Vital Farms (Nasdaq: VITL), a Certified B Corporation that offers a
range of ethically produced foods nationwide, today reported
financial results for its second quarter ended June 30, 2024.
Financial highlights for the second quarter
ended June 30, 2024, compared to the second quarter ended June 25,
2023, include:
- Net Revenue increased 38.5% to
$147.4 million, compared to $106.4 million
- Gross Margin expanded 362 basis
points to 39.1%, compared to 35.5%
- Net Income of $16.3 million,
compared to $6.7 million
- Net Income per Diluted Share of
$0.36, compared to $0.15
- Adjusted EBITDA of $23.3 million, compared to $11.3
million1
“Vital Farms got off to a great start in the
first quarter of the year and we followed with another strong
performance in the second quarter. We posted second quarter net
revenue of $147.4 million, 38.5% growth versus the same period last
year. I would like to thank all of our stakeholders who helped
drive our mission of delivering ethical food to the table. This
includes our farmers, suppliers, customers, consumers, crew
members, and stockholders. Boosted by a strong first-half
performance and our positive outlook for the balance of the year,
we are raising our fiscal year 2024 expectations. Beyond 2024, we
plan to continue to invest in the long-term health of our business.
We have now passed a milestone of 350 family farms in our network,
well on track to meet future demand. Additionally, with our plans
for an additional state-of-the-art egg washing and packing facility
in Seymour, Indiana, we are in the process of adding another
cornerstone piece to our supply chain’s growing capacity to meet
our $1 billion net revenue target by 2027,” said Russell
Diez-Canseco, Vital Farms’ President and CEO.
1Adjusted EBITDA is a non-GAAP financial measure
defined in the section titled “Non-GAAP Financial Measures” below
and is reconciled to net income, its closest comparable GAAP
measure, at the end of this release.
For the 13 Weeks Ended June 30,
2024
Net revenue increased 38.5% to
$147.4 million in the second quarter of 2024, compared to $106.4
million in the second quarter of 2023. Net revenue growth in the
second quarter of 2024 was driven by volume gains of 35.8% and
price/mix benefits. Volume growth was driven by accelerated demand
for existing products, expanded item offerings, and store
distribution gains across new and existing retail customers.
Gross profit was $57.7 million,
or 39.1% of net revenue, in the second quarter of 2024, compared to
$37.8 million, or 35.5% of net revenue, in the prior year quarter.
Consistent with the first quarter of 2024, gross profit growth was
driven by higher net revenue, benefits of scale, and operational
efficiencies. Margin growth was driven by benefits of scale,
operational efficiencies, price/mix benefits, and lower
conventional commodity and diesel costs. This was partially offset
by a return to a normal promotional rate, as well as increased
investment in crew members.
Income from operations in the
second quarter of 2024 was $17.1 million, compared to income from
operations of $8.0 million in the second quarter of 2023. The
change in income from operations was primarily attributable to
higher sales and gross profit, partially offset by higher
promotional rates and personnel and marketing investments.
Net income was $16.3 million in
the second quarter of 2024, compared to net income of $6.7 million
in the prior year quarter. The increase in net income was primarily
due to higher sales and improved gross profit performance,
partially offset by increased marketing spend and higher
employee-related expenses.
Net income per diluted share
was $0.36 for the second quarter of 2024, compared to net income
per diluted share of $0.15 in the prior year quarter.
Adjusted EBITDA was $23.3
million, or 15.8% of net revenue, in the second quarter of 2024,
compared to $11.3 million, or 10.7% of net revenue, in the second
quarter of 2023. The growth in Adjusted EBITDA was driven by higher
sales and improved gross profit, partially offset by investments in
higher marketing spend and employee-related expenses as we continue
to scale a world-class organization.
Adjusted EBITDA excludes certain non-cash items.
Adjusted EBITDA is a non-GAAP financial measure defined in the
section titled “Non-GAAP Financial Measures” below and is
reconciled to net income, its closest comparable GAAP measure, at
the end of this release.
