The Simply Good Foods Company Reports Fiscal Fourth Quarter And Full Fiscal Year 2021 Financial Results and Provides Full Year 2022 Outlook
Fourth Quarter Highlights:(1)
- Net sales increased 16.9% driven by solid Atkins and Quest performance
- Gross profit margin of 40.2%, an increase of 60 basis points
- Net income(2) of
$18.2 million versus a net loss(2) of$39.3 million - Earnings per diluted share(2) of
$0.19 versus a loss per diluted share of$(0.41) - Adjusted Diluted EPS(3) of
$0.29 versus$0.20 - Adjusted EBITDA(4) increased 30.9% to
$48.5 million - Full year fiscal 2022 outlook:
- Net sales expected to increase 8-10% versus fiscal year 2021, including a 1 percentage point headwind related to the European business exit
- Adjusted EBITDA(4,6) anticipated to increase slightly greater than the net sales growth rate
- Adjusted Diluted EPS(3,6) expected to increase greater than the Adjusted EBITDA(4,6) growth rate
“I’m pleased with our fourth quarter and fiscal 2021 performance as our team executed well against our plan under improving, yet challenging circumstances,” said
“Fourth quarter fiscal 2021 net sales growth was driven by increasing household penetration, improving shopper trips and greater consumer mobility versus the year ago period.
“As we look to fiscal 2022, we are well positioned to build on our momentum and deliver solid net sales and earnings growth. In Atkins and Quest we have two strong brands with advertising, marketing and innovation plans in place to drive growth. Specifically, we expect full year fiscal 2022 net sales to increase 8-10% versus last year and Adjusted EBITDA(4,6) to increase slightly greater than the net sales growth rate. This outlook assumes no meaningful change in workplace mobility. We anticipate that net sales growth in the first half of fiscal year 2022 will be stronger than the second half of fiscal 2022 as year-over-year comparisons are sequentially more difficult as we proceed through the year.”
Fiscal Fourth Quarter 2021 Results
Net sales increased
Gross profit was
In the fourth quarter of fiscal 2021, the Company reported net income of
Operating expenses of
- Selling and marketing expenses increased
$6.3 million to$30.8 million driven by higher brand building initiatives reinstated following a decline in the year ago period due to lower nutritional snacking category trends related to COVID-19 movement restrictions. - General and administrative expenses declined
$2.8 million to$28.5 million primarily due to lower integration and restructuring costs versus last year. Higher incentive compensation was offset by lower corporate expenses, cost control measures and Quest acquisition synergies.
Interest expense was
Adjusted EBITDA(4), a non-GAAP financial measure used by the Company that makes certain adjustments to net income calculated under GAAP, increased 30.9% to
In the fourth quarter of fiscal 2021, the Company reported earnings per diluted share of
Adjusted Diluted EPS(3), a non-GAAP financial measure used by the Company that makes certain adjustments to Diluted EPS calculated under GAAP, was
Fifty-Two Weeks Ended
- Net sales increased 23.1%, or
$189.0 million , to$1,005.6 million - Gross profit margin of 40.7%, an increase of 100 basis points
- Net income(2) decreased
$24.8 million , to$40.9 million - Earnings per diluted share(2) of
$0.42 versus$0.35 - Adjusted Diluted EPS(3) of
$1.26 versus$0.91 - Adjusted EBITDA(4) increased 34.7%, to
$207.3 million
Net sales increased
Gross profit was
In fiscal 2021 the Company reported net income of
Operating expenses of
- Selling and marketing expenses increased 19.5% primarily due to the inclusion of Quest and higher brand building initiatives in the second-half of fiscal 2021 that were reinstated following a decline in the year ago period due to lower nutritional snacking category trends related to COVID-19 movement restrictions.
- General and administrative expenses of
$106.2 million were about the same as the year ago period. Higher incentive compensation was offset by overall cost control measures, lower corporate expenses, a$9.0 million decline in costs related to the Quest restructuring and integration, as well as Quest integration synergies.
