- BEF Foods reports Q3 retail side-dish and sausage
pounds sold growth of 13 percent and 3 percent, respectively.
Q3 food service volume grew 19 percent
- Revenue from continuing operations(1) increases 4.6% to
$112.8 million
- Company reports Q3 2017 GAAP net income of $0.41 per
diluted share, non-GAAP net income(1,3) of $0.75 per diluted
share
- Completion of Pineland Farms Potato Company acquisition
expected by May 1, 2017. $115M acquisition expected to be
funded with a new $300 million credit facility. Company
expected to target 1.0 to 2.0x leverage following
transaction
- Previously announced sale of Bob Evans Restaurants to
Golden Gate Capital remains on schedule for the end of fiscal
2017. BER segment classified as discontinued
operations. Net proceeds of transaction expected to be used
for repayment of outstanding indebtedness and payment of a special
dividend of approximately $150 million ($7.50 per share) within
approximately 60 days following closing
- Company raises fiscal year 2017 non-GAAP(2)
adjusted diluted EPS guidance range to $2.22 to $2.32, assuming
completion of transactions at the end of fiscal
2017
- Quarterly dividend of $0.34 per share payable on March
27, 2017, to stockholders of record at the close of business on
March 13, 2017. $100 million share repurchase
authorization in place through calendar 2017
(1) On January 24, 2017, the Company entered into a definitive
agreement with an affiliate of Golden Gate Capital (“GGC”) pursuant
to which the Company agreed to sell its Bob Evans Restaurants
business. The results of operations of Bob Evans
Restaurants (“BER”) have been treated as discontinued operations
and all GAAP financial statement items for the current and prior
periods reflect BER as a discontinued business. All
costs not directly attributable to BER remain in continuing
operations. Assets being sold in the transaction include all
assets associated with BER as well as our corporate
headquarters. All assets being sold and liabilities being
assumed by GGC are classified as held for sale on the Company’s
consolidated balance sheet.
Bob Evans Farms, Inc. (NASDAQ:BOBE) today announced its financial
results for the fiscal 2017 third quarter ended Friday, January 27,
2017. On a GAAP basis, the Company reported net income of
$8.2 million, or $0.41 per diluted share, compared with net income
of $12.9 million, or $0.62 per diluted share, in the corresponding
period last year. Non-GAAP net income was $15.0 million, or
$0.75 per diluted share, compared with net income of $12.9 million,
or $0.62 per diluted share, in the corresponding period last year.
- Net sales from continuing and discontinued operations in the
third quarter totaled $335.9 million and included $112.8 million
from continuing operations and $223.1 million from discontinued
operations. Total net sales in the prior year period totaled
$346.5 million and included $107.9 million from continuing
operations and $238.6 million from discontinued operations.
- GAAP net income in the third quarter of $8.2 million consists
of $9.8 million from continuing operations and a $1.6 million loss
from discontinued operations. Non-GAAP net income in the
third quarter of $15.0 million includes $10.8 million from
continuing operations and $4.2 million from discontinued
operations. GAAP and non-GAAP net income in the prior year
period of $12.9 million consisted of $6.4 million from continuing
operations and $6.5 million from discontinued operations.
- GAAP diluted earnings per share in the third quarter of $0.41
consists of $0.49 from continuing operations and a loss of $0.08
from discontinued operations. Non-GAAP diluted earnings per
share in the third quarter of $0.75 consists of $0.54 from
continuing operations and $0.21 from discontinued operations.
GAAP and non-GAAP diluted earnings per share of $0.62 for the
prior-year period consisted of $0.31 from continuing operations and
$0.31 from discontinued operations.
Third-quarter fiscal 2017 commentaryPresident
and Chief Executive Officer Saed Mohseni said, “BEF Foods achieved
year-over-year market share and pounds sold growth in its key
product categories and distribution channels. Retail channel
pounds sold increased nearly 8 percent, with retail side-dish and
sausage gains of approximately 13 percent and 3 percent,
respectively, driving market share gains in core and national
markets. Food service sales were likewise strong with 19
percent year-over-year pounds sold growth. We expect
completion of our acquisition of Pineland Farms Potato Company by
May 1, 2017, and look forward to its contribution to continued
sales and profit growth of BEF Foods during fiscal year 2018 and
beyond.
“As we said on January 24, 2017, when we announced the upcoming
sale of Bob Evans Restaurants and the acquisition of Pineland Farms
Potato Company, these transactions represent the beginning of a new
era at Bob Evans Farms in which the Company will focus on realizing
the full potential of its BEF Foods business. We are
progressing as expected with the sale of Bob Evans Restaurants to
Golden Gate Capital, and expect to complete the transaction at the
end of the fourth quarter. The new Bob Evans Farms, further
strengthened by the manufacturing and intellectual capital of
Pineland Farms Potato Company, is positioned to be a higher profit
and higher growth company that is expected to provide better
returns to shareholders and an enhanced array of products for a
growing national customer base.”
Third-quarter fiscal 2017 summary - continuing
operationsNet sales from continuing operations were $112.8
million, an increase of $4.9 million, or 4.6 percent, compared to
$107.9 million in the corresponding period last year. Pounds
sold increased 7.6 percent while average net selling price per
pound declined 2.8 percent compared to the corresponding period
last year. The decline in average net selling price reflects
an increased sales mix of lower-priced, although higher-margin,
side-dish products relative to sausage, as well as reduced net
sausage pricing. From a net sales perspective, a 13.1 percent
increase in side-dish pounds sold, a 2.8 percent increase in
sausage pounds sold, and a 6.1 percent increase in external food
service pounds sold were partially offset by a $1.6 million
increase in trade spending (reduces net sales), and a 4.3 percent
decline in frozen product pounds sold compared to the corresponding
period last year.
GAAP operating income from continuing operations was $17.1
million, compared to $11.4 million last year. Non-GAAP
operating income from continuing operations was $19.5 million,
compared to $11.4 million in the corresponding period last year, an
improvement of $8.1 million. The improvement was due
primarily to the aforementioned increase in pounds sold, the
favorable sales mix of higher-margin side dish items, lower
SG&A costs, and $1.2 million of lower net sow costs; partially
offset by increased advertising expense, and increased freight
expense resulting from increased pounds sold. SG&A
expenses totaling $5.8 million ($17.2 million year-to-date),
previously identified as “corporate and other” costs, are now
included within continuing operations. Of these costs, $2.0
million ($5.8 million year-to-date) represent costs primarily
related to wages and benefits for terminated employees that will no
longer be in the Company’s expense base in fiscal 2018.
Third-quarter fiscal 2017 summary - discontinued
operationsThe Company has classified the results of
operations, impairment charges and separation costs related to BER
as discontinued operations.
