NASDAQ$SMPL

The Simply Good Foods Company · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Simply Good Foods' second quarter results exceeded expectations, driven by strong performance from both legacy Atkins and Quest brands

The Simply Good Foods Company reported strong fiscal second quarter 2020 financial results, with net sales increasing by 83.4% to $227.1 million. The company's performance was driven by both legacy Atkins and Quest brands. However, due to COVID-19, the company withdrew its fiscal 2020 full year guidance.

  • Net sales increased 83.4% to $227.1 million.
  • Legacy Atkins net sales increased 12.1%.
  • Quest acquisition contributed 71.3% to net sales growth.
  • Adjusted Diluted EPS was $0.23 versus $0.18.

Headline financials

Total Revenue

$227M

Previous: $124M+83.4%
EPS (adj)

$0.23

Previous: $0.15+53.3%
Adjusted EBITDA

$41.7M

Previous: $23M+81.7%
Capital Expenditures

-$481K

Previous: -$887K+45.8%
Free Cash Flow

$10.2M

Previous: $11.8M-14.0%
Net Income

$10.7M

Previous: $12.7M-16.2%
Operating Income

$25.3M

Previous: $19M+33.0%
Gross Profit

$85.4M

Previous: $57.6M+48.2%
Cash & Equivalents

$46.1M

Previous: $219M-78.9%
Total Assets

$2B

Previous: $1.11B+81.0%
Stock-Based Comp

$2.12M

Previous: $1.42M+49.8%

Revenue & EPS history

Simply Good Foods · Revenue · Quarterly

$227M

Q2 2020+83.4%vs Q2 2019
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

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

  • Atkins
    $135M
  • Quest
    $95.8M

Forward guidance

Due to the uncertainty related to potential effects of the COVID-19 outbreak, the company withdrew its previously communicated fiscal 2020 outlook.

Tailwinds

  • The company entered the second half of the fiscal year with positive net sales momentum.
  • Solid cost containment.
  • Confidence in ability to execute plans to deliver on financial objectives.
  • Quest integration is on-track.
  • Synergy plans are proceeding as expected.

Headwinds

  • Volatile retail foot traffic in March impacted retail takeaway.
  • Retail takeaway of products was very strong in the first half of March but followed by a notable slowdown.
  • Unpredictable nature of current consumer purchasing behavior.
  • Severity and duration of the COVID-19 pandemic is uncertain.
  • COVID-19 pandemic will likely continue during the second half of fiscal year.

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 Q2 2020

Historical avgQ2 2020

+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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro