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Table of Contents



UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended January 27, 2024

or

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Commission file number 1-14170

 

NATIONAL BEVERAGE CORP.

(Exact name of registrant as specified in its charter)

 

Delaware59-2605822
(State of incorporation)(I.R.S. Employer Identification No.)

 

8100 SW Tenth Street, Suite 4000, Fort Lauderdale, FL 33324

(Address of principal executive offices including zip code)

 

(954) 581-0922

(Registrant’s telephone number including area code)

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

 

Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $.01 per shareFIZZThe NASDAQ Global Select Market

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   Yes ☑ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act. Large accelerated filer ☑ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company 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. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No ☑

 

The number of shares of registrant’s common stock outstanding as of March 4, 2024 was 93,541,346.

 

 

 

 

 

NATIONAL BEVERAGE CORP.

QUARTERLY REPORT ON FORM 10-Q

INDEX

 

 

 

PART I - FINANCIAL INFORMATION

 

Item 1. Financial Statements (Unaudited) Page
   
Condensed Consolidated Balance Sheets as of January 27, 2024 and April 29, 2023 3
   

Condensed Consolidated Statements of Income for the Three and Nine Months Ended January 27, 2024 and January 28, 2023

4
   

Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended January 27, 2024 and January 28, 2023

5
   

Condensed Consolidated Statements of Shareholders’ Equity for the Three and Nine Months Ended January 27, 2024 and January 28, 2023

6
   

Condensed Consolidated Statements of Cash Flows for the Nine Months Ended January 27, 2024 and January 28, 2023

7
   
Notes to Condensed Consolidated Financial Statements 8
   

Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

11
   
Item 3. Quantitative and Qualitative Disclosures about Market Risk 14
   
Item 4. Controls and Procedures 14
   
PART II - OTHER INFORMATION
   
Item 1A. Risk Factors 15
   
Item 6. Exhibits 15
   
Signature 16

 

 

 

 

PART I - FINANCIAL INFORMATION

 

ITEM 1.   FINANCIAL STATEMENTS

NATIONAL BEVERAGE CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In thousands, except share data)


 

  

January 27,

  

April 29,

 
  

2024

  

2023

 

Assets

        

Current assets:

        

Cash and equivalents

 $276,961  $158,074 

Trade receivables - net

  101,731   104,918 

Inventories

  88,670   93,578 

Prepaid and other assets

  21,784   9,835 

Total current assets

  489,146   366,405 

Property, plant and equipment - net

  153,805   148,423 

Right-of-use assets

  56,929   39,506 

Goodwill

  13,145   13,145 

Intangible assets

  1,615   1,615 

Other assets

  5,240   5,248 

Total assets

 $719,880  $574,342 
         

Liabilities and Shareholders' Equity

        

Current liabilities:

        

Accounts payable

 $73,310  $85,106 

Accrued liabilities

  45,413   47,318 

Operating lease obligations

  13,585   11,745 

Income taxes payable

  789   152 

Total current liabilities

  133,097   144,321 

Deferred income taxes - net

  24,889   19,814 

Operating lease obligations

  44,571   29,782 

Other liabilities

  7,102   7,938 

Total liabilities

  209,659   201,855 

Shareholders' equity:

        

Preferred stock, $1 par value - 1,000,000 shares authorized:

        

Series C - 150,000 shares issued

  150   150 

Common stock, $.01 par value - 200,000,000 shares authorized; 101,908,458 shares issued (101,727,658 shares at April 29)

  1,019   1,017 

Additional paid-in capital

  41,738   40,393 

Retained earnings

  491,356   358,345 

Accumulated other comprehensive income (loss)

  191   (3,185)

Treasury stock - at cost:

        

Series C preferred stock - 150,000 shares

  (5,100)  (5,100)

Common stock - 8,374,112 shares

  (19,133)  (19,133)

Total shareholders' equity

  510,221   372,487 

Total liabilities and shareholders' equity

 $719,880  $574,342 

         

See accompanying Notes to Condensed Consolidated Financial Statements.    

