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8-K - FORM 8-K - FLOWERS FOODS INCd75811d8k.htm

Exhibit 99.1

 

LOGO

 

August 12, 2015

  Company Press Release   Flowers Foods (NYSE: FLO)

Flowers Foods, Inc. Announces Results for the Second Quarter 2015

New Products, Expanded Distribution and Enhanced Brand Strategy

Drive Record Second Quarter Results

THOMASVILLE, Ga. – Flowers Foods, Inc. (NYSE: FLO), producer of Nature’s Own, Wonder, Tastykake, and other bakery foods, today reported financial results for the company’s 12-week second quarter ended July 18, 2015.

Second Quarter 2015 Summary Financial Results

Compared to prior year second quarter

    Sales(1) increased 1.8% to $889 million
    EBITDA(2) increased 16.0% to $111 million; adjusted EBITDA(3) increased 13.0% to $113 million
    Net income increased 23.1% to $52 million; adjusted net income(4) increased 18.4% to $53 million
    Diluted EPS increased 20.0% to $0.24; adjusted diluted EPS(4) increased 19.0% to $0.25
    Dividends paid increased 20.8% to $0.1450 per share

 

(1) Prior period sales have been revised. See explanation in Form 10-Q which will be filed August 13, 2015 and Form 10-K filed February 25, 2015.
(2) Earnings before Interest, Taxes, Depreciation & Amortization; see reconciliation of non-GAAP measures in the financial statements following this release.
(3) Adjusted Earnings before Interest, Taxes, Depreciation & Amortization; see reconciliation of non-GAAP measures in the financial statements following this release.
(4) See reconciliation of non-GAAP measures in the financial statements following this release.

Second Quarter Highlights

    EBITDA and EPS are the highest ever recorded during the company’s second quarter.
    For the 12-week second quarter of fiscal 2015, the increase in consolidated sales reflects a volume increase of 0.9% and a positive price/mix of 0.9%.
    Sales in expansion markets contributed 1.1% to the overall sales increase during the quarter; driven by the acquired Hostess bread brands – Wonder, Home Pride, Merita, and Butternut.
    The company generated $97.5 million of cash flow from operations and paid down $11.3 million of debt.

Fiscal 2015 Outlook

    The company continues to expect 52-week fiscal 2015 sales of $3.786 billion to $3.861 billion and adjusted diluted earnings per share of $0.96 to $1.01. Capital expenditures are anticipated to be in the range of $85.0 to $95.0 million.

 

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Segment Results for the Quarter

 

     12 Weeks Ended        
     July 18, 2015     July 12, 2014     % Chg.  
    

(Amounts in millions,

except EPS)

       

Sales:

      

DSD Segment:

      

Branded Retail

   $ 473.2      $ 457.9        3.3   

Store Branded Retail

     116.6        120.7        (3.5

Non-retail and Other(1)

     162.2        157.7        2.8   
  

 

 

   

 

 

   

Total DSD Sales

   $ 752.0      $ 736.3        2.1   
  

 

 

   

 

 

   

Warehouse Segment:

      

Branded Retail

   $ 31.1      $ 30.6        1.7   

Store Branded Retail

     28.5        27.0        5.7   

Non-retail and Other(1)

     77.2        78.8        (2.1
  

 

 

   

 

 

   

Total Warehouse Sales

     136.8        136.4        0.3   
  

 

 

   

 

 

   

Consolidated Sales

   $ 888.8      $ 872.7        1.8   
  

 

 

   

 

 

   

Adjusted EBITDA(2):

      

DSD Segment

   $ 107.3      $ 93.4        14.9   

% of DSD Sales

     14.3     12.7  

Warehouse Segment

     17.6        17.0        3.4   

% of Warehouse Sales

     12.8     12.4  

Unallocated Corporate Expense(3)

     (12.1     (10.6     14.4   
  

 

 

   

 

 

   

Consolidated Adjusted EBITDA(2)

   $ 112.8      $ 99.8        13.0   
  

 

 

   

 

 

   

% of Consolidated Sales

     12.7     11.4  
  

 

 

   

 

 

   

Adjusted diluted EPS(2)

   $ 0.25      $ 0.21        19.0   
  

 

 

   

 

 

   

Note: Amounts and percentages may not compute due to rounding.

