OAK BROOK, Ill., Nov. 7, 2019 /PRNewswire/ -- TreeHouse
Foods, Inc. (NYSE: THS) today reported third quarter GAAP loss per
diluted share from continuing operations of $(1.08) compared to a GAAP earnings per diluted
share from continuing operations of $0.22 reported for the third quarter of 2018. The
Company had adjusted earnings per diluted share from continuing
operations1 of $0.55 in
the third quarter of 2019 compared to adjusted earnings per diluted
share from continuing operations of $0.57 for the third quarter of 2018. Results for
the quarter reflected non-cash impairment charges of $88 million (pre-tax) related to a write-down of
long-lived assets in connection with two historical acquisitions,
partially offset by tax planning and continued SG&A
discipline.
"Third quarter adjusted earnings per diluted share from
continuing operations fell within the range of our guidance, and
I'm encouraged by the progress we are making around volumes.
Excluding SKU rationalization and divestitures, our third quarter
year-over-year shipments improved sequentially to (4.7)% versus
(9.6)% in the first half of the year. Additionally, I'm pleased by
the results of our ongoing commitment to deliver outstanding
customer service," said Steve
Oakland, Chief Executive Officer and President.
"The third quarter results also reflect two challenges: an
unanticipated reduction in September orders and some temporary
operational disruption as we aligned our manufacturing cost profile
through workforce reductions. While these changes across our
operations will contribute meaningfully to our future efficiency as
we pivot the organization to volume growth, our near term results
were challenged," Mr. Oakland continued.
"It's important to note that on a nine-month year-to-date basis,
our adjusted earnings per diluted share from continuing operations
is up 32%, despite our net sales being down 7%" said Bill Kelley, Interim Chief Financial Officer.
"Adjusted EBIT margin from continuing operations1 in the
third quarter of 5.9% improved 10 basis points versus the prior
year, reflecting our improved pricing execution, but this was below
our internal expectations as we worked to align our production
capacity with lower demand. The 140 basis point decline in adjusted
SG&A expenses1 as a percent of net sales partly
offset the operational shortfall, while a lower tax rate benefited
the quarter by approximately $0.06."
Both the Snacks business and the Ready-to-eat ("RTE") Cereal
business qualified for discontinued operations treatment beginning
in the third quarter, and as such, results for these businesses
were excluded from continuing operations. Historical
quarterly 2018 and 2019 income statements, segment information and
GAAP to non-GAAP reconciliations to reflect the continuing
operations of the business were provided in the Company's 8-K
filing dated October 22, 2019.
__________________________________________________
|
|
|
|
1
|
|
Adjusted earnings per
diluted share from continuing operations, adjusted EBIT margin from
continuing operations, adjusted SG&A expense, organic net
sales, and adjusted EBITDAS from continuing operations are Non-GAAP
financial measures. See "Comparison of Adjusted Information to GAAP
Information" for the definitions of the Non-GAAP measures,
information concerning certain items affecting comparability, and
reconciliations of the GAAP to Non-GAAP measures.
|
OUTLOOK
TreeHouse is revising its full year 2019 adjusted earnings from
continuing operations guidance to $2.30 - $2.50 per
diluted share. The Company anticipates sequential volume
improvement will continue in the fourth quarter, where a pivot to
growth is reflected in the midpoint of the guidance. However, 2019
net sales is now expected to be between $4.26 to $4.36
billion.
In regard to the outlook for the fourth quarter, TreeHouse
anticipates adjusted earnings per diluted share from continuing
operations in the $1.03 to
$1.23 range, up approximately 13%
year-over-year at the midpoint, and net sales between $1.11 to $1.21
billion, down approximately 3% year-over-year at the
midpoint. Year-over-year volume growth in Beverages is
expected to partially offset moderating declines in Baked Goods and
Meal Solutions.
Mr. Oakland said, "We continue to make meaningful progress
across the organization. Strengthening commercial relationships
takes time, but our focus on delivering great customer service is
paying off as our customer interface evolves from tactical
execution toward more strategic, long-term discussions. We remain
committed to our vision to be the supply chain for our customers'
brands and to deliver upon our financial commitments of 1-2%
revenue growth, greater than or equal to 10% earnings per share
growth and at least $300 million in
free cash flow in 2020 and beyond," Mr. Oakland concluded.
MANAGEMENT CHANGES
In a separate press release issued today, TreeHouse announced that Bill Kelley, formerly Senior Vice President,
Corporate and Operations Finance, was named Interim Chief Financial
Officer.
THIRD QUARTER 2019 FINANCIAL RESULTS
Net sales for the third quarter of 2019 totaled $1,057.3 million compared to $1,117.9 million for the same period last year, a
decrease of 5.4%. The change in net sales from 2018 to 2019 was due
to the following:
|
|
Three
Months
|
|
Nine
Months
|
|
|
Percent
|
Percentage
Change in
Pounds
|
|
Percent
|
Percentage
Change in
Pounds
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
Volume/mix excluding
SKU rationalization
|
|
(4.7)
|
%
|
(4.7)
|
%
|
|
(6.2)
|
%
|
(8.0)
|
%
|
Pricing
|
|
0.3
|
|
—
|
|
|
0.8
|
|
—
|
|
Change in organic net
sales1
|
|
(4.4)
|
%
|
(4.7)
|
%
|
|
(5.4)
|
%
|
(8.0)
|
%
|
SKU
rationalization
|
|
(0.9)
|
|
(1.0)
|
|
|
(1.6)
|
|
(1.6)
|
|
Divestiture
|
|
—
|
|
—
|
|
|
(0.1)
|
|
(0.1)
|
|
Foreign
currency
|
|
(0.1)
|
|
—
|
|
|
(0.1)
|
|
—
|
|
Total change in net
sales
|
|
(5.4)
|
%
|
(5.7)
|
%
|
|
(7.2)
|
%
|
(9.7)
|
%
|
Organic net sales decreased 4.4% in the third quarter of 2019
driven by:
- Volume/mix was unfavorable 4.7% year-over-year due to declines
in the Meal Solutions and Baked Goods segments primarily due to
distribution lost as a result of pricing actions taken in 2018.
Shipped volume in pounds excluding the impact of SKU
rationalization declined 4.7%.