 

 

 

NATIONAL BEVERAGE CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(In thousands, except per share amounts)


 

 

   

Three Months Ended

   

Nine Months Ended

 
   

January 27,

   

January 28,

   

January 27,

   

January 28,

 
   

2024

   

2023

   

2024

   

2023

 
                                 

Net sales

  $ 270,065     $ 268,483     $ 894,379     $ 886,233  
                                 

Cost of sales

    173,034       173,561       575,009       591,914  
                                 

Gross profit

    97,031       94,922       319,370       294,319  
                                 

Selling, general and administrative expenses

    48,850       50,488       153,785       156,484  
                                 

Operating income

    48,181       44,434       165,585       137,835  
                                 

Other income - net

    1,967       482       6,745       484  
                                 

Income before income taxes

    50,148       44,916       172,330       138,319  
                                 

Provision for income taxes

    10,556       10,555       39,319       32,458  
                                 

Net income

  $ 39,592     $ 34,361     $ 133,011     $ 105,861  
                                 

Earnings per common share:

                               

Basic

  $ .42     $ .37     $ 1.42     $ 1.13  

Diluted

  $ .42     $ .37     $ 1.42     $ 1.13  
                                 

Weighted average common shares outstanding:

                               

Basic

    93,454       93,353       93,389       93,345  

Diluted

    93,640       93,611       93,618       93,604  

 

See accompanying Notes to Condensed Consolidated Financial Statements.        

 

 

 

NATIONAL BEVERAGE CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(In thousands)


 

 

   

Three Months Ended

   

Nine Months Ended

 
   

January 27,

   

January 28,

   

January 27,

   

January 28,

 
   

2024

   

2023

   

2024

   

2023

 
                                 

Net income

  $ 39,592     $ 34,361     $ 133,011     $ 105,861  
                                 

Other comprehensive income (loss), net of tax:

                               
Cash flow hedges     2,732       9,856       3,376       (6,594 )
                                 

Comprehensive income

  $ 42,324     $ 44,217     $ 136,387     $ 99,267  

 

See accompanying Notes to Condensed Consolidated Financial Statements.        

 

 

 

NATIONAL BEVERAGE CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED)

(In thousands)


 

   

Three Months Ended

   

Nine Months Ended

 
   

January 27, 2024

   

January 28, 2023

   

January 27, 2024

   

January 28, 2023

 
   

Shares

   

Amount

   

Shares

   

Amount

   

Shares

   

Amount

   

Shares

   

Amount

 

Series C Preferred Stock

                                                               

Beginning and end of period

    150     $ 150       150     $ 150       150     $ 150       150     $ 150  
                                                                 

Common Stock

                                                               

Beginning of period

    101,766       1,018       101,726       1,017       101,727       1,017       101,712       1,017  

Stock options exercised

    142       1       1       -       181       2       15       -  

End of Period

    101,908       1,019       101,727       1,017       101,908       1,019       101,727       1,017  
                                                                 

Additional Paid-In Capital

                                                               

Beginning of period

            41,012               40,032               40,393               39,405  

Stock options exercised

            562               7               841               292  

Stock-based compensation

            164               165               504               507  

End of period

            41,738               40,204               41,738               40,204  
                                                                 

Retained Earnings

                                                               

Beginning of period

            451,764               287,681               358,345               216,181  

Net income

            39,592               34,361               133,011               105,861  

End of period

            491,356               322,042               491,356               322,042  
                                                                 

Accumulated Other Comprehensive (Loss) Income

                                                               

Beginning of period

            (2,541 )             (9,532 )             (3,185 )             6,918  

Cash flow hedges, net of tax

            2,732               9,856               3,376               (6,594 )

End of period

            191               324               191               324  
                                                                 

Treasury Stock - Series C Preferred

                                                               

Beginning and end of period

    150       (5,100 )     150       (5,100 )     150       (5,100 )     150       (5,100 )
                                                                 

Treasury Stock - Common

                                                               

Beginning and end of period

    8,374       (19,133 )     8,374       (19,133 )     8,374       (19,133 )     8,374       (19,133 )
                                                                 

Total Shareholders' Equity

          $ 510,221             $ 339,504             $ 510,221             $ 339,504  

 

See accompanying Notes to Condensed Consolidated Financial Statements.