 

(1) Includes foodservice, vending, and contract manufacturing.
(2) See reconciliations of non-GAAP measures in the financial statements following this release.
(3) Represents the company's corporate head office amounts.

 

 

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Executive Commentary:

Allen L. Shiver, president and chief executive officer, said, “Our team delivered an outstanding second quarter, with both of our operating segments posting top- and bottom-line growth. In our core markets, new products combined with our enhanced brand strategy brought consumers to our brands and improved margins. In our expansion markets, we continue to gain share with Wonder, Nature’s Own, and our other proven brands. Retail sales of our two largest cake brands, Tastykake and Mrs. Freshley’s, both posted growth, driven by the appeal of new products and expanded distribution.

“During the quarter, we also saw the benefit of our operational initiatives. Across a majority of our bakeries we realized improved manufacturing efficiencies, which, when combined with reduced input prices, drove margin expansion this quarter. This quarter, profitability at Lepage returned to more normalized levels, which also contributed to the strong margins in our DSD segment.

“Bringing a new bakery online can be challenging, but because of our experienced team’s hard work, the start up at our Lenexa, Kansas DSD segment bakery went very smoothly. Kansas City and other Midwestern expansion markets are key to our growth strategy, and with capacity closer to these markets we can better serve our independent distributors and consumers.

Shiver continued, “The record results we report today are the result of hard work from the entire Flowers team to deliver value to shareholders. Looking ahead, we have significant momentum as we continue to execute our strategy. To grow sales and attract consumers, we intend to innovate our product portfolio and leverage our strong brands. To increase margins, we will improve efficiencies and reduce our costs. And finally, we continue to seek out strategic acquisition opportunities in order to expand our brand portfolio and geographic footprint.”

DSD Segment Commentary

Of the total DSD segment sales increase, pricing/mix increased 0.7% and volume increased 1.4%. Branded retail sales were strong, primarily due to volume increases in white and soft variety breads. The increase in branded retail sales was partially offset by decreases in store branded retail due to exiting certain store branded business in the second half of fiscal 2014. The non-retail and other category posted solid volume growth, driven primarily by foodservice.

EBITDA and adjusted EBITDA margin for the DSD segment increased as a percentage of sales due to lower ingredient costs, improved manufacturing efficiencies, and cost-saving initiatives; partially offset by higher distribution costs.

Warehouse Segment Commentary

Of the Warehouse segment’s sales increase, pricing/mix increased 1.4%, while volume decreased 1.1%. Improved price/mix drove the increase in branded retail sales, and the improvement in store brand retail sales was primarily the result of higher store brand cake sales. The decision to exit the lower-margin, non-retail tortilla business in the second half of 2014 drove the decrease in the non-retail and other category.

 

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Indicating the improved mix of business, EBITDA margin for the Warehouse segment increased as a percentage of sales primarily due to the exit from the non-retail tortilla business in the second half of fiscal 2014 and lower ingredient costs, partially offset by higher workforce-related and packaging costs.

Consolidated Results Commentary

As compared to the prior year second quarter, consolidated EBITDA and adjusted EBITDA increased. Unallocated corporate expenses were elevated during the quarter primarily due to higher consulting and legal expenses, and lower pension income; partially offset by lower stock-based compensation expense.

Interest expense declined due to lower outstanding debt balances, while a higher notes receivable balance drove an increase in interest income. Income tax expense as a percentage of pre-tax income increased slightly.

During the quarter, the company adjusted its estimate of the fair value of certain properties held for sale and identified a production line to be closed in the third quarter. As a result of these actions, the company recognized asset impairment charges during the quarter totaling $2.3 million.

