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Utz Brands, Inc. and Intersnack Group GmbH & Co. KG Announce Agreement to Take Utz Private and Partnership with Founding Family
Intersnack Group to Acquire All Utz Class A Common Stock for $14.25 Per Share in Cash; A Premium of Approximately 91% to the July 20, 2026 Closing Price, Providing Compelling, Immediate and Certain Value The Rice and Lissette Family Entities to Continue Significant Ownership Stake in Utz; Utz to be Owned 50% by the Rice and Lissette Family and 50% by Intersnack Group Following Transaction Close Transaction Expands Intersnack Group's Exposure to Attractive U.S. Snack Market and Provides Utz with Access to Intersnack's Expansive Resources and Innovation to Drive Further Growth Utz to Maintain Ongoing Commitment to Hanover Community
Read more – Utz Brands, Inc. and Intersnack Group GmbH & Co. KG Announce Agreement to Take Utz Private and Partnership with Founding FamilyNews
Utz Brands Reports First Quarter 2026 Results and Reaffirms Full Year Guidance
Hanover, PA – May 6, 2026 – Utz Brands, Inc. (NYSE: UTZ) (“Utz” or the “Company”), a leading U.S. manufacturer of branded Salty Snacks and a small-cap growth and value Staples equity, today reported financial results for the Company’s first fiscal quarter ended March 29, 2026. 1Q’26 Summary(1) Net Sales increased 2.6% to $361.3 million Total Organic Net Sales increased 2.6%; Branded Salty Snacks Organic Net Sales increased 5.2% Gross Profit Margin expansion of 200bps Adjusted Gross Profit Margin expansion of 210bps Net Income decreased to $(2.4) million Adjusted Net Income decreased 4.5% to $21.3 million EBITDA decreased 12.9% to $30.3 million Adjusted EBITDA increased 6.2% to $47.9 million Diluted Earnings Per Share decreased to $(0.02) Adjusted Earnings Per Share decreased 6.3% to $0.15 Cash Flow Used in Operations was $12.2 million Adjusted Free Cash Flow increased to $(25.9) million Net Leverage Ratio improved and decreased 0.4x to 3.6x (1) All comparisons for the first quarter of 2026 are to the first quarter of 2025 (ended March 30, 2025). “I’m pleased with our solid start to the year, as we delivered 2.6% Net Sales growth and 5.2% Branded Salty Snacks growth, gained dollar share in the Salty Snacks category(2), and continued to expand Adjusted EBITDA margins” said Howard Friedman, Chief Executive Officer of Utz. Mr. Friedman continued, “The category has demonstrated signs of continued improvement with solid growth in the first quarter. Looking ahead to the remainder of 2026, we expect it to remain a dynamic operating environment and we are committed to our playbook of driving Branded Salty Snacks growth, generating productivity, and reinvesting in marketing and geographic expansion. We believe the flexibility of our model will allow us to succeed in an evolving consumer and category backdrop.” “Adjusted Free Cash Flow improved sharply in the first quarter with our focus on working capital management and normalizing capital expenditures,” said BK Kelley, EVP and Chief Financial Officer of Utz. “Leverage at 3.6x was down considerably from a year ago, and we expect leverage to improve further as we progress through 2026. We are reaffirming all aspects of our 2026 guidance.” 13-Weeks Ended (in $millions, except per share amounts) March 29, 2026 March 30, 2025 % Change Net Sales $ 361.3 $ 352.1 2.6 % Organic Net Sales 361.3 352.1 2.6 % Gross Profit 91.9 82.4 11.5 % Gross Profit Margin 25.4 % 23.4 % 200 bps Adjusted Gross Profit 111.4 101.2 10.1 % Adjusted Gross Profit Margin 30.8 % 28.7 % 210 bps Selling, General, and Administrative 85.4 77.4 10.3 % Selling, General, and Administrative Margin 23.6 % 22.0 % 160 bps Adjusted Selling, General, and Administrative 63.5 56.1 13.2 % Adjusted Selling, General and Administrative Margin 17.6 % 15.9 % 170 bps Net (Loss) Income (2.4) 5.7 nm Net (Loss) Income Margin (0.7) % 1.6 % nm Adjusted Net Income 21.3 22.3 (4.5) % EBITDA 30.3 34.8 (12.9) % Adjusted EBITDA 47.9 45.1 6.2 % Adjusted EBITDA Margin 13.3 % 12.8 % 50 bps Basic (Loss) Income Per Share(1) $ (0.02) $ 0.09 nm Adjusted Earnings Per Diluted Share(1) $ 0.15 $ 0.16 (6.3) % Cash Flow From Operations (12.2) (20.2) 39.6 % Adjusted Free Cash Flow (25.9) (58.2) 55.5 % First Quarter 2026 Results First quarter Net Sales increased 2.6% to $361.3 million compared to $352.1 million in the prior year period. Organic Net Sales increased 2.6% year-over-year, driven by a favorable net price realization of 3.7% partially offset by lower volume/mix contribution of (1.1)%. The Bonus Packs promotion in the prior year first quarter had a net neutral 2.7 point impact on both volume/mix and price. Excluding the Bonus Packs promotion, volume/mix increased 1.6% and net price realization increased 1.0%. Branded Salty Snacks Organic Net Sales(3) (representing 89% of total Net Sales) increased 5.2% led by our Power Four Brands, offset by a 14.3% decline in Non-Branded & Non-Salty Snacks Organic Net Sales(3), primarily due to Non-Branded, which was impacted by accelerated elimination of low margin items. For the 13-week period ended March 29, 2026, the Company’s Branded Salty Snacks Retail Sales increased 4.6% versus the prior year period, outperforming the 2.4% increase for the Salty Snack category overall(3). On a 2-year stack basis, total Company Branded Salty Snacks Retail Sales also increased 4.6%, outperforming a 0.7% increase for the Salty Snack category. The Company’s Retail Volumes decreased by 3.0%, impacted by the lap of Bonus Packs, compared to a 1.5% increase for the Salty Snack category. On a 2-year stack basis, the Company’s Retail Volumes increased 2.7%, outperforming a 0.1% decrease for the Salty Snack category. The Company drove Retail Sales gains in both its Core and Expansion Geographies(2)(3). The Company’s Power Four Brands of Utz®, On The Border®, Zapp’s® and Boulder Canyon® Retail Sales increased by 6.7%. Gross Profit Margin of 25.4% increased 200bps compared to 23.4% in the prior year period. Adjusted Gross Profit Margin of 30.8% expanded 210bps compared to 28.7% in the prior year period. The increase in both Gross Margin and Adjusted Gross Profit Margin was driven by productivity savings, which more than offset supply chain cost inflation. Selling, General, and Administrative Expenses (“SG&A Expenses”) were $85.4 million, or 23.6% of Net Sales, compared to $77.4 million, or 22.0% of Net Sales, in the prior year period. Adjusted SG&A Expenses were $63.5 million, or 17.6% of Net Sales, compared to $56.1 million, or 15.9% of Net Sales, in the prior year period. The increase in both SG&A Expenses and Adjusted SG&A Expenses as a percentage of Net Sales were primarily due to increased marketing, and adding capabilities to support the Company’s geographic expansion and growth initiatives. The Company reported a Net Loss of $2.4 million compared to Net Income of $5.7 million in the prior year period. Net Income in the prior year period benefited from an $11 million gain from the remeasurement of the warrant liability. Adjusted Net Income in the quarter decreased 4.5% to $21.3 million compared to $22.3 million in the prior year period. Adjusted Earnings Per Share decreased 6.3% to $0.15 compared to $0.16 in the prior year period. The Adjusted Earnings Per Share decrease was primarily the result of lower Adjusted Net Income, driven by an increase in depreciation and amortization. The Company reported EBITDA of $30.3 million compared to EBITDA of $34.8 million in the prior year period. Adjusted EBITDA increased 6.2% to $47.9 million, or 13.3% as a percentage of Net Sales, compared to $45.1 million, or 12.8% as a percentage of Net Sales, in the prior year period. The increase in Adjusted EBITDA was driven by Adjusted Gross Profit Margin expansion, which more than offset the increase in Adjusted SG&A expenses. (1) Versus prior year period. (2) As measured by Circana MULO+ w/convenience. (3) See “Other Defined Terms” for definitions. Balance Sheet and Cash Flow Highlights As of March 29, 2026 Total liquidity of $196.1 million, consisting of cash on hand of $73.7 million and $122.4 million available under the Company’s revolving credit facility. Net debt of $780.3 million resulting in a Net Leverage Ratio of 3.6x based on trailing twelve months Adjusted EBITDA of $219.3 million. For the thirteen weeks ended March 29, 2026 Cash flow used in operations was $12.2 million. Capital expenditures were $13.8 million, and dividends and distributions paid were $9.7 million. Adjusted Free Cash Flow of $(25.9) million. Share Repurchase Program The Company did not repurchase shares during the first quarter of 2026 and has $50 million remaining under its stock repurchase program adopted in February 2026. Fiscal Year 2026 Outlook The Company will benefit from a 53rd week in the fourth quarter of 2026. Guidance has indicated the impact of the 53rd week, where appropriate. The Company is reiterating all aspects of 2026 guidance. For the fiscal year 2026, the Company continues to expect: Organic Net Sales growth of 2% to 3%, assuming a flat Salty Snacks category at midpoint, led by continued Branded Salty Snacks growth, particularly the Power Four Brands. This metric excludes the 53rd week We expect that the 53rd week will benefit Reported Net Sales by approximately $20 million in the fourth quarter of 2026 Productivity savings of approximately 4% of Adjusted COGS Adjusted EBITDA growth of 5% to 8% and Adjusted EBITDA margin expansion, led by Adjusted Gross Margin expansion fueled by strong productivity cost savings and improved product mix. This metric includes the 53rd week We expect that the 53rd week will benefit Adjusted EBITDA by approximately $3 million in the fourth quarter of 2026 Adjusted EPS decline in range of 3% to 6%, driven primarily by higher depreciation and amortization of approximately $13 million, higher interest expense, and a higher tax rate, the impact of these three items equating to approximately 12 cents We expect that the 53rd week will benefit Adjusted EPS by 2 cents in the fourth quarter of 2026 Adjusted Free Cash Flow in the range of $60 and $80 million Adjusted Free Cash Flow is defined as Cash Flows From Operating Activities less Capital Expenditures Plus Net Sales of Property and Equipment The Company also continues to expect: An effective tax rate (normalized GAAP basis tax expense, which excludes one-time items) of between 17-19%; Interest expense in the range of $47 to $49 million; Depreciation and amortization in the range of $93 to $97 million Capital expenditures in the range of $60 to $65 million with the majority focused on delivering accelerated productivity savings and supporting targeted growth initiatives; and Net Leverage Ratio between 3.0x - 3.2x at fiscal year-end 2026 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 COGS, Adjusted EBITDA, Adjusted Free Cash Flow, 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 first 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 8:30 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 over 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 Trevor Martin Utz Brands, Inc. tmartin@utzsnacks.com Media Contact Colleen Farley Utz Brands, Inc. cfarley@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 “may,” “can,” “should,” “will,” “estimate,” “plan,” “project,” "forecast,” "intend,” "expect,” “anticipate,” “believe,” “seek,” “target” “goal”, “on track” or other similar words, phrases or expressions. These forward-looking statements include future plans for the Company, including outlook for fiscal 2026, assumptions for category performance, plans related to the transformation of the Company’s supply chain, the Company’s product mix, the Company’s expectations regarding its level of indebtedness and associated interest expense impacts; 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 effects of tariffs, 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: we operate in the highly competitive and increasingly consolidated snack food industry; demand for our products may be adversely affected by changes in consumer preferences and tastes or if we are unable to innovate or market our products effectively; our reputation or brand image might be impacted as a result of issues or concerns relating to the quality and safety of our products, ingredients or packaging, processing techniques, which in turn could negatively impact our operating results; changes in retail distribution arrangements can result in the loss of retail shelf space and disrupt sales of food products, causing our sales to fall; our DTW delivery network system relies on a significant number of brokers, wholesalers and logistics companies, and our DSD network system and regional third-party distributor network relies on a significant number of independent operators and third-party distributors, and such reliance could affect our ability to effectively and profitably distribute and market products, maintain existing markets and expand business into other geographic markets; the evolution of e-commerce retailers and sales channels may adversely affect us; disruption to our manufacturing operations, supply chain or distribution channels could impair our ability to produce or deliver finished products and negatively impact our operating results; our results of operations and profitability may continue to be adversely affected by inflation, including from rising labor costs and the effects of shortages of raw materials, energy, water and other supplies; all of our products must be compliant with laws and regulations promulgated by various governmental authorities, and changes in the legal and regulatory environment, including with respect to the One Big Beautiful Bill Act, could limit our business activities, increase our operating costs, reduce demand for our products or result in litigation or other regulatory action; we may be unable to successfully identify and execute acquisitions or dispositions or to successfully integrate acquisitions or carve out dispositions; the geographic concentration of our markets may adversely impact us if we are unable to effectively diversify the markets in which we participate; we may not be able to attract and retain the highly skilled people we need to support our business; impairment in the carrying value of goodwill or other intangible assets could have an adverse impact on our results; our intellectual property rights are valuable, and any inability to protect them could reduce the value of our products and brands; climate change or legal, regulatory or market measures to address climate change may negatively affect our business and operations or damage our reputation, and liabilities, claims or new laws or regulations with respect to environmental matters could have a significant negative impact on our business; we are subject to increasing focus on ESG issues, including those related to climate change, and any perceived failure by us to meet ESG initiatives may negatively impact our business; our debt instruments contain covenants that impose restrictions on our operations that may adversely affect our ability to operate our business if we fail to meet those covenants or otherwise suffer a default thereunder; we are subject to risks from changes to the trade policies and tariff and import/export regulations by the U.S. and/or other foreign governments; resales of shares of our Class A Common Stock could affect the market price of our Class A Common Stock; we are a holding company dependent upon distributions made by our subsidiaries to pay taxes, make payments under the Company’s Tax Receivable Agreement (the “TRA”) and pay dividends; pursuant to the TRA, we are required to make certain payments to certain noncontrolling interest holders, and those payments may be substantial; Delaware law, our organizational documents and certain other agreements contain certain provisions, including anti-takeover provisions, that limit the ability of stockholders to take certain actions and could delay or discourage takeover attempts; our Certificate of Incorporation designates the Court of Chancery of the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders; certain of our significant stockholders whose interests may differ from those of our other stockholders have the ability to significantly influence our business and management; and other risks and uncertainties set forth in Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K for the year ended December 28, 2025 and in the other reports we file with the Commission from time to time. 