0000033769-17-000047.txt : 20170615 0000033769-17-000047.hdr.sgml : 20170615 20170615081714 ACCESSION NUMBER: 0000033769-17-000047 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20170615 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20170615 DATE AS OF CHANGE: 20170615 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BOB EVANS FARMS INC CENTRAL INDEX KEY: 0000033769 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 314421866 STATE OF INCORPORATION: DE FISCAL YEAR END: 0424 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-01667 FILM NUMBER: 17912437 BUSINESS ADDRESS: STREET 1: 8111 SMITH'S MILL ROAD CITY: NEW ALBANY STATE: OH ZIP: 43054 BUSINESS PHONE: 614-491-2225 MAIL ADDRESS: STREET 1: 8111 SMITH'S MILL ROAD CITY: NEW ALBANY STATE: OH ZIP: 43054 FORMER COMPANY: FORMER CONFORMED NAME: EVANS BOB FARMS INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: TAM O SHANTER LTD INC DATE OF NAME CHANGE: 19750908 FORMER COMPANY: FORMER CONFORMED NAME: EVANS BOB FARMS SALES INC DATE OF NAME CHANGE: 19750423 8-K 1 a8-k6152017.htm 8-K Document


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
 

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): June 15, 2017 (June 15, 2017)
Bob Evans Farms, Inc.
(Exact name of registrant as specified in its charter)

Delaware
0-1667
31-4421866
(State or other jurisdiction of
incorporation or organization)
(Commission File No.)
(I.R.S. Employer
Identification No.)
8111 Smith’s Mill Road, New Albany, Ohio 43054
(Address of principal executive offices Zip Code)
(614) 491-2225
(Registrant’s telephone number, including area code)
Not applicable
(Former name, former address and formal fiscal year, if changed since last report)
_______________________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
¨    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-2b)
¨    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4c)





Item 2.02.    Results of Operations and Financial Condition.

On June 15, 2017, Bob Evans Farms, Inc., a Delaware corporation (the “Company”) issued a news release announcing financial results for the fourth quarter and fiscal year 2017 ended April 28, 2017. A copy of the news release and a fact sheet with additional financial information is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Within the news release the Company sets forth the reasons it believes that the presentation of the non-GAAP financial measures contained in the press release provide useful information to investors regarding the Company’s financial condition and results of operations. To the extent material, the exhibit also discloses the additional purposes, if any, for which the Company’s management uses these non-GAAP financial measures. A reconciliation of these non-GAAP financial measures with the most directly comparable GAAP financial measures is included in news release and fact sheet.

The information in this Form 8-K, including the information contained in Exhibit 99.1, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that Section, nor shall such information be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly set forth by specific reference in such filing.

Item 9.01.    Financial Statements and Exhibits.

(a) Financial Statements of Business Acquired - Not Applicable
(b) Pro Forma Financial Information - Not applicable
(c) Shell Company Transactions - Not Applicable
(d) Exhibits:

The following exhibits are included with this Current Report on Form 8‑K:

99.1
News release issued by Bob Evans Farms, Inc. on June 15, 2017 announcing the financial results for the fourth quarter and fiscal year 2017 ended April 28, 2017.
Filed herewith












SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
BOB EVANS FARMS, INC.
 
 
 
 
Date: June 15, 2017
 
By:
/s/ Mark E. Hood
 
 
 
Mark E. Hood, Chief Financial Officer and Chief Administrative Officer



 EX-99.1 2 bobeex99.htm EXHIBIT 99.1 Exhibit
beflogoa08.jpg

BOB EVANS REPORTS FOURTH QUARTER AND FISCAL YEAR 2017 RESULTS
    
▪
Fourth quarter net sales from continuing operations* totals $99.9 million, an increase of 4.9 percent from 13 week comparable fiscal 2016 (excludes 53rd week); consolidated GAAP net income of $5.39 per diluted share compared to $0.03 in the prior year and non-GAAP net income of $0.61 per diluted share, an increase of 27.1% from $0.48 in the prior year;

▪
Fiscal year 2017 net sales from continuing operations totals $394.8 million, an increase of 3.8 percent from the 52 week comparable fiscal 2016 (excludes 53rd week); consolidated GAAP net income of $6.28 per diluted share compared to $1.13 in the prior year and non-GAAP net income of $2.38 per diluted share, an increase of 17.8% from $2.02 in the prior year;

▪
Fourth quarter retail side-dish and sausage pounds sold increased 11.5 percent and 9.2 percent, respectively, when compared on a 13 week vs. 13 week basis. Q4 food service volume increased 5.7 percent, also on a 13 week vs. 13 week comparison;

▪
On May 1, 2017, the Company completed the previously announced acquisition of Pineland Farms Potato Company;

▪
On April 28, 2017, the Company completed the sale of the Bob Evans Restaurants segment and completed a new $300 million credit facility;

▪
Company reiterates fiscal year 2018 guidance for net sales of $470 million at the midpoint of its range and EBITDA of $105 million at the midpoint of its range; and initiates guidance for diluted EPS of $2.06 to $2.24;

▪
Quarterly dividend of $0.34 per share payable on June 26, 2017, to stockholders of record at the close of business on June 12, 2017. Special dividend of $7.50 per share is payable June 16, 2017. $100 million share repurchase authorization remains in place through December 31, 2017.

* On April 28, 2017, the Company completed the sale of Bob Evans Restaurants to Golden Gate Capital. As a result, the results of operations of Bob Evans Restaurants (“BER”) have been reported as discontinued operations and all financial statement items for the current and prior periods reflect BER as a discontinued business. Adjusted, or non-GAAP, results presented herein include both continuing and discontinued operations and exclude certain items for comparability. Descriptions of measures excluding these items are provided in non-GAAP financial measures and reconciliations of such non-GAAP measures to the most comparable GAAP measure are provided in the tables at the end of this release.

NEW ALBANY, Ohio - June 15, 2017 - Bob Evans Farms, Inc. (NASDAQ: BOBE) today announced its financial results for the fiscal 2017 fourth quarter ended Friday, April 28, 2017. On a GAAP basis, the Company reported consolidated net income of $108.9 million, or $5.39 per diluted share, compared with net income of $0.6 million, or $0.03 per diluted share, in the corresponding period last year. Non-GAAP consolidated net income was $12.2 million, or $0.61 per diluted share, compared with non-GAAP net income of $9.5 million, or $0.48 per diluted share, in the corresponding period last year.