Balance Sheet and Cash Flow
Highlights
Cash, cash equivalents and marketable
securities were $152.7 million as of June 30, 2024, and
the company had no outstanding debt. Net cash provided by operating
activities was $40.1 million for the 26-week period ended June 30,
2024, compared to net cash provided by operating activities of
$18.9 million for the 26-week period ended June 25, 2023.
Capital expenditures totaled
$6.9 million in the 26-week period ended June 30, 2024, compared to
$4.3 million in the 26-week period ended June 25, 2023.
Fiscal 2024 Outlook
Thilo Wrede, Vital Farms’ Chief Financial
Officer, commented: “With another strong performance in the second
quarter, I am pleased to further update our guidance for 2024. This
new outlook reflects the strong performance year to date and our
increased confidence for the remainder of 2024. Our increased
guidance is based on a favorable commodity outlook and strong
consumer demand supported by our marketing reinvestment strategy.
The core of the Vital Farms strategy remains a commitment to
increasing brand awareness, driving deeper loyalty with consumers,
and growing our household penetration through focused efforts on
brand marketing and continuous retail expansion.”
For the fiscal year 2024, management now
expects:
- Net revenue of at
least $590 million, which represents at least 25% growth versus
fiscal year 2023, compared to our previous expectation of at least
$575 million, or 22% growth.
- Adjusted EBITDA of
at least $75 million, which represents at least 55% growth versus
fiscal year 2023, compared to our previous expectation of at least
$70 million, or 45% growth.
- Capital
expenditures in the range of $35 million to $45 million, consistent
with the previous expectation. We continue to evaluate our capital
allocation priorities and we will provide updates as necessary in
future earnings reports.
Vital Farms’ guidance assumes that there are no
significant disruptions to the supply chain or its customers or
consumers, including any issues from adverse macroeconomic factors.
Vital Farms cannot provide a reconciliation between its forecasted
Adjusted EBITDA and net income (loss) and Adjusted EBITDA Margin
and net income (loss) margin, their most directly comparable GAAP
measures, without unreasonable effort due to the unavailability of
reliable estimates for income taxes, among other items. These items
are not within our control and may vary greatly between periods and
could significantly impact future financial results.
Seymour, Indiana Selected to be the Site
of New State-of-the-Art Egg Washing and Packing
Facility
In June, Vital Farms announced Seymour, Indiana
as the planned new location of its second world-class egg washing
and packing facility. Located on a 72-acre plot, this new Egg
Central Station (ECS) facility will build upon the key successes of
the company’s existing facility in Springfield, Missouri. The
facility will feature similar environmental stewardship goals
incorporated into its site plans, in addition to a flow-through
design to improve the safety and efficiency of the overall
operation. Similar to the ECS operation in Springfield, Vital Farms
expects ECS Seymour will utilize industry-leading automation for
processing equipment to improve overall production efficiency and
quality and will employ a world-class crew to lead the way in
bringing this new facility to life. ECS Seymour is expected to
break ground mid-2025 and be fully operational at the beginning of
2027.
To support the new facility, Vital Farms will
continue to build out its strong network of what is now more than
350 family farms. The company expects ECS Seymour will, in its
first phase, create at least 150 jobs for the local community and
support approximately 165 additional family farms producing the
leading U.S. brand of pasture-raised eggs by retail dollar sales.
ECS Seymour is expected to eventually generate more than $350
million in anticipated additional revenue as Vital Farms pushes to
reach its 2027 target of $1 billion in revenue.
Conference Call and Webcast
Details
Vital Farms management will host a conference
call to discuss these results today, Thursday, August 8, 2024, at
8:30 a.m. Eastern Time. To participate on the live call, listeners
in North America may dial +1-800-715-9871 and international
listeners may dial +1-646-307-1963 with the Conference ID: 8674985.
Alternatively, participants may access the live webcast on the
Vital Farms Investor Relations website at
https://investors.vitalfarms.com under “Events.” The webcast will
be archived in 30 days.