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 and identify trends in our underlying operating results, and it 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 management judgment 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. During the first quarter of 2026, the Company revised the categorization of certain charges and gains that were historically categorized as acquisition, divestitures and investments, business transformation, and financing-related costs. The Company is now presenting the associated charges and gains within the categories supply chain transformation and corporate transformation. The nature of the charges and gains included in these adjustments, as well as the total amount of all of these adjustments in all prior periods presented, are unchanged We believe that this change provides a better reflection of the impact of the charges and gains and aligns with how management views the adjustments internally. Prior period balances have been reclassified to conform to the current presentation. Additionally, the Company has revised the presentation of its reconciliations of Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Selling, General, and Administrative Expenses, EBITDA, Adjusted EBITDA, Adjusted Net Income, and Adjusted Earnings Per Share to the most directly comparable GAAP measures. We believe the revised presentation of reconciliation information provides investors with helpful context on the impacts of the adjustments. 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 Cost of Goods Sold (COGS) Adjusted Selling, General and Administrative Expense Adjusted Selling, General and Administrative Expense as % of Net Sales (Adjusted Selling, General and Administrative Expense Margin) Adjusted Net Income Adjusted Earnings Per Share Adjusted Earnings Before Taxes EBITDA Adjusted EBITDA Adjusted EBITDA as % of Net Sales (Adjusted EBITDA Margin) Effective Normalized Tax Rate Net Leverage Ratio Adjusted COGS Branded Salty Snacks Organic Net Sales Non-Branded & Non-Salty Snacks Organic Net Sales Adjusted Free Cash Flow Organic Net Sales is defined as Net Sales excluding the impacts of acquisitions, divestitures and independent operator (“IO”) route conversions that took place after 1Q’2024. 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, supply chain transformation, and corporate transformation. 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. Adjusted Cost of Goods Sold (COGS) represents Net Sales less Adjusted Gross Profit Adjusted Selling, General and Administrative Expense is defined as all Selling, General and Administrative expense excluding Depreciation and Amortization expense, a non-cash item. In addition, Adjusted Selling, General 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, supply chain transformation, and corporate transformation. We also report Adjusted Selling, General and Administrative Expense as a percentage of Net Sales as an additional measure for investors to evaluate our Adjusted Selling, General and Administrative Margin. Adjusted Net Income is defined as Net Income excluding Depreciation and Amortization expense, a non-cash item, related to fair value adjustments on property, plant, and equipment, and definite-lived intangibles relating to business combinations recorded in prior periods. In addition, Adjusted Net Income excludes 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, supply chain transformation, corporate transformation, remeasurement of warrant liabilities. Lastly, Adjusted Net Income normalizes the income tax provision to account for the above-mentioned adjustments. Adjusted Earnings Before Taxes is defined as Adjusted Net Income before normalized GAAP basis tax expense. Adjusted Earnings Per Share is defined as Adjusted Net Income divided by the weighted average shares outstanding for each period on a fully diluted basis assuming the shares of Class V Common Stock of the Company are converted to Class A Common Stock of the Company. 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, supply chain transformation, and corporate transformation. 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. In this release, we also provide Adjusted EBITDA as a percentage of Net Sales as an additional measure for readers to evaluate our Adjusted EBITDA Margin. Adjusted Free Cash Flow is defined as Cash Flow from Operating Activities on the Consolidated Statements of Cash Flows less Purchases of Property and Equipment (Capital Expenditures) plus Net Proceeds from Sale of Property and Equipment, both included in Cash flow from investing activities on the Consolidated Statements of Cash Flows. Effective Normalized Tax Rate is defined as normalized GAAP basis tax expense, which excludes one-time items, divided by Adjusted Earnings before Taxes. Net Leverage Ratio is defined as trailing twelve month 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 consist of 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 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 March 29, 2026 and March 30, 2025 (In millions, except share information) (Unaudited) Thirteen weeks ended March 29, 2026 Thirteen weeks ended March 30, 2025 Net sales $ 361.3 $ 352.1 Cost of goods sold 269.4 269.7 Gross profit 91.9 82.4 Selling, general, and administrative expenses Selling 51.1 41.5 General and administrative 34.3 35.9 Total selling, general, and administrative expenses 85.4 77.4 Gain on sale of assets, net 1.3 0.7 Income from operations 7.8 5.7 Other loss, net Interest expense (10.4) (11.5) Loss on debt extinguishment — (0.5) Other income 0.8 0.4 Gain on remeasurement of warrant liability — 11.0 Other loss, net (9.6) (0.6) (Loss) income before taxes (1.8) 5.1 Income tax expense (benefit) 0.6 (0.6) Net (loss) income (2.4) 5.7 Net loss attributable to noncontrolling interest 0.7 1.8 Net (loss) attributable to controlling interest $ (1.7) $ 7.5 (Loss) income per Class A Common stock: (in dollars) Basic $ (0.02) $ 0.09 Diluted $ (0.02) $ 0.09 Weighted-average shares of Class A Common stock outstanding Basic 88,347,854 85,721,393 Diluted 88,347,854 87,535,340 Net (loss) income $ (2.4) $ 5.7 Other comprehensive income (loss): Change in fair value of interest rate swap 2.3 (6.4) Comprehensive loss (0.1) (0.7) Net comprehensive (income) loss attributable to noncontrolling interest (0.2) 4.3 Net comprehensive (loss) income attributable to controlling interest $ (0.3) $ 3.6 Utz Brands, Inc. CONSOLIDATED BALANCE SHEETS March 29, 2026 and December 28, 2025 (In millions, except per share information) As of March 29, 2026 As of December 28, 2025 (Unaudited) ASSETS Current Assets Cash and cash equivalents $ 73.7 $ 120.4 Accounts receivable, less allowance of $3.3 for each period 113.4 100.8 Inventories 122.5 119.3 Prepaid expenses and other assets 46.3 39.9 Current portion of notes receivable 4.0 4.0 Total current assets 359.9 384.4 Non-current Assets Assets held for sale 10.4 10.3 Property, plant and equipment, net 379.9 379.2 Goodwill 865.2 865.2 Intangible assets, net 956.5 963.9 Non-current portion of notes receivable 10.8 10.8 Other assets 203.4 179.8 Total non-current assets 2,426.2 2,409.2 Total assets $ 2,786.1 $ 2,793.6 LIABILITIES AND EQUITY Current Liabilities Current portion of term debt $ 30.3 $ 31.4 Current portion of other notes payable 6.1 6.5 Accounts payable 188.3 197.4 Accrued expenses and other 90.3 87.9 Total current liabilities 315.0 323.2 Non-current portion of term debt and revolving credit facility 812.0 818.2 Non-current portion of other notes payable 13.1 14.2 Non-current accrued expenses and other 181.4 166.5 Deferred tax liability 127.2 126.6 Total non-current liabilities 1,133.7 1,125.5 Total liabilities 1,448.7 1,448.7 Commitments and Contingencies Equity Shares of Class A Common Stock, $0.0001 par value; 1,000,000,000 shares authorized; 88,430,658 and 87,509,774 shares issued and outstanding as of March 29, 2026 and December 28, 2025, respectively — — Shares of Class V Common Stock, $0.0001 par value; 61,249,000 shares authorized; 55,349,000 shares issued and outstanding as of both March 29, 2026 and December 28, 2025 — — Additional paid-in capital 1,039.2 1,037.0 Accumulated deficit (334.4) (326.6) Accumulated other comprehensive income 4.7 3.3 Total stockholders' equity 709.5 713.7 Noncontrolling interest 627.9 631.2 Total equity 1,337.4 1,344.9 Total liabilities and equity $ 2,786.1 $ 2,793.6 Utz Brands, Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS For the thirty-nine weeks ended March 29, 2026 and March 30, 2025 (In millions) (Unaudited) Thirteen weeks ended March 29, 2026 Thirteen weeks ended March 30, 2025 Cash flows from operating activities Net (loss) income $ (2.4) $ 5.7 Adjustments to reconcile net (loss) income to net cash used in operating activities: Depreciation and amortization 22.5 18.7 Gain on remeasurement of warrant liability — (11.0) Gain on sale of assets (1.3) (0.7) Loss on debt extinguishment — 0.5 Share-based compensation 3.9 4.3 Deferred taxes 0.6 0.1 Deferred financing costs 0.3 0.3 Changes in assets and liabilities: Accounts receivable, net (12.6) (15.1) Inventories (3.2) (6.2) Prepaid expenses and other assets (3.5) (7.1) Accounts payable and accrued expenses and other (16.5) (9.7) Net cash used in operating activities (12.2) (20.2) Cash flows from investing activities Purchases of property and equipment (13.8) (38.8) Proceeds from sale of property and equipment 0.1 0.8 Proceeds from sale of routes 8.3 5.0 Proceeds from the sale of IO notes 1.5 0.5 Purchases of IO routes and other changes in note receivables (11.6) (8.2) Net cash used in investing activities (15.5) (40.7) Cash flows from financing activities Borrowings on line of credit 60.0 85.0 Repayments on line of credit (60.0) (35.2) Borrowings on term debt and notes payable — 38.5 Repayments on term debt and notes payable (7.6) (8.0) Payment of debt issuance cost — (1.7) Payments of tax withholding requirements for employee stock awards (1.7) (2.2) Dividends paid (6.2) (5.4) Distribution to noncontrolling interest (3.5) (3.5) Net cash (used in) provided by financing activities (19.0) 67.5 Net (decrease) increase in cash and cash equivalents (46.7) 6.6 Cash and cash equivalents at beginning of period 120.4 56.1 Cash and cash equivalents at end of period $ 73.7 $ 62.7 Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures (Amounts may not sum due to rounding) Net Sales and Organic Net Sales 13-Weeks Ended (dollars in millions) March 29, 2026 March 30, 2025 Change Net Sales as Reported $ 361.3 $ 352.1 2.6 % Organic Net Sales (1) $ 361.3 $ 352.1 2.6 % (1) Organic Net Sales excludes the Impact of Dispositions. Net Sales Growth Drivers 13-Weeks Ended March 29, 2026 (% change in prior year net sales) Branded Salty Snacks (1) Non-Branded & Non-Salty Snacks (2) Total Net Sales as Reported $ 321.7 $ 39.6 $ 361.3 Net Sales as Reported Growth Versus Prior Year 5.2 % (14.3) % 2.6 % Volume/mix 1.1 % (15.1) % (1.1) % Pricing 4.1 0.8 3.7 Organic Net Sales Growth Versus Prior Year 5.2 % (14.3) % 2.6 % Divestiture — — — Net Sales as Reported Growth Versus Prior Year 5.2 % (14.3) % 2.6 % (1) Branded Salty Snacks sales excluding IO unreported sales. (2) Non-Branded & Non-Salty Snacks including IO unreported sales. Adjusted Gross Profit; Adjusted Gross Margin, Adjusted Selling, General, and Administrative Expenses, EBITDA, Adjusted EBITDA, Adjusted Net Income, and Adjusted Earnings per Share 13-weeks Ended March 29,2026 (dollars in millions) As Reported Depreciation and Amortization Other Adj. EBITDA (5) Supply Chain Transformation (6) Corporate Transformation (7) Other Non-Cash Adj. Other Adj. Adjusted EBITDA (9) Other Adj. Adjusted Net Income Net sales $ 361.3 $ — $ — $ 361.3 $ — $ — $ — $ — $ 361.3 $ — $ 361.3 Cost of goods sold (269.4) 10.9 — (258.5) 7.6 2.5 (1.5) — (249.9) (8.9) (258.8) Gross profit 91.9 10.9 — 102.8 7.6 2.5 (1.5) — 111.4 (1) (8.9) 102.5 Gross margin 25.4 % 30.8 % (1) Selling, general and administrative expenses (85.4) 11.6 — (73.8) 0.3 4.7 5.3 — (63.5) (2) (2.9) (66.4) Gain on sale of assets, net 1.3 — — 1.3 — (1.3) — — — — — Income from operations 7.8 22.5 — 30.3 7.9 5.9 3.8 — 47.9 (11.8) 36.1 Interest expense (10.4) — 10.4 — — — — — — (10.1) (10.1) Other income, net 0.8 — (0.8) (8) — — — — — — 0.1 0.1 Loss (income) before income taxes (1.8) 22.5 9.6 30.3 7.9 5.9 3.8 — 47.9 (21.8) 26.1 Income tax expense 0.6 — (0.6) — — — — — — 4.8 4.8 Net loss (income) $ (2.4) $ 22.5 $ 10.2 $ 30.3 $ 7.9 $ 5.9 $ 3.8 $ — $ 47.9 (3) $ (26.6) $ 21.3 (4) Average Weighted Basic Shares Outstanding on an As-Converted Basis 143.7 Fully Diluted Shares on an As-Converted Basis 143.9 Adjusted Earnings Per Share $ 0.15 13-weeks Ended March 30,2025 (dollars in millions) As Reported Depreciation and Amortization Other Adj. EBITDA (5) Supply Chain Transformation (6) Corporate Transformation (7) Other Non-Cash Adj. Other Adj. Adjusted EBITDA (9) Other Adj. Adjusted Net Income Net sales $ 352.1 $ — $ — $ 352.1 $ — $ — $ — $ — $ 352.1 $ — $ 352.1 Cost of goods sold (269.7) 8.0 — (261.7) 8.3 1.4 1.1 — (250.9) (5.7) (256.6) Gross profit 82.4 8.0 — 90.4 8.3 1.4 1.1 — 101.2 (1) (5.7) 95.5 Gross margin 23.4 % 28.7 % (1) Selling, general and administrative expenses (77.4) 10.7 — (66.7) 0.7 5.3 4.6 — (56.1) (2) (2.2) (58.3) Gain on sale of assets, net 0.7 — — 0.7 (0.3) (0.4) — — — — — Income from operations 5.7 18.7 — 24.4 8.7 6.3 5.7 — 45.1 (7.9) 37.2 Interest expense (11.5) — 11.5 — — — — — — (10.5) (10.5) Loss on debt extinguishment (0.5) — — (0.5) — 0.5 — — — — — Gain on remeasurement of warrant liability 11.0 — — 11.0 — — — (11.0) — — — Other income, net 0.4 — (0.5) (8) (0.1) — 0.1 — — — 0.5 0.5 Income before income taxes 5.1 18.7 11.0 34.8 8.7 6.9 5.7 (11.0) 45.1 (17.9) 27.2 Income tax (benefit) expense (0.6) — 0.6 — — — — — — 4.9 4.9 Net (loss) income $ 5.7 $ 18.7 $ 10.4 $ 34.8 $ 8.7 $ 6.9 $ 5.7 $ (11.0) $ 45.1 (3) $ (22.8) $ 22.3 (4) Average Weighted Basic Shares Outstanding on an As-Converted Basis 141.4 Fully Diluted Shares on an As-Converted Basis 143.2 Adjusted Earnings Per Share $ 0.16 (1) Adjusted Gross Profit and Adjusted Gross Margin were $111.4 million and 30.8%, respectively for the thirteen weeks ended March 29, 2026, and $101.2 million and 28.7% for the thirteen weeks ended March 30, 2025, respectively. (2) Adjusted Selling, General and Administrative was $63.5 million and $56.1 million for the thirteen weeks ended March 29, 2026 and thirteen weeks ended March 30, 2025, respectively. (3) Adjusted EBITDA was $47.9 million