1

▪
Net sales from continuing operations in the fourth quarter were $99.9 million, a decrease of $2.5 million, or 2.4 percent, compared to $102.4 million in the corresponding period last year. Excluding the impact of an extra week in the fourth quarter of fiscal 2016, net sales increased 4.9 percent. The fourth quarter of fiscal 2017 included 13 weeks compared to 14 weeks in fiscal 2016.

▪
GAAP net income in the fourth quarter of $108.9 million consists of $6.8 million from continuing operations and $102.1 million from discontinued operations. GAAP net income in the prior year period of $0.6 million consisted of $5.9 million from continuing operations and a $5.3 million loss from discontinued operations. Non-GAAP net income in the fourth quarter of $12.2 million includes $11.7 million from continuing operations and $0.5 million from discontinued operations. Non-GAAP net income in the prior year period of $9.5 million included $6.5 million from continuing operations and $3.0 million from discontinued operations.

▪
GAAP diluted earnings per share in the fourth quarter of $5.39 consists of $0.33 from continuing operations and $5.06 from discontinued operations. GAAP diluted earnings per share of $0.03 for the prior-year period consisted of $0.30 from continuing operations and a loss of $0.27 from discontinued operations. Non-GAAP diluted earnings per share in the fourth quarter of $0.61 consists of $0.58 from continuing operations and $0.03 from discontinued operations. Non-GAAP diluted earnings per share of $0.48 for the prior-year period consisted of $0.32 from continuing operations and $0.16 from discontinued operations. The impact of the 53rd week on Q4 2016 and fiscal 2016 diluted earnings per share was $0.13.

Fourth-quarter fiscal 2017 commentary
President and Chief Executive Officer Mike Townsley said, “We closed the fiscal year with strong fourth quarter earnings, exceeding our full year guidance, and completed the strategic transactions that have reshaped Bob Evans into a higher growth and higher margin, pure-play packaged foods company. We are now focusing our attention on capitalizing on the growth opportunities in our refrigerated side-dish business while completing the integration of Pineland Farms Potato Company. The Pineland acquisition provides the added production capacity as well as the product and channel opportunities to support our growth.”

“Fourth quarter net sales from continuing operations increased 4.9 percent as compared to the comparable 13 week period in the prior year, driven by the continuation of double digit growth in our high margin refrigerated side-dish business. With the sale of BER complete, we can strategically expand our food service sales effort, leveraging Pineland Farms’ strength in this large channel of distribution.”

Fourth-quarter fiscal 2017 summary - continuing operations
Net sales from continuing operations were $99.9 million, a decrease of $2.5 million, or 2.4 percent, compared to $102.4 million in the corresponding period last year. Excluding the 14th week in the prior year period, net sales from continuing operations increased 4.9 percent. Pounds sold for the fourth quarter, adjusted for a 13 week vs. 13 week comparison, increased 7.0 percent while average net selling price per pound declined 2.3 percent compared to the corresponding period last year.  The decline in average net selling price reflects an increased sales mix of lower-priced, although higher-margin, side-dish products relative to sausage, as well as reduced net sausage pricing. From a net sales perspective, an 11.5 percent increase in side-dish pounds sold, a 9.2 percent increase in sausage pounds sold, and a 11.5 percent increase in food service pounds sold were partially offset by a 5.1 percent increase in trade spending and a 17.0 percent decline in frozen product pounds sold, all compared to the comparable 13 week period in the prior year.


2

GAAP operating income from continuing operations was $9.5 million, compared to $10.3 million in the corresponding period last year.  Non-GAAP operating income from continuing operations was $13.8 million, compared to $11.3 million in the corresponding period last year, an improvement of $2.5 million.  The improvement was due primarily to the aforementioned increase in pounds sold and the favorable sales mix of higher-margin side-dish items; partially offset by higher production costs, and increased freight expense resulting from increased pounds sold.  S,G&A expenses totaling $6.2 million, previously identified as “corporate and other” costs, are now included within continuing operations. Of these costs, $0.7 million represent costs primarily related to wages and benefits for terminated employees that will no longer be in the Company's expense base in fiscal 2018.

Fourth-quarter fiscal 2017 summary - discontinued operations
Net sales from discontinued operations were $213.5 million, a decline of $29.7 million, or 12.2 percent, compared to net sales of $243.2 million in the corresponding period last year. The sales decline was primarily the result of a 3.9 percent decline in same store sales as well as closing 26 stores.

GAAP income before taxes from discontinued operations was $160.7 million, compared to GAAP loss before taxes from discontinued operations of $12.2 million last year.  The increase primarily reflects a $155.7 million gain on the sale of BER. Non-GAAP income before taxes from discontinued operations was $3.1 million, compared to $2.3 million last year, an increase of $0.8 million.

Fourth-quarter fiscal 2017 net interest expense
GAAP net interest expense was $4.3 million in the fourth quarter, an increase of $1.7 million, compared to $2.6 million in the corresponding period last year. Non-GAAP net interest expense was $2.2 million in the fourth quarter, a decrease of $0.4 million, compared to $2.6 million in the corresponding period last year. Net interest expense on all revolving credit borrowings are included in continuing operations, while net interest expense related to the headquarters mortgage is included within discontinued operations.

Fourth-quarter fiscal 2017 taxes
The Company recognized a GAAP tax benefit for continuing operations of 28.6 percent for the fourth quarter of fiscal 2017, as compared to tax expense of 23.6 percent for the prior year period. On a non-GAAP basis, the Company recognized a tax benefit of 1.1 percent for the fourth quarter of fiscal 2017, as compared to tax expense of 25.8 percent for the prior year period. The change in the tax rate was driven primarily by the sale of the Bob Evans Restaurant business.

Fiscal-year 2017 summary - continuing operations
Net sales for the full year from continuing operations were $394.8 million, an increase of $7.2 million, or 1.9 percent, compared to $387.6 million in the prior year. Excluding the 53rd week during fiscal 2016, net sales from continuing operations increased 3.8 percent.  Pounds sold for fiscal 2017, on a 52 week vs. 52 week basis, increased 7.0 percent while average net selling price per pound declined 3.4 percent compared to the prior year.  The decline in average net selling price reflects an increased sales mix of lower-priced, although higher-margin, side-dish products relative to sausage, as well as reduced net sausage pricing through increased trade spending. From a net sales perspective, a 12.7 percent increase in side-dish pounds sold, a 5.9 percent increase in sausage pounds sold, and a 1.6 percent increase in food service pounds sold were partially offset by a 12.0 percent increase in trade spending and an 11.9 percent decline in frozen product pounds sold, all compared to the comparable 52 week period in the prior year.

For fiscal year 2017, GAAP operating income from continuing operations was $30.1 million, compared to $33.1 million in the prior year.  Non-GAAP operating income from continuing operations was $53.0 million, compared to $37.7 million in the prior year, an improvement of $15.3 million. The improvement was due primarily to the aforementioned increase in pounds sold and the favorable sales mix of higher-

3

margin side-dish items, partially offset by a $4.9 million increase in trade spending net of lower sow costs, lower average net selling prices and higher production costs and increased freight expense resulting from increased pounds sold.  S,G&A expenses totaling $23.4 million, previously identified as “corporate and other” costs, are now included within continuing operations. Of these costs, $6.4 million represent costs primarily related to wages and benefits for terminated employees that will no longer be in the Company's expense base in fiscal 2018.

Fiscal-year 2017 summary - discontinued operations
For the fiscal year ended April 28, 2017, net sales from discontinued operations were $876.8 million, a decline of $74.4 million, or 7.8 percent, compared to net sales of $951.2 million in the prior year. The decline in sales was primarily the result of a 3.2 percent decrease in same store sales and 26 store closings.
 
For the fiscal year ended April 28, 2017, GAAP income before taxes from discontinued operations was $167.0 million, compared to GAAP income before taxes from discontinued operations of $2.8 million in the prior year.  The increase primarily reflects a $150.2 million gain on the sale of BER. Non-GAAP income before taxes from discontinued operations was $17.3 million, compared to $28.2 million in the prior year, a decline of $10.9 million. 

Fiscal-year 2017 net interest expense
GAAP net interest expense was $9.2 million for fiscal year 2017, a decrease of $1.2 million, compared to $10.4 million in the prior year. Non-GAAP net interest expense was $8.3 million for fiscal year 2017, a decrease of $1.6 million, compared to $9.9 million in the prior year. Net interest expense on all revolving credit borrowings are included in continuing operations, while net interest expense related to the headquarters mortgage is included within discontinued operations.

Fiscal-year 2017 taxes
The Company recognized GAAP tax expense for continuing operations of 18.5 percent for fiscal year 2017, as compared to 28.4 percent for the prior year. The change in the tax rate was driven primarily by officer’s life insurance and discrete items. On a non-GAAP basis, the tax rate was 25.9 percent for continuing operations. Discontinued operations are presented net of income tax expense or benefit.

Fiscal-year 2017 balance sheet highlights
The Company’s cash balance and outstanding debt at April 28, 2017 were $210.9 million and $2.7 million, respectively, compared to $12.9 million and $339.1 million at the end of the prior year. The decrease in borrowings and increase in cash balance were the result of proceeds associated with the sale of BER.

Fiscal year 2018 outlook
Chief Administrative and Chief Financial Officer Mark Hood said, “We are initiating fiscal 2018 GAAP diluted earnings per share guidance in a range of $2.06 to $2.24. Additionally, we are providing fiscal 2018 guidance ranges for both net sales and EBITDA that are consistent with the preliminary fiscal 2018 guidance of $470 million and $105 million, respectively, that we issued on January 24, 2017.”


4

Guidance Metric
FY ‘18
Net sales
$464 to $476 million
EBITDA
$102 to $108 million
GAAP diluted earnings per share
$2.06 to $2.24
Sow cost (per hundredweight)
$43 to $46
Capital expenditures
$25 to $30 million
Net interest expense
$3.8 to $4.3 million
GAAP tax rate
34.5% to 35.5%
Diluted weighted-average share count
approximately 20.4 million shares
Share repurchase authorization
$100 million

This outlook is subject to a number of factors beyond the Company’s control, including the risk factors discussed in the Company’s fiscal 2017 Annual Report on Form 10‑K and its other subsequent filings with the Securities and Exchange Commission.

Investor Conference Call
The Company will host a conference call today, Thursday, June 15, 2017 to discuss its fourth quarter and fiscal year 2017 results at 8:30 a.m. Eastern Time.

The call can be accessed live over the telephone by dialing (855) 468-0551, or for international callers (484) 756-4323, access code 5876489. A replay will be available shortly after the call and can be accessed by dialing (855) 859-2056, or for international callers (404) 537-3406, access code 5876489.

Interested parties may also listen to a simultaneous webcast available on the Company’s website at http://investors.bobevans.com/events.cfm. The webcast will be archived in the same location for approximately 90 days following the call.

(1) EBITDA and other non-GAAP financial measures
We define EBITDA as earnings before interest, taxes, depreciation and amortization including stock compensation. Management uses EBITDA and the other non-GAAP measures included in this release as key metrics in the evaluation of underlying Company performance and in making financial, operating and planning decisions. The Company believes these measures are useful to investors because they increase transparency, assist investors in understanding the underlying performance of the Company and assist in the analysis of ongoing operating trends. We believe EBITDA is frequently used by analysts, investors and other interested parties in their evaluation of the Company’s performance as compared to our competitors, many of which present EBITDA measures when reporting their results. We believe the non-GAAP measures used in this release provide meaningful supplemental information regarding financial performance by excluding certain expenses and benefits that may not be indicative of core business operating results. We believe these non-GAAP measures, when viewed in conjunction with U.S. GAAP results and the accompanying reconciliations, enhance the comparability of results against prior periods and allow for greater transparency of financial results and business outlook. The presentation of EBITDA and other non-GAAP measures included in this release should not be considered as an alternative to net income, determined in accordance with U.S. GAAP, as an indicator of the Company’s operating performance, as an indicator of cash flows, or as a measure of liquidity. While EBITDA and our other non-GAAP measures are frequently used as measures of operations, they are not necessarily comparable to other similarly titled captions of other companies due to the potential inconsistencies in the method of calculation.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