 

 

 

NATIONAL BEVERAGE CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(In thousands)


 

   

Nine Months Ended

 
   

January 27,

   

January 28,

 
   

2024

   

2023

 

Operating Activities:

               

Net income

  $ 133,011     $ 105,861  

Adjustments to reconcile net income to net cash provided by operating activities:

               

Depreciation and amortization

    15,089       15,552  

Deferred income tax provision

    4,024       3,266  

Loss on sale of property, plant and equipment, net

    3       20  

Stock-based compensation

    504       507  

Amortization of operating right-of-use assets

    10,482       9,946  

Changes in assets and liabilities:

               

Trade receivables

    3,187       (3,512 )

Inventories

    4,908       9,727  

Operating lease right-of-use assets

    (27,905 )     (19,539 )

Prepaid and other assets

    (3,186 )     1,832  

Accounts payable

    (11,796 )     (26,311 )

Accrued and other liabilities

    (7,485 )     5,271  

Operating lease obligation

    16,629       9,633  

Net cash provided by operating activities

    137,465       112,253  
                 

Investing Activities:

               

Additions to property, plant and equipment

    (19,464 )     (12,282 )

Proceeds from sale of property, plant and equipment

    45       11  

Net cash used in investing activities

    (19,419 )     (12,271 )
                 

Financing Activities:

               

Proceeds from stock options exercised

    841       292  

Repayments of Loan Facility

    -       (30,000 )

Net cash provided by (used in) financing activities

    841       (29,708 )
                 

Net Increase in Cash and Equivalents

    118,887       70,274  
                 

Cash and Equivalents - Beginning of Period

    158,074       48,050  
                 

Cash and Equivalents - End of Period

  $ 276,961     $ 118,324  
                 

Other Cash Flow Information:

               

Interest paid

  $ 146     $ 291  

Income taxes paid

  $ 43,549     $ 27,411  

 

See accompanying Notes to Condensed Consolidated Financial Statements.    

 

 

NATIONAL BEVERAGE CORP. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

National Beverage Corp. develops, produces, markets and sells a distinctive portfolio of sparkling waters, juices, energy drinks and carbonated soft drinks primarily in the United States and Canada. Incorporated in Delaware in 1985, National Beverage Corp. is a holding company for various operating subsidiaries. When used in this report, the terms “we,” “us,” “our,” “Company” and “National Beverage” mean National Beverage Corp. and its subsidiaries.

 

 

1. SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

The condensed consolidated financial statements include the accounts of National Beverage Corp. and its subsidiaries. Significant intercompany transactions and accounts have been eliminated.

 

The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles and rules and regulations of the Securities and Exchange Commission for interim financial reporting. Accordingly, they do not include all information and notes presented in the annual consolidated financial statements. The condensed consolidated financial statements should be read in conjunction with the annual consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the fiscal year ended April 29, 2023. The accounting policies used in these interim unaudited condensed consolidated financial statements are consistent with those used in the annual consolidated financial statements.

 

The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the interim unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Results for the interim periods presented are not necessarily indicative of results which might be expected for the entire fiscal year.

 

Inventories

Inventories are stated at the lower of first-in, first-out cost or net realizable market. Inventories at January 27, 2024 were comprised of finished goods of $53.1 million and raw materials of $35.6 million. Inventories at April 29, 2023 were comprised of finished goods of $54.3 million and raw materials of $39.2 million.

