Upcoming AWS Coverage on Sanderson Farms Post-Earnings Results
LONDON, UK / ACCESSWIRE / March 23, 2017 / Active Wall St. announces its post-earnings coverage on Amplify Snack Brands, Inc. (NYSE: BETR). The Company announced its fourth quarter and fiscal 2016 financial results on March 08, 2017. The popcorn and tortilla chip maker surpassed revenue expectations. Register with us now for your free membership at:
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One of Amplify Snack Brands ‘competitors within the Food - Major Diversified space, Sanderson Farms, Inc. (NASDAQ: SAFM), reported on February 23, 2017, its financial results for Q1 FY17 ended January 31, 2017. AWS will be initiating a research report on Sanderson Farms in the coming days.
Today, AWS is promoting its earnings coverage on BETR; touching on SAFM. Get our free coverage by signing up to:
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Earnings Reviewed
For the three months ended December 31, 2016, Amplify Snack's net sales increased 91.1% to $88.6 million compared to $46.4 million for Q4 2015. The increase in net sales reflects a full quarter contribution from both Tyrrells' international portfolio of brands as well as Oatmega, continued solid growth of the SkinnyPop brand and new distribution and increased velocities of the Paqui brand. The Company's reported numbers surpassed analysts' consensus of $87.2 million. Amplify Snack's net sales for the year ended December 31, 2016, increased 47.2% to $270.8 million compared to $183.9 million for FY15.
For Q4 2016, Amplify Snack' gross profit was $36.8 million, or 41.5% of net sales, compared to $26.2 million, or 56.5% of net sales, for Q4 2015. The Company's adjusted EBITDA grew 25.6% to $23.5 million in the reported quarter compared to $18.7 million in the prior year's same quarter, primarily reflecting higher net sales and gross profit, which was partially offset by higher SG&A. As a percentage of net sales, Amplify Snack's adjusted EBITDA was 26.6% compared to 40.4% in Q4 2015. For FY16, the Company's adjusted EBITDA, increased 13.4% to $84.9 million from $74.9 million for FY15. Amplify Snack's adjusted EBITDA as a percentage of net sales for the reported period totalled 31.4% compared to 40.7% for the year ago same period.
For Q4 2016, Amplify Snack reported GAAP net income of $8.5 million, or $0.11 per fully diluted share, compared to net income of $4.4 million, or $0.06 per fully diluted share, for Q4 2015. The Company's adjusted net income was $6.6 million, or $0.09 per fully diluted share, for the reported quarter versus adjusted net income of $9.5 million for, or $0.13 per fully diluted share, for the year earlier comparable quarter. Amplify Snack's earnings numbers came in below market estimates of $0.10 per share.
For FY16, Amplify Snack's GAAP net income increased $17.4 million to $27.3 million, or $0.36 per fully diluted share, compared to net income of $9.9 million, or $0.13 per fully diluted share, for FY15. The Company's adjusted net income was $37.0 million, or $0.49 per fully diluted share, compared to adjusted net income of $37.6 million for the prior year's corresponding period.
Segment Review
As a result of the Tyrrells' acquisition, Amplify Snack has created two reportable segments to align its external financial reporting with its operating and internal financial model. The two reportable segments include (i) North America and (ii) International.
For the year ended December 31, 2016, Amplify Snack's North America segment's net sales and operating income were $229.7 million and $82.3 million, respectively, compared with North America segment's net sales and operating income of $183.9 million and $76.5 million, respectively, for FY15. For the year ended December 31, 2016, the Company's International segment's net sales and operating income were $41.1 million and $2.8 million, respectively.
Balance Sheet and Cash Flow
As of December 31, 2016, Amplify Snack had cash and cash equivalents of $10.3 million and net availability under its $50.0 million revolving line of credit of $40.1 million. Net debt was $604.6 million as of December 31, 2016, compared to $182.5 million as of December 31, 2015. The increase was primarily attributable to the acquisition of Tyrrells' portfolio of international brands during the year ended December 31, 2016. Amplify Snack's leverage ratio increased to 5.9x trailing twelve month EBITDA at December 31, 2016. The Company remains committed to reducing its long-term net leverage to less than 4.5x.
Outlook
For the full year 2017 Amplify Snack expects to report net sales of $404 million to $420 million, adjusted EBITDA of $103 million to $111 million and adjusted EPS of $0.43 to $0.51. As a result of the timing of planned distribution and sales gains across the Company's business segments, it expects the rate of year-over-year growth for both sales and profitability to increase as the year progresses. The Company expects to generate approximately 45% of its annual 2017 net sales in H1 2017 and 55% in H2 2017 and expects to generate approximately 40% of its adjusted EBITDA contribution in H1 2017 and 60% in H2 2017, respectively.
Stock Performance
At the close of trading session on Wednesday, March 22, 2017, Amplify Snack Brands' stock price was marginally up by 0.97% to end the day at $8.34. A total volume of 503.22 thousand shares were exchanged during the session. The stock currently has a market cap of $640.10 million and is trading at a PE ratio of 24.39.
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