This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

B&G Foods Reports Strong Net Sales And Earnings Growth For Fourth Quarter And Full-Year 2012

The Company uses “adjusted net income” and “adjusted diluted earnings per share,” which are calculated as reported net income and reported diluted earnings per share adjusted for certain items that affect comparability. These non-GAAP financial measures reflect adjustments to reported net income and diluted earnings per share to eliminate the items identified below. This information is provided in order to allow investors to make meaningful comparisons of the Company’s operating performance between periods and to view the Company’s business from the same perspective as the Company’s management. Because the Company cannot predict the timing and amount of charges associated with unrealized gains or losses on the Company’s interest rate swap, gains or losses on extinguishment of debt and acquisition-related transaction costs, management does not consider these costs when evaluating the Company’s performance or when making decisions regarding allocation of resources.

Additional information regarding EBITDA and adjusted EBITDA, and a reconciliation of EBITDA and adjusted EBITDA to net income and to net cash provided by operating activities is included below for the fiscal 2012 and 2011, along with the components of EBITDA and adjusted EBITDA. Also included below are reconciliations of the non-GAAP terms adjusted net income and adjusted diluted earnings per share to reported net income and reported diluted earnings per share.

About B&G Foods, Inc.

B&G Foods and its subsidiaries manufacture, sell and distribute a diversified portfolio of high-quality, shelf-stable foods across the United States, Canada and Puerto Rico. Based in Parsippany, New Jersey, B&G Foods’ products are marketed under many recognized brands, including Ac’cent, B&G, B&M, Baker’s Joy, Brer Rabbit, Cream of Rice, Cream of Wheat, Devonsheer, Don Pepino, Emeril’s, Grandma’s Molasses, JJ Flats, Joan of Arc, Las Palmas, Maple Grove Farms of Vermont, Molly McButter, Mrs. Dash, New York Style, Old London, Ortega, Polaner, Red Devil, Regina, Sa-són, Sclafani, Sugar Twin, Trappey’s, Underwood, Vermont Maid and Wright’s. B&G Foods also sells and distributes two branded household products, Static Guard and Kleen Guard.

Forward-Looking Statements

Statements in this press release that are not statements of historical or current fact constitute “forward-looking statements.” The forward-looking statements contained in this press release include, without limitation, statements related to B&G Foods’ expectations regarding adjusted EBITDA, capital expenditures and cash interest expense for 2013. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of B&G Foods to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe such risks and uncertainties readers are urged to consider statements labeled with the terms “believes,” “belief,” “expects,” “projects,” “intends,” “anticipates” or “plans” to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in B&G Foods’ filings with the Securities and Exchange Commission, including under Item 1A, “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and in its subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward looking statements, which speak only as of the date they are made. B&G Foods undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

* Please see “About Non-GAAP Financial Measures and Items Affecting Comparability” below for the definition of the terms adjusted net income, adjusted diluted earnings per share, EBITDA and adjusted EBITDA, as well as information concerning certain items affecting comparability and reconciliations of the non-GAAP terms adjusted net income, adjusted diluted earnings per share, EBITDA and adjusted EBITDA to the most comparable GAAP financial measures.

B&G Foods, Inc. and Subsidiaries

Consolidated Balance Sheets

(In thousands, except share and per share data)

(Unaudited)

 
  December 29, 2012   December 31, 2011
Assets
Current assets:
Cash and cash equivalents $ 19,219 $ 16,738
Trade accounts receivable, less allowance for doubtful accounts and discounts of $831 and $723 in 2012 and 2011 43,357 39,476
Inventories 89,757 82,666
Prepaid expenses and other current assets 5,326 7,119
Income tax receivable 4,262 2,529
Deferred income taxes   2,175     1,696  
Total current assets 164,096 150,224
 
Property, plant and equipment, net 104,746 61,930
Goodwill 267,940 262,827
Other intangibles, net 637,196 634,522
Other assets   17,990     23,420  
Total assets $ 1,191,968   $ 1,132,923  
 
Liabilities and Stockholders’ Equity
 
Current liabilities:
Trade accounts payable $ 25,050 $ 24,427
Accrued expenses 23,610 26,719
Current portion of long-term debt 40,375 9,750
Dividends payable   15,243     10,971  
Total current liabilities 104,278 71,867
 
Long-term debt 597,314 710,357
Other liabilities 8,038 9,409
Deferred income taxes   121,163     105,743  
Total liabilities 830,793 897,376
Commitments and contingencies
 
