Freshpet, Inc. (“Freshpet” or the “Company”) (Nasdaq: FRPT) today
reported financial results for its second quarter ended June 30,
2024.
Second Quarter 2024 Financial Highlights
Compared to Prior Year Period
- Net sales of $235.3 million, an
increase of 28.3%.
- Net loss of $1.7 million, compared to the prior year period net
loss of $17.0 million.
- Gross margin of 39.9%, compared to the prior year period of
32.3%.
- Adjusted Gross Margin of 45.9%, compared to the prior year
period of 39.8%.1
- Adjusted EBITDA of $35.1 million, compared to the prior year
period of $9.0 million.1
"Freshpet is delivering disciplined growth. That
has enabled us to significantly improve profitability while
continuing to deliver category-leading net sales growth. The
momentum we have today gives us even greater confidence in our
ability to achieve our 2027 targets, a number of which we have
already exceeded,” commented Billy Cyr, Freshpet’s Chief Executive
Officer. “We are raising our net sales and Adjusted EBITDA guidance
for the year to reflect our outperformance in the first half, as
well as our conviction in our ability to execute in the second half
of the year. If we continue to deliver the kind of disciplined
growth we have achieved so far this year, we believe we will create
meaningful shareholder value in a way that serves pets, people, and
the planet."
Second Quarter 2024
Net sales increased 28.3% to $235.3 million for
the second quarter of 2024 compared to $183.3 million for the prior
year period. The increase in net sales was entirely driven by
volume gains of 28.3%.
Gross profit was $94.0 million, or 39.9% as a
percentage of net sales, for the second quarter of 2024, compared
to $59.2 million, or 32.3% as a percentage of net sales, for the
prior year period. The increase in reported gross profit as a
percentage of net sales was primarily due to lower input costs,
reduced quality costs, and improved leverage on plant expenses. For
the second quarter of 2024, Adjusted Gross Profit was $108.0
million, or 45.9% as a percentage of net sales, compared to $73.0
million, or 39.8% as a percentage of net sales, for the prior year
period.1
Selling, general and administrative expenses
(“SG&A”) were $95.7 million for the second quarter of 2024
compared to $76.0 million for the prior year period. As a
percentage of net sales, SG&A decreased to 40.7% for the second
quarter of 2024 compared to 41.5% for the prior year period.
SG&A as a percentage of net sales decreased by 80 basis points,
primarily due to reduced logistics costs and media as a percentage
of net sales, offset by higher share-based compensation. Adjusted
SG&A for the second quarter of 2024 was $72.9 million, or 31.0%
as a percentage of net sales, compared to $64.0 million, or 34.9%
as a percentage of net sales, for the prior year period.1
- Adjusted Gross
Margin, Adjusted Gross Profit, Adjusted SG&A and Adjusted
EBITDA are non-GAAP financial measures. See "Non-GAAP Measures" for
how the Company defines these measures and the financial tables
that accompany this release for reconciliations of these measures
to the closest comparable GAAP measures.
Net loss was $1.7 million for the second quarter
of 2024 compared to net loss of $17.0 million for the prior year
period. The decrease in net loss was due to contribution from
higher sales, improved gross margin, and reduced logistics costs as
a percentage of net sales, partially offset by increased SG&A
expenses.
Adjusted EBITDA was $35.1 million for the second
quarter of 2024 compared to $9.0 million for the prior year
period.1 The increase in Adjusted EBITDA was a result of increased
Adjusted Gross Profit partially offset by higher Adjusted SG&A
expenses.
First Six Months of 2024
Net sales increased 30.9% to $459.1 million for
the first six months of 2024 compared to $350.9 million for the
prior year period. The increase in net sales was primarily driven
by volume gains of 29.4%.
Gross profit was $182.1 million, or 39.7% as a
percentage of net sales, for the first six months of 2024, compared
to $110.0 million, or 31.4% as a percentage of net sales, for the
prior year period. The increase in reported gross profit as a
percentage of net sales was primarily due to lower input costs,
reduced quality costs, and improved leverage on plant expenses. For
the first six months of 2024, Adjusted Gross Profit was $209.5
million, or 45.6% as a percentage of net sales, compared to $137.5
million, or 39.2% as a percentage of net sales, for the prior year
period.1
Selling, general and administrative expenses
(“SG&A”) were $175.4 million for the first six months of 2024
compared to $148.3 million for the prior year period. As a
percentage of net sales, SG&A decreased to 38.2% for the first
six months of 2024 compared to 42.3% for the prior year period.
