BellRing Brands, Inc. (NYSE:BRBR) (“BellRing”), a holding company
operating in the global convenient nutrition category, today
reported results for the third fiscal quarter ended June 30, 2024.
Highlights:
- Third quarter net sales of
$515.4 million
- Operating profit of $111.6
million, net earnings of $73.7
million and Adjusted EBITDA* of
$119.5 million
- Raised fiscal year 2024 net sales outlook to
$1.96-$2.00 billion and Adjusted EBITDA* outlook to $430-$440
million
*Adjusted EBITDA is a non-GAAP measure. For additional
information regarding non-GAAP measures, see the related
explanations presented under “Use of Non-GAAP Measures” later in
this release. BellRing provides Adjusted EBITDA guidance only on a
non-GAAP basis and does not provide a reconciliation of its
forward-looking Adjusted EBITDA non-GAAP guidance measure to the
most directly comparable GAAP measure due to the inherent
difficulty in forecasting and quantifying certain amounts that are
necessary for such reconciliation, including the adjustments
described under “Outlook” later in this release.
“We are pleased with our third quarter performance, with results
ahead of our expectations and shake production delivering to plan.
Premier Protein achieved all time highs for household penetration
and shake distribution points as we broaden our formats and package
sizes. Consumption growth for Premier Protein shakes was strong and
accelerated in June and continued into July on better in stocks and
distribution gains,” said Darcy H. Davenport, President and Chief
Executive Officer of BellRing. “Lastly, we saw
greater-than-expected margins primarily lifted by favorability in
powder input costs. Our strong third quarter performance and
visibility to the fourth quarter gives us confidence to raise our
outlook for the year.”
Dollar consumption of Premier Protein ready-to-drink
(“RTD”) shakes and Premier Protein powder products increased 9.6%
and 43.6%, respectively, and Dymatize powder products
decreased 11.3% in the 13-week period ended June 30, 2024, as
compared to the same period in 2023 (inclusive of Circana United
States (“U.S.”) Multi Outlet including Convenience and management
estimates of untracked channels). For additional information
regarding consumption metrics, see the supplemental slide
presentation on BellRing’s website, which can be accessed by
visiting the Investor Relations section.
Third Quarter Operating
Results
Net sales were $515.4 million, an increase of 15.6%, or $69.5
million, compared to the prior year period, driven by 18.4%
increase in volume and 2.8% decrease in price/mix.
Premier Protein net sales increased 19.8%, driven by 19.2%
increase in volume and 0.6% increase in price/mix. Premier Protein
RTD shake net sales increased 18.5%, driven by 19.4% increase in
volume and 0.9% decrease in price/mix. Volume gains were driven by
organic growth and distribution gains.
Dymatize net sales decreased 2.6%, driven by 4.4% increase in
volume which was offset by a 7.0% decrease in price/mix. Volume
gains were driven by strength in the international channel, which
was partially offset by changes in domestic distribution and
display activity when compared to the prior year period. The
decrease in price/mix was driven by promotional activity and
unfavorable mix.
Gross profit was $189.9 million, or 36.8% of net sales, an
increase of 39.6%, or $53.9 million, compared to $136.0 million, or
30.5% of net sales, in the prior year period. Gross profit included
mark-to-market adjustments on commodity hedges which were favorable
by $2.3 million in the third quarter of 2024 and unfavorable by
$1.9 million in the third quarter of 2023, and were treated as
adjustments for non-GAAP measures. The higher gross profit margin
was driven by net input cost deflation.
Selling, general and administrative (“SG&A”) expenses were
$74.0 million, or 14.4% of net sales, an increase of $18.9 million
compared to $55.1 million, or 12.4% of net sales, in the prior year
period. SG&A expenses in the third quarter of 2024 included
higher employee expenses and distribution and warehousing expenses
on higher volumes, as well as higher marketing and consumer
advertising expenses of $3.3 million.
Operating profit was $111.6 million, an increase of 46.8%, or
$35.6 million, compared to $76.0 million in the prior year
period.
Interest expense, net was $14.4 million and $17.3 million in the
third quarter of 2024 and 2023, respectively, with the decline
primarily driven by lower borrowings outstanding under the
revolving credit facility. Income tax expense was $23.5 million in
the third quarter of 2024, an effective income tax rate of 24.2%,
compared to $14.4 million in the third quarter of 2023, an
effective income tax rate of 24.5%.
Net earnings were $73.7 million, an increase of 66.4%, or $29.4
million, compared to $44.3 million in the prior year period. Net
earnings per diluted common share were $0.56, an increase of 69.7%,
compared to $0.33 in the prior year period. Adjusted net earnings*
were $71.9 million, an increase of 57.3%, compared to $45.7 million
in the prior year period. Adjusted net earnings per common share*
were $0.54, an increase of 58.8%, compared to $0.34 in the prior
year period.
Adjusted EBITDA* was $119.5 million, an increase of 37.5%, or
$32.6 million, compared to $86.9 million in the prior year
period.
*Adjusted net earnings, Adjusted diluted earnings per common
share and Adjusted EBITDA are non-GAAP measures. For additional
information regarding non-GAAP measures, see the related
explanations presented under “Use of Non-GAAP Measures” later in
this release.
Nine Month Operating Results
Net sales were $1,440.4 million, an increase of 20.6%, or $246.2
million, compared to the prior year period, driven by 26.3%
increase in volume and 5.7% decrease in price/mix. Premier Protein
net sales increased 24.0%, driven by 27.4% increase in volume and
3.4% decrease in price/mix. Dymatize net sales increased 6.1%,
driven by 10.6% increase in volume and 4.5% decrease in
price/mix.
Gross profit was $502.2 million, or 34.9% of net sales, an
increase of 34.0%, or $127.3 million, compared to $374.9 million,
or 31.4% of net sales, in the prior year period. The higher gross
profit margin was driven by net input cost deflation, which was
partially offset by incremental promotional activity.
SG&A expenses were $195.9 million, or 13.6% of net sales, an
increase of $44.8 million compared to $151.1 million, or 12.7% of
net sales, in the prior year period. SG&A expenses in the nine
months ended June 30, 2024 included higher employee expenses and
distribution and warehousing expenses on higher volumes, as well as
increased marketing and consumer advertising expenses of $7.6
million.
Operating profit was $275.6 million, an increase of 31.7%, or
$66.4 million, compared to $209.2 million in the prior year period,
and was negatively impacted by $17.4 million of accelerated
amortization incurred in connection with the discontinuance of the
North American PowerBar business, which was treated as an
adjustment for non-GAAP measures.
Interest expense, net was $43.8 million and $50.8 million in the
nine months ended June 30, 2024 and 2023, respectively, with the
decline primarily driven by lower borrowings outstanding under the
revolving credit facility. Income tax expense was $57.0 million in
the nine months ended June 30, 2024, compared to $39.0 million in
the nine months ended June 30, 2023. The effective income tax rate
was 24.6% in both the nine months ended June 30, 2024 and 2023.
Net earnings were $174.8 million, an increase of 46.4%, or $55.4
million, compared to $119.4 million in the prior year period. Net
earnings per diluted common share were $1.32, an increase of 48.3%,
compared to $0.89 in the prior year period. Adjusted net earnings*
were $188.4 million, an increase of 53.7%, compared to $122.6
million in the prior year period. Adjusted diluted earnings per
common share* were $1.42, an increase of 56.0%, compared to $0.91
in the prior year period.
Adjusted EBITDA* was $323.7 million, an increase of 35.0%, or
$83.9 million, compared to $239.8 million in the prior year
period.
*Adjusted net earnings, Adjusted diluted earnings per common
share and Adjusted EBITDA are non-GAAP measures. For additional
information regarding non-GAAP measures, see the related
explanations presented under “Use of Non-GAAP Measures” later in
this release.
Share Repurchases
During the third quarter of 2024, BellRing repurchased 1.3
million shares for $73.8 million at an average price of $58.08 per
share. During the nine months ended June 30, 2024, BellRing
repurchased 1.9 million shares for $106.1 million at an average
price of $56.18 per share. As of June 30, 2024, BellRing had $215.6
million remaining under its share repurchase authorization.
Outlook
For fiscal year 2024, BellRing management has raised its
guidance range for net sales to $1.96-$2.00 billion (from
$1.93-$1.99 billion) and Adjusted EBITDA to $430-$440 million (from
$400-$420 million) (resulting in net sales and Adjusted EBITDA
growth of 18%-20% and 27%-30%, respectively, over fiscal year
2023). BellRing management expects fiscal year 2024 capital
expenditures of approximately $4 million.
BellRing provides Adjusted EBITDA guidance only on a non-GAAP
basis and does not provide a reconciliation of its forward-looking
Adjusted EBITDA non-GAAP guidance measure to the most directly
comparable GAAP measure due to the inherent difficulty in
forecasting and quantifying certain amounts that are necessary for
such reconciliation, including adjustments that could be made for
mark-to-market adjustments on commodity hedges and other charges
reflected in BellRing’s reconciliations of historical numbers, the
amounts of which, based on historical experience, could be
significant. For additional information regarding BellRing’s
non-GAAP measures, see the related explanations presented under
“Use of Non-GAAP Measures.”
Use of Non-GAAP Measures
BellRing uses certain non-GAAP measures in this release to
supplement the financial measures prepared in accordance with U.S.
generally accepted accounting principles (“GAAP”). These non-GAAP
measures include Adjusted net earnings, Adjusted diluted earnings
per common share, Adjusted EBITDA and Adjusted EBITDA as a
percentage of net sales. The reconciliation of each of these
non-GAAP measures to the most directly comparable GAAP measure is
provided later in this release under “Explanation and
Reconciliation of Non-GAAP Measures.”
Management uses certain of these non-GAAP measures, including
Adjusted EBITDA and Adjusted EBITDA as a percentage of net sales,
as key metrics in the evaluation of underlying company performance,
in making financial, operating and planning decisions and, in part,
in the determination of bonuses for its executive officers and
employees. Additionally, BellRing is required to comply with
certain covenants and limitations that are based on variations of
EBITDA in its financing documents. Management believes the use of
these non-GAAP measures provides increased transparency and assists
investors in understanding the underlying operating performance of
BellRing and in the analysis of ongoing operating
trends. Non-GAAP measures are not prepared in accordance with
GAAP, as they exclude certain items as described later in this
release. These non-GAAP measures may not be comparable to similarly
titled measures of other companies. For additional information
regarding BellRing’s non-GAAP measures, see the related
explanations provided under “Explanation and Reconciliation of
Non-GAAP Measures” later in this release.
Conference Call to Discuss Earnings Results and
Outlook
BellRing will host a conference call on Tuesday, August 6, 2024
at 9:00 a.m. EDT to discuss financial results for the third quarter
of fiscal year 2024 and fiscal year 2024 outlook and to respond to
questions. Darcy H. Davenport, President and Chief Executive
Officer, and Paul A. Rode, Chief Financial Officer, will
participate in the call.
Interested parties may join the conference call by registering
in advance at the following link: BellRing Q3 2024 Earnings
Conference Call. Upon registration, participants will receive a
dial-in number and a unique passcode to access the conference call.
Interested parties are invited to listen to the webcast of the
conference call, which can be accessed by visiting the Investor
Relations section of BellRing’s website at www.bellring.com. A
slide presentation containing supplemental material will also be
available at the same location on BellRing’s website. A webcast
replay also will be available for a limited period on BellRing’s
website in the Investor Relations section.
Prospective Financial Information
Prospective financial information is necessarily speculative in
nature, and it can be expected that some or all of the assumptions
underlying the prospective financial information described above
will not materialize or will vary significantly from actual
results. For further discussion of some of the factors that may
cause actual results to vary materially from the information
provided above, see “Forward-Looking Statements” below.
Accordingly, the prospective financial information provided above
is only an estimate of what BellRing’s management believes is
realizable as of the date of this release. It also should be
recognized that the reliability of any forecasted financial data
diminishes the farther in the future that the data is forecasted.
In light of the foregoing, the information should be viewed in
context and undue reliance should not be placed upon it.
