Double-Digit Net Revenue Growth Driven by
over 200 basis points of Market Share Expansion
Raises Full-Year 2021 Net Revenue and
Earnings Guidance
Hostess Brands, Inc. (NASDAQ: TWNK, TWNKW) (the “Company”) today
reported its financial results for the three and six months ended
June 30, 2021.
“We had another excellent quarter marked by double-digit net
revenue growth as our investments for growth are paying off. Our
top-line remains strong while lapping the Voortman pipeline fill
from 2020. Our category-leading point-of-sale growth and market
share gains within the breakfast, all-day snacking and cookies
consumer segments are driven by robust new product innovation and
strong execution as we leverage our broad-based distribution
strength across channels,” commented Andy Callahan, the Company’s
President and Chief Executive Officer.
He continued, “Our outstanding results and the ongoing growth
momentum in both at-home and on-the-go snacking occasions makes us
optimistic for the balance of the year, enabling us to raise our
full year financial outlook and delever to 3x by the end of the
year. With our price realization, other revenue management
activities and additional productivity initiatives we are well
positioned to offset rising inflation. We are confident in our
ability to continue to manage second half margins while building on
our solid foundation for future growth through investments in
capabilities, advertising and marketing to drive shareholder
value.”
Second Quarter 2021 Financial Highlights1
- Net revenue of $291.5 million increased 13.8%. Adjusted net
revenue was $291.5 million, an increase of 10.8% from the same
period last year, reflecting strong Hostess® branded products
performance in the convenience, grocery, and dollar channels.
- Gross profit was $105.1 million, an increase of 17.6%. On an
adjusted basis, gross profit increased 7.3% overcoming rising
inflation and a difficult year on year comparison as we lapped the
Voortman pipeline fill.
- Net income was $29.8 million or $0.21 per diluted share.
Adjusted net income increased 10.3% to $32.2 million and adjusted
EPS of $0.23 compared to $0.22 in the prior year period.
- Adjusted EBITDA increased 5.1% to $68.4 million, or 23.5% of
adjusted net revenue. The increase was driven primarily by higher
Hostess® branded sales, favorable product mix and operating
efficiencies more than offsetting inflation and investments made
for future growth.
- Cash and cash equivalents were $218.8 million as of June 30,
2021. Net leverage ratio declined to 3.4x driven by improved
operating cash flow.
- Raising full year 2021 guidance for revenue growth to 7.5% -
9.0% and adjusted EBITDA to $260 million - $268 million.
Other Highlights
- Hostess manufacturer point-of-sale (“POS”) increased 11.4% and
its share of the Sweet Baked Goods category increased by 207 basis
points to 21.8%.
- Hostess® branded POS grew 12.4% driven by solid core
performance and strong contribution from our new product
innovation, including great consumer response to our new Baby Bundt
products.
- Voortman® branded POS grew 23.7% reflecting robust consumer
demand and execution of the Company's growth initiatives.
- Executed pricing initiatives with realization to begin in the
second half of year.
- Launched new “Live Your Mostess”® national advertising campaign
in June 2021 across multiple retail and consumer digital
platforms.
- Published first Hostess Brands Corporate Responsibility report
in June 2021 demonstrating our commitment to enhancing transparency
into our ongoing ESG initiatives.
- Advanced the installation of new cake line investment to expand
our capacity with ramp up expected in the second half of 2021.
- Company repurchased approximately 1.5 million shares for $25
million under its previously authorized $100 million share
repurchase authorization.
1This press release contains certain
non-GAAP financial measures, including adjusted net 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 second 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 July 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.
Guidance and Outlook
The Company is raising its full year 2021 guidance as
follows:
Updated Guidance
Initial Guidance
Adjusted net revenue growth
7.5% - 9.0%
3.0% - 4.5%
Adjusted EBITDA
$260 - $268 million
$255 - $265 million
Adjusted EPS (diluted)
$0.83 - $0.87*
$0.80 - $0.85
Leverage ratio
~3x
~3x
Capital expenditures
$60 - $65 million
$60 - $65 million
Effective tax rate
27.5%
27.0%
*Based on weighted average shares outstanding
of 139 million, which includes approximately 8 million shares of
dilution due to the warrants.
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.
