Vital Farms (Nasdaq: VITL), a Certified B Corporation that offers a
range of ethically produced foods nationwide, today reported
financial results for its first quarter ended March 26, 2023.
Financial highlights for the first quarter
include:
- First Quarter 2023 Net Revenue increase of 54.7% to $119.2
million
- First Quarter 2023 Net Income of $7.2 million
- First Quarter 2023 Adjusted EBITDA of $13.9 million1
“2023 is off to a tremendous start, as we
achieved the highest net revenue and Adjusted EBITDA in a single
quarter in Vital Farms' history at $119.2 million and $13.9
million, respectively.1 This was driven by both strong internal
execution and robust consumer demand for our products as our
volumes grew 26% during the period,” said Russell Diez-Canseco,
Vital Farms’ President and CEO.
Diez-Canseco continued, “Vital Farms’ prolonged
success is grounded in our consistent focus on working with our
stakeholder community to generate sustained, positive outcomes.
Once again, our farmers continued to execute well during a tough
operating environment. The work ethic demonstrated by our crew
members and external partners to satisfy the needs of our customers
and consumers during the period was motivational. It underscores
the potential of our organization as we further our mission of
improving the lives of people, animals, and the planet through
food.”
1 Adjusted EBITDA is a non-GAAP financial
measure defined in the section titled “Non-GAAP Financial Measures”
below and is reconciled to net income, its closest comparable GAAP
measure, at the end of this release.
For the 13 Weeks Ended March 26,
2023
Net revenue increased 54.7% to
$119.2 million in the first quarter of 2023, compared to $77.1
million in the first quarter of 2022. Growth in net revenue in the
first quarter of 2023 was driven by volume gains of 26%, primarily
due to increases at both new and existing customers, as well as
pricing increases.
Gross profit was $42.7 million,
or 35.8% of net revenue, in the first quarter of 2023, compared to
$21.7 million, or 28.2% of net revenue, in the prior year quarter.
The change in gross profit was primarily driven by higher sales.
Gross margin benefited from increased pricing across our portfolio,
partially offset by headwinds that included higher input costs
(inclusive of commodity impacts) across our shell egg and butter
businesses, as well as higher packaging costs.
Income from operations in the
first quarter of 2023 was $10.9 million, compared to a loss from
operations of $4.1 million in the first quarter of 2022. The change
in income from operations was primarily attributable to higher
sales and gross profit, partially offset by increased
employee-related expenses as we grew headcount to support our
growth, as well as higher marketing costs.
Net income was $7.2 million in
the first quarter of 2023, compared to a net loss of $1.5 million
in the prior year quarter.
Net income per diluted share
was $0.16 for the first quarter of 2023, compared to net loss per
diluted share of $0.04 in the prior year quarter.
Adjusted EBITDA was $13.9
million, or 11.6% of net revenue, in the first quarter of 2023,
compared to Adjusted EBITDA of $0.5 million, or 0.7% of net
revenue, in the first quarter of 2022. The change in Adjusted
EBITDA was primarily due to higher sales and improved gross profit
performance, partially offset by increased employee-related
expenses and higher marketing spend. Our Adjusted EBITDA excludes
certain non-cash items. Adjusted EBITDA is a non-GAAP financial
measure defined in the section titled “Non-GAAP Financial Measures”
below and is reconciled to net income, its closest comparable GAAP
measure, at the end of this release.
Balance Sheet and Cash Flow
Highlights
Cash, cash equivalents and marketable
securities were $83.1 million as of March 26, 2023, and we
had no outstanding debt. Net cash provided by operating activities
was $5.4 million for the 13 weeks ended March 26, 2023, compared to
net cash used in operating activities of $4.9 million for the
13-week period ended March 27, 2022.
Capital expenditures totaled
$1.8 million in the 13 weeks ended March 26, 2023, compared to $1.7
million in the prior year period.
