KANSAS CITY, Mo.--(BUSINESS WIRE)--Hostess Brands, Inc. (“Hostess” or the “Company”), reported its financial results for the fourth quarter and full year ended December 31, 2017.
Fourth Quarter 2017 Summary (Compared to Pro Forma Combined Fourth Quarter 2016)1:
- Net revenue increased 9.7% to $196.2 million, representing the Company's best organic growth rate for the year. The Company's strong performance was led by the introduction of the Hostess Bakery PetitesTM, a premium snacking platform made with no artificial flavors or colors, and no high fructose corn syrup, which contributed 3.1% of the net revenue increase.
- Net income was $189.6 million (includes $163.1 million of one-time gains relating to the recently enacted tax law referred to as "Tax Reform"), compared to $22.0 million. Diluted EPS was $1.74 per share compared to $0.14 per share.
- Adjusted EPS increased 13.3% to $0.17 per share.
- Adjusted EBITDA increased 9.4% to $57.8 million, or 29.5% of net revenue.
- Point of sale increased 4.3%. Point of sale for the top seven brands increased 8.2% (which comprise 74% of total net revenue).
Full 2017 Summary (Compared to Pro Forma Combined Full Year 2016)1:
- Net revenue increased 6.7% to $776.2 million led by current year product innovations of $62.5 million.
- Net income was $258.1 million (includes $163.1 million of one-time gains relating to Tax Reform) compared to $82.4 million. Diluted EPS was $2.13 per share compared to $0.54 per share.
- Adjusted EPS increased 5.0% to $0.63 per share.
- Adjusted EBITDA increased 6.9% to $230.2 million, or 29.7% of net revenue.
- Hostess' year-to-date market share through December 30, 2017 was 17.2%, increasing 72 basis points from the prior year.
- Cash and cash equivalents at December 31, 2017 of $135.7 million with a leverage ratio of 3.73x both driven by operating cash flows of $163.7 million for the year.
“We are pleased with our strong finish to the year,” commented Bill Toler, President and Chief Executive Officer of Hostess. “We were able to capitalize on the momentum provided by our robust product innovation and continued distribution gains to increase our market share. We are optimistic about the continued growth opportunity from our product innovation, including our Hostess Bakery PetitesTM platform and the new breakfast opportunities from our acquisition of the Big Texas® and Cloverhill® brands.”
