Core Insights - The consumer staples sector is experiencing significant overselling, presenting potential buying opportunities for undervalued companies [1][2] Company Summaries - **National Beverage Corp (NASDAQ:FIZZ)**: The company reported weaker-than-expected quarterly sales, with a stock decline of approximately 10% over the past month and a 52-week low of $36.27. The RSI value is 28.6, indicating oversold conditions. The stock closed at $36.92, with a momentum score of 15.34 and a value score of 54.79 [7] - **Sprouts Farmers Market Inc (NASDAQ:SFM)**: Announced a $1 billion share repurchase authorization, but the stock fell around 22% over the past month, reaching a 52-week low of $107.65. The RSI value is 13.6, indicating strong oversold conditions. The stock closed at $108.80 [7] - **J&J Snack Foods Corp (NASDAQ:JJSF)**: Reported strong quarterly earnings with net sales of $454.3 million and adjusted EBITDA of $72.0 million. Despite this, the stock fell around 12% over the past month, with a 52-week low of $94.13. The RSI value is 28.4, indicating oversold conditions. The stock closed at $96.09 [7]

Group 1: Financial Performance - National Beverage Corp. reported record net sales of $331 million for Q1 fiscal 2026, slightly above last year's $329 million [2] - Earnings per share for the quarter ending August 2, 2025, were $0.60, with operating income rising to $71 million and operating cash flow reaching $59 million [2] - Cash reserves increased to $250 million, driven by improved pricing and product mix despite a slight decline in case volume [2] Group 2: Market Challenges - The stock hit a 52-week low near $37 in late September 2025, influenced by rising marketing costs, softer margins, and slower volume growth [3] - Revenue of $330.52 million fell short of analyst expectations of $354.18 million, leading to cautious sentiment in the market [3] - UBS downgraded the stock to a "Moderate sell" with a $39 price target, citing ongoing margin pressures despite investments in brand building and product innovation [3] Group 3: Investment Potential - National Beverage Corp. is considered a turnaround opportunity due to its strong brand presence, consistent innovation, and solid cash flow [4] - The company is increasingly discussed among the best bear market stocks due to its strong cash flow and potential for recovery [3]

First Quarter 2025 Earnings Announcement [Introduction and Overview](index=1&type=section&id=Introduction%20and%20Overview) National Beverage Corp. announced solid first-quarter results for August 2, 2025, driven by strong brands and price/mix improvements - National Beverage Corp. announced first-quarter results for August 2, 2025, on September 11, 2025[3](index=3&type=chunk) - The company reported solid operating performance in a challenging global environment, attributing success to strong brands and management strategy[4](index=4&type=chunk) - Net sales increased due to price/mix improvements, partially offset by a slight decline in case volume[4](index=4&type=chunk) - Interest income decreased by **$2.1 million** due to lower cash balances after a **$304 million** dividend payment in July 2024[4](index=4&type=chunk) - LaCroix, the most significant brand, achieved organic sales growth in the club channel, with new flavors showing impressive initial sales[4](index=4&type=chunk) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) National Beverage Corp. achieved record net sales of **$331 million**, gross profit of **$125 million**, and operating income of **$71 million** for the quarter First Quarter Financial Highlights | Metric | Amount (Millions USD) | | :----- | :-------------------- | | Net Sales | $331 | | Gross Profit | $125 | | Operating Income | $71 | | Earnings Per Share | $0.60 | | Operating Cash Flow | $59 | | Total Cash | $250 | Management Commentary and Strategic Outlook [Operational Performance and Brand Strength](index=2&type=section&id=Operational%20Performance%20and%20Brand%20Strength) The company emphasizes its commitment to innovation and brand integrity, with new product launches and a focus on developing new flavors - Innovation and brand trust are core to the company's strategy, with new product launches shaping the marketplace[6](index=6&type=chunk) - The company remains focused on developing new flavors and products that delight consumers, while safeguarding shareholder investments[6](index=6&type=chunk) [Innovation, Shareholder Value, and Future Confidence](index=2&type=section&id=Innovation%2C%20Shareholder%20Value%2C%20and%20Future%20Confidence) National Beverage Corp. reaffirms its commitment to shareholders, returning over **$1.5 billion** in dividends and growing revenue by **135%** over two decades - The company has returned more than **$1.5 billion** in dividends to shareholders over the past two decades[6](index=6&type=chunk) - Total revenue has grown by **135%** over the past two decades[6](index=6&type=chunk) - Despite global economic uncertainties, the company is confident its innovation and disciplined management will deliver strong results and long-term value[6](index=6&type=chunk) - The company will soon commemorate its 40th year as National Beverage Corp[6](index=6&type=chunk) Consolidated Financial Results [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three fiscal months ended August 2, 2025, net sales slightly increased to **$330.5 million**, while net income decreased to **$55.8 million** Consolidated Results for Three Fiscal Months Ended | Metric (in thousands, except per share amounts) | August 2, 2025 | July 27, 2024 | Change (YoY) | | :-------------------------------------------- | :------------- | :------------ | :----------- | | Net Sales | $330,515 | $329,473 | +$1,042 | | Net Income | $55,760 | $56,780 | -$1,020 | | Earnings Per Common Share - Basic | $0.60 | $0.61 | -$0.01 | | Earnings Per Common Share - Diluted | $0.60 | $0.61 | -$0.01 | | Average Common Shares Outstanding - Basic | 93,620 | 93,569 | +51 | | Average Common Shares Outstanding - Diluted | 93,699 | 93,667 | +32 | [Forward-Looking Statements Disclaimer](index=3&type=section&id=Forward-Looking%20Statements%20Disclaimer) This section provides a standard disclaimer for forward-looking statements, noting inherent risks and uncertainties detailed in SEC filings - The press release includes forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995[9](index=9&type=chunk) - Forward-looking statements involve risks, uncertainties, and factors described in SEC filings, which may cause actual results to differ[9](index=9&type=chunk) - The Company disclaims any obligation to update or announce revisions to any forward-looking statements[9](index=9&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended August 2, 2025 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission file number 1-14170 NATIONAL BEVERAGE CORP. (Exact name of registrant as specified in its charter) Delaware 59-2605822 (State of incorporation) (I.R.S. Employer Identifica ...

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--National Beverage Corp. (NASDAQ: FIZZ) today announced results for its first quarter ended August 2, 2025. Net sales grew to a record $331 million; Gross profit increased 80 basis points to $125 million; Operating income increased to $71 million; Earnings per share was $.60 and; Operating cash flow of $59 million increased total cash to $250 million. "Our solid operating performance amid the challenging global environment, marked by uncertainty in consume. ...

[Executive Summary & Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Highlights) [Fourth Quarter Performance](index=1&type=section&id=1.1%20Fourth%20Quarter%20Performance) The company reported record net sales, operating profit, and net income for the fourth quarter, driven by volume growth and new product launches Q4 FY2025 Key Financial Metrics | Metric | Q4 FY2025 | Q4 FY2024 | Change (%) | | :----- | :-------- | :-------- | :--------- | | Net Sales | $314 million | $297.315 million | +5.5% | | Operating Income | $57.5 million | N/A | +8.6% | | Net Income | $44.8 million | $43.721 million | +2.4% | | EPS | $0.48 | $0.47 | +2.1% | - LaCroix's recent innovations began shipping in the fourth quarter, providing a **growth stimulus** in a challenging consumer environment[2](index=2&type=chunk) [Fiscal Year Performance](index=1&type=section&id=1.2%20Fiscal%20Year%20Performance) The full fiscal year demonstrated overall growth with increases in net sales, gross margin, operating income, and earnings per share FY2025 Key Financial Metrics | Metric | FY2025 | FY2024 | Change (%) | | :----- | :----- | :----- | :--------- | | Net Sales | $1.2 billion | $1.191 billion | +0.8% | | Gross Margin | 37.0% of sales | N/A | N/A | | Operating Income | $235 million | N/A | +7.8% | | EPS | $2.00 | $1.89 | +5.8% | [Operational & Marketing Initiatives](index=2&type=section&id=Operational%20%26%20Marketing%20Initiatives) [LaCroix Brand Innovations & Marketing](index=2&type=section&id=2.1%20LaCroix%20Brand%20Innovations%20%26%20Marketing) The company launched multi-faceted marketing campaigns and strategic partnerships to enhance LaCroix's brand awareness and drive growth - Initiated various LaCroix Summer marketing campaigns, including a multi-city bus tour featuring the captivating graphics of LaCroix Sunshine[4](index=4&type=chunk) - Partnered with men's and women's professional soccer teams and WNBA teams, and continued its partnership with the Florida Panthers to **enhance brand awareness**[4](index=4&type=chunk) - Emphasizes creative thinking in marketing, social media, BrandED (in-store tasting experience), and MerchMx (creative, themed displays)[4](index=4&type=chunk) - New flavors are meticulously developed, focusing on appealing names and unique taste to ensure **strong consumer connection** before release[4](index=4&type=chunk) [Strategic Outlook & Company Philosophy](index=2&type=section&id=2.2%20Strategic%20Outlook%20%26%20Company%20Philosophy) The company expresses confidence for the new fiscal year, citing consumer resilience and a deliberate, long-term operational focus - The company begins its new fiscal year with optimism that its innovative brands are well-positioned to deliver a **'healthy' future** to consumers and shareholders[4](index=4&type=chunk) - Highlights the **resilience of the U.S. consumer** and the company's deliberate, long-term operational focus amid current events[4](index=4&type=chunk) [Consolidated Financial Results](index=3&type=section&id=Consolidated%20Financial%20Results) [Consolidated Statements of Operations](index=3&type=section&id=3.1%20Consolidated%20Statements%20of%20Operations) The statements detail financial performance for the fourth quarter and full fiscal year, comparing key metrics against the prior year Consolidated Statements of Operations Highlights | Metric (in thousands, except per share) | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :------------------------------------ | :-------- | :-------- | :----- | :----- | | Net Sales | $313,629 | $297,315 | $1,201,354 | $1,191,694 | | Net Income | $44,761 | $43,721 | $186,821 | $176,732 | | Earnings Per Common Share - Basic | $0.48 | $0.47 | $2.00 | $1.89 | | Earnings Per Common Share - Diluted | $0.48 | $0.47 | $1.99 | $1.89 | | Average Common Shares Outstanding - Basic | 93,620 | 93,550 | 93,607 | 93,429 | | Average Common Shares Outstanding - Diluted | 93,684 | 93,666 | 93,685 | 93,630 | [Forward-Looking Statements & Disclosures](index=3&type=section&id=Forward-Looking%20Statements%20%26%20Disclosures) [Forward-Looking Statements & Fiscal Period Details](index=3&type=section&id=4.1%20Forward-Looking%20Statements%20%26%20Fiscal%20Period%20Details) This section contains standard disclosures on forward-looking statements, associated risks, and clarifies the duration of reported fiscal periods - The press release contains forward-looking statements, which involve risks and uncertainties that may cause actual results to differ[9](index=9&type=chunk) - The Company **disclaims any obligation to update** or announce revisions to any forward-looking statements[9](index=9&type=chunk) - The Fourth Quarter and Fiscal Year Ended May 3, 2025, consisted of **14 and 53 weeks**, respectively[9](index=9&type=chunk)

[Part I: Business and Risks](index=4&type=section&id=Part%20I) This section provides an overview of the company's business operations, strategic focus, and the various risks it faces, including competitive pressures, regulatory changes, and cybersecurity threats [Business Overview](index=4&type=section&id=ITEM%201.%20BUSINESS) National Beverage Corp. innovates and markets a portfolio of sparkling waters, juices, and energy drinks, emphasizing a 'Healthy Transformation' strategy for health-conscious consumers with brands like LaCroix - The company's strategy centers on developing healthier beverages for 'crossover consumers' who are moving away from artificially sweetened or high-calorie drinks[14](index=14&type=chunk) - LaCroix Sparkling Water is the company's most significant brand and leads the premium domestic sparkling water category. Recent flavor innovations include Sunshine, Strawberry Peach, and Mojito[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) - The company operates 12 strategically located production facilities, enabling efficient distribution across the U.S. This vertically integrated model is considered a competitive advantage over competitors reliant on third-party bottlers[38](index=38&type=chunk)[39](index=39&type=chunk) - As of May 3, 2025, the company employed approximately **1,681 people**, with **384** covered by collective bargaining agreements[63](index=63&type=chunk) [Risk Factors](index=10&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company faces key risks including brand image damage, intense competition, customer consolidation, volatile raw material and energy costs, government regulations, rising labor costs, and potential cybersecurity incidents - The beverage industry is extremely competitive, with rivals like Coca-Cola, PepsiCo, and Nestlé possessing substantially greater financial and marketing resources[56](index=56&type=chunk)[73](index=73&type=chunk) - The cost and availability of key raw materials (aluminum, resin, juice) and energy are subject to price volatility and supply chain disruptions, which could adversely affect financial results[75](index=75&type=chunk) - Potential changes in government regulations, such as new taxes on sweetened beverages or restrictions on certain ingredients, could increase costs or reduce demand for some products[76](index=76&type=chunk) - The business depends on information technology, and a cybersecurity incident could lead to system shutdowns, data breaches, and a material adverse effect on operations and financial condition[82](index=82&type=chunk) [Cybersecurity](index=12&type=section&id=ITEM%201C.