Whole Earth Brands, Inc. (the “Company” or “we” or “our”) (Nasdaq:
FREE), a global food company enabling healthier lifestyles through
premium plant-based sweeteners, flavor enhancers and other foods,
today announced its financial results for its third quarter ended
September 30, 2022.
Third Quarter Highlights
-
Reported consolidated revenue growth of 4.9%. Constant currency
consolidated revenue grew 8.1%, driven by a 7.2% increase in price
and a 0.9% increase in volume
-
Branded CPG constant currency revenue growth of 5.9% compared to
2021, driven primarily by strong pricing growth
-
Flavors & Ingredients constant currency revenue growth of 16.9%
compared to 2021, driven by a combination of strong volume growth
and increased pricing
-
Continued to take price as needed in response to inflationary
pressures to mitigate gross margin impact
-
Operating income of $6.8 million and adjusted EBITDA of $21.5
million
|
Third Quarter Net Product Revenues Growth
Overview |
|
Reported |
|
Foreign Currency Exchange |
|
Constant Currency |
Branded CPG |
2.6% |
|
(3.2)% |
|
5.9% |
Flavors &
Ingredients |
13.9% |
|
(3.0)% |
|
16.9% |
Total |
4.9% |
|
(3.2)% |
|
8.1% |
|
|
|
|
|
|
Albert Manzone, Chief Executive Officer,
commented, “Our diversified business generated another quarter of
consistent growth in the third quarter – consolidated constant
currency revenue growth was more than 8% and adjusted EBITDA was
in-line with our expectations. At the segment level, our Branded
CPG business grew revenue by almost 6% on a constant currency basis
and our improved production levels helped advance new distribution
opportunities with leading, global retail partners. Our Branded CPG
portfolio is well-positioned in the current environment, with a
diverse assortment of strong brands and products that are
performing especially well across our unmeasured channels such as
club, foodservice, private label, ingredients, and e-commerce. Our
sales in these channels grew 7% in the third quarter and represent
approximately 80% of our North America revenue mix. Further, our
Flavors & Ingredients segment continued to exhibit strength
during the third quarter with 17% growth on a constant currency
basis, which builds on the strong momentum we experienced through
the first half of the year as it offers natural, non-GMO only
solutions in high demand across our end-markets in food &
beverage, healthcare, cosmetics, and industrial companies.”
Mr. Manzone continued, “Following the
stabilization of our North American supply and the improvement in
customer service that followed, we will continue to streamline our
North American supply chain network. This will allow us to improve
costs and drive positive free cash flow in 2023 while continuing to
deliver sustainable supply for our customers and allow our teams to
focus on our core competencies – driving growth through innovation,
brand building, and distribution.”
Irwin D. Simon, Executive Chairman, stated, “We
are pleased with the strength of our brands in the face of a very
challenging environment, as demonstrated by the broad-based net
revenue growth across both our businesses and in our developed and
emerging markets during the third quarter. This net revenue
momentum along with our effective execution of pricing and solid
volume performance are enabling us to raise the lower end, and
narrow, our full year net revenue outlook. In a fast-changing macro
environment, we continue to evolve our business model to remain
competitive. As we look forward to 2023, with our brand portfolio
combined with our slate of innovation, we believe we have the tools
in place to open up new distribution opportunities, generate
continued growth and drive higher cash flow generation.”
THIRD QUARTER 2022 RESULTS
-
Consolidated product revenues were $135.3 million, an increase of
4.9% on a reported basis and 8.1% on a constant currency basis, as
compared to the prior year third quarter. The increase was driven
by a combination of increased volume and pricing actions. A
stronger US dollar reduced reported consolidated product revenues
by approximately $4.1 million, or 3.2%, versus the prior year
quarter.
-
Reported gross profit was $35.0 million, compared to $43.0 million
in the prior year third quarter. The decrease was largely driven by
cost inflation and costs associated with the supply chain
reinvention project, as well as the prior year included $2.6
million of favorable non-cash purchase accounting adjustments
related to inventory revaluations that did not re-occur, partially
offset by pricing actions. Adjusted gross profit was $41.7 million,
compared to $43.4 million in the prior year third quarter.
-
Reported gross profit margin was 25.9% in the third quarter of
2022, compared to 33.4% in the prior year period. Adjusted gross
profit margin was 30.8%, compared to 33.6% in the prior year third
quarter. The decrease in adjusted gross profit margin is primarily
the result of price increases being offset by cost inflation.
-
Consolidated operating income was $6.8 million compared to
operating income of $13.5 million in the prior year third quarter
and consolidated net loss was $2.5 million in the third quarter of
2022 compared to net income of $8.8 million in the prior year
period.
-
Consolidated Adjusted EBITDA was $21.5 million compared to $22.1
million in the prior year quarter representing a decline of 2.7%.
The decrease was primarily due to an unfavorable foreign currency
impact of $1.3 million due to the strengthening US dollar.
Excluding the foreign currency impact, Consolidated Adjusted EBITDA
increased 3.3%.
SEGMENT RESULTS
Branded CPG SegmentBranded CPG
segment product revenues increased $2.7 million, or 2.6%, to $105.4
million for the third quarter of 2022, compared to $102.7 million
for the same period in the prior year, primarily due to higher
pricing, partially offset by the impact of unfavorable foreign
currency exchange rates. On a constant currency basis, segment
product revenues increased 5.9% compared to the prior year driven
primarily by pricing actions. Volume was down 2.0% primarily due to
the discontinuance of certain private label SKUs at the beginning
of the year. Excluding the impact of this SKU rationalization,
Branded CPG volume was essentially flat versus the prior year
quarter.
Operating income was $5.5 million in the third
quarter of 2022 compared to $10.1 million for the same period in
the prior year. The decrease was driven by costs associated with
the Company’s supply chain reinvention project, the impact of cost
inflation, and an unfavorable impact from a stronger US dollar,
partially offset by strong pricing growth.
Flavors & Ingredients
SegmentFlavors & Ingredients segment product revenues
increased 13.9% to $29.9 million for the third quarter of 2022,
compared to $26.2 million for the same period in the prior year. On
a constant currency basis, segment product revenues increased 16.9%
compared to the prior year primarily due to strong volume growth of
12.3% driven by growth in licorice extracts and pure derivatives
resulting from the Company’s commercial expansion and innovation
efforts and 4.6% growth from pricing actions.
