The Simply Good Foods Company Reports Second Quarter 2018 Financial Results
Denver, CO, April 10, 2018 - The Simply Good Foods Company (NASDAQ: SMPL, SMPL.W) (“Simply Good Foods,” or the “Company”), a developer, marketer and seller of branded nutritional foods and snacking products, today reported financial results for the thirteen and twenty-six week periods ended February 24, 2018.
“I’m pleased with our fiscal second-quarter results as we continued to build on our marketplace momentum, which resulted in a net sales increase of 6.9%, gross margin expansion and solid operating profit growth,” said Joseph E. Scalzo, President and Chief Executive Officer of The Simply Good Foods Company. “Retail takeaway performance continues to be strong and increased 4.7% and 5.1% for the thirteen and twenty-six weeks ended February 24, 2018. While early, fiscal third-quarter marketplace performance is off to a good start giving us confidence in our growth initiatives to create value for our shareholders.”
Results for the Successor Period for the Thirteen Weeks Ended February 24, 2018, and Predecessor Period for the Thirteen Weeks Ended February 25, 2017(1)
Successor net sales were $109.3 million and Predecessor net sales were $102.3 million
Successor income tax benefit was $26.8 million and Predecessor income tax expense was $2.1 million
Successor net income was $41.4 million and Predecessor net income was $3.5 million
In order to present comparable financial information, the Company has also presented supplemental unaudited pro forma financial information for the thirteen weeks ended February 25, 2017, giving effect to the business combination (the “Business Combination”) with Conyers Park Acquisition Corp. (“Conyers Park”) and NCP-ATK Holdings, Inc. (“Atkins”) as if it had occurred on August 28, 2016. All references in this press release section to results for the second quarter ended February 25, 2017, refer to such unaudited pro forma results. The Company believes this pro forma information provides helpful supplemental information with respect to the performance of Simply Good Foods, and particularly the Atkins business, during this period.
Second Quarter 2018 Financial Highlights vs. Second Quarter 2017 Pro-Forma
Net sales increased 6.9%, or $7.0 million, to $109.3 million
Gross profit margin of 46.0%, an increase of 50 basis points
Net income increased to $41.4 million, an increase of $35.0 million, benefiting from changes to tax rates and other one-time gains
Earnings per diluted share (“EPS”) of $0.56, an increase of $0.47 per fully diluted share
Adjusted EBITDA(2) increased 3.9%, to $18.8 million.
(All comparisons above are with respect to the Predecessor's pro forma thirteen week period ended February 25, 2017)
(1) On July 7, 2017, the Company completed the Business Combination between Atkins and Conyers Park, and as a result of the Business Combination, both Conyers Park and Atkins became wholly-owned subsidiaries of Simply Good Foods. Pursuant to GAAP and SEC requirements and the application of acquisition accounting, the Company's consolidated financial results are presented: (i) as of and for the thirteen weeks ended February 24, 2018 (Successor); and (ii) as of and for the thirteen weeks ended February 25, 2017 (Predecessor). All references to “Successor” refers to Simply Good Foods, and all references to “Predecessor” refers to Atkins prior to the Business Combination.
(2) Adjusted EBITDA is a non-GAAP financial measure. Please refer to “Non-GAAP Financial Measure and Related Information” and “Reconciliation of Adjusted EBITDA” in this press release for an explanation and reconciliations of this non-GAAP financial measure.
The following information was filed by Simply Good Foods Co (SMPL) on Tuesday, April 10, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.