SG&A as a percentage of net sales decreased by 410 basis
points, primarily due to reduced logistics costs and media as a
percentage of net sales, offset by higher share-based compensation.
Adjusted SG&A for the first six months of 2024 was $143.8
million, or 31.3% as a percentage of net sales, compared to $125.5
million, or 35.8% as a percentage of net sales, for the prior year
period.1
Net income was $16.9 million for the first six
months of 2024 compared to a net loss of $41.7 million for the
prior year period. The improvement in net income was due to
contribution from higher sales, improved gross margin, reduced
logistics costs as a percentage of net sales, and gain on equity
investment, partially offset by increased SG&A expenses.
Adjusted EBITDA was $65.7 million for the first
six months of 2024, compared to $12.0 million for the prior year
period.1 The increase in Adjusted EBITDA was a result of increased
Adjusted Gross Profit partially offset by higher Adjusted SG&A
expenses.
Balance Sheet
As of June 30, 2024, the Company had cash
and cash equivalents of $251.7 million with $394.1 million of debt
outstanding net of $8.4 million of unamortized debt issuance costs.
For the six months ended June 30, 2024, cash from operations was
$47.8 million, an increase of $48.1 million compared to the prior
year period.
The Company will utilize its balance sheet to
support its ongoing capital needs in connection with its long-term
capacity plan.
Outlook
For full year 2024, the Company is updating its
guidance and now expects the following:
- Net sales of at
least $965 million, an increase of at least 26% from 2023, compared
to at least $950 million in the previous guidance;
- Adjusted EBITDA of
at least $140 million, compared to at least $120 million in the
previous guidance; and
- Capital
expenditures of ~$200 million, compared to ~$210 million in the
previous guidance.
The Company does not provide guidance for net
income (loss), the U.S. GAAP measure most directly comparable to
Adjusted EBITDA, and similarly cannot provide a reconciliation
between its forecasted Adjusted EBITDA and net income (loss)
metrics without unreasonable effort due to the unavailability of
reliable estimates for certain components of net income (loss) and
the respective reconciliations, including the timing of and amount
of costs of goods sold and selling, general and administrative
expenses. These items are not within the Company's control and may
vary greatly between periods and could significantly impact future
results.
Conference Call & Earnings
Presentation Webcast Information As previously announced,
today, August 5, 2024, the Company will host a conference call
beginning at 8:00 a.m. Eastern Time with members of its leadership
team. The conference call webcast will be available live over the
Internet through the "Investors" section of the Company's website
at www.freshpet.com. To participate on the live call, listeners in
North America may dial (877) 407-0792 and international listeners
may dial (201) 689-8263.
A replay of the conference call will be archived
on the Company's website and telephonic playback will be available
from 12:00 p.m. Eastern Time today through August 19, 2024. North
American listeners may dial (844) 512-2921 and international
listeners may dial (412) 317-6671; the passcode is 13747795.
About Freshpet Freshpet’s
mission is to improve the lives of dogs and cats through the power
of fresh, real food. Freshpet foods are blends of fresh meats,
vegetables and fruits farmed locally and made at our Freshpet
Kitchens. We thoughtfully prepare our foods using natural
ingredients, cooking them in small batches at lower temperatures to
preserve the natural goodness of the ingredients. Freshpet foods
and treats are kept refrigerated from the moment they are made
until they arrive at Freshpet Fridges in your local market.
Our foods are available in select grocery, mass,
digital, pet specialty, and club retailers across the United
States, Canada and Europe. From the care we take to source our
ingredients and make our food, to the moment it reaches your home,
our integrity, transparency and social responsibility are the way
we like to run our business. To learn more, visit
www.freshpet.com.