Operating income was $7.3 million in the third
quarter of 2022, compared to $9.5 million in the prior year period.
The decrease was primarily due to $2.8 million of favorable
non-cash purchase accounting adjustments related to inventory
revaluations in the prior year period that did not re-occur in the
current quarter.
CorporateCorporate expenses for
the third quarter of 2022 were $6.0 million, compared to $6.1
million of expenses in the prior year period.
YEAR-TO-DATE 2022
HIGHLIGHTS
The Company’s reported consolidated financials
reflect the completed acquisition of Wholesome on February 5, 2021,
from that date. Proforma comparisons include the impact of this
acquisition for both the current and prior year periods.
-
Consolidated product revenues were $399.4 million, an increase of
10.6% on a reported basis, as compared to the nine months ended
September 30, 2021. On a proforma basis, organic constant currency
product revenue increased 7.2% compared to the prior year
period.
-
Consolidated operating income was $21.6 million compared to $16.4
million in the prior year period.
-
Consolidated Adjusted EBITDA decreased $2.6 million, or 4.2%, to
$59.0 million primarily due to $3.0 million of unfavorable foreign
currency.
BALANCE SHEET
As of September 30, 2022, the Company had cash
and cash equivalents of $20.8 million and $435.7 million of
long-term debt, net of unamortized debt issuance costs. The Company
increased its borrowings under the revolving credit facility in
2022 to fund a portion of the Wholesome earnout payment in the
first quarter. At September 30, 2022, there was $79 million drawn
on its $125 million revolving credit facility.
Cash used in operating activities was $17.3
million for the nine months ended September 30, 2022. Cash used in
operating activities is primarily due to increased investment in
net working capital including increased inventory balances
influenced by cost inflation, higher levels of safety stock to
enable improved customer service levels and timing. The Company
expects to realize a sequential improvement in cash from operating
activities beginning with the fourth quarter of 2022.
OUTLOOK
The Company is updating its outlook for the full
year 2022 and is narrowing its range of expectations for net
product revenues toward the higher end of its previously stated
range and lowering its expectations for Adjusted EBITDA primarily
due to on-going foreign currency and cost inflation impacts. The
outlook includes expectations for growth on a proforma organic
basis. The Company defines proforma organic growth to be as if the
Company owned Wholesome for the full year 2021. The Company’s 2022
outlook is as follows:
-
Net Product Revenues: $535 million to $545 million (representing
reported growth of 8% to 10%, and proforma organic growth of 4% to
6%) which includes foreign currency headwind of approximately $15
million
-
Adjusted EBITDA: $79 million to $81 million, which includes foreign
currency headwind of approximately $5 million
-
Capital Expenditures: Approximately $10 million
Outlook is provided in the context of greater
than usual volatility as a result of current geo-political events,
the on-going COVID-19 pandemic, inflationary environment and the
strengthening U.S. dollar.
CONFERENCE CALL DETAILS
The Company will host a conference call and
webcast to review its third quarter results today, November 9,
2022, at 8:30 am ET. The conference call can be accessed live over
the phone by dialing (877) 300-8521 or for international callers by
dialing (412) 317-6026. A replay of the call will be available
until November 23, 2022, by dialing (844) 512-2921 or for
international callers by dialing (412) 317-6671; the passcode is
10172405.
The live audio webcast of the conference call
will be accessible in the News & Events section on the
Company's Investor Relations website at
investor.wholeearthbrands.com. An archived replay of the webcast
will also be available shortly after the live event has
concluded.
About Whole Earth Brands
Whole Earth Brands is a global food company
enabling healthier lifestyles and providing access to premium
plant-based sweeteners, flavor enhancers and other foods through
our diverse portfolio of trusted brands and delicious products,
including Whole Earth Sweetener®, Wholesome®, Swerve®, Pure Via®,
Equal® and Canderel®. With food playing a central role in people’s
health and wellness, Whole Earth Brands’ innovative product
pipeline addresses the growing consumer demand for more dietary
options, baking ingredients and taste profiles. Our world-class
global distribution network is the largest provider of plant-based
sweeteners in more than 100 countries with a vision to expand our
portfolio to responsibly meet local preferences. We are committed
to helping people enjoy life’s everyday moments and the
celebrations that bring us together. For more information on how we
“Open a World of Goodness®,” please visit
www.WholeEarthBrands.com.
Forward-Looking Statements
This press release contains forward-looking
statements (including within the meaning of the Private Securities
Litigation Reform Act of 1995) concerning Whole Earth Brands, Inc.
and other matters. These statements may discuss goals, intentions
and expectations as to future plans, trends, events, results of
operations or financial condition, or otherwise, based on current
beliefs of management, as well as assumptions made by, and
information currently available to, management.
Forward-looking statements may be accompanied by
words such as “achieve,” “aim,” “anticipate,” “believe,” “can,”
“continue,” “could,” “drive,” “estimate,” “expect,” “forecast,”
“future,” “guidance,” “grow,” “improve,” “increase,” “intend,”
“may,” “outlook,” “plan,” “possible,” “potential,” “predict,”
“project,” “should,” “target,” “will,” “would,” or similar words,
phrases or expressions. Examples of forward-looking statements
include, but are not limited to, the statements made by Messrs.
Simon and Manzone, and our 2022 guidance. Factors that could cause
actual results to differ materially from those in the
forward-looking statements include, but are not limited to, the
Company’s ability to achieve the anticipated benefits of the
integration of Wholesome and Swerve in a timely manner or at all;
the ongoing conflict in Ukraine and related economic disruptions
and new governmental regulations on our business, including but not
limited to the potential impact on our sales, operations and supply
chain; adverse changes in the global or regional general business,
political and economic conditions, including the impact of
continuing uncertainty and instability in certain countries, that
could affect our global markets and the potential adverse economic
impact and related uncertainty caused by these items; the extent of
the impact of the COVID-19 pandemic, including the duration,
spread, severity, and any recurrence of the COVID-19 pandemic, the
duration and scope of related government orders and restrictions,
the impact on our employees, and the extent of the impact of the
COVID-19 pandemic on overall demand for the Company’s products;
local, regional, national, and international economic conditions
that have deteriorated as a result of the COVID-19 pandemic,
including the risks of a global recession or a recession in one or
more of the Company’s key markets, and the impact they may have on
the Company and its customers and management’s assessment of that
impact; extensive and evolving government regulations that impact
the way the Company operates; the impact of the COVID-19 pandemic
on the Company’s suppliers, including disruptions and
inefficiencies in the supply chain; and the Company’s ability to
offset rising costs through pricing and productivity
effectively
These forward-looking statements are subject to
risks, uncertainties and other factors, many of which are outside
of the Company’s control, which could cause actual results to
differ materially from the results contemplated by the
forward-looking statements. These statements are subject to the
risks and uncertainties indicated from time to time in the
documents the Company files (or furnishes) with the U.S. Securities
and Exchange Commission.
