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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): February 20, 2025
Utz Brands, Inc.
(Exact name of registrant as specified in its charter)
| | | | | | | | | | | | | | |
| Delaware | | 001-38686 | | 85-2751850 |
(State or other jurisdiction
of incorporation) | | (Commission File Number) | | (IRS Employer
Identification No.) |
900 High Street
Hanover, PA 17331
(Address of principal executive offices, including zip code)
Registrant’s telephone number, including area code: (717) 637-6644
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | | | | | | | |
| Title of each class | | Trading Symbol(s) | | Name of each exchange on which registered |
| Class A Common Stock, par value $0.0001 per share | | UTZ | | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On February 20, 2025, Utz Brands, Inc. (the “Company”) announced via press release the Company’s financial results for the fourth quarter and fiscal year ended December 29, 2024. A copy of the Company’s press release is being furnished as Exhibit 99.1 to this Current Report on Form 8-K and is hereby incorporated by reference into this Item 2.02. The information and exhibit contained in this Item 2.02 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), except as shall be expressly set forth by specific reference in such filing.
Item 7.01 Regulation FD Disclosure.
The Company will hold a conference call and webcast on February 20, 2025 (see information in the press release under “News” of the Company’s website https://investors.utzsnacks.com). A copy of the slide materials to be discussed during the conference call and webcast is being furnished pursuant to Regulation FD as Exhibit 99.2 to this Current Report on Form 8-K and is hereby incorporated by reference into this Item 7.01. A copy of the slide materials has also been posted to the Company’s website at https://investors.utzsnacks.com. The information and exhibit contained in this Item 7.01 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, nor shall it be incorporated by reference into any filing under the Securities Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
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| Exhibit No. | Description |
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| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Utz Brands, Inc.
Dated: February 20, 2025
By: /s/ Ajay Kataria
Name: Ajay Kataria
Title: Executive Vice President,
Chief Financial Officer and Chief Accounting Officer
Utz Brands Reports Fourth Quarter and Full Year 2024 Results
Hanover, PA – February 20, 2025 – Utz Brands, Inc. (NYSE: UTZ) (“Utz” or the “Company”), a leading U.S. manufacturer of branded Salty Snacks and a small-cap value Staples equity, today reported financial results for the Company’s fiscal fourth quarter and full year ended December 29, 2024.
4Q’24 Summary(1)
•Net Sales of $341.0 million
•Organic Net Sales flat; Branded Salty Snacks increased 2.9%
•Gross Profit Margin expansion of 230bps
•Adjusted Gross Profit Margin expansion of 230bps
•Net Income of $2.1 million
•Adjusted EBITDA increased 7.5% to $53.1 million
•Adjusted Net Income increased 41.5% to $32.4 million
•Diluted Earnings Per Share of $0.03
•Adjusted Earnings Per Share increased 37.5% to $0.22
FY’24 Summary(2)
•Net Sales of $1,409.3 million
•Organic Net Sales increased 1.3%; Branded Salty Snacks increased 3.7%
•Gross Profit Margin expansion of 340bps
•Adjusted Gross Profit Margin expansion of 260bps
•Net Income of $30.7 million
•Adjusted EBITDA increased 6.9% to $200.2 million
•Adjusted Net Income increased 35.7% to $110.3 million
•Diluted Earnings Per Share of $0.19
•Adjusted Earnings Per Share increased 35.1% to $0.77
FY’25 Outlook Highlights(3)
•Low-single digit Organic Net Sales Growth
•6% to 10% Adjusted EBITDA Growth
•10% to 15% Adjusted Earnings Per Share Growth
(1) All comparisons for the fourth quarter of 2024 are compared to the fourth quarter ended December 31, 2023.
(2) All comparisons for the full fiscal year 2024 are compared to the full fiscal year ended December 31, 2023.
(3) See “Fiscal Year 2025 Outlook” below for certain assumptions and disclaimers regarding our Fiscal Year 2025 Outlook.
“In 2024, our Branded Salty Snacks delivered strong Organic Net Sales growth of nearly 4%, while we continued to carefully manage low-margin partner brands, private label, and non-salty snacks. We also met or exceeded our goals for volume share of the Salty Snack category which allowed us to partially offset the category softness as the year progressed. Finally, we exceeded our goals of Adjusted EBITDA Margin, Adjusted Earnings Per Share, and Net Leverage,“ said Howard Friedman, Chief Executive Officer of Utz.
Mr. Friedman continued, “Looking ahead to 2025, our strong productivity cost savings driven by our network optimization and increased capital investments gives us the flexibility to build our brands, address consumer value needs, and expand our margins. Moreover, we are accelerating our investments to drive faster share growth in our Expansion geographies while ensuring we hold share in our Core. Importantly, our 2025 outlook positions us well to deliver or exceed our fiscal 2026 bottom-line financial goals.”
Fourth Quarter 2024 Results
Fourth quarter net sales of $341.0 million compared to $352.1 million in the prior year period. The divestiture of the R.W. Garcia® and Good Health® brands impacted net sales by (3.2)%. Organic Net Sales were comparable to last year led by favorable volume/mix of 0.2% partially offset by lower net price realization of (0.2)%. Branded Salty Snacks(1) Organic Net Sales increased 2.9% led by our Power Four Brands, which was offset by an (18.2)% decline in Non-Branded & Non-Salty Snacks(1) primarily due to declines in Partner Brands and Dips & Salsas.
For the 13-week period ended December 29, 2024, the Company’s Branded Salty Snacks retail sales, as measured by Circana MULO+ w/Convenience, increased by 0.9% versus the prior-year period compared to a (0.1)% decline for the Salty Snack category. The Company’s Power Four Brands of Utz®, On The Border®, Zapp’s® and Boulder Canyon® increased by 2.6%. The Company’s retail volumes increased by 2.2% compared to a (0.3%) decline for the Salty Snack category, and the Company drove volume share gains in both its Core and Expansion geographies while finishing the year with household penetration in the Salty Snack category at an all-time high.
Gross profit margin of 35.0% expanded 230bps compared to 32.7% in the prior year period. Adjusted Gross Profit Margin of 39.4% expanded 230bps compared to 37.1% in the prior year period. These increases were driven by benefits from productivity and favorable sales volume/mix, which more than offset supply chain cost inflation, investments to support the Company’s productivity initiatives, and disciplined promotional investments.
Selling, Distribution, and Administrative Expenses (“SD&A Expenses”) were $111.7 million or 32.8% of net sales, compared to $107.1 million or 30.4% of net sales in the prior-year period. Adjusted SD&A Expenses were $81.6 million or 23.9% of net sales, compared to $81.3 million or 23.1% of net sales in the prior-year period. The increase as a percentage of net sales was primarily due to higher people, selling, and delivery costs to support growth.
The Company reported net income of $2.1 million compared to a net loss of $(33.2) million in the prior-year period. The change in net income was primarily due to an increase in the gain on the remeasurement of the warrant liability of $29.9 million. Adjusted Net Income in the quarter increased 41.5% to $32.4 million compared to $22.9 million in the prior-year period. Adjusted Earnings Per Share increased 37.5% to $0.22 compared to $0.16 in the prior-year period. The Adjusted Earnings Per Share growth in the fourth quarter was the result of operating earnings growth, lower Core Depreciation and Amortization Expense, and lower interest expense as a result of increased long-term debt repayment.
Adjusted EBITDA increased 7.5% to $53.1 million, or 15.6% as a percentage of net sales, compared to $49.4 million, or 14.0% as a percentage of net sales, in the prior-year period. The Adjusted EBITDA Margin improvement was driven by Adjusted Gross Margin expansion partially offset by an increase in Adjusted SD&A Expense as percentage of net sales.
(1) See “Other Defined Terms” for definitions of net sales components.
Balance Sheet and Cash Flow Highlights
•As of December 29, 2024
◦Total liquidity of $214.8 million, consisting of cash on hand of $56.1 million and $158.7 million available under the Company’s revolving credit facility.
◦Net debt of $727.3 million resulting in a Net Leverage Ratio of 3.6x based on trailing twelve months Normalized Adjusted EBITDA of $200.2 million.
•For the 52-weeks ended December 29, 2024
◦Cash flow provided by operations was $106.2 million, which reflects strong working capital performance in the second half of the year. In addition, cash flow from operations also includes an approximately $30 million negative impact from the sale of Good Health® and R.W. Garcia®, and the related divestitures of the Company’s five manufacturing facilities.
◦Capital expenditures were $98.6 million, and dividends and distributions paid were $40.1 million.
Fiscal Year 2025 Outlook
For the fiscal year 2025, the Company expects:
•Organic Net Sales growth of low-single digits led by continued Branded Salty Snacks growth, particularly the Power Four Brands, and less decline in Non-Branded & Non-Salty Snacks.
•Adjusted EBITDA growth of 6% to 10% and Adjusted EBITDA margin expansion of approximately 100bps, led by Adjusted Gross Margin expansion fueled by strong productivity cost savings and improved product mix.
•Adjusted Earnings per Share growth of 10% to 15% led by increased operating earnings and lower interest expense.
The Company also expects:
•An effective tax rate (normalized GAAP basis tax expense, which excludes one-time items) in the range of 17% to 19%;
•Interest expense of approximately $43 million;
•Capital expenditures in the range of $90 to $100 million with the majority focused on building increased manufacturing network capacity and delivering accelerated productivity savings; and
•Net Leverage Ratio approaching 3x at year-end fiscal 2025.
Quantitative reconciliations are not available for the forward-looking non-GAAP financial measures used herein without unreasonable efforts due to the high variability, complexity, and low visibility with respect to certain items which are excluded from Organic Net Sales, Adjusted EBITDA, Net Leverage Ratio, normalized GAAP basis tax expense, excluding one-time items, and Adjusted Earnings Per Share, respectively. We expect the variability of these items to have a potentially unpredictable, and potentially significant, impact on our future financial results.
Conference Call and Webcast Presentation
The Company has also posted a pre-recorded management discussion of its fourth quarter results to its website at https://investors.utzsnacks.com. In addition, the Company will host a live question and answer session with analysts at 7:15 a.m. Eastern Time today. Please visit the “Events & Presentations” section of Utz’s Investor Relations website at https://investors.utzsnacks.com to access the live listen-only webcast. Participants can also dial in over the phone by calling 1-888-596-4144. The Event Plus passcode is 3860587. The Company has also posted presentation slides and additional supplemental financial information, which are available now on Utz’s Investor Relations website.
About Utz Brands, Inc.
Utz Brands, Inc. (NYSE: UTZ) manufactures a diverse portfolio of savory snacks through popular brands, including Utz®, On The Border® Chips & Dips, Zapp’s®, and Boulder Canyon®, among others.
After a century with a strong family heritage, Utz continues to have a passion for exciting and delighting consumers with delicious snack foods made from top-quality ingredients. Utz's products are distributed nationally through grocery, mass merchandisers, club, convenience, drug, and other channels. Based in Hanover, Pennsylvania, Utz has multiple manufacturing facilities located across the U.S. to serve our growing customer base. For more information, please visit the Company’s website or call 1‐800‐FOR‐SNAX.
Investors and others should note that Utz announces material financial information to its investors using its Investor Relations website, U.S. Securities and Exchange Commission (the “Commission”) filings, press releases, public conference calls, and webcasts. Utz uses these channels, as well as social media, to communicate with our stockholders
and the public about the Company, the Company’s products, and other Company information. It is possible that the information that Utz posts on social media could be deemed to be material information. Therefore, Utz encourages investors, the media, and others interested in the Company to review the information posted on the social media channels listed on Utz’s Investor Relations website.
Investor Contact
Kevin Powers
Utz Brands, Inc.
kpowers@utzsnacks.com
Media Contact
Kevin Brick
Utz Brands, Inc.
kbrick@utzsnacks.com
Forward-Looking Statements
This press release includes certain statements made herein that are not historical facts but are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. The forward-looking statements generally are accompanied by or include, without limitation, statements such as “will”, “expect”, “intends”, “goal”, “on track” or other similar words, phrases or expressions. These forward-looking statements include future plans for the Company, including outlook for fiscal 2025, plans related to the transformation of the Company’s supply chain, the Company’s product mix, the Company’s ability to reduce debt, and the anticipated interest expense savings from the repricing of the $630 million Term Loan; the estimated or anticipated future results and benefits of the Company’s future plans and operations; the Company’s cost savings plans and the Company’s logistics optimization efforts; the estimated or anticipated future results and benefits of the Company’s plans and operations; the effects of inflation or supply chain disruptions on the Company or its business; the benefits of the Company’s productivity initiatives; the effects of the Company’s marketing and innovation initiatives; the Company’s future capital structure; future opportunities for the Company’s growth; statements regarding the Company’s projected balance sheet and liabilities, including net leverage; and other statements that are not historical facts.
These statements are based on the current expectations of the Company’s management and are not predictions of actual performance. These statements are subject to a number of risks and uncertainties and the Company’s business and actual results may differ materially. Some factors that could cause actual results to differ include, without limitation: the risk that the Company’s gross profit margins may be adversely impacted by a variety of factors, including variations in pricing of raw materials, retail customer requirements and mix, sales velocities, and required promotional support; changes in consumers’ loyalty to the Company’s brands due to factors beyond the Company’s control, including changes in consumer spending due to factors such as increasing household debt; changes in demand for the Company’s products affected by changes in consumer preferences and tastes or if the Company is unable to innovate or market its products effectively, particularly in the Company’s “expansion geographies”; costs associated with building brand loyalty and interest in the Company’s products which may be affected by actions by the Company’s competitors that result in the Company’s products not being suitably differentiated from the products of their competitors; consolidation of key suppliers of the Company; any inability of the Company to adopt efficiencies into its manufacturing processes, including automation and labor optimization, its network, including through plant consolidation and lowest landed cost for shipping its products, or its logistics operations; fluctuations in results of operations of the Company from quarter to quarter because of changes in promotional activities; the possibility that the Company may be adversely affected by other economic, business, or competitive factors; the risk that recently completed business combinations and other acquisitions recently completed by the Company or dispositions disrupt plans and operations; the ability of the Company to recognize the anticipated benefits of such business combinations, acquisitions, or dispositions, which may be affected by, among other things, competition and the ability of the Company to grow and manage growth profitably and retain its key employees; the outcome of any legal proceedings that may be instituted against the Company following the consummation of such business combinations, acquisitions, or dispositions; changes in applicable law or regulations
(including tariffs); costs related to any planned business combinations, acquisitions, or dispositions; the ability of the Company to develop and maintain effective internal controls; and other risks and uncertainties set forth in the section entitled “Risk Factors” and “Forward-Looking Statements” in the Company’s Annual Report on Form 10-K filed with the Commission for the fiscal year ended December 31, 2023, and other reports filed by the Company with the Commission. Forward-looking statements provide the Company’s expectations, plans or forecasts of future events and views as of the date of this communication. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this communication. The Company cautions investors not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as otherwise required by law.
Non-GAAP Financial Measures:
Utz uses non-GAAP financial information and believes it is useful to investors as it provides additional information to facilitate comparisons of historical operating results, identifies trends in our underlying operating results, and provides additional insight and transparency on how we evaluate the business. We use non-GAAP financial measures to budget, make operating and strategic decisions, and evaluate our performance. These non-GAAP financial measures do not represent financial performance in accordance with generally accepted accounted principles in the United States (“GAAP”) and may exclude items that are significant to understanding and assessing financial results. Therefore, these measures should not be considered in isolation or as an alternative to net income, cash flows from operations, earnings per share or other measures of profitability, liquidity, or performance under GAAP. You should be aware that the presentation of these measures may not be comparable to similarly titled measures used by other companies.
Management believes that non-GAAP financial measures should be considered as supplements to the GAAP measures reported, should not be considered replacements for, or superior to, the GAAP measures, and may not be comparable to similarly named measures used by other companies. The Company’s calculation of the non-GAAP financial measures may differ from methods used by other companies. We believe that these non-GAAP financial measures provide useful information to investors regarding certain financial and business trends relating to the financial condition and results of operations of the Company to date when considered with both the GAAP results and the reconciliations to the most comparable GAAP measures, and that the presentation of non-GAAP financial measures is useful to investors in the evaluation of our operating performance compared to other companies in the Salty Snack industry, as similar measures are commonly used by the companies in this industry. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which items of expense and income are excluded or included in determining these non-GAAP financial measures. The non-GAAP financial measures are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures. As new events or circumstances arise, these definitions could change. When the definitions change, we will provide the updated definitions and present the related non-GAAP historical results on a comparable basis.
Utz uses the following non-GAAP financial measures in its financial communications, and in the future could use others:
•Organic Net Sales
•Adjusted Gross Profit
•Adjusted Gross Profit as % of Net Sales (Adjusted Gross Profit Margin)
•Adjusted Selling, Distribution, and Administrative Expense
•Adjusted Selling, Distribution, and Administrative Expense as % of Net Sales
•Adjusted Net Income
•Adjusted Earnings Per Share
•Adjusted Earnings Before Tax
•EBITDA
•Adjusted EBITDA
•Adjusted EBITDA as % of Net Sales (Adjusted EBITDA Margin)
•Normalized Adjusted EBITDA
•Effective Normalized Tax Rate
•Net Leverage Ratio
Organic Net Sales is defined as net sales excluding the impacts of acquisitions, divestitures and independent operator (“IO”) route conversions.
Adjusted Gross Profit represents Gross Profit excluding Depreciation and Amortization expense, a non-cash item. In addition, Adjusted Gross Profit excludes the impact of costs that fall within the categories of non-cash adjustments and/or other cash adjustment items such as those related to stock-based compensation, hedging and purchase commitments adjustments, asset impairments, acquisition and integration costs, business transformation initiatives, and financing-related costs. Adjusted Gross Profit is one of the key performance indicators that our management uses to evaluate operating performance. We also report Adjusted Gross Profit as a percentage of Net Sales as an additional measure for investors to evaluate our Adjusted Gross Profit Margin on Net Sales.
Adjusted Selling, Distribution, and Administrative Expense is defined as all Selling, Distribution, and Administrative expense excluding Depreciation and Amortization expense, a non- cash item. In addition, Adjusted Selling, Distribution, and Administrative Expense excludes the impact of costs that fall within the categories of non-cash adjustments and/or other cash adjustment items such as those related to stock-based compensation, hedging and purchase commitments adjustments, asset impairments, acquisition and integration costs, business transformation initiatives, and financing-related costs. We also report Adjusted Selling, Distribution, and Administrative Expense as a percentage of Net Sales as an additional measure for investors to evaluate our Adjusted Selling, Distribution, and Administrative Margin on Net Sales.
Adjusted Net Income is defined as Net Income excluding the additional Depreciation and Amortization expense, a non-cash item, related to fair value adjustments on property, plant, and equipment, and definite-lived intangibles relate to business combinations recorded in prior periods. In addition, Adjusted Net Income is also adjusted to exclude deferred financing fees, interest income, and expense relating to IO loans and certain non-cash adjustments and/or other cash adjustment items such as those related to stock-based compensation, hedging, and purchase commitments adjustments, asset impairments, acquisition and integration costs, business transformation initiatives, remeasurement of warrant liabilities and financing-related costs. Lastly, Adjusted Net Income normalizes the income tax provision to account for the above-mentioned adjustments.
