BellRing Brands, Inc. (NYSE:BRBR) (“BellRing”), a holding company
operating in the global convenient nutrition category, today
reported results for the fourth fiscal quarter and fiscal year
ended September 30, 2023.
Highlights:
- Fourth quarter net sales of
$472.6 million, operating profit
of $78.1 million, net earnings
of $46.1 million and Adjusted
EBITDA* of $98.5 million
- Fiscal year net sales of $1,666.8
million, operating profit of
$287.3 million, net earnings of
$165.5 million and Adjusted EBITDA*
of $338.3 million
- Generated $215.6 million
in cash from operations in fiscal year 2023
- Fiscal year 2024 net sales and Adjusted EBITDA*
expected to range between $1.83-$1.91 billion and $360-$390
million, respectively
*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 finished the year strong, with our results coming in at the
high end of our expectations. Premier Protein consumption
accelerated, lifted by meaningful distribution gains, incremental
promotional activity and continued excitement around our shake
flavors. In addition to seeing strong market share gains, Premier
Protein significantly grew household penetration. Dymatize also
experienced robust consumption growth, benefiting from new
households and distribution gains,” said Darcy H. Davenport,
President and Chief Executive Officer of BellRing. “Our momentum
remains high on both brands with the convenient nutrition category
providing strong tailwinds. Our shake capacity expansion is on
track and the long-term prospects for our company and our brands
remain bright.”
Dollar consumption of Premier Protein ready-to-drink
(“RTD”) shakes and Dymatize powder products increased 36.1%
and 38.4%, respectively, in the 13-week period ended October 1,
2023, as compared to the same period in 2022 (inclusive of Circana
United States (“U.S.”) Multi Outlet including Convenience and
management estimates of untracked channels).
Fourth Quarter Operating
Results
Net sales were $472.6 million, an increase of 24.6%, or $93.4
million, compared to the prior year period, driven by 19.4%
increase in volume and 5.2% improvement in price/mix.
Premier Protein net sales increased 30.2%, driven by 21.0%
increase in volume and 9.2% improvement in price/mix. Premier
Protein RTD shake net sales increased 28.9%, driven by 21.2%
increase in volume and 7.7% improvement in price/mix. Higher RTD
shake production, which enabled planned incremental promotional
activity, along with the reintroduction of certain shake flavors
and RTD category growth drove volume gains. Additionally, net sales
benefited from higher average net selling prices driven by price
increases to offset cost inflation.
Dymatize net sales decreased 0.9%, driven by 0.7% decrease in
volume primarily from lapping a trade inventory build in the
international and specialty channels in the prior year period. This
headwind offset strong volume growth from distribution gains and
organic growth.
Gross profit was $155.3 million, or 32.9% of net sales, an
increase of 27.0%, or $33.0 million, compared to $122.3 million, or
32.3% of net sales, in the prior year period. The higher gross
profit margin was driven by improved pricing that mitigated input
cost inflation, which was partially offset by incremental
promotional activity.
Selling, general and administrative (“SG&A”) expenses were
$65.2 million, or 13.8% of net sales, an increase of $9.0 million
compared to $56.2 million, or 14.8% of net sales, in the prior year
period. SG&A expenses included a $5.0 million and $8.0 million
provision for legal matters in the fourth quarter of 2023 and 2022,
respectively, which was treated as an adjustment for non-GAAP
measures. SG&A expenses in the fourth quarter of 2023 included
higher marketing and consumer advertising expenses of $3.2 million
and higher distribution and warehousing expenses on higher
volumes.
Operating profit was $78.1 million, an increase of 27.8%, or
$17.0 million, compared to $61.1 million in the prior year period,
and was negatively impacted by $7.1 million of accelerated
amortization, which is discussed later in this release and was
treated as an adjustment for non-GAAP measures.
Net earnings available to common stockholders were $46.1
million, an increase of 36.8%, or $12.4 million, compared to $33.7
million in the prior year period. Net earnings per diluted share of
common stock were $0.35, compared to $0.25 in the prior year
period. Adjusted net earnings available to common stockholders*
were $54.7 million, or $0.41 per diluted share of common stock*,
compared to $41.8 million, or $0.31 per diluted share of common
stock*, in the prior year period.