You are cautioned not to place undue reliance
upon any forward-looking statements, which are based only on
information currently available to the Company and speak only as of
the date made. The Company undertakes no commitment to publicly
update or revise the forward-looking statements, whether written or
oral that may be made from time to time, whether as a result of new
information, future events or otherwise, except as required by
law.
Contacts:Investor Relations
Contact:Whole Earth
Brands312-840-5001investor@wholeearthbrands.com
ICRJeff
Sonnek646-277-1263jeff.sonnek@icrinc.com
Whole Earth Brands, Inc.
Reconciliation of GAAP and Non-GAAP Financial
Measures (Unaudited)
The Company reports its financial results in
accordance with accounting principles generally accepted in the
United States (“GAAP”). However, management believes that also
presenting certain non-GAAP financial measures provides additional
information to facilitate the comparison of the Company’s
historical operating results and trends in its underlying operating
results, and provides additional transparency on how the Company
evaluates its business. Management uses these non-GAAP financial
measures in making financial, operating and planning decisions and
in evaluating the Company’s performance. The Company also believes
that presenting these measures allows investors to view its
performance using the same measures that the Company uses in
evaluating its financial and business performance and trends. The
Company considers quantitative and qualitative factors in assessing
whether to adjust for the impact of items that may be significant
or that could affect an understanding of its ongoing financial and
business performance and trends. The adjustments generally fall
within the following categories: constant currency adjustments,
intangible asset non-cash impairments, purchase accounting charges,
transaction-related costs, long-term incentive expense, non-cash
pension expenses, severance and related expenses associated with
productivity initiatives, public company readiness, M&A
transaction expenses, supply chain reinvention costs and other
one-time items affecting comparability of operating results. See
below for a description of adjustments to the Company’s U.S. GAAP
financial measures included herein. Non-GAAP information should be
considered as supplemental in nature and is not meant to be
considered in isolation or as a substitute for the related
financial information prepared in accordance with U.S. GAAP. In
addition, the Company’s non-GAAP financial measures may not be the
same as or comparable to similar non-GAAP measures presented by
other companies.
DEFINITIONS OF THE COMPANY’S NON-GAAP
FINANCIAL MEASURES
The Company’s non-GAAP financial measures and
corresponding metrics reflect how the Company evaluates its
operating results currently and provide improved comparability of
operating results. As new events or circumstances arise, these
definitions could change. When these definitions change, the
Company provides the updated definitions and presents the related
non-GAAP historical results on a comparable basis. When items no
longer impact the Company’s current or future presentation of
non-GAAP operating results, the Company removes these items from
its non-GAAP definitions.
The following is a list of non-GAAP financial
measures which the Company has discussed or expects to discuss in
the future:
- Constant
Currency Presentation: We evaluate our product revenue results on
both a reported and a constant currency basis. The constant
currency presentation, which is a non-GAAP measure, excludes the
impact of fluctuations in foreign currency exchange rates. We
believe providing constant currency information provides valuable
supplemental information regarding our product revenue results,
thereby facilitating period-to-period comparisons of our business
performance and is consistent with how management evaluates the
Company’s performance. We calculate constant currency percentages
by converting our current period local currency product revenue
results using the prior period exchange rates and comparing these
adjusted amounts to our prior period reported product
revenues.
- Adjusted EBITDA:
We define Adjusted EBITDA as net income or loss from our
consolidated statements of operations before interest income and
expense, income taxes, depreciation and amortization, as well as
certain other items that arise outside of the ordinary course of
our continuing operations specifically described below:
- Asset impairment
charges: We exclude the impact of charges related to the impairment
of goodwill and other long-lived intangible assets. We believe that
the exclusion of these impairments, which are non-cash, allows for
more meaningful comparisons of operating results to peer companies.
We believe that this increases period-to-period comparability and
is useful to evaluate the performance of the company.
- Purchase
accounting adjustments: We exclude the impact of purchase
accounting adjustments, including the revaluation of inventory at
the time of the business combination. These adjustments are
non-cash and we believe that the adjustments of these items allows
for more meaningful comparability of our operating results.
-
Transaction-related expenses: We exclude transaction-related
expenses including transaction bonuses that were paid for by the
seller of the businesses acquired by the Company on June 25, 2020.
We believe that the adjustments of these items allows for more
meaningful comparability of our operating results.
- Long-term
incentive plan: We exclude the impact of costs relating to the
long-term incentive plan. We believe that the adjustments of these
items allows for more meaningful comparability of our operating
results.
- Non-cash pension
expenses: We exclude non-cash pension expenses/credits related to
closed, defined pension programs of the Company. We believe that
the adjustments of these items allows for more meaningful
comparability of our operating results.
- Severance and
related expenses: We exclude employee severance and associated
expenses related to roles that have been eliminated or reduced in
scope as a productivity measure taken by the Company. We believe
that the adjustments of these items allows for more meaningful
comparability of our operating results.
- Public company
readiness: We exclude non-recurring organization and consulting
costs incurred to establish required public company capabilities.
We believe that the adjustments of these items allows for more
meaningful comparability of our operating results.
- Restructuring:
To measure operating performance, we exclude restructuring costs.
We believe that the adjustments of these items allows for more
meaningful comparability of our operating results.
- M&A
transaction expenses: We exclude expenses directly related to the
acquisition of businesses after the business combination on June
25, 2020. We believe that the adjustments of these items allows for
more meaningful comparability of our operating results.
- Supply chain
reinvention: To measure operating performance, we exclude certain
one-time and other costs associated with reorganizing our North
America Branded CPG operations and facilities in connection with
our supply chain reinvention program, which will drive long-term
productivity and cost savings. These costs include incremental
expenses such as hiring, training and other temporary costs
primarily related to taking control over production that was
previously outsourced to a contract manufacturer. We believe that
the adjustments of these items allows for more meaningful
comparability of our operating results.
