Seneca Foods Corp

Previous wording

We purchase raw materials, including raw produce, steel, ingredients and packaging materials from growers, commodity processors, steel producers and packaging suppliers. Raw materials and other input costs, such as labor, fuel, utilities and transportation, are subject to fluctuations in price attributable to a number of factors. Fluctuations in commodity prices can lead to retail price volatility and can influence consumer and trade buying patterns. The cost of raw materials, fuel, labor, distribution and other costs related to our operations can increase from time to time significantly and unexpectedly.

Current wording

We purchase raw materials, including raw produce, steel, ingredients and packaging materials from growers, commodity processors, steel producers and packaging suppliers. Raw materials and other input costs, such as labor, fuel, utilities and transportation, are subject to fluctuations in price attributable to a number of factors. Fluctuations in commodity prices can lead to retail price volatility and can influence consumer and trade buying patterns. The cost of raw materials, fuel, labor, distribution and other costs related to our operations can increase from time to time significantly and unexpectedly, the impact of which could increase our cost of products sold and reduce our profitability.

Previous wording

We experienced material cost increases to various production inputs during the last several years due to a number of factors, including but not limited to, supply chain disruptions, steel supply and pricing, raw material shortages, labor shortages, and the conflicts between Russia and Ukraine. While we have no direct exposure to this foreign conflict, it had a negative impact on the global economy which increased certain of our input costs. While certain of the factors mentioned above have started to ease and stabilize during the current six-month interim period, our costs remain elevated as compared to historical levels.

Current wording

We experienced material cost increases to various production inputs during the last several years due to a number of factors, including but not limited to, supply chain disruptions, steel supply and pricing, raw material shortages, labor shortages, and the conflicts between Russia and Ukraine. While we have no direct exposure to this foreign conflict, it had a negative impact on the global economy which increased certain of our input costs. While some of the factors mentioned above have started to ease and stabilize during the current nine-month interim period, our costs remain elevated as compared to historical levels.

Previous wording

We attempt to manage costs by locking in prices through short-term supply contracts, advance grower purchase agreements, and by implementing cost saving measures. We also attempt to offset rising input costs by raising sales prices to our customers. However, increases in the prices we charge our customers may lag behind rising input costs. Competitive pressures also may limit our ability to raise prices in response to rising costs. To the extent we are unable to avoid or offset any present or future cost increases, our operating results could be materially adversely affected.

Current wording

We attempt to manage costs by locking in prices through short-term supply contracts, advance grower purchase agreements, and by implementing cost saving measures. We also attempt to offset rising input costs by raising sales prices to our customers. However, increases in the prices we charge our customers may lag behind rising input costs. Competitive pressures and pricing methodologies employed in the various sales channels in which we compete may also limit our ability to raise prices in response to rising costs. To the extent we are unable to avoid or offset any present or future cost increases, our operating results could be materially adversely affected.

Previous wording

Net sales totaled $425.5 million for the three months ended September 28, 2024 as compared with $407.5 million for the three months ended September 30, 2023. The overall net sales increase of $18.0 million, or 4.4%, was due to higher sales volumes contributing favorability of $8.5 million, coupled with product mix and increased selling prices which had a favorable impact of $9.5 million as compared to the prior year three-month interim period.

Current wording

Net sales totaled $502.9 million for the three months ended December 28, 2024 as compared with $444.5 million for the three months ended December 30, 2023. The overall net sales increase of $58.4 million, or 13.1%, was driven by higher sales volumes contributing favorability of $70.1 million, offset by lower selling prices which had an unfavorable impact of $11.7 million as compared to the prior year three-month interim period.

Previous wording

Net sales of canned vegetables and frozen vegetables increased by a combined $18.7 million over the prior year quarter. The categories were impacted by overall higher demand, complemented by increased pricing and favorable product mix. Net sales in the fruit products and snack products categories remained relatively consistent with the prior year quarter with a nominal combined $0.7 million decrease. Net sales attributable to the other category also remained flat as compared to the prior year quarter for seed, cans and ends, and outside revenue from aircraft operations, which are ancillary to the Company’s main operations.

Current wording

Net sales of canned vegetables and frozen vegetables increased by a combined $53.0 million over the prior year quarter. The categories experienced favorable demand driving $66.3 million in higher sales volume, which was partially offset by $13.3 million contributed by lower pricing. Net sales in the fruit products category increased by $3.5 million driven by $2.4 million of increased sales volume and $1.1 million due to higher selling prices and product mix. The snack products category contributed a net sales increase of $1.2 million mainly due to increased sales volume. Lastly, net sales attributable to the other category contributed a nominal $0.7 million increase as compared to the prior year quarter for seed, cans and ends, and outside revenue from aircraft operations, which are ancillary to the Company’s main operations.

