ý | CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 35-2215019 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
399 Jefferson Road Parsippany, New Jersey | 07054 | |
(Address of Principal Executive Offices) | (Zip Code) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
Exhibit Number | Description | |
99.1 | Release dated October 27, 2016 announcing financial results for the fiscal quarter ended September 25, 2016. |
By: | /s/ CRAIG STEENECK | |
Name: | Craig Steeneck | |
Title: | Executive Vice President and Chief Financial Officer | |
Date: | October 27, 2016 |
Exhibit Number | Description | |
99.1 | Release dated October 27, 2016 announcing financial results for the fiscal quarter ended September 25, 2016. |
• | The outlook for Boulder Brands net sales remains in the range of $460 - $480 million, including the impact of the SKU rationalization program. |
• | Boulder Brands is now expected to contribute approximately $0.08 - $0.09 of Adjusted diluted EPS for the year, versus $0.07 - $0.08 previously estimated. |
• | Input cost inflation continues to be forecasted in the range of 2.0% - 2.5% for the year. |
• | Productivity for the year continues to be estimated in the range of 3.5% to 4.0% of cost of products sold, including Boulder Brands organic cost savings but excluding acquisition synergies. |
• | Interest expense for the year continues to be estimated at approximately $140 million. |
• | The weighted average diluted share count for the year remains estimated to be modestly above 118 million, with the fourth quarter estimated at approximately 119 million. |
• | Capital expenditures for the full year are now forecasted in the range of $110 - $120 million. |
• | Adjusted gross profit |
• | Adjusted gross profit as a % of sales (Adjusted gross profit margin) |
• | Adjusted EBITDA |
• | Adjusted Earnings before Interest and Taxes (Adjusted EBIT) |
• | Adjusted interest expense, net |
• | Adjusted net earnings |
• | Adjusted diluted earnings per share |
• | Adjusted effective income tax rate |
Three months ended | Nine months ended | ||||||||||||||
September 25, 2016 | September 27, 2015 | September 25, 2016 | September 27, 2015 | ||||||||||||
Net sales | $ | 758,821 | $ | 636,287 | $ | 2,269,457 | $ | 1,933,314 | |||||||
Cost of products sold | 530,117 | 459,432 | 1,620,994 | 1,415,633 | |||||||||||
Gross profit | 228,704 | 176,855 | 648,463 | 517,681 | |||||||||||
Marketing and selling expenses | 53,879 | 44,155 | 173,813 | 136,862 | |||||||||||
Administrative expenses | 36,439 | 26,467 | 126,030 | 81,918 | |||||||||||
Research and development expenses | 4,564 | 3,247 | 13,847 | 9,888 | |||||||||||
Tradename impairment charges | 11,200 | — | 11,200 | — | |||||||||||
Other expense (income), net | 4,354 | 5,193 | 17,238 | 12,936 | |||||||||||
110,436 | 79,062 | 342,128 | 241,604 | ||||||||||||
Earnings before interest and taxes | 118,268 | 97,793 | 306,335 | 276,077 | |||||||||||
Interest expense | 36,473 | 22,315 | 103,601 | 66,130 | |||||||||||
Interest income | 27 | 7 | 131 | 172 | |||||||||||
Earnings before income taxes | 81,822 | 75,485 | 202,865 | 210,119 | |||||||||||
Provision for income taxes | 29,469 | 27,387 | 79,892 | 76,806 | |||||||||||
Net earnings | 52,353 | 48,098 | 122,973 | 133,313 | |||||||||||
Less: Net loss attributable to non-controlling interest | — | — | — | — | |||||||||||
Net earnings attributable to Pinnacle Foods, Inc. and Subsidiaries common stockholders | $ | 52,353 | $ | 48,098 | $ | 122,973 | $ | 133,313 | |||||||
Net earnings per share attributable to Pinnacle Foods, Inc. and Subsidiaries common stockholders: | |||||||||||||||
Basic | $ | 0.45 | $ | 0.41 | $ | 1.05 | $ | 1.15 | |||||||
Weighted average shares outstanding - basic | 117,224 | 116,085 | 116,666 | 116,007 | |||||||||||