Cash Flow

During the quarter, cash flow from operating activities was $97.5 million, capital expenditures were $20.6 million, and dividends paid were $30.5 million. During the quarter, the company paid down debt by $11.3 million.

Dividend

The board of directors will review the dividend at its next regularly scheduled meeting. Any action taken will be announced following that meeting.

Conference Call

Flowers Foods will broadcast its second quarter 2015 earnings conference call over the Internet at 8:30 a.m. (Eastern) on August 13, 2015. The call will be broadcast live on www.flowersfoods.com, and can be accessed by clicking on the webcast link on the home page. The call also will be archived on the company’s website.

About Flowers Foods

Headquartered in Thomasville, Ga., Flowers Foods, Inc. (NYSE: FLO) is one of the largest producers of fresh packaged bakery foods in the United States, with 2014 sales of $3.75 billion. Flowers operates bakeries across the country that produce a wide range of bakery products. Among the company’s top brands are Nature’s Own, Wonder, and Tastykake. Learn more at www.flowersfoods.com.

Investor Contact: Marta Jones Turner (229) 227-2348; Media Contact: Paul Baltzer (229) 227-2380

Forward-Looking Statements

Statements contained in this press release that are not historical facts are forward-looking statements. Forward-looking statements relate to current expectations regarding our future financial condition, performance and results of operations, planned capital expenditures, long-term objectives of management, supply and demand, pricing trends and market forces, and integration plans and expected benefits of

 

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transactions and are often identified by the use of words and phrases such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will,” “would,” “is likely to,” “is expected to” or “will continue,” or the negative of these terms or other comparable terminology. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected. Other factors that may cause actual results to differ from the forward-looking statements contained in this release and that may affect the company’s prospects in general include, but are not limited to (a) competitive conditions in the baked foods industry, including promotional and price competition, (b) changes in consumer demand for our products, including changes in consumer behavior, trends and preferences, including health and whole grain trends, and the movement toward more inexpensive store-branded products, (c) the success of productivity improvements and new product introductions, (d) a significant reduction in business with any of our major customers including a reduction from adverse developments in any of our customer’s business, (e) fluctuations in commodity pricing, (f) energy and raw material costs and availability and hedging and counterparty risk, (g) our ability to fully integrate recent acquisitions into our business, (h) our ability to achieve cash flow from capital expenditures and acquisitions and the availability of new acquisitions that build shareholder value; (i) consolidation within the baking industry and related industries; (j) disruptions in our direct-store delivery system, including litigation or an adverse ruling from a court or regulatory or government body that could affect the independent contractor classification of our independent distributors, and (k) the failure of our information technology systems to perform adequately, including any interruptions, intrusions or security breaches of such systems. The foregoing list of important factors does not include all such factors, nor necessarily present them in order of importance. In addition, you should consult other disclosures made by the company, including the risk factors included in our most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) and disclosures made in other filings with the SEC and company press releases, for other factors that may cause actual results to differ materially from those projected by the company. We caution you not to place undue reliance on forward-looking statements, as they speak only as of the date made and are inherently uncertain. The company undertakes no obligation to publicly revise or update such statements, except as required by law.

Information Regarding Non-GAAP Financial Measures

The company prepares its consolidated financial statements in accordance with U.S. Generally Accepted Accounting Principles (GAAP). However, from time to time, the company may present in its public statements, press releases and SEC filings, non-GAAP financial measures such as, EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted share, adjusted EBIT, adjusted EBIT margin and gross margin excluding depreciation and amortization to measure the performance of the company and its operating divisions.