 

Marketing Costs

The Company utilizes a variety of marketing programs, including cooperative advertising programs with customers, to advertise and promote its beverages to consumers. Marketing costs are expensed when incurred, except for prepaid advertising and production costs, which are expensed when the advertising takes place. Marketing costs, which are included in selling, general and administrative expenses, were $11.0 million and $10.4 million for the three months ended January 27, 2024 and January 28, 2023, respectively. Marketing costs were $35.1 million and $31.0 million for the nine months ended January 27, 2024 and January 28, 2023, respectively.

 

8

 

Shipping and Handling Costs

Shipping and handling costs are reported in selling, general and administrative expenses in the accompanying condensed consolidated statements of income. Such costs were $17.7 million and $20.2 million for the three months ended January 27, 2024 and January 28, 2023, respectively. Shipping and handling costs were $58.3 million and $65.8 million for the nine months ended January 27, 2024 and January 28, 2023, respectively. Although our classification is consistent with many beverage companies, our gross margin may not be comparable to companies that include shipping and handling costs in cost of sales.

 

 

2. PROPERTY, PLANT AND EQUIPMENT

 

Property, plant and equipment consist of the following:

 

  

(In thousands)

 
  

January 27,

2024

  

April 29,

2023

 

Land

 $9,835  $9,835 

Buildings and improvements

  71,296   70,615 

Machinery and equipment

  307,066   289,567 

Total

  388,197   370,017 

Less: accumulated depreciation

  (234,392)  (221,594)

Property, plant and equipment – net

 $153,805  $148,423 

 

Depreciation expense was $4.8 million and $4.5 million for the three months ended January 27, 2024 and January 28, 2023, respectively. Depreciation expense was $14.0 million and $13.5 million for the nine months ended January 27, 2024 and January 28, 2023, respectively.

 

 

3. DEBT

 

At January 27, 2024, a subsidiary of the Company maintained unsecured revolving credit facilities with banks aggregating $100 million (the “Credit Facilities”). The Credit Facilities expire from October 28, 2024 to May 30, 2025 and any borrowings would currently bear interest at 1.05% above the Secured Overnight Financing Rate (SOFR). There were no borrowings outstanding under the Credit Facilities at January 27, 2024 or April 29, 2023. At January 27, 2024, $2.2 million of the Credit Facilities was reserved for standby letters of credit and $97.8 million was available for borrowings.

 

On December 21, 2021, a subsidiary of the Company entered into an unsecured revolving term loan facility with a national bank aggregating $50 million (the “Loan Facility”). There were no borrowings outstanding under the Loan Facility at January 27, 2024 or April 29, 2023. The Loan Facility expires December 31, 2025 and any borrowings would bear interest at 1.05% above the adjusted daily SOFR.

 

The Credit Facilities and Loan Facility require the subsidiary to maintain certain financial ratios, including debt to net worth and debt to EBITDA (as defined in the credit agreements), and contain other restrictions, none of which are expected to have a material effect on operations or financial position. At January 27, 2024, the subsidiary was in compliance with all loan covenants.

 

9

 
 

4. STOCK OPTIONS

 

During the nine months ended January 27, 2024 no options were granted, options to purchase 180,800 shares were exercised and options to purchase 6,400 shares were cancelled at weighted average exercise prices of $4.65 and $31.49, respectively. At January 27, 2024, options to purchase 334,100 shares at a weighted average exercise price of $24.10 per share were outstanding and stock-based awards to purchase 5,393,405 shares of common stock were available for grant.

