Core Insights - CT Realty has successfully leased an 805,000 square foot industrial facility to Simply Good Foods for a seven-year term, enhancing its presence in a growing logistics hub in Mount Comfort, Indiana [1][4] - The facility features Class A specifications, including a 40-foot clear height and ample parking, supporting Simply Good Foods' supply chain and distribution needs [2][3] - This lease brings CT Realty's Mount Comfort project to 100% occupancy, following a previous successful lease to Walmart in Whitestown, Indiana [4] Company Overview - CT Realty is a national real estate and investment company with over 30 years of experience, having completed more than 300 transactions valued at over $8 billion [5] - The company focuses on Class A industrial logistics developments across the U.S. and has acquired thousands of acres of industrial land since 2010 [5] - Simply Good Foods, headquartered in Denver, Colorado, is a consumer packaged food and beverage company known for its protein bars and shakes, aiming to lead the nutritious snacking movement [5]

The Simply Good Foods Company (SMPL) reported solid second-quarter fiscal 2025 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year.The company’s strong performance reflected solid execution across distribution, innovation and brand-building efforts. Continued consumer demand, favorable input costs and disciplined cost management supported profitability. With growing interest in high-protein, low-sugar and low-carb products, the company believes its brand ...

Financial Performance - Net sales increased by 15.2% to $359.7 million for the thirteen weeks ended March 1, 2025, compared to $312.2 million for the same period in 2024, driven primarily by Quest volume growth and the OWYN Acquisition[109]. - Gross profit increased by 11.4% to $130.1 million, with a gross margin of 36.2%, a decrease of 120 basis points from the previous year, primarily due to lower margins from the OWYN business[111]. - Net income for the thirteen weeks ended March 1, 2025, was $36.7 million, an increase of $3.6 million compared to $33.1 million for the same period in 2024[117]. - Adjusted EBITDA rose by 17.6% to $68.0 million, driven by higher gross profit[118]. - Net sales increased by $80.0 million, or 12.9%, to $700.9 million for the twenty-six weeks ended March 1, 2025, driven primarily by Quest volume growth and the OWYN Acquisition[120]. - Gross profit increased by $28.6 million, or 12.3%, to $260.6 million, with a gross profit margin of 37.2%, a decrease of 20 basis points from the previous year[122]. - Net income for the twenty-six weeks ended March 1, 2025, was $74.9 million, an increase of $6.2 million compared to $68.7 million for the same period last year[127]. - Adjusted EBITDA increased by $18.3 million, or 15.2%, to $138.1 million, driven primarily by higher net gross profit[128]. Costs and Expenses - Cost of goods sold rose by 17.5% to $229.5 million, influenced by higher sales volumes and a non-cash inventory step-up charge related to the OWYN Acquisition[110]. - Operating expenses grew by 9.6% to $75.4 million, reflecting increased selling and marketing costs as well as general and administrative expenses[113]. - Cost of goods sold rose by $51.4 million, or 13.2%, to $440.3 million for the same period, attributed to higher sales volumes and a non-cash $1.4 million inventory step-up charge related to the OWYN Acquisition[121]. - Operating expenses increased by $19.2 million, or 14.5%, to $151.3 million, with general and administrative expenses rising by $17.2 million, or 30.2%[129]. - Selling and marketing expenses increased by $1.4 million, or 2.2%, primarily due to the OWYN Acquisition[123]. - Interest expense rose by $2.6 million, primarily due to incremental borrowing associated with the OWYN Acquisition[125]. Acquisition Details - The OWYN Acquisition was completed for approximately $280.0 million, enhancing the company's product portfolio in the plant-based protein segment[99]. - The Company completed the OWYN Acquisition on June 13, 2024, acquiring 100% of equity interests for a cash purchase price of approximately $281.9 million[146]. - The OWYN Acquisition was funded through $250.0 million in incremental borrowings and cash on hand, resulting in a total net consideration paid of $280.2 million as of March 1, 2025[147]. - Business transaction costs related to the OWYN Acquisition amounted to $0.8 million for the twenty-six weeks ended March 1, 2025[129]. Cash Flow and Financing - The Company had $103.7 million in cash as of March 1, 2025, sufficient to finance operations and growth strategy for at least the next twelve months[133]. - Net cash provided by operating activities decreased by $30.7 million to $63.3 million for the twenty-six weeks ended March 1, 2025, compared to $94.0 million for the same period in 2024[151]. - Net cash used in financing activities was $92.4 million for the twenty-six weeks ended March 1, 2025, primarily due to $100.0 million in principal payments on the Term Facility[153]. - Approximately $71.5 million remained available for repurchases under the $150.0 million stock repurchase program as of March 1, 2025[149]. Future Outlook - The company anticipates continued growth in fiscal year 2025, supported by strong advertising, marketing plans, and product innovation[101]. - The company is monitoring macroeconomic trends, including ingredient inflation and tariffs, which may impact future profitability[102]. Debt and Compliance - As of March 1, 2025, the outstanding balance of the Term Facility was $300.0 million, with no principal payments required over the next twelve months[145]. - The Revolving Credit Facility has a maximum total net leverage ratio of 6.00:1.00, and the Company was in compliance with all covenants as of March 1, 2025[144]. - The Company entered into a "2023 Repricing Amendment" on April 25, 2023, reducing the interest rate on Initial Term Loans and extending the maturity date from July 7, 2024, to March 17, 2027[139]. - The Company expensed $0.7 million of non-deferrable third-party costs related to the 2025 Repricing Amendment[142].