Diluted | $ | 0.44 | $ | 0.41 | $ | 1.04 | $ | 1.14 | |||||||
Weighted average shares outstanding - diluted | 118,390 | 117,470 | 117,923 | 117,262 | |||||||||||
Dividends declared | $ | 0.285 | $ | 0.255 | $ | 0.795 | $ | 0.725 |
September 25, 2016 | December 27, 2015 | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 164,928 | $ | 180,549 | |||
Accounts receivable, net of allowances of $11,278 and $7,902, respectively | 302,259 | 219,736 | |||||
Inventories | 502,052 | 403,101 | |||||
Other current assets | 9,163 | 13,677 | |||||
Deferred tax assets | 54,858 | 40,571 | |||||
Total current assets | 1,033,260 | 857,634 | |||||
Plant assets, net of accumulated depreciation of $470,697 and $408,294, respectively | 708,952 | 631,109 | |||||
Tradenames | 2,529,680 | 2,001,048 | |||||
Other assets, net | 176,035 | 120,364 | |||||
Goodwill | 2,169,431 | 1,714,008 | |||||
Total assets | $ | 6,617,358 | $ | 5,324,163 | |||
Current liabilities: | |||||||
Short-term borrowings | $ | 1,197 | $ | 2,225 | |||
Current portion of long-term obligations | 23,714 | 14,847 | |||||
Accounts payable | 251,836 | 211,039 | |||||
Accrued trade marketing expense | 44,600 | 46,228 | |||||
Accrued liabilities | 161,385 | 100,510 | |||||
Dividends payable | 34,883 | 30,798 | |||||
Total current liabilities | 517,615 | 405,647 | |||||
Long-term debt | 3,141,063 | 2,257,012 | |||||
Pension and other postretirement benefits | 62,640 | 63,454 | |||||
Other long-term liabilities | 63,681 | 54,506 | |||||
Deferred tax liabilities | 955,485 | 738,015 | |||||
Total liabilities | 4,740,484 | 3,518,634 | |||||
Commitments and contingencies | |||||||
Shareholders' equity: | |||||||
Pinnacle preferred stock: $.01 per share, 50,000,000 shares authorized, none issued | — | — | |||||
Pinnacle common stock: par value $.01 per share, 500,000,000 shares authorized; issued 119,048,643 and 117,619,695, respectively | 1,191 | 1,176 | |||||
Additional paid-in-capital | 1,422,483 | 1,378,521 | |||||
Retained earnings | 546,762 | 517,330 | |||||
Accumulated other comprehensive loss | (62,372 | ) | (59,388 | ) | |||
Capital stock in treasury, at cost, 1,000,000 common shares | (32,110 | ) | (32,110 | ) | |||
Total Pinnacle Foods Inc. and Subsidiaries stockholders' equity | 1,875,954 | 1,805,529 | |||||
Non-controlling interest | 920 | — | |||||
Total Equity | 1,876,874 | 1,805,529 | |||||
Total liabilities and equity | $ | 6,617,358 | $ | 5,324,163 |
Nine months ended | |||||||
September 25, 2016 | September 27, 2015 | ||||||
Cash flows from operating activities | |||||||
Net earnings | $ | 122,973 | $ | 133,313 | |||
Non-cash charges (credits) to net earnings | |||||||
Depreciation and amortization | 78,749 | 67,420 | |||||
Intangible asset impairment charge | 11,200 | — | |||||
Amortization of debt acquisition costs and discount on term loan | 7,079 | 4,696 | |||||
Refinancing costs and write off of debt issuance costs | 600 | — | |||||
Change in value of financial instruments | (9,218 | ) | (174 | ) | |||
Equity-based compensation charges | 9,383 | 11,489 | |||||
Pension expense, net of contributions | 112 | (4,300 | ) | ||||
Other long-term liabilities | 601 | (1,271 | ) | ||||
Other long-term assets | (1,110 | ) | — | ||||
Foreign exchange (gains) / losses | (1,027 | ) | 3,679 | ||||
Excess tax benefits on equity-based compensation | (10,767 | ) | (1,345 | ) | |||
Deferred income taxes | 28,737 | 55,500 | |||||
Changes in working capital (net of effects of acquisition) | |||||||
Accounts receivable | (40,708 | ) | (19,391 | ) | |||
Inventories | (31,948 | ) | (90,277 | ) | |||
Accrued trade marketing expense | (1,744 | ) | 2,332 | ||||
Accounts payable | 31,602 | 32,714 | |||||
