B&G Foods, Inc. (NYSE: BGS, BGF), a manufacturer and
distributor of high-quality, shelf-stable foods, today announced
financial results for the thirteen weeks ended June 28, 2008
(second quarter of 2008) and the twenty-six weeks ended June 28,
2008 (first two quarters of 2008). Financial Results for the Second
Quarter of 2008 Net sales for the second quarter of 2008 increased
0.8% to $119.2 million from $118.2 million for the thirteen weeks
ended June 30, 2007 (second quarter of 2007). The increase in net
sales of $1.0 million was due to an increase in unit volume. Gross
profit for the second quarter of 2008 decreased 10.1% to $33.6
million from $37.3 million in the second quarter of 2007. Gross
profit expressed as a percentage of net sales decreased 3.4% to
28.2% for the second quarter of 2008 from 31.6% in the second
quarter of 2007. The decrease in gross profit expressed as a
percentage of net sales was primarily attributable to increased
spending on trade promotions and increased costs for wheat, maple
syrup, corn, packaging, transportation and sweeteners. Operating
income decreased 13.7% to $18.6 million for the second quarter of
2008 from $21.5 million in the second quarter of 2007. Net income
was $3.5 million for the second quarter of 2008 compared to $3.7
million for the second quarter of 2007. Earnings per share of Class
A common stock was $0.10 for the second quarter of 2008. During the
second quarter of 2007, B&G Foods had two classes of common
stock outstanding and computed earnings per share under the two
class method. As a result, it is not meaningful to compare earnings
per share for the second quarter of 2008 or the first two quarters
of 2008 to the second quarter of 2007 or the first two quarters of
2007. For the second quarter of 2008, EBITDA (see �About Non-GAAP
Financial Measures� below) decreased 10.0% to $22.4 million from
$25.0 million for the second quarter of 2007. David L. Wenner,
Chief Executive Officer of B&G Foods, stated, �The second
quarter was a very challenging quarter for our company with cost
increasing, particularly in maple syrup, more quickly than we could
raise pricing to compensate. We believe that cost, while still
higher, will be more predictable in the second half of fiscal 2008
and that our pricing actions will be better able to offset cost
increases going forward.� Financial Results for the First Two
Quarters of 2008 Net sales for the first two quarters of 2008
increased 6.1% to $235.5 million from $221.9 million in the
comparable period of fiscal 2007. Excluding the impact of the Cream
of Wheat acquisition and the termination of a temporary co-packing
arrangement, net sales increased $4.5 million or 2.0% due to
increases in sales price and unit volume. The Cream of Wheat
acquisition, which was completed in late February 2007, accounted
for $9.9 million of the net sales increase offset by a decrease in
net sales of $0.8 million relating to the termination of the
temporary co-packing arrangement. Gross profit for the first two
quarters of 2008 decreased 2.2% to $68.5 million from $70.0 million
in the comparable period of last year. Gross profit expressed as a
percentage of net sales decreased 2.4% to 29.1% in the first two
quarters of 2008 from 31.5% in the comparable period of fiscal
2007. The decrease in gross profit expressed as a percentage of net
sales was primarily attributable to increased spending on trade
promotions and increased costs for wheat, maple syrup, corn,
packaging, transportation and sweeteners. Operating income
decreased 4.9% to $38.3 million during the first two quarters of
2008, compared to $40.2 million in the comparable period of fiscal
2007. Net income was $7.9 million for the first two quarters of
2008 compared to $7.8 million for the comparable period of fiscal
2007. For the first two quarters of 2008, earnings per share of
Class A common stock was $0.22. For the first two quarters of 2008,
EBITDA decreased 0.6% to $45.8 million from $46.1 million for the
first two quarters of 2007. Conference Call B&G Foods will hold
a webcast and conference call at 4:30 p.m. ET today, July 28, 2008.
The call will be webcast live over the Internet from the Investor
Relations section of B&G Foods� website at www.bgfoods.com
under �Investor Relations�Company Overview.� Participants should
follow the instructions provided on the website for the download
and installation of audio applications necessary to join the
webcast. The call can also be accessed live over the phone by
dialing (888) 599-4858 or for international callers by dialing
(913) 312-1432. A replay of the call will be available one hour
after the call and can be accessed by dialing (888) 203-1112 or
(719) 457-0820 for international callers. The password is 4445017.