- Pricing was favorable 0.3% during the third quarter of 2019
compared to 2018 driven by pricing actions executed in early 2019
to cover commodity, freight, and packaging inflation, partially
offset by competitive pressure in the Single serve beverage
category.
Our efforts to simplify and rationalize low margin SKUs from our
product portfolio contributed 0.9% to the overall year-over-year
decline in net sales, primarily within our Baked Goods segment.
Unfavorable foreign currency exchange contributed 0.1% to the
year-over year decline in net sales.
Gross profit as a percentage of net sales was 17.6% in the third
quarter of 2019, compared to 19.1% in the third quarter of 2018, a
decrease of 1.5 percentage points. The decrease is primarily due to
the reduction in volumes in the second half of the year, where
associated headcount adjustments resulted in plant inefficiencies,
higher material usage variances, and increased distressed
inventory. We also had higher expenses associated with a change in
regulatory requirements. These increases were partially offset by
lower restructuring program expenses.
Total operating expenses as a percentage of net sales were 22.9%
in the third quarter of 2019 compared to 15.7% in the third quarter
of 2018, an increase of 7.2 percentage points. The increase is
primarily attributable to non-cash impairment charges of
$88.0 million for finite lived
intangible asset impairment losses and property, plant, and
equipment impairment losses in the Cookies and Dry Dinners asset
groups, and a 2018 one-time gain on the divestiture of the McCann's
business of $14.3 million.
These increases were partially offset by lower costs associated
with both TreeHouse 2020 and Structure to Win cost savings measures
and restructuring programs, and lower freight costs due to a
reduction in spot market usage.
Total other expense increased by $18.0
million to $41.8 million in
the third quarter of 2019 compared to $23.8
million in the third quarter of 2018. The increase was
primarily related to non-cash mark-to-market expense from hedging
activities in 2019 compared to mark-to-market income in 2018,
driven by interest rate swaps, and higher interest expense due to
the non-cash write-off of debt issuance costs in association with
the early payments on the Company's term loan in 2019. The
increases were partially offset by a loss on debt extinguishment
related to the repurchase of a portion of the 2022 and 2024 notes
in the third quarter of 2018 that did not recur in 2019.
Income tax benefit was recognized at an effective rate of 37.4%
in the third quarter of 2019 compared to 19.7% in the third quarter
of 2018. The change in the Company's effective tax rate for
the three months ended September 30,
2019 compared to 2018 is primarily the result of a one-time
tax benefit associated with repatriating to the U.S. customer based
intangibles formally held by our Canadian subsidiaries, a change in
the amount of valuation allowance recorded against certain deferred
tax assets, and a change in the amount of executive compensation
that is non-deductible for tax purposes.
Our effective tax rate may change from period to period based on
recurring and non-recurring factors including the jurisdictional
mix of earnings, enacted tax legislation, state income taxes,
settlement of tax audits, and the expiration of the statute of
limitations in relation to unrecognized tax benefits.
Net loss from continuing operations for the third quarter of
2019 was $61.0 million, compared to
net earnings from continuing operations of $12.2 million for the same period of the previous
year. Adjusted EBITDAS from continuing operations1 was
$118.0 million in the third
quarter of 2019, a 2.6% decrease compared to the third quarter of
2018. The decrease in adjusted EBITDAS was primarily due to lower
volume and the related fixed cost impact, partially offset by lower
freight costs due to lower spot market usage, cost savings from
TreeHouse 2020 and Structure to Win initiatives, and pricing
actions executed in early 2019 to cover commodity, freight, and
packaging inflation.
Net loss from discontinued operations increased
$107.2 million in the third quarter
of 2019 compared to the third quarter of 2018. The increase
is primarily the result of the non-cash pre-tax loss on the
divestiture of the Snacks business of $97.5
million and the re-measurement of the expected disposal loss
on the RTE Cereal business recognized as an impairment charge of
$10.7 million during the three months
ended September 30, 2019.
Cash provided by operating activities of continuing operations
was $5.8 million in the first nine
months of 2019 compared to $300.7
million in the first nine months of 2018, a decrease of
$294.9 million. The decrease in cash
during the first nine months of 2019 compared to the first nine
months of 2018 is attributable to lower use of the receivables
sales program, lower accounts payable, higher inventory, and higher
incentive compensation payments. The Company's working capital
management emphasis continues to be focused on driving faster
collection of receivables, reducing inventory, and extending vendor
payment terms.
The Company's three and nine months 2019 and 2018 results
included certain items noted below that, in management's judgment,
affect the assessment of earnings period-over-period.
