- Net sales increased 6.0% year-over-year to $718.1 million
- Net income was $29.1 million compared to $59.7 million in the
prior year, with net income margin of 4.1% and 8.8%,
respectively
- Adjusted EBITDA margin1 decreased 160 basis points
year-over-year to 14.6%
- Diluted earnings per share was $0.22 compared to $0.46 in the
prior year quarter; adjusted diluted earnings per share1 was
$0.40 compared to $0.49 in the prior year quarter
- Operating cash flow for the thirty-nine weeks ended September
29, 2024 was $176.9 million with free cash flow1 of $142.3
million
- Reiterates 2024 financial outlook
MasterBrand, Inc. (NYSE: MBC, the “Company,” or “MasterBrand”),
the largest residential cabinet manufacturer in North America,
today announced third quarter 2024 financial results.
“We are pleased to announce that our third quarter financial
performance was in-line with our expectations, as we continued to
navigate choppiness in our end markets,” said Dave Banyard,
President and Chief Executive Officer. “Our associates performed at
an exceptionally high level in the quarter, delivering on our core
business objectives and making steady progress on the integration
of our Supreme acquisition. We are encouraged to see our highly
complementary products, dealer channel and operations coming
together as planned.”
“As we look to close out 2024, we remain focused on positioning
the Company for growth in any end market environment and delivering
superior financial returns for our shareholders,” Banyard
continued.
Third Quarter 2024
Net sales were $718.1 million, an increase of 6% compared to the
third quarter of 2023, driven by the 9% of growth from our Supreme
acquisition. This increase was partially offset by lower average
selling price (ASP) of 3%, with volume and foreign exchange having
no impact on year-over-year performance. Gross profit was $238.0
million, compared to $237.5 million in the prior year. Gross profit
margin decreased 200 basis points to 33.1%, on lower ASP, personnel
and freight inflation, and a one-time benefit in the prior year
period attributable to medical insurance rebates and insurance
proceeds related to tornado damage sustained at our Jackson,
Georgia facility. This was partially offset by additional cost
savings from strategic initiatives and continuous improvement
efforts and favorable variable compensation.
Net income was $29.1 million, compared to $59.7 million in the
third quarter of 2023, a decrease of 51.3%, primarily due to
acquisition-related costs, lower gross profit margin as discussed
above, restructuring charges and higher interest expense, partially
offset by favorable variable compensation and positive net income
contribution from Supreme. Net income margin was 4.1% compared to
8.8% in the prior year.
Adjusted EBITDA1 was $104.5 million, compared to $109.8
million in the third quarter of 2023. Adjusted EBITDA
margin1 decreased 160 basis points to 14.6%, driven by a
decrease in gross profit margin.
Diluted earnings per share were $0.22 compared to $0.46 in the
third quarter of 2023. Adjusted diluted earnings per share1
were $0.40 compared to $0.49 in the third quarter of 2023.
Balance Sheet, Cash Flow and Capital
Allocation
As of September 29, 2024, the Company had $108.4 million in cash
and $350.4 million of availability under its revolving credit
facility. Total debt was $1,062.3 million and our ratio of total
debt to net income from the most recent trailing twelve months was
7.2x as of September 29, 2024. For the same period, net
debt1 was $953.9 million and our ratio of net debt to
adjusted EBITDA1 was 2.5x.
Operating cash flow was $176.9 million for the thirty-nine weeks
ended September 29, 2024, compared to $336.5 million in the
thirty-nine weeks ended September 24, 2023. This decline was due to
a benefit in the prior year from a strategic inventory build
release. Free cash flow1 was $142.3 million for the
thirty-nine weeks ended September 29, 2024, compared to $315.1
million for the thirty-nine weeks ended September 24, 2023.
During the thirty-nine weeks ended September 29, 2024, the
Company repurchased approximately 371 thousand shares of common
stock for approximately $6.5 million. No shares were repurchased in
the quarter ended September 29, 2024.