Update on Fiscal 2023
Outlook
Thilo Wrede, Vital Farms' Chief Financial
Officer, commented: “We are pleased with our outstanding financial
performance in the first quarter. Looking forward, we believe Vital
Farms is well positioned to navigate the dynamic operating
environment that is likely to persist throughout fiscal 2023.”
- For the full fiscal year 2023, management is maintaining
guidance for net revenue of more than $450 million, expecting
higher net revenue growth rates and gross margin in the first half
than in the second half of the year.
- Management is also maintaining guidance for Adjusted EBITDA of
more than $30 million for the full fiscal year 2023, expecting
Adjusted EBITDA in the first half likely to exceed Adjusted EBITDA
in the second half of the year.
- Finally, management continues to expect fiscal year 2023
capital expenditures in the range of $25 to $30 million.
Vital Farms’ guidance continues to assume that
there are no additional significant disruptions to the supply chain
or its customers or consumers, including any issues from adverse
macroeconomic factors. Vital Farms cannot provide a reconciliation
between its forecasted Adjusted EBITDA and net income (loss), its
most directly comparable GAAP measure, without unreasonable effort
due to the unavailability of reliable estimates for income taxes,
among other items. These items are not within our control and may
vary greatly between periods and could significantly impact future
financial results.
Conference Call and Webcast
Details
Vital Farms will host a conference call and
webcast at 8:30 a.m. ET today to discuss the results. To
participate on the call and receive dial in information, please
register here: Q1 2023 VITL Conference Call. Alternatively,
participants may access the live webcast on the Vital Farms
Investor Relations website at https://investors.vitalfarms.com
under “Events.” The webcast will be archived in 30 days.
About Vital Farms
Vital Farms (Nasdaq: VITL) is a Certified B
Corporation that offers a range of ethically produced foods
nationwide. Started on a single farm in Austin, Texas in 2007,
Vital Farms has become a national consumer brand that works with
over 300 family farms and is the leading U.S. brand of
pasture-raised eggs by retail dollar sales. Vital Farms' ethics are
exemplified by its focus on the humane treatment of farm animals
and sustainable farming practices. In addition, as a Delaware
public benefit corporation, Vital Farms prioritizes the long-term
benefits of each of its stakeholders, including farmers and
suppliers, customers and consumers, communities and the
environment, crew members, and stockholders. Vital Farms' products,
including shell eggs, butter, hard-boiled eggs, and liquid whole
eggs, are sold in over 22,000 stores nationwide. For more
information, please visit www.vitalfarms.com.
Forward-Looking Statements
This press release and the earnings call
referencing this press release contain “forward-looking”
statements, as that term is defined under the federal securities
laws, including but not limited to statements regarding Vital
Farms’ market opportunity, anticipated growth, and future financial
performance, including management’s outlook for fiscal year 2023
and management’s long-term outlook. These forward-looking
statements are based on Vital Farms’ current assumptions,
expectations, and beliefs and are subject to substantial risks,
uncertainties, assumptions, and changes in circumstances that may
cause Vital Farms’ actual results, performance, or achievements to
differ materially from those expressed or implied in any
forward-looking statement.
The risks and uncertainties referred to above
include, but are not limited to: Vital Farms’ expectations
regarding its revenue, expenses, and other operating results; Vital
Farms’ ability to acquire new customers, to successfully retain
existing customers, and to attract and retain its farmers,
suppliers, distributors, and co-manufacturers; Vital Farms’ ability
to sustain or increase its profitability; Vital Farms’ ability to
procure sufficient high-quality eggs, cream, and other raw
materials; Vital Farms' ability to successfully enter into new
product categories; real or perceived quality with Vital Farms’
products or other issues that adversely affect Vital Farms’ brand
and reputation; changes in the tastes and preferences of consumers;
the financial condition of, and Vital Farms’ relationships with,
its farmers, suppliers, co-manufacturers, distributors, retailers,
and foodservice customers, as well as the health of the foodservice
industry generally; the impact of agricultural risks, including
diseases such as avian influenza; the ability of Vital Farms, its
farmers, suppliers, and its co-manufacturers to comply with food
safety, environmental or other laws or regulations; the effects of
a public health pandemic or contagious disease on Vital Farms'
supply chain, the demand for its products, and on overall economic
conditions and consumer confidence and spending levels; future
investments in its business, anticipated capital expenditures and
estimates regarding capital requirements; anticipated changes in
Vital Farms’ product offerings and Vital Farms’ ability to innovate
to offer successful new products; the costs and success of
marketing efforts; Vital Farms’ ability to effectively manage its
growth and to compete effectively with existing competitors and new
market entrants; the impact of adverse economic conditions,
including as a result of the war between Ukraine and Russia,
increased interest rates, and inflation; the potential negative
impact of Vital Farms’ focus on a specific public benefit purpose
and producing a positive effect for society on its financial
performance; seasonality; and the growth rates of the markets in
which Vital Farms competes.
These risks and uncertainties are more fully
described in Vital Farms’ filings with the Securities and Exchange
Commission (SEC), including in the sections entitled “Risk Factors”
in its Annual Report on Form 10-K for the fiscal year ended
December 25, 2022, which Vital Farms filed on March 9, 2023, and
other filings and reports that Vital Farms may file from time to
time with the SEC. Moreover, Vital Farms operates in a very
competitive and rapidly changing environment. New risks emerge from
time to time. It is not possible for management to predict all
risks, nor can Vital Farms assess the impact of all factors on its
business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in any forward-looking statements Vital Farms may make.
In light of these risks, uncertainties, and assumptions, Vital
Farms cannot guarantee future results, levels of activity,
performance, achievements, or events and circumstances reflected in
the forward-looking statements will occur. Forward-looking
statements represent management’s beliefs and assumptions only as
of the date of this press release. Vital Farms disclaims any
obligation to update forward-looking statements except as required
by law.
Media: Rob Discher
rob.discher@vitalfarms.com
Investors: Matt Siler
Matt.Siler@vitalfarms.com
VITAL FARMS, INC. CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (Amounts in thousands,
except share amounts) (Unaudited) |
|
|
|
|
|
13-Weeks Ended |
|
|
|
March 26, 2023 |
|
|
March 27, 2022 |
|
Net revenue |
|
$ |
119,172 |
|
|
$ |
77,058 |
|
Cost of goods sold |
|
|
76,504 |
|
|
|
55,358 |
|
Gross profit |
|
|
42,668 |
|
|
|
21,700 |
|
Operating expenses: |
|
|
|
|
|
|
Selling, general and administrative |
|
|
23,946 |
|
|
|
17,624 |
|
Shipping and distribution |
|
|
7,826 |
|
|
|
8,162 |
|
Total operating expenses |
|
|
31,772 |
|
|
|
25,786 |
|
Income (loss) from operations |
|
|
10,896 |
|
|
|
(4,086 |
) |
Other income, net: |
|
|
|
|
|
|
Interest expense |
|
|
(139 |
) |
|
|
(8 |
) |
Interest income |
|
|
340 |
|
|
|
130 |
|
Other (expense) income, net |
|
|
(1,425 |
) |
|
|
49 |
|
Total other income, net |
|
|
(1,224 |
) |
|
|
171 |
|
Net income (loss) before income taxes |
|
|
9,672 |
|
|
|
(3,915 |
) |
Income tax provision (benefit) |
|
|
2,522 |
|
|
|
(2,377 |
) |
Net income (loss) |
|
|
7,150 |
|
|
|
(1,538 |
) |
Less: Net loss attributable to noncontrolling interests |
|
|
— |
|
|
|
(2 |
) |
Net income (loss) attributable to Vital Farms, Inc. common
stockholders |
|
$ |
7,150 |
|
|
$ |
(1,536 |
) |
Net income (loss) per share attributable to Vital Farms, Inc.