RECONCILIATION OF
DILUTED (LOSS)
INCOME PER SHARE FROM CONTINUING OPERATIONS TO ADJUSTED
DILUTED EARNINGS PER SHARE FROM CONTINIUNG
OPERATIONS
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
(unaudited)
|
|
(unaudited)
|
Diluted (loss) income
per share from continuing operations (GAAP)
|
|
$
|
(1.08)
|
|
|
$
|
0.22
|
|
|
$
|
(2.23)
|
|
|
$
|
(0.74)
|
|
Impairment
|
|
1.56
|
|
|
—
|
|
|
1.56
|
|
|
—
|
|
Restructuring
programs
|
|
0.43
|
|
|
0.72
|
|
|
1.59
|
|
|
2.13
|
|
Mark-to-market
adjustments
|
|
0.22
|
|
|
(0.07)
|
|
|
0.95
|
|
|
(0.10)
|
|
Litigation
matter
|
|
—
|
|
|
—
|
|
|
0.44
|
|
|
—
|
|
Change in regulatory
requirements
|
|
0.10
|
|
|
—
|
|
|
0.10
|
|
|
—
|
|
Multiemployer pension
plan withdrawal
|
|
—
|
|
|
—
|
|
|
0.07
|
|
|
—
|
|
Tax
indemnification
|
|
0.02
|
|
|
0.03
|
|
|
0.02
|
|
|
0.05
|
|
Product
recall
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
Acquisition,
integration, divestiture, and related costs
|
|
—
|
|
|
(0.24)
|
|
|
—
|
|
|
(0.25)
|
|
Foreign currency loss
(gain) on re-measurement of intercompany notes
|
|
0.01
|
|
|
(0.02)
|
|
|
(0.05)
|
|
|
0.04
|
|
CEO transition
costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.23
|
|
Debt amendment and
repurchase activity
|
|
—
|
|
|
0.03
|
|
|
—
|
|
|
0.12
|
|
Taxes on adjusting
items
|
|
(0.72)
|
|
|
(0.10)
|
|
|
(1.18)
|
|
|
(0.51)
|
|
Adjusted diluted EPS
from continuing operations (Non-GAAP)
|
|
$
|
0.55
|
|
|
$
|
0.57
|
|
|
$
|
1.28
|
|
|
$
|
0.97
|
|
THIRD QUARTER 2019 SEGMENT RESULTS
|
Three Months Ended
September 30,
|
|
Baked
Goods
|
|
Beverages
|
|
Meal
Solutions
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
(unaudited,
dollars in millions)
|
Net sales
|
$
|
351.8
|
|
|
$
|
377.1
|
|
|
$
|
234.4
|
|
|
$
|
236.3
|
|
|
$
|
471.1
|
|
|
$
|
504.5
|
|
|
Direct operating
income
|
30.7
|
|
|
32.1
|
|
|
38.3
|
|
|
44.1
|
|
|
60.4
|
|
|
70.3
|
|
|
Direct operating
income percent
|
8.7
|
%
|
|
8.5
|
%
|
|
16.3
|
%
|
|
18.7
|
%
|
|
12.8
|
%
|
|
13.9
|
%
|
|
The change in net sales from the third quarter of 2018 to the
third quarter of 2019 was due to the following:
|
Three Months Ended
September 30,
|
|
Baked
Goods
|
|
Beverages
|
|
Meal
Solutions
|
|
Dollars
|
|
Percent
|
|
Dollars
|
|
Percent
|
|
Dollars
|
|
Percent
|
|
(unaudited,
dollars in millions)
|
2018 Net
sales
|
$
|
377.1
|
|
|
|
|
$
|
236.3
|
|
|
|
|
$
|
504.5
|
|
|
|
SKU
rationalization
|
(9.2)
|
|
|
(2.4)
|
%
|
|
(0.4)
|
|
|
(0.2)
|
%
|
|
(0.7)
|
|
|
(0.1)
|
%
|
Volume/mix excluding
SKU rationalization
|
(21.7)
|
|
|
(5.7)
|
|
|
4.0
|
|
|
1.7
|
|
|
(34.5)
|
|
|
(6.9)
|
|
Pricing
|
5.8
|
|
|
1.5
|
|
|
(5.5)
|
|
|
(2.3)
|
|
|
2.5
|
|
|
0.5
|
|
Foreign
currency
|
(0.2)
|
|
|
(0.1)
|
|
|
—
|
|
|
—
|
|
|
(0.7)
|
|
|
(0.1)
|
|
2019 Net
sales
|
$
|
351.8
|
|
|
(6.7)
|
%
|
|
$
|
234.4
|
|
|
(0.8)
|
%
|
|
$
|
471.1
|
|
|
(6.6)
|
%
|
Baked Goods
Net sales in the Baked Goods segment decreased $25.3 million, or 6.7%, in the third quarter of
2019 compared to the third quarter of 2018. The change in net
sales was due to unfavorable volume/mix mostly from lost
distribution predominately in the In-store bakery, Bars, and
Griddle categories, the efforts to simplify and rationalize low
margin SKUs, and unfavorable foreign currency. This was
partially offset by pricing actions taken to recover commodity,
freight, and packaging inflation and a reduction in trade spending
primarily in the In-store bakery and Refrigerated dough categories
which favorably impacted pricing.
Direct operating income as a percentage of net sales increased
0.2 percentage points in the third quarter of 2019 compared to the
third quarter of 2018. This increase was primarily due to pricing
actions taken to recover commodity, freight, and packaging
inflation and favorable mix due to the rationalization of low
margin business. These improvements were partially offset by
lower volumes.
Beverages
Net sales in the Beverages segment decreased $1.9 million, or 0.8%, in the third quarter of
2019 compared to the third quarter of 2018. The change in net sales
was due to unfavorable pricing attributable to competitive pressure
in the Single serve beverages category and the efforts to simplify
and rationalize low margin SKUs, partially offset by an increase in
volume/mix driven by category growth in Broth and distribution
gains in Broth and Tea.
Direct operating income as a percentage of net sales decreased
2.4 percentage points in the third quarter of 2019 compared to the
third quarter of 2018. The decrease primarily resulted from the
continued impact of lower pricing in the Single serve beverages
category. These declines were partially offset by lower
commodity costs for resin, oils and ground coffee.
Meal Solutions
Net sales in the Meal Solutions segment decreased $33.4 million, or 6.6%, in the third quarter of
2019 compared to the third quarter of 2018. The change in net
sales was due to unfavorable volume/mix from lost distribution
primarily in the Pasta and Pickles categories, foreign currency,
and the efforts to simplify and rationalize low margin SKUs. Higher
pricing was a result of certain pricing actions taken to recover
commodity, freight, and packaging inflation, muted in part by lower
durum prices that were passed through to customers.
Direct operating income as a percentage of net sales decreased
1.1 percentage points in the third quarter of 2019 compared to the
third quarter of 2018. The decrease was primarily due to higher
operating costs and the fixed cost impact of lower volumes
partially offset by lower direct selling, general and
administrative expenses driven by lower marketing expense and cost
savings due to the TreeHouse 2020 and Structure to Win initiatives,
and lower freight due to reduced spot market usage.