EBITDA is used as the primary performance measure in the company’s 2014 Omnibus Equity and Incentive Compensation Plan. The company defines EBITDA as earnings from continuing operations before interest, income taxes, depreciation, amortization and income attributable to non-controlling interest. The company believes that EBITDA is a useful tool for managing the operations of its business and is an indicator of the company’s ability to incur and service indebtedness and generate free cash flow. Furthermore, pursuant to the terms of our credit facility, EBITDA is used to determine the company’s compliance with certain financial covenants. The company also believes that EBITDA measures are commonly reported and widely used by investors and other interested parties as measures of a company’s

 

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operating performance and debt servicing ability because EBITDA measures assist in comparing performance on a consistent basis without regard to depreciation or amortization, which can vary significantly depending upon accounting methods and non-operating factors (such as historical cost). EBITDA is also a widely-accepted financial indicator of a company’s ability to incur and service indebtedness.

Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted common share exclude additional costs that we consider important to present to investors. These include, but are not limited to, the costs of closing a plant or costs associated with acquisition-related activities. We believe that financial information excluding certain transactions not considered to be part of the ongoing business improves the comparability of earnings results. We believe investors will be able to better understand our earnings results if these transactions are excluded from the results. These non-GAAP financial measures are measures of performance not defined by accounting principles generally accepted in the United States and should be considered in addition to, not in lieu of, GAAP reported measures. None of these non-GAAP measures should be considered an alternative to (a) income from operations or net income (loss) as a measure of operating performance; (b) cash flows provided by operating, investing and financing activities (as determined in accordance with GAAP) as a measure of the company’s ability to meet its cash needs; or (c) any other indicator of performance or liquidity that has been determined in accordance with GAAP. Our method of calculating EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted common share, and may differ from the methods used by other companies, and, accordingly, may not be comparable to similarly titled measures used by other companies.

Gross margin excluding depreciation and amortization is used as a performance measure to provide additional transparent information regarding our results of operations on a consolidated and segment basis. Changes in depreciation and amortization are separately discussed and include depreciation and amortization for materials, supplies, labor and other production costs and operating activities. Presentation of gross margin includes depreciation and amortization in the materials, supplies, labor and other production costs according to GAAP. Our method of presenting gross margin excludes the depreciation and amortization components, as discussed above. This presentation may differ from the methods used by other companies and may not be comparable to similarly titled measures used by other companies.

The reconciliations attached provide a reconciliation of our net income, the most comparable GAAP financial measure to EBITDA, adjusted EBITDA and adjusted net income, a reconciliation of adjusted EBITDA to cash flow from operations, a reconciliation of our gross margin excluding depreciation and amortization to GAAP gross margin, a reconciliation of net income per diluted common share to adjusted net income per diluted common share and reconciliations of operating income (EBIT) to EBITDA by segment.

 

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Flowers Foods, Inc.

Consolidated Statement of Income

 

(000’s omitted, except per share data)

 

     For the 12 Week
Period Ended
    For the 12 Week
Period Ended
    For the 28 Week
Period Ended
    For the 28 Week
Period Ended
 
     July 18, 2015     July 12, 2014     July 18, 2015     July 12, 2014  

Sales

   $ 888,795      $ 872,791      $ 2,034,840      $ 2,026,708   

Materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately below)

     457,253        458,019        1,043,169        1,053,896   

Selling, distribution and administrative expenses

     318,758        314,995        742,532        735,542   

Impairment of assets

     2,275        4,489        2,275        4,489   

Depreciation and amortization

     30,468        29,907        70,285        69,199   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations (EBIT)

     80,041        65,381        176,579        163,582   

Interest expense, net

     (860     (1,734     (2,442     (4,906
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes (EBT)

     79,181        63,647        174,137        158,676   

Income tax expense

     27,421        21,583        60,988        55,546   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 51,760      $ 42,064      $ 113,149      $ 103,130   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income per diluted common share

   $ 0.24      $ 0.20      $ 0.53      $ 0.48   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted weighted average shares outstanding

     212,872        212,919        212,798        212,906   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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Flowers Foods, Inc.