Adjusted EBITDA* was $98.5 million, an increase of 23.3%, or
$18.6 million, compared to $79.9 million in the prior year
period.
*Adjusted net earnings available to common stockholders,
Adjusted diluted earnings per share of common stock 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.
Fiscal Year 2023 Operating Results
Net sales were $1,666.8 million, an increase of 21.5%, or $295.3
million, compared to the prior year, driven by 12.2% improvement in
price/mix and 9.3% increase in volume. Premier Protein net sales
increased 24.8%, driven by 14.1% improvement in price/mix and 10.7%
increase in volume. Dymatize net sales increased 10.8%, driven by
7.0% improvement in price/mix and 3.8% increase in volume.
Gross profit was $530.2 million, or 31.8% of net sales, an
increase of 25.7%, or $108.4 million, compared to $421.8 million,
or 30.8% of net sales, in the prior year. The higher gross profit
margin was driven by pricing actions that mitigated significant
input cost inflation and favorable freight rates.
SG&A expenses were $216.3 million, or 13.0% of net sales, an
increase of $26.6 million compared to $189.7 million, or 13.8% of
net sales, in the prior year. SG&A expenses included $0.7
million and $14.5 million in the twelve months ended September 30,
2023 and 2022, respectively, of costs incurred in connection with
BellRing’s separation from Post Holdings, Inc. (“Post”). SG&A
expenses included a $5.0 million and $8.0 million provision for
legal matters in the twelve months ended September 30, 2023 and
2022, respectively. The separation costs and provision for legal
matters were treated as adjustments for non-GAAP measures. SG&A
expenses in the twelve months ended September 30, 2023 included
higher marketing and consumer advertising expenses of $18.3
million.
Operating profit was $287.3 million, an increase of 35.3%, or
$74.9 million, compared to $212.4 million in the prior year, and
was negatively impacted by $7.1 million of accelerated
amortization, which is discussed later in this release and was
treated as an adjustment for non-GAAP measures.
Net earnings available to common stockholders were $165.5
million, an increase of 101.1%, or $83.2 million, compared to $82.3
million in the prior year. Net earnings available to common
stockholders in the prior year included loss on extinguishment of
debt, net of $17.6 million, which is discussed later in this
release and was treated as an adjustment for non-GAAP measures, and
excluded $33.7 million of net earnings attributable to the
Company’s redeemable noncontrolling interest (the “NCI”). Net
earnings per diluted share of common stock were $1.23, compared to
$0.88 in the prior year. Adjusted net earnings available to common
stockholders* were $177.2 million, or $1.32 per diluted share of
common stock*, compared to $108.9 million, or $1.16 per diluted
share of common stock*, in the prior year. Diluted weighted-average
shares of common stock outstanding were 134.1 million, compared to
93.8 million in the prior year, with the increase driven by the
Spin-off (see definition below).
Adjusted EBITDA* was $338.3 million, an increase of 24.6%, or
$66.9 million, compared to $271.4 million in the prior year.
Adjusted EBITDA in the prior year included an adjustment for the
portion of BellRing Brands, LLC’s (“BellRing LLC”) consolidated net
earnings which was allocated to the NCI in the period prior to
Post’s distribution to its shareholders of 80.1% of Post’s interest
in BellRing (the “Distribution” and, together with the transactions
related thereto, the “Spin-off”), resulting in the calculation of
Adjusted EBITDA including 100% of BellRing.
*Adjusted net earnings available to common stockholders,
Adjusted diluted earnings per share of common stock 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.
Interest, Loss on Extinguishment of Debt and Income
Tax
Interest expense, net was $16.1 million and $16.4 million in the
fourth quarter of 2023 and 2022, respectively. Interest expense,
net was $66.9 million and $49.2 million in the twelve months ended
September 30, 2023 and 2022, respectively, with the increase driven
by an increase in (i) the average aggregate principal amount of
debt outstanding, primarily resulting from the effect of the
Spin-off transaction, and (ii) the weighted-average interest
rate.
Loss on extinguishment of debt, net of $17.6 million was
recorded in the twelve months ended September 30, 2022 in
connection with BellRing LLC’s repayment of the entire principal
amount of its term loan and termination of its prior credit
agreement.