YEAR TO DATE 2019 SEGMENT RESULTS
|
Nine Months Ended
September 30,
|
|
Baked
Goods
|
|
Beverages
|
|
Meal
Solutions
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(unaudited,
dollars in millions)
|
Net sales
|
$
|
1,058.7
|
|
|
$
|
1,126.2
|
|
|
$
|
684.4
|
|
|
$
|
721.8
|
|
|
$
|
1,406.3
|
|
|
$
|
1,546.3
|
|
Direct operating
income
|
107.5
|
|
|
89.9
|
|
|
122.8
|
|
|
129.3
|
|
|
163.2
|
|
|
185.9
|
|
Direct operating
income percent
|
10.2
|
%
|
|
8.0
|
%
|
|
17.9
|
%
|
|
17.9
|
%
|
|
11.6
|
%
|
|
12.0
|
%
|
The change in net sales from the first nine months of 2018 to
the first nine months of 2019 was due to the following:
|
Nine Months Ended
September 30,
|
|
Baked
Goods
|
|
Beverages
|
|
Meal
Solutions
|
|
Dollars
|
|
Percent
|
|
Dollars
|
|
Percent
|
|
Dollars
|
|
Percent
|
|
(unaudited,
dollars in millions)
|
2018 Net
sales
|
$
|
1,126.2
|
|
|
|
|
$
|
721.8
|
|
|
|
|
$
|
1,546.3
|
|
|
|
SKU
rationalization
|
(32.1)
|
|
|
(2.9)
|
%
|
|
(5.1)
|
|
|
(0.7)
|
%
|
|
(15.0)
|
|
|
(1.0)
|
%
|
Volume/mix excluding
SKU rationalization
|
(57.3)
|
|
|
(5.1)
|
|
|
(19.7)
|
|
|
(2.7)
|
|
|
(132.0)
|
|
|
(8.5)
|
|
Pricing
|
23.3
|
|
|
2.1
|
|
|
(12.6)
|
|
|
(1.8)
|
|
|
14.9
|
|
|
0.9
|
|
Divestiture
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.5)
|
|
|
(0.3)
|
|
Foreign
currency
|
(1.4)
|
|
|
(0.1)
|
|
|
—
|
|
|
—
|
|
|
(3.4)
|
|
|
(0.2)
|
|
2019 Net
sales
|
$
|
1,058.7
|
|
|
(6.0)
|
%
|
|
$
|
684.4
|
|
|
(5.2)
|
%
|
|
$
|
1,406.3
|
|
|
(9.1)
|
%
|
CONFERENCE CALL WEBCAST
A webcast to discuss the Company's third quarter earnings will
be held at 8:30 a.m. (Eastern Time)
today. The live audio webcast and a supporting slide deck will be
available on the Company's website at
www.treehousefoods.com/investors/investor-overview/default.aspx
DISCONTINUED OPERATIONS
On May 1, 2019, the Company
entered into a definitive agreement to sell its RTE Cereal
business, a component of the Baked Goods reporting segment, to Post
Holdings, Inc. ("Post"). On August 1,
2019, the Company completed the sale of its Snacks business
to Atlas Holdings, LLC. ("Atlas") for $90
million in cash, subject to customary purchase price
adjustments. Both of these transactions are part of the Company's
strategy to pursue portfolio optimization. Beginning in the third
quarter of 2019, the results of operations of the Snacks and RTE
Cereal businesses are presented as discontinued operations, and, as
such, have been excluded from continuing operations and segment
results for all periods presented. Refer to the Company's 8-K
filing dated October 22, 2019 for
additional information.
COMPARISON OF ADJUSTED INFORMATION TO GAAP INFORMATION
The Company is not able to reconcile prospective adjusted
earnings from continuing operations per diluted share (Non-GAAP) to
projected reported diluted earnings from continuing operations per
share without unreasonable effort due to the inherent uncertainty
and difficulty of predicting the occurrence, financial impact, and
timing of certain items impacting GAAP results. These items
include, but are not limited to, mark-to-market adjustments of
derivative contracts, foreign currency exchange on the
re-measurement of intercompany notes, or other non-recurring events
or transactions that may significantly affect reported GAAP
results.
The Company has included in this release measures of financial
performance that are not defined by GAAP ("Non-GAAP"). A Non-GAAP
financial measure is a numerical measure of financial performance
that excludes or includes amounts so as to be different than the
most directly comparable measure calculated and presented in
accordance with GAAP in the Company's Condensed Consolidated
Balance Sheets, Condensed Consolidated Statements of Operations,
Condensed Consolidated Statements of Comprehensive Income (Loss),
Condensed Consolidated Statements of Stockholders' Equity, and the
Condensed Consolidated Statements of Cash Flows. The Company
believes these measures provide useful information to the users of
the financial statements as we also have included these measures in
other communications and publications.
For each of these Non-GAAP financial measures, the Company
provides a reconciliation between the most directly comparable GAAP
measure and the Non-GAAP measure, an explanation of why management
believes the Non-GAAP measure provides useful information to
financial statement users, and any additional purposes for which
management uses the Non-GAAP measure. This Non-GAAP financial
information is provided as additional information for the financial
statement users and is not in accordance with, or an alternative
to, GAAP. These Non-GAAP measures may be different from similar
measures used by other companies.
Organic Net Sales
Organic Net Sales is defined as net sales excluding the impacts
of SKU rationalization, divestitures, and foreign currency. This
information is provided in order to allow investors to make
meaningful comparisons of the Company's sales between periods and
to view the Company's business from the same perspective as Company
management.
Adjusted SG&A Expense
Adjusted SG&A Expense is defined as selling and
distribution, and general and administrative expense adjusted for
items that, in management's judgment, significantly affect the
assessment of selling, general and administrative expense between
periods and to view the Company's business from the same
perspective as Company management.
Adjusted Earnings Per Diluted Share from Continuing
Operations, Adjusting for Certain Items Affecting
Comparability
Adjusted earnings per diluted share from continuing operations
("adjusted diluted EPS") reflects adjustments to GAAP (loss) income
per diluted share from continuing operations to identify items
that, in management's judgment, significantly affect the assessment
of earnings results between periods. This information is provided
in order to allow investors to make meaningful comparisons of the
Company's earnings performance between periods and to view the
Company's business from the same perspective as Company management.
As the Company cannot predict the timing and amount of charges that
include, but are not limited to, items such as acquisition,
integration, divestiture, and related costs, mark-to-market
adjustments on derivative contracts, foreign currency exchange
impact on the re-measurement of intercompany notes, restructuring
programs, and other items that may arise from time to time that
would impact comparability, management does not consider these
costs when evaluating the Company's performance, when making
decisions regarding the allocation of resources, in determining
incentive compensation, or in determining earnings estimates. The
reconciliation of the GAAP measure of diluted (loss) income per
share from continuing operations as presented in the Condensed
Consolidated Statements of Operations, excluding certain items
affecting comparability, to adjusted diluted earnings per share
from continuing operations is presented above.
