— Delivers strong growth in net sales, adjusted EBITDA* and adjusted diluted EPS* for the quarter and full year —
Highlights (vs. prior year quarter and prior full year where applicable):
_____________________
* Please see “About Non-GAAP Financial Measures and Items Affecting Comparability” below for the definition of the non-GAAP financial measures “adjusted net income,” “adjusted diluted earnings per share,” “base business net sales,” “comparable base business net sales,” “EBITDA,” and “adjusted EBITDA,” as well as information concerning certain items affecting comparability and reconciliations of the non-GAAP terms to the most comparable GAAP financial measures.
“2015 was a year characterized by a return to our long history of solid,
disciplined financial performance, the continuation of our long-standing
acquisition preference for center of the store shelf-stable brands with
our acquisition of Mama Mary’s, and of course our
transformational acquisition of the Green Giant brand. We are
excited to enter the frozen food category and by the other possibilities
that an iconic brand like Green Giant provides us, and we are
truly inspired to reinvigorate Green Giant for today’s
consumer through innovation and enhanced marketing. Overall, I am
extremely proud of what we accomplished in 2015 and look forward to
another rewarding year in 2016 for our customers, our consumers and our
shareholders,” said
Financial Results for the Fourth Quarter of 2015
Net sales for the fourth quarter of 2015 increased
The fourth quarter of 2015 contained 13 weeks and the fourth quarter of
2014 contained 14 weeks, which negatively impacted the fourth quarter of
2015 on a comparative basis. The Company estimates that the additional
week in the fourth quarter of 2014 contributed approximately
Comparable base business net sales for the fourth quarter of 2015
decreased
Gross profit for the fourth quarter of 2015 increased
Selling, general and administrative expenses increased
Net interest expense for the fourth quarter of 2015 increased
The Company’s reported net income under U.S. generally accepted
accounting principles (GAAP) was
For the fourth quarter of 2015, adjusted EBITDA (which excludes the
impact of the amortization of acquisition-related inventory step-up, the
impact of the loss on product recall, other acquisition-related expenses
and the related loss on disposal of inventory, and distribution
restructuring expenses), increased 29.2% to
Financial Results for the Full Year 2015
Net sales for fiscal 2015 increased
Fiscal 2015 contained 52 weeks and fiscal 2014 contained 53 weeks, which
negatively impacted fiscal 2015 on a comparative basis. The Company
estimates that the additional week in the fourth quarter of 2014
contributed approximately
Comparable base business net sales for fiscal 2015 increased
Gross profit for fiscal 2015 increased
Selling, general and administrative expenses increased
Net interest expense for fiscal 2015 increased
The Company’s reported net income under GAAP was
For fiscal 2015, adjusted EBITDA, which excludes the impact of the
amortization of acquisition-related inventory step-up, the impact of the
loss on product recall, other acquisition-related expenses, the non-cash
impairment charges to Rickland Orchards intangible assets and the
related loss on disposal of inventory, the non-cash gain relating to an
earn-out and distribution restructuring expenses, increased 12.2% to
2016 Guidance
For full year 2016, net sales is expected to be approximately
Conference Call
A replay of the call will be available two hours after the call and can
be accessed by dialing (877) 870-5176 or (858) 384-5517 for
international callers; the password is 8913634. The replay will be
available from February 25, 2016 through
About Non-GAAP Financial Measures and Items Affecting Comparability
“Adjusted net income,” “adjusted diluted earnings per share,” “base business net sales” (net sales without the impact of acquisitions until the acquisitions are included in both comparable periods), “comparable base business net sales” (base business net sales, excluding the impact of the extra reporting week in fiscal 2014 and the fourth quarter of 2014, the negative impact of the product recall and the Rickland Orchards shortfall), “EBITDA” (net income before net interest expense, income taxes, depreciation and amortization and loss on extinguishment of debt); and “adjusted EBITDA” (EBITDA as adjusted for cash and non-cash acquisition-related expenses, gains and losses (which may include third party fees and expenses, integration, restructuring and consolidation expenses and amortization of acquisition-related inventory step-up); intangible asset impairment charges and related asset write-offs; gains or losses related to changes in the fair value of contingent liabilities from earn-outs; loss on product recalls, including customer refunds, selling, general and administrative expenses and the impact on cost of sales; and distribution restructuring expenses) are “non-GAAP financial measures.” A non-GAAP financial measure is a numerical measure of financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in B&G Foods’ consolidated balance sheets and related consolidated statements of operations, comprehensive income, changes in stockholders’ equity and cash flows. Non-GAAP financial measures should not be considered in isolation or as a substitute for the most directly comparable GAAP measures. The Company’s non-GAAP financial measures may be different from non-GAAP financial measures used by other companies.