Previous wording

Net sales totaled $730.2 million for the six months ended September 28, 2024 as compared with $706.1 million for the six months ended September 30, 2023. The overall net sales increase of $24.1 million, or 3.4%, was due to higher sales volumes contributing favorability of $20.0 million, coupled with product mix and increased selling prices which had a favorable impact of $4.1 million as compared to the prior year six-month interim period.

Current wording

Net sales totaled $1,233.0 million for the nine months ended December 28, 2024 as compared with $1,150.6 million for the nine months ended December 30, 2023. The overall net sales increase of $82.4 million, or 7.2%, was mainly due to higher sales volumes contributing favorability of $87.3 million as compared to the prior year nine-month interim period. Partially offsetting that amount was net unfavorable sales of $4.9 million driven by a combination of reduced selling prices and the impact of product mix as compared to the prior year nine-month interim period.

Previous wording

Net sales of canned vegetables increased $25.4 million over the prior year six-month interim period primarily driven by increased demand, combined with favorability from product mix and increased pricing for this category. Net sales of frozen vegetables remained flat as compared to the prior year six-month period. Fruit products increased over the prior year six-month interim period by $1.6 million, primarily due to increased pricing. Net sales in the snack products category remained relatively consistent year-over-year with a slight decrease of $0.5 million. The remaining net sales decrease of $2.4 million, driven by lower demand as compared to the prior year six-month period, was contributed by non-food packaging sales related to the sale of seed, cans and ends, and outside revenue from aircraft operations, which are ancillary to the Company’s main operations.

Current wording

Net sales of canned vegetables and frozen vegetables increased by a combined $78.3 million over the prior year nine-month interim period. Higher sales volume in these categories contributed $83.7 million of sales favorability, which was partially offset by $5.4 million driven by a combination of reduced selling prices and the impact of product mix. Fruit products increased over the prior year nine-month interim period by $5.1 million, comprised of $2.1 million of increased sales volume and $3.0 million of increased pricing. Net sales in the snack products category remained relatively consistent year-over-year with a slight increase of $0.8 million. The remaining net sales decrease of $1.8 million, driven by lower demand as compared to the prior year nine-month period, was contributed by non-food packaging sales related to the sale of seed, cans and ends, and outside revenue from aircraft operations, which are ancillary to the Company’s main operations.

Previous wording

Gross Margin: Gross margin for the three months ended September 28, 2024 was 10.1% as compared to 14.3% for the three months ended September 30, 2023. The decrease in gross margin for the three months ended September 28, 2024 was mainly due to continued elevated costs. Refer to the section above for additional discussion regarding business trends. The Company’s LIFO charge for the three months ended September 28, 2024 was $15.0 million as compared to a LIFO charge of $9.3 million for the three months ended September 30, 2023. The LIFO charge amounts have the impact of increasing cost of products sold.

Current wording

Gross Margin: Gross margin for the three months ended December 28, 2024 was 9.8% as compared to 12.2% for the three months ended December 30, 2023. The decrease in gross margin for the three months ended December 28, 2024 was mainly due to continued elevated costs, which outpaced the increase in net sales as compared to the three months ended December 30, 2023. Finished goods sold by the Company during the current three-month interim period consisted of products produced during either the preceding year or current year seasonal packs; both of which have a higher cost on a per unit basis as compared to the prior year three-month period. Refer to the business trends section above and the material cash requirements section below for additional discussion of the factors impacting the respective seasonal packs. The Company’s LIFO charge for the three months ended December 28, 2024 was $10.9 million as compared to a LIFO charge of $12.0 million for the three months ended December 30, 2023. The LIFO charge amounts have the impact of increasing cost of products sold.

Previous wording

Selling, General, and Administrative: Selling, general and administrative expense for the three months ended September 28, 2024 decreased $3.0 million from the three months ended September 30, 2023. Selling, general, and administrative expense as a percentage of net sales for the three months ended September 28, 2024, was 4.2% as compared with 5.2% for the prior year quarter. The decrease in selling, general, and administrative expense as a percentage of net sales was mainly due to the increase in net sales and the fixed nature of certain expenses.