Accrued liabilities | 29,813 | 15,545 | |||||
Other current assets | 15,615 | 890 | |||||
Net cash provided by operating activities | 239,942 | 210,820 | |||||
Cash flows from investing activities | |||||||
Business acquisition activity (net of cash acquired) | (985,365 | ) | 1,102 | ||||
Capital expenditures | (76,623 | ) | (84,733 | ) | |||
Proceeds from sale of plant assets | — | 730 | |||||
Net cash used in investing activities | (1,061,988 | ) | (82,901 | ) | |||
Cash flows from financing activities | |||||||
Proceeds from bank term loans | 547,250 | — | |||||
Proceeds from notes offerings | 350,000 | — | |||||
Repayments of long-term obligations | (10,145 | ) | (6,642 | ) | |||
Repurchase of notes | — | — | |||||
Proceeds from short-term borrowings | 2,182 | 2,135 | |||||
Repayments of short-term borrowings | (3,180 | ) | (3,386 | ) | |||
Repayment of capital lease obligations | (2,621 | ) | (2,645 | ) | |||
Dividends paid | (89,343 | ) | (82,086 | ) | |||
Net proceeds from issuance of common stock | 24,914 | 1,038 | |||||
Excess tax benefits on equity-based compensation | 10,767 | 1,345 | |||||
Taxes paid related to net share settlement of equity awards | (1,087 | ) | (2,401 | ) | |||
Debt acquisition costs | (22,564 | ) | — | ||||
Net cash provided by (used in) financing activities | 806,173 | (92,642 | ) | ||||
Effect of exchange rate changes on cash | 252 | (732 | ) | ||||
Net change in cash and cash equivalents | (15,621 | ) | 34,545 | ||||
Cash and cash equivalents - beginning of period | 180,549 | 38,477 | |||||
Cash and cash equivalents - end of period | $ | 164,928 | $ | 73,022 | |||
Supplemental disclosures of cash flow information: | |||||||
Interest paid | $ | 79,030 | $ | 54,825 | |||
Interest received | 131 | 159 | |||||
Income taxes paid | 19,623 | 18,425 | |||||
Non-cash investing and financing activities: | |||||||
New capital leases | 16,044 | — | |||||
Dividends payable | 34,883 | 30,582 | |||||
Accrued additions to plant assets | 13,800 | 9,693 |
Three months ended | Nine months ended | |||||||||||||||
September 25, 2016 | September 27, 2015 | September 25, 2016 | September 27, 2015 | |||||||||||||
Gross profit (as reported) | $ | 228,704 | $ | 176,855 | $ | 648,463 | $ | 517,681 | ||||||||
Accelerated depreciation expense (2) | — | 1,131 | — | 1,131 | ||||||||||||
Non-cash items | ||||||||||||||||
Unrealized (gains)/losses resulting from hedging (3) | (1,724 | ) | 4,392 | (9,217 | ) | (218 | ) | |||||||||
Purchase accounting adjustments (4) | — | — | 10,382 | — | ||||||||||||
Non-cash compensation charges (5) | — | — | — | 954 | ||||||||||||
Acquisition, merger and other restructuring charges | ||||||||||||||||
Acquisition or other non recurring expenses | — | — | — | 130 | ||||||||||||
Restructuring and integration costs (6) | 2,102 | 2,011 | 3,711 | 6,177 | ||||||||||||
Adjusted gross profit | $ | 229,082 | $ | 184,389 | $ | 653,339 | $ | 525,855 | ||||||||
Adjusted gross profit as a % of sales | ||||||||||||||||
Adjusted gross profit | $ | 229,082 | $ | 184,389 | $ | 653,339 | $ | 525,855 | ||||||||
Net sales | $ | 758,821 | $ | 636,287 | $ | 2,269,457 | $ | 1,933,314 | ||||||||
Adjusted gross profit as a % of sales | 30.2 | % | 29.0 | % | 28.8 | % | 27.2 | % |
(1) | Excludes Boulder, Wish-Bone and Gardein anticipated synergies which are included in calculating Covenant compliance. |
(2) | Reflects accelerated depreciation related to in-sourcing of Wish-Bone production. |
(3) | Represents non-cash gains and losses resulting from mark-to-market obligations under derivative contracts. |
(4) | For the nine months ended September 25, 2016, represents expense related to the write-up to fair market value of inventories acquired as a result of the Boulder acquisition. |