Adjusted Net Income from
Continuing Operations, Adjusted EBIT from Continuing Operations,
Adjusted EBITDAS from Continuing Operations, Adjusted Net Income
Margin from Continuing Operations, Adjusted EBIT Margin from
Continuing Operations and Adjusted EBITDAS Margin from Continuing
Operations, Adjusting for Certain Items Affecting
Comparability
Adjusted net income from continuing operations represents GAAP
net (loss) income from continuing operations as reported in the
Condensed Consolidated Statements of Operations adjusted for items
that, in management's judgment, significantly affect the assessment
of earnings results between periods as outlined in the adjusted
diluted EPS section above. This information is provided in order to
allow investors to make meaningful comparisons of the Company's
earnings performance between periods and to view the Company's
business from the same perspective as Company management. This
measure is also used as a component of the Board of Directors'
measurement of the Company's performance for incentive compensation
purposes and is the basis of calculating the adjusted diluted EPS
from continuing operations metric outlined above.
Adjusted EBIT from continuing operations represents adjusted net
income from continuing operations before interest expense, interest
income, and income tax expense. Adjusted EBITDAS from continuing
operations represents adjusted net income from continuing
operations before interest expense, interest income, income tax
expense, depreciation and amortization expense, and non-cash
stock-based compensation expense. Adjusted EBIT from continuing
operations and adjusted EBITDAS from continuing operations are
performance measures commonly used by management to assess
operating performance, and the Company believes they are commonly
reported and widely used by investors and other interested parties
as a measure of a company's operating performance between
periods.
Adjusted net income margin from continuing operations, adjusted
EBIT margin from continuing operations and adjusted EBITDAS margin
from continuing operations are calculated as the respective metric
defined above as a percentage of net sales as reported in the
Condensed Consolidated Statements of Operations adjusted for items
that, in management's judgment, significantly affect the assessment
of earnings results between periods as outlined in the adjusted
diluted EPS from continuing operations section above.
A full reconciliation between the relevant GAAP measure of
reported net (loss) income from continuing operations for the three
and nine month periods ended September 30,
2019 and 2018 calculated according to GAAP, adjusted net
income from continuing operations, adjusted EBIT from continuing
operations, and adjusted EBITDAS from continuing operations is
presented in the attached tables. Given the inherent uncertainty
regarding adjusted items in any future period, a reconciliation of
forward-looking financial measures to the most directly comparable
GAAP measure is not feasible.
Free Cash Flow from Continuing Operations
In addition to measuring the Company's cash flow generation and
usage based upon the operating, investing, and financing
classifications included in the Condensed Consolidated Statements
of Cash Flows, we also measure free cash flow from continuing
operations which represents net cash provided by operating
activities from continuing operations less capital expenditures.
The Company believes free cash flow is an important measure of
operating performance because it provides management and investors
a measure of cash generated from operations that is available for
mandatory payment obligations and investment opportunities such as
funding acquisitions, repaying debt, repurchasing outstanding
senior debt, and repurchasing common stock. A reconciliation
between the relevant GAAP measure of cash provided by operating
activities from continuing operations for the nine months ended
September 30, 2019 and 2018
calculated according to GAAP and free cash flow from continuing
operations is presented in the attached tables.
ABOUT TREEHOUSE FOODS
TreeHouse Foods, Inc. is a leading manufacturer and distributor
of private label packaged foods and beverages in North
America. We have over 40 production facilities across
the United States, Canada and Italy, and our vision is to be the undisputed
solutions leader for custom brands for our customers. Our
product portfolio includes shelf stable, refrigerated, frozen and
fresh products, including baked goods (cookies, crackers, pretzels,
refrigerated dough, frozen waffles, in-store bakery products and
snack bars); beverages (broth, single serve hot beverages,
ready-to-drink coffee, creamers and powdered drinks); and meal
solutions (dressings, hot cereal, macaroni and cheese, pasta,
pickles, sauces and side dishes). We have a comprehensive
offering of packaging formats and flavor profiles, and we also
offer natural, organic and preservative-free ingredients across
almost our entire portfolio. Our purpose is to make high
quality food and beverages affordable to all.
Additional information, including TreeHouse's most recent
statements on Forms 10-Q and 10-K, may be found at TreeHouse's
website, http://www.treehousefoods.com.
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking" statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements and other information are
based on our beliefs, as well as assumptions made by us, using
information currently available. The words "anticipate," "believe,"
"estimate," "project," "expect," "intend," "plan," "should," and
similar expressions, as they relate to us, are intended to identify
forward-looking statements. Such statements reflect our current
views with respect to future events and are subject to certain
risks, uncertainties, and assumptions. Should one or more of these
risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially
from those described herein as anticipated, believed, estimated,
expected, or intended. We do not intend to update these
forward-looking statements following the date of this press
release.
Such forward-looking statements, because they relate to future
events, are by their very nature subject to many important factors
that could cause actual results to differ materially from those
contemplated by the forward-looking statements contained in this
press release and other public statements we make. Such factors
include, but are not limited to: the success of our restructuring
programs, our level of indebtedness and related obligations;
disruptions in the financial markets; interest rates; changes in
foreign currency exchange rates; customer concentration and
consolidation; raw material and commodity costs; competition; our
ability to continue to make acquisitions in accordance with our
business strategy; changes and developments affecting our industry,
including consumer preferences; the outcome of litigation and
regulatory proceedings to which we may be a party; product recalls;
changes in laws and regulations applicable to us; disruptions in or
failures of our information technology systems; labor strikes or
work stoppages; and other risks that are set forth in the Risk
Factors section, the Legal Proceedings section, the Management's
Discussion and Analysis of Financial Condition and Results of
Operations section, and other sections of our Annual Report on Form
10-K for the year ended December 31,
2018, and from time to time in our filings with the
Securities and Exchange Commission. You are cautioned not to unduly
rely on such forward-looking statements, which speak only as of the
date made when evaluating the information presented in this press
release. TreeHouse expressly disclaims any obligation or
undertaking to disseminate any updates or revisions to any
forward-looking statement contained herein, to reflect any change
in its expectations with regard thereto, or any other change in
events, conditions or circumstances on which any statement is
based.
