(State or Other Jurisdiction of Incorporation) | (IRS Employer Identification No.) | |||||||||||||
(Address of Principal Executive Offices) (Zip Code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | ||||||||||||||
Emerging growth company | ||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ |
Exhibit Number | Exhibit Description | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL) |
TreeHouse Foods, Inc. | ||||||||||||||
Date: | February 16, 2024 | By: | /s/ Kristy N. Waterman | |||||||||||
Kristy N. Waterman | ||||||||||||||
Executive Vice President, Chief Human Resources Officer, General Counsel, and Corporate Secretary |
Three Months | Twelve Months | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||
Pricing | 0.1 | % | 7.3 | % | ||||||||||
Volume/mix impacted by supply chain disruption | (4.2) | (1.7) | ||||||||||||
Volume/mix | (3.9) | (3.4) | ||||||||||||
Total change in organic net sales1 | (8.0) | % | 2.2 | % | ||||||||||
Volume/mix related to acquisitions | 3.2 | 2.1 | ||||||||||||
Foreign currency | — | (0.2) | ||||||||||||
Total change in net sales | (4.8) | % | 4.1 | % |
December 31, 2023 | December 31, 2022 | |||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 320.3 | $ | 43.0 | ||||||||||
Receivables, net of allowance for credit losses of $0.4 in both 2023 and 2022 | 175.6 | 158.8 | ||||||||||||
Inventories | 534.0 | 554.0 | ||||||||||||
Prepaid expenses and other current assets | 24.9 | 23.2 | ||||||||||||
Assets of discontinued operations | — | 60.4 | ||||||||||||
Total current assets | 1,054.8 | 839.4 | ||||||||||||
Property, plant, and equipment, net | 737.6 | 641.6 | ||||||||||||
Operating lease right-of-use assets | 193.0 | 184.4 | ||||||||||||
Goodwill | 1,824.7 | 1,817.6 | ||||||||||||
Intangible assets, net | 257.4 | 296.0 | ||||||||||||
Note receivable, net of allowance for credit losses of $0.0 in both 2023 and 2022 | — | 427.0 | ||||||||||||
Other assets, net | 39.1 | 47.9 | ||||||||||||
Total assets | $ | 4,106.6 | $ | 4,253.9 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | 534.9 | $ | 618.7 | ||||||||||
Accrued expenses | 169.0 | 208.5 | ||||||||||||
Current portion of long-term debt | 0.4 | 0.6 | ||||||||||||
Total current liabilities | 704.3 | 827.8 | ||||||||||||
Long-term debt | 1,396.0 | 1,394.0 | ||||||||||||
Operating lease liabilities | 165.0 | 159.1 | ||||||||||||
Deferred income taxes | 111.4 | 108.7 | ||||||||||||
Other long-term liabilities | 65.1 | 77.3 | ||||||||||||
Total liabilities | 2,441.8 | 2,566.9 | ||||||||||||
Commitments and contingencies | ||||||||||||||
Stockholders’ equity: | ||||||||||||||
Preferred stock, par value $0.01 per share, 10.0 shares authorized, none issued | — | — | ||||||||||||
Common stock, par value $0.01 per share, 90.0 shares authorized, 54.1 and 56.1 shares outstanding as of December 31, 2023 and 2022, respectively | 0.6 | 0.6 | ||||||||||||
Treasury stock | (234.2) | (133.3) | ||||||||||||
Additional paid-in capital | 2,223.4 | 2,205.4 | ||||||||||||
Accumulated deficit | (248.9) | (302.0) | ||||||||||||
Accumulated other comprehensive loss | (76.1) | (83.7) | ||||||||||||
Total stockholders’ equity | 1,664.8 | 1,687.0 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 4,106.6 | $ | 4,253.9 |
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Net sales | $ | 910.8 | $ | 956.7 | $ | 3,431.6 | $ | 3,297.1 | ||||||||||||||||||
Cost of sales | 759.0 | 781.7 | 2,855.5 | 2,774.7 | ||||||||||||||||||||||
Gross profit | 151.8 | 175.0 | 576.1 | 522.4 | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Selling and distribution | 42.7 | 50.9 | 171.6 | 217.8 | ||||||||||||||||||||||
General and administrative | 49.3 | 46.0 | 204.1 | 206.5 | ||||||||||||||||||||||
Amortization expense | 12.1 | 12.2 | 48.2 | 47.9 | ||||||||||||||||||||||
Other operating expense (income), net | 5.6 | (3.6) | 5.3 | 62.8 | ||||||||||||||||||||||
Total operating expenses | 109.7 | 105.5 | 429.2 | 535.0 | ||||||||||||||||||||||
Operating income (loss) | 42.1 | 69.5 | 146.9 | (12.6) | ||||||||||||||||||||||
Other expense (income): | ||||||||||||||||||||||||||
Interest expense | 16.9 | 18.7 | 74.8 | 69.9 | ||||||||||||||||||||||
Interest income | (3.9) | (11.1) | (40.1) | (15.5) | ||||||||||||||||||||||
Loss on extinguishment of debt | — | 4.5 | — | 4.5 | ||||||||||||||||||||||
(Gain) loss on foreign currency exchange | (2.1) | (1.3) | (1.4) | 1.7 | ||||||||||||||||||||||
Other expense (income), net | 20.4 | 6.1 | 30.2 | (74.3) | ||||||||||||||||||||||
Total other expense (income) | 31.3 | 16.9 | 63.5 | (13.7) | ||||||||||||||||||||||
Income before income taxes | 10.8 | 52.6 | 83.4 | 1.1 | ||||||||||||||||||||||
Income tax expense | 4.4 | 12.9 | 24.4 | 10.3 | ||||||||||||||||||||||
Net income (loss) from continuing operations | 6.4 | 39.7 | 59.0 | (9.2) | ||||||||||||||||||||||
Net income (loss) from discontinued operations | 1.1 | (63.1) | (5.9) | (137.1) | ||||||||||||||||||||||
Net income (loss) | $ | 7.5 | $ | (23.4) | $ | 53.1 | $ | (146.3) | ||||||||||||||||||
Earnings (loss) per common share - basic: | ||||||||||||||||||||||||||
Continuing operations | $ | 0.12 | $ | 0.71 | $ | 1.06 | $ | (0.16) | ||||||||||||||||||
Discontinued operations | 0.02 | (1.12) | (0.11) | (2.45) | ||||||||||||||||||||||
Earnings (loss) per share basic (1) | $ | 0.14 | $ | (0.42) | $ | 0.95 | $ | (2.61) | ||||||||||||||||||
Earnings (loss) per common share - diluted: | ||||||||||||||||||||||||||
Continuing operations | $ | 0.12 | $ | 0.70 | $ | 1.05 | $ | (0.16) | ||||||||||||||||||
Discontinued operations | 0.02 | (1.11) | (0.10) | (2.45) | ||||||||||||||||||||||
Earnings (loss) per share diluted (1) | $ | 0.14 | $ | (0.41) | $ | 0.94 | $ | (2.61) | ||||||||||||||||||
Weighted average common shares: | ||||||||||||||||||||||||||
Basic | 54.8 | 56.1 | 55.8 | 56.0 | ||||||||||||||||||||||
Diluted | 55.3 | 56.7 | 56.4 | 56.0 | ||||||||||||||||||||||
Year Ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 53.1 | $ | (146.3) | |||||||
Net (loss) income from discontinued operations | (5.9) | (137.1) | |||||||||
Net income (loss) from continuing operations | 59.0 | (9.2) | |||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | 141.9 | 139.6 | |||||||||
Stock-based compensation | 24.8 | 19.8 | |||||||||
Loss on extinguishment of debt | — | 4.5 | |||||||||
Unrealized loss (gain) on derivative contracts | 15.1 | (75.1) | |||||||||
Deferred income taxes | 3.5 | 9.1 | |||||||||
Deferred TSA income | (12.3) | (22.7) | |||||||||
Other, net | 8.9 | 6.4 | |||||||||
Changes in operating assets and liabilities, net of acquisitions and divestitures: | |||||||||||
Receivables | (15.2) | (8.9) | |||||||||
Inventories | 51.6 | (128.3) | |||||||||
Prepaid expenses and other assets | 5.3 | 43.6 | |||||||||
Accounts payable | (82.4) | (14.8) | |||||||||
Accrued expenses and other liabilities | (42.9) | (31.7) | |||||||||
Net cash provided by (used in) operating activities - continuing operations | 157.3 | (67.7) | |||||||||
Net cash used in operating activities - discontinued operations | — | (83.0) | |||||||||
Net cash provided by (used in) operating activities | 157.3 | (150.7) | |||||||||
Cash flows from investing activities: | |||||||||||
Additions to property, plant, and equipment | (137.0) | (85.8) | |||||||||
Additions to intangible assets | (3.8) | (7.7) | |||||||||
Proceeds from sale of fixed assets | — | 4.8 | |||||||||
Acquisitions, net of cash acquired | (100.6) | — | |||||||||
Net cash used in investing activities - continuing operations | (241.4) | (88.7) | |||||||||
Net cash provided by investing activities - discontinued operations | 468.1 | 500.7 | |||||||||
Net cash provided by investing activities | 226.7 | 412.0 | |||||||||
Cash flows from financing activities: | |||||||||||
Borrowings under Revolving Credit Facility | 2,935.3 | 855.9 | |||||||||
Payments under Revolving Credit Facility | (2,935.3) | (855.9) | |||||||||
Payments on finance lease obligations | (0.6) | (1.1) | |||||||||
Payment of deferred financing costs | — | (2.7) | |||||||||
Payments on Term Loans | — | (514.3) | |||||||||
Repurchases of common stock | (100.0) | — | |||||||||
Receipts related to stock-based award activities | — | 0.4 | |||||||||
Payments related to stock-based award activities | (6.9) | (4.7) | |||||||||
Net cash used in financing activities - continuing operations | (107.5) | (522.4) | |||||||||
Net cash used in financing activities - discontinued operations | — | (0.3) | |||||||||
Net cash used in financing activities | (107.5) | (522.7) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 0.8 | (4.2) | |||||||||
Net increase (decrease) in cash and cash equivalents | 277.3 | (265.6) | |||||||||
Add: Cash and cash equivalents of discontinued operations, beginning of period | — | 4.1 | |||||||||
Cash and cash equivalents, beginning of year | 43.0 | 304.5 | |||||||||
Cash and cash equivalents, end of year | $ | 320.3 | $ | 43.0 |
Year Ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Supplemental cash flow disclosures: | |||||||||||
Interest paid | $ | 93.7 | $ | 68.1 | |||||||
Net income taxes paid (refunded) | 19.3 | (3.0) | |||||||||
Non-cash investing activities: | |||||||||||
Accrued purchase of property and equipment | $ | 17.1 | $ | 20.3 | |||||||
Accrued other intangible assets | 0.3 | 1.1 | |||||||||
Right-of-use assets obtained in exchange for lease obligations | 45.1 | 86.8 | |||||||||
Note receivable issued in exchange for the sale of business net assets | — | 425.9 | |||||||||
Note receivable increase from paid in kind interest | 3.2 | 1.1 | |||||||||
Note receivable purchase price adjustment reduction | (5.1) | — | |||||||||
Deferred payment from acquisition of seasoned pretzel capability | 4.0 | — |
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||
Net income (loss) from continuing operations (GAAP) | $ | 6.4 | $ | 39.7 | $ | 59.0 | $ | (9.2) | |||||||||||||||||||||
Interest expense | 16.9 | 18.7 | 74.8 | 69.9 | |||||||||||||||||||||||||
Interest income | (3.9) | (11.1) | (40.1) | (15.5) | |||||||||||||||||||||||||
Income tax expense | 4.4 | 12.9 | 24.4 | 10.3 | |||||||||||||||||||||||||
Depreciation and amortization | 36.2 | 36.0 | 141.9 | 139.6 | |||||||||||||||||||||||||
EBITDA from continuing operations (Non-GAAP) | 60.0 | 96.2 | 260.0 | 195.1 | |||||||||||||||||||||||||
Growth, reinvestment, and restructuring programs, excluding accelerated depreciation(1) | 12.2 | 18.1 | 46.1 | 84.5 | |||||||||||||||||||||||||
Product recall and related costs(2) | 18.0 | — | 29.2 | — | |||||||||||||||||||||||||
Divestiture, acquisition, integration, and related costs(3) | 3.2 | (4.6) | 16.7 | 13.8 | |||||||||||||||||||||||||
Mark-to-market adjustments(4) | 16.6 | 4.3 | 15.1 | (75.1) | |||||||||||||||||||||||||
Shareholder activism(5) | — | 0.6 | 0.3 | 2.7 | |||||||||||||||||||||||||
Tax indemnification(6) | (0.1) | — | 0.2 | — | |||||||||||||||||||||||||
Foreign currency (gain) loss on remeasurement of intercompany notes(7) | (1.5) | (0.6) | (1.7) | 0.8 | |||||||||||||||||||||||||
Central services and conveyed employee costs(8) | — | — | — | 65.0 | |||||||||||||||||||||||||
Loss on extinguishment of debt(9) | — | 4.5 | — | 4.5 | |||||||||||||||||||||||||
Litigation matter(10) | — | — | — | 0.4 | |||||||||||||||||||||||||
Adjusted EBITDA from continuing operations (Non-GAAP) | $ | 108.4 | $ | 118.5 | $ | 365.9 | $ | 291.7 | |||||||||||||||||||||
