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

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): August 1, 2024

Utz Brands, Inc.
(Exact name of registrant as specified in its charter)

Delaware 001-38686 85-2751850
(State or other jurisdiction
of incorporation)		 (Commission File Number) (IRS Employer
Identification No.)

900 High Street
Hanover, PA 17331
(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: (717) 637-6644

N/A
(Former name or former address, 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:

☐ 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))

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, par value $0.0001 per shareUTZNew York Stock Exchange


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. ☐


Item 2.02 Results of Operations and Financial Condition.

On August 1, 2024, Utz Brands, Inc. (the "Company") announced via press release the Company’s financial results for the second quarter ended June 30, 2024. A copy of the Company’s press release is attached hereto as Exhibit 99.1 to this Current Report on Form 8-K and is hereby incorporated by reference into this Item 2.02. The information and exhibit contained in this Item 2.02 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 as amended (the “Exchange Act”), nor shall it be incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), except as shall be expressly set forth by specific reference in such filing.

Item 7.01 Regulation FD Disclosure

The Company will hold a conference call and webcast on August 1, 2024 (see information in the press release under “News” of the Company’s website https://investors.utzsnacks.com). A copy of the slide materials to be discussed at the conference call and webcast is being furnished pursuant to Regulation FD as Exhibit 99.2 to this Current Report on Form 8-K and is hereby incorporated by reference into this Item 7.01. The information and exhibit contained in this Item 7.01 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, nor shall it be incorporated by reference into any filing under the Securities Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.Description
104Cover Page Interactive Data File (embedded within the Inline XBRL document).


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.

Utz Brands, Inc.

Dated: August 1, 2024
By: /s/ Ajay Kataria
Name: Ajay Kataria
Title: Executive Vice President,
Chief Financial Officer and Chief Accounting Officer




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Utz Brands Reports Second Quarter 2024 Results and
Raises FY’24 Adjusted Earnings Per Share Outlook


Hanover, PA – August 1, 2024 – Utz Brands, Inc. (NYSE: UTZ) (“Utz” or the “Company”), a leading U.S. manufacturer of branded Salty Snacks and a small-cap value Staples equity, today reported financial results for the Company’s fiscal second quarter ended June 30, 2024.

2Q’24 Summary(1)
•Net Sales of $356.2 million
•Organic Net Sales increased 1.6%
•Gross Profit Margin expansion of 260bps
•Adjusted Gross Profit Margin expansion of 260bps
•Net Income of $25.4 million
•Adjusted EBITDA increased 10.0% to $49.7 million
•Earnings per share of $0.23
•Adjusted Earnings per share increased 46.2% to $0.19

(1) All comparisons for the second quarter of 2024 are compared to the second quarter ended July 2, 2023.
"I'm pleased with our continued strong momentum in the second quarter, as we gained dollar, pound, and unit share in the Salty Snack category for the third consecutive quarter. In addition, we delivered our sixth consecutive quarter of year-over-year Adjusted EBITDA Margin expansion, driven by strong Adjusted Gross Profit Margin growth, and we increased Adjusted Earnings per Share by 46%," said Howard Friedman, Chief Executive Officer of Utz. "We made necessary adjustments to our promotional activities during the quarter to address consumer value expectations. Our accelerated productivity cost savings provide us the flexibility to both continue to expand our margins and increase investments behind our brands to support our geographic expansion. We expect our growth opportunities will drive strong volume growth in the second half of the year."

Second Quarter 2024 Results

Second quarter net sales were $356.2 million compared to $362.9 million in the prior year period. The divestiture of the R.W. Garcia® and Good Health® brands impacted net sales growth by (3.3%), and the Company’s continued shift to independent operators (IOs) and the resulting increase in sales discounts impacted net sales growth by an estimated (0.1%). Organic Net Sales increased 1.6% led by increased volume/mix of 2.3% driven by strong growth of the Company’s Power Brands, partially offset by lower net price realization of (0.7%).

For the 13-week period ended June 30, 2024, the Company’s retail sales, as measured by Circana MULO-C, increased 1.1% versus the prior-year period led by volume growth of 3.2%. The Company’s total Power Brands’ retail sales increased 1.7% versus the prior-year period and the Company’s Power Four Brands of Utz®, On The Border®, Zapp’s® and Boulder Canyon® increased 2.8%.

Gross profit margin of 35.0% expanded 260bps compared to 32.4% in the prior year period. Adjusted Gross Profit Margin of 37.6% also expanded 260bps compared to 35.0% in the prior year period as the benefits from productivity and favorable sales volume/mix more than offset supply chain cost inflation, investments to support the Company’s productivity initiatives and lower pricing. The continued shift to IOs impacted Adjusted Gross Profit Margin by approximately 10bps, but with offsetting benefits in Selling, Distribution, and Administrative (SD&A) expense.





SD&A expenses were $104.6 million compared to $114.5 million in the prior year period. Adjusted SD&A Expenses were $84.5 million compared to $81.7 million in the prior year period primarily due to increased marketing spend, higher distribution costs, and investments in capabilities. These expenses were partially offset by productivity benefits.

The Company reported net income of $25.4 million compared to a net loss of $(8.6) million in the prior year period. Adjusted Net Income in the quarter increased 46.3% to $27.5 million compared to $18.8 million in the prior year period. Adjusted Earnings per share increased 46.2% to $0.19 compared to $0.13 in the prior year period. The Adjusted Earnings per share growth in the second quarter was the result of operating earnings growth, lower core depreciation and amortization expense, and lower interest expense as a result of increased long-term debt repayment.

Adjusted EBITDA increased 10.0% to $49.7 million, or 14.0% as a percentage of net sales, compared to $45.2 million, or 12.5% as a percentage of net sales, in the prior year period. The Adjusted EBITDA margin improvement was driven by Adjusted Gross Margin expansion primarily due to the Company’s productivity programs.

Balance Sheet and Cash Flow Highlights

•As of June 30, 2024
◦Total liquidity of $196.9 million, consisting of cash on hand of $66.6 million and $130.3 million available under the Company’s revolving credit facility.
◦Net debt of $747.5 million resulting in a Net Leverage Ratio of 3.8x based on trailing twelve months Normalized Adjusted EBITDA of $194.6 million.
◦In April 2024, the Company:
▪Used ~$9.0 million of net proceeds from its most recent plant dispositions to pay down long-term debt and increased its cash balance by ~$5.0 million resulting in a ~$14.0 million reduction of net debt.
▪Completed a repricing of its $630 million Term Loan which reduced the applicable interest rate on the Term Loan by approximately 36 bps (assuming one-month SOFR) from Term SOFR plus a credit spread adjustment plus 3.00% to Term SOFR plus 2.75%.
▪The Company estimates that the combination of the ~$9.0 million debt paydown and the repricing of the Term Loam will result in cash interest expense savings of ~$3.0 million annually.

•For the twenty-six weeks ended June 30, 2024
◦Cash flow used in operations was $(0.2) million, which reflects the seasonal use of working capital, and also includes an approximately $30 million impact from the sale of Good Health® and R.W. Garcia®, and the manufacturing facilities.
◦Capital expenditures were $37.8 million, and dividend and distributions paid were $18.9 million.

Fiscal Year 2024 Outlook

•The Company is modestly revising its outlook for Organic Net Sales growth from ~3% or better to now ~3%. The revised outlook is due to a more moderate growth outlook for the Salty Snack Category. The Company continues to expect Organic Net Sales growth driven by volume growth, fueled by increased marketing investments, product innovation, already achieved distribution gains, and an easier second half growth comparison. The Company’s outlook also assumes net sales will be impacted by ~$45 million due to the sale of the Good Health® and R.W. Garcia® brands.

