Blue Buffalo Pet Products, Inc. (the “Company”) (NASDAQ:BUFF), the
leading natural pet food company in the United States, today
announced its third quarter 2016 results.
- Third Quarter Highlights
- Net sales of $288 million, up 11.0%
- Net income of $21 million, down 20.6%; Adjusted Net Income of
$45 million, up 32.3%
- Adjusted EBITDA of $74 million, up 21.4%
- Diluted EPS of $0.11, down 21.1% ; Adjusted Diluted EPS of
$0.22, up 31.5%
- 2016 Outlook
- Net sales between $1,140 million and $1,150 million
- Raising Adjusted Diluted EPS outlook to $0.78 to $0.79
- CEO Succession
- Billy Bishop appointed CEO effective January 1, 2017
- Kurt Schmidt retiring with transition through 2017
“Our strong performance continued into the third
quarter, reflecting the high-quality execution of our strategy and
our ability to drive strong pet parent demand across our channels.
Given our performance through the first nine months of 2016, we are
raising our EPS guidance for the year,” said CEO Kurt Schmidt.
“It’s been an honor for me to lead Blue Buffalo for the last four
years. Passing the baton to Billy has always been part of our
succession plan, so on behalf of the Board, it is my pleasure to
announce the appointment of Billy as our new CEO.”
“It’s a real honor to lead the Company my family
and I founded in the back of a barn many years ago. I look
forward to continuing our growth and success for years to come,”
said Billy Bishop. “I want to thank Kurt for his guidance,
contributions and leadership of the Herd.”
Third Quarter of 2016 Compared to Third
Quarter of 2015
Net sales increased $28.6 million, or 11.0%, to
$288.0 million, driven primarily by volume growth. Net sales of Dry
Foods increased $24.2 million, or 11.6%, to $232.4 million while
net sales of Wet Foods, Treats and Other Products increased $4.4
million, or 8.6%, to $55.6 million.
Gross profit increased $24.9 million, or 23.0%,
to $133.2 million and gross margin was 46.3%, up 460 bps compared
with 41.7% in the third quarter of 2015. The increase in
gross margin was driven primarily by supply chain efficiencies
including lower input costs, the benefit from pricing, as well as
favorable mix.
Selling, general, and administrative expenses
increased $6.8 million, or 11.6%, to $65.5 million. Adjusted
SG&A, which excludes litigation expenses and costs incurred for
our public offerings, increased $11.6 million, or 23.0%. This
increase was primarily due to our ongoing investment in advertising
and marketing consistent with our brand building and investments in
our strategic initiatives.
On November 2, 2016, Blue Buffalo Company, Ltd.
("BBC"), a wholly owned subsidiary of the Company, entered into a
settlement agreement (the "Settlement Agreement") with respect to
previously disclosed Nestlé Purina lawsuit. In connection with the
Settlement Agreement, the Company has recorded a non-cash, pre-tax
charge of $32.0 million.
Net income decreased $5.6 million, or 20.6%, to
$21.5 million in the third quarter of 2016, as compared to $27.1
million in the third quarter of 2015. Adjusted Net Income, which
excludes litigation expenses and costs incurred for our public
offerings, increased $10.9 million, or 32.3%, to $44.7 million in
the third quarter of 2016, compared to $33.8 million in the third
quarter of 2015. Diluted Earnings Per Share in the third
quarter of 2016 decreased 21.1% to $0.11, compared to $0.14 in the
third quarter of 2015. Adjusted Diluted Earnings Per Share in the
third quarter of 2016 increased 31.5% to $0.22, compared to $0.17
in the third quarter of 2015.
First Nine Months of 2016 Compared to the First Nine
Months of 2015
Net sales increased $92.5 million, or 12.1%, to
$854.7 million, driven primarily by volume growth. Net sales of Dry
Foods increased $71.6 million, or 11.6%, to $690.8 million while
net sales of Wet Foods, Treats and Other Products increased $20.9
million, or 14.6%, to $163.9 million.
Gross profit increased $76.1 million, or 24.7%,
to $383.7 million and gross margin was 44.9%, up 450 bps compared
with 40.4% in the first nine months of 2015. The increase in
gross margin was driven primarily by supply chain efficiencies
including the ramp-up of our Heartland facility and lower input
costs, favorable mix, as well as a benefit from pricing.
Selling, general, and administrative expenses
increased $25.1 million, or 15.2%, to $190.8 million.
Adjusted SG&A, which excludes litigation expenses and costs
incurred for our public offerings, increased $33.3 million, or
22.2%. This increase was primarily due to our investments in our
strategic initiatives and our ongoing investment in advertising and
marketing consistent with our brand building strategy.
As mentioned above, the Company recorded a
non-cash, pre-tax charge of $32.0 million related to the Settlement
Agreement.
Net income increased $15.7 million, or 19.7%, to
$95.4 million as compared to $79.8 million in the first nine months
of 2015. Adjusted Net Income, which excludes litigation expenses
and costs incurred for our public offerings, increased $30.1
million, or 33.0%, to $121.3 million in the first nine months of
2016, compared to $91.2 million in the first nine months of 2015.
Diluted Earnings Per Share in the first nine months of 2016
increased 18.9% to $0.48 compared to $0.40 in the first nine months
of 2015. Adjusted Diluted Earnings Per Share in the first nine
months of 2016 increased 32.2% to $0.61, compared to $0.46 in the
first nine months of 2015.
Net cash provided by operating activities was
$111.5 million in the first nine months of 2016 compared with $94.0
million in the first nine months of 2015. Net cash provided by
operating activities for the first nine months of 2016 was reduced
by $20.0 million, net of $12.0 million in tax savings, related to
our settlement agreement in the U.S. consumer class action
lawsuits. Cash and cash equivalents were $316.4 million as of
September 30, 2016 as compared to $224.3 million as of
December 31, 2015. Capital expenditures for the first nine
months of 2016 and 2015 were $17.9 million and $5.4 million,
respectively.
Full Year 2016 Outlook
For the full year 2016, the Company expects to
deliver net sales between $1,140 million and $1,150 million. Given
our strong gross margin performance during the quarter, the Company
is taking up its gross margin expectations to approximately 45% for
the year. With the strong top-line performance, expanding gross
margins, and a favorable tax rate, the Company now expects Adjusted
Diluted Earnings Per Share to be between $0.78 and $0.79 for the
full year. The outlook for full year 2016 Adjusted Earnings Per
Share excludes costs related to litigation and the Company's public
offerings. The Company expects 2016 capital expenditures to be
between $50 to $60 million. The full year 2016 effective tax rate
is expected to be between 36.6% and 36.8%.
Important Information Regarding Non-GAAP
Financial Measures
The Company presents non-GAAP financial
measures, including Adjusted Net Income, Adjusted EBITDA, Adjusted
Diluted EPS, Adjusted SG&A, Adjusted Operating Income and
Adjusted Gross Profit, in this press release as management uses
these measures in assessing our operating performance, and we
believe they are helpful to investors, securities analysts and
other interested parties, in evaluating the performance of
companies in our industry. We also believe that these non-GAAP
financial measures are useful to management and investors,
securities analysts and other interested parties as measures of our
comparative operating performance from period to period. These
non-GAAP financial measures are not measurements of financial
performance under GAAP. They should not be considered as
alternatives to cash flow from operating activities, as measures of
liquidity, or as alternatives to net income as a measure of our
operating performance or any other measures of performance derived
in accordance with GAAP. The methods used by the Company to
calculate its non-GAAP financial measures may differ significantly
from methods used by other companies to compute similar measures.
As a result, any non-GAAP financial measures presented herein may
not be comparable to similar measures provided by other companies.
Please see the schedules to this press release for additional
information and reconciliations of such non-GAAP financial measures
to the nearest GAAP measure. With respect to our expectations under
“Full Year 2016 Outlook” above, for Adjusted Diluted EPS a
reconciliation to the closest corresponding GAAP financial measure
is not available without unreasonable efforts on a forward-looking
basis due to the high variability, complexity and low visibility
with respect to litigation expenses and public offering costs
excluded from this non-GAAP financial measure. We expect the
variability of these charges to have a potentially unpredictable,
and potentially significant, impact on our future GAAP financial
results.
Conference Call:
At 5 p.m. (Eastern Time) today, the Company will
host a conference call to provide additional commentary on third
quarter 2016 results. Further details will be accessible on the
Company’s website at http://ir.bluebuffalo.com. Participants may
dial 844-743-2498 in the United States or 661-378-9532
internationally and use the access code 1949344, or access the
webcast through the Company’s website at http://ir.bluebuffalo.com.
Participants are encouraged to dial into the call or link to the
webcast at least fifteen minutes prior to the scheduled start time.
A replay of the call will be available from November 10, 2016 to
November 24, 2016 following the call. To access the replay, dial
855-859-2056 or 404-537-3406 and use the access code 1949344. The
archive of the webcast will be available for a limited time on the
Company’s website at http://ir.bluebuffalo.com.
About Blue Buffalo
Blue Buffalo, based in Wilton, CT, is the
nation's leading natural pet food company, providing natural foods
and treats for dogs and cats under its BLUE Life Protection
Formula, BLUE Wilderness, BLUE Basics, BLUE Freedom and BLUE
Natural Veterinary Diet lines. Paying tribute to its founding
mission, the Company, through the Blue Buffalo Foundation, is a
leading sponsor of pet cancer awareness and of critical research
studies of pet cancer, including causes, treatments and the role of
nutrition, at leading veterinary medical schools and clinics across
the United States. For more information about Blue Buffalo, visit
the Company’s website at www.BlueBuffalo.com.
Forward-looking Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. These statements include, but are not limited
to, statements related to the expectations regarding the
performance of the Company's business, financial results, liquidity
and capital resources and other non-historical statements,
including the statements in the “Full Year 2016 Outlook” section of
this press release. You can identify these forward-looking
statements by the use of words such as “outlook,” “forecast,”
“guidance,” “believes,” “expects,” “potential,” “continues,” “may,”
“will,” “should,” “could,” “seeks,” “approximately,” “projects,”
“predicts,” “intends,” “plans,” “estimates,” “anticipates” or the
negative version of these words or other comparable words. Such
forward-looking statements are subject to various risks and
uncertainties, including, among others, risks inherent to the pet
food industry, macroeconomic factors beyond the Company’s control,
competition for customers, risks related to the Company’s
manufacturing and supply chain, the success of the Company’s
Heartland manufacturing facility, risk of disruption at the
Company’s third party distribution centers, risks related to the
Company’s expansion outside the United States, the Company’s
ability to protect the Company’s intellectual property and that of
third parties, performance of the Company's information technology
systems, adverse litigation judgments or settlements and the
Company’s indebtedness. Additional factors that could cause the
Company's results to differ materially from those described in the
forward-looking statements can be found under the section entitled
"Risk Factors" in the Company’s final prospectus for its secondary
public offering, as filed with the Securities and Exchange
Commission (the “SEC”) on September 14, 2016, as such risk factors
may be updated from time to time in our periodic filings with the
SEC, and which are accessible on the SEC’s website at www.sec.gov.
Accordingly, there are or will be important factors that could
cause actual outcomes or results to differ materially from those
indicated in these statements. These factors should not be
construed as exhaustive and should be read in conjunction with the
other cautionary statements that are included in this release and
in the Company's filings with the SEC. The Company undertakes no
obligation to publicly update or review any forward-looking
statement, whether as a result of new information, future
developments or otherwise, except as required by law.