Current wording

Selling, General, and Administrative: Selling, general and administrative expense for the three months ended December 28, 2024 decreased $0.2 million from the three months ended December 30, 2023. Selling, general, and administrative expense as a percentage of net sales for the three months ended December 28, 2024, was 4.5% as compared with 5.2% for the prior year quarter. The decrease in selling, general, and administrative expense as a percentage of net sales was mainly due to the increase in net sales and the fixed nature of certain expenses.

Previous wording

Other Operating Income, net: The Company had net other operating income of $0.5 million during the six months ended September 28, 2024, which was driven primarily by the sale of a small portion of land in the Midwest. During the six months ended September 30, 2023, the Company had net other operating income of $1.5 million, which was driven primarily by the sale of non-operational assets in the Pacific Northwest.

Current wording

Other Operating Expense, net: The Company had net other operating expense of $0.8 million during the three months ended December 28, 2024, primarily driven by $1.0 million for disposal of various spare equipment. During the three months ended December 30, 2023, the Company had net other operating expense of $0.4 million, which was driven primarily by $0.6 million of transition service fees incurred in connection with the asset acquisition that occurred during the quarter.

Previous wording

Other Non-Operating Income: Other non-operating income totaled $1.4 million and $1.3 million for the three months ended September 28, 2024, and September 30, 2023, respectively, and is comprised of the non-service related pension amounts that are actuarially determined.

Current wording

Other Non-Operating Income: Other non-operating income totaled $1.5 million and $1.8 million for the three months ended December 28, 2024, and December 30, 2023, respectively, and is comprised of the non-service related pension amounts that are actuarially determined.

Previous wording

Interest Expense, net: Interest expense as a percentage of net sales was 2.1% for the three months ended September 28, 2024, as compared to 1.8% for the three months ended September 30, 2023. Interest expense increased from $7.2 million in the prior year quarter to $9.0 million for the current quarter as a result of higher interest rates and increased borrowings under the Company’s revolving credit facility as compared to the prior year quarter.

Current wording

Interest Expense, net: Interest expense as a percentage of net sales was 1.6% for the three months ended December 28, 2024, as compared to 2.1% for the three months ended December 30, 2023. Interest expense decreased from $9.4 million in the prior year quarter to $7.8 million for the current quarter primarily driven by lower average borrowings outstanding under the Company’s revolving credit facility as compared to the prior year quarter.

Previous wording

Gross Margin: Gross margin for the six months ended September 28, 2024 was 11.7% as compared to 16.1% for the six months ended September 30, 2023. The decrease in gross margin for the six months ended September 28, 2024 was mainly due to continued elevated costs. Refer to the section above for additional discussion regarding business trends. The Company’s LIFO charge for the six months ended September 28, 2024 was $12.1 million as compared to a LIFO charge of $7.6 million for the six months ended September 30, 2023. The LIFO charge amounts have the impact of increasing cost of products sold.

Current wording

Gross Margin: Gross margin for the nine months ended December 28, 2024 was 10.9% as compared to 14.6% for the nine months ended December 30, 2023. The decrease in gross margin for the nine months ended December 28, 2024 was primarily driven by continued elevated costs, which outpaced the increase in net sales as compared to the nine months ended December 30, 2023. Finished goods sold by the Company thus far in fiscal year 2025 consisted of products produced during either the preceding year or current year seasonal packs; both of which have a higher cost on a per unit basis as compared to the prior year nine-month interim period. Refer to the business trends section above and the material cash requirements section below for additional discussion of the factors impacting the respective seasonal packs. The Company’s LIFO charge for the nine months ended December 28, 2024 was $23.0 million as compared to a LIFO charge of $19.6 million for the nine months ended December 30, 2023. The LIFO charge amounts have the impact of increasing cost of products sold.

Previous wording

Selling, General, and Administrative: Selling, general and administrative expense for the six months ended September 28, 2024 decreased $5.3 million from the six months ended September 30, 2023. Selling, general, and administrative expense as a percentage of net sales for the six months ended September 28, 2024, was 4.9% as compared with 5.8% for the prior year six-month interim period. The decrease in selling, general, and administrative expense as a percentage of net sales was mainly due to the increase in net sales and the fixed nature of certain expenses.