Financial Data and Key Metrics Changes - Total net sales for Simply Good Foods in Q2 2025 reached $359.7 million, reflecting a 15.2% increase year-over-year, driven by contributions from Owen and organic growth [44] - Adjusted EBITDA increased by 17.6% to $68 million compared to the previous year [48] - Net income grew by 10.9% to $36.7 million, with adjusted diluted EPS rising to $0.46 from $0.40 [50] Business Line Data and Key Metrics Changes - Quest net sales grew by 16.5% in Q2, benefiting from strong retail takeaway and timing of shipments [44] - Atkins net sales declined by 11.5% due to lower consumption and reduced trade inventory [45] - Owen experienced a retail takeaway increase of 52%, with ready-to-drink shakes growing by 53% [36][37] Market Data and Key Metrics Changes - The nutritional snacking category grew by 12% in Q2, marking the 16th consecutive quarter of growth [16] - Quest now represents 60% of the company's net sales, with a strong growth trajectory [18] - Owen's brand awareness and household penetration remain low, indicating significant growth potential [38] Company Strategy and Development Direction - The company aims to lead the nutritional snacking category by leveraging innovation, expanding product availability, and increasing brand awareness [41][42] - Focus on transitioning underperforming Atkins SKUs to faster-turning Quest and Owen products to enhance overall contribution margins [66][70] - Continued investment in Atkins is planned, with new product launches and marketing strategies to stabilize the brand [34][96] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a dynamic environment with consumer sentiment pressures but remains optimistic about the demand for high-protein, low-sugar products [41] - The company expects full-year net sales growth of 8.5% to 10.5%, with adjusted EBITDA growth of 4% to 6% [54] - Management is confident in the long-term growth potential of Quest and Owen, despite short-term challenges with Atkins [110][112] Other Important Information - The company has repaid $100 million of its term loan since the beginning of the fiscal year, with a net debt to trailing 12-month adjusted EBITDA ratio of 0.7 times [51] - The effective tax rate for Q2 was 25%, compared to 23.7% in the previous year [49] Q&A Session Summary Question: What is driving the reduction in sales guidance for Atkins? - Management noted that the reduction is due to lost display space and distribution at a key customer, which was more significant than anticipated [64][66] Question: What prompted the relaunch of Quest shakes? - The relaunch is based on consumer demand for indulgent, high-protein options, with a focus on flipping the macros of traditional shakes [74][76] Question: How will the company build awareness for Owen? - Initially, the focus will be on expanding distribution, with marketing efforts to follow once a solid distribution base is established [120] Question: What is the outlook for the bar category, specifically for Quest? - Management is optimistic about innovation in the bar category, with new products expected to drive growth [125][126]