2024 Financial Outlook
For full year 2024, the Company reiterates prior
expectations:
- Net sales year-over-year increase of low single-digit
percentage
- Organic decline of low single-digit percentage
- Acquisition-related increase of mid single-digit
percentage
- Adjusted EBITDA1,2 in the range of $385 million to $405
million, with related adjusted EBITDA margin1,2 of roughly
14.0% to 14.5%
- Adjusted Diluted EPS1,2 in the range of $1.50 to
$1.62
The Company expects organic net sales performance to be in line
with the underlying market demand, as new products, channel
specific offerings, and previously implemented price actions gain
traction.
“Our third quarter financial performance was driven by our
continued operational excellence and our acquisition of Supreme, as
we delivered year-over-year net sales growth in a softer end market
environment,” said Andi Simon, Executive Vice President and Chief
Financial Officer. “In-line with our prior expectations, we believe
demand trends across our R&R and new construction end markets
will remain mixed for the balance of the year. With these factors
in mind, our 2024 outlook is unchanged; we anticipate
year-over-year growth in net sales and profitability.”
Conference Call Details
The Company will hold a live conference call and webcast at 4:30
p.m. ET today, November 5, 2024, to discuss the financial results
and business outlook. Telephone access to the live call will be
available at (877) 407-4019 (U.S.) or by dialing (201) 689-8337
(international). The live audio webcast can be accessed on the
“Investors” section of the MasterBrand website
www.masterbrand.com.
A telephone replay will be available approximately one hour
following completion of the call through November 19, 2024. To
access the replay, please dial 877-660-6853 (U.S.) or 201-612-7415
(international). The replay passcode is 13749429. An archived
webcast of the conference call will also be available on the
"Investors" page of the Company's website.
Non-GAAP Financial
Measures
To supplement the financial information presented in accordance
with generally accepted accounting principles in the United States
(“GAAP”) in this earnings release, certain non-GAAP financial
measures as defined under SEC rules have been included. It is our
intent to provide non-GAAP financial information to enhance
understanding of our financial information as prepared in
accordance with GAAP. Non-GAAP financial measures should be
considered in addition to, not as a substitute for, other financial
measures prepared in accordance with GAAP. Our methods of
determining these non-GAAP financial measures may differ from the
methods used by other companies for these or similar non-GAAP
financial measures. Accordingly, these non-GAAP financial measures
may not be comparable to measures used by other companies.
We use EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted
net income, adjusted net income margin, adjusted diluted earnings
per share (“adjusted diluted EPS”), free cash flow, net debt, and
net debt to adjusted EBITDA, which are all non-GAAP financial
measures. EBITDA is defined as earnings before interest, taxes,
depreciation and amortization. We evaluate the performance of our
business based on income before income taxes, but also look to
EBITDA as a performance evaluation measure because interest expense
is related to corporate functions, as opposed to operations. For
that reason, we believe EBITDA is a useful metric to investors in
evaluating our operating results. Adjusted EBITDA is calculated by
removing the impact of non-operational results and special items
from EBITDA. Adjusted EBITDA margin is calculated as adjusted
EBITDA divided by net sales. Adjusted net income is calculated by
removing the impact of non-operational results, including non-cash
amortization expense, which is not deemed to be indicative of the
results of current or future operations, and special items from net
income. Adjusted net income margin is calculated as adjusted net
income divided by net sales. Adjusted diluted EPS is a measure of
our diluted earnings per share excluding non-operational results
and special items. We believe these non-GAAP measures are useful to
investors as they are representative of our core operations and are
used in the management of our business, including decisions
concerning the allocation of resources and assessment of
performance.
Free cash flow is defined as cash flow from operations less
capital expenditures. We believe that free cash flow is a useful
measure to investors because it is a meaningful indicator of cash
generated from operating activities available for the execution of
our business strategy, and is used in the management of our
business, including decisions concerning the allocation of
resources and assessment of performance. Net debt is defined as
total balance sheet debt less cash and cash equivalents. We believe
this measure is useful to investors as it provides a measure to
compare debt less cash and cash equivalents across periods on a
consistent basis. Net debt to adjusted EBITDA is calculated by
dividing net debt by the trailing twelve months adjusted EBITDA.
Net debt to adjusted EBITDA is used by management to assess our
financial leverage and ability to service our debt obligations.
As required by SEC rules, detailed reconciliations of these
non-GAAP financial measures to the most directly comparable GAAP
measure are included in the financial statement section of this
earnings release. We have not provided a reconciliation of our
fiscal 2024 adjusted EBITDA, adjusted EBITDA margin and adjusted
diluted EPS guidance because the information needed to reconcile
these measures is unavailable due to the inherent difficulty of
forecasting the timing or amount of various items that have not yet
occurred, including gains and losses associated with our defined
benefit plans and restructuring and other charges, which are
excluded from adjusted EBITDA, adjusted EBITDA margin, adjusted net
income, adjusted net income margin, and adjusted diluted EPS.
Additionally, estimating such GAAP measures and providing a
meaningful reconciliation consistent with the Company’s accounting
policies for future periods requires a level of precision that is
unavailable for these future periods and cannot be accomplished
without unreasonable effort. Forward-looking non-GAAP measures are
estimated consistent with the relevant definitions and assumptions
used for historical non-GAAP measures.
About MasterBrand:
MasterBrand, Inc. (NYSE: MBC) is the largest manufacturer of
residential cabinets in North America and offers a comprehensive
portfolio of leading residential cabinetry products for the
kitchen, bathroom and other parts of the home. MasterBrand products
are available in a wide variety of designs, finishes and styles and
span the most attractive categories of the cabinets market: stock,
semi-custom and premium cabinetry. These products are delivered
through an industry-leading distribution network of over 6,000
dealers, major retailers and builders. MasterBrand employs over
13,000 associates across more than 20 manufacturing facilities and
offices. Additional information can be found at
www.masterbrand.com.
Forward-Looking Statements:
Certain statements contained in this Press Release, other than
purely historical information, including, but not limited to
estimates, projections, statements relating to our business plans,
objectives and expected operating results, and the assumptions upon
which those statements are based, are forward-looking statements.
Statements preceded by, followed by or that otherwise include the
word “believes,” “expects,” “anticipates,” “intends,” “projects,”
“estimates,” “plans,” “may increase,” “may fluctuate,” and similar
expressions or future or conditional verbs such as “will,”
“should,” “would,” “may,” and “could,” are generally
forward-looking in nature and not historical facts. Where, in any
forward-looking statement, we express an expectation or belief as
to future results or events, such expectation or belief is based on
the current plans and expectations of our management. Although we
believe that these statements are based on reasonable assumptions,
they are subject to numerous factors, risks and uncertainties that
could cause actual outcomes and results to be materially different
from those indicated in such statements. These factors include
those listed under “Risk Factors” in Part I, Item 1A of our Form
10-K for the fiscal year ended December 31, 2023, Part II, Item 1A
of our Form 10-Q for the quarterly period ended June 30, 2024, and
other filings with the SEC.
The forward-looking statements included in this document are
made as of the date of this Press Release and, except pursuant to
any obligations to disclose material information under the federal
securities laws, we undertake no obligation to update, amend or
clarify any forward-looking statements to reflect events, new
information or circumstances occurring after the date of this Press
Release.
