Krispy Kreme Inc.
11/07/2024 | Press release | Distributed by Public on 11/07/2024 05:46
Krispy Kreme Reports Third Quarter 2024 Financial Results
11/07/2024
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Third quarter Net Revenue of $379.9 million, Organic Revenue increases 3.5%
CHARLOTTE, N.C.--(BUSINESS WIRE)-- Krispy Kreme, Inc. (NASDAQ: DNUT) ("Krispy Kreme", "KKI", or the "Company") today reported financial results for the quarter ended September 29, 2024.
Third Quarter Highlights (vs Q3 2023)
- Net revenue of $379.9 million
- Organic revenue grew 3.5% to $376.4 million
- GAAP net income of $37.6 million, linked to the sale of a majority ownership stake of Insomnia Cookies ($39.6 million net income attributable to KKI)
- Adjusted EBITDA of $34.7 million
- GAAP operating cash flow of $3.3 million
- Global Points of Access ("POA") increased 2,417, or 18.0%, to 15,811
"Krispy Kreme delivered a seventeenth consecutive quarter of year-over-year organic sales growth driven by increased Delivered Fresh Daily and digital sales," said Josh Charlesworth, CEO.
"Consumers ask us every day, 'When can you bring Krispy Kreme to my town?' hence our strategy of making our fresh doughnuts more available around the world. The successful start of our nationwide U.S. rollout at McDonald's, which began in Chicago in October and continues next week across Ohio and Indiana, is a major milestone on this journey, and we now expect to be delighting Krispy Kreme's fans with our melt-in-your-mouth doughnuts fresh daily in nearly 2,000 McDonald's restaurants by the end of 2024."
"Now well into my first year as CEO, we have streamlined and focused our business with the sale of our majority stake in Insomnia Cookies complete and the acceleration of our US DFD expansion underway. To better align our talent and our capital to our business priorities, we are now restructuring our management teams to concentrate on maximizing our profitable expansion of the U.S. while focusing international efforts on the wider adoption of our capital-light franchise model. With our resources prioritized to the things that matter most, I believe that these changes will result in a bigger and better Krispy Kreme," Charlesworth continued.
|
Financial Highlights |
Quarter Ended |
|||||||||||
|
$ in millions, except per share data |
September 29, 2024 |
October 1, 2023 |
Change |
|||||||||
|
GAAP: |
||||||||||||
|
Net revenue |
$ |
379.9 |
$ |
407.4 |
(6.8 |
)% |
||||||
|
Operating loss |
$ |
(16.0 |
) |
$ |
(2.1 |
) |
nm |
|||||
|
Operating loss margin |
(4.2 |
)% |
(0.5 |
)% |
(370) bps |
|||||||
|
Net income/(loss) |
$ |
37.6 |
$ |
(40.3 |
) |
nm |
||||||
|
Net income/(loss) attributable to KKI |
$ |
39.6 |
$ |
(40.5 |
) |
nm |
||||||
|
Diluted income/(loss) per share |
$ |
0.23 |
$ |
(0.24 |
) |
$ |
0.47 |
|||||
|
Non-GAAP (1) : |
||||||||||||
|
Organic revenue |
$ |
376.4 |
$ |
363.8 |
3.5 |
% |
||||||
|
Adjusted net (loss)/income, diluted |
$ |
(2.5 |
) |
$ |
4.4 |
nm |
||||||
|
Adjusted EBITDA |
$ |
34.7 |
$ |
43.7 |
(20.7 |
)% |
||||||
|
Adjusted EBITDA margin |
9.1 |
% |
10.7 |
% |
(160) bps |
|||||||
|
Adjusted diluted (loss)/income per share |
$ |
(0.01 |
) |
$ |
0.03 |
$ |
(0.04 |
) |
|
Notes: |
|
|
(1) |
Non-GAAP figures - please refer to Reconciliation of Non-GAAP Financial Measures. |
|
Key Operating Metrics |
Quarter Ended |
||||||||||
|
$ in millions |
September 29, 2024 |
October 1, 2023 |
Change |
||||||||
|
Global Points of Access |
15,811 |
13,394 |
18.0 |
% |
|||||||
|
Sales per Hub (U.S.) TTM |
$ |
4.9 |
$ |
4.8 |
2.1 |
% |
|||||
|
Sales per Hub (International) TTM |
$ |
10.1 |
$ |
9.9 |
2.0 |
% |
|||||
|
Digital Sales as a Percent of Doughnut Shop Sales |
15.5 |
% |
12.6 |
% |
290 bps |
Third Quarter 2024 Consolidated Results (vs Q3 2023)
Krispy Kreme's third-quarter results reflect the sale of a majority ownership stake of Insomnia Cookies. The business is now fully focused on its core strategy of producing, selling and distributing fresh doughnuts daily and executing on its profitable U.S. growth strategy and capital light international model. Net revenue was $379.9 million in Q3 2024, a decline of 6.8%, compared to $407.4 million in the same quarter last year. GAAP Net Income was $37.6 million, including the gain on divestiture of a controlling interest in Insomnia Cookies, compared to prior year net loss of $40.3 million. GAAP diluted earnings per share was $0.23, compared to a loss of $0.24 in the same quarter last year.
Total company organic revenue grew 3.5% compared to the same quarter in the prior year. Delivered Fresh Daily ("DFD") sales and digital sales both grew 15%, more than offsetting expected consumer softness in U.S. Retail and the U.K.
Adjusted EBITDA was $34.7 million, a decline of 20.7% largely driven by the sale of a majority ownership stake in Insomnia Cookies. Adjusted EBITDA margin declined 160 bps to 9.1%, due to underperformance in the U.K. and incremental vehicle accident claims costs in the U.S. Adjusted Net Loss, diluted was $2.5 million in the quarter. Adjusted Diluted EPS declined to $(0.01) from $0.03 in the same quarter last year.
Third Quarter 2024 Segment Results ( vs Q3 2023)
U.S.: In the U.S. segment, net revenue declined $31.8 million, or 12.2%, driven by the $43.5 million impact associated with the sale of a majority ownership stake of Insomnia Cookies in July 2024. Organic revenue growth of $5.5 million, or 2.5%, was driven by a 14% increase in Points of Access and a 21% increase in digital channel revenues.