Stockholders’ equity:
Preferred stock, $0.01 par value per share. Authorized 1,000,000 shares; no shares issued or outstanding
Common stock, $0.01 par value per share. Authorized 125,000,000 shares; 52,560,765 and 47,700,132 issued and outstanding as of December 29, 2012 and December 31, 2011, respectively 526 477
Additional paid-in capital 226,900 159,916
Accumulated other comprehensive loss (11,095 ) (10,430 )
Retained earnings   144,844     85,584  
Total stockholders’ equity   361,175     235,547  
Total liabilities and stockholders’ equity $ 1,191,968   $ 1,132,923  

B&G Foods, Inc. and Subsidiaries

Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

 
  Fourth Quarter Ended   Year Ended
December 29, 2012   December 31, 2011 December 29, 2012   December 31, 2011
 
Net sales $ 173,706 $ 149,998 $ 633,812 $ 543,866
Cost of goods sold   114,223   100,708   410,469   366,090
Gross profit 59,483 49,290 223,343 177,776
 
Operating expenses:
Selling, general and administrative expenses 20,006 16,549 66,212 57,618
Amortization expense   2,059   1,766   8,126   6,679
Operating income 37,418 30,975 149,005 113,479
 
Other expenses:
Interest expense, net 11,815 11,821 47,660 36,675
Loss on extinguishment of debt   10,431     10,431  
Income before income tax expense 15,172 19,154 90,914 76,804
Income tax expense   5,613   6,899   31,654   26,561
Net income $ 9,559 $ 12,255   59,260   50,243
 
Weighted average shares outstanding:
Basic 52,154 47,712 49,239 47,856
Diluted 52,602 48,665 49,557 48,541
 
Earnings per share:
Basic $ 0.18 $ 0.26 $ 1.20 $ 1.05
Diluted $ 0.18 $ 0.25 $ 1.20 $ 1.04
 
Cash dividends declared per share $ 0.29 $ 0.23 $ 1.10 $ 0.86

B&G Foods, Inc. and Subsidiaries

Reconciliation of EBITDA to Net Income and to Net Cash Provided by Operating Activities

(In thousands)

(Unaudited)

 
  Fourth Quarter Ended   Year Ended
December 29, 2012   December 31, 2011 December 29, 2012 December 31, 2011
 
Net income $ 9,559 $ 12,255 $ 59,260 $ 50,243
Income tax expense 5,613 6,899 31,654 26,561
Interest expense, net (1) 11,815 11,821 47,660 36,675
Depreciation and amortization 5,410 4,265 18,853 16,229
Loss on extinguishment of debt (2)   10,431         10,431      
EBITDA (3) 42,828 35,240 167,858 129,708
Acquisition-related transaction costs   1,159     1,418     1,159     1,418  
Adjusted EBITDA (3) 43,987 36,658 169,017 131,126
Income tax expense (5,613 ) (6,899 ) (31,654 ) (26,561 )
Interest expense, net (1) (11,815 ) (11,821 ) (47,660 ) (36,675 )
Acquisition-related transaction costs (1,159 ) (1,418 ) (1,159 ) (1,418 )
Deferred income taxes 4,328 882 15,295 13,529
Amortization of deferred financing costs and bond discount 1,257 751 5,028 2,251
Realized gain on interest rate swap (1) (612 )
Reclassification to net interest expense for interest rate swap (1) 2,399 3,669
Share-based compensation expense 877 1,401 3,777 4,098
Excess tax benefits from share-based compensation 70 (8,031 ) (1,047 )
Changes in assets and liabilities, net of effects of business combinations   15,170     10,717     (4,085 )   (16,327 )
Net cash provided by operating activities $ 47,032   $ 32,740   $ 100,528   $ 72,033  

(1) Net interest expense for the fourth quarter of 2011 includes a charge of $0.3 million for the reclassification of the amount recorded in accumulated other comprehensive loss related to an interest rate swap and a $2.1 million charge relating to the write-off of the remaining amount recorded in accumulated other comprehensive loss related to the swap due to our prepayment and termination of $130.0 million of term loan borrowings. Net interest expense for fiscal 2011 includes a benefit of $0.6 million related to the realized gain on the interest rate swap, a charge of $1.6 million for the reclassification of the amount recorded in accumulated other comprehensive loss related to the swap and a $2.1 million charge relating to the write-off of the remaining amount recorded in accumulated other comprehensive loss related to the swap due to our prepayment and termination of $130.0 million of term loan borrowings.

4 of 7

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,044.46 +61.87 0.36%
S&P 500 1,983.49 +4.58 0.23%
NASDAQ 4,466.13 +21.2210 0.48%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs