Achieves Expected Supply Chain Savings
Updates 2024 Outlook
- Net sales were $839.1 million.
Excluding the voluntary griddle product recall, adjusted net sales
were $854.4 million.
- Net loss from continuing operations was $(3.4) million.
- Adjusted EBITDA1 of $102.5
million was within the Company's guidance range of
$98 to $108
million.
- Updated 2024 outlook now calls for adjusted net sales of
$3.37 to $3.40
billion, adjusted EBITDA of $335 to $345
million, and free cash flow2 of at least
$120 million.
OAK
BROOK, Ill., Nov. 12,
2024 /PRNewswire/ -- TreeHouse Foods, Inc. (NYSE:
THS) today reported financial results for the third quarter of
2024.
"Our third quarter results were mixed, as a tough operating
environment with softer consumer takeaway led to sales below our
expectations. However, I was pleased with our supply chain savings,
which led to margin improvement and profit that was within our
guidance range," said Steve Oakland,
Chairman, Chief Executive Officer, and President. "Immediately
following the quarter, we discovered a potential contamination
during routine product testing and initiated a voluntary recall of
our frozen griddle products. We have an unwavering commitment to
food safety and quality and will continue to diligently manage this
ongoing situation led by our values and focusing on the safety of
our customers and consumers."
Mr. Oakland continued, "As we look forward, we continue to
expect sequential improvement in organic volume growth, though the
challenging consumer backdrop and the impact of the recall have led
us to temper our expectations. I continue to be confident in our
competitive positioning moving forward and believe our strategy,
which includes initiatives in our supply chain and margin
management opportunities, can drive meaningful profit
improvement."
THIRD QUARTER 2024 FINANCIAL RESULTS
Net Sales — Net sales for the third quarter of 2024 totaled
$839.1 million compared to
$863.3 million for the same period
last year, a decrease of $24.2
million, or 2.8%. The change in net sales from 2023 to 2024
was due to the following:
|
|
Three
Months
|
|
Nine
Months
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Product recall
returns
|
|
(1.4) %
|
|
(0.6) %
|
|
Volume/mix
|
|
(0.8)
|
|
(1.5)
|
|
Pricing
|
|
(0.5)
|
|
(2.0)
|
|
Facility restoration
impact
|
|
—
|
|
(1.0)
|
|
Total change in organic
net sales1
|
|
(2.7) %
|
|
(5.1) %
|
|
Foreign
currency
|
|
(0.1)
|
|
(0.1)
|
|
Business
acquisitions
|
|
—
|
|
2.3
|
|
Total change in net
sales
|
|
(2.8) %
|
|
(2.9) %
|
The net sales decrease of 2.8% was primarily due to a voluntary
recall of frozen griddle products. Additionally, unfavorable
volume/mix performance was negatively impacted by approximately
$5 million to $10 million due to Hurricane Helene, which
disrupted distribution in the Southeastern region of the United States. Targeted commodity-driven
pricing adjustments in select categories also contributed to the
decline.
Gross Profit — Gross profit as a percentage of net sales was
15.6% in the third quarter of 2024, compared to 15.9% in the third
quarter of 2023, a decrease of 0.3 percentage points. The decrease
in Gross profit is primarily due to a voluntary recall of frozen
griddle products, which impacted Gross profit by 3.2 percentage
points. Adjusted gross profit1 as a percentage of
adjusted net sales was 18.9% in the third quarter of 2024, compared
to 17.3% in the third quarter of 2023, an increase of 1.6
percentage points. The increase in Adjusted gross profit was
primarily due to the execution of supply chain initiatives.
Total Operating Expenses — Total operating expenses were
$99.4 million in the third quarter of
2024 compared to $103.9 million in
the third quarter of 2023, a decrease of $4.5 million. The decrease is due to lower
freight costs, lower costs for growth, reinvestment, and
restructuring programs, and lower employee incentive compensation
expense. This was partially offset by the lapping of TSA
income.
Total Other Expense — Total other expense was $36.1 million in the third quarter of 2024
compared to $20.1 million in the
third quarter of 2023, an increase in expense of $16.0 million. This was primarily due to a
$17.5 million unfavorable change in
non-cash mark-to-market impact from hedging activities, largely
driven by interest rate swaps. Additionally, there was a decrease
in interest income of $10.9 million
from the Seller Promissory Note, which was repaid in the fourth
quarter of 2023. This was partially offset by a favorable currency
exchange rate impact of $5.4 million
between the U.S. and Canada, a
decrease of $4.9 million in interest
expense due to a decrease in borrowings on our Revolving Credit
Facility, and a decrease of $1.7
million in costs related to the Receivables Sales Program
due to decreased usage.
Income Taxes — Income taxes were recognized at an effective rate
of 20.9% in the third quarter of 2024 compared to 27.4% recognized
in the third quarter of 2023. The change in the Company's effective
tax rate is primarily driven by changes in the amounts of executive
compensation that is not deductible for tax purposes, the research
and development tax credit, and the effect of cross-border tax
laws.
Net (Loss) Income from Continuing Operations and Adjusted EBITDA
— Net loss from continuing operations for the third quarter of 2024
was $3.4 million, compared to net
income from continuing operations of $9.8
million for the same period of the previous year. Adjusted
EBITDA1 from continuing operations was $102.5 million in the third quarter of 2024,
compared to $89.9 million in the
third quarter of 2023, an increase of $12.6
million. The increase is primarily due to supply chain
savings initiatives.
Discontinued Operations — Net loss from discontinued operations
decreased by $2.7 million in the
third quarter of 2024 compared to the third quarter of 2023. The
decrease is primarily a result of a non-recurring net loss from the
Snack Bars Business due to its divestiture on September 29, 2023.