Core Insights - Simply Good Foods (SMPL) reported quarterly earnings of $0.46 per share, exceeding the Zacks Consensus Estimate of $0.39 per share, and showing an increase from $0.40 per share a year ago, resulting in an earnings surprise of 17.95% [1] - The company achieved revenues of $359.66 million for the quarter ended February 2025, surpassing the Zacks Consensus Estimate by 1.86% and up from $312.2 million year-over-year [2] - The stock has experienced a decline of approximately 14.9% since the beginning of the year, compared to the S&P 500's decline of 15.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.52 on revenues of $381.79 million, and for the current fiscal year, it is $1.91 on revenues of $1.46 billion [7] - The estimate revisions trend for Simply Good Foods is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Food - Confectionery industry, to which Simply Good Foods belongs, is currently ranked in the bottom 3% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Another company in the same industry, Hershey (HSY), is expected to report quarterly earnings of $1.96 per share, reflecting a year-over-year decline of 36.2%, with revenues anticipated to be $2.83 billion, down 13.1% from the previous year [9][10]

The Simply Good Foods Company (SMPL) Q2 2025 Earnings Conference Call April 09, 2025 08:30 AM ET Company Participants Conference Call Operator - ModeratorJosh Levine - Vice President of Investor RelationsJeff Tanner - President and CEOSean Mara - CFO Conference Call Participants John Baumgartner - Analyst, Mizuho SecuritiesMegan Clapp - Analyst, Morgan StanleyBrian Holland - Analyst, DA DavidsonMatt Smith - Analyst, StiefelJacob (on behalf of Rob Moscow) - Analyst, TD CowenSteve Flowers - Analyst, Deutsche ...

This presentation includes certain financial measures not presented in accordance with generally accepted accounting principles ("GAAP") including, but not limited to, EBITDA, Adjusted EBITDA and certain ratios and other metrics derived there from and Adjusted Diluted EPS. These non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing financial results. Therefore, these measures should not be consi ...

Financial Performance - Net sales increased by $47.5 million, or 15.2%, to $359.7 million in the second quarter of fiscal year 2025, with OWYN contributing $33.8 million, or 10.8% to reported net sales growth [4]. - Adjusted EBITDA grew by 18% year-over-year to $68.0 million, compared to $57.8 million in the prior year [10]. - Organic net sales growth was 4.4%, primarily driven by the Quest brand, while international organic net sales declined by $2.1 million to $6.4 million [4]. - Net income for the second quarter was $36.7 million, an increase of $3.6 million, or 10.9%, compared to $33.1 million in the prior year [10]. - The company reported a net income of $74,869,000 for the twenty-six weeks ended March 1, 2025, compared to $68,684,000 for the same period in 2024, reflecting an increase of 9.5% [37]. - Net income for the twenty-six weeks ended March 1, 2025, was $74,869,000, compared to $68,684,000 for the same period in 2024, representing an increase of 3.1% [40]. - Adjusted EBITDA for the twenty-six weeks ended March 1, 2025, was $138,069,000, up from $119,805,000 in the prior year, reflecting a growth of 15.2% [40]. - EBITDA for the twenty-six weeks ended March 1, 2025, was reported at $119,510,000, compared to $110,904,000 for the same period in 2024, indicating an increase of 7.3% [40]. Sales and Revenue - The company expects net sales to increase by 8.5% to 10.5% and Adjusted EBITDA to grow by 4% to 6% for fiscal year 2025 [25]. - OWYN's fiscal year 2025 net sales are expected to be in the range of $140-150 million [25]. - Net sales for the thirteen weeks ended March 1, 2025, were $359,655,000, representing a 15.2% increase from $312,199,000 for the same period in 2024 [35]. - Gross profit for the twenty-six weeks ended March 1, 2025, was $260,623,000, up from $231,988,000 in the prior year, indicating a growth of 12.3% [35]. - The OWYN brand generated net sales of $66,060,000 for the twenty-six weeks ended March 1, 2025, compared to no sales in the prior year, indicating successful market entry [38]. Expenses and Costs - Gross profit increased by $13.3 million, or 11.4%, to $130.1 million, resulting in a gross margin of 36.2%, a decrease of 120 basis points year-over-year [5]. - Operating expenses rose by $6.6 million to $75.4 million, with G&A expenses increasing by $6.1 million, largely due to the OWYN acquisition [6]. - Operating expenses for the thirteen weeks ended March 1, 2025, totaled $75,416,000, an increase from $68,787,000 in the same period last year, reflecting a rise of 9.4% [35]. - Stock-based compensation expense for the twenty-six weeks ended March 1, 2025, was $8,792,000, slightly higher than $8,736,000 in the previous year [40]. - Interest expense for the twenty-six weeks ended March 1, 2025, totaled $14,199,000, compared to $11,630,000 for the same period in 2024, reflecting an increase of 21.8% [40]. - The company reported an interest income of $1,477,000 for the twenty-six weeks ended March 1, 2025, down from $2,014,000 in the prior year [40]. Assets and Liabilities - Total current assets increased to $444,467,000 as of March 1, 2025, from $440,280,000 as of August 31, 2024 [33]. - Long-term debt decreased to $298,537,000 as of March 1, 2025, down from $397,485,000 as of August 31, 2024, showing a reduction of 25% [33]. - The company's cash and cash equivalents at the end of the period were $103,682,000, down from $132,530,000 at the beginning of the period, a decrease of 21.7% [37]. - The company's net debt as of March 1, 2025, was $196,318,000, with total debt outstanding under the credit agreement at $300,000,000 [44]. - As of March 1, 2025, the company's trailing twelve-month Net Debt to Adjusted EBITDA ratio was 0.7x [21]. - The trailing twelve months Adjusted EBITDA as of March 1, 2025, was $287,394,000, resulting in a net debt to Adjusted EBITDA ratio of 0.7x [44]. Shareholder Information - The weighted average shares outstanding for diluted earnings per share increased to 101,821,229 for the thirteen weeks ended March 1, 2025, compared to 101,276,575 for the same period in 2024 [35]. - Adjusted diluted earnings per share increased to $0.95 for the twenty-six weeks ended March 1, 2025, compared to $0.82 for the same period in 2024, marking a rise of 15.9% [42]. - The effective tax rate applied to Adjusted Diluted Earnings Per Share adjustments was assumed to be 25% for the reporting periods [42]. Future Outlook - The company expects to achieve synergies from the OWYN acquisition, although specific financial targets were not disclosed [30].