Adjusted Earnings Before Tax is defined as Adjusted Net Income before normalized GAAP basis tax expense.
Adjusted Earnings Per Share is defined as Adjusted Net Income (as defined above) divided by the weighted average shares outstanding for each period on a fully diluted basis, assuming the Private Placement Warrants are net settled and the Shares of Class V Common Stock held by Continuing Members are converted to Class A Common Stock.
EBITDA is defined as Net Income Before Interest, Income Taxes, and Depreciation and Amortization.
Adjusted EBITDA is defined as EBITDA further adjusted to exclude certain non-cash adjustments and/or other cash adjustment items, such as stock-based compensation, hedging and purchase commitments adjustments, asset impairments, acquisition and integration costs, business transformation initiatives; and financing-related costs. Adjusted EBITDA is one of the key performance indicators we use in evaluating our operating performance and in making financial, operating, and planning decisions. We believe Adjusted EBITDA is useful to the users of this release because the financial information contained in the release can be used in the evaluation of Utz’s operating performance compared to other companies in the Salty Snack industry, as similar measures are commonly used by companies in this industry. We also provide in this release, Adjusted EBITDA as a percentage of Net Sales, as an additional measure for readers to evaluate our Adjusted EBITDA Margin on Net Sales.
Normalized Adjusted EBITDA is defined as Adjusted EBITDA after giving effect to pre-acquisition Adjusted EBITDA for certain acquisitions and dispositions from time to time.
Effective Normalized Tax Rate is defined as normalized GAAP basis tax expense, which excludes one-time items, divided by Adjusted Earnings before Tax.
Net Leverage Ratio is defined as Normalized Adjusted EBITDA divided by Net Debt. Net Debt is defined as Gross Debt less Cash and Cash Equivalents.
Other Defined Terms:
Branded Salty Snacks is defined as Power Four Brands and Other Brands. Power Four Brands include the Utz® brand, On The Border®, Zapp’s®, and Boulder Canyon®. Other Brands include Golden Flake®, TORTIYAHS!®, Hawaiian®, Bachman®, Tim’s Cascade®, Dirty Potato Chips®, TGI Fridays® and strong regional snacking brands, such as Golden Flake® Chips and Cheese, and Vitner's®.
Non-Branded & Non-Salty Snacks is defined as partner brands, private label, co-manufacturing for which we are the manufacturer, Utz branded non-salty snacks such as On The Border® Dips and Salsa, and sales not attributable to specific brands.
Utz Brands, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
For the thirteen weeks ended December 29, 2024 and December 31, 2023
(In thousands, except share information)
(Unaudited)
| | | | | | | | | | | |
| (in thousands) | Thirteen weeks ended December 29, 2024 | | Thirteen weeks ended December 31, 2023 |
| Net sales | $ | 341,045 | | | $ | 352,099 | |
| Cost of goods sold | 221,618 | | | 236,771 | |
| Gross profit | 119,427 | | | 115,328 | |
| | | |
| Selling, distribution and administrative expenses | | | |
| Selling and distribution | 78,565 | | | 71,035 | |
| Administrative | 33,146 | | | 36,041 | |
| Total selling, distribution, and administrative expenses | 111,711 | | | 107,076 | |
| | | |
| (Loss) gain on sale of assets, net | (480) | | | 1,925 | |
| | | |
| Income from operations | 7,236 | | | 10,177 | |
| | | |
| Other income (expense) | | | |
| | | |
| Interest expense | (8,231) | | | (15,656) | |
| | | |
| Other income | 899 | | | 787 | |
| Gain (loss) on remeasurement of warrant liability | 15,552 | | | (14,328) | |
| Other income (expense), net | 8,220 | | | (29,197) | |
| | | |
| Income (loss) before income taxes | 15,456 | | | (19,020) | |
| Income tax expense | 13,335 | | | 14,192 | |
| Net income (loss) | 2,121 | | | (33,212) | |
| | | |
| Net loss attributable to noncontrolling interest | 193 | | | 5,533 | |
| Net income (loss) attributable to controlling interest | $ | 2,314 | | | $ | (27,679) | |
| | | |
Earnings (loss) per share of Class A Common Stock: (in dollars) | | | |
| Basic | $ | 0.03 | | | $ | (0.34) | |
| Diluted | $ | 0.03 | | | $ | (0.34) | |
| Weighted-average shares of Class A Common Stock outstanding: | | | |
| Basic | 83,119,960 | | | 81,142,952 | |
| Diluted | 86,685,475 | | | 81,142,952 | |
| | | |
| Net income (loss) | $ | 2,121 | | | $ | (33,212) | |
| Other comprehensive (loss) gain: | | | |
| Change in fair value of interest rate swap | 5,476 | | | (16,837) | |
| Comprehensive income (loss) | 7,597 | | | (50,049) | |
| Net comprehensive (income) loss attributable to noncontrolling interest | (2,052) | | | 12,646 | |
| Net comprehensive income (loss) attributable to controlling interest | $ | 5,545 | | | $ | (37,403) | |
Utz Brands, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
For the fiscal years ended December 29, 2024 and December 31, 2023
(In thousands, except share information)
(Unaudited)
| | | | | | | | | | | |
| (in thousands) | For the Fiscal Year Ended December 29, 2024 | | For the Fiscal Year Ended December 31, 2023 |
| Net sales | $ | 1,409,281 | | | $ | 1,438,237 | |
| Cost of goods sold | 914,504 | | | 981,751 | |
| Gross profit | 494,777 | | | 456,486 | |
| | | |
| Selling, distribution and administrative expenses | | | |
| Selling and distribution | 306,151 | | | 273,923 | |
| Administrative | 129,642 | | | 159,196 | |
| Total selling, distribution, and administrative expenses | 435,793 | | | 433,119 | |
| | | |
| Loss on sale of assets, net | (78) | | | (7,350) | |
| | | |
| Income from operations | 58,906 | | | 16,017 | |
| | | |
| Other income (expense) | | | |
| Gain on sale of business | 44,015 | | | — | |
| Interest expense | (44,862) | | | (60,590) | |
| Loss on debt extinguishment | (1,273) | | | — | |
| Other income | 2,457 | | | 3,066 | |
| Gain on remeasurement of warrant liability | 10,224 | | | 2,232 | |
| Other income (expense), net | 10,561 | | | (55,292) | |
| | | |
| Income (loss) before income taxes | 69,467 | | | (39,275) | |
| Income tax expense | 38,730 | | | 757 | |
| Net income (loss) | 30,737 | | | (40,032) | |
| | | |
| Net (income) loss attributable to noncontrolling interest | (14,763) | | | 15,095 | |
| Net income (loss) attributable to controlling interest | $ | 15,974 | | | $ | (24,937) | |
| | | |
Earnings (loss) per share of Class A Common Stock:
(in dollars) | | | |
| Basic | $ | 0.19 | | | $ | (0.31) | |
| Diluted | $ | 0.19 | | | $ | (0.31) | |
| Weighted-average shares of Class A Common Stock outstanding: | | | |
| Basic | 82,102,876 | | | 81,081,458 | |
| Diluted | 85,433,980 | | | 81,081,458 | |
| | | |
| Net income (loss) | $ | 30,737 | | | $ | (40,032) | |
| Other comprehensive (loss) gain: | | | |
| Change in fair value of interest rate swap | (7,478) | | | (13,543) | |
| Comprehensive income (loss) | 23,259 | | | (53,575) | |
| Net comprehensive (income) loss attributable to noncontrolling interest | (11,653) | | | 20,819 | |
| Net comprehensive income (loss) attributable to controlling interest | $ | 11,606 | | | $ | (32,756) | |
Utz Brands, Inc.