Segment Reporting

 

(000’s omitted)

 

     For the 12 Week
Period Ended
    For the 12 Week
Period Ended
    For the 28 Week
Period Ended
    For the 28 Week
Period Ended
 
     July 18, 2015     July 12, 2014     July 18, 2015     July 12, 2014  

Sales:

        

Direct-Store-Delivery

   $ 751,969      $ 736,364      $ 1,718,132      $ 1,699,486   

Warehouse Delivery

     136,826        136,427        316,708        327,222   
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 888,795      $ 872,791      $ 2,034,840      $ 2,026,708   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA:

        

Direct-Store-Delivery (1)

   $ 105,066      $ 88,900      $ 239,440      $ 220,466   

Warehouse Delivery

     17,567        16,984        38,645        35,749   

Unallocated Corporate

     (12,124     (10,596     (31,221     (23,434
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 110,509      $ 95,288      $ 246,864      $ 232,781   
  

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation and Amortization:

        

Direct-Store-Delivery

   $ 26,995      $ 26,487      $ 62,175      $ 61,271   

Warehouse Delivery

     3,591        3,524        8,371        8,180   

Unallocated Corporate

     (118     (104     (261     (252
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 30,468      $ 29,907      $ 70,285      $ 69,199   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBIT:

        

Direct-Store-Delivery (1)

   $ 78,071      $ 62,413      $ 177,265      $ 159,195   

Warehouse Delivery

     13,976        13,460        30,274        27,569   

Unallocated Corporate

     (12,006     (10,492     (30,960     (23,182
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 80,041      $ 65,381      $ 176,579      $ 163,582   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) The 12 week and 28 week periods ended July 18, 2015 include an asset impairment charge of $2.3 million. The 12 week and 28 week periods ended July 12, 2014 include an asset impairment charge of $4.5 million.

 

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Flowers Foods, Inc.

Condensed Consolidated Balance Sheet

 

(000’s omitted)

 

     July 18, 2015  

Assets

  

Cash and Cash Equivalents

   $ 46,544   

Other Current Assets

     449,089   

Property, Plant & Equipment, net

     777,473   

Distributor Notes Receivable (includes $20,699 current portion)

     185,552   

Other Assets

     42,325   

Cost in Excess of Net Tangible Assets, net

     926,644   
  

 

 

 

Total Assets

   $ 2,427,627   
  

 

 

 

Liabilities and Stockholders’ Equity

  

Current Liabilities

   $ 310,124   

Long-term Debt and Capital Leases (includes $34,180 current portion)

     693,274   

Other Liabilities

     232,695   

Stockholders’ Equity

     1,191,534   
  

 

 

 

Total Liabilities and Stockholders’ Equity

   $ 2,427,627   
  

 

 

 

 

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Flowers Foods, Inc.

Condensed Consolidated Statement of Cash Flows

 

(000’s omitted)

 

     For the 12 Week
Period Ended
    For the 28 Week
Period Ended
 
     July 18, 2015     July 18, 2015  

Cash flows from operating activities:

  

 

Net income

   $ 51,760      $ 113,149   

Adjustments to reconcile net income to net cash from operating activities:

    

Total non-cash adjustments

     40,136        92,395   

Pension contributions and changes in assets and liabilities

     5,615        10,390   
  

 

 

   

 

 

 

Net cash provided by operating activities

     97,511        215,934   
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Purchase of property, plant and equipment

     (20,590     (40,573

Other

     12,553        7,204   
  

 

 

   

 

 

 

Net cash disbursed for investing activities

     (8,037     (33,369
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Dividends paid

     (30,496     (59,181

Exercise of stock options, including windfall tax benefit

     974        5,096   

Stock repurchases

     0        (6,858

Proceeds from debt borrowings

     26,800        401,000   

Debt and capital lease obligation payments

     (38,100     (469,000

Other

     (10,074     (14,601
  

 

 

   

 

 

 

Net cash disbursed for financing activities

     (50,896     (143,544
  

 

 

   

 

 

 

Net increase in cash and cash equivalents

     38,578        39,021   

Cash and cash equivalents at beginning of period

     7,966        7,523   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 46,544      $ 46,544   
  

 

 

   

 

 

 

 

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Flowers Foods, Inc.

