Reports Record Net Revenue Quarter and
Strong Gross Profit Growth
Hostess Brands, Inc. (NASDAQ: TWNK) (NASDAQ: TWNKW) (the
“Company”), today reported its financial results for the three and
six months ended June 30, 2019.
Business Highlights for the Second Quarter 2019 as Compared
to the Prior Year Period
- Net revenue increased $25.2 million, or 11.7%, to $241.1
million due to higher volume of both core and new Hostess® branded
products driven by distribution and merchandising support as well
as realization of price increases.
- Total Company point of sale in tracked channels increased 6.3%
and market share of 19.0% was up 81 basis points.
- Gross profit increased $16.6 million, or 24.8%, to $83.5
million due to higher sales volume and pricing actions as well as
continued operating efficiencies.
- Net income was $16.7 million, compared to $24.6 million, or
diluted earnings per share of $0.10 per share. The decline was
primarily due to discrete income tax adjustments of $7.8
million.
- Adjusted net income increased $3.8 million or 18.9% to $24.1
million, representing $0.17 adjusted earnings per share.
- Adjusted EBITDA increased $7.5 million, or 15.7%, to $55.1
million, or 22.9% of net revenue, compared to $47.6 million, or
22.1% of net revenue.
- Cash and cash equivalents were $189.3 million as of June 30,
2019 with a leverage ratio of 4.0x, both driven by operating cash
flows of $74.1 million for the six months ended June 30, 2019.
Despite Reduction for the Anticipated Sale of In-Store Bakery
Operations ("ISB"), the Company Reiterates 2019 Net Revenue and
Adjusted EBITDA Outlook
- The Company expects continued organic revenue growth well above
the Sweet Baked Goods (“SBG”) category in 2019 driven by Hostess®
branded core and new product innovation due to expanded
distribution and improved merchandising execution as well as
benefits from increased pricing. This will be partially offset by
reduced revenue from the anticipated disposition of ISB in the
third quarter of 2019.
- The Company expects full year 2019 adjusted EBITDA of $200
million to $210 million, an increase of 7% to 13% over 2018,
primarily driven by revenue growth and achievement of operational
efficiencies, partially offset by the anticipated divestiture of
ISB in the third quarter of 2019.
- The Company has improved its expected leverage ratio estimate
to 3.2x to 3.4x at the end of 2019, driven by strong operating cash
flows and the anticipated cash received from the divestiture of
ISB.
“The continued execution against our pillars for growth are
evidenced this quarter by meaningful revenue growth, increased
market share and improvement in our industry-leading
profitability,” commented Andy Callahan, President and Chief
Executive Officer. “The strength of the Hostess® brand and our
investments in our fundamental capabilities have helped us achieve
broad-based success across channels. We will continue to focus on
execution in the second half of 2019 as we build upon our strong
foundation for sustainable growth and shareholder value
creation.”
1This press release contains certain non-GAAP financial
measures, including adjusted gross profit, adjusted gross margin,
adjusted EBITDA, adjusted EBITDA margin, adjusted net income,
adjusted net income attributed to Class A stockholders and adjusted
earnings per share (“Adjusted EPS”). Please refer to the schedules
in the press release for reconciliations of non-GAAP financial
measures to the comparable GAAP measure. Unless otherwise stated,
all comparisons of financial measures in this press release are to
the second quarter of 2018. All measures of market performance
contained in this press release, including point of sale and market
share, include all Company branded products within the SBG category
as reported by Nielsen but do not include other products sold
outside of the SBG category. All market data in this press release
reflect the restatement of convenience channel data executed by
Nielsen for the 13-week period ended June 29, 2019. The Company's
leverage ratio is net debt (total long-term debt less lease
obligations, unamortized debt premiums and cash and cash
equivalents) divided by adjusted EBITDA for the trailing
twelve-month period.
Second Quarter 2019 Compared to Second Quarter 2018
Net revenue was $241.1 million, an increase of 11.7%, or $25.2
million, compared to $215.8 million. The net revenue growth was
primarily from increased sales of Hostess® branded products driven
by higher volume of both core products and new Hostess® branded
breakfast products as distribution and merchandising support
improved in multiple sales channels. Dolly Madison® branded
products also provided revenue growth as the Company leveraged the
acquired Cloverhill customer relationships. Net revenue also
benefited from increased pricing implemented in the fourth quarter
of 2018.