FINANCIAL INFORMATION
TREEHOUSE FOODS,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited, in
millions, except per share data)
|
|
|
|
|
September 30,
2019
|
|
December 31,
2018
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
45.1
|
|
|
$
|
164.3
|
|
Receivables,
net
|
|
305.2
|
|
|
351.3
|
|
Inventories
|
|
702.8
|
|
|
615.6
|
|
Prepaid expenses and
other current assets
|
|
82.0
|
|
|
61.0
|
|
Assets of
discontinued operations
|
|
133.9
|
|
|
485.8
|
|
Total current
assets
|
|
1,269.0
|
|
|
1,678.0
|
|
Property, plant and
equipment, net
|
|
1,080.2
|
|
|
1,142.3
|
|
Operating lease
right-of-use assets
|
|
183.3
|
|
|
—
|
|
Goodwill
|
|
2,111.3
|
|
|
2,107.9
|
|
Intangible assets,
net
|
|
576.9
|
|
|
656.4
|
|
Other assets,
net
|
|
40.5
|
|
|
44.7
|
|
Total
assets
|
|
$
|
5,261.2
|
|
|
$
|
5,629.3
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
529.6
|
|
|
$
|
577.9
|
|
Accrued
expenses
|
|
295.3
|
|
|
252.5
|
|
Current portion of
long-term debt
|
|
11.7
|
|
|
1.2
|
|
Liabilities of
discontinued operations
|
|
14.8
|
|
|
6.0
|
|
Total current
liabilities
|
|
851.4
|
|
|
837.6
|
|
Long-term
debt
|
|
2,158.0
|
|
|
2,297.4
|
|
Operating lease
liabilities
|
|
166.2
|
|
|
—
|
|
Deferred income
taxes
|
|
130.1
|
|
|
166.1
|
|
Other long-term
liabilities
|
|
149.5
|
|
|
168.2
|
|
Total
liabilities
|
|
3,455.2
|
|
|
3,469.3
|
|
Commitments and
contingencies
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Preferred stock, par
value $0.01 per share, 10.0 shares authorized, none
issued
|
|
—
|
|
|
—
|
|
Common stock, par
value $0.01 per share, 90.0 shares authorized, 56.2 and
56.0 shares issued and outstanding,
respectively
|
|
0.6
|
|
|
0.6
|
|
Treasury
stock
|
|
(83.3)
|
|
|
(83.3)
|
|
Additional paid-in
capital
|
|
2,149.4
|
|
|
2,135.8
|
|
(Accumulated deficit)
Retained earnings
|
|
(172.5)
|
|
|
204.0
|
|
Accumulated other
comprehensive loss
|
|
(88.2)
|
|
|
(97.1)
|
|
Total stockholders'
equity
|
|
1,806.0
|
|
|
2,160.0
|
|
Total liabilities and
stockholders' equity
|
|
$
|
5,261.2
|
|
|
$
|
5,629.3
|
|
TREEHOUSE FOODS,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in
millions, except per share data)
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net sales
|
|
$
|
1,057.3
|
|
|
$
|
1,117.9
|
|
|
$
|
3,149.4
|
|
|
$
|
3,394.3
|
|
Cost of
sales
|
|
871.0
|
|
|
903.9
|
|
|
2,577.7
|
|
|
2,753.6
|
|
Gross
profit
|
|
186.3
|
|
|
214.0
|
|
|
571.7
|
|
|
640.7
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling and
distribution
|
|
61.2
|
|
|
73.4
|
|
|
191.2
|
|
|
246.8
|
|
General and
administrative
|
|
51.5
|
|
|
60.4
|
|
|
199.9
|
|
|
208.7
|
|
Amortization
expense
|
|
17.7
|
|
|
19.8
|
|
|
56.4
|
|
|
60.2
|
|
Asset
impairment
|
|
88.0
|
|
|
—
|
|
|
88.0
|
|
|
—
|
|
Other operating
expense, net
|
|
23.5
|
|
|
21.4
|
|
|
84.2
|
|
|
94.6
|
|
Total operating
expenses
|
|
241.9
|
|
|
175.0
|
|
|
619.7
|
|
|
610.3
|
|
Operating (loss)
income
|
|
(55.6)
|
|
|
39.0
|
|
|
(48.0)
|
|
|
30.4
|
|
Other
expense:
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
27.3
|
|
|
26.1
|
|
|
78.5
|
|
|
82.5
|
|
Loss (gain) on
foreign currency exchange
|
|
0.4
|
|
|
0.6
|
|
|
(1.3)
|
|
|
5.0
|
|
Other expense
(income), net
|
|
14.1
|
|
|
(2.9)
|
|
|
50.5
|
|
|
(2.4)
|
|
Total other
expense
|
|
41.8
|
|
|
23.8
|
|
|
127.7
|
|
|
85.1
|
|
(Loss) income before
income taxes
|
|
(97.4)
|
|
|
15.2
|
|
|
(175.7)
|
|
|
(54.7)
|
|
Income tax (benefit)
expense
|
|
(36.4)
|
|
|
3.0
|
|
|
(50.1)
|
|
|
(12.9)
|
|
Net (loss) income
from continuing operations
|
|
(61.0)
|
|
|
12.2
|
|
|
(125.6)
|
|
|
(41.8)
|
|
Net loss from
discontinued operations
|
|
(116.8)
|
|
|
(9.6)
|
|
|
(250.9)
|
|
|
(8.7)
|
|
Net (loss)
income
|
|
$
|
(177.8)
|
|
|
$
|
2.6
|
|
|
$
|
(376.5)
|
|
|
$
|
(50.5)
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
common share - basic:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
|
(1.08)
|
|
|
$
|
0.22
|
|
|
$
|
(2.23)
|
|
|
$
|
(0.74)
|
|
Discontinued
operations
|
|
(2.07)
|
|
|
(0.17)
|
|
|
(4.46)
|
|
|
(0.15)
|
|
Net (loss) earnings
per share diluted (1)
|
|
$
|
(3.16)
|
|
|
$
|
0.05
|
|
|
$
|
(6.70)
|
|
|
$
|
(0.90)
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
common share - diluted:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
|
(1.08)
|
|
|
$
|
0.22
|
|
|
$
|
(2.23)
|
|
|
$
|
(0.74)
|
|
Discontinued
operations
|
|
(2.07)
|
|
|
(0.17)
|
|
|
(4.46)
|
|
|
(0.15)
|
|
Net (loss) earnings
per share diluted (1)
|
|
$
|
(3.16)
|
|
|
$
|
0.05
|
|
|
$
|
(6.70)
|
|
|
$
|
(0.90)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares:
|
|
|
|
|
|
|
|
|
Basic
|
|
56.3
|
|
|
56.3
|
|
|
56.2
|
|
|
56.4
|
|
Diluted
|
|
56.3
|
|
|
56.7
|
|
|
56.2
|
|
|
56.4
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Information:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
$
|
50.8
|
|
|
$
|
57.7
|
|
|
$
|
157.3
|
|
|
$
|
167.9
|
|
Stock-based
compensation expense
|
|
5.5
|
|
|
4.6
|
|
|
17.5
|
|
|
27.0
|
|
|
|
(1)
|
The sum of the
individual per share amounts may not add due to
rounding.