Connect with Freshpet:
https://www.facebook.com/Freshpet
https://x.com/Freshpet
http://instagram.com/Freshpet
http://pinterest.com/Freshpet
https://www.tiktok.com/@Freshpet
https://www.youtube.com/user/freshpet400
Forward Looking Statements
Certain statements in this release constitute
“forward-looking” statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including statements
relating to our ability to achieve our 2027 targets, create
meaningful shareholder value, and guidance with respect to 2024 net
sales, Adjusted EBITDA and capital expenditures. These statements
are based on management's current opinions, expectations, beliefs,
plans, objectives, assumptions or projections regarding future
events or future results. While Freshpet believes that its
assumptions are reasonable, it is very difficult to predict the
impact of known factors, and, of course, it is impossible to
anticipate all factors that could affect actual results. There are
several risks and uncertainties which could cause actual results,
performance, and achievements to differ materially from those
stated or implied by the forward-looking statements described
herein, including, most prominently, the risks discussed under the
heading “Risk Factors” in the Company's latest annual report on
Form 10-K and its quarterly reports on Form 10-Q filed with the
Securities and Exchange Commission. Such forward-looking statements
are made only as of the date of this release. Freshpet undertakes
no obligation to publicly update or revise any forward-looking
statement because of new information, future events or otherwise,
except as otherwise required by law. If we do update one or more
forward-looking statements, no inference should be made that we
will make additional updates with respect to those or other
forward-looking statements.
Non-GAAP Financial Measures
Freshpet uses the following non-GAAP financial
measures in its financial communications. These non-GAAP financial
measures should be considered as supplements to the U.S. GAAP
reported measures, should not be considered replacements for, or
superior to, the U.S. GAAP measures and may not be comparable to
similarly named measures used by other companies.
- Adjusted Gross Profit
- Adjusted Gross Profit as a percentage
of net sales (Adjusted Gross Margin)
- Adjusted SG&A Expenses
- Adjusted SG&A Expenses as a
percentage of net sales
- EBITDA
- Adjusted EBITDA
- Adjusted EBITDA as a percentage of net
sales
Adjusted Gross Profit: Freshpet defines Adjusted
Gross Profit as gross profit before depreciation expense, non-cash
share-based compensation and loss on disposal of manufacturing
equipment.
Adjusted SG&A Expenses: Freshpet defines
Adjusted SG&A as SG&A expenses before depreciation and
amortization expense, non-cash share-based compensation,
implementation and other costs associated with the implementation
of an enterprise resource planning ("ERP") system, fees related to
the capped call transactions, loss on disposal of equipment, and
advisory fees related to activism engagement.
EBITDA and Adjusted EBITDA: EBITDA represents
net income (loss) plus interest expense net of interest income,
income tax expense and depreciation and amortization expense, and
Adjusted EBITDA represents EBITDA plus loss on equity method
investment, gain on equity investment, non-cash share-based
compensation expense, implementation and other costs associated
with the implementation of an ERP system, loss on disposal of
property, plant and equipment, fees related to the capped call
transactions, and advisory fees related to activism engagement.
Management believes that the non-GAAP financial
measures are meaningful to investors because they provide a view of
the Company with respect to ongoing operating results. The non-GAAP
financial measures are shown as supplemental disclosures in this
release because they are widely used by the investment community
for analysis and comparative evaluation. They also provide
additional metrics to evaluate the Company’s operations and, when
considered with both the Company’s GAAP results and the
reconciliation to the most comparable U.S. GAAP measures, provide a
more complete understanding of the Company’s business than could be
obtained absent this disclosure. The non-GAAP measures are not and
should not be considered an alternative to the most comparable U.S.
GAAP measures or any other figure calculated in accordance with
U.S. GAAP, or as an indicator of operating performance. The
Company’s calculation of the non-GAAP financial measures may differ
from methods used by other companies. Management believes that the
non-GAAP measures are important to an understanding of the
Company's overall operating results in the periods presented. The
non-GAAP financial measures are not recognized in accordance with
U.S. GAAP and should not be viewed as an alternative to U.S. GAAP
measures of performance.
