Introduces Attractive Long-term Net Revenue, Adjusted EBITDA,
and EPS Growth Algorithm
Hostess Brands, Inc. (Nasdaq: TWNK) (“Hostess Brands” or the
“Company”), a leading sweet snacks company, will outline today the
Company’s long-term strategy to deliver attractive growth and
top-tier shareholder returns at its Investors Day at noon ET.
At the virtual event, Chief Executive Officer Andy Callahan and
other members of Hostess Brand’s leadership team will provide an
in-depth review of their strategy for the Company’s next phase of
growth as they highlight the Company’s pure-play snacking exposure
with a focus on faster growing snacking occasions, its
best-in-class business model and accelerating innovation and
marketing capabilities.
“We believe we have built a fantastic foundation at Hostess
Brands. While we are proud of our strong performance during a
period of unprecedented volatility, we are even more excited about
the future as we build the Company into a snacking powerhouse,”
said Callahan. “Today, we are introducing a new long-term growth
algorithm, which targets top-tier financial performance over the
long term.”
At today’s event, Hostess Brands will outline its strategy and
what it believes will be the key drivers of the next phase of its
organic growth:
- Business in growing spaces. Hostess Brands competes in,
and is focused on, fast-growing snacking occasions with meaningful
opportunity to grow. Our portfolio plays across a much wider
occasion map than sweet baked goods alone and the Company believes
it is well positioned to capitalize on these occasions.
- Best-in-class business model. The Company’s business
model is built on four key pillars – wide availability, beloved
brands, a unique go-to-market approach, and operational excellence
with an agile, resilient supply-chain.
- Innovation and marketing capabilities. Its
consumer-insight driven approach to innovation is designed to bring
incremental households into the franchise and its high ROI
marketing investments enables expansion into targeted snacking
occasions.
The updated financial targets as part of the new long-term
growth algorithm include:
- Organic revenue growth in the mid-single digits
- Adjusted EBITDA growth of 5-7%
- Earnings per share growth of 7-9%
Hostess Brands will also outline investments in a new brownfield
bakery to support their strong long-term growth outlook.
In addition, Hostess Brands believes its strong free cash flow
and balance sheet strength will provide ample dry powder to execute
strategic acquisitions driving the potential for additional growth
and shareholder value returns over time.
Webcast Information
Hostess will host a webcast of its virtual investor day today,
March 1st, beginning at noon ET, which can be accessed here. A live
question and answer session will follow management presentations.
Questions for presenters may be entered at any time during the
event on the webcast dashboard. Participants are encouraged to
pre-register for this event at the above link and log in to the
webcast approximately 5-10 minutes prior to the start of the
event.
The presentation will be available on the Company’s website,
hostessbrands.com. A replay of the full video webcast and
transcript, including the Q&A session, will be available within
48 hours following the conclusion of the event here and also on the
website.
About Hostess Brands, Inc.
Hostess Brands, Inc. (NASDAQ: TWNK) is a leading sweet snacks
company focused on developing, manufacturing, marketing, selling
and distributing products in North America under the Hostess® and
Voortman® brands. The Company produces a variety of new and classic
treats, including iconic Hostess® Donettes®, Twinkies®, CupCakes,
Ding Dongs® and Zingers®, as well as a variety of Voortman® cookies
and wafers. For more information about Hostess Brands, please visit
hostessbrands.com.
Non-GAAP Financial Measures
Adjusted EBITDA is a non-GAAP financial measure defined as net
income adjusted to exclude (i) interest expense, net, (ii)
depreciation and amortization (iii) income taxes and (iv)
share-based compensation, as further adjusted to eliminate the
impact of certain items that the Company does not consider
indicative of its ongoing operating performance. It should not be
construed as an alternative to net income as an indicator of
operating performance (as determined in accordance with GAAP). The
Adjusted EBITDA target included in the Company’s long-term growth
algorithm is forward-looking and does not include a reconciliation
to the most directly comparable GAAP financial measure because of
the inherent difficulty in forecasting and quantifying certain
amounts that would be necessary for such reconciliation.
Forward Looking Statements
This press release contains statements reflecting our views
about the future performance of Hostess Brands that constitute
“forward-looking statements” that involve substantial risks and
uncertainties. Forward-looking statements are generally identified
through the inclusion of words such as “believes,” “expects,”
“intends,” “estimates,” “projects,” “anticipates,” “will,” “plan,”
“may,” “should,” or similar language. Statements addressing our
future operating performance and statements addressing events and
developments that the Company expects or anticipate will occur are
also considered forward-looking statements. All forward looking
statements included herein are made only as of the date hereof. The
Company undertakes no obligation to update any forward-looking
statement, whether as a result of new information, future events,
or otherwise.
These statements inherently involve risks and uncertainties that
could cause actual results to differ materially from those
anticipated in such forward-looking statements. These risks and
uncertainties include, but are not limited to; our ability to
maintain, extend or expand our reputation and brand image; our
ability to protect our intellectual property rights; our ability to
leverage our brand value to compete against lower-priced
alternative brands; our ability to correctly predict, identify and
interpret changes in consumer preferences and demand and offering
new products to meet those changes; our ability to operate in a
highly competitive industry; our ability to maintain or add
additional shelf or retail space for our products; our ability to
continue to produce and successfully market products with extended
shelf life; our ability to successfully integrate, achieve expected
synergies and manage our acquired businesses and brands; our
ability to drive revenue growth in our key products or add products
that are faster-growing and more profitable; volatility in
commodity, energy, and other input prices and our ability to adjust
our pricing to cover any increased costs; the availability and
pricing of transportation to distribute our products; our
dependence on our major customers; our geographic focus;
consolidation of retail customers; increased costs to comply with
governmental regulation; general political, social and economic
conditions; increased healthcare and labor costs; the fact that a
portion of our workforce belongs to unions and strikes or work
stoppages could cause our business to suffer; product liability
claims, product recalls, or regulatory enforcement actions;
unanticipated business disruptions; dependence on third parties for
significant services; our ability to identify or complete strategic
acquisitions; sufficiency of insurance coverage; failures,
unavailability, or disruptions of our information technology
systems; departure of key personnel or a highly skilled and diverse
workforce; and our ability to finance our indebtedness on terms
favorable to us; and other risks as set forth under the caption
“Risk Factors” from time to time in our Securities and Exchange
Commission filings.
As a result of a number of known and unknown risks and
uncertainties, the Company's actual results or performance may be
materially different from those expressed or implied by these
forward-looking statements. Risks and uncertainties are identified
and discussed in Item 1A-Risk Factors in the Company's Annual
Report on Form 10-K for 2021 to be filed today. All subsequent
written or oral forward-looking statements attributable to us or
persons acting on the Company's behalf are expressly qualified in
their entirety by these risk factors. The Company undertakes no
obligation to update any forward-looking statement, whether as a
result of new information, future events, or otherwise.
The long-term algorithms introduced in this presentation are
goals that are subject to significant business, economic and
competitive uncertainties and contingencies, many of which are
beyond the control of the Company and are based on assumptions with
respect to future actions which are subject to change.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220301005451/en/
Investor contact Amit Sharma
816-701-4662 asharma@hostessbrands.com
Media contact Lauren Bettenga
952-797-6839 lauren.bettenga@clynch.com
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