Some of the important factors that could cause our actual
results to differ materially from those projected in any such
forward-looking statements include:
- Our ability to develop and expand our business;
- Our ability to develop new products or respond to changing
consumer preferences and purchasing practices;
- Our anticipated financial resources and capital spending;
- Our ability to manage costs;
- Our ability to effectively manage manufacturing operations and
capacity, or an inability to maintain the quality of our
products;
- The impact of our dependence on third parties to source raw
materials and our ability to obtain raw materials in a timely
manner or fluctuations in raw material costs;
- Our ability to accurately price our products;
- Our projections of future performance, including future
revenues, capital expenditures, gross margins, and cash flows;
- The effects of competition and consolidation of competitors in
our industry;
- Costs of complying with evolving tax and other regulatory
requirements and the effect of actual or alleged violations of tax,
environmental or other laws;
- The effect of climate change and unpredictable seasonal and
weather factors;
- Conditions in the housing market in the United States and
Canada;
- The expected strength of our existing customers and consumers
and any loss or reduction in business from one or more of our key
customers or increased buying power of large customers;
- Information systems interruptions or intrusions or the
unauthorized release of confidential information concerning
customers, employees, or other third parties;
- Worldwide economic, geopolitical and business conditions and
risks associated with doing business on a global basis;
- The effects of a public health crisis or other unexpected
event;
- The inability to recognize, or delays in obtaining, anticipated
benefits of the acquisition of Supreme Cabinetry Brands, Inc. (the
“Acquisition”), including synergies, which may be affected by,
among other things, competition, the ability of the combined
company to grow and manage growth profitably, maintain
relationships with customers and suppliers and retain key
employees;
- The impact of our current and any additional future debt
obligations on our business, current and future operations,
profitability and our ability to meet other obligations;
- Business disruption following the Acquisition;
- Diversion of management time on Acquisition-related
issues;
- The reaction of customers and other persons to the Acquisition;
and
- Other statements contained in this Press Release regarding
items that are not historical facts or that involve
predictions.
1 - See "Non-GAAP Financial Measures" and the
corresponding financial tables at the end of this press release for
definitions and reconciliations of non-GAAP measures.
2 - We have not provided a reconciliation of our fiscal
2024 adjusted EBITDA, adjusted EBITDA margin and adjusted diluted
EPS guidance because the information needed to reconcile these
measures is unavailable due to the inherent difficulty of
forecasting the timing or amount of various items that have not yet
occurred and which may be excluded from adjusted EBITDA, adjusted
EBITDA margin and adjusted diluted EPS. Additionally, estimating
such GAAP measures and providing a meaningful reconciliation for
future periods requires a level of precision that is unavailable
for these future periods and cannot be accomplished without
unreasonable effort. Forward-looking non-GAAP measures are
estimated consistent with the relevant definitions and assumptions
used for historical non-GAAP measures.
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(Unaudited)
13 Weeks Ended
39 Weeks Ended
(U.S. Dollars presented in millions,
except per share amounts)
September 29,
2024
September 24,
2023
September 29,
2024
September 24,
2023
NET SALES
$
718.1
$
677.3
$
2,032.7
$
2,049.1
Cost of products sold
480.1
439.8
1,359.0
1,370.8