Adjusted EBITDA(4), a non-GAAP financial measure used by the Company that makes certain adjustments to net income calculated under GAAP, increased 34.7% to
For the full year fiscal 2021, the Company reported Diluted EPS of
Adjusted Diluted EPS(3), a non-GAAP financial measure used by the Company that makes certain adjustments to Diluted EPS, of
Balance Sheet and Cash Flow
Full-year fiscal 2021 combined cash flow from operations was
Outlook
Assuming no meaningful improvement in workplace mobility and no significant supply chain cost inflation from current levels, the Company anticipates the following in fiscal 2022:
- Net sales to increase 8-10% versus last year. Included in the sales outlook is about a 1 percentage point headwind related to the European business exit that was completed in the fourth quarter of fiscal 2021;
- Modest gross margin contraction as supply chain cost inflation should largely be offset by the price increase that went into effect in September and cost savings initiatives;
- Full-year fiscal 2022 Adjusted EBITDA(4,6) to increase slightly greater than the net sales growth rate; and,
- Adjusted Diluted EPS(3,6) to increase greater than the Adjusted EBITDA growth rate.
________________________________________
(1) All comparisons for the fourth quarter ended
(2) Reflects, for the reporting period, the Company’s private warrants to purchase shares of common stock being classified as a liability and measured at fair value, with changes in fair value each period reported in earnings in accordance with Accounting Standards Codification 815-40, Derivatives and Hedging: Contracts in Entity’s Own Equity, which affected net income and fully diluted shares outstanding.
(3) Adjusted Diluted Earnings Per Share (“EPS”) is a non-GAAP financial measure. The Company excludes acquisition related costs, such as business transaction costs, integration expense and depreciation and amortization expense in calculating Adjusted Diluted EPS. Please refer to “Reconciliation of Adjusted Diluted Earnings Per Share” in this press release for an explanation and reconciliation of this non-GAAP financial measure.
(4) Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") and Adjusted EBITDA are non-GAAP financial measures. Please refer to “Reconciliation of EBITDA and Adjusted EBITDA” in this press release for an explanation and reconciliation of these non-GAAP financial measures.
(5) Net Debt to Adjusted EBITDA is a non-GAAP financial measure. Please refer to “Reconciliation of Net Debt to Adjusted EBITDA” in this press release for an explanation and reconciliation of this non-GAAP financial measure.
(6) The Company does not provide a forward-looking reconciliation of Adjusted Diluted Earnings Per Share to Earnings Per Share or Adjusted EBITDA to Net Income, the most directly comparable GAAP financial measures, expected for 2022, because we are unable to provide such a reconciliation without unreasonable effort due to the unavailability of reliable estimates for certain components of consolidated net income and the respective reconciliations, including the timing of and amount of integration costs and restructuring charges associated with the Quest acquisition, and the inherent difficulty of predicting what the changes in these components will be throughout the fiscal year. As these items may vary greatly between periods, we are unable to address the probable significance of the unavailable information, which could significantly affect our future financial results.
Conference Call and Webcast Information
The Company will host a conference call with members of the executive management team to discuss these results today,
In addition, the call and accompanying presentation slides will be broadcast live over the Internet hosted at the “Investor Relations” section of the Company’s website at http://www.thesimplygoodfoodscompany.com. A telephone replay will be available approximately two hours after the call concludes and will be available through
About
Forward Looking Statements