The replay will be available from July 28, 2008 through August 4,
2008. About Non-GAAP Financial Measures EBITDA (net income before
net interest expense, income taxes, depreciation and amortization)
is a �non-GAAP (Generally Accepted Accounting Principles) financial
measure.� A non-GAAP financial measure is defined as a numerical
measure of financial performance that excludes or includes amounts
so as to be different than the most directly comparable measure
calculated and presented in accordance with GAAP in B&G Foods�
consolidated balance sheets and related consolidated statements of
operations and cash flows. Non-GAAP financial measures should not
be considered in isolation or as a substitute for the most directly
comparable GAAP measures. A reconciliation of EBITDA with net
income and net cash provided by operating activities is included
below for the second quarter and first two quarters of 2008 and the
second quarter and first two quarters of 2007, along with the
components of EBITDA. About B&G Foods, Inc. B&G Foods and
its subsidiaries manufacture, sell and distribute a diverse
portfolio of high-quality, shelf-stable foods across the United
States, Canada and Puerto Rico. B&G Foods� products include hot
cereals, fruit spreads, canned meats and beans, spices, seasonings,
marinades, hot sauces, wine vinegar, maple syrup, molasses, salad
dressings, Mexican-style sauces, taco shells and kits, salsas,
pickles, peppers and other specialty food products. B&G Foods
competes in the retail grocery, food service, specialty, private
label, club and mass merchandiser channels of distribution. Based
in Parsippany, New Jersey, B&G Foods� products are marketed
under many recognized brands, including Ac�cent, B&G,�B&M,
Brer Rabbit, Cream of Rice, Cream of Wheat, Emeril�s, Grandma�s
Molasses, Joan of Arc, Las Palmas, Maple�Grove�Farms�of�Vermont,
Ortega, Polaner, Red Devil, Regina, Sa-s�n, Trappey�s, Underwood,
Vermont Maid and Wright�s. Forward-Looking Statements Statements in
this press release that are not statements of historical or current
fact constitute �forward-looking statements.� Such forward-looking
statements involve known and unknown risks, uncertainties and other
unknown factors that could cause the actual results of B&G
Foods to be materially different from the historical results or
from any future results expressed or implied by such
forward-looking statements. In addition to statements that
explicitly describe such risks and uncertainties readers are urged
to consider statements labeled with the terms �believes,� �belief,�
�expects,� �intends,� �anticipates� or �plans� to be uncertain and
forward-looking. The forward-looking statements contained herein
are also subject generally to other risks and uncertainties that
are described from time to time in B&G Foods� filings with the
Securities and Exchange Commission, including under Item 1A, �Risk
Factors� in our Annual Report on Form 10-K for fiscal 2007 filed on
March 6, 2008. We undertake no obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events or otherwise. B&G Foods, Inc. and
Subsidiaries Consolidated Balance Sheets (Dollars in thousands,
except per share data) (Unaudited) � Assets June 28, 2008 December
29, 2007 � Current assets: � Cash and cash equivalents $ 24,086 $
36,606 Trade accounts receivable, net 37,569 42,362 Inventories
99,283 93,181 Prepaid expenses 2,894 3,556 Income tax receivable
301 569 Deferred income taxes � 648 � � 648 � Total current assets
164,781 176,922 � Property, plant and equipment, net of accumulated
depreciation of $59,954 and $55,679 54,369 49,658 Goodwill 253,353
253,353 Trademarks 227,220 227,220 Customer relationship
intangibles, net 119,543 122,768 Net deferred debt issuance costs
and other assets � 15,670 � � 17,669 � Total assets $ 834,936 � $
847,590 � � Liabilities and Stockholders� Equity � Current
liabilities: Trade accounts payable $ 27,817 $ 32,126 Accrued
expenses 16,363 21,894 Dividends payable � 7,801 � � 7,797 � Total
current liabilities 51,981 61,817 � Long-term debt 535,800 535,800
Other liabilities 6,274 6,376 Deferred income taxes � 73,205 � �
68,962 � Total liabilities 667,260 672,955 � Stockholders� equity:
Preferred stock, $0.01 par value per share. Authorized 1,000,000
shares; no shares issued or outstanding � � Class A common stock,
$0.01 par value per share. Authorized 100,000,000 shares;
36,796,988 and 36,778,988 shares issued and outstanding as of June
28, 2008 and December 29, 2007 368 368 Class B common stock, $0.01
par value per share. Authorized 25,000,000 shares; no shares issued
or outstanding � � Additional paid-in capital 186,957 202,197
Accumulated other comprehensive loss (3,376 ) (3,718 ) Accumulated
deficit � (16,273 ) � (24,212 ) Total stockholders� equity �
167,676 � � 174,635 � Total liabilities and stockholders� equity $
834,936 � $ 847,590 � B&G Foods, Inc. and Subsidiaries