CONSOLIDATED BALANCE SHEETS
December 29, 2024 and December 31, 2023
(In thousands, except per share information)
(Unaudited)
| | | | | | | | | | | | | | |
| | As of
December 29, 2024 | | As of
December 31, 2023 |
| ASSETS | | | | |
| Current Assets | | | | |
| Cash and cash equivalents | | $ | 56,138 | | | $ | 52,023 | |
| Accounts receivable, less allowance of $3,267 and $2,933, respectively | | 119,867 | | | 135,130 | |
| Inventories | | 101,362 | | | 104,666 | |
| Prepaid expenses and other assets | | 35,269 | | | 30,997 | |
| Current portion of notes receivable | | 4,622 | | | 5,237 | |
| Total current assets | | 317,258 | | | 328,053 | |
| Non-current Assets | | | | |
| Assets held for sale | | — | | | 7,559 | |
| Property, plant and equipment, net | | 345,210 | | | 318,881 | |
| Goodwill | | 870,695 | | | 915,295 | |
| Intangible assets, net | | 996,510 | | | 1,063,413 | |
| Non-current portion of notes receivable | | 9,192 | | | 12,413 | |
| Other assets | | 189,547 | | | 101,122 | |
| Total non-current assets | | 2,411,154 | | | 2,418,683 | |
| Total assets | | $ | 2,728,412 | | | $ | 2,746,736 | |
| LIABILITIES AND EQUITY | | | | |
| Current Liabilities | | | | |
| Current portion of term debt | | $ | 16,097 | | | $ | 21,086 | |
| Current portion of other notes payable | | 6,917 | | | 7,649 | |
| Accounts payable | | 150,927 | | | 124,361 | |
| Accrued expenses and other | | 78,281 | | | 77,590 | |
| Current portion of warrant liability | | 33,048 | | | — | |
| Total current liabilities | | 285,270 | | | 230,686 | |
| Non-current portion of term debt | | 752,484 | | | 878,511 | |
| Non-current portion of other notes payable | | 14,985 | | | 19,174 | |
| Non-current accrued expenses and other | | 164,185 | | | 76,720 | |
| Non-current warrant liability | | — | | | 43,272 | |
| Deferred tax liability | | 123,744 | | | 114,690 | |
| Total non-current liabilities | | 1,055,398 | | | 1,132,367 | |
| Total liabilities | | 1,340,668 | | | 1,363,053 | |
| Commitments and contingencies | | | | |
| Equity | | | | |
| Members' equity | | | | |
| Shares of Class A Common Stock, $0.0001 par value; 1,000,000,000 shares authorized; 83,537,542 and 81,187,977 shares issued and outstanding as of December 29, 2024 and December 31, 2023, respectively. | | 8 | | | 8 | |
| Shares of Class V Common Stock, $0.0001 par value; 61,249,000 shares authorized; 57,349,000 and 59,349,000 shares issued and outstanding as of December 29, 2024 and December 31, 2023, respectively. | | 6 | | | 6 | |
| Additional paid-in capital | | 988,510 | | | 944,573 | |
| Accumulated deficit | | (304,663) | | | (298,049) | |
| Accumulated other comprehensive income | | 18,590 | | | 22,958 | |
| Total stockholders’ equity | | 702,451 | | | 669,496 | |
| Noncontrolling interest | | 685,293 | | | 714,187 | |
| Total equity | | 1,387,744 | | | 1,383,683 | |
| Total liabilities and equity | | $ | 2,728,412 | | | $ | 2,746,736 | |
Utz Brands, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the fiscal years ended December 29, 2024 and December 31, 2023
(In thousands)
(Unaudited)
| | | | | | | | | | | |
| For the Fiscal Year Ended December 29, 2024 | | For the Fiscal Year Ended December 31, 2023 |
| Cash flows from operating activities | | | |
| Net income (loss) | $ | 30,737 | | | $ | (40,032) | |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | |
| Impairment and other charges | — | | | 12,575 | |
| Depreciation and amortization | 70,940 | | | 79,488 | |
| | | |
| Gain on sale of business | (44,015) | | | — | |
| Gain on remeasurement of warrant liability | (10,224) | | | (2,232) | |
| Loss on sale of assets | 78 | | | 7,350 | |
| Share-based compensation | 18,295 | | | 17,069 | |
| Loss on debt extinguishment | 1,273 | | | — | |
| Deferred income taxes | 14,145 | | | (8,938) | |
| Amortization of deferred financing costs | 3,154 | | | 1,556 | |
| Changes in assets and liabilities: | | | |
| Accounts receivable, net | 6,782 | | | 1,855 | |
| Inventories | (4,628) | | | 12,652 | |
| Prepaid expenses and other assets | (103,459) | | | (14,433) | |
| Accounts payable and accrued expenses and other | 123,088 | | | 9,730 | |
| Net cash provided by operating activities | 106,166 | | | 76,640 | |
| Cash flows from investing activities | | | |
| | | |
| Purchases of property and equipment | (98,639) | | | (55,724) | |
| Purchases of intangibles | (9,220) | | | — | |
| Proceeds from sale of property and equipment | 26,640 | | | 9,539 | |
| Proceeds from sale of business | 167,500 | | | — | |
| Proceeds from sale of routes | 26,658 | | | 28,665 | |
| Proceeds from the sale of IO notes | 4,912 | | | 5,405 | |
| Proceeds from insurance claims for capital investments | — | | | 1,700 | |
| Notes receivable, net | (42,890) | | | (38,077) | |
| Net cash provided by (used in) investing activities | 74,961 | | | (48,492) | |
| Cash flows from financing activities | | | |
| Borrowings on line of credit | 114,500 | | | 71,000 | |
| Repayments on line of credit | (114,699) | | | (70,632) | |
| Borrowings on term debt and notes payable | 39,112 | | | 13,113 | |
| Repayments on term debt and notes payable | (173,742) | | | (29,211) | |
| Payment of debt issuance cost | (733) | | | (656) | |
| Payments of tax withholding requirements for employee stock awards | (1,397) | | | (589) | |
| | | |
| Dividends paid | (21,724) | | | (18,548) | |
| | | |
| Distribution to noncontrolling interest | (18,329) | | | (13,532) | |
| Net cash used in financing activities | (177,012) | | | (49,055) | |
| Net increase (decrease) in cash and cash equivalents | 4,115 | | | (20,907) | |
| Cash and cash equivalents at beginning of period | 52,023 | | | 72,930 | |
| Cash and cash equivalents at end of period | $ | 56,138 | | | $ | 52,023 | |
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures
Net Sales and Organic Net Sales
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 13-Weeks Ended | | | | 52-Weeks Ended | | |
| (dollars in millions) | | December 29, 2024 | | December 31, 2023 | | Change | | December 29, 2024 | | December 31, 2023 | | Change |
| Net Sales as Reported | | $ | 341.0 | | | $ | 352.1 | | | (3.2) | % | | $ | 1,409.3 | | | $ | 1,438.2 | | | (2.0) | % |
| Impact of Dispositions | | — | | | (11.1) | | | | | — | | | (44.5) | | | |
| Impact of IO Conversions | | — | | | — | | | | | 2.0 | | | — | | | |
Organic Net Sales (1) | | $ | 341.0 | | | $ | 341.0 | | | — | % | | $ | 1,411.3 | | | $ | 1,393.7 | | | 1.3 | % |
(1) Organic Net Sales excludes the Impact of Dispositions and the Impact of IO Conversions that took place after Q4 2023.
Net Sales Growth Drivers
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 13-Weeks Ended December 29, 2024 | | 52-Weeks Ended December 29, 2024 |
| (% change in prior year net sales) | | Branded Salty Snacks (1) | | Non-Branded & Non-Salty Snacks(2) | | Total | | Branded Salty Snacks (1) | | Non-Branded & Non-Salty Snacks(2) | | Total |
| Net Sales as Reported | | $ | 303 | | | $ | 38 | | | $ | 341 | | | $ | 1,221 | | | $ | 188 | | | $ | 1,409 | |
| Net Sales as Reported Growth Versus Prior Year | | 2.9 | % | | (33.9) | % | | (3.2) | % | | 3.6 | % | | (27.4) | % | | (2.0) | % |
| | | | | | | | | | | | |
| Volume/mix | | 3.6 | % | | (20.9) | % | | 0.2 | % | | 4.5 | % | | (15.2) | % | | 1.5 | % |
| Pricing | | (0.7) | | | 2.7 | | | (0.2) | | | (0.8) | | | 2.9 | | | (0.2) | |
| Organic Net Sales Growth Versus Prior Year | | 2.9 | % | | (18.2) | % | | — | % | | 3.7 | % | | (12.3) | % | | 1.3 | % |
| Divestiture | | — | | | (15.7) | | | (3.2) | | | (0.1) | | | (15.1) | | | (3.3) | |
| Net Sales as Reported Growth Versus Prior Year | | 2.9 | % | | (33.9) | % | | (3.2) | % | | 3.6 | % | | (27.4) | % | | (2.0) | % |
(1) Branded Salty Snacks sales excluding IO unreported sales.
(2) Non-Branded & Non-Salty Snacks including IO unreported sales.
Gross Profit and Adjusted Gross Profit
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 13-Weeks Ended | | 52-Weeks Ended |
| (dollars in millions) | | December 29, 2024 | | December 31, 2023 | | December 29, 2024 | | December 31, 2023 |
| Gross Profit | | $ | 119.4 | | | $ | 115.3 | | | $ | 494.8 | | | $ | 456.5 | |
| Gross Profit as a % of Net Sales | | 35.0 | % | | 32.7 | % | | 35.1 | % | | 31.7 | % |
| Depreciation and Amortization | | 6.5 | | | 8.0 | | | 27.0 | | | 33.9 | |
Non-Cash and other cash adjustments (1) | | 8.5 | | | 7.3 | | | 18.2 | | | 23.2 | |
| Adjusted Gross Profit | | $ | 134.4 | | | $ | 130.6 | | | $ | 540.0 | | | $ | 513.6 | |
| Adjusted Gross Profit as a % of Net Sales | | 39.4 | % | | 37.1 | % | | 38.3 | % | | 35.7 | % |
(1) Non-cash and other cash adjustments includes non-cash costs related to incentive programs, asset impairments and write-offs, purchase commitments, other non-cash items, acquisition, divestiture, and integration, business and transformation initiatives, and financing-related costs.
Adjusted Selling, Distribution, and Administrative Expense
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 13-Weeks Ended | | 52-Weeks Ended |
| (dollars in millions) | | December 29, 2024 | | December 31, 2023 | | December 29, 2024 | | December 31, 2023 |
| Selling, Distribution, and Administrative Expense | | $ | 111.7 | | | $ | 107.1 | | | $ | 435.8 | | | $ | 433.1 | |
| Depreciation and Amortization in SD&A Expense | | (11.0) | | (11.4) | | (43.9) | | (45.6) |
Non-Cash and other cash adjustments (1) | | (19.1) | | (14.4) | | (51.6) | | (61.0) |
| Adjusted Selling, Distribution, and Administrative Expense | | $ | 81.6 | | $ | 81.3 | | $ | 340.3 | | $ | 326.5 |
| Adjusted SD&A Expense as a % of Net Sales | | 23.9 | % | | 23.1 | % | | 24.1 | % | | 22.7 | % |
(1) Non-cash and other cash adjustments includes non-cash costs related to incentive programs, asset impairments and write-offs, purchase commitments, other non-cash items, acquisition, divestiture, and integration, business and transformation initiatives, and financing-related costs.