Second Quarter 2021 Compared to Second Quarter 20201
Net revenue was $291.5 million, an increase of 13.8%, or $35.3
million, compared to $256.2 million. Adjusted net revenue was
$291.5 million, an increase of 10.8%, compared to $263.0 million in
the prior year period. Adjusted net revenue growth was primarily
driven by sweet baked goods net revenue, which increased $29.9
million or 12.9%. This growth was driven by double-digit POS growth
in grocery, dollar and convenience channels with continued momentum
of single-serve products and innovation. Voortman adjusted net
revenue of $29.0 million was down $1.4 million or 4.6% due to
lapping of last year's inventory pipeline fill to support
Voortman's transition to the warehouse distribution model. Voortman
POS trends remained strong with 23.7% growth in the quarter.
Gross profit was $105.1 million, or 36.1% of net revenue
compared to 34.9% in the same period last year. Adjusted gross
profit margin of 36.1% declined from 37.3% in the same period last
year as the year-ago period benefited from a temporary margin lift
due to Voortman's pipeline fill. Adjusted gross profit increased
7.3% as higher volumes, favorable product mix and productivity
initiatives offset commodity, labor and transportation costs
inflation.
Operating income was $53.1 million. Adjusted operating income of
$54.2 million increased 10.6% from the same period last year as
higher gross profit was partially offset by higher general and
administrative investments as well as advertising and marketing
spending to support top-line growth.
Adjusted EBITDA of $68.4 million, or 23.5% of adjusted net
revenue, increased 5.1% from the same period last year driven by
strong Hostess® branded volume and favorable product mix.
Depreciation and amortization expense declined $1.2 million to
$12.5 million and share-based compensation expense declined $0.8
million to $1.6 million in the quarter.
The Company's effective tax rate was 28.2% compared to 84.8% in
the prior year, which reflected a non-taxable $16.4 million change
in fair value of warrant liabilities and the benefit from
non-controlling interest in the prior year period. The effective
tax rate, excluding discrete items was 27.3% in the current
quarter.
Net income was $29.8 million compared to $1.0 million. Adjusted
net income of $32.2 million increased 10.3% from the same period
last year. GAAP diluted EPS was $0.21. Adjusted EPS was $0.23
compared to $0.22 in the prior year period as higher income was
partially offset by higher share dilution from the warrants.
Cash from operations for the six months ended June 30, 2021 was
$87.3 million compared to $60.7 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, partially
offset by an increase in working capital.
1This press release contains certain
non-GAAP financial measures, including adjusted net revenue,
adjusted gross profit, adjusted gross margin, adjusted operating
income, adjusted EBITDA, adjusted net income 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 second
quarter of 2020.
Conference Call and Webcast
The Company will host a conference call and webcast with an
accompanying presentation today, August 4, 2021 at 4:30 p.m. EDT to
discuss the results for the second quarter. Investors interested in
participating in the live call can dial 877-413-2411 from the U.S.
and 201-389-0882 internationally. A telephone replay will be
available approximately two hours after the call concludes through
Wednesday, August 18, 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 June 30, 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)
June 30, 2021
December 31,
2020
ASSETS
Current assets:
Cash and cash equivalents
$
218,807
$
173,034
Accounts receivable, net
148,726
125,550
Inventories
52,164
49,348
Prepaids and other current assets
13,150
21,614
Total current assets
432,847
369,546
Property and equipment, net
311,535
303,959
Intangible assets, net
1,956,147
1,967,903
Goodwill
706,615
706,615
Other assets, net
17,976
17,446
Total assets
$
3,425,120
$
3,365,469
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Long-term debt and lease obligations
payable within one year
$
14,103
$
13,811
Tax receivable agreement payments payable
within one year
10,000
11,800
Accounts payable
67,751
61,428
Customer trade allowances
47,620
46,779
Warrant liabilities
1,316
861
Accrued expenses and other current
liabilities
44,514
55,715
Total current liabilities
185,304
190,394
Long-term debt and lease obligations
1,107,021
1,113,037
Tax receivable agreement obligations
137,274
144,744
Deferred tax liability
310,992
295,009
Other long-term liabilities
1,585
1,560
Total liabilities
1,742,176
1,744,744
Class A common stock, $0.0001 par value,
200,000,000 shares authorized, 130,459,939 and 130,347,464 shares
issued and outstanding at June 30, 2021 and December 31, 2020,
respectively
13
13
Additional paid in capital
1,297,670
1,281,018
Accumulated other comprehensive loss
(4,728
)
(10,407
)
Retained earnings
412,680
356,101
Treasury stock
(22,691
)
(6,000
)
Stockholders’ equity
1,682,944
1,620,725
Total liabilities and stockholders’
equity
$
3,425,120
$
3,365,469
HOSTESS BRANDS, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited, amounts in
thousands, except shares and per share data)
Three Months Ended
Six Months Ended
June 30, 2021
June 30, 2020
June 30, 2021
June 30, 2020
Net revenue
$
291,485
$
256,226
$
556,906
$
499,711
Cost of goods sold
186,379
166,852
356,281
331,000
Gross profit
105,106
89,374
200,625
168,711
Operating costs and expenses:
Advertising and marketing
13,144
11,158
24,925
21,221
Selling expense
9,454
12,378
18,084
30,498
General and administrative
23,504
24,153
45,689
49,348
Amortization of customer relationships
5,878
7,110
11,756
13,594
Business combination transaction costs
—
—
—
4,282
Other operating expense
—
—
—
27
Total operating costs and expenses
51,980
54,799
100,454
118,970
Operating income
53,126
34,575
100,171
49,741
Other expense (income):
Interest expense, net
9,954
10,580
19,971
22,305
Change in fair value of warrant
liabilities
531
16,382
455
(62,718
)
Other expense
1,067
1,132
1,430
1,685
Total other expense (income)
11,552
28,094
21,856
(38,728
)
Income before income taxes
41,574
6,481
78,315
88,469
Income tax expense
11,727
5,493
21,736
5,741
Net income
29,847
988
56,579
82,728
Less: Net income attributable to the
non-controlling interest
—
1,200
—
1,492
Net income (loss) attributable to Class A
stockholders
$
29,847
$
(212
)
$
56,579
$
81,236
Earnings per Class A share:
Basic
$
0.23
$
—
$
0.43
$
0.66
Diluted
$
0.21
$
—
$
0.41
$
0.15
Weighted-average shares outstanding:
Basic
131,354,059
123,638,723
131,096,686
123,381,190
Diluted
138,925,489
123,818,404
138,026,854
125,312,658
HOSTESS BRANDS, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Unaudited, amounts in
thousands)
Six Months Ended
June 30, 2021
June 30, 2020
Operating activities
Net income
$
56,579
$
82,728
Depreciation and amortization
25,223
26,477
Debt discount amortization
621
664
Change in fair value of warrant
liabilities
455
(62,718
)
Unrealized foreign exchange losses
73
996
Non-cash lease expense
659
641
Share-based compensation
4,363
4,503
Deferred taxes
13,932
3,973
Loss on sale of assets
—
128
Change in operating assets and
liabilities, net of acquisitions and dispositions:
Accounts receivable
(23,194
)
(11,320
)
Inventories
(2,816
)
4,135
Prepaids and other current assets
8,844
(1,091
)
Accounts payable and accrued expenses
1,735
3,323
Customer trade allowances
827
8,242
Net cash provided by operating
activities
87,301
60,681
Investing activities
Purchases of property and equipment
(20,051
)
(23,376
)
Acquisition of business, net of cash
acquired
—
(318,427
)
Acquisition and development of software
assets
(2,129
)
(3,402
)
Net cash used in investing activities
(22,180
)
(345,205
)
Financing activities
Repayments of long-term debt and lease
obligations
(5,584
)
(5,584
)
Proceeds from long-term debt origination,
net of fees paid
—
136,888
Distributions to non-controlling
interest
—
(1,977
)
Repurchase of common stock
(16,691
)
—
Tax payments related to issuance of shares
to employees
(1,235
)
(1,036
)
Cash received from exercise of options and
warrants
13,524
563
Payments on tax receivable agreement
(9,270
)
(1,279
)
Net cash provided by (used in) financing
activities
(19,256
)
127,575
Effect of exchange rate changes on cash
and cash equivalents
(92
)
(359
)
Net increase (decrease) in cash and
cash equivalents
45,773
(157,308
)
Cash and cash equivalents at beginning of
period
173,034
285,087
Cash and cash equivalents at end of
period
$
218,807
$
127,779
Supplemental Disclosures of Cash Flow
Information:
Cash paid during the period for:
Interest
$
19,451
$
21,885
Net taxes refunded
$
(1,506
)
$
(577
)
Supplemental disclosure of non-cash
investing:
Accrued capital expenditures
$
5,046
$
1,542
HOSTESS BRANDS, INC. RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
Adjusted net revenue, adjusted gross profit, adjusted gross
profit margin, 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 per share data)
Three Months Ended June 30,
2021
Gross Profit
Operating Income
Net Income
Diluted EPS
GAAP Results
$
105,106
$
53,126
$
29,847
$
0.21
Non-GAAP adjustments:
Foreign currency impacts
—
—
(52
)
—
Change in fair value of warrant
liabilities
—
—
531
—
Other (1)
158
1,066
2,184
0.02
Tax impact of adjustments
—
—
(329
)
—
Adjusted Non-GAAP results
$
105,264
$
54,192
32,181
$
0.23
Income tax
12,056
Interest expense
9,954
Depreciation and amortization
12,532
Share-based compensation
1,640
Adjusted EBITDA
$
68,363
(1) Primarily professional service fees
related to certain corporate initiatives, of which $0.2 million is
included in cost of goods sold, $0.9 million is included in general
and administrative expenses and $1.1 million is included in other
non-operating expenses.
Three Months Ended June 30,
2020
Net Revenue
Gross Profit
Operating Income
Net Income
Class A Net Income
Diluted Shares
Diluted EPS
GAAP Results
$
256,226
$
89,374
$
34,575
$
988
$
(212
)
123,818
$
—
Non-GAAP adjustments:
Foreign Currency impacts
—
—
—
710
676
—
0.01
Acquisition, disposal and integration
related costs (1)
6,821
6,943
12,360
12,360
11,767
—
0.09
COVID-19 costs (2)
—
1,831
2,138
2,138
2,035
—
0.02
Change in fair value of warrant
liabilities
—
—
16,382
16,382
758
0.13
Other
—
—
(46
)
381
363
—
—
Tax impact of adjustments
—
—
—
(3,722
)
(3,543
)
—
(0.03
)
Adjusted Non-GAAP results
$
263,047
$
98,148
$
49,027
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
related operating costs include $1.6 million of selling expense 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.
Six Months Ended June 30,
2021
Gross Profit
Operating Income
Net Income
Diluted EPS
GAAP Results
$
200,625
$
100,171
$
56,579
$
0.41
Non-GAAP adjustments:
Foreign currency impacts
—
—
71
—
Change in fair value of warrant
liabilities
—
—
455
—
Other (1)
158
1,066
2,422
0.02
Tax impact of adjustments
—
—
(428
)
—
Adjusted Non-GAAP results
$
200,783
$
101,237
59,099
$
0.43
Income tax
22,164
Interest expense
19,970
Depreciation and amortization
25,223
Share-based compensation
4,363
Adjusted EBITDA
$
130,819
(1) Primarily professional service fees
related to certain corporate initiatives, of which $0.2 million is
included in cost of goods sold, $0.9 million is included in general
and administrative expenses and $1.3 million is included in other
non-operating expenses.
Six Months Ended June 30,
2020
Net Revenue
Gross Profit
Operating Income
Net Income
Class A Net Income
Diluted EPS
GAAP Results
$
499,711
$
168,711
$
49,741
$
82,728
$
81,236
$
0.15
Non-GAAP adjustments:
Foreign currency impacts
—
—
—
996
946
0.01
Acquisition, disposal and integration
related costs (1)
6,821
7,963
27,446
27,301
25,856
0.21
Facility transition costs
—
3,681
5,711
5,711
5,385
0.04
COVID-19 Costs (2)
—
2,082
2,388
2,388
2,271
0.02
Other
—
—
(20
)
674
655
—
Change in fair-value of warrant
liabilities
—
—
—
(62,718
)
(62,718
)
—
Tax impact of adjustments
—
—
—
(9,236
)
(9,057
)
(0.07
)
Adjusted Non-GAAP results
$
506,532
$
182,437
$
85,266
47,844
$
44,574
$
0.36
Income tax
14,977
Interest expense
22,305
Depreciation and amortization
26,477
Share-based compensation
4,502
Adjusted EBITDA
$
116,105
(1) Acquisition, disposal and integration
operating costs include $8.0 million of selling expense, $7.2
million of general and administrative expenses and $4.3 million of
business combination transaction costs 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210804006062/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
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