Core Insights - The consumer staples sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1][2] Company Summaries - **Tootsie Roll Industries Inc (NYSE:TR)**: Reported Q3 earnings of 49 cents per share, an increase from 45 cents year-over-year. The stock has declined approximately 14% in the past five days, with a 52-week low of $28.32. Current RSI is 28.8, and the stock closed at $36.05, up 1.9% [8] - **National Beverage Corp (NASDAQ:FIZZ)**: Experienced disappointing quarterly sales, with a stock decline of around 8% over the past month and a 52-week low of $33.72. The current RSI is 21.4, and shares closed at $33.75, down 3.1% [8] - **Calavo Growers Inc (NASDAQ:CVGW)**: Reported weaker-than-expected quarterly results, with a stock drop of about 10% in the last month and a 52-week low of $21.46. The RSI stands at 25.6, and shares closed at $23.21, down 0.5% [8]

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)

Financial Performance - Net sales for the three fiscal months ended August 2, 2025, were $330.5 million, a slight increase from $329.5 million for the same period in 2024, representing a growth of 0.3%[8] - Gross profit increased to $125.5 million, up from $122.4 million year-over-year, reflecting a gross margin improvement[8] - Net income for the period was $55.8 million, compared to $56.8 million in the prior year, indicating a decrease of 1.8%[9] - The company reported comprehensive income of $60.0 million for the three months ended August 2, 2025, compared to $50.7 million in the prior year, an increase of 18.5%[9] - Operating income for the period was $70.8 million, up from $69.5 million, indicating a growth of 1.9%[8] Assets and Liabilities - Total assets as of August 2, 2025, were $737.8 million, an increase from $672.9 million as of May 3, 2025, representing a growth of 9.6%[7] - Total liabilities increased slightly to $233.6 million from $228.9 million, reflecting a growth of 2.4%[7] - Retained earnings increased to $473.5 million from $417.8 million, showing a growth of 13.4%[11] - As of August 2, 2025, the company's working capital increased to $329.2 million from $266.4 million at May 3, 2025, with a current ratio of 3.2 to 1 compared to 2.9 to 1 previously[55] Cash Flow and Capital Expenditures - Cash and cash equivalents rose to $249.8 million from $193.8 million, marking an increase of 29%[13] - The company reported a decrease in interest income to $2.2 million for the first quarter of fiscal 2026, down from $4.3 million in the prior year, attributed to lower average invested balances[48] - Net cash provided by operating activities for the first quarter of fiscal 2026 was $59.1 million, up from $57.5 million in the first quarter of fiscal 2025, driven by a net decrease in working capital[53] - Capital expenditures for the first quarter of fiscal 2026 were $3.1 million, down from $3.7 million in the same period of fiscal 2025, with expectations that fiscal 2026 capital expenditures will not exceed those of fiscal 2025[54] Expenses and Costs - Selling, general and administrative expenses increased by $1.8 million to $54.7 million for the first quarter of fiscal 2026, representing 16.5% of net sales compared to 16.1% in the prior year[47] - Marketing costs were $13.6 million for the three fiscal months ended August 2, 2025, compared to $11.5 million for the same period in the previous year[23] - The cost of sales per case increased by 2.9% in the first quarter of fiscal 2026, impacting gross profit despite higher selling prices[46] Credit Facilities and Financial Position - The company has a total of $100 million in unsecured revolving credit facilities, with $97.3 million available for borrowings as of August 2, 2025[32] - The company maintains unsecured revolving credit facilities and a loan facility totaling $150 million, with no borrowings outstanding as of August 2, 2025[51] Risk and Compliance - The company is currently evaluating the impact of adopting new accounting standards, including ASU 2024-03, which may affect its consolidated financial statements[26] - There have been no material changes in market risks from those reported in the Annual Report for the fiscal year ended May 3, 2025[56] - The company has not experienced any changes in risk factors since the last annual report[62] - No changes in internal control over financial reporting have materially affected the company during the most recent fiscal quarter[58]

Core Insights - National Beverage Corp. reported record net sales of $331 million for the first quarter ended August 2, 2025 [1] - Gross profit increased by 80 basis points to $125 million [1] - Operating income rose to $71 million [1] - Earnings per share were reported at $0.60 [1] - Operating cash flow of $59 million contributed to a total cash increase to $250 million [1] Financial Performance - Net sales reached a record high of $331 million, indicating strong revenue growth [1] - Gross profit margin improved by 80 basis points, reflecting enhanced profitability [1] - Operating income showed significant growth, reaching $71 million, which suggests effective cost management and operational efficiency [1] - Earnings per share of $0.60 demonstrate solid earnings performance for shareholders [1] - The increase in operating cash flow to $59 million highlights robust cash generation capabilities [1]

[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)