•The Company is reaffirming its outlook for Adjusted EBITDA growth of 5%-8% and assumes the estimated impact of the forgone profit contribution from the brands divested in February 2024 are mostly offset by accelerated cost savings and the transition services agreement.





•The Company is raising its outlook for Adjusted Earnings per Share growth from 23%-28%, to 28%-32%. The improved growth rate expectation is the result of a more favorable effective tax rate and lower core depreciation and amortization expense resulting from the Company’s plant divestitures in April 2024.

The Company also expects:

•An effective tax rate (normalized GAAP basis tax expense, which excludes one-time items) in the range of 17%-19% (previously 18%-20%);
•Interest expense of ~$47 million (unchanged);
•Capital expenditures in the range of $80-$90 million (unchanged); and
•Net Leverage Ratio of ~3.6x (unchanged) at year-end fiscal 2024.

With respect to projected fiscal 2024 Organic Net Sales, Adjusted EBITDA and Adjusted Earnings Per Share, a quantitative reconciliation is not available without unreasonable efforts due to the high variability, complexity, and low visibility with respect to certain items which are excluded from Organic Net Sales, Adjusted EBITDA and Adjusted Earnings Per Share, respectively. We expect the variability of these items to have a potentially unpredictable, and potentially significant, impact on our future financial results.

Conference Call and Webcast Presentation

The Company has also posted a pre-recorded management discussion of its second quarter results to its website at https://investors.utzsnacks.com. In addition, the Company will host a live question and answer session with analysts at 8:00 a.m. Eastern Time today. Please visit the “Events & Presentations” section of Utz’s Investor Relations website at https://investors.utzsnacks.com to access the live listen-only webcast. Participants can also dial in over the phone by calling 1-888-596-4144. The Event Plus passcode is 3860587. The Company has also posted presentation slides and additional supplemental financial information, which are available now on Utz’s Investor Relations website.

About Utz Brands, Inc.

Utz Brands, Inc. (NYSE: UTZ) manufactures a diverse portfolio of savory snacks through popular brands, including Utz®, On The Border® Chips & Dips, Zapp’s®, and Boulder Canyon®, among others.

After a century with a strong family heritage, Utz continues to have a passion for exciting and delighting consumers with delicious snack foods made from top-quality ingredients. Utz's products are distributed nationally through grocery, mass merchandisers, club, convenience, drug, and other channels. Based in Hanover, Pennsylvania, Utz has multiple manufacturing facilities located across the U.S. to serve our growing customer base. For more information, please visit the Company’s website or call 1‐800‐FOR‐SNAX.

Investors and others should note that Utz announces material financial information to its investors using its Investor Relations website, U.S. Securities and Exchange Commission (the “Commission”) filings, press releases, public conference calls, and webcasts. Utz uses these channels, as well as social media, to communicate with our stockholders and the public about the Company, the Company’s products, and other Company information. It is possible that the information that Utz posts on social media could be deemed to be material information. Therefore, Utz encourages investors, the media, and others interested in the Company to review the information posted on the social media channels listed on Utz’s Investor Relations website.

Investor Contact
Kevin Powers
Utz Brands, Inc.
kpowers@utzsnacks.com

Media Contact
Kevin Brick




Utz Brands, Inc.
kbrick@utzsnacks.com

Forward-Looking Statements

This press release includes certain statements made herein that are not historical facts but are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. The forward-looking statements generally are accompanied by or include, without limitation, statements such as “will”, “expect”, “intends”, “goal” or other similar words, phrases or expressions. These forward-looking statements include future plans for the Company, the estimated or anticipated future results and benefits of the Company’s future plans and operations, plans related to transformation of the Company’s supply chain; the Company’s product mix; the Company’s ability to reduce debt and the anticipated interest expense savings from the repricing of the $630 million Term Loan; the Company’s cost savings plans and the Company’s logistics optimization efforts; the estimated or anticipated future results and benefits of the Company’s plans and operations; the effects of inflation or supply chain disruptions on the Company or its business; the benefits of the Company’s productivity initiatives, the effects of the Company’s marketing and innovation initiatives, future capital structure, future opportunities for the Company, statements regarding the Company’s projected balance sheet and liabilities, including net leverage, and other statements that are not historical facts. These statements are based on the current expectations of the Company’s management and are not predictions of actual performance. These statements are subject to a number of risks and uncertainties and the Company’s business and actual results may differ materially. Factors that may cause such differences include, but are not limited to: the risk that the Company’s gross profit margins may be adversely impacted by a variety of factors, including variations in raw materials pricing, retail customer requirements and mix, sales velocities and required promotional support; changes in consumers’ loyalty to the Company’s brands due to factors beyond the Company’s control, including changes in consumer spending due to factors such as increasing household debt; changes in demand for the Company’s products affected by changes in consumer preferences and tastes or if the Company is unable to innovate or market its products effectively, particularly in the Company’s Expansion geographies; costs associated with building brand loyalty and interest in the Company’s products which may be affected by actions by the Company’s competitors’ that result in the Company’s products not suitably differentiated from the products of their competitors; consolidation of key suppliers to the Company; inability of the Company to adopt efficiencies into its manufacturing processes, including automation and labor optimization, its network, including through plant consolidation and lowest landed cost for shipping its products, or its logistics operations; fluctuations in results of operations of the Company from quarter to quarter because of changes in promotional activities; the possibility that the Company may be adversely affected by other economic, business, or competitive factors; the risk that recently completed business combinations and other acquisitions recently completed by the Company (collectively, the “Business Combinations”) or dispositions that disrupt plans and operations; the ability to recognize the anticipated benefits of such Business Combinations or dispositions, which may be affected by, among other things, competition and the ability of the Company to grow and manage growth profitably and retain its key employees; the outcome of any legal proceedings that may be instituted against the Company following the consummation of such Business Combinations or dispositions; changes in applicable law or regulations; costs related to the Business Combinations or dispositions; the ability of the Company to maintain the listing of the Company’s Class A Common Stock on the New York Stock Exchange; the inability of the Company to develop and maintain effective internal controls; and other risks and uncertainties set forth in the section entitled “Risk Factors” and “Forward-Looking Statements” in the Company’s Annual Report on Form 10-K filed with the Commission, for the fiscal year ended December 31, 2023, and other reports filed by the Company with the Commission. In addition, forward-looking statements provide the Company’s expectations, plans or forecasts of future events and views as of the date of this communication. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this communication. The Company cautions investors not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as otherwise required by law.






Non-GAAP Financial Measures:

Utz uses non-GAAP financial information and believes it is useful to investors as it provides additional information to facilitate comparisons of historical operating results, identifies trends in our underlying operating results, and provides additional insight and transparency on how we evaluate the business. We use non-GAAP financial measures to budget, make operating and strategic decisions, and evaluate our performance. These non-GAAP financial measures do not represent financial performance in accordance with generally accepted accounted principles in the United States (GAAP) and may exclude items that are significant to understanding and assessing financial results. Therefore, these measures should not be considered in isolation or as an alternative to net income, cash flows from operations, earnings per share or other measures of profitability, liquidity, or performance under GAAP. You should be aware that the presentation of these measures may not be comparable to similarly titled measures used by other companies.

Management believes that non-GAAP financial measures should be considered as supplements to the GAAP measures reported, should not be considered replacements for, or superior to, the GAAP measures, and may not be comparable to similarly named measures used by other companies. The Company’s calculation of the non-GAAP financial measures may differ from methods used by other companies. We believe that these non-GAAP financial measures provide useful information to investors regarding certain financial and business trends relating to the financial condition and results of operations of the Company to date when considered with both the GAAP results and the reconciliations to the most comparable GAAP measures, and that the presentation of non-GAAP financial measures is useful to investors in the evaluation of our operating performance compared to other companies in the Salty Snack industry, as similar measures are commonly used by the companies in this industry. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. The non-GAAP financial measures are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures. As new events or circumstances arise, these definitions could change. When the definitions change, we will provide the updated definitions and present the related non-GAAP historical results on a comparable basis.

