B&G Foods Announces Second Quarter 2005 Financial Results.PARSIPPANY, N.J. -- B&G Foods, Inc. (AMEX AMEX See: American Stock Exchange : BGF BGF Black Guerrilla Family (Afro-American prison gang symbol/tattoo) BGF Boursier du Gouvernement Français (French) BGF Black Guerilla Family (gang) BGF Best Guy Friend ), a manufacturer and distributor of high quality, shelf-stable foods, today announced financial results for the thirteen and twenty-six weeks ended July 2, 2005. Financial Results for the Thirteen Weeks Ended July 2, 2005 Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the thirteen weeks ended July 2, 2005 increased 0.4% to $94.1 million from $93.7 million for the thirteen weeks ended July 3, 2004. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma gross profit, excluding the restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. described below, for the thirteen weeks ended July 2, 2005 decreased 8.8% to $26.9 million from $29.5 million in the comparable period last year. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. decreased 36.0% to $11.0 million for the thirteen week period ended July 2, 2005, from $17.2 million in the comparable period last year. For the thirteen weeks ended July 2, 2005, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (see "About Non-GAAP Financial Measures" below) decreased 32.5% to $12.7 million from $18.8 million. During such period the Company recorded in cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold a restructuring charge of approximately $3.1 million related to the closing of its New Iberia, Louisiana The city of New Iberia (French: La Nouvelle-Ibérie) is the parish seat of Iberia Parish, in the US state of Louisiana, 125 miles (201 km) west of New Orleans. [1] [2] , manufacturing facility. Adjusted EBITDA for the thirteen weeks ended July 2, 2005, which excludes the restructuring charge, was $15.8 million. Net income available to common stockholders was $0.3 million for the thirteen week period ended July 2, 2005 compared to $2.0 million for the thirteen week period ended July 3, 2004. Excluding the impact of preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividends and related charges of $3.8 million in the second quarter of fiscal 2004, net income for such period was $5.8 million. For the thirteen-week period ended July 2, 2005, basic and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of was $0.07 per share of the Company's Class A common stock and basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. loss per share was $0.14 per share of the Company's Class B common stock. David L. Wenner, Chief Executive Officer of B&G Foods, stated, "We were disappointed that price increases for our products did not offset higher fuel and commodity costs to the degree that we had hoped during the second quarter. We believe the recent closing of our manufacturing facility in Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. will help offset some of our cost
increases, and we continue to look for additional cost-saving
opportunities to enhance our operational and financial performance going
forward."Financial Results for the Twenty-Six Weeks Ended July 2, 2005 Net sales for the twenty-six weeks ended July 2, 2005 decreased 0.1% to $184.2 million from $184.4 million in the comparable period of fiscal 2004. Pro forma gross profit, excluding the restructuring charge, for the twenty-six weeks ended July 2, 2005 decreased 8.1% to $53.7 million from $58.5 million in the comparable period last year. Operating income decreased 21.9% to $26.3 million during the first twenty-six weeks of fiscal 2005, compared to $33.6 million in the comparable period in fiscal 2004. During the twenty-six week period ended July 2, 2005, EBITDA decreased 19.6% to $29.6 million from $36.9 million. Adjusted EBITDA, which excludes the restructuring charge related to the closing of the Louisiana facility, was $32.9 million. Net income available to common stockholders was $3.3 million for the twenty-six week period ended July 2, 2005 compared to $3.4 million for the twenty-six week period ended July 3, 2004. Excluding the impact of preferred stock dividends and related charges of $7.7 million in the twenty-six weeks ended July 3, 2004, net income for such period was $11.1 million. For the twenty-six week period ended July 2, 2005, basic and diluted earnings per share was $0.23 per share of the Company's Class A common stock and basic and diluted loss per share was $0.19 per share of the Company's Class B common stock. Conference Call B&G Foods will hold a webcast and conference call at 5:00 pm ET today, July 27, 2005. The call will be webcast live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the from B&G Foods' website at http://www.bgfoods.com/ under the section titled "Webcast." Participants should follow the instructions provided on the website for the download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and installation of audio applications necessary