Hostess Brands Reports Third Quarter 2022 Results
Hostess Brands (TWNK) reports remarkable financial growth for Q3 2022, with net revenue hitting $346.2 million, a 20.2% increase from last year. Adjusted EBITDA rose by 12.2% to $72.7 million, while adjusted EPS increased to $0.23. The company is optimistic, raising its full-year guidance for net revenue growth to 17% - 19%, alongside adjusted EBITDA and EPS forecasts. However, gross margins declined due to 18.5% inflation challenges. Cash reserves stand at $232.7 million, with share repurchases totaling $94.1 million year-to-date.
- Net revenue increased by 20.2% to $346.2 million.
- Adjusted EBITDA grew by 12.2% to $72.7 million.
- Adjusted EPS rose to $0.23, reflecting strong performance.
- Full-year net revenue guidance raised to 17% - 19% growth.
- Share repurchases amounted to $94.1 million year-to-date.
- Gross profit margin decreased by 105 basis points due to inflation and supply chain issues.
- Adjusted EBITDA margin declined to 21.0% from 22.5% in the previous year.
Double-digit Top and Bottom Line Growth
Raises Full Year Sales Growth, Adjusted EBITDA and Adjusted EPS Guidance
“Hostess Brands delivered another quarter of record-high sales, highlighting the strength of our snacking-oriented portfolio, impactful innovation that targets growing snacking occasions, and successful pricing actions to offset elevated inflation. The resiliency of our operating model and the agility of our talented team enabled us to deliver double-digit adjusted EBITDA growth in a volatile environment," commented
He continued, “Given our strong year-to-date results and continued momentum,
Third Quarter 2022 Financial Highlights1
-
Net revenue of
increased$346.2 million 20.2% from the same period last year as higher price/mix accounted for20.1% of the quarterly growth, with remaining growth attributed to higher volume.
-
Gross profit increased
16.6% to , or$115.4 million 33.3% of net revenue, while on an adjusted basis, gross profit increased16.9% to , or$116.1 million 33.5% of net revenue. Third quarter gross margins declined by 105 basis points, 93 basis points on an adjusted basis, from year-ago levels as favorable price/mix and productivity were more than offset by18.5% inflation and inefficiencies caused by continued supply-chain fragility.
-
Net income was
or$66.3 million per diluted share driven in part by a$0.48 gain on receipt of Voortman insurance proceeds. Adjusted net income and adjusted EPS, which exclude the receipt of Voortman insurance proceeds, were$33.0 million , and$32.2 million , respectively, both increased in comparison to the same period last year.$0.23
-
Adjusted EBITDA increased
12.2% to . Adjusted EBITDA margin of$72.7 million 21.0% declined from22.5% in the prior year period due to lower gross margins and higher operating expenses.
-
Cash and cash equivalents and short-term investments were
as of$232.7 million September 30, 2022 , resulting in a net leverage ratio of 2.9x.
-
Capital expenditures increased to
from$63.8 million in the prior-year period. The Company now expects capital expenditures to be in the$36.7 million -$125 range in 2022.$135 million
-
Raising full year 2022 net revenue guidance to
17% -19% growth, as well as raising full year adjusted EBITDA and adjusted EPS guidance to -$290 and$293 million -$0.96 , respectively.$0.98
Other Highlights
-
The Company’s Sweet Baked Goods point-of-sale (“POS”) increased
17.0% , maintaining its share of category dollar sales at21.4% .
-
Voortman® branded POS grew
28.8% and its share of the Cookie category increased by 26 basis points driven in part by the ongoing momentum in the faster-growing sugar-free sub-segment.
- Full year inflation is expected to be in the high teens for the full year, in-line with previous estimates.
-
Repurchased
of shares year-to-date through$94.1 million September 30, 2022 , the majority of which were under the previously announced share repurchase program.$150 million
- Year-to-date planned increase in advertising and marketing driving consumer demand. Incremental investments planned in the fourth quarter to support the launch of our Bouncers™ innovation.