% of net sales | |||||||||||||||||||||||||||||
Net income (loss) from continuing operations margin | 0.7 | % | 4.1 | % | 1.7 | % | (0.3) | % | |||||||||||||||||||||
EBITDA from continuing operations margin | 6.6 | % | 10.1 | % | 7.6 | % | 5.9 | % | |||||||||||||||||||||
Adjusted EBITDA from continuing operations margin | 11.9 | % | 12.4 | % | 10.7 | % | 8.8 | % |
(1) | The Company’s growth, reinvestment, and restructuring activities are part of an enterprise-wide transformation to improve long-term growth and profitability for the Company. For the three and twelve months ended December 31, 2022, the Company recognized $0.6 million of accelerated depreciation within the Company's growth, reinvestment, and restructuring activities as depreciation expense. | ||||
(2) | On September 22, 2023, the Company initiated a voluntary recall of certain broth products produced at its Cambridge, Maryland facility. These broth products may have the potential for non-pathogenic microbial contamination due to lack of sterility assurance. The Company recognized costs of $18.3 million and $27.0 million for the three and twelve months ended December 31, 2023, respectively. For the three months ended December 31, 2023, these costs include non-cash plant shutdown charges of $9.5 million, non-cash inventory write-offs of $8.8 million, and other costs which include a $(1.7) million adjustment to product return reserves and $1.7 million of third-party costs. For the twelve months ended December 31, 2023, these costs include non-cash plant shutdown charges of $12.5 million, non-cash inventory write-offs of $10.4 million, and other costs, including product returns and logistics, of $4.1 million. Additionally, the Company recognized inventory write-off adjustments of $(0.3) million and $2.2 million for a packaging quality matter for the three and twelve months ended December 31, 2023, respectively. | ||||
(3) | Divestiture, acquisition, integration, and related costs represent costs associated with completed and potential divestitures, completed and potential acquisitions, and the related integration of the acquisitions. During the three and twelve months ended December 31, 2022, divestiture related activities included consulting and legal fees as well as additional information technology ("IT") costs associated with the set-up of the Transition Services Agreement ("TSA"). The Company recognized deferred income of $9.0 million related to the TSA Credit taken to cover the initial TSA set-up, which included IT migration costs, during the three and twelve months ended December 31, 2022. | ||||
(4) | The Company's derivative contracts are marked-to-market each period. The non-cash unrealized changes in fair value recognized in Other expense (income), net, net within the Consolidated Statements of Operations are treated as Non-GAAP adjustments. As the contracts are settled, realized gains and losses are recognized, and only the mark-to-market impacts are treated as Non-GAAP adjustments. | ||||
(5) | The Company incurred fees related to shareholder activism which include directly applicable third-party advisory and professional service fees. | ||||
(6) | Tax indemnification represents the non-cash write off of indemnification assets that were recorded in connection with acquisitions from prior years. These write-offs arose as a result of the related uncertain tax position being released due to the statute of limitation lapse or settlement with taxing authorities. | ||||
(7) | The Company has foreign currency denominated intercompany loans and incurred foreign currency gains/losses to re-measure the loans at quarter end. These amounts are non-cash and the loans are eliminated in consolidation. | ||||