Net Cash Used in Operating Activities from Continuing Operations
— Net cash used in operating activities from continuing operations
was $30.4 million in the first nine
months of 2024 compared to net cash provided by operating
activities from continuing operations of $11.0 million in the first nine months of 2023,
an increase in cash used of $41.4
million. The increase in net cash used in operating
activities was primarily attributable to a decrease in cash flows
from the Receivables Sales Program due to reduced factoring
utilization. Additionally, the increase in net cash used was driven
by lower cash earnings. This was partially offset by an increase in
cash flow from accounts payable due to improved working capital
management.
OUTLOOK2
TreeHouse Foods updated its previously-issued full year 2024
guidance:
- We now expect adjusted net sales in the range of $3.37 to $3.40
billion, which represents approximately -2% to -1%
year-over-year, and reflects weakening consumption trends as well
as the estimated impact from the voluntary griddle recall.
- We are updating our expectations for adjusted EBITDA to a range
of $335 to $345 million. This reflects weakening consumption
trends and softer mix, which creates deleverage in our supply
chain, as well as the estimated impact from the voluntary griddle
recall. The Company continues to expect sequential improvement in
adjusted EBITDA, driven by the following:
- Net sales improvement due to new distribution wins
- Cost savings initiatives
- Our return to normalized service levels in our Broth
business
- Net interest expense is continued to be expected in the range
of $56 to $62
million.
- The Company continues to expect capital expenditures of
approximately $145 million.
- The Company now expects free cash flow of at least $120 million.
With regard to the fourth quarter, TreeHouse Foods expects the
following:
- Fourth quarter adjusted net sales are expected in a range of
$900 to $930
million, which represents approximately -1% to 2% growth
year-over-year. Organic volume and mix are expected to be up
low-single digits. Pricing is expected to be a slight drag.
- Fourth quarter adjusted EBITDA from continuing operations is
expected in a range of $116 to
$126 million.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Adjusted
EBITDA, adjusted gross profit, adjusted net sales, free cash flow,
and organic net sales are non-GAAP financial measures. See
"Comparison of Non-GAAP Information to GAAP Information" for the
definitions of the Non-GAAP measures, information concerning
certain items affecting comparability, and reconciliations of GAAP
to Non-GAAP measures.
|
|
|
2 The
Company is not able to reconcile prospective adjusted net sales,
adjusted EBITDA from continuing operations or free cash flow, which
are Non-GAAP financial measures, to the most comparable GAAP
financial measures without unreasonable effort due to the inherent
uncertainty and difficulty of predicting the occurrence, financial
impact, and timing of certain items impacting GAAP results. These
items include, but are not limited to, mark-to-market adjustments
of derivative contracts, foreign currency exchange on the
re-measurement of intercompany notes, or other non-recurring events
or transactions that may significantly affect reported GAAP
results.
|
CONFERENCE CALL WEBCAST
A webcast to discuss the Company's third quarter earnings will
be held at 8:30 a.m. (Eastern Time)
today. The live audio webcast and a supporting slide deck will be
available on the Company's website at
www.treehousefoods.com/investors/investor-overview/default.aspx.
DISCONTINUED OPERATIONS
On October 3, 2022, the Company
completed the sale of a significant portion of the Company's Meal
Preparation business, including pasta, pourable and spoonable
dressing, preserves, red sauces, syrup, dry blends and baking, dry
dinners, pie filling, pita chips and other sauces (the
"Transaction"). Beginning in the third quarter of 2022, the
business of the Transaction is presented as discontinued
operations, and, as such, has been excluded from continuing
operations for all periods presented.
On September 29, 2023, the Company
completed the sale of its Snack Bars business (the "Snack Bars
Transaction" or the "Snack Bars Business"). The Snack Bars
Transaction represents a component of the single plan of disposal
from the Company's strategic review process, which also resulted in
the divestiture of a significant portion of the Meal Preparation
business during the fourth quarter of 2022. Beginning in the third
quarter of 2023, the Snack Bars Business is presented as a
component of discontinued operations and has been excluded from
continuing operations for all periods presented.
COMPARISON OF NON-GAAP INFORMATION TO GAAP
INFORMATION
The Company has included in this release measures of financial
performance that are not defined by GAAP ("Non-GAAP"). A Non-GAAP
financial measure is 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 the Company's Condensed Consolidated
Balance Sheets, Condensed Consolidated Statements of Operations,
Condensed Consolidated Statements of Comprehensive (Loss) Income,
Condensed Consolidated Statements of Stockholders' Equity, and the
Condensed Consolidated Statements of Cash Flows. As described
further below, the Company believes these measures provide useful
information to the users of the financial statements.
For each of these Non-GAAP financial measures, the Company
provides a reconciliation between the most directly comparable GAAP
measure and the Non-GAAP measure, an explanation of why management
believes the Non-GAAP measure provides useful information to
financial statement users, and any additional purposes for which
management uses the Non-GAAP measure. This Non-GAAP financial
information is provided as additional information for the financial
statement users and is not in accordance with, or an alternative
to, GAAP. These Non-GAAP measures may be different from similar
measures used by other companies.
Organic Net Sales
Organic net sales is defined as net sales excluding the impacts
of business acquisitions, divestitures, and foreign currency. This
information is provided in order to allow investors to make
meaningful comparisons of the Company's sales between periods and
to view the Company's business from the same perspective as Company
management.
