NATIONAL BEVERAGE CORP

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® sparkling waters; 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 products. Additionally, we produce and distribute carbonated soft drinks including Shasta® and Faygo®, iconic brands whose consumer loyalty spans more than 135 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® sparkling water; 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 products. 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, supply chain disruptions, holiday and seasonal programming and weather conditions. Beverage sales are seasonal with higher sales volume realized during the summer months.

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 2026 decreased 0.9% to $264.6 million from $267.1 million for the third quarter of fiscal 2025. The decrease in sales resulted primarily from a 4.8% decrease in case volume, partially offset by a 4.4% increase in average selling price per case. The decrease in case volume impacted both Power + Brands and carbonated soft drink brands.

Current wording

Net sales for the first quarter of fiscal 2027 were $330.7 million compared to $330.5 million for the first quarter of fiscal 2026. While average selling price per case increased by 7.1%, a 6.4% decline in case volume resulted in approximately flat sales. Both Power+ Brands and carbonated soft drink brands were impacted by the selling price and volume changes.

Previous wording

Gross profit for the third quarter of fiscal 2026 increased to $99.6 million from $99.0 million for the third quarter of fiscal 2025 and gross margin increased to 37.6% from 37.1% The increase in gross margin was primarily due to the increase in average selling price per case, partially offset by increased packaging costs and the effects of reduced case volume. The average cost of sales per case increased 3.4%.

Current wording

Gross profit for the first quarter of fiscal 2027 was $115.8 million compared to $125.5 million for the first quarter of fiscal 2026. The change in gross profit was primarily due to an increase in packaging and ingredients costs and the change in case volume, partially offset by an increase in average selling price per case. The cost of sales per case increased 12.4%. Gross margin was 35.0% compared to 38.0% for the first quarter of fiscal 2026. Aluminum costs negatively affected gross margin by approximately 600 basis points.

Previous wording

Selling, general and administrative expenses for the first nine months of fiscal 2026 increased $1.5 million to $154.3 million from $152.8 million for the first nine months of fiscal 2025. The increase was primarily due to an increase in marketing and selling costs. As a percentage of net sales, selling, general and administrative expenses increased to 17.5% for the first nine months of fiscal 2026 compared to 17.2% for the first nine months of fiscal 2025.

Current wording

Selling, general and administrative expenses for the first quarter of fiscal 2027 increased $2.6 million to $57.3 million from $54.7 million for the first quarter of fiscal 2026. The increases resulted from higher shipping costs, due primarily to increased fuel costs, and higher marketing costs. As a percentage of net sales, selling, general and administrative expenses increased to 17.3% for the first quarter of fiscal 2027 compared to 16.5% for the first quarter of fiscal 2026.

Previous wording

Other income, net includes interest income of $2.8 million for the third quarter of fiscal 2026 and $1.4 million for the third quarter of fiscal 2025. The increase in interest income is due primarily to increased average invested balances.

Current wording

Other income, net includes interest income of $3.3 million for the first quarter of fiscal 2027 and $2.2 million for the first quarter of fiscal 2026. The increase in interest income is due primarily to higher average invested balances.

Previous wording

The Company’s effective income tax rate, based upon estimated annual income tax rates, was 23.6% for the third quarter of fiscal 2026 and 23.7% for the third quarter of fiscal 2025. The difference between the effective rate and the federal statutory rate of 21% was primarily due to the effects of state income taxes.

Current wording

The Company’s effective income tax rate, based upon estimated annual income tax rates, was 23.8% for the first quarter of fiscal 2027 and 23.6% for the first quarter of fiscal 2026. The difference between the effective rate and the federal statutory rate of 21% was primarily due to the effects of state income taxes.

Previous wording

The Company’s principal sources of liquidity are its existing cash and cash-equivalents, cash generated from operating activities and borrowing capacity. At January 31, 2026, we maintained unsecured revolving Credit Facilities and the Loan Facility totaling $150 million, under which no borrowings were outstanding and $2.7 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

The Company’s principal sources of liquidity are its existing cash and cash-equivalents, cash generated from operating activities and borrowing capacity. At August 1, 2026, we maintained the unsecured revolving Credit Facilities and the Loan Facility totaling $150 million, under which no borrowings were outstanding and $2.7 million was reserved for standby letters of credit.

Previous wording

The Company’s cash position increased $120.1 million for the first nine months of fiscal 2026 compared to a decrease of $177.8 million for the first nine months of fiscal 2025 primarily due to the special cash dividend of $304.1 million paid on July 24, 2024.

Current wording

The Company’s cash position decreased $242.4 million for the first quarter of fiscal 2027 compared to an increase of $56.0 million for the first quarter of fiscal 2026 due primarily to the special cash dividend of $304.2 million paid on July 30, 2026.

Previous wording

Net cash provided by operating activities for the first nine months of fiscal 2026 was $135.7 million compared to $146.6 million for the first nine months of fiscal 2025. For the first nine months of fiscal 2026, cash flow provided by operating activities decreased primarily due to a net increase in working capital, excluding cash.

Current wording

Net cash provided by operating activities for the first quarter of fiscal 2027 was $64.9 million compared to $59.1 million for the first quarter of fiscal 2026. For the first quarter of fiscal 2027, cash flow provided by operating activities increased primarily due to a net decrease in working capital, excluding cash, partially offset by the decrease in net income.

Previous wording

Net cash used in investing activities for the first nine months of fiscal 2026 reflects capital expenditures of $15.2 million, compared to capital expenditures of $20.8 million for the first nine months of fiscal 2025. Certain production capacity and efficiency improvement projects are in progress and we anticipate fiscal 2026 capital expenditures will not exceed fiscal 2025 capital spending.

Current wording

Net cash used in investing activities reflects capital expenditures of $3.1 million for each of the first quarters ended fiscal 2027 and fiscal 2026. Certain packaging and efficiency improvement projects at our production facilities are in progress and we anticipate fiscal 2027 capital expenditures to be comparable to fiscal 2026 capital spending.

Previous wording

Net cash used in financing activities for the first nine months of fiscal 2026 primarily reflects the repurchase of common shares for $0.7 million.

Current wording

Net cash used in financing activities for the first quarter of fiscal 2027 reflects the payments of a special dividend of $304.2 million.

Previous wording

At January 31, 2026, working capital increased $149.6 million to $416.0 million from $266.4 million at May 3, 2025. The current ratio was 4.4 to 1 at January 31, 2026 compared to 2.9 to 1 at May 3, 2025. The increase in working capital and current ratio was due primarily to an increase in cash and cash equivalents of $120.1 million, a decrease in accounts payable and accrued liabilities of $19.6 million, and other net working capital increases of $9.8 million. Trade receivables decreased $6.7 million and days sales outstanding increased to 33.5 days from 32.5 days. Inventories increased $11.0 million and inventory turns decreased to 8.3 times from 8.7 times.

Current wording

At August 1, 2026, working capital was $190.6 million compared to $457.8 million at May 2, 2026. The current ratio was 2.4 to 1 at August 1, 2026 compared to 4.4 to 1 at May 2, 2026. The change in working capital and current ratio was due primarily to the payment of the $304.2 million cash dividend. Trade receivables increased $1.5 million and days sales outstanding decreased to 29.1 days from 31.9 days. Inventories increased $4.9 million and inventory turns decreased to 7.7 times from 8.2 times.