Business
The Simply Good Foods Company Reports Second Quarter 2019 Financial Results
DENVER, April 04, 2019 (GLOBE NEWSWIRE) -- The Simply Good Foods Company (NASDAQ:SMPL) ("Simply Good Foods," or the "Company"), a developer, marketer and
About this update from The Simply Good Foods Company
[{"type":"text","content":"DENVER, April 04, 2019 (GLOBE NEWSWIRE) -- The Simply Good Foods Company (NASDAQ:SMPL) (\"Simply Good Foods,\" or the \"Company\"), a developer, marketer and seller of branded nutritional foods and snacking products, today reported financial results for the thirteen and twenty-six week periods ended February 23, 2019.\"Our strong second quarter and year-to-date results reflect the successful execution of our annual plan as well as our strategic initiatives,\" said Joseph E. Scalzo, President and Chief Executive Officer of Simply Good Foods. \"We delivered double-digit sales, gross profit and adjusted EBITDA growth in both the second quarter and year-to-date periods. I'm particularly pleased that our U.S. retail takeaway, as measured by IRI for the thirteen week period ended February 23, 2019, continued to be strong and was up 22.1% versus the prior year. We continued to expand adjusted EBITDA margin while also making investments in marketing and organizational capabilities that we believe will benefit the company in the near and long term.\"Second Quarter 2019 Financial Highlights vs. Second Quarter 2018Net sales increased 13.2%, or $14.5 million, to $123.8 millionGross profit margin of 46.6%, an increase of 60 basis pointsIncome tax expense was $4.0 million versus a benefit of $26.8 million in the prior yearNet income decreased 69.3%, or $28.7 million, to $12.7 millionEarnings per diluted share (\"EPS\") of $0.15 was a decrease of $0.41 per fully diluted shareAdjusted EBITDA(1) increased 22.1% to $23.0 million.Net sales increased $14.5 million, or 13.2%, to $123.8 million, primarily driven by volume growth. As expected, net sales growth did benefit from lower frequency of bar promotions partially offset by a shift in non-price related customer activity, as discussed last quarter.Gross profit was $57.6 million for the second quarter of 2019, an increase of $7.4 million or 14.7%. Gross profit margin was 46.6% compared to 46.0% for the thirteen weeks ended February 24, 2018 primarily driven by lower frequency of bar promotions, partially offset by the aforementioned non-price related customer activity. This shift in customer activity only impacts fiscal 2019 amounts, resulting in an unfavorable impact on 2019 year-to-date gross margin of about 110 basis points.Net income for the second quarter of 2019 was $12.7 million, compared w...