U.S. Adjusted EBITDA decreased $8.3 million, or 37.5%, with margin declining 250 basis points to 6.1%, due to incremental vehicle accident claims costs and McDonald's start-up costs, partially offset by pricing and productivity benefits from the Company's Hub and Spoke model. Following successful pilots with a third-party logistics partner in Los Angeles and Washington, DC, the Company launched an RFP on October 9th with several national and regional carriers for daily delivery of fresh doughnuts to grocers, convenience stores, quick service restaurants, and others.
International: In the International segment, net revenue grew $4.6 million, or 3.7%, with organic revenue growth of $5.3 million or 4.2%, driven by Canada, Japan, and Australia, which more than offset underperformance in the U.K.
International segment Adjusted EBITDA margin improved sequentially despite the seasonally weaker quarter as actions taken to reduce costs delivered improved results. Year over year, Adjusted EBITDA decreased $2.2 million, or 8.7%, with a margin decline of 240 basis points to 17.4%, primarily due to pressure in the U.K. where we have welcomed a new management team focused on improving the business.
Market Development: In the Market Development segment, net revenue declined $0.3 million, or approximately 1.5%, due to the $2.1 million impact of franchise acquisitions in the third quarter of fiscal 2024. Market Development organic revenue grew $1.8 million, or approximately 8.6%, with a new market opening in Morocco alongside continued growth in France, Turkey, and Ecuador.
Market Development Adjusted EBITDA grew $1.5 million, or 14.8%, with margin expansion of 770 basis points delivering Adjusted EBITDA margins of 54.2%, driven by royalty flow through and savings in SG&A.
Balance Sheet and Capital Expenditures
During the third quarter of 2024, Operating Cash Flow was $3.3 million. The Company invested $26.1 million, or 6.9% of net revenue, in capital expenditures, driven primarily by the investments in the Hub and Spoke model for the U.S. expansion of the DFD network. During the quarter, the Company received $117.6 million in net proceeds from the divestiture of Insomnia Cookies and $45.0 million from the repayment of an intercompany loan due from Insomnia Cookies, which was used to reduce long term debt.
2024 Financial Guidance
We are adjusting our full year guide to reflect the third quarter results, the acceleration of our expansion with McDonald's, and the completion of the Insomnia Cookies transaction in July 2024:
- Net Revenue of $1,650 to $1,685 million
- Organic Revenue growth of +5% to +7%
- Adjusted EBITDA of $205 to $210 million
- Adjusted Diluted EPS of $0.18 to $0.22
- Income Tax rate between 28% and 30%
- Capital Expenditures of 7% to 8% of net revenue
- Interest Expense, net of $55 million to $60 million
Definitions
The following definitions apply to terms used throughout this press release:
- Global Points of Access: Reflects all locations at which fresh doughnuts or cookies can be purchased. We define global points of access to include all Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, DFD Doors and Cookie Shops, at both Company-owned and franchise locations as of the end of the applicable reporting period. We monitor Global Points of Access as a metric that informs the growth of our omni-channel presence over time and believe this metric is useful to investors to understand our footprint in each of our segments.
- Hubs: Reflects locations where fresh doughnuts are produced and processed for sale at any point of access. We define Hubs to include self-sustaining Hot Light Theater Shops and Doughnut Factories, at both Company-owned and franchise locations as of the end of the applicable reporting period.
- Sales Per Hub: Sales per Hub equals Fresh Revenues from Hubs with Spokes, divided by the average number of Hubs with Spokes at the end of each of the five most recent quarters.
- Fresh Revenues from Hubs with Spokes: Fresh Revenues include product sales generated from our Doughnut Shop business (including digital), as well as DFD sales, but excluding sales from Branded Sweet Treats. It also excludes all Insomnia Cookies revenues as the measure is focused on the Krispy Kreme business. Fresh Revenues from Hubs with Spokes equals the Fresh Revenues derived from those Hubs currently producing product for other shops, Carts and Food Trucks, and/or DFD doors, but excluding Fresh Revenues derived from those Hubs not currently producing product for other shops, Carts and Food Trucks, and/or DFD doors.
- Free Cash Flow: Defined as cash provided by operating activities less purchases of property and equipment.
Conference Call
Krispy Kreme will host a public conference call at 8:30 AM Eastern Time today to discuss its results for the third quarter of 2024. The conference call can be accessed by dialing 1 (800) 715-9871 and entering the conference ID 1277949. International participants can access the call via the corresponding number listed HERE and entering the conference ID 1277949. To listen to the live audio webcast and Q&A, visit the Krispy Kreme investor relations website at investors.krispykreme.com. A replay and transcript of the webcast will be available on the website within 24 hours after the call. Krispy Kreme's earnings press release and related materials will also be available on the investor relations section of the Company's website.
About Krispy Kreme
Headquartered in Charlotte, N.C., Krispy Kreme is one of the most beloved and well-known sweet treat brands in the world. Our iconic Original Glazed® doughnut is universally recognized for its hot-off-the-line, melt-in-your-mouth experience. Krispy Kreme operates in 40 countries through its unique network of fresh doughnut shops, partnerships with leading retailers, and a rapidly growing digital business with more than 15,500 fresh points of access. Our purpose of touching and enhancing lives through the joy that is Krispy Kreme guides how we operate every day and is reflected in the love we have for our people, our communities and the planet. Connect with Krispy Kreme Doughnuts at www.KrispyKreme.com, or on one of its many social media channels, including www.Facebook.com/KrispyKreme and www.X.com/KrispyKreme.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. The words "continue," "towards," "expect," "outlook," "guidance," "explore," or similar words, or the negative of these words, identify forward-looking statements. Such forward-looking statements are based on certain assumptions and estimates that we consider reasonable but are subject to various risks and uncertainties relating to our operations, financial results, financial conditions, business, prospects, growth strategy and liquidity. Accordingly, there are, and may be, important factors that could cause our actual results to differ materially from those indicated in these statements. The inclusion of this forward-looking information should not be regarded as a representation by us that the future plans, estimates or expectations contemplated by us will be achieved. Our actual results could differ materially from the forward-looking statements included herein. Factors that could cause actual results to differ from those expressed in forward-looking statements include, without limitation, the risks and uncertainties described under the headings "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023, filed by us with the Securities and Exchange Commission ("SEC") and described in the other filings we make from time to time with the SEC. We believe that these factors include, but are not limited to, the impact of pandemics, changes in consumer preferences, the impact of inflation, and our ability to execute on our omni-channel business strategy. These forward-looking statements are made only as of the date of this document, and we do not undertake any obligation, other than as may be required by applicable law, to update or revise any forward-looking or cautionary statement to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise.
