Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. While many investors like to look for momen ...

IDEXX Laboratories (NASDAQ:IDXX) is an American-based company that sells products in over 175 countries across three divisions. The modern pet industry is a testament to the amounts that pet owners and animal lovers are willing to spend on their furry companions. In 2023, U.S. consumers alone spent $147 billion in the pet industry. That's a whopping 60% more than just five years prior in 2018. Though investors might initially overlook the pet and animal industry, certain pet stocks to buy just make sense. C ...

Group 1 - Freshpet, Inc. will participate in the Deutsche Bank Global Consumer Conference in Paris on June 4, 2024 [1] - The presentation will be available via live webcast and replay on the company's website [1] Group 2 - Freshpet's mission is to enhance the lives of dogs and cats through fresh, real food made from locally sourced ingredients [2] - The company prepares its foods in small batches at lower temperatures to maintain the natural goodness of the ingredients [2] - Freshpet foods are kept refrigerated from production until they reach local markets [2] Group 3 - Freshpet products are available in various retail formats across the United States, Canada, and Europe [3] - The company emphasizes integrity, transparency, and social responsibility in its operations [3]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for moment ...

Key PointsFreshpet continues to build momentum and is on track for sustained profitability. Analysts are raising their targets and leading the market higher. The price action has entered a complete reversal and may gain 50% in the next 12 to 18 months. 5 stocks we like better than FreshpetFreshpet’s NASDAQ: FRPT Q1 results led the market to a 10% gain, and more fresh highs are coming. The primary takeaway is that volume gains underpin growth and provide significant leverage for this business. Headwinds rema ...

[Part I. Financial Information](index=5&type=section&id=Part%20I.%20Financial%20Information) [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited Q1 2024 financial statements reflect a significant turnaround with net income of $18.6 million, driven by a 33.6% increase in net sales to $223.8 million and positive operating cash flow [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets increased to $1.48 billion, total liabilities slightly decreased to $502.7 million, and stockholders' equity grew to $977.8 million Balance Sheet Items | Balance Sheet Items | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$1,480,590** | **$1,464,421** | | Total Current Assets | $406,958 | $427,319 | | Property, plant and equipment, net | $1,005,759 | $979,164 | | **Total Liabilities** | **$502,746** | **$510,967** | | Total Current Liabilities | $81,946 | $89,222 | | Convertible senior notes | $393,588 | $393,074 | | **Total Stockholders' Equity** | **$977,844** | **$953,454** | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) Q1 2024 operations show a significant turnaround to net income of $18.6 million from a prior-year loss, driven by a 33.6% increase in net sales to $223.8 million and improved gross profit Metric | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Net Sales | $223,849 | $167,522 | +33.6% | | Gross Profit | $88,158 | $50,760 | +73.7% | | Income (Loss) from Operations | $8,463 | $(21,511) | Turnaround | | Gain on Equity Investment | $9,918 | $0 | N/A | | Net Income (Loss) | $18,602 | $(24,786) | Turnaround | | Diluted EPS | $0.37 | $(0.52) | Turnaround | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly improved to $5.4 million in Q1 2024, while investing activities used $46.5 million, ending the period with $257.9 million in cash Cash Flow Activity | Cash Flow Activity | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $5,406 | $(13,740) | | Net cash used in investing activities | $(46,473) | $(107,365) | | Net cash provided by financing activities | $2,090 | $325,513 | | **Net Change in Cash** | **$(38,977)** | **$204,408** | | Cash at end of period | $257,894 | $337,143 | - The significant cash provided by financing activities in Q1 2023 was due to the issuance of **$393.5 million** in convertible senior notes[21](index=21&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes include a $9.9 million gain on an equity investment, the issuance of $402.5 million in convertible senior notes in March 2023, and details on a legal dispute with a former distributor - The company recognized a **$9.9 million gain** on an equity investment after the investee completed an equity funding round, allowing for a fair value adjustment under ASC 321[32](index=32&type=chunk) - In March 2023, the company issued **$402.5 million** of 3.0% convertible senior notes due 2028, with an initial conversion price of approximately **$69.68 per share**[59](index=59&type=chunk)[62](index=62&type=chunk) - The company is in a legal dispute with former distributor Phillips Feed Service, Inc. over an alleged breach of contract, with a non-jury trial scheduled for September 16, 2024, though management does not expect a material adverse effect[89](index=89&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) Net Sales by Channel | Net Sales by Channel | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | Grocery, Mass, International and Digital | $184,429 | $140,179 | | Pet Specialty and Club | $39,420 | $27,343 | | **Total Net Sales** | **$223,849** | **$167,522** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q1 2024 performance to a 33.6% net sales increase, improved gross margin to 39.4%, and positive income from