5

Certain statements in this news release that are not historical facts are forward-looking statements. Forward-looking statements involve various important assumptions, risks and uncertainties. Actual results may differ materially from those predicted by the forward-looking statements because of various factors and possible events. Additional information about the factors and events that could cause actual results to differ materially from those predicted by the forward looking statements, along with certain other risks, uncertainties and assumptions related to the Company and its business, may be found in our Annual Report on Form 10-K for the fiscal year ended April 28, 2017, and in our other filings with the Securities and Exchange Commission. We note these factors for investors as contemplated by the Private Securities Litigation Reform Act of 1995. Predicting or identifying all such risk factors is impossible. Consequently, investors should not consider any such list to be a complete set of all potential risks and uncertainties. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update any forward-looking statement to reflect circumstances or events that occur after the date of the statement to reflect unanticipated events. All subsequent written and oral forward-looking statements attributable to us or any person acting on behalf of the Company are qualified by the cautionary statements in this section.

About Bob Evans Farms, Inc.
Bob Evans Farms, Inc. is a leading producer and distributor of refrigerated potato, pasta and vegetable-based side dishes, pork sausage, and a variety of refrigerated and frozen convenience food items under the Bob Evans and Owens brand names. For more information about Bob Evans Farms, Inc., visit www.bobevansgrocery.com.
 

Contact:
Scott Van Winkle
Managing Director, ICR
(617) 956-6736
scott.vanwinkle@icrinc.com



6


Bob Evans Farms, Inc.
Earnings Release Fact Sheet (unaudited)
Fourth quarter Fiscal 2017 compared to the corresponding period a year ago:
(in thousands, except per share amounts)
 
 
 
 
Basic EPS
 
Diluted EPS
 
Three Months Ended
 
Three Months Ended
 
Three Months Ended
 
April 28, 2017
 
April 29, 2016
 
April 28, 2017
 
April 29, 2016
 
April 28, 2017
 
April 29, 2016
Operating Income (Loss) as Reported
 
 
 
 
 
 
 
 
 
 
 
Operating Income from Continuing Operations
$
9,508

 
$
10,334

 
 
 
 
 
 
 
 
Net Interest Expense
4,254

 
2,571

 
 
 
 
 
 
 
 
Income Before Taxes from Continuing Operations
5,254

 
7,763

 
 
 
 
 
 
 
 
(Benefit) Provision for Income Taxes from Continuing Operations
(1,503
)
 
1,831

 
 
 
 
 
 
 
 
Net Income as Reported from Continuing Operations
6,757

 
5,932

 
$
0.34

 
$
0.30

 
$
0.33

 
$
0.30

 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) Before Taxes from Discontinued Operations
160,662

 
(12,242
)
 
 
 
 
 
 
 
 
Provision (Benefit) for Income Taxes from Discontinued Operations
58,552

 
(6,891
)
 
 
 
 
 
 
 
 
Income (Loss) from Discontinued Operations as Reported
102,110

 
(5,351
)
 
$
5.13

 
$
(0.27
)
 
$
5.06

 
$
(0.27
)
 
 
 
 
 
 
 
 
 
 
 
 
Net Income as Reported
108,867

 
581

 
$
5.47

 
$
0.03

 
$
5.39

 
$
0.03

 
 
 
 
 
 
 
 
 
 
 
 
Adjustments to Continuing Operations
 
 
 
 
 
 
 
 
 
 
 
Accelerated stock compensation
3,992

 
—

 
 
 
 
 
 
 
 
Legal and professional fees
646

 
—

 
 
 
 
 
 
 
 
Severance/Restructuring
(305
)
 
972

 
 
 
 
 
 
 
 
Write off of unamortized debt costs
2,005

 
—

 
 
 
 
 
 
 
 
Total Adjustments to Continuing Operations
6,338

 
972

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjustments to Discontinued Operations
 
 
 
 
 
 
 
 
 
 
 
Gain on sale of restaurants
(155,698
)
 
—

 
 
 
 
 
 
 
 
Restaurant depreciation
(11,846
)
 
—

 
 
 
 
 
 
 
 
Accelerated stock compensation
6,513

 
—

 
 
 
 
 
 
 
 
Severance
2,464

 
193

 
 
 
 
 
 
 
 
Impairment
—

 
6,710

 
 
 
 
 
 
 
 
Sale leaseback
—

 
9,560

 
 
 
 
 
 
 
 
Litigation settlement
—

 
(3,344
)
 
 
 
 
 
 
 
 
Store closure costs
—

 
1,441

 
 
 
 
 
 
 
 
Write off of unamortized debt costs
973

 
—

 
 
 
 
 
 
 
 
Total Adjustments to Discontinued Operations
(157,594
)
 
14,560

 
 
 
 
 
 
 
 
 

 

 
 
 
 
 
 
 
 
Non-GAAP Operating Income from Continuing Operations
13,841

 
11,306

 
 
 
 
 
 
 
 
Non-GAAP Net Interest Expense
2,249

 
2,571

 
 
 
 
 
 
 
 
Non-GAAP Income Before Taxes from Continuing Operations
11,592

 
8,735

 
 
 
 
 
 
 
 
Adjustments to Tax Expense from Continuing Operations
1,378

 
421

 
 
 
 
 
 
 
 
Non-GAAP Provision for Income Taxes from Continuing Operations
(125
)
 
2,252

 
 
 
 
 
 
 
 
Non-GAAP Net Income from Continuing Operations
11,717

 
6,483

 
$
0.59

 
$
0.33

 
$
0.58

 
$
0.32

 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP Income before taxes from Discontinued Operations
3,068

 
2,318

 
 
 
 
 
 
 
 
Adjustments to Tax Expense from Discontinued Operations
(55,985
)
 
6,161

 
 
 
 
 
 
 
 
Non-GAAP Provision for Income Taxes from Discontinued Operations
2,567

 
(730
)
 
 
 
 
 
 
 
 
Non-GAAP Net Income from Discontinued Operations
501

 
3,048

 
$
0.02

 
$
0.15

 
$
0.03

 
$
0.16

 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP Net Income
$
12,218

 
$
9,531

 
$
0.61

 
$
0.48

 
$
0.61

 
$
0.48

 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average Shares Outstanding
 
 
 