Gross profit was $83.5 million, or 34.6% of net revenue,
compared to $66.9 million, or 31.0% of net revenue. Adjusted gross
profit was $83.5 million, or 34.6% of net revenue, a $14.2 million
increase as compared to $69.3 million, or 32.1% of net revenue, in
the prior year period. Pricing actions and increases in sales
volume partially offset the impact of inflationary pressures on
ingredient, labor and packaging costs. The Company also benefited
from continued operational cost efficiencies.
Operating costs and expenses were $46.6 million, or 19.3% of net
revenue, compared to $32.2 million, or 14.9% of net revenue. These
costs increased due to higher incentive compensation and additional
corporate expenses incurred in connection with the relocation of
the Company's primary distribution facility and category sales and
marketing functions. Additionally, there was a $1.3 million loss on
the remeasurement of the tax receivable agreement obligation in the
second quarter of 2019 as compared to a $1.8 million gain on
remeasurement in the prior year period driven by changes in
estimated future state rates.
The Company's effective tax rate was 35.2% compared to 0.8%. In
the second quarter of 2019, the Company recognized a discrete tax
expense of $2.8 million as compared to a discrete tax benefit of
$5.0 million recognized in the prior year period resulting from
revaluing deferred tax balances based on changes in its estimated
state apportionment factors and tax rates.
Net income was $16.7 million compared to $24.6 million. Net
income attributed to Class A stockholders was $11.5 million, or
$0.10 per diluted share, compared to $19.3 million, or $0.18 per
diluted share. The decline was primarily due to discrete income tax
adjustments of $7.8 million.
Adjusted net income was $24.1 million compared to $20.2 million.
Adjusted EPS was $0.17 per diluted share, compared to $0.14 per
share. Adjusted EBITDA was $55.1 million, or 22.9% of net revenue,
compared to $47.6 million, or 22.1% of net revenue.
Cash from operations for the six months ended June 30, 2019 was
$74.1 million compared to $81.2 million for the same period last
year. The decrease was attributable to the timing of customer
receipts as well as higher working capital needs to facilitate the
increased sales volume. Operating cash flow for the second quarter
of 2019 was $45.7 million, an increase of 6.5% from the prior year
period.
Sweet Baked Goods Segment: Net revenue was $229.3
million, an increase of $25.0 million, or 12.3%, compared to $204.2
million driven by additional volume and price increases. Gross
profit was $80.9 million, or 35.3% of net revenue, compared to
$64.4 million, or 31.5% of net revenue.
In-Store Bakery Segment: Net revenue was $11.8 million,
an increase of $0.2 million, or 1.5%, compared to $11.6 million.
The increase in net revenue was attributable to increased sales
volume. Gross profit was $2.5 million, or 21.4% of net revenue,
compared to gross profit of $2.5 million, or 21.5% of net
revenue.
Divestiture of ISB
As previously announced, the Company has entered into a
definitive agreement to sell ISB to Sara Lee Frozen Bakery for a
purchase price of $65.0 million in cash, subject to post-closing
adjustments. The transaction is expected to close during the third
quarter, subject to customary closing conditions. The Company
expects to use the net proceeds from the transaction to pursue a
range of potential strategic options, including reinvesting in its
business, de-leveraging its balance sheet, and pursuing potential
strategic acquisitions, while effectively managing its capital
structure.
New Corporate Headquarters and Research and Development
Center
The Company is opening a new consumer research center with a
lab, sensory test kitchen and focus group space within the
Company's new corporate headquarters building which is relocating
within the Kansas City metro area. This new research and
development center, which is anticipated to open during the first
quarter of 2020, will enhance the Company's in-house innovation
capabilities and expand capacity for new product research and
development.
Outlook
Despite the impacts of the anticipated divestiture of ISB, the
Company reiterated its net revenue and adjusted EBITDA guidance as
well as improved its leverage outlook for 2019 to reflect the
strong year-to-date financial results:
- Net revenue growth well above the SBG category;
- Adjusted EBITDA of $200 million to $210 million, an increase of
7% to 13% from 2018;
- Adjusted EPS of $0.57 to $0.62, an increase of 6% to 15% from
2018;
- The net expected increase in cash of $145 million to $155
million would result in a leverage ratio of 3.2x to 3.4x at the end
of 2019, absent any acquisitions or other strategic uses of cash,
compared to 4.5x at December 31, 2018;
- Cash provided by operations of $145 million to $155 million, a
reduction from previous expectation of $150 million to $160
million;
- Capital expenditures of approximately $30 million to $35
million;
- Income tax rate, excluding discrete items, of 21% to 22% giving
effect to the non-controlling interest and the related share
exchanges occurring in the second quarter. The Company expects to
pay minority shareholder distributions of $7.5 million to $8.5
million and corporate tax payments of $2.0 million to $3.0 million
in 2019.
