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TreeHouse Foods, Inc. Reports Third Quarter 2020 Results
Third quarter 2020 earnings per diluted share from continuing operations was $0.20 compared to a loss of $(1.08) for the same period in 2019.
Third quarter 2020 adjusted earnings per diluted share from continuing operations was $0.71 compared to $0.55 for the same period in 2019, representing an increase of 29%.
TreeHouse tightened its full year 2020 guidance to $2.65 - $2.75 for adjusted earnings per diluted share from continuing operations and tightened revenue guidance of $4.20 to $4.40 billion. The Company continues to anticipate free cash flow to be at the upper end of its original guidance range of $250 to $300 million.
Oak Brook, IL, November 5, 2020 — TreeHouse Foods, Inc. (NYSE: THS) today reported third quarter GAAP earnings per diluted share from continuing operations of $0.20 compared to a loss of $(1.08) for the third quarter of 2019. Adjusted earnings per diluted share from continuing operations1 were $0.71 in the third quarter of 2020 compared to $0.55 in the third quarter of 2019.
"We again owe our gratitude to the employees across the TreeHouse network for continuing to adapt and perform well during these challenging times,” said Steve Oakland, Chief Executive Officer and President. “Our response to this year's pandemic-related demand and increased at-home food consumption has proven the strength of our business model. Our focus on driving operational and commercial excellence over the last several years has enhanced our ability to serve our customers and built a foundation from which we have been able to achieve our goals of delivering free cash flow and reducing our leverage quicker than expected.”
"Importantly, our two divisions are making great strides in line with their unique strategic objectives," he continued. "Our Snacking & Beverages division, with its focus on profitable revenue growth, posted year-over-year organic topline improvement of 5.2%, driven by Powdered Beverages, Crackers, and Broth. Within the Meal Preparation business, the food-away-from-home channel continues to be challenged by the continuing impact of the COVID-19 crisis, while strong performance in categories like Pasta and Red Sauces is driving profitability and generating cash. Separately, we announced our intent to acquire the majority of Ebro's U.S. branded pasta business, which represents a wonderful opportunity to deepen our portfolio, enhance our scale, improve our margins and strengthen our ability to serve our national and regional customers."
"I'm proud of the effort our teams are putting forth during such a challenging time. This is reflected in the strength of our profitability, with third quarter adjusted EPS of $0.71, which outperformed our expectations," said Bill Kelley, EVP and Chief Financial Officer. "Adjusted gross profit1 of 19.7%, expanded 160 basis points versus the prior year, as we capitalized on the strong fixed cost leverage we have in our business model and realized the benefits of higher volume. We remain focused on improving our topline performance, and delivered third quarter revenue of $1.05 billion, which was within our guidance range and represents 0.7% growth on an organic basis."
TreeHouse also noted that during the quarter it successfully completed a $500 million bond issuance of 4.000% senior unsecured notes due in 2028. The proceeds were used to fund the redemption of the 4.875% notes due in 2022. _________________________________________________________________________________________
Adjusted earnings per diluted share from continuing operations, organic net sales, adjusted gross profit, and adjusted EBITDA from continuing operations are Non-GAAP financial measures. See “Comparison of Adjusted Information to GAAP Information” for the definitions of the Non-GAAP measures, information concerning certain items affecting comparability, and reconciliations of the GAAP to Non-GAAP measures.