Vital Farms Reports Third Quarter 2024 Financial Results and Raises Fiscal Year 2024 Outlook
Vital Farms (VITL) reported strong Q3 2024 financial results with net revenue increasing 31.3% to $145.0 million compared to $110.4 million in Q3 2023. The company achieved notable improvements with gross margin expanding to 36.9%, net income reaching $7.4 million, and adjusted EBITDA of $15.2 million. Based on strong performance, Vital Farms raised its fiscal year 2024 guidance, now expecting net revenue of at least $600 million and adjusted EBITDA of at least $80 million. The company maintains its trajectory toward reaching its $1 billion net revenue target by 2027, supported by expansion to over 375 family farms and development of a new egg facility in Indiana.
Vital Farms (VITL) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con un aumento del fatturato netto del 31,3% a 145,0 milioni di dollari rispetto ai 110,4 milioni di dollari del terzo trimestre del 2023. L'azienda ha ottenuto miglioramenti significativi, con un margine lordo che si è ampliato al 36,9%, un reddito netto di 7,4 milioni di dollari e un EBITDA rettificato di 15,2 milioni di dollari. Sulla base di questa forte performance, Vital Farms ha rivisto al rialzo le previsioni per l'anno fiscale 2024, ora prevedendo un fatturato netto di almeno 600 milioni di dollari e un EBITDA rettificato di almeno 80 milioni di dollari. L'azienda mantiene il suo obiettivo di raggiungere un fatturato netto di 1 miliardo di dollari entro il 2027, supportata dall'espansione a oltre 375 fattorie familiari e dallo sviluppo di una nuova struttura per la produzione di uova in Indiana.
Vital Farms (VITL) reportó resultados financieros sólidos en el tercer trimestre de 2024, con un aumento del ingreso neto del 31,3% a 145,0 millones de dólares en comparación con los 110,4 millones de dólares del tercer trimestre de 2023. La compañía logró mejoras notables, con un margen bruto que se amplió al 36,9%, un ingreso neto de 7,4 millones de dólares y un EBITDA ajustado de 15,2 millones de dólares. Basado en este sólido rendimiento, Vital Farms incrementó sus previsiones para el año fiscal 2024, ahora esperando ingresos netos de al menos 600 millones de dólares y un EBITDA ajustado de al menos 80 millones de dólares. La compañía mantiene su trayectoria hacia la meta de alcanzar ingresos netos de 1.000 millones de dólares para 2027, apoyada por la expansión a más de 375 granjas familiares y el desarrollo de una nueva instalación de huevos en Indiana.
비탈 팜스 (VITL)는 2024년 3분기 강력한 재무 결과를 보고했으며, 순매출은 31.3% 증가하여 1억 4,500만 달러에 달하고, 2023년 3분기의 1억 1,040만 달러와 비교되었습니다. 이 회사는 총 마진이 36.9%로 확대되고, 순이익이 740만 달러, 조정 EBITDA가 1,520만 달러에 달하는 눈에 띄는 개선을 달성했습니다. 비탈 팜스는 강력한 실적을 바탕으로 2024 회계연도 가이던스를 상향 조정했으며, 이제 순매출이 최소 6억 달러, 조정 EBITDA가 최소 8천만 달러에 이를 것으로 예상하고 있습니다. 이 회사는 2027년까지 10억 달러의 순매출 목표를 달성하기 위해 375개 이상의 가족 농장으로의 확장과 인디애나의 새로운 계란 시설 개발을 지원하고 있습니다.
Vital Farms (VITL) a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec une augmentation du chiffre d'affaires net de 31,3% pour atteindre 145,0 millions de dollars contre 110,4 millions de dollars au troisième trimestre 2023. L'entreprise a réalisé des améliorations notables, avec une marge brute augmentant à 36,9%, un revenu net atteignant 7,4 millions de dollars et un EBITDA ajusté de 15,2 millions de dollars. En raison de cette performance solide, Vital Farms a relevé ses prévisions pour l'exercice fiscal 2024, s'attendant désormais à un chiffre d'affaires net d'au moins 600 millions de dollars et un EBITDA ajusté d'au moins 80 millions de dollars. L'entreprise maintient sa trajectoire vers l'objectif d'atteindre 1 milliard de dollars de chiffre d'affaires net d'ici 2027, soutenue par une expansion à plus de 375 fermes familiales et le développement d'une nouvelle installation d'œufs dans l'Indiana.
Vital Farms (VITL) hat im dritten Quartal 2024 starke Finanzzahlen veröffentlicht, mit einem Umsatzanstieg von 31,3% auf 145,0 Millionen Dollar im Vergleich zu 110,4 Millionen Dollar im dritten Quartal 2023. Das Unternehmen erzielte bemerkenswerte Verbesserungen, mit einer Bruttomarge von 36,9%, einem Nettogewinn von 7,4 Millionen Dollar und einem bereinigten EBITDA von 15,2 Millionen Dollar. Aufgrund der starken Leistung hat Vital Farms die Prognose für das Geschäftsjahr 2024 angehoben und rechnet jetzt mit einem Nettoumsatz von mindestens 600 Millionen Dollar und einem bereinigten EBITDA von mindestens 80 Millionen Dollar. Das Unternehmen verfolgt weiterhin das Ziel, bis 2027 einen Nettoumsatz von 1 Milliarde Dollar zu erreichen, unterstützt durch die Expansion auf über 375 Familienfarmen und den Bau einer neuen Eierproduktionsstätte in Indiana.
- Net revenue grew 31.3% to $145.0 million in Q3 2024
- Gross margin expanded 368 basis points to 36.9%
- Net income increased 64.4% to $7.4 million
- Adjusted EBITDA improved to $15.2 million from $9.3 million
- Strong cash position with $163.0 million in cash and no debt
- Operating cash flow increased to $50.0 million from $27.2 million
- Raised FY2024 guidance to at least $600 million revenue
- Increased promotional spending affecting margins
- Higher marketing and personnel investments impacting operating expenses
Insights
The Q3 2024 results showcase remarkable financial performance with
The strong performance indicates successful market penetration and brand growth strategies. Distribution expansion to approximately 24,000 stores and a network of over 375 family farms demonstrates robust supply chain scaling. The investment in a new facility in Seymour, Indiana, shows foresight in meeting growing demand. The company's focus on ethical production and B status aligns with current consumer trends toward sustainable and responsible food sourcing. Volume growth driven by higher velocities on current products and new offerings suggests strong consumer acceptance and brand loyalty, while increased promotional activities indicate a strategic push for market share expansion.
Third Quarter Net Revenue of
Raises Fiscal Year 2024 Guidance and Reiterates Long-term Guidance
On Track to Reach
AUSTIN, Texas, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Vital Farms (Nasdaq: VITL), a Certified B Corporation that offers a range of ethically produced foods nationwide, today reported financial results for its third quarter ended September 29, 2024.
Financial highlights for the third quarter ended September 29, 2024, compared to the third quarter ended September 24, 2023, include:
- Net Revenue increased
31.3% to$145.0 million , compared to$110.4 million - Gross Margin expanded 368 basis points to
36.9% , compared to33.2% - Net Income of
$7.4 million , compared to$4.5 million - Net Income per Diluted Share of
$0.16 , compared to$0.10 - Adjusted EBITDA of
$15.2 million , compared to$9.3 million 1
“Our sales momentum from the first half of the year carried into the third quarter of 2024 and we posted another strong topline result with net revenue of
1Adjusted EBITDA is a non-GAAP financial measure defined in the section titled “Non-GAAP Financial Measures” below and is reconciled to net income, its closest comparable GAAP measure, at the end of this release.
For the 13 Weeks Ended September 29, 2024
Net revenue increased
Gross profit was
Income from operations in the third quarter of 2024 was
Net income was
Net income per diluted share was
Adjusted EBITDA was
Adjusted EBITDA excludes certain non-cash items. Adjusted EBITDA is a non-GAAP financial measure defined in the section titled “Non-GAAP Financial Measures” below and is reconciled to net income, its closest comparable GAAP measure, at the end of this release.
Balance Sheet and Cash Flow Highlights
Cash, cash equivalents and marketable securities were
Capital expenditures totaled
Fiscal 2024 Outlook
Thilo Wrede, Vital Farms’ Chief Financial Officer, commented: “With another solid performance in the third quarter, I am pleased to again update our guidance for 2024. Our new outlook reflects the strong performance of the business for the first nine months of this year and our good visibility for the fourth quarter of 2024. Our revised guidance is built around a favorable commodity outlook and strong consumer demand supported by our marketing reinvestment strategy. Vital Farms’ long-term strategy is built to increase brand awareness, drive deeper loyalty with consumers, and grow our household penetration through focused energies on brand marketing and continuous retail expansion.”
For the fiscal year 2024, management now expects:
- Net revenue of at least
$600 million , which represents at least27% growth versus fiscal year 2023, compared to our previous expectation of at least$590 million , or25% growth. - Adjusted EBITDA of at least
$80 million , which represents at least65% growth versus fiscal year 2023, compared to our previous expectation of at least$75 million , or55% growth. - Capital expenditures for the full year in the range of
$30 million to$40 million , which is reduced from our previous range of$35 million to$45 million due to updated timing on some key projects. We continue to evaluate our capital allocation priorities, and we will provide updates as necessary in future earnings reports.
Vital Farms’ guidance includes the effect of lapping an extra shipping week in Q4 2023 and assumes that there are no significant disruptions to the supply chain or its customers or consumers, including any issues from adverse macroeconomic factors. Vital Farms cannot provide a reconciliation between its forecasted Adjusted EBITDA and net income and Adjusted EBITDA Margin and net income margin, their most directly comparable GAAP measures, without unreasonable effort due to the unavailability of reliable estimates for income taxes, among other items. These items are not within our control and may vary greatly between periods and could significantly impact future financial results.
Conference Call and Webcast Details
Vital Farms will host a conference call and webcast at 8:30 a.m. ET today to discuss the results. To participate in the call and receive dial in information, please register here: Vital Farms Q3 2024 Conference Call. Alternatively, participants may access the live webcast on the Vital Farms Investor Relations website at https://investors.vitalfarms.com under “Events.” The webcast will be archived in 30 days.
About Vital Farms
Vital Farms (Nasdaq: VITL) is a Certified B Corporation that offers a range of ethically produced foods nationwide. Started on a single farm in Austin, Texas, in 2007, Vital Farms is now a national consumer brand that works with more than 375 family farms and is the leading U.S. brand of pasture-raised eggs by retail dollar sales. Vital Farms’ ethics are exemplified by its focus on the humane treatment of farm animals and sustainable farming practices. In addition, as a Delaware public benefit corporation, Vital Farms prioritizes the long-term benefits of each of its stakeholders, including farmers and suppliers, customers and consumers, communities and the environment, and crew members and stockholders. Vital Farms’ products, including shell eggs, butter, hard-boiled eggs, and liquid whole eggs, are sold in approximately 24,000 stores nationwide. Vital Farms pasture-raised eggs can also be found on menus at hundreds of foodservice operators across the country. For more information, visit https://vitalfarms.com/.
Forward-Looking Statements
This press release and the earnings call referencing this press release contain “forward-looking” statements, as that term is defined under the federal securities laws, including but not limited to statements regarding Vital Farms’ market opportunity, anticipated growth, specifications and timing regarding Vital Farms’ potential planned egg washing and packing facility in Seymour, Indiana, the effect of such facility on Vital Farms’ future revenue, future growth of its family farm network, and future financial performance, including management’s outlook for fiscal year 2024 and management’s long-term outlook. These forward-looking statements are based on Vital Farms’ current assumptions, expectations, and beliefs and are subject to substantial risks, uncertainties, assumptions, and changes in circumstances that may cause Vital Farms’ actual results, performance, or achievements to differ materially from those expressed or implied in any forward-looking statement.