The Company uses “adjusted net income,” “adjusted diluted earnings per share,” “base business net sales” and “comparable base business net sales,” which are calculated as reported net income, reported diluted earnings per share and reported net sales adjusted for certain items that affect comparability. These non-GAAP financial measures reflect adjustments to reported net income, diluted earnings per share and net sales to eliminate the items identified above. This information is provided in order to allow investors to make meaningful comparisons of the Company’s operating performance between periods and to view the Company’s business from the same perspective as the Company’s management. Because the Company cannot predict the timing and amount of these items, management does not consider these items when evaluating the Company’s performance or when making decisions regarding allocation of resources.
Additional information regarding EBITDA and adjusted EBITDA, and a reconciliation of EBITDA and adjusted EBITDA to net income and to net cash provided by operating activities is included below for the fourth quarter and full year of fiscal 2015 and 2014, along with the components of EBITDA and adjusted EBITDA. Also included below are reconciliations of the non-GAAP terms adjusted net income, adjusted diluted earnings per share, base business net sales and comparable base business net sales to the most directly comparable measure calculated and presented in accordance with GAAP in the Company’s consolidated balance sheets and related consolidated statements of operations, comprehensive income, changes in stockholders’ equity and cash flows.
About
Forward-Looking Statements
Statements in this press release that are not statements of
historical or current fact constitute “forward-looking statements.” The
forward-looking statements contained in this press release include,
without limitation, statements related to B&G Foods’ net sales, adjusted
EBITDA and adjusted diluted earnings per share, and overall expectations
for fiscal 2016. Such forward-looking statements involve known
and unknown risks, uncertainties and other unknown factors that could
cause the actual results of B&G Foods to be materially different from
the historical results or from any future results expressed or implied
by such forward-looking statements. In addition to statements
that explicitly describe such risks and uncertainties readers are urged
to consider statements labeled with the terms “believes,” “belief,”
“expects,” “projects,” “intends,” “anticipates” or “plans” to be
uncertain and forward-looking. The forward-looking statements
contained herein are also subject generally to other risks and
uncertainties that are described from time to time in B&G Foods’ filings
with the
B&G Foods, Inc. and Subsidiaries Consolidated Balance Sheets (In thousands, except share and per share data) (Unaudited) |
||||||||||
Assets | January 2, 2016 | January 3, 2015 | ||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 5,246 | $ | 1,490 | ||||||
Trade accounts receivable, net | 69,712 | 55,925 | ||||||||
Inventories | 312,880 | 106,557 | ||||||||
Prepaid expenses and other current assets | 67,517 | 14,830 | ||||||||
Income tax receivable | 2,514 | 14,442 | ||||||||
Deferred income taxes | 5,292 | 3,275 | ||||||||
Total current assets | 463,161 | 196,519 | ||||||||
Property, plant and equipment, net | 163,642 | 116,197 | ||||||||
Goodwill | 473,145 | 370,424 | ||||||||
Other intangibles, net | 1,442,340 | 947,895 | ||||||||
Other assets | 29,427 | 18,318 | ||||||||
Total assets | $ | 2,571,715 | $ | 1,649,353 | ||||||
Liabilities and Stockholders’ Equity | ||||||||||
Current liabilities: | ||||||||||
Trade accounts payable | $ | 49,593 | $ | 38,052 | ||||||
Accrued expenses | 31,233 | 17,644 | ||||||||
Current portion of long-term debt | 33,750 | 18,750 | ||||||||
Dividends payable | 20,292 | 18,246 | ||||||||
Total current liabilities | 134,868 | 92,692 | ||||||||
Long-term debt | 1,725,866 | 1,007,107 | ||||||||
Other liabilities | 3,212 | 7,352 | ||||||||
Deferred income taxes | 250,084 | 204,207 | ||||||||
Total liabilities | 2,114,030 | 1,311,358 | ||||||||
Commitments and contingencies | ||||||||||
Stockholders’ equity: | ||||||||||
Preferred stock, $0.01 par value per share. Authorized 1,000,000 shares; no shares issued or outstanding | — | — | ||||||||
Common stock, $0.01 par value per share. Authorized 125,000,000 shares; 57,976,744 and 53,663,697 shares issued and outstanding as of January 2, 2016 and January 3, 2015, respectively | 580 | 537 | ||||||||
Additional paid-in capital | 162,568 | 110,349 | ||||||||
Accumulated other comprehensive loss | (12,696 | ) | (11,034 | ) | ||||||
Retained earnings | 307,233 | 238,143 | ||||||||
Total stockholders’ equity | 457,685 | 337,995 | ||||||||
Total liabilities and stockholders’ equity | $ | 2,571,715 | $ | 1,649,353 | ||||||
B&G Foods, Inc. and Subsidiaries Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) |
|||||||||||||||||
Fourth Quarter Ended | Fiscal Year Ended | ||||||||||||||||
January 2, 2016 | January 3, 2015 | January 2, 2016 | January 3, 2015 | ||||||||||||||
Net sales | $ | 342,291 | $ | 237,990 | $ | 966,358 | $ | 848,017 | |||||||||
Cost of goods sold | 253,728 | 180,977 | 676,794 | 600,246 | |||||||||||||
Gross profit | 88,563 | 57,013 | 289,564 | 247,771 | |||||||||||||
Operating expenses: | |||||||||||||||||
Selling, general and administrative expenses | 36,587 | 23,968 | 105,939 | 93,033 | |||||||||||||
Amortization expense | 3,183 | 2,706 | 11,255 | 12,692 | |||||||||||||
Impairment of intangible assets | — | — | — | 34,154 | |||||||||||||
Gain on change in fair value of contingent consideration | — | — | — | (8,206 | ) | ||||||||||||
Operating income | 48,793 | 30,339 | 172,370 | 116,098 | |||||||||||||
Other expenses: | |||||||||||||||||
Interest expense, net | 17,258 | 12,041 | 51,131 | 46,573 | |||||||||||||
Loss on extinguishment of debt | — | — | — | 5,748 | |||||||||||||
Income before income tax expense | 31,535 | 18,298 | 121,239 | 63,777 | |||||||||||||
Income tax expense | 20,575 | 6,844 | 52,149 | 22,821 | |||||||||||||
Net income | $ | 10,960 | $ | 11,454 | $ | 69,090 | $ | 40,956 | |||||||||
Weighted average shares outstanding: | |||||||||||||||||
Basic | 57,977 | 53,665 | 56,585 | 53,658 | |||||||||||||
Diluted | 58,084 | 53,797 | 56,656 | 53,747 | |||||||||||||
Basic and diluted earnings per share | $ | 0.19 | $ | 0.21 | $ | 1.22 | $ | 0.76 | |||||||||
Cash dividends declared per share | $ | 0.35 | $ | 0.34 | $ | 1.38 | $ | 1.36 | |||||||||
B&G Foods, Inc. and Subsidiaries Reconciliation of EBITDA and Adjusted EBITDA to Net Income and to Net Cash Provided by Operating Activities (In thousands) (Unaudited) |
||||||||||||||||||||
Fourth Quarter Ended | Fiscal Year Ended | |||||||||||||||||||
January 2, 2016 | January 3, 2015 | January 2, 2016 | January 3, 2015 | |||||||||||||||||
Net income | $ | 10,960 | $ | 11,454 | $ | 69,090 | $ | 40,956 | ||||||||||||
Income tax expense | 20,575 | 6,844 | 52,149 | 22,821 | ||||||||||||||||
Interest expense, net | 17,258 | 12,041 | 51,131 | 46,573 | ||||||||||||||||
Depreciation and amortization | 8,141 | 6,651 | 28,653 | 27,434 | ||||||||||||||||
Loss on extinguishment of debt | — | — | — | 5,748 | ||||||||||||||||
EBITDA(1) | 56,934 | 36,990 | 201,023 | 143,532 | ||||||||||||||||
Acquisition-related expenses | 2,817 | 791 | 6,118 | 7,315 | ||||||||||||||||
Amortization of acquisition-related inventory step-up | 6,127 | — | 6,127 | — | ||||||||||||||||
Impairment of intangible assets | — | — | — | 34,154 | ||||||||||||||||
Loss on disposal of inventory | — | 1,557 | — | 4,535 | ||||||||||||||||
Loss on product recall, net of insurance recoveries | — | 12,798 | 1,868 | 12,798 | ||||||||||||||||
Distribution restructuring expenses | 1,493 | — | 2,665 | — | ||||||||||||||||
Gain on change in fair value of contingent consideration | — | — | — | (8,206 | ) | |||||||||||||||
Adjusted EBITDA(1) | 67,371 | 52,136 | 217,801 | 194,128 | ||||||||||||||||
Income tax expense | (20,575 | ) | (6,844 | ) | (52,149 | ) | (22,821 | ) | ||||||||||||
Interest expense, net | (17,258 | ) | (12,041 | ) | (51,131 | ) | (46,573 | ) | ||||||||||||
Acquisition-related expenses | (2,817 | ) | (791 | ) | (6,118 | ) | (7,315 | ) | ||||||||||||
Amortization of acquisition-related inventory step-up | (6,127 | ) | — | (6,127 | ) | — | ||||||||||||||
Loss on product recall, net of insurance recoveries | — | (12,798 | ) | (1,868 | ) | (12,798 | ) | |||||||||||||
Distribution restructuring expenses | (1,493 | ) | — | (2,665 | ) | — | ||||||||||||||
Distribution restructuring fixed asset write-off | (107 | ) | — | (107 | ) | — | ||||||||||||||
Deferred income taxes | 15,514 | 8,772 | 29,152 | 13,855 | ||||||||||||||||
Amortization of deferred financing costs and bond discount | 1,269 | 883 | 3,900 | 3,790 | ||||||||||||||||
Share-based compensation expense | 2,113 | 107 | 5,817 | 2,235 | ||||||||||||||||
Excess tax benefits from share-based compensation | (21 | ) | — | (539 | ) | (2,356 | ) | |||||||||||||
Acquisition-related contingent consideration expense, including interest accretion | — | — | — | 432 | ||||||||||||||||
Changes in assets and liabilities, net of effects of business combinations | 3,913 | 9,013 | (7,487 | ) | (23,451 | ) | ||||||||||||||
Net cash provided by operating activities | $ | 41,782 | $ | 38,437 | $ | 128,479 | $ | 99,126 | ||||||||||||
(1) |
EBITDA and adjusted EBITDA are non-GAAP financial measures used by management to measure operating performance. A non-GAAP financial measure is defined as a numerical measure of our financial performance that excludes or includes amounts so as to be different from the most directly comparable measure calculated and presented in accordance with GAAP in our consolidated balance sheets and related consolidated statements of operations, comprehensive income, changes in stockholders’ equity and cash flows. We define EBITDA as net income before net interest expense, income taxes, depreciation and amortization and loss on extinguishment of debt. We define adjusted EBITDA as EBITDA adjusted for cash and non-cash acquisition-related expenses, gains and losses (which may include third party fees and expenses, integration, restructuring and consolidation expenses and amortization of acquired inventory fair value step-up); intangible asset impairment charges and related asset write-offs; gains or losses related to changes in the fair value of contingent liabilities from earn-outs; loss on product recalls, including customer refunds, selling, general and administrative expenses and the impact on cost of sales; and distribution restructuring expenses. Management believes that it is useful to eliminate net interest expense, income taxes, depreciation and amortization, loss on extinguishment of debt, acquisition-related expenses, gains and losses, non-cash intangible asset impairment charges and related asset write-offs, gains or losses related to changes in the fair value of contingent liabilities from earn-outs, loss on product recalls and distribution restructuring expenses because it allows management to focus on what it deems to be a more reliable indicator of ongoing operating performance and our ability to generate cash flow from operations. We use EBITDA and adjusted EBITDA in our business operations to, among other things, evaluate our operating performance, develop budgets and measure our performance against those budgets, determine employee bonuses and evaluate our cash flows in terms of cash needs. We also present EBITDA and adjusted EBITDA because we believe they are useful indicators of our historical debt capacity and ability to service debt and because covenants in our credit agreement and our senior notes indenture contain ratios based on these measures. As a result, internal management reports used during monthly operating reviews feature the EBITDA and adjusted EBITDA metrics. However, management uses these metrics in conjunction with traditional GAAP operating performance and liquidity measures as part of its overall assessment of company performance and liquidity and therefore does not place undue reliance on these measures as its only measures of operating performance and liquidity. |