Income tax expense was $15.9 million in the fourth quarter of
2023, an effective income tax rate of 25.6%, compared to $11.0
million in the fourth quarter of 2022, an effective income tax rate
of 24.6%. Income tax expense was $54.9 million in the twelve months
ended September 30, 2023, an effective income tax rate of 24.9%,
compared to $29.6 million in the twelve months ended September 30,
2022, an effective income tax rate of 20.3%. The increase in the
effective income tax rate in the twelve months ended September 30,
2023 when compared to the prior year period was driven by the
inclusion of 100% of the income, gain, loss and deduction of
BellRing LLC in the periods subsequent to the Spin-off, partially
offset by higher separation-related expenses incurred in connection
with the Spin-off in the prior year that were treated as
non-deductible.
Discontinuance of the PowerBar
business in North America
During the fourth quarter of 2023, BellRing management approved
a plan to discontinue its PowerBar business in North America, which
generated net sales of $7.7 million in fiscal year 2023. In
connection with this discontinuance, BellRing incurred $7.1 million
of accelerated amortization in the three and twelve months ended
September 30, 2023, which was treated as an adjustment for non-GAAP
measures. BellRing expects to fully amortize the intangible assets
associated with the PowerBar North American business by December
31, 2023 and, as a result, expects to record $17.4 million of
accelerated amortization in its first quarter of 2024. BellRing’s
international PowerBar business is unaffected by BellRing’s plan to
discontinue its North American PowerBar business.
Debt Repayments
During the fourth quarter of 2023, BellRing repaid $54.0 million
of borrowings under its revolving credit facility. Subsequent to
the end of the fourth quarter of 2023, BellRing repaid an
additional $25.0 million of borrowings under its revolving credit
facility, bringing the outstanding principal balance on the
revolving credit facility to zero.
Share Repurchases
During the fourth quarter of 2023, BellRing repurchased 0.2
million shares for $7.9 million at an average price of $39.20 per
share. During the twelve months ended September 30, 2023, BellRing
repurchased 4.2 million shares for $125.4 million at an average
price of $29.56 per share. As of September 30, 2023, BellRing had
$23.1 million remaining under its share repurchase
authorization.
Basis of Presentation
On March 10, 2022, Post’s distribution to its shareholders of
80.1% of its interest in BellRing was completed. From October 21,
2019 through March 10, 2022, BellRing allocated a portion of the
consolidated net earnings of BellRing LLC to the NCI, reflecting
the entitlement of Post to a portion of the consolidated net
earnings. Subsequent to the Spin-off, any remaining ownership of
BellRing by Post did not represent a NCI to BellRing LLC. On
November 25, 2022, Post disposed of its remaining ownership in
BellRing and, as a result, no longer had ownership of any shares of
BellRing’s common stock.
Outlook
For fiscal year 2024, BellRing management expects net sales to
range between $1.83-$1.91 billion and Adjusted EBITDA to range
between $360-$390 million (resulting in net sales and Adjusted
EBITDA growth of 10%-15% and 6%-15%, respectively, over fiscal year
2023). BellRing management expects fiscal year 2024 capital
expenditures of approximately $2 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 reconciliation 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 available to common
stockholders, Adjusted diluted earnings per share of common stock
and Adjusted EBITDA. 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, 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, November 21,
2023 at 9:00 a.m. EST to discuss financial results for the fourth
quarter and fiscal year 2023 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 Q4 2023 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 and 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 (including a resurgence of COVID-19 and/or
