THOMASVILLE, Ga. , May 18, 2023
/PRNewswire/ -- Flowers Foods, Inc. (NYSE: FLO) today reported
financial results for the company's 16-week fiscal first quarter
ended April 22, 2023.
First Quarter Summary:
Compared to the prior year first quarter where
applicable
- Sales increased 6.9% to a quarter-record $1.534 billion.
- Net income decreased 17.4% to $70.7
million. Adjusted net income decreased 13.1% to $80.9 million.
- Adjusted EBITDA(1) decreased 8.7% to $151.1 million, representing 9.8% of sales, a
170-basis point decrease.
- Diluted EPS decreased $0.07 to
$0.33. Adjusted diluted EPS(1)
decreased $0.06 to $0.38.
CEO's Remarks:
"Our first quarter results reflect the competitive strength of
our leading brands and their ability to meet shifting consumer
demand in a challenging environment. Price increases to offset
inflationary pressures drove record sales, while our product mix
continued to return to more normalized levels as consumers dined
out of the home more frequently. Private label category sales
remained strong, although the growth rate is moderating.
"We are adjusting our outlook for fiscal 2023 to account for the
slow start to the year and lower-than-expected branded retail sales
due to softer category demand. In response, we are adapting our
business to make it even more resilient in the rapidly evolving
consumer environment. The nationwide launch of our Dave's Killer
Bread Snack Bars represents a first step in expanding our
brands outside of the bread category. We expect further progress in
this area with an exciting pipeline of adjacent products in
development, and through strategic acquisitions. Additionally, we
are investing in a number of productivity and efficiency
initiatives to ensure we are well-positioned to enhance shareholder
value and achieve results in line with our long-term financial
targets."
For the 52-week Fiscal 2023, the Company Expects:
- Sales in the range of approximately $5.086 billion to $5.141
billion, representing an increase of approximately 5.8% to
7.0% compared to the prior year period.
- Adjusted EBITDA(2) in the range of approximately $494 million to $528
million.
- Adjusted EPS(2) in the range of approximately $1.15 to $1.25.
The company's outlook is based on the following assumptions:
- Depreciation and amortization in the range of $160 million to $165
million
- Net interest expense of approximately $9
million to $13 million
- An effective tax rate of approximately 25%
- Weighted average diluted share count for the year of
approximately 213 million shares
- Capital expenditures in the range of $140 million to $150
million, with $30 million to
$40 million related to the ERP
upgrade
Matters Affecting
Comparability:
|
|
|
|
Reconciliation of
Earnings per Share to Adjusted Earnings per Share
|
|
|
|
|
|
For the 16-Week
Period Ended
|
|
|
For the 16-Week
Period Ended
|
|
|
|
April 22,
2023
|
|
|
April 23,
2022
|
|
Net income per diluted
common share
|
|
$
|
0.33
|
|
|
$
|
0.40
|
|
Business process
improvement costs
|
|
|
0.02
|
|
|
|
0.03
|
|
Impairment of
assets
|
|
|
—
|
|
|
NM
|
|
Restructuring
charges
|
|
|
0.01
|
|
|
|
—
|
|
Acquisition-related
costs
|
|
|
0.01
|
|
|
|
—
|
|
Adjusted net income per
diluted common share
|
|
$
|
0.38
|
|
|
$
|
0.44
|
|
|
NM - not
meaningful.
Certain amounts may
not add due to rounding.
|
|
Consolidated First Quarter Operating Highlights
Compared to the prior year first quarter where
applicable
- Sales increased 6.9% to $1.534
billion, a first quarter record. Pricing/mix(3) increased
13.6%, volume(4) declined 7.3%, and the Papa Pita acquisition added
0.6%.
-
- Branded Retail sales increased $23.8
million or 2.5% to $979.3
million due to higher prices intended to offset inflationary
pressures and improved promotional efficiency, partially offset by
volume declines and increased product returns. Pricing/mix(3) rose
8.3%, volume(4) declined 6.3%, and the Papa Pita acquisition added
0.5%.
- Other sales increased $74.7
million or 15.6% to $555.1
million due to higher prices intended to offset inflationary
pressures, partially offset by volume declines largely due to
exiting lower margin business and targeted sales rationalization in
foodservice, cake, and private label. Pricing/mix(3) rose 23.1%,
volume(4) declined 8.2%, and the Papa Pita acquisition added
0.7%.