Non-GAAP Measures
This press release includes certain non-GAAP financial measures including organic revenue growth, Adjusted EBITDA, Adjusted Net Income, Diluted, Adjusted Diluted EPS, Net Debt, Fresh Revenue from Hubs with Spokes and Sales per Hub, which differ from results using U.S. Generally Accepted Accounting Principles ("GAAP"). These non-GAAP financial measures are not universally consistent calculations, limiting their usefulness as comparative measures. Other companies may calculate similarly titled financial measures differently than we do or may not calculate them at all. Additionally, these non-GAAP financial measures are not measurements of financial performance under GAAP. In order to facilitate a clear understanding of our consolidated historical operating results, you should examine our non-GAAP financial measures in conjunction with our historical consolidated financial statements and notes thereto filed with the SEC. See "Reconciliation of Non-GAAP Financial Measures" below for reconciliations of our non-GAAP financial measures to the comparable GAAP measures.
To the extent that the Company provides guidance, it does so only on a non-GAAP basis. The Company does not provide reconciliations of such forward-looking non-GAAP measures to GAAP due to the inability to predict the amount and timing of impacts outside of the Company's control on certain items, such as net income and other charges reflected in our reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.
|
Krispy Kreme, Inc. |
|||||||||||||||
|
Condensed Consolidated Statements of Operations (Unaudited) |
|||||||||||||||
|
( in thousands, except per share amounts ) |
|||||||||||||||
|
Quarter Ended |
Three Quarters Ended |
||||||||||||||
|
September 29, |
October 1, |
September 29, |
October 1, |
||||||||||||
|
Net revenues |
|||||||||||||||
|
Product sales |
$ |
370,662 |
$ |
398,745 |
$ |
1,233,585 |
$ |
1,209,767 |
|||||||
|
Royalties and other revenues |
9,205 |
8,622 |
27,789 |
25,432 |
|||||||||||
|
Total net revenues |
379,867 |
407,367 |
1,261,374 |
1,235,199 |
|||||||||||
|
Product and distribution costs |
95,840 |
101,353 |
310,701 |
330,292 |
|||||||||||
|
Operating expenses |
192,027 |
195,380 |
609,726 |
575,953 |
|||||||||||
|
Selling, general and administrative expense |
71,110 |
68,305 |
207,150 |
192,355 |
|||||||||||
|
Marketing expenses |
10,680 |
12,478 |
35,211 |
32,101 |
|||||||||||
|
Pre-opening costs |
619 |
1,059 |
2,691 |
2,927 |
|||||||||||
|
Other income, net |
(5,781 |
) |
(1,102 |
) |
(6,430 |
) |
(6,051 |
) |
|||||||
|
Depreciation and amortization expense |
31,376 |
32,007 |
99,562 |
89,142 |
|||||||||||
|
Operating (loss)/income |
(16,004 |
) |
(2,113 |
) |
2,763 |
18,480 |
|||||||||
|
Interest expense, net |
16,280 |
12,807 |
44,468 |
36,858 |
|||||||||||
|
Gain on divestiture of Insomnia Cookies |
(87,128 |
) |
- |
(87,128 |
) |
- |
|||||||||
|
Other non-operating (income)/expense, net |
(407 |
) |
971 |
1,115 |
3,031 |
||||||||||
|
Income/(loss) before income taxes |
55,251 |
(15,891 |
) |
44,308 |
(21,409 |
) |
|||||||||
|
Income tax expense |
17,679 |
24,367 |
18,330 |
17,121 |
|||||||||||
|
Net income/(loss) |
37,572 |
(40,258 |
) |
25,978 |
(38,530 |
) |
|||||||||
|
Net (loss)/income attributable to noncontrolling interest |
(1,991 |
) |
199 |
440 |
2,005 |
||||||||||
|
Net income/(loss) attributable to Krispy Kreme, Inc. |
$ |
39,563 |
$ |
(40,457 |
) |
$ |
25,538 |
$ |
(40,535 |
) |
|||||
|
Net income/(loss) per share: |
|||||||||||||||
|
Common stock - Basic |
$ |
0.23 |
$ |
(0.24 |
) |
$ |
0.15 |
$ |
(0.24 |
) |
|||||
|
Common stock - Diluted |
$ |
0.23 |
$ |
(0.24 |
) |
$ |
0.15 |
$ |
(0.24 |
) |
|||||
|
Weighted average shares outstanding: |
|||||||||||||||
|
Basic |
169,596 |
168,224 |
169,125 |
168,183 |
|||||||||||
|
Diluted |
171,486 |
168,224 |
171,384 |
168,183 |
|||||||||||
|
Krispy Kreme, Inc. |
|||||||
|
Condensed Consolidated Balance Sheets |
|||||||
|
( in thousands, except per share data ) |
|||||||
|
As of |
|||||||
|
(Unaudited) September 29, |
December 31, |
||||||
|
ASSETS |
|||||||
|
Current assets: |
|||||||
|
Cash and cash equivalents |
$ |
25,410 |
$ |
38,185 |
|||
|
Restricted cash |
474 |
429 |
|||||
|
Accounts receivable, net |
62,019 |
59,362 |
|||||
|
Inventories |
31,486 |
34,716 |
|||||
|
Taxes receivable |
19,406 |
15,526 |
|||||
|
Prepaid expense and other current assets |
25,531 |
25,363 |
|||||
|
Total current assets |
164,326 |
173,581 |
|||||
|
Property and equipment, net |
489,782 |
538,220 |
|||||
|
Goodwill |
1,060,393 |
1,101,939 |
|||||
|
Other intangible assets, net |
831,735 |
946,349 |
|||||
|
Operating lease right of use asset, net |
409,425 |
456,964 |
|||||
|
Investments in unconsolidated entities |
91,033 |
2,806 |
|||||
|
Other assets |
18,430 |
20,733 |
|||||
|
Total assets |
$ |
3,065,124 |
$ |
3,240,592 |
|||
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||
|
Current liabilities: |
|||||||
|
Current portion of long-term debt |
$ |
47,577 |
$ |
54,631 |
|||
|
Current operating lease liabilities |
45,767 |
50,365 |
|||||
|
Accounts payable |
123,125 |
156,488 |
|||||
|
Accrued liabilities |
119,832 |
134,005 |
|||||
|
Structured payables |
139,170 |
130,104 |
|||||
|
Total current liabilities |
475,471 |
525,593 |
|||||
|
Long-term debt, less current portion |
804,638 |
836,615 |
|||||
|
Noncurrent operating lease liabilities |
406,726 |
454,583 |
|||||
|
Deferred income taxes, net |