Guidance and Outlook
The Company is raising its full year 2022 guidance:
|
Updated Guidance |
|
Previous Guidance |
|
Net revenue growth |
|
|
At least |
|
Adjusted EBITDA |
|
|
Towards the higher end of |
|
Adjusted EPS (diluted) |
|
|
|
|
Capital expenditures |
(Including capacity expansion) |
|
(Including capacity expansion) |
|
Effective tax rate |
|
|
|
|
Weighted average shares outstanding |
~138 million |
|
138.5 – 139.5 million |
The Company provides guidance 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, 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.
Third Quarter 2022 Compared to Third Quarter 2021
Net revenue was
Gross profit was
Operating income was
Adjusted EBITDA of
The Company’s effective tax rate was
Net income was
Operating cash flows for the nine months ended
Conference Call and Webcast
The Company will host a conference call and webcast with an accompanying presentation today,
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; 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 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. 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.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, amounts in thousands, except shares and per share data)
|
||||||||
|
|
|
|
|
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
$ |
190,828 |
|
|
|
$ |
249,159 |
|
Short-term investments |
|
41,891 |
|
|
|
|
— |
|
Accounts receivable, net |
|
199,917 |
|
|
|
|
148,180 |
|
Inventories |
|
65,444 |
|
|
|
|
52,813 |
|
Prepaids and other current assets |
|
10,914 |
|
|
|
|
10,564 |
|
Total current assets |
|
508,994 |
|
|
|
|
460,716 |
|
Property and equipment, net |
|
385,085 |
|
|
|
|
335,305 |
|
Intangible assets, net |
|
1,926,758 |
|
|
|
|
1,944,392 |
|
|
|
706,615 |
|
|
|
|
706,615 |
|
Other assets, net |
|
72,732 |
|
|
|
|
19,283 |
|
Total assets |
$ |
3,600,184 |
|
|
|
$ |
3,466,311 |
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Long-term debt and lease obligations payable within one year |
$ |
14,251 |
|
|
|
$ |
14,170 |
|
Tax receivable agreement payments payable within one year |
|
11,100 |
|
|
|
|
11,600 |
|
Accounts payable |
|
95,958 |
|
|
|
|
68,104 |
|
Customer trade allowances |
|
68,799 |
|
|
|
|
52,746 |
|
Accrued expenses and other current liabilities |
|
54,513 |
|
|
|
|
47,009 |
|
Total current liabilities |
|
244,621 |
|
|
|
|
193,629 |
|
Long-term debt and lease obligations |
|
1,088,914 |
|
|
|
|
1,099,975 |
|
Tax receivable agreement obligations |
|
124,592 |
|
|
|
|
134,265 |
|
Deferred tax liability |
|
343,009 |
|
|
|
|
317,847 |
|
Other long-term liabilities |
|
1,568 |
|
|
|
|
1,605 |
|
Total liabilities |
|
1,802,704 |
|
|
|
|
1,747,321 |
|
|
|
|
|
|
||||
Class A common stock, |
|
14 |
|
|
|
|
14 |
|
Additional paid in capital |
|
1,307,813 |
|
|
|
|
1,303,254 |
|
Accumulated other comprehensive income (loss) |
|
36,172 |
|
|
|
|
(506 |
) |
Retained earnings |
|
606,703 |
|
|
|
|
475,400 |
|
|
|
(153,222 |
) |
|
|
|
(59,172 |
) |
Stockholders’ equity |
|
1,797,480 |
|
|
|
|
1,718,990 |
|
Total liabilities and stockholders’ equity |
$ |
3,600,184 |
|
|
|
$ |
3,466,311 |
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, amounts in thousands, except shares and per share data)
|