- Materials, supplies, labor, and other production costs
(exclusive of depreciation and amortization) were 52.2% of sales, a
170-basis point increase. These costs increased as a percentage of
sales due to input cost inflation, partially offset by
inflation-driven pricing actions, lower employee compensation
expense, and reduced outside purchases of product.
- Selling, distribution, and administrative (SD&A) expenses
were 38.6% of sales, in line with the prior year period, benefiting
from sales increases in excess of wage inflation, lower incentive
compensation, and lower distributor distribution fees as a percent
of sales. Those benefits were offset by greater marketing expenses,
increased amortization of cloud-based applications, and
acquisition-related costs. Excluding matters affecting
comparability, adjusted SD&A expenses were 38.0% of sales, in
line with the prior year period.
- Charges related to a restructuring of plant operation
responsibilities from the sales function to the supply chain
function were $4.2 million.
- Depreciation and amortization (D&A) expenses were
$43.7 million, or 2.9% of sales, a
10-basis point decrease.
- Net income decreased 17.4% to $70.7
million due to all the factors mentioned above along with
higher interest expense, partly offset by a lower effective tax
rate. Adjusted net income decreased 13.1% to $80.9 million.
- Adjusted EBITDA decreased 8.7% to $151.1
million, representing 9.8% of sales, a 170-basis point
decrease.
Cash Flow, Capital Allocation, and Capital Return
For the first quarter of fiscal 2023, cash flow from operating
activities decreased by $66.2 million
to $58.0 million, capital
expenditures decreased $16.5 million
to $34.0 million, and dividends paid
to shareholders increased $2.4
million to $49.1 million. Cash
and cash equivalents were $27.7
million at the end of the first quarter of fiscal 2023.
(1) Adjusted for items affecting comparability. See
reconciliations of non-GAAP measures in the financial statements
following this release.
(2) No reconciliation of the forecasted range for Adjusted
EPS to Diluted EPS and adjusted EBITDA to net income for the
52-week Fiscal 2023 is included in this press release because the
company is unable to quantify certain amounts that would be
required to be included in the GAAP measure without unreasonable
efforts. In addition, the company believes such reconciliations
would imply a degree of precision that would be confusing or
misleading to investors.
(3) Calculated as (current year period units X change in
price per unit) / prior year period sales dollars
(4) Calculated as (prior year period price per unit X change
in units) / prior year period sales dollars
Pre-Recorded Management Remarks and Question and Answer
Webcast
In conjunction with this release, pre-recorded management
remarks and a supporting slide presentation will be posted to the
Flowers Foods website. The company will host a live question and
answer webcast at 8:30 a.m. (Eastern)
on May 19, 2023. The pre-recorded
remarks and the webcast will be archived at
flowersfoods.com/investors.
About Flowers Foods
Headquartered in Thomasville,
Ga., Flowers Foods, Inc. (NYSE: FLO) is one of the largest
producers of packaged bakery foods in the
United States with 2022 sales of $4.8
billion. Flowers operates bakeries across the country that
produce a wide range of bakery products. Among the company's top
brands are Nature's Own, Dave's Killer Bread,
Wonder, Canyon Bakehouse, and Tastykake. Learn more
at www.flowersfoods.com.
