NATIONAL BEVERAGE CORP

Previous wording

National Beverage Corp. innovatively refreshes America with a distinctive portfolio of sparkling waters, juices, energy drinks (Power+ Brands) and, to a lesser extent, carbonated soft drinks. We believe our creative product designs, innovative packaging and imaginative flavors, along with our corporate culture and philosophy, make National Beverage unique as a stand-alone entity in the beverage industry. Traditional and typical are not a part of an innovator’s vocabulary.

Current wording

National Beverage Corp. innovatively refreshes America with a distinctive portfolio of sparkling waters, juices, energy drinks (Power+ Brands) and, to a lesser extent, carbonated soft drinks. We believe our creative product designs, innovative packaging and imaginative flavors, along with our corporate culture and philosophy, make National Beverage unique as a stand-alone entity in the beverage industry.

Previous wording

The majority of our brands are geared to the active and health-conscious consumer including sparkling waters, energy drinks, and juices. Our portfolio of Power+ Brands includes LaCroix®, LaCroix Cúrate®, and LaCroix NiCola® sparkling water beverages; Clear Fruit® non-carbonated water beverages enhanced with fruit flavor; Rip It® energy drinks and shots; and Everfresh®, Everfresh Premier Varietals™ and Mr. Pure® 100% juice and juice-based beverages. Additionally, we produce and distribute carbonated soft drinks including Shasta® and Faygo®, iconic brands whose consumer loyalty spans more than 130 years.

Current wording

The majority of our brands are geared to the active and health-conscious consumer including sparkling waters, energy drinks and juices. Our portfolio of Power+ Brands includes LaCroix®, LaCroix Cúrate®, and LaCroix NiCola® sparkling water beverages; Clear Fruit® non-carbonated water beverages enhanced with fruit flavor; Rip It® energy drinks and shots; and Everfresh®, Everfresh Premier Varietals™ and Mr. Pure® 100% juice and juice-based beverages. Additionally, we produce and distribute carbonated soft drinks including Shasta® and Faygo®, iconic brands whose consumer loyalty spans more than 135 years.

Previous wording

Our operating results are affected by numerous factors, including fluctuations in the costs of raw materials, holiday and seasonal programming, changes in consumer purchasing habits and weather conditions. Beverage sales are seasonal with higher sales volume realized during the summer months when outdoor activities are more prevalent.

Current wording

Our operating results are affected by numerous factors, including fluctuations in the costs of raw materials, supply chain disruptions, holiday and seasonal programming, and weather conditions. Beverage sales are seasonal with higher sales volume realized during the summer months when outdoor activities are more prevalent.

Previous wording

Net sales for the third quarter of fiscal 2024 increased $1.6 million to $270.1 million from $268.5 million for the third quarter of fiscal 2023. The increase in sales resulted primarily from a 0.9% increase in average selling price per case, partially offset by a 0.7% decline in case volume. The volume decline primarily impacted Power+ Brands, partially offset by an increase in carbonated soft drink brands.

Current wording

Net sales for the first quarter of fiscal 2025 increased 1.6% to $329.5 million compared to $324.2 million for the first quarter of fiscal 2024. The increase in sales resulted primarily from a 0.7% increase in case volume and a 0.7% increase in average selling price per case. The increase in case volume primarily impacted carbonated soft drink brands, partially offset by a slight decrease in Power+ Brands.

Previous wording

Gross profit for the first nine months of fiscal 2024 increased to $319.4 million from $294.3 million for the first nine months of fiscal 2023. The increase in gross profit was due to the increased average selling price per case and a decline in packaging and ingredient costs. The cost of sales per case decreased 1.3% and gross margin increased to 35.7% from 33.2% for the first nine months of fiscal 2023.

Current wording

Gross profit for the first quarter of fiscal 2025 increased to $122.4 million compared to $114.5 million for the first quarter of fiscal 2024. The increase in gross profit was primarily due to a decline in packaging costs, the increase in average selling price per case and the increase in case volume. The cost of sales per case decreased 1.9% and gross margin increased to 37.2% compared to 35.3% for the first quarter of fiscal 2024.

Previous wording

Selling, general and administrative expenses for the third quarter of fiscal 2024 decreased $1.6 million to $48.9 million from $50.5 million for the third quarter of fiscal 2023. The decrease was primarily due to a decrease in shipping and administrative costs, partially offset by an increase in selling and marketing costs. As a percentage of net sales, selling, general and administrative expenses decreased to 18.1% for the third quarter of fiscal 2024 from 18.8% for the third quarter of fiscal 2023.