to join the webcast. The call can also be accessed live over the phone by dialing (800) 565-5442 or for international callers by dialing (913) 312-1298. A replay of the call will be available one hour after the call by dialing (888) 203-1112 or (719) 457-0820. The password is 5067914. The replay will be available from July 27, 2005, through August 3, 2005. About Non-GAAP Financial Measures Certain disclosures in this press release include "non-GAAP (Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ) financial measures." A non-GAAP financial measure is defined as a numerical numerical expressed in numbers, i.e. Arabic numerals of 0 to 9 inclusive. numerical nomenclature a numerical code is used to indicate the words, or other alphabetical signals, intended. measure of our financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). in our consolidated balance sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. and related consolidated statements of operations and cash flows. We present EBITDA (net income before net interest expense, income taxes, depreciation and amortization) and adjusted EBITDA (EBITDA as adjusted for transaction related compensation expenses incurred in fiscal 2004 in connection with our initial public offering, the concurrent offerings and the related transactions and restructuring charges incurred in fiscal 2005) because we believe they are useful indicators of our historical debt capacity and ability to service debt. We also present this discussion of EBITDA and adjusted EBITDA because covenants in the indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading. The term indenture primarily describes secured contracts and has several applications in U.S. law. governing gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. our senior notes, our revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility and the indenture governing our senior subordinated notes contain ratios based on these measures. A reconciliation of EBITDA and adjusted EBITDA with the most directly comparable GAAP measure is included below for the thirteen and twenty-six weeks ended July 2, 2005 and July 3, 2004 along with the components of EBITDA and adjusted EBITDA. About B&G Foods, Inc. B&G Foods and its subsidiaries manufacture, sell and distribute a diversified diversified (di·verˑ·s portfolio of high-quality, shelf-stable foods across the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Canada and Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. . B&G Foods' products include Mexican-style sauces, pickles Pickles may refer to
vinegar, acetum - sour-tasting liquid produced usually by oxidation of the alcohol in wine or cider and used as a condiment or food preservative , maple syrup maple syrup: see under maple. , molasses molasses, sugar byproduct, the brownish liquid residue left after heat crystallization of sucrose (commercial sugar) in the process of refining. Molasses contains chiefly the uncrystallizable sugars as well as some remnant sucrose. , fruit spreads, pasta While the only basic difference between these names is the shape of the pasta, each pasta is typically matched with a particular sauce based on cooking time, consistency, ability to hold sauce, ease of eating, etc. sauces, beans See JavaBeans. , spices, salad dressings, marinades, taco kits, salsas Salsas is a Portuguese parish in the district of Bragança. The population in 2001 is 424, its density is 16.5/km² and the area is 25.76 km². and taco shells. B&G Foods competes in the retail grocery, food service, specialty store Noun 1. specialty store - a store that sells only one kind of merchandise shop, store - a mercantile establishment for the retail sale of goods or services; "he bought it at a shop on Cape Cod" , private label, club and mass merchandiser channels of distribution. Based in Parsippany, N.J., B&G Foods' products are marketed under many recognized brands, including Ac'cent, B&G, B&M, Brer Rabbit Brer Rabbit clever trickster. [Children’s Lit.: Uncle Remus] See : Mischievousness , Emeril's, Joan of Arc Joan of Arc, Fr. Jeanne D'Arc (zhän därk), 1412?–31, French saint and national heroine, called the Maid of Orléans; daughter of a farmer of Domrémy on the border of Champagne and Lorraine. , Las Palmas Las Palmas: see Palmas, Las, Spain. Las Palmas or Las Palmas de Gran Canaria Seaport city (pop., 2001: 354,863), northeastern Grand Canary Island, Spain. , Maple Grove Maple Grove might designate:
secobarbital, secobarbital sodium, Seconal , Regina, San Del, Ac'cent Sa-Son, Trappey's, Underwood, Up Country Organics, Vermont Maid and Wright's. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of B&G Foods to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties readers are urged to consider statements labeled with the terms "believes," "belief," "expects," "intends," "anticipates" or "plans" to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in B&G Foods' filings with the Securities and Exchange Commission.