|
The following table reconciles the Company's net (loss) income from continuing
operations to adjusted net income from continuing operations,
adjusted EBIT from continuing operations, and adjusted EBITDAS from
continuing operations for the three and nine months ended
September 30, 2019 and 2018:
TREEHOUSE FOODS,
INC.
RECONCILIATION OF
NET (LOSS)
INCOME FROM CONTINUING OPERATIONS TO ADJUSTED NET
INCOME,
ADJUSTED EBIT, AND
ADJUSTED EBITDAS FROM CONTINUING OPERATIONS
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net (loss) income
from continuing operations (GAAP)
|
|
|
|
$
|
(61.0)
|
|
|
$
|
12.2
|
|
|
$
|
(125.6)
|
|
|
$
|
(41.8)
|
|
Impairment
|
|
(1)
|
|
88.0
|
|
|
—
|
|
|
88.0
|
|
|
—
|
|
Restructuring
programs
|
|
(2)
|
|
24.3
|
|
|
40.7
|
|
|
89.9
|
|
|
120.1
|
|
Mark-to-market
adjustments
|
|
(3)
|
|
12.4
|
|
|
(3.8)
|
|
|
53.6
|
|
|
(5.8)
|
|
Litigation
matter
|
|
(4)
|
|
—
|
|
|
—
|
|
|
25.0
|
|
|
—
|
|
Change in regulatory
requirements
|
|
(5)
|
|
5.5
|
|
|
—
|
|
|
5.5
|
|
|
—
|
|
Multiemployer pension
plan withdrawal
|
|
(6)
|
|
—
|
|
|
—
|
|
|
4.1
|
|
|
—
|
|
Tax
indemnification
|
|
(7)
|
|
1.4
|
|
|
1.7
|
|
|
1.8
|
|
|
2.9
|
|
Product
recall
|
|
(8)
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
Acquisition,
integration, divestiture, and related costs
|
|
(9)
|
|
—
|
|
|
(13.7)
|
|
|
0.2
|
|
|
(14.1)
|
|
Foreign currency loss
(gain) on re-measurement of intercompany notes
|
|
(10)
|
|
0.4
|
|
|
(1.4)
|
|
|
(2.6)
|
|
|
1.9
|
|
CEO transition
costs
|
|
(11)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13.0
|
|
Debt amendment and
repurchase activity
|
|
(12)
|
|
—
|
|
|
1.8
|
|
|
—
|
|
|
6.8
|
|
Less: Taxes on
adjusting items
|
|
|
|
(40.3)
|
|
|
(5.3)
|
|
|
(67.6)
|
|
|
(27.9)
|
|
Adjusted net income
from continuing operations (Non-GAAP)
|
|
|
|
31.0
|
|
|
32.2
|
|
|
72.6
|
|
|
55.1
|
|
Interest
expense
|
|
|
|
27.3
|
|
|
25.4
|
|
|
78.5
|
|
|
80.1
|
|
Interest
income
|
|
|
|
(0.3)
|
|
|
(1.3)
|
|
|
(4.6)
|
|
|
(3.8)
|
|
Income tax (benefit)
expense
|
|
|
|
(36.4)
|
|
|
3.0
|
|
|
(50.1)
|
|
|
(12.9)
|
|
Add: Taxes on
adjusting items
|
|
|
|
40.3
|
|
|
5.3
|
|
|
67.6
|
|
|
27.9
|
|
Adjusted EBIT from
continuing operations (Non-GAAP)
|
|
|
|
61.9
|
|
|
64.6
|
|
|
164.0
|
|
|
146.4
|
|
Depreciation and
amortization
|
|
(13)
|
|
50.7
|
|
|
52.1
|
|
|
154.0
|
|
|
156.5
|
|
Stock-based
compensation expense
|
|
(14)
|
|
5.4
|
|
|
4.5
|
|
|
17.0
|
|
|
16.8
|
|
Adjusted EBITDAS from
continuing operations (Non-GAAP)
|
|
|
|
$
|
118.0
|
|
|
$
|
121.2
|
|
|
$
|
335.0
|
|
|
$
|
319.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
margin from continuing operations
|
|
|
|
2.9
|
%
|
|
2.9
|
%
|
|
2.3
|
%
|
|
1.6
|
%
|
Adjusted EBIT margin
from continuing operations
|
|
|
|
5.9
|
%
|
|
5.8
|
%
|
|
5.2
|
%
|
|
4.3
|
%
|
Adjusted EBITDAS
margin from continuing operations
|
|
|
|
11.2
|
%
|
|
10.8
|
%
|
|
10.6
|
%
|
|
9.4
|
%
|
|
|
|
|
Location in
Condensed
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
|
|
|
Consolidated
Statements of Operations
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
(unaudited, in
millions)
|
(1)
|
|
|
Impairment
|
|
Asset
impairment
|
|
$
|
88.0
|
|
|
$
|
—
|
|
|
$
|
88.0
|
|
|
$
|
—
|
|
(2)
|
|
|
Restructuring
programs
|
|
Other operating
expense, net
|
|
23.7
|
|
|
35.3
|
|
|
84.4
|
|
|
108.2
|
|
|
|
|
|
Cost of
sales
|
|
0.6
|
|
|
4.4
|
|
|
3.8
|
|
|
8.6
|
|
|
|
|
|
General and
administrative
|
|
—
|
|
|
1.0
|
|
|
1.7
|
|
|
3.3
|
|
(3)
|
|
|
Mark-to-market
adjustments
|
|
Other expense
(income), net
|
|
12.4
|
|
|
(3.8)
|
|
|
53.6
|
|
|
(5.8)
|
|
(4)
|
|
|
Litigation
matter
|
|
General and
administrative
|
|
—
|
|
|
—
|
|
|
25.0
|
|
|
—
|
|
(5)
|
|
|
Change in regulatory
requirements
|
|
Cost of
sales
|
|
4.0
|
|
|
—
|
|
|
4.0
|
|
|
—
|
|
|
|
|
|
Selling and
distribution
|
|
1.2
|
|
|
—
|
|
|
1.2
|
|
|
—
|
|
|
|
|
|
General and
administrative