119,291 |
123,925 |
|||||
|
Other long-term obligations and deferred credits |
49,858 |
36,093 |
|||||
|
Total liabilities |
1,855,984 |
1,976,809 |
|||||
|
Commitments and contingencies |
|||||||
|
Shareholders' equity: |
|||||||
|
Common stock, $0.01 par value; 300,000 shares authorized as of both September 29, 2024 and December 31, 2023; 169,799 and 168,628 shares issued and outstanding as of September 29, 2024 and December 31, 2023, respectively |
1,698 |
1,686 |
|||||
|
Additional paid-in capital |
1,460,416 |
1,443,591 |
|||||
|
Shareholder note receivable |
(1,924 |
) |
(3,850 |
) |
|||
|
Accumulated other comprehensive (loss)/income, net of income tax |
(9,276 |
) |
7,246 |
||||
|
Retained deficit |
(271,238 |
) |
(278,990 |
) |
|||
|
Total shareholders' equity attributable to Krispy Kreme, Inc. |
1,179,676 |
1,169,683 |
|||||
|
Noncontrolling interest |
29,464 |
94,100 |
|||||
|
Total shareholders' equity |
1,209,140 |
1,263,783 |
|||||
|
Total liabilities and shareholders' equity |
$ |
3,065,124 |
$ |
3,240,592 |
|||
|
Krispy Kreme, Inc. |
|||||||
|
Condensed Consolidated Statements of Cash Flows (Unaudited) |
|||||||
|
( in thousands ) |
|||||||
|
Three Quarters Ended |
|||||||
|
September 29, |
October 1, |
||||||
|
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES: |
|||||||
|
Net income/(loss) |
$ |
25,978 |
$ |
(38,530 |
) |
||
|
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: |
|||||||
|
Depreciation and amortization expense |
99,562 |
89,142 |
|||||
|
Deferred and other income taxes |
(22 |
) |
12,634 |
||||
|
Loss on extinguishment of debt |
- |
472 |
|||||
|
Impairment and lease termination charges |
368 |
7,711 |
|||||
|
Loss/(gain) on disposal of property and equipment |
470 |
(168 |
) |
||||
|
Gain on divestiture of Insomnia Cookies |
(87,128 |
) |
- |
||||
|
Gain on remeasurement of equity method investment |
(5,579 |
) |
- |
||||
|
Gain on sale-leaseback |
- |
(9,646 |
) |
||||
|
Share-based compensation |
24,603 |
17,821 |
|||||
|
Change in accounts and notes receivable allowances |
433 |
504 |
|||||
|
Inventory write-off |
1,731 |
10,522 |
|||||
|
Settlement of interest rate swap derivatives |
- |
7,657 |
|||||
|
Amortization related to settlement of interest rate swap derivatives |
(5,910 |
) |
(7,334 |
) |
|||
|
Other |
263 |
566 |
|||||
|
Change in operating assets and liabilities, excluding business acquisitions and divestitures, and foreign currency translation adjustments |
(35,982 |
) |
(47,319 |
) |
|||
|
Net cash provided by operating activities |
18,787 |
44,032 |
|||||
|
CASH FLOWS PROVIDED BY/(USED FOR) INVESTING ACTIVITIES: |
|||||||
|
Purchase of property and equipment |
(86,877 |
) |
(88,605 |
) |
|||
|
Proceeds from sale-leaseback |
- |
10,025 |
|||||
|
Acquisition of shops and franchise rights from franchisees, net of cash acquired |
(26,612 |
) |
- |
||||
|
Purchase of equity method investment |
(3,506 |
) |
- |
||||
|
Net proceeds from divestiture of Insomnia Cookies |
117,646 |
- |
|||||
|
Principal payment received from loan to Insomnia Cookies |
45,000 |
- |
|||||
|
Disbursement for loan receivable |
(1,086 |
) |
- |
||||
|
Other investing activities |
180 |
222 |
|||||
|
Net cash provided by/(used for) investing activities |
44,745 |
(78,358 |
) |
||||
|
CASH FLOWS (USED FOR)/PROVIDED BY FINANCING ACTIVITIES: |
|||||||
|
Proceeds from the issuance of debt |
490,000 |
1,044,698 |
|||||
|
Repayment of long-term debt and lease obligations |
(545,692 |
) |
(965,250 |
) |
|||
|
Payment of financing costs |
- |
(5,000 |
) |
||||
|
Proceeds from structured payables |
298,551 |
145,099 |
|||||
|
Payments on structured payables |
(264,346 |
) |
(159,571 |
) |
|||
|
Payment of contingent consideration related to a business combination |
- |
(925 |
) |
||||
|
Capital contribution by shareholders, net of loans issued |
919 |
631 |
|||||
|
Proceeds from sale of noncontrolling interest in subsidiary |
364 |
- |
|||||
|
Distribution to shareholders |
(17,743 |
) |
(17,657 |
) |
|||
|
Payments for repurchase and retirement of common stock |
(4,366 |
) |
(1,609 |
) |
|||
|
Distribution to noncontrolling interest |
(35,035 |
) |
(12,883 |
) |
|||
|
Net cash (used for)/provided by financing activities |
(77,348 |
) |
27,533 |
||||
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
1,086 |
(2,796 |
) |
||||
|
Net decrease in cash, cash equivalents and restricted cash |
(12,730 |
) |
(9,589 |
) |
|||
|
Cash, cash equivalents and restricted cash at beginning of period |
38,614 |
35,730 |
|||||
|
Cash, cash equivalents and restricted cash at end of period |
$ |
25,884 |
$ |
26,141 |
|||
|
Net cash provided by operating activities |
$ |
18,787 |
$ |
44,032 |
|||
|
Less: Purchase of property and equipment |
(86,877 |
) |
(88,605 |
) |
|||
|
Free cash flow |
$ |
(68,090 |
) |
$ |
(44,573 |
) |
Krispy Kreme, Inc.
Reconciliation of Non-GAAP Financial Measures (Unaudited)
( in thousands, except per share amounts )
We define "Adjusted EBITDA" as earnings before interest expense, net, income tax expense, and depreciation and amortization, with further adjustments for share-based compensation, certain strategic initiatives, acquisition and integration expenses, and other certain non-recurring, infrequent or non-core income and expense items. Adjusted EBITDA is a principal metric that management uses to monitor and evaluate operating performance and provides a consistent benchmark for comparison across reporting periods.
