First Quarter Fiscal 2022
Highlights
- Net sales increased 13% to $984 million
- Income from operations declined 56% to $60 million
- Net income declined 67% to $30 million
- Diluted EPS declined 67% to $0.20 from $0.61
- Adjusted EBITDA including unconsolidated joint ventures(1)
declined 39% to $123 million
- Returned $60 million of cash to stockholders, including $34
million in dividends and $26 million in share repurchases
Updated FY 2022 Outlook
- Net sales growth above long-term target range of low-single
digits
- Net income and Adjusted EBITDA including joint ventures(1) to
be pressured through fiscal 2022
Lamb Weston Holdings, Inc. (NYSE: LW) announced today its fiscal
first quarter 2022 results.
“Our first quarter sales results reflect the ongoing broad
recovery within the frozen potato category, with overall demand in
North America near pre-pandemic levels, and our shipments improving
in each of our core restaurant and foodservice sales channels,”
said Tom Werner, President and CEO. “However, the impact of extreme
summer heat that negatively affected potato crops in the Pacific
Northwest, combined with industrywide operational challenges,
including highly inflationary input and transportation costs, labor
availability, and upstream and downstream supply chain disruptions,
will result in higher costs as the year progresses, and
significantly pressure our earnings. Accordingly, we expect our
gross profit margins to remain below pre-pandemic levels through
fiscal 2022.”
“Our experienced team is taking specific actions intended to
mitigate these challenges, most notably executing pricing actions
to offset commodity inflation, restructuring freight policies,
modifying production and crewing schedules to reduce labor
volatility, adopting new policies and practices to attract and
retain manufacturing employees, and rationalizing our product
portfolio. We expect our team’s focus on resolving these
challenges, as well as our investments in productivity, technology
and capacity to support customer growth, will have us back on track
to drive profitable growth and create value for our stakeholders
over the long term.”
Summary of First Quarter FY
2022 Results
($ in millions, except per
share)
Year-Over-Year
Q1 2022
Growth Rates
Net sales
$
984.2
13%
Income from operations
$
60.2
(56%)
Net income
$
29.8
(67%)
Diluted EPS
$
0.20
(67%)
Adjusted EBITDA including unconsolidated
joint ventures(1)
$
123.4
(39%)
Q1 2022 Commentary
Net sales increased $112.7 million to $984.2 million, up 13
percent versus the prior year quarter, with volume up 11 percent
and price/mix up 2 percent. The increase in sales volumes
predominantly reflected the recovery in demand for frozen potato
products outside the home, which more than offset the decline in
retail volume that largely resulted from lower shipments of private
label products resulting from incremental losses of certain
low-margin business, and as food-at-home purchases begin to
normalize to pre-pandemic levels. Pricing actions, including the
benefit of higher prices charged to customers for product delivery,
as well as favorable mix, drove the increase in price/mix in each
of the Company’s core business segments.
Income from operations declined $75.5 million to $60.2 million,
down 56 percent versus the prior year quarter, reflecting lower
gross profit and higher selling, general and administrative
expenses (“SG&A”). Gross profit declined $62.5 million, as the
benefit of increased sales volumes was more than offset by higher
manufacturing and distribution costs on a per-pound basis. The
higher costs per pound predominantly reflected double-digit cost
inflation from key inputs, particularly edible oils, and
transportation, particularly trucking and ocean freight. In
addition, the Company incurred higher manufacturing costs per pound
due to volatile labor availability, which was in part a result of
COVID-related absenteeism, that affected production run-rates and
throughput. The decline in gross profit also included a $5.6
million decrease in unrealized mark-to-market adjustments
associated with commodity hedging contracts, which includes a $1.2
million gain in the current quarter, compared with a $6.8 million
gain related to these items in the prior year quarter.