Consolidated Statements of Operations (Dollars in thousands, except
per share data) (Unaudited) � Thirteen Weeks Ended Twenty-six Weeks
Ended June 28, 2008 � June 30, 2007 June 28, 2008 � June 30, 2007 �
Net sales $ 119,184 $ 118,204 $ 235,526 $ 221,949 Cost of goods
sold � 85,626 � 80,881 � � 167,038 � 151,943 � � Gross profit
33,558 37,323 68,488 70,006 � Operating expenses: Sales, marketing
and distribution expenses 11,461 12,566 23,750 24,070 General and
administrative expenses 1,882 1,598 3,240 3,428 Amortization
expense�customer relationships � 1,612 � 1,613 � � 3,225 � 2,276 �
Operating income 18,603 21,546 38,273 40,232 � Other expenses:
Interest expense, net � 12,908 � 15,529 � � 25,479 � 27,654 �
Income before income tax expense 5,695 6,017 12,794 12,578 Income
tax expense � 2,165 � 2,280 � � 4,855 � 4,767 � Net income $ 3,530
$ 3,737 � � 7,939 � 7,811 � � Earnings per share calculations:
Basic and diluted distributed earnings per share: Class A common
stock $ 0.21 $ 0.30 $ 0.42 $ 0.52 Basic and diluted earnings (loss)
per share: Class A common stock $ 0.10 $ 0.17 $ 0.22 $ 0.38 Class B
common stock $ � $ (0.13 ) $ � $ (0.14 ) B&G Foods, Inc. and
Subsidiaries Reconciliation of EBITDA to Net Income and to Net Cash
Provided by Operating Activities (Dollars in thousands) (Unaudited)
� Thirteen Weeks Ended Twenty-six Weeks Ended June 28, 2008 � June
30, 2007 June 28, 2008 � June 30, 2007 (Dollars in thousands) Net
income $ 3,530 $ 3,737 $ 7,939 $ 7,811 Income tax expense 2,165
2,280 4,855 4,767 Interest expense, net 12,908 15,529 25,479 27,654
Depreciation and amortization � 3,844 � � 3,405 � � 7,533 � � 5,863
� EBITDA 22,447 24,951 45,806 46,095 Income tax expense (2,165 )
(2,280 ) (4,855 ) (4,767 ) Interest expense, net (12,908 ) (15,529
) (25,479 ) (27,654 ) Deferred income taxes 1,868 1,766 4,045 3,842
Amortization of deferred financing costs 792 832 1,584 1,605 Write
off of deferred debt issuance costs � 1,769 � 1,769 Stock-based
compensation expense 358 � 358 � Changes in assets and liabilities,
net of effects of business combination � (9,273 ) � (4,496 ) �
(9,366 ) � (9,060 ) Net cash provided by operating activities $
1,119 � $ 7,013 � $ 12,093 � $ 11,830 � (1) EBITDA is a measure
used by management to measure operating performance. EBITDA is
defined as net income before net interest expense, income taxes,
depreciation, and amortization. Management believes that it is
useful to eliminate net interest expense, income taxes,
depreciation and amortization because it allows management to focus
on what it deems to be a more reliable indicator of ongoing
operating performance and our ability to generate cash flow from
operations. We use EBITDA in our business operations, among other
things, to evaluate our operating performance, develop budgets and
measure our performance against those budgets, determine employee
bonuses and evaluate our cash flows in terms of cash needs. We also
present EBITDA because we believe it is a useful indicator of our
historical debt capacity and ability to service debt and because
covenants in our credit facility and the indentures governing the
senior notes and the senior subordinated notes contain ratios based
on these measures. As a result, internal management reports used
during monthly operating reviews feature the EBITDA metric.
However, management uses this metric in conjunction with
traditional GAAP operating performance and liquidity measures as
part of its overall assessment of company performance and liquidity
and therefore does not place undue reliance on this measure as its
only measure of operating performance and liquidity. EBITDA is not
a recognized term under GAAP and does not purport to be an
alternative to operating income or net income as an indicator of
operating performance or any other GAAP measure. EBITDA is not a
complete net cash flow measure because EBITDA is a measure of
liquidity that does not include reductions for cash payments for an
entity�s obligation to service its debt, fund its working capital,
capital expenditures and acquisitions, if any, and pay its income
taxes and dividends, if any. Rather, EBITDA is a potential
indicator of an entity�s ability to fund these cash requirements.
EBITDA also is not a complete measure of an entity�s profitability
because it does not include costs and expenses for depreciation and
amortization, interest and related expenses and income taxes.
Because not all companies use identical calculations, this
presentation of EBITDA may not be comparable to other similarly
titled measures of other companies. However, EBITDA can still be
useful in evaluating our performance against our peer companies
because management believes this measure provides users with
valuable insight into key components of GAAP amounts.
B&G Foods (NYSE:BGF)
Historical Stock Chart
From Jun 2024 to Jul 2024
B&G Foods (NYSE:BGF)
Historical Stock Chart
From Jul 2023 to Jul 2024