About Vital Farms
Vital Farms (Nasdaq: VITL) is a Certified B
Corporation that offers a range of ethically produced foods
nationwide. Started on a single farm in Austin, Texas, in 2007,
Vital Farms is now a national consumer brand that works with more
than 350 family farms and is the leading U.S. brand of
pasture-raised eggs by retail dollar sales. Vital Farms’ ethics are
exemplified by its focus on the humane treatment of farm animals
and sustainable farming practices. In addition, as a Delaware
public benefit corporation, Vital Farms prioritizes the long-term
benefits of each of its stakeholders, including farmers and
suppliers, customers and consumers, communities and the
environment, and crew members and stockholders. Vital Farms’
products, including shell eggs, butter, hard-boiled eggs, and
liquid whole eggs, are sold in approximately 24,000 stores
nationwide. Vital Farms pasture-raised eggs can also be found on
menus at hundreds of foodservice operators across the country. For
more information, visit https://vitalfarms.com/.
Forward-Looking Statements
This press release and the earnings call
referencing this press release contain “forward-looking”
statements, as that term is defined under the federal securities
laws, including but not limited to statements regarding Vital
Farms’ market opportunity, anticipated growth, specifications and
timing regarding Vital Farms’ potential planned egg washing and
packing facility in Seymour, Indiana, the effect of such facility
on Vital Farms’ future revenue, future growth of its farm network,
and future financial performance, including management’s outlook
for fiscal year 2024 and management’s long-term outlook. These
forward-looking statements are based on Vital Farms’ current
assumptions, expectations, and beliefs and are subject to
substantial risks, uncertainties, assumptions, and changes in
circumstances that may cause Vital Farms’ actual results,
performance, or achievements to differ materially from those
expressed or implied in any forward-looking statement.
The risks and uncertainties referred to above
include, but are not limited to: Vital Farms’ expectations
regarding its revenue, expenses, and other operating results; Vital
Farms’ ability to acquire new customers, to successfully retain
existing customers, and to attract and retain its personnel,
farmers, suppliers, distributors, and co-manufacturers; Vital
Farms’ ability to sustain or increase its profitability; Vital
Farms’ ability to procure sufficient high-quality eggs, cream for
its butter, and other raw materials; real or perceived quality or
food safety issues with Vital Farms’ products or other issues that
adversely affect Vital Farms’ brand and reputation; changes in the
tastes and preferences of consumers; the financial condition of,
and Vital Farms’ relationships with, its farmers, suppliers,
co-manufacturers, distributors, retailers, and foodservice
customers, as well as the health of the foodservice industry
generally; the impact of agricultural risks, including diseases
such as avian influenza; the ability of Vital Farms, its farmers,
suppliers, and its co-manufacturers to comply with food safety,
environmental or other laws or regulations; the effects of a public
health pandemic or contagious disease on Vital Farms' supply chain,
the demand for its products, and on overall economic conditions and
consumer confidence and spending levels; future investments in its
business, anticipated capital expenditures and estimates regarding
capital requirements; anticipated changes in Vital Farms’ product
offerings and Vital Farms’ ability to innovate to offer successful
new products or enter into new product categories; the costs and
success of marketing efforts; Vital Farms’ ability to effectively
manage its growth and to compete effectively with existing
competitors and new market entrants; the impact of adverse economic
conditions, increased interest rates, and inflation; the impact of
Vital Farms’ implementation of a new enterprise resource planning
system; the potential negative impact of Vital Farms’ focus on a
specific public benefit purpose and producing a positive effect for
society on its financial performance; the sufficiency of Vital
Farms’ cash, cash equivalents, marketable securities and
availability of credit under its credit facility to meet liquidity
needs; seasonality; and the growth rates of the markets in which
Vital Farms competes.