We define "Adjusted Net Income, Diluted" as net loss attributable to common shareholders, adjusted for interest expense, share-based compensation, certain strategic initiatives, acquisition and integration expenses, amortization of acquisition-related intangibles, the tax impact of adjustments, and other certain non-recurring, infrequent or non-core income and expense items. "Adjusted EPS" is Adjusted Net Income, Diluted converted to a per share amount.
Adjusted EBITDA, Adjusted Net Income, Diluted, and Adjusted EPS have certain limitations, including adjustments for income and expense items that are required by GAAP. In evaluating these non-GAAP measures, you should be aware that in the future we will incur expenses that are the same as or similar to some of the adjustments in this presentation, such as share-based compensation. Our presentation of Adjusted EBITDA, Adjusted Net Income, Diluted, and Adjusted EPS should not be construed to imply that our future results will be unaffected by any such adjustments. Management compensates for these limitations by relying on our GAAP results in addition to using Adjusted EBITDA, Adjusted Net Income, Diluted, and Adjusted EPS supplementally.
|
Quarter Ended |
Three Quarters Ended |
||||||||||||||
|
(in thousands) |
September 29, 2024 |
October 1, 2023 |
September 29, 2024 |
October 1, 2023 |
|||||||||||
|
Net income/(loss) |
$ |
37,572 |
$ |
(40,258 |
) |
$ |
25,978 |
$ |
(38,530 |
) |
|||||
|
Interest expense, net |
16,280 |
12,807 |
44,468 |
36,858 |
|||||||||||
|
Income tax expense |
17,679 |
24,367 |
18,330 |
17,121 |
|||||||||||
|
Depreciation and amortization expense |
31,376 |
32,007 |
99,562 |
89,142 |
|||||||||||
|
Share-based compensation |
9,969 |
7,452 |
24,603 |
17,821 |
|||||||||||
|
Employer payroll taxes related to share-based compensation |
49 |
96 |
299 |
310 |
|||||||||||
|
Gain on divestiture of Insomnia Cookies |
(87,128 |
) |
- |
(87,128 |
) |
- |
|||||||||
|
Other non-operating (income)/expense, net (1) |
(407 |
) |
971 |
1,115 |
3,031 |
||||||||||
|
Strategic initiatives (2) |
11,426 |
5,895 |
20,434 |
23,841 |
|||||||||||
|
Acquisition and integration expenses (3) |
1,938 |
49 |
3,037 |
479 |
|||||||||||
|
New market penetration expenses (4) |
156 |
678 |
1,194 |
1,013 |
|||||||||||
|
Shop closure expenses/(income), net (5) |
21 |
(449 |
) |
788 |
356 |
||||||||||
|
Restructuring and severance expenses (6) |
631 |
552 |
769 |
2,799 |
|||||||||||
|
Gain on remeasurement of equity method investment (7) |
(5,579 |
) |
- |
(5,579 |
) |
- |
|||||||||
|
Gain on sale-leaseback |
- |
- |
- |
(9,646 |
) |
||||||||||
|
Other (8) |
716 |
(426 |
) |
(257 |
) |
2,888 |
|||||||||
|
Adjusted EBITDA |
$ |
34,699 |
$ |
43,741 |
$ |
147,613 |
$ |
147,483 |
|
Quarter Ended |
Three Quarters Ended |
||||||||||||||
|
(in thousands) |
September 29, 2024 |
October 1, 2023 |
September 29, 2024 |
October 1, 2023 |
|||||||||||
|
Segment Adjusted EBITDA: |
|||||||||||||||
|
U.S. |
$ |
13,922 |
$ |
22,258 |
$ |
89,206 |
$ |
88,878 |
|||||||
|
International |
22,779 |
24,961 |
64,970 |
68,645 |
|||||||||||
|
Market Development |
11,271 |
9,816 |
36,046 |
31,862 |
|||||||||||
|
Corporate |
(13,273 |
) |
(13,294 |
) |
(42,609 |
) |
(41,902 |
) |
|||||||
|
Total Adjusted EBITDA |
$ |
34,699 |
$ |
43,741 |
$ |
147,613 |
$ |
147,483 |
|
Quarter Ended |
Three Quarters Ended |
||||||||||||||
|
(in thousands, except per share amounts) |
September 29, 2024 |
October 1, 2023 |
September 29, 2024 |
October 1, 2023 |
|||||||||||
|
Net income/(loss) |
$ |
37,572 |
$ |
(40,258 |
) |
$ |
25,978 |
$ |
(38,530 |
) |
|||||
|
Share-based compensation |
9,969 |
7,452 |
24,603 |
17,821 |
|||||||||||
|
Employer payroll taxes related to share-based compensation |
49 |
96 |
299 |
310 |
|||||||||||
|
Gain on divestiture of Insomnia Cookies |
(87,128 |
) |
- |
(87,128 |
) |
- |
|||||||||
|
Other non-operating (income)/expense, net (1) |
(407 |
) |
971 |
1,115 |
3,031 |
||||||||||
|
Strategic initiatives (2) |
11,426 |
5,895 |
20,434 |
23,841 |
|||||||||||
|
Acquisition and integration expenses (3) |
1,938 |
49 |
3,037 |
479 |
|||||||||||
|
New market penetration expenses (4) |
156 |
678 |
1,194 |
1,013 |
|||||||||||
|
Shop closure expenses/(income) (5) |
21 |
(449 |
) |
788 |
356 |
||||||||||
|
Restructuring and severance expenses (6) |
631 |
552 |
769 |
2,799 |
|||||||||||
|
Gain on remeasurement of equity method investment (7) |
(5,579 |
) |
- |
(5,579 |
) |
- |
|||||||||
|
Gain on sale-leaseback |
- |
- |
- |
(9,646 |
) |
||||||||||
|
Other (8) |
716 |
(426 |
) |
(257 |
) |
2,888 |
|||||||||
|
Amortization of acquisition related intangibles (9) |
7,780 |
7,386 |
22,597 |
22,027 |
|||||||||||
|
Loss on extinguishment of 2019 Facility (10) |
- |
- |
- |
472 |
|||||||||||
|
Tax impact of adjustments (11) |
20,766 |
22,694 |
13,765 |
8,574 |
|||||||||||
|
Tax specific adjustments (12) |
(2,395 |
) |
(28 |
) |
(3,210 |
) |
(2,343 |
) |
|||||||
|
Net loss/(income) attributable to noncontrolling interest |
1,991 |
(199 |
) |
(440 |
) |
(2,005 |
) |
||||||||
|
Adjusted net (loss)/income attributable to common shareholders - Basic |
$ |
(2,494 |
