B&G Foods Announces Third 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 thirty-nine weeks ended October 1, 2005. Financial Results for the Thirteen Weeks Ended October 1, 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 October 1, 2005 increased 0.4% to $92.3 million from $91.9 million for the thirteen weeks ended October 2, 2004. Gross profit for the thirteen weeks ended October 1, 2005 increased 2.0% to $27.5 million from $27.0 million in the comparable period last year. 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, which excludes 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 October 1, 2005 increased 3.1% to $27.8 million from $27.0 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 3.4% to $15.5 million for the thirteen-week period ended October 1, 2005, from $16.0 million in the comparable period last year. For the thirteen weeks ended October 1, 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 2.8% to $17.3 million from $17.8 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 $0.3 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 October 1, 2005, which excludes the restructuring charge, was $17.6 million. Net income available to common stockholders was $3.1 million for the thirteen-week period ended October 1, 2005 compared to $0.8 million for the thirteen-week period ended October 2, 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 $4.0 million in the third quarter of fiscal 2004, net income for such period was $4.8 million. For the thirteen-week period ended October 1, 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 were $0.17 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 were $0.04 per share of the Company's Class B common stock. David L. Wenner, Chief Executive Officer of B&G Foods, stated, "Price increases offset most of the cost pressure we have seen in the past 12 months, permitting us to deliver relatively stable results for the third quarter of 2005 as compared to the third quarter of 2004. Our shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down of the New Iberia, Louisiana manufacturing facility is already providing cost savings, offset somewhat by even higher fuel and energy costs. We continue to look for additional cost savings opportunities to enhance our financial performance." Financial Results for the Thirty-Nine Weeks Ended October 1, 2005 Net sales for the thirty-nine weeks ended October 1, 2005 increased 0.1% to $276.5 million from $276.3 million in the comparable period of fiscal 2004. Gross profit for the thirty-nine weeks ended October 1, 2005 decreased 8.7% to $78.0 million from $85.5 million in the comparable period last year. Pro forma gross profit, which excludes the restructuring charge, for the thirty-nine weeks ended October 1, 2005 decreased 4.6% to $81.6 million from $85.5 million in the comparable period last year. Operating income decreased 15.9% to $41.7 million during the first thirty-nine weeks of fiscal 2005, compared to $49.6 million in the comparable period in fiscal 2004. During the thirty-nine week period ended October 1, 2005, EBITDA decreased 14.2% to $46.9 million from $54.6 million. During such period the Company recorded in cost of goods sold a restructuring charge of approximately $3.5 million related to the closing of its New Iberia, Louisiana, manufacturing facility. Adjusted EBITDA for the thirty-nine week period, which excludes the restructuring charge related to the closing of the Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. facility, was $50.4 million. Net income
available to common stockholders was $6.4 million for the thirty-nine
week period ended October 1, 2005 compared to $4.2 million for the
thirty-nine week period ended October 2, 2004. Excluding the impact of
preferred stock dividends and related charges of $11.7 million in the
thirty-nine weeks ended October 2, 2004, net income for such period were
$15.9 million. For the thirty-nine week period ended October 1, 2005,
basic and diluted earnings per share were $0.41 per share of the
Company's Class A common stock and basic and diluted loss per share
was $0.23 per share of the Company's Class B common stock.Conference Call B&G Foods will hold a webcast and conference call at 4:30 pm ET today, October 31, 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 the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of B&G Foods' website at http://www.bgfoods.com/ under "Company Overview." 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 8347725. The replay will be available from October 31, 2005, through November 7, 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 thirty-nine weeks ended October 1, 2005 and October 2, 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 October 1, January 1,