|
EBITDA and adjusted EBITDA are not recognized terms under GAAP and do not purport to be an alternative to operating income or net income or any other GAAP measure as an indicator of operating performance. EBITDA and adjusted EBITDA are not complete net cash flow measures because EBITDA and adjusted EBITDA are measures of liquidity that do not include reductions for cash payments for an entity’s obligation to service its debt, fund its working capital, capital expenditures and acquisitions and pay its income taxes and dividends. Rather, EBITDA and adjusted EBITDA are two potential indicators of an entity’s ability to fund these cash requirements. EBITDA and adjusted EBITDA are not complete measures of an entity’s profitability because they do not include costs and expenses for depreciation and amortization, interest and related expenses, loss on extinguishment of debt, acquisition-related expenses, gains and losses and income taxes, intangible asset impairment charges and related asset write-offs, gains or losses related to changes in the fair value of contingent liabilities from earn-outs, loss on product recalls and distribution restructuring expenses. Because not all companies use identical calculations, this presentation of EBITDA and adjusted EBITDA may not be comparable to other similarly titled measures of other companies. However, EBITDA and adjusted EBITDA can still be useful in evaluating our performance against our peer companies because management believes these measures provide users with valuable insight into key components of GAAP amounts. | ||
B&G Foods, Inc. and Subsidiaries Items Affecting Comparability — Reconciliation of Adjusted Information to GAAP Information (In thousands, except per share data) (Unaudited) |
|||||||||||||||||
Fourth Quarter Ended | Fiscal Year Ended | ||||||||||||||||
January 2, 2016 | January 3, 2015 | January 2, 2016 | January 3, 2015 | ||||||||||||||
Reported net income | $ | 10,960 | $ | 11,454 | $ | 69,090 | $ | 40,956 | |||||||||
Acquisition-related adjustment to deferred taxes(1) | 7,451 | — | 7,166 | — | |||||||||||||
Loss on extinguishment of debt, net of tax(2) | — | — | — | 3,690 | |||||||||||||
Acquisition-related expenses, net of tax | 1,769 | 508 | 3,842 | 4,696 | |||||||||||||
Distribution restructuring expenses, net of tax(3) | 938 | — | 1,674 | — | |||||||||||||
Acquisition-related inventory step-up, net of tax(4) | 3,848 | — | 3,848 | — | |||||||||||||
Impairment of intangible assets, net of tax(5) | — | — | — | 21,927 | |||||||||||||
Loss on disposal of inventory, net of tax(5) | — | 1,000 | — | 2,911 | |||||||||||||
Loss on product recall, net of insurance recoveries and tax(6) |
— |
8,216 |
1,173 |
8,216 |
|||||||||||||
Gain on contingent consideration, net of tax(5) |
— |
— | — | (5,268 | ) | ||||||||||||
Adjusted net income | $ | 24,966 | $ | 21,178 | $ | 86,793 | $ | 77,128 | |||||||||
Adjusted diluted earnings per share (7) | $ | 0.43 | $ | 0.39 | $ | 1.53 | $ | 1.44 | |||||||||
______________________________ |
(1) |
Acquisition-related adjustment to deferred taxes for the fourth quarter and full year 2015 relate to a true-up of deferred taxes for state apportionment as a result of the Green Giant and Mama Mary’s acquisitions. |
|
(2) |
Loss on extinguishment of debt for full year 2014 includes costs relating to the termination of our prior credit agreement, which included the repayment of $121.9 million aggregate principal amount of tranche A term loans and $215.0 million aggregate principal amount of revolving loans, and the write-off of deferred debt financing costs and unamortized discount of $5.4 million and $0.3 million, respectively. |
|
(3) |
Distribution restructuring expenses for the fourth quarter and full year of 2015 includes expenses relating to our transitioning of the operations of our three primary distribution centers to a third party logistics provider. We expect this transition and the incurrence of related distribution restructuring expenses to be completed during the first half of 2016. |
|
(4) |
Acquisition-related inventory step-up for the fourth quarter and full year 2015 relates to the purchase accounting adjustments made to the finished goods inventory acquired in the Green Giant acquisition. |
|
(5) |
On October 7, 2013, we completed the Rickland Orchards acquisition for a base purchase price of $57.5 million, of which $37.4 million was paid in cash and approximately $20.1 million was paid in shares of B&G Foods’ common stock. The purchase agreement also provided that the purchase price could be increased by contingent earn-out consideration of up to $15.0 million in the aggregate based upon the achievement of revenue growth targets during fiscal 2014, 2015 and 2016 meant to achieve operating results in excess of base purchase price acquisition model assumptions. |
|
As of the date of acquisition we estimated the original fair value of the contingent consideration to be approximately $7.6 million. During the remainder of fiscal 2013 and the first two quarters of 2014, we recorded interest accretion expense on the contingent consideration liability of $0.2 million and $0.4 million, respectively. At June 28, 2014, we remeasured the fair value of the contingent consideration using actual operating results through June 28, 2014 and revised forecasted operating results for Rickland Orchards for the remainder of fiscal 2014, 2015 and 2016. As a result of lower than expected net sales results for Rickland Orchards, and the unlikelihood of Rickland Orchards achieving the revenue growth targets, the fair value of the contingent consideration was reduced to zero, resulting in a non-cash gain of $8.2 million that is included in gain on change in fair value of contingent consideration in the consolidated statements of operations for fiscal 2014. | ||
Based on the results of an interim impairment analysis performed at September 27, 2014, we recorded non-cash impairment charges to amortizable trademarks and customer relationship intangibles of Rickland Orchards of $26.9 million and $7.3 million, respectively, which are recorded in Impairment of Intangible Assets in the consolidated statement of operations for fiscal 2014. As of January 2, 2016, the remaining balances of the Rickland Orchards amortizable trademark and customer relationship intangibles were $4.7 million and $1.0 million, respectively. If operating results for the Rickland Orchards brand continue to deteriorate at rates in excess of our current projections, we may be required to record an additional non-cash charge for the impairment of long-lived intangibles relating to Rickland Orchards, and these non-cash charges would be material. | ||
In connection with the impairment of the Rickland Orchards intangibles, we also recorded a charge to cost of goods sold of approximately $1.5 million and $4.5 million during the fourth quarter and full year 2014, respectively, relating to the write-off of certain raw material and finished goods inventory used in the production of Rickland Orchards products. | ||
(6) |
On November 14, 2014, we announced a voluntary recall for certain Ortega and Las Palmas products after learning that one or more of the spice ingredients purchased from a third party supplier contained peanuts and almonds, allergens that are not declared on the products’ ingredient statements. A significant majority of the costs of this recall were incurred in the fourth quarter of 2014. The cost impact of this recall during fiscal 2015, was $1.9 million, of which $1.2 million was recorded as a decrease in net sales related to customer refunds; $0.5 million was recorded as an increase in cost of goods sold primarily related to costs associated