Net sales from discontinued operations were $223.1 million, a
decline of $15.5 million, or 6.5 percent, compared to net sales of
$238.6 million in the corresponding period last year. Same-store
sales declined 2.6 percent with the balance of the net sales
decline due to net restaurant closures during the past year. No
restaurants were closed and one restaurant opened during the
quarter. The Company operated 523 restaurants at the end of
the quarter.
Same-Store Sales (SSS)
Restaurants |
November |
December |
January |
Q3 FY ’17 |
521 |
-1.2% |
-6.7% |
0.0% |
-2.6% |
GAAP pretax loss from discontinued operations was $4.6 million,
compared to GAAP pretax income from discontinued operations of $6.6
million last year. Non-GAAP pretax income from discontinued
operations was $2.5 million, compared to $6.6 million last year, a
decline of $4.1 million. The decline in non-GAAP pretax
income from discontinued operations was due to lower sales and
increased hourly wage rates and investment in labor hours to
support efforts to improve guest hospitality; partially offset by
lower commodity costs, lower healthcare costs and reduced
discounting.
Third-quarter fiscal 2017 net interest expense
- GAAP and non-GAAP net interest expense from continuing operations
was $2.1 million in the third quarter, a decline of $0.3 million,
compared to $2.4 million in the corresponding period last
year. The borrowing rate on the Company’s outstanding debt
was 2.52 percent at the end of the third quarter, compared to 2.18
percent for the prior year period. All borrowings are
included in continuing operations; interest related to the
headquarters mortgage is included within discontinued
operations.
Third-quarter fiscal 2017 taxes - The Company’s
provision for income taxes is based on a current estimate of the
annual effective income tax rate adjusted to reflect the impact of
discrete items. The Company recognized GAAP tax expense for
continuing operations of 34.3 percent for the third quarter of
fiscal 2017, as compared to 29.2 percent for the prior year period.
The change in the tax rate was driven primarily by the yearly
variances in the forecasted annual tax rate related to officer’s
life insurance and the domestic productions activities
deduction. Year-to-date, the Company recognized GAAP tax
expense for continuing operations of 34.3 percent, compared to 31.0
percent for the prior year. For non-GAAP items, the tax rate
was 37.7 percent for continuing operations, reflecting the
Company’s non-GAAP annual estimated tax rate adjusted for the
impact of third quarter discrete items. Year-to-date, the
Company’s non-GAAP estimated tax rate for continuing operations
adjusted for the impact of discrete items was 35.4 percent.
Discontinued operations are presented net of income tax expense or
benefit.
Third-quarter fiscal 2017 balance sheet
highlights - The Company’s cash balance and outstanding
debt at the end of the quarter were $2.4 million and $330.1
million, respectively, compared to $6.3 million and $496.0 million
at the end of the corresponding period last year. The Company
was in compliance with its debt covenants at the end of the
quarter. The decrease in borrowings was primarily the result
of the use of proceeds from recent real estate monetization
transactions and operating cash flow to reduce debt, partially
offset by share repurchases, capital expenditures, and dividend
payments. On a pro-forma basis, assuming the 2016
sale-leaseback transactions occurred at the beginning of fiscal
2016, the Company’s quarter-end leverage ratio was 2.66.
Fiscal year 2017 outlookChief Administrative
and Chief Financial Officer Mark Hood said, “We have raised our
consolidated non-GAAP diluted earnings per share range to $2.22 to
$2.32, from $2.15 to $2.30 per share previously, to reflect the
impact of lower net sow costs and continued focus on operating
efficiency. We are unable to provide GAAP EPS guidance
at this time as the Company cannot reliably forecast the timing and
magnitude of the gain on the sale of BER, the amount of non-cash
costs associated with acceleration of stock based compensation
awards and other restructuring, impairment and acquisition and
divestiture related costs that may occur, and the income tax
effects of these items. Remaining guidance items are
presented for continuing operations. The sale of BER,
acquisition of Pineland Farms Potato Company, and establishment of
our new credit facility remain on-track for completion.”
Guidance Metric |
|
|
FY ‘17 |
BEF Foods net
sales |
|
|
$390
to $410 million |
BEF Foods sow cost (per
hundredweight) |
|
|
$41-$44 |
Capital expenditures -
continuing operations |
|
|
$30 to
$35 million |
Depreciation and
amortization - continuing operations |
|
|
$28 to
$30 million |
Net interest
expense |
|
|
$9 to
$10 million (excluding mortgage interest included
in discontinued operations) |
Non-GAAP Tax rate -
continuing operations |
|
|
35% to
36% |
Diluted
weighted-average share count |
|
|
approximately 20 million shares |
Share repurchase
authorization |
|
|
$100
million |
Non-GAAP diluted
earnings per share - consolidated |
|
|
$2.22
to $2.32 |
This outlook is subject to a number of factors beyond the
Company’s control, including the risk factors discussed in the
Company’s fiscal 2016 Annual Report on Form 10‑K and its other
subsequent filings with the Securities and Exchange Commission.
Investor Conference CallThe Company will host a
conference call to discuss its third-quarter fiscal 2017 results at
8:30 a.m. (ET) on Wednesday, March 8, 2017. The dial-in
number for the conference call is (855) 468-0551, access code
69455358. A replay will be available at (800) 585-8367,
access code 69455358.
A simultaneous webcast will be available at
http://investors.bobevans.com/events.cfm. The archived webcast will
also be available on the Web site.
(3)Non-GAAP Financial
MeasuresOur non-GAAP measures are used by analysts,
investors and other interested parties to compare our performance
with the performance of other companies that report similar
non-GAAP measures. We believe these non-GAAP measures provide
meaningful supplemental information regarding financial performance
by excluding certain expenses and benefits that may not be
indicative of core business operating results. We believe the
non-GAAP measures, when viewed in conjunction with U.S. GAAP
results and the accompanying reconciliations, enhance the
comparability of results against prior periods and allow for
greater transparency of financial results and business outlook. In
addition, we use non-GAAP data internally to assess performance and
facilitate management's internal comparison of our financial
performance to that of prior periods, as well as trend analysis for
budgeting and planning purposes. The presentation of our non-GAAP
measures is not intended to be considered in isolation or as a
substitute for, or superior to, the financial information prepared
and presented in accordance with U.S. GAAP. Furthermore, our
non-GAAP measures may not be comparable to similarly titled
measures reported by other companies and may have limitations as an
analytical tool.
Reconciliations of the Company’s projected adjusted diluted EPS
for fiscal year 2017 and the most directly comparable GAAP
financial measures are omitted from this release because the
Company is unable to provide such reconciliations without
unreasonable effort. In particular, in light of the pending
transactions referenced in this release, management is not able to
calculate certain amounts necessary to provide corresponding
forecasted financial measures calculated in accordance with GAAP
and related reconciliations at this time as the Company cannot
reliably forecast the timing and magnitude of the gain on the sale
of BER, the amount of non-cash costs associated with acceleration
of stock based compensation awards and other restructuring,
impairment and acquisition and divestiture related costs that may
occur, and the income tax effects of these items.
Safe Harbor Statement under the Private Securities
Litigation Reform Act of 1995Certain statements in this
news release that are not historical facts are forward-looking
statements. Forward-looking statements involve various important
assumptions, risks and uncertainties. Actual results may differ
materially from those predicted by the forward-looking statements
because of various factors and possible events. The risks and
uncertainties in connection with such forward-looking statements
related to the proposed transactions include, but are not limited
to, the occurrence of any event, change or other circumstances that
could delay the closing of either the sale of BER or the
acquisition of Pineland Farms; the possibility of non-consummation
of the proposed transactions and the termination of the respective
transaction agreements; the failure to satisfy any of the
conditions to the respective transaction agreements; adverse
effects on the Company’s common stock because of the failure to
complete either of the proposed transactions; the Company’s
businesses experiencing disruptions due to transaction-related
uncertainty or other factors making it more difficult to maintain
relationships with employees and business partners; significant
transaction costs related to the proposed transactions; and the
dependence on the proposed special dividend following the
consummation of the sale of BER. Additional information about
the factors and events that could cause actual results to differ
materially from those predicted by the forward looking statements,
along with certain other risks, uncertainties and assumptions
related to the Company and its business, may be found in our Annual
Report on Form 10-K for the fiscal year ended April 29, 2016, our
Quarterly Report on Form 10-Q for the quarter ended January 27,
2017, and in our other filings with the Securities and Exchange
Commission. We note these factors for investors as contemplated by
the Private Securities Litigation Reform Act of 1995. Predicting or
identifying all such risk factors is impossible. Consequently,
investors should not consider any such list to be a complete set of
all potential risks and uncertainties. Forward-looking
statements speak only as of the date on which they are made, and we
undertake no obligation to update any forward-looking statement to
reflect circumstances or events that occur after the date of the
statement to reflect unanticipated events. All subsequent
written and oral forward-looking statements attributable to us or
any person acting on behalf of the Company are qualified by the
cautionary statements in this section.
About Bob Evans Farms, Inc.Bob Evans Farms,
Inc., through its BEF Foods segment, is a leading producer and
distributor of refrigerated side dishes, pork sausage, and a
variety of refrigerated and frozen convenience food items under the
Bob Evans and Owens brand names. Bob Evans Farms, Inc. also
owns and operates full-service restaurants under the Bob Evans
Restaurants brand name. At the end of the third fiscal
quarter (January 27, 2017), Bob Evans Restaurants owned and
operated 523 family restaurants in 18 states, primarily in the
Midwest, mid-Atlantic and Southeast regions of the United
States. The Company announced a definitive agreement for the
sale of Bob Evans Restaurants in a press release dated January 24,
2017. For more information about Bob Evans Farms, Inc., visit
www.bobevans.com.
BOBE-E
Source: Bob Evans Farms, Inc.
|
Bob Evans Farms, Inc.Earnings Release Fact Sheet
(unaudited)Third quarter Fiscal 2017, Three months ended
January 27, 2017 compared to the corresponding period a year
ago: |
|
(in thousands, except
per share amounts) |
|
|
|
|
|
Basic EPS |
|
Diluted EPS |
|
Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
|
January 27,2017 |
|
|
January 22,2016 |
|
January 27,2017 |
|
January 22,2016 |
|
January 27,2017 |
|
January 22,2016 |
Operating
Income (Loss) as Reported |
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
$ |
17,121 |
|
|
|
$ |
11,424 |
|
|
|
|
|
|
|
|
|
Net interest
expense |
|
2,139 |
|
|
|
|
2,367 |
|
|
|
|
|
|
|
|
|
Income Before
Taxes from Continuing Operations |
|
14,982 |
|
|
|
|
9,057 |
|
|
|
|
|
|
|
|
|
Provision for income
taxes from continuing operations |
|
5,144 |
|
|
|
|
2,641 |
|
|
|
|
|
|
|
|
|
Net Income as
reported from continuing operations |
|
9,838 |
|
|
|
|
6,416 |
|
|
$ |
0.50 |
|
|
$ |
0.31 |
|
|
$ |
0.49 |
|
|
$ |
0.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) / Income before
taxes from discontinued operations |
|
(4,567 |
) |
|
|
|
6,636 |
|
|
|
|
|
|
|
|
|
(Benefit) / Provision
for income taxes from discontinued operations |
|
(2,950 |
) |
|
|
|
121 |
|
|
|
|
|
|
|
|
|
(Loss) / Income
from discontinued operations as reported |
|
(1,617 |
) |
|
|
|
6,515 |
|
|
$ |
(0.09 |
) |
|
$ |
0.31 |
|
|
$ |
(0.08 |
) |
|
$ |
0.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income as
reported |
|
8,221 |
|
|
|
|
12,931 |
|
|
$ |
0.41 |
|
|
$ |
0.62 |
|
|
$ |
0.41 |
|
|
$ |
0.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
Continuing Operations |
|
|
|
|
|
|
|
|
|
|
|
|
Severance/Restructuring |
|
2,559 |
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
Legal and professional
fees |
|
571 |
|
|
|
|
|
|
|
|
|
|
|
|
Reserve on note
receivable |
|
(744 |
) |
|
|
|
— |
|
|
|
|
|
|
|
|
|
Total
Adjustments to Continuing Operations |
|
2,386 |
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
Discontinued Operations |
|
|
|
|
|
|
|
|
|
|
|
|
Legal and professional
fees |
|
5,221 |
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
Termination
benefits |
|
1,842 |
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
Total
Adjustments to Discontinued Operations |
|
7,063 |
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Operating Income from Continuing Operations |
|
19,507 |
|
|
|
|
11,424 |
|
|
|
|
|
|
|
|
|
Non-GAAP net interest
expense |
|
2,139 |
|
|
|
|
2,367 |
|
|
|
|
|
|
|
|
|
Non-GAAP income before
taxes from continuing operations |
|
17,368 |
|
|
|
|
9,057 |
|
|
|
|
|
|
|
|
|
Adjustments to tax
expense from continuing operations |
|
1,400 |
|
|
|
|
31 |
|
|
|
|
|
|
|
|
|
Non-GAAP provision for
income taxes from continuing operations |
|
6,544 |
|
|
|
|
2,672 |
|
|
|
|
|
|
|
|
|
Non-GAAP net
income from continuing operations |
|
10,824 |
|
|
|
|
6,385 |
|
|
$ |
0.55 |
|
|
$ |
0.31 |
|
|
$ |
0.54 |
|
|
$ |
0.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income
before taxes from discontinued operations |
|
2,496 |
|
|
|
|
6,636 |
|
|
|
|
|
|
|
|
|
Adjustments to tax
expense from discontinued operations |
|
1,273 |
|
|
|
|
(31 |
) |
|
|
|
|
|
|
|
|
Non-GAAP (benefit)
provision for income taxes from discontinued operations |
|
(1,677 |
) |
|
|
|
90 |
|
|
|
|
|
|
|
|
|
Non-GAAP net
income from discontinued operations |
|
4,173 |
|
|
|
|
6,546 |
|
|
$ |
0.21 |
|
|
$ |
0.31 |
|
|
$ |
0.21 |
|
|
$ |
0.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income |
$ |
14,997 |
|
|
|
$ |
12,931 |
|
|
$ |
0.76 |
|
|
$ |
0.62 |
|
|
$ |
0.75 |
|
|
$ |
0.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding |
|
|
|
|
|
19,847 |
|
|
20,692 |
|
|
20,068 |
|
|
20,803 |
|
|
Third quarter Fiscal 2017, Three months ended January 27,
2017 compared to the corresponding period a year ago: |
|
(in thousands) |
|
|
|
|
Three Months Ended |
|
|
January 27, 2017 |
|
|
% ofSales |
|
|
January 22, 2016 |
|
|
% ofSales |
Operating Income from
Continuing Operations, as reported |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales |
|
$ |
112,820 |
|
|
|
|
|
|
$ |
107,897 |
|
|
|
|
Cost of
sales |
|
48,933 |
|
|
|
43.4 |
% |
|
|
52,326 |
|
|
|
48.5 |
% |
Operating
wage and fringe benefit expenses |
|
11,150 |
|
|
|
9.9 |
% |
|
|
10,822 |
|
|
|
10.0 |
% |
Other
operating expenses |
|
15,826 |
|
|
|
14.0 |
% |
|
|
12,846 |
|
|
|
11.9 |
% |
Selling,
general and administrative expenses |
|
14,201 |
|
|
|
12.6 |
% |
|
|
15,453 |
|
|
|
14.3 |
% |
Depreciation and amortization expense |
|
6,333 |
|
|
|
5.6 |
% |
|
|
5,026 |
|
|
|
4.7 |
% |
Impairments |
|
(744 |
) |
|
|
(0.7 |
)% |
|
|
— |
|
|
|
— |
% |
Total
operating income as reported |
|
17,121 |
|
|
|
15.2 |
% |
|
|
11,424 |
|
|
|
10.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjustments to
Continuing Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales |
|
— |
|
|
|
|
|
|
— |
|
|
|
|
Cost of
sales |
|
— |
|
|
|
|
|
|
— |
|
|
|
|
Operating
wage and fringe benefit expenses |
|
— |
|
|
|
|
|
|
— |
|
|
|
|
Other
operating expenses |
|
— |
|
|
|
|
|
|
— |
|
|
|
|
Selling,
general and administrative expenses |
|
(3,130 |
) |
|
|
|
|
|
— |
|
|
|
|
Depreciation and amortization expense |
|
— |
|
|
|
|
|
|
— |
|
|
|
|
Impairments |
|
744 |
|
|
|
|
|
|
— |
|
|
|
|
Total
Adjustments |
|
2,386 |
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating
Income from Continuing Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales |
|
112,820 |
|
|
|
|
|
|
107,897 |
|
|
|
|
Cost of
sales |
|
48,933 |
|
|
|
43.4 |
% |
|
|
52,326 |
|
|
|
48.5 |
% |
Operating
wage and fringe benefit expenses |
|
11,150 |
|
|
|
9.9 |
% |
|
|
10,822 |
|
|
|
10.0 |
% |
Other
operating expenses |
|
15,826 |
|
|
|
14.0 |
% |
|
|
12,846 |
|
|
|
11.9 |
% |
Selling,
general and administrative expenses |
|
11,071 |
|
|
|
9.8 |
% |
|
|
15,453 |
|
|
|
14.3 |
% |
Depreciation and amortization expense |
|
6,333 |
|
|
|
5.6 |
% |
|
|
5,026 |
|
|
|
4.7 |
% |
Impairments |
|
— |
|
|
|
— |
% |
|
|
— |
|
|
|
— |
% |
Total
non-GAAP operating income |
|
$ |
19,507 |
|
|
|
17.3 |
% |
|
|
$ |
11,424 |
|
|
|
10.6 |
% |
|
Bob Evans Farms, Inc.Earnings Release Fact Sheet
(unaudited)Third quarter Fiscal 2016, nine months ended
January 27, 2017, compared to the corresponding period a year
ago: |
|
(in thousands, except
per share amounts) |
|
|
|
|
|
Basic EPS |
|
|
Diluted EPS |
|
Nine Months Ended |
|
Nine Months Ended |
|
|
Nine Months Ended |
|
January 27,2017 |
|
|
January 22,2016 |
|
January 27,2017 |
|
|
January 22,2016 |
|
|
January 27,2017 |
|
|
January 22,2016 |
Operating
Income (Loss) as Reported |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
$ |
20,618 |
|
|
|
$ |
22,741 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
expense |
4,961 |
|
|
|
7,856 |
|
|
|
|
|
|
|
|
|
|
|
|
Income Before
Taxes from Continuing Operations |
15,657 |
|
|
|
14,885 |
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes from continuing operations |
5,377 |
|
|
|
4,608 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income as
reported from continuing operations |
10,280 |
|
|
|
10,277 |
|
|
$ |
0.52 |
|
|
|
$ |
0.47 |
|
|
|
$ |
0.51 |
|
|
|
$ |
0.47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes
from discontinued operations |
6,290 |
|
|
|
15,016 |
|
|
|
|
|
|
|
|
|
|
|
|
(Benefit) / Provision
for Income taxes from discontinued operations |
(1,033 |
) |
|
|
1,651 |
|
|
|
|
|
|
|
|
|
|
|
|
Income from
discontinued operations as reported |
7,323 |
|
|
|
13,365 |
|
|
$ |
0.37 |
|
|
|
$ |
0.61 |
|
|
|
$ |
0.37 |
|
|
|
$ |
0.61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income as
reported |
17,603 |
|
|
|
23,642 |
|
|
$ |
0.89 |
|
|
|
$ |
1.08 |
|
|
|
$ |
0.88 |
|
|
|
$ |
1.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
Continuing Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance/Restructuring |
2,728 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
Reserve on note
receivable |
15,256 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
Legal and professional
fees |
571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on sale of
assets |
— |
|
|
|
3,606 |
|
|
|
|
|
|
|
|
|
|
|
|
Accretion income on
note receivable |
(1,133 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
Write off of
unamortized debt costs |
— |
|
|
|
480 |
|
|