|
|
FRESHPET, INC. AND SUBSIDIARIESCONDENSED
CONSOLIDATED BALANCE SHEETS(Unaudited, in thousands,
except per share data) |
|
|
|
June 30,2024 |
|
December 31,2023 |
ASSETS |
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
Cash and cash equivalents |
|
$ |
251,699 |
|
|
$ |
296,871 |
|
Accounts receivable, net of allowance for doubtful accounts |
|
|
68,156 |
|
|
|
56,754 |
|
Inventories, net |
|
|
73,252 |
|
|
|
63,238 |
|
Prepaid expenses |
|
|
8,566 |
|
|
|
7,615 |
|
Other current assets |
|
|
3,547 |
|
|
|
2,841 |
|
Total Current Assets |
|
|
405,220 |
|
|
|
427,319 |
|
Property, plant and equipment,
net |
|
|
1,032,730 |
|
|
|
979,164 |
|
Deposits on equipment |
|
|
1,109 |
|
|
|
1,895 |
|
Operating lease right of use
assets |
|
|
2,851 |
|
|
|
3,616 |
|
Long term investment in equity
securities |
|
|
33,446 |
|
|
|
23,528 |
|
Other assets |
|
|
30,975 |
|
|
|
28,899 |
|
Total Assets |
|
$ |
1,506,331 |
|
|
$ |
1,464,421 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
Accounts payable |
|
$ |
34,051 |
|
|
$ |
36,096 |
|
Accrued expenses |
|
|
52,884 |
|
|
|
49,816 |
|
Current operating lease liabilities |
|
|
1,034 |
|
|
|
1,312 |
|
Current finance lease liabilities |
|
|
2,031 |
|
|
|
1,998 |
|
Total Current Liabilities |
|
$ |
90,000 |
|
|
$ |
89,222 |
|
Convertible senior notes |
|
|
394,108 |
|
|
|
393,074 |
|
Long term operating lease
liabilities |
|
|
2,064 |
|
|
|
2,591 |
|
Long term finance lease
liabilities |
|
|
24,355 |
|
|
|
26,080 |
|
Total Liabilities |
|
$ |
510,527 |
|
|
$ |
510,967 |
|
Commitments and
contingencies |
|
|
— |
|
|
|
— |
|
STOCKHOLDERS' EQUITY: |
|
|
|
|
Common stock — voting, $0.001 par value, 200,000 shares authorized,
48,493 issued and 48,479 outstanding on June 30, 2024, and 48,277
issued and 48,263 outstanding on December 31, 2023 |
|
|
48 |
|
|
|
48 |
|
Additional paid-in capital |
|
|
1,308,623 |
|
|
|
1,282,984 |
|
Accumulated deficit |
|
|
(311,823 |
) |
|
|
(328,731 |
) |
Accumulated other comprehensive loss |
|
|
(788 |
) |
|
|
(591 |
) |
Treasury stock, at cost — 14 shares on June 30, 2024 and on
December 31, 2023 |
|
|
(256 |
) |
|
|
(256 |
) |
Total Stockholders'
Equity |
|
|
995,804 |
|
|
|
953,454 |
|
Total Liabilities and
Stockholders' Equity |
|
$ |
1,506,331 |
|
|
$ |
1,464,421 |
|
|
FRESHPET, INC. AND SUBSIDIARIESCONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)
INCOME(Unaudited, in thousands, except per share
data) |
|
|
|
For the Three Months EndedJune
30, |
|
For the Six Months EndedJune
30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
NET SALES |
|
$ |
235,253 |
|
|
$ |
183,331 |
|
|
$ |
459,102 |
|
|
$ |
350,853 |
|
COST OF GOODS SOLD |
|
|
141,301 |
|
|
|
124,087 |
|
|
|
276,992 |
|
|
|
240,849 |
|
GROSS PROFIT |
|
|
93,952 |
|
|
|
59,244 |
|
|
|
182,110 |
|
|
|
110,004 |
|
SELLING, GENERAL, AND
ADMINISTRATIVE EXPENSES |
|
|
95,702 |
|
|
|
75,996 |
|
|
|
175,396 |
|
|
|
148,267 |
|
(LOSS) INCOME FROM
OPERATIONS |
|
|
(1,750 |
) |
|
|
(16,752 |
) |
|
|
6,714 |
|
|
|
(38,263 |
) |
OTHER INCOME (EXPENSES): |
|
|
|
|
|
|
|
|
Interest and Other Income, net |
|
|
2,861 |
|
|
|
4,108 |
|
|
|
6,195 |
|
|
|
5,055 |
|
Interest Expense |
|
|
(2,751 |
) |
|
|
(3,329 |
) |
|
|
(5,811 |
) |
|
|
(6,501 |
) |
Gain on Equity Investment |
|
|
— |
|
|
|
— |
|
|
|
9,918 |
|
|
|
— |
|
|