(8) | As a result of the sale of a significant portion of the Meal Preparation business in the fourth quarter of 2022, the Company identified two items affecting comparability – 1) central service costs and 2) conveyed employee costs. 1) The Company has historically provided central services to the Meal Preparation business including, but not limited to, IT and financial shared services, procurement and order processing, customer service, warehousing, logistics, and customs. These costs were historically incurred by TreeHouse and include employee and non-employee expenses to support the services. For the twelve months ended December 31, 2022, central service costs were approximately $40.2 million. 2) Conveyed employee costs represent compensation costs for employees that were not historically dedicated to the sold business and transferred to the buyer after the sale. For the twelve months ended December 31, 2022, conveyed employee costs were approximately $24.8 million. | ||||
(9) | For the three and twelve months ended December 31, 2022, the Company incurred a loss on extinguishment of debt totaling $4.5 million representing the write-off of deferred financing costs in connection with the debt prepayment and revolving credit commitment reduction in October 2022. | ||||
(10) | During the twelve months ended December 31, 2022, the Company recognized $0.4 million incremental expense for the settlement payment of the $9.0 million accrual related to a litigation matter challenging wage and hour practices at three former manufacturing facilities in California. |
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Net sales | $ | 910.8 | $ | 956.7 | $ | 3,431.6 | $ | 3,297.1 | ||||||||||||||||||
Product recall and related costs(2) | (1.7) | — | 1.3 | — | ||||||||||||||||||||||
Adjusted net sales | $ | 909.1 | $ | 956.7 | $ | 3,432.9 | $ | 3,297.1 |
Three Months Ended December 31, 2023 | ||||||||||||||||||||||||||||||||||||||
Gross profit | Total operating expenses | Operating income | Total other expense | Income tax expense | Net income from continuing operations | |||||||||||||||||||||||||||||||||
As reported (GAAP) | $ | 151.8 | $ | 109.7 | $ | 42.1 | $ | 31.3 | $ | 4.4 | $ | 6.4 | ||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||
Growth, reinvestment, and restructuring programs, including accelerated depreciation(1) | — | (12.2) | 12.2 | — | — | 12.2 | ||||||||||||||||||||||||||||||||
Product recall and related costs(2) | 18.0 | — | 18.0 | — | — | 18.0 | ||||||||||||||||||||||||||||||||
Divestiture, acquisition, integration, and related costs(3) | (0.2) | (3.4) | 3.2 | — | — | 3.2 | ||||||||||||||||||||||||||||||||
Mark-to-market adjustments(4) | — | — | — | (16.6) | — | 16.6 | ||||||||||||||||||||||||||||||||
Tax indemnification(6) | — | — | — | 0.1 | — | (0.1) | ||||||||||||||||||||||||||||||||
Foreign currency gain on remeasurement of intercompany notes(7) | — | — | — | 1.5 | — | (1.5) | ||||||||||||||||||||||||||||||||
Taxes on adjusting items | — | — | — | — | 12.0 | (12.0) | ||||||||||||||||||||||||||||||||
As adjusted (Non-GAAP) | $ | 169.6 | $ | 94.1 | $ | 75.5 | $ | 16.3 | $ | 16.4 | $ | 42.8 | ||||||||||||||||||||||||||
As reported (% of net sales) | 16.7 | % | 12.0 | % | 4.6 | % | 3.4 | % | 0.5 | % | 0.7 | % | ||||||||||||||||||||||||||
As adjusted (% of net sales) | 18.6 | % | 10.3 | % | 8.3 | % | 1.8 | % | 1.8 | % | 4.7 | % | ||||||||||||||||||||||||||
Earnings per share from continuing operations: | ||||||||||||||||||||||||||||||||||||||
Diluted | $ | 0.12 | ||||||||||||||||||||||||||||||||||||
Adjusted diluted | $ | 0.77 | ||||||||||||||||||||||||||||||||||||
Weighted average common shares: | ||||||||||||||||||||||||||||||||||||||
Diluted for net income from continuing operations | 55.3 | |||||||||||||||||||||||||||||||||||||
Diluted for adjusted net income from continuing operations | 55.3 |
Three Months Ended December 31, 2022 | ||||||||||||||||||||||||||||||||||||||
Gross profit | Total operating expenses | Operating income | Total other expense | Income tax expense | Net income from continuing operations | |||||||||||||||||||||||||||||||||
As reported (GAAP) | $ | 175.0 | $ | 105.5 | $ | 69.5 | $ | 16.9 | $ | 12.9 | $ | 39.7 | ||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||
Growth, reinvestment, and restructuring programs, including accelerated depreciation(1) | 0.5 | (18.2) | 18.7 | — | — | 18.7 | ||||||||||||||||||||||||||||||||
Divestiture, acquisition, integration, and related costs(3) | — | 4.6 | (4.6) | — | — | (4.6) | ||||||||||||||||||||||||||||||||
Mark-to-market adjustments(4) | — | — | — | (4.3) | — | 4.3 | ||||||||||||||||||||||||||||||||
Shareholder activism(5) | — | (0.6) | 0.6 | — | — | 0.6 | ||||||||||||||||||||||||||||||||
Foreign currency gain on remeasurement of intercompany notes(7) | — | — | — | 0.6 | — | (0.6) | ||||||||||||||||||||||||||||||||
Loss on extinguishment of debt(9) | — | — | — | (4.5) | — | 4.5 | ||||||||||||||||||||||||||||||||
Taxes on adjusting items | — | — | — | — | 7.5 | (7.5) | ||||||||||||||||||||||||||||||||
As adjusted (Non-GAAP) | $ | 175.5 | $ | 91.3 | $ | 84.2 | $ | 8.7 | $ | 20.4 | $ | 55.1 | ||||||||||||||||||||||||||
As reported (% of net sales) | 18.3 | % | 11.0 | % | 7.3 | % | 1.8 | % | 1.3 | % | 4.1 | % | ||||||||||||||||||||||||||
As adjusted (% of net sales) | 18.3 | % | 9.5 | % | 8.8 | % | 0.9 | % | 2.1 | % | 5.8 | % | ||||||||||||||||||||||||||
Earnings per share from continuing operations: | ||||||||||||||||||||||||||||||||||||||
Diluted | $ | 0.70 | ||||||||||||||||||||||||||||||||||||
Adjusted diluted | $ | 0.97 | ||||||||||||||||||||||||||||||||||||
Weighted average common shares: | ||||||||||||||||||||||||||||||||||||||
Diluted for net income from continuing operations | 56.7 | |||||||||||||||||||||||||||||||||||||
Diluted for adjusted net income from continuing operations | 56.7 |
Twelve Months Ended December 31, 2023 | ||||||||||||||||||||||||||||||||||||||
Gross profit | Total operating expenses | Operating income | Total other expense | Income tax expense | Net income from continuing operations | |||||||||||||||||||||||||||||||||
As reported (GAAP) | $ | 576.1 | $ | 429.2 | $ | 146.9 | $ | 63.5 | $ | 24.4 | $ | 59.0 | ||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||
Growth, reinvestment, and restructuring programs, including accelerated depreciation(1) | — | (46.1) | 46.1 | — | — | 46.1 | ||||||||||||||||||||||||||||||||
Product recall and related costs(2) | 29.2 | — | 29.2 | — | — | 29.2 | ||||||||||||||||||||||||||||||||
Divestiture, acquisition, integration, and related costs(3) | 0.8 | (15.9) | 16.7 | — | — | 16.7 | ||||||||||||||||||||||||||||||||
Mark-to-market adjustments(4) | — | — | — | (15.1) | — | 15.1 | ||||||||||||||||||||||||||||||||
Shareholder activism(5) | — | (0.3) | 0.3 | — | — | 0.3 | ||||||||||||||||||||||||||||||||
Tax indemnification(6) | — | — | — | (0.2) | — | 0.2 | ||||||||||||||||||||||||||||||||
Foreign currency gain on remeasurement of intercompany notes(7) | — | — | — | 1.7 | — | (1.7) | ||||||||||||||||||||||||||||||||
Taxes on adjusting items | — | — | — | — | 25.7 | (25.7) | ||||||||||||||||||||||||||||||||
As adjusted (Non-GAAP) | $ | 606.1 | $ | 366.9 | $ | 239.2 | $ | 49.9 | $ | 50.1 | $ | 139.2 | ||||||||||||||||||||||||||
As reported (% of net sales) | 16.8 | % | 12.5 | % | 4.3 | % | 1.9 | % | 0.7 | % | 1.7 | % | ||||||||||||||||||||||||||
As adjusted (% of net sales) | 17.7 | % | 10.7 | % | 7.0 | % | 1.5 | % | 1.5 | % | 4.1 | % | ||||||||||||||||||||||||||
Earnings per share from continuing operations: | ||||||||||||||||||||||||||||||||||||||