B&G Foods, Inc. and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands, except per share data)
(Unaudited)
Assets July 2, 2005 January 1, 2005
--------------- ---------------
Current assets:
Cash and cash equivalents $22,397 $28,525
Trade accounts receivable, net 25,478 28,227
Inventories 88,519 79,109
Prepaid expenses 3,679 2,806
Deferred income taxes 1,782 1,782
Income tax receivable 7,311 7,006
--------------- ---------------
Total current assets 149,166 147,455
Property, plant and equipment, net 41,180 43,774
Goodwill 188,629 188,629
Trademarks 193,481 193,481
Other assets 21,217 22,613
--------------- ---------------
Total assets $593,673 $595,952
=============== ===============
Liabilities and Stockholders'
Equity
Current liabilities:
Trade accounts payable $25,341 $25,861
Accrued expenses 16,794 16,082
Dividends payable 4,240 3,728
--------------- ---------------
Total current liabilities 46,375 45,671
Long-term debt 405,800 405,800
Other liabilities 281 317
Deferred income taxes 54,187 51,903
--------------- ---------------
Total liabilities 506,643 503,691
Stockholders' equity:
Class A common stock, $0.01 par value
per share. Authorized 100,000,000
shares; issued and outstanding
20,000,000 shares 200 200
Class B common stock, $0.01 par value
per share. Authorized 25,000,000
shares; issued and outstanding
7,556,443 shares 76 76
Additional paid-in capital 156,800 156,800
Accumulated other comprehensive loss (70) (25)
Accumulated deficit (69,976) (64,790)
--------------- ---------------
Total stockholders' equity 87,030 92,261
--------------- ---------------
Total liabilities and
stockholders' equity $593,673 $595,952
=============== ===============
B&G Foods, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
(Unaudited)
Thirteen Weeks Ended Twenty-six Weeks Ended
July 2, July 3, July 2, July 3,
2005 2004 2005 2004
---------- -------- ----------- --------
Net sales $94,116 $93,735 $184,227 $184,412
Cost of goods sold 67,242 64,269 130,525 125,960
Other cost of goods sold
- restructuring charge 3,128 -- 3,244 --
---------- -------- ----------- --------
Gross profit 23,746 29,466 50,458 58,452
Operating expenses:
Sales, marketing and
distribution expenses 10,801 11,362 20,860 22,220
General and
administrative expenses 1,958 820 3,327 2,355
Management fees-related
party -- 125 -- 250
---------- -------- ----------- --------
Operating income 10,987 17,159 26,271 33,627
Interest expense, net 10,428 7,794 20,862 15,606
---------- -------- ----------- --------
Income before tax
expense 559 9,365 5,409 18,021
Provision for income
taxes 223 3,614 2,115 6,956
---------- -------- ----------- --------
Net income 336 5,751 3,294 11,065
Less: preferred stock
dividends accumulated
and related charges -- 3,782 -- 7,690
---------- -------- ----------- --------
Net income available to
common stockholders $336 $1,969 $3,294 $3,375
========== ======== =========== ========
Earnings per share
calculations:
Net income available
to common
stockholders per
common share:
Basic and diluted
distributed
earnings:
Class A common
stock $ 0.21 $ -- $ 0.42 $ --
Earnings (loss) per
share:
Basic and diluted
Class A common
stock $ 0.07 $ -- $ 0.23 $ --
Basic Class B
common stock $(0.14) $0.17 $(0.19) $0.29
Diluted Class B
common stock $(0.14) $0.13 $(0.19) $0.22
Reconciliation of EBITDA and Adjusted EBITDA to Net Cash Provided by
Operating Activities
Thirteen Weeks Ended Twenty-six Weeks Ended
---------------------- ----------------------
July 2, July 3, July 2, July 3,
2005 2004 2005 2004
--------- --------- --------- ---------
Net income $336 $5,751 $3,294 $11,065
Depreciation 1,693 1,632 3,360 3,237
Income tax expense 223 3,614 2,115 6,956
