Freshpet, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Freshpet, Inc. filed its 2023 10-K, reporting $482.77M in assets and $480.51M in debt, with a net income of $48.05M.</b>

AI Summary

Freshpet, Inc. (FRPT) filed a Annual Report (10-K) with the SEC on February 26, 2024. Freshpet, Inc. reported total assets of $482.77 million as of December 31, 2023. The company's total debt was $480.51 million as of December 31, 2023. Net income for the fiscal year ending December 31, 2023, was $48.05 million. Earnings per share (EPS) for the fiscal year ending December 31, 2023, were $0.48. The company's operating margin was 6.1% for the fiscal year ending December 31, 2023.

Why It Matters

For investors and stakeholders tracking Freshpet, Inc., this filing contains several important signals. The filing provides a comprehensive overview of Freshpet's financial performance and position for the fiscal year 2023, including key financial metrics and risk factors. Investors can use this 10-K to assess the company's financial health, profitability, and potential risks, aiding in investment decisions.

Risk Assessment

Risk Level: medium — Freshpet, Inc. shows moderate risk based on this filing. The company has a significant amount of debt ($480.51 million) relative to its total assets ($482.77 million), which could pose financial risks if not managed effectively.

Analyst Insight

Monitor Freshpet's debt levels and its ability to service its debt obligations in future filings.

Financial Highlights

debt To Equity

1.1

operating Margin

6.1%

total Assets

482,770,000

total Debt

480,510,000

net Income

48,051,000

eps

0.48

gross Margin

64.05%

Key Numbers

• 482,770,000 — Total Assets (As of December 31, 2023.)
• 480,510,000 — Total Debt (As of December 31, 2023.)
• 48,051,000 — Net Income (For the fiscal year ended December 31, 2023.)
• 0.48 — EPS (For the fiscal year ended December 31, 2023.)
• 6.1% — Operating Margin (For the fiscal year ended December 31, 2023.)
• 64.05% — Gross Margin (For the fiscal year ended December 31, 2023.)
• 1.1 — Debt-to-Equity Ratio (As of December 31, 2023.)

Key Players & Entities

• Freshpet, Inc. (company) — Filer of the 10-K report.
• 2023-12-31 (date) — Fiscal year end date for the reported period.
• 2024-02-26 (date) — Filing date of the 10-K.
• $482.77 million (dollar_amount) — Total assets as of December 31, 2023.
• $480.51 million (dollar_amount) — Total debt as of December 31, 2023.
• $48.05 million (dollar_amount) — Net income for the fiscal year ended December 31, 2023.
• $0.48 (dollar_amount) — Earnings per share for the fiscal year ended December 31, 2023.
• 6.1% (percentage) — Operating margin for the fiscal year ended December 31, 2023.

FAQ

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value per share FRPT NASDAQ Glo
• $52.0 billion — " "we" or "our") is disrupting the over $52.0 billion United States pet food industry by driv

Filing Documents

• frpt20231231_10k.htm (10-K) — 1554KB
• ex_607238.htm (EX-10.10) — 8KB
• ex_607239.htm (EX-21.1) — 6KB
• ex_607240.htm (EX-23.1) — 2KB
• ex_607241.htm (EX-31.1) — 9KB
• ex_607242.htm (EX-31.2) — 8KB
• ex_607243.htm (EX-32.1) — 5KB
• ex_607237.htm (EX-97.1) — 49KB
• chart2023.jpg (GRAPHIC) — 82KB
• chiller.jpg (GRAPHIC) — 315KB
• delifresh2024.jpg (GRAPHIC) — 37KB
• dogjoy.jpg (GRAPHIC) — 33KB
• dognation.jpg (GRAPHIC) — 35KB
• fp02.jpg (GRAPHIC) — 3KB
• fpsfamily2024.jpg (GRAPHIC) — 51KB
• hcfamily2024.jpg (GRAPHIC) — 41KB
• naturefamily2024.jpg (GRAPHIC) — 59KB
• springsprout2024.jpg (GRAPHIC) — 35KB
• vitalfamily2024.jpg (GRAPHIC) — 42KB
• 0001437749-24-005542.txt (&nbsp;) — 9440KB
• frpt-20231231.xsd (EX-101.SCH) — 68KB
• frpt-20231231_cal.xml (EX-101.CAL) — 63KB
• frpt-20231231_def.xml (EX-101.DEF) — 498KB
• frpt-20231231_lab.xml (EX-101.LAB) — 444KB
• frpt-20231231_pre.xml (EX-101.PRE) — 534KB
• frpt20231231_10k_htm.xml (XML) — 1013KB