Forward-Looking Statements
Certain matters discussed in this release and on BellRing’s
conference call are forward-looking statements, including
BellRing’s net sales, Adjusted EBITDA and capital expenditures
outlook for fiscal year 2024. These forward-looking statements
are sometimes identified from the use of forward-looking words such
as “believe,” “should,” “could,” “potential,” “continue,” “expect,”
“project,” “estimate,” “predict,” “anticipate,” “aim,” “intend,”
“plan,” “forecast,” “target,” “is likely,” “will,” “can,” “may” or
“would” or the negative of these terms or similar expressions, and
include all statements regarding future performance, earnings
projections, events or developments. There are a number of risks
and uncertainties that could cause actual results to differ
materially from the forward-looking statements made herein. These
risks and uncertainties include, but are not limited to, the
following:
- BellRing’s dependence on sales from its RTD protein
shakes;
- BellRing’s ability to continue to compete in its product
categories and its ability to retain its market position and
favorable perceptions of its brands;
- disruptions or inefficiencies in BellRing’s supply chain,
including as a result of BellRing’s reliance on third-party
suppliers or manufacturers for the manufacturing of many of its
products, pandemics and other outbreaks of contagious diseases,
labor shortages, fires and evacuations related thereto, changes in
weather conditions, natural disasters, agricultural diseases and
pests and other events beyond BellRing’s control;
- BellRing’s dependence on a limited number of third-party
contract manufacturers for the manufacturing of most of its
products, including one manufacturer for the majority of its RTD
protein shakes;
- the ability of BellRing’s third-party contract manufacturers to
produce an amount of BellRing’s products that enables BellRing to
meet customer and consumer demand for the products;
- BellRing’s reliance on a limited number of third-party
suppliers to provide certain ingredients and packaging;
- significant volatility in the cost or availability of inputs to
BellRing’s business (including freight, raw materials, packaging,
energy, labor and other supplies);
- BellRing’s ability to anticipate and respond to changes in
consumer and customer preferences and behaviors and introduce new
products;
- consolidation in BellRing’s distribution channels;
- BellRing’s ability to expand existing market penetration and
enter into new markets;
- the loss of, a significant reduction of purchases by or the
bankruptcy of a major customer;
- legal and regulatory factors, such as compliance with existing
laws and regulations, as well as new laws and regulations and
changes to existing laws and regulations and interpretations
thereof, affecting BellRing’s business, including current and
future laws and regulations regarding food safety, advertising,
labeling, tax matters and environmental matters;
- fluctuations in BellRing’s business due to changes in its
promotional activities and seasonality;
- BellRing’s ability to maintain the net selling prices of its
products and manage promotional activities with respect to its
products;
- BellRing’s ability to obtain additional financing (including
both secured and unsecured debt) and its ability to service its
outstanding debt (including covenants that restrict the operation
of its business);
- the accuracy of BellRing’s market data and attributes and
related information;
- changes in critical accounting estimates;
- uncertain or unfavorable economic conditions that limit
customer and consumer demand for BellRing’s products or increase
its costs;
- risks related to BellRing’s ongoing relationship with Post
Holdings, Inc. (“Post”) following BellRing’s separation from Post
and Post’s distribution of BellRing stock to Post’s shareholders
(the “Spin-off”), including BellRing’s obligations under various
agreements with Post;
- conflicting interests or the appearance of conflicting
interests resulting from certain of BellRing’s directors also
serving as officers or directors of Post;
- risks related to the previously completed Spin-off;
- the ultimate impact litigation or other regulatory matters may
have on BellRing;
- risks associated with BellRing’s international business;
- BellRing’s ability to protect its intellectual property and
other assets and to continue to use third-party intellectual
property subject to intellectual property licenses;
- costs, business disruptions and reputational damage associated
with technology failures, cybersecurity incidents and corruption of
BellRing’s data privacy protections;
- impairment in the carrying value of goodwill or other
intangible assets;
- BellRing’s ability to identify, complete and integrate or
otherwise effectively execute acquisitions or other strategic
transactions and effectively manage its growth;
- BellRing’s ability to hire and retain talented personnel,
employee absenteeism, labor strikes, work stoppages or unionization
efforts;
- BellRing’s ability to satisfy the requirements of Section 404
of the Sarbanes-Oxley Act of 2002;
- significant differences in BellRing’s actual operating results
from any guidance BellRing may give regarding its performance;
and
- other risks and uncertainties described in BellRing’s filings
with the Securities and Exchange Commission.