stockholders: |
|
|
|
|
|
|
Basic: |
|
$ |
0.18 |
|
|
$ |
(0.04 |
) |
Diluted: |
|
$ |
0.16 |
|
|
$ |
(0.04 |
) |
Weighted average common shares outstanding: |
|
|
|
|
|
|
Basic: |
|
|
40,764,546 |
|
|
|
40,532,779 |
|
Diluted: |
|
|
43,398,336 |
|
|
|
40,532,779 |
|
VITAL FARMS, INC. CONDENSED CONSOLIDATED
BALANCE SHEETS (Amounts in thousands, except share
amounts) |
|
|
|
|
|
March 26, 2023 |
|
|
December 25, 2022 |
|
|
|
(Unaudited) |
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
25,838 |
|
|
$ |
12,914 |
|
Investment securities, available-for-sale |
|
|
57,233 |
|
|
|
65,814 |
|
Accounts receivable, net |
|
|
40,199 |
|
|
|
40,227 |
|
Inventories |
|
|
33,942 |
|
|
|
26,849 |
|
Prepaid expenses and other current assets |
|
|
5,342 |
|
|
|
3,810 |
|
Total current assets |
|
|
162,554 |
|
|
|
149,614 |
|
Property, plant and equipment, net |
|
|
58,772 |
|
|
|
59,155 |
|
Operating lease right-of-use assets |
|
|
1,549 |
|
|
|
1,895 |
|
Goodwill and other assets |
|
|
3,904 |
|
|
|
4,002 |
|
Total assets |
|
$ |
226,779 |
|
|
$ |
214,666 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
26,586 |
|
|
$ |
25,972 |
|
Accrued liabilities |
|
|
18,854 |
|
|
|
18,477 |
|
Operating lease liabilities, current |
|
|
970 |
|
|
|
1,208 |
|
Finance lease liabilities, current |
|
|
1,596 |
|
|
|
1,570 |
|
Income taxes payable |
|
|
2,514 |
|
|
|
425 |
|
Total current liabilities |
|
|
50,520 |
|
|
|
47,652 |
|
Operating lease liabilities, non-current |
|
|
770 |
|
|
|
892 |
|
Finance lease liabilities, non-current |
|
|
6,617 |
|
|
|
7,023 |
|
Other liabilities |
|
|
1,342 |
|
|
|
767 |
|
Total liabilities |
|
$ |
59,249 |
|
|
$ |
56,334 |
|
Commitments and contingencies (Note 19) |
|
|
— |
|
|
|
— |
|
Stockholders’ equity: |
|
|
|
|
|
|
Common stock, $0.0001 par value per share, 310,000,000 shares
authorized as of March 26, 2023 and December 25, 2022; 40,839,050
and 40,746,990 shares issued and outstanding as of March 26, 2023
and December 25, 2022, respectively |
|
|
4 |
|
|
|
4 |
|
Additional paid-in capital |
|
|
157,343 |
|
|
|
155,716 |
|
Retained earnings |
|
|
11,309 |
|
|
|
4,159 |
|
Accumulated other comprehensive loss |
|
|
(1,126 |
) |
|
|
(1,547 |
) |
Total stockholders’ equity |
|
$ |
167,530 |
|
|
$ |
158,332 |
|
Total liabilities and stockholders’ equity |
|
$ |
226,779 |
|
|
$ |
214,666 |
|
VITAL FARMS, INC. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (Amounts in
thousands) (Unaudited) |
|
|
|
|
|
13-Weeks Ended |
|
|
|
March 26, 2023 |
|
|
March 27, 2022 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
Net income (loss) |
|
$ |
7,150 |
|
|
$ |
(1,538 |
) |
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
1,693 |
|
|
|
948 |
|
Amortization of right-of-use assets |
|
|
793 |
|
|
|
413 |
|
Amortization of available-for-sale debt securities |
|
|
163 |
|
|
|
321 |
|
Stock-based compensation expense |
|
|
2,241 |
|
|
|
1,296 |
|
Increase (decrease) in inventory provision |
|
|
782 |
|
|
|
(29 |
) |
Deferred taxes |
|
|
445 |
|
|
|
(2,572 |
) |
Unrealized loss on derivative instruments |
|
|
1,047 |
|
|
|
— |
|
Other |
|
|
19 |
|
|
|
228 |
|