Current wording

Selling, General, and Administrative: Selling, general and administrative expense for the nine months ended December 28, 2024 decreased $5.6 million from the nine months ended December 30, 2023. Selling, general, and administrative expense as a percentage of net sales for the nine months ended December 28, 2024, was 4.7% as compared with 5.5% for the prior year nine-month interim period. The decrease in selling, general, and administrative expense as a percentage of net sales was mainly due to the increase in net sales and the fixed nature of certain expenses.

Previous wording

Restructuring*:* The Company incurred minimal restructuring charges during the three months ended September 28, 2024, attributable to equipment moves for the Northeast trucking fleet which ceased operations in the previous fiscal year. During the three months ended September 30, 2023, the Company incurred restructuring charges primarily due to equipment moves from ceasing production of green beans at a plant in the Northeast in the previous fiscal year.

Current wording

Restructuring*:* The Company incurred minimal restructuring charges during the nine months ended December 28, 2024, mainly driven by equipment moves for the Northeast trucking fleet which ceased operations in the previous fiscal year. During the nine months ended December 30, 2023, the Company incurred minimal restructuring charges primarily due to equipment moves from plants that were closed in the previous fiscal year.

Previous wording

Other Operating Income, net: The Company had net other operating income of $0.1 million during the three months ended September 28, 2024, which was driven primarily by the sale of a small portion of land in the Midwest. During the three months ended September 30, 2023, the Company had net other operating income of $1.3 million, which was driven primarily by the sale of non-operational assets in the Pacific Northwest.

Current wording

Other Operating Expense (Income), net: The Company had net other operating expense of $0.4 million during the nine months ended December 28, 2024, primarily driven by $1.0 million for disposal of various spare equipment which was offset by $0.2 million received for the sale of a small portion of land in the Midwest and $0.2 million received for miscellaneous equipment sales. During the nine months ended December 30, 2023, the Company had net other operating income of $1.2 million, which was driven primarily by $1.8 million from the sale of non-operational assets in the Pacific Northwest, offset by $0.6 million of transition service fees in connection with the asset acquisition that occurred during the nine-month period.

Previous wording

Other Non-Operating Income: Other non-operating income totaled $2.8 million and $2.7 million for the six months ended September 28, 2024, and September 30, 2023, respectively, and is comprised of the non-service related pension amounts that are actuarially determined.

Current wording

Other Non-Operating Income: Other non-operating income totaled $4.3 million and $4.5 million for the nine months ended December 28, 2024, and December 30, 2023, respectively, and is comprised of the non-service related pension amounts that are actuarially determined.

Previous wording

Interest Expense, net: Interest expense as a percentage of net sales was 2.7% for the six months ended September 28, 2024, as compared to 1.9% for the six months ended September 30, 2023. Interest expense increased from $13.8 million in the prior year six-month interim period to $19.4 million for the current six-month interim period as a result of higher interest rates and increased borrowings under the Company’s revolving credit facility as compared to the prior year. Additionally, the six months ended September 30, 2023 did not have Term Loan A-2 outstanding for the entire period which contributed to a lower interest expense amount for that prior year interim period.

Current wording

Interest Expense, net: Interest expense as a percentage of net sales was 2.2% for the nine months ended December 28, 2024, as compared to 2.0% for the nine months ended December 30, 2023. Interest expense increased from $23.1 million in the prior year nine-month interim period to $27.2 million for the current nine-month interim period as a result of higher interest rates and increased average borrowings outstanding under the Company’s revolving credit facility as compared to the prior year nine-month interim period. Additionally, the nine months ended December 30, 2023 did not have Term Loan A-2 outstanding for the entire period which contributed to a lower interest expense amount for that prior year period.

Previous wording

The Company’s effective tax rate was 22.7% and 23.8% for the six months ended September 28, 2024 and September 30, 2023, respectively. The effective tax rate decreased in the current six-month period as compared to the prior year six-month period driven by the impact of federal credits which reduced the effective rate by 1.1% and interest received on a federal income tax refund which reduced the effective tax rate by 0.4%. These decreases were partially offset by the impact of state rate changes driven by apportionment which increased the effective rate by 0.4%.

Current wording

The Company’s effective tax rate was 23.2% and 23.8% for the nine months ended December 28, 2024 and December 30, 2023, respectively. The effective tax rate decreased in the current nine-month period as compared to the prior year nine-month period driven primarily by the impact of federal credits which reduced the effective rate by 0.4% and interest received on a federal income tax refund which reduced the effective tax rate by 0.2%.

Previous wording

During the preceding fiscal years, working capital needs trended higher than previously experienced by the Company in part because of larger annual pack sizes needed to replenish the Company’s post-pandemic inventory levels to meet customer demand, and because of supply chain challenges in the steel industry which impacted can manufacturing operations. To successfully navigate the uncertainty driven by inflation and import tariffs, and a desire to diversify its steel supply, the Company employed a strategic approach during those fiscal years and increased steel coil purchases to better position itself for subsequent years. The Company’s larger seasonal pack sizes driven by favorable growing conditions, coupled with lower sales in an industry that is experiencing negative sales category trends overall, resulted in higher inventory levels for finished goods as of the end of fiscal year 2024. This will have a favorable impact on the availability of products in fiscal year 2025, resulting in a lower planned seasonal pack and the opportunity to normalize working capital trends, specifically surrounding inventory.

Current wording

During the preceding fiscal years, working capital needs trended higher than previously experienced by the Company in part because of larger annual pack sizes needed to replenish the Company’s post-pandemic inventory levels to meet customer demand, and because of supply chain challenges and inflationary pressure in the steel industry which impacted can manufacturing operations. To successfully navigate the uncertainty driven by inflation and import tariffs, and a desire to diversify its steel supply, the Company employed a strategic approach during those fiscal years and increased steel coil purchases to better position itself for subsequent years. The higher cost of steel coil raw materials translated into an elevated container cost and ultimately resulted in an increased cost per unit for the associated finished good product. Working capital was likewise unfavorably impacted during the preceding fiscal years as the Company experienced material cost increases implemented by suppliers affecting various other production inputs aside from steel. These economic conditions contributed to higher cash outflows and an increased cost per unit for the associated finished good product.

Previous wording

During the current fiscal year, the Company has experienced an easing of working capital needs driven by the factors previously mentioned. However, adverse weather conditions during the planting and harvesting seasons have had a notable impact, especially in the upper Midwest where the Company has its primary growing region. Reduced growing conditions and crop yields resulted in a seasonal pack that is lower than originally planned. This in turn has resulted in a higher-cost seasonal pack on a per unit basis as of the six months ended September 28, 2024; however the overall costs from a cash requirements perspective are favorable as compared to the preceding fiscal years.

Current wording

During the current fiscal year, the Company has experienced an easing of working capital needs driven by the factors previously mentioned. However, adverse weather conditions during the planting and harvesting seasons have had a notable impact, especially in the upper Midwest where the Company has its primary growing region. Challenging growing conditions and reduced crop yields resulted in a seasonal pack that is lower than originally planned. This in turn has resulted in a higher-cost seasonal pack on a per unit basis as of the nine months ended December 28, 2024; however, the overall costs from a cash requirements perspective are favorable as compared to the preceding fiscal years.

Previous wording

Net Cash Provided by (Used in) Operating Activities**:** For the six months ended September 28, 2024, cash provided by operating activities was $125.9 million, which consisted of $66.4 million from changes in operating assets and liabilities, coupled with net earnings of $26.0 million and non-cash charges of $33.5 million. The non-cash charges were driven by $22.0 million of depreciation and amortization, $2.9 million of non-cash lease expense, and a $12.1 million LIFO charge. The change in operating assets and liabilities was largely due to working capital needs as the six-month period covered the primary seasonal pack harvest months. Cash utilized for inventories and higher accounts payable activity were the main drivers, although the use of cash for these items was lower than in the prior year six-month interim period resulting from factors discussed above within the material cash requirements section.

Current wording

Net Cash Provided by (Used in) Operating Activities**:** For the nine months ended December 28, 2024, cash provided by operating activities was $243.6 million, which consisted of $142.8 million from changes in operating assets and liabilities, coupled with net earnings of $40.6 million and non-cash charges of $60.2 million. The non-cash charges were mainly comprised of $33.6 million of depreciation and amortization, $4.0 million of non-cash lease expense, and a $23.0 million LIFO charge. The change in operating assets and liabilities was favorably impacted by improved working capital needs during the nine-month period which covered the primary seasonal pack harvest months. The Company experienced a lower utilization of cash for inventories resulting from the higher inventory levels carried into the current fiscal year along with a reduced fiscal year 2025 seasonal pack due to adverse weather conditions. This is consistent with the factors discussed above within the material cash requirements section.

Previous wording

For the six months ended September 30, 2023, cash used in operating activities was $26.3 million, which consisted of net earnings of $47.9 million, adjusted by non-cash charges of $32.2 million, partially offset by operating assets and liabilities using cash of $106.4 million. The non-cash charges were largely driven by $21.8 million of depreciation and amortization, $3.7 million of non-cash lease expense, and a $7.6 million LIFO charge. The change in operating assets and liabilities was due to inventories being a use of cash as the six-month period covered the primary seasonal pack harvest months, in addition to material cost inflation to various production inputs.

Current wording

For the nine months ended December 30, 2023, cash used in operating activities was $128.1 million, which consisted of a use of cash of $249.4 million by operating assets and liabilities partially offset by net earnings of $65.6 million, adjusted by non-cash charges of $55.7 million. The non-cash charges were largely driven by $32.7 million of depreciation and amortization, $5.3 million of non-cash lease expense, and a $19.6 million LIFO charge. The change in operating assets and liabilities was due to inventories being a use of cash as the nine-month period covered the primary seasonal pack harvest months, in addition to material cost inflation affecting various production inputs. The increase in inventories was also impacted by finished goods acquired in the asset acquisition which occurred during the nine-month period.

Previous wording

Net Cash Used in Investing Activities**:**Net cash used in investing activities was $19.9 million for the six months ended September 28, 2024, and consisted of cash used for capital expenditures of $17.6 million and $2.7 million paid as deposits to vendors for the installation of a new can manufacturing line. Offsetting those amounts, the Company received proceeds from the sale of assets totaling $0.4 million.

Current wording

Net Cash Used in Investing Activities**:**Net cash used in investing activities was $28.9 million for the nine months ended December 28, 2024, and consisted of cash used for capital expenditures of $26.7 million and $2.7 million paid as deposits to vendors for the installation of a new can manufacturing line. Offsetting those amounts, the Company received proceeds from the sale of assets totaling $0.5 million.

Previous wording

Net cash used in investing activities was $18.9 million for the six months ended September 30, 2023, and consisted of cash used for capital expenditures of $26.5 million partially offset by proceeds from the sale of assets totaling $7.6 million.

Current wording

Net cash used in investing activities was $23.8 million for the nine months ended December 30, 2023, and consisted of cash used for capital expenditures of $31.8 million partially offset by proceeds from the sale of assets totaling $8.0 million.

Previous wording

Net Cash (Used in) Provided by Financing Activities**:** Net cash used in financing activities was $100.7 million for the six months ended September 28, 2024, driven primarily by a net paydown on the Company’s revolving credit facility of $90.8 million and term loan payments of $9.5 million during the six-month interim period. Offsetting the outflows was a $12.4 million increase in the note payable borrowings associated with the Company’s new can manufacturing line. Additionally, the Company used cash of $10.0 million to purchase treasury stock and made payments of $2.8 million on financing leases.

Current wording

Net Cash (Used in) Provided by Financing Activities**:** Net cash used in financing activities was $213.7 million for the nine months ended December 28, 2024, driven primarily by a net paydown on the Company’s revolving credit facility of $195.0 million. The Company also made payments totaling $14.9 million on its term loans and finance obligation during the nine-month period. Offsetting the outflows was a $12.4 million increase in note payable borrowings associated with the Company’s new can manufacturing line which was converted to a finance obligation during the nine-month period. Additionally, the Company used cash of $10.8 million to purchase treasury stock and made payments of $3.8 million on financing leases.

Previous wording

Net cash provided by financing activities was $45.0 million for the six months ended September 30, 2023, driven primarily by a net paydown on the Company’s revolving credit facility of $45.7 million and term loan payments of $9.5 million. That activity was offset by the Company receiving proceeds of $124.4 million from a new term loan during the six-month interim period. Additionally, the Company used cash of $19.6 million to purchase treasury stock and made payments of $4.6 million on financing leases, which partially offset the increased cash provided.

Current wording

Net cash provided by financing activities was $154.1 million for the nine months ended December 30, 2023, driven primarily by a net increase in borrowings on the Company’s revolving credit facility of $77.5 million and receiving proceeds of $124.4 million from a new term loan during the nine-month period. The increases were partially offset by term loan payments of $14.3 million and $6.4 million of payments on financing leases. Additionally, the Company used cash of $27.1 million to purchase treasury stock.

Previous wording

A description of the Company's critical accounting estimates is contained in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2024. There were no material changes to the Company's critical accounting policies or estimates during the six months ended September 28, 2024.

Current wording

A description of the Company's critical accounting estimates is contained in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2024. There were no material changes to the Company's critical accounting policies or estimates during the nine months ended December 28, 2024.