These forward-looking statements represent BellRing’s judgment
as of the date of this release. BellRing disclaims, however, any
intent or obligation to update these forward-looking
statements.
About BellRing Brands, Inc.
BellRing Brands, Inc. is a rapidly growing leader in the global
convenient nutrition category offering ready-to-drink shake and
powder protein products. Its primary brands, Premier Protein® and
Dymatize®, appeal to a broad range of consumers and are distributed
across a diverse network of channels including club, food, drug,
mass, eCommerce, specialty and convenience. BellRing’s commitment
to consumers is to strive to make highly effective products that
deliver best-in-class nutritionals and superior taste. For more
information, visit www.bellring.com.
Contact:Investor RelationsJennifer
Meyerjennifer.meyer@bellringbrands.com(415) 814-9388
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited)(in
millions, except for per share data) |
|
|
Three Months EndedJune 30, |
|
Nine Months EndedJune 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net
Sales |
$ |
515.4 |
|
|
$ |
445.9 |
|
|
$ |
1,440.4 |
|
|
$ |
1,194.2 |
|
Cost of goods sold |
|
325.5 |
|
|
|
309.9 |
|
|
|
938.2 |
|
|
|
819.3 |
|
Gross
Profit |
|
189.9 |
|
|
|
136.0 |
|
|
|
502.2 |
|
|
|
374.9 |
|
Selling, general and
administrative expenses |
|
74.0 |
|
|
|
55.1 |
|
|
|
195.9 |
|
|
|
151.1 |
|
Amortization of intangible
assets |
|
4.3 |
|
|
|
4.9 |
|
|
|
30.7 |
|
|
|
14.6 |
|
Operating
Profit |
|
111.6 |
|
|
|
76.0 |
|
|
|
275.6 |
|
|
|
209.2 |
|
Interest expense, net |
|
14.4 |
|
|
|
17.3 |
|
|
|
43.8 |
|
|
|
50.8 |
|
Earnings before Income
Taxes |
|
97.2 |
|
|
|
58.7 |
|
|
|
231.8 |
|
|
|
158.4 |
|
Income tax expense |
|
23.5 |
|
|
|
14.4 |
|
|
|
57.0 |
|
|
|
39.0 |
|
Net
Earnings |
$ |
73.7 |
|
|
$ |
44.3 |
|
|
$ |
174.8 |
|
|
$ |
119.4 |
|
|
|
|
|
|
|
|
|
Earnings per Common
Share: |
|
|
|
|
|
|
|
Basic |
$ |
0.57 |
|
|
$ |
0.33 |
|
|
$ |
1.34 |
|
|
$ |
0.89 |
|
Diluted |
$ |
0.56 |
|
|
$ |
0.33 |
|
|
$ |
1.32 |
|
|
$ |
0.89 |
|
|
|
|
|
|
|
|
|
Weighted-Average Common Shares Outstanding: |
|
|
|
|
|
|
Basic |
|
130.0 |
|
|
|
132.4 |
|
|
|
130.7 |
|
|
|
133.6 |
|
Diluted |
|
132.1 |
|
|
|
133.8 |
|
|
|
132.7 |
|
|
|
134.5 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)(in millions) |
|
|
June 30, 2024 |
|
September 30, 2023 |
|
|
|
|
ASSETS |
Current
Assets |
|
|
|
Cash and cash equivalents |
$ |
72.6 |
|
|
$ |
48.4 |
|
Receivables, net |
|
230.7 |
|
|
|
168.2 |
|
Inventories |
|
237.8 |
|
|
|
194.3 |
|
Prepaid expenses and other current assets |
|
13.1 |
|
|
|
13.3 |
|
Total Current Assets |
|
554.2 |
|
|
|
424.2 |
|
|
|
|
|
Property, net |
|
8.2 |
|
|
|
8.5 |
|
Goodwill |
|
65.9 |
|
|
|
65.9 |
|
Intangible assets, net |
|
146.1 |
|
|
|
176.8 |
|
Deferred income taxes |
|
14.4 |
|
|
|
4.2 |
|
Other assets |
|
15.3 |
|
|
|
12.0 |
|
Total Assets |
$ |
804.1 |
|
|
$ |
691.6 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ DEFICIT |
Current
Liabilities |
|
|
|
Accounts payable |
$ |
113.9 |
|
|
$ |
89.0 |
|