These risks and uncertainties are more fully
described in Vital Farms’ filings with the Securities and Exchange
Commission (SEC), including in the sections entitled “Risk Factors”
in its Quarterly Report on Form 10-Q for the fiscal quarter ended
March 31, 2024, which Vital Farms filed on May 7, 2024, its
Quarterly Report on Form 10-Q for the fiscal quarter ended June 30,
2024, which Vital Farms anticipates filing on August 8, 2024, and
other filings and reports that Vital Farms may file from time to
time with the SEC. Moreover, Vital Farms operates in a very
competitive and rapidly changing environment. New risks emerge from
time to time. It is not possible for management to predict all
risks, nor can Vital Farms assess the impact of all factors on its
business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in any forward-looking statements Vital Farms may make.
In light of these risks, uncertainties, and assumptions, Vital
Farms cannot guarantee future results, levels of activity,
performance, achievements, or events and circumstances reflected in
the forward-looking statements will occur. Forward-looking
statements represent management’s beliefs and assumptions only as
of the date of this press release. Vital Farms disclaims any
obligation to update forward-looking statements except as required
by law.
Media:Rob
DischerRob.Discher@vitalfarms.com
Investors:Anthony
BucaloAnthony.Bucalo@vitalfarms.com
VITAL FARMS, INC.CONDENSED CONSOLIDATED STATEMENTS
OF INCOME(Amounts in thousands, except share
amounts)(Unaudited) |
|
|
13-Weeks Ended |
|
|
26-Weeks Ended |
|
|
June 30,2024 |
|
|
June 25,2023 |
|
|
June 30,2024 |
|
|
June 25,2023 |
|
Net revenue |
$ |
147,388 |
|
|
$ |
106,445 |
|
|
$ |
295,316 |
|
|
$ |
225,616 |
|
Cost of
goods sold |
|
89,710 |
|
|
|
68,645 |
|
|
|
178,742 |
|
|
|
145,149 |
|
Gross
profit |
|
57,678 |
|
|
|
37,800 |
|
|
|
116,574 |
|
|
|
80,467 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
33,336 |
|
|
|
23,908 |
|
|
|
60,467 |
|
|
|
47,853 |
|
Shipping and distribution |
|
7,203 |
|
|
|
5,853 |
|
|
|
14,799 |
|
|
|
13,679 |
|
Total operating expenses |
|
40,539 |
|
|
|
29,761 |
|
|
|
75,266 |
|
|
|
61,532 |
|
Income
from operations |
|
17,139 |
|
|
|
8,039 |
|
|
|
41,308 |
|
|
|
18,935 |
|
Other
income (expense), net: |
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
(257 |
) |
|
|
(136 |
) |
|
|
(512 |
) |
|
|
(275 |
) |
Interest income |
|
1,316 |
|
|
|
450 |
|
|
|
2,404 |
|
|
|
790 |
|
Other expense, net |
|
(87 |
) |
|
|
(441 |
) |
|
|
(364 |
) |
|
|
(1,866 |
) |
Total other income (expense), net |
|
972 |
|
|
|
(127 |
) |
|
|
1,528 |
|
|
|
(1,351 |
) |
Net
income before income taxes |
|
18,111 |
|
|
|
7,912 |
|
|
|
42,836 |
|
|
|
17,584 |
|
Income
tax provision |
|
1,772 |
|
|
|
1,229 |
|
|
|
7,474 |
|
|
|
3,751 |
|
Net
income |
|
16,339 |
|
|
|
6,683 |
|
|
|
35,362 |
|
|
|
13,833 |
|
Net
income per share: |
|
|
|
|
|
|
|
|
|
|
|
Basic: |
$ |
0.38 |
|
|
$ |
0.16 |
|
|
$ |
0.84 |
|
|
$ |
0.34 |
|
Diluted: |
$ |
0.36 |
|
|
$ |
0.15 |
|
|
$ |
0.79 |
|
|
$ |
0.32 |
|
Weighted
average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic: |
|
42,500,355 |
|
|
|
40,948,365 |
|
|
|
42,148,992 |
|
|
|
40,861,218 |
|
Diluted: |
|
45,248,792 |
|
|
|
43,292,261 |
|
|
|
44,600,401 |
|
|
|
