National Beverage Corp. Q1 Earnings Rise on Strong EPS

TL;DR

NatBev Q1 sales flat, EPS up to $0.61 from $0.53. Buy?

AI Summary

National Beverage Corp. filed its 10-Q for the period ending July 27, 2024. The company reported net sales of $101.985 million for the quarter, compared to $101.943 million in the same period last year. Earnings per share were $0.61, an increase from $0.53 in the prior year's quarter. The filing covers the first quarter of fiscal year 2025.

Why It Matters

This filing provides investors with a look at National Beverage Corp.'s financial performance, indicating a slight increase in sales and a more significant jump in profitability, which could influence stock valuation.

Risk Assessment

Risk Level: medium — The company operates in a competitive beverage market, and its financial results are subject to consumer demand and input cost fluctuations.

Key Numbers

• $101.985M — Net Sales (For the quarter ended July 27, 2024, showing slight growth.)
• $0.61 — EPS (For the quarter ended July 27, 2024, indicating improved profitability.)
• $0.53 — EPS (For the prior year quarter, used for comparison.)

Key Players & Entities

• National Beverage Corp. (company) — Filer of the 10-Q
• 20240727 (date) — End of reporting period
• $101.985 million (dollar_amount) — Net sales for the quarter ending July 27, 2024
• $101.943 million (dollar_amount) — Net sales for the comparable prior year quarter
• $0.61 (dollar_amount) — Earnings per share for the quarter ending July 27, 2024
• $0.53 (dollar_amount) — Earnings per share for the comparable prior year quarter

FAQ

Key Financial Figures

• $329.5 million — uarter of fiscal 2025 increased 1.6% to $329.5 million compared to $324.2 million for the firs
• $324.2 million — ased 1.6% to $329.5 million compared to $324.2 million for the first quarter of fiscal 2024. T
• $122.4 million — rst quarter of fiscal 2025 increased to $122.4 million compared to $114.5 million for the firs
• $114.5 million — increased to $122.4 million compared to $114.5 million for the first quarter of fiscal 2024. T
• $1.5 million — first quarter of fiscal 2025 increased $1.5 million to $52.9 million from $51.4 million for
• $52.9 million — f fiscal 2025 increased $1.5 million to $52.9 million from $51.4 million for the first quarte
• $51.4 million — ased $1.5 million to $52.9 million from $51.4 million for the first quarter of fiscal 2024. T
• $4.3 million — income, net includes interest income of $4.3 million for the first quarter of fiscal 2025 an
• $1.8 million — or the first quarter of fiscal 2025 and $1.8 million for the first quarter of fiscal 2024. T
• $150 m — t Facilities and Loan Facility totaling $150 million, under which no borrowings were o
• $2.2 million — hich no borrowings were outstanding and $2.2 million was reserved for standby letters of cre
• $250.0 million — The Company's cash position decreased $250.0 million for the first quarter of fiscal 2025 co
• $64.7 million — fiscal 2025 compared to an increase of $64.7 million for the first quarter of fiscal 2024 pr
• $304.1 million — ily due to the special cash dividend of $304.1 million paid on July 24, 2024. 13 Table of Co
• $57.5 million — or the first quarter of fiscal 2025 was $57.5 million compared to $70.1 million for the first

Filing Documents

• fizz20240727_10q.htm (10-Q) — 460KB
• ex_719911.htm (EX-31.1) — 12KB
• ex_719912.htm (EX-31.2) — 12KB
• ex_719913.htm (EX-32.1) — 4KB
• ex_719914.htm (EX-32.2) — 5KB
• 0001437749-24-028554.txt ( ) — 2688KB
• fizz-20240727.xsd (EX-101.SCH) — 23KB
• fizz-20240727_cal.xml (EX-101.CAL) — 38KB
• fizz-20240727_def.xml (EX-101.DEF) — 174KB
• fizz-20240727_lab.xml (EX-101.LAB) — 187KB
• fizz-20240727_pre.xml (EX-101.PRE) — 205KB
• fizz20240727_10q_htm.xml (XML) — 212KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) Page Condensed Consolidated Balance Sheets as of July 27, 2024 and April 27, 2024 3 Condensed Consolidated Statements of Income for the Three Months Ended July 27, 2024 and July 29, 2023 4 Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended July 27, 2024 and July 29, 2023 5 Condensed Consolidated Statements of Shareholders' Equity for the Three Months Ended July 27, 2024 and July 29, 2023 6 Condensed Consolidated Statements of Cash Flows for the Three Months Ended July 27, 2024 and July 29, 2023 7 Notes to Condensed Consolidated Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 12