Other current liabilities |
|
94.0 |
|
|
|
61.2 |
|
Total Current Liabilities |
|
207.9 |
|
|
|
150.2 |
|
|
|
|
|
Long-term debt |
|
832.7 |
|
|
|
856.8 |
|
Deferred income taxes |
|
0.4 |
|
|
|
0.4 |
|
Other liabilities |
|
6.3 |
|
|
|
7.7 |
|
Total Liabilities |
|
1,047.3 |
|
|
|
1,015.1 |
|
|
|
|
|
Stockholders’
Deficit |
|
|
|
Common stock |
|
1.4 |
|
|
|
1.4 |
|
Additional paid-in capital |
|
31.6 |
|
|
|
19.3 |
|
Accumulated deficit |
|
(15.3 |
) |
|
|
(190.1 |
) |
Accumulated other comprehensive loss |
|
(2.8 |
) |
|
|
(3.1 |
) |
Treasury stock, at cost |
|
(258.1 |
) |
|
|
(151.0 |
) |
Total Stockholders’ Deficit |
|
(243.2 |
) |
|
|
(323.5 |
) |
Total Liabilities and Stockholders’ Deficit |
$ |
804.1 |
|
|
$ |
691.6 |
|
SELECTED CONDENSED CONSOLIDATED CASH FLOWS INFORMATION
(Unaudited)(in millions) |
|
|
Nine Months Ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
Cash provided by (used
in): |
|
|
|
Operating activities |
$ |
159.5 |
|
|
$ |
130.7 |
|
Investing activities |
|
(0.6 |
) |
|
|
(1.0 |
) |
Financing activities |
|
(134.6 |
) |
|
|
(139.8 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
(0.1 |
) |
|
|
0.4 |
|
Net increase
(decrease) in cash and cash equivalents |
$ |
24.2 |
|
|
$ |
(9.7 |
) |
EXPLANATION AND RECONCILIATION OF
NON-GAAP MEASURES
BellRing uses certain non-GAAP measures in this release to
supplement the financial measures prepared in accordance with U.S.
generally accepted accounting principles (“GAAP”). These non-GAAP
measures include Adjusted net earnings, Adjusted diluted earnings
per common share, Adjusted EBITDA and Adjusted EBITDA as a
percentage of net sales. The reconciliation of each of these
non-GAAP measures to the most directly comparable GAAP measure is
provided in the tables following this section. Non-GAAP measures
are not prepared in accordance with GAAP, as they exclude certain
items as described below. These non-GAAP measures may not be
comparable to similarly titled measures of other companies.
Adjusted net earnings and Adjusted diluted earnings per common
shareBellRing believes Adjusted net earnings and Adjusted diluted
earnings per common share are useful to investors in evaluating
BellRing’s operating performance because they exclude items that
affect the comparability of BellRing’s financial results and could
potentially distort an understanding of the trends in business
performance.
Adjusted net earnings and Adjusted diluted earnings per common
share are adjusted for the following items:
- Accelerated amortization: BellRing has excluded non-cash
accelerated amortization charges recorded in connection with the
discontinuation of certain brands or the discontinuation of the use
of certain brands in certain regions as the amount and frequency of
such charges are not consistent. Additionally, BellRing believes
that these charges do not reflect expected ongoing future operating
expenses and do not contribute to a meaningful evaluation of
BellRing’s current operating performance or comparisons of
BellRing’s operating performance to other periods.