SG&A increased $13.0 million compared to the prior year
quarter, primarily due to investments to improve the Company’s
information technology, commercial, and supply chain operations
over the long term, as well as increased compensation and benefit
expenses. These investments included more than $4 million of
non-recurring expenses (primarily consulting expenses) associated
with a new enterprise resource planning system (“ERP”), compared to
approximately $1 million in the prior year quarter. In addition,
advertising and promotional expenses (“A&P”) increased $2.9
million, largely in support of the launch of new products in the
Retail segment.
Net income was $29.8 million, down $59.5 million versus the
prior year quarter, and Diluted EPS was $0.20, down $0.41 versus
the prior year quarter, driven by a decrease in income from
operations and equity method investment earnings.
Adjusted EBITDA including unconsolidated joint ventures(1)
declined $78.4 million to $123.4 million, down 39 percent versus
the prior year quarter, driven by lower income from operations and
equity method investment earnings.
The Company’s effective tax rate(2) in the first fiscal quarter
was 22.6 percent, versus 23.9 percent in the prior year period. The
Company’s effective tax rate varies from the U.S. statutory tax
rate of 21 percent principally due to the impact of U.S. state
taxes, foreign taxes, permanent differences, and discrete
items.
Q1 2022 Segment
Highlights
Global
Global Segment Summary
Year-Over-Year
Q1 2022
Growth Rates
Price/Mix
Volume
(dollars in millions)
Net sales
$
501.2
12%
2%
10%
Segment product contribution margin(3)
$
42.6
(45%)
Net sales for the Global segment, which is generally comprised
of the top 100 North American based quick service (“QSR”) and
full-service restaurant chain customers as well as all of the
Company’s international sales, increased $53.7 million to $501.2
million, up 12 percent versus the prior year quarter, with volume
up 10 percent and price/mix up 2 percent. The sales volumes
increase reflects the recovery in demand in the U.S. and in most of
the Company’s key international markets, as well as the benefit of
limited time product offerings. The increase in price/mix largely
reflected favorable price, including higher prices charged for
freight.
Global segment product contribution margin declined $35.2
million to $42.6 million, down 45 percent versus the prior year
quarter. Input and transportation cost inflation, as well as higher
manufacturing costs per pound, more than offset the benefit of
higher sales volumes and favorable price/mix.
Foodservice
Foodservice Segment
Summary
Year-Over-Year
Q1 2022
Growth Rates
Price/Mix
Volume
(dollars in millions)
Net sales
$
321.4
36%
1%
35%
Segment product contribution margin(3)
$
96.4
12%
Net sales for the Foodservice segment, which services North
American foodservice distributors and restaurant chains generally
outside the top 100 North American based restaurant chain
customers, increased $84.7 million to $321.4 million, up 36 percent
versus the prior year quarter, with volume up 35 percent and
price/mix up 1 percent. The continued recovery in demand at small
and regional chain restaurants, as well as independently-owned
restaurants, drove the increase in sales volumes. Shipments to
non-commercial customers, such as lodging and hospitality,
healthcare, schools and universities, sports and entertainment, and
workplace environments, also increased versus the prior year
quarter, but remained below pre-pandemic levels. Volume growth was
tempered by the inability to service full customer demand due to
lower production run-rates and throughput. The increase in
price/mix largely reflected favorable price, including higher
prices charged for freight.
Foodservice segment product contribution margin increased $10.6
million to $96.4 million, up 12 percent compared to the prior year
quarter. Higher sales volumes and favorable price/mix drove the
increase, and was partially offset by input and transportation cost
inflation, as well as higher manufacturing costs per pound.