|
|
110 |
|
|
|
779 |
|
|
|
10,302 |
|
|
|
(1,446 |
) |
(LOSS) INCOME BEFORE INCOME
TAXES |
|
|
(1,640 |
) |
|
|
(15,972 |
) |
|
|
17,016 |
|
|
|
(39,708 |
) |
INCOME TAX EXPENSE |
|
|
54 |
|
|
|
70 |
|
|
|
108 |
|
|
|
140 |
|
LOSS ON EQUITY METHOD
INVESTMENT |
|
|
— |
|
|
|
910 |
|
|
|
— |
|
|
|
1,890 |
|
(LOSS) INCOME ATTRIBUTABLE TO
COMMON STOCKHOLDERS |
|
$ |
(1,694 |
) |
|
$ |
(16,952 |
) |
|
$ |
16,908 |
|
|
$ |
(41,738 |
) |
OTHER COMPREHENSIVE LOSS: |
|
|
|
|
|
|
|
|
Change in foreign currency translation |
|
$ |
(79 |
) |
|
$ |
(2,039 |
) |
|
$ |
(197 |
) |
|
$ |
(2,033 |
) |
TOTAL OTHER COMPREHENSIVE
LOSS |
|
|
(79 |
) |
|
|
(2,039 |
) |
|
|
(197 |
) |
|
|
(2,033 |
) |
TOTAL COMPREHENSIVE (LOSS)
INCOME |
|
$ |
(1,773 |
) |
|
$ |
(18,991 |
) |
|
$ |
16,711 |
|
|
$ |
(43,771 |
) |
NET (LOSS) INCOME PER SHARE
ATTRIBUTABLE TO COMMON STOCKHOLDERS |
|
|
|
|
|
|
|
|
-BASIC |
|
$ |
(0.03 |
) |
|
$ |
(0.35 |
) |
|
$ |
0.35 |
|
|
$ |
(0.87 |
) |
-DILUTED |
|
$ |
(0.03 |
) |
|
$ |
(0.35 |
) |
|
$ |
0.34 |
|
|
$ |
(0.87 |
) |
WEIGHTED AVERAGE SHARES OF
COMMON STOCK OUTSTANDING |
|
|
|
|
|
|
|
|
-BASIC |
|
|
48,461 |
|
|
|
48,132 |
|
|
|
48,400 |
|
|
|
48,089 |
|
-DILUTED |
|
|
48,461 |
|
|
|
48,132 |
|
|
|
50,154 |
|
|
|
48,089 |
|
|
FRESHPET, INC. AND SUBSIDIARIESCONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited, in
thousands) |
|
|
|
For the Six Months EndedJune
30, |
|
|
|
2024 |
|
|
|
2023 |
|
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
|
Net income (loss) |
|
$ |
16,908 |
|
|
$ |
(41,738 |
) |
Adjustments to reconcile net income (loss) to net cash flows
provided by (used in) operating activities: |
|
|
|
|
Provision for loss on accounts receivable |
|
|
13 |
|
|
|
8 |
|
Loss on disposal of property, plant and equipment |
|
|
286 |
|
|
|
464 |
|
Share-based compensation |
|
|
25,755 |
|
|
|
16,862 |
|
Inventory obsolescence |
|
|
699 |
|
|
|
— |
|
Depreciation and amortization |
|
|
33,324 |
|
|
|
28,930 |
|
Write-off and amortization of deferred financing costs and loan
discount |
|
|
1,035 |
|
|
|
3,034 |
|
Change in operating lease right of use asset |
|
|
766 |
|
|
|
807 |
|
Loss on equity method investment |
|
|
— |
|
|
|
1,890 |
|
Gain on equity investment |
|
|
(9,918 |
) |
|
|
— |
|
Amortization of discount on short-term investments |
|
|
— |
|
|
|
(996 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
|
(11,407 |
) |
|
|
5,675 |
|
Inventories |
|
|
(8,685 |
) |
|
|
(6,979 |
) |
Prepaid expenses and other current assets |
|
|
(3,968 |
) |
|
|
(430 |
) |
Other assets |
|
|
(1,240 |
) |
|
|
(3,762 |
) |
Accounts payable |
|
|
(981 |
) |
|
|
(7,488 |
) |
Accrued expenses |
|
|
6,069 |
|
|
|
4,529 |
|
Operating lease liability |
|
|
(837 |
) |
|
|
(1,037 |
) |
Net cash flows provided by (used in) operating activities |
|
|
47,819 |
|
|
|
(231 |
) |
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
Purchase of short-term investments |
|
|
— |
|
|
|
(113,441 |
) |
Acquisitions of property, plant and equipment, software and
deposits on equipment |
|
|
(94,795 |
) |
|
|
(102,507 |
) |
Net cash flows used in investing activities |
|
|
(94,795 |
) |
|
|
(215,948 |
) |
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
Proceeds from exercise of options to purchase common stock |
|
|
4,196 |
|
|
|
3,061 |
|