EBITDA from Continuing Operations, EBITDA from Continuing
Operations Margin, Adjusted EBITDA from Continuing Operations, and
Adjusted EBITDA from Continuing Operations Margin, Adjusting for
Certain Items Affecting Comparability
EBITDA from continuing operations margin is defined as EBITDA
from continuing operations as a percentage of net sales. Adjusted
EBITDA from continuing operations margin is defined as adjusted
EBITDA from continuing operations as a percentage of adjusted net
sales. EBITDA from continuing operations represents net (loss)
income from continuing operations before interest expense, interest
income, income tax (benefit) expense, and depreciation and
amortization expense. Adjusted EBITDA from continuing operations
reflects adjustments to EBITDA from continuing operations to
identify items that, in management's judgment, significantly affect
the assessment of earnings results between periods. This
information is provided in order to allow investors to make
meaningful comparisons of the Company's earnings performance
between periods and to view the Company's business from the same
perspective as Company management. As the Company cannot predict
the timing and amount of charges that include, but are not limited
to, items such as product recalls and related costs, growth,
reinvestment, and restructuring programs, acquisition, integration,
divestiture, and related costs, impairment of assets, foreign
currency exchange impact on the re-measurement of intercompany
notes, mark-to-market adjustments on derivative contracts, and
other items that may arise from time to time that would impact
comparability, management does not consider these costs when
evaluating the Company's performance, when making decisions
regarding the allocation of resources, in determining incentive
compensation, or in determining earnings estimates. EBITDA from
continuing operations, and adjusted EBITDA from continuing
operations are performance measures commonly used by management to
assess operating performance and incentive compensation, and the
Company believes they are commonly reported and widely used by
investors and other interested parties as a measure of a company's
operating performance between periods and as a component of our
debt covenant calculations.
Adjusted Net Sales, Adjusted Cost of Sales,
Adjusted Gross Profit, Adjusted Total Operating Expenses, Adjusted
Operating (Loss) Income, Adjusted Total Other Expense (Income),
Adjusted Income Tax Expense (Benefit), Adjusted Net (Loss) Income
from Continuing Operations, and Adjusted Diluted Earnings (Loss)
Per Share from Continuing Operations, Adjusting for Certain Items
Affecting Comparability
Adjusted net sales, adjusted cost of sales, adjusted gross
profit, adjusted total operating expenses, adjusted operating
(loss) income, adjusted total other expense (income), adjusted
income tax expense (benefit), and adjusted net (loss) income from
continuing operations represent their respective GAAP presentation
line item adjusted for items such as product recalls and related
costs, growth, reinvestment, and restructuring programs,
acquisition, integration, divestiture, and related costs,
impairment of assets, foreign currency exchange impact on the
re-measurement of intercompany notes, mark-to-market adjustments on
derivative contracts, and other items that may arise from time to
time that would impact comparability. Management does not consider
these costs when evaluating the Company's performance, when making
decisions regarding the allocation of resources, in determining
incentive compensation, or in determining earnings estimates. This
information is provided in order to allow investors to make
meaningful comparisons of the Company's earnings performance
between periods and to view the Company's business from the same
perspective as Company management. The Company has presented each
of these adjusted Non-GAAP measures as a percentage of adjusted net
sales compared to its respective reported GAAP presentation line
item as a percentage of net sales. Adjusted diluted earnings (loss)
per share from continuing operations ("Adjusted diluted EPS") is
determined by dividing adjusted net (loss) income from continuing
operations by the weighted average diluted common shares
outstanding. Adjusted diluted EPS reflects adjustments to GAAP
earnings (loss) per diluted share to identify items that, in
management's judgment, significantly affect the assessment of
earnings results between periods.
A full reconciliation between the relevant GAAP measure of
reported net income (loss) from continuing operations for the three
and nine months ended September 30,
2024 and 2023 calculated according to GAAP, adjusted net
income from continuing operations, and adjusted EBITDA from
continuing operations is presented in the attached tables. Given
the inherent uncertainty regarding adjusted items in any future
period, a reconciliation of forward-looking financial measures to
the most directly comparable GAAP measure is not feasible.
Free Cash Flow from Continuing Operations
In addition to measuring the Company's cash flow generation and
usage based upon the operating, investing, and financing
classifications included in the Condensed Consolidated Statements
of Cash Flows, we also measure free cash flow from continuing
operations, which represents net cash used in operating activities
from continuing operations less capital expenditures. The Company
believes free cash flow is an important measure of liquidity
because it provides management and investors a measure of cash
generated from operations that is available for mandatory payment
obligations and investment opportunities such as funding
acquisitions, repaying debt, repurchasing public debt, and
repurchasing common stock. A reconciliation between the relevant
GAAP measure of cash used in operating activities from continuing
operations for the nine months ended September 30, 2024 and 2023 calculated according
to GAAP and free cash flow from continuing operations is presented
in the attached tables.
ABOUT TREEHOUSE FOODS
TreeHouse Foods, Inc. is a leading private brands snacking and
beverage manufacturer in North
America. Our purpose is to engage and delight - one customer
at a time. Through our customer focus and category experience, we
strive to deliver excellent service and build capabilities and
insights to drive mutually profitable growth for TreeHouse and for
our customers. Our purpose is supported by investment in depth,
capabilities and operational efficiencies which are aimed to
capitalize on the long-term growth prospects in the categories in
which we operate.
Additional information, including TreeHouse's most recent
statements on Forms 10-Q and 10-K, may be found at TreeHouse's
website, http://www.treehousefoods.com.
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking" statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements and other information are
based on our beliefs, as well as assumptions made by us, using
information currently available. The words "believe," "estimate,"
"project," "expect," "anticipate," "plan," "intend," "foresee,"
"should," "would," "could," and similar expressions, as they relate
to us, are intended to identify forward-looking statements. Such
statements reflect our current views with respect to future events
and are subject to certain risks, uncertainties, and assumptions.
Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may
vary materially from those described herein as anticipated,
believed, estimated, expected, or intended. We do not intend to
update these forward-looking statements following the date of this
press release. Such forward-looking statements, because they relate
to future events, are by their very nature subject to many
important factors that could cause actual results to differ
materially from those contemplated by the forward-looking
statements contained in this press release and other public
statements we make. Such factors include, but are not limited to:
risks related to quality issues, disruptions, or inefficiencies in
our supply chain and/or operations; loss or consolidation of key
suppliers; raw material and commodity costs due to inflation; labor
strikes or work stoppages; multiemployer pension plans; labor
shortages and increased competition for labor; success of our
growth, reinvestment, and restructuring programs; our level of
indebtedness and related obligations; disruptions in the financial
markets; interest rates; changes in foreign currency exchange
rates; customer concentration and consolidation; competition; our
ability to execute on our business strategy; our ability to
continue to make acquisitions and execute on divestitures or
effectively manage the growth from acquisitions; impairment of
goodwill or long lived assets; changes and developments affecting
our industry, including customer preferences and the prevalence of
weight loss drugs; the outcome of litigation and regulatory
proceedings to which we and/or our customers may be a party;
product recalls; changes in laws and regulations applicable to us;
shareholder activism; disruptions in or failures of our information
technology systems; geopolitical events; changes in weather
conditions, climate changes, and natural disasters; and other risks
that are set forth in the Risk Factors section, the Legal
Proceedings section, the Management's Discussion and Analysis of
Financial Condition and Results of Operations section, and other
sections of our Annual Report on Form 10-K for the year ended
December 31, 2023, and from time to
time in our filings with the Securities and Exchange Commission
("SEC"). You are cautioned not to unduly rely on such
forward-looking statements, which speak only as of the date made
when evaluating the information presented in this press release.
TreeHouse expressly disclaims any obligation or undertaking to
disseminate any updates or revisions to any forward-looking
statement contained herein, to reflect any change in its
expectations with regard thereto, or any other change in events,
conditions or circumstances on which any statement is based.
|
FINANCIAL
INFORMATION
|
|
|
TREEHOUSE FOODS,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited, in
millions, except per share data)
|
|
|
|
|
|
|
|
September 30,
2024
|
|
December 31,
2023
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
102.0
|
|
$
320.3
|
|
Receivables,
net
|
|
224.7
|
|
175.6
|
|
Inventories
|
|
617.3
|
|
534.0
|
|
Prepaid expenses and
other current assets
|
|
55.5
|
|
24.9
|
|
Total current
assets
|
|
999.5
|
|
1,054.8
|
|
Property, plant, and
equipment, net
|
|
734.7
|
|
737.6
|
|
Operating lease
right-of-use assets
|
|
163.0
|
|
193.0
|
|
Goodwill
|
|
1,823.2
|
|
1,824.7
|
|
Intangible assets,
net
|
|
224.7
|
|
257.4
|
|
Other assets,
net
|
|
24.3
|
|
39.1
|
|
Total
assets
|
|
$
3,969.4
|
|
$
4,106.6
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$
547.1
|
|
$
534.9
|
|
Accrued
expenses
|
|
168.2
|
|
169.0
|
|
Current portion of
long-term debt
|
|
0.9
|
|
0.4
|
|
Total current
liabilities
|
|
716.2
|
|
704.3
|
|
Long-term
debt
|
|
1,399.9
|
|
1,396.0
|
|
Operating lease
liabilities
|
|
135.1
|
|
165.0
|
|
Deferred income
taxes
|
|
107.2
|
|
111.4
|
|
Other long-term
liabilities
|
|
58.4
|
|
65.1
|
|
Total
liabilities
|
|
2,416.8
|
|
2,441.8
|
|
Commitments and
contingencies
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Preferred stock, par
value $0.01 per share, 10.0 shares authorized, none
issued
|
|
—
|
|
—
|
|
Common stock, par
value $0.01 per share, 90.0 shares authorized, 51.9 and 54.1
shares outstanding as of September 30, 2024 and December 31, 2023,
respectively
|
|
0.6
|
|
0.6
|
|
Treasury
stock
|
|
(323.7)
|
|
(234.2)
|
|
Additional paid-in
capital
|
|
2,234.9
|
|
2,223.4
|
|
Accumulated
deficit
|
|
(280.7)
|
|
(248.9)
|
|
Accumulated other
comprehensive loss
|
|
(78.5)
|
|
(76.1)
|
|
Total stockholders'
equity
|
|
1,552.6
|
|
1,664.8
|
|
Total liabilities and
stockholders' equity
|
|
$
3,969.4
|
|
$
4,106.6
|
|
TREEHOUSE FOODS,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in
millions, except per share data)
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net sales
|
|
$
839.1
|
|
$
863.3
|
|
$
2,448.3
|
|
$
2,520.8
|
|
Cost of
sales
|
|
707.9
|
|
725.8
|
|
2,076.8
|
|
2,096.5
|
|
Gross profit
|
|
131.2
|
|
137.5
|
|
371.5
|
|
424.3
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Selling and
distribution
|
|
36.0
|
|
44.5
|
|
114.4
|
|
128.9
|
|
General and
administrative
|
|
46.0
|
|
47.5
|
|
156.0
|
|
154.8
|
|
Amortization
expense
|
|
12.3
|
|
12.0
|
|
36.5
|
|
36.1
|
|
Asset
impairment
|
|
—
|
|
—
|
|
19.3
|
|
—
|
|
Other operating
expense (income), net
|
|
5.1
|
|
(0.1)
|
|
22.7
|
|
(0.3)
|
|
Total operating
expenses
|
|
99.4
|
|
103.9
|
|
348.9
|
|
319.5
|
|
Operating
income
|
|
31.8
|
|
33.6
|
|
22.6
|
|
104.8
|
|
Other
expense:
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
16.0
|
|
20.9
|
|
47.2
|
|
57.9
|
|
Interest
income
|
|
(0.1)
|
|
(10.8)
|
|
(4.2)
|
|
(36.2)
|
|
(Gain) loss on foreign
currency exchange
|
|
(1.7)
|
|
3.7
|
|
3.2
|
|
0.7
|
|
Other expense,
net
|
|
21.9
|
|
6.3
|
|
16.9
|
|
9.8
|
|
Total other
expense
|
|
36.1
|
|
20.1
|
|
63.1
|
|
32.2
|
|
(Loss) income before
income taxes
|
|
(4.3)
|
|
13.5
|
|
(40.5)
|
|
72.6
|
|
Income tax (benefit)
expense
|
|
(0.9)
|
|
3.7
|
|
(8.7)
|
|
20.0
|
|
Net (loss) income from
continuing operations
|
|
(3.4)
|
|
9.8
|
|
(31.8)
|
|
52.6
|
|
Net loss from
discontinued operations
|
|
—
|
|
(2.7)
|
|
—
|
|
(7.0)
|
|
Net (loss)
income
|
|
$
(3.4)
|
|
$
7.1
|
|
$
(31.8)
|
|
$
45.6
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
common share - basic:
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
(0.07)
|
|
$
0.18
|
|
$
(0.60)
|
|
$
0.94
|
|
Discontinued
operations
|
|
—
|
|
(0.05)
|
|
—
|
|
(0.12)
|
|
Earnings (loss) per
share basic (1)
|
|
$
(0.07)
|
|
$
0.13
|
|
$
(0.60)
|
|
$
0.81
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
common share - diluted:
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
(0.07)
|
|
$
0.17
|
|
$
(0.60)
|
|
$
0.93
|
|
Discontinued
operations
|
|
—
|
|
(0.05)
|
|
—
|
|
(0.12)
|
|
Earnings (loss) per
share diluted (1)
|
|
$
(0.07)
|
|
$
0.13
|
|
$
(0.60)
|
|
$
0.80
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
51.9
|
|
55.9
|
|
52.7
|
|
56.1
|
|
Diluted
|
|
51.9
|
|
56.4
|
|
52.7
|
|
56.7
|
|
|
(1) The sum of
the individual per share amounts may not add due to
rounding.