- Other items: To
measure operating performance, we exclude certain expenses and
include certain gains that we believe are not operational in
nature. We believe the exclusion or inclusion of such amounts
allows management and the users of the financial statements to
better understand our financial results.
Adjusted EBITDA is not a presentation made in
accordance with GAAP, and our use of the term Adjusted EBITDA may
vary from the use of similarly-titled measures by others in our
industry due to the potential inconsistencies in the method of
calculation and differences due to items subject to interpretation.
Adjusted EBITDA margin is Adjusted EBITDA for a particular period
expressed as a percentage of product revenues for that period.
We use Adjusted EBITDA to measure our
performance from period to period both at the consolidated level as
well as within our operating segments, to evaluate and fund
incentive compensation programs and to compare our results to those
of our competitors. In addition to Adjusted EBITDA being a
significant measure of performance for management purposes, we also
believe that this presentation provides useful information to
investors regarding financial and business trends related to our
results of operations and that when non-GAAP financial information
is viewed with GAAP financial information, investors are provided
with a more meaningful understanding of our ongoing operating
performance.
Adjusted EBITDA should not be considered as an
alternative to net income or loss, operating income, cash flows
from operating activities or any other performance measures derived
in accordance with GAAP as measures of operating performance or
cash flows as measures of liquidity. Adjusted EBITDA has important
limitations as an analytical tool and should not be considered in
isolation or as a substitute for analysis of our results as
reported under GAAP.
The Company cannot reconcile its expected
Adjusted EBITDA to Net Income under “Outlook” without unreasonable
effort because certain items that impact net income and other
reconciling metrics are out of the Company’s control and/or cannot
be reasonably predicted. These items include, but are not limited
to, stock-based compensation expense and acquisition-related
charges. These items are uncertain, depend on various factors, and
could have a material impact on GAAP reported results for the
guidance period.
Adjusted Gross Profit Margin: We define Adjusted
Gross Profit Margin as Gross Profit excluding all cash and non-cash
adjustments impacting Cost of Goods Sold, included in the Adjusted
EBITDA reconciliation, as a percentage of Product Revenues, net.
Such adjustments include: depreciation, purchase accounting
adjustments, long-term incentives and other items adjusted by
management to better understand our financial results.
Whole Earth Brands, Inc. |
Condensed Consolidated Balance Sheets |
(In thousands of dollars, except for share and per share
data) |
(Unaudited) |
|
|
|
|
|
September 30, 2022 |
|
December 31, 2021 |
Assets |
|
|
|
Current
Assets |
|
|
|
Cash and cash equivalents |
$ |
20,846 |
|
|
$ |
28,296 |
|
Accounts receivable (net of allowances of $1,815 and $1,285,
respectively) |
|
69,420 |
|
|
|
69,590 |
|
Inventories |
|
228,830 |
|
|
|
212,930 |
|
Prepaid expenses and other current assets |
|
11,849 |
|
|
|
7,585 |
|
Total current assets |
|
330,945 |
|
|
|
318,401 |
|
|
|
|
|
Property, Plant and
Equipment, net |
|
55,900 |
|
|
|
58,503 |
|
|
|
|
|
Other
Assets |
|
|
|
Operating lease right-of-use assets |
|
20,781 |
|
|
|
26,444 |
|
Goodwill |
|
233,578 |
|
|
|
242,661 |
|
Other intangible assets, net |
|
245,809 |
|
|
|
266,939 |
|
Deferred tax assets, net |
|
3,964 |
|
|
|
1,993 |
|
Other assets |
|
9,346 |
|
|
|
7,638 |
|
Total Assets |
$ |
900,323 |
|
|
$ |
922,579 |
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
Current
Liabilities |
|
|
|
Accounts payable |
$ |
50,872 |
|
|
$ |
55,182 |
|
Accrued expenses and other current liabilities |
|
26,978 |
|
|
|
30,733 |
|
Contingent consideration payable |
|
— |
|
|
|
54,113 |
|
Current portion of operating lease liabilities |
|
8,338 |
|
|
|
7,950 |
|
Current portion of long-term debt |
|
3,750 |
|
|
|
3,750 |
|
Total current liabilities |
|
89,938 |
|
|
|
151,728 |
|
Non-Current
Liabilities |
|
|
|
Long-term debt |
|
435,741 |
|
|
|
383,484 |
|
Warrant liabilities |
|
208 |
|
|
|
2,053 |
|
Deferred tax liabilities, net |
|
30,351 |
|
|
|
35,090 |
|
Operating lease liabilities, less current portion |
|
15,841 |
|
|
|
22,575 |
|
Other liabilities |
|
13,191 |
|
|
|
13,778 |