and $45.1 million for the thirteen weeks ended March 29, 2026 and thirteen weeks ended March 30, 2025, respectively. (4) Adjusted Net Income was $21.3 million and $22.3 million for the thirteen weeks ended March 29, 2026 and thirteen weeks ended March 30, 2025, respectively. (5) Supply Chain Transformation initiatives representing start-up costs, warehousing and logistical transformations, restructuring and cost reduction activities as part of efforts to enhance long-term profitability, and other manufacturing initiatives that do no reflect the cost of normal business operations. For the thirteen weeks ended March 29, 2026 and thirteen weeks ended March 30, 2025, supply chain transformation initiatives were $7.9 million and $8.7 million, respectively. (6) Corporate Transformation are comprised primarily of costs related to severance and other people restructuring costs, Insignia integration, information technology and data transformation, litigation, gain and losses realized from the sale of distribution rights to IOs, gain and losses on the sale of assets, and consulting and professional fees related to transformation initiatives. For the thirteen weeks ended March 29, 2026 and thirteen weeks ended March 30, 2025, corporate transformation initiatives were $5.9 million and $6.9 million, respectively. (7) Other Non-Cash Adjustments for the thirteen weeks ended March 29, 2026 and thirteen weeks ended March 30, 2025 are comprised primarily of $3.4 million and $3.5 million, respectively, of share-based compensation awards to employees and directors associated with the 2020 Omnibus Equity Incentive Plan; $0.4 million and $2.2 million, respectively, of unrealized gains on mark-to-market adjustments of the Company’s commodity options; amortization of cloud computing, purchase commitments, certain lease adjustments, amortization of tolling assets, and other non-cash adjustments. (8) Other income/(expense), net represents the Company’s non-operating income and expense related to interest income, fees associated with our receivable finance program, and mark-to-market on notional portion of interest rate swap not accounted for under interest rate hedge accounting, expense related to changes in the Company’s tax receivable liability, monetary conversion, other items not related to our operations. (9) Includes $11.8 million and $7.9 million related to Core depreciation and amortization for the thirteen weeks ended March 29, 2026 and thirteen weeks ended March 30, 2025, respectively, interest expense excluding amortization of deferred financing fees, and other income/(expense) excluding the mark-to-market on the notional portion of our interest rate swap not accounted for under interest rate hedge accounting and gains or losses related to changes in the Company’s tax receivable liability. Income tax adjustment is 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 (dollars in millions) March 29, 2026 March 30, 2025 Core D&A - Non-Acquisition-related included in Gross Profit $ 8.9 $ 5.7 Step-Up D&A - Transaction-related included in Gross Profit 2.0 2.3 Depreciation & Amortization - included in Gross Profit 10.9 8.0 Core D&A - Non-Acquisition-related included in SG&A Expense $ 2.9 2.2 Step-Up D&A - Transaction-related included in SG&A Expense 8.7 8.5 Depreciation & Amortization - included in SG&A Expense 11.6 10.7 Depreciation & Amortization - Total $ 22.5 $ 18.7 Core Depreciation and Amortization $ 11.8 $ 7.9 Step-Up Depreciation and Amortization $ 10.7 10.8 Total Depreciation and Amortization $ 22.5 $ 18.7 Trailing Twelve Months (TTM) Adjusted EBITDA FY 2025 2026 (dollars in millions) Q1 Q2 Q3 Q4 FY 2025 Q1 TTM Adjusted EBITDA $ 45.1 $ 48.7 $ 60.3 $ 62.4 $ 216.5 $ 47.9 $ 219.3 Net Debt and Leverage Ratio (dollars in millions) As of March 29, 2026 Term Loan $ 630.3 Real Estate Loan 56.4 ABL Facility 0.2 Equipment Loans and Finance Leases(1) 167.1 Gross Debt(2) 854.0 Cash and Cash Equivalents 73.7 Total Net Debt $ 780.3 Last 52-Weeks Adjusted EBITDA $ 219.3 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) Includes Term Loan B, ABL Facility, Equipment Loans, and Finance Leases. 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 IO loan value in the event of a default scenario, which historically has been uncommon. (3) Based on trailing twelve month Adjusted EBITDA of $219.3 million Adjusted Free Cash Flow 13-Weeks Ended (dollars in millions) March 29, 2026 March 30, 2025 Cash Flow From Operations $ (12.2) $ (20.2) Capital Expenditures (13.8) (38.8) Proceeds from sale of property and equipment 0.1 0.8 Adjusted Free Cash Flow $ (25.9) $ (58.2)
Read more – Utz Brands Reports First Quarter 2026 Results and Reaffirms Full Year GuidanceUtz Brands Reports Fourth Quarter and Full Year 2025 Results
Hanover, PA – February 12, 2026 – 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 28, 2025.
Read more – Utz Brands Reports Fourth Quarter and Full Year 2025 ResultsUtz Brands Reports Third Quarter 2025 Results
Hanover, PA – October 30, 2025 – Utz Brands, Inc. (NYSE: UTZ) (“Utz” or the “Company”), a leading U.S. manufacturer of branded Salty Snacks and a small-cap growth and value Staples equity, today reported financial results for the Company’s third fiscal quarter ended September 28, 2025. 3Q’25 Summary(1) • Net Sales increased 3.4% to $377.8 million • Total Organic Net Sales increased 3.4%; Branded Salty Snacks Organic Net Sales increased 5.8% • Gross Profit Margin decline of 220bps • Adjusted Gross Profit Margin expansion of 210bps • Net Income decreased to $(20.2) million • Adjusted Net Income increased 13.2% to $33.5 million • EBITDA decreased 22.0% to $23.8 million • Adjusted EBITDA increased 11.7% to $60.3 million • Diluted Earnings Per Share decreased to $(0.17) • Adjusted Earnings Per Share increased 9.5% to $0.23 (1) All comparisons for the third quarter of 2025 are to the third quarter of 2024 (ended September 29, 2024). “Utz delivered another quarter of strong performance, demonstrating both top-line and adjusted earnings growth,” said Howard Friedman, Chief Executive Officer of Utz. “We achieved Net Sales growth of 3.4%(1), Branded Salty Snacks Organic Net Sales growth of 5.8%(1), and gained both dollar and volume share in the Salty Snacks category, marking our ninth consecutive quarter of volume share growth. The various productivity initiatives across the organization are significantly contributing to our margin.” “Today, we are also announcing plans to expand our presence in California. With California representing the nation’s largest salty snack market at $4.1 billion, we see substantial white space for our brands. As part of an expanded California strategy, we have acquired select distribution assets in the state to provide us with the infrastructure and capabilities to accelerate our market penetration. We’re confident that these assets will complement our Westward expansion strategy, bringing our portfolio of beloved brands to even more California customers.” “We are raising our 2025 Organic Net Sales outlook again to reflect stronger revenue trends through the third quarter and our confidence in the remainder of the year,” said BK Kelley, EVP and Chief Financial Officer of Utz. “We now expect Organic Net Sales growth of approximately 3%, driven by our advantaged portfolio of brands and expansion geographies. We believe our various working capital initiatives, in combination with Adjusted EBITDA growth, will contribute significantly to our deleveraging efforts as we finish the year. Looking forward, as we move past our multi-year capex investments, free cash flow will be a key priority at Utz. We remain focused on executing our proven playbook: strengthening our Power Four Brands, expanding our geographic footprint, and leveraging our operational efficiencies to deliver sustained top and bottom-line results and long-term shareholder value.” Third Quarter 2025 Results Third quarter Net Sales increased 3.4% to $377.8 million compared to $365.5 million in the prior year period. Organic Net Sales also increased 3.4% year-over-year, driven by a favorable volume/mix contribution of 4.5%. This was partially offset by lower net price realization of (1.1)%. Branded Salty Snacks Organic Net Sales(3) (representing 89% of total Net Sales) increased 5.8% led by our Power Four Brands, offset by a 13.1% decline in Non-Branded & Non-Salty Snacks Organic Net Sales(3), primarily due to a decline in Partner Brands and Dips & Salsas. For the 13-week period ended September 28, 2025, the Company’s Branded Salty Snacks Retail Sales increased 4.8% versus the prior year period, outperforming the 0.2% decline for the Salty Snack category overall(3). The Company’s Retail Volumes increased by 3% compared to a 1.2% decline for the Salty Snack category, and the Company drove Retail Sales and Retail Volume share gains in both its Core and Expansion Geographies(2)(3). The Company’s Power Four Brands of Utz®, On The Border®, Zapp’s® and Boulder Canyon® Retail Sales increased by 7.1%. Gross Profit Margin of 33.6% declined 220bps compared to 35.8% in the prior year period. Adjusted Gross Profit Margin of 41.1% expanded 210bps compared to 39.0% in the prior year period. The increase in Adjusted Gross Profit Margin was driven by productivity savings, which more than offset increased investments to support capacity expansion and supply chain cost inflation. Selling, Distribution, and Administrative Expenses (“SD&A Expenses”) were $123.1 million, or 32.6% of Net Sales, compared to $110.0 million, or 30.1% of Net Sales, in the prior year period. Adjusted SD&A Expenses were $93.8 million, or 24.8% of Net Sales, compared to $88.7 million, or 24.3% of Net Sales, in the prior year period. The increase in both SD&A Expenses and Adjusted SD&A Expenses as a percentage of Net Sales were primarily due to adding capabilities, selling, and delivery costs to support the Company’s geographic expansion and growth initiatives. The Company reported Net (Loss) Income of $(20.2) million compared to Net Income of $0.8 million in the prior year period. Adjusted Net Income in the quarter increased 13.2% to $33.5 million compared to $29.6 million in the prior year period. Adjusted Earnings Per Share increased 9.5% to $0.23 compared to $0.21 in the prior year period. The Adjusted Earnings Per Share increase in the third quarter was the result of higher Adjusted Net Income, driven by an increase in Adjusted EBITDA and lower interest expense, partially offset by an increase in depreciation and amortization. The Company reported EBITDA of $23.8 million compared to EBITDA of $30.5 million in the prior year period. Adjusted EBITDA increased 11.7% to $60.3 million, or 16.0% as a percentage of Net Sales, compared to $54.0 million, or 14.8% as a percentage of Net Sales, in the prior year period. The increase in Adjusted EBITDA was driven by Adjusted Gross Profit Margin expansion, which more than offset the increase in Adjusted SD&A expenses. (1) Versus prior year period. (2) As measured by Circana MULO+ w/convenience. (3) See “Other Defined Terms” for definitions. Balance Sheet and Cash Flow Highlights • As of September 28, 2025 ◦ Total liquidity of $197.7 million, consisting of cash on hand of $57.7 million and $140.0 million available under the Company’s revolving credit facility. ◦ Net debt of $807.9 million resulting in a Net Leverage Ratio of 3.9x based on trailing twelve months Normalized Adjusted EBITDA of $207.2 million. • For the thirty-nine weeks ended September 28, 2025 ◦ Cash flow provided by operations was $47.3 million. ◦ Capital expenditures were $89.2 million, and dividends and distributions paid were $28.8 million. Acquisition of California DSD Network As part of our California expansion strategy, Utz is announcing the acquisition of Insignia International’s (“Insignia”) direct store delivery (“DSD”) distribution assets. The transaction includes DSD routes across California and the Midwest, along with select related assets. This acquisition accelerates Utz’s expansion in California, a key growth geography that represents the largest U.S. market for salty snacks with $4.1 billion in retail sales. The Company currently generates approximately $79 million in retail sales across California, representing 1.9% market share. Expanding distribution in California creates a significant opportunity for growth when compared to our current Expansion Geography average of 3.0% and our Core Geography average of 6.6%.The financial impact of this acquisition is included in the Company’s fiscal 2025 outlook. Fiscal Year 2025 Outlook The Company is updating its 2025 fiscal year outlook to reflect stronger top-line trends, while reaffirming other guidance. The Company now expects: • Organic Net Sales growth of approximately 3%, compared to the prior expectation of 2.5% or better. Utz expects Organic Net Sales growth will be led by Branded Salty Snacks Organic Net Sales growth, particularly the Power Four Brands. The Company is re-affirming: • Adjusted EBITDA growth of 7% to 10%. The Company expects Adjusted EBITDA Margin expansion of approximately 100bps, which is consistent with the Company’s previously provided guidance. Utz expects Adjusted EBITDA Margin expansion will be led by Adjusted Gross Profit Margin expansion fueled by strong productivity cost savings and improved product mix; and • Adjusted Earnings Per Share growth of 7% to 10% Key assumptions for the Company’s fiscal 2025 outlook include the following, all consistent with the most recently provided outlook: • 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 $46 million; • Capital Expenditures of approximately $100 million, with the majority focused on building increased supply chain network capabilities and delivering accelerated productivity savings; and • Net Leverage Ratio approaching 3x at fiscal year-end 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 third 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 9:30 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 over 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 Trevor Martin Utz Brands, Inc. tmartin@utzsnacks.com Media Contact Colleen Farley Utz Brands, Inc. cfarley@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 “may,” “can,” “should,” “will,” “estimate,” “plan,” “project,” "forecast,” "intend,” "expect,” “anticipate,” “believe,” “seek,” “target” “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 expectations regarding its level of indebtedness and associated interest expense impacts; 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 tariffs, 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: our operation in an industry with high levels of competition and consolidation; our reliance on key customers and ability to obtain favorable contractual terms and protections with customers; changes in demand for our products driven by changes in consumer preferences and tastes or our ability to innovate or market our products effectively; changes in consumers’ loyalty to our brands due to factors beyond our control; impacts on our reputation caused by concerns relating to the quality and safety of our products, ingredients, packaging, or processing techniques; the potential that our products might need to be recalled if they become adulterated or are mislabeled; the loss of retail shelf space and disruption to sales of food products due to changes in retail distribution arrangements; our reliance on third parties to effectively operate both our direct-to-warehouse delivery system and our direct-store-delivery