with product retrieval, destruction charges and customer fees; and $0.2 million was recorded as an increase in selling, general, and administrative expenses related to administrative costs. The cost impact of this recall during fiscal 2014 (not including lost sales during the period of time production and distribution of the affected products were suspended, net of expected insurance recoveries of $5.0 million (which were subsequently recovered in fiscal 2015)) was $12.8 million, of which $4.1 million was recorded as a decrease in net sales related to customer refunds; $8.2 million was recorded as an increase in cost of goods sold primarily related to costs associated with product retrieval, destruction charges, customer fees and inventory write-offs; and $0.5 million was recorded as an increase in selling, general, and administrative expenses related to administrative costs. |
|
(7) |
For the fourth quarter and full year 2014, 418,158 shares of common stock issuable upon the exercise of stock options have not been included in the calculation of diluted weighted average shares outstanding because the effect would be antidilutive. |
B&G Foods, Inc. and Subsidiaries Items Affecting Comparability — Reconciliation of Base Business Net Sales and Comparable Base Business Net Sales to Reported Net Sales (In thousands) (Unaudited) |
||||||||||||||||||||
Fourth Quarter Ended | Fiscal Year Ended | |||||||||||||||||||
January 2, 2016 | January 3, 2015 | January 2, 2016 | January 3, 2015 | |||||||||||||||||
Reported net sales | $ | 342,291 | $ | 237,990 | $ | 966,358 | $ | 848,017 | ||||||||||||
Net sales from acquisitions(1) | (116,039 | ) | — | (147,584 | ) | — | ||||||||||||||
Base business net sales(2) | 226,252 | 237,990 | 818,774 | 848,017 | ||||||||||||||||
Extra reporting week | — | (15,000 | ) | — | (15,000 | ) | ||||||||||||||
Net sales of Rickland Orchards | (934 | ) | (1,093 | ) | (4,106 | ) | (21,343 | ) | ||||||||||||
Customer refunds related to recall, net of insurance recoveries |
— |
4,063 |
1,225 |
4,063 |
||||||||||||||||
Comparable base business net sales(3) | $ | 225,318 | $ | 225,960 | $ | 815,893 | $ | 815,737 | ||||||||||||
_________________ |
(1) |
Reflects net sales for Green Giant, Mama Mary’s and Specialty Brands for the portion of the fourth quarter and full year 2015 for which there is no comparable period of net sales during the same period in 2014. Green Giant was acquired on November 2, 2015, Mama Mary’s was acquired on July 10, 2015 and Specialty Brands was acquired on April 23, 2014. |
|
(2) |
Base business net sales is a non-GAAP financial measure used by management to measure operating performance. We define base business net sales as our net sales excluding the impact of acquisitions until the net sales from such acquisitions are included in both comparable periods. The portion of current period net sales attributable to recent acquisitions for which there is no corresponding period in the comparable period of the prior year is excluded. For each acquisition, the excluded period starts at the beginning of the most recent fiscal period being compared and ends on the first anniversary of the acquisition date. Management has included this financial measure because it provides useful and comparable trend information regarding the results of our business without the effect of the timing of acquisitions. |
|
(3) |
Comparable base business net sales is a non-GAAP financial measure used by management to measure operating performance. We define comparable base business net sales as our base business net sales, excluding the impact of the extra reporting week in the fourth quarter of 2014, the Rickland Orchards shortfall and customer refunds relating to the Ortega and Las Palmas recall, described in more detail below: |
View source version on businesswire.com: http://www.businesswire.com/news/home/20160225006638/en/
Source:
ICR, Inc.
Investor Relations:
Dara Dierks, 866-211-8151
or
Media
Relations:
Matt Lindberg, 203-682-8214