%20CYBERSECURITY) The company manages cybersecurity risks through a multi-tiered strategy overseen by the Audit Committee, involving internal and external resources, employee training, and an incident response plan, with no material incidents in Fiscal 2025 - The Board's Audit Committee has oversight responsibility for cybersecurity and other information technology risks[87](index=87&type=chunk) - The company's management team, led by the Director of Information Technology, is responsible for managing material cybersecurity risks[87](index=87&type=chunk) - No cybersecurity incidents in Fiscal 2025 were reasonably likely to have a material effect on the company's business strategy, operations, or financial condition[86](index=86&type=chunk) [Properties](index=12&type=section&id=ITEM%202.%20PROPERTIES) National Beverage Corp. operates twelve production facilities, ten owned and two leased, totaling approximately two million square feet across ten states, which are deemed sufficient for current needs - The company owns ten production facilities and leases two, located in Maryland and Florida, with leases expiring through **2035**[88](index=88&type=chunk) [Part II: Financial Information and Performance](index=13&type=section&id=Part%20II) This section details the company's financial performance, including market information for its common stock, management's discussion and analysis of operations and liquidity, market risk disclosures, and audited financial statements [Market for Common Equity and Stockholder Matters](index=13&type=section&id=ITEM%205.%20MARKET%20FOR%20REGISTRANT%27S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) The company's common stock trades on NASDAQ under 'FIZZ'; in Fiscal 2025, a special cash dividend of **$3.25 per share** totaling **$304.1 million** was paid, with no share repurchases despite an authorized program - A special cash dividend of **$3.25 per share**, aggregating **$304.1 million**, was paid on July 24, 2024[95](index=95&type=chunk) - No shares of common stock were repurchased during the fiscal year ended May 3, 2025. Approximately **1.9 million shares** remain available for repurchase under the current authorization[95](index=95&type=chunk) [Management's Discussion and Analysis (MD&A)](index=15&type=section&id=ITEM%207.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) In Fiscal 2025, net sales slightly increased to **$1.2 billion** due to higher prices, gross margin improved to **37.0%**, and net income rose to **$186.8 million**, maintaining strong liquidity with **$193.8 million** cash and no debt despite a large dividend payment [Results of Operations](index=15&type=section&id=Results%20of%20Operations) Fiscal 2025 saw a slight increase in net sales driven by higher average selling prices, improved gross profit and margin due to lower packaging costs, and a rise in net income despite reduced SG&A expenses Fiscal 2025 vs. Fiscal 2024 Performance | Metric | Fiscal 2025 | Fiscal 2024 | Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $1,201.4M | $1,191.7M | +0.8% | 1.7% increase in avg. selling price, offset by 0.9% volume decrease | | **Gross Profit** | $443.9M | $428.5M | +3.6% | Decline in packaging costs and higher selling prices | | **Gross Margin** | 37.0% | 36.0% | +1.0 ppt | Favorable cost of sales and pricing | | **SG&A Expenses** | $208.5M | $209.9M | -0.7% | Reduced marketing spending and lower shipping costs | | **Net Income** | $186.8M | $176.7M | +5.7% | Higher gross profit and lower SG&A | | **Diluted EPS** | $1.99 | $1.89 | +5.3% | Increased net income | [Liquidity and Financial Condition](index=16&type=section&id=Liquidity%20and%20Financial%20Condition) The company's cash decreased to **$193.8 million** due to a **$304.1 million** special dividend, yet operating cash flow remained strong at **$206.7 million**, with increased capital expenditures and **$150 million** in unused credit facilities - The company's cash position decreased by **$133.2 million** to **$193.8 million**, primarily due to the payment of a **$304.1 million** special cash dividend[118](index=118&type=chunk)[120](index=120&type=chunk) - Net cash provided by operating activities was strong at **$206.7 million** for Fiscal 2025, compared to **$197.9 million** in Fiscal 2024[118](index=118&type=chunk) - Capital expenditures increased to **$36.3 million** in Fiscal 2025 from **$30.2 million** in Fiscal 2024, primarily for capacity expansion and efficiency projects[119](index=119&type=chunk) - The company maintained unsecured revolving credit facilities totaling **$150 million** with no borrowings outstanding at fiscal year-end[116](index=116&type=chunk) [Contractual Obligations](index=17&type=section&id=CONTRACTUAL%20OBLIGATIONS) As of May 3, 2025, the company's total contractual obligations amounted to **$97.474 million**, primarily consisting of operating lease commitments and short-term purchase commitments Contractual Obligations as of May 3, 2025 (In thousands) | Obligation Type | Total | Less than 1 Year | 2 to 3 Years | 4 to 5 Years | More than 5 Years | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating leases | $82,856 | $17,388 | $28,010 | $20,441 | $17,017 | | Purchase commitments | $14,618 | $14,618 | - | - | - | | **Total** | **$97,474** | **$32,006** | **$28,010** | **$20,441** | **$17,017** | [Market Risk Disclosures](index=18&type=section&id=ITEM%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company manages market risks from commodity price fluctuations and interest rate changes, utilizing derivative instruments for materials like aluminum and addressing interest rate exposure primarily through its short-duration investment securities - The company uses derivative financial instruments, such as aluminum swap contracts, to partially mitigate exposure to changes in raw material costs[131](index=131&type=chunk) - As of May 3, 2025, the company had no outstanding borrowings, so its primary interest rate risk is related to its cash equivalent investments[132](index=132&type=chunk) [Financial Statements and Supplementary