NYSE$UTZ

Utz Brands Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Utz reported strong consumer demand with accelerated sales growth and delivered two-year market share gains.

Utz Brands reported a 26.1% increase in net sales to $312.7 million compared to the third quarter of 2020. Pro Forma Net Sales increased 1.4%. Net income increased to $31.4 million compared to a net loss of $(25.3) million in the prior-year period. Adjusted EBITDA increased 17.3% to $44.8 million.

  • Net sales increased 26.1% to $312.7 million.
  • Pro Forma Net Sales increased 1.4% to $312.7 million.
  • Net income of $31.4 million increased compared to a net loss of $(25.3) million in the prior-year period.
  • Adjusted EBITDA increased 17.3% to $44.8 million.

Headline financials

Total Revenue

$313M

Previous: $79.4M+293.9%
EPS (adj)

$0.18

Previous: $0.00
Organic Net Sales Growth

1.0%

No prior period
Adjusted EBITDA Margin

14.3%

Previous: 15.4%-7.1%
Capital Expenditures

-$17.8M

Previous: -$2.97M-498.7%
Free Cash Flow

$15.5M

Previous: -$3.08M+601.4%
Net Income

$33.3M

Previous: -$111K+30056.8%
Operating Income

$2.88M

Previous: -$1.18M+343.9%
Gross Profit

$103M

Previous: $24.1M+326.4%
Cash & Equivalents

$26M

Previous: $32M-18.9%
Total Assets

$2.63B

Previous: $2.06B+27.7%

Revenue & EPS history

Utz · Revenue · Quarterly

$313M

Q3 2021+293.9%vs Q3 2020
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

The Company continues to expect fiscal 2021 net sales to be consistent with fiscal 2020 Pro Forma Net Sales with modest organic sales growth year over year. The Company expects to towards the low-end of its previous Adjusted EBITDA expectations and is reaffirming its Adjusted Earnings Per Share expectations.

Tailwinds

  • Fiscal 2021 net sales are expected to be consistent with fiscal 2020 Pro Forma Net Sales.
  • Modest organic sales growth year over year is expected.
  • Projected pro forma two-year CAGR for fiscal 2021 of approximately 6% is above the Company’s long-term organic growth outlook of 3 – 4%.
  • A more favorable tax rate is expected.
  • Lower interest expense is expected.

Headwinds

  • Rising supply chain cost inflation is expected.
  • Commodity inflation of approximately 7% is expected.
  • Higher transportation costs than previously expected in 2Q’21.
  • Expect to use balance sheet cash and revolving credit facility to fund the $56 million cash purchase price for the previously announced acquisition of R.W. Garcia, LLC and related entities.
  • Capital expenditures are expected to accelerate in the fourth quarter to support the Company’s productivity initiatives.

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 Q3 2021

Historical avgQ3 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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