- Mark-to-market adjustments on commodity hedges: BellRing has
excluded the impact of mark-to-market adjustments on commodity
hedges due to the inherent uncertainty and volatility associated
with such amounts based on changes in assumptions with respect to
fair value estimates. Additionally, these adjustments are primarily
non-cash items and the amount and frequency of such adjustments are
not consistent.
- Foreign currency gain/loss on intercompany loans: BellRing has
excluded the impact of foreign currency fluctuations related to
intercompany loans denominated in currencies other than the
functional currency of the respective legal entity in evaluating
BellRing’s performance to allow for more meaningful comparisons of
performance to other periods.
- Separation costs: BellRing has excluded certain expenses
incurred in connection with secondary offerings of shares of
BellRing common stock previously held by Post, as the amount and
frequency of such expenses are not consistent. Additionally,
BellRing believes that these costs do not reflect expected ongoing
future operating expenses and do not contribute to a meaningful
evaluation of BellRing’s current operating performance or
comparisons of BellRing’s operating performance to other
periods.
- Income tax effect on adjustments:
BellRing has included the income tax impact of the non-GAAP
adjustments using a rate described in the applicable footnote of
the reconciliation tables, as BellRing believes that its GAAP
effective income tax rate as reported is not representative of the
income tax expense impact of the adjustments. Adjusted EBITDA and
Adjusted EBITDA as a percentage of net salesBellRing believes that
Adjusted EBITDA is useful to investors in evaluating BellRing’s
operating performance and liquidity because (i) BellRing believes
it is widely used to measure a company’s operating performance
without regard to items such as depreciation and amortization,
which can vary depending upon accounting methods and the book value
of assets, (ii) it presents a measure of corporate performance
exclusive of BellRing’s capital structure and the method by which
the assets were acquired and (iii) it is a financial indicator of a
company’s ability to service its debt, as BellRing is required to
comply with certain covenants and limitations that are based on
variations of EBITDA in its financing documents. Management uses
Adjusted EBITDA to provide forward-looking guidance and to forecast
future results. BellRing believes that Adjusted EBITDA as a
percentage of net sales is useful to investors in evaluating
BellRing’s operating performance because it allows for more
meaningful comparison of operating performance across
periods.Adjusted EBITDA reflects adjustments for income tax
expense, interest expense, net and depreciation and amortization
including accelerated amortization, and the following adjustments
discussed above: mark-to-market adjustments on commodity hedges,
foreign currency gain/loss on intercompany loans and separation
costs. Additionally, Adjusted EBITDA reflects an adjustment for the
following item:
- Stock-based compensation: BellRing’s
compensation strategy includes the use of BellRing stock-based
compensation to attract and retain executives and employees by
aligning their long-term compensation interests with BellRing’s
stockholders’ investment interests. BellRing’s director
compensation strategy includes an election by any director who
earns retainers in which the director may elect to defer
compensation granted as a director to BellRing common stock,
earning a match on the deferral, both of which are stock-settled
upon the director’s retirement from the BellRing board of
directors. BellRing has excluded stock-based compensation as
stock-based compensation can vary significantly based on reasons
such as the timing, size and nature of the awards granted and
subjective assumptions which are unrelated to operational decisions
and performance in any particular period and does not contribute to
meaningful comparisons of BellRing’s operating performance to other
periods.