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
(6)
|
|
|
Multiemployer pension
plan withdrawal
|
|
Cost of
sales
|
|
—
|
|
|
—
|
|
|
4.1
|
|
|
—
|
|
(7)
|
|
|
Tax
indemnification
|
|
Other expense
(income), net
|
|
1.4
|
|
|
1.7
|
|
|
1.8
|
|
|
2.9
|
|
(8)
|
|
|
Product
recall
|
|
General and
administrative
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
(9)
|
|
|
Acquisition,
integration, divestiture, and related costs
|
|
General and
administrative
|
|
—
|
|
|
0.2
|
|
|
0.2
|
|
|
(0.5)
|
|
|
|
|
|
Other operating
expense, net
|
|
—
|
|
|
(13.9)
|
|
|
—
|
|
|
(13.6)
|
|
(10)
|
|
|
Foreign currency loss
(gain) on re-measurement of intercompany notes
|
|
Loss (gain) on
foreign currency exchange
|
|
0.4
|
|
|
(1.4)
|
|
|
(2.6)
|
|
|
1.9
|
|
(11)
|
|
|
CEO transition
costs
|
|
General and
administrative
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13.0
|
|
(12)
|
|
|
Debt amendment and
repurchase activity
|
|
General and
administrative
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
|
|
|
Other expense
(income), net
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|
4.2
|
|
|
|
|
|
Interest
expense
|
|
—
|
|
|
0.7
|
|
|
—
|
|
|
2.4
|
|
(13)
|
|
|
Depreciation included
as an adjusting item
|
|
Cost of
sales
|
|
0.1
|
|
|
4.6
|
|
|
1.7
|
|
|
8.1
|
|
|
|
|
|
General and
administrative
|
|
—
|
|
|
1.0
|
|
|
1.6
|
|
|
3.3
|
|
(14)
|
|
|
Stock-based
compensation expense included as an adjusting item
|
|
General and
administrative
|
|
0.1
|
|
|
0.1
|
|
|
0.5
|
|
|
10.2
|
|
TREEHOUSE FOODS,
INC.
RECONCILIATION OF
SG&A EXPENSE TO ADJUSTED SG&A EXPENSE
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
Selling and
distribution
|
|
$
|
61.2
|
|
|
$
|
73.4
|
|
|
$
|
191.2
|
|
|
$
|
246.8
|
|
General and
administrative
|
|
51.5
|
|
|
60.4
|
|
|
199.9
|
|
|
208.7
|
|
Total Selling,
general and administrative expense
|
|
112.7
|
|
|
133.8
|
|
|
391.1
|
|
|
455.5
|
|
|
|
|
|
|
|
|
|
|
Restructuring
programs
|
(2)
|
—
|
|
|
1.0
|
|
|
1.7
|
|
|
3.3
|
|
Litigation
matter
|
(4)
|
—
|
|
|
—
|
|
|
25.0
|
|
|
—
|
|
Change in regulatory
requirements
|
(5)
|
1.5
|
|
|
—
|
|
|
1.5
|
|
|
—
|
|
Product
recall
|
(8)
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
Acquisition,
integration, divestiture, and related costs
|
(9)
|
—
|
|
|
0.2
|
|
|
0.2
|
|
|
(0.5)
|
|
CEO transition
costs
|
(11)
|
—
|
|
|
—
|
|
|
—
|
|
|
13.0
|
|
Debt amendment and
repurchase activity
|
(12)
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
Adjusted Selling,
general and administrative expense
|
|
$
|
110.9
|
|
|
$
|
132.6
|
|
|
$
|
362.4
|
|
|
$
|
439.5
|
|
Percentage of Net
Sales
|
|
10.5
|
%
|
|
11.9
|
%
|
|
11.5
|
%
|
|
12.9
|
%
|
TREEHOUSE FOODS,
INC.
CASH FLOW KEY
METRICS
(Unaudited, in
millions)
|
|
|
|
|
|
Nine Months
Ended September 30,
|
|
|
2019
|
|
2018
|
Net Cash Flows
Provided By (Used In) :
|
|
|
|
|
Operating activities
- from continuing operations
|
|
$
|
5.8
|
|
|
$
|
300.7
|
|
Investing activities
- from continuing operations
|
|
(99.8)
|
|
|
(84.4)
|
|
Financing activities
- from continuing operations
|
|
(141.3)
|
|
|
(250.8)
|
|
Cash flows from
discontinued operations
|
|
111.6
|
|
|
(44.5)
|
|
TREEHOUSE
FOODS, INC.
RECONCILIATION OF
NET CASH PROVIDED BY OPERATING ACTIVITIES - CONTINUING OPERATIONS
TO FREE CASH FLOW FROM
CONTINUING OPERATIONS
(Unaudited, in
millions)
|
|
|
|
|
|
Nine Months
Ended
September 30,
|
|
|
2019
|
|
2018
|
|
|
|
Cash flow provided by
operating activities - continuing operations
|
|
$
|
5.8
|
|
|
$
|
300.7
|
|
Less: Capital
expenditures
|
|
(104.8)
|
|
|
(118.5)
|
|
Free cash flow from
continuing operations
|
|
$
|
(99.0)
|
|
|
$
|
182.2
|
|
View original
content:http://www.prnewswire.com/news-releases/treehouse-foods-inc-reports-third-quarter-2019-adjusted-earnings-per-diluted-share-from-continuing-operations-of-0-55--300953393.html
SOURCE TreeHouse Foods, Inc.