Flowers Foods(FLO)2024-11-08 12:15Financial Performance - Net sales decreased 0.7% to $1.191 billion, with positive pricing/mix of 1.7% offset by a volume decline of 2.4%[2] - Net income increased by $111.7 million to $65.0 million, while adjusted net income rose 12.4% to $69.3 million[2][6] - Adjusted EBITDA increased 10.0% to $133.3 million, representing 11.2% of net sales, a 110-basis point increase[2][6] - For the 12-week period ended October 5, 2024, net sales were $1,190,561, a decrease of 0.7% compared to $1,199,260 for the same period in 2023[13] - Net income for the 12-week period ended October 5, 2024, was $64,984, compared to a loss of $46,730 for the same period in 2023[20] - Adjusted net income per diluted common share for the 12-week period ended October 5, 2024, was $0.33, up from $0.29 in the prior year[18] - Adjusted EBITDA for the 12-week period ended October 5, 2024, was $133,310, compared to $121,181 for the same period in 2023[22] Future Guidance - The company expects net sales for fiscal 2024 to be in the range of $5.116 billion to $5.147 billion, reflecting growth of 0.5% to 1.1%[4] - Adjusted diluted EPS is projected to be in the range of approximately $1.24 to $1.28 for fiscal 2024[4] - Future guidance indicates net income per diluted common share is expected to range from $1.15 to $1.19[23] Expenses and Costs - Selling, distribution, and administrative expenses decreased to 38.7% of net sales, a 1,170-basis point decrease due to lower legal settlements and related costs[6] - Legal settlements and related costs were $0.8 million, significantly down from $137.5 million in the prior year quarter[6] - Selling, distribution, and administrative expenses for the 12-week period ended October 5, 2024, were $460,359, down from $603,954 in the prior year[19] - Legal settlements and related costs for the 12-week period ended October 5, 2024, were $827, significantly lower than $137,529 in the same period of 2023[20] - Business process improvement costs for the 12-week period ended October 5, 2024, were $490, compared to $5,814 in the previous year[20] Capital and Assets - Capital expenditures for the year are expected to be in the range of $130 million to $140 million, with $5 million to $7 million related to the ERP upgrade[4] - Cash and cash equivalents decreased to $14,975 as of October 5, 2024, from $22,527 as of December 30, 2023[12] - Total assets increased slightly to $3,429,959 as of October 5, 2024, compared to $3,426,953 as of December 30, 2023[12] - Long-term debt increased to $1,054,143 as of October 5, 2024, from $1,048,144 as of December 30, 2023[12] - The company’s stockholders' equity increased to $1,406,526 as of October 5, 2024, from $1,351,782 as of December 30, 2023[12] Sales Performance - The company experienced a 1.5% decrease in branded retail sales for the 12-week period ended October 5, 2024, while other sales increased by 0.7%[17] - For the 40-week period ended October 5, 2024, total net sales were $3,992,362, an increase of 0.8% compared to $3,961,803 for the same period in 2023[16] - Gross margin for the 12-week period ended October 5, 2024, was $571,438, compared to $562,567 for the same period in 2023[19]