|
Total Liabilities |
|
585,270 |
|
|
|
608,708 |
|
Commitments and
Contingencies |
|
— |
|
|
|
— |
|
Stockholders’
Equity |
|
|
|
Preferred shares, $0.0001 par value; 1,000,000 shares authorized;
none issued and outstanding at September 30, 2022 and
December 31, 2021 |
|
— |
|
|
|
— |
|
Common stock, $0.0001 par value; 220,000,000 shares authorized;
41,977,814 and 38,871,646 shares issued and outstanding at
September 30, 2022 and December 31, 2021,
respectively |
|
4 |
|
|
|
4 |
|
Additional paid-in capital |
|
360,826 |
|
|
|
330,616 |
|
Accumulated deficit |
|
(24,905 |
) |
|
|
(26,436 |
) |
Accumulated other comprehensive income (loss) |
|
(20,872 |
) |
|
|
9,687 |
|
Total stockholders’ equity |
|
315,053 |
|
|
|
313,871 |
|
Total Liabilities and Stockholders’ Equity |
$ |
900,323 |
|
|
$ |
922,579 |
|
Whole Earth Brands, Inc. |
Condensed Consolidated Statements of
Operations |
(In thousands of dollars, except for share and per share
data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, 2022 |
|
September 30, 2021 |
|
September 30, 2022 |
|
September 30, 2021 |
Product revenues, net |
$ |
135,280 |
|
|
$ |
128,941 |
|
|
$ |
399,375 |
|
|
$ |
361,259 |
|
Cost of goods sold |
|
100,263 |
|
|
|
85,912 |
|
|
|
287,486 |
|
|
|
241,224 |
|
Gross profit |
|
35,017 |
|
|
|
43,029 |
|
|
|
111,889 |
|
|
|
120,035 |
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
23,566 |
|
|
|
24,838 |
|
|
|
76,314 |
|
|
|
85,573 |
|
Amortization of intangible
assets |
|
4,629 |
|
|
|
4,675 |
|
|
|
13,998 |
|
|
|
13,532 |
|
Restructuring and other
expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,503 |
|
|
|
|
|
|
|
|
|
Operating income |
|
6,822 |
|
|
|
13,516 |
|
|
|
21,577 |
|
|
|
16,427 |
|
|
|
|
|
|
|
|
|
Change in fair value of
warrant liabilities |
|
186 |
|
|
|
2,178 |
|
|
|
1,240 |
|
|
|
(425 |
) |
Interest expense, net |
|
(8,214 |
) |
|
|
(6,553 |
) |
|
|
(20,674 |
) |
|
|
(18,027 |
) |
Loss on extinguishment and
debt transaction costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,513 |
) |
Other income (expense),
net |
|
92 |
|
|
|
(780 |
) |
|
|
2,745 |
|
|
|
(280 |
) |
(Loss) income before income
taxes |
|
(1,114 |
) |
|
|
8,361 |
|
|
|
4,888 |
|
|
|
(7,818 |
) |
Provision (benefit) for income
taxes |
|
1,407 |
|
|
|
(445 |
) |
|
|
3,357 |
|
|
|
(8,294 |
) |
Net (loss) income |
$ |
(2,521 |
) |
|
$ |
8,806 |
|
|
$ |
1,531 |
|
|
$ |
476 |
|
|
|
|
|
|
|
|
|
Net (loss) earnings per
share: |
|
|
|
|
|
|
|
Basic |
$ |
(0.06 |
) |
|
$ |
0.23 |
|
|
$ |
0.04 |
|
|
$ |
0.01 |
|
Diluted |
$ |
(0.06 |
) |
|
$ |
0.17 |
|
|
$ |
0.04 |
|
|
$ |
0.01 |
|
Whole Earth Brands, Inc. |
Condensed Consolidated Statements of Cash
Flows |
(In thousands of dollars) |
(Unaudited) |
|
|
|
|
|
Nine Months Ended |
|
September 30, 2022 |
|
September 30, 2021 |
Operating
activities |
|
|
|
Net income |
$ |
1,531 |
|
|
$ |
476 |
|
Adjustments to reconcile net income to net cash (used in) provided
by operating activities: |
|
|
|
Stock-based compensation |
|
4,957 |
|
|
|
7,191 |
|
Depreciation |
|
4,324 |
|
|
|
3,230 |
|
Amortization of intangible assets |
|
13,998 |
|
|
|
13,532 |
|
Deferred income taxes |
|
(4,586 |
) |
|
|
2,210 |
|
Amortization of inventory fair value adjustments |
|
(2,537 |
) |
|
|
(882 |
) |
Non-cash loss on extinguishment of debt |
|
— |
|
|
|
4,435 |
|
Change in fair value of warrant liabilities |
|
(1,240 |
) |
|
|
425 |
|
Changes in current assets and liabilities: |
|
|
|
Accounts receivable |
|
(3,746 |
) |
|
|
(2,452 |
) |
Inventories |
|
(20,926 |
) |
|
|
(4,200 |
) |
Prepaid expenses and other current assets |
|
(1,972 |
) |
|
|
(894 |
) |
Accounts payable, accrued liabilities and income
taxes |
|
(5,196 |
) |
|
|
(16,706 |
) |
Other, net |
|
(1,871 |
) |
|
|
190 |
|
Net cash (used in) provided by
operating activities |
|
(17,264 |
) |
|
|
6,555 |
|
|
|
|
|
Investing
activities |
|
|
|
Capital expenditures |
|
(6,947 |
) |
|
|
(7,076 |
) |
Acquisitions, net of cash
acquired |
|
— |
|
|
|
(190,231 |
) |
Proceeds from the sale of
fixed assets |
|
50 |
|
|
|
4,257 |
|
Net cash used in investing
activities |
|
(6,897 |
) |
|
|
(193,050 |
) |
|
|
|
|
Financing
activities |
|
|
|
Proceeds from revolving credit
facility |
|
54,000 |
|
|
|
25,000 |
|
Repayments of revolving credit
facility |
|
— |
|
|
|
(47,855 |
) |
Long-term borrowings |
|
— |
|
|
|
375,000 |
|
Repayments of long-term
borrowings |
|
(2,812 |
) |
|
|
(138,376 |
) |
Debt issuance costs |
|
(682 |
) |
|
|
(11,589 |
) |
Payment of contingent
consideration |
|
(29,108 |
) |
|
|
— |
|
Proceeds from sale of common
stock and warrants |