Data](index=19&type=section&id=ITEM%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This section presents the company's audited consolidated financial statements for Fiscal 2025, including the balance sheet, income statement, cash flow statement, and statement of shareholders' equity, along with detailed notes and the independent auditor's report [Consolidated Financial Statements](index=19&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements for Fiscal 2025 show total assets of **$672.86 million**, net sales of **$1.201 billion**, net income of **$186.821 million**, and net cash from operating activities of **$206.696 million** Key Financial Data Summary (Fiscal Year 2025) | Metric | Amount (in thousands) | | :--- | :--- | | **Balance Sheet (as of May 3, 2025)** | | | Total Current Assets | $406,928 | | Total Assets | $672,860 | | Total Current Liabilities | $140,502 | | Total Liabilities | $228,861 | | Total Shareholders' Equity | $443,999 | | **Income Statement (for FY ended May 3, 2025)** | | | Net Sales | $1,201,354 | | Gross Profit | $443,941 | | Operating Income | $235,459 | | Net Income | $186,821 | | **Cash Flow Statement (for FY ended May 3, 2025)** | | | Net Cash from Operating Activities | $206,696 | | Net Cash used in Investing Activities | ($36,275) | | Net Cash used in Financing Activities | ($303,633) | [Notes to Consolidated Financial Statements](index=24&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, including the 53-week Fiscal 2025, classification of shipping costs, absence of debt, related-party transactions with CMA totaling **$12.0 million**, use of **$57.7 million** notional aluminum swap derivatives, and **$2.9 million** in multi-employer pension plan contributions - Fiscal 2025 consisted of **53 weeks**, whereas Fiscal 2024 and 2023 were **52-week** years[144](index=144&type=chunk) - The company incurred management fees of **$12.0 million** in Fiscal 2025 payable to Corporate Management Advisors, Inc. (CMA), a company owned by the Chairman and CEO[176](index=176&type=chunk) - The company uses aluminum swap contracts to hedge against commodity price volatility. As of May 3, 2025, the notional amount of these contracts was **$57.7 million**[177](index=177&type=chunk) - The company contributes to multi-employer pension plans, with total contributions amounting to **$2.9 million** in Fiscal 2025[197](index=197&type=chunk) [Report of Independent Registered Public Accounting Firm](index=33&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Grant Thornton LLP issued an unqualified opinion on the company's Fiscal 2025 consolidated financial statements and the effectiveness of its internal control over financial reporting, reporting no critical audit matters - The audit firm Grant Thornton LLP issued an unqualified opinion, stating the financial statements are presented fairly in all material respects[207](index=207&type=chunk) - The auditors also issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of May 3, 2025[208](index=208&type=chunk)[215](index=215&type=chunk) [Controls and Procedures](index=36&type=section&id=ITEM%209A.%20CONTROLS%20AND%20PROCEDURES) As of May 3, 2025, the CEO and principal financial officer concluded that both disclosure controls and internal control over financial reporting were effective, with no material changes reported during the last fiscal quarter - Management concluded that the company's disclosure controls and procedures were effective as of the end of the fiscal year[230](index=230&type=chunk) - Management's evaluation concluded that the company's internal control over financial reporting was effective as of May 3, 2025[233](index=233&type=chunk) [Part III: Corporate Governance and Executive Compensation](index=37&type=section&id=Part%20III) This section identifies the company's executive officers and incorporates detailed information on directors, corporate governance, executive compensation, security ownership, and related party transactions by reference from the 2025 Proxy Statement [Directors, Executive Officers and Corporate Governance](index=37&type=section&id=ITEM%2010.%20DIRECTORS%2C%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE) The report lists key executive officers, including Nick A. Caporella (Chairman & CEO), Joseph G. Caporella (President), and George R. Bracken (EVP - Finance), with further details on directors and governance incorporated by reference Executive Officers as of May 3, 2025 | Name | Age | Position | | :--- | :--- | :--- | | Nick A. Caporella | 89 | Chairman of the Board and Chief Executive Officer | | Joseph G. Caporella | 64 | President | | George R. Bracken | 80 | Executive Vice President - Finance | [Part IV: Exhibits and Financial Statement Schedules](index=38&type=section&id=Part%20IV) This final part lists the financial statements, schedules, and exhibits filed with the Form 10-K, including consents from independent auditors and certifications by the CEO and CFO [Exhibits and Signatures](index=38&type=section&id=ITEM%2015.%20EXHIBITS%2C%20FINANCIAL%20STATEMENT%20SCHEDULES) This section indexes all exhibits filed with the 10-K, such as corporate documents, material contracts, and compensation plans, and includes required signatures from the company's officers and directors - The report includes certifications from the Chief Executive Officer and Principal Financial Officer as required by Sections 302 and 906 of the Sarbanes-Oxley Act[257](index=257&type=chunk) - The report was signed by key executives, including George R. Bracken (Principal Financial Officer), Nick A. Caporella (CEO), and Joseph G. Caporella (President)[260](index=260&type=chunk)[261](index=261&type=chunk)

Core Insights - The article emphasizes the investment philosophy focused on small cap companies, highlighting the importance of identifying mispriced securities through understanding financial drivers and utilizing DCF model valuation [1] Investment Philosophy - The investment approach is not confined to traditional categories such as value, dividend, or growth investing, but rather considers all prospects of a stock to assess risk-to-reward [1]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) National Beverage Corp. reports challenging Q3 performance due to weather and fires, while trailing twelve-month results show growth in sales and profit [Company Announcement & Q3 Overview](index=1&type=section&id=Company%20Announcement%20%26%20Q3%20Overview) Q3 performance was challenging due to unpredictable winter weather and Southern California fires, negatively impacting sales volumes in key markets - Q3 performance was challenging due to unpredictable winter weather and Southern California fires, which adversely impacted volumes in key markets[2](index=2&type=chunk) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Q3 net sales reached $267 million with a 5% operating profit increase, while trailing twelve-month net sales grew to $1.2 billion with a 10% net income rise Key Financial Highlights (Q3 & Trailing Twelve Months) | Metric | Three Months Ended Jan 25, 2025 | Trailing Twelve Months Ended Jan 25, 2025 | | :----------------- | :------------------------------ | :---------------------------------------- | | Net Sales | $267 million | $1.2 billion | | Operating Profit | $51 million (up 5%) | $231 million (up 8%) | | Net Income | N/A | $186 million (up 10%) | | Earnings Per Share | $0.42 | $1.99 (up $0.18) | | Cash | $149 million | N/A | [Operational Review & Strategic Initiatives](index=2&type=section&id=Operational%20Review%20%26%20Strategic%20Initiatives) The company strengthens brand awareness through marketing and sponsorships, while LaCroix innovates the sparkling water category with a new "creativity" [Marketing & Brand Strategy](index=2&type=section&id=Marketing%20%26%20Brand%20Strategy) Marketing efforts focus on in-store displays, consumer engagements, social media, and sports sponsorships to enhance brand awareness and health alignment - Marketing strategy reinforces brand awareness through in-store displays, consumer 'experiential' engagements, social media, and sponsorships of women's soccer and youth sports[4](index=4&type=chunk) - The company aligns with the media's focus on improving health by promoting its products as 'delicious and innocent refreshment'[4](index=4&type=chunk) [Product Innovation](index=2&type=section&id=Product%20Innovation) LaCroix is developing and testing a new "creativity" for sparkling water, showing promising results at Natural Products Expo West - LaCroix is testing a new 'creativity' at Natural Products Expo West to innovate the sparkling water category[4](index=4&type=chunk) - The new concept is currently exceeding expectations and is considered a potential **'game changer'**[4](index=4&type=chunk) [Consolidated Financial Results](index=3&type=section&id=Consolidated%20Financial%20Results) This section details the company's financial performance for the three months and trailing twelve months ended January 25, 2025 [Three Months Ended January 25, 2025](index=3&type=section&id=Three%20Months%20Ended%20January%2025%2C%202025) Net sales slightly decreased to $267.05 million, while net income and EPS remained stable for the three months ended January 25, 2025 Consolidated Results for Three Months Ended | Metric | Jan. 25, 2025 (in thousands) | Jan. 27, 2024 (in thousands) | Change (YoY) | | :--------------------------- | :--------------------------- | :--------------------------- | :----------- | | Net Sales | $267,050 | $270,065 | -$3,015 (-1.1%) | | Net Income | $39,643 | $39,592 | +$51 (+0.1%) | | Basic EPS | $0.42 | $0.42 | $0.00 (0%) | | Diluted EPS | $0.42 | $0.42 | $0.00 (0%) | | Average Basic Shares Outstanding | 93,617 | 93,454 | +163 | | Average Diluted Shares Outstanding | 93,691 | 93,640 | +51 | [Trailing Twelve Months Ended January 25, 2025](index=3&type=section&id=Trailing%20Twelve%20Months%20Ended%20January%2025%2C%202025) Net sales increased to $1.185 billion, with net income rising 9.7% and EPS increasing to $1.99 for the trailing twelve months Consolidated Results for Trailing Twelve Months Ended | Metric | Jan. 25, 2025 (in thousands) | Jan. 27, 2024 (in thousands) | Change (YoY) | | :--------------------------- | :--------------------------- | :--------------------------- | :----------- | | Net Sales | $1,185,040 | $1,181,078 | +$3,962 (+0.3%) | | Net Income | $185,781 | $169,314 | +$16,467 (+9.7%) | | Basic EPS | $1.99 | $1.81 | +$0.18 (+9.9%) | | Diluted EPS | $1.98 | $1.81 | +$0.17 (+9.4%) | | Average Basic Shares Outstanding | 93,590 | 93,380 | +210 | | Average Diluted Shares Outstanding | 93,680 | 93,618 | +62 | [Forward-Looking Statements Disclaimer](index=3&type=section&id=Forward-Looking%20Statements%20Disclaimer) This disclaimer addresses forward-looking statements, highlighting inherent risks and uncertainties, and disclaims any obligation for future updates - The press release contains forward-looking statements, subject to risks and uncertainties described in SEC filings[7](index=7&type=chunk) - The Company disclaims any obligation to update or revise forward-looking statements[7](index=7&type=chunk)

[PART I - FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section details the unaudited financial statements, notes, and management's analysis of National Beverage Corp's performance and financial position [ITEM 1. FINANCIAL STATEMENTS (Unaudited)](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements of National Beverage Corp. for the periods ended January 25, 2025, and January 27, 2024, including balance sheets, income statements, comprehensive income statements, shareholders' equity statements, and cash flow statements, along with detailed notes on significant accounting policies, property, plant and equipment, leases, debt, derivative financial instruments, related party transactions, and cash dividends [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and equity at specific points in time **Condensed Consolidated Balance Sheets (In thousands):** | Item | January 25, 2025 | April 27, 2024 | | :-------------------------------- | :--------------- | :------------- | | Total Assets | $594,020 | $770,153 | | Total Liabilities | $193,784 | $210,641 | | Total Shareholders' Equity | $400,236 | $559,512 | | Cash and cash equivalents | $149,222 | $327,047 | | Trade receivables, net | $90,903 | $102,837 | | Inventories | $85,032 | $84,603 | | Total current assets | $352,570 | $536,872 | | Total current liabilities | $119,614 | $137,927 | - Total assets decreased by **$176.1 million (22.9%)** from April 27, 2024, to January 25, 2025, primarily driven by a significant reduction in cash and cash equivalents[6](index=6&type=chunk) - Total shareholders' equity decreased by **$159.3 million (28.5%)** over the same period, largely due to the special cash dividend paid[6](index=6&type=chunk) [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This section outlines the company's revenues, expenses, and net income over specific reporting periods **Condensed Consolidated Statements of Income (In thousands, except per share amounts):** | Item | 3 Months Ended Jan 25, 2025 | 3 Months Ended Jan 27, 2024 | YoY Change (3M) | 9 Months Ended Jan 25, 2025 | 9 Months Ended Jan 27, 2024 | YoY Change (9M) | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------- | :-------------------------- | :-------------------------- | :-------------- | | Net sales | $267,050 | $270,065 | -1.1% | $887,725 | $894,379 | -0.7% | | Gross profit | $98,950 | $97,031 | +2.0% | $330,733 | $319,370 | +3.6% | | Operating income | $50,577 | $48,181 | +5.0% | $177,959 | $165,585 | +7.5% | | Net income | $39,643 | $39,592 | +0.1% | $142,060 | $133,011 | +6.8% | | Basic EPS | $0.42 | $0.42 | 0.0% | $1.52 | $1.42 | +7.0% | | Diluted EPS | $0.42 | $0.42 | 0.0% | $1.52 | $1.42 | +7.0% | - For the three months ended January 25, 2025, net sales decreased by **1.1%** while gross profit increased by **2.0%** and operating income increased