network system; the evolution of e-commerce retailers and sales channels; disruption to our manufacturing operations, supply chain, or distribution channels; the effects of inflation, including rising labor costs; shortages of raw materials, energy, water, and other supplies; changes in the legal and regulatory environments in which we operate, including with respect to tax legislation such as the One Big Beautiful Bill Act; potential liabilities and costs from litigation, claims, legal or regulatory proceedings, inquiries, or investigations into our business; potential adverse effects or unintended consequences related to the implementation of our growth strategy; our ability to successfully identify and execute acquisitions or dispositions and to manage integration or carve out issues following such transactions; the geographic concentration of our markets; our ability to attract and retain highly skilled personnel (including risks associated with our recently announced executive leadership transition); impairment in the carrying value of goodwill or other intangible assets; our ability to protect our intellectual property rights; disruptions, failures, or security breaches of our information technology infrastructure; climate change or legal, regulatory or market measures to address climate change; our exposure to liabilities, claims or new laws or regulations with respect to environmental matters; the increasing focus and opposing views, legislation and expectations with respect to ESG initiatives; restrictions on our operations imposed by covenants in our debt instruments; our exposure to changes in interest rates; adverse impacts from disruptions in the worldwide financial markets, including on our ability to obtain new credit; our exposure to any new or increased income or product taxes; pandemics, epidemics or other disease outbreaks; our exposure to changes to trade policies and tariff and import/export regulations by the United States and other jurisdictions; potential volatility in our Class A Common Stock caused by resales thereof; our dependence on distributions made by our subsidiaries; our payment obligations pursuant to a tax receivable agreement, which in certain cases may exceed the tax benefits we realize or be accelerated; provisions of Delaware law and our governing documents and other agreements that could limit the ability of stockholders to take certain actions or delay or discourage takeover attempts that stockholders may consider favorable; our exclusive forum provisions in our governing documents; the influence of certain significant stockholders and members of Utz Brands Holdings, LLC, whose interests may differ from those of our other stockholders; and other risks and uncertainties set forth in Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K for the year ended December 29, 2024 and in the other reports we file with the U.S. Securities and Exchange Commission from time to time. 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 and identify trends in our underlying operating results, and it 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 management judgment 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 Selling, Distribution, and Administrative Expense Margin) • Adjusted Net Income • Adjusted Earnings Per Share • Adjusted Earnings Before Taxes • EBITDA • Adjusted EBITDA • Adjusted EBITDA as % of Net Sales (Adjusted EBITDA Margin) • Normalized Adjusted EBITDA • Effective Normalized Tax Rate • Net Leverage Ratio • Adjusted COGS • Branded Salty Snacks Organic Net Sales • Non-Branded & Non-Salty Snacks Organic Net Sales Organic Net Sales is defined as Net Sales excluding the impacts of acquisitions, divestitures and independent operator (“IO”) route conversions that took place after 1Q’2024. 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. 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. Adjusted Net Income is defined as Net Income excluding Depreciation and Amortization expense, a non-cash item, related to fair value adjustments on property, plant, and equipment, and definite-lived intangibles relating to business combinations recorded in prior periods. In addition, Adjusted Net Income excludes 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 Taxes is defined as Adjusted Net Income before normalized GAAP basis tax expense. Adjusted Earnings Per Share is defined as Adjusted Net Income 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 of the Company are converted to Class A Common Stock of the Company. 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. In this release, we also provide Adjusted EBITDA as a percentage of Net Sales as an additional measure for readers to evaluate our Adjusted EBITDA Margin. 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 Taxes. Net Leverage Ratio is defined as trailing twelve month 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 consist of 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 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 September 28, 2025 and September 29, 2024 (In millions, except share information) (Unaudited) Thirteen weeks ended September 28, 2025 Thirteen weeks ended September 29, 2024 Net sales $ 377.8 $ 365.5 Cost of goods sold 250.9 234.5 Gross profit 126.9 131.0 Selling, distribution, and administrative expenses Selling and distribution 88.4 80.1 Administrative 34.7 29.9 Total selling, distribution, and administrative expenses 123.1 110.0 Loss on sale of assets, net (0.5) (1.5) Income from operations 3.3 19.5 Other loss, net Interest expense (10.6) (12.6) Other income 1.2 0.5 Loss on remeasurement of warrant liability (0.7) (6.4) Other loss, net (10.1) (18.5) (Loss) Income before taxes (6.8) 1.0 Income tax expense 13.4 0.2 Net (loss) income (20.2) 0.8 Net loss (income) attributable to noncontrolling interest 5.5 (3.0) Net loss attributable to controlling interest $ (14.7) $ (2.2) Income per Class A Common stock: (in dollars) Basic $ (0.17) $ (0.03) Diluted $ (0.17) $ (0.03) Weighted-average shares of Class A Common stock outstanding Basic 86,958,867 82,445,064 Diluted 86,958,867 82,445,064 Net (loss) income $ (20.2) $ 0.8 Other comprehensive loss: Change in fair value of interest rate swap (2.5) (15.5) Comprehensive loss (22.7) (14.7) Net comprehensive loss attributable to noncontrolling interest 6.5 3.4 Net comprehensive loss attributable to controlling interest $ (16.2) $ (11.3) Utz Brands, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME For the thirty-nine weeks ended September 28, 2025 and September 29, 2024 (In millions, except share information) (Unaudited) Thirty-nine weeks ended September 28, 2025 Thirty-nine weeks ended September 29, 2024 Net sales $ 1,096.6 $ 1,068.2 Cost of goods sold 724.7 692.9 Gross profit 371.9 375.3 Selling, distribution, and administrative expenses Selling and distribution 251.5 227.5 Administrative 104.3 96.5 Total selling, distribution, and administrative expenses 355.8 324.0 (Loss) gain on sale of assets, net (0.7) 0.4 Income from operations 15.4 51.7 Other (loss) income, net Gain on sale of business — 44.0 Interest expense (33.5) (36.6) Loss on debt extinguishment (0.5) (1.3) Other income 1.0 1.5 Gain (loss) on remeasurement of warrant liability 22.8 (5.3) Other (loss) income, net (10.2) 2.3 Income before taxes 5.2 54.0 Income tax expense 9.6 25.4 Net (loss) income (4.4) 28.6 Net loss (income) attributable to noncontrolling interest 7.7 (15.0) Net income attributable to controlling interest $ 3.3 $ 13.6 Income per Class A Common stock: (in dollars) Basic $ 0.04 $ 0.17 Diluted $ 0.04 $ 0.16 Weighted-average shares of Class A Common stock outstanding Basic 86,266,184 81,763,848 Diluted 87,795,006 84,948,754 Net (loss) income $ (4.4) $ 28.6 Other comprehensive (loss) income: Change in fair value of interest rate swap (12.7) (13.0) Comprehensive (loss) income (17.1) 15.6 Net comprehensive loss (income) attributable to noncontrolling interest 12.7 (9.6) Net comprehensive (loss) income attributable to controlling interest $ (4.4) $ 6.0 Utz Brands, Inc. CONSOLIDATED BALANCE SHEETS September 28, 2025 and December 29, 2024 (In millions, except per share information) As of September 28, 2025 As of December 29, 2024 (Unaudited) ASSETS Current Assets Cash and cash equivalents $ 57.7 $ 56.1 Accounts receivable, less allowance of $3.6 and $3.3, respectively 133.3 119.9 Inventories 112.9 101.4 Prepaid expenses and other assets 24.4 35.3 Current portion of notes receivable 5.1 4.6 Total current assets 333.4 317.3 Non-current Assets Assets held for sale 6.7 — Property, plant and equipment, net 396.5 345.2 Goodwill 870.7 870.7 Intangible assets, net 973.0 996.5 Non-current portion of notes receivable 10.5 9.2 Other assets 185.8 189.5 Total non-current assets 2,443.2 2,411.1 Total assets $ 2,776.6 $ 2,728.4 LIABILITIES AND EQUITY Current Liabilities Current portion of term debt $ 25.9 $ 16.1 Current portion of other notes payable 7.2 6.9 Accounts payable 172.2 151.0 Accrued expenses and other 68.8 78.3 Current portion of warrant liability — 33.0 Total current liabilities 274.1 285.3 Non-current portion of term debt and revolving credit facility 824.8 752.5 Non-current portion of other notes payable 15.8 15.0 Non-current accrued expenses and other 170.0 164.2 Deferred tax liability 129.8 123.7 Total non-current liabilities 1,140.4 1,055.4 Total liabilities 1,414.5 1,340.7 Commitments and Contingencies Equity Shares of Class A Common Stock, $0.0001 par value; 1,000,000,000 shares authorized; 87,509,774 and 83,537,542 shares issued and outstanding as of September 28, 2025 and December 29, 2024, respectively — — Shares of Class V Common Stock, $0.0001 par value; 61,249,000 shares authorized; 55,349,000 and 57,349,000 shares issued and outstanding as of September 28, 2025 and December 29, 2024, respectively — — Additional paid-in capital 1,032.8 988.5 Accumulated deficit (318.4) (304.7) Accumulated other comprehensive income 10.9 18.6 Total stockholders' equity 725.3 702.4 Noncontrolling interest 636.8 685.3 Total equity 1,362.1 1,387.7 Total liabilities and equity $ 2,776.6 $ 2,728.4 Utz Brands, Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS For the thirty-nine weeks ended September 28, 2025 and September 29, 2024 (In millions) (Unaudited) Thirty-nine weeks ended September 28, 2025 Thirty-nine weeks ended September 29, 2024 Cash flows from operating activities Net (loss) income $ (4.4) $ 28.6 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Impairment and other charges 0.6 — Depreciation and amortization 60.4 53.4 Gain on sale of business — (44.0) (Gain) loss on remeasurement of warrant liability (22.8) 5.3 Loss (gain) on sale of assets 0.7 (0.4) Loss on debt extinguishment 0.5 1.3 Share-based compensation 12.4 13.8 Deferred taxes 6.1 4.1 Deferred financing costs 1.0 2.8 Changes in assets and liabilities: Accounts receivable, net (13.4) (6.3) Inventories (11.5) (4.8) Prepaid expenses and other assets 2.5 (23.7) Accounts payable and accrued expenses and other 15.2 21.9 Net cash provided by operating activities 47.3 52.0 Cash flows from investing activities Purchases of property and equipment (89.2) (60.9) Purchases of intangibles — (9.2) Proceeds from sale of property and equipment 0.9 26.1 Proceeds from sale of business — 167.5 Proceeds from sale of routes 17.7 19.6 Proceeds from the sale of IO notes 5.4 3.6 Purchases of IO routes and other changes in note receivables (30.0) (30.6) Net cash (used in) provided by investing activities (95.2) 116.1 Cash flows from financing activities Borrowings on line of credit 177.0 92.0 Repayments on line of credit (156.5) (69.6) Borrowings on term debt and notes payable 81.4 25.3 Repayments on term debt and notes payable (19.7) (170.0) Payment of debt issuance cost (1.7) (0.7) Payments of tax withholding requirements for employee stock awards (2.2) (1.4) Dividends paid (16.9) (15.9) Distribution to noncontrolling interest (11.9) (14.9) Net cash provided by (used in) financing activities 49.5 (155.2) Net increase in cash and cash equivalents 1.6 12.9 Cash and cash equivalents at beginning of period 56.1 52.0 Cash and cash equivalents at end of period $ 57.7 $ 64.9 Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures (Amounts may not sum due to rounding) Net Sales and Organic Net Sales 13-Weeks Ended 39-Weeks Ended (dollars in millions) September 28, 2025 September 29, 2024 Change September 28, 2025 September 29, 2024 Change Net Sales as Reported $ 377.8 $ 365.5 3.4 % $ 1,096.6 $ 1,068.2 2.7 % Impact of Dispositions — — — (4.3) Organic Net Sales (1) $ 377.8 $ 365.5 3.4 % $ 1,096.6 $ 1,063.9 3.1 % (1) Organic Net Sales excludes the Impact of Dispositions. Net Sales Growth Drivers 13-Weeks Ended September 28, 2025 39-Weeks Ended September 28, 2025 (% 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 $ 337.4 $ 40.4 $ 377.8 $ 965.4 $ 131.2 $ 1,096.6 Net Sales as Reported Growth Versus Prior Year 5.8 % (13.1) % 3.4 % 5.4 % (13.8) % 2.7 % Volume/mix 7.0 % (12.7) % 4.5 % 7.4 % (10.5) % 4.8 % Pricing (1.2) (0.4) (1.1) (2.0) (0.5) (1.7) Organic Net Sales Growth Versus Prior Year 5.8 % (13.1) % 3.4 % 5.4 % (11.0) % 3.1 % Divestiture — — — — (2.8) (0.4) Net Sales as Reported Growth Versus Prior Year 5.8 % (13.1) % 3.4 % 5.4 % (13.8) % 2.7 % (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 39-Weeks Ended (dollars in millions) September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024 Gross Profit $ 126.9 $ 131.0 $ 371.9 $ 375.3 Gross Profit as a % of Net Sales 33.6 % 35.8 % 33.9 % 35.1 % Depreciation and Amortization 8.5 6.6 25.5 20.5 Non-Cash and Other Cash Adjustments (1) 19.8 5.1 38.4 9.7 Adjusted Gross Profit $ 155.2 $ 142.7 $ 435.8 $ 405.5 Adjusted Gross Profit as a % of Net Sales 41.1 % 39.0 % 39.7 % 38.0 % (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 transformation initiatives, and financing-related costs. Adjusted Selling, Distribution, and Administrative Expense 13-Weeks Ended 39-Weeks Ended (dollars in millions) September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024 Selling, Distribution, and Administrative Expense $ 123.1 $ 110.0 $ 355.8 $ 324.0 Less: Depreciation and Amortization in SD&A Expense 11.9 10.9 34.9 32.9 Non-Cash and Other Cash Adjustments (1) 17.4 10.4 40.4 32.5 Adjusted Selling, Distribution, and Administrative Expense $ 93.8 $ 88.7 $ 280.5 $ 258.6 Adjusted SD&A Expense as a % of Net Sales 24.8 % 24.3 % 25.6 % 24.2 % (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 transformation initiatives, and financing-related costs. Adjusted Net Income 13-Weeks Ended 39-Weeks Ended (dollars in millions, except per share data) September 28, 2025 September 29, 2024 % Change September 28, 2025 September 29, 2024 % Change Net (loss) Income $ (20.2) $ 0.8 (2625.0) % $ (4.4) $ 28.6 (115.4) % Income Tax Expense 13.4 0.2 9.6 25.4 (Loss) lncome Before Taxes (6.8) 1.0 5.2 54.0 Deferred Financing Fees 0.3 0.3 1.0 2.8 Acquisition Step-Up Depreciation and Amortization 10.8 10.7 32.9 33.0 Certain Non-Cash Adjustments 7.3 6.2 19.4 15.1 Acquisitions, Divestitures and Investments 8.1 2.8 25.1 (34.5) Business Transformation Initiatives 20.1 8.1 34.6 18.4 Financing-Related Costs 0.3 — 1.1 0.3 Loss (gain) on Remeasurement of Warrant Liability 0.7 6.4 (22.8) 5.3 Other Non-Cash and/or Cash Adjustments (1) 47.6 34.5 91.3 40.4 Adjusted Earnings before Taxes 40.8 35.5 96.5 94.4 Taxes on Earnings as Reported (13.4) (0.2) (9.6) (25.4) Income Tax Adjustments(2) 6.1 (5.7) (7.4) 8.9 Adjusted Taxes on Earnings (7.3) (5.9) (17.0) (16.5) Adjusted Net Income $ 33.5 $ 29.6 