Certain statements made herein are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by or include words such as “will”, “expect”, “intends” or other similar words, phrases or expressions. These statements relate to future events or our future financial or operational performance and involve known and unknown risks, uncertainties and other factors that could cause our actual results, levels of activity, performance or achievement to differ materially from those expressed or implied by these forward-looking statements. We caution that these forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Undue reliance should not be placed on forward-looking statements. These statements reflect our current views with respect to future events, are based on assumptions and are subject to risks and uncertainties. These forward-looking statements include, among other things, statements regarding the effect of the novel coronavirus (“COVID-19”) on our business, financial condition and results of operations, our ability to continue to operate at a profit, the sufficiency of our sources of liquidity and capital, our ability to maintain current operation levels, our ability to maintain and gain market acceptance for our products or new products, our ability to capitalize on attractive opportunities, our ability to respond to competition and changes in the economy, unexpected costs, the amounts of or changes with respect to certain anticipated restructuring, raw materials and other costs, difficulties and delays in achieving the synergies and cost savings in connection with the Quest Acquisition, changes in the business environment in which we operate including general financial, economic, capital market, regulatory and political conditions affecting us and the industry in which we operate, changes in consumer preferences and purchasing habits, our ability to maintain adequate product inventory levels to timely supply customer orders, changes in taxes, tariffs, duties, governmental laws and regulations, the availability of or competition for other brands, assets or other opportunities for investment by us or to expand our business, competitive product and pricing activity, difficulties of managing growth profitably, the loss of one or more members of our management team, expansion of our wellness platform and other risks and uncertainties indicated in the Company’s Form 10-K, Form 10-Q, and Form 8-K reports (including all amendments to those reports) filed with the
Investor Contact
Vice President, Investor Relations,
(720) 768-2681
mpogharian@simplygoodfoodsco.com
Consolidated Balance Sheets
(Unaudited, dollars in thousands, except share data)
| Assets | ||||||||||
| Current assets: | ||||||||||
| Cash | $ | 75,345 | $ | 95,847 | ||||||
| Accounts receivable, net | 111,456 | 89,740 | ||||||||
| Inventories | 97,269 | 59,085 | ||||||||
| Prepaid expenses | 4,902 | 3,644 | ||||||||
| Other current assets | 9,694 | 11,947 | ||||||||
| Total current assets | 298,666 | 260,263 | ||||||||
| Long-term assets: | ||||||||||
| Property and equipment, net | 16,584 | 11,850 | ||||||||
| Intangible assets, net | 1,139,041 | 1,158,768 | ||||||||
| 543,134 | 544,774 | |||||||||
| Other long-term assets | 54,792 | 32,790 | ||||||||
| Total assets | $ | 2,052,217 | $ | 2,008,445 | ||||||
| Liabilities and stockholders’ equity | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 59,713 | $ | 32,240 | ||||||
| Accrued interest | 60 | 960 | ||||||||
| Accrued expenses and other current liabilities | 53,606 | 38,007 | ||||||||
| Current maturities of long-term debt | 285 | 271 | ||||||||
| Total current liabilities | 113,664 | 71,478 | ||||||||
| Long-term liabilities: | ||||||||||
| Long-term debt, less current maturities | 451,269 | 596,879 | ||||||||
| Deferred income taxes | 93,755 | 84,352 | ||||||||
| Warrant liability | 159,835 | 93,638 | ||||||||
| Other long-term liabilities | 44,890 | 22,765 | ||||||||
| Total liabilities | 863,413 | 869,112 | ||||||||
| Stockholders’ equity: | ||||||||||
| Preferred stock, |
— | — | ||||||||
| Common stock, |
959 | 958 | ||||||||