by **5.0%**. Net income remained relatively flat[7](index=7&type=chunk) - For the nine months ended January 25, 2025, net sales decreased by **0.7%**, but gross profit, operating income, and net income all saw increases of **3.6%**, **7.5%**, and **6.8%** respectively, indicating improved profitability despite slightly lower sales[7](index=7&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section details net income and other comprehensive income components, reflecting total changes in equity from non-owner sources **Condensed Consolidated Statements of Comprehensive Income (In thousands):** | Item | 3 Months Ended Jan 25, 2025 | 3 Months Ended Jan 27, 2024 | YoY Change (3M) | 9 Months Ended Jan 25, 2025 | 9 Months Ended Jan 27, 2024 | YoY Change (9M) | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------- | :-------------------------- | :-------------------------- | :-------------- | | Net income | $39,643 | $39,592 | +0.1% | $142,060 | $133,011 | +6.8% | | Cash flow hedges (net of tax) | $237 | $2,732 | -91.3% | $1,832 | $3,376 | -45.7% | | Comprehensive income | $39,880 | $42,324 | -5.7% | $143,892 | $136,387 | +5.5% | - Other comprehensive income from cash flow hedges significantly decreased for both the three-month and nine-month periods, impacting the overall comprehensive income trend[9](index=9&type=chunk) [Condensed Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) This section tracks changes in the company's equity accounts, including retained earnings and common stock, over time **Condensed Consolidated Statements of Shareholders' Equity (In thousands):** | Item | Jan 25, 2025 (9M) | Jan 27, 2024 (9M) | | :-------------------------------- | :---------------- | :---------------- | | Retained Earnings (Beginning) | $535,077 | $358,345 | | Net income | $142,060 | $133,011 | | Common stock cash dividend | $(304,148) | $- | | Retained Earnings (End) | $372,989 | $491,356 | | Total Shareholders' Equity (End) | $400,236 | $510,221 | - A significant common stock cash dividend of **$304.1 million** was paid during the nine months ended January 25, 2025, which substantially reduced retained earnings and total shareholders' equity compared to the prior year period where no such dividend was paid[11](index=11&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section categorizes cash inflows and outflows from operating, investing, and financing activities over specific periods **Condensed Consolidated Statements of Cash Flows (In thousands, Nine Months Ended):** | Item | January 25, 2025 | January 27, 2024 | YoY Change | | :-------------------------------- | :--------------- | :--------------- | :--------- | | Net cash provided by operating activities | $146,621 | $137,465 | +6.7% | | Net cash used in investing activities | $(20,813) | $(19,419) | +7.2% | | Net cash (used in) provided by financing activities | $(303,633) | $841 | -36190.0% | | Net (Decrease) Increase in Cash and Cash Equivalents | $(177,825) | $118,887 | -249.5% | | Cash and Cash Equivalents - End of Period | $149,222 | $276,961 | -46.2% | - Net cash provided by operating activities increased by **6.7%** to **$146.6 million** for the nine months ended January 25, 2025[12](index=12&type=chunk) - The company experienced a significant net decrease in cash and cash equivalents of **$177.8 million**, primarily due to **$304.1 million** in dividends paid on common stock, contrasting with a net increase of **$118.9 million** in the prior year period[12](index=12&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the condensed consolidated financial statements [1. SIGNIFICANT ACCOUNTING POLICIES](index=8&type=section&id=1.%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This section describes the key accounting principles and methods used in preparing the financial statements - The Company operates as a single operating segment, developing, producing, marketing, and selling sparkling waters, juices, energy drinks, and carbonated soft drinks primarily in the United States and Canada[13](index=13&type=chunk)[16](index=16&type=chunk) - Recently issued accounting pronouncements include ASU 2024-03 (Expense Disaggregation), ASU 2023-09 (Income Tax Disclosures), and ASU 2023-07 (Segment Reporting), with the Company currently evaluating their impact, but not expecting a material impact from ASU 2023-09 and ASU 2023-07[25](index=25&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) **Key Accounting Policy Data (In thousands):** | Item | January 25, 2025 | April 27, 2024 | | :-------------------------------- | :--------------- | :------------- | | Trade Receivables, Net (Allowance for credit losses) | $1,300 | $900 | | Inventories (Finished goods) | $46,100 | $50,300 | | Inventories (Raw materials) | $38,900 | $34,300 | **Shipping and Handling Costs (In millions):** | Period | January 25, 2025 | January 27, 2024 | | :-------------------------------- | :--------------- | :--------------- | | Three Months Ended | $17.5 | $17.7 | | Nine Months Ended | $55.5 | $58.3 | **Marketing Costs (In millions):** | Period | January 25, 2025 | January 27, 2024 | | :-------------------------------- | :--------------- | :--------------- | | Three Months Ended | $10.1 | $11.0 | | Nine Months Ended | $33.2 | $35.1 | [2. PROPERTY, PLANT AND EQUIPMENT, NET](index=10&type=section&id=2.%20PROPERTY,%20PLANT%20AND%20EQUIPMENT,%20NET) This section details the company's tangible long-term assets, their depreciation, and capital investments **Property, Plant and Equipment, Net (In thousands):** | Item | January 25, 2025 | April 27, 2024 | | :-------------------------------- | :--------------- | :------------- | | Total Property, Plant and Equipment | $416,010 | $395,668 | | Less: Accumulated Depreciation | $(250,425) | $(235,938) | | Property, Plant and Equipment, Net | $165,585 | $159,730 | | Construction-in-progress | $42,000 | $32,500 | **Depreciation Expense (In millions):** | Period | January 25, 2025 | January 27, 2024 | | :-------------------------------- | :--------------- | :--------------- | | Three Months Ended | $4.9 | $4.8 | | Nine Months Ended | $15.0 | $14.0 | - Net property, plant and equipment increased by **$5.8 million**, with construction-in-progress rising by **$9.5 million**, indicating ongoing capital investments[29](index=29&type=chunk) [3. LEASES](index=10&type=section&id=3.%20LEASES) This section outlines the company's lease agreements, associated costs, and future payment obligations **Operating Lease Costs (In millions):** | Period | January 25, 2025 | January 27, 2024 | | :-------------------------------- | :--------------- | :--------------- | | Three Months Ended | $4.2 | $4.1 | | Nine Months Ended | $12.5 | $11.8 | **Operating Lease Metrics:** | Metric | January 25, 2025 | April 27, 2024 | | :-------------------------------- | :--------------- | :------------- | | Weighted-average remaining lease term | 4.85 years | 4.80 years | | Weighted average discount rate | 4.50% | 4.30% | **Future Minimum Lease Payments (In thousands, as of Jan 25, 2025):** | Fiscal Year | Amount | | :-------------------------------- | :----- | | 2025 (Remaining quarter) | $3,720 | | 2026 | $15,120 | | 2027 | $13,613 | | 2028 | $8,769 | | 2029 | $7,640 | | Thereafter | $13,238 | | Total minimum lease payments | $62,100 | | Present value of minimum lease payments | $55,332 | - Operating lease costs increased slightly for both the three-month and nine-month periods. The weighted-average remaining lease term and discount rate also saw minor increases[30](index=30&type=chunk) [4. DEBT](index=11&type=section&id=4.