National Beverage (US:FIZZ)2025-09-11 20:36Financial Performance - Net sales for the three fiscal months ended August 2, 2025, were $330.5 million, a slight increase from $329.5 million for the same period in 2024, representing a growth of 0.3%[8] - Gross profit increased to $125.5 million, up from $122.4 million year-over-year, reflecting a gross margin improvement[8] - Net income for the period was $55.8 million, compared to $56.8 million in the prior year, indicating a decrease of 1.8%[9] - The company reported comprehensive income of $60.0 million for the three months ended August 2, 2025, compared to $50.7 million in the prior year, an increase of 18.5%[9] - Operating income for the period was $70.8 million, up from $69.5 million, indicating a growth of 1.9%[8] Assets and Liabilities - Total assets as of August 2, 2025, were $737.8 million, an increase from $672.9 million as of May 3, 2025, representing a growth of 9.6%[7] - Total liabilities increased slightly to $233.6 million from $228.9 million, reflecting a growth of 2.4%[7] - Retained earnings increased to $473.5 million from $417.8 million, showing a growth of 13.4%[11] - As of August 2, 2025, the company's working capital increased to $329.2 million from $266.4 million at May 3, 2025, with a current ratio of 3.2 to 1 compared to 2.9 to 1 previously[55] Cash Flow and Capital Expenditures - Cash and cash equivalents rose to $249.8 million from $193.8 million, marking an increase of 29%[13] - The company reported a decrease in interest income to $2.2 million for the first quarter of fiscal 2026, down from $4.3 million in the prior year, attributed to lower average invested balances[48] - Net cash provided by operating activities for the first quarter of fiscal 2026 was $59.1 million, up from $57.5 million in the first quarter of fiscal 2025, driven by a net decrease in working capital[53] - Capital expenditures for the first quarter of fiscal 2026 were $3.1 million, down from $3.7 million in the same period of fiscal 2025, with expectations that fiscal 2026 capital expenditures will not exceed those of fiscal 2025[54] Expenses and Costs - Selling, general and administrative expenses increased by $1.8 million to $54.7 million for the first quarter of fiscal 2026, representing 16.5% of net sales compared to 16.1% in the prior year[47] - Marketing costs were $13.6 million for the three fiscal months ended August 2, 2025, compared to $11.5 million for the same period in the previous year[23] - The cost of sales per case increased by 2.9% in the first quarter of fiscal 2026, impacting gross profit despite higher selling prices[46] Credit Facilities and Financial Position - The company has a total of $100 million in unsecured revolving credit facilities, with $97.3 million available for borrowings as of August 2, 2025[32] - The company maintains unsecured revolving credit facilities and a loan facility totaling $150 million, with no borrowings outstanding as of August 2, 2025[51] Risk and Compliance - The company is currently evaluating the impact of adopting new accounting standards, including ASU 2024-03, which may affect its consolidated financial statements[26] - There have been no material changes in market risks from those reported in the Annual Report for the fiscal year ended May 3, 2025[56] - The company has not experienced any changes in risk factors since the last annual report[62] - No changes in internal control over financial reporting have materially affected the company during the most recent fiscal quarter[58]