|
— |
|
|
|
1 |
|
Tax withholdings related to
net share settlements of stock awards |
|
(874 |
) |
|
|
(115 |
) |
Net cash provided by financing
activities |
|
20,524 |
|
|
|
202,066 |
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents |
|
(3,813 |
) |
|
|
1,110 |
|
Net change in cash and
cash equivalents |
|
(7,450 |
) |
|
|
16,681 |
|
Cash and cash equivalents,
beginning of period |
|
28,296 |
|
|
|
16,898 |
|
Cash and cash equivalents, end
of period |
$ |
20,846 |
|
|
$ |
33,579 |
|
|
|
|
|
Supplemental
disclosure of cash flow information |
|
|
|
Interest paid |
$ |
19,161 |
|
|
$ |
15,627 |
|
Taxes paid, net of refunds |
$ |
7,510 |
|
|
$ |
3,999 |
|
Supplemental
disclosure of non-cash investing |
|
|
|
Non-cash capital expenditures |
$ |
— |
|
|
$ |
3,796 |
|
Whole Earth Brands, Inc. |
Adjusted EBITDA Reconciliation |
(In thousands of dollars) |
(Unaudited) |
|
|
Three Months Ended September 30, 2022 |
|
Three Months Ended September 30, 2021 |
|
Nine Months Ended September 30, 2022 |
|
Nine Months Ended September 30, 2021 |
Product revenues, net |
$ |
135,280 |
|
|
$ |
128,941 |
|
|
$ |
399,375 |
|
|
$ |
361,259 |
|
Net (loss) income |
$ |
(2,521 |
) |
|
$ |
8,806 |
|
|
$ |
1,531 |
|
|
$ |
476 |
|
Provision (benefit) for income taxes |
|
1,407 |
|
|
|
(445 |
) |
|
|
3,357 |
|
|
|
(8,294 |
) |
Other (income) expense, net |
|
(92 |
) |
|
|
780 |
|
|
|
(2,745 |
) |
|
|
280 |
|
Loss on extinguishment and debt transaction costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5,513 |
|
Interest expense, net |
|
8,214 |
|
|
|
6,553 |
|
|
|
20,674 |
|
|
|
18,027 |
|
Change in fair value of warrant liabilities |
|
(186 |
) |
|
|
(2,178 |
) |
|
|
(1,240 |
) |
|
|
425 |
|
Operating income |
|
6,822 |
|
|
|
13,516 |
|
|
|
21,577 |
|
|
|
16,427 |
|
Depreciation |
|
1,408 |
|
|
|
1,110 |
|
|
|
4,324 |
|
|
|
3,230 |
|
Amortization of intangible assets |
|
4,629 |
|
|
|
4,675 |
|
|
|
13,998 |
|
|
|
13,532 |
|
Purchase accounting adjustments |
|
- |
|
|
|
(2,608 |
) |
|
|
(2,537 |
) |
|
|
(882 |
) |
Transaction related expenses |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
415 |
|
Long term incentive plan |
|
1,743 |
|
|
|
2,711 |
|
|
|
4,957 |
|
|
|
7,729 |
|
Severance and related expenses |
|
783 |
|
|
|
- |
|
|
|
1,047 |
|
|
|
- |
|
Non-cash pension expense |
|
10 |
|
|
|
- |
|
|
|
30 |
|
|
|
- |
|
Public company readiness |
|
- |
|
|
|
555 |
|
|
|
- |
|
|
|
2,358 |
|
Restructuring |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4,503 |
|
M&A transaction expenses |
|
30 |
|
|
|
495 |
|
|
|
723 |
|
|
|
10,437 |
|
Supply chain reinvention |
|
5,354 |
|
|
|
1,072 |
|
|
|
13,334 |
|
|
|
1,763 |
|
Other items |
|
737 |
|
|
|
600 |
|
|
|
1,527 |
|
|
|
2,062 |
|
Adjusted EBITDA |
$ |
21,517 |
|
|
$ |
22,127 |
|
|
$ |
58,980 |
|
|
$ |
61,574 |
|
Whole Earth Brands, Inc.Constant
Currency Product Revenues, Net Reconciliation(In thousands
of dollars)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ change |
|
% change |
Product revenues, net |
|
2022 |
|
2021 |
Reported |
ConstantDollar |
Foreign Exchange (2) |
|
Reported |
Constant Dollar |
Foreign Exchange |
Branded CPG |
$ |
105,373 |
$ |
102,693 |
$ |
2,680 |
$ |
5,983 |
$ |
(3,303 |
) |
|
2.6 |
% |
5.9 |
% |
-3.2 |
% |
Flavors & Ingredients |
|
29,907 |
|
26,248 |
|
3,659 |
|
4,434 |
|
(775 |
) |
|
13.9 |
% |
16.9 |
% |
-3.0 |
% |
Combined |
$ |
135,280 |
$ |
128,941 |
$ |
6,339 |
$ |
10,417 |
$ |
(4,078 |
) |
|
4.9 |
% |
8.1 |
% |
-3.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ change |
|
% change |
Product revenues, net |
|
2022 |
|
2021 |
Reported |
ConstantDollar |
Foreign Exchange (2) |
|
Reported |
Constant Dollar |
Foreign Exchange |
Branded CPG |
$ |
313,207 |
$ |
283,585 |
$ |
29,622 |
$ |
37,740 |
$ |
(8,118 |
) |
|
10.4 |
% |
13.3 |
% |
-2.9 |
% |
Flavors & Ingredients |
|
86,168 |
|
77,674 |
|
8,494 |
|
10,098 |
|
(1,604 |
) |
|
10.9 |
% |
13.0 |
% |
-2.1 |
% |
Combined |
$ |
399,375 |
$ |
361,259 |
$ |
38,116 |
$ |
47,838 |
$ |
(9,722 |
) |
|
10.6 |
% |
13.2 |
% |
-2.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proforma Organic(1) |
|
|
|
|
|
|
|
|
|
Branded CPG |
$ |
313,207 |
$ |
303,959 |
$ |
9,248 |
$ |
17,366 |
$ |
(8,118 |
) |
|
3.0 |
% |
5.7 |
% |
-2.7 |
% |
Flavors & Ingredients |
|
86,168 |
|
77,674 |
|
8,494 |
|
10,098 |
|
(1,604 |
) |
|
10.9 |
% |
13.0 |
% |
-2.1 |
% |
Combined |
$ |
399,375 |
$ |
381,633 |
$ |
17,742 |
$ |
27,464 |
$ |
(9,722 |
) |
|
4.6 |
% |
7.2 |
% |
-2.5 |
% |
|
|
|
|
|
|
|
|
|
|
(1) Product revenues, net shown on a like for like basis, including