operations, with plans for significant capital expenditures [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Q1 2024 results show net sales growth of 33.6%, gross profit margin expansion to 39.4%, and a turnaround to $18.6 million net income from a prior-year loss Metric | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Sales | $223.8M | $167.5M | | % Change | +33.6% | - | | Volume Growth | +30.6% | - | | Gross Profit | $88.2M | $50.8M | | Gross Margin | 39.4% | 30.3% | | SG&A as % of Sales | 35.6% | 43.1% | | Income (Loss) from Operations | $8.5M | $(21.5)M | | Net Income (Loss) | $18.6M | $(24.8)M | - The increase in gross profit margin was primarily due to improved leverage on plant expenses, reduced quality costs, and lower input costs as a percentage of sales[111](index=111&type=chunk) - The decrease in SG&A as a percentage of net sales was mainly a result of reduced logistics costs and media spend as a percentage of net sales, in addition to lower share-based compensation[113](index=113&type=chunk) [Non-GAAP Financial Measures](index=27&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP measures highlight strong Q1 2024 performance, with Adjusted EBITDA surging to $30.6 million and Adjusted Gross Profit reaching $101.5 million Reconciliation of Net Income (Loss) to Adjusted EBITDA | Line Item | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | Net income (loss) | $18,602 | $(24,786) | | Depreciation and amortization | $15,745 | $14,492 | | Interest income, net of interest expense | $(275) | $2,225 | | Income tax expense | $54 | $70 | | **EBITDA** | **$34,126** | **$(7,999)** | | Gain on equity investment | $(9,918) | - | | Non-cash share-based compensation | $6,221 | $8,415 | | Other adjustments | $150 | $1,571 | | **Adjusted EBITDA** | **$30,579** | **$2,967** | Reconciliation of Gross Profit to Adjusted Gross Profit | Line Item | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | Gross profit | $88,158 | $50,760 | | Depreciation expense | $10,675 | $10,721 | | Non-cash share-based compensation | $2,622 | $2,956 | | **Adjusted Gross Profit** | **$101,476** | **$64,437** | | Adjusted Gross Margin | 45.3% | 38.5% | [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2024, the company maintained $257.9 million in cash and $325.0 million in working capital, with significant capital expenditures planned for facility expansion - The company spent approximately **$46.5 million** on capital expenditures in Q1 2024 and expects to spend an additional **$163.5 million** in the remainder of fiscal 2024, mainly for the expansion of Freshpet Kitchens Ennis[135](index=135&type=chunk) - Working capital decreased by **$13.1 million** from year-end 2023 to **$325.0 million**, primarily due to a **$39.0 million** decrease in cash and a **$10.5 million** increase in accounts payable, partially offset by a **$17.6 million** decrease in accrued expenses[140](index=140&type=chunk) - In March 2023, the company issued **$402.5 million** in convertible notes and terminated its previous Credit Agreement to meet its capital needs[134](index=134&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces market risks including interest rate fluctuations, commodity price volatility, and foreign exchange risk, with European revenue representing only 1% of the total - The company is subject to interest rate risk, which can affect borrowing costs and investment values[155](index=155&type=chunk) - The company faces commodity price volatility for its inputs, which it attempts to manage through pricing actions and cost controls[156](index=156&type=chunk) - Foreign exchange risk exists from operations in Europe (British pound and Euro), but the impact is limited as European revenue constituted only **1%** of the total in Q1 2024[157](index=157&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of the end of the reporting period, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[160](index=160&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, these controls[161](index=161&type=chunk) [Part II. Other Information](index=37&type=section&id=Part%20II.%20Other%20Information) [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, none of which are expected to have a material adverse effect on its financial condition or operations - The company is involved in ordinary course legal actions but does not expect them to have a material adverse effect on its business[165](index=165&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the Annual Report on Form 10-K have occurred - No material changes to the risk factors reported in the Annual Report have occurred[166](index=166&type=chunk) [Item 5. Other Information](index=38&type=section&id=Item%205.%20Other%20Information) No directors or officers reported the adoption or termination of Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - No directors or officers reported the adoption or termination of any Rule 10b5-1 trading plans during the first quarter of 2024[169](index=169&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL documents - The report includes required certifications from the CEO and CFO under Sections 302 and 906 of the Sarbanes-Oxley Act, as well as XBRL data files[171](index=171&type=chunk)

Freshpet (FRPT) came out with quarterly earnings of $0.21 per share, beating the Zacks Consensus Estimate of a loss of $0.22 per share. This compares to loss of $0.52 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 195.45%. A quarter ago, it was expected that this seller of refrigerated fresh pet food would post earnings of $0.09 per share when it actually produced earnings of $0.31, delivering a surprise of 244.44%.Over the l ...