The risks and uncertainties referred to above include, but are not limited to: Vital Farms’ expectations regarding its revenue, expenses, and other operating results; Vital Farms’ ability to acquire new customers, to successfully retain existing customers, to attract and retain its suppliers, distributors, and co-manufacturers, and to maintain its relationships with existing farm networks and further expand its farm networks and future farm development; Vital Farms’ ability to sustain or increase its profitability; Vital Farms’ ability to procure sufficient high-quality eggs, cream for its butter, and other raw materials; real or perceived quality or food safety issues with Vital Farms’ products or other issues that adversely affect Vital Farms’ brand and reputation; changes in the tastes and preferences of consumers; the financial condition of, and Vital Farms’ relationships with, its farmers, suppliers, co-manufacturers, distributors, retailers, and foodservice customers, as well as the health of the foodservice industry generally; the impact of agricultural risks, including diseases such as avian influenza; the ability of Vital Farms, its farmers, suppliers, and its co-manufacturers to comply with food safety, environmental or other laws or regulations; the effects of a public health pandemic or contagious disease on Vital Farms’ supply chain, the demand for its products, and on overall economic conditions and consumer confidence and spending levels; specifications and timing regarding Vital Farms’ potential planned egg washing and packing facility in Seymour, Indiana, the effect of such facility on Vital Farms’ future revenue, future investments in its business, anticipated capital expenditures and estimates regarding capital requirements; anticipated changes in Vital Farms’ product offerings and Vital Farms’ ability to innovate to offer successful new products or enter into new product categories; the costs and success of marketing efforts; Vital Farms’ ability to effectively manage its growth and to compete effectively with existing competitors and new market entrants; the impact of adverse economic conditions, increased interest rates, and inflation; the potential negative impact of Vital Farms’ focus on a specific public benefit purpose and producing a positive effect for society on its financial performance; the sufficiency of Vital Farms’ cash, cash equivalents, marketable securities and availability of credit under its credit facility to meet liquidity needs; Vital Farms’ expectations regarding the period during which it qualifies as an emerging growth company under the Jumpstart Our Business Startups Act of 2012; seasonality; and the growth rates of the markets in which Vital Farms competes.
These risks and uncertainties are more fully described in Vital Farms’ filings with the Securities and Exchange Commission (SEC), including in the sections entitled “Risk Factors” in its Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2024, which Vital Farms filed on May 7, 2024, its Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2024, which Vital Farms filed on August 8, 2024, its Quarterly Report on Form 10-Q for the fiscal quarter ended September 29, 2024, which Vital Farms anticipates filing on November 7, 2024, and other filings and reports that Vital Farms may file from time to time with the SEC. Moreover, Vital Farms operates in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for management to predict all risks, nor can Vital Farms assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements Vital Farms may make. In light of these risks, uncertainties, and assumptions, Vital Farms cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Forward-looking statements represent management’s beliefs and assumptions only as of the date of this press release. Vital Farms disclaims any obligation to update forward-looking statements except as required by law.
Media:
Rob Discher
Rob.Discher@vitalfarms.com
Investors:
Anthony Bucalo
Anthony.Bucalo@vitalfarms.com
VITAL FARMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands, except share amounts) (Unaudited) | |||||||||||||||
13-Weeks Ended | 39-Weeks Ended | ||||||||||||||
September 29, 2024 | September 24, 2023 | September 29, 2024 | September 24, 2023 | ||||||||||||
Net revenue | $ | 145,002 | $ | 110,429 | $ | 440,318 | $ | 336,046 | |||||||
Cost of goods sold | 91,526 | 73,764 | 270,268 | 218,913 | |||||||||||
Gross profit | 53,476 | 36,665 | 170,050 | 117,133 | |||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative | 36,102 | 25,081 | 96,569 | 72,935 | |||||||||||
Shipping and distribution | 8,134 | 6,355 | 22,933 | 20,034 | |||||||||||
Total operating expenses | 44,236 | 31,436 | 119,502 | 92,969 | |||||||||||
Income from operations | 9,240 | 5,229 | 50,548 | 24,164 | |||||||||||
Other income (expense), net: | |||||||||||||||
Interest expense | (259 | ) | (238 | ) | (771 | ) | (513 | ) | |||||||
Interest income | 1,407 | 707 | 3,811 | 1,497 | |||||||||||
Other expense, net | (6 | ) | (642 | ) | (370 | ) | (2,508 | ) | |||||||
Total other income (expense), net | 1,142 | (173 | ) | 2,670 | (1,524 | ) | |||||||||
Net income before income taxes | 10,382 | 5,056 | 53,218 | 22,640 | |||||||||||