(5) | Represents non-cash employee incentives and retention charges resulting from the termination of the Hillshire merger agreement |
(6) | For the three and nine months ended September 25, 2016, primarily represents integration costs of the Garden Protein and Boulder acquisition. For the nine months ended September 27, 2015, primarily represents integration costs of the Garden Protein and Wish-Bone acquisitions. |
Three months ended | Nine months ended | |||||||||||||||
September 25, 2016 | September 27, 2015 | September 25, 2016 | September 27, 2015 | |||||||||||||
Net earnings attributable to Pinnacle Foods Inc. and Subsidiaries common stockholders (as reported) | $ | 52,353 | $ | 48,098 | $ | 122,973 | $ | 133,313 | ||||||||
Accelerated depreciation expense (2) | — | 1,131 | — | 1,131 | ||||||||||||
Non-cash items | ||||||||||||||||
Unrealized (gains)/losses resulting from hedging (3) | (1,724 | ) | 4,392 | (9,217 | ) | (218 | ) | |||||||||
Purchase accounting adjustments (4) | — | — | 10,382 | — | ||||||||||||
Tradename impairment charges (5) | 11,200 | — | 11,200 | — | ||||||||||||
Non-cash compensation charges (6) | — | — | — | 1,567 | ||||||||||||
Foreign exchange (gains)/losses (7) | 256 | 2,102 | (1,027 | ) | 3,680 | |||||||||||
Acquisition, merger and other restructuring charges | ||||||||||||||||
Acquisition or other non-recurring expenses (8) | — | — | 6,781 | 1,128 | ||||||||||||
Restructuring and integration costs (9) | 6,568 | 2,353 | 31,674 | 6,882 | ||||||||||||
Employee severance (10) | — | 225 | — | 225 | ||||||||||||
Interest expense (11) | 600 | — | 600 | — | ||||||||||||
Tax Impact of Adjustments to Adjusted net earnings (12) | (6,449 | ) | (3,704 | ) | (13,206 | ) | (5,297 | ) | ||||||||
Adjusted net earnings | $ | 62,804 | $ | 54,597 | $ | 160,160 | $ | 142,411 | ||||||||
Adjusted earnings per share | ||||||||||||||||
Adjusted net earnings | $ | 62,804 | $ | 54,597 | $ | 160,160 | $ | 142,411 | ||||||||
Diluted weighted average outstanding shares | 118,390 | 117,470 | 117,923 | 117,262 | ||||||||||||
Adjusted earnings per share | $ | 0.53 | $ | 0.46 | $ | 1.36 | $ | 1.21 | ||||||||
Diluted earnings per share (as reported) | $ | 0.44 | $ | 0.41 | $ | 1.04 | $ | 1.14 | ||||||||
Accelerated depreciation expense (2) | — | 0.01 | — | 0.01 | ||||||||||||
Non-cash items | ||||||||||||||||
Unrealized (gains)/losses resulting from hedging (3) | (0.01 | ) | 0.04 | (0.08 | ) | — | ||||||||||
Purchase accounting adjustments (4) | — | — | 0.09 | — | ||||||||||||
Tradename impairment charges (5) | 0.09 | — | 0.09 | — | ||||||||||||
Non-cash compensation charges (6) | — | — | — | 0.01 | ||||||||||||
Foreign exchange (gains)/losses (7) | — | 0.02 | (0.01 | ) | 0.03 | |||||||||||
Acquisition, merger and other restructuring charges | — | — | — | — | ||||||||||||
Acquisition or other non-recurring expenses (8) | — | — | 0.06 | 0.01 | ||||||||||||
Restructuring and integration costs (9) | 0.06 | 0.02 | 0.27 | 0.06 | ||||||||||||
Employee severance (10) | — | — | — | — | ||||||||||||
Interest expense (11) | 0.01 | — | 0.01 | — | ||||||||||||
Tax Impact of Adjustments to Adjusted net earnings (12) | (0.05 | ) | (0.03 | ) | (0.11 | ) | (0.05 | ) | ||||||||
Adjusted earnings per share | 0.53 | 0.46 | 1.36 | 1.21 |
(1) | Excludes Boulder, Wish-Bone and Gardein anticipated synergies which are included in calculating Covenant compliance. |
(2) | Reflects accelerated depreciation related to in-sourcing of Wish-Bone production. |
(3) | Represents non-cash gains and losses resulting from mark-to-market obligations under derivative contracts. |
(4) | For the nine months ended September 25, 2016, represents expense related to the write-up to fair value of inventories acquired as a result of the Boulder acquisition. |