Retail
Retail Segment Summary
Year-Over-Year
Q1 2022
Growth Rates
Price/Mix
Volume
(dollars in millions)
Net sales
$
132.5
(14%)
1%
(15%)
Segment product contribution margin(3)
$
14.8
(59%)
Net sales for the Retail segment, which includes sales of
branded and private label products to grocery, mass merchant and
club customers in North America, declined $21.4 million to $132.5
million, down 14 percent versus the prior year quarter, with volume
down 15 percent and price/mix up 1 percent. The sales volume
decline largely reflects lower shipments of private label products
resulting from incremental losses of certain low-margin business,
and to a lesser extent, a slight decline in branded product sales
volumes as food-at-home purchases began to normalize to
pre-pandemic levels. However, total shipments of the Company’s
branded products in the current quarter were well above
pre-pandemic levels. The increase in price/mix was largely driven
by favorable price, including higher prices charged for
freight.
Retail segment product contribution margin declined $21.0
million to $14.8 million, down 59 percent versus the prior year
quarter. Input and transportation cost inflation, higher
manufacturing costs per pound, lower sales volumes and a $2.1
million increase in A&P expenses to support new product
launches, drove the decline.
Equity Method Investment Earnings
Equity method investment earnings from unconsolidated joint
ventures in Europe, the U.S., and South America were $6.2 million
and $11.9 million for the first quarter of fiscal 2022 and 2021,
respectively. Equity method investment earnings included a $4.3
million unrealized gain related to mark-to-market adjustments
associated with currency and commodity hedging contracts in the
current quarter, compared to a $4.7 million unrealized gain related
to these items in the prior year quarter.
Excluding the mark-to-market adjustments, earnings from equity
method investments declined $5.3 million compared to the prior year
period. The earnings decline largely reflects input cost inflation
and higher manufacturing costs in Europe and the U.S.
Cash Flow and Liquidity
Net cash from operating activities was $161.8 million, down
$88.8 million versus the prior year. Capital expenditures,
including information technology expenditures, were $78.9 million,
up $45.7 million versus the prior year period reflecting increased
investments behind capacity expansion projects.
On August 11, 2021, the Company amended its revolving credit
facility to increase its capacity to $1.0 billion and to extend the
maturity date to August 11, 2026. In connection with the amendment,
the Company also amended its agreement with Northwest Farm Credit
Services to decrease the pricing applicable to one of its term
loans, as well as to modify certain other provisions, including
covenants, that correspond to the Company’s revolving credit
facility. At the end of the fiscal first quarter, no borrowings
were outstanding under the amended revolving credit facility, and
the Company had approximately $790 million of cash and cash
equivalents.
Capital Returned to Shareholders
In the first quarter, the Company returned a total of $60.4
million to shareholders, including $34.4 million in cash dividends
and $26.0 million through share repurchases. The average price per
share repurchased during the quarter was $65.86. The Company has
approximately $144 million remaining under its existing $250
million share repurchase authorization.
Fiscal 2022 Outlook
The Company continues to expect fiscal 2022 net sales growth
will be above its long-term target of low-to-mid single digits. The
Company continues to anticipate net sales growth in the second
quarter of fiscal 2022 will be driven largely by higher volume,
reflecting an ongoing recovery in demand for frozen potato
products, as well as a favorable comparison to relatively soft
shipments in the second quarter of fiscal 2021. The Company
continues to expect net sales growth in the second half of fiscal
2022 to reflect more of a balance of higher volume and improved
price/mix as recent pricing actions are fully implemented in the
market.
The Company expects net income and Adjusted EBITDA including
unconsolidated joint ventures will be pressured for the remainder
of fiscal 2022, as it manages through significant inflation for key
production inputs, packaging and transportation compared to fiscal
2021 levels, as well as industrywide operational challenges,
including labor availability, and upstream and downstream supply
chain disruptions, resulting from volatility in the broader supply
chain as the overall economy continues to recover from the
pandemic’s impact. In addition, the Company expects its potato
costs on a per pound basis will likely rise as the year progresses
due to the extreme summer heat that negatively affected the quality
of potato crops in the Pacific Northwest. Accordingly, the Company
expects gross margins to remain below pre-pandemic levels through
fiscal 2022. The Company previously expected earnings to gradually
approach pre-pandemic levels in the second half of fiscal 2022.
