NYSE$UTZ

Utz Brands Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Utz Brands reported financial results for the first quarter of 2021, showing increased net sales and adjusted EBITDA.

Utz Brands reported an 18.0% increase in net sales to $269.2 million, driven by acquisitions and favorable price/mix, despite volume declines due to transitory events. Adjusted EBITDA increased by 29.8% to $37.9 million, with margin expansion primarily due to the acquisition of Truco. The company reaffirms its full-year outlook.

  • Net sales increased by 18.0% to $269.2 million, driven by acquisitions and favorable price/mix.
  • Pro Forma Net Sales decreased 2.2% to $269.2 million compared to the previous year.
  • Adjusted EBITDA increased 29.8% to $37.9 million, with margin expansion to 14.1%.
  • The company is reaffirming its full-year outlook, expecting modest organic sales growth and Adjusted EBITDA between $180 and $190 million.

Headline financials

Total Revenue

$269M

No prior period
EPS (adj)

$0.13

No prior period
Adjusted Gross Profit Margin

38.8%

No prior period
Adjusted EBITDA Margin

14.1%

No prior period
Capital Expenditures

-$2.13M

No prior period
Free Cash Flow

-$24.7M

No prior period
Net Income

-$22.5M

No prior period
Operating Income

$9.3M

No prior period
Gross Profit

$95.2M

No prior period
Cash & Equivalents

$4.02M

No prior period
Total Assets

$2.57B

No prior period

Revenue & EPS history

Utz · Revenue · Quarterly

$269M

Q1 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

For the 52-week fiscal year ending January 2, 2022, the Company is reaffirming its full-year outlook previously provided on March 18, 2021.

Tailwinds

  • Net sales consistent with 2020 Pro Forma Net Sales of $1.16B with modest organic sales growth year over year.
  • The Company’s projected pro forma two-year CAGR for fiscal 2020 and 2021 of approximately 6% is above the Company’s long-term growth outlook of 3 – 4%.
  • Adjusted EBITDA of $180 – $190 million versus 2020 Further Adjusted EBITDA of $181 million, delivering a margin of approximately 16%.
  • Adjusted Earnings Per Share of $0.70 – $0.75, which excludes step-up depreciation & amortization (“D&A”), stock compensation expense, and non-recurring items.
  • Expecting 200 – 250 Independent Route (“IO”) conversions

Headwinds

  • The Company’s full-year outlook excludes the impact of the pending acquisition of Festida Foods, which is expected to close in the second quarter of 2021.
  • Expecting commodity inflation of approximately 4%
  • Effective cash tax rate of 23.0 - 25.0% (% of pre-tax book income)
  • Net leverage ratio of approximately 3.5x by end of 2021
  • Macroeconomic environment continues as it has for the last several months and (ii) there is no significant change on the Company from the impact of COVID-19.

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.2%

Avg return

Earnings day

+0.1%

Avg return

5 days after

-1.1%

Avg return

30 days after

55%

12 / 22 earnings

Positive

+15.2%

Q1 2022

Best reaction

-13.4%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.8%-6.2%-8.1%
Q4 2025-4.8%+2.9%-19.2%
Q3 2025-13.4%-15.4%-18.9%
Q1 2025-8.7%-8.8%-0.5%
Q4 2024+2.8%+5.0%+1.9%
Q3 2024+7.0%+6.3%+7.4%
Q2 2024+9.5%+12.5%+13.8%
Q1 2024+6.1%+4.6%+2.3%
Q4 2023-4.5%-4.0%+0.5%
Q3 2023+1.1%+6.6%+11.5%
Q2 2023+2.3%-1.3%-10.9%
Q1 2023-7.3%-5.4%-13.9%
Q4 2022+5.1%+6.6%+1.0%
Q3 2022+5.4%+8.2%+11.7%
Q2 2022-4.5%-4.3%-9.8%
Q1 2022+15.2%+14.2%+4.1%
Q4 2021-8.9%-3.0%+4.0%
Q3 2021+8.4%+7.2%+0.1%
Q2 2021-9.9%-13.6%-7.2%
Q1 2021-7.1%-8.2%-6.4%
Q3 2020-0.3%-2.1%+12.1%
Q4 2019+0.1%-0.1%+0.2%

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