current operating performance or comparisons of BellRing's 
       operating performance to other periods. 
  d.  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. 
  e.  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. 
  f.  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 sales

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. 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, provision for legal matters, foreign currency gain/loss on intercompany loans and separation costs. Additionally, Adjusted EBITDA reflects an adjustment for the following item:

 
  g.  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 
                   Ended September      Twelve Months Ended 
                         30,               September 30, 
                  -----------------  ------------------------- 
                   2024    2023       2024           2023 
                           ----                      ----- 
Net Earnings      $71.7   $46.1      $246.5       $  165.5 
 
Adjustments: 
 Accelerated 
  amortization       --     7.1        17.4            7.1 
 Mark-to-market 
  adjustments on 
  commodity 
  hedges           (5.7)   (0.8)       (5.3)           3.1 
 Provision for 
  legal matters      --     5.0          --            5.0 
 Foreign 
  currency gain 
  on 
  intercompany 
  loans            (0.3)     --        (0.2)          (0.6) 
 Separation 
  costs              --      --          --            0.7 
 Total Net 
  Adjustments      (6.0)   11.3        11.9           15.3 
Income tax 
 effect on 
 adjustments(1)     1.4    (2.7)       (2.9)          (3.6) 
Adjusted Net 
 Earnings         $67.1   $54.7      $255.5       $  177.2 
                   ====    ====       =====          ===== 
 
(1) Income tax effect on adjustments was calculated 
 on all items, except for separation costs, using a 
 rate of 24.0%. For the twelve months ended September 
 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 Ended   Twelve Months Ended 
                     September 30,        September 30, 
                  -------------------  ------------------- 
                   2024     2023        2024     2023 
                            -----                ----- 
Diluted Earnings 
 per share of 
 Common Stock     $ 0.55   $ 0.35      $ 1.86   $ 1.23 
 
Adjustments: 
 Accelerated 
  amortization        --     0.05        0.13     0.05 
 Mark-to-market 
  adjustments on 
  commodity 
  hedges           (0.05)   (0.01)      (0.04)    0.02 
 Provision for 
  legal matters       --     0.04          --     0.04 
 Separation 
  costs               --       --          --     0.01 
 Total Net 
  Adjustments      (0.05)    0.08        0.09     0.12 
Income tax 
 effect on 
 adjustments(1)     0.01    (0.02)      (0.02)   (0.03) 
                   -----    -----       -----    ----- 
Adjusted Diluted 
 Earnings per 
 share of Common 
 Stock            $ 0.51   $ 0.41      $ 1.93   $ 1.32 
 
(1) Income tax effect on adjustments was calculated 
 on all items, except for separation costs, using a 
 rate of 24.0%. For the twelve months ended September 
 30, 2023, income tax effect for separation costs was 
 calculated using a rate of 8.0%. 
 
 

RECONCILIATION OF NET EARNINGS TO ADJUSTED EBITDA (Unaudited)

(in millions)

 
                   Three Months Ended       Twelve Months Ended 
                      September 30,            September 30, 
                 -----------------------  ------------------------ 
                  2024        2023         2024        2023 
                              ----  ----               -----  ---- 
Net Earnings     $ 71.7      $46.1        $246.5      $165.5 
Income tax 
 expense           25.9       15.9          82.9        54.9 
Interest 
 expense, net      14.5       16.1          58.3        66.9 
Depreciation 
 and 
 amortization, 
 including 
 accelerated 
 amortization       4.7       12.5          36.5        28.3 
Stock-based 
 compensation       5.7        3.7          21.5        14.5 
Provision for 
 legal matters       --        5.0            --         5.0 
Mark-to-market 
 adjustments on 
 commodity 
 hedges            (5.7)      (0.8)         (5.3)        3.1 
Foreign 
 currency gain 
 on 
 intercompany 
 loans             (0.3)        --          (0.2)       (0.6) 
Separation 
 costs               --         --            --         0.7 
Adjusted EBITDA  $116.5      $98.5        $440.2      $338.3 
                  =====       ====  ====   =====       =====  ==== 
Net Earnings as 
 a percentage 
 of Net Sales      12.9%       9.8%         12.3%        9.9% 
                  =====       ====   ===   =====       ===== === 
Adjusted EBITDA 
 as a 
 percentage of 
 Net Sales         21.0%      20.8%         22.1%       20.3% 
 

(END) Dow Jones Newswires

November 18, 2024 17:00 ET (22:00 GMT)