The Company continues to expect that ongoing investments in its
information technology, commercial, and supply chain will increase
operating expenses in the near term, but remains confident that
these investments will improve its ability to support growth and
margin improvement over the long term.
The Company continues to believe that its strong balance sheet
and ability to generate cash has it well-positioned to expand
production capacity to support long-term growth, including its
previously announced investments in the U.S. and China, as well as
to make strategic investments in its information technology
platform, including the second phase of its ERP project. Through
its joint venture in Europe, the Company also previously announced
investments to expand capacity in Russia and the Netherlands.
In addition, for fiscal 2022, the Company continues to
expect:
- Interest expense, net, of approximately $115 million, and
- Depreciation and amortization of approximately $190
million
The Company is reducing its estimate for its effective tax rate
to approximately 22 percent. The Company previously estimated its
effective tax rate would be at the low end of its long-term range
of 23 percent and 24 percent.
The Company is also reducing its estimate for cash used for
capital expenditures, excluding acquisitions, to approximately $450
million from its previous estimate of $650 million to $700 million,
due to the projected timing of expenditures related to certain
capacity expansion projects.
End Notes
(1)
Adjusted EBITDA including unconsolidated
joint ventures is a non-GAAP financial measure. Please see the
discussion of non-GAAP financial measures and the reconciliations
at the end of this press release for more information.
(2)
The effective tax rate is calculated as
the ratio of income tax expense to pre-tax income, inclusive of
equity method investment earnings.
(3)
For more information about product
contribution margin, please see “Non-GAAP Financial Measures” and
the table titled “Segment Information” included in this press
release.
Webcast and Conference Call
Information
Lamb Weston will host a conference call to review its first
quarter fiscal 2022 results at 10:00 a.m. EDT today, October 7,
2021. Participants in the U.S. and Canada may access the conference
call by dialing 800- 437-2398 and participants outside the U.S. and
Canada should dial +1-323-289-6576. The confirmation code is
8966326. The conference call also may be accessed live on the
internet. Participants can register for the event at:
https://globalmeet.webcasts.com/starthere.jsp?ei=1497340&tp_key=7a0b76067a.
A rebroadcast of the conference call will be available beginning
on Friday, October 8, 2021 after 2:00 p.m. EDT at
https://investors.lambweston.com/events-and-presentations.
About Lamb Weston
Lamb Weston, along with its joint venture partners, is a leading
supplier of frozen potato, sweet potato, appetizer and vegetable
products to restaurants and retailers around the world. For more
than 70 years, Lamb Weston has led the industry in innovation,
introducing inventive products that simplify back-of-house
management for its customers and make things more delicious for
their customers. From the fields where Lamb Weston potatoes are
grown to proactive customer partnerships, Lamb Weston always
strives for more and never settles. Because, when we look at a
potato, we see possibilities. Learn more about us at
lambweston.com.
Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. Words such as “expect,”
“improve,” “believe,” “will,” “continue,” ‘take,” “remain,”
“support,” “anticipate,” “drive,” “create,” “manage,” “increase,”
“generate,” “expand,” “outlook,” and variations of such words and
similar expressions are intended to identify forward-looking
statements. Examples of forward-looking statements include, but are
not limited to, statements regarding the Company’s plans,
execution, capital expenditures and investments, operational costs
and business outlook and prospects, as well as the impact of the
COVID-19 pandemic on the Company’s industry and the global economy.