|
|
TREEHOUSE FOODS,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in
millions)
|
|
|
|
|
|
Nine Months
Ended
September 30,
|
|
|
2024
|
|
2023
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net (loss)
income
|
|
$
(31.8)
|
|
$
45.6
|
|
Net loss from
discontinued operations
|
|
—
|
|
(7.0)
|
|
Net (loss) income from
continuing operations
|
|
(31.8)
|
|
52.6
|
|
Adjustments to
reconcile net (loss) income to net cash (used in) provided by
operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
109.5
|
|
105.7
|
|
Asset
impairment
|
|
19.3
|
|
—
|
|
Stock-based
compensation
|
|
15.5
|
|
19.1
|
|
Unrealized loss (gain)
on derivative contracts
|
|
11.0
|
|
(1.5)
|
|
Deferred income
taxes
|
|
(4.0)
|
|
1.7
|
|
Deferred TSA
income
|
|
—
|
|
(12.3)
|
|
Other
|
|
8.4
|
|
0.9
|
|
Changes in operating
assets and liabilities, net of acquisitions and
divestitures:
|
|
|
|
|
|
Receivables
|
|
(48.8)
|
|
(5.6)
|
|
Inventories
|
|
(84.4)
|
|
(32.4)
|
|
Prepaid expenses and
other assets
|
|
(19.7)
|
|
(1.4)
|
|
Accounts
payable
|
|
7.2
|
|
(90.5)
|
|
Accrued expenses and
other liabilities
|
|
(12.6)
|
|
(25.3)
|
|
Net cash (used in)
provided by operating activities - continuing operations
|
|
(30.4)
|
|
11.0
|
|
Net cash used in
operating activities - discontinued operations
|
|
—
|
|
(0.7)
|
|
Net cash (used in)
provided by operating activities
|
|
(30.4)
|
|
10.3
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Capital
expenditures
|
|
(91.6)
|
|
(77.1)
|
|
Proceeds from sale of
fixed assets
|
|
1.4
|
|
—
|
|
Acquisitions, net of
cash acquired
|
|
—
|
|
(102.2)
|
|
Net cash used in
investing activities - continuing operations
|
|
(90.2)
|
|
(179.3)
|
|
Net cash provided by
investing activities - discontinued operations
|
|
—
|
|
45.5
|
|
Net cash used in
investing activities
|
|
(90.2)
|
|
(133.8)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Borrowings under
Revolving Credit Facility
|
|
212.5
|
|
2,692.3
|
|
Payments under
Revolving Credit Facility
|
|
(212.5)
|
|
(2,537.0)
|
|
Payments on financing
lease obligations
|
|
(0.6)
|
|
(0.4)
|
|
Deferred payment from
acquisition of seasoned pretzel capability
|
|
(4.0)
|
|
—
|
|
Repurchases of common
stock
|
|
(88.7)
|
|
(50.0)
|
|
Payments related to
stock-based award activities
|
|
(4.0)
|
|
(6.2)
|
|
Net cash (used in)
provided by financing activities - continuing operations
|
|
(97.3)
|
|
98.7
|
|
Net cash (used in)
provided by financing activities - discontinued
operations
|
|
—
|
|
—
|
|
Net cash (used in)
provided by financing activities
|
|
(97.3)
|
|
98.7
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
|
(0.4)
|
|
1.5
|
|
Net decrease in cash
and cash equivalents
|
|
(218.3)
|
|
(23.3)
|
|
Cash and cash
equivalents, beginning of period
|
|
320.3
|
|
43.0
|
|
Cash and cash
equivalents, end of period
|
|
$
102.0
|
|
$
19.7
|
|
|
Nine Months
Ended
September 30,
|
|
|
2024
|
|
2023
|
|
Supplemental cash
flow disclosures:
|
|
|
|
|
|
Interest
paid
|
|
$
69.6
|
|
$
75.7
|
|
Net income taxes
paid
|
|
5.7
|
|
17.5
|
|
|
|
|
|
|
Non-cash investing
and financing activities:
|
|
|
|
|
|
Capital expenditures
incurred but not yet paid
|
|
21.5
|
|
32.9
|
|
Right-of-use assets
obtained in exchange for lease obligations
|
|
3.3
|
|
40.5
|
|
Accrued deferred
financing costs
|
|
0.2
|
|
—
|
|
Note receivable
purchase price adjustment reduction
|
|
—
|
|
(5.1)
|
|
Note receivable
increase from paid in kind interest
|
|
—
|
|
3.2
|
|
Deferred payment from
acquisition of seasoned pretzel capability
|
|
—
|
|
4.0
|
The following table reconciles the Company's net (loss) income
from continuing operations to EBITDA and adjusted EBITDA from
continuing operations, for the three and nine months ended
September 30, 2024 and 2023:
|
TREEHOUSE FOODS,
INC.
RECONCILIATION OF
NET (LOSS) INCOME FROM CONTINUING OPERATIONS TO EBITDA AND ADJUSTED
EBITDA FROM CONTINUING OPERATIONS
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
Three Months Ended
September
30,
|
|
Nine Months Ended
September
30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net (loss) income
from continuing operations (GAAP)
|
|
$
(3.4)
|
|
$
9.8
|
|
$
(31.8)
|
|
$
52.6
|
|
Interest
expense
|
|
16.0
|
|
20.9
|
|
47.2
|
|
57.9
|
|
Interest
income
|
|
(0.1)
|
|
(10.8)
|
|
(4.2)
|
|
(36.2)
|
|
Income tax (benefit)
expense
|
|
(0.9)
|
|
3.7
|
|
(8.7)
|
|
20.0
|
|
Depreciation and
amortization
|
|
36.7
|
|
36.0
|
|
109.5
|
|
105.7
|
|
EBITDA from
continuing operations (Non-GAAP)
|
|
48.3
|
|
59.6
|
|
112.0
|
|
200.0
|
|
Product recalls and
related costs(1)
|
|
28.3
|
|
11.2
|
|
42.7
|
|
11.2
|
|
Mark-to-market
adjustments(2)
|
|
19.5
|
|
2.0
|
|
11.0
|
|
(1.5)
|
|
Growth, reinvestment,
restructuring programs & other(3)
|
|
6.8
|
|
9.7
|
|
25.0
|
|
33.9
|
|
Acquisition,
integration, divestiture, and related
costs(4)
|
|
0.9
|
|
4.9
|
|
6.9
|
|
13.5
|
|
Foreign currency (gain)
loss on re-measurement of intercompany
notes(5)
|
|
(1.3)
|
|
2.5
|
|
2.2
|
|
(0.2)
|
|
Impairment(6)
|
|
—
|
|
—
|
|
19.3
|
|
—
|
|
Shareholder
activism(7)
|
|
—
|
|
—
|
|
—
|
|
0.3
|
|
Tax
indemnification(8)
|
|
—
|
|
—
|
|
—
|
|
0.3
|
|
Adjusted EBITDA from
continuing operations (Non-GAAP)
|
|
$
102.5
|
|
$
89.9
|
|
$
219.1
|
|
$
257.5
|
|
|
|
|
|
|
|
|
|
|
% of net
sales
|
|
|
|
|
|
|
|
|
|
Net (loss) income from
continuing operations margin
|
|
(0.4) %
|
|
1.1 %
|
|
(1.3) %
|
|
2.1 %
|
|
EBITDA from continuing
operations margin
|
|
5.8 %
|
|
6.9 %
|
|
4.6 %
|
|
7.9 %
|
|
|
|
|
|
|
|
|
|
|
% of adjusted net
sales
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA from
continuing operations margin
|
|
12.0 %
|
|
10.4 %
|
|
8.9 %
|
|
10.2 %
|
During the three and nine months ended September 30, 2024 and 2023, the Company entered
into transactions that affected the year-over-year comparison of
its financial results from continuing operations as follows:
|
(1)
|
Griddle Recall and
Related Costs
On October 18, 2024,
the Company initiated a voluntary recall of certain frozen waffle
products produced at its Brantford, Ontario, Canada facility, and
on October 22, 2024, the Company expanded its voluntary recall to
include all products manufactured at the Brantford facility that
are still within their shelf-life. For the three and nine months
ended September 30, 2024, the Company recognized incremental
charges of $27.1 million, which includes $15.3 million for
estimated product returns, non-cash inventory write-offs of $8.0
million, and estimated logistics costs of $3.8 million.
Broth Recall and
Related Costs
On September 22, 2023,
the Company initiated a voluntary recall of certain broth products
produced at its Cambridge, Maryland facility. Since the voluntary
recall, the Company is executing a turnaround plan to restore the
facility operations. As a result of these restoration activities,
during the three and nine months ended September 30, 2024, the
Company incurred incremental costs of $1.2 million and $15.6
million, respectively, which include non-cash plant shutdown
charges of none and $8.9 million, non-cash inventory write-offs of
none and $2.6 million, and other costs, including product returns
and logistics, of $1.2 million and $4.1 million, respectively.
During the three and nine months ended September 30, 2023, the
Company incurred incremental costs related to the product recall of
$8.7 million, which include non-cash plant shutdown charges of $3.0
million, non-cash inventory write-offs of $1.6 million, and other
costs, including product returns and logistics, of $4.1
million.
|
|
|
|
(2)
|
The Company's
derivative contracts are marked-to-market each period. The non-cash
unrealized changes in fair value recognized in Other expense, net
within the Condensed Consolidated Statements of Operations are
treated as Non-GAAP adjustments. As the contracts are settled,
realized gains and losses are recognized, and only the
mark-to-market impacts are treated as Non-GAAP
adjustments.
|
|
|
|
(3)
|
The Company's growth,
reinvestment, and restructuring activities are part of an
enterprise-wide transformation to improve long-term growth and
profitability for the Company.
|
|
|
|
(4)
|
Acquisition,
integration, divestiture, and related costs represents costs
associated with completed and potential acquisitions, the related
integration of the acquisitions, completed and potential
divestitures, and gains or losses on the divestiture of a business.
During the three and nine months ended September 30, 2024, $1.0
million and $4.7 million were classified in General and
administrative, $(0.1) million and $2.0 million were classified in
Cost of sales, and none and $0.2 million were classified in Other
operating expense (income), net. During the three and nine months
ended September 30, 2023, $3.9 million and $11.6 million were
classified in General and administrative, $1.0 million and $1.0
million were classified in Cost of sales, and none and $0.9 million
were classified in Other operating expense (income),
net.
|
|
|
|
(5)
|
The Company has foreign
currency denominated intercompany loans and incurred foreign
currency gains/losses to re-measure the loans at quarter end. These
amounts are non-cash and the loans are eliminated in
consolidation.
|
|
|
|
(6)
|
During the second
quarter of 2024, the Company incurred $19.3 million of non-cash
impairment charges related to property, plant, and equipment. The
impairment is due to forecasted cash flow losses in the
Ready-to-drink beverages business resulting in a decision to exit
this business.
|
|
|
|
(7)
|
The Company incurred
fees related to shareholder activism which include directly
applicable third-party advisory and professional service
fees.
|
|
|
|
(8)
|
Tax indemnification
represents the non-cash write off of indemnification assets that
were recorded in connection with acquisitions from prior
years. These write-offs arose as a result of the related
uncertain tax position being released due to the statute of
limitation lapse or settlement with taxing authorities.
|
The following tables reconcile the Company's adjusted net sales,
adjusted cost of sales, adjusted gross profit, adjusted total
operating expenses, adjusted operating income (loss), adjusted
total other expense (income), adjusted income tax expense
(benefit), and adjusted net income (loss) to their most directly
comparable GAAP measure, for three and nine months ended
September 30, 2024 and 2023:
|
TREEHOUSE FOODS,
INC.
RECONCILIATION OF
NON-GAAP MEASURES
(Unaudited, in
millions, except per share amounts)
|
|
|
|
|
|
Three Months Ended
September 30, 2024
|
|
|
Net
sales
|
|
Cost of
sales
|
|
Gross
profit
|
|
Total
operating
expenses
|
|
Operating
income
|
|
Total
other
expense
|
|
Income
tax
(benefit)
expense
|
|
Net (loss)
income
from
continuing
operations
|
|
As reported
(GAAP)
|
|
$
839.1
|
|
$
707.9
|
|
$ 131.2
|
|
$
99.4
|
|
$
31.8
|
|
$
36.1
|
|
$
(0.9)
|
|
$
(3.4)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product recalls and
related costs(1)
|
|
15.3
|
|
(13.0)
|
|
28.3
|
|
—
|
|
28.3
|
|
—
|
|
—
|
|
28.3
|
|
Mark-to-market
adjustments(2)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(19.5)
|
|
—
|
|
19.5
|
|
Growth, reinvestment,
restructuring programs & other(3)
|
|
—
|
|
(1.7)
|
|
1.7
|
|
(5.1)
|
|
6.8
|
|
—
|
|
—
|
|
6.8
|
|
Acquisition,
integration, divestiture, and related
costs(4)
|
|
—
|
|
0.1
|
|
(0.1)
|
|
(1.0)
|
|
0.9
|
|
—
|
|
—
|
|
0.9
|
|
Foreign currency gain
on re-measurement of intercompany notes(5)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1.3
|
|
—
|
|
(1.3)
|
|
Taxes on adjusting
items
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
12.1
|
|
(12.1)
|
|
As adjusted
(Non-GAAP)
|
|
$
854.4
|
|
$
693.3
|
|
$ 161.1
|
|
$
93.3
|
|
$
67.8
|
|
$
17.9
|
|
$
11.2
|
|
$
38.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported (% of net
sales)
|
|
|
|
|
|
15.6 %
|
|
11.8 %
|
|
3.8 %
|
|
4.3 %
|
|
(0.1) %
|
|
(0.4) %
|
|
As adjusted (% of
adjusted net sales)
|
|
|
|
|
|
18.9 %
|
|
10.9 %
|
|
7.9 %
|
|
2.1 %
|
|
1.3 %
|
|
4.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ (0.07)
|
|
Adjusted
diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
0.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted for net loss
from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
51.9
|
|
Diluted for adjusted
net income from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
52.2
|
|
|
Three Months Ended
September 30, 2023
|
|
|
Net
sales
|
|
Cost of
sales
|
|
Gross
profit
|
|
Total
operating
expenses
|
|
Operating
income
|
|
Total
other
expense
|
|
Income
tax
expense
|
|
Net
income
from
continuing
operations
|
|
As reported
(GAAP)
|
|
$
863.3
|
|
$
725.8
|
|
$ 137.5
|
|
$ 103.9
|
|
$
33.6
|
|
$
20.1
|
|
$
3.7
|
|
$
9.8
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product recalls and
related costs(1)
|
|
3.0
|
|
(8.2)
|
|
11.2
|
|
—
|
|
11.2
|
|
—
|
|
—
|
|
11.2
|
|
Mark-to-market
adjustments(2)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(2.0)
|
|
—
|
|
2.0
|
|
Growth, reinvestment,
restructuring programs & other(3)
|
|
—
|
|
—
|
|
—
|
|
(9.7)
|
|
9.7
|
|
—
|
|
—
|
|
9.7
|
|
Acquisition,
integration, divestiture, and related
costs(4)
|
|
—
|
|
(1.0)
|
|
1.0
|
|
(3.9)
|
|
4.9
|
|
—
|
|
—
|
|
4.9
|
|
Foreign currency loss
on re-measurement of intercompany notes(5)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(2.5)
|
|
—
|
|
2.5
|
|
Taxes on adjusting
items
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
7.7
|
|
(7.7)
|
|
As adjusted
(Non-GAAP)
|
|
$
866.3
|
|
$
716.6
|
|
$ 149.7
|
|
$
90.3
|
|
$
59.4
|
|
$
15.6
|
|
$
11.4
|
|
$
32.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported (% of net
sales)
|
|
|
|
|
|
15.9 %
|
|
12.0 %