First Quarter 2024 Financial Results Overview [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Freshpet, Inc. reported strong first quarter 2024 results, with significant increases in net sales, gross margin, net income, and Adjusted EBITDA compared to the prior year period, driven by volume growth and operational improvements Q1 2024 Financial Highlights | Metric | Q1 2024 ($ million) | Q1 2023 ($ million) | Change (YoY) | | :----- | :------ | :------ | :----------- | | Net Sales | $223.8 | $167.5 | +33.6% | | Gross Margin | 39.4% | 30.3% | +9.1 pp | | Adjusted Gross Margin | 45.3% | 38.5% | +6.8 pp | | Net Income (Loss) | $18.6 | $(24.8) | N/A (swing to profit) | | Adjusted EBITDA | $30.6 | $3.0 | +$27.6 | [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Billy Cyr highlighted the strong Q1 results as evidence of achieving long-term financial goals, attributing robust net sales growth to the business model and consumer proposition, and margin expansion to operational improvements and increased scale - CEO Billy Cyr emphasized that strong Q1 results demonstrate the company's ability to meet long-term financial goals, driven by robust net sales growth and margin expansion from operational improvements and scale[2](index=2&type=chunk) Detailed Financial Performance (Q1 2024) [Net Sales](index=1&type=section&id=Net%20Sales) Freshpet's net sales for Q1 2024 significantly increased by 33.6% year-over-year, primarily driven by strong volume gains Net Sales Performance | Metric | Q1 2024 ($ million) | Q1 2023 ($ million) | YoY Change | | :----- | :------ | :------ | :--------- | | Net Sales | $223.8 | $167.5 | +33.6% | | Volume Gains | N/A | N/A | +30.6% | [Gross Profit (GAAP & Adjusted)](index=1&type=section&id=Gross%20Profit%20(GAAP%20%26%20Adjusted)) Gross profit and Adjusted Gross Profit both saw substantial increases in Q1 2024, with margins improving due to better plant expense leverage, reduced quality costs, and lower input costs as a percentage of sales Gross Profit Performance | Metric | Q1 2024 ($ million) | Q1 2023 ($ million) | YoY Change | | :----- | :------ | :------ | :--------- | | Gross Profit | $88.2 | $50.8 | +73.6% | | Gross Margin | 39.4% | 30.3% | +9.1 pp | | Adjusted Gross Profit | $101.5 | $64.4 | +57.6% | | Adjusted Gross Margin | 45.3% | 38.5% | +6.8 pp | - The increase in gross profit as a percentage of net sales was primarily due to improved leverage on plant expenses, reduced quality costs, and lower input cost as a percentage of sales[4](index=4&type=chunk) [Selling, General and Administrative Expenses (GAAP & Adjusted)](index=1&type=section&id=Selling,%20General%20and%20Administrative%20Expenses%20(GAAP%20%26%20Adjusted)) SG&A expenses increased in absolute terms but decreased significantly as a percentage of net sales in Q1 2024, driven by reduced logistics costs, lower media spend as a percentage of net sales, and decreased share-based compensation SG&A Expenses Performance | Metric | Q1 2024 ($ million) | Q1 2023 ($ million) | YoY Change | | :----- | :------ | :------ | :--------- | | SG&A Expenses | $79.7 | $72.3 | +10.2% | | SG&A as % of Net Sales | 35.6% | 43.1% | -7.5 pp | | Adjusted SG&A | $70.9 | $61.5 | +15.3% | | Adjusted SG&A as % of Net Sales | 31.7% | 36.7% | -5.0 pp | - The decrease in SG&A as a percentage of net sales was mainly a result of reduced logistics costs and media as a percentage of net sales, in addition to lower share-based compensation[5](index=5&type=chunk) [Net Income (Loss)](index=1&type=section&id=Net%20Income%20(Loss)) Freshpet achieved a net income of $18.6 million in Q1 2024, a significant improvement from a net loss in the prior year, attributed to higher sales, improved gross margin, reduced logistics costs, and a gain on equity investment Net Income (Loss) | Metric | Q1 2024 ($ million) | Q1 2023 ($ million) | | :----- | :------ | :------ | | Net Income (Loss) | $18.6 | $(24.8) | - The improvement in net income was due to contribution from