Utz Brands(UTZ)2025-05-01 10:50Financial Performance - Net sales for the thirteen weeks ended March 30, 2025, were $352.1 million, representing an increase of $5.6 million or 1.6% compared to $346.5 million for the same period in 2024[90]. - Gross profit decreased to $118.2 million for the thirteen weeks ended March 30, 2025, down from $119.6 million in the prior year, resulting in a gross profit margin of 33.6% compared to 34.5%[92]. - Selling, distribution, and administrative expenses increased by $3.8 million or 3.5% to $113.2 million for the thirteen weeks ended March 30, 2025, primarily due to higher personnel and delivery costs[93]. - Net income attributable to controlling interest was $7.5 million for the thirteen weeks ended March 30, 2025, compared to a net loss of $3.99 million in the same period of 2024[90]. - Adjusted EBITDA for the thirteen weeks ended March 30, 2025, was $45.1 million, compared to $43.4 million for the same period in 2024, with an Adjusted EBITDA margin of 12.8%[101]. Debt and Financing - As of March 30, 2025, the company had $739.3 million in variable rate indebtedness, an increase from $690.1 million as of December 29, 2024[81]. - The weighted average interest rate for the thirteen weeks ended March 30, 2025, was 4.9%, down from 6.6% during the same period in 2024[81]. - The company recorded a loss on debt extinguishment of $0.5 million related to the refinancing of its Term Loan B during the thirteen weeks ended March 30, 2025[107]. - As of March 30, 2025, $50.0 million was outstanding under the asset-based lending (ABL) facility, with $109.5 million available for borrowing[108]. - Net cash provided by financing activities was $67.6 million for the thirteen weeks ended March 30, 2025, primarily from net borrowings of $80.4 million, compared to net cash used of $154.0 million in the same period of 2024[115]. Operational Highlights - The company operates eight primary manufacturing facilities across the United States, distributing products through approximately 2,400 direct-store delivery routes[74]. - For the thirteen weeks ended March 30, 2025, retail volumes and retail sales in Expansion Geographies increased by 8.9% and 4.9%, respectively, compared to the prior year period[76]. - Boulder Canyon brand experienced a growth of 158.8% in same store velocities for the thirteen weeks ended March 30, 2025, compared to the prior year[84]. - The Core Geographies retail volumes and retail sales were up 2.9% and down 3.7%, respectively, for the thirteen weeks ended March 30, 2025, compared to the prior year[76]. Asset Management - The company sold certain assets and brands for $167.5 million on February 5, 2024, including the Good Health and R.W. Garcia brands[82]. - The company incurred $7.4 million in costs related to acquisitions, divestitures, and investments for the thirteen weeks ended March 30, 2025, compared to a gain of $44.0 million in the prior year[106]. - Cash used in investing activities for the thirteen weeks ended March 30, 2025 was $40.7 million, driven by purchases of property and equipment, contrasting with cash provided by investing activities of $158.0 million in the prior year, mainly from the sale of a business[114]. Tax and Other Income - Other (expense) income, net was $(0.6) million for the thirteen weeks ended March 30, 2025, a decrease of $19.9 million compared to $19.3 million in the prior year, primarily due to the absence of a $44.0 million gain on the sale of business[95]. - Income tax benefit for the thirteen weeks ended March 30, 2025, was $(0.6) million, a significant decrease from $26.5 million in the prior year, largely due to the Good Health and R.W. Garcia Sale[96]. Compliance and Risk Management - The company was in compliance with all financial and other covenants under the credit agreements as of March 30, 2025[116]. - The company partially guarantees loans made to IOs, which are collateralized by the routes purchased, allowing for recovery of outstanding loan value upon default[110]. - Long-term cash requirements include funding long-term debt repayments and related interest payments, as well as obligations related to deferred taxes and operating lease liabilities[112]. - There have been no material changes in market risk exposures since the last annual report filed on February 20, 2025[119]. - The company has not made any changes to critical accounting policies and estimates since the last annual report[118].