|
|
|
|
Blue Buffalo Pet Products,
Inc.Unaudited Condensed Consolidated Statements of
Income(dollars in thousands, except for share
data) |
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Net sales |
$ |
287,996 |
|
|
$ |
259,437 |
|
|
$ |
854,682 |
|
|
$ |
762,209 |
|
Cost of sales |
154,787 |
|
|
151,152 |
|
|
470,938 |
|
|
454,595 |
|
Gross profit |
133,209 |
|
|
108,285 |
|
|
383,744 |
|
|
307,614 |
|
Selling, general and
administrative expenses |
65,493 |
|
|
58,664 |
|
|
190,849 |
|
|
165,723 |
|
Provision for legal
settlement |
32,000 |
|
|
— |
|
|
32,000 |
|
|
— |
|
Operating income |
35,716 |
|
|
49,621 |
|
|
160,895 |
|
|
141,891 |
|
Interest expense,
net |
3,629 |
|
|
3,722 |
|
|
10,872 |
|
|
11,097 |
|
Income before income
taxes |
32,087 |
|
|
45,899 |
|
|
150,023 |
|
|
130,794 |
|
Provision for income
taxes |
10,605 |
|
|
18,833 |
|
|
54,584 |
|
|
51,044 |
|
Net income |
$ |
21,482 |
|
|
$ |
27,066 |
|
|
$ |
95,439 |
|
|
$ |
79,750 |
|
|
|
|
|
|
|
|
|
Basic net income per
common share |
$ |
0.11 |
|
|
$ |
0.14 |
|
|
$ |
0.49 |
|
|
$ |
0.41 |
|
Diluted net income per
common share |
$ |
0.11 |
|
|
$ |
0.14 |
|
|
$ |
0.48 |
|
|
$ |
0.40 |
|
Basic weighted average
shares |
196,445,684 |
|
|
196,062,348 |
|
|
196,311,529 |
|
|
195,852,404 |
|
Diluted weighted
average shares |
199,452,308 |
|
|
198,254,808 |
|
|
199,290,017 |
|
|
198,028,543 |
|
|
|
|
|
Blue Buffalo
Pet Products, Inc.Unaudited Condensed Consolidated
Balance Sheets(dollars in thousands, except for
share data) |
|
|
|
|
|
September 30, 2016 |
|
December 31, 2015 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and
cash equivalents |
$ |
316,362 |
|
|
$ |
224,253 |
|
Receivables, net |
92,398 |
|
|
80,103 |
|
Inventories |
75,400 |
|
|
83,482 |
|
Prepaid
expenses and other current assets |
6,515 |
|
|
4,492 |
|
Total
current assets |
490,675 |
|
|
392,330 |
|
|
|
|
|
Restricted cash |
781 |
|
|
473 |
|
Property, plant and
equipment, net |
126,282 |
|
|
115,160 |
|
Deferred income
taxes |
1,696 |
|
|
3,907 |
|
Deferred debt issuance
costs, net |
104 |
|
|
196 |
|
Other assets |
517 |
|
|
480 |
|
Total
assets |
$ |
620,055 |
|
|
$ |
512,546 |
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY (DEFICIT) |
|
|
|
Current
liabilities: |
|
|
|
Current
maturities of long-term debt |
$ |
3,960 |
|
|
$ |
3,960 |
|
Accounts
payable |
35,478 |
|
|
31,428 |
|
Other
current liabilities |
72,394 |
|
|
70,459 |
|
Total
current liabilities |
111,832 |
|
|
105,847 |
|
|
|
|
|
Long-term debt |
380,167 |
|
|
383,137 |
|
Deferred income
taxes |
4,117 |
|
|
3,268 |
|
Other long-term
liabilities |
14,291 |
|
|
11,013 |
|
Total
liabilities |
510,407 |
|
|
503,265 |
|
|
|
|
|
Commitments and
contingencies |
|
|
|
Stockholders’ equity
(deficit): |
|
|
|
Preferred
stock; $0.01 par value; 150,000,000 shares authorized; none issued
or outstanding at September 30, 2016 and December 31, 2015 |
— |
|
|
— |
|
Common
stock, voting; $0.01 par value; 1,500,000,000 shares authorized;