13.2 % $ 79.5 $ 77.9 2.1 % Average Weighted Basic Shares Outstanding on an As-Converted Basis 142.3 140.9 141.7 140.8 Fully Diluted Shares on an As-Converted Basis 143.6 144.1 143.2 144.0 Adjusted Earnings Per Share $ 0.23 $ 0.21 9.5 % $ 0.56 $ 0.54 3.7 % (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, acquisitions, divestitures, and investments, business transformation initiatives, and financing-related costs. (2) Income Tax Adjustment calculated as 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 Income (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 39-Weeks Ended (dollars in millions) September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024 Core D&A - Non-Acquisition-related included in Gross Profit $ 6.3 $ 4.5 $ 18.6 $ 13.7 Step-Up D&A - Transaction-related included in Gross Profit 2.2 2.1 6.9 6.8 Depreciation & Amortization - included in Gross Profit 8.5 6.6 25.5 20.5 Core D&A - Non-Acquisition-related included in SD&A Expense $ 3.3 2.3 $ 8.9 6.7 Step-Up D&A - Transaction-related included in SD&A Expense 8.6 8.6 26.0 26.2 Depreciation & Amortization - included in SD&A Expense 11.9 10.9 34.9 32.9 Depreciation & Amortization - Total $ 20.4 $ 17.5 $ 60.4 $ 53.4 Core Depreciation and Amortization $ 9.6 $ 6.8 $ 27.5 $ 20.4 Step-Up Depreciation and Amortization $ 10.8 10.7 $ 32.9 33.0 Total Depreciation and Amortization $ 20.4 $ 17.5 $ 60.4 $ 53.4 EBITDA and Adjusted EBITDA 13-Weeks Ended 39-Weeks Ended (dollars in millions) September 28, 2025 September 29, 2024 % Change September 28, 2025 September 29, 2024 % Change Net (Loss) Income $ (20.2) $ 0.8 (2625.0) % $ (4.4) $ 28.6 (115.4) % Plus non-GAAP adjustments: Income Tax Expense 13.4 0.2 9.6 25.4 Depreciation and Amortization 20.4 17.5 60.4 53.4 Interest Expense, Net 10.6 12.6 33.5 36.6 Interest Income (IO loans)(1) (0.4) (0.6) (1.4) (1.5) EBITDA 23.8 30.5 (22.0) % 97.7 142.5 (31.4) % Certain Non-Cash Adjustments(2) 7.3 6.2 18.4 15.1 Acquisitions, Divestitures and Investments(3) 8.1 2.8 25.1 (34.5) Business Transformation Initiatives(4) 20.1 8.1 34.6 18.4 Financing-Related Costs(5) 0.3 — 1.1 0.3 Loss (gain) on Remeasurement of Warrant Liability(6) 0.7 6.4 (22.8) 5.3 Adjusted EBITDA $ 60.3 $ 54.0 11.7 % $ 154.1 $ 147.1 4.8 % Net (loss) income as a % of Net Sales (5.3) % 0.2 % (550) bps (0.4) % 2.7 % (310) bps Adjusted EBITDA as a % of Net Sales 16.0 % 14.8 % 120 bps 14.1 % 13.8 % 30 bps (1) Interest Income (IO loans) refers to interest income that we earn from IO notes receivable that has resulted from our initiatives to transition from RSP distribution to IO distribution ("Business Transformation Initiatives"). There is a notes payable recorded that mirrors most of the 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 $4.6 million and $4.7 million of share-based compensation expense for awards to employees and directors, and compensation expense associated with the Omnibus Equity Incentive Plan (the "OEIP") for the thirteen weeks ended September 28, 2025 and September 29, 2024, respectively. The Company incurred $10.8 million and $13.1 million of share-based compensation expense for awards to employees and directors, and compensation expense associated with the OEIP for the thirty-nine weeks ended September 28, 2025 and September 29, 2024, respectively. Loss on impairment - The Company recorded an impairment charge of $0.6 million during the thirty-nine weeks ended September 28, 2025. 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 commitments and other adjustments, including cloud computing amortization, was expense of $2.7 million and $1.5 million for the thirteen weeks ended September 28, 2025 and September 29, 2024, respectively. The adjustment related to purchase commitments and other adjustments, including cloud computing amortization, was expense of $7.0 million and $2.0 million for the thirty-nine weeks ended September 28, 2025 and September 29, 2024, respectively. (3) Acquisitions, Divestitures and Investments – This is comprised of start-up costs, consulting, transaction services, and legal fees incurred for acquisitions and certain potential acquisitions, in addition to expenses associated with integrating recent acquisitions and costs related to divestitures. These acquisitions and divestitures include assets related to our supply chain consolidation and transformation. Such expenses were $10.0 million and $2.8 million for the thirteen weeks ended September 28, 2025 and September 29, 2024, respectively; and $26.0 million and $9.5 million for the thirty-nine weeks ended September 28, 2025 and September 29, 2024, respectively. Also included in the thirteen weeks ended and thirty-nine weeks ended September 28, 2025 was income of $1.9 million and $0.9 million, respectively, related to the change in the liability associated with the Tax Receivable Agreement. Also, included in the thirty-nine weeks ended September 29, 2024 was a gain of $44.0 million related to the Good Health and R.W. Garcia Sale. (4) Business Transformation Initiatives – This adjustment is related to start-up costs, consulting, professional and legal fees incurred for specific initiatives and structural changes to the business that do not reflect the cost of normal business operations. This adjustment also includes initiatives and structural changes related to our supply chain transformation. 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 resource planning system transition costs fall into this category. The Company incurred such costs of $20.1 million and $8.1 million for the thirteen weeks ended September 28, 2025 and September 29, 2024, respectively; and $34.6 million and $18.4 million for the thirty-nine weeks ended September 28, 2025 and September 29, 2024, respectively. (5) Financing-Related Costs – These costs include adjustments for various items related to raising debt and equity capital or debt extinguishment costs. (6) Gains on Remeasurement of Warrant Liability - These 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 2024 FY 2025 (dollars in millions) Q1 Q2 Q3 Q4 FY 2024 Q1 Q2 Q3 TTM Adjusted EBITDA $ 43.4 $ 49.7 $ 54.0 $ 53.1 $ 200.2 $ 45.1 $ 48.7 $ 60.3 $ 207.2 Pre-Acquisition Adjusted EBITDA — — — — — — — — — Normalized Adjusted EBITDA $ 43.4 $ 49.7 $ 54.0 $ 53.1 $ 200.2 $ 45.1 $ 48.7 $ 60.3 $ 207.2 Net Debt and Leverage Ratio (dollars in millions) As of September 28, 2025 Term Loan $ 630.3 Real Estate Loan 57.7 ABL Facility 20.7 Equipment Loans and Finance Leases(1) 156.9 Gross Debt(2) 865.6 Cash and Cash Equivalents 57.7 Total Net Debt $ 807.9 Last 52-Weeks Normalized Adjusted EBITDA $ 207.2 (1) Equipment loans and finance leases include leases accounted for as finance leases under US GAAP and loans for equipment. (2) Includes Term Loan B, ABL Facility, Equipment Loans, and Finance Leases. 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 IO loan value in the event of a default scenario, which historically has been uncommon. (3) Based on trailing twelve month Normalized Adjusted EBITDA of $207.2 million.
Read more – Utz Brands Reports Third Quarter 2025 Results
Utz Brands Reports Second Quarter 2025 Results
Hanover, PA – July 31, 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 second fiscal quarter ended June 29, 2025. 2Q’25 Summary(1) • Net Sales increased 2.9% to $366.7 million • Total Organic Net Sales increased 2.9%; Branded Salty Snacks increased 5.4% • Gross Profit Margin decline of 40bps • Adjusted Gross Profit Margin expansion of 220bps • Net Income decreased 60.2% to $10.1 million • Adjusted Net Income decreased 14.2% to $23.6 million • Adjusted EBITDA decreased 2.0% to $48.7 million • Diluted Earnings Per Share decreased 47.8% to $0.12 • Adjusted Earnings Per Share decreased 10.5% to $0.17 (1) All comparisons for the second quarter of 2025 are to the second quarter of 2024 (ended June 30, 2024). “I am pleased with our strong performance in the second quarter, with Organic Net Sales growth of nearly 3%(1). Our Branded Salty Snacks portfolio is accelerating, with 5.4% growth in the quarter(1). We gained value and volume shares in both our Core and Expansion Geographies(3). Our proactive approach to cost management and operational excellence has enabled us to achieve significant Adjusted Gross Profit Margin expansion,” said Howard Friedman, Chief Executive Officer of Utz. Mr. Friedman continued, “We’re encouraged by our summer sales performance thus far, as we successfully capitalize on seasonal demand and snacking occasions. Our strong performance illustrates our ability to deliver growth independent of the category in a rational competitive environment. Looking ahead to the remainder of 2025, we expect our strong productivity cost savings will continue to provide us with the flexibility to invest in our brands, while expanding profit margins. With geographic expansion driving much of our growth strategy, we remain on track to deliver solid results in 2025 and continue to create long-term shareholder value.” “We are raising our 2025 Organic Net Sales outlook to reflect stronger revenue trends through the first half and our confidence in the growth drivers ahead,” said Bill Kelley, EVP and Chief Financial Officer of Utz. “We now expect Organic Net Sales growth of 2.5% or better, driven by our advantaged portfolio of brands and expansion geographies. We are also tightening our Adjusted EBITDA range to 7% to 10% growth, reflecting our confidence in the significant productivity programs ramping in the second half. We are lowering our Adjusted Earnings Per Share guidance to 7 to 10% growth due to higher interest and depreciation & amortization linked to our accelerated capex investments. We believe these strategic investments in our manufacturing network and automation capabilities will position us for sustained Adjusted EBITDA margin expansion and continued geographic expansion in 2026 and beyond.” Second Quarter 2025 Results Second quarter Net Sales increased 2.9% to $366.7 million compared to $356.2 million in the prior year period. Organic Net Sales also increased 2.9% year-over-year, driven by a favorable volume/mix contribution of 3.9%, or 3.1% excluding a 0.8 percentage point benefit from bonus packs in April. This was partially offset by lower net price realization of (1.0)%, which included a (0.8) percentage point impact from bonus packs and other net price impacts of (0.2) percentage points. The net impact on second quarter sales from bonus packs was neutral. Branded Salty Snacks Organic Net Sales(3) (representing 88% of total Net Sales) increased 5.4% led by our Power Four Brands, offset by an 11.8% decline in Non- Branded & Non-Salty Snacks Organic Net Sales(3), primarily due to Partner Brands and Dips & Salsas. For the 13-week period ended June 29, 2025, the Company’s Branded Salty Snacks Retail Sales increased 3.3% versus the prior year period compared to a 1.5% decline for the Salty Snack category overall(3). The Company’s Retail Volumes increased by 4.3% compared to a 1.5% decline for the Salty Snack category, and the Company drove volume share gains in both its Core and Expansion geographies(2)(3) . The Company’s Power Four Brands of Utz®, On The Border®, Zapp’s® and Boulder Canyon® Retail Sales increased by 5.7%. Gross Profit Margin of 34.6% declined 40bps compared to 35.0% in the prior year period. Adjusted Gross Profit Margin of 39.8% expanded 220bps compared to 37.6% in the prior year period. The increase was driven by productivity savings, which more than offset increased investments to support capacity expansion and growth. Selling, Distribution, and Administrative Expenses (“SD&A Expenses”) were $119.5 million, or 32.6% of Net Sales, compared to $104.6 million, or 29.4% of Net Sales, in the prior year period. Adjusted SD&A Expenses were $97.3 million, or 26.5% of Net Sales, compared to $84.5 million, or 23.7% of Net Sales, in the prior year period. The increase as a percentage of Net Sales was primarily due to adding capabilities, selling, and delivery costs to support the Company’s geographic expansion and growth initiatives. The Company reported Net Income of $10.1 million compared to Net Income of $25.4 million in the prior year period. Adjusted Net Income in the quarter decreased 14.2% to $23.6 million compared to $27.5 million in the prior year period. Adjusted Earnings Per Share decreased 10.5% to $0.17 compared to $0.19 in the prior year period. The Adjusted Earnings Per Share decline in the second quarter was the result of higher SD&A expenses, higher depreciation and amortization, and higher interest expense. Adjusted EBITDA decreased 2.0% to $48.7 million, or 13.3% as a percentage of Net Sales, compared to $49.7 million, or 14.0% as a percentage of Net Sales, in the prior year period. The decline in Adjusted EBITDA was driven by increased SD&A expenses, which more than offset the positive impact of Adjusted Gross Profit Margin expansion. (1) Versus prior year period. (2) As measured by Circana MULO+ w/convenience. (3) See “Other Defined Terms” for definitions. Balance Sheet and Cash Flow Highlights • As of June 29, 2025 ◦ Total liquidity of $170.9 million, consisting of cash on hand of $54.6 million and $116.3 million available under the Company’s revolving credit facility. ◦ Net debt of $826.3 million resulting in a Net Leverage Ratio of 4.1x based on trailing twelve months Normalized Adjusted EBITDA of $200.9 million. • For the twenty-six weeks ended June 29, 2025 ◦ Cash flow used in operations was $3.9 million, which reflects the seasonal use of working capital. ◦ Capital expenditures were $65.7 million, and dividends and distributions paid were $20.1 million. Supply Chain Transformation Plan Update As part of Utz's ongoing supply chain transformation, the Company is announcing the strategic decision to consolidate its manufacturing footprint from eight primary(1) plants to seven, with the closure of its Grand Rapids, Michigan manufacturing facility. This decision is a key component of the Company’s long-term strategic roadmap, and is expected to generate cost savings during the second half of 2025. These savings are part of Utz’s previously communicated target of approximately 6% productivity savings as a percentage of Adjusted COGS in fiscal year 2025. This transition is planned to begin in August and be completed by early 2026. The consolidation should enable the Company to allocate more volume to its larger, more efficient facilities, while driving fixed cost leverage and enhanced automation capabilities across its remaining network. In addition to the expected cost savings, the Company expects the optimized footprint to support its ongoing geographic expansion. “The decision is a reflection of our commitment to operational excellence and ongoing transformation,” said Friedman. “While these types of decisions are never easy, they are necessary steps to streamline our operations and strengthen our supply chain for the long-term. We are deeply grateful for the contributions of our Grand Rapids team and are committed to supporting them through this transition.” All impacted associates will be encouraged to apply for opportunities at other Utz facilities, and provided transition assistance including on-site job fairs and severance pay if they cannot relocate. (1) Excludes Plant 1 in Hanover given limited production. Fiscal Year 2025 Outlook The Company is updating its 2025 fiscal year outlook to reflect stronger top-line trends and higher Adjusted EBITDA. The company is lowering expected Adjusted EPS growth due to higher capital expenditures, depreciation and amortization, and interest expense. The Company now expects: • Organic Net Sales growth of 2.5% or better, compared to the prior expectation of low-single digits. We expect Organic Net Sales growth will be led by Branded Salty Snacks growth, particularly the Power Four Brands, and less decline in Non-Branded & Non-Salty Snacks; • Adjusted EBITDA growth of 7% to 10%, compared to the prior expectation of 6% to 10%. The Company expects Adjusted EBITDA Margin expansion of approximately 100bps, which is consistent with the Company’s previously provided guidance. We expect Adjusted EBITDA Margin expansion will be led by Adjusted Gross Profit Margin expansion fueled by strong productivity cost savings and improved product mix; and • Adjusted Earnings Per Share growth of 7% to 10%, compared to the prior expectation of 10% to 15%, due to higher interest expense and depreciation and amortization linked to accelerated capital expenditures related to the Company’s network optimization and facility consolidation efforts. Key assumptions for the Company’s fiscal 2025 outlook include: • An effective tax rate (normalized GAAP basis tax expense, which excludes one-time items) in the range of 17% to 19%, consistent with the Company’s previously provided expectation; • Interest Expense of approximately $46 million, compared to the prior expectation of $43 million; • Capital Expenditures are now expected to be approximately $100 million, the high end of the previously provided range of $90 to $100 million, with the majority focused on building increased supply chain network capabilities 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 second 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 9:30 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 over 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. 