THOMASVILLE, Ga., Nov. 8, 2017 /PRNewswire/ -- Flowers Foods, Inc. (NYSE: FLO), producer of Nature's Own, Wonder, Tastykake, Dave's Killer Bread, and other bakery foods, today reported financial results for the company's 12-week third quarter ended October 7, 2017.
Third Quarter Summary:
Compared to the prior year third quarter where applicable
- Sales increased 1.5% to $932.8 million. Excluding sales related to a divestiture, sales increased 2.1%.
- Diluted EPS decreased $0.35 to a loss of $0.16.
- Adjusted diluted EPS(1) increased 9.5% to $0.23.
- Net income decreased $73.8 million to a loss of $33.6 million.
- Adjusted net income(1) increased 9.7% to $48.3 million.
- Adjusted EBITDA(2) increased 9.1% to $112.4 million.
- Adjusted EBITDA(2) margin increased 80 basis points to 12.0% of sales.
(1) Adjusted for items affecting comparability. See reconciliations of non-GAAP measures in the financial statements following this release.
(2) Earnings before Interest, Taxes, Depreciation and Amortization, adjusted for certain items affecting comparability. See reconciliations of non-GAAP measures in the financial statements following this release.
"We are pleased with our results for the quarter, which reflect the strength of our brands, the dedication of our team and independent distributor partners, and the ongoing restructuring efforts under Project Centennial," said Allen Shiver, Flowers Foods president and CEO. "Strong demand for Dave's Killer Bread and outstanding execution and service in the marketplace drove growth in sales and market share during the quarter. Earnings were impacted by expected strategic charges that allow us to lower our cost structure and streamline our company, increase focus on our strongest brands, and improve our supply chain. Excluding these charges, our profitability in the third quarter was solid, driven by improved manufacturing efficiencies and enhanced cost discipline across the company. Through Project Centennial, we are making substantial progress and building momentum to achieve the underlying earnings potential of the business."
Mr. Shiver continued, "Our strategic objectives are on track, and the progress we are making is encouraging. We are capturing savings through organizational efficiencies and reduced spending on purchased goods and services. Our focus on productivity and continuous improvement is delivering improved efficiencies. We are streamlining our product assortment, reducing complexity in the marketplace and in our bakeries. With our increased focus on innovation and product differentiation, our team is developing a robust innovation pipeline to drive brand growth. I am confident the changes we are making will build shareholder value over the long term."