Utz uses the following non-GAAP financial measures in its financial communications, and in the future could use others:
•Organic Net Sales
•Adjusted Gross Profit
•Adjusted Gross Profit as % of Net Sales (Adjusted Gross Profit Margin)
•Adjusted Selling, Distribution, and Administrative Expense
•Adjusted Selling, Distribution, and Administrative Expense as % of Net Sales
•Adjusted Net Income
•Adjusted Earnings Per Share
•EBITDA
•Adjusted EBITDA
•Adjusted EBITDA as % of Net Sales (Adjusted EBITDA Margin)
•Normalized Adjusted EBITDA
•Net Leverage Ratio

Organic Net Sales is defined as net sales excluding the impacts of acquisitions, divestitures and IO route conversions.

Adjusted Gross Profit represents Gross Profit excluding Depreciation and Amortization expense, a non-cash item. In addition, Adjusted Gross Profit excludes the impact of costs that fall within the categories of non-cash adjustments and non-recurring items such as those related to stock-based compensation, hedging and purchase commitments adjustments, asset impairments, acquisition and integration costs, business transformation initiatives, and financing-related costs. Adjusted Gross Profit is one of the key performance indicators that our management uses to evaluate operating performance. We also report Adjusted Gross Profit as a percentage of Net Sales as an additional measure for investors to evaluate our Adjusted Gross Profit Margin on Net Sales.





Adjusted Selling, Distribution, and Administrative Expense is defined as all Selling, Distribution, and Administrative expense excluding Depreciation and Amortization expense, a non- cash item. In addition, Adjusted Selling, Distribution, and Administrative Expense excludes the impact of costs that fall within the categories of non-cash adjustments and non-recurring items such as those related to stock-based compensation, hedging and purchase commitments adjustments, asset impairments, acquisition and integration costs, business transformation initiatives, and financing-related costs. We also report Adjusted Selling, Distribution, and Administrative Expense as a percentage of Net Sales as an additional measure for investors to evaluate our Adjusted Selling, Distribution, and Administrative Margin on Net Sales.

Adjusted Net Income is defined as Net Income excluding the additional Depreciation and Amortization expense, a non-cash item, related to the Business Combination with Collier Creek Holdings and the acquisitions of Kennedy Endeavors, Kitchen Cooked, Inventure, Golden Flake, Truco Enterprises, R.W. Garcia and Festida. In addition, Adjusted Net Income is also adjusted to exclude deferred financing fees, interest income, and expense relating to IO loans and certain non-cash items, such as those related to stock-based compensation, hedging, and purchase commitments adjustments, asset impairments, acquisition and integration costs, business transformation initiatives, remeasurement of warrant liabilities and financing-related costs. Lastly, Adjusted Net Income normalizes the income tax provision to account for the above-mentioned adjustments.

Adjusted Earnings Per Share is defined as Adjusted Net Income (as defined, herein) divided by the weighted average shares outstanding for each period on a fully diluted basis, assuming the Private Placement Warrants are net settled and the Shares of Class V Common Stock held by Continuing Members are converted to Class A Common Stock.

EBITDA is defined as Net Income Before Interest, Income Taxes, and Depreciation and Amortization.

Adjusted EBITDA is defined as EBITDA further adjusted to exclude certain non-cash items, such as stock-based compensation, hedging and purchase commitments adjustments, asset impairments, acquisition and integration costs, business transformation initiatives; and financing-related costs. Adjusted EBITDA is one of the key performance indicators we use in evaluating our operating performance and in making financial, operating, and planning decisions. We believe Adjusted EBITDA is useful to the users of this release because the financial information contained in the release can be used in the evaluation of Utz’s operating performance compared to other companies in the Salty Snack industry, as similar measures are commonly used by companies in this industry. We also provide in this release, Adjusted EBITDA as a percentage of Net Sales, as an additional measure for readers to evaluate our Adjusted EBITDA Margin on Net Sales.

Normalized Adjusted EBITDA is defined as Adjusted EBITDA after giving effect to pre-acquisition Adjusted EBITDA for certain acquisitions and dispositions from time to time.

Net Leverage Ratio is defined as Normalized Adjusted EBITDA divided by Net Debt. Net Debt is defined as Gross Debt less Cash and Cash Equivalents.






Utz Brands, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
For the thirteen weeks ended June 30, 2024 and July 2, 2023
(In thousands, except share information)
(Unaudited)
(in thousands)Thirteen weeks ended June 30, 2024Thirteen weeks ended July 2, 2023
Net sales$356,190 $362,853 
Cost of goods sold231,436 245,460 
Gross profit124,754 117,393 
Selling, distribution, and administrative expenses
Selling and distribution73,780 66,869 
Administrative30,813 47,584 
Total selling, distribution, and administrative expenses104,593 114,453 
Gain (loss) on sale of assets, net2,373 (279)
Income from operations22,534 2,661 
Other income (expense), net
Interest expense(10,209)(15,019)
Loss on debt extinguishment(1,273)— 
Other income198 272 
Gain on remeasurement of warrant liability 12,888 2,808 
Other income (expense), net1,604 (11,939)
Income (loss) before taxes24,138 (9,278)
Income tax benefit(1,309)(725)
Net income (loss)25,447 (8,553)
Net (income) loss attributable to noncontrolling interest(5,599)4,429 
Net income (loss) attributable to controlling interest$19,848 $(4,124)
Income (loss) per Class A Common stock: (in dollars)
Basic$0.24 $(0.05)
Diluted$0.23 $(0.05)
Weighted-average shares of Class A Common stock outstanding
Basic81,457,014 81,063,457 
Diluted84,954,412 81,063,457 
Net income (loss)$25,447 $(8,553)
Other comprehensive (loss) income:
Change in fair value of interest rate swap(2,142)9,572 
Comprehensive income23,305 1,019 
Net comprehensive (income) loss attributable to noncontrolling interest(4,696)383 
Net comprehensive income attributable to controlling interest$18,609 $1,402 




Utz Brands, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
For the twenty-six weeks ended June 30, 2024 and July 2, 2023
(In thousands, except share information)
(Unaudited)
(in thousands)Twenty-six weeks ended June 30, 2024Twenty-six weeks ended July 2, 2023
Net sales$702,713 $714,286 
Cost of goods sold458,386 492,397 
Gross profit244,327 221,889 
Selling, distribution, and administrative expenses
Selling and distribution147,446 131,915 
Administrative66,595 88,624 
Total selling, distribution, and administrative expenses214,041 220,539 
Gain (loss) on sale of assets, net1,903 (787)
Income from operations32,189 563 
Other income (expense), net
Gain on sale of business44,015 — 
Interest expense(24,040)(29,397)
Loss on debt extinguishment(1,273)— 
Other income1,108 1,887 
Gain on remeasurement of warrant liability 1,080 576 
Other income (expense), net20,890 (26,934)
Income (loss) before taxes53,079 (26,371)
Income tax expense (benefit)25,236 (3,336)
Net income (loss)27,843 (23,035)
Net (income) loss attributable to noncontrolling interest(11,986)9,784 
Net income (loss) attributable to controlling interest$15,857 $(13,251)
Income (loss) per Class A Common stock: (in dollars)
Basic$0.19 $(0.16)
Diluted$0.19 $(0.16)
Weighted-average shares of Class A Common stock outstanding
Basic81,423,240 81,020,732 
Diluted84,762,662 81,020,732 
Net income (loss)$27,843 $(23,035)
Other comprehensive income (loss):
Change in fair value of interest rate swap2,517 (753)
Comprehensive income (loss)30,360 (23,788)
Net comprehensive (income) loss attributable to noncontrolling interest(13,048)10,105 
Net comprehensive income (loss) attributable to controlling interest$17,312 $(13,683)