) |
$ |
4,413 |
$ |
17,965 |
$ |
31,087 |
||||||
|
Additional income attributed to noncontrolling interest due to subsidiary potential common shares |
(4 |
) |
(7 |
) |
(28 |
) |
(14 |
) |
|||||||
|
Adjusted net (loss)/income attributable to common shareholders - Diluted |
$ |
(2,498 |
) |
$ |
4,406 |
$ |
17,937 |
$ |
31,073 |
||||||
|
Basic weighted average common shares outstanding |
169,596 |
168,224 |
169,125 |
168,183 |
|||||||||||
|
Dilutive effect of outstanding common stock options, RSUs, and PSUs |
- |
2,421 |
2,259 |
2,249 |
|||||||||||
|
Diluted weighted average common shares outstanding |
169,596 |
170,645 |
171,384 |
170,432 |
|||||||||||
|
Adjusted net (loss)/income per share attributable to common shareholders: |
|||||||||||||||
|
Basic |
$ |
(0.01 |
) |
$ |
0.03 |
$ |
0.11 |
$ |
0.18 |
||||||
|
Diluted |
$ |
(0.01 |
) |
$ |
0.03 |
$ |
0.10 |
$ |
0.18 |
|
(1) |
Primarily foreign translation gains and losses in each period. |
|
(2) |
The quarter and three quarters ended September 29, 2024 consist primarily of costs associated with the divestiture of the Insomnia Cookies business, preparing for the McDonald's U.S. expansion, and global transformation (with these three specific initiatives aggregating to approximately $11.3 million and $20.0 million for the quarter and three quarters ended September 29, 2024, respectively). The quarter and three quarters ended October 1, 2023 consist primarily of costs associated with global transformation and U.S. initiatives such as the decision to exit the Branded Sweet Treats business, including property, plant and equipment impairments, inventory write-offs, employee severance, and other related costs. |
|
(3) |
Consists of acquisition and integration-related costs in connection with the Company's business and franchise acquisitions, including legal, due diligence, and advisory fees incurred in connection with acquisition and integration-related activities for the applicable period. |
|
(4) |
Consists of start-up costs associated with entry into new countries for which the Company's brands have not previously operated, including Brazil and Spain. |
|
(5) |
Includes lease termination costs, impairment charges, and loss on disposal of property, plant and equipment. The quarter and three quarters ended October 1, 2023 include gains related to the termination of leases at certain Krispy Kreme shops in the U.S. where the Company had already recognized impairment of the corresponding right of use assets in a prior period. |
|
(6) |
The quarter and three quarters ended September 29, 2024 consists primarily of costs associated with the restructuring of the KK U.K. executive team. The quarter and three quarters ended October 1, 2023 consists primarily of costs associated with restructuring of the global executive team. |
|
(7) |
Consists of a gain related to the remeasurement of the equity method investments in KremeWorks USA, LLC and KremeWorks Canada, L.P. to fair value immediately prior to the acquisition of the shops. |
|
(8) |
The quarter and three quarters ended September 29, 2024 and October 1, 2023 consist primarily of legal and other regulatory expenses incurred outside the ordinary course of business. The three quarters ended September 29, 2024 also include a gain from insurance proceeds received related to a shop in the U.S. that was destroyed and subsequently rebuilt. |
|
(9) |
Consists of amortization related to acquired intangible assets as reflected within depreciation and amortization in the Condensed Consolidated Statements of Operations. |
|
(10) |
Includes interest expenses related to unamortized debt issuance costs from the 2019 Facility associated with extinguished lenders as a result of the March 2023 debt refinancing. |
|
(11) |
Tax impact of adjustments calculated applying the applicable statutory rates. The quarter and three quarters ended September 29, 2024 and October 1, 2023 also include the impact of disallowed executive compensation expense. |
|
(12) |
The quarter and three quarters ended September 29, 2024 consist of the recognition of previously unrecognized tax benefits unrelated to ongoing operations, a discrete tax benefit unrelated to ongoing operations, the release of valuation allowances on state net operating losses associated with the divestiture of Insomnia Cookies, and the effect of various tax law changes on existing temporary differences. The quarter and three quarters ended October 1, 2023 consist of the recognition of a previously unrecognized tax benefit unrelated to ongoing operations, the effect of tax law changes on existing temporary differences, and a discrete tax benefit unrelated to ongoing operations. |
|
Krispy Kreme, Inc. |
|||||||||||
|
Segment Reporting (Unaudited) |
|||||||||||
|
( in thousands, except percentages or otherwise stated ) |
|||||||||||
|
Quarter Ended |
Three Quarters Ended |
||||||||||
|
September 29, 2024 |
October 1, 2023 |
September 29, 2024 |
October 1, 2023 |
||||||||
|
Net revenues: |
|||||||||||
|
U.S. |
$ |
228,376 |
$ |
260,177 |
$ |
813,615 |
$ |
808,938 |
|||
|
International |
130,697 |
126,077 |
380,716 |
358,653 |