the impact of both acquisitions for all periods in both the current
and prior year periods. |
(2) The "foreign exchange" amounts presented, reflect the estimated
impact from fluctuations in foreign currency exchange rates on
product revenues. |
Whole Earth Brands, Inc.GAAP to
Adjusted EBITDA Reconciliation(In thousands of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2022 |
|
Three Months Ended September 30, 2021 |
|
|
|
|
|
GAAP |
Non-cash adj. |
Cash adj. |
Adjusted EBITDA |
|
GAAP |
Non-cash adj. |
Cash adj. |
Adjusted EBITDA |
|
|
$ Change |
% Change |
Product revenues, net |
$ |
135,280 |
|
$ |
- |
|
$ |
- |
|
$ |
135,280 |
|
|
$ |
128,941 |
|
$ |
- |
|
$ |
- |
|
$ |
128,941 |
|
|
|
$ |
6,339 |
|
4.9 |
% |
Cost of goods sold |
|
100,263 |
|
|
(1,635 |
) |
|
(5,070 |
) |
|
93,558 |
|
|
|
85,912 |
|
|
1,255 |
|
|
(1,597 |
) |
|
85,571 |
|
|
|
|
7,987 |
|
9.3 |
% |
Gross profit |
|
35,017 |
|
|
1,635 |
|
|
5,070 |
|
|
41,722 |
|
|
|
43,029 |
|
|
(1,255 |
) |
|
1,597 |
|
|
43,370 |
|
|
|
|
(1,648 |
) |
(3.8 |
%) |
Gross profit margin % |
|
25.9 |
% |
|
|
|
30.8 |
% |
|
|
33.4 |
% |
|
|
|
33.6 |
% |
|
|
|
(2.8 |
%) |
Selling, general and administrative expenses |
|
23,566 |
|
|
(2,253 |
) |
|
(1,107 |
) |
|
20,206 |
|
|
|
24,838 |
|
|
(2,543 |
) |
|
(1,051 |
) |
|
21,244 |
|
|
|
|
(1,038 |
) |
(4.9 |
%) |
Amortization of intangible assets |
|
4,629 |
|
|
(4,629 |
) |
|
- |
|
|
- |
|
|
|
4,675 |
|
|
(4,675 |
) |
|
- |
|
|
- |
|
|
|
|
- |
|
- |
|
Restructuring and other non-recurring expenses |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
- |
|
- |
|
Operating income |
$ |
6,822 |
|
$ |
8,517 |
|
$ |
6,178 |
|
$ |
21,517 |
|
|
$ |
13,516 |
|
$ |
5,963 |
|
$ |
2,647 |
|
$ |
22,127 |
|
|
|
$ |
(610 |
) |
(2.8 |
%) |
Operating margin % |
|
5.0 |
% |
|
|
|
15.9 |
% |
|
|
10.5 |
% |
|
|
|
17.2 |
% |
|
|
|
(1.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2022 |
|
Nine Months Ended September 30, 2021 |
|
|
|
|
|
GAAP |
Non-cash adj. |
Cash adj. |
Adjusted EBITDA |
|
GAAP |
Non-cash adj. |
Cash adj. |
Adjusted EBITDA |
|
|
$ Change |
% Change |
Product revenues, net |
$ |
399,375 |
|
$ |
- |
|
$ |
- |
|
$ |
399,375 |
|
|
$ |
361,259 |
|
$ |
- |
|
$ |
- |
|
$ |
361,259 |
|
|
|
$ |
38,116 |
|
10.6 |
% |
Cost of goods sold |
|
287,486 |
|
|
(3,132 |
) |
|
(12,190 |
) |
|
272,164 |
|
|
|
241,224 |
|
|
(2,518 |
) |
|
(2,878 |
) |
|
235,827 |
|
|
|
|
36,337 |
|
15.4 |
% |
Gross profit |
|
111,889 |
|
|
3,132 |
|
|
12,190 |
|
|
127,211 |
|
|
|
120,035 |
|
|
2,518 |
|
|
2,878 |
|
|
125,432 |
|
|
|
|
1,779 |
|
1.4 |
% |
Gross profit margin % |
|
28.0 |
% |
|
|
|
31.9 |
% |
|
|
33.2 |
% |
|
|
|
34.7 |
% |
|
|
|
(2.9 |
%) |
Selling, general and administrative expenses |
|
76,314 |
|
|
(5,892 |
) |
|
(2,191 |
) |
|
68,231 |
|
|
|
85,573 |
|
|
(9,058 |
) |
|
(12,657 |
) |
|
63,858 |
|
|
|
|
4,373 |
|
6.8 |
% |
Amortization of intangible assets |
|
13,998 |
|
|
(13,998 |
) |
|
- |
|
|
- |
|
|
|
13,532 |
|
|
(13,532 |
) |
|
- |
|
|
- |
|
|
|
|
- |
|
- |
|
Restructuring and other non-recurring expenses |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
4,503 |
|
|
(358 |
) |
|
(4,145 |
) |
|
- |
|
|
|
|
- |
|
- |
|
Operating income |
$ |
21,577 |
|
$ |
23,022 |
|
$ |
14,381 |
|
$ |
58,980 |
|
|
$ |
16,427 |
|
$ |
25,466 |
|
$ |
19,681 |
|
$ |
61,574 |
|
|
|
$ |
(2,594 |
) |
(4.2 |
%) |
Operating margin % |
|
5.4 |
% |
|
|
|
14.8 |
% |
|
|
4.5 |
% |
|
|
|
17.0 |
% |
|
|
|
(2.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Whole Earth Brands,
Inc.Adjustments to Operating Income by Income Statement
Line and Nature(In thousands of dollars)
|
Three Months Ended September 30, 2022 |
|
Three Months Ended September 30, 2021 |
Non-Cash adjustments |
Cost of Goods Sold |
SG&A |
Amort. Of Intangibles |
Restruct-uring |
Operating Income |
|
Cost of Goods Sold |
SG&A |
Amort. Of Intangibles |
Restruct-uring |
Operating Income |
Depreciation |
$ |
1,222 |
|
$ |
186 |
$ |
- |
$ |
- |
$ |
1,408 |
|
|
$ |
925 |
|
$ |
185 |
|
$ |
- |
$ |
- |
$ |
1,110 |
|
Amortization of intangible assets |
|
- |
|
|
- |
|
4,629 |
|
- |
|
4,629 |
|
|
|
- |
|
|
- |
|
|
4,675 |
$ |
- |
|
4,675 |
|
Restructuring |
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
|
|
- |
|
|
- |
|
|
- |
|
- |
|
- |
|
Non-cash pension expense |
|
- |
|
|
10 |
|
- |
|
- |
|
10 |
|
|
|
- |
|
|
- |
|
|
- |
|
- |
|
- |
|
Long term incentive plan |
|
(121 |
) |
|
1,865 |
|
- |
|
- |
|
1,743 |
|
|
|
375 |
|
|
2,336 |
|
|
- |
|
- |
|
2,711 |
|
Purchase accounting costs |
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
|
|
(2,608 |
) |
|
- |
|
|
- |
|
- |
|
(2,608 |
) |