Core Viewpoint - The Simply Good Foods Company reported strong financial results for the second quarter and reaffirmed its fiscal year 2025 outlook, driven by the acquisition of OWYN and growth in its core brands, particularly Quest and Atkins [2][3][21]. Financial Performance - Net sales increased by $47.5 million, or 15.2%, to $359.7 million, with OWYN contributing $33.8 million, or 10.8%, to this growth [3][16]. - Adjusted EBITDA grew by 18% year-over-year to $68.0 million, benefiting from favorable commodity prices and strong cost discipline [2][8]. - Net income for the quarter was $36.7 million, a 10.9% increase from $33.1 million in the previous year [8][9]. Brand Performance - Simply Good Foods experienced a 7% increase in total retail takeaway, with Quest and OWYN showing point-of-sale growth of approximately 13% and 52%, respectively [4][11]. - Organic net sales grew by 4.4%, primarily driven by the Quest brand, while international organic net sales declined by $2.1 million [3][10]. Operating Expenses - Operating expenses rose to $75.4 million, an increase of $6.6 million, with selling and marketing expenses slightly up due to the inclusion of OWYN [6][13]. - General and administrative expenses increased by $6.1 million, largely attributed to the OWYN acquisition [6][13]. Outlook - The company expects net sales to increase by 8.5% to 10.5% for fiscal year 2025, with adjusted EBITDA anticipated to grow by 4% to 6% [7][22]. - The outlook incorporates a headwind of approximately 2 percentage points due to the fifty-third week in fiscal year 2024 [7][27]. Balance Sheet and Cash Flow - As of March 1, 2025, the company had cash of $103.7 million and an outstanding term loan balance of $300 million, having repaid $100 million year-to-date [18][19]. - Cash flow from operations was approximately $63.3 million, down from $94 million in the previous year, primarily due to lower net working capital [18][39]. Management Changes - The company announced the retirement of Chief Financial Officer Shaun Mara, effective July 3, 2025, with Christopher J. Bealer set to succeed him [20].

DENVER, April 09, 2025 (GLOBE NEWSWIRE) -- The Simply Good Foods Company (Nasdaq: SMPL) ("Simply Good Foods," or the "Company"), a developer, marketer and seller of branded nutritional foods and snacking products, today reported financial results for the thirteen and twenty-six weeks ended March 1, 2025. The acquisition of Only What You Need, Inc. ("OWYN") was completed on June 13, 2024. Therefore, the Company's year-ago performance for the thirteen and twenty-six weeks ended February 24, 2024, does not inc ...