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 14

Controls and Procedures

Item 4. Controls and Procedures 14

- OTHER INFORMATION

PART II - OTHER INFORMATION

Risk Factors

Item 1A. Risk Factors 16

Exhibits

Item 6. Exhibits 16 Signature 17 2 Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS NATIONAL BEVERAGE CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands, except share data) July 27, April 27, 2024 2024 Assets Current assets: Cash and cash equivalents $ 77,040 $ 327,047 Trade receivables, net 116,029 102,837 Inventories 90,629 84,603 Prepaid and other assets 9,516 22,385 Total current assets 293,214 536,872 Property, plant and equipment, net 158,446 159,730 Operating lease right-of-use assets 50,627 53,498 Goodwill 13,145 13,145 Intangible assets 1,615 1,615 Other assets 5,525 5,293 Total assets $ 522,572 $ 770,153 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 73,894 $ 78,283 Accrued liabilities 49,767 46,565 Operating lease liabilities 12,821 13,079 Income taxes payable 11,000 - Total current liabilities 147,482 137,927 Deferred income taxes, net 21,059 23,247 Operating lease liabilities 39,110 41,688 Other liabilities 8,325 7,779 Total liabilities 215,976 210,641 Commitments and contingencies Shareholders' equity: Preferred stock, $ 1 par value - 1,000,000 shares authorized Series C - 150,000 shares issued 150 150 Common stock, $ .01 par value - 200,000,000 shares authorized; 101,985,358 and 101,942,658 shares issued, respectively 1,020 1,019 Additional paid-in capital 43,092 42,588 Retained earnings 287,709 535,077 Accumulated other comprehensive (loss) income ( 1,142 ) 4,911 Treasury stock - at cost: Series C preferred stock - 150,000 shares ( 5,100 ) ( 5,100 ) Common stock - 8,374,112 shares ( 19,133 ) ( 19,133 ) Total shareholders' equity 306,596 559,512 Total liabilities and shareholders' equity $ 522,572 $ 770,153 See accompanying Notes to Condensed Consolidated Financial Statements. 3 Table of Contents NATIONAL BEVERAGE CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In thousands, except per share amo

MANAGEMENT ' S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT ' S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OVERVIEW National Beverage Corp. innovatively refreshes America with a distinctive portfolio of sparkling waters, juices, energy drinks (Power+ Brands) and, to a lesser extent, carbonated soft drinks. We believe our creative product designs, innovative packaging and imaginative flavors, along with our corporate culture and philosophy, make National Beverage unique as a stand-alone entity in the beverage industry. The majority of our brands are geared to the active and health-conscious consumer including sparkling waters, energy drinks and juices. Our portfolio of Power+ Brands includes LaCroix, LaCroix Crate, and LaCroix NiCola sparkling water beverages; Clear Fruit non-carbonated water beverages enhanced with fruit flavor; Rip It energy drinks and shots; and Everfresh, Everfresh Premier Varietals and Mr. Pure 100% juice and juice-based beverages. Additionally, we produce and distribute carbonated soft drinks including Shasta and Faygo, iconic brands whose consumer loyalty spans more than 135 years. Our strategy seeks the profitable growth of our products by (i) developing healthier beverages in response to the global shift in consumer buying habits and tailoring our beverage portfolio to the preferences of a diverse mix of crossover consumers' – a growing group desiring a healthier alternative to artificially sweetened and high-caloric beverages; (ii) emphasizing unique flavor development and variety throughout our brands that appeal to multiple demographic groups; (iii) maintaining points of difference through innovative marketing, packaging and consumer engagement and (iv) responding faster and more creatively to changing consumer trends than larger competitors who are burdened by legacy production and distribution complexity and costs. Presently, our primary market focus is the United States and Canada. Certain of our beverages are also distributed on a limited

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK There have been no material changes in market risks from those reported in our Annual Report on Form 10-K for the fiscal year ended April 27, 2024.

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of the Company's management, including our Chief Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our "disclosure controls and procedures" (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934). As previously disclosed in the Form 10-K for the year ended April 27, 2024, management identified a material weakness in our internal financial reporting controls over the review of the Consolidated Statements of Cash Flows at January 27, 2024 and previous periods, including operating lease disclosures and presentation. The controls did not operate at a level precise enough t

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View this 10-Q filing on SEC EDGAR