B&G Foods, Inc., has announced financial results for the fourth quarter and full year 2018.
Fourth Quarter 2018 Financial Highlights (vs. Fourth Quarter 2017):
- Completed the sale of Pirate Brands to The Hershey Company for approximately $420.0 million early in the fourth quarter; recognized a pre-tax gain on sale of $176.4 million
- Net sales decreased 1.8% to $458.1 million due to the sale of Pirate Brands
- Base business net sales1 increased 1.6% to $452.6 million
- Diluted earnings per share decreased 12.8% to $1.70
- Adjusted diluted earnings per share1 decreased 40.4% to $0.34
- Net income decreased 13.8% to $111.9 million
- EBITDA1 increased 283.1% to $188.6 million
- Adjusted EBITDA1 decreased 15.2% to $58.5 million
- Net cash provided by operating activities increased to $70.4 million from $30.3 million
- Prepaid the entire remaining $500.1 million principal amount of term loans outstanding under the Company’s credit facility with the proceeds of the Pirate Brands sale and additional revolver borrowings
Full Year 2018 Financial Highlights (vs. Full Year 2017):
- Net sales increased 3.3% to $1,700.8 million
- Base business net sales1 increased 0.9% to $1,564.2 million
- Diluted earnings per share decreased 20.2% to $2.60
- Adjusted diluted earnings per share1 decreased 12.7% to $1.85
- Net income decreased 20.7% to $172.4 million
- EBITDA1 increased 36.9% to $397.4 million
- Adjusted EBITDA1 decreased 5.7% to $314.2 million
- Net cash provided by operating activities increased to $209.5 million from $37.8 million
Guidance for Full Year Fiscal 2019
- Net sales range of $1.635 billion to $1.665 billion
- Adjusted EBITDA range of $305.0 million to $320.0 million
- Adjusted diluted earnings per share range of $1.85 to $2.00
Guidance for First Quarter of 2019
- Net sales range of $400.0 million to $412.0 million
- Adjusted EBITDA range of $78.0 million to $82.0 million
- Adjusted diluted earnings per share range of $0.47 to $0.52
Robert C. Cantwell, President and Chief Executive Officer of B&G Foods, stated, “2018 was a year of company record net sales, as we continue to march towards $2 billion in net sales. Our EBITDA, which benefited from the gain on the sale of Pirate Brands, was also a company record. And I am happy to report that we achieved the high end of our inventory reduction plan target for the year, reducing our inventory by approximately $100 million as compared to year end 2017. However, our margins and our adjusted EBTIDA fell short of our expectations, as we continue to face elevated input and freight costs that in 2018 we were unable to fully offset with price increases and cost savings initiatives.”
Mr. Cantwell continued, “Looking forward in 2019, we expect to see continued benefits from our cost savings initiatives, which we plan to enhance in 2019, as well as the full year impact of our 2018 price increases and a partial year impact of an additional round of price increases for 2019 that we have already communicated to our customers and that we expect to realize beginning towards the end of the second quarter. While we are disappointed in our 2018 profitability, we are confident that the actions we are now taking will enable us to achieve our full year 2019 guidance.”
“We remain committed to our business model, which is premised on high margin brands, a lean cost structure, strong excess cash generation, and growth through accretive acquisitions. Our very strong cash flow generation continues to support our growth by acquisition strategy, as well as our longstanding policy of returning a substantial portion of our excess cash to our shareholders in the form of dividends.”
To view full financial release, click here.
B&G Foods, Inc., has announced financial results for the fourth quarter and full year 2018.
Fourth Quarter 2018 Financial Highlights (vs. Fourth Quarter 2017):
- Completed the sale of Pirate Brands to The Hershey Company for approximately $420.0 million early in the fourth quarter; recognized a pre-tax gain on sale of $176.4 million
- Net sales decreased 1.8% to $458.1 million due to the sale of Pirate Brands
- Base business net sales1 increased 1.6% to $452.6 million
- Diluted earnings per share decreased 12.8% to $1.70
- Adjusted diluted earnings per share1 decreased 40.4% to $0.34
- Net income decreased 13.8% to $111.9 million
- EBITDA1 increased 283.1% to $188.6 million
- Adjusted EBITDA1 decreased 15.2% to $58.5 million
- Net cash provided by operating activities increased to $70.4 million from $30.3 million
- Prepaid the entire remaining $500.1 million principal amount of term loans outstanding under the Company’s credit facility with the proceeds of the Pirate Brands sale and additional revolver borrowings
Full Year 2018 Financial Highlights (vs. Full Year 2017):
- Net sales increased 3.3% to $1,700.8 million
- Base business net sales1 increased 0.9% to $1,564.2 million
- Diluted earnings per share decreased 20.2% to $2.60
- Adjusted diluted earnings per share1 decreased 12.7% to $1.85
- Net income decreased 20.7% to $172.4 million
- EBITDA1 increased 36.9% to $397.4 million
- Adjusted EBITDA1 decreased 5.7% to $314.2 million
- Net cash provided by operating activities increased to $209.5 million from $37.8 million
Guidance for Full Year Fiscal 2019
- Net sales range of $1.635 billion to $1.665 billion
- Adjusted EBITDA range of $305.0 million to $320.0 million
- Adjusted diluted earnings per share range of $1.85 to $2.00
Guidance for First Quarter of 2019
- Net sales range of $400.0 million to $412.0 million
- Adjusted EBITDA range of $78.0 million to $82.0 million
- Adjusted diluted earnings per share range of $0.47 to $0.52
Robert C. Cantwell, President and Chief Executive Officer of B&G Foods, stated, “2018 was a year of company record net sales, as we continue to march towards $2 billion in net sales. Our EBITDA, which benefited from the gain on the sale of Pirate Brands, was also a company record. And I am happy to report that we achieved the high end of our inventory reduction plan target for the year, reducing our inventory by approximately $100 million as compared to year end 2017. However, our margins and our adjusted EBTIDA fell short of our expectations, as we continue to face elevated input and freight costs that in 2018 we were unable to fully offset with price increases and cost savings initiatives.”
Mr. Cantwell continued, “Looking forward in 2019, we expect to see continued benefits from our cost savings initiatives, which we plan to enhance in 2019, as well as the full year impact of our 2018 price increases and a partial year impact of an additional round of price increases for 2019 that we have already communicated to our customers and that we expect to realize beginning towards the end of the second quarter. While we are disappointed in our 2018 profitability, we are confident that the actions we are now taking will enable us to achieve our full year 2019 guidance.”
“We remain committed to our business model, which is premised on high margin brands, a lean cost structure, strong excess cash generation, and growth through accretive acquisitions. Our very strong cash flow generation continues to support our growth by acquisition strategy, as well as our longstanding policy of returning a substantial portion of our excess cash to our shareholders in the form of dividends.”
To view full financial release, click here.