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Net revenue |
$ |
346,226 |
|
|
$ |
287,969 |
|
$ |
1,018,749 |
|
|
$ |
844,875 |
||
Cost of goods sold |
|
230,805 |
|
|
|
188,990 |
|
|
|
675,004 |
|
|
|
545,271 |
|
Gross profit |
|
115,421 |
|
|
|
98,979 |
|
|
|
343,745 |
|
|
|
299,604 |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
||||||||
Advertising and marketing |
|
15,816 |
|
|
|
14,767 |
|
|
|
43,353 |
|
|
|
39,692 |
|
Selling |
|
9,696 |
|
|
|
8,166 |
|
|
|
29,610 |
|
|
|
26,250 |
|
General and administrative |
|
30,502 |
|
|
|
23,565 |
|
|
|
90,301 |
|
|
|
69,254 |
|
Amortization of customer relationships |
|
5,878 |
|
|
|
5,877 |
|
|
|
17,634 |
|
|
|
17,633 |
|
Tax receivable agreement remeasurement |
|
(860 |
) |
|
|
— |
|
|
|
(860 |
) |
|
|
— |
|
Total operating costs and expenses |
|
61,032 |
|
|
|
52,375 |
|
|
|
180,038 |
|
|
|
152,829 |
|
Operating income |
|
54,389 |
|
|
|
46,604 |
|
|
|
163,707 |
|
|
|
146,775 |
|
Other expense (income): |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
10,276 |
|
|
|
9,928 |
|
|
|
29,683 |
|
|
|
29,899 |
|
Change in fair value of warrant liabilities |
|
— |
|
|
|
228 |
|
|
|
— |
|
|
|
683 |
|
Other expense (income) |
|
(31,921 |
) |
|
|
378 |
|
|
|
(31,992 |
) |
|
|
1,808 |
|
Total other expense (income) |
|
(21,645 |
) |
|
|
10,534 |
|
|
|
(2,309 |
) |
|
|
32,390 |
|
Income before income taxes |
|
76,034 |
|
|
|
36,070 |
|
|
|
166,016 |
|
|
|
114,385 |
|
Income tax expense |
|
9,765 |
|
|
|
9,878 |
|
|
|
34,713 |
|
|
|
31,614 |
|
Net income |
$ |
66,269 |
|
|
$ |
26,192 |
|
|
$ |
131,303 |
|
|
$ |
82,771 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings per Class A share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.49 |
|
|
$ |
0.20 |
|
|
$ |
0.95 |
|
|
$ |
0.63 |
|
Diluted |
$ |
0.48 |
|
|
$ |
0.19 |
|
|
$ |
0.95 |
|
|
$ |
0.60 |
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
136,436,428 |
|
|
|
129,846,551 |
|
|
|
137,636,441 |
|
|
|
130,679,974 |
|
Diluted |
|
137,604,256 |
|
|
|
138,058,866 |
|
|
|
138,702,172 |
|
|
|
138,036,371 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, amounts in thousands)
|
||||||||
|
Nine Months Ended |
|||||||
|
|
|
|
|
||||
Operating activities |
|
|
|
|
||||
Net income |
$ |
131,303 |
|
|
|
$ |
82,771 |
|
Depreciation and amortization |
|
44,500 |
|
|
|
|
37,992 |
|
Debt discount amortization |
|
921 |
|
|
|
|
931 |
|
Tax receivable agreement remeasurement |
|
(860 |
) |
|
|
|
— |
|
Change in fair value of warrant liabilities |
|
— |
|
|
|
|
683 |
|
Unrealized foreign exchange losses (gains) |
|
790 |
|
|
|
|
(177 |
) |
Non-cash lease expense |
|
375 |
|
|
|
|
971 |
|
Share-based compensation |
|
7,600 |
|
|
|
|
7,005 |
|
Deferred taxes |
|
12,104 |
|
|
|
|
18,280 |
|
Change in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
(51,904 |
) |
|
|
|
(31,240 |
) |
Inventories |
|
(12,631 |
) |
|
|
|
39 |
|
Prepaids and other current assets |
|
(468 |
) |
|
|
|
13,991 |
|
Accounts payable and accrued expenses |
|
16,332 |
|
|
|
|
7,949 |
|
Customer trade allowances |
|
16,143 |
|
|
|
|
8,441 |
|
Net cash provided by operating activities |
|
164,205 |
|
|
|
|
147,636 |
|
|
|
|
|
|
||||
Investing activities |
|
|
|
|
||||
Purchases of property and equipment |
|
(55,240 |
) |
|
|
|