43,359,993 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VITAL FARMS, INC.CONDENSED CONSOLIDATED
BALANCE SHEETS(Amounts in thousands, except share
amounts) |
|
|
|
June 30,2024 |
|
|
December 31,2023 |
|
|
|
(Unaudited) |
|
|
|
|
Assets |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
133,173 |
|
|
$ |
84,149 |
|
Investment securities, available-for-sale |
|
|
19,533 |
|
|
|
32,667 |
|
Accounts receivable, net of allowance for credit losses of $514 and
$550 as of June 30, 2024 and December 31, 2023, respectively |
|
|
42,863 |
|
|
|
39,699 |
|
Inventories |
|
|
31,448 |
|
|
|
32,895 |
|
Prepaid expenses and other current assets, net of allowance for
credit losses of $117 and $227 as of June 30, 2024 and December 31,
2023, respectively |
|
|
4,530 |
|
|
|
6,114 |
|
Income taxes receivable |
|
|
2,663 |
|
|
|
— |
|
Total current assets |
|
|
234,210 |
|
|
|
195,524 |
|
Property, plant and equipment, net |
|
|
68,327 |
|
|
|
66,839 |
|
Operating lease right-of-use assets |
|
|
12,478 |
|
|
|
8,911 |
|
Goodwill
and other assets |
|
|
5,474 |
|
|
|
3,904 |
|
Total assets |
|
$ |
320,489 |
|
|
$ |
275,178 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
33,358 |
|
|
$ |
33,485 |
|
Accrued liabilities |
|
|
25,928 |
|
|
|
24,218 |
|
Operating lease liabilities, current |
|
|
4,085 |
|
|
|
3,057 |
|
Finance lease liabilities, current |
|
|
3,620 |
|
|
|
3,255 |
|
Income taxes payable |
|
|
— |
|
|
|
1,206 |
|
Total current liabilities |
|
|
66,991 |
|
|
|
65,221 |
|
Operating lease liabilities, non-current |
|
|
4,387 |
|
|
|
5,771 |
|
Finance
lease liabilities, non-current |
|
|
9,593 |
|
|
|
10,481 |
|
Other
liabilities |
|
|
1,097 |
|
|
|
1,028 |
|
Total liabilities |
|
$ |
82,068 |
|
|
$ |
82,501 |
|
Commitments and contingencies (Note 20) |
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
Preferred stock, $0.0001 par value per share, 10,000,000 shares
authorized as of June 30, 2024 and December 31, 2023; no shares
issued and outstanding as of June 30, 2024 and December 31,
2023 |
|
|
— |
|
|
|
— |
|
Common stock, $0.0001 par value per share, 310,000,000 shares
authorized as of June 30, 2024 and December 31, 2023; 42,971,988
and 41,684,649 shares issued and outstanding as of June 30, 2024
and December 31, 2023, respectively |
|
|
4 |
|
|
|
4 |
|
Additional paid-in capital |
|
|
173,498 |
|
|
|
163,325 |
|
Retained earnings |
|
|
65,087 |
|
|
|
29,725 |
|
Accumulated other comprehensive loss |
|
|
(168 |
) |
|
|
(377 |
) |
Total stockholders’ equity |
|
$ |
238,421 |
|
|
$ |
192,677 |
|
Total liabilities and stockholders’ equity |
|
$ |
320,489 |
|
|
$ |
275,178 |
|
|
|
|
|
|
|
|
|
|
VITAL FARMS, INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS(Amounts in
thousands)(Unaudited) |
|
|
26-Weeks Ended |
|
|
June 30,2024 |
|
|
June 25,2023 |
|
Cash flows from operating activities: |
|
|
|
|
|
Net income |
$ |
35,362 |
|
|
$ |
13,833 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
4,647 |
|
|
|
3,543 |
|
Reduction in the carrying amount of right-of-use assets |
|
3,510 |
|
|
|
1,588 |
|
Amortization of available-for-sale debt securities |
|
76 |
|
|
|
230 |
|
Amortization of debt issuance costs |
|
19 |
|
|
|
— |
|
Stock-based compensation expense |
|
4,898 |
|
|
|
3,687 |
|
Deferred taxes |
|
— |
|
|
|
767 |
|
Unrealized loss on derivative instruments |
|
346 |
|
|
|
847 |
|
Other |
|
(132 |
) |
|
|
524 |
|
Net
change in operating assets and liabilities |
|
(8,644 |
) |
|
|
(6,108 |
) |
Net cash provided by operating activities |
$ |
40,082 |
|
|
$ |
18,911 |
|
Cash flows from investing activities: |
|
|
|
|
|
Purchases of property, plant and equipment |
|
(6,914 |
) |
|
|
(4,292 |
) |
Purchases and settlements of derivative instruments |
|
(669 |
) |
|
|
(662 |
) |
Sales of
available-for-sale debt securities |
|
— |
|
|
|
1,907 |
|
Maturities and call redemptions of available-for-sale debt
securities |
|
13,335 |
|
|
|
18,453 |
|
Proceeds
from the sale of property, plant and equipment |
|
1 |
|
|
|
1,054 |
|
Return
of investment in variable interest entity |
|
— |
|
|
|
552 |
|
Net cash provided by investing activities |
$ |
5,753 |
|
|
$ |
17,012 |
|
Cash flows from financing activities: |
|
|
|
|
|
Proceeds
from borrowing under revolving line of credit |
|
— |
|
|
|
7,500 |
|
Proceeds
from exercise of stock options |
|
6,448 |
|
|
|
110 |
|
Proceeds
from issuance of common stock under employee stock purchase
plan |
|
178 |
|
|
|
135 |
|
Repayment of revolving line of credit |
|
— |
|
|
|
(7,500 |
) |
Payment
of tax withholding obligation on vested RSU shares |
|
(1,351 |
) |
|
|
(636 |
) |
Principal payments under finance lease obligations |
|
(1,672 |
) |
|
|
(773 |
) |
Payment
of financing costs |
|
(414 |
) |
|
|
— |
|
Net cash provided by (used in) financing activities |
$ |
3,189 |
|
|
$ |
(1,164 |
) |
Net increase in cash and cash equivalents |
|
49,024 |
|
|
|
34,759 |
|
Cash and
cash equivalents at beginning of the period |
|
84,149 |
|
|
|
12,914 |
|
Cash and
cash equivalents at end of the period |
$ |
133,173 |
|
|
$ |
47,673 |
|
Supplemental disclosure of cash flow
information: |
|
|
|
|
|
Cash
paid for interest |
$ |
512 |
|
|
$ |
268 |
|
Cash
paid for income taxes |
|
11,344 |
|
|
$ |
1,070 |
|
Supplemental disclosure of non-cash investing and financing
activities: |
|
|
|
|
|
Purchases of property, plant and equipment included in accounts
payable and accrued liabilities |
$ |
150 |
|
|
$ |
1,266 |
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures
We report our financial results in accordance
with GAAP. However, management believes that Adjusted EBITDA and
Adjusted EBITDA Margin, non-GAAP financial measures, provide
investors with additional useful information in evaluating our
performance.
Adjusted EBITDA and Adjusted EBITDA Margin are
financial measures that are not required by or presented in
accordance with GAAP. We believe that Adjusted EBITDA and Adjusted
EBITDA Margin, when taken together with our financial results
presented in accordance with GAAP, provide meaningful supplemental
information regarding our operating performance and facilitate
internal comparisons of our historical operating performance on a
more consistent basis by excluding certain items that may not be
indicative of our business, results of operations or outlook. In
particular, we believe that the use of Adjusted EBITDA and Adjusted
EBITDA Margin are helpful to our investors as they are measures
used by management in assessing the health of our business,
determining incentive compensation and evaluating our operating
performance, as well as for internal planning and forecasting
purposes.