Income tax provision | 2,936 | 533 | 10,410 | 4,284 | |||||||||||
Net income | 7,446 | 4,523 | 42,808 | 18,356 | |||||||||||
Net income per share: | |||||||||||||||
Basic: | $ | 0.17 | $ | 0.11 | $ | 1.01 | $ | 0.45 | |||||||
Diluted: | $ | 0.16 | $ | 0.10 | $ | 0.95 | $ | 0.42 | |||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic: | 43,249,234 | 41,375,008 | 42,517,088 | 41,037,778 | |||||||||||
Diluted: | 45,463,862 | 43,135,579 | 44,923,684 | 43,299,898 | |||||||||||
VITAL FARMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share amounts) | |||||||
September 29, 2024 | December 31, 2023 | ||||||
(Unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 149,534 | $ | 84,149 | |||
Investment securities, available-for-sale | 13,480 | 32,667 | |||||
Accounts receivable, net of allowance for credit losses of | 47,752 | 39,699 | |||||
Inventories | 33,392 | 32,895 | |||||
Prepaid expenses and other current assets, net of allowance for credit losses of | 6,446 | 6,114 | |||||
Income taxes receivable | 990 | — | |||||
Total current assets | 251,594 | 195,524 | |||||
Property, plant and equipment, net | 69,269 | 66,839 | |||||
Operating lease right-of-use assets | 17,324 | 8,911 | |||||
Goodwill and other assets | 6,481 | 3,904 | |||||
Total assets | $ | 344,668 | $ | 275,178 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 35,883 | $ | 33,485 | |||
Accrued liabilities | 33,345 | 24,218 | |||||
Operating lease liabilities, current | 4,665 | 3,057 | |||||
Finance lease liabilities, current | 3,852 | 3,255 | |||||
Income taxes payable | — | 1,206 | |||||
Total current liabilities | 77,745 | 65,221 | |||||
Operating lease liabilities, non-current | 3,675 | 5,771 | |||||
Finance lease liabilities, non-current | 9,023 | 10,481 | |||||
Other liabilities | 865 | 1,028 | |||||
Total liabilities | $ | 91,308 | $ | 82,501 | |||
Commitments and contingencies (Note 20) | |||||||
Stockholders’ equity: | |||||||
Preferred stock, | — | — | |||||
Common stock, | 4 | 4 | |||||
Additional paid-in capital | 180,887 | 163,325 | |||||
Retained earnings | 72,533 | 29,725 | |||||
Accumulated other comprehensive loss | (64 | ) | (377 | ) | |||
Total stockholders’ equity | $ | 253,360 | $ | 192,677 | |||
Total liabilities and stockholders’ equity | $ | 344,668 | $ | 275,178 | |||
VITAL FARMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) (Unaudited) | |||||||
39-Weeks Ended | |||||||
September 29, 2024 | September 24, 2023 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 42,808 | $ | 18,356 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation | 6,978 | 5,595 | |||||
Reduction in the carrying amount of right-of-use assets | 5,644 | 2,787 | |||||
Amortization of available-for-sale debt securities | 96 | 341 | |||||
Amortization of debt issuance costs | 39 | — | |||||
Stock-based compensation expense | 7,572 | 5,502 | |||||
Deferred taxes | (267 | ) | 1,082 | ||||
Unrealized loss on derivative instruments | 394 | 761 | |||||
Other | 926 | 363 | |||||
Net change in operating assets and liabilities | (14,147 | ) | (7,610 | ) | |||
Net cash provided by operating activities | $ | 50,043 | $ | 27,177 | |||
Cash flows from investing activities: | |||||||
Purchases of property, plant and equipment | (10,482 | ) | (9,138 | ) | |||
Purchases of available-for-sale debt securities | — | (982 | ) | ||||
Purchases and settlements of derivative instruments | (669 | ) | (1,264 | ) | |||
Sales of available-for-sale debt securities | — | 2,895 | |||||
Maturities and call redemptions of available-for-sale debt securities | 19,505 | 25,228 | |||||
Proceeds from the sale of property, plant and equipment | 1 | 1,056 | |||||
Return of investment in variable interest entity | — | 552 | |||||
Net cash provided by investing activities | $ | 8,355 | $ | 18,347 | |||
Cash flows from financing activities: | |||||||
Proceeds from borrowing under revolving line of credit | — | 7,500 | |||||
Proceeds from exercise of stock options | 11,305 | 396 | |||||
Proceeds from issuance of common stock under employee stock purchase plan | 178 | 135 | |||||
Repayment of revolving line of credit | — | (7,500 | ) | ||||
Payment of tax withholding obligation on vested restricted stock unit shares | (1,493 | ) | (668 | ) | |||
Principal payments under finance lease obligations | (2,589 | ) | (1,491 | ) | |||
Payment of financing costs | (414 | ) | — | ||||
Net cash provided by (used in) financing activities | $ | 6,987 | $ | (1,628 | ) | ||
Net increase in cash and cash equivalents | 65,385 | 43,896 | |||||
Cash and cash equivalents at beginning of the period | 84,149 | 12,914 | |||||
Cash and cash equivalents at end of the period | $ | 149,534 | $ | 56,810 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest | $ | 732 | $ | 507 | |||
Cash paid for income taxes | $ | 12,873 | $ | 3,189 | |||
Supplemental disclosure of non-cash investing and financing activities: | |||||||
Purchases of property, plant and equipment included in accounts payable and accrued liabilities | $ | 433 | $ | 667 | |||
Non-GAAP Financial Measures
We report our financial results in accordance with GAAP. However, management believes that Adjusted EBITDA and Adjusted EBITDA Margin, non-GAAP financial measures, provide investors with additional useful information in evaluating our performance.