 
19,896

 
19,854

 
20,188

 
19,995



7


Fourth quarter Fiscal 2017 compared to the corresponding period a year ago:
(in thousands)
 
Consolidated Results
 
 
Three Months Ended
 
Three Months Ended
 
 
April 28, 2017
 
% of Sales
 
April 29, 2016
 
% of Sales
Operating Income from Continuing Operations as Reported
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
$
99,923

 
 
 
$
102,394

 
 
Cost of sales
 
43,649

 
43.7
%
 
44,810

 
43.8
%
Operating wage and fringe benefit expenses
 
8,832

 
8.8
%
 
10,991

 
10.7
%
Other operating expenses
 
14,030

 
14.0
%
 
14,746

 
14.4
%
Selling, general and administrative expenses
 
17,064

 
17.2
%
 
16,436

 
16.0
%
Depreciation and amortization expense
 
6,840

 
6.8
%
 
5,077

 
5.0
%
Impairments
 
—

 
—
%
 
—

 
—
%
Total Operating Income as Reported
 
9,508

 
9.5
%
 
10,334

 
10.1
%
 
 
 
 
 
 
 
 
 
Non-GAAP Adjustments to Continuing Operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
—

 
 
 
—

 
 
Cost of sales
 
—

 
 
 
—

 
 
Operating wage and fringe benefit expenses
 
—

 
 
 
—

 
 
Other operating expenses
 
—

 
 
 
—

 
 
Selling, general and administrative expenses
 
(4,333
)
 
 
 
(972
)
 
 
Depreciation and amortization expense
 
—

 
 
 
—

 
 
Impairments
 
—

 
 
 
—

 
 
Total Adjustments
 
4,333

 
 
 
972

 
 
 
 
 
 
 
 
 
 
 
Non-GAAP Operating Income from Continuing Operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
99,923

 
 
 
102,394

 
 
Cost of sales
 
43,649

 
43.7
%
 
44,810

 
43.8
%
Operating wage and fringe benefit expenses
 
8,832

 
8.8
%
 
10,991

 
10.7
%
Other operating expenses
 
14,030

 
14.0
%
 
14,746

 
14.4
%
Selling, general and administrative expenses
 
12,731

 
12.8
%
 
15,464

 
15.1
%
Depreciation and amortization expense
 
6,840

 
6.8
%
 
5,077

 
5.0
%
Impairments
 
—

 
—
%
 
—

 
—
%
Total Non-GAAP Operating Income
 
$
13,841

 
13.9
%
 
$
11,306

 
11.0
%

























8


Bob Evans Farms, Inc.
Earnings Release Fact Sheet (unaudited)
Fiscal 2017 compared to the corresponding period a year ago:
(in thousands, except per share amounts)
 
 
 
 
Basic EPS
 
Diluted EPS
 
Twelve Months Ended
 
Twelve Months Ended
 
Twelve Months Ended
 
April 28, 2017
 
April 29, 2016
 
April 28, 2017
 
April 29, 2016
 
April 28, 2017
 
April 29, 2016
Operating Income (Loss) as Reported
 
 
 
 
 
 
 
 
 
 
 
Operating Income
$
30,126

 
$
33,074

 
 
 
 
 
 
 
 
Net Interest Expense
9,216

 
10,427

 
 
 
 
 
 
 
 
Income Before Taxes from Continuing Operations
20,910

 
22,647

 
 
 
 
 
 
 
 
Provision for Income Taxes from Continuing Operations
3,874

 
6,439

 
 
 
 
 
 
 
 
Net Income as Reported from Continuing Operations
17,036

 
16,208

 
$
0.86

 
$
0.76

 
$
0.85

 
$
0.75

 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) Before Taxes from Discontinued Operations
166,952

 
2,774

 
 
 
 
 
 
 
 
Provision (Benefit) for Income Taxes from Discontinued Operations
57,521

 
(5,240
)
 
 
 
 
 
 
 
 
Income (Loss) from Discontinued Operations as Reported
109,431

 
8,014

 
$
5.51

 
$
0.38

 
$
5.43

 
$
0.38

 
 
 
 
 
 
 
 
 
 
 
 
Net Income as Reported
126,467

 
24,222

 
$
6.37

 
$
1.14

 
$
6.28

 
$
1.13

 
 
 
 
 
 
 
 
 
 
 
 
Adjustments to Continuing Operations
 
 
 
 
 
 
 
 
 
 
 
Accelerated stock compensation
4,467

 
—

 
 
 
 
 
 
 
 
Severance/Restructuring
1,948

 
972

 
 
 
 
 
 
 
 
Legal and professional fees
1,217

 
—

 
 
 
 
 
 
 
 
Sale leaseback (plants)
—

 
4,085

 
 
 
 
 
 
 
 
Impairment of note receivable
15,256

 
—

 
 
 
 
 
 
 
 
Write off of unamortized debt costs
2,005

 
—

 
 
 
 
 
 
 
 
Accretion income on note receivable
(1,133
)
 
—

 
 
 
 
 
 
 
 
Total Adjustments to Continuing Operations
23,760

 
5,057

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjustments to Discontinued Operations
 
 
 
 
 
 
 
 
 
 
 
Gain on sale of restaurants, net of transaction costs
(150,167
)
 
—

 
 
 
 
 
 
 
 
Restaurant depreciation
(11,846
)
 
—

 
 
 
 
 
 
 
 
Accelerated stock compensation
6,855

 
—

 
 
 
 
 
 
 
 
Severance
3,964

 
512

 
 
 
 
 
 
 
 
Impairment
—

 
6,710

 
 
 
 
 
 
 
 
Sale leaseback (restaurants)
—

 
9,562

 
 
 
 
 
 
 
 
Litigation settlement
(278
)
 
7,155

 
 
 
 
 
 
 
 
Store closure costs
807

 
1,441

 
 
 
 
 
 
 
 
Write off of unamortized debt costs
973

 
—

 
 
 
 
 
 
 
 
Total Adjustments to Discontinued Operations
(149,692
)
 
25,380

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP Operating Income from Continuing Operations
53,014

 
37,652

 
 
 
 
 
 
 
 
Non-GAAP Net Interest Expense
8,344

 
9,948

 
 