|
|
|
|
|
|
|
|
|
|
Total
Adjustments to Continuing Operations |
17,422 |
|
|
|
4,086 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
Discontinued Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legal and professional
fees |
5,532 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Termination
benefits |
1,842 |
|
|
|
318 |
|
|
|
|
|
|
|
|
|
|
|
|
Store closure
costs |
807 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
Litigation settlement
costs |
(278 |
) |
|
|
10,500 |
|
|
|
|
|
|
|
|
|
|
|
|
Total
Adjustments to Discontinued Operations |
7,903 |
|
|
|
10,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Operating Income from Continuing Operations |
39,173 |
|
|
|
26,347 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net interest
expense |
6,094 |
|
|
|
7,376 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income before
taxes from continuing operations |
33,079 |
|
|
|
18,971 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to tax
expense from continuing operations |
6,335 |
|
|
|
1,501 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP provision for
income taxes from continuing operations |
11,712 |
|
|
|
6,109 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income from continuing operations |
21,367 |
|
|
|
12,862 |
|
|
$ |
1.08 |
|
|
|
$ |
0.59 |
|
|
|
$ |
1.07 |
|
|
|
$ |
0.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income
before taxes from discontinued operations |
14,193 |
|
|
|
25,834 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to tax
expense from discontinued operations |
859 |
|
|
|
3,211 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP (benefit)
provision for income taxes from discontinuing operations |
(174 |
) |
|
|
4,862 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income from discontinued operations |
14,367 |
|
|
|
20,972 |
|
|
$ |
0.72 |
|
|
|
$ |
0.96 |
|
|
|
$ |
0.71 |
|
|
|
$ |
0.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income |
$ |
35,734 |
|
|
|
$ |
33,834 |
|
|
$ |
1.80 |
|
|
|
$ |
1.55 |
|
|
|
$ |
1.78 |
|
|
|
$ |
1.54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding |
|
|
|
|
|
19,836 |
|
|
|
21,845 |
|
|
|
20,055 |
|
|
|
21,989 |
|
|
Third quarter Fiscal 2016, nine months ended January 27,
2017, compared to the corresponding period a year
ago: |
|
(in thousands) |
|
|
Nine Months Ended |
|
January 27, 2017 |
|
|
% ofSales |
|
|
January 22, 2016 |
|
|
% ofSales |
Operating income from
Continuing Operations, as reported |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales |
$ |
294,919 |
|
|
|
|
|
|
$ |
285,221 |
|
|
|
|
Cost of
sales |
127,171 |
|
|
|
43.1 |
% |
|
|
128,164 |
|
|
|
44.9 |
% |
Operating
wage and fringe benefit expenses |
31,132 |
|
|
|
10.6 |
% |
|
|
31,198 |
|
|
|
10.9 |
% |
Other
operating expenses |
44,372 |
|
|
|
15.0 |
% |
|
|
37,640 |
|
|
|
13.2 |
% |
Selling,
general and administrative expenses |
39,179 |
|
|
|
13.3 |
% |
|
|
49,512 |
|
|
|
17.4 |
% |
Depreciation and amortization expense |
17,191 |
|
|
|
5.8 |
% |
|
|
15,966 |
|
|
|
5.6 |
% |
Impairments |
15,256 |
|
|
|
5.2 |
% |
|
|
— |
|
|
|
— |
% |
Total as
reported |
|
20,618 |
|
|
|
7.0 |
% |
|
|
|
22,741 |
|
|
|
8.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjustments to
Continuing Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales |
|
— |
|
|
|
|
|
|
— |
|
|
|
|
Cost of
sales |
— |
|
|
|
|
|
|
— |
|
|
|
|
Operating
wage and fringe benefit expenses |
— |
|
|
|
|
|
|
— |
|
|
|
|
Other
operating expenses |
— |
|
|
|
|
|
|
— |
|
|
|
|
Selling,
general and administrative expenses |
(3,299 |
) |
|
|
|
|
|
(3,606 |
) |
|
|
|
Depreciation and amortization expense |
— |
|
|
|
|
|
— |
|
|
|
|
Impairments |
(15,256 |
) |
|
|
|
|
|
— |
|
|
|
|
Total
Adjustments |
|
18,555 |
|
|
|
|
|
|
|
3,606 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating
Income from Continuing Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales |
|
294,919 |
|
|
|
|
|
|
|
285,221 |
|
|
|
|
Cost of
sales |
|
127,171 |
|
|
|
43.1 |
% |
|
|
|
128,164 |
|
|
|
44.9 |
% |
Operating
wage and fringe benefit expenses |
|
31,132 |
|
|
|
10.6 |
% |
|
|
|
31,198 |
|
|
|
10.9 |
% |
Other
operating expenses |
|
44,372 |
|
|
|
15.0 |
% |
|
|
|
37,640 |
|
|
|
13.2 |
% |
Selling,
general and administrative expenses |
|
35,880 |
|
|
|
12.2 |
% |
|
|
|
45,906 |
|
|
|
16.2 |
% |
Depreciation and amortization expense |
|
17,191 |
|
|
|
5.8 |
% |
|
|
|
15,966 |
|
|
|
5.6 |
% |
Impairments |
|
— |
|
|
|
— |
% |
|
|
|
— |
|
|
|
— |
% |
Total
non-GAAP operating income |
$ |
39,173 |
|
|
|
13.3 |
% |
|
|
$ |
26,347 |
|
|
|
9.2 |
% |
|
Non-GAAP Financial Measures
Our non-GAAP measures are used by analysts, investors and other
interested parties to compare our performance with the performance
of other companies that report similar non-GAAP measures. We
believe these non-GAAP measures provide meaningful supplemental
information regarding financial performance by excluding certain
expenses and benefits that may not be indicative of core business
operating results. We believe the non-GAAP measures, when viewed in
conjunction with U.S. GAAP results and the accompanying
reconciliations, enhance the comparability of results against prior
periods and allow for greater transparency of financial results and
business outlook. In addition, we use non-GAAP data internally to
assess performance and facilitate management's internal comparison
of our financial performance to that of prior periods, as well as
trend analysis for budgeting and planning purposes. The
presentation of our non-GAAP measures is not intended to be
considered in isolation or as a substitute for, or superior to, the
financial information prepared and presented in accordance with
U.S. GAAP. Furthermore, our non-GAAP measures may not be comparable
to similarly titled measures reported by other companies and may
have limitations as an analytical tool.