variants) 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
following BellRing’s separation from Post and 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, including
BellRing’s inability to take certain actions because such actions
could jeopardize the tax-free status of the Spin-off and BellRing’s
possible responsibility for U.S. federal tax liabilities related to
the 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
CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited)(in
millions, except for per share data)
| |
Three Months Ended September 30, |
|
Twelve Months Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
| Net
Sales |
$ |
472.6 |
|
$ |
379.2 |
|
$ |
1,666.8 |
|
$ |
1,371.5 |
| Cost of goods sold |
|
317.3 |
|
|
256.9 |
|
|
1,136.6 |
|
|
949.7 |
| Gross
Profit |
|
155.3 |
|
|
122.3 |
|
|
530.2 |
|
|
421.8 |
| Selling, general and
administrative expenses |
|
65.2 |
|
|
56.2 |
|
|
216.3 |
|
|
189.7 |
| Amortization of intangible
assets |
|
12.0 |
|
|
5.0 |
|
|
26.6 |
|
|
19.7 |
| Operating
Profit |
|
78.1 |
|
|
61.1 |
|
|
287.3 |
|
|
212.4 |
| Interest expense, net |
|
16.1 |
|
|
16.4 |
|
|
66.9 |
|
|
49.2 |
| Loss on extinguishment of
debt, net |
|
— |
|
|
— |
|
|
— |
|
|
17.6 |
| Earnings before Income
Taxes |
|
62.0 |
|
|
44.7 |
|
|
220.4 |
|
|
145.6 |
| Income tax expense |
|
15.9 |
|
|
11.0 |
|
|
54.9 |
|
|
29.6 |
| Net Earnings Including
Redeemable Noncontrolling Interest |
|
46.1 |
|
|
33.7 |
|
|
165.5 |
|
|
116.0 |
| Less: Net earnings
attributable to redeemable noncontrolling interest |
|
— |
|
|
— |
|
|
— |
|
|
33.7 |
| Net Earnings Available
to Common Stockholders |
$ |
46.1 |
|
$ |
33.7 |
|
$ |
165.5 |
|
$ |
82.3 |
| |
|
|
|
|
|
|
|
| Earnings per share of
Common Stock: |
|
|
|
|
|
|
|
| Basic |
$ |
0.35 |
|
$ |
0.25 |
|
$ |
1.24 |
|
$ |
0.88 |
| Diluted |
$ |
0.35 |
|
$ |
0.25 |
|
$ |
1.23 |
|
$ |
0.88 |
| |
|
|
|
|
|
|
|
|
Weighted-Average shares of Common Stock
Outstanding: |
|
|
|
|
|
|
| Basic |
|
131.4 |
|
|
135.7 |
|
|
133.0 |
|
|
93.5 |
| Diluted |
|
132.9 |
|
|
136.1 |
|
|
134.1 |
|
|
93.8 |
| |
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS
(Unaudited)(in millions)
| |
September 30, 2023 |
|
September 30, 2022 |
| |
|
|
|
|
ASSETS |
| Current
Assets |
|
|
|
|
Cash and cash equivalents |
$ |
48.4 |
|
|
$ |
35.8 |
|
|
Receivables, net |
|
168.2 |
|
|
|
173.3 |
|
|
Inventories |
|
194.3 |
|
|
|
199.8 |
|
|
Prepaid expenses and other current assets |
|
13.3 |
|
|
|
12.4 |
|
|
Total Current Assets |
|
424.2 |
|
|
|
421.3 |
|
| |
|
|
|
| Property, net |
|
8.5 |
|
|
|
8.0 |
|
| Goodwill |
|
65.9 |
|
|
|
65.9 |
|
| Intangible assets, net |
|
176.8 |
|
|
|
203.3 |
|
| Deferred income taxes |
|
4.2 |
|
|
|
— |
|
| Other assets |
|
12.0 |
|
|
|
8.7 |
|
|
Total Assets |
$ |
691.6 |
|
|
$ |
707.2 |
|
| |
|
|
|
| |
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ DEFICIT |
| Current
Liabilities |
|
|
|
|
Accounts payable |
$ |
89.0 |
|
|
$ |
93.8 |
|
|
Other current liabilities |
|
61.2 |
|
|
|
49.7 |
|
|
Total Current Liabilities |
|
150.2 |
|
|
|
143.5 |
|
| |
|
|
|
| Long-term debt |
|
856.8 |
|
|
|
929.5 |
|
| Deferred income taxes |
|
0.4 |
|
|
|
2.2 |
|
| Other liabilities |
|
7.7 |
|
|
|
8.2 |
|
|
Total Liabilities |
|
1,015.1 |
|
|
|
1,083.4 |
|
| |
|
|
|
| Stockholders’
Deficit |
|
|
|
|
Common stock |
|
1.4 |
|
|
|
1.4 |
|
|
Additional paid-in capital |
|
19.3 |
|
|
|
7.0 |
|
|
Accumulated deficit |
|
(190.1 |
) |
|
|
(355.6 |
) |
|
Accumulated other comprehensive loss |
|
(3.1 |
) |
|
|
(4.3 |
) |
|
Treasury stock, at cost |
|
(151.0 |
) |
|
|
(24.7 |
) |
|
Total Stockholders’ Deficit |
|
(323.5 |
) |
|
|
(376.2 |
) |
|
Total Liabilities and Stockholders’ Deficit |
$ |
691.6 |
|
|
$ |
707.2 |
|
|
|
|
|
|
|
|
|
|
SELECTED CONDENSED CONSOLIDATED CASH
FLOWS INFORMATION (Unaudited)(in
millions)
| |
Twelve Months Ended September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
| Cash provided by (used
in): |
|
|
|
|
Operating activities |
$ |
215.6 |
|
|
$ |
21.0 |
|
|
Investing activities |
|
(1.8 |
) |
|
|
(1.8 |
) |
|
Financing activities |
|
(201.7 |