The Company provides guidance only on a non-generally accepted
accounting principles (non-GAAP) basis and does not provide a
reconciliation of the Company's forward-looking financial
expectations to the most directly comparable GAAP financial measure
because of the inherent difficulty in forecasting and quantifying
certain amounts that are necessary for such reconciliation;
including adjustments that could be made for deferred taxes;
remeasurement of the tax receivable agreement, changes in
allocation to the non-controlling interest, transformation expenses
and other non-operating gains or losses reflected in the Company's
reconciliation of historic non-GAAP financial measures, the amount
of which could be material. Please refer to the Reconciliation of
Non-GAAP Financial Measures included in this press release for
further information about the use of these measures.
Conference Call and Webcast
The Company will host a conference call and webcast with an
accompanying presentation today, August 7, 2019 at 4:30 p.m. EDT to
discuss the results for the second quarter. Investors interested in
participating in the live call can dial 877-451-6152 from the U.S.
and 201-389-0879 internationally. A telephone replay will be
available approximately two hours after the call concludes through
August 21, 2019, by dialing 844-512-2921 from the U.S., or
412-317-6671 from international locations, and entering
confirmation code 13692886. The simultaneous, live webcast and
presentation will be available on the Investor Relations section of
the Company’s website at www.hostessbrands.com. The webcast will be
archived for 30 days.
About Hostess Brands, Inc.
Hostess Brands, Inc. is a leading packaged food company focused
on developing, manufacturing, marketing, selling and distributing
fresh baked sweet goods in the United States. The brand's history
dates back to 1919, when the Hostess® CupCake was introduced to the
public, followed by Twinkies® in 1930. Today, the Company produces
a variety of new and classic treats in addition to Twinkies® and
CupCakes, including Donettes®, Ding Dongs®, Zingers®, Danishes,
Honey Buns and Coffee Cakes. For more information about Hostess®
products and Hostess Brands, please visit hostesscakes.com. Follow
Hostess on Twitter: @Hostess_Snacks; on Facebook:
facebook.com/Hostess; on Instagram: Hostess_Snacks; and on
Pinterest: pinterest.com/hostesscakes.
The Company has two reportable segments: SBG and In-Store
Bakery. The SBG segment consists of sweet baked goods, bread and
buns and frozen retail products that are sold under the Hostess®,
Dolly Madison®, Cloverhill® and Big Texas® brands. The In-Store
Bakery segment consists of Superior on Main® and private label
products sold through the in-store bakery section of grocery and
club stores.
Forward-Looking Statements
This press release contains statements reflecting the Company's
views about its future performance that constitute “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, that involve substantial risks and
uncertainties. Forward-looking statements are generally identified
through the inclusion of words such as “believes,” “expects,”
“intends,” “estimates,” “projects,” “anticipates,” “will,” “plan,”
“may,” “should,” or similar language. Statements addressing the
Company's future operating performance and statements addressing
events and developments that the Company expects or anticipates
will occur are also considered as forward-looking statements. All
forward-looking statements included herein are made only as of the
date hereof. The Company undertakes no obligation to update any
forward-looking statement, whether as a result of new information,
future events, or otherwise.
These statements inherently involve risks and uncertainties that
could cause actual results to differ materially from those
anticipated in such forward-looking statements. These risks and
uncertainties include, but are not limited to, maintaining,
extending and expanding the Company's reputation and brand image;
protecting intellectual property rights; leveraging the Company's
brand value to compete against lower-priced alternative brands;
correctly predicting, identifying and interpreting changes in
consumer preferences and demand and offering new products to meet
those changes; operating in a highly competitive industry; the
ability to maintain or add additional shelf or retail space for the
Company's products; the continued ability to produce and
successfully market products with extended shelf life; the ability
to drive revenue growth in key products or add products that are
faster-growing and more profitable; volatility in commodity,
energy, and other input prices and the ability to adjust pricing to
cover increased costs; dependence on major customers; geographic
focus could make the Company particularly vulnerable to economic
and other events and trends in North America; increased costs in
order to comply with governmental regulation; general political,
social and economic conditions; a portion of the workforce belongs
to unions and strikes or work stoppages could cause the business to
suffer; product liability claims, product recalls, or regulatory
enforcement actions; unanticipated business disruptions; dependence
on third parties for significant services; insurance may not
provide adequate levels of coverage against claims; failures,
unavailability, or disruptions of the Company's information
technology systems; the Company's ability to achieve expected
synergies and benefits and performance from the Company's strategic
acquisitions; dependence on key personnel or a highly skilled and
diverse workforce; and the Company's ability to finance
indebtedness on terms favorable to the Company; and other risks as
set forth from time to time in the Company's Securities and
Exchange Commission filings.
As a result of a number of known and unknown risks and
uncertainties, the Company's actual results or performance may be
materially different from those expressed or implied by these
forward-looking statements. Risks and uncertainties are identified
and discussed in Item 1A-Risk Factors in the Company's Annual
Report on Form 10-K for 2018. All subsequent written or oral
forward-looking statements attributable to us or persons acting on
the Company's behalf are expressly qualified in their entirety by
these risk factors. The Company undertakes no obligation to update
any forward-looking statement, whether as a result of new
information, future events, or otherwise.
HOSTESS BRANDS, INC.
CONSOLIDATED BALANCE
SHEETS
(Unaudited, amounts in
thousands, except shares and per share data)
June 30,
December 31,
2019
2018
ASSETS
Current assets:
Cash and cash equivalents
$
189,284
$
146,377
Accounts receivable, net
128,187
105,679
Inventories
42,893
38,580
Prepaids and other current assets
10,285
8,806
Total current assets
370,649
299,442
Property and equipment, net
223,751
220,349
Intangible assets, net
1,889,221
1,901,215
Goodwill
574,645
575,645
Other assets, net
10,713
14,062
Total assets
$
3,068,979
$
3,010,713
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Long-term debt and lease obligations
payable within one year
$
13,206
$
11,268
Tax receivable agreement payments payable
within one year
7,700
4,400
Accounts payable
72,161
65,288
Customer trade allowances
50,765
42,010
Accrued expenses and other current
liabilities
23,100
18,137
Total current liabilities
166,932
141,103
Long-term debt and lease obligations
972,118
976,736
Tax receivable agreement
85,820
64,663
Other long term liabilities
107
—
Deferred tax liability
273,575
277,954
Total liabilities
1,498,552
1,460,456
Class A common stock, $0.0001 par value,
200,000,000 shares authorized, 109,323,871 and 100,046,392 shares
issued and outstanding at June 30, 2019 and December 31, 2018,
respectively
11
10
Class B common stock, $0.0001 par value,
50,000,000 shares authorized, 20,999,784 and 30,255,184 shares
issued and outstanding at June 30, 2019 and December 31, 2018,
respectively
2
3
Additional paid in capital
1,022,529
925,902
Accumulated other comprehensive income
(loss)
(190
)
2,523
Retained earnings
303,974
271,365
Stockholders’ equity
1,326,326
1,199,803
Non-controlling interest
244,101
350,454
Total liabilities and stockholders’
equity
$
3,068,979
$
3,010,713
HOSTESS BRANDS, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited, amounts in
thousands, except shares and per share data)
Three Months Ended
Six Months Ended
June 30, 2019
June 30, 2018
June 30, 2019
June 30, 2018
Net revenue
$
241,060
$
215,849
$
463,798
$
424,592
Cost of goods sold
157,610
148,992
305,160
286,494
Gross profit
83,450
66,857
158,638
138,098
Operating costs and expenses:
Advertising and marketing
10,696
8,938
19,559
17,808
Selling expense
8,310
7,751
16,830
15,139
General and administrative
19,276
11,185
36,747
25,746
Amortization of customer relationships
6,009
5,994
11,994
11,989
Other operating expense (income)
2,278
(1,660
)
517
(104
)
Total operating costs and expenses
46,569
32,208
85,647
70,578
Operating income
36,881
34,649
72,991
67,520
Other expense (income):
Interest expense, net
10,302
9,749
20,538
19,089
Gain on buyout of tax receivable
agreement
—
—
—
(12,372
)
Other expense
846
86
1,286
169
Total other expense
11,148
9,835
21,824
6,886
Income before income taxes
25,733
24,814
51,167
60,634
Income tax expense
9,064
194
7,886
6,712
Net income
16,669
24,620
43,281
53,922
Less: Net income attributable to the
non-controlling interest
5,186
5,337
10,672
10,799
Net income attributable to Class A
stockholders
$
11,483
$
19,283
$
32,609
$
43,123
Earnings per Class A share:
Basic
$
0.11
$
0.19
$
0.32
$
0.43
Diluted
$
0.10
$
0.18
$
0.31
$
0.41
Weighted-average shares outstanding:
Basic
105,072,322
99,939,642
102,618,951
99,916,161
Diluted
109,509,195