Reconciliations of the Company’s projected adjusted diluted EPS
for fiscal year 2017 and the most directly comparable GAAP
financial measures are omitted from this release because the
Company is unable to provide such reconciliations without
unreasonable effort. In particular, in light of the pending
transactions referenced in this release, management is not able to
calculate certain amounts necessary to provide corresponding
forecasted financial measures calculated in accordance with GAAP
and related reconciliations at this time as the Company cannot
reliably forecast the timing and magnitude of the gain on the sale
of BER, the amount of non-cash costs associated with acceleration
of stock based compensation awards and other restructuring,
impairment and acquisition and divestiture related costs that may
occur, and the income tax effects of these items.
|
Consolidated Statements of Net Income |
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
January 27,2017 |
|
|
January 22,2016 |
|
|
January 27,2017 |
|
|
January 22,2016 |
Net
Sales |
|
$ |
112,820 |
|
|
|
$ |
107,897 |
|
|
|
$ |
294,919 |
|
|
|
$ |
285,221 |
|
Cost of
sales |
|
48,933 |
|
|
|
52,326 |
|
|
|
127,171 |
|
|
|
128,164 |
|
Operating
wage and fringe benefit expenses |
|
11,150 |
|
|
|
10,822 |
|
|
|
31,132 |
|
|
|
31,198 |
|
Other
operating expenses |
|
15,826 |
|
|
|
12,846 |
|
|
|
44,372 |
|
|
|
37,640 |
|
Selling,
general and administrative expenses |
|
14,201 |
|
|
|
15,453 |
|
|
|
39,179 |
|
|
|
49,512 |
|
Depreciation and amortization expense |
|
6,333 |
|
|
|
5,026 |
|
|
|
17,191 |
|
|
|
15,966 |
|
Impairments |
|
(744 |
) |
|
|
— |
|
|
|
15,256 |
|
|
|
— |
|
Operating
Income |
|
17,121 |
|
|
|
11,424 |
|
|
|
20,618 |
|
|
|
22,741 |
|
Net
interest expense |
|
2,139 |
|
|
|
2,367 |
|
|
|
4,961 |
|
|
|
7,856 |
|
Income from
Continuing Operations Before Income Taxes |
|
14,982 |
|
|
|
9,057 |
|
|
|
15,657 |
|
|
|
14,885 |
|
Provision
for income taxes |
|
5,144 |
|
|
|
2,641 |
|
|
|
5,377 |
|
|
|
4,608 |
|
Income from
Continuing Operations |
|
9,838 |
|
|
|
6,416 |
|
|
|
10,280 |
|
|
|
10,277 |
|
(Loss) Income
from Discontinued Operations, net of Income Taxes |
|
(1,617 |
) |
|
|
6,515 |
|
|
|
7,323 |
|
|
|
13,365 |
|
Net
Income |
|
$ |
8,221 |
|
|
|
$ |
12,931 |
|
|
|
$ |
17,603 |
|
|
|
$ |
23,642 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share — Income from Continuing Operations |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.50 |
|
|
|
$ |
0.31 |
|
|
|
$ |
0.52 |
|
|
|
$ |
0.47 |
|
Diluted |
|
$ |
0.49 |
|
|
|
$ |
0.31 |
|
|
|
$ |
0.51 |
|
|
|
$ |
0.47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share — (Loss) Income from Discontinued Operations |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.09 |
) |
|
|
$ |
0.31 |
|
|
|
$ |
0.37 |
|
|
|
$ |
0.61 |
|
Diluted |
|
$ |
(0.08 |
) |
|
|
$ |
0.31 |
|
|
|
$ |
0.37 |
|
|
|
$ |
0.61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share — Net Income |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.41 |
|
|
|
$ |
0.62 |
|
|
|
$ |
0.89 |
|
|
|
$ |
1.08 |
|
Diluted |
|
$ |
0.41 |
|
|
|
$ |
0.62 |
|
|
|
$ |
0.88 |
|
|
|
$ |
1.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Dividends
Paid Per Share |
|
$ |
0.34 |
|
|
|
$ |
0.34 |
|
|
|
$ |
1.02 |
|
|
|
$ |
0.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
19,847 |
|
|
|
20,692 |
|
|
|
19,836 |
|
|
|
21,845 |
|
Dilutive
shares |
|
221 |
|
|
|
111 |
|
|
|
219 |
|
|
|
144 |
|
Diluted |
|
20,068 |
|
|
|
20,803 |
|
|
|
20,055 |
|
|
|
21,989 |
|
|
Consolidated Balance Sheets |
|
|
Unaudited January 27, 2017 |
|
|
April 29, 2016 |
Assets |
Current
Assets |
|
|
|
|
Cash and
equivalents |
$ |
2,430 |
|
|
|
$ |
11,609 |
|
Accounts receivable,
net |
29,258 |
|
|
|
24,613 |
|
Inventories |
19,455 |
|
|
|
17,093 |
|
Federal and state
income taxes receivable |
9,338 |
|
|
|
— |
|
Prepaid expenses and
other current assets |
3,967 |
|
|
|
5,716 |
|
Current assets held for
sale |
499,943 |
|
|
|
48,707 |
|
Total Current Assets |
564,391 |
|
|
|
107,738 |
|
Property, plant
and equipment |
236,855 |
|
|
|
219,103 |
|
Less accumulated
depreciation |
103,505 |
|
|
|
89,851 |
|
Net Property, Plant and Equipment |
133,350 |
|
|
|
129,252 |
|
Other
Assets |
|
|
|
|
Deposits and other |
2,518 |
|
|
|
3,841 |
|
Notes receivable,
net |
— |
|
|
|
20,886 |
|
Rabbi trust assets |
21,540 |
|
|
|
20,662 |
|
Goodwill and other
intangible assets |
19,712 |
|
|
|
19,829 |
|
Non-current deferred
tax assets |
24,878 |
|
|
|
29,002 |
|
Non-current assets held
for sale |
— |
|
|
|
469,164 |
|
Total Other Assets |
68,648 |
|
|
|
563,384 |
|
Total
Assets |
$ |
766,389 |
|
|
|
$ |
800,374 |
|
Liabilities and Stockholders’
Equity |
Current
Liabilities |
|
|
|
|
Current portion of
long-term debt |
$ |
3,425 |
|
|
|
$ |
3,419 |
|
Accounts payable |
14,941 |
|
|
|
15,841 |
|
Accrued property, plant
and equipment purchases |
1,743 |
|
|
|
4,024 |
|
Accrued non-income
taxes |
11,040 |
|
|
|
14,474 |