(5) | For the three and nine months ended September 25, 2016, represents tradename impairment on Celeste ($7.3 million), Aunt Jemima ($3.0 million) and Snyder of Berlin ($0.9 million). |
(6) | For the nine months ended September 27, 2015, represents non-cash employee incentives and retention charges resulting from the termination of the Hillshire merger agreement. |
(7) | Represents foreign exchange (gains) losses resulting from intra-entity loans that are anticipated to be settled in the foreseeable future. |
(8) | For the nine months ended September 25, 2016, represents Boulder acquisition costs. For the nine months ended September 27, 2015, represents expenses related to the secondary offerings of common stock. For fiscal 2015, represents Boulder acquisition costs and expenses related to the secondary offerings of common stock. |
(9) | For the three and nine months ended September 25, 2016, primarily represents restructuring charges and integration costs of the Boulder and Garden Protein acquisitions. For the three and nine months September 27, 2015 and fiscal 2015, primarily represents integration costs of the Garden Protein and Wish-Bone acquisitions. |
(10) | Represents severance costs not related to business acquisitions paid, or to be paid, to terminated employees. |
(11) | Represents charges associated with the July 2016 Boulder Brands term loan repricing. |
(12) | See Adjusted effective income tax rate reconciliation for further details. |
Three months ended | Nine months ended | |||||||||||||||
September 25, 2016 | September 27, 2015 | September 25, 2016 | September 27, 2015 | |||||||||||||
Net earnings attributable to Pinnacle Foods Inc. and Subsidiaries common stockholders (as reported) | $ | 52,353 | $ | 48,098 | $ | 122,973 | $ | 133,313 | ||||||||
Interest expense, net | 36,446 | 22,308 | 103,470 | 65,958 | ||||||||||||
Provision for income taxes | 29,469 | 27,387 | 79,892 | 76,806 | ||||||||||||
Net loss attributable to non-controlling interest | — | — | — | — | ||||||||||||
Earnings before interest and taxes (as reported) | 118,268 | 97,793 | 306,335 | 276,077 | ||||||||||||
Accelerated depreciation expense (2) | — | 1,131 | — | 1,131 | ||||||||||||
Non-cash items | ||||||||||||||||
Unrealized (gains)/losses resulting from hedging (3) | (1,724 | ) | 4,392 | (9,217 | ) | (218 | ) | |||||||||
Purchase accounting adjustments (4) | — | — | 10,382 | — | ||||||||||||
Tradename impairment charges (5) | 11,200 | — | 11,200 | — | ||||||||||||
Non-cash compensation charges (6) | — | — | — | 1,567 | ||||||||||||
Foreign exchange (gains)/losses (7) | 256 | 2,102 | (1,027 | ) | 3,680 | |||||||||||
Acquisition, merger and other restructuring charges | ||||||||||||||||
Acquisition or other non recurring expenses (8) | — | — | 6,781 | 1,128 | ||||||||||||
Restructuring and integration costs (9) | 6,568 | 2,353 | 31,674 | 6,882 | ||||||||||||
Employee severance (10) | — | 225 | — | 225 | ||||||||||||
Adjusted EBIT | $ | 134,568 | $ | 107,996 | $ | 356,128 | $ | 290,472 | ||||||||
Depreciation | 22,768 | 19,735 | 66,084 | 56,131 | ||||||||||||
Amortization | 4,309 | 3,397 | 12,665 | 10,158 | ||||||||||||
Adjusted EBITDA | $ | 161,645 | $ | 131,128 | $ | 434,877 | $ | 356,761 |
(1) | Excludes Boulder, Wish-Bone and Gardein anticipated synergies which are included in calculating Covenant compliance. |
(2) | Reflects accelerated depreciation related to in-sourcing of Wish-Bone production. |
(3) | Represents non-cash gains and losses resulting from mark-to-market obligations under derivative contracts. |
(4) | For the nine months ended September 25, 2016, represents expense related to the write-up to fair value of inventories acquired as a result of the Boulder acquisition. |