GROSS PROFIT
238.0
237.5
673.7
678.3
Gross Profit Margin
33.1
%
35.1
%
33.1
%
33.1
%
Selling, general and administrative
expenses
166.3
140.3
450.8
417.3
Amortization of intangible assets
6.3
3.6
13.7
11.6
Restructuring charges
7.8
1.4
11.0
4.1
OPERATING INCOME
57.6
92.2
198.2
245.3
Interest expense
20.0
15.3
54.7
49.9
Other income, net
(1.8
)
(1.0
)
(5.0
)
(0.1
)
INCOME BEFORE TAXES
39.4
77.9
148.5
195.5
Income tax expense
10.3
18.2
36.6
49.6
NET INCOME
$
29.1
$
59.7
$
111.9
$
145.9
Average Number of Shares of Common Stock
Outstanding
Basic
127.1
127.6
127.0
128.1
Diluted
130.8
130.3
130.8
129.9
Earnings Per Common Share
Basic
$
0.23
$
0.47
$
0.88
$
1.14
Diluted
$
0.22
$
0.46
$
0.86
$
1.12
SUPPLEMENTAL INFORMATION -
Quarter-to-date
(Unaudited)
13 Weeks Ended
September 29,
September 24,
(U.S. Dollars presented in millions,
except per share amounts and percentages)
2024
2023
1. Reconciliation
of Net Income to EBITDA to ADJUSTED EBITDA
Net income (GAAP)
$
29.1
$
59.7
Interest expense
20.0
15.3
Income tax expense
10.3
18.2
Depreciation expense
13.8
11.9
Amortization expense
6.3
3.6
EBITDA (Non-GAAP Measure)
$
79.5
$
108.7
[1] Separation costs
—
0.1
[2] Restructuring charges
7.8
1.4
[3] Restructuring-related adjustments
—
(0.4
)
[4] Acquisition-related costs
15.0
—
[5] Purchase accounting cost of products
sold
2.2
—
Adjusted EBITDA (Non-GAAP
Measure)
$
104.5
$
109.8
2. Reconciliation
of Net Income to Adjusted Net Income
Net Income (GAAP)
$
29.1
$
59.7
[1] Separation costs
—
0.1
[2] Restructuring charges
7.8
1.4
[3] Restructuring-related adjustments
—
(0.4
)
[4] Acquisition-related costs
15.0
—
[5] Purchase accounting cost of products
sold
2.2
—
[7] Amortization expense
6.3
3.6
[8] Income tax impact of adjustments
(7.8
)
(1.2
)
Adjusted Net Income (Non-GAAP
Measure)
$
52.6
$
63.2
3. Earnings per
Share Summary
Diluted EPS (GAAP)
$
0.22
$
0.46
Impact of adjustments
$
0.18
$
0.03
Adjusted Diluted EPS (Non-GAAP
Measure)
$
0.40
$
0.49
Weighted average diluted shares
outstanding
130.8
130.3
4. Profit
Margins
Net Sales (GAAP)
$
718.1
$
677.3
Net Income Margin % (GAAP)
4.1
%
8.8
%
Adjusted Net Income Margin % (Non-GAAP
Measure)
7.3
%
9.3
%
Adjusted EBITDA Margin % (Non-GAAP
Measure)
14.6
%
16.2
%
SUPPLEMENTAL INFORMATION -
Year-to-date
(Unaudited)
39 Weeks Ended
September 29,
September 24,
(U.S. Dollars presented in millions,
except per share amounts and percentages)
2024
2023
1. Reconciliation
of Net Income to EBITDA to Adjusted EBITDA
Net income (GAAP)
$
111.9
$
145.9
Interest expense
54.7
49.9
Income tax expense
36.6
49.6
Depreciation expense
39.5
34.9
Amortization expense
13.7
11.6
EBITDA (Non-GAAP Measure)
$
256.4
$
291.9
[1] Separation costs
—
2.3
[2] Restructuring charges
11.0
4.1
[3] Restructuring-related adjustments
—
(0.7
)
[4] Acquisition-related costs
19.4
—
[5] Purchase accounting cost of products
sold
2.2
—
Adjusted EBITDA (Non-GAAP
Measure)
$
289.0
$
297.6
2. Reconciliation
of Net Income to Adjusted Net Income
Net Income (GAAP)
$
111.9
$
145.9
[1] Separation costs
—
2.3
[2] Restructuring charges
11.0
4.1
[3] Restructuring-related adjustments
—
(0.7
)
[4] Acquisition-related costs
19.4
—
[5] Purchase accounting cost of products
sold
2.2
—
[6] Non-recurring components of interest
expense
6.5
—
[7] Amortization expense
13.7
11.6
[8] Income tax impact of adjustments
(13.2
)
(4.3
)
Adjusted Net Income (Non-GAAP
Measure)
$
151.5
$
158.9
3. Earnings per
Share Summary
Diluted EPS (GAAP)
$
0.86
$
1.12
Impact of adjustments
$
0.30
$
0.10
Adjusted Diluted EPS (Non-GAAP
Measure)
$
1.16
$
1.22
Weighted average diluted shares
outstanding
130.8
129.9
4. Profit
Margins
Net Sales (GAAP)
$
2,032.7
$
2,049.1
Net Income Margin % (GAAP)
5.5
%
7.1
%
Adjusted Net Income Margin % (Non-GAAP
Measure)
7.5
%
7.8
%
Adjusted EBITDA Margin % (Non-GAAP
Measure)
14.2
%
14.5
%
TICK LEGEND:
[1] Separation costs
represent one-time costs incurred directly by MasterBrand related
to the separation from Fortune Brands.
[2] Restructuring charges
are nonrecurring costs incurred to implement significant cost
reduction initiatives and may consist of workforce reduction costs,
facility closure costs, and other costs to maintain certain
facilities where operations have ceased, but which we are still
responsible for. The restructuring charges for all periods
presented are mainly comprised of workforce reduction costs and
other costs to maintain facilities that have been closed, but not
yet sold.
[3] Restructuring-related
charges are expenses directly related to restructuring initiatives
that do not represent normal, recurring expenses necessary to
operate the business, but cannot be reported as restructuring under
GAAP. Such costs may include losses on disposal of inventories from
exiting product lines, and gains/losses on the sale of facilities
closed as a result of restructuring actions. Restructuring-related
adjustments are recoveries of previously recorded
restructuring-related charges resulting from changes in estimates
of accruals recorded in prior periods. The restructuring-related
adjustments in fiscal 2023 are recoveries of previously recorded
restructuring-related charges resulting from changes in estimates
of accruals recorded in prior periods.
[4] Acquisition-related
costs are transaction and integration costs, including legal,
accounting and other professional fees, severance, stock-based
compensation, and other integration related costs. These charges
are primarily recorded within selling, general and administrative
expenses within the Condensed Consolidated Statements of Income.
Acquisition-related costs are significantly impacted by the timing
and complexity of the underlying acquisition related activities and
are not indicative of the Company’s ongoing operating performance.
The acquisition-related costs in fiscal 2024 are associated with
the acquisition of Supreme Cabinetry Brands, Inc., which was
announced in the second quarter of fiscal 2024 and closed early in
the third quarter of fiscal 2024, and are comprised primarily of
professional fees.
[5] Purchase accounting cost
of products sold relates to the fair market value adjustment
required under GAAP for inventory obtained in the acquisition of
Supreme Cabinetry Brands, Inc. All inventory obtained was sold in
the third quarter of 2024.
[6] Non-recurring components
of interest expense are one-time costs associated with the
refinancing of debt facilities and usage of temporary debt
facilities. The non-recurring components of interest expense were
incurred in the second quarter of fiscal 2024 related primarily to
non-recurring write-offs of deferred financing costs resulting from
the debt restructuring transaction. These charges are classified as
interest expense within the Condensed Consolidated Statements of
Income and are not indicative of the Company’s ongoing operating
performance.
[7] Beginning in the second
quarter of fiscal 2024 reporting, management began adding back
amortization of intangible assets in calculating adjusted net
income and adjusted diluted EPS for all periods presented. Non-cash
amortization expenses are not indicative of the Company’s ongoing
operations. Prior period information has been recast to reflect the
updated presentation.
[8] In order to calculate
Adjusted Net Income, each of the items described in Items [1] - [7]
above reflect tax effects based upon an estimated annual effective
income tax rate of 25.0 percent, inclusive of recurring permanent
differences and the net effect of state income taxes and excluding
the impact of discrete income tax items. Discrete items are
recorded in the relevant period identified and include, but are not
limited to, changes in judgment or estimates of uncertain tax
positions related to prior periods, return-to-provision
adjustments, the tax effect of relevant stock-based compensation
items, certain changes in the valuation allowance for the
