Flowers Foods, Inc. · NYSE:FLO
Flowers Foods — Q3 2020 Earnings Presentation
18 slides from Flowers Foods's earnings presentation, Nov 6, 2020
Slide 1: Third Quarter 2020 Review
Third Quarter 2020 Review November 5, 2020
Slide 2: Regarding Forward-Looking Statements
Regarding Forward-Looking Statements Statements contained in this presentation that are not historical facts are forward-looking statements. Forward-looking statements relate to current expectations regarding our future financial condition, performance and results of operations and the ultimate impa
Slide 3: Key Messages
Key Messages • Continued strength in branded retail, helped by new product success • Margin improvement driven by mix shift and portfolio and supply chain optimization benefits • Four strategic priorities guiding our investment in future growth • Raised sales and EPS guidance to reflect YTD results
Slide 4: Q3 2020 Financial Highlights
Q3 2020 Financial Highlights • Sales increase reflecting the continued impact of the COVID-19 pandemic, new product introductions, lower promotional activity, and a reduction in product returns • Mix shift to branded retail products drove cost leverage and margin increase COMPONENTS OF Q3’20 SALES G
Slide 5: Q3 2020 Financial Review
Q3 2020 Financial Review NET SALES CASH FLOWS - YTD $989.7M +2.4% v PY Cash from Ops Dividends $364.4M $124.9M • Price/Mix +8.1%; Volume -5.7% • Growth from branded retail more than Capex offsetting lower store-branded retail and foodservice sales $68.3M GAAP DILUTED EPS ADJ. EBITDA1 $0.21 +$0.01 v
Slide 6: Fiscal 2020 Guidance (Updated Nov 5, 2020)
Fiscal 2020 Guidance (Updated Nov 5, 2020) Fiscal 2020 Q4 SALES GROWTH1 ADJ. EPS2 Considerations • Food-at-home +5.5% to +6.0% $1.23 to $1.28 consumption remains elevated, though moderating OTHER • Foodservice stabilizing and beginning to recover, still well below normal Depreciation & amortization
Slide 7: Key Drivers to Achieving our Long-term Growth Targets
Key Drivers to Achieving our Long-term Growth Targets LONG-TERM GROWTH +1-2% +4-6% +7-9% TARGETS1 SALES ADJ. EBITDA2 ADJ. EPS3 Focus on leading, iconic brands to grow share ROADMAP TO DELIVERING LONG-TERM TARGETS Portfolio strategy prioritizes higher-priced, higher-profit FY2020 FY2021 FY2022 produc
Slide 8: Information Regarding Non-GAAP Financial Measures
Information Regarding Non-GAAP Financial Measures Information Regarding Non-GAAP Financial Measures The company prepares its consolidated financial statements in accordance with U.S. Generally Accepted Accounting Principles (GAAP). However, from time to time, the company may present in its public st
Slide 9: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Reconciliation of Earnings per Share to Adjusted Earnings per Share For the 12 Weeks Ended Oct. 3, 2020 Oct. 5, 2019 Net income per diluted common share $ 0.21 $ 0.20 Restructuring and related impairment charges 0.07 0.01 Project Centennial consulting co
Slide 10: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Reconciliation of Gross Margin (000s omitted) For the 12 Week For the 12 Week Period Ended Period Ended October 3, 2020 October 5, 2019 Sales $ 989,650 $ 966,561 Materials, supplies, labor and other production costs (exclusive of depreciation and amortiz
Slide 11: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Reconciliation of Selling, Distribution and Administrative Expenses to Adjusted SD&A (000s omitted) For the 12 Week For the 12 Week Period Ended Period Ended October 3, 2020 October 5, 2019 Selling, distribution and administrative expenses $ 386,739 $ 36
Slide 12: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Reconciliation of Net Income to EBITDA and Adjusted EBITDA (000s omitted) For the 12 For the 12 Week Period Week Period Ended Ended October 3, 2020 October 5, 2019 Net income $ 44,347 $ 43,358 Income tax expense 13,113 12,442 Interest expense, net 2,755
Slide 13: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Reconciliation of Income Before Income Taxes to Adjusted EBT (000s omitted) For the 12 Week For the 12 Week Period Ended Period Ended October 3, 2020 October 5, 2019 Income before income taxes $ 57,460 $ 55,800 Project Centennial consulting costs 5,068 -
Slide 14: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Reconciliation of Income Tax Expense to Adjusted Income Tax Expense (000s omitted) For the 12 Week For the 12 Week Period Ended Period Ended October 3, 2020 October 5, 2019 Income tax expense $ 13,113 $ 12,442 Tax impact of: Restructuring and related imp
Slide 15: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Reconciliation of Net Income to Adjusted Net Income (000s omitted) For the 12 Week For the 12 Week Period Ended Period Ended October 3, 2020 October 5, 2019 Net income $ 44,347 $ 43,358 Restructuring and related impairment charges 15,075 2,449 Project Ce
Slide 16: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Reconciliation of Earnings per Share - Full Year Fiscal 2020 Guidance Range Estimate Net income per diluted common share $ 0.65 to $ 0.70 Restructuring and related impairment charges 0.11 0.11 Project Centennial consulting costs 0.05 0.05 ERP road mappin
Slide 17: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Reconciliation of Net Income to EBITDA and Adjusted EBITDA (000s omitted) For the 12 Week For the 16 Week For the 12 Week For the 12 Week Trailing 52 Week Period Ended Period Ended Period Ended Period Ended Period Ended December 28, 2019 April 18, 2020 J
Slide 18: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Reconciliation of Debt to Net Debt and Calculation of Net Debt to Trailing Twelve Month Adjusted EBITDA Ratio (000s omitted) As of October 3, 2020 Current maturities of long-term debt $ - Long-term debt 1,009,839 Total debt 1,009,839 Less: Cash and cash