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The Simply Good Foods pany(SMPL) - 2025 Q2 - Quarterly Results
SMPLThe Simply Good Foods pany(SMPL)2025-04-09 11:01

Financial Performance - Net sales increased by 47.5million,or15.247.5 million, or 15.2%, to 359.7 million in the second quarter of fiscal year 2025, with OWYN contributing 33.8million,or10.833.8 million, or 10.8% to reported net sales growth [4]. - Adjusted EBITDA grew by 18% year-over-year to 68.0 million, compared to 57.8millionintheprioryear[10].−Organicnetsalesgrowthwas4.457.8 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 6.4million[4].−Netincomeforthesecondquarterwas6.4 million [4]. - Net income for the second quarter was 36.7 million, an increase of 3.6million,or10.93.6 million, or 10.9%, compared to 33.1 million in the prior year [10]. - The company reported a net income of 74,869,000forthetwenty−sixweeksendedMarch1,2025,comparedto74,869,000 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,comparedto74,869,000, 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,upfrom138,069,000, 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,comparedto119,510,000, 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 140−150million[25].−NetsalesforthethirteenweeksendedMarch1,2025,were140-150 million [25]. - Net sales for the thirteen weeks ended March 1, 2025, were 359,655,000, representing a 15.2% increase from 312,199,000forthesameperiodin2024[35].−Grossprofitforthetwenty−sixweeksendedMarch1,2025,was312,199,000 for the same period in 2024 [35]. - Gross profit for the twenty-six weeks ended March 1, 2025, was 260,623,000, up from 231,988,000intheprioryear,indicatingagrowthof12.3231,988,000 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 13.3million,or11.413.3 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 6.6millionto6.6 million to 75.4 million, with G&A expenses increasing by 6.1million,largelyduetotheOWYNacquisition[6].−OperatingexpensesforthethirteenweeksendedMarch1,2025,totaled6.1 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 68,787,000inthesameperiodlastyear,reflectingariseof9.468,787,000 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 8,736,000inthepreviousyear[40].−Interestexpenseforthetwenty−sixweeksendedMarch1,2025,totaled8,736,000 in the previous year [40]. - Interest expense for the twenty-six weeks ended March 1, 2025, totaled 14,199,000, compared to 11,630,000forthesameperiodin2024,reflectinganincreaseof21.811,630,000 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 2,014,000intheprioryear[40].AssetsandLiabilities−Totalcurrentassetsincreasedto2,014,000 in the prior year [40]. Assets and Liabilities - Total current assets increased to 444,467,000 as of March 1, 2025, from 440,280,000asofAugust31,2024[33].−Long−termdebtdecreasedto440,280,000 as of August 31, 2024 [33]. - Long-term debt decreased to 298,537,000 as of March 1, 2025, down from 397,485,000asofAugust31,2024,showingareductionof25397,485,000 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 132,530,000atthebeginningoftheperiod,adecreaseof21.7132,530,000 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].−AsofMarch1,2025,thecompany′strailingtwelve−monthNetDebttoAdjustedEBITDAratiowas0.7x[21].−ThetrailingtwelvemonthsAdjustedEBITDAasofMarch1,2025,was300,000,000 [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 0.95forthetwenty−sixweeksendedMarch1,2025,comparedto0.95 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].