Reconciliation of GAAP to Non-GAAP Measures

 

(000’s omitted, except per share data)

 

    Reconciliation of Earnings per Share  
    For the 12 Week
Period Ended
    For the 12 Week
Period Ended
    For the 28 Week
Period Ended
    For the 28 Week
Period Ended
 
    July 18, 2015     July 12, 2014     July 18, 2015     July 12, 2014  

Net income per diluted common share

  $ 0.24      $ 0.20      $ 0.53      $ 0.48   

Asset impairment

    0.01        0.01        0.01        0.02   
 

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income per diluted common share

  $ 0.25      $ 0.21      $ 0.54      $ 0.50   
 

 

 

   

 

 

   

 

 

   

 

 

 
    Reconciliation of Gross Margin  
    For the 12 Week
Period Ended
    For the 12 Week
Period Ended
    For the 28 Week
Period Ended
    For the 28 Week
Period Ended
 
    July 18, 2015     July 12, 2014     July 18, 2015     July 12, 2014  

Sales

  $ 888,795      $ 872,791      $ 2,034,840      $ 2,026,708   

Materials, supplies, labor and other production costs (exclusive of depreciation and amortization)

    457,253        458,019        1,043,169        1,053,896   
 

 

 

   

 

 

   

 

 

   

 

 

 

Gross Margin excluding depreciation and amortization

    431,542        414,772        991,671        972,812   

Less depreciation and amortization for production activities

    20,184        20,506        46,812        47,419   
 

 

 

   

 

 

   

 

 

   

 

 

 

Gross Margin

  $ 411,358      $ 394,266      $ 944,859      $ 925,393   
 

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation and amortization for production activities

  $ 20,184      $ 20,506      $ 46,812      $ 47,419   

Depreciation and amortization for selling, distribution and administrative activities

    10,284        9,401        23,473        21,780   
 

 

 

   

 

 

   

 

 

   

 

 

 

Total depreciation and amortization

  $ 30,468      $ 29,907      $ 70,285      $ 69,199   
 

 

 

   

 

 

   

 

 

   

 

 

 
    Reconciliation of Net Income to Adjusted EBITDA  
    For the 12 Week
Period Ended
    For the 12 Week
Period Ended
    For the 28 Week
Period Ended
    For the 28 Week
Period Ended
 
    July 18, 2015     July 12, 2014     July 18, 2015     July 12, 2014  

Net income

  $ 51,760      $ 42,064      $ 113,149      $ 103,130   

Income tax expense

    27,421        21,583        60,988        55,546   

Interest expense, net

    860        1,734        2,442        4,906   

Depreciation and amortization

    30,468        29,907        70,285        69,199   
 

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

    110,509        95,288        246,864        232,781   

Asset impairment

    2,275        4,489        2,275        4,489   
 

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

  $ 112,784      $ 99,777      $ 249,139      $ 237,270   
 

 

 

   

 

 

   

 

 

   

 

 

 
    Reconciliation of Adjusted EBITDA to Cash Flow from Operations  
    For the 12 Week
Period Ended
    For the 12 Week
Period Ended
    For the 28 Week
Period Ended
    For the 28 Week
Period Ended
 
    July 18, 2015     July 12, 2014     July 18, 2015     July 12, 2014  

Adjusted EBITDA

  $ 112,784      $ 99,777      $ 249,139      $ 237,270   

Adjustments to reconcile net income to net cash provided by operating activities

    9,668        13,272        22,110        25,929   

Pension contributions and changes in assets and liabilities

    5,615        (34,153     10,390        (25,347

Income taxes

    (27,421     (21,583     (60,988     (55,546

Interest expense, net

    (860     (1,734     (2,442     (4,906

Asset impairment

    (2,275     (4,489     (2,275     (4,489
 

 

