Utz Brands(UTZ)2025-02-20 22:23Distribution Network - The Direct-Store-Delivery (DSD) network includes approximately 2,500 routes reaching over 81,500 retail stores in 2024[65] - Third-party distributors operate an additional approximately 500 DSD-style routes, reaching over 15,000 retail stores[66] Direct-to-Consumer Growth - Direct-to-consumer shipments have significantly grown since 2019, originating from orders via the company website and select third-party retailer sites[67] Employment and Workforce - As of December 29, 2024, the company employed approximately 3,000 full-time associates and 200 part-time associates[77] Plant Operations - The company has reduced its plant footprint by three plants in fiscal year 2023 and an additional five plants in the first quarter of fiscal year 2024[78] Commodity Pricing Impact - A 1% increase in the price of commodities used within products and packaging would result in a reduction of gross profit of approximately $6.0 million[276] Cost Structure Changes - The company has transitioned from a predominantly company-owned route sales professionals model to using independent operators, creating a more variable cost structure[65] Sustainability Initiatives - The company’s sustainability program is guided by frameworks such as SASB, TCFD, and the U.N. Sustainable Development Goals[79] Gender Diversity in Leadership - The company has seen an increase in gender diversity in senior leadership, with women in senior leadership rising from 16% in 2021 to 27% in 2023[73] Trademark Licensing Sales - Sales under trademark licensing agreements represent approximately 1% of the company's 2024 invoice sales[84] Interest Expense and Rates - The company incurred $21.0 million higher interest expense without interest rate swap agreements during the fiscal year ended December 29, 2024[277] - The weighted average interest rates were 5.1% and 6.7% as of December 29, 2024, and December 31, 2023, respectively[277] - A 1% increase in the SOFR rate would have resulted in an additional $2.0 million of interest expense during the fiscal year 2024 based on the unhedged portion of debt[277] Bad Debt Expense - The net bad debt expense was $0.7 million for the fiscal year ended December 29, 2024, compared to $1.2 million for the fiscal year ended December 31, 2023[278] - The reserve for potential future bad debt was $3.3 million as of December 29, 2024, up from $2.9 million as of December 31, 2023[278]