These forward-looking statements are based on management’s current
expectations and are subject to uncertainties and changes in
circumstances. Readers of this press release should understand that
these statements are not guarantees of performance or results. Many
factors could affect the Company’s actual financial results and
cause them to vary materially from the expectations contained in
the forward-looking statements, including those set forth in this
press release. These risks and uncertainties include, among other
things: impacts on the Company’s business due to health pandemics
or other contagious outbreaks, such as the COVID-19 pandemic,
including impacts on demand for its products, increased costs,
disruption of supply or other constraints in the availability of
key commodities and other necessary services; the availability and
prices of raw materials; levels of pension, labor and
people-related expenses; the Company’s ability to successfully
execute its long-term value creation strategies; the Company’s
ability to execute on large capital projects, including
construction of new production lines or facilities; the competitive
environment and related conditions in the markets in which the
Company and its joint ventures operate; political and economic
conditions of the countries in which the Company and its joint
ventures conduct business and other factors related to its
international operations; disruption of the Company’s access to
export mechanisms; risks associated with possible acquisitions,
including the Company’s ability to complete acquisitions or
integrate acquired businesses; its debt levels; changes in the
Company’s relationships with its growers or significant customers;
the success of the Company’s joint ventures; actions of governments
and regulatory factors affecting the Company’s businesses or joint
ventures; the ultimate outcome of litigation or any product
recalls; the Company’s ability to pay regular quarterly cash
dividends and the amounts and timing of any future dividends; and
other risks described in the Company’s reports filed from time to
time with the Securities and Exchange Commission. The Company
cautions readers not to place undue reliance on any forward-looking
statements included in this press release, which speak only as of
the date of this press release. The Company undertakes no
responsibility for updating these statements, except as required by
law.
Non-GAAP Financial
Measures
To supplement the financial information included in this press
release, the Company has presented product contribution margin on a
consolidated basis, Adjusted EBITDA, and Adjusted EBITDA including
unconsolidated joint ventures, each of which is considered a
non-GAAP financial measure.
The non-GAAP financial measures provided should be viewed in
addition to, and not as an alternative for, financial measures
prepared in accordance with accounting principles generally
accepted in the United States of America ("GAAP") that are
presented in this press release. These measures are not substitutes
for their comparable GAAP financial measures, such as gross profit,
net income, or other measures prescribed by GAAP, and there are
limitations to using non-GAAP financial measures. The non-GAAP
financial measures presented may differ from similarly titled
non-GAAP financial measures presented by other companies, and other
companies may not define these non-GAAP financial measures the same
way.
Management uses these non-GAAP financial measures to assist in
comparing the Company's performance on a consistent basis for
purposes of business decision making. Management believes that
presenting these non-GAAP financial measures provides investors
with useful information because they (i) provide meaningful
supplemental information regarding financial performance by
excluding certain items affecting comparability between periods,
(ii) permit investors to view performance using the same tools that
management uses to budget, make operating and strategic decisions,
and evaluate historical performance, and (iii) otherwise provide
supplemental information that may be useful to investors in
evaluating the Company's results. The Company believes that the
presentation of these non-GAAP financial measures, when considered
together with the corresponding GAAP financial measures and the
reconciliations to those measures, provides investors with
additional understanding of the factors and trends affecting the
Company's business than could be obtained absent these
disclosures.
Lamb Weston Holdings,
Inc.
Consolidated Statements of
Earnings
(unaudited, in millions, except
per share amounts)
Thirteen Weeks Ended
August 29,
August 30,
2021
2020
Net sales
$
984.2
$
871.5
Cost of sales
832.9
657.7
Gross profit
151.3
213.8
Selling, general and administrative
expenses
91.1
78.1
Income from operations
60.2
135.7
Interest expense, net
27.9
30.3
Income before income taxes and equity
method earnings
32.3
105.4
Income tax expense
8.7
28.0
Equity method investment earnings
6.2
11.9
Net income
$
29.8
$
89.3
Earnings per share
Basic
$
0.20
$
0.61
Diluted
$
0.20
$
0.61
Dividends declared per common share
$
0.235
$
0.230
Weighted average common shares
outstanding:
Basic
146.3
146.3
Diluted
146.9
147.1
Computation of diluted earnings per
share:
Net income
$
29.8
$
89.3
Diluted weighted average common shares
outstanding
146.9
147.1
Diluted earnings per share
$
0.20
$
0.61
Lamb Weston Holdings,
Inc.