FLO-IR FLO-CORP
Forward-Looking Statements
Statements contained in this filing and certain other written or
oral statements made from time to time by Flowers Foods, Inc. (the
"company", "Flowers Foods", "Flowers", "us", "we", or "our") and
its representatives that are not historical facts are
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements relate to
current expectations regarding our future financial condition and
results of operations and are often identified by the use of words
and phrases such as "anticipate," "believe," "continue," "could,"
"estimate," "expect," "intend," "may," "plan," "predict,"
"project," "should," "will," "would," "is likely to," "is expected
to" or "will continue," or the negative of these terms or other
comparable terminology. These forward-looking statements are based
upon assumptions we believe are reasonable. Forward-looking
statements are based on current information and are subject to
risks and uncertainties that could cause our actual results to
differ materially from those projected. Certain factors that may
cause actual results, performance, liquidity, and achievements to
differ materially from those projected are discussed in our Annual
Report on Form 10-K (the "Form 10-K") and Quarterly Reports on Form
10-Q filed with the Securities and Exchange Commission ("SEC") and
may include, but are not limited to, (a) unexpected changes in any
of the following: (1) general economic and business conditions; (2)
the competitive setting in which we operate, including advertising
or promotional strategies by us or our competitors, as well as
changes in consumer demand; (3) interest rates and other terms
available to us on our borrowings; (4) supply chain conditions and
any related impact on energy and raw materials costs and
availability and hedging counter-party risks; (5) relationships
with or increased costs related to our employees and third-party
service providers; (6) laws and regulations (including
environmental and health-related issues); and (7) accounting
standards or tax rates in the markets in which we operate,
(b) the loss or financial instability of any significant
customer(s), including as a result of product recalls or safety
concerns related to our products, (c) changes in consumer behavior,
trends and preferences, including health and whole grain trends,
and the movement toward less expensive store branded products, (d)
the level of success we achieve in developing and introducing new
products and entering new markets, (e) our ability to implement new
technology and customer requirements as required, (f) our ability
to operate existing, and any new, manufacturing lines according to
schedule, (g) our ability to implement and achieve our
environmental, social, and governance goals in accordance with
regulatory requirements and expectations of stakeholders,
suppliers, and customers; (h) our ability to execute our business
strategies which may involve, among other things, (1) the ability
to realize the intended benefits of completed, planned or
contemplated acquisitions, dispositions or joint ventures, (2) the
deployment of new systems (e.g., our enterprise resource planning
("ERP") system), distribution channels and technology, and (3) an
enhanced organizational structure (e.g., our sales and supply chain
reorganization), (i) consolidation within the baking industry and
related industries, (j) changes in pricing, customer and consumer
reaction to pricing actions (including decreased volumes), and the
pricing environment among competitors within the industry, (k) our
ability to adjust pricing to offset, or partially offset,
inflationary pressure on the cost of our products, including
ingredient and packaging costs; (l) disruptions in our
direct-store-delivery distribution model, including litigation or
an adverse ruling by a court or regulatory or governmental body
that could affect the independent contractor classifications of the
independent distributor partners, (m) increasing legal complexity
and legal proceedings that we are or may become subject to, (n)
labor shortages and turnover or increases in employee and
employee-related costs, (o) the credit, business, and legal risks
associated with independent distributor partners and customers,
which operate in the highly competitive retail food and foodservice
industries, (p) any business disruptions due to political
instability, pandemics, armed hostilities (including the ongoing
conflict between Russia and
Ukraine), incidents of terrorism,
natural disasters, labor strikes or work stoppages, technological
breakdowns, product contamination, product recalls or safety
concerns related to our products, or the responses to or
repercussions from any of these or similar events or conditions and
our ability to insure against such events, (q) the failure of our
information technology systems to perform adequately, including any
interruptions, intrusions, cyber-attacks or security breaches of
such systems or risks associated with the planned implementation of
the upgrade of our ERP system; and (r) the potential impact of
climate change on the company, including physical and transition
risks, availability or restriction of resources, higher regulatory
and compliance costs, reputational risks, and availability of
capital on attractive terms. The foregoing list of important
factors does not include all such factors, nor necessarily present
them in order of importance. In addition, you should consult other
disclosures made by the company (such as in our other filings with
the SEC or in company press releases) for other factors that may
cause actual results to differ materially from those projected by
the company. Refer to Part I, Item 1A., Risk Factors, of the Form
10-K, Part II, Item 1A., Risk Factors, of the Form 10-Q for the
quarter ended April 22, 2023 and
subsequent filings with the SEC for additional information
regarding factors that could affect the company's results of
operations, financial condition and liquidity. We caution you not
to place undue reliance on forward-looking statements, as they
speak only as of the date made and are inherently uncertain. The
company undertakes no obligation to publicly revise or update such
statements, except as required by law. You are advised, however, to
consult any further public disclosures by the company (such as in
our filings with the SEC or in company press releases) on related
subjects.
Information Regarding Non-GAAP Financial Measures
The company prepares its consolidated financial statements in
accordance with U.S. Generally Accepted Accounting Principles
(GAAP). However, from time to time, the company may present in its
public statements, press releases and SEC filings, non-GAAP
financial measures such as, EBITDA, adjusted EBITDA, adjusted
EBITDA margin, adjusted net income, adjusted EPS, adjusted diluted
EPS, adjusted income tax expense, adjusted selling, distribution
and administrative expenses (SD&A), and gross margin excluding
depreciation and amortization. The reconciliations attached provide
reconciliations of the non-GAAP measures used in this presentation
or release to the most comparable GAAP financial measure. The
company's definitions of these non-GAAP measures may differ from
similarly titled measures used by others. These non-GAAP measures
should be considered supplemental to, and not a substitute for,
financial information prepared in accordance with GAAP.
The company defines EBITDA as earnings before interest, taxes,
depreciation and amortization. Earnings are net income. The company
believes that EBITDA is a useful tool for managing the operations
of its business and is an indicator of the company's ability to
incur and service indebtedness and generate free cash flow. EBITDA
is used as the primary performance measure in the company's 2014
Omnibus Equity and Incentive Compensation Plan. Furthermore,
pursuant to the terms of our credit facility, EBITDA is used to
determine the company's compliance with certain financial
covenants. The company also believes that EBITDA measures are
commonly reported and widely used by investors and other interested
parties as measures of a company's operating performance and debt
servicing ability because EBITDA measures assist in comparing
performance on a consistent basis without regard to depreciation or
amortization, which can vary significantly depending upon
accounting methods and non-operating factors (such as historical
cost). EBITDA is also a widely-accepted financial indicator of a
company's ability to incur and service indebtedness.
EBITDA should not be considered an alternative to (a) income
from operations or net income (loss) as a measure of operating
performance; (b) cash flows provided by operating, investing and
financing activities (as determined in accordance with GAAP) as a
measure of the company's ability to meet its cash needs; or (c) any
other indicator of performance or liquidity that has been
determined in accordance with GAAP.
The company defines adjusted EBITDA, adjusted EBITDA margin,
adjusted net income, adjusted diluted EPS, adjusted income tax
expense and adjusted SD&A, respectively, to exclude additional
costs that the company considers important to present to investors.
These costs include, but are not limited to, the costs of closing a
plant or costs associated with acquisition-related activities,
certain impairment charges, legal settlements and other costs
impacting past and future comparability. The company believes that
these measures, when considered together with its GAAP financial
results, provides management and investors with a more complete
understanding of its business operating results, including
underlying trends, by excluding the effects of certain charges.
Presentation of gross margin includes depreciation and
amortization in the materials, supplies, labor and other production
costs according to GAAP. Our method of presenting gross margin
excludes the depreciation and amortization components, as discussed
above.
The reconciliations attached provide reconciliations of the
non-GAAP measures used in this presentation or release to the most
comparable GAAP financial measure.
Flowers Foods,
Inc.
Condensed
Consolidated Balance Sheets
|
|
(000's
omitted)
|
|
|
|
|
|
April 22,
2023
|
|
|
December 31,
2022
|
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
27,720
|
|
|
$
|
165,134
|
|
Other current
assets
|
|
|
662,113
|
|
|
|
613,334
|
|
Property, plant and
equipment, net
|
|
|
959,187
|
|
|
|
849,325
|
|
Right-of-use leases,
net
|
|
|
277,086
|
|
|
|
275,214
|
|
Distributor notes
receivable (1)
|
|
|
160,086
|
|
|
|
163,354
|
|
Other
assets
|
|
|
37,142
|
|
|
|
37,008
|
|
Cost in excess of net
tangible assets, net
|
|
|
1,358,533
|
|
|
|
1,209,625
|
|
Total
assets
|
|
$
|
3,481,867
|
|
|
$
|
3,312,994
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
liabilities
|
|
$
|
491,281
|
|
|
$
|
518,656
|
|
Long-term
debt
|
|
|
1,063,242
|
|
|
|
891,842
|
|
Right-of-use lease
liabilities (2)
|
|
|
287,829
|
|
|
|
282,862
|
|
Other
liabilities
|
|
|
177,923
|
|
|
|
176,344
|
|
Stockholders'
equity
|
|
|
1,461,592
|
|
|
|
1,443,290
|
|
Total liabilities and
stockholders' equity
|
|
$
|
3,481,867
|
|
|
$
|
3,312,994
|
|
|
|
|
|
|
|
|
(1)
|
Includes current
portion of $26,020 and $26,472, respectively.
|
(2)
|
Includes current
portion of $50,838 and $45,769, respectively.
|
Flowers Foods,
Inc.