| (2,145 | ) | (2,145 | ) | |||||||
| Additional paid-in-capital | 1,085,001 | 1,076,472 | ||||||||
| Retained earnings | 105,807 | 64,927 | ||||||||
| Accumulated other comprehensive loss | (818 | ) | (879 | ) | ||||||
| Total stockholders’ equity | 1,188,804 | 1,139,333 | ||||||||
| Total liabilities and stockholders’ equity | $ | 2,052,217 | $ | 2,008,445 | ||||||
Consolidated Statements of Operations and Comprehensive Income
(Unaudited, dollars in thousands, except share data)
| 13-Weeks Ended | 13-Weeks Ended | 52-Weeks Ended | 52-Weeks Ended | |||||||||||||||||
| Net sales | $ | 259,853 | $ | 222,286 | $ | 1,005,613 | $ | 816,641 | ||||||||||||
| Cost of goods sold | 155,396 | 134,184 | 595,847 | 492,313 | ||||||||||||||||
| Gross profit | 104,457 | 88,102 | 409,766 | 324,328 | ||||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| Selling and marketing | 30,757 | 24,484 | 112,928 | 94,469 | ||||||||||||||||
| General and administrative | 28,536 | 31,290 | 106,181 | 106,251 | ||||||||||||||||
| Depreciation and amortization | 4,339 | 4,271 | 16,982 | 15,259 | ||||||||||||||||
| Business transaction costs | — | 225 | — | 27,125 | ||||||||||||||||
| Loss on impairment | — | 3,000 | — | 3,000 | ||||||||||||||||
| Total operating expenses | 63,632 | 63,270 | 236,091 | 246,104 | ||||||||||||||||
| Income from operations | 40,825 | 24,832 | 173,675 | 78,224 | ||||||||||||||||
| Other income (expense): | ||||||||||||||||||||
| Interest income | 80 | 23 | 84 | 1,516 | ||||||||||||||||
| Interest expense | (7,205 | ) | (8,931 | ) | (31,557 | ) | (32,813 | ) | ||||||||||||
| (Loss) gain in fair value change of warrant liability | (5,483 | ) | (51,717 | ) | (66,197 | ) | 30,938 | |||||||||||||
| Gain on legal settlement | — | — | 5,000 | — | ||||||||||||||||
| (Loss) gain on foreign currency transactions | (717 | ) | 1,254 | (5 | ) | 658 | ||||||||||||||
| Other (expense) income | (369 | ) | 337 | (140 | ) | 441 | ||||||||||||||
| Total other (expense) income | (13,694 | ) | (59,034 | ) | (92,815 | ) | 740 | |||||||||||||
| Income (loss) before income taxes | 27,131 | (34,202 | ) | 80,860 | 78,964 | |||||||||||||||
| Income tax expense | 8,885 | 5,088 | 39,980 | 13,326 | ||||||||||||||||
| Net income (loss) | $ | 18,246 | $ | (39,290 | ) | $ | 40,880 | $ | 65,638 | |||||||||||
| Other comprehensive (loss) income: | ||||||||||||||||||||
| Foreign currency translation adjustments | (232 | ) | 37 | 61 | (43 | ) | ||||||||||||||
| Comprehensive income (loss) | $ | 18,014 | $ | (39,253 | ) | $ | 40,941 | $ | 65,595 | |||||||||||
| Earnings (loss) per share: | ||||||||||||||||||||
| Basic | $ | 0.19 | $ | (0.41 | ) | $ | 0.43 | $ | 0.70 | |||||||||||
| Diluted | $ | 0.19 | $ | (0.41 | ) | $ | 0.42 | $ | 0.35 | |||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||
| Basic | 95,781,908 | 95,499,194 | 95,743,413 | 93,968,953 | ||||||||||||||||
| Diluted | 97,807,116 | 95,499,194 | 97,365,598 | 98,343,722 | ||||||||||||||||
Consolidated Statements of Cash Flows
(Unaudited, dollars in thousands)
| 52-Weeks Ended | 52-Weeks Ended | ||||||||||
| Operating activities | |||||||||||
| Net income | $ | 40,880 | $ | 65,638 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 18,174 | 16,007 | |||||||||
| Amortization of deferred financing costs and debt discount | 4,636 | 3,508 | |||||||||
| Stock compensation expense | 8,265 | 7,636 | |||||||||
| Loss on impairment | — | 3,000 | |||||||||
| Loss (gain) in fair value change of warrant liability | 66,197 | (30,938 | ) | ||||||||
| Estimated credit losses | 1,114 | — | |||||||||
| Unrealized loss (gain) on foreign currency transactions | 5 | (658 | ) | ||||||||
| Deferred income taxes | 9,403 | 8,216 | |||||||||
| Amortization of operating lease right-of-use asset | 5,051 | 3,848 | |||||||||
| Loss on operating lease right-of-use asset impairment | 686 | — | |||||||||
| Gain on lease termination | (156 | ) | — | ||||||||
| Other | (16 | ) | (389 | ) | |||||||
| Changes in operating assets and liabilities, net of acquisition: | |||||||||||
| Accounts receivable, net | (22,284 | ) | (18,288 | ) | |||||||