|||||||
|
Market Development |
20,794 |
21,113 |
67,043 |
67,608 |
|||||||
|
Total net revenues |
$ |
379,867 |
$ |
407,367 |
$ |
1,261,374 |
$ |
1,235,199 |
|
Q3 2024 Organic Revenue - QTD (in thousands, except percentages) |
U.S. |
International |
Market Development |
Total Company |
|||||||||||
|
Total net revenues in third quarter of fiscal 2024 |
$ |
228,376 |
$ |
130,697 |
$ |
20,794 |
$ |
379,867 |
|||||||
|
Total net revenues in third quarter of fiscal 2023 |
260,177 |
126,077 |
21,113 |
407,367 |
|||||||||||
|
Total Net Revenues Growth |
(31,801 |
) |
4,620 |
(319 |
) |
(27,500 |
) |
||||||||
|
Total Net Revenues Growth % |
-12.2 |
% |
3.7 |
% |
-1.5 |
% |
-6.8 |
% |
|||||||
|
Less: Impact of Insomnia Cookies divestiture |
(43,531 |
) |
- |
- |
(43,531 |
) |
|||||||||
|
Adjusted net revenues in third quarter of fiscal 2023 |
216,646 |
126,077 |
21,113 |
363,836 |
|||||||||||
|
Adjusted net revenue growth |
11,730 |
4,620 |
(319 |
) |
16,031 |
||||||||||
|
Impact of acquisitions |
(6,228 |
) |
(1,108 |
) |
2,127 |
(5,209 |
) |
||||||||
|
Impact of foreign currency translation |
- |
1,770 |
- |
1,770 |
|||||||||||
|
Organic Revenue Growth |
$ |
5,502 |
$ |
5,282 |
$ |
1,808 |
$ |
12,592 |
|||||||
|
Organic Revenue Growth % |
2.5 |
% |
4.2 |
% |
8.6 |
% |
3.5 |
% |
|
Q3 2024 Organic Revenue - YTD (in thousands, except percentages) |
U.S. |
International |
Market Development |
Total Company |
|||||||||||
|
Total net revenues in first three quarters of fiscal 2024 |
$ |
813,615 |
$ |
380,716 |
$ |
67,043 |
$ |
1,261,374 |
|||||||
|
Total net revenues in first three quarters of fiscal 2023 |
808,938 |
358,653 |
67,608 |
1,235,199 |
|||||||||||
|
Total Net Revenues Growth |
4,677 |
22,063 |
(565 |
) |
26,175 |
||||||||||
|
Total Net Revenues Growth % |
0.6 |
% |
6.2 |
% |
-0.8 |
% |
2.1 |
% |
|||||||
|
Less: Impact of shop optimization program closures |
(463 |
) |
- |
- |
(463 |
) |
|||||||||
|
Less: Impact of Branded Sweet Treats exit |
(5,853 |
) |
- |
- |
(5,853 |
) |
|||||||||
|
Less: Impact of Insomnia Cookies divestiture |
(43,531 |
) |
- |
- |
(43,531 |
) |
|||||||||
|
Adjusted net revenues in first three quarters of fiscal 2023 |
759,091 |
358,653 |
67,608 |
1,185,352 |
|||||||||||
|
Adjusted net revenue growth |
54,524 |
22,063 |
(565 |
) |
76,022 |
||||||||||
|
Impact of acquisitions |
(6,228 |
) |
(1,108 |
) |
2,127 |
(5,209 |
) |
||||||||
|
Impact of foreign currency translation |
- |
1,338 |
- |
1,338 |
|||||||||||
|
Organic Revenue Growth |
$ |
48,296 |
$ |
22,293 |
$ |
1,562 |
$ |
72,151 |
|||||||
|
Organic Revenue Growth % |
6.4 |
% |
6.2 |
% |
2.3 |
% |
6.1 |
% |
|
Q3 2023 Organic Revenue - QTD (in thousands, except percentages) |
U.S. |
International |
Market Development |
Total Company |
|||||||||||
|
Total net revenues in third quarter of fiscal 2023 |
$ |
260,177 |
$ |
126,077 |
$ |
21,113 |
$ |
407,367 |
|||||||
|
Total net revenues in third quarter of fiscal 2022 |
246,830 |
107,585 |
23,107 |
377,522 |
|||||||||||
|
Total Net Revenues Growth |
13,347 |
18,492 |
(1,994 |
) |
29,845 |
||||||||||
|
Total Net Revenues Growth % |
5.4 |
% |
17.2 |
% |
-8.6 |
% |
7.9 |
% |
|||||||
|
Less: Impact of shop optimization program closures |
(3,096 |
) |
- |
- |
(3,096 |
) |
|||||||||
|
Less: Impact of Branded Sweet Treats exit |
(9,035 |
) |
- |
- |
(9,035 |
) |
|||||||||
|
Adjusted net revenues in third quarter of fiscal 2022 |
234,699 |
107,585 |
23,107 |
365,391 |
|||||||||||
|
Adjusted net revenue growth |
25,478 |
18,492 |
(1,994 |
) |
41,976 |
||||||||||
|
Impact of acquisitions |
(1,575 |
) |
- |
457 |
(1,118 |
) |
|||||||||
|
Impact of foreign currency translation |
- |
(5,912 |
) |
- |
(5,912 |
) |
|||||||||
|
Organic Revenue Growth |
$ |
23,903 |
$ |
12,580 |
$ |
(1,537 |
) |
$ |
34,946 |
||||||
|
Organic Revenue Growth % |
10.2 |
% |
11.7 |
% |
-6.7 |
% |
9.6 |
% |
|
Q3 2023 Organic Revenue - YTD (in thousands, except percentages) |
U.S. |
International |
Market Development |
Total Company |
|||||||||||
|
Total net revenues in first three quarters of fiscal 2023 |
$ |
808,938 |
$ |
358,653 |
$ |
67,608 |
$ |
1,235,199 |
|||||||
|
Total net revenues in first three quarters of fiscal 2022 |
739,414 |
322,636 |
63,249 |
1,125,299 |
|||||||||||
|
Total Net Revenues Growth |
69,524 |
36,017 |
4,359 |
109,900 |
|||||||||||
|
Total Net Revenues Growth % |
9.4 |
% |
11.2 |
% |
6.9 |
% |
9.8 |
% |
|||||||
|
Less: Impact of shop optimization program closures |
(9,613 |
) |
- |
- |
(9,613 |
) |
|||||||||
|
Less: Impact of Branded Sweet Treats exit |
(15,736 |
) |
- |
- |
(15,736 |
) |
|||||||||
|
Adjusted net revenues in first three quarters of fiscal 2022 |
714,065 |
322,636 |
63,249 |
1,099,950 |
|||||||||||
|
Adjusted net revenue growth |
94,873 |
36,017 |
4,359 |
135,249 |
|||||||||||
|
Impact of acquisitions |
(7,678 |
) |
- |
2,227 |
(5,451 |
) |
|||||||||
|
Impact of foreign currency translation |
- |
(118 |
) |
- |
(118 |
) |
|||||||||
|
Organic Revenue Growth |
$ |
87,195 |
$ |
35,899 |
$ |
6,586 |
$ |
129,680 |
|||||||
|
Organic Revenue Growth % |
12.2 |
% |
11.1 |
% |
10.4 |
% |
11.8 |
% |
|
Trailing Four Quarters Ended |