RECONCILIATION OF NET EARNINGS TO ADJUSTED NET EARNINGS
(Unaudited)(in millions) |
|
|
Three Months EndedJune 30, |
|
Nine Months EndedJune 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net
Earnings |
$ |
73.7 |
|
|
$ |
44.3 |
|
|
$ |
174.8 |
|
|
$ |
119.4 |
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Accelerated amortization |
|
— |
|
|
|
— |
|
|
|
17.4 |
|
|
|
— |
|
Mark-to-market adjustments on commodity hedges |
|
(2.3 |
) |
|
|
1.9 |
|
|
|
0.4 |
|
|
|
3.9 |
|
Foreign currency loss (gain) on intercompany loans |
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
|
(0.6 |
) |
Separation costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.7 |
|
Total Net Adjustments |
|
(2.3 |
) |
|
|
1.9 |
|
|
|
17.9 |
|
|
|
4.0 |
|
Income tax effect on
adjustments(1) |
|
0.5 |
|
|
|
(0.5 |
) |
|
|
(4.3 |
) |
|
|
(0.8 |
) |
Adjusted Net
Earnings |
$ |
71.9 |
|
|
$ |
45.7 |
|
|
$ |
188.4 |
|
|
$ |
122.6 |
|
|
|
|
|
|
|
|
|
(1)Income tax
effect on adjustments was calculated on all items, except for
separation costs, using a rate of 24.0%. For the nine months ended
June 30, 2023, income tax effect for separation costs was
calculated using a rate of 8.0%. |
RECONCILIATION OF DILUTED EARNINGS PER COMMON
SHARE TO ADJUSTED DILUTED EARNINGS PER COMMON
SHARE (Unaudited) |
|
|
Three Months EndedJune 30, |
|
Nine Months EndedJune 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Diluted Earnings per
share of Common Stock |
$ |
0.56 |
|
|
$ |
0.33 |
|
|
$ |
1.32 |
|
|
$ |
0.89 |
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Accelerated amortization |
|
— |
|
|
|
— |
|
|
|
0.13 |
|
|
|
— |
|
Mark-to-market adjustments on commodity hedges |
|
(0.02 |
) |
|
|
0.01 |
|
|
|
— |
|
|
|
0.03 |
|
Total Net Adjustments |
|
(0.02 |
) |
|
|
0.01 |
|
|
|
0.13 |
|
|
|
0.03 |
|
Income tax effect on
adjustments(1) |
|
— |
|
|
|
— |
|
|
|
(0.03 |
) |
|
|
(0.01 |
) |
Adjusted Diluted
Earnings per share of Common Stock |
$ |
0.54 |
|
|
$ |
0.34 |
|
|
$ |
1.42 |
|
|
$ |
0.91 |
|
|
|
|
|
|
|
|
|
(1)Income tax
effect on adjustments was calculated on all items using a rate of
24.0%. |
RECONCILIATION OF NET EARNINGS TO ADJUSTED EBITDA
(Unaudited)(in millions) |
|
|
Three Months EndedJune 30, |
|
Nine Months EndedJune 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net
Earnings |
$ |
73.7 |
|
|
$ |
44.3 |
|
|
$ |
174.8 |
|
|
$ |
119.4 |
|
Income tax expense |
|
23.5 |
|
|
|
14.4 |
|
|
|
57.0 |
|
|
|
39.0 |
|
Interest expense, net |
|
14.4 |
|
|
|
17.3 |
|
|
|
43.8 |
|
|
|
50.8 |
|
Depreciation and amortization,
including accelerated amortization |
|
4.6 |
|
|
|
5.3 |
|
|
|
31.8 |
|
|
|
15.8 |
|
Stock-based compensation |
|
5.6 |
|
|
|
3.7 |
|
|
|
15.8 |
|
|
|
10.8 |
|
Mark-to-market adjustments on
commodity hedges |
|
(2.3 |
) |
|
|
1.9 |
|
|
|
0.4 |
|
|
|
3.9 |
|
Foreign currency loss (gain)
on intercompany loans |
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
|
(0.6 |
) |
Separation costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.7 |
|
Adjusted
EBITDA |
$ |
119.5 |
|
|
$ |
86.9 |
|
|
$ |
323.7 |
|
|
$ |
239.8 |
|
Net Earnings as a
percentage of Net Sales |
|
14.3 |
% |
|
|
9.9 |
% |
|
|
12.1 |
% |
|
|
10.0 |
% |
Adjusted EBITDA as a
percentage of Net Sales |
|
23.2 |
% |
|
|
19.5 |
% |
|
|
22.5 |
% |
|
|
20.1 |
% |
BellRing Brands (NYSE:BRBR)
Gráfica de Acción Histórica
De Ago 2024 a Sep 2024
BellRing Brands (NYSE:BRBR)
Gráfica de Acción Histórica
De Sep 2023 a Sep 2024