| Inventories | (39,349 | ) | 23,880 | ||||||||
| Prepaid expenses | (1,202 | ) | 680 | ||||||||
| Other current assets | 2,322 | (5,022 | ) | ||||||||
| Accounts payable | 25,923 | (8,736 | ) | ||||||||
| Accrued interest | (900 | ) | (733 | ) | |||||||
| Accrued expenses and other current liabilities | 15,423 | (5,572 | ) | ||||||||
| Other | (2,083 | ) | (3,156 | ) | |||||||
| Net cash provided by operating activities | 132,089 | 58,921 | |||||||||
| Investing activities | |||||||||||
| Purchases of property and equipment | (5,911 | ) | (1,736 | ) | |||||||
| Issuance of note receivable | (1,600 | ) | (500 | ) | |||||||
| Proceeds from note receivable | — | 1,250 | |||||||||
| Acquisition of business, net of cash acquired | — | (982,075 | ) | ||||||||
| Proceeds from sale of business | 5,800 | — | |||||||||
| Investments in intangible assets and other assets | (795 | ) | (933 | ) | |||||||
| Net cash used in investing activities | (2,506 | ) | (983,994 | ) | |||||||
| Financing activities | |||||||||||
| Proceeds from option exercises | 700 | 4,206 | |||||||||
| Tax payments related to issuance of restricted stock units | (435 | ) | (191 | ) | |||||||
| Proceeds from issuance of common stock | — | 352,542 | |||||||||
| Equity issuance costs | — | (3,323 | ) | ||||||||
| Payments on finance lease obligations | (314 | ) | (374 | ) | |||||||
| Principal payments of long-term debt | (150,000 | ) | (50,000 | ) | |||||||
| Repayments of Revolving Credit Facility | — | (25,000 | ) | ||||||||
| Proceeds from issuance of long-term debt | — | 460,000 | |||||||||
| Proceeds from Revolving Credit Facility | — | 25,000 | |||||||||
| Deferred financing costs | — | (8,208 | ) | ||||||||
| Net cash (used in) provided by financing activities | (150,049 | ) | 754,652 | ||||||||
| Cash | |||||||||||
| Net decrease in cash | (20,466 | ) | (170,421 | ) | |||||||
| Effect of exchange rate on cash | (36 | ) | (73 | ) | |||||||
| Cash at beginning of period | 95,847 | 266,341 | |||||||||
| Cash at end of period | $ | 75,345 | $ | 95,847 | |||||||
Reconciliation of EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA. EBITDA and Adjusted EBITDA are non-GAAP financial measures commonly used in our industry and should not be construed as alternatives to net income as an indicator of operating performance or as alternatives to cash flow provided by operating activities as a measure of liquidity (each as determined in accordance with GAAP).
The following unaudited table provides a reconciliation of EBITDA and Adjusted EBITDA to its most directly comparable GAAP measure, which is net income, for the thirteen weeks ended
| (In thousands) |
13-Weeks Ended | 13-Weeks Ended | 52-Weeks Ended | 52-Weeks Ended | ||||||||||||||||
| Net income (loss) | $ | 18,246 | $ | (39,290 | ) | $ | 40,880 | $ | 65,638 | |||||||||||
| Interest income | (80 | ) | (23 | ) | (84 | ) | (1,516 | ) | ||||||||||||
| Interest expense | 7,205 | 8,931 | 31,557 | 32,813 | ||||||||||||||||
| Income tax expense | 8,885 | 5,088 | 39,980 | 13,326 | ||||||||||||||||
| Depreciation and amortization | 4,666 | 4,400 | 18,174 | 16,007 | ||||||||||||||||
| EBITDA | 38,922 | (20,894 | ) | 130,507 | 126,268 | |||||||||||||||
| Business transaction costs | — | 225 | — | 27,125 | ||||||||||||||||
| Stock-based compensation expense | 2,499 | 1,691 | 8,265 | 7,636 | ||||||||||||||||
| Inventory step-up | — | — | — | 7,522 | ||||||||||||||||
| Integration of Quest | 470 | 1,307 | 2,928 | 10,742 | ||||||||||||||||
| Restructuring | 332 | 4,141 | 4,324 | 5,527 | ||||||||||||||||
| Non-core legal costs | — | 115 | — | 718 | ||||||||||||||||
| Loss (gain) in fair value change of warrant liability | 5,483 | 51,717 | 66,197 | (30,938 | ) | |||||||||||||||
| Gain on legal settlement | — | — | (5,000 | ) | — | |||||||||||||||
| Other (1) | 767 | (1,279 | ) | 52 | (688 | ) | ||||||||||||||
| Adjusted EBITDA | $ | 48,473 | $ | 37,023 | $ | 207,273 | $ | 153,912 | ||||||||||||
(1) Other items consist principally of exchange impact of foreign currency transactions and other expenses.
Reconciliation of Adjusted Diluted Earnings Per Share
Adjusted Diluted Earnings per Share. Adjusted Diluted Earnings per Share is a non-GAAP financial measure commonly used in our industry and should not be construed as an alternative to diluted earnings per share as an indicator of operating performance.
The following unaudited table below provides a reconciliation of Adjusted Diluted Earnings Per Share to its most directly comparable GAAP measure, which is diluted earnings per share, for the thirteen weeks ended
| 13-Weeks Ended | 13-Weeks Ended | 52-Weeks Ended | 52-Weeks Ended | |||||||||||||||||
| Diluted earnings per share | $ | 0.19 | $ | (0.41 | ) | $ | 0.42 | $ | 0.35 | |||||||||||
| Depreciation and amortization | 0.05 | 0.05 | 0.19 | 0.16 | ||||||||||||||||
| Business transaction costs | — | — | — | 0.28 | ||||||||||||||||
| Stock-based compensation expense | 0.03 | 0.02 | 0.08 | 0.08 | ||||||||||||||||
| Inventory step-up | — | — | — | 0.08 | ||||||||||||||||
| Integration of Quest | — | 0.01 | 0.03 | 0.11 | ||||||||||||||||
| Restructuring | — | 0.04 | 0.04 | 0.06 | ||||||||||||||||
| Non-core legal costs | — | — | — | 0.01 | ||||||||||||||||
| Loss in fair value change of warrant liability (3) | 0.06 | 0.54 | 0.68 | — | ||||||||||||||||
| Gain on legal settlement | — | — | (0.05 | ) | — | |||||||||||||||
| Other (1) | 0.01 | (0.01 | ) | — | (0.01 | ) | ||||||||||||||
| Tax effects of adjustments (2) | (0.02 | ) | (0.03 | ) | (0.08 | ) | (0.20 | ) | ||||||||||||
| Dilution impact from adjustments (3, 4) | (0.01 | ) | (0.01 | ) | (0.05 | ) | — | |||||||||||||
| Rounding (5) | (0.02 | ) | — | — | (0.01 | ) | ||||||||||||||
| Adjusted diluted earnings per share | $ | 0.29 | $ | 0.20 | $ | 1.26 | $ | 0.91 | ||||||||||||
(1) Other items consist principally of exchange impact of foreign currency transactions and other expenses.
(2) This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. The tax effect of each adjustment is computed (i) by dividing the gross amount of the adjustment, as shown in the EBITDA and Adjusted EBITDA reconciliation, by the number of diluted weighted average shares outstanding for the applicable fiscal period and (ii) applying an overall assumed statutory tax rate of 27% for the thirteen and fifty-two weeks ended
(3) Diluted earnings per share includes the fair value loss and related exclusion of anti-dilutive shares related to the private warrants in accordance with GAAP. With respect to the Company’s non-GAAP measure, the non-cash fair value loss is reversed. The fair value adjustments are a permanent tax difference and do not affect tax expense. Note, mark to market gain adjustments are already excluded from the numerator, and dilutive shares are included, in calculating diluted earnings per share in accordance with GAAP.
(4) As noted above, the Company excludes the non-cash fair value loss related to its Private Warrant liabilities. The Company subsequently considers the dilutive share count effect of such adjustment such that the shares excluded in accordance with GAAP are included in this non-GAAP measure.
(5) Adjusted Diluted Earnings Per Share amounts are computed independently for each quarter. Therefore, the sum of the quarterly Adjusted Diluted Earnings Per Share amounts may not equal the year to date Adjusted Diluted Earnings Per Share amounts due to rounding.
Reconciliation of Net Debt to Adjusted EBITDA
Net Debt to Adjusted EBITDA. Net Debt to Adjusted EBITDA is a non-GAAP financial measure which
The following unaudited table below provides a reconciliation of Net Debt to Adjusted EBITDA as of
| (In thousands) | |||||
| Net Debt: | |||||
| Total debt outstanding under the Credit Agreement | $ | 456,500 | |||
| Less: cash | (75,345 | ) | |||
| Net Debt as of |
$ | 381,155 | |||
| Adjusted EBITDA | $ | 207,273 | |||
| Net Debt to Adjusted EBITDA | 1.8 | x | |||
Source: Simply Good Foods USA, Inc.