Tax withholdings related to net shares settlements of restricted
stock units |
|
|
(1,440 |
) |
|
|
(850 |
) |
Purchase of capped call options |
|
|
— |
|
|
|
(66,211 |
) |
Proceeds from issuance of convertible senior notes |
|
|
— |
|
|
|
393,518 |
|
Debt issuance costs |
|
|
— |
|
|
|
(2,026 |
) |
Principal payments under finance lease obligations |
|
|
(952 |
) |
|
|
— |
|
Net cash flows provided by financing activities |
|
|
1,804 |
|
|
|
327,492 |
|
NET CHANGE IN CASH AND CASH
EQUIVALENTS |
|
|
(45,172 |
) |
|
|
111,313 |
|
CASH AND CASH EQUIVALENTS,
BEGINNING OF YEAR |
|
|
296,871 |
|
|
|
132,735 |
|
CASH AND CASH EQUIVALENTS, END
OF PERIOD |
|
$ |
251,699 |
|
|
$ |
244,048 |
|
|
FRESHPET, INC. AND
SUBSIDIARIESRECONCILIATION BETWEEN GROSS PROFIT
AND ADJUSTED GROSS PROFIT |
|
|
|
For the Three Months EndedJune
30, |
|
For the Six Months EndedJune
30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Gross profit |
|
$ |
93,952 |
|
|
$ |
59,244 |
|
|
$ |
182,110 |
|
|
$ |
110,004 |
|
Depreciation expense |
|
|
11,827 |
|
|
|
10,618 |
|
|
|
22,502 |
|
|
|
21,339 |
|
Non-cash share-based
compensation |
|
|
2,220 |
|
|
|
3,161 |
|
|
|
4,841 |
|
|
|
6,117 |
|
Loss on disposal of
manufacturing equipment |
|
|
32 |
|
|
|
— |
|
|
|
53 |
|
|
|
— |
|
Adjusted Gross
Profit |
|
$ |
108,031 |
|
|
$ |
73,023 |
|
|
$ |
209,506 |
|
|
$ |
137,460 |
|
Adjusted Gross Profit as a %
of Net Sales |
|
|
45.9 |
% |
|
|
39.8 |
% |
|
|
45.6 |
% |
|
|
39.2 |
% |
|
FRESHPET, INC. AND
SUBSIDIARIESRECONCILIATION BETWEEN SG&A
EXPENSES AND ADJUSTED SG&A EXPENSES |
|
|
|
For the Three Months EndedJune
30, |
|
For the Six Months EndedJune
30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
SG&A expenses |
|
$ |
95,702 |
|
|
$ |
75,996 |
|
|
$ |
175,396 |
|
|
$ |
148,267 |
|
Depreciation and amortization
expense |
|
|
5,385 |
|
|
|
3,820 |
|
|
|
10,455 |
|
|
|
7,591 |
|
Non-cash share-based
compensation (a) |
|
|
17,313 |
|
|
|
5,286 |
|
|
|
20,913 |
|
|
|
10,745 |
|
Loss on disposal of
equipment |
|
|
104 |
|
|
|
196 |
|
|
|
233 |
|
|
|
464 |
|
Enterprise Resource Planning
(b) |
|
|
— |
|
|
|
537 |
|
|
|
— |
|
|
|
1,338 |
|
Capped Call Transactions fees
(c) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
113 |
|
Activism engagement (d) |
|
|
— |
|
|
|
2,241 |
|
|
|
— |
|
|
|
2,630 |
|
Organization changes (e) |
|
|
— |
|
|
|
(67 |
) |
|
|
— |
|
|
|
(67 |
) |
Adjusted SG&A
Expenses |
|
$ |
72,900 |
|
|
$ |
63,983 |
|
|
$ |
143,795 |
|
|
$ |
125,453 |
|
Adjusted SG&A Expenses as
a % of Net Sales |
|
|
31.0 |
% |
|
|
34.9 |
% |
|
|
31.3 |
% |
|
|
35.8 |
% |
(a) |
Includes true-ups to share-based compensation expense compared to
prior periods. We have certain outstanding share-based awards with
performance-based vesting conditions that require the achievement
of certain Adjusted EBITDA and/or Net Sales targets as a condition
of vesting. At each reporting period, we reassess the probability
of achieving the performance criteria and the performance period
required to meet those targets. When the probability of achieving
such performance conditions changes, the compensation cost
previously recorded is adjusted as needed. When such performance
conditions are deemed to be improbable of achievement, the
compensation cost previously recorded is reversed. |
(b) |
Represents costs associated with the implementation of an ERP