Consolidated
Statement of Operations
|
|
(000's omitted, except
per share data)
|
|
|
|
|
|
For the 16-Week
Period
Ended
|
|
|
For the 16-Week
Period
Ended
|
|
|
|
April 22,
2023
|
|
|
April 23,
2022
|
|
Sales
|
|
$
|
1,534,493
|
|
|
$
|
1,435,932
|
|
Materials, supplies,
labor and other production costs (exclusive of
depreciation and amortization shown separately
below)
|
|
|
800,852
|
|
|
|
724,592
|
|
Selling, distribution,
and administrative expenses
|
|
|
591,943
|
|
|
|
554,952
|
|
Restructuring
charges
|
|
|
4,195
|
|
|
|
—
|
|
Impairment of
assets
|
|
|
—
|
|
|
|
990
|
|
Depreciation and
amortization expense
|
|
|
43,735
|
|
|
|
43,423
|
|
Income from
operations
|
|
|
93,768
|
|
|
|
111,975
|
|
Other pension
benefit
|
|
|
(83)
|
|
|
|
(238)
|
|
Interest expense,
net
|
|
|
3,886
|
|
|
|
2,101
|
|
Income before income
taxes
|
|
|
89,965
|
|
|
|
110,112
|
|
Income tax
expense
|
|
|
19,255
|
|
|
|
24,523
|
|
Net income
|
|
$
|
70,710
|
|
|
$
|
85,589
|
|
Net income per diluted
common share
|
|
$
|
0.33
|
|
|
$
|
0.40
|
|
Diluted weighted
average shares outstanding
|
|
|
213,397
|
|
|
|
213,314
|
|
Flowers Foods,
Inc.
Condensed
Consolidated Statement of Cash Flows
|
|
(000's
omitted)
|
|
|
|
|
|
For the 16-Week
Period
Ended
|
|
|
For the 16-Week Period
Ended
|
|
|
|
April 22,
2023
|
|
|
April 23,
2022
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
70,710
|
|
|
$
|
85,589
|
|
Adjustments to
reconcile net income to net cash from operating
activities:
|
|
|
|
|
|
|
Total
non-cash adjustments
|
|
|
62,975
|
|
|
|
64,669
|
|
Changes
in assets and liabilities
|
|
|
(75,733)
|
|
|
|
(26,104)
|
|
Net cash provided by
operating activities
|
|
|
57,952
|
|
|
|
124,154
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Purchase
of property, plant and equipment
|
|
|
(33,958)
|
|
|
|
(50,497)
|
|
Proceeds
from sale of property, plant and equipment
|
|
|
96
|
|
|
|
1,431
|
|
Acquisition of business
|
|
|
(270,451)
|
|
|
|
—
|
|
Other
|
|
|
3,106
|
|
|
|
7,171
|
|
Net cash disbursed
for investing activities
|
|
|
(301,207)
|
|
|
|
(41,895)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Dividends
paid
|
|
|
(49,100)
|
|
|
|
(46,747)
|
|
Stock
repurchases
|
|
|
(10,981)
|
|
|
|
(10,049)
|
|
Net
change in debt borrowings
|
|
|
171,000
|
|
|
|
—
|
|
Payments
on financing leases
|
|
|
(599)
|
|
|
|
(426)
|
|
Other
|
|
|
(4,479)
|
|
|
|
(5,761)
|
|
Net cash provided by
(disbursed for) financing activities
|
|
|
105,841
|
|
|
|
(62,983)
|
|
Net (decrease) increase
in cash and cash equivalents
|
|
|
(137,414)
|
|
|
|
19,276
|
|
Cash and cash
equivalents at beginning of period
|
|
|
165,134
|
|
|
|
185,871
|
|
Cash and cash
equivalents at end of period
|
|
$
|
27,720
|
|
|
$
|
205,147
|
|
Flowers Foods,
Inc.
