NASDAQ$SMPL
The Simply Good Foods Company · Q3 2020 earnings
Q3 2020 earnings · · Investor relations
Briefing
Simply Good Foods' third quarter performance was significantly impacted by COVID-19 factors, resulting in changes in shopping and consumption behavior, with net sales increasing by 54.2% due to the Quest acquisition and legacy Atkins net sales declining by 8.3%.
Simply Good Foods reported a 54.2% increase in net sales for the third quarter, driven by the acquisition of Quest. However, Legacy Atkins net sales declined by 8.3%, offset by e-commerce growth. Adjusted EBITDA increased by 74.2% due to the inclusion of Quest.
- Net sales increased 54.2%, reaching $215.1 million.
- Gross profit margin increased by 60 basis points to 41.2%.
- Net income was $16.4 million, compared to $13.5 million in the previous year.
- Adjusted EBITDA increased 74.2% to $43.4 million, primarily due to the Quest acquisition.
Headline financials
Revenue & EPS history
Simply Good Foods · Revenue · Quarterly
$215M
Revenue by segment
Simply Good Foods · $231M total across 2 segments · Q1 2021
- Atkins$135M—58.6%
- Quest$95.8M—41.4%
Forward guidance
Simply Good Foods anticipates full-year 2020 net sales of $790-800 million and Adjusted EBITDA of $145-150 million, assuming U.S. movement restrictions remain at the current levels. The Company anticipates 2020 Adjusted Diluted Earnings Per Share to be in the range of $0.86 to $0.90.
Tailwinds
- Marketplace trends of products have improved sequentially as movement restrictions eased.
- Increase in consumption is due to increasing brand relevance among consumers.
- Increase in consumption is due to increased shopping trips.
- Increase in consumption is due to more on-the-go consumption.
- Company stepped-up marketing and merchandising investments in brands.
Headwinds
- Full-year 2020 net sales of $790-800 million and Adjusted EBITDA of $145-150 million is assumed that U.S. movement restrictions remain at the current levels
- Legacy Atkins net sales and Adjusted EBITDA is expected to be about the same as the year ago period, including the headwind of a fifty-third week in fiscal year 2019.
- The company estimates that the extra week included in fiscal year 2019 is a headwind to year-over-year comparisons of reported legacy Atkins net sales growth in fiscal 2020 of about 2 percentage points.
- The Company anticipates 2020 Adjusted Diluted Earnings Per Share to be in the range of $0.86 to $0.90 versus $0.77 in 2019.
- ERP implementation costs ramp-up in the fourth quarter.
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 Q3 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
| Quarter | Report date | Reaction (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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