Net Revenue Growth of 9.0% and 163 basis
points of Market Share Growth
Reaffirms Full Year 2021
Outlook
Hostess Brands, Inc. (NASDAQ: TWNK, TWNKW) (the “Company”),
today reported its financial results for the three months ended
March 31, 2021.
“We had an excellent start to 2021 with strong net revenue and
earnings growth across both Sweet Baked Goods and Voortman on top
of strong growth in the prior year comparable period. Our brands’
strength drove impressive point-of-sale growth, leading to all-time
high market share across several channels,” commented Andy
Callahan, the Company’s President and Chief Executive Officer. “We
continue to experience elevated at-home consumption, while at the
same time, increased on-the-go snacking and consumer mobility are
benefiting our profitable single-serve mix. Continued strong
execution on productivity and pricing measures gives us the
confidence to manage inflation and leaves us optimistic for the
remainder of 2021.”
Highlights for the First Quarter 2021 as Compared to the
Prior Year Period1
- Net revenue was $265.4 million, an increase of 9.0%, driven
primarily by the strong performance of Hostess® and Voortman®
branded products.
- Gross profit was $95.5 million, an increase of 20.4%. On an
adjusted basis, gross profit increased 13.3% primarily from
favorable mix and realization of Voortman cost synergies.
- Net income was $26.7 million, or $0.19 per diluted share,
compared to $81.7 million, or $0.02 per diluted share, in the prior
year period. Adjusted net income increased $8.3 million, or 44.6%,
to $26.9 million, resulting in $0.20 adjusted EPS compared to $0.14
adjusted EPS in the prior year period. The increase in adjusted net
income and adjusted EPS was primarily due to higher sales volume,
favorable mix and realization of Voortman synergies.
- Adjusted EBITDA was $62.5 million, or 23.5% of net revenue, an
increase of 22.5%. The increase was primarily driven by higher
Hostess® and Voortman® branded sales, realization of Voortman
synergies and operating efficiencies.
- Cash and cash equivalents were $197.8 million as of March 31,
2021. Continued reduction of net leverage ratio to 3.6x driven by
strong operating cash flow.
Operational Highlights
- Continued excellent execution by the Hostess Brands team
against our priorities of keeping our team and communities safe and
servicing our consumers and customers during the Covid pandemic and
dynamic operating environment.
- Total Company manufacturer point of sale increased 8.7% and
market share grew 163 basis points to 20.7% within the Sweet Baked
Goods category driven by 10.6% Hostess® branded point of sale
growth.
- Meaningful market share expansion with 327 basis points of
growth in the Convenience channel and 786 basis points of growth in
the Dollar channel.
- Continued strong execution of 2021 innovation slate while
advancing innovation pipeline to drive long-term growth.
- New Donette® line fully operational and new cake line on
schedule for ramp up in the second half of 2021 expanding capacity
to enable growth.
- Implementing multi-faceted pricing actions in the second half
of 2021.
1This press release contains certain non-GAAP financial
measures, including adjusted revenue, adjusted gross profit,
adjusted gross margin, adjusted operating income, adjusted EBITDA,
adjusted net income, adjusted net income attributed to Class A
stockholders and adjusted earnings per share (“EPS”). Please refer
to the schedules in the press release for reconciliations of
non-GAAP financial measures to the comparable GAAP measure. Unless
otherwise stated, all comparisons of financial measures in this
press release are to the first quarter of 2020. All measures of
market performance contained in this press release, including point
of sale and market share include all Company branded products
within the SBG category as reported by Nielsen but do not include
other products sold outside of the SBG category. All market data in
this press release refer to the thirteen week period ended April 3,
2021 and reflects a scheduled one-week shift in current and
prior-year reporting periods performed by Nielsen in April 2021 to
better coincide with calendar periods. The Company's leverage ratio
is net debt (total long-term debt less cash) divided by the
trailing twelve months adjusted EBITDA.