|
|
3.9 %
|
|
2.3 %
|
|
0.4 %
|
|
1.1 %
|
|
As adjusted (% of
adjusted net sales)
|
|
|
|
|
|
17.3 %
|
|
10.4 %
|
|
6.9 %
|
|
1.8 %
|
|
1.3 %
|
|
3.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from
continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 0.17
|
|
Adjusted
diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 0.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted for net income
from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
56.4
|
|
Diluted for adjusted
net income from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
56.4
|
|
|
Nine Months Ended
September 30, 2024
|
|
|
Net
sales
|
|
Cost of
sales
|
|
Gross
profit
|
|
Total
operating
expenses
|
|
Operating
income
|
|
Total
other
expense
|
|
Income
tax
(benefit)
expense
|
|
Net (loss)
income
from
continuing
operations
|
|
As reported
(GAAP)
|
|
$ 2,448.3
|
|
$ 2,076.8
|
|
$ 371.5
|
|
$ 348.9
|
|
$
22.6
|
|
$
63.1
|
|
$
(8.7)
|
|
$ (31.8)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product recalls and
related costs(1)
|
|
17.6
|
|
(25.1)
|
|
42.7
|
|
—
|
|
42.7
|
|
—
|
|
—
|
|
42.7
|
|
Mark-to-market
adjustments(2)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(11.0)
|
|
—
|
|
11.0
|
|
Growth, reinvestment,
restructuring programs & other(3)
|
|
—
|
|
(1.7)
|
|
1.7
|
|
(23.3)
|
|
25.0
|
|
—
|
|
—
|
|
25.0
|
|
Acquisition,
integration, divestiture, and related
costs(4)
|
|
—
|
|
(2.0)
|
|
2.0
|
|
(4.9)
|
|
6.9
|
|
—
|
|
—
|
|
6.9
|
|
Foreign currency loss
on re-measurement of intercompany notes(5)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(2.2)
|
|
—
|
|
2.2
|
|
Impairment(6)
|
|
—
|
|
—
|
|
—
|
|
(19.3)
|
|
19.3
|
|
—
|
|
—
|
|
19.3
|
|
Taxes on adjusting
items
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
23.4
|
|
(23.4)
|
|
As adjusted
(Non-GAAP)
|
|
$ 2,465.9
|
|
$ 2,048.0
|
|
$ 417.9
|
|
$ 301.4
|
|
$ 116.5
|
|
$
49.9
|
|
$
14.7
|
|
$
51.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported (% of net
sales)
|
|
|
|
|
|
15.2 %
|
|
14.3 %
|
|
0.9 %
|
|
2.6 %
|
|
(0.4) %
|
|
(1.3) %
|
|
As adjusted (% of
adjusted net sales)
|
|
|
|
|
|
16.9 %
|
|
12.2 %
|
|
4.7 %
|
|
2.0 %
|
|
0.6 %
|
|
2.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ (0.60)
|
|
Adjusted
diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
0.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted for net loss
from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
52.7
|
|
Diluted for adjusted
net income from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53.0
|
|
|
Nine Months Ended
September 30, 2023
|
|
|
Net
sales
|
|
Cost of
sales
|
|
Gross
profit
|
|
Total
operating
expenses
|
|
Operating
income
|
|
Total
other
expense
|
|
Income
tax
expense
|
|
Net
income
from
continuing
operations
|
|
As reported
(GAAP)
|
|
$ 2,520.8
|
|
$ 2,096.5
|
|
$ 424.3
|
|
$ 319.5
|
|
$ 104.8
|
|
$
32.2
|
|
$
20.0
|
|
$
52.6
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product recalls and
related costs(1)
|
|
3.0
|
|
(8.2)
|
|
11.2
|
|
—
|
|
11.2
|
|
—
|
|
—
|
|
11.2
|
|
Mark-to-market
adjustments(2)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1.5
|
|
—
|
|
(1.5)
|
|
Growth, reinvestment,
restructuring programs & other(3)
|
|
—
|
|
—
|
|
—
|
|
(33.9)
|
|
33.9
|
|
—
|
|
—
|
|
33.9
|
|
Acquisition,
integration, divestiture, and related
costs(4)
|
|
—
|
|
(1.0)
|
|
1.0
|
|
(12.5)
|
|
13.5
|
|
—
|
|
—
|
|
13.5
|
|
Foreign currency gain
on re-measurement of intercompany notes(5)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
0.2
|
|
—
|
|
(0.2)
|
|
Shareholder
activism(7)
|
|
—
|
|
—
|
|
—
|
|
(0.3)
|
|
0.3
|
|
—
|
|
—
|
|
0.3
|
|
Tax
indemnification(8)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(0.3)
|
|
—
|
|
0.3
|
|
Taxes on adjusting
items
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
13.7
|
|
(13.7)
|
|
As adjusted
(Non-GAAP)
|
|
$ 2,523.8
|
|
$ 2,087.3
|
|
$ 436.5
|
|
$ 272.8
|
|
$ 163.7
|
|
$
33.6
|
|
$
33.7
|
|
$
96.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported (% of net
sales)
|
|
|
|
|
|
16.8 %
|
|
12.7 %
|
|
4.2 %
|
|
1.3 %
|
|
0.8 %
|
|
2.1 %
|
|
As adjusted (% of
adjusted net sales)
|
|
|
|
|
|
17.3 %
|
|
10.8 %
|
|
6.5 %
|
|
1.3 %
|
|
1.3 %
|
|
3.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from
continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 0.93
|
|
Adjusted
diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 1.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted for net income
from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
56.7
|
|
Diluted for adjusted
net income from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
56.7
|
|
TREEHOUSE FOODS,
INC.
RECONCILIATION OF
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES FROM
CONTINUING
OPERATIONS TO FREE CASH FLOW FROM CONTINUING
OPERATIONS
(Unaudited, in
millions)
|
|
|
|
|
|
Nine Months
Ended
September
30,
|
|
|
2024
|
|
2023
|
|
|
|
|
Cash flow (used in)
provided by operating activities from continuing
operations
|
|
$
(30.4)
|
|
$
11.0
|
|
Less: Capital
expenditures
|
|
(91.6)
|
|
(77.1)
|
|
Free cash flow from
continuing operations
|
|
$
(122.0)
|
|
$
(66.1)
|
View original
content:https://www.prnewswire.com/news-releases/treehouse-foods-inc-reports-third-quarter-2024-results-302301831.html
SOURCE TreeHouse Foods, Inc.
