Certain statements made herein are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by or include words such as "will", "expect", "intends" or other similar words, phrases or expressions. These statements relate to future events or our future financial or operational performance and involve known and unknown risks, uncertainties and other factors that could cause our actual results, levels of activity, performance or achievement to differ materially from those expressed or implied by these forward-looking statements. We caution you that these forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. You should not place undue reliance on forward-looking statements. These statements reflect our current views with respect to future events, are based on assumptions and are subject to risks and uncertainties. These risks and uncertainties relate to, among other things, our ability to achieve our estimates of OWYN's net sales and Adjusted EBITDA and our anticipated synergies from the OWYN Acquisition, our net leverage ratio post-acquisition, our Adjusted EPS post-acquisition, our ability to maintain OWYN personnel and effectively integrate OWYN, our operations being dependent on changes in consumer preferences and purchasing habits regarding our products, a global supply chain and effects of supply chain constraints and inflationary pressure on us and our contract manufacturers, our ability to continue to operate at a profit or to maintain our margins, the effect pandemics or other global disruptions on our business, financial condition and results of operations, the sufficiency of our sources of liquidity and capital, our ability to maintain current operation levels and implement our growth strategies, our ability to maintain and gain market acceptance for our products or new products, our ability to capitalize on attractive opportunities, our ability to respond to competition and changes in the economy including changes regarding inflation and increasing ingredient and packaging costs and labor challenges at our contract manufacturers and third party logistics providers, the amounts of or changes with respect to certain anticipated raw materials and other costs, difficulties and delays in achieving the synergies and cost savings in connection with acquisitions, changes in the business environment in which we operate including general financial, economic, capital market, regulatory and geopolitical conditions affecting us and the industry in which we operate, our ability to maintain adequate product inventory levels to timely supply customer orders, changes in taxes, tariffs, duties, governmental laws and regulations, the availability of or competition for other brands, assets or other opportunities for investment by us or to expand our business, competitive product and pricing activity, difficulties of managing growth profitably, the loss of one or more members of our management team, potential for increased costs and harm to our business resulting from unauthorized access of the information technology systems we use in our business, expansion of our wellness platform and other risks and uncertainties indicated in the Company's Form 10-K, Form 10-Q, and Form 8-K reports (including all amendments to those reports) filed with the U.S. Securities and Exchange Commission from time to time. In addition, forward-looking statements provide the Company's expectations, plans or forecasts of future events and views as of the date of this communication. Except as required by law, the Company undertakes no obligation to update such statements to reflect events or circumstances arising after such date and cautions investors not to place undue reliance on any such forward-looking statements. These forward-looking statements should not be relied upon as representing the Company's assessments as of any date subsequent to the date of this communication.

 
 
             The Simply Good Foods Company and Subsidiaries 
                       Consolidated Balance Sheets 
           (Unaudited, dollars in thousands, except share and 
                             per share data) 
 
                                   August 31, 2024     August 26, 2023 
                                  -----------------  ------------------- 
Assets 
Current assets: 
   Cash                            $       132,530    $        87,715 
   Accounts receivable, net                150,721            145,078 
   Inventories                             142,107            116,591 
   Prepaid expenses                          5,730              6,294 
   Other current assets                      9,192             15,974 
                                      ------------       ------------ 
   Total current assets                    440,280            371,652 
 
Long-term assets: 
   Property and equipment, net              24,830             24,861 
   Intangible assets, net                1,336,466          1,108,119 
   Goodwill                                591,687            543,134 
   Other long-term assets                   42,881             49,318 
                                      ------------       ------------ 
   Total assets                    $     2,436,144    $     2,097,084 
                                      ============       ============ 
 
Liabilities and stockholders' 
equity 
Current liabilities: 
   Accounts payable                $        58,559    $        52,712 
   Accrued interest                            265              1,940 
   Accrued expenses and other 
    current liabilities                     49,791             35,062 
   Current maturities of 
    long-term debt                              --                143 
                                      ------------       ------------ 
   Total current liabilities               108,615             89,857 
 
Long-term liabilities: 
   Long-term debt, less current 
    maturities                             397,485            281,649 
   Deferred income taxes                   166,012            116,133 
   Other long-term liabilities              36,546             38,346 
                                      ------------       ------------ 
   Total liabilities                       708,658            525,985 
See commitments and 
contingencies (Note 11) 
 
Stockholders' equity: 
   Preferred stock, $0.01 par 
   value, 100,000,000 shares 
   authorized, none issued                      --                 -- 
   Common stock, $0.01 par 
    value, 600,000,000 shares 
    authorized, 102,515,315 and 
    101,929,868 issued at August 
    31, 2024 and August 26, 
    2023, respectively                       1,025              1,019 
   Treasury stock, 2,365,100 
    shares and 2,365,100 shares 
    at cost at August 31, 2024 
    and August 26, 2023, 
    respectively                           (78,451)           (78,451) 
   Additional paid-in-capital            1,319,686          1,303,168 
   Retained earnings                       487,265            347,956 
   Accumulated other 
    comprehensive loss                      (2,039)            (2,593) 
                                      ------------       ------------ 
   Total stockholders' equity            1,727,486          1,571,099 
                                      ------------       ------------ 
Total liabilities and 
 stockholders' equity              $     2,436,144    $     2,097,084 
                                      ============       ============ 
 
 
 
                  The Simply Good Foods Company and Subsidiaries 
                Consolidated Statements of Income and Comprehensive 
                                       Income 
                 (Unaudited, dollars in thousands, except share and 
                                  per share data) 
 
                         14-Weeks       13-Weeks       53-Weeks 
                           Ended          Ended          Ended      52-Weeks Ended 
                       -------------  -------------  -------------  --------------- 
                        August 31,     August 26,     August 31, 
                           2024           2023           2024       August 26, 2023 
                       -------------  -------------  -------------  --------------- 
Net sales              $    375,687   $    320,418   $  1,331,321   $  1,242,672 
Cost of goods sold          229,735        199,968        819,755        789,252 
                        -----------    -----------    -----------    ----------- 
Gross profit                145,952        120,450        511,566        453,420 
 
Operating expenses: 
   Selling and 
    marketing                40,832         30,839        143,929        119,489 
   General and 
    administrative           41,273         29,481        129,699        111,566 
   Depreciation and 
    amortization              4,206          4,381         16,917         17,416 
   Business 
    transaction 
    costs                    11,821             --         14,524             -- 
                        -----------    -----------    -----------    ----------- 
Total operating 
 expenses                    98,132         64,701        305,069        248,471 
 
Income from 
 operations                  47,820         55,749        206,497        204,949 
 
Other income 
(expense): 
   Interest income            1,412            484          4,307          1,144 
   Interest expense          (9,371)        (6,867)       (26,029)       (30,068) 
   Gain (loss) on 
    foreign currency 
    transactions                 76           (418)           267           (344) 
   Other income 
    (expense)                   900              1          1,008             11 
                        -----------    -----------    -----------    ----------- 
Total other income 
 (expense)                   (6,983)        (6,800)       (20,447)       (29,257) 
 

(MORE TO FOLLOW) Dow Jones Newswires

October 24, 2024 07:00 ET (11:00 GMT)