104,773,094
105,338,010
104,911,474
Results of
Operations by Segment
June 30, 2019
Six Months Ended
(In thousands)
June 30, 2019
June 30, 2018
June 30, 2019
June 30, 2018
Net Revenue
Sweet Baked Goods
$
229,273
$
204,237
$
442,151
$
403,529
In-Store Bakery
11,787
11,612
21,647
21,063
$
241,060
$
215,849
$
463,798
$
424,592
Gross Profit
Sweet Baked Goods
$
80,925
$
64,359
$
154,069
$
133,797
In-Store Bakery
2,525
2,498
4,569
4,301
$
83,450
$
66,857
$
158,638
$
138,098
HOSTESS BRANDS, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Unaudited, amounts in
thousands)
Six Months Ended
June 30, 2019
June 30, 2018
Operating activities
Net income
$
43,281
$
53,922
Depreciation and amortization
21,939
20,648
Impairment of property, goodwill and
intangibles
1,005
1,417
Debt discount (premium) amortization
(536
)
(541
)
Non-cash change in tax receivable
agreement
(483
)
(14,124
)
Share-based compensation
4,780
2,721
Deferred taxes
5,637
4,994
Change in operating assets and
liabilities:
Accounts receivable
(22,508
)
(8,458
)
Inventories
(4,313
)
3,558
Prepaids and other current assets
(1,661
)
(1,643
)
Accounts payable and accrued expenses
18,168
17,187
Customer trade allowances
8,755
1,501
Net cash provided by operating
activities
74,064
81,182
Investing activities
Purchases of property and equipment
(15,398
)
(19,836
)
Acquisition of business, net of cash
—
(23,910
)
Acquisition and development of software
assets
(2,907
)
(1,591
)
Net cash used in investing activities
(18,305
)
(45,337
)
Financing activities
Repayments of long-term debt and capital
lease obligation
(5,056
)
(5,051
)
Distributions to non-controlling
interest
(4,916
)
(9,463
)
Payment of taxes related to the net
issuance of employee stock awards
(124
)
(407
)
Cash received from exercise of options
23
—
Payments on tax receivable agreement
(2,779
)
(41,353
)
Net cash used in financing activities
(12,852
)
(56,274
)
Net increase (decrease) in cash and
cash equivalents
42,907
(20,429
)
Cash and cash equivalents at beginning of
period
146,377
135,701
Cash and cash equivalents at end of
period
$
189,284
$
115,272
Supplemental Disclosures of Cash Flow
Information:
Cash paid during the period for:
Interest
$
22,472
$
20,358
Net taxes paid
$
1,815
$
3,959
Supplemental disclosure of non-cash
investing:
Accrued capital expenditures
$
1,527
$
1,388
HOSTESS BRANDS, INC. RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
Adjusted gross profit, adjusted gross margin, adjusted EBITDA,
adjusted EBITDA margin, adjusted net income, adjusted net income
attributable to Class A Stockholders and adjusted EPS, collectively
referred to as "Non-GAAP Financial Measures," are commonly used in
the Company's industry and should not be construed as an
alternative to gross profit, net income or earnings per share as
indicators of operating performance or as alternatives to cash
provided by operating activities as a measure of liquidity (each as
determined in accordance with GAAP). These Non-GAAP Financial
Measures may not be comparable to similarly titled measures
reported by other companies. The Company has included these
Non-GAAP Financial Measures because it believes the measures
provide management and investors with additional information to
measure the Company's performance and liquidity, estimate the
Company's value and evaluate the Company's ability to service
debt.
Non-GAAP Financial Measures are adjusted to exclude certain
items that affect comparability. The adjustments are itemized in
the tables below. You are encouraged to evaluate these adjustments
and the reason the Company considers them appropriate for
supplemental analysis. In evaluating adjustments, you should be
aware that in the future the Company may incur expenses that are
the same as or similar to some of the adjustments set forth below.
The presentation of Non-GAAP Financial Measures should not be
construed as an inference that future results will be unaffected by
unusual or recurring items.