Adjusted Net Income
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 13-Weeks Ended | | 52-Weeks Ended | | |
| (dollars in millions, except per share data) | | December 29, 2024 | | December 31, 2023 | | % Change | | December 29, 2024 | | December 31, 2023 | | % Change |
| Net Income (Loss) | | $ | 2.1 | | | $ | (33.2) | | | 106.3 | % | | $ | 30.7 | | | $ | (40.0) | | | 176.8 | % |
| Income Tax Expense | | 13.3 | | | 14.2 | | | | | 38.7 | | | 0.8 | | | |
| Income (loss) Before Taxes | | 15.4 | | | (19.0) | | | | | 69.4 | | | (39.2) | | | |
| Deferred Financing Fees | | 0.4 | | | 0.5 | | | | | 3.2 | | | 1.6 | | | |
| Acquisition Step-Up Depreciation and Amortization | | 10.5 | | | 11.8 | | | | | 43.5 | | | 47.4 | | | |
| Certain Non-Cash Adjustments | | 6.8 | | | 8.5 | | | | | 21.9 | | | 50.7 | | | |
| Acquisition, Divestiture and Integration Expense (Benefit) | | 11.4 | | | (0.1) | | | | | (23.1) | | | 8.6 | | | |
| Business and Transformation Initiatives | | 9.7 | | | 11.1 | | | | | 28.1 | | | 31.0 | | | |
| Financing-Related Costs | | 0.1 | | | — | | | | | 0.4 | | | 0.2 | | | |
| Loss on Remeasurement of Warrant Liability | | (15.5) | | | 14.4 | | | | | (10.2) | | | (2.2) | | | |
Other Non-Cash and/or Cash Adjustments (2) | | 23.4 | | | 46.2 | | | | | 63.8 | | | 137.3 | | | |
| Adjusted Earnings before Taxes | | 38.8 | | | 27.2 | | | | | 133.2 | | | 98.1 | | | |
| Taxes on Earnings as Reported | | (13.3) | | | (14.2) | | | | | (38.7) | | | (0.8) | | | |
Income Tax Adjustments(1) | | 6.9 | | | 9.9 | | | | | 15.8 | | | (16.0) | | | |
| Adjusted Taxes on Earnings | | (6.4) | | | (4.3) | | | | | (22.9) | | | (16.8) | | | |
| Adjusted Net Income | | $ | 32.4 | | | $ | 22.9 | | | 41.5 | % | | $ | 110.3 | | | $ | 81.3 | | | 35.7 | % |
| | | | | | | | | | | | |
| Average Weighted Basic Shares Outstanding on an As-Converted Basis | | 140.9 | | | 140.5 | | | | | 140.8 | | | 140.4 | | | |
| Fully Diluted Shares on an As-Converted Basis | | 144.5 | | | 142.0 | | | | | 144.2 | | | 142.7 | | | |
| Adjusted Earnings Per Share | | $ | 0.22 | | | $ | 0.16 | | | 37.5 | % | | $ | 0.77 | | | $ | 0.57 | | | 35.1 | % |
(1) Non-cash and other cash adjustments includes non-cash costs related to incentive programs, asset impairments and write-offs, purchase commitments, other non-cash items, acquisition, divestiture, and integration, business and transformation initiatives, and financing-related costs.
(2) Income Tax Adjustment calculated as (Loss) Income before taxes plus (i) Acquisition, Step-Up Depreciation and Amortization and (ii) Other Non-Cash and/or cash Adjustments, multiplied by a normalized GAAP effective tax rate, minus the actual tax provision recorded in the Consolidated Statement of Operations and Comprehensive Loss. The normalized GAAP effective tax rate excludes one-time items such as the impact of tax rate changes on deferred taxes and changes in valuation allowances.
Depreciation & Amortization
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 13-Weeks Ended | | 52-Weeks Ended |
| (dollars in millions) | | December 29, 2024 | | December 31, 2023 | | December 29, 2024 | | December 31, 2023 |
| Core D&A - Non-Acquisition-related included in Gross Profit | | $ | 4.7 | | | $ | 5.3 | | | $ | 18.4 | | | $ | 22.8 | |
| Step-Up D&A - Transaction-related included in Gross Profit | | 1.8 | | | 2.7 | | | 8.6 | | | 11.1 | |
| Depreciation & Amortization - included in Gross Profit | | 6.5 | | | 8.0 | | | 27.0 | | | 33.9 | |
| | | | | | | | |
| Core D&A - Non-Acquisition-related included in SD&A Expense | | $ | 2.3 | | | 2.3 | | $ | 9.0 | | | 9.3 |
| Step-Up D&A - Transaction-related included in SD&A Expense | | 8.7 | | | 9.1 | | | 34.9 | | | 36.3 | |
| Depreciation & Amortization - included in SD&A Expense | | 11.0 | | | 11.4 | | | 43.9 | | | 45.6 | |
| | | | | | | | |
| Depreciation & Amortization - Total | | $ | 17.5 | | | $ | 19.4 | | | $ | 70.9 | | | $ | 79.5 | |
| | | | | | | | |
| Core Depreciation and Amortization | | $ | 7.0 | | | $ | 7.6 | | | $ | 27.4 | | | $ | 32.1 | |
| Step-Up Depreciation and Amortization | | $ | 10.5 | | | 11.8 | | $ | 43.5 | | | 47.4 |
| Total Depreciation and Amortization | | $ | 17.5 | | | $ | 19.4 | | | $ | 70.9 | | | $ | 79.5 | |
EBITDA and Adjusted EBITDA
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 13-Weeks Ended | | 52-Weeks Ended |
| (dollars in millions) | | December 29, 2024 | | December 31, 2023 | | % Change | | December 29, 2024 | | December 31, 2023 | | % Change |
| Net Income (Loss) | | $ | 2.1 | | | $ | (33.2) | | | 106.3 | % | | $ | 30.7 | | | $ | (40.0) | | | 176.8 | % |
| Plus non-GAAP adjustments: | | | | | | | | | | | | |
| Income Tax Expense (Benefit) | | 13.3 | | | 14.2 | | | | | 38.7 | | | 0.8 | | | |
| Depreciation and Amortization | | 17.5 | | | 19.4 | | | | | 70.9 | | | 79.5 | | | |
| Interest Expense, Net | | 8.3 | | | 15.7 | | | | | 44.9 | | | 60.6 | | | |
Interest Income from IO loans(1) | | (0.6) | | | (0.6) | | | | | (2.1) | | | (2.0) | | | |
| EBITDA | | 40.6 | | | 15.5 | | | 161.9 | % | | 183.1 | | | 98.9 | | | 85.1 | % |
Certain Non-Cash Adjustments(2) | | 6.8 | | | 8.5 | | | | | 21.9 | | | 50.7 | | | |
Acquisition, Divestiture and Integration(3) | | 11.4 | | | (0.1) | | | | | (23.1) | | | 8.6 | | | |
Business Transformation Initiatives(4) | | 9.7 | | | 11.1 | | | | | 28.1 | | | 31.0 | | | |
Financing-Related Costs(5) | | 0.1 | | | — | | | | | 0.4 | | | 0.2 | | | |
Gain on Remeasurement of Warrant Liability(6) | | (15.5) | | | 14.4 | | | | | (10.2) | | | (2.2) | | | |
| Adjusted EBITDA | | $ | 53.1 | | | $ | 49.4 | | | 7.5 | % | | $ | 200.2 | | | $ | 187.2 | | | 6.9 | % |
| | | | | | | | | | | | |
| Net income (loss) as a % of Net Sales | | 0.6 | % | | (9.4) | % | | 1000 | bps | | 2.2 | % | | (2.8) | % | | 500 | bps |
| Adjusted EBITDA as a % of Net Sales | | 15.6 | % | | 14.0 | % | | 160 | bps | | 14.2 | % | | 13.0 | % | | 120 | bps |
1.Interest Income from IO Loans refers to interest income that we earn from IO notes receivable that have resulted from our initiatives to transition from RSP distribution to IO distribution. (“Business Transformation Initiatives”). There is a notes payable recorded that mirrors most IO notes receivable, and the interest expense associated with the notes payable is part of the interest expense, net adjustment.
2.Certain Non-Cash Adjustments are comprised primarily of the following:
Incentive programs – The Company incurred $17.6 million and $15.5 million of share-based compensation, which was awarded to associates and directors, and compensation expense associated with the 2020 Omnibus Equity Incentive Plan (the "OEIP") for the fiscal year ended December 29, 2024 and the fiscal year ended December 31, 2023, respectively.
Asset Impairments and Write-Offs — For the fiscal year ended December 31, 2023, the Company recorded an adjustment for a non-cash loss on sale of $13.7 million related to fixed assets for the sale of the Bluffton, Indiana plant, along with $4.7 million related to the termination of the contract that was settled with the sale, and impairments of $12.6 million related to the closure of the Company's manufacturing facilities in Birmingham, Alabama and Gramercy, Louisiana.
Purchase Commitments and Other Adjustments – We have purchase commitments for specific quantities at fixed prices for certain of our products’ key ingredients. To facilitate comparisons of our underlying operating results, this adjustment was made to remove the volatility of purchase commitment related unrealized gains and losses. The adjustment related to purchase commitment and other adjustments, including cloud computing, were $4.3 million and $4.2 million for the fiscal year ended December 29, 2024 and the fiscal year ended December 31, 2023, respectively.
(3)Adjustment for Acquisition, Divestiture and Integration Costs – This is comprised of consulting, transaction services, and legal fees incurred for acquisitions and certain potential acquisitions, in addition to expenses associated with integrating recent acquisitions. Such expenses were $20.9 million for fiscal year ended December 29, 2024. Such expenses were $9.7 million for the fiscal year ended December 31, 2023, as well as $1.1 million of income for the change of liability associated with the TRA for the fiscal year ended December 31, 2023. Also included for the fiscal year ended December 29, 2024 was a gain of $44.0 million related to the Good Health and R.W. Garcia Sale.