system. |
(c) |
Represents fees associated with the Capped Call Transactions. |
(d) |
Represents advisory fees related to activism engagement. |
(e) |
Represents a true-up to transition costs related to the
organization changes designed to support growth, including several
changes in organizational structure designed to enhance
capabilities and support long-term growth objectives. |
|
FRESHPET, INC. AND
SUBSIDIARIESRECONCILIATION BETWEEN NET (LOSS) AND
ADJUSTED EBITDA |
|
|
|
For the Three Months EndedJune
30, |
|
For the Six Months EndedJune
30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
Net (loss) income |
|
$ |
(1,694 |
) |
|
$ |
(16,952 |
) |
|
$ |
16,908 |
|
|
$ |
(41,738 |
) |
Depreciation and
amortization |
|
|
17,212 |
|
|
|
14,438 |
|
|
|
32,957 |
|
|
|
28,930 |
|
Interest income, net of
interest expense |
|
|
(110 |
) |
|
|
(779 |
) |
|
|
(384 |
) |
|
|
1,446 |
|
Income tax expense |
|
|
54 |
|
|
|
70 |
|
|
|
108 |
|
|
|
140 |
|
EBITDA |
|
|
15,462 |
|
|
|
(3,223 |
) |
|
|
49,589 |
|
|
|
(11,222 |
) |
Loss on equity method
investment |
|
|
— |
|
|
|
910 |
|
|
|
— |
|
|
|
1,890 |
|
Gain on equity investment |
|
|
— |
|
|
|
— |
|
|
|
(9,918 |
) |
|
|
— |
|
Loss on disposal of property,
plant and equipment |
|
|
136 |
|
|
|
196 |
|
|
|
286 |
|
|
|
464 |
|
Non-cash share-based
compensation (a) |
|
|
19,533 |
|
|
|
8,447 |
|
|
|
25,755 |
|
|
|
16,862 |
|
Enterprise Resource Planning
(b) |
|
|
— |
|
|
|
537 |
|
|
|
— |
|
|
|
1,338 |
|
Capped Call Transactions fees
(c) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
113 |
|
Activism engagement (d) |
|
|
— |
|
|
|
2,240 |
|
|
|
— |
|
|
|
2,629 |
|
Organization changes (e) |
|
|
— |
|
|
|
(67 |
) |
|
|
— |
|
|
|
(67 |
) |
Adjusted
EBITDA |
|
$ |
35,131 |
|
|
$ |
9,040 |
|
|
$ |
65,712 |
|
|
$ |
12,007 |
|
Adjusted EBITDA as a % of Net
Sales |
|
|
14.9 |
% |
|
|
4.9 |
% |
|
|
14.3 |
% |
|
|
3.4 |
% |
(a) |
Includes true-ups to share-based compensation expense compared to
prior periods. We have certain outstanding share-based awards with
performance-based vesting conditions that require the achievement
of certain Adjusted EBITDA and/or Net Sales targets as a condition
of vesting. At each reporting period, we reassess the probability
of achieving the performance criteria and the performance period
required to meet those targets. When the probability of achieving
such performance conditions changes, the compensation cost
previously recorded is adjusted as needed. When such performance
conditions are deemed to be improbable of achievement, the
compensation cost previously recorded is reversed. |
(b) |
Represents costs associated with the implementation of an ERP
system. |
(c) |
Represents fees associated with the Capped Call Transactions. |
(d) |
Represents advisory fees related to activism engagement. |
(e) |
Represents a true-up to transition costs related to the
organization changes designed to support growth, including several
changes in organizational structure designed to enhance
capabilities and support long-term growth objectives. |
Investor Contact:
Rachel Ulsh
Rulsh@freshpet.com
Media Contact:
Press@freshpet.com
Freshpet (NASDAQ:FRPT)
Gráfica de Acción Histórica
De Ago 2024 a Sep 2024
Freshpet (NASDAQ:FRPT)
Gráfica de Acción Histórica
De Sep 2023 a Sep 2024