Consolidated Balance
Sheets
(unaudited, dollars in millions,
except share data)
August 29,
May 30,
2021
2021
ASSETS
Current assets:
Cash and cash equivalents
$
789.7
$
783.5
Receivables, less allowance for doubtful
accounts of $1.1 and $0.9
401.3
366.9
Inventories
469.2
513.5
Prepaid expenses and other current
assets
74.8
117.8
Total current assets
1,735.0
1,781.7
Property, plant and equipment, net
1,565.7
1,524.0
Operating lease assets
135.1
141.7
Equity method investments
298.8
310.2
Goodwill
323.5
334.5
Intangible assets, net
35.8
36.9
Other assets
82.4
80.4
Total assets
$
4,176.3
$
4,209.4
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Current portion of long-term debt and
financing obligations
$
32.0
$
32.0
Accounts payable
380.4
359.3
Accrued liabilities
237.6
226.9
Total current liabilities
650.0
618.2
Long-term liabilities:
Long-term debt and financing obligations,
excluding current portion
2,698.6
2,705.4
Deferred income taxes
159.7
159.7
Other noncurrent liabilities
240.6
245.5
Total long-term liabilities
3,098.9
3,110.6
Commitments and contingencies
Stockholders' equity:
Common stock of $1.00 par value,
600,000,000 shares authorized; 148,016,633 and 147,640,632 shares
issued
148.0
147.6
Additional distributed capital
(830.2
)
(836.8
)
Retained earnings
1,240.0
1,244.6
Accumulated other comprehensive income
7.3
29.5
Treasury stock, at cost, 1,955,617 and
1,448,768 common shares
(137.7
)
(104.3
)
Total stockholders' equity
427.4
480.6
Total liabilities and stockholders’
equity
$
4,176.3
$
4,209.4
Lamb Weston Holdings,
Inc.
Consolidated Statements of
Cash Flows
(unaudited, dollars in
millions)
Thirteen Weeks Ended
August 29,
August 30,
2021
2020
Cash flows from operating
activities
Net income
$
29.8
$
89.3
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization of
intangibles and debt issuance costs
47.3
46.9
Stock-settled, stock-based compensation
expense
5.2
6.0
Distributions (earnings) of joint
ventures, net
3.5
(9.2
)
Deferred income taxes
1.7
1.9
Other
1.5
10.8
Changes in operating assets and
liabilities:
Receivables
(35.1
)
9.1
Inventories
43.4
18.0
Income taxes payable/receivable, net
9.7
29.0
Prepaid expenses and other current
assets
33.0
38.0
Accounts payable
10.0
18.7
Accrued liabilities
11.8
(7.9
)
Net cash provided by operating
activities
$
161.8
$
250.6
Cash flows from investing
activities
Additions to property, plant and
equipment
(78.9
)
(20.6
)
Additions to other long-term assets
—
(12.6
)
Other
0.1
0.1
Net cash used for investing
activities
$
(78.8
)
$
(33.1
)
Cash flows from financing
activities
Dividends paid
(34.4
)
(33.6
)
Repurchase of common stock and common
stock withheld to cover taxes
(33.4
)
(9.6
)
Repayments of debt and financing
obligations
(7.9
)
(9.2
)
Repayments of short-term borrowings,
net
—
(498.1
)
Other
(0.1
)
0.3
Net cash used for financing
activities
$
(75.8
)
$
(550.2
)
Effect of exchange rate changes on cash
and cash equivalents
(1.0
)
1.2
Net increase (decrease) in cash and
cash equivalents
6.2
(331.5
)
Cash and cash equivalents, beginning of
period
783.5
1,364.0
Cash and cash equivalents, end of
period
$
789.7
$
1,032.5
Lamb Weston Holdings,
Inc.