 
 
 
 
 
 
Non-GAAP Income Before Taxes from Continuing Operations
44,670

 
27,704

 
 
 
 
 
 
 
 
Adjustments to Tax Expense from Continuing Operations
7,713

 
1,922

 
 
 
 
 
 
 
 
Non-GAAP Provision for Income Taxes from Continuing Operations
11,587

 
8,361

 
 
 
 
 
 
 
 
Non-GAAP Net Income from Continuing Operations
33,083

 
19,343

 
$
1.67

 
$
0.91

 
$
1.64

 
$
0.90

 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP Income before Taxes from Discontinued Operations
17,260

 
28,154

 
 
 
 
 
 
 
 
Adjustments to Tax Expense from Discontinued Operations
(55,125
)
 
9,371

 
 
 
 
 
 
 
 
Non-GAAP Provision for Income Taxes from Discontinued Operations
2,396

 
4,131

 
 
 
 
 
 
 
 
Non-GAAP Net Income from Discontinued Operations
14,864

 
24,023

 
$
0.75

 
$
1.12

 
$
0.74

 
$
1.12

 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP Net Income
$
47,947

 
$
43,366

 
$
2.42

 
$
2.03

 
$
2.38

 
$
2.02

 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average Shares Outstanding
 
 
 
 
19,839

 
21,336

 
20,132

 
21,494





9


Fiscal 2017 compared to the corresponding period a year ago:
(in thousands)
Consolidated Results
 
Twelve Months Ended
 
April 28, 2017
 
% of Sales
 
April 29, 2016
 
% of Sales
Operating Income from Continuing Operations as Reported
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
$
394,842

 
 
 
$
387,616

 
 
Cost of sales
170,820

 
43.3
%
 
172,973

 
44.6
%
Operating wage and fringe benefit expenses
39,964

 
10.1
%
 
42,189

 
10.9
%
Other operating expenses
58,402

 
14.8
%
 
52,387

 
13.5
%
Selling, general and administrative expenses
56,243

 
14.2
%
 
65,949

 
17.1
%
Depreciation and amortization expense
24,031

 
6.1
%
 
21,044

 
5.4
%
Impairments
15,256

 
3.9
%
 
—

 
—
%
Total Operating Income as Reported
30,126

 
7.6
%
 
33,074

 
8.5
%
 
 
 
 
 
 
 
 
Non-GAAP Adjustments to Continuing Operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
—

 
 
 
—

 
 
Cost of sales
—

 
 
 
—

 
 
Operating wage and fringe benefit expenses
—

 
 
 
—

 
 
Other operating expenses
—

 
 
 
—

 
 
Selling, general and administrative expenses
(7,632
)
 
 
 
(4,577
)
 
 
Depreciation and amortization expense
—

 
 
 
—

 
 
Impairments
(15,256
)
 
 
 
—

 
 
Total Adjustments
22,888

 
 
 
4,577

 
 
 
 
 
 
 
 
 
 
Non-GAAP Operating Income from Continuing Operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
394,842

 
 
 
387,616

 
 
Cost of sales
170,820

 
43.3
%
 
172,973

 
44.6
%
Operating wage and fringe benefit expenses
39,964

 
10.1
%
 
42,189

 
10.9
%
Other operating expenses
58,402

 
14.8
%
 
52,387

 
13.5
%
Selling, general and administrative expenses
48,611

 
12.3
%
 
61,372

 
15.9
%
Depreciation and amortization expense
24,031

 
6.1
%
 
21,044

 
5.4
%
Impairments
—

 
—
%
 
—

 
—
%
Total Non-GAAP Operating Income
$
53,014

 
13.4
%
 
$
37,651

 
9.7
%











10


Consolidated Statements of Net Income
 
2017
 
2016
 
2015
Net Sales
$
394,842

 
$
387,616

 
$
379,313

Cost of sales
170,820

 
172,973

 
199,067

Operating wage and fringe benefit expenses
39,964

 
42,189

 
41,717

Other operating expenses
58,402

 
52,387

 
49,381

Selling, general and administrative expenses
56,243

 
65,949

 
73,380

Depreciation and amortization expense
24,031

 
21,044

 
18,364

Impairments
15,256

 
—

 
2,761

Operating Income (Loss)
30,126

 
33,074

 
(5,357
)
Net interest expense
9,216

 
10,427

 
8,649

Income (Loss) from Continuing Operations Before Income Taxes
20,910

 
22,647

 
(14,006
)
Provision (Benefit) for income taxes
3,874

 
6,439

 
(8,626
)
Income (Loss) from Continuing Operations
17,036

 
16,208

 
(5,380
)
Income from Discontinued Operations, Net of Income Taxes
109,431

 
8,014

 
21,933

Net Income
$
126,467

 
$
24,222

 
$
16,553

 
 
 
 
 
 
Earnings (Loss) Per Share - Income from Continuing Operations
 
 
 
 
 
Basic
$
0.86

 
$
0.76

 
$
(0.23
)
Diluted
$
0.85

 
$
0.75

 
$
(0.23
)
 
 
 
 
 
 
Earnings Per Share - Income from Discontinued Operations
 
 
 
 
 
Basic
$
5.51

 
$
0.38

 
$
0.93

Diluted
$
5.43

 
$
0.38

 
$
0.93

 
 
 
 
 
 
Earnings Per Share - Net Income
 
 
 
 
 
Basic
$
6.37

 
$
1.14

 
$
0.70

Diluted
$
6.28

 
$
1.13

 
$
0.70

 
 
 
 
 
 
Cash Dividends Paid Per Share
$
1.36

 
$
1.30

 
$
1.24

 
 
 
 
 
 
Weighted Average Shares Outstanding
 
 
 
 
 
Basic
19,839

 
21,336

 
23,489

Dilutive Shares
293

 
158

 
160

Diluted
20,132

 
21,494

 
23,649






11


Consolidated Balance Sheets
 
April 28, 2017
 
April 29, 2016
Assets
Current Assets
 
 
 