2005 2005
--------- ----------
Current assets:
Cash and cash equivalents $ 22,858 $ 28,525
Trade accounts receivable, net 28,384 28,227
Inventories 92,123 79,109
Prepaid expenses 2,986 2,806
Deferred income taxes 1,782 1,782
Income tax receivable 7,748 7,006
--------- ---------
Total current assets 155,881 147,455
Property, plant and equipment, net 41,069 43,774
Goodwill 188,629 188,629
Trademarks 193,481 193,481
Net deferred financing costs and other assets 20,519 22,613
--------- ---------
Total assets $599,579 $595,952
========= =========
Liabilities and Stockholders' Equity
Current liabilities:
Trade accounts payable $ 26,563 $ 25,861
Accrued expenses 20,261 16,082
Dividends payable 4,240 3,728
--------- ---------
Total current liabilities 51,064 45,671
Long-term debt 405,800 405,800
Other liabilities 263 317
Deferred income taxes 56,550 51,903
--------- ---------
Total liabilities 513,677 503,691
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 (18) (25)
Accumulated deficit (71,156) (64,790)
--------- ---------
Total stockholders' equity 85,902 92,261
--------- ---------
Total liabilities and
stockholders' equity $599,579 $595,952
========= =========
B&G Foods, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
(Unaudited)
Thirteen Weeks Thirty-nine Weeks
Ended Ended
October 1, October 2, October 1, October 2,
2005 2004 2005 2004
---------- ---------- ---------- -----------
Net sales $92,316 $91,941 $276,543 $276,353
Cost of goods sold 64,472 64,924 194,997 190,884
Cost of goods sold -
restructuring charge 300 -- 3,544 --
---------- ---------- ---------- -----------
Gross profit 27,544 27,017 78,002 85,469
Operating expenses:
Sales, marketing and
distribution expenses 10,364 9,646 31,224 31,866
General and administrative
expenses 1,697 1,227 5,024 3,582
Management fees-related party -- 125 -- 375
---------- ---------- ---------- -----------
Operating income 15,483 16,019 41,754 49,646
Interest expense, net 10,458 8,195 31,320 23,801
---------- ---------- ---------- -----------
Income before tax
expense 5,025 7,824 10,434 25,845
Provision for income taxes 1,965 3,020 4,080 9,976
---------- ---------- ---------- -----------
Net income 3,060 4,804 6,354 15,869
Less: preferred stock
dividends accumulated and
related charges -- 3,976 -- 11,666
---------- ---------- ---------- -----------
Net income available to
common stockholders $ 3,060 $ 828 $ 6,354 $ 4,203
========== ========== ========== ===========
Earnings per share
calculations:
Net income available to
common stockholders per
common share:
Basic and diluted
distributed earnings:
Class A common
stock $ 0.21 $ -- $ 0.64 $ --
Earnings (loss) per share:
Basic and diluted
Class A common
stock $ 0.17 $ -- $ 0.41 $ --
Basic Class B
common stock $ (0.04) $ 0.07 $ (0.23) $ 0.36
Diluted Class B
common stock $ (0.04) $ 0.05 $ (0.23) $ 0.27
Reconciliation of EBITDA and Adjusted EBITDA to Net Cash Provided by
(Used in) Operating Activities (Dollars in thousands).
Thirteen Weeks Thirty-nine Weeks
Ended Ended
---------------------------------------------
October 1, October 2, October 1, October 2,
2005 2004 2005 2004
---------- ---------- ---------- ----------
Net income $3,060 $ 4,804 $ 6,354 $15,869
Depreciation 1,769 1,734 5,129 4,971
Income tax expense 1,965 3,020 4,080 9,976
Interest expense, net 10,458 8,195 31,320 23,801
---------- ---------- ---------- ----------
EBITDA (1) 17,252 17,753 46,883 54,617
Adjustments to EBITDA (1)(2) 300 -- 3,544 --
---------- ---------- ---------- ----------
Adjusted EBITDA (1) 17,552 17,753 50,427 54,617
Income tax expense (1,965) (3,020) (4,080) (9,976)
Interest expense, net (10,458) (8,195) (31,320) (23,801)
Deferred income taxes 2,175 1,396 4,459 4,534
Amortization of deferred
financing and bond discount 698 641 2,094 1,925
Changes in assets
and liabilities (1,570) (10,569) (9,461) (19,361)
Restructuring charge,
cash portion (162) -- (593) --
---------- ---------- ---------- ----------
Net cash provided by
(used in) operating
activities $6,270 $(1,994) $11,526 $ 7,938
========== ========== ========= ==========
(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 (used in) 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
thirty-nine weeks ended October 1, 2005, we recorded a charge
of $3.5 million, of which $0.3 million was recorded during the
thirteen weeks ended October 1, 2005. The charge associated
with the plant closing included a cash charge for employee
compensation and other costs of $0.6 million and a non-cash
charge for the impairment of property, plant, equipment and
inventory of $2.9 million.
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