First Quarter 2021 Compared to First Quarter 20201
Net revenue was $265.4 million, an increase of 9.0%, or $21.9
million, compared to $243.5 million. The increase in net revenue
was driven by sweet baked goods net revenue, which increased 5.0%,
or $11.3 million, and strong Voortman growth of 61.9%, or $10.6
million contributing approximately 4.0 points to total growth. The
significant Voortman increase over prior year was primarily due to
the transition to the warehouse distribution model during the first
quarter of 2020.
Gross profit was $95.5 million, or 36.0% of net revenue,
compared to $79.3 million, or 32.6% of net revenue. Adjusted gross
profit was $95.5 million, or 36.0% of net revenue, compared to
$84.3 million, or 34.6% of net revenue. Adjusted gross profit
increased 13.3% driven primarily by higher volume of Hostess®
branded products and favorable mix. Additionally, the increase was
driven by the realization of Voortman synergies and productivity
efficiencies as the Voortman business was not yet transitioned to
the warehouse distribution model and fully integrated in the first
quarter of 2020.
Operating costs and expenses were $48.5 million compared to
$64.2 million, a decrease of 24.5%. The decrease was primarily
attributed to prior year expenses incurred for the integration and
conversion of Voortman's operations and the realization of
operating cost synergies.
The Company's effective tax rate was 27.2% compared to 0.3% in
the prior year. The increase in tax rate is primarily attributed to
the $79.1 million change in fair value of warrant liabilities in
the prior-year period, which is a non-taxable gain. The effective
rate was also impacted by the removal of the non-controlling
interest in the current-year period and a write-off of deferred
taxes in the prior-year period related to Voortman.
Net income was $26.7 million compared to $81.7 million and EPS
was $0.19 per diluted share compared to $0.02 per diluted share.
The decrease in net income was due to gains on the change in fair
value of our liability-classified warrants of $0.1 million compared
to $79.1 million, partially offset by lower operating costs.
Diluted EPS excludes the impact of the change in fair value of the
warrants as it is anti-dilutive in both periods, resulting in an
increase in diluted EPS. Adjusted net income was $26.9 million
compared to $18.6 million and adjusted EPS was $0.20 compared to
$0.14. Adjusted net income increased as a result of the favorable
mix and operating efficiencies noted above.
Adjusted EBITDA was $62.5 million, or 23.5% of net revenue,
compared to $51.0 million, or 20.9% of net revenue, an increase of
$11.5 million, or 22.5%. The increase was driven by strong Hostess®
branded volume and favorable mix, as well as $8.0 million higher
Voortman Adjusted EBITDA as a result of the integration and
transition to the warehouse model.
Cash from operations for the three months ended March 31, 2021
was $32.9 million compared to $13.1 million for the same period
last year. Operating cash flow benefited from current year
improvement in profitability as well as lapping prior-year costs
related to the integration and conversion of Voortman's
operations.
Restatement of Historical Warrant Accounting
As previously reported on Form 8-K issued May 6, 2021, following
consideration of guidance issued in a recent SEC staff statement,
the Company concluded that certain of its warrants should have been
classified as liabilities and measured at fair value, with changes
in fair value each period reported in earnings and as a result has
restated all historical periods impacted.
There was no impact from the restatement to previously reported
net revenue, gross profit, operating income, cash and cash
equivalents, cash flows from operating, investing or financing
activities or the Company's reported net leverage ratio.
Additionally, there was no impact from the restatement to
previously reported adjusted non-GAAP results or our 2021
outlook.
As a result of the restatement, the Company recognized an
incremental non-operating gain of $79.1 million for the three
months ended March 31, 2020 based on the change in the fair value
of the outstanding liability-classified warrants. The change in
fair value for the three months ended March 31, 2020 was less than
$0.1 million and the prospective changes in fair value of the
outstanding warrant liabilities are not expected to be significant.
See the appendix to this release for updated reconciliations of the
restated GAAP financial results to the unchanged non-GAAP results
for each of the quarterly periods in 2020.
2021 Outlook
The Company reaffirms the following expected consolidated
financial results for the full year 2021:
- Adjusted net revenue growth of 3.0% to 4.5%;
- Adjusted EBITDA of $255 million to $265 million, an increase of
6.3% to 10.4% from 2020;
- Adjusted EPS of $0.80 to $0.85, an increase of 6.7% to 13.3%
from 2020**;
- Leverage ratio of approximately 3x at the end of 2021 compared
to 3.9x at December 31, 2020**;
- Capital expenditures of approximately $60 million to $65
million, which includes a $25 million investment to increase the
Company's cake production capacity to support continued
growth;
- Income tax rate of approximately 27%, reflecting the
elimination of the non-controlling interest in the fourth quarter
of 2020 and higher state taxes.
** Outlook assumes an effective net share settlement of
outstanding warrants which expire in November 2021 and no other
strategic uses of cash.
The Company reaffirms its long-term financial objectives of
organic revenue growth, adjusted EBITDA margins and free cash flow
conversion in the top-quartile of its peers.
The Company provides guidance only on a non-generally accepted
accounting principles (non-GAAP) basis and does not provide a
reconciliation of the Company's forward-looking financial
expectations to the most directly comparable GAAP financial measure
because of the inherent difficulty in forecasting and quantifying
certain amounts that are necessary for such reconciliation;
including adjustments that could be made for deferred taxes;
remeasurement of the Tax Receivable Agreement, transformation
expenses and other non-operating gains or losses reflected in the
Company's reconciliation of historic non-GAAP financial measures,
the amount of which could be material. Please refer to the
Reconciliation of Non-GAAP Financial Measures included in this
press release for further information about the use of these
measures.
Conference Call and Webcast
The Company will host a conference call and webcast with an
accompanying presentation today, May 17, 2021 at 8:30 a.m. EDT to
discuss the results for the first quarter. Investors interested in
participating in the live call can dial 877-451-6152 from the U.S.
and 201-389-0879 internationally. A telephone replay will be
available approximately two hours after the call concludes through
Monday, May 31, 2021, by dialing 844-512-2921 from the U.S., or
412-317-6671 from international locations, and entering
confirmation code 13717991. The simultaneous, live webcast and
presentation will be available on the Investor Relations section of
the Company’s website at www.hostessbrands.com. The webcast will be
archived for 30 days.
About Hostess Brands, Inc.
Hostess Brands, Inc. is a leading packaged food company focused
on developing, manufacturing, marketing, selling and distributing
snacks in North America sold under the Hostess®, Dolly Madison®,
Cloverhill®, Big Texas®, and Voortman® brands. The Hostess® brand’s
history dates back to 1919, when the Hostess® CupCake was
introduced to the public, followed by Twinkies® in 1930. Today, the
Company produces a variety of new and classic treats in addition to
Twinkies® and CupCakes, including Donettes®, Ding Dongs®, Zingers®,
Danishes, Honey Buns and Coffee Cakes. In January 2020, the Company
acquired Voortman Cookies Limited which produces a variety of
cookies and wafers products, including sugar-free products under
the Voortman® brand. For more information about Hostess® products
and Hostess Brands, please visit hostesscakes.com. Follow Hostess
on Twitter: @Hostess_Snacks; on Facebook: facebook.com/Hostess; on
Instagram: Hostess_Snacks; and on Pinterest:
pinterest.com/hostesscakes.
Forward-Looking Statements
This press release contains statements reflecting the Company's
views about its future performance that constitute “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended and Section 21E of the Securities Exchange Act
of 1934, as amended, that involve substantial risks and
uncertainties. Forward-looking statements are generally identified
through the inclusion of words such as “believes,” “expects,”
“intends,” “estimates,” “projects,” “anticipates,” “will,” “plan,”
“may,” “should,” or similar language. Statements addressing the
Company's future operating performance and statements addressing
events and developments that the Company expects or anticipates
will occur are also considered as forward-looking statements. All
forward-looking statements included herein are made only as of the
date hereof. The Company undertakes no obligation to update any
forward-looking statement, whether as a result of new information,
future events, or otherwise.
These statements inherently involve risks and uncertainties that
could cause actual results to differ materially from those
anticipated in such forward-looking statements. These risks and
uncertainties include, but are not limited to, maintaining,
extending and expanding the Company’s reputation and brand image;
protecting intellectual property rights; leveraging the Company’s
brand value to compete against lower-priced alternative brands;
correctly predicting, identifying and interpreting changes in
consumer preferences and demand and offering new products to meet
those changes; operating in a highly competitive industry; the
continued ability to produce and successfully market products with
extended shelf life; the ability to pass cost increases on to our
customers; the ability to maintain or add additional shelf or
retail space for the Company’s products; our ability to identify or
complete strategic acquisitions, alliances, divestitures or joint
ventures; our ability to successfully integrate, achieve expected
synergies and manage our acquired businesses and brands; the
ability to drive revenue growth in key products or add products
that are faster-growing and more profitable; adverse impact or
disruption to our business caused by COVID-19 or future outbreaks
of highly infectious or contagious diseases; volatility in
commodity, energy, and other input prices and the ability to adjust
pricing to cover increased costs; significant changes in the
availability and pricing of transportation; dependence on major
customers; increased labor and employee related costs; strikes or
work stoppages; product liability claims, product recalls, or
regulatory enforcement actions; dependence on third parties for
significant services; unanticipated business disruptions;
geographic focus could make the Company particularly vulnerable to
economic and other events and trends in North America;
consolidation of retail customers; unsuccessful implementation of
business strategies to reduce costs; increased costs to comply with
governmental regulation; failures, unavailability, or disruptions
of the Company’s information technology systems; dependence on key
personnel or a highly skilled and diverse workforce; the Company’s
ability to finance indebtedness on terms favorable to the Company;
and other risks as set forth from time to time in the Company’s
Securities and Exchange Commission filings.
As a result of a number of known and unknown risks and
uncertainties, the Company's actual results or performance may be
materially different from those expressed or implied by these
forward-looking statements. Risks and uncertainties are identified
and discussed in Item 1A-Risk Factors in the Company's Annual
Report on Form 10-K/A for 2020 and its Quarterly Report on Form
10-Q for the quarter ended March 31, 2021 to be filed today. All
subsequent written or oral forward-looking statements attributable
to us or persons acting on the Company's behalf are expressly
qualified in their entirety by these risk factors. The Company
undertakes no obligation to update any forward-looking statement,
whether as a result of new information, future events, or
otherwise.
HOSTESS BRANDS, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited, amounts in
thousands, except shares and per share data)
March 31, 2021
December 31,
2020
ASSETS
Current assets:
Cash and cash equivalents
$
197,846
$
173,034
Accounts receivable, net
159,492
125,550
Inventories
52,144
49,348
Prepaids and other current assets
8,468
21,614
Total current assets
417,950
369,546
Property and equipment, net
306,995
303,959
Intangible assets, net
1,962,025
1,967,903
Goodwill
706,615
706,615
Other assets, net
17,166
17,446
Total assets
$
3,410,751
$
3,365,469
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Long-term debt and lease obligations
payable within one year
$
13,508
$
13,811
Tax receivable agreement payments payable
within one year
10,200
11,800
Accounts payable
76,106
61,428
Customer trade allowances
47,514
46,779
Warrant liabilities
785
861
Accrued expenses and other current
liabilities
38,855
55,715
Total current liabilities
186,968
190,394
Long-term debt and lease obligations
1,110,101
1,113,037
Tax receivable agreement obligations
144,744
144,744
Deferred tax liability
303,880
295,009
Other long-term liabilities
1,575
1,560
Total liabilities
1,747,268
1,744,744
Class A common stock, $0.0001 par value,
200,000,000 shares authorized, 131,184,826 and 130,347,464 shares
issued and outstanding at March 31, 2021 and December 31, 2020,
respectively
13
13
Additional paid in capital
1,290,882
1,281,018
Accumulated other comprehensive loss
(4,245)
(10,407)
Retained earnings
382,833
356,101
Treasury stock
(6,000)
(6,000)
Stockholders’ equity
1,663,483
1,620,725
Total liabilities and stockholders’
equity
$
3,410,751
$
3,365,469
HOSTESS BRANDS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, amounts
in thousands, except shares and per share data)
Three Months Ended
March 31, 2021
March 31, 2020
Net revenue
$
265,421
$
243,485
Cost of goods sold
169,902
164,148
Gross profit
95,519
79,337
Operating costs and expenses:
Advertising and marketing
11,781
10,063
Selling expense
8,630
18,120
General and administrative
22,185
25,195
Amortization of customer relationships
5,878
6,484
Business combination transaction costs
—
4,282
Other operating expense
—
27
Total operating costs and expenses
48,474
64,171
Operating income
47,045
15,166
Other expense (income):
Interest expense, net
10,017
11,725
Change in fair value of warrant
liabilities
(76)
(79,100)
Other expense
363
553
Total other expense (income)
10,304
(66,822)
Income before income taxes
36,741
81,988
Income tax expense
10,009
248
Net income
26,732
81,740
Less: Net income attributable to the
non-controlling interest
—
292
Net income attributable to Class A
stockholders
$
26,732
$
81,448
Earnings per Class A share:
Basic
$
0.20
$
0.66
Diluted
$
0.19
$
0.02
Weighted-average shares outstanding:
Basic
130,839,313
123,123,656
Diluted
137,186,889
126,075,126
HOSTESS BRANDS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, amounts in
thousands)
Three Months Ended
March 31, 2021
March 31, 2020
Operating activities
Net income
$
26,732
$
81,740
Depreciation and amortization
12,691
12,821
Debt discount amortization
311
338
Change in fair value of warrant
liabilities
(76)
(79,100)
Unrealized foreign exchange losses
123
286
Non-cash lease expense
329
590
Share-based compensation
2,723
2,077
Deferred taxes
6,646
(649)
Loss on sale of assets
—
27
Change in operating assets and
liabilities, net of acquisitions and dispositions:
Accounts receivable
(34,204)
(17,463)
Inventories
(2,796)
5,180
Prepaids and other current assets
13,112
3,270
Accounts payable and accrued expenses
6,582
864
Customer trade allowances
680
3,161
Net cash provided by operating
activities
32,853
13,142
Investing activities
Purchases of property and equipment
(10,251)
(11,323)
Acquisition of business, net of cash
acquired
—
(318,427)
Acquisition and development of software
assets
(634)
(1,793)
Net cash used in investing activities
(10,885)
(331,543)
Financing activities
Repayments of long-term debt and lease
obligations
(2,792)
(2,792)
Proceeds from long-term debt origination,
net of fees paid
—
136,888
Distributions to non-controlling
interest
—
(1,614)
Tax payments related to issuance of shares
to employees
(843)
(1,004)
Cash received from exercise of options and
warrants
7,984
155
Payments on tax receivable agreement
(1,600)
(1,279)
Net cash provided by (used in) financing
activities
2,749
130,354
Effect of exchange rate changes on cash
and cash equivalents
95
(873)
Net increase (decrease) in cash and
cash equivalents
24,812
(188,920)
Cash and cash equivalents at beginning of
period
173,034
285,087
Cash and cash equivalents at end of
period
$
197,846
$
96,167
Supplemental Disclosures of Cash Flow
Information:
Cash paid during the period for:
Interest
$
9,807
$
10,758
Net taxes paid (refunded)
$
(8,191)
$
(586)
Supplemental disclosure of non-cash
investing:
Accrued capital expenditures
$
4,026
$
2,014
HOSTESS BRANDS, INC. RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
Adjusted net revenue, adjusted gross profit, adjusted operating
income, adjusted net income, adjusted Class A net income, adjusted
EBITDA, adjusted diluted shares and adjusted EPS collectively
referred to as “Non-GAAP Financial Measures,” are commonly used in
the Company's industry and should not be construed as an
alternative to net revenue, gross profit, operating income, net
income, net income attributed to Class A stockholders or earnings
per share as indicators of operating performance (as determined in
accordance with GAAP). These Non-GAAP Financial Measures may not be
comparable to similarly titled measures reported by other
companies. The Company has included these Non-GAAP Financial
Measures because it believes the measures provide management and
investors with additional information to measure the Company's
performance, estimate the Company's value and evaluate the
Company's ability to service debt.