%20DEBT) This section describes the company's credit facilities and borrowing arrangements, including availability and compliance - The Company maintains unsecured revolving credit facilities totaling **$100 million** and an unsecured revolving term loan facility of **$50 million**, with no outstanding borrowings under either facility as of January 25, 2025, or April 27, 2024[33](index=33&type=chunk)[34](index=34&type=chunk) - As of January 25, 2025, **$97.8 million** was available for borrowings under the credit facilities, and the subsidiary was in compliance with all loan covenants[33](index=33&type=chunk)[35](index=35&type=chunk) [5. DERIVATIVE FINANCIAL INSTRUMENTS](index=12&type=section&id=5.%20DERIVATIVE%20FINANCIAL%20INSTRUMENTS) This section explains the company's use of derivatives for hedging and their impact on financial results - The Company uses aluminum swap contracts as cash flow hedges to mitigate exposure to changes in aluminum costs, with gains/losses reported in accumulated other comprehensive income (AOCI) and reclassified to cost of sales[37](index=37&type=chunk) **Derivative Financial Instruments - Net Change to AOCI (In thousands):** | Period | January 25, 2025 | January 27, 2024 | | :-------------------------------- | :--------------- | :--------------- | | Three Months Ended | $237 | $2,732 | | Nine Months Ended | $1,832 | $3,376 | **Fair Value of Derivative Instruments (In thousands, as of Jan 25, 2025):** | Item | Amount | | :-------------------------------- | :----- | | Notional amount of outstanding aluminum swap contracts | $73,000 | | Fair value of derivative asset | $8,200 | | Fair value of derivative liability | $100 | - As of January 25, 2025, the notional amount of outstanding aluminum swap contracts was **$73.0 million**, with an unrealized gain of **$6.7 million** before tax expected to be reclassified to earnings over the next 12 months[37](index=37&type=chunk) [6. RELATED PARTIES](index=12&type=section&id=6.%20RELATED%20PARTIES) This section discloses transactions and agreements with entities or individuals closely related to the company - The Company has a management agreement with Corporate Management Advisors, Inc. (CMA), owned by its Chairman and CEO, for an annual base fee of **one percent of consolidated net sales**[39](index=39&type=chunk) **Management Fees to CMA (In millions):** | Period | January 25, 2025 | January 27, 2024 | | :-------------------------------- | :--------------- | :--------------- | | Three Months Ended | $2.7 | $2.7 | | Nine Months Ended | $8.9 | $9.0 | **Amounts Due to CMA (In millions):** | Date | Amount | | :-------------------------------- | :----- | | January 25, 2025 | $1.6 | | April 27, 2024 | $3.0 | [7. CASH DIVIDEND](index=13&type=section&id=7.%20CASH%20DIVIDEND) This section details the special cash dividend declared and paid by the company during the period - On June 12, 2024, the Company declared a special cash dividend of **$3.25 per share**, totaling **$304.1 million**, which was paid on July 24, 2024[41](index=41&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=13&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on the Company's financial performance and condition, highlighting key operational results for the three and nine months ended January 25, 2025, compared to the prior year, and discussing liquidity, capital resources, cash flows, and financial position [OVERVIEW](index=13&type=section&id=OVERVIEW) This section provides a general introduction to National Beverage Corp.'s business, products, market strategy, and operational influences - National Beverage Corp. focuses on a distinctive portfolio of sparkling waters, juices, energy drinks, and carbonated soft drinks, primarily in the US and Canada, with a strategy geared towards health-conscious consumers and innovative product development[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) - The Company utilizes a hybrid distribution system (warehouse and direct-store delivery) to service a diverse customer base and is exploring options to expand distribution to other regions[45](index=45&type=chunk) - Operating results are influenced by raw material costs, supply chain, seasonality (higher sales in summer), and weather conditions[46](index=46&type=chunk) [RESULTS OF OPERATIONS](index=14&type=section&id=RESULTS%20OF%20OPERATIONS) This section analyzes the company's financial performance, comparing key revenue and profitability metrics across periods [Three Months Ended January 25, 2025 compared to Three Months Ended January 27, 2024](index=14&type=section&id=Three%20Months%20Ended%20January%2025,%202025%20(third%20quarter%20of%20fiscal%202025)%20compared%20to%20Three%20Months%20Ended%20January%2027,%202024%20(third%20quarter%20of%20fiscal%202024)) This section compares the company's financial performance for the third quarter of fiscal 2025 against the prior year's third quarter **Results of Operations (Three Months Ended):** | Item | January 25, 2025 | January 27, 2024 | Change | | :-------------------------------- | :--------------- | :--------------- | :----- | | Net sales | $267.1 million | $270.1 million | -1.1% | | Case volume | -3.4% | N/A | -3.4% | | Average selling price per case | +2.2% | N/A | +2.2% | | Gross profit | $99.0 million | $97.0 million | +2.0% | | Gross margin | 37.1% | 35.9% | +1.2 pp | | Selling, general and administrative expenses | $48.4 million | $48.9 million | -1.0% | | Other income, net | $1.4 million | $1.8 million | -22.2% | | Effective income tax rate | 23.7% | 21.0% | +2.7 pp | - Net sales decreased by **1.1%** due to a **3.4%** decrease in case volume, primarily impacting Power+ Brands, partially offset by a **2.2%** increase in average selling price per case[48](index=48&type=chunk) - Gross profit increased by **2.0%** and gross margin improved to **37.1%** from **35.9%**, driven by higher average selling prices and lower packaging costs[49](index=49&type=chunk) [Nine Months Ended January 25, 2025 compared to Nine Months Ended January 27, 2024](index=14&type=section&id=Nine%20Months%20Ended%20January%2025,%202025%20(first%20nine%20months%20of%20fiscal%202025)%20compared%20to%20Nine%20Months%20Ended%20January%2027,%202024%20(first%20nine%20months%20of%20fiscal%202024)) This section compares the company's financial performance for the first nine months of fiscal 2025 against the prior year's first nine months **Results