higher sales, improved gross margin, reduced logistics costs as a percentage of net sales, and a gain on equity investment of **$9.9 million**, partially offset by increased SG&A including increased media spend of **$6.1 million**[6](index=6&type=chunk) [Adjusted EBITDA](index=1&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA saw a substantial increase in Q1 2024, primarily driven by increased Adjusted Gross Profit, partially offset by higher Adjusted SG&A expenses Adjusted EBITDA Performance | Metric | Q1 2024 ($ million) | Q1 2023 ($ million) | YoY Change | | :----- | :------ | :------ | :--------- | | Adjusted EBITDA | $30.6 | $3.0 | +$27.6 | - The increase in Adjusted EBITDA was a result of increased Adjusted Gross Profit partially offset by higher Adjusted SG&A expenses[8](index=8&type=chunk) Balance Sheet and Cash Flows [Condensed Consolidated Balance Sheets Summary](index=2&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20Summary) As of March 31, 2024, Freshpet maintained a strong cash position and managed its debt, with plans to utilize its balance sheet to support long-term capacity needs Key Balance Sheet Figures (as of March 31, 2024) | Metric | Amount ($ thousands) | | :----- | :-------------------- | | Cash and cash equivalents | $257,894 | | Debt outstanding (net) | $393,600 | [Condensed Consolidated Statement of Cash Flows Summary](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows%20Summary) Cash from operations significantly improved in Q1 2024, reflecting better operational efficiency compared to the prior year period Cash from Operations | Metric | Q1 2024 ($ million) | Q1 2023 ($ million) | YoY Change | | :----- | :------ | :------ | :--------- | | Cash from operations | $5.4 | $(13.7) | +$19.1 | Full Year 2024 Outlook [Updated Guidance](index=2&type=section&id=Updated%20Guidance) Freshpet updated its full-year 2024 guidance, raising its Adjusted EBITDA target while maintaining net sales and capital expenditure projections Full Year 2024 Guidance Update | Metric | Previous Guidance ($ million) | Updated Guidance ($ million) | Change | | :----- | :---------------- | :--------------- | :----- | | Net sales | At least $950 | At least $950 | Unchanged | | Adjusted EBITDA | $100 to $110 | At least $120 | Raised | | Capital expenditures | ~$210 | ~$210 | Unchanged | Company Information & Disclosures [About Freshpet](index=3&type=section&id=About%20Freshpet) Freshpet is dedicated to improving the lives of pets through fresh, real food made from locally farmed meats, vegetables, and fruits, prepared in small batches and kept refrigerated - Freshpet's mission is to improve the lives of dogs and cats through fresh, real food, prepared with natural ingredients in small batches and kept refrigerated[15](index=15&type=chunk) - Freshpet foods are available in select mass, grocery (including online), natural food, club, and pet specialty retailers across the United States, Canada, and Europe[16](index=16&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements regarding future profitability, performance, shareholder value, and 2024 guidance, which are subject to risks and uncertainties as detailed in SEC filings - Statements in this release regarding future profitability, consistent performance, shareholder value, and 2024 guidance (net sales, Adjusted EBITDA, capital expenditures) are forward-looking and subject to risks and uncertainties outlined in the Company's SEC filings[17](index=17&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) Freshpet utilizes non-GAAP financial measures such as Adjusted Gross Profit, Adjusted SG&A, EBITDA, and Adjusted EBITDA to provide investors with a clearer view of ongoing operating results, supplementing GAAP measures for analysis and comparative evaluation - Non-GAAP financial measures (Adjusted Gross Profit, Adjusted SG&A, EBITDA, Adjusted EBITDA) are used to supplement GAAP measures, offering insights into ongoing operating results and aiding investor analysis and comparative evaluation[19](index=19&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) - Adjusted Gross Profit is defined as gross profit before depreciation expense, non-cash share-based compensation and loss on disposal of manufacturing equipment[20](index=20&type=chunk) - Adjusted EBITDA represents EBITDA plus specific adjustments including loss/gain on equity investment, loss on disposal of property, plant and equipment, non-cash share-based compensation, ERP implementation costs, capped call fees, and activism engagement advisory fees[22](index=22&type=chunk) Supplemental Financial Data [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Balance Sheets (Table)](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Table)) The condensed consolidated balance sheets provide a detailed snapshot of Freshpet's financial position as of March 31, 2024, and December 31, 2023, including assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets | | March 31, 2024 ($ thousands) | December 31, 2023 ($ thousands) | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $257,894 | $296,871 | | Accounts receivable, net of allowance for doubtful accounts | 68,507 | 56,754 | | Inventories, net | 71,865 | 63,238 | | Prepaid expenses | 5,757 | 7,615 | | Other current assets | 2,935 | 2,841 | | Total Current Assets | 406,958 | 427,319 | | Property, plant and equipment, net | 1,005,759 | 979,164 | | Deposits on equipment | 1,295 | 1,895 | | Operating lease right of use assets | 3,237 | 3,616 | | Long term investment in equity securities | 33,446 | 23,528 | | Other assets | 29,895 | 28,899 | | Total Assets | $1,480,590 | $1,464,421 | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | CURRENT LIABILITIES: | | | | Accounts payable | $46,591 | $36,096 | | Accrued expenses | 32,193 | 49,816 | | Current operating lease liabilities | 1,174 | 1,312 | | Current finance lease liabilities | 1,988 | 1,998 | | Total Current Liabilities | $81,946 | $89,222 | | Convertible senior notes | 393,588 | 393,074 | | Long term operating lease liabilities | 2,333 | 2,591 | | Long term finance lease liabilities | 24,879 | 26,080 | | Total Liabilities | $502,746 | $510,967 | | Commitments and contingencies | — | — | | STOCKHOLDERS' EQUITY: | | | | Common stock — voting, $0.001 par value, 200,000 shares authorized, 48,449 issued | | | | and 48,435 outstanding on March 31, 2024, and 48,277 issued and 48,263 outstanding | | | | on December 31, 2023 | 48 | 48 | | Additional paid-in capital | 1,288,890 | 1,282,984 | | Accumulated deficit | (310,129) | (328,731) | | Accumulated other comprehensive loss | (709) | (591) | | Treasury stock, at cost — 14 shares on March 31, 2024 and on December 31, 2023 | (256) | (256) | | Total Stockholders' Equity | 977,844 | 953,454 | | Total Liabilities and Stockholders' Equity | $1,480,590 | $1,464,421 | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Table)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)%20(Table)) The condensed consolidated statements of operations detail Freshpet's revenues, expenses, and net income (loss) for the three months ended March 31, 2024, and 2023, showing a significant swing to profitability Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) | | For the Three Months Ended March 31, 2024 ($ thousands) | For the Three Months Ended March 31, 2023 ($ thousands) | | :--- | :--- | :--- | | NET SALES | $223,849 | $167,522 | | COST OF GOODS SOLD | 135,691 | 116,762 | | GROSS PROFIT | 88,158 | 50,760 | | SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES | 79,695 | 72,271 | | INCOME (LOSS) FROM OPERATIONS | 8,463 | (21,511) | | OTHER INCOME (EXPENSES): | | | | Interest and Other Income, net | 3,335 | 946 | | Interest Expense | (3,060) | (3,171) | | Gain on Equity Investment | 9,918 | - | | | 10,193 | (2,225) | | INCOME (LOSS) BEFORE INCOME TAXES | 18,656 | (23,736) | | INCOME TAX EXPENSE | 54 | 70 | | LOSS ON EQUITY METHOD INVESTMENT | - | 980 | | INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $18,602 | $(24,786) | | OTHER COMPREHENSIVE (LOSS) INCOME: | | | | Change in Foreign Currency Translation | $(118) | $6 | | TOTAL OTHER COMPREHENSIVE (LOSS) INCOME | (118) | 6 | | TOTAL COMPREHENSIVE INCOME (LOSS) | $18,484 | $(24,780) | | NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO COMMON | | | | STOCKHOLDERS | | | | -BASIC | $0.38 | $(0.52) | | -DILUTED | $0.37 | $(0.52) | | WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING | | | | -BASIC | 48,320 | 48,047 | | -DILUTED | 50,049 | 48,047 | [Condensed Consolidated Statement of Cash Flows (Table)](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows%20(Table)) The condensed consolidated statement of cash flows outlines the cash generated and used by Freshpet across operating, investing, and financing activities for the three months ended March 31, 2024, and 2023, showing improved operating cash flow Condensed Consolidated Statement of Cash Flows | | For the Three Months Ended March 31, 2024 ($ thousands) | For the Three Months Ended March 31, 2023 ($ thousands) | | :--- | :--- | :--- | | **CASH FLOWS FROM OPERATING ACTIVITIES:** | | | | Net income (loss) | $18,602 | $(24,786) | | Adjustments to reconcile net income (loss) to net cash flows provided by (used in) | | | | operating activities: | | | | Provision for loss (gains) on accounts receivable | 4 | (2) | | Loss on disposal of property, plant and equipment | 150 | 268 | | Share-based compensation | 6,221 | 8,415 | | Inventory obsolescence | 699 | (29) | | Depreciation and amortization | 15,902 | 14,492 | | Write-off and amortization of deferred financing costs and loan discount | 514 | 2,478 | | Change in operating lease right of use asset | 379 | 357 | | Loss on equity method investment | — | 980 | | Gain on equity investment | (9,918) | — | | Changes in operating assets and liabilities: | | | | Accounts receivable | (11,757) | 9,182 | | Inventories | (7,817) | (8,000) | | Prepaid expenses and other current assets | 548 | 2,525 | | Other assets | (691) | (3,664) | | Accounts payable | 9,909 | (10,724) | | Accrued expenses | (16,943) | (4,869) | | Operating lease liability | (396) | (363) | | Net cash flows provided by (used in) operating activities | 5,406 | (13,740) | | CASH FLOWS FROM INVESTING ACTIVITIES: | | | | Purchase of short-term investments | — | (49,326) | | Acquisitions of property, plant and equipment, software and deposits on equipment | (46,473) | (58,039) | | Net cash flows used in investing activities | (46,473) | (107,365) | | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | Proceeds from exercise of options to purchase common stock | 2,815 | 834 | | Tax withholdings related to net shares settlements of restricted stock units | (223) | (602) | | Purchase of capped call options | — | (66,211) | | Proceeds from issuance of convertible senior notes | — | 393,518 | | Debt issuance costs | — | (2,026) | | Principal payments under finance lease obligations | (502) | — | | Net cash flows provided by financing activities | 2,090 | 325,513 | | NET CHANGE IN CASH AND CASH EQUIVALENTS | (38,977) | 204,408 | | CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 296,871 | 132,735 | | CASH AND CASH EQUIVALENTS, END OF PERIOD | $257,894 | $337,143 | [Non-GAAP Reconciliations](index=8&type=section&id=Non-GAAP%20Reconciliations) [Gross Profit to Adjusted Gross Profit Reconciliation (Table)](index=8&type=section&id=Gross%20Profit%20to%20Adjusted%20Gross%20Profit%20Reconciliation%20(Table)) This table reconciles GAAP Gross Profit to Adjusted Gross Profit for the three months ended March 31, 2024, and 2023, detailing adjustments for depreciation, non-cash share-based compensation, and loss on disposal of manufacturing equipment Reconciliation Between Gross Profit and Adjusted Gross Profit | | Three Months Ended March 31, 2024 ($ thousands) | Three Months Ended March 31, 2023 ($ thousands) | | :--- | :--- | :--- | | Gross profit | $88,158 | $50,760 | | Depreciation expense | 10,675 | 10,721 | | Non-cash share-based compensation (a) | 2,622 | 2,956 | | Loss on disposal of manufacturing equipment | 21 | — | | Adjusted Gross Profit | $101,476 | $64,437 | | Adjusted Gross Profit as a % of Net Sales | 45.3% | 38.5% | [SG&A Expenses to Adjusted SG&A Expenses Reconciliation (Table)](index=9&type=section&id=SG%26A%20Expenses%20to%20Adjusted%20SG%26A%20Expenses%20Reconciliation%20(Table)) This table reconciles GAAP SG&A expenses to Adjusted SG&A expenses for the three months ended March 31, 2024, and 2023, outlining adjustments for depreciation, non-cash share-based compensation, disposal losses, ERP costs, capped call fees, and activism engagement fees Reconciliation Between SG&A Expenses and Adjusted SG&A Expenses | | Three Months Ended March 31, 2024 ($ thousands) | Three Months Ended March 31, 2023 ($ thousands) | | :--- | :--- | :--- | | SG&A expenses | $79,695 | $72,271 | | Depreciation and amortization expense | 5,070 | 3,771 | | Non-cash share-based compensation (a) | 3,600 | 5,459 | | Loss on disposal of equipment | 129 | 268 | | Enterprise Resource Planning (b) | — | 801 | | Capped Call Transactions fees (c) | — | 113 | | Activism engagement (d) | — | 389 | | Adjusted SG&A Expenses | $70,896 | $61,470 | | Adjusted SG&A Expenses as a % of Net Sales | 31.7% | 36.7% | [Net Income (Loss) to Adjusted EBITDA Reconciliation (Table)](index=10&type=section&id=Net%20Income%20(Loss)%20to%20Adjusted%20EBITDA%20Reconciliation%20(Table)) This table reconciles GAAP Net Income (Loss) to Adjusted EBITDA for the three months ended March 31, 2024, and 2023, detailing adjustments for depreciation, interest, income tax, equity investment gains/losses, disposal losses, share-based compensation, ERP costs, capped call fees, and activism engagement fees Reconciliation Between Net Income (Loss) and Adjusted EBITDA | | Three Months Ended March 31, 2024 ($ thousands) | Three Months Ended March 31, 2023 ($ thousands) | | :--- | :--- | :--- | | Net income (loss) | $18,602 | $(24,786) | | Depreciation and amortization | 15,745 | 14,492 | | Interest income, net of interest expense | (275) | 2,225 | | Income tax expense | 54 | 70 | | EBITDA | $34,126 | $(7,999) | | Loss on equity method investment | — | 980 | | Gain on equity investment | (9,918) | — | | Loss on disposal of property, plant and equipment | 150 | 268 | | Non-cash share-based compensation (a) | 6,221 | 8,415 | | Enterprise Resource Planning (b) | — | 801 | | Capped Call Transactions fees (c) | — | 113 | | Activism engagement (d) | — | 389 | | Adjusted EBITDA | $30,579 | $2,967 | | Adjusted EBITDA as a % of Net Sales | 13.7% | 1.8% | [Conference Call & Webcast Information](index=3&type=section&id=Conference%20Call%20%26%20Webcast%20Information) Freshpet hosted a conference call and webcast on May 6, 2024, to discuss its Q1 2024 financial results, with replay options available for listeners - A conference call and webcast were held on May 6, 2024, at 8:00 a.m. Eastern Time, with replay available through May 20, 2024[13](index=13&type=chunk)[14](index=14&type=chunk)

SECAUCUS, N.J., April 16, 2024 (GLOBE NEWSWIRE) -- Freshpet, Inc. (NASDAQ:FRPT) ("Freshpet" or the "Company") today announced it will report results for the first quarter ended March 31, 2024 on Monday, May 6, 2024 before market open. The Company will host a conference call with members of the executive management team to discuss these results with additional comments and details. The conference call is scheduled to begin at 8:00 a.m. ET on Monday, May 6, 2024. To participate on the live call, listeners in ...

The Consumer Staples group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Freshpet (FRPT) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.Freshpet is a member of the Consumer Staples sector. This group includes 191 individual stocks and currently holds a Zacks Sector Rank of #14. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring th ...