TreeHouse(US:THS)2024-11-12 21:20Financial Performance - Net sales for the three months ended September 30, 2024, were $839.1 million, a decrease of 2.5% compared to $863.3 million for the same period in 2023[6] - Gross profit for the nine months ended September 30, 2024, was $371.5 million, down 12.6% from $424.3 million in the prior year[6] - Operating income for the three months ended September 30, 2024, was $31.8 million, a decline of 5.4% from $33.6 million in the same period last year[6] - Net loss for the three months ended September 30, 2024, was $(3.4) million, compared to a net income of $7.1 million for the same period in 2023[8] - Earnings per share (basic) for continuing operations was $(0.07) for the three months ended September 30, 2024, compared to $0.18 in the prior year[6] - Comprehensive loss income for the three months ended September 30, 2024, was $(1.9) million, compared to $5.4 million in the same period last year[8] - Net loss for the nine months ended September 30, 2024, was $31.8 million, compared to a net income of $45.6 million for the same period in 2023[10] Operating Expenses - Total operating expenses for the three months ended September 30, 2024, were $99.4 million, a decrease from $103.9 million in the same period last year[6] - Total operating expenses for the nine months ended September 30, 2024, were $348.9 million, an increase from $319.5 million in the same period of 2023[6] - Interest expense for the three months ended September 30, 2024, was $16.0 million, down from $20.9 million in the prior year[6] - The company incurred stock-based compensation of $15.5 million for the nine months ended September 30, 2024, compared to $19.1 million in the same period of 2023[10] Cash Flow and Investments - Cash flows from operating activities for continuing operations showed a net cash used of $30.4 million, a decrease from $11.0 million provided in the prior year[10] - The company reported a net cash used in investing activities of $90.2 million for continuing operations, compared to $179.3 million in the previous year[10] - The company reported a net cash decrease of $218.3 million for the nine months ended September 30, 2024, compared to a decrease of $23.3 million in the prior year[10] - The balance of cash and cash equivalents at the end of the period was $102.0 million, up from $19.7 million at the end of the previous year[10] Acquisitions and Disposals - The company completed the acquisition of pickle branded assets for approximately $25.9 million in cash on January 2, 2024, expanding its presence in the Pickles category in Canada[33] - The acquisition of the Direct Ship coffee business was completed for approximately $90.6 million in cash, funded by borrowings from a $500.0 million Revolving Credit Facility[36] - The acquisition of a seasoned pretzel capability was completed for a total purchase price of $14.0 million, including $5.4 million recognized as Goodwill[38] - The sale of the Snack Bars business was completed for approximately $58.7 million in cash, with an expected gain on disposal of $1.2 million recognized[40] - The sale of a significant portion of the Meal Preparation business was finalized at a purchase price of $943.5 million, consisting of $522.6 million in cash and a $420.9 million Seller Promissory Note[42] Inventory and Receivables - For the nine months ended September 30, 2024, TreeHouse Foods reported total inventories of $617.3 million, an increase from $534.0 million as of December 31, 2023[31] - As of September 30, 2024, outstanding accounts receivable sold under the Receivables Sales Program amounted to $241.5 million, down from $343.8 million as of December 31, 2023[29] - The company experienced a significant increase in receivables, with a net change of $(48.8) million for the nine months ended September 30, 2024[10] Debt and Equity - As of September 30, 2024, TreeHouse Foods, Inc. had total outstanding debt of $1,408.2 million, slightly up from $1,405.6 million on December 31, 2023[56] - The fair value of the company's total debt was $1,368.4 million as of September 30, 2024, compared to a carrying value of $1,405.0 million[57] - The company had $468.6 million available under its $500.0 million Revolving Credit Facility as of September 30, 2024, with $31.4 million in letters of credit issued but undrawn[56] - The stock repurchase program has $78.0 million remaining available under the total authorization of $400 million as of September 30, 2024[58] - During the three months ended September 30, 2024, the company repurchased 1.1 million shares at a weighted average price of $46.59, totaling $50.0 million[59] Tax and Compliance - The effective tax rates were 20.9% and 21.5% for the three and nine months ended September 30, 2024, compared to 27.4% and 27.5% for the same periods in 2023[54] - The company has not recorded any amount in its financial statements related to ongoing litigation against Keurig Dr. Pepper Inc. as of September 30, 2024[88] Other Financial Metrics - The company recognized an impairment charge of $19.3 million for the Ready-to-drink beverages asset group due to forecasted cash flow losses[50] - The total carrying amount of Goodwill decreased from $1,824.7 million at December 31, 2023, to $1,823.2 million at September 30, 2024[52] - The total net carrying amount of intangible assets was $224.7 million as of September 30, 2024, compared to $257.4 million at December 31, 2023[53] - The company recognized a total unrealized loss of $19.5 million on derivative contracts for the three months ended September 30, 2024[96]