Current wording

Selling, general and administrative expenses for the first quarter of fiscal 2025 increased $1.5 million to $52.9 million from $51.4 million for the first quarter of fiscal 2024. The increase was primarily due to an increase in administrative and marketing costs, partially offset by a decrease in shipping costs. As a percentage of net sales, selling, general and administrative expenses increased to 16.1% for the first quarter of fiscal 2025 compared to 15.8% for the first quarter of fiscal 2024.

Previous wording

Other income – net includes interest income of $1.8 million for the third quarter of fiscal 2024 and $0.4 million for the third quarter of fiscal 2023. The increase in interest income is due to increased average invested balances and higher yields.

Current wording

Other income, net includes interest income of $4.3 million for the first quarter of fiscal 2025 and $1.8 million for the first quarter of fiscal 2024. The increase in interest income is due primarily to increased average invested balances.

Previous wording

The Company’s effective income tax rate, based upon estimated annual income tax rates, was 21.1% for the third quarter of fiscal 2024 and 23.5% for the third quarter of fiscal 2023. The difference between the effective rate and the federal statutory rate of 21% was primarily due to the effects of state income taxes offset by excess tax benefits realized from stock options exercised.

Current wording

The Company’s effective income tax rate, based upon estimated annual income tax rates, was 23.1% for the first quarter of fiscal 2025 and 23.8% for the first quarter of fiscal 2024. The difference between the effective rate and the federal statutory rate of 21% was primarily due to the effects of state income taxes, partially offset by excess tax benefits realized from stock options exercised.

Previous wording

Our principal source of funds is cash generated from operations. At January 27, 2024, we maintained unsecured revolving credit facilities totaling $150 million, under which no borrowings were outstanding and $2.2 million was reserved for standby letters of credit. We believe existing capital resources will be sufficient to meet our liquidity and capital requirements for the next twelve months.

Current wording

Our principal sources of liquidity are our existing cash and cash-equivalents, cash generated from operations and borrowing capacity. At July 27, 2024, we maintained unsecured revolving Credit Facilities and Loan Facility totaling $150 million, under which no borrowings were outstanding and $2.2 million was reserved for standby letters of credit. We believe existing capital resources will be sufficient to meet our liquidity and capital requirements for the next twelve months.

Previous wording

The Company’s cash position increased $118.9 million for the first nine months of fiscal 2024 compared to an increase of $70.3 million for the first nine months of fiscal 2023.

Current wording

The Company’s cash position decreased $250.0 million for the first quarter of fiscal 2025 compared to an increase of $64.7 million for the first quarter of fiscal 2024 primarily due to the special cash dividend of $304.1 million paid on July 24, 2024.

Previous wording

Net cash provided by operating activities for the first nine months of fiscal 2024 was $137.5 million compared to $112.3 million for the nine months of fiscal 2023. For the first nine months of fiscal 2024, cash flow provided by operating activities was principally provided by net income of $133.0 million, depreciation and amortization of $15.1 million, and amortization of operating lease right-of-use assets of $10.5 million, partially offset by changes in working capital and other accounts.

Current wording

Net cash provided by operating activities for the first quarter of fiscal 2025 was $57.5 million compared to $70.1 million for the first quarter of fiscal 2024. For the first quarter of fiscal 2025, cash flow provided by operating activities decreased primarily due to increases in working capital excluding cash, partially offset by an increase in operating income and interest income.

Previous wording

Net cash used in investing activities for the first nine months of fiscal 2024 reflects capital expenditures of $19.5 million, compared to capital expenditures of $12.3 million for the first nine months of fiscal 2023. Certain production capacity and efficiency improvement projects are in progress and we anticipate fiscal 2024 capital expenditures will be in the range of $27 to $30 million.

Current wording

Net cash used in investing activities for the first quarter of fiscal 2025 reflects capital expenditures of $3.7 million, compared to capital expenditures of $5.5 million for the first quarter of fiscal 2024. Certain production capacity and efficiency improvement projects are in progress and we anticipate fiscal 2025 capital expenditures will be in the range of $25 to $30 million.

Previous wording

At January 27, 2024, working capital increased to $356.0 million from $222.1 million at April 29, 2023. The current ratio was 3.7 to 1 at January 27, 2024 compared to 2.5 to 1 at April 29, 2023. Trade receivables - net decreased $3.2 million and days sales outstanding increased to 34.3 from 33.3 days. Inventories decreased $4.9 million and inventory turns improved to 8.3 times from 7.9 times.

Current wording

At July 27, 2024, working capital decreased to $145.7 million from $398.9 million at April 27, 2024. The current ratio was 2.0 to 1 at July 27, 2024 compared to 3.9 to 1 at April 27, 2024. The decrease in working capital and current ratio was due primarily to the payment of the $304.1 million cash dividend. Trade receivables increased $13.2 million and days sales outstanding increased to 32.0 from 31.5 days. Inventories increased $6.0 million and inventory turns declined to 8.3 times from 8.6 times.