Net change in operating assets and liabilities |
|
|
(8,930 |
) |
|
|
(4,006 |
) |
Net cash provided by (used in) operating activities |
|
$ |
5,403 |
|
|
$ |
(4,939 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
|
(1,802 |
) |
|
|
(1,686 |
) |
Purchases of available-for-sale debt securities |
|
|
— |
|
|
|
(13,973 |
) |
Maturities and call redemptions of available-for-sale debt
securities |
|
|
8,935 |
|
|
|
14,254 |
|
Proceeds from the sale of property, plant and equipment |
|
|
1,054 |
|
|
|
50 |
|
Cash paid for purchases of derivative instruments |
|
|
(220 |
) |
|
|
— |
|
Return of investment in variable interest entity |
|
|
552 |
|
|
|
— |
|
Net cash provided by (used in) investing activities |
|
$ |
8,519 |
|
|
$ |
(1,355 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
Proceeds from borrowing under revolving line of credit |
|
|
7,500 |
|
|
|
— |
|
Repayment of revolving line of credit |
|
|
(7,500 |
) |
|
|
— |
|
Payment of contingent consideration |
|
|
— |
|
|
|
(26 |
) |
Principal payments under finance lease obligations |
|
|
(384 |
) |
|
|
(126 |
) |
Proceeds from exercise of stock options |
|
|
— |
|
|
|
254 |
|
Payment of tax withholding obligation on RSU shares withheld |
|
|
(614 |
) |
|
|
— |
|
Net cash (used in) provided by financing activities |
|
$ |
(998 |
) |
|
$ |
102 |
|
Net increase (decrease) in cash and cash
equivalents |
|
|
12,924 |
|
|
|
(6,192 |
) |
Cash and cash equivalents at beginning of the period |
|
|
12,914 |
|
|
|
30,966 |
|
Cash and cash equivalents at end of the period |
|
$ |
25,838 |
|
|
$ |
24,774 |
|
Supplemental disclosure of cash flow
information: |
|
|
|
|
|
|
Cash paid for interest |
|
$ |
134 |
|
|
$ |
8 |
|
Cash paid for income taxes |
|
$ |
2 |
|
|
$ |
7 |
|
Supplemental disclosure of non-cash investing and
financing activities: |
|
|
|
|
|
|
Purchases of property, plant and equipment included in accounts
payable and accrued liabilities |
|
$ |
891 |
|
|
$ |
2,147 |
|
Non-GAAP Financial Measures
We report our financial results in accordance
with GAAP. However, management believes that Adjusted EBITDA and
Adjusted EBITDA Margin, non-GAAP financial measures, provide
investors with additional useful information in evaluating our
performance.
Adjusted EBITDA and Adjusted EBITDA Margin are
financial measures that are not required by or presented in
accordance with GAAP. We believe that Adjusted EBITDA and Adjusted
EBITDA Margin, when taken together with our financial results
presented in accordance with GAAP, provide meaningful supplemental
information regarding our operating performance and facilitate
internal comparisons of our historical operating performance on a
more consistent basis by excluding certain items that may not be
indicative of our business, results of operations or outlook. In
particular, we believe that the use of Adjusted EBITDA and Adjusted
EBITDA Margin are helpful to our investors as they are measures
used by management in assessing the health of our business,
determining incentive compensation and evaluating our operating
performance, as well as for internal planning and forecasting
purposes.