(33,360 |
) |
Acquisition of short-term investments |
|
(62,891 |
) |
|
|
|
— |
|
Proceeds from maturity of short-term investments |
|
21,000 |
|
|
|
|
— |
|
Acquisition and development of software assets |
|
(8,578 |
) |
|
|
|
(3,330 |
) |
Net cash used in investing activities |
|
(105,709 |
) |
|
|
|
(36,690 |
) |
|
|
|
|
|
||||
Financing activities |
|
|
|
|
||||
Repayments of long-term debt and lease obligations |
|
(8,375 |
) |
|
|
|
(8,375 |
) |
Repurchase of common stock |
|
(94,050 |
) |
|
|
|
(50,063 |
) |
Tax payments related to issuance of shares to employees |
|
(5,582 |
) |
|
|
|
(1,277 |
) |
Cash received from exercise of options and warrants |
|
2,541 |
|
|
|
|
13,285 |
|
Payments on tax receivable agreement |
|
(9,313 |
) |
|
|
|
(9,270 |
) |
Net cash used in financing activities |
|
(114,779 |
) |
|
|
|
(55,700 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
(2,048 |
) |
|
|
|
(184 |
) |
Net increase (decrease) in cash and cash equivalents |
|
(58,331 |
) |
|
|
|
55,062 |
|
Cash and cash equivalents at beginning of period |
|
249,159 |
|
|
|
|
173,034 |
|
Cash and cash equivalents at end of period |
$ |
190,828 |
|
|
|
$ |
228,096 |
|
|
|
|
|
|
||||
Supplemental Disclosures of Cash Flow Information: |
|
|
|
|
||||
Cash paid during the period for: |
|
|
|
|
||||
Interest, net of amounts capitalized |
$ |
29,342 |
|
|
|
$ |
29,019 |
|
Net taxes paid |
$ |
19,023 |
|
|
|
$ |
1,568 |
|
Supplemental disclosure of non-cash investing: |
|
|
|
|
||||
Accrued capital expenditures |
$ |
23,103 |
|
|
|
$ |
5,603 |
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Adjusted gross profit, adjusted gross profit margin, adjusted operating income, adjusted net income, adjusted net income margin, adjusted EBITDA, adjusted EBITDA margin 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 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 or the tax receivable agreement.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited, amounts in thousands, except percentages and per share data)
|
||||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||||
|
|
Gross Profit |
|
Gross
|
|
Operating
|
|
Net Income |
|
Net Income
|
|
Diluted EPS |
||||||||||
GAAP Results |
|
$ |
115,421 |
|
33.3 |
% |
|
$ |
54,389 |
|
|
$ |
66,269 |
|
|
19.1 |
% |
|
$ |
0.48 |
|
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency remeasurement |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
1,009 |
|
|
0.3 |
|
|
|
0.01 |
|
Tax receivable agreement remeasurement |
|
|
— |
|
|
— |
|
|
|
(860 |
) |
|
|
(860 |
) |
|
(0.3 |
) |
|
|
(0.01 |
) |
Gain on Voortman insurance proceeds (1) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(32,970 |
) |
|
(9.5 |
) |
|
|
(0.24 |
) |
Accelerated depreciation related to network optimization |
|
|
681 |
|
|
0.2 |
|
|
|
681 |
|
|
|
681 |
|
|
0.2 |
|
|
|
0.01 |
|
Other |
|
|
— |
|
|
— |
|
|
|
(17 |
) |
|
|
23 |
|
|
— |
|
|
|
— |
|
Remeasurement of tax liabilities |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(2,161 |
) |
|
(0.6 |
) |
|
|
(0.02 |
) |
Discrete income tax expense |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
644 |
|
|
0.2 |
|
|
|
— |
|
Tax impact of adjustments |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(462 |
) |
|
(0.1 |
) |
|
|
— |
|
Adjusted Non-GAAP results |
|
$ |
116,102 |
|
|
33.5 |
% |
|
$ |
54,193 |
|
|
|
32,173 |
|
|
9.3 |
|
|
$ |
0.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income tax |
|
|
|
|
|
|
|
|
11,744 |
|
|
3.4 |
|
|
|
|||||||
Interest expense |
|
|
|
|
|
|
|
|
10,276 |
|
|
3.0 |
|
|
|
|||||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
15,869 |
|
|
4.5 |
|
|
|
|||||||
Share-based compensation |
|
|
|
|
|
|
|
|
2,613 |
|
|
0.8 |
|
|
|
|||||||
Adjusted EBITDA |
|
|
|
|
|
|
|
$ |
72,675 |
|
|
21.0 |
% |
|
|
(1) Gain from receipt of insurance proceeds under the representation and warranty insurance policy purchased in connection with the Voortman acquisition in 2020 included in other expense (income) on the condensed consolidated statement of operations. |
|
Three Months Ended |
|||||||||||||||||||||
|
|
Gross Profit |
|
Gross
|
|
Operating
|
|
Net Income |
|
Net Income
|
|
Diluted EPS |
||||||||||
GAAP Results |
|
$ |
98,979 |
|
34.4 |
% |
|
$ |
46,604 |
|
$ |
26,192 |
|
|
9.1 |
% |
|
$ |
0.19 |
|||
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency remeasurement |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(249 |
) |
|
(0.1 |
) |
|
|
— |
|
Project consulting costs (1) |
|
|
— |
|
|
— |
|
|
|
1,604 |
|
|
|
1,604 |
|
|
0.6 |
|
|
|
0.01 |
|
Change in fair value of warrant liabilities |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
228 |
|
|
0.1 |
|
|
|
— |
|
Other (2) |
|
|
370 |
|
|
0.1 |
|
|
|
1,185 |
|
|
|
1,810 |
|
|
0.6 |
|
|
|
0.01 |
|
Tax impact of adjustments |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(674 |
) |
|
(0.2 |
) |
|
|
— |
|
Adjusted Non-GAAP results |
|
$ |
99,349 |
|
|
34.5 |
% |
|
$ |
49,393 |
|
|
|
28,911 |
|
|
10.1 |
|
|
$ |
0.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income tax |
|
|
|
|
|
|
|
|
10,552 |
|
|
3.7 |
|
|
|
|||||||
Interest expense |
|
|
|
|
|
|
|
|
9,928 |
|
|
3.4 |
|
|
|
|||||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
12,769 |
|
|
4.4 |
|
|
|
|||||||
Share-based compensation |
|
|
|
|
|
|
|
|
2,642 |
|
|
0.9 |
|
|
|
|||||||
Adjusted EBITDA |
|
|
|
|
|
|
|
$ |
64,802 |
|
|
22.5 |
% |
|
|
(1) Project consulting costs are included in general and administrative on the condensed consolidated statement of operations. |
(2) Costs related to certain corporate initiatives, of which |
|
|
Nine Months Ended |
||||||||||||||||||||
|
|
Gross Profit |
|
Gross
|
|
Operating
|
|
Net Income |
|
Net Income
|
|
Diluted EPS |
||||||||||
GAAP Results |
|
$ |
343,745 |
|
33.7 |
% |
|
$ |
163,707 |
|
|
$ |
131,303 |
|
|
12.9 |
% |
|
$ |
0.95 |
|
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency remeasurement |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
789 |
|
|
0.1 |
|
|
|
0.01 |
|
Project consulting costs (1) |
|
|
— |
|
|
— |
|
|
|
3,887 |
|
|
|
3,887 |
|
|
0.4 |
|
|
|
0.03 |
|
Tax receivable agreement remeasurement |
|
|
— |
|
|
— |
|
|
|
(860 |
) |
|
|
(860 |
) |
|
(0.1 |
) |
|
|
(0.01 |
) |
Gain on Voortman insurance proceeds (2) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(32,970 |
) |
|
(3.2 |
) |
|
|
(0.24 |
) |
Accelerated depreciation related to network optimization |
|
|
776 |
|
|
0.1 |
|
|
|
776 |
|
|
|
776 |
|
|
0.1 |
|
|
|
0.01 |
|
Other (3) |
|
|
161 |
|
|
— |
|
|
|
161 |
|
|
|
350 |
|
|
— |