(5) | For the three and nine months ended September 25, 2016, represents tradename impairment on Celeste ($7.3 million), Aunt Jemima ($3.0 million) and Snyder of Berlin ($0.9 million). |
(6) | For the nine months ended September 27, 2015, represents non-cash employee incentives and retention charges resulting from the termination of the Hillshire merger agreement. |
(7) | Represents foreign exchange (gains) losses resulting from intra-entity loans that are anticipated to be settled in the foreseeable future. |
(8) | For the nine months ended September 25, 2016, represents Boulder acquisition costs. For the nine months ended September 27, 2015, represents expenses related to the secondary offerings of common stock. |
(9) | For the three and nine months ended September 25, 2016, primarily represents restructuring charges and integration costs of the Boulder and Garden Protein acquisitions. For the three and nine months September 27, 2015, primarily represents integration costs of the Garden Protein and Wish-Bone acquisitions. |
(10) | Represents severance costs not related to business acquisitions paid, or to be paid, to terminated employees. |
Three months ended | Nine months ended | |||||||||||
September 25, 2016 | September 27, 2015 | September 25, 2016 | September 27, 2015 | |||||||||
Effective income tax rate (as reported) | 36.0 | % | 36.3 | % | 39.4 | % | 36.6 | % | ||||
Acquisition or other non recurring expenses (1) | (0.3 | )% | 0.1 | % | (0.3 | )% | 0.1 | % | ||||
Restructuring and integration costs (2) | (0.3 | )% | — | % | (0.3 | )% | — | % | ||||
Valuation allowance on foreign tax credit due to acquisition (3) | 1.0 | % | — | % | (0.3 | )% | — | % | ||||
Increase in deferred tax liability due to acquisition (4) | — | % | — | % | (1.9 | )% | — | % | ||||
Other | — | % | (0.1 | )% | 0.2 | % | (0.1 | )% | ||||
Adjusted effective income tax rate | 36.4 | % | 36.3 | % | 36.8 | % | 36.6 | % | ||||
(1) | For the three and nine months ended September 25, 2016, represents the effective tax rate impact of non-deductible Boulder acquisition costs. For the three and nine months ended September 27, 2015, represents the effective tax rate impact of non-deductible costs related to our secondary offering of common stock. |
(2) | For the three and nine months ended September 25, 2016, represents the effective tax rate impact of non-deductible severance costs in connection with the integration of Boulder. |
(3) | For the three and nine months ended September 25, 2016, represents the effective tax rate impact of a valuation allowance on our foreign tax credit. |
(4) | For the nine months ended September 25, 2016, represents the effective tax rate impact of an increase in our state deferred income tax liability. |
Pinnacle Foods Inc. Reconciliation of Non-GAAP measures (Unaudited) Adjusted Segment amounts (thousands) | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 25, 2016 | September 27, 2015 | September 25, 2016 | September 27, 2015 | |||||||||||||
Net sales - Reported | ||||||||||||||||
Birds Eye Frozen | $ | 308,938 | $ | 296,709 | $ | 924,104 | $ | 883,458 | ||||||||
Duncan Hines Grocery | 249,545 | 257,387 | 763,201 | 796,579 | ||||||||||||
North America Retail | 558,483 | 554,096 | 1,687,305 | 1,680,037 | ||||||||||||
Boulder Brands | 120,926 | — | 344,381 | — | ||||||||||||
Specialty Foods | 79,412 | 82,191 | 237,771 | 253,277 | ||||||||||||
Total | $ | 758,821 | $ | 636,287 | $ | 2,269,457 | $ | 1,933,314 | ||||||||
Earnings before interest & taxes - Reported | ||||||||||||||||
Birds Eye Frozen | $ | 54,188 | $ | 51,953 | $ | 156,223 | $ | 133,208 | ||||||||
Duncan Hines Grocery | 48,127 | 44,223 | 142,987 | 138,471 | ||||||||||||
Boulder Brands | 16,082 | — | 11,884 | — | ||||||||||||
