NASDAQ$SMPL

The Simply Good Foods Company · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported solid sales and earnings growth, increased gross margin, and instituted a price increase.

Simply Good Foods reported a strong fourth quarter and fiscal year 2021, delivering solid sales and earnings growth. Net sales increased by 16.9%, driven by solid Atkins and Quest performance. The company also increased gross margin in an inflationary environment and instituted a price increase.

  • Net sales increased 16.9% driven by solid Atkins and Quest performance
  • Gross profit margin of 40.2%, an increase of 60 basis points
  • Net income of $18.2 million versus a net loss of $39.3 million
  • Adjusted EBITDA increased 30.9% to $48.5 million

Headline financials

Total Revenue

$260M

Previous: $222M+16.9%
EPS (adj)

$0.29

Previous: $0.20+45.0%
Gross Margin

40.2%

No prior period
Capital Expenditures

$2.68M

Previous: $970K+176.2%
Free Cash Flow

$37.9M

Previous: $33.9M+12.0%
Net Income

$18.2M

Previous: $12.4M+46.5%
Operating Income

$40.8M

Previous: $24.8M+64.4%
Gross Profit

$105M

Previous: $88.1M+18.6%
Cash & Equivalents

$75.3M

Previous: $95.8M-21.4%
Total Assets

$2.05B

Previous: $2.01B+2.2%
Stock-Based Comp

$2.5M

Previous: $1.69M+47.8%

Revenue & EPS history

Simply Good Foods · Revenue · Quarterly

$260M

Q4 2021+16.9%vs Q4 2020
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

Assuming no meaningful improvement in workplace mobility and no significant supply chain cost inflation from current levels, the Company anticipates net sales to increase 8-10% versus last year, modest gross margin contraction, Adjusted EBITDA to increase slightly greater than the net sales growth rate, and Adjusted Diluted EPS to increase greater than the Adjusted EBITDA growth rate in fiscal 2022.

Tailwinds

  • Net sales to increase 8-10% versus last year.
  • Included in the sales outlook is about a 1 percentage point headwind related to the European business exit that was completed in the fourth quarter of fiscal 2021.
  • Modest gross margin contraction as supply chain cost inflation should largely be offset by the price increase that went into effect in September and cost savings initiatives.
  • Full-year fiscal 2022 Adjusted EBITDA to increase slightly greater than the net sales growth rate.
  • Adjusted Diluted EPS to increase greater than the Adjusted EBITDA growth rate.

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 Q4 2021

Historical avgQ4 2021

+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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