of Operations (Nine Months Ended):** | Item | January 25, 2025 | January 27, 2024 | Change | | :-------------------------------- | :--------------- | :--------------- | :----- | | Net sales | $887.7 million | $894.4 million | -0.7% | | Case volume | -2.3% | N/A | -2.3% | | Average selling price per case | +1.7% | N/A | +1.7% | | Gross profit | $330.7 million | $319.4 million | +3.6% | | Gross margin | 37.3% | 35.7% | +1.6 pp | | Selling, general and administrative expenses | $152.8 million | $153.8 million | -0.7% | | Other income, net | $7.4 million | $5.8 million | +27.6% | | Effective income tax rate | 23.4% | 22.8% | +0.6 pp | - Net sales decreased by **0.7%** due to a **2.3%** decrease in case volume, affecting both Power+ Brands and carbonated soft drink brands, partially offset by a **1.7%** increase in average selling price per case[52](index=52&type=chunk) - Gross profit increased by **3.6%** and gross margin improved to **37.3%** from **35.7%**, primarily due to lower packaging costs and higher average selling prices[53](index=53&type=chunk) [LIQUIDITY AND FINANCIAL CONDITION](index=15&type=section&id=LIQUIDITY%20AND%20FINANCIAL%20CONDITION) This section assesses the company's ability to meet short-term obligations and its overall financial health [Liquidity and Capital Resources](index=15&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's sources of cash and its capacity to fund ongoing operations and investments - The Company's primary liquidity sources are existing cash, cash generated from operations, and **$150 million** in unsecured credit facilities, with no outstanding borrowings as of January 25, 2025[58](index=58&type=chunk) - Management believes current capital resources are sufficient to meet liquidity and capital requirements for the next twelve months[58](index=58&type=chunk) [Cash Flows](index=15&type=section&id=Cash%20Flows) This section analyzes the movement of cash from operating, investing, and financing activities - The Company's cash position decreased by **$177.8 million** for the first nine months of fiscal 2025, primarily due to a **$304.1 million** special cash dividend, contrasting with a **$118.9 million** increase in the prior year[59](index=59&type=chunk) - Net cash provided by operating activities increased to **$146.6 million** from **$137.5 million**, driven by higher net income[60](index=60&type=chunk) - Capital expenditures for the first nine months were **$20.8 million**, with fiscal 2025 capital expenditures anticipated to be in the range of **$25 to $30 million**[61](index=61&type=chunk) [Financial Position](index=15&type=section&id=Financial%20Position) This section evaluates the company's balance sheet health, including working capital and key financial ratios **Financial Position Metrics:** | Metric | January 25, 2025 | April 27, 2024 | Change | | :-------------------------------- | :--------------- | :------------- | :----- | | Working capital | $233.0 million | $398.9 million | -41.7% | | Current ratio | 2.9 to 1 | 3.9 to 1 | -1.0 | | Trade receivables decrease | $11.9 million | N/A | N/A | | Days sales outstanding | 31.0 days | 31.5 days | -0.5 days | | Inventories increase | $0.4 million | N/A | N/A | | Inventory turns | 8.6 times | 8.6 times | 0.0 | - Working capital and the current ratio decreased significantly, primarily due to the **$304.1 million** cash dividend payment[63](index=63&type=chunk) - Subsequent to January 25, 2025, renewed and new leases will increase operating lease right-of-use assets and liabilities by approximately **$18 million**[63](index=63&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=16&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) There have been no material changes in market risks from those reported in the Company's Annual Report on Form 10-K for the fiscal year ended April 27, 2024 - No material changes in market risks were reported compared to the previous annual report[65](index=65&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=16&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and Principal Financial Officer, evaluated the effectiveness of disclosure controls and procedures, concluding they were effective. No material changes in internal control over financial reporting occurred during the quarter - The Chief Executive Officer and Principal Financial Officer concluded that the Company's disclosure controls and procedures were effective as of January 25, 2025[66](index=66&type=chunk) - There were no material changes in the Company's internal control over financial reporting during the most recent fiscal quarter[67](index=67&type=chunk) [FORWARD-LOOKING STATEMENTS](index=16&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section outlines the nature of forward-looking statements made by National Beverage Corp., emphasizing that they involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from projections. The Company disclaims any obligation to update these statements - Statements in the report are 'forward-looking' and involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially[68](index=68&type=chunk) - Key risk factors include general economic conditions, competitive pricing, new product success, raw material costs, supply chain disruptions, labor issues, retailer support, changes in consumer demand, business strategy, technology failures, government regulations, and weather conditions[68](index=68&type=chunk) - The Company disclaims any obligation to update forward-looking statements to reflect future events or developments[68](index=68&type=chunk) [PART II - OTHER INFORMATION](index=17&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section includes additional disclosures not covered in the financial statements, such as risk factors and exhibits [ITEM 1A. RISK FACTORS](index=17&type=section&id=ITEM%201A.%20RISK%20FACTORS) There have been no material changes in risk factors from those reported in the Company's Annual Report on Form 10-K for the fiscal year ended April 27, 2024 - No material changes in risk factors were reported compared to the previous annual report[71](index=71&type=chunk) [ITEM 6. EXHIBITS](index=17&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Form 10-Q, including an amendment to a loan agreement, certifications from the CEO and Principal Financial Officer under Sarbanes-Oxley, and financial information formatted in iXBRL - Key exhibits include an Amendment to Loan Agreement (10.17), CEO and PFO certifications under Sections 302 and 906 of Sarbanes-Oxley (31.1, 31.2, 32.1, 32.2), and iXBRL formatted financial statements (101, 104)[72](index=72&type=chunk) [SIGNATURE](index=18&type=section&id=SIGNATURE) The report was duly signed on behalf of National Beverage Corp. by George R. Bracken, Executive Vice President – Finance and Principal Financial Officer, on March 6, 2025 - The report was signed by George R. Bracken, Executive Vice President – Finance (Principal Financial Officer) on March 6, 2025[75](index=75&type=chunk)