 

   

 

 

   

 

 

   

 

 

 

Cash Flow From Operations

  $ 97,511      $ 51,090      $ 215,934      $ 172,911   
 

 

 

   

 

 

   

 

 

   

 

 

 
    Reconciliation of Net Income to Adjusted Net Income  
    For the 12 Week
Period Ended
    For the 12 Week
Period Ended
    For the 28 Week
Period Ended
    For the 28 Week
Period Ended
 
    July 18, 2015     July 12, 2014     July 18, 2015     July 12, 2014  

Net income

  $ 51,760      $ 42,064      $ 113,149      $ 103,130   

Asset impairment

    1,476        2,896        1,476        2,896   
 

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income

  $ 53,236      $ 44,960      $ 114,625      $ 106,026   
 

 

 

   

 

 

   

 

 

   

 

 

 
    Reconciliation of EBIT to Adjusted EBIT and Adjusted EBITDA - DSD  
    For the 12 Week
Period Ended
    For the 12 Week
Period Ended
    For the 28 Week
Period Ended
    For the 28 Week
Period Ended
 
    July 18, 2015     July 12, 2014     July 18, 2015     July 12, 2014  

EBIT

  $ 78,071      $ 62,413      $ 177,265      $ 159,195   

Asset impairment

    2,275        4,489        2,275        4,489   
 

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBIT

    80,346        66,902        179,540        163,684   

Depreciation and amortization

    26,995        26,487        62,175        61,271   
 

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

  $ 107,341      $ 93,389      $ 241,715      $ 224,955   
 

 

 

   

 

 

   

 

 

   

 

 

 
    Reconciliation of EBIT to EBITDA - Warehouse  
    For the 12 Week
Period Ended
    For the 12 Week
Period Ended
    For the 28 Week
Period Ended
    For the 28 Week
Period Ended
 
    July 18, 2015     July 12, 2014     July 18, 2015     July 12, 2014  

EBIT

  $ 13,976      $ 13,460      $ 30,274      $ 27,569   

Depreciation and amortization

    3,591        3,524        8,371        8,180   
 

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

  $ 17,567      $ 16,984      $ 38,645      $ 35,749   
 

 

 

   

 

 

   

 

 

   

 

 

 
    Reconciliation of EBIT to EBITDA - Corporate  
    For the 12 Week
Period Ended
    For the 12 Week
Period Ended
    For the 28 Week
Period Ended
    For the 28 Week
Period Ended
 
    July 18, 2015     July 12, 2014     July 18, 2015     July 12, 2014  

EBIT

  $ (12,006   $ (10,492   $ (30,960   $ (23,182

Depreciation and amortization

    (118     (104     (261     (252
 

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

  $ (12,124   $ (10,596   $ (31,221   $ (23,434
 

 

 

   

 

 

   

 

 

   

 

 

 
    Reconciliation of Earnings per Share - Full
Year Fiscal 2015 Guidance
       
    Range Estimate    

Net income per diluted common share

  $ 0.95   to    $ 1.00     

Asset impairment

    0.01        0.01     
 

 

 

   

 

 

   

Adjusted net income per diluted common share

  $ 0.96   to    $ 1.01     
 

 

 

   

 

 

   

 

11


Flowers Foods, Inc.

Sales Bridge

 

 

For the 12 Week Period Ended July 18, 2015

   Volume     Net
Price/Mix
    Total Sales
Change
 

Direct-Store-Delivery

     1.4     0.7     2.1

Warehouse Delivery

     -1.1     1.4     0.3

Total Flowers Foods

     0.9     0.9     1.8

For the 28 Week Period Ended July 18, 2015

   Volume     Net
Price/Mix
    Total Sales
Change
 

Direct-Store-Delivery

     0.7     0.4     1.1

Warehouse Delivery

     -3.0     -0.2     -3.2

Total Flowers Foods

     -0.1     0.5     0.4

 

12