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 “may,” “can,” “should,” “will,” “estimate,” “plan,” “project,” "forecast,” "intend,” "expect,” “anticipate,” “believe,” “seek,” “target” “goal”, “on track””. 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 expectations regarding its level of indebtedness and associated interest expense impacts; 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 tariffs, 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: our operation in an industry with high levels of competition and consolidation; our reliance on key customers and ability to obtain favorable contractual terms and protections with customers; changes in demand for our products driven by changes in consumer preferences and tastes or our ability to innovate or market our products effectively; changes in consumers’ loyalty to our brands due to factors beyond our control; impacts on our reputation caused by concerns relating to the quality and safety of our products, ingredients, packaging, or processing techniques; the potential that our products might need to be recalled if they become adulterated or are mislabeled; the loss of retail shelf space and disruption to sales of food products due to changes in retail distribution arrangements; our reliance on third parties to effectively operate both our direct-to-warehouse delivery system and our direct-store-delivery network system; the evolution of e-commerce retailers and sales channels; disruption to our manufacturing operations, supply chain, or distribution channels; the effects of inflation, including rising labor costs; shortages of raw materials, energy, water, and other supplies; changes in the legal and regulatory environments in which we operate, including with respect to tax legislation such as the One Big Beautiful Bill Act; potential liabilities and costs from litigation, claims, legal or regulatory proceedings, inquiries, or investigations into our business; potential adverse effects or unintended consequences related to the implementation of our growth strategy; our ability to successfully identify and execute acquisitions or dispositions and to manage integration or carve out issues following such transactions; the geographic concentration of our markets; our ability to attract and retain highly skilled personnel (including risks associated with our recently announced executive leadership transition); impairment in the carrying value of goodwill or other intangible assets; our ability to protect our intellectual property rights; disruptions, failures, or security breaches of our information technology infrastructure; climate change or legal, regulatory or market measures to address climate change; our exposure to liabilities, claims or new laws or regulations with respect to environmental matters; the increasing focus and opposing views, legislation and expectations with respect to ESG initiatives; restrictions on our operations imposed by covenants in our debt instruments; our exposure to changes in interest rates; adverse impacts from disruptions in the worldwide financial markets, including on our ability to obtain new credit; our exposure to any new or increased income or product taxes; pandemics, epidemics or other disease outbreaks; our exposure to changes to trade policies and tariff and import/export regulations by the United States and other jurisdictions; potential volatility in our Class A Common Stock caused by resales thereof; our dependence on distributions made by our subsidiaries; our payment obligations pursuant to a tax receivable agreement, which in certain cases may exceed the tax benefits we realize or be accelerated; provisions of Delaware law and our governing documents and other agreements that could limit the ability of stockholders to take certain actions or delay or discourage takeover attempts that stockholders may consider favorable; our exclusive forum provisions in our governing documents; the influence of certain significant stockholders and members of Utz Brands Holdings, LLC, whose interests may differ from those of our other stockholders; and the effects of our private placement warrants on the market price of our Class A Common Stock and our net income; and other risks and uncertainties set forth in Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K filed with the Commission for the fiscal year ended December 29, 2024 and in other reports we file with the U.S. Securities and Exchange Commission from time to time. 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 and identify trends in our underlying operating results, and it 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 management judgment 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 Selling, Distribution, and Administrative Expense Margin) • Adjusted Net Income • Adjusted Earnings Per Share • Adjusted Earnings Before Taxes • EBITDA • Adjusted EBITDA • Adjusted EBITDA as % of Net Sales (Adjusted EBITDA Margin) • Normalized Adjusted EBITDA • Effective Normalized Tax Rate • Net Leverage Ratio • Adjusted COGS Organic Net Sales is defined as Net Sales excluding the impacts of acquisitions, divestitures and independent operator (“IO”) route conversions that took place after 1Q’2024. 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. 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. Adjusted Net Income is defined as Net Income excluding Depreciation and Amortization expense, a non-cash item, related to fair value adjustments on property, plant, and equipment, and definite-lived intangibles relating to business combinations recorded in prior periods. In addition, Adjusted Net Income excludes 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 Taxes is defined as Adjusted Net Income before normalized GAAP basis tax expense. Adjusted Earnings Per Share is defined as Adjusted Net Income 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 of the Company 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. In this release, we also provide Adjusted EBITDA as a percentage of Net Sales as an additional measure for readers to evaluate our Adjusted EBITDA Margin. 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 Taxes. Net Leverage Ratio is defined as trailing twelve month 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 consist of 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 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.
Read more – Utz Brands Reports Second Quarter 2025 ResultsUtz Brands Reports Third Quarter 2024 Results and Reaffirms 2024 Outlook
Hanover, PA – October 31, 2024 – 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 third quarter ended September 29, 2024. 3Q’24 Summary(1) Net Sales of $365.5 million Organic Net Sales increased 9% Gross Profit Margin expansion of 370bps Adjusted Gross Profit Margin expansion of 270bps Net Income of $0.8 million Adjusted EBITDA increased 6% to $54.0 million Diluted loss per share of $(0.03) Adjusted Earnings Per Share increased 5% to $0.21 (1) All comparisons for the third quarter of 2024 are compared to the third quarter ended October 1, 2023. "In the third quarter our momentum continued with solid Organic Net Sales growth, our seventh consecutive quarter of Adjusted EBITDA Margin expansion, and Adjusted Earnings Per Share growth of nearly 24%,” said Howard Friedman, Chief Executive Officer of Utz. “We are executing well on our distribution growth opportunities, and we believe our accelerated productivity cost savings will give us the flexibility to expand our margins and increase investments in our brands to support our continued growth. While we continue to expect a more competitive promotional environment in response to consumers seeking value, we will continue to make appropriate adjustments to our activities to meet consumer expectations. We are on track to meet our full-year financial targets, and we look forward to a strong finish to the year.” Third Quarter 2024 Results Third quarter net sales of $365.5 million compared to $371.9 million in the prior year period. The divestiture of the R.W. Garcia® and Good Health® brands impacted net sales by (3.6%). Organic Net Sales increased by 1.9% led by favorable volume/mix of 2.4% driven by strong growth of the Company’s Power Brands, partially offset by lower net price realization of (0.5%). For the 13-week period ended September 29, 2024, the Company’s retail sales, as measured by Circana MULO-C, decreased by 1.3% versus the prior-year period. The Company’s total Power Brands’ retail sales decreased by 1.2% versus the prior-year period and the Company’s Power Four Brands of Utz®, On The Border®, Zapp’s® and Boulder Canyon® decreased by 0.6%. Utz’s retail sales trends were primarily impacted by a more competitive promotional environment in potato chips, and also softness in the convenience store channel. Despite this, the Company’s retail volumes increased by 0.4% compared to a 0.2% decline for the Salty Snack category. Further, Utz’s Organic Net Sales growth outpaced retail sales growth driven primarily by solid performance in non-measured channels and planned strong seasonal shipments to support incremental merchandising events compared to the prior year. Gross profit margin of 35.8% expanded 370bps compared to 32.1% in the prior year period. Adjusted Gross Profit Margin of 39.0% expanded 270bps compared to 36.3% 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. SD&A expenses were $110.0 million, compared to $105.5 million in the prior year period. Adjusted SD&A Expenses were $88.7 million compared to $83.0 million in the prior year period, primarily due to increased marketing spend, higher distribution costs, and investments in selling capabilities to support distribution growth in Expansion geographies. These expenses were partially offset by productivity benefits related to logistics costs included in distribution. The Company reported net income of $0.8 million compared to net income of $16.2 million in the prior year period. The change in net income was primarily due to an increase in the loss on the remeasurement of the warrant liability of $22.4 million. Adjusted Net Income in the quarter increased 20.3% to $29.6 million compared to $24.6 million in the prior year period. Adjusted Earnings Per Share increased 23.5% to $0.21 compared to $0.17 in the prior year period. The Adjusted Earnings Per Share growth in the third 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 3.6% to $54.0 million, or 14.8% as a percentage of net sales, compared to $52.1 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 primarily due to the Company’s productivity programs. Balance Sheet and Cash Flow Highlights As of September 29, 2024 Total liquidity of $223.7 million, consisting of cash on hand of $64.9 million and $158.8 million available under the Company’s revolving credit facility. Net debt of $731.5 million resulting in a Net Leverage Ratio of 7x based on trailing twelve months Normalized Adjusted EBITDA of $196.5 million. For the thirty-nine weeks ended September 29, 2024 Cash flow provided by operations was $52.0 million, which reflects strong working capital performance in the third quarter. 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 manufacturing facilities. Capital expenditures were $60.9 million, and dividends and distributions paid were $30.8 Fiscal Year 2024 Outlook The Company is reaffirming its outlook for Organic Net Sales growth of 2%-2.5%. The Company continues to expect Organic Net Sales growth driven by volume growth that will be fueled by increased marketing investments, product innovation, already achieved distribution gains, and a more favorable fourth quarter growth comparison. The Company’s outlook also assumes net sales will be impacted by approximately $45 million due to the sale of the Good Health® and R.W. Garcia® The Company is reaffirming its outlook for Adjusted EBITDA growth of 5%-8% and assumes the estimated impact of the forgone profit contribution from the brands divested in February 2024 are mostly offset by accelerated cost savings and the transition services agreement. The Company is reaffirming its outlook for Adjusted Earnings per Share growth of 28%-32%. The Company continues to expect growth driven by increased operating earnings, a more favorable effective tax rate, and lower core depreciation and amortization expense resulting from the Company’s plant divestitures in April 2024. The Company also expects: An effective tax rate (normalized GAAP basis tax expense, which excludes one-time items) in the range of 17%-19% (unchanged); Interest expense of approximately $47 million (unchanged); Capital expenditures in the range of $80-$90 million (unchanged); and Net Leverage Ratio of approximately 3.6x (unchanged) at year-end fiscal 2024. 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 third 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 8:00 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 2024, 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; 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 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 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 non-recurring 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 non-recurring 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 the Business Combination with Collier Creek Holdings and the acquisitions of Kennedy Endeavors, Kitchen Cooked, Inventure, Golden Flake, Truco Enterprises, R.W. Garcia and Festida. 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 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 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 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.