Fiscal Year Ended |
||||||||||
|
(in thousands, unless otherwise stated) |
September 29, |
December 31, |
January 1, |
||||||||
|
U.S.: |
|||||||||||
|
Revenues |
$ |
1,109,621 |
$ |
1,104,944 |
$ |
1,010,250 |
|||||
|
Non-Fresh Revenues (1) |
(3,857 |
) |
(9,416 |
) |
(38,380 |
) |
|||||
|
Fresh Revenues from Insomnia Cookies and Hubs without Spokes (2) |
(360,354 |
) |
(399,061 |
) |
(404,430 |
) |
|||||
|
Sales from Hubs with Spokes |
745,410 |
696,467 |
567,440 |
||||||||
|
Sales per Hub (millions) |
4.9 |
4.9 |
4.5 |
||||||||
|
International: |
|||||||||||
|
Sales from Hubs with Spokes (3) |
$ |
511,694 |
$ |
489,631 |
$ |
435,651 |
|||||
|
Sales per Hub (millions) (4) |
10.1 |
10.0 |
9.7 |
|
(1) |
Includes the exited Branded Sweet Treats business revenues as well as licensing royalties from customers for use of the Krispy Kreme brand. |
|
(2) |
Includes Insomnia Cookies revenues (through the date of the divestiture) and Fresh Revenues generated by Hubs without Spokes. |
|
(3) |
Total International net revenues is equal to Fresh Revenues from Hubs with Spokes for that business segment. |
|
(4) |
International Sales per Hub comparative data has been restated in constant currency based on current exchange rates. |
|
Krispy Kreme, Inc. |
|||||
|
Global Points of Access (Unaudited) |
|||||
|
Global Points of Access |
|||||
|
Quarter Ended |
Fiscal Year Ended |
||||
|
September 29, 2024 |
October 1, 2023 |
December 31, 2023 |
|||
|
U.S.: |
|||||
|
Hot Light Theater Shops |
236 |
229 |
229 |
||
|
Fresh Shops |
71 |
65 |
70 |
||
|
Cookie Bakeries (3) |
- |
249 |
267 |
||
|
DFD Doors (2) |
7,711 |
6,506 |
6,808 |
||
|
Total |
8,018 |
7,049 |
7,374 |
||
|
International: |
|||||
|
Hot Light Theater Shops |
48 |
45 |
44 |
||
|
Fresh Shops |
508 |
479 |
483 |
||
|
Carts, Food Trucks, and Other (1) |
17 |
16 |
16 |
||
|
DFD Doors |
4,867 |
3,588 |
3,977 |
||
|
Total |
5,440 |
4,128 |
4,520 |
||
|
Market Development: |
|||||
|
Hot Light Theater Shops |
110 |
113 |
116 |
||
|
Fresh Shops |
1,059 |
920 |
968 |
||
|
Carts, Food Trucks, and Other (1) |
30 |
29 |
30 |
||
|
DFD Doors |
1,154 |
1,155 |
1,139 |
||
|
Total |
2,353 |
2,217 |
2,253 |
||
|
Total Global Points of Access (as defined) |
15,811 |
13,394 |
14,147 |
||
|
Total Hot Light Theater Shops |
394 |
387 |
389 |
||
|
Total Fresh Shops |
1,638 |
1,464 |
1,521 |
||
|
Total Cookie Bakeries (3) |
- |
249 |
267 |
||
|
Total Shops |
2,032 |
2,100 |
2,177 |
||
|
Total Carts, Food Trucks, and Other |
47 |
45 |
46 |
||
|
Total DFD Doors |
13,732 |
11,249 |
11,924 |
||
|
Total Global Points of Access (as defined) |
15,811 |
13,394 |
14,147 |
|
(1) |
Carts and Food Trucks are non-producing, mobile (typically on wheels) facilities without walls or a door where product is received from a Hot Light Theater Shop or Doughnut Factory. Other includes a vending machine. Points of Access in this category are primarily found in international locations in airports, train stations, etc. |
|
(2) |
Includes over 160 McDonald's shops located in Louisville and Lexington, Kentucky and the surrounding area as of June 30, 2024. |
|
(3) |
Reflects the divestiture of Insomnia Cookies during the quarter ended September 29, 2024. |
|
Krispy Kreme, Inc. |
|||||
|
Global Hubs (Unaudited) |
|||||
|
Hubs |
|||||
|
Quarter Ended |
Fiscal Year Ended |
||||
|
September 29, 2024 |
October 1, 2023 |
December 31, 2023 |
|||
|
U.S.: |
|||||
|
Hot Light Theater Shops (1) |
230 |
222 |
220 |
||
|
Doughnut Factories |
6 |
4 |
4 |
||
|
Total |
236 |
226 |
224 |
||
|
Hubs with Spokes |
152 |
148 |
149 |
||
|
Hubs without Spokes |
84 |
78 |
75 |
||
|
International: |
|||||
|
Hot Light Theater Shops (1) |
39 |
36 |
36 |
||
|
Doughnut Factories |
14 |
14 |
14 |
||
|
Total |
53 |
50 |
50 |
||
|
Hubs with Spokes |
53 |
50 |
50 |
||
|
Market Development: |
|||||
|
Hot Light Theater Shops (1) |
108 |
109 |
112 |
||
|
Doughnut Factories |
26 |
23 |
23 |
||
|
Total |
134 |
132 |
135 |
||
|
Total Hubs |
423 |
408 |
409 |
|
(1) |
Includes only Hot Light Theater Shops and excludes Mini Theaters. A Mini Theater is a Spoke location that produces some doughnuts for itself and also receives doughnuts from another producing location. |
|
Krispy Kreme, Inc. |
|||||||
|
Net Debt and Leverage (Unaudited) |
|||||||
|
( in thousands, except leverage ratio ) |
|||||||
|
September 29, 2024 |
December 31, 2023 |
||||||
|
Current portion of long-term debt |
$ |
47,577 |
$ |
54,631 |
|||
|
Long-term debt, less current portion |
804,638 |
836,615 |
|||||
|
Total long-term debt, including debt issuance costs |
852,215 |
891,246 |
|||||
|
Add back: Debt issuance costs |
3,584 |
4,371 |
|||||
|
Total long-term debt, excluding debt issuance costs |
855,799 |
895,617 |
|||||
|
Less: Cash and cash equivalents |
(25,410 |
) |
(38,185 |
) |
|||
|
Net debt |
$ |
830,389 |
$ |
857,432 |
|||
|
Adjusted EBITDA - trailing four quarters |
211,754 |
211,624 |
|||||
|
Net leverage ratio |
3.9 |
x |
4.1 |
x |
Investor Relations
[email protected]
Financial Media
Edelman Smithfield for Krispy Kreme, Inc.
Ashley Firlan & Ashna Vasa
[email protected]
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