(4)Business Transformation Initiatives Adjustment – This adjustment is related to consultancy, professional, and legal fees incurred for specific initiatives and structural changes to the business that do not reflect the cost of normal business operations. In addition, gains and losses realized from the sale of distribution rights to IOs and the subsequent disposal of trucks, severance costs associated with the elimination of RSP positions, and enterprise planning system transition costs, fall into this category. The Company incurred such costs of $28.1 million for the fiscal year ended December 29, 2024 and $31.0 million for the fiscal year ended December 31, 2023.
(5)Financing-Related Costs – These costs include adjustments for various items related to raising debt and equity capital or debt extinguishment costs.
(6)Gains and losses related to the changes in the remeasurement of warrant liabilities are not expected to be settled in cash, and when exercised would result in a cash inflow to the Company with the warrants converting to Class A Common Stock with the liability being extinguished and the fair value of the warrants at the time of exercise being recorded as an increase to equity.
Normalized Adjusted EBITDA
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | FY 2023 | | | | FY 2024 | | |
| (dollars in millions) | | Q1 | | Q2 | | Q3 | | Q4 | | FY 2023 | | Q1 | | Q2 | | Q3 | | Q4 | | FY 2024 |
| Adjusted EBITDA | | $ | 40.4 | | | $ | 45.2 | | | $ | 52.1 | | | $ | 49.4 | | | $ | 187.2 | | (1) | | $ | 43.4 | | | $ | 49.7 | | | $ | 54.0 | | | $ | 53.1 | | | $ | 200.2 | |
Pre-Acquisition Adjusted EBITDA(1) | | — | | | — | | | — | | | — | | | — | | | | — | | | — | | | — | | | — | | | — | |
| Normalized Adjusted EBITDA | | $ | 40.4 | | | $ | 45.2 | | | $ | 52.1 | | | $ | 49.4 | | | $ | 187.2 | | (1) | | $ | 43.4 | | | $ | 49.7 | | | $ | 54.0 | | | $ | 53.1 | | | $ | 200.2 | |
(1) Does not total due to rounding.
Net Debt and Leverage Ratio
| | | | | | | | |
| (dollars in millions) | | As of December 29, 2024 |
| Term Loan | | $ | 630.3 | |
| Real Estate Loan | | 59.6 | |
| ABL Facility | | 0.2 | |
Equipment loans and Finance Leases(1) | | 93.2 | |
| Deferred Purchase Price | | 0.1 | |
Gross Debt(2) | | 783.4 |
| Cash and Cash Equivalents | | 56.1 | |
| Total Net Debt | | $ | 727.3 | |
| | |
| Last 52-Weeks Normalized Adjusted EBITDA | | $ | 200.2 | |
| | |
Net Leverage Ratio(3) | | 3.6x |
(1) Equipment loans and finance leases include leases accounted for as finance leases under US GAAP and loans for equipment.
(2) Excludes amounts related to guarantees on IO loans which are collateralized by routes. The Company has the ability to recover substantially all of the outstanding loan value in the event of a default scenario, which historically has been uncommon.
(3) Based on Normalized Adjusted EBITDA of $200.2 million.
Utz Brands, Inc. Fourth Quarter and Full-Year 2024 Earnings Presentation February 20, 2025
Disclaimer 2 Forward-Looking Statements Certain statements made herein are not historical facts but are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. The forward-looking statements generally are accompanied by or include, without limitation, statements such as “will”, “expect”, “intends”, “goal”, "on track" or other similar words, phrases or expressions. These forward-looking statements include future plans for Utz Brands, Inc. (“the Company”), including outlook for fiscal 2025, plans related to the transformation of the Company’s supply chain, the Company’s product mix, the ability to reduce debt and the anticipated interest expense savings from the repricing of the $630 million Term Loan , the Company’s cost savings plans and the Company’s logistics optimization efforts; the estimated or anticipated future results and benefits of the Company’s plans and operations; the Company’s future capital structure; future opportunities for the Company; the effects of inflation or supply chain disruptions on the Company or its business; statements regarding the Company’s project balance sheet and liabilities, including net leverage; and other statements that are not historical facts. These statements are based on the current expectations of the Company’s management and are not predictions of actual performance. These statements are subject to a number of risks and uncertainties and the Company’s business and actual results may differ materially. Some factors that could cause actual results to differ include, without limitation: the risk that the Company’s gross profit margins may be adversely impacted by a variety of factors, including variations in pricing of raw materials, retail customer requirements and mix, sales velocities, and required promotional support; changes in consumers’ loyalty to the Company’s brands due to factors beyond the Company’s control, including changes in consumer spending due to factors such as increasing household debt; changes in demand for the Company’s products affected by changes in consumer preferences and tastes or if the Company is unable to innovate or market its products effectively, particularly in the Company’s "expansion geographies"; costs associated with building brand loyalty and interest in the Company’s products, which may be affected by actions by the Company’s competitors that result in the Company’s products not being suitably differentiated from the products of their competitors; consolidation of key suppliers of the Company; any inability of the Company to adopt efficiencies into its manufacturing processes, including automation and labor optimization, its network, including through plant consolidation and lowest landed cost for shipping its products or its logistics operations; fluctuations in results of operations of the Company from quarter to quarter because of changes in promotional activities; the possibility that the Company may be adversely affected by other economic, business or competitive factors; the risk that business combinations and other acquisitions or dispositions recently completed by the Company disrupt plans and operations; the ability of the Company to recognize the anticipated benefits of such business combinations, acquisitions, or dispositions, which may be affected by, among other things, competition and the ability of the Company to grow and manage growth profitably and retain its key employees; the outcome of any legal proceedings that may be instituted against the Company following the consummation of such business combinations, acquisitions, or dispositions; changes in applicable law or regulations (including tariffs); costs related to the business combinations, acquisitions, or dispositions; the ability of the Company to maintain the listing of the Company’s Class A Common Stock on the New York Stock Exchange; the ability of the Company to develop and maintain effective internal controls; and other risks and uncertainties set forth in the section entitled “Risk Factors” and “Forward-Looking Statements” in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “Commission”) for the fiscal year ended December 31, 2023, and other reports filed by the Company with the Commission. In addition, forward-looking statements provide the Company’s expectations, plans or forecasts of future events and views as of the date of this communication. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this communication. The Company cautions investors not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, except as otherwise required by law. Industry Information Unless otherwise indicated, information contained in this presentation or made orally during this presentation concerning the Company’s industry, competitive position and the markets in which it operates is based on information from independent research organizations, other third-party sources and management estimates. Management estimates are derived from publicly available information released by independent industry analysts and other third-party sources, as well as data from the Company’s internal research, and are based on assumptions made by the Company upon reviewing such data, and the Company’s experience in, and knowledge of, such industry and markets, which the Company believes to be reasonable. In addition, projections, assumptions and estimates of the future performance of the industry in which the Company operates, and the Company’s future performance are necessarily subject to uncertainty and risk due to a variety of factors, which could cause results to differ materially from those expressed in the estimates made by the independent parties and by the Company. Trademarks This presentation may contain trademarks, service marks, trade names and copyrights of other companies, which are the property of their respective owners. Solely for convenience, some of the trademarks, service marks, trade names and copyrights referred to in this presentation may be listed without the TM, SM, © or ® symbols, but we will assert, to the fullest extend under applicable law, the rights of the applicable owners, if any, to these trademarks, service marks, trade names and copyrights.
Disclaimer (cont.) 3 Projected Financial Information This presentation contains financial forecasts, which were prepared in good faith by the Company on a basis believed to be reasonable. Such financial forecasts have not been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). The Company’s independent auditors have not audited, reviewed, compiled or performed any procedures with respect to the projections for the purposes of their inclusion in this presentation, and accordingly, they have not expressed an opinion nor provided any other form of assurance with respect thereto for the purpose of this presentation. These projections are for illustrative purposes only and should not be relied upon as being necessarily indicative of future results. Certain of the above-mentioned projected information has been provided for purposes of providing comparisons with historical data. The assumptions and estimates underlying the prospective financial information are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the prospective financial information. Projections are inherently uncertain due to a number of factors outside of the Company’s control, as discussed under Forward-Looking Statements above. Accordingly, there can be no assurance that the prospective results are indicative of the future performance of the Company or that actual results will not differ materially from those presented in the prospective financial information. Inclusion of the prospective financial information in this presentation should not be regarded as a representation by any person that the results contained in the prospective financial information will be achieved. Non-GAAP Financial Measures This presentation includes certain financial measures not presented in accordance with GAAP including, but not limited to, Organic Net Sales, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted SD&A, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per Share, and Adjusted Net Leverage Ratio, and certain ratios and other metrics derived therefrom. These non-GAAP financial measures do not represent financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing financial results. Therefore, these measures should not be considered in isolation or as an alternative to net income, cash flows from operations, earnings per share or other measures of profitability, liquidity or performance under GAAP. You should be aware that the presentation of these measures may not be comparable to similarly-titled measures used by other companies. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are set forth in the appendix to this presentation. We believe (i) these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the financial condition and results of operations of the Company to date; and (ii) the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in comparing financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non- GAAP financial measures. The non-GAAP financial measures are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance. In addition, quantitative reconciliations are not available for the forward-looking GAAP financial measures used in this presentation without unreasonable efforts due to the high variability, complexity, and low visibility with respect to certain items which are excluded from Net Organic Sales, Adjusted EBITDA, Adjusted Earnings Per Share, and Net Leverage Ratio, respectively. We expect the variability of these items to have a potentially unpredictable, and potentially significant, impact on our future financial results.
