
|
29,166 |
|
|
2.7 |
|
|
|
27,569 |
|
|
|
0.22 |
|
Facility transition costs (2) |
|
— |
|
|
|
3,681 |
|
|
0.4 |
|
|
|
5,710 |
|
|
|
5,710 |
|
|
0.6 |
|
|
|
5,396 |
|
|
|
0.04 |
|
Impairment of property and equipment |
|
— |
|
|
|
— |
|
|
— |
|
|
|
3,009 |
|
|
|
3,009 |
|
|
0.3 |
|
|
|
2,909 |
|
|
|
0.02 |
|
Tax receivable agreement remeasurement |
|
— |
|
|
|
— |
|
|
— |
|
|
|
760 |
|
|
|
760 |
|
|
0.1 |
|
|
|
760 |
|
|
|
— |
|
COVID-19 costs (3) |
|
— |
|
|
|
2,082 |
|
|
0.2 |
|
|
|
2,388 |
|
|
|
2,388 |
|
|
0.2 |
|
|
|
2,257 |
|
|
|
0.02 |
|
Change in fair value of warrant liabilities |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(39,941 |
) |
|
(3.9 |
) |
|
|
(39,941 |
) |
|
|
— |
|
Other |
|
— |
|
|
|
— |
|
|
— |
|
|
|
100 |
|
|
|
1,766 |
|
|
0.2 |
|
|
|
1,681 |
|
|
|
0.01 |
|
Remeasurement of tax liabilities |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(455 |
) |
|
(0.1 |
) |
|
|
(455 |
) |
|
|
— |
|
Tax impact of adjustments |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(10,961 |
) |
|
(1.1 |
) |
|
|
(10,961 |
) |
|
|
(0.09 |
) |
Adjusted Non-GAAP results |
$ |
1,023,430 |
|
|
$ |
369,365 |
|
|
36.1 |
% |
|
$ |
176,443 |
|
|
|
101,804 |
|
|
9.7 |
|
|
$ |
95,857 |
|
|
$ |
0.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income tax |
|
|
|
|
|
|
|
|
|
|
31,821 |
|
|
3.1 |
|
|
|
|
|
||||||||||
Interest expense |
|
|
|
|
|
|
|
|
|
|
42,826 |
|
|
4.2 |
|
|
|
|
|
||||||||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
54,940 |
|
|
5.4 |
|
|
|
|
|
||||||||||
Share-based compensation |
|
|
|
|
|
|
|
|
|
|
8,671 |
|
|
0.9 |
|
|
|
|
|
||||||||||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
$ |
240,062 |
|
|
23.5 |
% |
|
|
|
|
(1)
|
Adjustments to net revenue represent initial slotting fees paid to customers to obtain space in customer warehouses for the Voortman transition. Adjustments to operating costs included |
(2) |
Facility transition costs are included in general and administrative expenses on the consolidated statement of operations. |
(3)
|
COVID-19 costs are included in costs of goods sold and general and administrative expenses on the consolidated statement of operations. Total COVID-19 non-GAAP adjustments primarily consist of costs of incremental cleaning and sanitation, personal protective equipment and employee bonuses in the first half of 2020. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220301005486/en/
Investor contact
816-701-4662
asharma@hostessbrands.com
Media contact
952-797-6839
lauren.bettenga@clynch.com
Source:
FAQ
What are Hostess Brands' Q4 2021 financial results for TWNK?
What is the adjusted EBITDA for Hostess Brands for 2021?
What is Hostess Brands' growth outlook for 2022?