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The Simply Good Foods pany(SMPL) - 2025 Q2 - Quarterly Results
2025-04-09 11:01
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].
The Simply Good Foods Company Reports Fiscal Second Quarter 2025 Financial Results and Reaffirms Fiscal Year 2025 Outlook
Globenewswire· 2025-04-09 11:00
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 ...
The Simply Good Foods Company Reports Fiscal Second Quarter 2025 Financial Results and Reaffirms Fiscal Year 2025 Outlook
Newsfilter· 2025-04-09 11:00
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].
Analysts Estimate Simply Good Foods (SMPL) to Report a Decline in Earnings: What to Look Out for
ZACKS· 2025-04-02 15:00
Core Viewpoint - Simply Good Foods (SMPL) is expected to report a year-over-year decline in earnings despite higher revenues for the quarter ended February 2025, with the consensus outlook being crucial for assessing the company's earnings picture [1][3]. Earnings Expectations - The upcoming earnings report is anticipated to show earnings of $0.39 per share, reflecting a -2.5% change year-over-year, while revenues are projected to be $353.48 million, an increase of 13.2% from the previous year [3]. - The stock price may increase if the actual earnings exceed expectations, while a miss could lead to a decline in stock price [2]. Estimate Revisions - The consensus EPS estimate has been revised 0.31% lower in the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP of +0.52% suggests that analysts have recently become more optimistic about the company's earnings prospects, although the stock carries a Zacks Rank of 4, complicating predictions of an earnings beat [10][11]. Earnings Surprise History - In the last reported quarter, Simply Good Foods exceeded the expected earnings of $0.46 per share by delivering $0.49, resulting in a surprise of +6.52% [12]. - The company has beaten consensus EPS estimates in the last four quarters [13]. Conclusion - While the company does not appear to be a strong candidate for an earnings beat, investors should consider other factors when making decisions regarding the stock ahead of the earnings release [16].
Simply Good Foods to Report Second Quarter Fiscal Year 2025 Financial Results on Wednesday, April 9, 2025
Globenewswire· 2025-03-19 11:00
Company Overview - The Simply Good Foods Company is a developer, marketer, and seller of branded nutritional foods and snacking products, headquartered in Denver, Colorado [4] - The company's product portfolio includes protein bars, ready-to-drink shakes, sweet and salty snacks, and confectionery products marketed under the Atkins™, Quest™, and OWYN™ brands [4] - The company aims to lead the nutritious snacking movement and plans to expand its healthy lifestyle platform through innovation, organic growth, and investment opportunities in the snacking space [4] Financial Results Announcement - The company will report financial results for the 13-week fiscal second quarter ended March 1, 2025, on April 9, 2025, before market open [1] - A conference call will be held to discuss these results, featuring comments from the President and CEO, Geoff Tanner, and the CFO, Shaun Mara [1] Conference Call Details - The conference call is scheduled to begin at 6:30 a.m. Mountain time (8:30 a.m. Eastern time) on April 9, 2025 [2] - Investors can participate in the live call by dialing 1-877-407-0792 from the U.S. or 1-201-689-8263 from international locations [2] - The call will be broadcast live over the Internet on the company's website, with a telephone replay available approximately two hours after the call concludes [3]
Quest Nutrition Delivers Category Leading Protein with the Launch of Quest™ Protein Milkshakes
Prnewswire· 2025-03-10 12:00
Core Insights - Quest Nutrition has launched its new Protein Milkshakes, featuring an industry-leading 45 grams of protein per bottle, while keeping sugar and carbohydrates low [1][3] - This launch follows the introduction of Overload Bars in February, which also emphasizes protein content with added flavors [1][2] Product Details - Quest Protein Milkshakes contain 45 grams of high bioavailability complete protein sourced from ultrafiltered milk, with only 2 grams of sugar and 4 grams or less of net carbs [8] - The shakes are available in Chocolate, Vanilla, and Strawberry flavors, providing a rich, indulgent taste [8] - Quest Overload Bars feature 20 grams of protein, 1 gram of sugar, and 4 grams or less of net carbs, with mix-ins like sprinkles and chocolatey chips, available in flavors such as Sundae Funday and Chocolate Explosion [8] Company Positioning - Quest Nutrition aims to lead the protein-forward product market by continuously innovating and expanding its offerings, as demonstrated by the recent product launches [2][3] - The Simply Good Foods Company, which owns Quest, focuses on nutritious snacking and aims to elevate the standards of food products through innovation and investment opportunities [5]
Simply Good Foods: Becoming A Meaningful Player In Indulgent Good-For-You Snacking
Seeking Alpha· 2025-02-27 13:45
Core Insights - The individual has retired after over 43 years in investment research, now operating independently to provide actionable investment insights [1] - The focus is on rules and factor-based equity investing strategies, emphasizing the use of numbers to inspire human intelligence-driven investment stories rather than solely relying on statistical studies [1] - The individual combines factor analysis with classic fundamental analysis to uncover the true story of companies and their stocks, highlighting the importance of future potential over past data [1] Experience and Background - The individual has extensive experience covering a wide range of stocks, including large cap, small cap, micro cap, value, growth, and income [1] - Previous roles include managing a high-yield fixed-income fund and conducting research on quantitative asset allocation strategies, which are foundational to modern Robo Advising [1] - The individual has authored two books on stock selection and analysis and has a passion for investor education, conducting numerous seminars on the topic [1]