196,515,280 and 196,216,596 shares issued and outstanding at
September 30, 2016 and December 31, 2015, respectively |
1,965 |
|
|
1,962 |
|
Additional paid-in capital |
69,752 |
|
|
64,899 |
|
Retained
earnings (accumulated deficit) |
37,890 |
|
|
(57,549 |
) |
Accumulated other comprehensive income (loss) |
41 |
|
|
(31 |
) |
Total
stockholders’ equity |
109,648 |
|
|
9,281 |
|
Total
liabilities and stockholders’ equity |
$ |
620,055 |
|
|
$ |
512,546 |
|
|
|
Blue Buffalo Pet Products,
Inc.Unaudited Condensed Consolidated Statements of
Cash Flows(dollars in thousands) |
|
|
|
Nine Months Ended September 30, |
|
2016 |
|
2015 |
Cash flows from
operating activities: |
|
|
|
Net
income |
$ |
95,439 |
|
|
$ |
79,750 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Depreciation and amortization |
6,766 |
|
|
5,981 |
|
Amortization of debt issuance costs |
91 |
|
|
91 |
|
Stock-based compensation |
3,051 |
|
|
2,935 |
|
Deferred
compensation |
— |
|
|
19 |
|
(Gain)
loss on disposal of fixed assets |
(2 |
) |
|
69 |
|
Deferred
income taxes |
3,061 |
|
|
(1,790 |
) |
Tax
benefit from exercise of stock options |
— |
|
|
(1,551 |
) |
Provision
for legal settlement |
32,000 |
|
|
— |
|
Payment
of class action legal settlement |
(32,000 |
) |
|
— |
|
Effect of
changes in operating assets and liabilities: |
|
|
|
Receivables |
(12,282 |
) |
|
2,178 |
|
Inventories |
8,257 |
|
|
(8,282 |
) |
Prepaid
expenses and other assets |
(2,066 |
) |
|
(3 |
) |
Accounts
payable |
4,055 |
|
|
4,387 |
|
Other
liabilities |
5,158 |
|
|
10,263 |
|
Net cash
provided by operating activities |
111,528 |
|
|
94,047 |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Capital
expenditures |
(17,901 |
) |
|
(5,374 |
) |
Restricted cash |
(308 |
) |
|
— |
|
Proceeds
from the sale of fixed assets |
15 |
|
|
— |
|
Net cash
used in investing activities |
(18,194 |
) |
|
(5,374 |
) |
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Principal
payments on long-term debt |
(2,970 |
) |
|
(2,970 |
) |
Proceeds
from exercise of stock options |
1,805 |
|
|
1,910 |
|
Tax
benefit from exercise of stock options |
— |
|
|
1,551 |
|
Net cash
(used in) provided by financing activities |
(1,165 |
) |
|
491 |
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents |
(60 |
) |
|
— |
|
Net increase in cash
and cash equivalents |
92,109 |
|
|
89,164 |
|
Cash and cash
equivalents at beginning of period |
224,253 |
|
|
95,788 |
|
Cash and cash
equivalents at end of period |
$ |
316,362 |
|
|
$ |
184,952 |
|
|
|
|
|
Blue
Buffalo Pet Products, Inc.Reconciliation of GAAP
to Adjusted Results*(dollars in millions, except
for share data) |
|
|
|
|
|
|
Three Months Ended September 30,
2016 |
|
|
|
Gross Profit |
|
% of Sales |
|
SG&A |
|
% of Sales |
|
Operating Income |
|
% of Sales |
|
Income Taxes |
|
% of Sales |
|
Net Income |
|
% of Sales |
|
Diluted EPS |
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
(GAAP) |
|
$ |
133.2 |
|
|
46.3 |
% |
|