We calculate Adjusted EBITDA as net income,
adjusted to exclude: (1) depreciation and amortization; (2)
(benefit) or provision for income taxes as applicable; (3)
stock-based compensation expense; (4) interest expense; (5) change
in fair value of contingent consideration; (6) interest income; and
(7) the costs related to the discontinuation of our convenient
breakfast product line. We believe the costs directly related to
the convenient breakfast exit should be excluded as they are
unlikely to recur. We calculate Adjusted EBITDA Margin as Adjusted
EBITDA divided by Net Revenue.
Adjusted EBITDA and Adjusted EBITDA Margin are
presented for supplemental informational purposes only, have
limitations as analytical tools and should not be considered in
isolation or as a substitute for financial information presented in
accordance with GAAP. Some of the limitations of Adjusted EBITDA
and Adjusted EBITDA Margin include that (1) they do not properly
reflect capital commitments to be paid in the future, (2) although
depreciation and amortization are non-cash charges, the underlying
assets may need to be replaced and Adjusted EBITDA and Adjusted
EBITDA Margin do not reflect these capital expenditures, (3) they
do not consider the impact of stock-based compensation expense, (4)
they do not include costs related to the discontinuation of our
convenient breakfast product line; (5) they do not reflect other
non-operating expenses, including interest expense; (6) they do not
consider the impact of any contingent consideration liability
valuation adjustments; and (7) they do not reflect tax payments
that may represent a reduction in cash available to us. In
addition, our use of Adjusted EBITDA and Adjusted EBITDA Margin may
not be comparable to similarly titled measures of other companies
because they may not calculate Adjusted EBITDA and Adjusted EBITDA
Margin in the same manner, limiting the usefulness as comparative
measures. Because of these limitations, when evaluating our
performance, you should consider Adjusted EBITDA and Adjusted
EBITDA Margin alongside other financial measures, including our net
income and other results stated in accordance with GAAP.
The following table presents a reconciliation of
Adjusted EBITDA to net income (loss), and presents Adjusted EBITDA
Margin to net income (loss) margin, the most directly comparable
financial measures stated in accordance with GAAP, for the 13-week
periods presented.
VITAL FARMS, INC. ADJUSTED EBITDA
RECONCILIATION (Amounts in thousands)
(Unaudited) |
|
|
|
|
|
13-Weeks Ended |
|
|
|
March 26, 2023 |
|
|
March 27, 2022 |
|
|
|
(in thousands) |
|
Net income (loss) |
|
$ |
7,150 |
|
|
$ |
(1,538 |
) |
Depreciation and amortization 1 |
|
|
2,140 |
|
|
|
907 |
|
Stock-based compensation expense |
|
|
2,241 |
|
|
|
1,296 |
|
Costs related to our exit of the convenient breakfast product
line |
|
|
- |
|
|
|
2,341 |
|
Income tax provision (benefit) |
|
|
2,522 |
|
|
|
(2,377 |
) |
Interest expense |
|
|
139 |
|
|
|
8 |
|
Change in fair value of contingent consideration 2 |
|
|
- |
|
|
|
7 |
|
Interest income |
|
|
(340 |
) |
|
|
(130 |
) |
Adjusted EBITDA |
|
$ |
13,852 |
|
|
$ |
514 |
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
119,172 |
|
|
$ |
77,058 |
|
Net income (loss) margin3 |
|
|
6.0 |
% |
|
|
(2.0 |
)% |
Adjusted EBITDA margin4 |
|
|
11.6 |
% |
|
|
0.7 |
% |
(1) |
Amount also includes finance lease amortization. |
|
|
(2) |
Amount reflects the change in fair value of a contingent
consideration liability in connection with our 2014 acquisition of
certain assets of Heartland Eggs. |
|
|
(3) |
Net income (loss) margin is calculated by dividing net income
(loss) by net revenue. |
|
|
(4) |
Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by
net revenue. |
Vital Farms (NASDAQ:VITL)
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부터 6월(6) 2024 으로 7월(7) 2024
Vital Farms (NASDAQ:VITL)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024