The Company defines adjusted EBITDA as net income adjusted to
exclude (i) interest expense, net, (ii) depreciation and
amortization and (iii) income taxes, as further adjusted to
eliminate the impact of certain items that the Company does not
consider indicative of its ongoing operating performance. Adjusted
EBITDA has limitations as an analytical tool, and you should not
consider it in isolation, or as a substitute for analysis of the
Company's results as reported under GAAP. For example, adjusted
EBITDA:
- does not reflect the Company's capital expenditures, future
requirements for capital expenditures or contractual
commitments;
- does not reflect changes in, or cash requirements for, the
Company's working capital needs;
- does not reflect the significant interest expense, or the cash
requirements necessary to service interest or principal payments,
on the Company's debt; and
- does not reflect payments related to income taxes, the Tax
Receivable Agreement or distributions to the non-controlling
interest to reimburse its tax liability.
HOSTESS BRANDS, INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
(Unaudited, amounts in
thousands, except shares and per share data)
Three Months Ended
Six Months Ended
June 30, 2019
June 30, 2018
June 30, 2019
June 30, 2018
Reconciliation of Adjusted Gross
Profit
Gross profit
$
83,450
$
66,857
$
158,638
$
138,098
Non-GAAP adjustments:
Acquisition and integration costs
—
1,802
1,563
1,864
Special employee incentive
compensation
—
602
33
1,552
Adjusted gross profit
$
83,450
$
69,261
$
160,234
$
141,514
Adjusted gross margin
34.6
%
32.1
%
34.5
%
33.3
%
Reconciliation of Adjusted
EBITDA
Net income
$
16,669
$
24,620
$
43,281
$
53,922
Non-GAAP adjustments:
Income tax provision
9,064
194
7,886
6,712
Interest expense, net
10,302
9,749
20,538
19,089
Depreciation and amortization
11,060
10,557
21,939
20,648
Share-based compensation
2,499
1,098
4,780
—
2,721
Tax Receivable Agreement remeasurement and
gain on buyout
1,278
(1,752
)
(483
)
(14,124
)
Impairment of property and equipment,
intangible assets and goodwill
1,005
—
1,005
1,417
Acquisition and integration costs
—
1,817
1,563
1,864
Facility transition costs
ii.
816
—
816
—
Special employee incentive
compensation
1,555
602
1,910
1,585
Other
i
840
712
1,280
796
Adjusted EBITDA
$
55,088
$
47,597
$
104,515
$
94,630
Reconciliation of Adjusted Net Income
and Adjusted EPS
Net income
$
16,669
$
24,620
$
43,281
$
53,922
Non-GAAP adjustments:
Tax Receivable Agreement remeasurement and
gain on buyout
1,278
(1,752
)
(483
)
(14,124
)
Remeasurement of deferred taxes
2,823
(4,995
)
(3,224
)
(4,995
)
Impairment of property and equipment,
intangible assets and goodwill
1,005
—
1,005
1,417
Acquisition and integration costs
—
1,817
1,563
1,864
Facility transition costs
ii.
816
—
816
—
Special employee incentive
compensation
1,555
602
1,910
1,585
Other
i.
840
—
840
—
Tax impact of adjustments
(928
)
(57
)
(1,337
)
1,064
Adjusted net income
24,058
20,235
44,371
40,733
Non-controlling interest allocation of net
income
(5,186
)
(5,337
)
(10,672
)
(10,799
)
Non-controlling interest allocation of
adjustments
(679
)
(562
)
(1,125
)
(1,131
)
Adjusted net income attributed to Class
A stockholders
$
18,193
$
14,336
$
32,574
$
28,803
Weighted average Class A shares
outstanding-diluted
109,509,195
104,773,094
105,338,010
104,911,474
Adjusted EPS
$
0.17
$
0.14
$
0.31
$
0.27
i. For the three and six months ended June 30, 2019 and 2018,
other expenses included transaction and other non-operating
professional fees.
ii. For the three and six months ended June 30, 2019, facility
transition costs include non-capitalizable costs incurred to move
the Company's primary distribution center and category sales and
marketing functions.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190807005745/en/
Investors, please contact: Katie Turner ICR 646-277-1228
katie.turner@icrinc.com
Media, please contact: Hannah Arnold LAK Public Relations, Inc.
212-329-1417 harnold@lakpr.com or Marie Espinel LAK Public
Relations, Inc. 212-899-4744 mespinel@lakpr.com
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