) |
|
|
(135.0 |
) |
|
Effect of exchange rate changes on cash and cash equivalents |
|
0.5 |
|
|
|
(1.0 |
) |
| Net increase
(decrease) in cash and cash equivalents |
$ |
12.6 |
|
|
$ |
(116.8 |
) |
| |
|
|
|
|
|
|
|
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 available to common
stockholders, Adjusted diluted earnings per share of common stock
and Adjusted EBITDA. 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 available to common stockholders and
Adjusted diluted earnings per share of common stockBellRing
believes Adjusted net earnings available to common stockholders and
Adjusted diluted earnings per share of common stock 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 available to common stockholders and
Adjusted diluted earnings per share of common stock are adjusted
for the following items:
- Loss on extinguishment of debt, net: BellRing has excluded
losses recorded on extinguishment of debt, inclusive of the
write-off of debt issuance costs and deferred financing fees and
the write-off of net unamortized debt discounts, as such losses are
inconsistent in amount and frequency. Additionally, BellRing
believes that these losses 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.
- Separation costs: BellRing has excluded certain expenses
incurred in connection with (i) Post’s distribution of 80.1% of its
interest in BellRing and (ii) 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.
- Provision for legal matters: BellRing has excluded gains and
losses recorded to recognize the anticipated or actual resolution
of certain litigation as BellRing believes such gains and losses do
not reflect expected ongoing future operating income and 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.
- 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.
- Resolution of dispute with former contract manufacturer:
BellRing has excluded certain non-cash write-offs recorded in
connection with the resolution of a dispute with a former contract
manufacturer as the amount and frequency of such losses are not
consistent. Additionally, BellRing believes that these losses do
not reflect expected ongoing future operating expenses and do not
contribute to a meaningful evaluation of BellRing’s current
operating performance to other periods.
- 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.
- Restructuring and facility closure costs, including accelerated
depreciation: BellRing has excluded certain costs associated with
facility closures as the amount and frequency of such adjustments
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.
- NCI adjustment: BellRing has included an adjustment to reflect
the removal of non-GAAP adjustments which are attributable to the
NCI in the periods prior to the Spin-off, as BellRing believes this
adjustment contributes to a more meaningful evaluation of
BellRing’s current operating performance.
- 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
BellRing 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.Adjusted
EBITDA reflects adjustments for income tax expense, interest
expense, net and depreciation and amortization including
accelerated depreciation and amortization, and the following
adjustments discussed above: loss on extinguishment of debt, net,
separation costs, provision for legal matters, mark-to-market
adjustments on commodity hedges, resolution of dispute with former
contract manufacturer, foreign currency gain/loss on intercompany
loans and restructuring and facility closure costs excluding
accelerated depreciation. Additionally, Adjusted EBITDA reflects
adjustments for the following items:
- 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.
- Net earnings attributable to
redeemable noncontrolling interest: BellRing has included
adjustments for the portion of its consolidated net earnings which
were allocated to the NCI for the periods prior to the Spin-off,
allowing for the calculation of Adjusted EBITDA to include 100% of
BellRing as BellRing’s management evaluates BellRing’s operating
performance on a basis that includes 100% of BellRing.