$ |
65.5 |
|
|
22.7 |
% |
|
$ |
35.7 |
|
|
12.4 |
% |
|
$ |
10.6 |
|
|
3.7 |
% |
|
$ |
21.5 |
|
|
7.5 |
% |
|
$ |
0.11 |
|
|
Litigation expenses
(a) |
|
— |
|
|
|
|
2.1 |
|
|
0.7 |
% |
|
2.1 |
|
|
0.7 |
% |
|
0.8 |
|
|
0.3 |
% |
|
1.3 |
|
|
0.4 |
% |
|
0.01 |
|
|
Public offering costs
(b) |
|
— |
|
|
|
|
1.2 |
|
|
0.4 |
% |
|
1.2 |
|
|
0.4 |
% |
|
(0.3 |
) |
|
(0.1 |
)% |
|
1.5 |
|
|
0.5 |
% |
|
0.01 |
|
|
Provision for legal
settlement (c) |
|
— |
|
|
|
|
— |
|
|
|
|
32.0 |
|
|
11.1 |
% |
|
11.6 |
|
|
4.0 |
% |
|
20.4 |
|
|
7.1 |
% |
|
0.10 |
|
|
As
adjusted |
|
$ |
133.2 |
|
|
46.3 |
% |
|
$ |
62.2 |
|
|
21.6 |
% |
|
$ |
71.0 |
|
|
24.6 |
% |
|
$ |
22.6 |
|
|
7.9 |
% |
|
$ |
44.7 |
|
|
15.5 |
% |
|
$ |
0.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
2015 |
|
|
|
Gross Profit |
|
% of Sales |
|
SG&A |
|
% of Sales |
|
Operating Income |
|
% of Sales |
|
Income Taxes |
|
% of Sales |
|
Net Income |
|
% of Sales |
|
Diluted EPS |
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
(GAAP) |
|
$ |
108.3 |
|
|
41.7 |
% |
|
$ |
58.7 |
|
|
22.6 |
% |
|
$ |
49.6 |
|
|
19.1 |
% |
|
$ |
18.8 |
|
|
7.3 |
% |
|
$ |
27.1 |
|
|
10.4 |
% |
|
$ |
0.14 |
|
|
Litigation expenses
(a) |
|
— |
|
|
|
|
1.7 |
|
|
0.7 |
% |
|
1.7 |
|
|
0.7 |
% |
|
0.6 |
|
|
0.2 |
% |
|
1.1 |
|
|
0.4 |
% |
|
0.01 |
|
|
Initial public offering
costs (d) |
|
— |
|
|
|
|
6.4 |
|
|
2.5 |
% |
|
6.4 |
|
|
2.5 |
% |
|
0.7 |
|
|
0.3 |
% |
|
5.7 |
|
|
2.2 |
% |
|
0.03 |
|
|
As
adjusted |
|
$ |
108.3 |
|
|
41.7 |
% |
|
$ |
50.6 |
|
|
19.5 |
% |
|
$ |
57.7 |
|
|
22.2 |
% |
|
$ |
20.2 |
|
|
7.8 |
% |
|
$ |
33.8 |
|
|
13.0 |
% |
|
$ |
0.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
2016 |
|
|
|
Gross Profit |
|
% of Sales |
|
SG&A |
|
% of Sales |
|
Operating Income |
|
% of Sales |
|
Income Taxes |
|
% of Sales |
|
Net Income |
|
% of Sales |
|
Diluted EPS |
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
(GAAP) |
|
$ |
383.7 |
|
|
44.9 |
% |
|
$ |
190.8 |
|
|
22.3 |
% |
|
$ |
160.9 |
|
|
18.8 |
% |
|
$ |
54.6 |
|
|
6.4 |
% |
|
$ |
95.4 |
|
|
11.2 |
% |
|
$ |
0.48 |
|
|
Litigation expenses
(a) |
|
— |
|
|
|
|
5.4 |
|
|
0.6 |
% |
|
5.4 |
|
|
0.6 |
% |
|
2.0 |
|
|
0.2 |
% |
|
3.5 |
|
|
0.4 |
% |
|
0.02 |
|
|
Public offering costs
(b) |
|
— |
|
|
|
|
2.1 |
|
|
0.2 |
% |
|
2.1 |
|
|
0.2 |
% |
|
— |
|
|
— |
% |
|
2.1 |
|
|
0.2 |
% |
|
0.01 |
|
|
Provision for legal
settlement (c) |
|
— |
|
|
|
|
— |
|
|
|
|
32.0 |
|
|
3.7 |
% |
|
11.6 |
|
|
1.4 |
% |
|
20.4 |
|
|
2.4 |
% |
|
0.10 |
|
|
As
adjusted |
|
$ |
383.7 |
|
|
44.9 |
% |
|
$ |
183.3 |
|
|
21.4 |
% |
|
$ |
200.4 |
|
|
23.5 |
% |
|
$ |
68.2 |
|
|
8.0 |
% |
|
$ |
121.3 |
|
|
14.2 |
% |
|
$ |
0.61 |
|
|
|
|
Nine Months Ended September 30,
2015 |
|
|
|
Gross Profit |
|
% of Sales |
|
SG&A |
|
% of Sales |
|
Operating Income |
|
% of Sales |
|
Income Taxes |
|
% of Sales |
|
Net Income |
|
% of Sales |
|
Diluted EPS |
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
(GAAP) |
|
$ |
307.6 |
|
|
40.4 |
% |
|
$ |
165.7 |
|
|
21.7 |
% |
|
$ |
141.9 |
|
|
18.6 |
% |
|
$ |
51.0 |
|
|
6.7 |
% |
|
$ |
79.8 |
|
|
10.5 |
% |
|
$ |
0.40 |
|
|
Litigation expenses
(a) |
|
— |
|
|
|
|
7.2 |
|
|
0.9 |
% |
|
7.2 |
|
|
0.9 |
% |
|
2.7 |
|
|
0.4 |
% |
|
4.4 |
|
|
0.6 |
% |
|
0.02 |
|
|
Initial public offering
costs (d) |
|
— |
|
|
|
|
8.5 |
|
|
1.1 |
% |
|
8.5 |
|
|
1.1 |
% |
|
1.5 |
|
|
0.2 |
% |
|
7.0 |
|
|
0.9 |
% |
|
0.04 |
|
|
As
adjusted |
|
$ |
307.6 |
|
|
40.4 |
% |
|
$ |
150.0 |
|
|
19.7 |
% |
|
$ |
157.6 |
|
|
20.7 |
% |
|
$ |
55.3 |
|
|
7.3 |
% |
|
$ |
91.2 |
|
|
12.0 |
% |
|
$ |
0.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
may not be additive due to rounding. |
(a)
Represents costs primarily related to the litigation with Nestlé
Purina PetCare Company. |
(b)
Represents costs incurred for our public offerings. |
(c)
Represents a provision related to the Settlement Agreement entered
into in November 2016. |
(d)
Represents costs incurred for our initial public offering. |
|
|
|
|
|
Blue
Buffalo Pet Products, Inc.Reconciliation of GAAP
to Adjusted Results*(dollars in millions, except
for share data) |
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, 2016 |
|
September 30, 2015 |
|
September 30, 2016 |
|
September 30, 2015 |
Net
income |
|
$ |
21.5 |
|
|
$ |
27.1 |
|
|
$ |
95.4 |
|
|
$ |
79.8 |
|
Interest expense,
net |
|
3.6 |
|
|
3.7 |
|
|
10.9 |
|
|
11.1 |
|
Provision for income
taxes |
|
10.6 |
|
|
18.8 |
|
|
54.6 |
|
|
51.0 |
|
Depreciation and
amortization |
|
2.3 |
|
|
2.1 |
|
|
6.8 |
|
|
6.0 |
|
EBITDA
(a) |
|
38.0 |
|
|
51.7 |
|
|
167.7 |
|
|
147.9 |
|
Litigation expenses
(b) |
|
2.1 |
|
|
1.7 |
|
|
5.4 |
|
|
7.2 |
|
Public offering costs
(c) |
|
1.2 |
|
|
— |
|
|
2.1 |
|
|
— |
|
Initial public offering
costs (d) |
|
— |
|
|
6.4 |
|
|
— |
|
|
8.5 |
|
Provision for legal
settlement (e) |
|
32.0 |
|
|
— |
|
|
32.0 |
|
|
— |
|
Stock-based
compensation (f) |
|
1.0 |
|
|
1.4 |
|
|
3.1 |
|
|
2.3 |
|
Adjusted
EBITDA |
|
$ |
74.3 |
|
|
$ |
61.2 |
|
|
$ |
210.2 |
|
|
$ |
165.9 |
|
|
|
|
|
|
|
|
|
|
* Amounts
may not be additive due to rounding. |
|
|
|
|
(a) EBITDA
represents net income plus interest expense, net, provision for
income taxes and depreciation and amortization. |
(b)
Represents costs primarily related to the litigation with Nestlé
Purina PetCare Company. |
(c)
Represents costs incurred for our public offerings. |
(d)
Represents costs incurred for our initial public offering. |
(e)
Represents a provision related to the Settlement Agreement entered
into in November 2016. |
(f)
Represents non-cash, stock-based compensation expense. |
Contacts:
Investors & Financial Analysts
Michael Nathenson
EVP & CFO
203-665-3400
investors@bluebuff.com
Media
Phil Cheevers
VP, Communications
203-665-3234
media@bluebuff.com
BLUE BUFFALO PET PRODUCTS, INC. (NASDAQ:BUFF)
Historical Stock Chart
From Feb 2024 to Mar 2024
BLUE BUFFALO PET PRODUCTS, INC. (NASDAQ:BUFF)
Historical Stock Chart
From Mar 2023 to Mar 2024