National Beverage (US:FIZZ)2024-03-06 16:00Financial Performance - Net income for the three months ended January 27, 2024, was $39,592 thousand, an increase of 15.5% compared to $34,361 thousand for the same period in 2023[15] - Comprehensive income for the nine months ended January 27, 2024, was $136,387 thousand, up from $99,267 thousand for the same period in 2023, reflecting a growth of 37.5%[15] - Net sales for the third quarter of fiscal 2024 increased by $1.6 million to $270.1 million, driven by a 0.9% increase in average selling price per case, despite a 0.7% decline in case volume[54] - For the first nine months of fiscal 2024, net sales increased by $8.2 million to $894.4 million, attributed to a 2.6% rise in average selling price per case, despite a 2.1% decline in case volume[58] Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended January 27, 2024, was $137,465 thousand, compared to $112,253 thousand for the same period in 2023, representing a 22.4% increase[17] - Cash and equivalents at the end of the period on January 27, 2024, totaled $276,961 thousand, significantly higher than $118,324 thousand at the end of January 28, 2023[17] - The company reported a net increase in cash and equivalents of $118,887 thousand for the nine months ended January 27, 2024, compared to $70,274 thousand for the same period in 2023, indicating a 69.2% increase[17] - The company's cash position increased by $118.9 million for the first nine months of fiscal 2024, compared to an increase of $70.3 million for the same period in fiscal 2023[65] Expenses and Costs - Shipping and handling costs for the three months ended January 27, 2024, were $17.7 million, down from $20.2 million for the same period in 2023, a decrease of 12.4%[20] - Selling, general and administrative expenses for the third quarter of fiscal 2024 decreased by $1.6 million to $48.9 million, representing 18.1% of net sales, down from 18.8% in the previous year[56] - Gross profit for the third quarter of fiscal 2024 rose to $97.0 million, with gross margin increasing to 35.9% from 35.4% in the prior year, primarily due to higher average selling prices[55] - Gross profit for the first nine months of fiscal 2024 increased to $319.4 million, with gross margin improving to 35.7% from 33.2% in the prior year, aided by a decline in packaging and ingredient costs[59] Assets and Liabilities - Retained earnings at the end of the period on January 27, 2024, were $491,356 thousand, up from $322,042 thousand at the end of January 28, 2023, marking a growth of 52.5%[16] - Working capital rose to $356.0 million as of January 27, 2024, up from $222.1 million at April 29, 2023, with a current ratio of 3.7 to 1[67] - As of January 27, 2024, inventories included finished goods of $53.1 million and raw materials of $35.6 million, compared to $54.3 million and $39.2 million, respectively, as of April 29, 2023[31] Investments and Capital Expenditures - Capital expenditures for the first nine months of fiscal 2024 were $19.5 million, compared to $12.3 million for the same period in fiscal 2023, with anticipated total capital expenditures for fiscal 2024 expected to be between $27 million and $30 million[73] Financial Ratios and Metrics - Interest income for the first nine months of fiscal 2024 was $5.8 million, up from $0.5 million in the same period of fiscal 2023, attributed to increased average invested balances and higher yields[64] - Trade receivables decreased by $3.2 million, while days sales outstanding increased to 34.3 days from 33.3 days[67] - Inventories decreased by $4.9 million, and inventory turns improved to 8.3 times from 7.9 times[67] Risk Management and Compliance - The company has no material changes in market risks compared to the previous fiscal year[79] - There were no changes in internal control over financial reporting that materially affected the company during the most recent fiscal quarter[74] - The company has entered into aluminum swap contracts to mitigate exposure to changes in aluminum container costs, with gains or losses reported in accumulated other comprehensive income[76] Taxation - The effective income tax rate for the first nine months of fiscal 2024 was 22.8%, down from 23.5% for the same period in fiscal 2023[72] Debt and Credit Facilities - The company maintained unsecured revolving credit facilities with banks aggregating $100 million, with no borrowings outstanding as of January 27, 2024[21] - The company maintained unsecured revolving credit facilities totaling $150 million, with no borrowings outstanding as of January 27, 2024[47] Depreciation and Amortization - The company reported depreciation and amortization expenses of $15,089 thousand for the nine months ended January 27, 2024, slightly down from $15,552 thousand for the same period in 2023[17]