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Utz Brands(UTZ) - 2026 Q1 - Quarterly Report
UTZUtz Brands(UTZ)2025-05-01 10:50

Financial Performance - Net sales for the thirteen weeks ended March 30, 2025, were 352.1million,representinganincreaseof352.1 million, representing an increase of 5.6 million or 1.6% compared to 346.5millionforthesameperiodin2024[90].−Grossprofitdecreasedto346.5 million for the same period in 2024[90]. - Gross profit decreased to 118.2 million for the thirteen weeks ended March 30, 2025, down from 119.6millionintheprioryear,resultinginagrossprofitmarginof33.6119.6 million in the prior year, resulting in a gross profit margin of 33.6% compared to 34.5%[92]. - Selling, distribution, and administrative expenses increased by 3.8 million or 3.5% to 113.2millionforthethirteenweeksendedMarch30,2025,primarilyduetohigherpersonnelanddeliverycosts[93].−Netincomeattributabletocontrollinginterestwas113.2 million for the thirteen weeks ended March 30, 2025, primarily due to higher personnel and delivery costs[93]. - Net income attributable to controlling interest was 7.5 million for the thirteen weeks ended March 30, 2025, compared to a net loss of 3.99millioninthesameperiodof2024[90].−AdjustedEBITDAforthethirteenweeksendedMarch30,2025,was3.99 million in the same period of 2024[90]. - Adjusted EBITDA for the thirteen weeks ended March 30, 2025, was 45.1 million, compared to 43.4millionforthesameperiodin2024,withanAdjustedEBITDAmarginof12.843.4 million for the same period in 2024, with an Adjusted EBITDA margin of 12.8%[101]. Debt and Financing - As of March 30, 2025, the company had 739.3 million in variable rate indebtedness, an increase from 690.1millionasofDecember29,2024[81].−TheweightedaverageinterestrateforthethirteenweeksendedMarch30,2025,was4.9690.1 million as of December 29, 2024[81]. - The weighted average interest rate for the thirteen weeks ended March 30, 2025, was 4.9%, down from 6.6% during the same period in 2024[81]. - The company recorded a loss on debt extinguishment of 0.5 million related to the refinancing of its Term Loan B during the thirteen weeks ended March 30, 2025[107]. - As of March 30, 2025, 50.0millionwasoutstandingundertheasset−basedlending(ABL)facility,with50.0 million was outstanding under the asset-based lending (ABL) facility, with 109.5 million available for borrowing[108]. - Net cash provided by financing activities was 67.6millionforthethirteenweeksendedMarch30,2025,primarilyfromnetborrowingsof67.6 million for the thirteen weeks ended March 30, 2025, primarily from net borrowings of 80.4 million, compared to net cash used of 154.0millioninthesameperiodof2024[115].OperationalHighlights−ThecompanyoperateseightprimarymanufacturingfacilitiesacrosstheUnitedStates,distributingproductsthroughapproximately2,400direct−storedeliveryroutes[74].−ForthethirteenweeksendedMarch30,2025,retailvolumesandretailsalesinExpansionGeographiesincreasedby8.9154.0 million in the same period of 2024[115]. Operational Highlights - The company operates eight primary manufacturing facilities across the United States, distributing products through approximately 2,400 direct-store delivery routes[74]. - For the thirteen weeks ended March 30, 2025, retail volumes and retail sales in Expansion Geographies increased by 8.9% and 4.9%, respectively, compared to the prior year period[76]. - Boulder Canyon brand experienced a growth of 158.8% in same store velocities for the thirteen weeks ended March 30, 2025, compared to the prior year[84]. - The Core Geographies retail volumes and retail sales were up 2.9% and down 3.7%, respectively, for the thirteen weeks ended March 30, 2025, compared to the prior year[76]. Asset Management - The company sold certain assets and brands for 167.5 million on February 5, 2024, including the Good Health and R.W. Garcia brands[82]. - The company incurred 7.4millionincostsrelatedtoacquisitions,divestitures,andinvestmentsforthethirteenweeksendedMarch30,2025,comparedtoagainof7.4 million in costs related to acquisitions, divestitures, and investments for the thirteen weeks ended March 30, 2025, compared to a gain of 44.0 million in the prior year[106]. - Cash used in investing activities for the thirteen weeks ended March 30, 2025 was 40.7million,drivenbypurchasesofpropertyandequipment,contrastingwithcashprovidedbyinvestingactivitiesof40.7 million, driven by purchases of property and equipment, contrasting with cash provided by investing activities of 158.0 million in the prior year, mainly from the sale of a business[114]. Tax and Other Income - Other (expense) income, net was (0.6)millionforthethirteenweeksendedMarch30,2025,adecreaseof(0.6) million for the thirteen weeks ended March 30, 2025, a decrease of 19.9 million compared to 19.3millionintheprioryear,primarilyduetotheabsenceofa19.3 million in the prior year, primarily due to the absence of a 44.0 million gain on the sale of business[95]. - Income tax benefit for the thirteen weeks ended March 30, 2025, was (0.6)million,asignificantdecreasefrom(0.6) million, a significant decrease from 26.5 million in the prior year, largely due to the Good Health and R.W. Garcia Sale[96]. Compliance and Risk Management - The company was in compliance with all financial and other covenants under the credit agreements as of March 30, 2025[116]. - The company partially guarantees loans made to IOs, which are collateralized by the routes purchased, allowing for recovery of outstanding loan value upon default[110]. - Long-term cash requirements include funding long-term debt repayments and related interest payments, as well as obligations related to deferred taxes and operating lease liabilities[112]. - There have been no material changes in market risk exposures since the last annual report filed on February 20, 2025[119]. - The company has not made any changes to critical accounting policies and estimates since the last annual report[118].