|
Accrued wages and
related liabilities |
12,830 |
|
|
|
16,370 |
|
Self-insurance
reserves |
9,263 |
|
|
|
11,288 |
|
Current taxes
payable |
— |
|
|
|
9,473 |
|
Current reserve for
uncertain tax provision |
1,481 |
|
|
|
1,481 |
|
Other accrued
expenses |
15,566 |
|
|
|
13,280 |
|
Current liabilities
held for sale |
128,764 |
|
|
|
75,907 |
|
Total Current Liabilities |
199,053 |
|
|
|
165,557 |
|
Long-Term
Liabilities |
|
|
|
|
Deferred
compensation |
18,147 |
|
|
|
17,761 |
|
Reserve for uncertain
tax positions |
2,392 |
|
|
|
2,752 |
|
Other non-current
liabilities |
921 |
|
|
|
377 |
|
Long-term deferred
gain |
2,252 |
|
|
|
2,432 |
|
Credit facility
borrowings and other long-term debt |
326,626 |
|
|
|
335,638 |
|
Non-current liabilities
held for sale |
— |
|
|
|
59,413 |
|
Total Long-Term Liabilities |
350,338 |
|
|
|
418,373 |
|
Stockholders’
Equity |
|
|
|
|
Common stock, $.01 par
value; authorized 100,000 shares; issued 42,638 shares at January
27, 2017, and April 29, 2016 |
426 |
|
|
|
426 |
|
Capital in excess of
par value |
248,144 |
|
|
|
244,304 |
|
Retained earnings |
829,356 |
|
|
|
832,323 |
|
Treasury stock, 22,869
shares at January 27, 2017, and 22,881 shares at April 29,
2016, at cost |
(860,928 |
) |
|
|
(860,609 |
) |
Total
Stockholders’ Equity |
216,998 |
|
|
|
216,444 |
|
Total
Liabilities and Stockholders' Equity |
$ |
766,389 |
|
|
|
$ |
800,374 |
|
|
Consolidated Statements of Cash Flows |
|
|
Nine Months Ended |
|
January 27, 2017 |
|
|
January 22, 2016 |
Operating
activities: |
|
|
|
|
Net
income |
$ |
17,603 |
|
|
|
$ |
23,642 |
|
Income
from discontinued operations |
7,323 |
|
|
|
13,365 |
|
Income from
continuing operations |
10,280 |
|
|
|
10,277 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
Depreciation and amortization |
17,191 |
|
|
|
15,966 |
|
Impairments |
15,256 |
|
|
|
— |
|
Loss on
disposal of fixed assets |
34 |
|
|
|
3,439 |
|
(Gain)
Loss on rabbi trust assets |
(878 |
) |
|
|
1,768 |
|
Loss
(Gain) on deferred compensation |
1,433 |
|
|
|
(1,146 |
) |
Share-based compensation |
3,151 |
|
|
|
2,235 |
|
Accretion
on long-term note receivable |
(1,133 |
) |
|
|
(1,539 |
) |
Deferred
income taxes |
4,124 |
|
|
|
(136 |
) |
Amortization of deferred financing costs |
1,033 |
|
|
|
1,762 |
|
Cash
provided by (used for) assets and liabilities: |
|
|
|
|
Accounts
receivable |
(4,645 |
) |
|
|
(3,405 |
) |
Inventories |
(2,362 |
) |
|
|
2,532 |
|
Prepaid
expenses and other current assets |
1,749 |
|
|
|
1,162 |
|
Accounts
payable |
(900 |
) |
|
|
(970 |
) |
Federal
and state income taxes |
(19,171 |
) |
|
|
19,119 |
|
Accrued
wages and related liabilities |
(3,540 |
) |
|
|
2,956 |
|
Self-insurance |
(2,025 |
) |
|
|
2,312 |
|
Accrued
non-income taxes |
(3,434 |
) |
|
|
2,005 |
|
Other
assets and liabilities |
8,330 |
|
|
|
4,395 |
|
Net cash
provided by operating activities |
24,493 |
|
|
|
62,732 |
|
Investing
activities: |
|
|
|
|
Purchase
of property, plant and equipment |
(23,669 |
) |
|
|
(23,989 |
) |
Proceeds
from sale of property, plant and equipment |
95 |
|
|
|
50,539 |
|
Liquidation of rabbi trust assets |
— |
|
|
|
5,245 |
|
Deposits
and other |
371 |
|
|
|
(566 |
) |
Net cash (used
in) provided by investing activities |
(23,203 |
) |
|
|
31,229 |
|
Financing
activities: |
|
|
|
|
Cash
dividends paid |
(20,182 |
) |
|
|
(21,132 |
) |
Gross
proceeds from credit facility borrowings and other long-term
debt |
277,894 |
|
|
|
506,626 |
|
Gross
repayments of credit facility borrowings and other long-term
debt |
(286,964 |
) |
|
|
(461,668 |
) |
Payments
of debt issuance costs |
— |
|
|
|
(2,517 |
) |
Purchase
of treasury stock |
— |
|
|
|
(156,654 |
) |
Proceeds
from share-based compensation |
— |
|
|
|
214 |
|
Cash paid
for taxes on share-based compensation |
(702 |
) |
|
|
(1,177 |
) |
Excess
tax benefits from share-based compensation |
(1,688 |
) |
|
|
84 |
|
Net cash used
in financing activities |
(31,642 |
) |
|
|
(136,224 |
) |
Net cash used
in operations |
(30,352 |
) |
|
|
(42,263 |
) |
Net cash provided by
operating activities of discontinued operations |
36,565 |
|
|
|
54,781 |
|
Net cash used in
investing activities of discontinued operations |
(15,392 |
) |
|
|
(11,165 |
) |
Net cash
provided by discontinued operations |
21,173 |
|
|
|
43,616 |
|
Cash and
equivalents at the beginning of the period |
11,609 |
|
|
|
4,994 |
|
Cash and
equivalents at the end of the period |
$ |
2,430 |
|
|
|
$ |
6,347 |
|
|
Consolidated Results for Continuing and Discontinued
Operations |
|
(in
thousands except earnings per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
GAAP
Consolidated Results |
|
|
January 27,2017 |
|
|
January 22,2016 |
|
|
%Change |
|
|
January 27,2017 |
|
|
January 22,2016 |
|
|
%Change |
Net Sales from
Continuing Operations |
|
|
$ |
112,820 |
|
|
|
$ |
107,897 |
|
|
|
4.6 |
% |
|
|
$ |
294,919 |
|
|
|
$ |
285,221 |
|
|
|
3.4 |
% |
Net Sales
from Discontinued Operations |
|
|
223,126 |
|
|
|
238,608 |
|
|
|
(6.5 |
)% |
|
|
663,307 |
|
|
|
708,018 |
|
|
|
(6.3 |
)% |
Total Net Sales |
|
|
335,946 |
|
|
|
346,505 |
|
|
|
(3.0 |
)% |
|
|
958,226 |
|
|
|
993,239 |
|
|
|
(3.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Margin from
Continuing Operations |
|
|
15.2 |
% |
|
|
10.6 |
% |
|
|
460 bps |
|
|
7.0 |
% |
|
|
8.0 |
% |
|
|
(100 bps) |
Operating Margin from
Discontinued Operations |
|
|
(1.9 |
)% |
|
|
2.8 |
% |
|
|
(470 bps) |
|
|
1.1 |
% |
|
|
2.1 |
% |
|
|
(100 bps) |
Total Operating
Margin |
|
|
3.9 |
% |
|
|
5.2 |
% |
|
|
(130 bps) |
|
|
2.9 |
% |
|
|
3.8 |
% |
|
|
(90 bps) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS from
Continuing Operations |
|
|
$ |
0.49 |
|
|
|
$ |
0.31 |
|
|
|
58.1 |
% |
|
|
$ |
0.51 |
|
|
|
$ |
0.47 |
|
|
|
8.5 |
% |
Diluted
EPS from Discontinued Operations |
|
|
$ |
(0.08 |
) |
|
|
$ |
0.31 |
|
|
|
(125.8 |
)% |
|
|
$ |
0.37 |
|
|
|
$ |
0.61 |
|
|
|
(39.3 |
)% |
Diluted EPS |
|
|
$ |
0.41 |
|
|
|
$ |
0.62 |
|
|
|
(33.9 |
)% |
|
|
$ |
0.88 |
|
|
|
$ |
1.08 |
|
|
|
(18.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments |
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
Net Sales from
Continuing Operations |
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
Net Sales
from Discontinued Operations |
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
Total Net Sales |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Margin from
Continuing Operations |
|
|
2.1 |
% |
|
|
— |
% |
|
|
— |
|
|
|
6.3 |
% |
|
|
1.3 |
% |
|
|
— |
|
Operating Margin from
Discontinued Operations |
|
|
3.2 |
% |
|
|
— |
% |
|
|
— |
|
|
|
1.2 |
% |
|
|
1.5 |
% |
|
|
— |
|
Total Operating
Margin |
|
|
2.8 |
% |
|
|
— |
% |
|
|
— |
|
|
|
2.8 |
% |
|
|
1.5 |
% |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS from
Continuing Operations |
|
|
$ |
0.05 |
|
|
|
$ |
— |
|
|
|
— |
|
|
|
$ |
0.56 |
|
|
|
$ |
0.11 |
|
|
|
— |
|
Diluted
EPS from Discontinued Operations |
|
|
$ |
0.29 |
|
|
|
$ |
— |
|
|
|
— |
|
|
|
$ |
0.34 |
|
|
|
$ |
0.35 |
|
|
|
— |
|
Diluted EPS |
|
|
$ |
0.34 |
|
|
|
$ |
— |
|
|
|
— |
|
|
|
$ |
0.90 |
|
|
|
$ |
0.46 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Consolidated Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales from
Continuing Operations |
|
|
$ |
112,820 |
|
|
|
$ |
107,897 |
|
|
|
4.6 |
% |
|
|
$ |
294,919 |
|
|
|
$ |
285,221 |
|
|
|
3.4 |
% |
Net Sales
from Discontinued Operations |
|
|
223,126 |
|
|
|
238,608 |
|
|
|
(6.5 |
)% |
|
|
663,307 |
|
|
|
708,018 |
|
|
|
(6.3 |
)% |
Total Net Sales |
|
|
335,946 |
|
|
|
346,505 |
|
|
|
(3.0 |
)% |
|
|
958,226 |
|
|
|
993,239 |
|
|
|
(3.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Margin from
Continuing Operations |
|
|
17.3 |
% |
|
|
10.6 |
% |
|
|
670 bps |
|
|
13.3 |
% |
|
|
9.2 |
% |
|
|
410 bps |
Operating Margin from
Discontinued Operations |
|
|
1.3 |
% |
|
|
2.8 |
% |
|
|
(150 bps) |
|
|
2.3 |
% |
|
|
3.6 |
% |
|
|
(130 bps) |
Total Operating
Margin |
|
|
6.7 |
% |
|
|
5.2 |
% |
|
|
150 bps |
|
|
5.7 |
% |
|
|
5.3 |
% |
|
|
40 bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS from
Continuing Operations |
|
|
$ |
0.54 |
|
|
|
$ |
0.31 |
|
|
|
74.2 |
% |
|
|
$ |
1.07 |
|
|
|
$ |
0.58 |
|
|
|
84.5 |
% |
Diluted
EPS from Discontinued Operations |
|
|
$ |
0.21 |
|
|
|
$ |
0.31 |
|
|
|
(32.3 |
)% |
|
|
$ |
0.71 |
|
|
|
$ |
0.96 |
|
|
|
(26.0 |
)% |
Diluted EPS |
|
|
$ |
0.75 |
|
|
|
$ |
0.62 |
|
|
|
21.0 |
% |
|
|
$ |
1.78 |
|
|
|
$ |
1.54 |
|
|
|
15.6 |
% |
BEF
Foods total pounds sold, by category |
|
|
|
|
|
|
|
|
|
Fiscal
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Category |
|
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
|
YTD |
Sides |
|
|
51.4 |
% |
|
|
52.5 |
% |
|
|
52.5 |
% |
|
|
|
|
|
52.2 |
% |
Sausage |
|
|
21.2 |
% |
|
|
21.9 |
% |
|
|
24.9 |
% |
|
|
|
|
|
22.9 |
% |
Food Service -
External |
|
|
11.6 |
% |
|
|
10.7 |
% |
|
|
10.1 |
% |
|
|
|
|
|
10.7 |
% |
Food Service - Sales to
discontinued operations |
|
|
8.3 |
% |
|
|
9.0 |
% |
|
|
7.7 |
% |
|
|
|
|
|
8.3 |
% |
Frozen |
|
|
3.9 |
% |
|
|
3.4 |
% |
|
|
2.7 |
% |
|
|
|
|
|
3.3 |
% |
Other |
|
|
3.6 |
% |
|
|
2.5 |
% |
|
|
2.1 |
% |
|
|
|
|
|
2.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Category |
|
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
|
FY 2016 |
Sides |
|
|
49.6 |
% |
|
|
50.7 |
% |
|
|
50.9 |
% |
|
|
51.4 |
% |
|
|
50.7 |
% |
Sausage |
|
|
22.0 |
% |
|
|
22.3 |
% |
|
|
26.6 |
% |
|
|
21.7 |
% |
|
|
23.3 |
% |
Food Service -
External |
|
|
14.1 |
% |
|
|
12.5 |
% |
|
|
10.4 |
% |
|
|
11.4 |
% |
|
|
11.9 |
% |
Food Service - Sales to
discontinued operations |
|
|
6.2 |
% |
|
|
6.6 |
% |
|
|
6.0 |
% |
|
|
8.1 |
% |
|
|
6.7 |
% |
Frozen |
|
|
4.6 |
% |
|
|
4.5 |
% |
|
|
3.1 |
% |
|
|
3.9 |
% |
|
|
4.0 |
% |
Other |
|
|
3.5 |
% |
|
|
3.4 |
% |
|
|
3.0 |
% |
|
|
3.5 |
% |
|
|
3.4 |
% |
Contact:
Scott C. Taggart
Vice President, Investor Relations
(614) 492-4954
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