RECONCILIATION OF NET EARNINGS AVAILABLE
TO COMMON STOCKHOLDERS TO ADJUSTED NET EARNINGS
AVAILABLE TO COMMON STOCKHOLDERS (Unaudited)(in
millions)
| |
|
Three Months Ended September 30, |
|
Twelve Months Ended September 30, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Net
Earnings Available to Common Stockholders |
$ |
46.1 |
|
|
$ |
33.7 |
|
|
$ |
165.5 |
|
|
$ |
82.3 |
|
| |
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
| |
Loss on extinguishment of
debt, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17.6 |
|
| |
Separation costs |
|
— |
|
|
|
1.3 |
|
|
|
0.7 |
|
|
|
14.5 |
|
| |
Provision for legal
matters |
|
5.0 |
|
|
|
8.0 |
|
|
|
5.0 |
|
|
|
8.0 |
|
| |
Accelerated amortization |
|
7.1 |
|
|
|
0.1 |
|
|
|
7.1 |
|
|
|
0.1 |
|
| |
Mark-to-market adjustments on
commodity hedges |
|
(0.8 |
) |
|
|
0.3 |
|
|
|
3.1 |
|
|
|
0.5 |
|
| |
Resolution of dispute with
former contract manufacturer |
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
2.4 |
|
| |
Foreign currency loss (gain)
on intercompany loans |
|
— |
|
|
|
0.3 |
|
|
|
(0.6 |
) |
|
|
1.0 |
|
| |
Restructuring and facility
closure costs, including accelerated depreciation |
|
— |
|
|
|
0.3 |
|
|
|
— |
|
|
|
0.3 |
|
| |
NCI adjustment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(12.5 |
) |
| |
Total Net
Adjustments |
|
11.3 |
|
|
|
10.4 |
|
|
|
15.3 |
|
|
|
31.9 |
|
| Income tax effect
on adjustments(1) |
|
(2.7 |
) |
|
|
(2.3 |
) |
|
|
(3.6 |
) |
|
|
(5.3 |
) |
| Adjusted
Net Earnings Available to Common Stockholders |
$ |
54.7 |
|
|
$ |
41.8 |
|
|
$ |
177.2 |
|
|
$ |
108.9 |
|
| |
|
|
|
|
|
|
|
|
| (1) For the
periods subsequent to the Spin-off (March 11, 2022 through
September 30, 2022 and October 1, 2022 through September 30, 2023),
income tax effect on adjustments was calculated on all items,
except for separation costs, using a rate of 24.0%. For the period
prior to the Spin-off (October 1, 2021 through March 10, 2022),
income tax effect on adjustments was calculated on all items,
except for separation costs and NCI adjustment, using a rate of
7.0%, which represents the effective income tax rate on BellRing’s
distributive share from BellRing LLC. For the period prior to the
Spin-off, income tax effect for NCI adjustment was calculated using
a rate of 0.0%. For all periods, income tax effect for separation
costs was calculated using a rate of 8.0%. |
| |
RECONCILIATION OF DILUTED EARNINGS PER
SHARE OF COMMON STOCK TO ADJUSTED DILUTED EARNINGS
PER SHARE OF COMMON STOCK (Unaudited)
| |
|
Three Months Ended September 30, |
|
Twelve Months Ended September 30, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Diluted
Earnings per share of Common Stock |
$ |
0.35 |
|
|
$ |
0.25 |
|
|
$ |
1.23 |
|
|
$ |
0.88 |
|
| |
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
| |
Loss on extinguishment of
debt, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.19 |
|
| |
Separation costs |
|
— |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.15 |
|
| |
Provision for legal
matters |
|
0.04 |
|
|
|
0.06 |
|
|
|
0.04 |
|
|
|
0.08 |
|
| |
Accelerated amortization |
|
0.05 |
|
|
|
— |
|
|
|
0.05 |
|
|
|
— |
|
| |
Mark-to-market adjustments on
commodity hedges |
|
(0.01 |
) |
|
|
— |
|
|
|