Segment Information
(unaudited, dollars in
millions)
Thirteen Weeks Ended
Year-Over-
August 29,
August 30,
Year Growth
2021
2020
Rates
Price/Mix
Volume
Segment sales
Global
$
501.2
$
447.5
12%
2%
10%
Foodservice
321.4
236.7
36%
1%
35%
Retail
132.5
153.9
(14%)
1%
(15%)
Other
29.1
33.4
(13%)
10%
(23%)
$
984.2
$
871.5
13%
2%
11%
Segment product contribution margin
(1)
Global
$
42.6
$
77.8
(45%)
Foodservice
96.4
85.8
12%
Retail
14.8
35.8
(59%)
Other
(6.6)
13.2
(150%)
147.2
212.6
(31%)
Add: Advertising and promotion
expenses
4.1
1.2
242%
Gross profit
$
151.3
$
213.8
(29%)
_________________________________ (1)
Product contribution margin is one of the primary measures
reported to the Company’s chief operating decision maker for
purposes of allocating resources to the Company’s segments and
assessing their performance. Product contribution margin represents
net sales less cost of sales and advertising and promotion
expenses. Product contribution margin includes advertising and
promotion expenses because those expenses are directly associated
with the performance of the Company’s segments. Product
contribution margin, when presented on a consolidated basis, is a
non-GAAP financial measure. See “Non-GAAP Financial Measures” in
this press release for a description of non-GAAP financial measures
and the table above for a reconciliation of product contribution
margin on a consolidated basis to gross profit.
Lamb Weston Holdings,
Inc.
Reconciliation of Non-GAAP
Financial Measures
(unaudited, dollars in
millions)
To supplement the financial information
included in this press release, the Company has presented Adjusted
EBITDA and Adjusted EBITDA including unconsolidated joint ventures,
which are non-GAAP financial measures. The following table
reconciles net income to Adjusted EBITDA and Adjusted EBITDA
including unconsolidated joint ventures.
Thirteen Weeks Ended
August 29,
August 30,
2021
2020
Net income
$
29.8
$
89.3
Equity method investment earnings
(6.2
)
(11.9
)
Interest expense, net
27.9
30.3
Income tax expense
8.7
28.0
Income from operations
60.2
135.7
Depreciation and amortization
46.0
45.6
Adjusted EBITDA (1)
106.2
181.3
Unconsolidated Joint Ventures (2)
Equity method investment earnings
6.2
11.9
Interest expense, income tax expense, and
depreciation and
amortization included in equity method
investment earnings
11.0
8.6
Add: Adjusted EBITDA from unconsolidated
joint ventures
17.2
20.5
Adjusted EBITDA including unconsolidated
joint ventures (1)
$
123.4
$
201.8
_________________________________ (1)
Adjusted EBITDA and Adjusted EBITDA including unconsolidated
joint ventures are non-GAAP financial measures. Lamb Weston
presents these measures because the Company believes they provide a
means to evaluate the performance of the Company on an ongoing
basis using the same measure frequently used by the Company’s
management and assist in providing a meaningful comparison between
periods. Any analysis of non-GAAP financial measures should be done
only in conjunction with results presented in accordance with GAAP.
These non-GAAP financial measures are not intended to be a
substitute for GAAP financial measures and should not be used as
such. See also “Non-GAAP Financial Measures” in this press
release.
(2)
Lamb Weston holds equity interests in three potato processing
joint ventures, including 50% of Lamb-Weston/Meijer v.o.f.,
Lamb-Weston/RDO Frozen, and Lamb Weston Alimentos Modernos S.A.,
which it accounts for its ownership under the equity method of
accounting. See Note 4, Investments in Joint Ventures, of the Notes
to Consolidated Financial Statements in “Part II, Item 8. Financial
Statements and Supplementary Data” in the Company’s fiscal 2021
Form 10-K, for more information.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211007005248/en/
Investors: Dexter Congbalay 224-306-1535
dexter.congbalay@lambweston.com
Media: Shelby Stoolman 208-424-5461
shelby.stoolman@lambweston.com
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