Cash and equivalents
$
210,886

 
$
11,609

Accounts receivable, net
28,071

 
24,613

Inventories
17,210

 
17,093

Federal and state income taxes receivable
2,895

 
—

Prepaid expenses and other current assets
6,833

 
5,716

Current assets held for sale
3,334

 
48,707

Total Current Assets
269,229

 
107,738

Land
291

 
330

Buildings and improvements
25,351

 
21,203

Machinery and equipment
214,366

 
176,611

Construction in process
4,546

 
20,959

Total Property, Plant and Equipment
244,554

 
219,103

Less accumulated depreciation
113,814

 
89,851

Net Property, Plant and Equipment
130,740

 
129,252

Other Assets
 
 
 
Deposits and other
2,118

 
3,841

Notes receivable
—

 
20,886

Rabbi trust assets
22,353

 
20,662

Goodwill and other intangible assets
19,673

 
19,829

Deferred income tax assets
5,131

 
29,002

Non-current assets held for sale
—

 
469,164

Total Other Assets
49,275

 
563,384

Total Assets
$
449,244

 
$
800,374

Liabilities and Stockholders’ Equity
Current Liabilities
 
 
 
Current portion of long-term debt
$
428

 
$
3,419

Accounts payable
13,424

 
15,841

Accrued property, plant and equipment purchases
1,283

 
4,024

Accrued non-income taxes
3,353

 
890

Accrued wages and related liabilities
16,404

 
16,370

Self-insurance reserves
10,692

 
11,288

Current taxes payable
27,954

 
9,473

Current reserve for uncertain tax positions
1,481

 
1,481

Other accrued expenses
17,905

 
13,614

Current liabilities held for sale
—

 
89,157

Total Current Liabilities
92,924

 
165,557

Non-Current Liabilities
 
 
 
Deferred compensation
17,277

 
17,761

Reserve for uncertain tax positions
1,795

 
2,752

Deferred income tax liabilities
50

 
—

Deferred rent and other
1,091

 
377

Deferred gain on sale leaseback transactions
2,192

 
2,432

Credit facility borrowings and other long-term debt
2,267

 
335,638

Non-current liabilities held for sale
—

 
59,413

Total Non-Current Liabilities
24,672

 
418,373

Stockholders’ Equity
 
 
 
Common stock, $.01 par value; authorized 100,000 shares; issued 42,638 shares at April 28, 2017, and April 29, 2016
426

 
426

Capital in excess of par value
260,619

 
244,304

Retained earnings
931,315

 
832,323

Treasury stock, 22,842 shares at April 28, 2017, and 22,881 shares at April 29, 2016, at cost
(860,712
)
 
(860,609
)
Total Stockholders’ Equity
331,648

 
216,444

Total Liabilities and Stockholders' Equity
$
449,244

 
$
800,374



12


Consolidated Statements of Cash Flows
 
2017
 
2016
 
2015
Operating activities:
 
 
 
 
 
Net income
$
126,467

 
$
24,222

 
$
16,553

 
 
 
 
 
 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
Depreciation and amortization
60,090

 
79,607

 
80,074

Impairments
15,256

 
8,384

 
8,861

(Gain) Loss on disposal of fixed assets
(168,859
)
 
4,532

 
2,204

(Gain) Loss on rabbi trust assets
(1,691
)
 
1,640

 
(742
)
Loss (Gain) on deferred compensation
2,514

 
(765
)
 
2,013

Share-based compensation
17,197

 
6,127

 
2,967

Accretion of non-current note receivable
(1,133
)
 
(2,082
)
 
(1,859
)
Deferred income taxes
23,921

 
(28,384
)
 
(14,791
)
Amortization of deferred financing costs
4,201

 
2,188

 
1,099

Cash provided by (used for) assets and liabilities:
 
 
 
 
 
Accounts receivable
(2,700
)
 
(2,793
)
 
4,588

Inventories
(751
)
 
(377
)
 
623

Prepaid expenses and other current assets
(1,377
)
 
483

 
(563
)
Accounts payable
(10,281
)
 
7,499

 
955

Federal and state income taxes
14,629

 
33,067

 
1,504

Accrued wages and related liabilities
(1,160
)
 
(3,101
)
 
11,005

Self-insurance
(1,474
)
 
1,269

 
(974
)
Accrued non-income taxes
(756
)
 
745

 
(2,892
)
Deferred revenue
(337
)
 
433

 
747

Other assets and liabilities
(198
)
 
(9,058
)
 
(8,267
)
Net cash provided by operating activities
73,558

 
123,636

 
103,105

Investing activities:
 
 
 
 
 
Purchase of property, plant and equipment
(65,768
)
 
(65,694
)
 
(74,517
)
Proceeds from sale of property, plant and equipment
557,061

 
257,246

 
10,036

Proceeds from liquidation of rabbi trust assets
—

 
5,245

 
—

Deposits and other
330

 
(537
)
 
(135
)
Net cash provided by (used in) investing activities
491,623

 
196,260

 
(64,616
)
Financing activities:
 
 
 
 
 
Cash dividends paid
(26,915
)
 
(27,861
)
 
(29,056
)
Gross proceeds from credit facility borrowings and other long-term debt
413,268

 
672,349

 
579,895

Gross repayments of credit facility borrowings and other long-term debt
(750,668
)
 
(783,339
)
 
(588,541
)
Payments of debt issuance costs
(1,542
)
 
(3,555
)
 
(1,279
)
Purchase of treasury stock
—

 
(171,513
)
 
—

Proceeds from share-based compensation
518

 
214

 
534

Cash paid for taxes on share-based compensation
(1,353
)
 
(1,314
)
 
(1,738
)
Excess tax benefits from share-based compensation
(499
)
 
1,661

 
228

Net cash (used in) financing activities
(367,191
)
 
(313,358
)
 
(39,957
)
Net cash provided by (used in) operations
197,990

 
6,538

 
(1,468
)
Cash and equivalents at the beginning of the period
12,896

 
6,358

 
7,826

Cash and equivalents at the end of the period
$
210,886

 
$
12,896

 
$
6,358





13


Results from continuing and discontinued operations
(in thousands except earnings per share amounts)
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Twelve Months Ended
GAAP Consolidated Results
 
April 28, 2017
 
April 29, 2016
 
% Change
 
April 28, 2017
 
April 29, 2016
 
% Change
Net Sales from Continuing Operations
 
$
99,923

 
$
102,394

 
(2.4
)%
 
$
394,842

 
$
387,616

 
1.9
 %
Net Sales from Discontinued Operations
 
213,479

 
243,193

 
(12.2
)%
 
876,786

 
951,211

 
(7.8
)%
Total Net Sales
 
$
313,402

 
$
345,587

 
(9.3
)%
 
$
1,271,628

 
$
1,338,827

 
(5.0
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Margin from Continuing Operations
 
9.5
 %
 
10.1
 %
 
(60 bps)

 
7.6
 %
 
8.5
%
 
(90 bps)

Operating Margin from Discontinued Operations
 
2.8
 %
 
(4.9
)%
 
770 bps

 
2.2
 %
 
0.3
%
 
180 bps

Total Operating Margin
 
4.9
 %
 
(0.4
)%
 
530 bps

 
3.9
 %
 
2.7
%
 
120 bps

 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted EPS from Continuing Operations
 
$
0.33

 
$
0.30

 
10.0
 %
 
$
0.85

 
$
0.75

 
13.3
 %
Diluted EPS from Discontinued Operations
 
$
5.06

 
$
(0.27
)
 
(1,974.1
)%
 
$
5.43

 
$
0.38

 
1,328.9
 %
Diluted EPS
 
$
5.39

 
$
0.03

 
17,866.7
 %
 
$
6.28

 
$
1.13

 
455.8
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP Adjustments
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales from Continuing Operations
 
$
—

 
$
—

 
—
 %
 
$
—

 
$
—

 
—
 %
Net Sales from Discontinued Operations
 
—

 
—

 
—
 %
 
—

 
—

 
—
 %
Total Net Sales
 
$
—

 
$
—

 
—
 %
 
$
—

 
$
—

 
—
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Margin from Continuing Operations
 
4.3
 %
 
0.9
 %
 
340 bps

 
5.8
 %
 
1.2
%
 
460 bps

Operating Margin from Discontinued Operations
 
(1.3
)%
 
6.0
 %
 
(730 bps)

 
(0.1
)%
 
2.7
%
 
(280 bps)

Total Operating Margin
 
0.5
 %
 
4.5
 %
 
(400 bps)

 
1.8
 %
 
2.2
%
 
(40 bps)

 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted EPS from Continuing Operations
 
$
0.25

 
$
0.02

 
1,150.0
 %
 
$
0.79

 
$
0.15

 
426.7
 %
Diluted EPS from Discontinued Operations
 
$
(5.03
)
 
$
0.43

 
(1,269.8
)%
 
$
(4.69
)
 
$
0.74

 
(733.8
)%
Diluted EPS
 
$
(4.78
)
 
$
0.45

 
(1,162.2
)%
 
$
(3.90
)
 
$
0.89

 
(538.2
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP Consolidated Results
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales from Continuing Operations
 
$
99,923

 
$
102,394

 
(2.4
)%
 
$
394,842

 
$
387,616

 
1.9
 %
Net Sales from Discontinued Operations
 
213,479

 
243,193

 
(12.2
)%
 
876,786

 
951,211

 
(7.8
)%
Total Net Sales
 
$
313,402

 
$
345,587

 
(9.3
)%
 
$
1,271,628

 
$
1,338,827

 
(5.0
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Margin from Continuing Operations
 
13.9
 %
 
11.0
 %
 
290 bps

 
13.4
 %
 
9.7
%
 
370 bps

Operating Margin from Discontinued Operations
 
1.4
 %
 
1.1
 %
 
30 bps

 
2.1
 %
 
3.0
%
 
(90 bps)

Total Operating Margin
 
5.4
 %
 
4.1
 %
 
130 bps

 
5.6
 %
 
4.9
%
 
70 bps

 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted EPS from Continuing Operations
 
$
0.58

 
$
0.32

 
81.3
 %
 
$
1.64

 
$
0.90

 
82.2
 %
Diluted EPS from Discontinued Operations
 
$
0.03

 
$
0.16

 
(81.3
)%
 
$
0.74

 
$
1.12

 
(33.9
)%
Diluted EPS
 
$
0.61

 
$
0.48

 
27.1
 %
 
$
2.38

 
$
2.02

 
17.8
 %


14


Net Sales from Continuing Operations
 
 
 
 
 
 
 
 
Reconciliation of 52 vs 53 weeks
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Twelve Months Ended
(in thousands)
 
April 28, 2017
 
April 29, 2016
 
April 28, 2017
 
April 29, 2016
Net Sales
 
$99,923
 
$102,394
 
$394,842
 
$387,616
53rd week
 
—
 
7,120
 
—
 
7,120
Adjusted Net Sales
 
$99,923
 
$95,274
 
$394,842
 
$380,496

Total pounds sold, by category
 
 
 
 
 
 
Fiscal 2017
 
 
 
 
 
 
 
 
 
 
Category
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Sides
 
51.4%
 
52.5%
 
52.5%
 
54.0%
 
52.6%
Sausage
 
21.2%
 
21.9%
 
24.9%
 
22.3%
 
22.7%
Food Service - External
 
11.6%
 
10.7%
 
10.1%
 
11.1%
 
10.8%
Food Service - Sales to discontinued operations
 
8.3%
 
9.0%
 
7.7%
 
7.7%
 
8.1%
Frozen
 
3.9%
 
3.4%
 
2.7%
 
3.0%
 
3.2%
Other
 
3.6%
 
2.5%
 
2.1%
 
1.9%
 
2.6%
 
 
 
 
 
 
 
 
 
 
 
Fiscal 2016
 
 
 
 
 
 
 
 
 
 
Category
 
Q1
 
Q2
 
Q3
 
Q4
 
FY 2016
Sides
 
49.6%
 
50.7%
 
50.9%
 
51.4%
 
50.7%
Sausage
 
22.0%
 
22.3%
 
26.6%
 
21.7%
 
23.3%
Food Service - External
 
14.1%
 
12.5%
 
10.4%
 
11.4%
 
11.9%
Food Service - Sales to discontinued operations
 
6.2%
 
6.6%
 
6.0%
 
8.1%
 
6.7%
Frozen
 
4.6%
 
4.5%
 
3.1%
 
3.9%
 
4.0%
Other
 
3.5%
 
3.4%
 
3.0%
 
3.5%
 
3.4%




















15
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