Supply chain reinvention |
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
|
|
- |
|
|
- |
|
|
- |
|
- |
|
- |
|
Other items |
|
534 |
|
|
192 |
|
- |
|
- |
|
726 |
|
|
|
53 |
|
|
22 |
|
|
- |
|
- |
|
75 |
|
Total non-cash adjustments |
$ |
1,635 |
|
$ |
2,253 |
$ |
4,629 |
$ |
- |
$ |
8,517 |
|
|
$ |
(1,255 |
) |
$ |
2,543 |
|
$ |
4,675 |
$ |
- |
$ |
5,963 |
|
Cash adjustments |
|
|
|
|
|
|
|
|
|
|
|
Restructuring |
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
|
|
- |
|
|
- |
|
|
- |
|
- |
|
- |
|
Long term incentive plan |
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
|
|
- |
|
|
- |
|
|
- |
|
- |
|
- |
|
Transaction related expenses |
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
|
|
- |
|
|
- |
|
|
- |
|
- |
|
- |
|
Severance and related expenses |
|
102 |
|
|
681 |
|
- |
|
- |
|
783 |
|
|
|
- |
|
|
- |
|
|
- |
|
- |
|
- |
|
Public company readiness |
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
|
|
- |
|
|
555 |
|
|
- |
|
- |
|
555 |
|
M&A transaction expenses |
|
- |
|
|
30 |
|
- |
|
- |
|
30 |
|
|
|
- |
|
|
495 |
|
|
- |
|
- |
|
495 |
|
Supply chain reinvention |
|
4,969 |
|
|
385 |
|
- |
|
- |
|
5,354 |
|
|
|
1,072 |
|
|
- |
|
|
- |
|
- |
|
1,072 |
|
Other items |
|
- |
|
|
11 |
|
- |
|
- |
|
11 |
|
|
|
525 |
|
|
- |
|
|
- |
|
- |
|
525 |
|
Total cash adjustments |
$ |
5,070 |
|
$ |
1,107 |
$ |
- |
$ |
- |
$ |
6,178 |
|
|
$ |
1,597 |
|
$ |
1,051 |
|
$ |
- |
$ |
- |
$ |
2,647 |
|
Total adjustments |
$ |
6,705 |
|
$ |
3,360 |
$ |
4,629 |
$ |
- |
$ |
14,695 |
|
|
$ |
341 |
|
$ |
3,594 |
|
$ |
4,675 |
$ |
- |
$ |
8,611 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2022 |
|
Nine Months Ended September 30, 2021 |
Non-Cash adjustments |
Cost of Goods Sold |
SG&A |
Amort. Of Intangibles |
Restruct-uring |
Operating Income |
|
Cost of Goods Sold |
SG&A |
Amort. Of Intangibles |
Restruct-uring |
Operating Income |
Depreciation |
$ |
3,711 |
|
$ |
613 |
$ |
- |
$ |
- |
$ |
4,324 |
|
|
$ |
2,985 |
|
$ |
245 |
|
$ |
- |
$ |
- |
$ |
3,230 |
|
Amortization of intangible assets |
|
- |
|
|
- |
|
13,998 |
|
- |
|
13,998 |
|
|
|
- |
|
|
- |
|
|
13,532 |
|
- |
|
13,532 |
|
Restructuring |
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
|
|
- |
|
|
- |
|
|
- |
|
358 |
|
358 |
|
Non-cash pension expense |
|
- |
|
|
30 |
|
- |
|
- |
|
30 |
|
|
|
- |
|
|
- |
|
|
- |
|
- |
|
- |
|
Long term incentive plan |
|
163 |
|
|
4,795 |
|
- |
|
- |
|
4,958 |
|
|
|
274 |
|
|
7,551 |
|
|
- |
|
- |
|
7,826 |
|
Purchase accounting costs |
|
(2,537 |
) |
|
- |
|
- |
|
- |
|
(2,537 |
) |
|
|
(882 |
) |
|
- |
|
|
- |
|
- |
|
(882 |
) |
Supply chain reinvention |
|
772 |
|
|
- |
|
- |
|
- |
|
772 |
|
|
|
- |
|
|
- |
|
|
- |
|
- |
|
- |
|
Other items |
|
1,024 |
|
|
453 |
|
- |
|
- |
|
1,477 |
|
|
|
141 |
|
|
1,262 |
|
|
- |
|
- |
|
1,403 |
|
Total non-cash adjustments |
$ |
3,132 |
|
$ |
5,892 |
$ |
13,998 |
$ |
- |
$ |
23,022 |
|
|
$ |
2,518 |
|
$ |
9,058 |
|
$ |
13,532 |
$ |
358 |
$ |
25,466 |
|
Cash adjustments |
|
|
|
|
|
|
|
|
|
|
|
Restructuring |
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
|
|
- |
|
|
- |
|
|
- |
|
4,145 |
|
4,145 |
|
Long term incentive plan |
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
|
|
(22 |
) |
|
(75 |
) |
|
- |
|
- |
|
(97 |
) |
Transaction related expenses |
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
|
|
- |
|
|
415 |
|
|
- |
|
- |
|
415 |
|
Severance and related expenses |
|
102 |
|
|
945 |
|
- |
|
- |
|
1,047 |
|
|
|
- |
|
|
- |
|
|
- |
|
- |
|
- |
|
Public company readiness |
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
|
|
- |
|
|
2,358 |
|
|
- |
|
- |
|
2,358 |
|
M&A transaction expenses |
|
- |
|
|
723 |
|
- |
|
- |
|
723 |
|
|
|
- |
|
|
10,437 |
|
|
- |
|
- |
|
10,437 |
|
Supply chain reinvention |
|
12,088 |
|
|
473 |
|
- |
|
- |
|
12,562 |
|
|
|
1,763 |
|
|
- |
|
|
- |
|
- |
|
1,763 |
|
Other items |
|
- |
|
|
50 |
|
- |
|
- |
|
50 |
|
|
|
1,137 |
|
|
(477 |
) |
|
- |
|
- |
|
660 |
|
Total cash adjustments |
$ |
12,190 |
|
$ |
2,191 |
$ |
- |
$ |
- |
$ |
14,381 |
|
|
$ |
2,878 |
|
$ |
12,657 |
|
$ |
- |
$ |
4,145 |
$ |
19,681 |
|
Total adjustments |
$ |
15,322 |
|
$ |
8,083 |
$ |
13,998 |
$ |
- |
$ |
37,403 |
|
|
$ |
5,397 |
|
$ |
21,715 |
|
$ |
13,532 |
$ |
4,503 |
$ |
45,147 |
|
Non-cash adjustments: The Adjusted EBITDA
reconciliation includes certain transactions that are non-cash in
nature.
Cash adjustments: The Adjusted EBITDA
reconciliation includes certain transactions that are one-off,
non-recurring in nature, but have been or will be settled in
cash.
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