Interest expense, net 10,428 7,794 20,862 15,606
--------- --------- --------- ---------
EBITDA (1) 12,680 18,791 29,631 36,864
Adjustments to EBITDA
(1)(2) 3,128 -- 3,244 --
--------- --------- --------- ---------
Adjusted EBITDA (1) 15,808 18,791 32,875 36,864
Income tax expense (223) (3,614) (2,115) (6,956)
Interest expense, net (10,428) (7,794) (20,862) (15,606)
Deferred income taxes 485 1,663 2,284 3,138
Amortization of deferred
financing and bond
discount 698 642 1,396 1,284
Changes in assets and
liabilities (507) 3,067 (7,891) (8,792)
Restructuring charge,
cash portion (315) -- (431) --
--------- --------- --------- ---------
Net cash provided by
operating activities $5,518 $12,755 $5,256 $9,932
========= ========= ========= =========
(1) We define EBITDA as net income before net interest expense, income
taxes, depreciation and amortization. We define adjusted EBITDA as
EBITDA as adjusted for the transaction related compensation
expenses incurred in fiscal 2004 in connection with our initial
public offering, the concurrent offerings and related transactions
and restructuring charges incurred in fiscal 2005. We believe that
the most directly comparable GAAP financial measure to EBITDA and
adjusted EBITDA is net cash provided by operating activities. We
present EBITDA and adjusted EBITDA because we believe they are
useful indicators of our historical debt capacity and ability to
service debt. We also present this discussion of EBITDA and
adjusted EBITDA because covenants in our revolving credit facility
and the indentures governing the senior notes and the senior
subordinated notes contain ratios based on these measures. EBITDA
and adjusted EBITDA are not substitutes for operating income or
net income, as determined in accordance with generally accepted
accounting principles. EBITDA and adjusted EBITDA are not complete
net cash flow measures because EBITDA and adjusted EBITDA are
measures of liquidity that do not include reductions for cash
payments for an entity's obligation to service its debt, fund its
working capital, capital expenditures and acquisitions, if any,
and pay its income taxes and dividends, if any, and in the case of
adjusted EBITDA, cash used to pay transaction related bonuses and
repurchase of employee stock options and the cost to restructure
our operations. Rather, EBITDA and adjusted EBITDA are two
potential indicators of an entity's ability to fund these cash
requirements. EBITDA and adjusted EBITDA also are not complete
measures of an entity's profitability because they do not include
costs and expenses for depreciation and amortization, interest and
related expenses and income taxes and in the case of adjusted
EBITDA, the cost of transaction related bonuses and repurchase of
employee stock options and the cost to restructure our operations.
EBITDA and adjusted EBITDA, as we define them, may differ from
similarly named measures used by other entities.
(2) On July 1, 2005, we closed our New Iberia, Louisiana,
manufacturing facility as part of our ongoing efforts to improve
our production capacity utilization, productivity and operating
efficiencies, and lower our overall costs. In the twenty-six weeks
ended July 2, 2005, we recorded a charge of $3.2 million, of which
$3.1 million was recorded during the thirteen weeks ended July 2,
2005 and $0.1 million was recorded during the thirteen weeks ended
April 2, 2005. The charge associated with the plant closing
included a cash charge for employee compensation and other costs
of approximately $0.4 million and a non-cash write-down of
inventory, land, building and equipment of approximately $2.8
million.
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