Specialty Foods | 6,322 | 7,788 | 19,575 | 23,087 | ||||||||||||
Unallocated corporate expenses | (6,451 | ) | (6,171 | ) | (24,334 | ) | (18,689 | ) | ||||||||
Total | $ | 118,268 | $ | 97,793 | $ | 306,335 | $ | 276,077 | ||||||||
Adjustments (Non GAAP - See separate table) | ||||||||||||||||
Birds Eye Frozen | $ | 10,832 | $ | 5,350 | $ | 7,536 | $ | 7,305 | ||||||||
Duncan Hines Grocery | (594 | ) | 4,529 | (3,760 | ) | 6,919 | ||||||||||
Boulder Brands | 5,250 | — | 38,867 | — | ||||||||||||
Specialty Foods | 812 | 324 | 368 | 171 | ||||||||||||
Unallocated corporate expenses | — | — | 6,782 | — | ||||||||||||
Total | $ | 16,300 | $ | 10,203 | $ | 49,793 | $ | 14,395 | ||||||||
Earnings before interest & taxes - Adjusted (Non GAAP - See separate discussion and tables) | ||||||||||||||||
Birds Eye Frozen | $ | 65,020 | $ | 57,303 | $ | 163,759 | $ | 140,513 | ||||||||
Duncan Hines Grocery | 47,533 | 48,752 | 139,227 | 145,390 | ||||||||||||
Boulder Brands | 21,332 | — | 50,751 | — | ||||||||||||
Specialty Foods | 7,134 | 8,112 | 19,943 | 23,258 | ||||||||||||
Unallocated corporate expenses | (6,451 | ) | (6,171 | ) | (17,552 | ) | (18,689 | ) | ||||||||
Total | $ | 134,568 | $ | 107,996 | $ | 356,128 | $ | 290,472 | ||||||||
Pinnacle Foods Inc. Reconciliation of Non-GAAP measures (Unaudited) Supplemental Schedule of Adjustments Detail (millions) | ||||||||||||||||
Adjustments to Earnings Before Interest and Taxes | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 25, 2016 | September 27, 2015 | September 25, 2016 | September 27, 2015 | |||||||||||||
Birds Eye Frozen | ||||||||||||||||
Restructuring and acquisition integration charges | $ | 1.3 | $ | 3.0 | $ | 1.6 | $ | 5.5 | ||||||||
Gardein acquisition related charges | — | — | — | 0.1 | ||||||||||||
Employee severance | — | 0.1 | — | 0.1 | ||||||||||||
Unrealized mark-to-market (gain)/loss | (0.8 | ) | 2.2 | (4.5 | ) | 0.4 | ||||||||||
Hillshire merger termination-related employee compensation expense | — | — | — | 0.8 | ||||||||||||
Tradename impairment charges | 10.3 | — | 10.3 | — | ||||||||||||
Other | — | — | 0.1 | 0.4 | ||||||||||||
Total Birds Eye Frozen | $ | 10.8 | $ | 5.3 | $ | 7.5 | $ | 7.3 | ||||||||
Duncan Hines Grocery | ||||||||||||||||
Restructuring and acquisition integration charges | $ | — | $ | 2.6 | $ | — | $ | 6.2 | ||||||||
Employee severance | — | 0.1 | — | 0.1 | ||||||||||||
Unrealized mark-to-market (gain)/loss | (0.6 | ) | 1.8 | (3.9 | ) | (0.6 | ) | |||||||||
Hillshire merger termination-related employee compensation expense | — | — | — | 0.8 | ||||||||||||
Other | — | — | 0.1 | 0.4 | ||||||||||||
Total Duncan Hines Grocery | $ | (0.6 | ) | $ | 4.5 | $ | (3.8 | ) | $ | 6.9 | ||||||
Boulder Brands | ||||||||||||||||
Restructuring and acquisition integration charges | $ | 5.5 | $ | — | $ | 28.7 | $ | — | ||||||||
Expense related to the write-up to fair market value of inventories acquired | — | — | 10.4 | — | ||||||||||||
Unrealized mark-to-market (gain)/loss | (0.2 | ) | — | (0.2 | ) | — | ||||||||||
Total Boulder Brands | $ | 5.3 | $ | — | $ | 38.9 | $ | — | ||||||||
Specialty Foods | ||||||||||||||||
Unrealized mark-to-market (gain)/loss | $ | (0.1 | ) | $ | 0.3 | $ | (0.5 | ) | $ | — | ||||||
Hillshire merger termination-related employee compensation expense | — | — | — | 0.1 | ||||||||||||
Tradename impairment charges | 0.9 | — | 0.9 | — | ||||||||||||
Total Specialty Foods | $ | 0.8 | $ | 0.3 | $ | 0.4 | $ | 0.1 | ||||||||
Unallocated Corporate Expenses | ||||||||||||||||
Boulder acquisition related charges | $ | — | $ | — | $ | 6.8 | $ | — | ||||||||
Total Unallocated Corporate Expenses | $ | — | $ | — | $ | 6.8 | $ | — |
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