realizability of deferred tax assets, or enacted changes in tax
law. Management believes this approach assists investors in
understanding the income tax provision and the estimated annual
effective income tax rate related to ongoing operations.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
September 29,
September 24,
(U.S. Dollars presented in millions)
2024
2023
ASSETS
Current assets
Cash and cash equivalents
$
108.4
$
122.5
Accounts receivable, net
216.1
233.6
Inventories
299.4
269.4
Other current assets
63.0
58.5
TOTAL CURRENT ASSETS
686.9
684.0
Property, plant and equipment, net
456.7
341.5
Operating lease right-of-use assets,
net
71.3
61.6
Goodwill
1,129.4
924.6
Other intangible assets, net
577.9
338.5
Other assets
38.0
28.1
TOTAL ASSETS
$
2,960.2
$
2,378.3
LIABILITIES AND EQUITY
Current liabilities
Accounts payable
$
175.3
$
179.7
Current portion of long-term debt
—
8.2
Current operating lease liabilities
16.8
15.4
Other current liabilities
186.3
164.6
TOTAL CURRENT LIABILITIES
378.4
367.9
Long-term debt
1,062.3
699.3
Deferred income taxes
154.0
84.2
Pension and other postretirement plan
liabilities
7.5
12.1
Operating lease liabilities
56.7
48.4
Other non-current liabilities
13.7
9.9
TOTAL LIABILITIES
1,672.6
1,221.8
Stockholders' equity
1,287.6
1,156.5
TOTAL EQUITY
1,287.6
1,156.5
TOTAL LIABILITIES AND EQUITY
$
2,960.2
$
2,378.3
Reconciliation of Net Debt
Current portion of long-term debt
$
—
$
8.2
Long-term debt
1,062.3
699.3
Less: Cash and cash equivalents
(108.4
)
(122.5
)
Net Debt
$
953.9
$
585.0
Adjusted EBITDA for Prior Fiscal Year
383.4
411.4
Less: Adjusted EBITDA for 39 weeks ended
September 24, 2023
(297.6
)
(313.6
)
Plus: Adjusted EBITDA for 39 weeks ended
September 29, 2024
289.0
297.6
Adjusted EBITDA (trailing twelve
months)
$
374.8
$
395.4
Net Debt to Adjusted EBITDA
2.5x
1.5x
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
39 Weeks Ended
September 29,
September 24,
(U.S. Dollars presented in millions)
2024
2023
OPERATING ACTIVITIES
Net income
$
111.9
$
145.9
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation
39.5
34.9
Amortization of intangibles
13.7
11.6
Restructuring charges, net of cash
payments
4.3
(13.9
)
Write-off and amortization of finance
fees
8.2
1.7
Stock-based compensation
16.8
13.2
Changes in operating assets and
liabilities:
Accounts receivable
(2.3
)
60.1
Inventories
(32.5
)
103.9
Other current assets
(1.8
)
6.9
Accounts payable
18.0
(42.8
)
Accrued expenses and other current
liabilities
(3.5
)
9.2
Other items
4.6
5.8
NET CASH PROVIDED BY OPERATING
ACTIVITIES
176.9
336.5
INVESTING ACTIVITIES
Capital expenditures
(34.6
)
(21.4
)
Proceeds from the disposition of
assets
8.4
0.3
Acquisition of business, net of cash
acquired
(515.7
)
—
NET CASH USED IN INVESTING
ACTIVITIES
(541.9
)
(21.1
)
FINANCING ACTIVITIES
Issuance of long-term and short-term
debt
1,130.0
55.0
Repayments of long-term and short-term
debt
(767.5
)
(327.5
)
Payment of financing fees
(17.8
)
—
Repurchase of common stock
(6.5
)
(15.6
)
Payments of employee taxes withheld from
share-based awards
(5.3
)
(3.0
)
Other items
(1.6
)
(1.0
)
NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES
331.3
(292.1
)
Effect of foreign exchange rate changes on
cash and cash equivalents
(5.6
)
(1.9
)
NET (DECREASE) INCREASE IN CASH, CASH
EQUIVALENTS, AND RESTRICTED CASH
$
(39.3
)
$
21.4
Cash, cash equivalents, and restricted
cash at beginning of period
$
148.7
$
101.1
Cash, cash equivalents, and restricted
cash at end of period
$
109.4
$
122.5
Cash and cash equivalents
$
108.4
$
122.5
Restricted cash included in other
assets
1.0
—
Total cash, cash equivalents and
restricted cash
$
109.4
$
122.5
Reconciliation of Free Cash
Flow
Net cash provided by operating
activities
$
176.9
$
336.5
Less: Capital expenditures
(34.6
)
(21.4
)
Free cash flow
$
142.3
$
315.1
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241105225994/en/
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