Sales by Sales Class
and Sales Bridge
|
(000's omitted)
|
|
Sales by Sales
Class
|
|
For the 16-Week
Period
Ended
|
|
|
For the 16-Week
Period
Ended
|
|
|
|
|
|
|
|
|
|
April 22,
2023
|
|
|
April 23,
2022
|
|
|
$ Change
|
|
|
% Change
|
|
Branded
Retail
|
|
$
|
979,345
|
|
|
$
|
955,531
|
|
|
$
|
23,814
|
|
|
|
2.5
|
%
|
Other
|
|
|
555,148
|
|
|
|
480,401
|
|
|
|
74,747
|
|
|
|
15.6
|
%
|
Total
Sales
|
|
$
|
1,534,493
|
|
|
$
|
1,435,932
|
|
|
$
|
98,561
|
|
|
|
6.9
|
%
|
Sales
Bridge
|
|
For the 16-week
period ended April 22, 2023
|
|
Branded
Retail
|
|
|
Other
|
|
|
Total
|
|
Pricing/mix*
|
|
|
8.3
|
%
|
|
|
23.1
|
%
|
|
|
13.6
|
%
|
Volume*
|
|
|
(6.3)
|
%
|
|
|
(8.2)
|
%
|
|
|
(7.3)
|
%
|
Acquisition
|
|
|
0.5
|
%
|
|
|
0.7
|
%
|
|
|
0.6
|
%
|
Total percentage
point change in sales
|
|
|
2.5
|
%
|
|
|
15.6
|
%
|
|
|
6.9
|
%
|
|
|
|
|
|
|
|
|
|
|
* Computations above
are calculated as follows:
|
|
Price/Mix $ = Current
year period units × change in price per unit
|
|
Price/Mix % =
Price/Mix $ ÷ Prior year period Sales $
|
|
|
|
|
|
|
|
|
|
|
|
Volume $ = Prior year
period price per unit × change in units
|
|
Volume % = Volume $ ÷
Prior year period Sales $
|
|
Flowers Foods,
Inc.
Reconciliation of
GAAP to Non-GAAP Measures
|
|
(000's omitted, except
per share data)
|
|
|
|
|
|
Reconciliation of
Earnings per Share to Adjusted Earnings per Share
|
|
|
|
For the 16-Week
Period Ended
|
|
|
For the 16-Week Period
Ended
|
|
|
|
April 22,
2023
|
|
|
April 23,
2022
|
|
Net income per diluted
common share
|
|
$
|
0.33
|
|
|
$
|
0.40
|
|
Business process
improvement costs
|
|
|
0.02
|
|
|
|
0.03
|
|
Impairment of
assets
|
|
|
—
|
|
|
NM
|
|
Restructuring
charges
|
|
|
0.01
|
|
|
|
—
|
|
Acquisition-related
costs
|
|
|
0.01
|
|
|
|
—
|
|
Adjusted net income per
diluted common share
|
|
$
|
0.38
|
|
|
$
|
0.44
|
|
NM - not
meaningful.
|
|
|
|
|
|
|
Certain amounts may
not add due to rounding.
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Gross Margin
|
|
|
|
For the 16-Week
Period Ended
|
|
|
For the 16-Week Period
Ended
|
|
|
|
April 22,
2023
|
|
|
April 23,
2022
|
|
Sales
|
|
$
|
1,534,493
|
|
|
$
|
1,435,932
|
|
Materials, supplies,
labor and other production costs (exclusive
of depreciation and amortization)
|
|
|
800,852
|
|
|
|
724,592
|
|
Gross margin excluding
depreciation and amortization
|
|
|
733,641
|
|
|
|
711,340
|
|
Less depreciation and
amortization for production activities
|
|
|
24,448
|
|
|
|
23,434
|
|
Gross margin
|
|
$
|
709,193
|
|
|
$
|
687,906
|
|
Depreciation and
amortization for production activities
|
|
$
|
24,448
|
|
|
$
|
23,434
|
|
Depreciation and
amortization for selling, distribution, and
administrative activities
|
|
|
19,287
|
|
|
|
19,989
|
|
Total depreciation and
amortization
|
|
$
|
43,735
|
|
|
$
|
43,423
|
|
|
|
|
|
Reconciliation of
Selling, Distribution, and Administrative Expenses to
Adjusted SD&A
|
|
|
|
For the 16-Week
Period Ended
|
|
|
For the 16-Week Period
Ended
|
|
|
|
April 22,
2023
|
|
|
April 23,
2022
|
|
Selling, distribution,
and administrative expenses
(SD&A)
|
|
$
|
591,943
|
|
|
$
|
554,952
|
|
Business process
improvement costs
|
|
|
(6,219)
|
|
|
|
(9,064)
|
|
Acquisition-related
costs
|
|
|
(3,223)
|
|
|
|
—
|
|
Adjusted
SD&A
|
|
$
|
582,501
|
|
|
$
|
545,888
|
|
Flowers Foods,
Inc.