|
|
|
— |
|
Remeasurement of tax liabilities |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(2,161 |
) |
|
(0.2 |
) |
|
|
(0.02 |
) |
Discrete income tax expense |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
1,156 |
|
|
0.1 |
|
|
|
0.01 |
|
Tax impact of adjustments |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(1,566 |
) |
|
(0.2 |
) |
|
|
(0.01 |
) |
Adjusted Non-GAAP results |
|
$ |
344,682 |
|
|
33.8 |
% |
|
$ |
167,671 |
|
|
|
100,704 |
|
|
9.9 |
|
|
$ |
0.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income tax |
|
|
|
|
|
|
|
|
37,284 |
|
|
3.7 |
|
|
|
|||||||
Interest expense |
|
|
|
|
|
|
|
|
29,683 |
|
|
2.9 |
|
|
|
|||||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
43,726 |
|
|
4.3 |
|
|
|
|||||||
Share-based compensation |
|
|
|
|
|
|
|
|
7,600 |
|
|
0.7 |
|
|
|
|||||||
Adjusted EBITDA |
|
|
|
|
|
|
|
$ |
218,997 |
|
|
21.5 |
% |
|
|
(1) Project consulting costs are included in general and administrative on the condensed consolidated statement of operations. |
(2) Gain from receipt of insurance proceeds under the representation and warranty insurance policy purchased in connection with the Voortman acquisition in 2020 included in other expense (income) on the condensed consolidated statement of operations. |
(3) Costs related to certain corporate initiatives, of which |
|
Nine Months Ended |
|||||||||||||||||||||
|
Gross Profit |
|
Gross
|
|
Operating
|
|
Net Income |
|
Net Income
|
|
Diluted EPS |
|||||||||||
GAAP Results |
$ |
299,604 |
|
35.5 |
% |
|
$ |
146,775 |
|
$ |
82,771 |
|
|
9.8 |
% |
|
$ |
0.60 |
|
|||
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Foreign currency remeasurement |
|
— |
|
|
— |
|
|
|
— |
|
|
|
(178 |
) |
|
— |
|
|
|
— |
|
|
Project consulting costs (1) |
|
— |
|
|
— |
|
|
|
2,503 |
|
|
|
2,503 |
|
|
0.3 |
|
|
|
0.02 |
|
|
Change in fair-value of warrant liabilities |
|
— |
|
|
— |
|
|
|
— |
|
|
|
683 |
|
|
0.1 |
|
|
|
— |
|
|
Other (2) |
|
528 |
|
|
— |
|
|
|
1,352 |
|
|
|
3,334 |
|
|
0.4 |
|
|
|
0.03 |
|
|
Tax impact of adjustments |
|
— |
|
|
— |
|
|
|
— |
|
|
|
(1,102 |
) |
|
(0.1 |
) |
|
|
(0.01 |
) |
|
Adjusted Non-GAAP results |
$ |
300,132 |
|
|
35.5 |
% |
|
$ |
150,630 |
|
|
$ |
88,011 |
|
|
10.5 |
|
|
$ |
0.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income tax |
|
|
|
|
|
|
|
32,716 |
|
|
3.9 |
|
|
|
||||||||
Interest expense |
|
|
|
|
|
|
|
29,899 |
|
|
3.5 |
|
|
|
||||||||
Depreciation and amortization |
|
|
|
|
|
|
|
37,992 |
|
|
4.5 |
|
|
|
||||||||
Share-based compensation |
|
|
|
|
|
|
|
7,005 |
|
|
0.8 |
|
|
|
||||||||
Adjusted EBITDA |
|
|
|
|
|
|
$ |
195,623 |
|
|
23.2 |
% |
|
|
(1) Project consulting costs are included in general and administrative on the condensed consolidated statement of operations. |
(2) Costs related to certain corporate initiatives, of which |
View source version on businesswire.com: https://www.businesswire.com/news/home/20221102006006/en/
Investor Contact:
asharma@hostessbrands.com
Media Contact:
carly.schesel@clynch.com
Source:
FAQ
What were Hostess Brands' financial results for Q3 2022 (TWNK)?
How has Hostess Brands (TWNK) adjusted its 2022 guidance?
What challenges did Hostess Brands face in Q3 2022?
What were Hostess Brands' share repurchase activities in 2022?