Business Overview Howard Friedman Chief Executive Officer 4
Strong Execution Against Our Goals in 2024 5 o Delivered Organic Net Sales growth of 1.3% led by Branded Salty Snacks growth of 3.7% o Gained volume share in both Core and Expansion geographies(1) o Increased marketing spend behind our brands by over 70% o Achieved productivity cost savings of ~$60M or ~6% of COGS(2) o Expanded Adj. Gross Margin by 260bps and Adj. EBITDA Margin by 120bps o Accelerated network optimization plans and reduced Net Leverage by ~1x o Drove Adjusted EPS growth of 35% (1).Retail volume are Circana Total US MULO+ w/convenience, custom Utz Brands hierarchy, 52-weeks ended 12/29/2024. (2) Represents savings realized during FY’24 as a % of prior year Adjusted Cost of Goods Sold.
o Gained distribution in Expansion geographies(1) o Held volume share in our Core geographies(1) o Drove household penetration to all-time highs(2) o Optimized low-margin lines of business Focus Our Portfolio o Accelerated network optimization plans o Delivered ~$60M in productivity cost savings o Invested significant capital in automation and new manufacturing lines o Improved service levels Transform our Supply Chain o Implemented Integrated Business Planning o Built out analytics program o Increased marketing investments by 70% o Reduced voluntary turnover by ~20% over past two years Build Leading Capabilities o Reduced Net Leverage by ~1x o Prepaid long-term debt by $160M o Improved cash conversion cycle o Maintained a disciplined approach to M&A Improve Balance Sheet Progressing Against Our Four Fundamental Strategies 6 (1).Distribution and share performance are Circana Total US MULO+ w/convenience, custom Utz Brands hierarchy, 52-weeks ended 12/29/2024; % YoY growth compared to the 13-weeks and 52-weeks ended 12/31/23 period in the prior year on a pro forma basis. (2) Circana CSIA Total U.S. All Outlets 52-weeks data through 12/29/2024 compared to the 52-weeks ended 12/31/23 in the prior year period.
Consistent Bottom-line Growth and Margin Expansion in 4Q’24 7 Adjusted EBITDA (in millions) $49 $53 4Q’23 4Q’24 Note: See appendix for reconciliation of Utz Non-GAAP financial measures to most directly comparable GAAP measures. Adjusted EPS $0.16 $0.22 4Q’23 4Q’24 +8% +38% 4Q’23 1Q’24 2Q’24 3Q’24 4Q’24 Adjusted EBITDA Margin YoY Change (as a % of net sales) +160bps +80bps +160bps +100bps +150bps
Introducing New Net Sales Breakdown Foundation Brands Being Split Into Branded Salty Snacks and Non-Branded & Non-Salty Snacks 8 79% 21% Old 3Q’24 Total Volume Breakdown(3) Power Brands(1) Foundation Brands(2) (1) Total Company Power Brands at the end of Q3 2024 included Utz®, On The Border®, Zapp’s®, Boulder Canyon®, Golden Flake® Pork, TGI Fridays®, Hawaiian®, Tim’s Cascade®, TORTYAHS®, Dirty®, and Jax®. (2) Total Company Foundation Brands at the end of Q3 2024 include Golden Flake® ex-Pork, Snyder of Berlin®, Bachman®, H.K. Anderson®, Vitner’s®, Kitchen Cooked®, Wachusett®, and other small brands, and also includes Partner Brands, Private Label, Co-Manufacturing, and Utz Branded non-salty snacks such as On The Border® Dips and Salsa. (3) Source: Total company volume. Internal company data. (4) Branded Salty Snacks include Power Four Brands and Other Brands. Power Four Brands include the Utz® brand, On The Border®, Zapp’s®, and Boulder Canyon®. Other Brands include Golden Flake®, TORTIYAHS!®, Hawaiian®, Bachman®, Tim’s Cascade®, Dirty Potato Chips®, TGI Fridays®, Golden Flake® ex-Pork, Snyder of Berlin®, Bachman®, H.K. Anderson®, Vitner’s®, Kitchen Cooked®, Wachusett®, and other small brands. (5) Non-Branded & Non-Salty Snacks includes partner brands, private label, co-manufacturing for which we are the manufacturer, Utz branded non-salty snacks such as On The Border® Dips and Salsa, and sales not attributable to specific brand. Previously total company volume split between Power and Foundation Brands... 89% 11% Branded Salty Snacks(4) Non-Branded & Non-Salty Snacks(5) ..Now showing net sales split between Branded Salty Snacks and Non-Branded & Non-Salty Snacks New 4Q’24 Total Company Net Sales Breakdown • Foundation Branded Salty Snacks • Dips & Salsa • Partner Brands • Private Label • Co-Manufacturing • Power Four Brands • Other Branded Salty Snacks • Dips & Salsas • Partner Brands • Private Label • Co-manufacturing
9Note: See appendix for reconciliation of Utz Non-GAAP financial measures to most directly comparable GAAP measures (1) Branded Salty Snack sales exclude IO unreported sales. FY’24 Percentage Change vs. Prior Year Branded Salty Snacks Growth Offset by Low-Margin Non-Branded & Non-Salty Snacks Branded Salty Snacks(1) Non-Branded & Non-Salty Snacks Total Company 0.2% -0.2% 0.0% 3.6% -0.7% 2.9% -20.9% 2.7% -18.2% 4Q’24 Percentage Change vs. Prior Year Volume/Mix Price Total Components of Organic Net Sales Growth Branded Salty Snacks(1) Non-Branded & Non-Salty Snacks Total Company 1.5% -0.2% 1.3% 4.5% -0.8% 3.7% -15.2% 2.9% -12.3% Volume/Mix Price Total
Share Gains with Only Modest Net Price Declines Due to Disciplined Promotions 10 FY’24 MULO+ w/Convenience YoY Growth 0.2% 3.2% 4.3% -2.6% Retail Volume (lbs.) Total Salty Category Total Company Power Four Brands Other Branded 0.7% 1.6% 3.2% -4.2% Retail Sales $ 0.5% -1.5% -1.0% -1.6% Retail Price/lb. 4Q’24 MULO+ w/Convenience YoY Growth -0.3% 2.2% 3.9% -7.2% Retail Volume (lbs.) Total Salty Category Total Company Power Four Brands Other Branded -0.1% 0.9% 2.6% -6.2% Retail Sales $ 0.3% -1.3% -1.2% 1.1% Retail Price/lb. Source: Retail sales and volume are Circana Total US MULO+ w/convenience, custom Utz Brands hierarchy, 13-weeks and 52-weeks ended 12/29/2024; % YoY growth compared to the 13-weeks and 52-weeks ended 12/31/23 period in the prior year on a pro forma basis.
See Appendix for Utz Core and Expansion geography state groupings. Source: Retail sales and volume are Circana Total US MULO+ w/convenience, custom Utz Brands hierarchy, 13-weeks and 52-weeks ended 12/29/2024; % YoY growth compared to the 13-weeks and 52-weeks ended 12/31/23 period in the prior year on a pro forma basis. Gained Volume Share in our Core Geographies in 4Q’24 & FY’24 11 Core Geographies YoY Retail Growth -0.3% -2.6% -1.3% Total Salty Category Total Company Power Four Brands 0.5% -1.6% -0.2% -0.5% -0.4% 1.0% Total Salty Category Total Company Power Four Brands -0.2% 0.6% 1.8% 4Q’24 Full-Year 2024 Retail Volume (lbs.) Retail Sales $
See Appendix for Utz Core and Expansion geography state groupings. Source: Retail sales and volume are Circana Total US MULO+ w/convenience, custom Utz Brands hierarchy, 13-weeks and 52-weeks ended 12/29/2024; % YoY growth compared to the 13-weeks and 52-weeks ended 12/31/23 period in the prior year on a pro forma basis. Sixth Consecutive Quarter of Share Gains in our Expansion Geographies 12 Expansion Geographies YoY Retail Growth 0.1% 5.9% 8.5% Total Salty Category Total Company Power Four Brands 0.9% 6.4% 8.4% -0.2% 5.5% 7.3% Total Salty Category Total Company Power Four Brands 0.4% 6.3% 7.3% Retail Volume (lbs.) Retail Sales $ 4Q’24 Full-Year 2024
% of Utz Retail Sales 38% 19% 14% 10% 3% o Growth impacted by competitive promotional environment o Boulder Canyon® share gains fueled by distribution growth o On The Border® softness primarily driven by promotional timing in grocery channel o Planned TORTIYAHS!® decline due to space conversion to On The Border® o Utz® pretzels share gains led by grocery & club channels o Zapp’s® pretzels growth driven by food, mass & club o Utz® cheese snacks share gains led by mass and club channels with strong seasonal performance o Golden Flake® growth of 12% and gaining share Source: Retail sales are Circana Total US MULO+ w/convenience, custom Utz Brands hierarchy, 13-weeks ended 12/29/2024; % YoY growth compared to the 13-weeks ended 12/31/23 period in the prior year on a pro forma basis. Utz retail sales breakdown is Circana Total US MULO+ w/convenience, custom Utz Brands hierarchy, 13-weeks ended 12/29/2024. Total Sub-Category4Q’24 Sub-Category Retail Sales YoY Growth Potato Chips Tortilla Chips Pretzels Cheese Snacks Pork Rinds -0.8% 0.6% 1.7% -2.5% 2.2% 2.2% -4.0% 6.4% 1.5% 5.2% 13 Growth and Share Gains in Potato Chips, Cheese Snacks, and Pork
Significant Outperformance by Boulder Canyon® in Natural and Traditional Channels Boulder Canyon® surpasses $100M in retail sales in 2024 14 Source: SPINS, Total US – Natural Enhanced Channel (TPL) and Circana Total US MULO+ w/convenience, custom Utz Brands hierarchy. Total Salty Category Total Company 2.0% 21.6% 33.5% Total Salty Category Total Company 2.8% 21.2% 32.7% SPINS Retail Sales (natural channel) YoY Growth 4Q’24 Full-Year 2024 Total Salty Category Total Company -0.1% 0.9% 110.0% Total Salty Category Total Company 0.7% 1.6% 66.7% Circana MULO+ w/ Convenience Retail Sales YoY Growth 4Q’24 Full-Year 2024 Retail sales are SPINS and Circana Total US MULO+ w/convenience, custom Utz Brands hierarchy, 13-weeks ended 12/29/2024; % YoY growth compared to the 13-weeks ended 12/31/23 period in the prior year on a pro forma basis.