Adjusted EBITDA and Adjusted EBITDA Margin are financial measures that are not required by or presented in accordance with GAAP. We believe that Adjusted EBITDA and Adjusted EBITDA Margin, when taken together with our financial results presented in accordance with GAAP, provide meaningful supplemental information regarding our operating performance and facilitate internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of Adjusted EBITDA and Adjusted EBITDA Margin are helpful to our investors as they are measures used by management in assessing the health of our business, determining incentive compensation and evaluating our operating performance, as well as for internal planning and forecasting purposes.
We calculate Adjusted EBITDA as net income, adjusted to exclude: (1) depreciation and amortization; (2) stock-based compensation expense; (3) (benefit) or provision for income taxes as applicable; (4) interest expense; and (5) interest income. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by Net Revenue.
Adjusted EBITDA and Adjusted EBITDA Margin are presented for supplemental informational purposes only, have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of the limitations of Adjusted EBITDA and Adjusted EBITDA Margin include that (1) they do not properly reflect capital commitments to be paid in the future, (2) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA and Adjusted EBITDA Margin do not reflect these capital expenditures, (3) they do not consider the impact of stock-based compensation expense, (4) they do not reflect other non-operating expenses, including interest expense; and (5) they do not reflect tax payments that may represent a reduction in cash available to us. In addition, our use of Adjusted EBITDA and Adjusted EBITDA Margin may not be comparable to similarly titled measures of other companies because they may not calculate Adjusted EBITDA and Adjusted EBITDA Margin in the same manner, limiting the usefulness as comparative measures. Because of these limitations, when evaluating our performance, you should consider Adjusted EBITDA and Adjusted EBITDA Margin alongside other financial measures, including our net income and other results stated in accordance with GAAP.
The following table presents a reconciliation of Adjusted EBITDA to net income and a reconciliation of Adjusted EBITDA Margin to net income margin, the most directly comparable financial measures stated in accordance with GAAP, for the 13- and 39-week periods presented.
VITAL FARMS, INC. ADJUSTED EBITDA RECONCILIATION (Amounts in thousands) (Unaudited) | |||||||||||||||||||||
13-Weeks Ended | 39-Weeks Ended | ||||||||||||||||||||
September 29, 2024 | September 24, 2023 | September 29, 2024 | September 24, 2023 | ||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||
Net income | $ | 7,446 | $ | 4,523 | $ | 42,808 | $ | 18,356 | |||||||||||||
Depreciation and amortization1 | 3,330 | 2,860 | 9,829 | 7,297 | |||||||||||||||||
Stock-based compensation expense | 2,674 | 1,815 | 7,572 | 5,502 | |||||||||||||||||
Income tax provision | 2,936 | 533 | 10,410 | 4,284 | |||||||||||||||||
Interest expense | 259 | 238 | 771 | 513 | |||||||||||||||||
Interest income | (1,407 | (707 | ) | (3,811 | ) | (1,497 | ) | ||||||||||||||
Adjusted EBITDA | $ | 15,238 | $ | 9,262 | $ | 67,579 | $ | 34,455 | |||||||||||||
Net revenue | $ | 145,002 | $ | 110,429 | $ | 440,318 | $ | 336,045 | |||||||||||||
Net income margin2 | 5.1 | % | 4.1 | % | 9.7 | % | 5.5 | % | |||||||||||||
Adjusted EBITDA margin3 | 10.5 | % | 8.4 | % | 15.3 | % | 10.3 | % | |||||||||||||
1 Amount also includes finance lease amortization. | |||||||||||||||||||||
2 Net income margin is calculated by dividing net income by net revenue. | |||||||||||||||||||||
3 Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by net revenue. | |||||||||||||||||||||
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