Non-GAAP Financial Measures are adjusted to exclude certain
items that affect comparability. The adjustments are itemized in
the tables below. You are encouraged to evaluate these adjustments
and the reason the Company considers them appropriate for
supplemental analysis. In evaluating adjustments, you should be
aware that in the future the Company may incur expenses that are
the same as or similar to some of the adjustments set forth below.
The presentation of Non-GAAP Financial Measures should not be
construed as an inference that future results will be unaffected by
unusual or recurring items.
The Company defines adjusted EBITDA as net income adjusted to
exclude (i) interest expense, net, (ii) depreciation and
amortization (iii) income taxes and (iv) share-based compensation,
as further adjusted to eliminate the impact of certain items that
the Company does not consider indicative of its ongoing operating
performance. Adjusted EBITDA has limitations as an analytical tool,
and you should not consider it in isolation, or as a substitute for
analysis of the Company's results as reported under GAAP. For
example, adjusted EBITDA:
- does not reflect the Company's capital expenditures, future
requirements for capital expenditures or contractual
commitments;
- does not reflect changes in, or cash requirements for, the
Company's working capital needs;
- does not reflect the significant interest expense, or the cash
requirements necessary to service interest or principal payments,
on the Company's debt; and
- does not reflect payments related to income taxes, the Tax
Receivable Agreement or distributions to the non-controlling
interest to reimburse its tax liability.
HOSTESS BRANDS, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited,
amounts in thousands, except shares and per share data)
Three Months Ended March 31,
2021
Gross Profit
Operating Income
Net Income
Class A Net Income
Diluted EPS
GAAP Results
$
95,519
$
47,045
$
26,732
$
26,732
$
0.19
Non-GAAP adjustments:
Foreign currency impacts
—
—
123
123
—
Change in fair value of warrant
liabilities
—
—
(76)
(76)
—
Other
—
—
239
239
0.01
Tax impact of adjustments
—
—
(99)
(99)
—
Adjusted Non-GAAP results
$
95,519
$
47,045
26,919
$
26,919
$
0.20
Income tax
10,108
Interest expense
10,017
Depreciation and amortization
12,691
Share-based compensation
2,723
Adjusted EBITDA
$
62,458
Three Months Ended March 31,
2020
Gross Profit
Operating Income
Net Income
Class A Net Income
Diluted EPS
GAAP Results
$
79,337
$
15,166
$
81,740
$
81,448
$
0.02
Non-GAAP adjustments:
Foreign Currency impacts
—
—
286
270
—
Acquisition, disposal and integration
related costs (1)
1,021
14,941
14,941
14,089
0.12
Facility transition costs (2)
3,681
5,711
5,711
5,385
0.04
Impairment of property and equipment,
intangible assets and goodwill
—
26
26
25
—
COVID-19 costs
250
250
250
236
—
Change in fair value of warrant
liabilities
—
—
(79,100)
(79,100)
—
Other
—
—
267
267
—
Tax impact of adjustments
—
—
(5,514)
(5,514)
(0.04)
Adjusted Non-GAAP results
$
84,289
$
36,094
18,607
$
17,106
$
0.14
Income tax
5,762
Interest expense
11,725
Depreciation and amortization
12,821
Share-based compensation
2,077
Adjusted EBITDA
$
50,992
(1) Acquisition, disposal and integration related operating
costs include $6.4 million of selling expense, $3.2 million of
general and administrative expense and $4.3 million of business
combination transaction costs. (2) Facility transition operating
costs are included in general and administrative expenses on the
consolidated statement of operations.
HOSTESS BRANDS, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES -
SUPPLEMENTAL 2020 RESTATED QUARTERLY RESULTS (Unaudited,
amounts in thousands, except per share data)
The tables below provide a reconciliation
of net income, Class A net income, diluted shares outstanding and
diluted EPS, which were impacted by the restatement, to the
applicable non-GAAP financial measures for the three months ended
June 30, 2020, September 30, 2020 and December 31, 2020.