Business

Business 4 Item 1A

Risk Factors

Risk Factors 12 Item 1B Unresolved Staff Comments 24 Item 1C Cybersecurity 24 Item 2

Properties

Properties 25 Item 3

Legal Proceedings

Legal Proceedings 25 Item 4 Mine Safety Disclosures 25 PART II Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 25 Item 6 [Reserved] Item 7

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Item 7A

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 40 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 41 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 67 Item 9A

Controls and Procedures

Controls and Procedures 67 Item 9B Other Information 68 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 68 PART III Item 10 Directors, Executive Officers and Corporate Governance 69 Item 11

Executive Compensation

Executive Compensation 69 Item 12

Security Ownership of Certain Beneficial Owners and Management and Relate Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Relate Stockholder Matters 69 Item 13 Certain Relationships and Related Transactions, and Director Independence 69 Item 14 Principal Accounting Fees and Services 69 PART IV Item 15 Exhibits and Financial Statement Schedules 70 Item 16 Form 10-K Summary 73

Forward-Looking Statements

Forward-Looking Statements This report contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this report are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "aim," "anticipate," "believe," "estimate," "expect," "forecast," "target," "outlook," "potential," "project," "projection," "plan," "intend," "seek," "may," "could," "would," "will," "should," "can," "can have," "likely," the negatives thereof and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. They appear in a number of places throughout this report and include statements regarding our intentions, beliefs or current expectations concerning, among other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which we operate. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected, including: our ability to meet our sustainability targets, goals, and commitments, including due to the impact of climate change; changes in global economic and financial market conditions generally, such as inflation and interest rate increases; the impact of various worldwide or macroeconomic events, such as the ongoing conflict between Russia and Ukraine and the current conflict in Israel and the Gaza Strip, on the U.S. and global economics, our employees, suppliers, customers and end consumers, which could adversely and materially impact our

BUSINESS

ITEM 1. BUSINESS Overview Freshpet, Inc. ("Freshpet," the "Company," "we" or "our") is disrupting the over $52.0 billion United States pet food industry by driving consumers to reassess conventional dog and cat food offerings that have remained essentially unchanged for decades. We position our brand to benefit from mainstream trends of growing pet humanization and consumer focus on health and wellness. We price our products to be accessible to the average consumer, providing us with broad demographic appeal and allowing us to penetrate multiple classes of retail, including grocery, mass, club, pet specialty, natural and digital. We have successfully expanded our network of Freshpet Fridges within leading blue-chip retail chains. The strength of our business model extends to our customers, who we believe find that Freshpet grows their pet category sales, drives higher traffic, increases shopper frequency and delivers category leading margins. As of December 31, 2023, our household penetration within the U.S. was approximately 11.5 million, with a target of 20 million households by 2027. Additionally, we believe that there are opportunities to expand our network into international markets as demonstrated by our recent initiatives in the U.K. market. Our Industry We primarily compete in the United States dog and cat food market. We believe pet food spending in North America will continue to increase at a similar rate as it has in the past. The pet food market has historically been resilient as consumers continue to spend on their pets even during economic downturns. We believe the following trends are driving growth in our industry: Pet ownership. There are currently approximately 86.9 million pet owning households in the United States, which represents approximately 66% of total households, and over 111.6 million dogs and cats in the United States, according to the American Pet Products Association. Pet humanization . According to Packaged Facts, 92-96% of

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View this 10-K filing on SEC EDGAR