Read more – Utz Brands Reports Third Quarter 2024 Results and Reaffirms 2024 OutlookUtz Brands to Report Third Quarter 2024 Financial Results on October 31, 2024
HANOVER, Pa. -- (BUSINESS WIRE) -- Utz Brands, Inc. (NYSE: UTZ) (“Utz” or the “Company”), a leading U.S. manufacturer of branded salty snacks, today announced it plans to report its third quarter 2024 financial results on Thursday, October 31, 2024. A press release, pre-recorded management remarks, and slide presentation will be issued that morning at 6:30 a.m. Eastern Time, followed by a live webcast question and answer session with analysts at 8:00 a.m. Eastern Time. Please visit the “Events & Presentations” section of Utz’s Investor Relations website at https://investors.utzsnacks.com to access these materials and webcast. # # # 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 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 its growing customer base. For more information, please visit www.utzsnacks.com 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 (investors.utzsnacks.com), SEC 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 issues. 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 Utz Brands, Inc. Kevin Powers kpowers@utzsnacks.com Media Contact Utz Brands, Inc. Kevin Brick kbrick@utzsnacks.com
Read more – Utz Brands to Report Third Quarter 2024 Financial Results on October 31, 2024Utz Brands, Inc. Declares Quarterly Cash Dividend
Hanover, PA, (Business Wire) September 5, 2024 – Utz Brands, Inc. (NYSE: UTZ) (“Utz” or the “Company”), a leading U.S. manufacturer of branded salty snacks and a small-cap value and growth Staples equity, today announced that its Board of Directors has declared a regular quarterly cash dividend of approximately $0.059 per share on the Company’s Class A Common Stock, as well as an additional cash dividend of approximately $0.011 per share. Payment is expected to be made by the Company on October 3, 2024, to stockholders of record at the close of business on September 16, 2024. The cash dividend includes a regular quarterly cash dividend of $0.059 per share and an additional cash dividend in the aggregate amount of approximately $0.9 million, which is approximately $0.011 per share. This additional cash dividend reflects growth in the Company’s pre-tax income from improved operating performance and will be funded from a portion of the tax distribution paid or to be paid by Utz Brands Holdings to Utz that is in excess of corporate taxes payable by the Company. Future declarations of quarterly or other dividends are subject to the determination and discretion of Utz’s Board of Directors based on its consideration of various factors, including the Company’s results of operations, financial condition and other factors that the Board may deem relevant. 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 of 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, clubs, convenience stores, drug stores, and other channels. Based in Hanover, Pennsylvania, Utz has multiple manufacturing facilities across the U.S. to serve our growing customer base. For more information, please visit www.utzsnacks.com or call 1‐800‐FOR‐SNAX. 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” or other similar words, phrases or expressions. 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. Utz Brands, Inc. Investors Kevin Powers kpowers@utzsnacks.com Media Kevin Brick kbrick@utzsnacks.com
Read more – Utz Brands, Inc. Declares Quarterly Cash DividendUtz Brands Reports Second Quarter 2024 Results and Raises FY’24 Adjusted Earnings Per Share Outlook
Hanover, PA – August 1, 2024 – 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 second quarter ended June 30, 2024. 2Q’24 Summary(1) Net Sales of $356.2 million Organic Net Sales increased 1.6% Gross Profit Margin expansion of 260bps Adjusted Gross Profit Margin expansion of 260bps Net Income of $25.4 million Adjusted EBITDA increased 10.0% to $49.7 million Earnings per share of $0.23 Adjusted Earnings per share increased 46.2% to $0.19 (1) All comparisons for the second quarter of 2024 are compared to the second quarter ended July 2, 2023. "I'm pleased with our continued strong momentum in the second quarter, as we gained dollar, pound, and unit share in the Salty Snack category for the third consecutive quarter. In addition, we delivered our sixth consecutive quarter of year-over-year Adjusted EBITDA Margin expansion, driven by strong Adjusted Gross Profit Margin growth, and we increased Adjusted Earnings per Share by 46%," said Howard Friedman, Chief Executive Officer of Utz. "We made necessary adjustments to our promotional activities during the quarter to address consumer value expectations. Our accelerated productivity cost savings provide us the flexibility to both continue to expand our margins and increase investments behind our brands to support our geographic expansion. We expect our growth opportunities will drive strong volume growth in the second half of the year." Second Quarter 2024 Results Second quarter net sales were $356.2 million compared to $362.9 million in the prior year period. The divestiture of the R.W. Garcia® and Good Health® brands impacted net sales growth by (3.3%), and the Company’s continued shift to independent operators (IOs) and the resulting increase in sales discounts impacted net sales growth by an estimated (0.1%). Organic Net Sales increased 1.6% led by increased volume/mix of 2.3% driven by strong growth of the Company’s Power Brands, partially offset by lower net price realization of (0.7%). For the 13-week period ended June 30, 2024, the Company’s retail sales, as measured by Circana MULO-C, increased 1.1% versus the prior-year period led by volume growth of 3.2%. The Company’s total Power Brands’ retail sales increased 1.7% versus the prior-year period and the Company’s Power Four Brands of Utz®, On The Border®, Zapp’s® and Boulder Canyon® increased 2.8%. Gross profit margin of 35.0% expanded 260bps compared to 32.4% in the prior year period. Adjusted Gross Profit Margin of 37.6% also expanded 260bps compared to 35.0% in the prior year period as the benefits from productivity and favorable sales volume/mix more than offset supply chain cost inflation, investments to support the Company’s productivity initiatives and lower pricing. The continued shift to IOs impacted Adjusted Gross Profit Margin by approximately 10bps, but with offsetting benefits in Selling, Distribution, and Administrative (SD&A) expense. SD&A expenses were $104.6 million compared to $114.5 million in the prior year period. Adjusted SD&A Expenses were $84.5 million compared to $81.7 million in the prior year period primarily due to increased marketing spend, higher distribution costs, and investments in capabilities. These expenses were partially offset by productivity benefits. The Company reported net income of $25.4 million compared to a net loss of $(8.6) million in the prior year period. Adjusted Net Income in the quarter increased 46.3% to $27.5 million compared to $18.8 million in the prior year period. Adjusted Earnings per share increased 46.2% to $0.19 compared to $0.13 in the prior year period. The Adjusted Earnings per share growth in the second 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 10.0% to $49.7 million, or 14.0% as a percentage of net sales, compared to $45.2 million, or 12.5% as a percentage of net sales, in the prior year period. The Adjusted EBITDA margin improvement was driven by Adjusted Gross Margin expansion primarily due to the Company’s productivity programs. Balance Sheet and Cash Flow Highlights As of June 30, 2024 Total liquidity of $196.9 million, consisting of cash on hand of $66.6 million and $130.3 million available under the Company’s revolving credit facility. Net debt of $747.5 million resulting in a Net Leverage Ratio of 8x based on trailing twelve months Normalized Adjusted EBITDA of $194.6 million. In April 2024, the Company: Used ~$9.0 million of net proceeds from its most recent plant dispositions to pay down long-term debt and increased its cash balance by ~$5.0 million resulting in a ~$14.0 million reduction of net debt. Completed a repricing of its $630 million Term Loan which reduced the applicable interest rate on the Term Loan by approximately 36 bps (assuming one-month SOFR) from Term SOFR plus a credit spread adjustment plus 3.00% to Term SOFR plus 2.75%. The Company estimates that the combination of the ~$9.0 million debt paydown and the repricing of the Term Loam will result in cash interest expense savings of ~$3.0 million annually. For the twenty-six weeks ended June 30, 2024 Cash flow used in operations was $(0.2) million, which reflects the seasonal use of working capital, and also includes an approximately $30 million impact from the sale of Good Health® and R.W. Garcia®, and the manufacturing facilities. Capital expenditures were $37.8 million, and dividend and distributions paid were $18.9 Fiscal Year 2024 Outlook The Company is modestly revising its outlook for Organic Net Sales growth from ~3% or better to now ~3%. The revised outlook is due to a more moderate growth outlook for the Salty Snack Category. The Company continues to expect Organic Net Sales growth driven by volume growth, fueled by increased marketing investments, product innovation, already achieved distribution gains, and an easier second half growth comparison. The Company’s outlook also assumes net sales will be impacted by ~$45 million due to the sale of the Good Health® and R.W. Garcia® The Company is reaffirming its outlook for Adjusted EBITDA growth of 5%-8% and assumes the estimated impact of the forgone profit contribution from the brands divested in February 2024 are mostly offset by accelerated cost savings and the transition services agreement. The Company is raising its outlook for Adjusted Earnings per Share growth from 23%-28%, to 28%-32%. The improved growth rate expectation is the result of a more favorable effective tax rate and lower core depreciation and amortization expense resulting from the Company’s plant divestitures in April 2024. The Company also expects: An effective tax rate (normalized GAAP basis tax expense, which excludes one-time items) in the range of 17%-19% (previously 18%-20%); Interest expense of ~$47 million (unchanged); Capital expenditures in the range of $80-$90 million (unchanged); and Net Leverage Ratio of ~3.6x (unchanged) at year-end fiscal 2024. With respect to projected fiscal 2024 Organic Net Sales, Adjusted EBITDA and Adjusted Earnings Per Share, a quantitative reconciliation is not available 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 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 second 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 8:00 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” or other similar words, phrases or expressions. These forward-looking statements include future plans for the Company, the estimated or anticipated future results and benefits of the Company’s future plans and operations, plans related to 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 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, future capital structure, future opportunities for the Company, 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. Factors that may cause such differences include, but are not limited to: the risk that the Company’s gross profit margins may be adversely impacted by a variety of factors, including variations in raw materials pricing, 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 suitably differentiated from the products of their competitors; consolidation of key suppliers to the Company; 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 (collectively, the “Business Combinations”) or dispositions that disrupt plans and operations; the ability to recognize the anticipated benefits of such Business Combinations 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 or dispositions; changes in applicable law or regulations; costs related to the Business Combinations 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 inability 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. 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. 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 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 EBITDA Adjusted EBITDA Adjusted EBITDA as % of Net Sales (Adjusted EBITDA Margin) Normalized Adjusted EBITDA Net Leverage Ratio Organic Net Sales is defined as net sales excluding the impacts of acquisitions, divestitures and 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 non-recurring 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 non-recurring 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 the Business Combination with Collier Creek Holdings and the acquisitions of Kennedy Endeavors, Kitchen Cooked, Inventure, Golden Flake, Truco Enterprises, R.W. Garcia and Festida. 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 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 Per Share is defined as Adjusted Net Income (as defined, herein) 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 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. 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. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME For the thirteen weeks ended June 30, 2024 and July 2, 2023 (In thousands, except share information) (Unaudited) (in thousands) Thirteen weeks ended June 30, 2024 Thirteen weeks ended July 2, 2023 Net sales $ 356,190 $ 362,853 Cost of goods sold 231,436 245,460 Gross profit 124,754 117,393 Selling, distribution, and administrative expenses Selling and distribution 73,780 66,869 Administrative 30,813 47,584 Total selling, distribution, and administrative expenses 104,593 114,453 Gain (loss) on sale of assets, net 2,373 (279) Income from operations 22,534 2,661 Other income (expense), net Interest expense (10,209) (15,019) Loss on debt extinguishment (1,273) — Other income 198 272 Gain on remeasurement of warrant liability 12,888 2,808 Other income (expense), net 1,604 (11,939) Income (loss) before taxes 24,138 (9,278) Income tax benefit (1,309) (725) Net income (loss) 25,447 (8,553) Net (income) loss attributable to noncontrolling interest (5,599) 4,429 Net income (loss) attributable to controlling interest $ 19,848 $ (4,124) Income (loss) per Class A Common stock: (in dollars) Basic $ 0.24 $ (0.05) Diluted $ 0.23 $ (0.05) Weighted-average shares of Class A Common stock outstanding Basic 81,457,014 81,063,457 Diluted 84,954,412 81,063,457 Net income (loss) $ 25,447 $ (8,553) Other comprehensive (loss) income: Change in fair value of interest rate swap (2,142) 9,572 Comprehensive income 23,305 1,019 Net comprehensive (income) loss attributable to noncontrolling interest (4,696) 383 Net comprehensive income attributable to controlling interest $ 18,609 $ 1,402 Utz Brands, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME For the twenty-six weeks ended June 30, 2024 and July 2, 2023 (In thousands, except share information) (Unaudited) (in thousands) Twenty-six weeks ended June 30, 2024 Twenty-six weeks ended July 2, 2023 Net sales $ 702,713 $ 714,286 Cost of goods sold 458,386 492,397 Gross profit 244,327 221,889 Selling, distribution, and administrative expenses Selling and distribution 147,446 131,915 Administrative 66,595 88,624 Total selling, distribution, and administrative expenses 214,041 220,539 Gain (loss) on sale of assets, net 1,903 (787) Income from operations 32,189 563 Other income (expense), net Gain on sale of business 44,015 — Interest expense (24,040) (29,397) Loss on debt extinguishment (1,273) — Other income 1,108 1,887 Gain on remeasurement of warrant liability 1,080 576 Other income (expense), net 20,890 (26,934) Income (loss) before taxes 53,079 (26,371) Income tax expense (benefit) 25,236 (3,336) Net income (loss) 27,843 (23,035) Net (income) loss attributable to noncontrolling interest (11,986) 9,784 Net income (loss) attributable to controlling interest $ 15,857 $ (13,251) Income (loss) per Class A Common stock: (in dollars) Basic $ 0.19 $ (0.16) Diluted $ 0.19 $ (0.16) Weighted-average shares of Class A Common stock outstanding Basic 81,423,240 81,020,732 Diluted 84,762,662 81,020,732 Net income (loss) $ 27,843 $ (23,035) Other comprehensive income (loss): Change in fair value of interest rate swap 2,517 (753) Comprehensive income (loss) 30,360 (23,788) Net comprehensive (income) loss attributable to noncontrolling interest (13,048) 10,105 Net comprehensive income (loss) attributable to controlling interest $ 17,312 $ (13,683) Utz Brands, Inc. CONSOLIDATED BALANCE SHEETS June 30, 2024 and December 31, 2023 (In thousands, except per share information) As of June 30, 2024 As of December 31, 2023 (Unaudited) ASSETS Current Assets Cash and cash equivalents $ 66,574 $ 52,023 Accounts receivable, less allowance of $3,077 and $2,933, respectively 137,962 135,130 Inventories 100,710 104,666 Prepaid expenses and other assets 44,539 30,997 Current portion of notes receivable 4,581 5,237 Total current assets 354,366 328,053 Non-current Assets Assets held for sale — 7,559 Property, plant and equipment, net 300,050 318,881 Goodwill 870,695 915,295 Intangible assets, net 1,012,447 1,063,413 Non-current portion of notes receivable 9,968 12,413 Other assets 102,590 101,122 Total non-current assets 2,295,750 2,418,683 Total assets $ 2,650,116 $ 2,746,736 LIABILITIES AND EQUITY Current Liabilities Current portion of term debt $ 12,034 $ 21,086 Current portion of other notes payable 7,365 7,649 Accounts payable 121,793 124,361 Accrued expenses and other 68,263 77,590 Total current liabilities 209,455 230,686 Non-current portion of term debt and revolving credit facility 785,539 878,511 Non-current portion of other notes payable 17,291 19,174 Non-current accrued expenses and other 73,843 76,720 Non-current warrant liability 42,192 43,272 Deferred tax liability 116,068 114,690 Total non-current liabilities 1,034,933 1,132,367 Total liabilities 1,244,388 1,363,053 Commitments and Contingencies Shares of Class A Common Stock, $0.0001 par value; 1,000,000,000 shares authorized; 81,530,122 and 81,187,977 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively 8 8 Shares of Class V Common Stock, $0.0001 par value; 61,249,000 shares authorized; 59,349,000 shares issued and outstanding as of June 30, 2024 and December 31, 2023 6 6 Additional paid-in capital 955,280 944,573 Accumulated deficit (293,750) (298,049) Accumulated other comprehensive income 24,413 22,958 Total stockholders' equity 685,957 669,496 Noncontrolling interest 719,771 714,187 Total equity 1,405,728 1,383,683 Total liabilities and equity $ 2,650,116 $ 2,746,736 Utz Brands, Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS For the twenty-six weeks ended June 30, 2024 and July 2, 2023 (In thousands) (Unaudited) Twenty-six weeks ended June 30, 2024 Twenty-six weeks ended July 2, 2023 Cash flows from operating activities Net income (loss) $ 27,843 $ (23,035) Adjustments to reconcile net income (loss) to net cash used in operating activities: Impairment and other charges — 9,548 Depreciation and amortization 35,883 40,405 Gain on sale of business (44,015) — Gain on remeasurement of warrant liability (1,080) (576) (Gain) loss on sale of assets (1,903) 787 Loss on debt extinguishment 1,273 — Share-based compensation 9,174 8,939 Deferred taxes 6,445 (2,003) Deferred financing costs 2,509 451 Changes in assets and liabilities: Accounts receivable, net (9,628) (3,992) Inventories (3,969) (4,379) Prepaid expenses and other assets (15,140) (11,687) Accounts payable and accrued expenses and other (7,561) (18,773) Net cash used in operating activities (169) (4,315) Cash flows from investing activities Purchases of property and equipment (37,781) (30,158) Purchases of intangibles (9,220) — Proceeds from sale of property and equipment 24,062 959 Proceeds from sale of business 167,500 — Proceeds from sale of routes 13,669 12,446 Proceeds from the sale of IO notes 1,544 2,161 Notes receivable (18,834) (16,191) Net cash provided by (used in) investing activities 140,940 (30,783) Cash flows from financing activities Borrowings on line of credit 92,000 61,000 Repayments on line of credit (47,191) — Borrowings on term debt and notes payable 16,618 3,246 Repayments on term debt and notes payable (166,608) (11,785) Payment of debt issuance cost (733) — Payments of tax withholding requirements for employee stock awards (1,397) (589) Dividends paid (9,428) (9,281) Distribution to noncontrolling interest (9,481) (6,766) Net cash (used in) provided by financing activities (126,220) 35,825 Net increase in cash and cash equivalents 14,551 727 Cash and cash equivalents at beginning of period 52,023 72,930 Cash and cash equivalents at end of period $ 66,574 $ 73,657 Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures Net Sales and Organic Net Sales 13-Weeks Ended 26-Weeks Ended (dollars in millions) June 30, 2024 July 2, 2023 Change June 30, 2024 July 2, 2023 Change Net Sales as Reported $ 356.2 $ 362.9 (1.8) % $ 702.7 $ 714.3 (1.6) % Impact of Dispositions — (11.8) — (20.3) Impact of IO Conversions 0.5 — 2.0 — Organic Net Sales (1) $ 356.7 $ 351.1 1.6 % $ 704.7 $ 694.0 1.5 % (1) Organic Net Sales excludes the Impact of Dispositions and the Impact of IO Conversions that took place after Q2 2023. Gross Profit and Adjusted Gross Profit 13-Weeks Ended 26-Weeks Ended (dollars in millions) June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Gross Profit $ 124.8 $ 117.4 $ 244.3 $ 221.9 Gross Profit as a % of Net Sales 35.0 % 32.4 % 34.8 % 31.1 % Depreciation and Amortization 6.7 9.0 13.9 17.6 Non-Cash, Non-recurring adjustments 2.6 0.5 4.6 8.4 Adjusted Gross Profit $ 134.1 $ 126.9 $ 262.8 $ 247.9 Adjusted Gross Profit as a % of Net Sales 37.6 % 35.0 % 37.4 % 34.7 % Adjusted Selling, Distribution, and Administrative Expense 13-Weeks Ended 26-Weeks Ended (dollars in millions) June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Selling, Distribution, and Administrative Expense $ 104.6 $ 114.5 $ 214.0 $ 220.5 Depreciation and Amortization in SD&A Expense (10.9) (11.3) (22.0) (22.8) Non-Cash, and/or Non-recurring Adjustments (9.2) (21.5) (22.1) (35.5) Adjusted Selling, Distribution, and Administrative Expense $ 84.5 $ 81.7 $ 169.9 $ 162.2 Adjusted SD&A Expense as a % of Net Sales 23.7 % 22.5 % 24.2 % 22.7 % Adjusted Net Income 13-Weeks Ended 26-Weeks Ended (dollars in millions, except per share data) June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Net Income (Loss) $ 25.4 $ (8.6) $ 27.8 $ (23.0) Income Tax Expense (Benefit) (1.3) (0.7) 25.2 (3.3) Income (loss) Before Taxes 24.1 (9.3) 53.0 (26.3) Deferred Financing Fees 0.7 0.5 2.5 0.5 Acquisition Step-Up Depreciation and Amortization 10.8 11.7 22.3 23.6 Certain Non-Cash Adjustments 4.9 8.5 8.9 17.7 Acquisition, Divestiture and Integration 1.1 3.7 (37.3) 7.4 Business and Transformation Initiatives 4.5 10.3 10.3 18.5 Financing-Related Costs 0.3 — 0.3 0.1 Loss on Remeasurement of Warrant Liability (12.9) (2.8) (1.1) (0.6) Other Non-Cash and/or Non-Recurring Adjustments 9.4 31.9 5.9 67.2 Adjusted Earnings before Taxes 33.5 22.6 58.9 40.9 Taxes on Earnings as Reported 1.3 0.7 (25.2) 3.3 Income Tax Adjustments(1) (7.3) (4.5) 14.6 (10.4) Adjusted Taxes on Earnings (6.0) (3.8) (10.6) (7.1) Adjusted Net Income $ 27.5 $ 18.8 $ 48.3 $ 33.8 Average Weighted Basic Shares Outstanding on an As-Converted Basis 140.8 140.4 140.8 140.4 Fully Diluted Shares on an As-Converted Basis 144.3 143.2 144.1 143.0 Adjusted Earnings Per Share $ 0.19 $ 0.13 $ 0.34 $ 0.24 (1) Income Tax Adjustment calculated as (Loss) Income before taxes plus (i) Acquisition, Step-Up Depreciation and Amortization and (ii) Other Non-Cash and/or Non-Recurring 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 26-Weeks Ended (dollars in millions) June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Core D&A - Non-Acquisition-related included in Gross Profit $ 4.6 $ 6.3 $ 9.2 $ 12.1 Step-Up D&A - Transaction-related included in Gross Profit 2.1 2.7 4.7 5.5 Depreciation & Amortization - included in Gross Profit 6.7 9.0 13.9 17.6 Core D&A - Non-Acquisition-related included in SD&A Expense $ 2.2 2.3 $ 4.4 4.7 Step-Up D&A - Transaction-related included in SD&A Expense 8.7 9.0 17.6 18.1 Depreciation & Amortization - included in SD&A Expense 10.9 11.3 22.0 22.8 Depreciation & Amortization - Total $ 17.6 $ 20.3 $ 35.9 $ 40.4 Core Depreciation and Amortization $ 6.8 $ 8.6 $ 13.6 $ 16.8 Step-Up Depreciation and Amortization $ 10.8 11.7 $ 22.3 23.6 Total Depreciation and Amortization $ 17.6 $ 20.3 $ 35.9 $ 40.4 EBITDA and Adjusted EBITDA 13-Weeks Ended 26-Weeks Ended (dollars in millions) June 30, 2024 July 2, 2023 June 30, 2024 July 2, 2023 Net Income (Loss) $ 25.4 $ (8.6) $ 27.8 $ (23.0) Plus non-GAAP adjustments: Income Tax Expense (Benefit) (1.3) (0.7) 25.2 (3.3) Depreciation and Amortization 17.6 20.3 35.9 40.4 Interest Expense, Net 10.2 15.0 24.0 29.4 Interest Income from IO loans(1) (0.1) (0.5) (0.9) (0.9) EBITDA 51.8 25.5 112.0 42.6 Certain Non-Cash Adjustments(2) 4.9 8.5 8.9 17.7 Acquisition, Divestiture and Integration(3) 1.1 3.7 (37.3) 7.4 Business Transformation Initiatives(4) 4.5 10.3 10.3 18.5 Financing-Related Costs(5) 0.3 — 0.3 0.1 Gain on Remeasurement of Warrant Liability(6) (12.9) (2.8) (1.1) (0.6) Adjusted EBITDA $ 49.7 $ 45.2 $ 93.1 $ 85.7 Net income (loss) as a % of Net Sales 7.1 % (2.4) % 4.0 % (3.2) % Adjusted EBITDA as a % of Net Sales 14.0 % 12.5 % 13.2 % 12.0 % 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 of the IO notes receivable, and the interest expense associated with the notes payable is part of the Interest Expense, Net adjustment. Certain Non-Cash Adjustments are comprised primarily of the following: Incentive programs – The Company incurred $4.5 million and $3.4 million of share-based compensation expense, that was awarded to associates and directors, and compensation expense associated with the employee stock purchase plan (the “ESPP”) and the omnibus equity incentive plan (the “OEIP”) for the thirteen weeks ended June 30, 2024 and July 2, 2023, respectively. The Company incurred $8.4 million and $8.1 million of share-based compensation expense, that was awarded to associates and directors, and compensation expense associated with the ESPP and the OEIP for the twenty-six weeks ended June 30, 2024 and July 2, 2023, respectively. Asset Impairments and Write-Offs — For the thirteen weeks ended July 2, 2023, the Company recorded an adjustment for an impairment of $7.6 million on fixed assets related to the Manufacturing Closure. During the twenty-six weeks ended July 2, 2023, the Company recorded impairments totaling $9.6 million. 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 commitments related to unrealized gains and losses. The adjustment related to Purchase Commitments and Other Adjustments, including cloud computing amortization was expense (income) of $0.4 million and $(2.5) million for the thirteen weeks ended June 30, 2024 and July 2, 2023, respectively. The adjustment related to Purchase Commitments and Other Adjustments, including cloud computing amortization was $0.5 million and $0 million for the twenty-six weeks ended June 30, 2024 and July 2, 2023, respectively. Adjustment for Acquisition, Divestiture and Integration Costs and (Gains) – Such expenses were $1.1 million and $3.4 million for the thirteen weeks ended June 30, 2024 and July 2, 2023, respectively; and $6.7 million and $8.3 million for the twenty-six weeks ended June 30, 2024 and July 2, 2023, respectively. Additionally, other acquisitions and integration costs (income) of $0.3 million were recorded for the thirteen weeks ended July 2, 2023 and $(0.9) million for the twenty-six weeks ended July 2, 2023 related to the change in the liability associated with the Tax Receivable Agreement entered into in connection with the consummation of the business combination by the Company (formerly Collier Creek Holdings) with Utz Brands Holdings, LLC (“UBH”) pursuant to the terms of the Business Combination Agreement, dated as of June 5, 2020. Also included for the twenty-six weeks ended June 30, 2024 was a gain of $44.0 million related to the Good Health and R.W. Garcia Sale. 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 resource planning system transition costs, fall into this category. The Company incurred such costs of $4.5 million and $5.6 million for the thirteen weeks ended June 30, 2024 and July 2, 2023, respectively, and $10.3 million and $13.8 million for the twenty-six weeks ended June 30, 2024 and July 2, 2023, respectively. Additionally, the thirteen and twenty-six weeks ended July 2, 2023 also includes expense of $4.7 million related to a contract termination. This agreement was a continuation of the Company's response to shifting production from a manufacturing facility that was damaged by a natural disaster in 2021. Financing-Related Costs – These costs include adjustments for various items related to raising debt and equity capital or debt extinguishment costs. Gains and losses – Such 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 TTM Adjusted EBITDA $ 40.4 $ 45.2 $ 52.1 $ 49.4 $ 187.2 (1) $ 43.4 $ 49.7 $ 194.6 Pre-Acquisition Adjusted EBITDA(1) — — — — — — — — Normalized Adjusted EBITDA $ 40.4 $ 45.2 $ 52.1 $ 49.4 $ 187.2 (1) $ 43.4 $ 49.7 $ 194.6 (1) Does not total due to rounding. Net Debt and Leverage Ratio (dollars in millions) As of June 30, 2024 Term Loan $ 630.3 Real Estate Loan 60.9 ABL Facility 45.2 Capital Leases(1) 77.6 Deferred Purchase Price 0.1 Gross Debt(2) 814.1 Cash and Cash Equivalents 66.6 Total Net Debt $ 747.5 Last 52-Weeks Normalized Adjusted EBITDA $ 194.6 Net Leverage Ratio(3) 3.8x (1) Capital Leases include equipment term loans and exclude the impact of step-up accounting. (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 $194.6 million.
Read more – Utz Brands Reports Second Quarter 2024 Results and Raises FY’24 Adjusted Earnings Per Share Outlook
UTZ BRANDS, INC. ISSUES REAL ESTATE SENIOR SECURED TERM LOAN
HANOVER, PA (BUSINESS WIRE) -- Utz Brands, Inc. (NYSE: UTZ) (“Utz” or the "Company"), a leading U.S. manufacturer of branded salty snacks, announced today that the Company’s subsidiaries Utz Quality Foods, LLC (“UQF”), Kennedy Endeavors, LLC (“Kennedy”) and Condor Snack Foods, LLC (together with UQF and Kennedy, the “Borrowers”) have entered into a new real estate senior secured term loan in the original aggregate principal amount of $88.14 million (the “Real Estate Term Loan”) with City National Bank, as administrative agent (“CNB”) and each lender from time to time party thereto (the “Lenders”).
Read more – UTZ BRANDS, INC. ISSUES REAL ESTATE SENIOR SECURED TERM LOAN
UTZ QUALITY FOODS AND COLLIER CREEK HOLDINGS COMPLETE BUSINESS COMBINATION TO FORM UTZ BRANDS, INC.
Transaction Introduces Utz as a Publicly Listed Company on the New York Stock Exchange After Nearly 100 Years as a Family-Owned Business
Read more – UTZ QUALITY FOODS AND COLLIER CREEK HOLDINGS COMPLETE BUSINESS COMBINATION TO FORM UTZ BRANDS, INC.
Utz was featured on Jim Cramer’s Mad Money
Utz was featured on Jim Cramer’s Mad Money Thursday evening. Utz CEO, Dylan Lissette, and Roger Deromedi the current co-founder of Collier Creek Holdings, joined Cramer to talk about looking forward to the “next century.”
Read more – Utz was featured on Jim Cramer’s Mad Money
Exciting News - Utz Quality Foods to Combine with Collier Creek Holdings to form Utz Brands, Inc!
HANOVER, Pa., June 5, 2020 /PRNewswire/ -- Utz Quality Foods, LLC ("Utz" or the "Company"), a leading U.S. manufacturer of branded salty snacks, and Collier Creek Holdings ("Collier Creek") (NYSE: CCH, CCH.U, CCH WS), a special purpose acquisition company, today announced that they have entered into a definitive agreement (the "Business Combination Agreement") to combine and form Utz Brands, Inc. ("Utz Brands"). Utz Brands will be a leading pure-play snack food platform in the U.S. Upon the closing of the transaction, it is expected that Utz Brands will trade under the ticker symbol "UTZ" on the New York Stock Exchange.
Read more – Exciting News - Utz Quality Foods to Combine with Collier Creek Holdings to form Utz Brands, Inc!