Reconciliation of
GAAP to Non-GAAP Measures
|
|
(000's omitted, except
per share data)
|
|
|
|
|
|
Reconciliation of
Net Income to EBITDA and Adjusted EBITDA
|
|
|
|
For the 16-Week
Period Ended
|
|
|
For the 16-Week Period
Ended
|
|
|
|
April 22,
2023
|
|
|
April 23,
2022
|
|
Net income
|
|
$
|
70,710
|
|
|
$
|
85,589
|
|
Income tax
expense
|
|
|
19,255
|
|
|
|
24,523
|
|
Interest expense,
net
|
|
|
3,886
|
|
|
|
2,101
|
|
Depreciation and
amortization
|
|
|
43,735
|
|
|
|
43,423
|
|
EBITDA
|
|
|
137,586
|
|
|
|
155,636
|
|
Other pension
benefit
|
|
|
(83)
|
|
|
|
(238)
|
|
Business process
improvement costs
|
|
|
6,219
|
|
|
|
9,064
|
|
Impairment of
assets
|
|
|
—
|
|
|
|
990
|
|
Restructuring
charges
|
|
|
4,195
|
|
|
|
—
|
|
Acquisition-related
costs
|
|
|
3,223
|
|
|
|
—
|
|
Adjusted
EBITDA
|
|
$
|
151,140
|
|
|
$
|
165,452
|
|
Sales
|
|
$
|
1,534,493
|
|
|
$
|
1,435,932
|
|
Adjusted EBITDA
margin
|
|
|
9.8
|
%
|
|
|
11.5
|
%
|
|
|
|
|
Reconciliation of
Income Tax Expense to Adjusted Income Tax Expense
|
|
|
|
For the 16-Week
Period Ended
|
|
|
For the 16-Week Period
Ended
|
|
|
|
April 22,
2023
|
|
|
April 23,
2022
|
|
Income tax
expense
|
|
$
|
19,255
|
|
|
$
|
24,523
|
|
Tax impact
of:
|
|
|
|
|
|
|
Business process
improvement costs
|
|
|
1,555
|
|
|
|
2,266
|
|
Impairment of
assets
|
|
|
—
|
|
|
|
248
|
|
Restructuring
charges
|
|
|
1,049
|
|
|
|
—
|
|
Acquisition-related
costs
|
|
|
806
|
|
|
|
—
|
|
Adjusted income tax
expense
|
|
$
|
22,665
|
|
|
$
|
27,037
|
|
Flowers Foods,
Inc.
Reconciliation of
GAAP to Non-GAAP Measures
|
|
(000's omitted, except
per share data)
|
|
|
|
|
|
Reconciliation of
Net Income to Adjusted Net Income
|
|
|
|
For the 16-Week
Period Ended
|
|
|
For the 16-Week Period
Ended
|
|
|
|
April 22,
2023
|
|
|
April 23,
2022
|
|
Net income
|
|
$
|
70,710
|
|
|
$
|
85,589
|
|
Business process
improvement costs
|
|
|
4,664
|
|
|
|
6,798
|
|
Impairment of
assets
|
|
|
—
|
|
|
|
742
|
|
Restructuring
charges
|
|
|
3,146
|
|
|
|
—
|
|
Acquisition-related
costs
|
|
|
2,417
|
|
|
|
—
|
|
Adjusted net
income
|
|
$
|
80,937
|
|
|
$
|
93,129
|
|
|
|
|
|
Reconciliation of
Earnings per Share -
Full Year Fiscal 2023 Guidance
|
|
|
|
Range
Estimate
|
|
Net income per diluted
common share
|
|
$
|
1.11
|
|
to
|
$
|
1.21
|
|
Business process
improvement costs
|
|
|
0.02
|
|
|
|
0.02
|
|
Restructuring
charges
|
|
|
0.01
|
|
|
|
0.01
|
|
Acquisition-related
costs
|
|
|
0.01
|
|
|
|
0.01
|
|
Adjusted net income per
diluted common share
|
|
$
|
1.15
|
|
to
|
$
|
1.25
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/flowers-foods-inc-reports-first-quarter-2023-results-301828744.html
SOURCE Flowers Foods, Inc.