The Simply Good Foods Company Announces CFO Succession Plan
Globenewswire· 2025-01-28 21:05
Core Viewpoint - The Simply Good Foods Company has announced a succession plan for its Chief Financial Officer, with Shaun P. Mara set to retire on July 3, 2025, and Christopher J. Bealer expected to succeed him [1][2]. Company Overview - Simply Good Foods is a developer, marketer, and seller of branded nutritional products under the Quest, Atkins, and OWYN brands, aiming to lead the nutritious snacking movement [1][5]. - The company is headquartered in Denver, Colorado, and focuses on innovative products in the consumer packaged food and beverage sector [5]. CFO Transition Details - Shaun P. Mara has been with the company since 2017 and has served as CFO since 2022 [2]. - Christopher J. Bealer will join the company on April 1, 2025, as Senior Vice President of Finance and is expected to take over as CFO upon Mara's retirement [2][4]. - Bealer brings nearly 23 years of experience in consumer packaged goods and has held significant roles at Reckitt Benckiser Group PLC and Whirlpool Corporation [3]. Leadership Insights - CEO Geoff E. Tanner expressed gratitude for Mara's contributions and confidence in Bealer's capabilities to drive future success [4]. - The Board of Directors emphasized the importance of a thoughtful succession planning process and expressed excitement about Bealer's role in the company's growth [4].
Simply Good Foods: Sweet Earnings, Salty Risks
Seeking Alpha· 2025-01-09 16:03
Group 1 - The Simply Good Foods Company (NASDAQ: SMPL) focuses on providing healthier snack options through well-known brands like Atkins and Quest [1] - Atkins is recognized for its low-carb lifestyle approach, while Quest offers a variety of protein-rich snacks [1] Group 2 - Grassroots Trading emphasizes objective and unbiased research, particularly targeting small- to mid-cap companies [1] - The company aims to identify overlooked investment opportunities and occasionally highlights potential in larger companies [1]
The Simply Good Foods pany(SMPL) - 2025 Q1 - Quarterly Report
2025-01-08 21:42
Financial Performance - Net sales increased to $341.3 million for the thirteen weeks ended November 30, 2024, compared to $308.7 million for the same period in 2023, representing a 10.4% increase in North America net sales [107]. - Gross profit rose by $15.4 million, or 13.3%, to $130.5 million, with a gross profit margin of 38.2%, up from 37.3% in the prior year [109]. - Net income for the thirteen weeks ended November 30, 2024, was $38.1 million, an increase of $2.6 million compared to $35.6 million in the prior year [114]. - Adjusted EBITDA increased by $8.1 million, or 13.1%, driven primarily by higher gross profit, reaching $70.1 million [115]. - EBITDA for the same period was $59.8 million, up 3.7% from $57.7 million year-over-year [118]. - Adjusted EBITDA increased to $70.1 million, compared to $62.0 million in the prior year, reflecting a growth of 12.5% [118]. - Income from operations increased by $2.8 million to $54.6 million for the thirteen weeks ended November 30, 2024, compared to $51.8 million in the prior year [138]. Expenses and Costs - Operating expenses increased by $12.6 million, or 19.8%, primarily due to higher general and administrative costs related to the OWYN Acquisition [110]. - Cost of goods sold increased by $17.2 million, or 8.9%, primarily due to higher sales volumes from the OWYN Acquisition [108]. - General and administrative expenses rose by 41.2%, largely due to integration costs associated with the OWYN Acquisition [116]. - Interest expense increased by $1.8 million due to incremental borrowing related to the OWYN Acquisition [111]. Acquisition Impact - The OWYN Acquisition contributed significantly to the overall sales growth and improved gross margins due to lower ingredient and packaging costs [101]. - The OWYN Acquisition was completed for approximately $281.9 million, funded through $250.0 million in incremental borrowings and cash on hand [133]. Cash Flow and Liquidity - Cash provided by operating activities decreased by $15.5 million to $32.0 million, primarily due to changes in working capital [138]. - The company had $121.8 million in cash as of November 30, 2024, indicating sufficient liquidity for operations and growth strategy for at least the next twelve months [120]. - The outstanding balance of the Term Facility was $350.0 million, with no principal payments required over the next twelve months [132]. - Net cash used in financing activities was $42.3 million, significantly higher than $13.1 million in the prior year, primarily due to principal payments on the Term Facility [140]. - The company did not repurchase any shares during the thirteen weeks ended November 30, 2024, with approximately $71.5 million remaining available under the stock repurchase program [136]. Future Outlook - The company expects continued growth in fiscal year 2025 driven by volume, advertising, marketing, and innovation strategies [101]. Market Risk - No material changes in market risk exposure during the thirteen-week period ended November 30, 2024 [143].