We calculate Adjusted EBITDA as net income,
adjusted to exclude: (1) depreciation and amortization; (2)
stock-based compensation expense; (3)(benefit) or provision for
income taxes as applicable; (4) interest expense; and (5) interest
income. We calculate Adjusted EBITDA Margin as Adjusted EBITDA
divided by Net Revenue.
Adjusted EBITDA and Adjusted EBITDA Margin are
presented for supplemental informational purposes only, have
limitations as analytical tools and should not be considered in
isolation or as a substitute for financial information presented in
accordance with GAAP. Some of the limitations of Adjusted EBITDA
and Adjusted EBITDA Margin include that (1) they do not properly
reflect capital commitments to be paid in the future, (2) although
depreciation and amortization are non-cash charges, the underlying
assets may need to be replaced and Adjusted EBITDA and Adjusted
EBITDA Margin do not reflect these capital expenditures, (3) they
do not consider the impact of stock-based compensation expense, (4)
they do not reflect other non-operating expenses, including
interest expense; and (5) they do not reflect tax payments that may
represent a reduction in cash available to us. In addition, our use
of Adjusted EBITDA and Adjusted EBITDA Margin may not be comparable
to similarly titled measures of other companies because they may
not calculate Adjusted EBITDA and Adjusted EBITDA Margin in the
same manner, limiting the usefulness as comparative measures.
Because of these limitations, when evaluating our performance, you
should consider Adjusted EBITDA and Adjusted EBITDA Margin
alongside other financial measures, including our net income and
other results stated in accordance with GAAP.
The following table presents a reconciliation of
Adjusted EBITDA to net income and a reconciliation of Adjusted
EBITDA Margin to net income margin, the most directly comparable
financial measures stated in accordance with GAAP, for the 13- and
26-week periods presented.
VITAL FARMS, INC.ADJUSTED EBITDA
RECONCILIATION(Amounts in
thousands)(Unaudited) |
|
|
13-Weeks Ended |
|
26-Weeks Ended |
|
June 30,2024 |
|
June 25,2023 |
|
June 30,2024 |
|
June 25,2023 |
|
(in thousands) |
|
(in thousands) |
Net income |
$ |
16,339 |
|
|
$ |
6,683 |
|
|
$ |
35,362 |
|
|
$ |
13,833 |
|
Depreciation and amortization1 |
|
3,288 |
|
|
|
2,297 |
|
|
|
6,499 |
|
|
|
4,437 |
|
Stock-based compensation expense |
|
2,916 |
|
|
|
1,446 |
|
|
|
4,898 |
|
|
|
3,687 |
|
Income tax provision |
|
1,772 |
|
|
|
1,229 |
|
|
|
7,474 |
|
|
|
3,751 |
|
Interest expense |
|
257 |
|
|
|
136 |
|
|
|
512 |
|
|
|
275 |
|
Interest income |
|
(1,316 |
) |
|
|
(450 |
) |
|
|
(2,404 |
) |
|
|
(790 |
) |
Adjusted EBITDA |
$ |
23,256 |
|
|
$ |
11,341 |
|
|
$ |
52,341 |
|
|
$ |
25,193 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
$ |
147,388 |
|
|
$ |
106,445 |
|
|
$ |
295,316 |
|
|
$ |
225,616 |
|
Net income margin2 |
|
11.1 |
% |
|
|
6.3 |
% |
|
12.0 |
% |
|
6.1 |
% |
Adjusted EBITDA margin3 |
|
15.8 |
% |
|
|
10.7 |
% |
|
17.7 |
% |
|
11.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Amount also includes finance lease
amortization.2 Net income margin is calculated by dividing net
income by net revenue.3 Adjusted EBITDA Margin is calculated by
dividing Adjusted EBITDA by net revenue
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