Actionable news
0
All posts from Actionable news
Actionable news in BDBD: Boulder Brands, Inc.,

Boulder Brands Announces 2015 Third Quarter Results

The following excerpt is from the company's SEC filing.

Boulder Brands, Inc. (NasdaqGM: BDBD) today announced its financial results for the third quarter ended September 30, 2015. For the third quarter of 2015 compared to the equivalent period of 2014:

Net sales decreased 0.7% to $132.9 million. Foreign exchange rates negatively impacted the third quarter of 2015 by approximately $1.5 million.

Consumption, defined as sell-through at all channels, increased 0.5% in the third quarter.

GAAP operating income was $3.3 million. Excluding certain items, non-GAAP operating income decreased 0.8% to $13.2 million .

Adjusted EBITDA decreased 6.2% to $19.6 million

GAAP diluted earnings per share for the third quarter of 2015 was $0.01, compared to diluted loss per share of $2.17 in last years third quarter.

Non-GAAP diluted earnings per share for the third quarter of 2015 were $0.08, as compared to $0.08 in last years third quarter.

The Company maintained its 2015 earnings outlook range of $0.20 per share to $0.25 per share.

Jim Leighton, Interim Chief Executive Officer and Chief Operating Officer, stated, Our organization is committed to being more efficient in our overall cost structure, more effective in managing our brands and products, and more balanced in customer and consumer marketing. Our third quarter results demonstrate our ability to implement these changes and sequentially improve results, as we have realigned our organization, focused on operational effectiveness and stabilized sales. As a result, our sales and overall profitability improved meaningfully in the third quarter compared to our second quarter. Our team will continue moving swiftly to address specific business challenges and opportunities, while setting the stage to deliver sustainable long-term growth.

2015 Third Quarter Results

Total Company net sales in the third quarter of 2015 decreased 0.7% to $132.9 million, compared to net sales of $133.9 million in the third quarter of 2014.

Net sales for the Companys Natural segment increased 6.6% to $89.0 million in the third quarter of 2015 compared to $83.5 million in the third quarter of 2014. The Companys gluten-free brands Udis and Glutino reported net sales growth of 7.7% and a decline of 5.9%, respectively. EVOLs net sales increased 24.8%.

Net sales for the Companys Balance segment decreased 12.8% to $43.9 million in the third quarter of 2015 compared to $50.4 million in the third quarter of 2014. Earth Balance reported a net sales increase of 3.6% in the third quarter of 2015 compared to the third quarter of 2014.

The chart below highlights net sales, gross profit, gross margin, and brand profit (calculated as gross profit less marketing, selling and royalty expense (income), net and certain other costs) for the third quarters of 2015 and 2014, by the Companys Natural and Balance segments.

Segment Results Third Quarter

$ in Millions

Margin

Net Sales:

Gross Profit

Brand Profit

Gross profit in the third quarter of 2015 decreased 4.8% to $48.0 million, or 36.1% of net sales, compared to $50.4 million, or 37.7% of net sales, in the third quarter of 2014. Overall gross margin was mainly impacted by the mix shift to the lower margin Natural segment from the higher margin Balance segment.

Brand Profit in the third quarter of 2015 for the Companys Natural segment decreased 7.9% to $13.7 million, or 15.4% of net sales, compared to $14.9 million, or 17.8% of net sales, in last years third quarter. Brand Profit margin for the Companys Natural segment was primarily impacted by the lower gross margin, due to higher bread yield loss at its Denver facility and lower overhead absorption in its Canadian facility, and a negative mix impact from its lower margin frozen category.

Brand Profit for the Companys Balance segment, decreased 9.0% to $16.7 million, or 38.0% of net sales, in the third quarter of 2015 from $18.3 million, or 36.4% of net sales, in the previous years third quarter. Brand Profit margin improvement was mainly attributable to higher gross margin due to favorable mix within the Smart Balance portfolio.

The table below provides a reconciliation of GAAP operating income (loss) to non-GAAP operating income and non-GAAP adjusted EBITDA.

Reconciliation of Operating Income (Loss) to Non-GAAP Operating Income and Adjusted EBITDA Third Quarter

Operating income (loss)

(138.1

Add back certain items affecting operating income (loss):

Restructuring, acquisition and integration-related costs

Impairment charge

Non-recurring charges

Stock-based compensation modification charges

Non-GAAP operating income

Add back non-cash and other items affecting operating income:

Depreciation and amortization

Stock-based compensation expense

Subtotal

Less other expense (income), net and net loss attributable to non-controlling interest*

2015 excludes gain recognized on sale of an investment further described below.

Operating income was $3.3 million in the third quarter of 2015 compared to operating loss of $138.1 million in the third quarter of 2014. Excluding certain items, non-GAAP operating income was $13.2 million in the third quarter of 2015 compared to non-GAAP operating income of $13.3 million in the third quarter of 2014. The charges impacting operating income in the third quarter of 2015 primarily consisted of restructuring and severance costs, stock-based compensation modification charges and costs associated with the Companys exploration of strategic alternatives. The charges impacting operating loss in the third quarter of 2014 included an impairment charge for Smart Balance of $150.5 million, and to a much lesser extent, severance and relocation charges. Also excluded from Adjusted EBITDA in 2015 was a gain on the sale of Suja shares within the Companys investment subsidiary, Boulder Brands Investment Group (BBIG). In the quarter, BBIG tendered 35% of its shares in Suja in a transaction with The Coca Cola Company and Goldman Sachs, resulting in a gain of approximately $4.7 million, with $0.5 million of the gain attributable to the non-controlling interest.

Other expense (income), net, of $0.2 million in the third quarter of 2015, primarily included foreign currency losses. Other expense (income), net, of $0.6 million in the third quarter of 2014, primarily included foreign currency losses, partially offset by gains associated with commodity hedging contracts. Adjusted EBITDA decreased 6.2% to $19.6 million compared to last years third quarter of $20.9 million.

The table below provides a reconciliation of GAAP Net Income (Loss) and GAAP Diluted EPS to non-GAAP Net Income and non-GAAP Diluted EPS.

Reconciliation of Certain Items Affecting Net Income (Loss) and Earnings (Loss) Per Share (EPS), Net of Tax Third...


More