Three Months Ended June 30,
2020
Net Income
Class A Net Income
Diluted Shares
Diluted EPS
GAAP Results
$
988
$
(212)
123,818
$
—
Non-GAAP adjustments:
Foreign Currency impacts
710
676
—
0.01
Acquisition, disposal and integration
related costs (1)
12,360
11,767
—
0.09
COVID-19 costs (2)
2,138
2,035
—
0.02
Change in fair value of warrant
liabilities
16,382
16,382
758
0.13
Other
381
363
—
—
Tax impact of adjustments
(3,722)
(3,543)
—
(0.03)
Adjusted Non-GAAP results
29,237
$
27,468
124,576
$
0.22
Income tax
9,215
Interest expense
10,580
Depreciation and amortization
13,656
Share-based compensation
2,425
Adjusted EBITDA
$
65,113
(1) Acquisition, disposal and integration operating costs
include $1.6 million of selling expenses and $3.9 million of
general and administrative expenses on the consolidated statement
of operations. (2) COVID-19 operating costs are included in general
and administrative expenses on the consolidated statement of
operations. Total COVID-19 non-GAAP adjustments primarily consist
of costs of incremental cleaning and sanitation, personal
protective equipment and employee bonuses.
Three Months Ended September
30, 2020
Net Income
Class A Net Income
Diluted Shares
Diluted EPS
GAAP Results
$
26,233
$
24,865
127,587
$
0.18
Non-GAAP adjustments:
Foreign Currency impacts
398
378
—
—
Acquisition, disposal and integration
related costs (1)
1,556
1,478
—
0.01
Tax Receivable Agreement remeasurement
610
610
—
0.01
Change in fair value of warrant
liabilities
(2,260)
(2,260)
—
—
Other
541
514
—
—
Remeasurement of tax liabilities
(1,222)
(1,222)
—
(0.01)
Tax impact of adjustments
(601)
(601)
—
—
Adjusted Non-GAAP results
25,255
$
23,762
127,587
$
0.19
Income tax
8,104
Interest expense
10,265
Depreciation and amortization
14,522
Share-based compensation
2,080
Adjusted EBITDA
$
60,226
(1) Acquisition, disposal and integration operating costs are
included in general and administrative expenses on the consolidated
statement of operations.
Three Months Ended December
31, 2020
Net Income (Loss)
Class A Net Income
(Loss)
Diluted Shares
Diluted Earnings (loss) Per
Share
GAAP Results
$
(664)
$
(1,425)
128,353
$
(0.01)
Non-GAAP adjustments:
Foreign Currency impacts
671
649
—
0.01
Acquisition, disposal and integration
related costs (1)
309
299
—
—
Tax Receivable Agreement remeasurement
150
150
—
—
Impairment of property and equipment
3,009
2,909
—
0.02
Change in fair value of warrant
liabilities
25,037
25,037
4,050
0.19
Other
549
531
—
—
Remeasurement of tax liabilities
767
767
—
0.01
Tax impact of adjustments
(1,089)
(1,089)
—
(0.01)
Adjusted Non-GAAP results
28,739
$
27,828
132,403
$
0.21
Income tax
8,705
Interest expense
10,256
Depreciation and amortization
13,941
Share-based compensation
2,088
Adjusted EBITDA
$
63,729
(1) Acquisition, disposal and integration operating costs are
included in general and administrative expenses on the consolidated
statement of operations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210517005340/en/
Investors, please contact: Chris Mandeville and Anna Kate Heller
ICR 203-682-8304 Chris.Mandeville@icrinc.com and
AnnaKate.Heller@icrinc.com Media, please contact: The LAKPR Group
Hannah Arnold harnold@lakpr.com or Marie Espinel
mespinel@lakpr.com
Hostess Brands (NASDAQ:TWNK)
Historical Stock Chart
From Sep 2024 to Oct 2024
Hostess Brands (NASDAQ:TWNK)
Historical Stock Chart
From Oct 2023 to Oct 2024