0.02 |
|
|
|
0.01 |
|
| |
Resolution of dispute with
former contract manufacturer |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.03 |
|
| |
Foreign currency loss on
intercompany loans |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
| |
NCI adjustment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.13 |
) |
| |
Total Net
Adjustments |
|
0.08 |
|
|
|
0.07 |
|
|
|
0.12 |
|
|
|
0.34 |
|
| Income tax effect
on adjustments(1) |
|
(0.02 |
) |
|
|
(0.01 |
) |
|
|
(0.03 |
) |
|
|
(0.06 |
) |
| Adjusted
Diluted Earnings per share of Common Stock |
$ |
0.41 |
|
|
$ |
0.31 |
|
|
$ |
1.32 |
|
|
$ |
1.16 |
|
| |
|
|
|
|
|
|
|
|
| (1) For the
periods subsequent to the Spin-off (March 11, 2022 through
September 30, 2022 and October 1, 2022 through September 30, 2023),
income tax effect on adjustments was calculated on all items,
except for separation costs, using a rate of 24.0%. For the period
prior to the Spin-off (October 1, 2021 through March 10, 2022),
income tax effect on adjustments was calculated on all items,
except for separation costs and NCI adjustment, using a rate of
7.0%, which represents the effective income tax rate on BellRing’s
distributive share from BellRing LLC. For the period prior to the
Spin-off, income tax effect for NCI adjustment was calculated using
a rate of 0.0%. For all periods, income tax effect for separation
costs was calculated using a rate of 8.0%. |
| |
RECONCILIATION OF NET EARNINGS AVAILABLE
TO COMMON STOCKHOLDERS TO ADJUSTED EBITDA
(Unaudited)(in millions)
| |
Three Months Ended September 30, |
|
Twelve Months Ended September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Net Earnings Available
to Common Stockholders |
$ |
46.1 |
|
|
$ |
33.7 |
|
|
$ |
165.5 |
|
|
$ |
82.3 |
|
| Income tax expense |
|
15.9 |
|
|
|
11.0 |
|
|
|
54.9 |
|
|
|
29.6 |
|
| Interest expense, net |
|
16.1 |
|
|
|
16.4 |
|
|
|
66.9 |
|
|
|
49.2 |
|
| Depreciation and amortization,
including accelerated depreciation and amortization |
|
12.5 |
|
|
|
5.4 |
|
|
|
28.3 |
|
|
|
21.3 |
|
| Loss on extinguishment of
debt, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17.6 |
|
| Separation costs |
|
— |
|
|
|
1.3 |
|
|
|
0.7 |
|
|
|
14.5 |
|
| Stock-based compensation |
|
3.7 |
|
|
|
3.1 |
|
|
|
14.5 |
|
|
|
11.0 |
|
| Provision for legal
matters |
|
5.0 |
|
|
|
8.0 |
|
|
|
5.0 |
|
|
|
8.0 |
|
| Mark-to-market adjustments on
commodity hedges |
|
(0.8 |
) |
|
|
0.3 |
|
|
|
3.1 |
|
|
|
0.5 |
|
| Resolution of dispute with
former contract manufacturer |
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
2.4 |
|
| Foreign currency loss (gain)
on intercompany loans |
|
— |
|
|
|
0.3 |
|
|
|
(0.6 |
) |
|
|
1.0 |
|
| Restructuring and facility
closure costs, excluding accelerated depreciation |
|
— |
|
|
|
0.3 |
|
|
|
— |
|
|
|
0.3 |
|
| Net earnings attributable to
redeemable noncontrolling interest |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
33.7 |
|
| Adjusted
EBITDA |
$ |
98.5 |
|
|
$ |
79.9 |
|
|
$ |
338.3 |
|
|
$ |
271.4 |
|
| Adjusted EBITDA as a
percentage of Net Sales |
|
20.8 |
% |
|
|
21.1 |
% |
|
|
20.3 |
% |
|
|
19.8 |
% |
BellRing Brands (NYSE:BRBR)
過去 株価チャート
から 12 2024 まで 1 2025
BellRing Brands (NYSE:BRBR)
過去 株価チャート
から 1 2024 まで 1 2025
