NASDAQ$SMPL

The Simply Good Foods Company · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported fiscal first quarter 2022 financial results and updated full fiscal year 2022 outlook.

Simply Good Foods reported a strong start to fiscal year 2022, with net sales increasing by 21.7% driven by solid performance from both Atkins and Quest brands. The company's gross profit margin improved, and adjusted EBITDA increased significantly. Management raised full year net sales and Adjusted EBITDA outlook.

  • Net sales increased 21.7% driven by strong Atkins and Quest performance.
  • Gross profit margin of 41.4%, an increase of 70 basis points.
  • Adjusted Diluted EPS of $0.43 versus $0.29.
  • Adjusted EBITDA increased 34.7% to $65.6 million.

Headline financials

Total Revenue

$281M

Previous: $231M+21.7%
EPS (adj)

$0.43

Previous: $0.29+48.3%
Gross Margin

41.4%

No prior period
Capital Expenditures

-$2.69M

Previous: -$93K-2793.5%
Free Cash Flow

$18.5M

Previous: $22.4M-17.6%
Net Income

$21.2M

Previous: $22.5M-6.0%
Operating Income

$58M

Previous: $39.2M+48.0%
Gross Profit

$117M

Previous: $94M+23.9%
Cash & Equivalents

$35.4M

Previous: $91.5M-61.2%
Total Assets

$2.04B

Previous: $2.02B+1.4%
Stock-Based Comp

$2.61M

Previous: $1.11M+134.7%

Revenue & EPS history

Simply Good Foods · Revenue · Quarterly

$281M

Q1 2022+21.7%vs Q1 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Simply Good Foods · $231M total across 2 segments · Q1 2021

  • Atkins
    $135M
  • Quest
    $95.8M

Forward guidance

The Company anticipates that it will build on its momentum and generate solid net sales and Adjusted EBITDA growth in fiscal 2022.

Tailwinds

  • Net sales to increase 12-14% versus last year.
  • Marketing expense will increase versus last year, although less than the net sales growth rate
  • G&A leverage will be significant.
  • Adjusted EBITDA to increase slightly less than the net sales growth rate.
  • Adjusted Diluted EPS will increase greater than the Adjusted EBITDA growth rate.

Headwinds

  • Gross margin contraction of about 250 basis points versus last year.
  • Supply chain costs remain at elevated levels
  • Inflation, primarily due to higher ingredient costs, will result in gross margin contraction greater than our previous outlook.
  • About a 1 percentage point headwind related to the European business exit that was completed in the fourth quarter of fiscal 2021.
  • Assuming no meaningful improvement in workplace mobility

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.5%

Avg return

Earnings day

-0.3%

Avg return

5 days after

+1.6%

Avg return

30 days after

51%

18 / 35 earnings

Positive

+16.8%

Q4 2022

Best reaction

-17.5%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026
Q2 2026-0.3%-21.0%-14.9%
Q1 2026+6.7%+9.8%-10.5%
Q4 2025-17.5%-20.8%-19.2%
Q3 2025-2.9%-3.9%-14.7%
Q2 2025+9.2%+13.2%+7.9%
Q1 2025-6.5%-6.2%+0.3%
Q4 2024+3.8%+4.7%+21.0%
Q3 2024-0.1%-1.0%-6.6%
Q2 2024-1.2%+0.6%+14.6%
Q1 2024+3.8%+4.4%-4.3%
Q4 2023+11.3%+11.6%+21.7%
Q3 2023+5.8%+6.0%+10.1%
Q2 2023-5.9%-4.5%-2.2%
Q1 2023-7.2%-5.4%-5.6%
Q4 2022+16.8%+15.8%+17.8%
Q3 2022-5.8%-8.9%-20.8%
Q2 2022+10.1%+6.3%-0.2%
Q1 2022-8.0%-11.1%-16.1%
Q4 2021+13.1%+13.3%+13.7%
Q3 2021+2.7%+1.5%+2.7%
Q2 2021+1.9%+4.6%+12.0%
Q1 2021-1.2%-3.3%-6.0%
Q4 2020-4.3%-11.1%+6.2%
Q3 2020+0.6%+2.0%+15.1%
Q2 2020-9.3%-15.9%-3.1%
Q1 2020-13.7%-12.4%-16.9%
Q4 2019+1.7%+1.5%+17.0%
Q3 2019+7.2%+11.5%+7.3%
Q2 2019+3.8%+1.5%+2.1%
Q1 2019+1.0%+0.1%+2.5%
Q4 2018-8.7%-11.0%+1.2%
Q3 2018+12.5%+13.7%+14.5%
Q2 2018-0.2%+1.2%+6.5%
Q1 2018+0.2%+4.5%+7.4%
Q4 2017-0.3%-0.3%-6.0%
Q3 2017
Q2 2016
Q1 2016
Q4 2016
Q3 2016

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