Diluted | $ | 1.05 | ||||||||||||||||||||||||||||||||||||
Adjusted diluted | $ | 2.47 | ||||||||||||||||||||||||||||||||||||
Weighted average common shares: | ||||||||||||||||||||||||||||||||||||||
Diluted for net income from continuing operations | 56.4 | |||||||||||||||||||||||||||||||||||||
Diluted for adjusted net income from continuing operations | 56.4 |
Twelve Months Ended December 31, 2022 | ||||||||||||||||||||||||||||||||||||||
Gross profit | Total operating expenses | Operating (loss) income | Total other (income) expense | Income tax expense | Net (loss) income from continuing operations | |||||||||||||||||||||||||||||||||
As reported (GAAP) | $ | 522.4 | $ | 535.0 | $ | (12.6) | $ | (13.7) | $ | 10.3 | $ | (9.2) | ||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||
Growth, reinvestment, and restructuring programs, including accelerated depreciation(1) | 0.5 | (84.6) | 85.1 | — | — | 85.1 | ||||||||||||||||||||||||||||||||
Divestiture, acquisition, integration, and related costs(3) | 1.6 | (12.2) | 13.8 | — | — | 13.8 | ||||||||||||||||||||||||||||||||
Mark-to-market adjustments(4) | — | — | — | 75.1 | — | (75.1) | ||||||||||||||||||||||||||||||||
Shareholder activism(5) | — | (2.7) | 2.7 | — | — | 2.7 | ||||||||||||||||||||||||||||||||
Foreign currency loss on remeasurement of intercompany notes(7) | — | — | — | (0.8) | — | 0.8 | ||||||||||||||||||||||||||||||||
Central services and conveyed employee costs(8) | 14.9 | (50.1) | 65.0 | — | — | 65.0 | ||||||||||||||||||||||||||||||||
Loss on extinguishment of debt(9) | — | — | — | (4.5) | — | 4.5 | ||||||||||||||||||||||||||||||||
Litigation matter(10) | — | (0.4) | 0.4 | — | — | 0.4 | ||||||||||||||||||||||||||||||||
Taxes on adjusting items | — | — | — | — | 15.4 | (15.4) | ||||||||||||||||||||||||||||||||
As adjusted (Non-GAAP) | $ | 539.4 | $ | 385.0 | $ | 154.4 | $ | 56.1 | $ | 25.7 | $ | 72.6 | ||||||||||||||||||||||||||
As reported (% of net sales) | 15.8 | % | 16.2 | % | (0.4) | % | (0.4) | % | 0.3 | % | (0.3) | % | ||||||||||||||||||||||||||
As adjusted (% of net sales) | 16.4 | % | 11.7 | % | 4.7 | % | 1.7 | % | 0.8 | % | 2.2 | % | ||||||||||||||||||||||||||
(Loss) earnings per share from continuing operations: | ||||||||||||||||||||||||||||||||||||||
Diluted | $ | (0.16) | ||||||||||||||||||||||||||||||||||||
Adjusted diluted | $ | 1.28 | ||||||||||||||||||||||||||||||||||||
Weighted average common shares: | ||||||||||||||||||||||||||||||||||||||
Diluted for net loss from continuing operations | 56.0 | |||||||||||||||||||||||||||||||||||||
Diluted for adjusted net income from continuing operations | 56.5 |
Twelve Months Ended December 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Cash flow provided by (used in) operating activities from continuing operations | $ | 157.3 | $ | (67.7) | ||||||||||
Less: Capital expenditures | (140.8) | (93.5) | ||||||||||||
Free cash flow from continuing operations | $ | 16.5 | $ | (161.2) |
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Cover Page |
Feb. 16, 2024 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Feb. 16, 2024 |
Entity Registrant Name | TREEHOUSE FOODS, INC. |
Entity File Number | 001-32504 |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 20-2311383 |
Entity Address, Address Line Two | Suite 600 |
Entity Address, Address Line One | 2021 Spring Road, |
Entity Address, State or Province | IL |
Entity Address, City or Town | Oak Brook |
Entity Address, Postal Zip Code | 60523 |
City Area Code | 708 |
Local Phone Number | 483-1300 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, $0.01 par value |
Trading Symbol | THS |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001320695 |
Amendment Flag | false |
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