Positive Trends Across Household Penetration, Buyers, and Buyer Repeat Rates Ended 2024 with Household Penetration at an All-Time High 15 Utz Household Penetration Utz Buyers (millions) Total Utz Buyer Repeat Rate Source: Circana CSIA Total U.S. All Outlets 52-weeks data through 12/29/2024 compared to the 52-weeks ended 12/31/23 in the prior year period. 35 40 45 50 2023 2024 47.3% 48.5% 60 62 64 66 68 70 2023 2024 69.4% 69.6% 61.2 63.1 45 50 55 60 65 2023 2024 Total Company Salty Snack Category +120bps +10bps +1.9M +0.9M +20bps +10bps +30bps -10bps +0.8M +0.7M +20bps Flat
Financial Review Ajay Kataria Chief Financial Officer 16
Strong Margin Expansion and Bottom-line Growth in Fiscal Year 2024 17 $1,394 $1,411 FY’23 FY’24 Organic Net Sales (in millions) Adjusted EBITDA (in millions) Adjusted EBITDA Margin $187 $200 FY’23 FY’24 FY’23 FY’24 13.0% 14.2% $0.57 $0.77 FY’23 FY’24 Adjusted EPS Note: See appendix for reconciliation of Utz Non-GAAP financial measures to most directly comparable GAAP measures. +1% +7% +120bps +35%
4Q’24 Financial Results Summary o Organic Net Sales flat o +0.2% volume/mix and (0.2%) price o Branded Salty Snacks +2.9% o Adjusted Gross Margin expansion of +230 bps o Benefits from productivity programs o Adjusted SD&A Expense increase of +0.4% o Increased marketing, selling, and distribution costs to support growth o Adjusted EBITDA increased 7.5% to $53.1M o Margin expansion of 160bps o Adjusted EPS growth of +37.5% to $0.22 o Operating earnings growth o Lower interest expense due to long-term debt prepayment o Lower depreciation and amortization expense due to plant dispositions 4Q’24 4Q’23 YoY Change In $ millions, except per share amounts 13-weeks ended December 29, 2024 13-weeks Ended December 31, 2023 Net Sales 341.0 352.1 (3.2%) Organic Net Sales 341.0 341.0 - Adj. Gross Profit 134.4 130.6 +2.9% Adj. Gross Margin 39.4% 37.1% +230 bps Adj. SD&A Expense 81.6 81.3 +0.4% Adj. SD&A Expense % of net sales 23.9% 23.1% +80 bps Adj. EBITDA 53.1 49.4 +7.5% Adj. EBITDA Margin 15.6% 14.0% +160 bps Adj. Net Income 32.4 22.9 +41.5% Adj. EPS $0.22 $0.16 +37.5% 18 Note: See appendix for reconciliation of Non-GAAP financial measures to most directly comparable GAAP measures.
4Q’24 Net Sales Bridge 19 o Modest pricing impact of (0.2%) from following a disciplined pricing strategy o Volume/mix growth of +0.2% o Branded Salty Snacks growth of +3.6% led by Power Four Brands growth o Non-Branded & Non-Salty Snacks decline of (20.9%) primarily due to Partner Brand and Dips & Salsas declines o Divestiture impact of (3.2%) from the disposition of R.W. Garcia® and Good Health® brands 4Q’24 Net Sales YoY Growth Decomposition Volume/Mix Price 4Q’24 Organic Net Sales Growth -3.2% Brand Divestitures 4Q’24 Total Net Sales Growth 0.2% -0.2% 0.0% -3.2% Note: See appendix for reconciliation of Non-GAAP financial measures to most directly comparable GAAP measures.
4Q’24 Adjusted EBITDA Margin Change Decomposition 4Q’24 Adjusted EBITDA Margin Bridge 20 o Productivity savings across manufacturing and procurement more than offset higher supply chain costs o Higher selling and admin expense primarily to support distribution growth in Expansion geographies o Increased marketing spend to support continued branded volume growth (1) Represents savings realized during 4Q’24 as a % of prior year net sales. (2) Delivery included. 4Q’23 4.1% Productivity Savings -1.1% Supply Chain Costs -0.7% Selling & Admin Expense -0.5% Marketing Expense -0.2% Price 4Q’24 14.0% 15.6% (1) (2) Note: See appendix for reconciliation of Non-GAAP financial measures to most directly comparable GAAP measures.
Cash Flow and Balance Sheet Highlights As of January 1, 2023 Cash Flow Highlights 52-Weeks Ended December 29, 2024 Net Cash Provided by Operations $106.2M Capital Expenditures $98.6M Dividends and Distributions Paid(1) $40.1M Balance Sheet Highlights As of December 29, 2024 Cash and Cash Equivalents $56.1M Gross Debt(2) $783.4M Net Debt $727.3M Net Leverage Ratio(3) 3.6x 21 Note: See appendix for reconciliation of Non-GAAP financial measures to most directly comparable GAAP measures. (1) Includes $18.3M of distributions to non-controlling Interest and special excess cash dividends of $2.6M. (2) Includes Term Loan, ABL Facility and capital leases. Capital Leases include equipment term loans and excludes the impact of step-up accounting. (3) Net Leverage Ratio is a Non-GAAP financial measure and is Net Debt divided by last 52-weeks Normalized Adjusted EBITDA. o Strong working capital performance in 2H’24 o Capital investments to support manufacturing plant automation and Kings Mountain build-out o Ample liquidity of ~$215M at YE’24 o Reduced Net Leverage by ~1x in 2024
Note: See appendix for reconciliation of Non-GAAP financial measures to most directly comparable GAAP measures. (1) Normalized GAAP basis tax expense, which excludes one-time items. FY’25 Growth versus FY’24 Actual Results Key Assumptions Organic Net Sales Low-single digits Continued Branded Salty Snacks growth, particularly the Power Four Brands, and less decline in Non-Branded & Non-Salty Snacks Adjusted EBITDA +6% to +10% Strong gross margin expansion fueled by productivity savings and improved product mix Adjusted EPS +10% to 15% Higher operating earnings growth and lower interest expense Additional Outlook Assumptions: Effective Normalized Tax Rate(1) 17% to 19% Consistent with 2024 Net Interest Expense ~$43 million Long-term debt blended rate of ~5% Capital Expenditures $90 to $100 million Majority focused on building increased manufacturing network capacity and delivering accelerated productivity savings Net Leverage Ratio Approaching 3x at YE’25 Adj. EBITDA growth and modest scheduled debt repayment Full Year 2025 Outlook Continued organic growth, strong margin expansion, and double-digit earnings growth 22
Looking Ahead 23
Targeting Low-Single Digit Organic Net Sales Growth in FY’25 24 Increasing marketing investments by 40% primarily behind our Power Four Brands Leverage our go-to-market model with operational excellence Introducing new innovation focused on craveable flavors and better-for-you Accelerating growth in Expansion geographies supported by new distribution
Integrated Supply Chain Strategy Cost Savings(1) from 2024 – 2026 Expected to Exceed Original Target of ~$135M and Deliver $150M+ 25 Supplier of Choice Integrated Business Management Network Optimization Sourcing Excellence Automation Continuous Improvement (1) Cost savings is measured assuming production levels and costs consistent with forecasts.
Our Geographic Expansion Combined with Increased Investments Will Support Continued Momentum of our Power Four Brands 26 2019 – 2024 Retail Sales CAGR 9% 13% 14% 28% ACV% Growth (National Distribution) 18pts 22pts 23pts 10pts Source: Circana US MULO+ w/Convenience 2019 to 2024; Pro forma for acquisitions.
Appendix 27
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 28See footnotes in Utz’s 4Q’24 earnings press release dated February 20, 2025
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 29See footnotes in Utz’s 4Q’24 earnings press release dated February 20, 2025
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 30See footnotes in Utz’s 4Q’24 earnings press release dated February 20, 2025
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 31See footnotes in Utz’s 4Q’24 earnings press release dated February 20, 2025
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 32See footnotes in Utz’s 4Q’24 earnings press release dated February 20, 2025
Utz Core and Expansion Geography State Groupings 33 FL NM DE MD TX OK KS NE SD NDMT WY CO UT ID AZ NV WA CA OR KY ME NY PA VT NH MA RI CT WV INIL NC TN SC ALMS AR LA MO IA MN WI NJ GA DC VA OH MI HI AK Core Geographies Expansion Geographies
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- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
| Name: |
dei_EntityIncorporationStateCountryCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarStateCountryItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityRegistrantName |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityTaxIdentificationNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:employerIdItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionLocal phone number for entity.
| Name: |
dei_LocalPhoneNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 13e
-Subsection 4c
| Name: |
dei_PreCommencementIssuerTenderOffer |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14d
-Subsection 2b
| Name: |
dei_PreCommencementTenderOffer |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14a
-Subsection 12
| Name: |
dei_SolicitingMaterial |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Securities Act
-Number 230
-Section 425
| Name: |
dei_WrittenCommunications |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
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