Utz Brands, Inc.
CONSOLIDATED BALANCE SHEETS
June 30, 2024 and December 31, 2023
(In thousands, except per share information)

 As of
June 30, 2024		As of December 31, 2023
 (Unaudited)
ASSETS
Current Assets
Cash and cash equivalents$66,574 $52,023 
Accounts receivable, less allowance of $3,077 and $2,933, respectively137,962 135,130 
Inventories100,710 104,666 
Prepaid expenses and other assets44,539 30,997 
Current portion of notes receivable4,581 5,237 
Total current assets354,366 328,053 
Non-current Assets
Assets held for sale— 7,559 
Property, plant and equipment, net300,050 318,881 
Goodwill870,695 915,295 
Intangible assets, net1,012,447 1,063,413 
Non-current portion of notes receivable9,968 12,413 
Other assets102,590 101,122 
Total non-current assets2,295,750 2,418,683 
Total assets$2,650,116 $2,746,736 
LIABILITIES AND EQUITY
Current Liabilities
Current portion of term debt$12,034 $21,086 
Current portion of other notes payable7,365 7,649 
Accounts payable121,793 124,361 
Accrued expenses and other68,263 77,590 
Total current liabilities209,455 230,686 
  Non-current portion of term debt and revolving credit facility785,539 878,511 
  Non-current portion of other notes payable17,291 19,174 
  Non-current accrued expenses and other73,843 76,720 
  Non-current warrant liability42,192 43,272 
  Deferred tax liability116,068 114,690 
Total non-current liabilities1,034,933 1,132,367 
Total liabilities1,244,388 1,363,053 
Commitments and Contingencies
Shares of Class A Common Stock, $0.0001 par value; 1,000,000,000 shares authorized; 81,530,122 and 81,187,977 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively8 8 
Shares of Class V Common Stock, $0.0001 par value; 61,249,000 shares authorized; 59,349,000 shares issued and outstanding as of June 30, 2024 and December 31, 20236 6 
Additional paid-in capital955,280 944,573 
Accumulated deficit (293,750)(298,049)
Accumulated other comprehensive income24,413 22,958 
Total stockholders' equity685,957 669,496 
Noncontrolling interest719,771 714,187 
Total equity1,405,728 1,383,683 
Total liabilities and equity$2,650,116 $2,746,736 




Utz Brands, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the twenty-six weeks ended June 30, 2024 and July 2, 2023
(In thousands)
(Unaudited)

Twenty-six weeks ended June 30, 2024Twenty-six weeks ended July 2, 2023
Cash flows from operating activities
Net income (loss)$27,843 $(23,035)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Impairment and other charges— 9,548 
Depreciation and amortization35,883 40,405 
Gain on sale of business(44,015)— 
Gain on remeasurement of warrant liability (1,080)(576)
(Gain) loss on sale of assets(1,903)787 
Loss on debt extinguishment1,273 — 
Share-based compensation9,174 8,939 
Deferred taxes6,445 (2,003)
Deferred financing costs2,509 451 
Changes in assets and liabilities:
Accounts receivable, net(9,628)(3,992)
Inventories(3,969)(4,379)
Prepaid expenses and other assets(15,140)(11,687)
Accounts payable and accrued expenses and other(7,561)(18,773)
Net cash used in operating activities(169)(4,315)
Cash flows from investing activities
Purchases of property and equipment(37,781)(30,158)
Purchases of intangibles(9,220)— 
Proceeds from sale of property and equipment24,062 959 
Proceeds from sale of business167,500 — 
Proceeds from sale of routes13,669 12,446 
Proceeds from the sale of IO notes1,544 2,161 
Notes receivable(18,834)(16,191)
Net cash provided by (used in) investing activities140,940 (30,783)
Cash flows from financing activities
Borrowings on line of credit92,000 61,000 
Repayments on line of credit(47,191)— 
Borrowings on term debt and notes payable16,618 3,246 
Repayments on term debt and notes payable(166,608)(11,785)
Payment of debt issuance cost(733)— 
Payments of tax withholding requirements for employee stock awards(1,397)(589)
Dividends paid(9,428)(9,281)
Distribution to noncontrolling interest(9,481)(6,766)
Net cash (used in) provided by financing activities(126,220)35,825 
Net increase in cash and cash equivalents14,551 727 
Cash and cash equivalents at beginning of period52,023 72,930 
Cash and cash equivalents at end of period$66,574 $73,657 




Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures

Net Sales and Organic Net Sales

13-Weeks Ended26-Weeks Ended
(dollars in millions)June 30, 2024July 2, 2023ChangeJune 30, 2024July 2, 2023Change
Net Sales as Reported$356.2 $362.9 (1.8)%$702.7 $714.3 (1.6)%
Impact of Dispositions— (11.8)— (20.3)
Impact of IO Conversions0.5 — 2.0 — 
Organic Net Sales (1)
$356.7 $351.1 1.6 %$704.7 $694.0 1.5 %
(1) Organic Net Sales excludes the Impact of Dispositions and the Impact of IO Conversions that took place after Q2 2023.


Gross Profit and Adjusted Gross Profit
13-Weeks Ended26-Weeks Ended
(dollars in millions)June 30, 2024July 2, 2023June 30, 2024July 2, 2023
Gross Profit$124.8 $117.4 $244.3 $221.9 
Gross Profit as a % of Net Sales35.0 %32.4 %34.8 %31.1 %
Depreciation and Amortization6.7 9.0 13.9 17.6 
Non-Cash, Non-recurring adjustments2.6 0.5 4.6 8.4 
Adjusted Gross Profit$134.1 $126.9 $262.8 $247.9 
Adjusted Gross Profit as a % of Net Sales37.6 %35.0 %37.4 %34.7 %


Adjusted Selling, Distribution, and Administrative Expense

13-Weeks Ended26-Weeks Ended
(dollars in millions)June 30, 2024July 2, 2023June 30, 2024July 2, 2023
Selling, Distribution, and Administrative Expense $104.6 $114.5 $214.0 $220.5 
Depreciation and Amortization in SD&A Expense(10.9)(11.3)(22.0)(22.8)
Non-Cash, and/or Non-recurring Adjustments(9.2)(21.5)(22.1)(35.5)
Adjusted Selling, Distribution, and Administrative Expense$84.5$81.7$169.9$162.2
Adjusted SD&A Expense as a % of Net Sales23.7 %22.5 %24.2 %22.7 %





Adjusted Net Income

13-Weeks Ended26-Weeks Ended
(dollars in millions, except per share data)June 30, 2024July 2, 2023June 30, 2024July 2, 2023
Net Income (Loss)$25.4 $(8.6)$27.8 $(23.0)
Income Tax Expense (Benefit)(1.3)(0.7)25.2 (3.3)
Income (loss) Before Taxes24.1 (9.3)53.0 (26.3)
Deferred Financing Fees0.7 0.5 2.5 0.5 
Acquisition Step-Up Depreciation and Amortization10.8 11.7 22.3 23.6 
Certain Non-Cash Adjustments4.9 8.5 8.9 17.7 
Acquisition, Divestiture and Integration1.1 3.7 (37.3)7.4 
Business and Transformation Initiatives4.5 10.3 10.3 18.5 
Financing-Related Costs0.3 — 0.3 0.1 
Loss on Remeasurement of Warrant Liability(12.9)(2.8)(1.1)(0.6)
Other Non-Cash and/or Non-Recurring Adjustments9.4 31.9 5.9 67.2 
Adjusted Earnings before Taxes33.5 22.6 58.9 40.9 
Taxes on Earnings as Reported1.3 0.7 (25.2)3.3 
Income Tax Adjustments(1)
(7.3)(4.5)14.6 (10.4)
Adjusted Taxes on Earnings(6.0)(3.8)(10.6)(7.1)
Adjusted Net Income$27.5 $18.8 $48.3 $33.8 
Average Weighted Basic Shares Outstanding on an As-Converted Basis140.8 140.4 140.8 140.4 
Fully Diluted Shares on an As-Converted Basis144.3 143.2 144.1 143.0 
Adjusted Earnings Per Share$0.19 $0.13 $0.34 $0.24 

(1) Income Tax Adjustment calculated as (Loss) Income before taxes plus (i) Acquisition, Step-Up Depreciation and Amortization and (ii) Other Non-Cash and/or Non-Recurring Adjustments, multiplied by a normalized GAAP effective tax rate, minus the actual tax provision recorded in the Consolidated Statement of Operations and Comprehensive Loss. The normalized GAAP effective tax rate excludes one-time items such as the impact of tax rate changes on deferred taxes and changes in valuation allowances.

Depreciation & Amortization

13-Weeks Ended26-Weeks Ended
(dollars in millions)June 30, 2024July 2, 2023June 30, 2024July 2, 2023
Core D&A - Non-Acquisition-related included in Gross Profit$4.6 $6.3 $9.2 $12.1 
Step-Up D&A - Transaction-related included in Gross Profit2.1 2.7 4.7 5.5 
Depreciation & Amortization - included in Gross Profit 6.7 9.0 13.9 17.6 
Core D&A - Non-Acquisition-related included in SD&A Expense$2.2 2.3$4.4 4.7
Step-Up D&A - Transaction-related included in SD&A Expense8.7 9.0 17.6 18.1 
Depreciation & Amortization - included in SD&A Expense10.9 11.3 22.0 22.8 
Depreciation & Amortization - Total$17.6 $20.3 $35.9 $40.4 
Core Depreciation and Amortization$6.8 $8.6 $13.6 $16.8 
Step-Up Depreciation and Amortization$10.8 11.7$22.3 23.6
Total Depreciation and Amortization$17.6 $20.3 $35.9 $40.4 





EBITDA and Adjusted EBITDA
13-Weeks Ended26-Weeks Ended
(dollars in millions)June 30, 2024July 2, 2023June 30, 2024July 2, 2023
Net Income (Loss)$25.4 $(8.6)$27.8 $(23.0)
Plus non-GAAP adjustments:
Income Tax Expense (Benefit)(1.3)(0.7)25.2 (3.3)
Depreciation and Amortization17.6 20.3 35.9 40.4 
Interest Expense, Net10.2 15.0 24.0 29.4 
Interest Income from IO loans(1)
(0.1)(0.5)(0.9)(0.9)
EBITDA51.8 25.5 112.0 42.6 
Certain Non-Cash Adjustments(2)
4.9 8.5 8.9 17.7 
Acquisition, Divestiture and Integration(3)
1.1 3.7 (37.3)7.4 
Business Transformation Initiatives(4)
4.5 10.3 10.3 18.5 
Financing-Related Costs(5)
0.3 — 0.3 0.1 
Gain on Remeasurement of Warrant Liability(6)
(12.9)(2.8)(1.1)(0.6)
Adjusted EBITDA$49.7 $45.2 $93.1 $85.7 
Net income (loss) as a % of Net Sales7.1 %(2.4)%4.0 %(3.2)%
Adjusted EBITDA as a % of Net Sales14.0 %12.5 %13.2 %12.0 %


(1)Interest Income from IO loans refers to Interest Income that we earn from IO notes receivable that have resulted from our initiatives to transition from RSP distribution to IO distribution ("Business Transformation Initiatives"). There is a notes payable recorded that mirrors most of the IO notes receivable, and the interest expense associated with the notes payable is part of the Interest Expense, Net adjustment.
(2)Certain Non-Cash Adjustments are comprised primarily of the following:
Incentive programs – The Company incurred $4.5 million and $3.4 million of share-based compensation expense, that was awarded to associates and directors, and compensation expense associated with the employee stock purchase plan (the "ESPP") and the omnibus equity incentive plan (the"OEIP") for the thirteen weeks ended June 30, 2024 and July 2, 2023, respectively. The Company incurred $8.4 million and $8.1 million of share-based compensation expense, that was awarded to associates and directors, and compensation expense associated with the ESPP and the OEIP for the twenty-six weeks ended June 30, 2024 and July 2, 2023, respectively.
Asset Impairments and Write-Offs — For the thirteen weeks ended July 2, 2023, the Company recorded an adjustment for an impairment of $7.6 million on fixed assets related to the Manufacturing Closure. During the twenty-six weeks ended July 2, 2023, the Company recorded impairments totaling $9.6 million.
Purchase Commitments and Other Adjustments – We have purchase commitments for specific quantities at fixed prices for certain of our products’ key ingredients. To facilitate comparisons of our underlying operating results, this adjustment was made to remove the volatility of purchase commitments related to unrealized gains and losses. The adjustment related to Purchase Commitments and Other Adjustments, including cloud computing amortization was expense (income) of $0.4 million and $(2.5) million for the thirteen weeks ended June 30, 2024 and July 2, 2023, respectively. The adjustment related to Purchase Commitments and Other Adjustments, including cloud computing amortization was $0.5 million and $0 million for the twenty-six weeks ended June 30, 2024 and July 2, 2023, respectively.
(3)Adjustment for Acquisition, Divestiture and Integration Costs and (Gains) – Such expenses were $1.1 million and $3.4 million for the thirteen weeks ended June 30, 2024 and July 2, 2023, respectively; and $6.7 million and $8.3 million for the twenty-six weeks ended June 30, 2024 and July 2, 2023, respectively. Additionally, other acquisitions and integration costs (income) of $0.3 million were recorded for the thirteen weeks ended July 2, 2023 and $(0.9) million for the twenty-six weeks ended July 2, 2023 related to the change in the liability associated with the Tax Receivable Agreement entered into in connection with the consummation of the business combination by the Company (formerly Collier Creek Holdings) with Utz Brands Holdings, LLC (“UBH”) pursuant to the terms of the Business Combination Agreement, dated as of June 5, 2020. Also included for the twenty-six weeks ended June 30, 2024 was a gain of $44.0 million related to the Good Health and R.W. Garcia Sale.
(4)Business Transformation Initiatives Adjustment – This adjustment is related to consultancy, professional, and legal fees incurred for specific initiatives and structural changes to the business that do not reflect the cost of normal business operations. In addition, gains and losses realized from the sale of distribution rights to IOs and the subsequent disposal of trucks, severance costs associated with the elimination of RSP positions, and enterprise resource planning system transition costs, fall into this category. The Company incurred such costs of $4.5 million and $5.6 million for the thirteen weeks ended June 30, 2024 and July 2, 2023, respectively, and $10.3 million and $13.8 million for the twenty-six weeks ended June 30, 2024 and July 2, 2023, respectively. Additionally, the thirteen and twenty-six weeks ended July 2, 2023 also includes expense of $4.7 million related to a contract termination. This agreement was a continuation of the Company's response to shifting production from a manufacturing facility that was damaged by a natural disaster in 2021.
(5)Financing-Related Costs – These costs include adjustments for various items related to raising debt and equity capital or debt extinguishment costs.
(6)Gains and losses – Such gains and losses related to the changes in the remeasurement of warrant liabilities are not expected to be settled in cash, and when exercised would result in a cash inflow to the Company with the Warrants converting to Class A Common Stock with the liability being extinguished and the fair value of the Warrants at the time of exercise being recorded as an increase to equity.




Normalized Adjusted EBITDA
FY 2023FY 2024
(dollars in millions)Q1Q2Q3Q4FY 2023Q1Q2TTM
Adjusted EBITDA$40.4 $45.2 $52.1 $49.4 $187.2 
(1)
$43.4 $49.7 $194.6 
Pre-Acquisition Adjusted EBITDA(1)
— — — — — — — — 
Normalized Adjusted EBITDA$40.4 $45.2 $52.1 $49.4 $187.2 
(1)
$43.4 $49.7 $194.6 

(1) Does not total due to rounding.



Net Debt and Leverage Ratio

(dollars in millions)As of June 30, 2024
Term Loan$630.3 
Real Estate Loan60.9 
ABL Facility45.2 
Capital Leases(1)
77.6 
Deferred Purchase Price0.1 
Gross Debt(2)
814.1
Cash and Cash Equivalents66.6 
Total Net Debt$747.5 
Last 52-Weeks Normalized Adjusted EBITDA$194.6 
Net Leverage Ratio(3)
3.8x

(1) Capital Leases include equipment term loans and exclude the impact of step-up accounting.
(2) Excludes amounts related to guarantees on IO loans which are collateralized by routes. The Company has the ability to recover substantially all of the outstanding loan value in the event of a default scenario, which historically has been uncommon.
(3) Based on Normalized Adjusted EBITDA of $194.6 million.

Utz Brands, Inc. Second Quarter 2024 Earnings Presentation August 1, 2024 Swap out image

 
Disclaimer 2 Forward-Looking Statements Certain statements made herein are not historical facts but are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. The forward-looking statements generally are accompanied by or include, without limitation, statements such as “will”, “expect”, “intends”, “goal” or other similar words, phrases or expressions. These forward- looking statements include the future plans for the Utz Brands, Inc. (“the Company”), including plans related to transformation of the Company’s supply chain, the Company’s product mix, the ability to reduce debt and the anticipated interest expense savings from the repricing of the $630 million Term Loan , the Company’s cost savings plans and the Company’s logistics optimization efforts; the estimated or anticipated future results and benefits of the Company’s plans and operations; the Company’s future capital structure; future opportunities for the Company; the effects of inflation or supply chain disruptions on the Company or its business; statements regarding the Company’s project balance sheet and liabilities, including net leverage; and other statements that are not historical facts. These statements are based on the current expectations of the Company’s management and are not predictions of actual performance. These statements are subject to a number of risks and uncertainties and the Company’s business and actual results may differ materially. Factors that may cause such differences include, but are not limited to: the risk that the Company’s gross profit margins may be adversely impacted by a variety of factors, including variations in raw materials pricing, retail customer requirements and mix, and sales velocities and required promotional support; changes in consumers’ loyalty to the Company’s brands due to factors beyond the Company’s control, including changes in consumer spending due to factors such as increasing household debt; changes in demand for the Company’s products affected by changes in consumer preferences and tastes or if the Company is unable to innovate or market its products effectively, particularly in the Company’s Expansion geographies; costs associated with building brand loyalty and interest in the Company’s products, which may be affected by actions by the Company’s competitors’ that result in the Company’s products not suitably differentiated from the products of their competitors; consolidation of key suppliers to the Company; inability of the Company to adopt efficiencies into its manufacturing processes, including automation and labor optimization, its network, including through plant consolidation and lowest landed cost for shipping its products or its logistics operations; fluctuations in results of operations of the Company from quarter to quarter because of changes in promotional activities; the possibility that the Company may be adversely affected by other economic, business or competitive factors; the risk that the Company may not recognize the anticipated benefits of recently completed business combinations and other acquisitions recently completed by the Company (collectively, the “Business Combinations”) or dispositions recently completed by the Company, which may be affected by, among other things, competition and the ability of the Company to grow and manage growth profitably and retain its key employees; the ability of the Company to close planned acquisitions or dispositions; changes in applicable law or regulations; costs related to the Business Combinations and other planned acquisitions or dispositions; the inability of the Company to maintain the listing of the Company’s Class A Common Stock on the New York Stock Exchange; the inability of the Company to develop and maintain effective internal controls; and other risks and uncertainties set forth in the section entitled “Risk Factors” and “Forward-Looking Statements” in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “Commission”) for the fiscal year ended December 31, 2023, and other reports filed by the Company with the Commission. In addition, forward-looking statements provide the Company’s expectations, plans or forecasts of future events and views as of the date of this communication. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this communication. The Company cautions investors not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, except as otherwise required by law. Industry Information Unless otherwise indicated, information contained in this presentation or made orally during this presentation concerning the Company’s industry, competitive position and the markets in which it operates is based on information from independent research organizations, other third-party sources and management estimates. Management estimates are derived from publicly available information released by independent industry analysts and other third-party sources, as well as data from the Company’s internal research, and are based on assumptions made by the Company upon reviewing such data, and the Company’s experience in, and knowledge of, such industry and markets, which the Company believes to be reasonable. In addition, projections, assumptions and estimates of the future performance of the industry in which the Company operates, and the Company’s future performance are necessarily subject to uncertainty and risk due to a variety of factors, which could cause results to differ materially from those expressed in the estimates made by the independent parties and by the Company. Trademarks This presentation may contain trademarks, service marks, trade names and copyrights of other companies, which are the property of their respective owners. Solely for convenience, some of the trademarks, service marks, trade names and copyrights referred to in this presentation may be listed without the TM, SM, © or ® symbols, but we will assert, to the fullest extend under applicable law, the rights of the applicable owners, if any, to these trademarks, service marks, trade names and copyrights.

 
Disclaimer (cont.) 3 Projected Financial Information This presentation contains financial forecasts, which were prepared in good faith by the Company on a basis believed to be reasonable. Such financial forecasts have not been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). The Company’s independent auditors have not audited, reviewed, compiled or performed any procedures with respect to the projections for the purposes of their inclusion in this presentation, and accordingly, they have not expressed an opinion nor provided any other form of assurance with respect thereto for the purpose of this presentation. These projections are for illustrative purposes only and should not be relied upon as being necessarily indicative of future results. Certain of the above-mentioned projected information has been provided for purposes of providing comparisons with historical data. The assumptions and estimates underlying the prospective financial information are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the prospective financial information. Projections are inherently uncertain due to a number of factors outside of the Company’s control, as discussed under Forward-Looking Statements above. Accordingly, there can be no assurance that the prospective results are indicative of the future performance of the Company or that actual results will not differ materially from those presented in the prospective financial information. Inclusion of the prospective financial information in this presentation should not be regarded as a representation by any person that the results contained in the prospective financial information will be achieved. Non-GAAP Financial Measures This presentation includes certain financial measures not presented in accordance with GAAP including, but not limited to, Organic Net Sales, Adjusted Gross Profit, Adjusted SD&A, EBITDA, Adjusted EBITDA, Normalized Adjusted EBITDA, Adjusted Net Income, and Adjusted Earnings Per Share, and certain ratios and other metrics derived therefrom. These non-GAAP financial measures do not represent financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing financial results. Therefore, these measures should not be considered in isolation or as an alternative to net income, cash flows from operations, earnings per share or other measures of profitability, liquidity or performance under GAAP. You should be aware that the presentation of these measures may not be comparable to similarly-titled measures used by other companies. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are set forth in the appendix to this presentation. We believe (i) these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the financial condition and results of operations of the Company to date; and (ii) that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in comparing financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. The non-GAAP financial measures are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance.

 
Business Overview Howard Friedman Chief Executive Officer 4 Swap out image

 
Second Quarter Key Takeaways 5 Our Mission is to become the fastest growing pure-play U.S. snacking company of scale ONE Organic Net Sales growth of 1.6% led by strong branded volume growth supported by increased marketing support, and disciplined promotional spending adjustments to address consumer value expectations THREE Drove a sixth consecutive quarter of year-over-year Adjusted EBITDA Margin expansion fueled by Adjusted Gross Margin growth FIVE Modestly revising our FY’24 Organic Net Sales outlook given the softer than expected Salty Snack category; reaffirming our Adjusted EBITDA and raising Adjusted EPS outlooks TWO Gained dollar, pound, and unit share in the Salty Snacks category for the third consecutive quarter(1) FOUR Strong productivity and cost performance provides flexibility to increase support behind our brands; divested two additional plants to accelerate network optimization plan SIX Accelerating 2H’24 Organic Net Sales growth driven by volume growth, fueled by increased marketing investments, innovation, already achieved distribution gains, and an easier second half growth comparison (1) Retail sales are Circana Total US MULO-C, custom Utz Brands hierarchy, 13-weeks ended 6/30/2024; % YoY growth compared to the 13-weeks ended 7/2/23 period in the prior year on a pro forma basis.

 
Organic Net Sales growth and continued margin expansion 6 $351 $357 2Q’23 2Q’24 Organic Net Sales (in millions) Adjusted EBITDA (in millions) $45 $50 2Q’23 2Q’24 2Q’23 3Q’23 4Q’23 1Q’24 2Q’24 +90bps +40bps Adjusted EBITDA Margin YoY Change (as a % of net sales) +160bps Note: See appendix for reconciliation of Utz Non-GAAP financial measures to most directly comparable GAAP measures. +10% +100bps +1.6% +150bps

 
Strong execution against a clearly defined portfolio strategy Power Brand volume increased ~4% in 2Q’24 7 o Consistent with our strategy, strong Power Brand volume led by Utz®, On The Border®, and Boulder Canyon® o Improving performance in non-measured channels, e.g., Club, Dollar, E-commerce, etc., with branded volume year-over-year growth of ~10% o Increasing our marketing investments while managing our promotional spend o Foundation Brands volume impacted by dips and salsa declines caused by a large customer shelf reset, and purposefully de-emphasizing private label, co-manufacturing, and partner brands 77% 23% 2Q’24 Total Company Volume (lbs.)(1) Year-over-Year Change Power Brands Foundation Brands +4% -10% (1) Source: Internal company data.

 
Investments in geographic expansion and disciplined promotional spending driving share gains led by our Power Four brands 8 Total Salty Category Total Utz Brands Utz Power Brands Utz Power Four Brands Utz Foundation Brands 0.2% 1.1% 1.7% 2.8% -4.9% 2Q’24 Salty Snacks Year-over-Year Growth (13-Weeks Ended 6/30/24) Total Salty Category Total Utz Brands Utz Power Brands Utz Power Four Brands Utz Foundation Brands -0.8% 3.2% 3.5% 4.3% -1.3% Source: Retail sales are Circana Total US MULO-C, custom Utz Brands hierarchy, 13-weeks ended 6/30/2024; % YoY growth compared to the 13-weeks ended 7/2/23 period in the prior year on a pro forma basis. (1) Represents Foundation Brands salty snack sales based on Circana Total MULO-C, custom Utz Brands hierarchy. This differs from internal total company volume results as it excludes Dips & Salsas, private label, partner brands and other small sales categories. Retail Sales $ Retail Volume (lbs.) (1) (1)

 
Source: Retail sales are Circana Total US MULO-C, custom Utz Brands hierarchy, 13-weeks ended 6/30/2024; % YoY growth compared to the 13-weeks ended 7/2/23 period in the prior year on a pro forma basis. Gained volume share in both our Core and Expansion geographies 9 0.1% -1.4% -0.6% 0.3% -0.9% 1.8% 2.5% 3.0% Total Salty Category Total Utz Brands Utz Power Brands Utz Power Four Brands 0.3% 5.2% 5.3% 6.9% Total Salty Category Total Utz Brands Utz Power Brands Utz Power Four Brands -0.7% 5.1% 5.0% 5.9% Core Expansion Core Expansion 2Q’24 Salty Snacks Year-over-Year Growth (13-Weeks Ended 6/30/24) Retail Sales $ Retail Volume (lbs.)

 
Significant outperformance across Natural and traditional channels Boulder Canyon approaching $100M in retail sales in SPINS + Circana MULO-C 10 Source: SPINS, Total US – Natural Enhanced Channel (TPL) and Circana Total US MULO-C, custom Utz Brands hierarchy. Total Salty Category Total Utz Brands 2.1% 17.0% 28.4% Total Salty Category Total Utz Brands 4.0% 19.5% 29.6% SPINS Retail Sales Year-over-Year Growth 13-Weeks Ended 6/30/24 52-Weeks Ended 6/30/24 Total Salty Category Total Utz Brands 0.2% 1.1% 24.1% Total Salty Category Total Utz Brands 2.8% 3.2% 36.7% Circana MULO-C Retail Sales Year-over-Year Growth 13-Weeks Ended 6/30/24 52-Weeks Ended 6/30/24

 
% of Utz Retail Sales 42% 21% 11% 8% 4% o Utz® potato chips holding and Boulder Canyon gaining share o Softness in Zapp’s® and Targeted Power and Foundation brands o Strong On The Border® growth in Grocery and Mass channels o Utz® pretzels holding share o Zapp’s® pretzel’s lapping 2023 sell-in o Strong Utz® growth across most channels o Golden Flake® gaining share o Transitioning space from Utz® Pork to Golden Flake® Pork Source: Retail sales are Circana Total US MULO-C, custom Utz Brands hierarchy, 13-weeks ended 6/30/2024; % YoY growth compared to the 13-weeks ended 7/2/23 period in the prior year on a pro forma basis. Utz retail sales breakdown is Circana Total US MULO-C, custom Utz Brands hierarchy, 13-weeks ended 6/30/2024. Strong growth in Tortilla Chips and Cheese Snacks Growing share in Utz®, On The Border®, and Boulder Canyon® Total Sub-CategorySub-Category Retail Sales Year-over-Year Growth (13-Weeks Ended 6/30/24) Potato Chips Tortilla Chips Pretzels Cheese Snacks Pork Rinds 2.3% -0.3% -0.7% 6.2% 1.9% -0.1% -4.1% 7.5% -3.5% -5.8% 11

 
Increased investments in new product innovation Strong early consumer and customer response supporting 2H’24 sales growth 12 Deliver “Craveable” Flavor Capture Occasions Expand Positive Choices

 
Driving awareness with increased media spend and new brand campaigns 13 Social and Influencer Digital Video Connected TV Streaming New Brand Campaigns Launched July 2024 Launched April 2024 Marketing Expense +60% 2023 2024

 
Positive trends across household penetration, buyers, and buyer repeat rates 14 Household Penetration (52-Weeks Ended 6/16/24) Buyers (millions) (52-Weeks Ended 6/16/24) Total Buyer Repeat Rate (52-Weeks Ended 6/16/24) +140bps Increase +60bps Increase +2.2 Million Increase Source: Circana CSIA Total U.S. All Outlets 52WE data through 6/16/2024 compared to the 52WE ended 6/18/23 in the prior year period. 35 40 45 50 2023 2024 46.8% 48.2% 60 62 64 66 68 70 2023 2024 69.4% 70.0% 59.3 61.5 45 50 55 60 65 2023 2024

 
Financial Review Ajay Kataria Chief Financial Officer 15 Swap out image

 
2Q’24 Financial Results Summary o Organic Net Sales increase of +1.6% o +2.3% volume/mix and (0.7%) price o Adjusted Gross Margin expansion of +260 bps o Benefits from productivity programs o Adjusted SD&A Expense increase of +3.4% o Increased marketing, selling, and distribution costs to support growth o Adjusted EBITDA increased 10.0% to $49.7M o Margin expansion of 150bps o Adjusted EPS growth of +46% to $0.19 o Operating earnings growth o Lower interest expense due to long-term debt repayment o Lower depreciation and amortization expense due to plant dispositions 2Q’24 2Q’23 YoY Change In $ millions, except per share amounts 13-weeks ended June 30, 2024 13-weeks Ended July 2, 2023 Net Sales 356.2 362.9 (1.8%) Organic Net Sales 356.7 351.1 +1.6% Adj. Gross Profit 134.1 126.9 +5.7% % of net sales 37.6% 35.0% +260bps Adj. SD&A Expense 84.5 81.7 +3.4% % of net sales 23.7% 22.5% +120 bps Adj. EBITDA 49.7 45.2 +10.0% % of net sales 14.0% 12.5% +150 bps Adj. Net Income 27.5 18.8 +46.3% Adj. EPS $0.19 $0.13 +46.2% 16 Note: See appendix for reconciliation of Non-GAAP financial measures to most directly comparable GAAP measures.

 
2Q’24 Net Sales Bridge 17 o Pricing of (0.7)% from disciplined promotional spending adjustments o Volume/mix growth of +2.3% primarily driven by our Power Four Brands o IO Conversion impact of (0.1%) o Divestiture impact of (3.3%) from the disposition of R.W. Garcia® and Good Health® brands 2Q’24 Net Sales YoY Growth Decomposition Price 2.3% Volume/Mix 2Q’24 Organic Net Sales Growth -0.1% IO Conversions -3.3% Brand Divestitures 2Q’24 Total Net Sales Growth -0.7% 1.6% -1.8% Note: See appendix for reconciliation of Non-GAAP financial measures to most directly comparable GAAP measures.

 
2Q’24 Adjusted EBITDA Margin Change Decomposition 2Q’24 Adjusted EBITDA Margin Bridge 18 o Productivity programs driven by manufacturing and procurement cost savings offsetting higher supply chain costs o Increased marketing spend to support continued branded volume growth o Lower net price realization due to disciplined promotional spending adjustments (1) Represents savings realized during Q2 2024 as a % of prior year net sales. (2) Delivery included. 2Q’23 4.3% Productivity Savings -1.1% Supply Chain Costs -0.9% Marketing Expense -0.7% Price 2Q’24 12.5% 14.0% Selling & Admin Expense -0.2% (1) (2) Note: See appendix for reconciliation of Non-GAAP financial measures to most directly comparable GAAP measures.

 
Cash Flow and Balance Sheet Highlights As of January 1, 2023 Cash Flow Highlights 26-Weeks Ended June 30, 2024 Net Cash Used in Operations ($0.2M) Capital Expenditures $37.8M Dividends and Distributions Paid(1) $18.9M Balance Sheet Highlights As of June 30, 2024 Cash and Cash Equivalents $66.6M Gross Debt(2) $814.1M Net Debt $747.5M Net Leverage Ratio(3) 3.8x 19 Note: See appendix for reconciliation of Non-GAAP financial measures to most directly comparable GAAP measures. (1) Includes $9.5M of Distributions to Non-controlling Interest. (2) Includes Term Loan, ABL Facility and Capital Leases. Capital Leases include equipment term loans and excludes the impact of step-up accounting. (3) Net Leverage Ratio is a Non-GAAP financial measure and is based on last 52-weeks Normalized Adjusted EBITDA of $194.6M.

 
2Q’24 Disposition Transactions and Term Loan Repricing o On April 17, 2024, completed repricing of $630 million Term Loan due in January 2028 resulting in a lower interest rate o On April 22, 2024, completed disposition of two manufacturing facilities for total consideration of $18.5 million o Fixed-rate debt comprises ~80% of the total debt as of 2Q’24, up from ~70% at year-end 2023 Improving balance sheet flexibility 20 Net Leverage Ratio 5.1x 3.8x 2Q’23 TTM 2Q’24 TTM Note: See appendix for reconciliation of Non-GAAP financial measures to most directly comparable GAAP measures. ~3.6x ~3.0x FY’24E FY’25E

 
Note: See appendix for reconciliation of Non-GAAP financial measures to most directly comparable GAAP measures. (1) Normalized GAAP basis tax expense, which excludes one-time items. Fiscal 2024 Growth versus Fiscal 2023 Actual Results Previous Current Organic Net Sales ~3% or better growth driven by volume growth ~3% driven by volume growth Adjusted EBITDA +5% to +8% growth +5% to +8% growth Adjusted EPS +23% to 28% growth +28% to 32% growth Additional Outlook Assumptions: Effective Normalized Tax Rate(1) 18% to 20% 17% to 19% Net Interest Expense ~$47 million ~$47 million Capital Expenditures $80 to $90 million $80 to $90 million Net Leverage ~3.6x at fiscal YE24 ~3.6x at fiscal YE24 Updating our Fiscal 2024 Outlook 21 o Modestly revising Organic Net Sales growth outlook due to a more moderate growth outlook for the Salty Snack Category o Reaffirming Adjusted EBITDA outlook and raising Adjusted EPS Outlook

 
Closing Remarks 22

 
Well-positioned to drive accelerated sales growth 2H’24 23 o Activating distribution gains in both Core and Expansion geographies across key Grocery, Natural, Mass, and Club customers o Continuing significant growth of Boulder Canyon o Increasing marketing spend on the Power Four o Gaining momentum of innovation investments and well-positioned for Back to School and Holidays o July top-line results in-line with expectations and lapping an easier comparison in 2H’24 FL NM DE MD TX OK KS NE SD NDMT WY CO UT ID AZ NV WA CA OR KY ME NY PA VT NH MA RI CT WV INIL NC TN SC ALMS AR LA MO IA MN WI NJ GA DC VA OH MI HI AK Core Geographies Expansion Geographies

 
STRATEGY 2024 Progress 1 Focus our portfolio to further penetrate Expansion geographies while holding the Core o Growing share and volume in both Core and Expansion o Increasing household penetration o Continuing distribution gains 2 Transform our supply chain to fund growth and margin improvement o Strong progress on productivity programs o Accelerated network optimization o Increasing investments in scale plants 3 Develop leading capabilities to build a best-in-class organization o Implementing Integrated Business Planning o Building-out analytics platform o Developing marketing capabilities 4 Improve balance sheet flexibility and pursue opportunistic M&A o Sold five manufacturing facilities and two brands o Improving cash conversion cycle o Evaluating opportunistic M&A Strong progress in 2024 against our fundamental strategies 24

 
Appendix 25 Swap out image

 
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 26See footnotes in Utz’s 2Q’24 earnings press release dated August 1, 2024

 
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 27See footnotes in Utz’s 2Q’24 earnings press release dated August 1, 2024

 
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 28See footnotes in Utz’s 2Q’24 earnings press release dated August 1, 2024

 
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 29See footnotes in Utz’s 2Q’24 earnings press release dated August 1, 2024

 
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures 30See footnotes in Utz’s 2Q’24 earnings press release dated August 1, 2024

 
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Cover Page
Aug. 01, 2024
Document Information [Line Items]  
Document Type 8-K
Document Period End Date Aug. 01, 2024
Entity Registrant Name Utz Brands, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-38686
Entity Tax Identification Number 85-2751850
Entity Address, Address Line One 900 High Street
Entity Address, City or Town Hanover
Entity Address, State or Province PA
Entity Address, Postal Zip Code 17331
City Area Code 717
Local Phone Number 637-6644
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0001739566
Amendment Flag false
Former Address  
Document Information [Line Items]  
Entity Registrant Name N/A
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