 

 

5. DERIVATIVE FINANCIAL INSTRUMENTS

 

From time to time, we enter into aluminum swap contracts to partially mitigate our exposure to changes in the cost of aluminum containers. Such financial instruments are designated and accounted for as cash flow hedges. Accordingly, gains or losses attributable to the effective portion of the cash flow hedge are reported in accumulated other comprehensive income (loss) (“AOCI”) and reclassified into cost of sales in the period in which the hedged transaction affects earnings. The ineffective portion of the change in fair value of our cash flow hedge was immaterial. The following summarizes the gains (losses) recognized in the Condensed Consolidated Statements of Income and AOCI:

 

  

(In thousands)

 
  

Three Months Ended

  

Nine Months Ended

 
  

January 27,

2024

  

January 28,

2023

  

January 27,

2024

  

January 28,

2023

 

Recognized in AOCI:

                

Gain (loss) before income taxes

 $1,465  $10,918  $(4,916) $(14,419)

Less: income tax provision (benefit)

  350   2,612   (1,176)  (3,449)

Net

  1,115   8,306   (3,740)  (10,970)

Reclassified from AOCI to cost of sales:

                

Loss before income taxes

  (2,126)  (2,036)  (9,353)  (5,750)

Less: income tax benefit

  (509)  (486)  (2,237)  (1,374)

Net

  (1,617)  (1,550)  (7,116)  (4,376)

Net change to AOCI

 $2,732  $9,856  $3,376  $(6,594)

 

 

As of January 27, 2024, the notional amount of our outstanding aluminum swap contracts was $70.4 million and, assuming no change in commodity prices, $0.6 million of unrealized loss before tax will be reclassified from AOCI and recognized in earnings over the next 12 months.

 

As of January 27, 2024 and April 29, 2023 the fair value of the derivative liability, which was included in accrued liabilities, was $1.4 million and $4.6 million, respectively. As of January 27, 2024, the fair value of the derivative asset was $0.8 million, which was included in prepaid and other assets and the fair value of the long-term derivative asset was $0.4 million, which was included in other assets. Such valuation does not entail a significant amount of judgment and the inputs that are significant to the fair value measurement are Level 2 as defined by the fair value hierarchy as they are observable market based inputs or unobservable inputs that are corroborated by market data.

 

10

 
 

6. LEASES

 

The Company has entered into various non-cancelable operating lease agreements for certain offices, buildings and machinery and equipment which expire at various dates through July 2035. The Company does not assume renewals in the determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. Lease agreements generally do not contain material residual value guarantees or material restrictive covenants. Operating lease costs were $4.1 million and $3.6 million for the three months ended January 27, 2024 and January 28, 2023, respectively. Operating lease costs were $11.8 million and $10.7 million for the nine months ended January 27, 2024 and January 28, 2023, respectively. As of January 27, 2024, the weighted-average remaining lease term and weighted average discount rate of operating leases was 4.95 years and 4.28%, respectively. As of April 29, 2023, the weighted-average remaining lease term and weighted average discount rate of operating leases was 4.34 years and 3.30%, respectively. Cash payments were $3.5 million and $3.7 million for operating leases for the three months ended January 27, 2024 and January 28, 2023, respectively. Cash payments were $11.4 million and $10.8 million for the nine months ended January 27, 2024 and January 28, 2023, respectively.

 

The following is a summary of future minimum lease payments and related liabilities for all non-cancelable operating leases as of January 27, 2024:

 

  

(In thousands)

 

Fiscal 2024 – Remaining quarter

 $4,078 

Fiscal 2025

  15,047 

Fiscal 2026

  13,363 

Fiscal 2027

  11,828 

Fiscal 2028

  6,927 

Thereafter

  13,873 

Total minimum lease payments including interest

  65,116 

Less: amounts representing interest

  (6,960)

Present value of minimum lease payments

  58,156 

Less: current portion of lease obligations

  (13,585)

Non-current portion of lease obligations

 $44,571 

 

 

7.  RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

 

In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-07, Segment Reporting (Topic 280), to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This standard does not change how an entity identifies its operating segments or applies the quantitative thresholds to determine its reportable segments. The standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of adoption of this standard on its consolidated financial statements and does not expect a material impact upon adoption.

 

 

ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

OVERVIEW

 

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.

 

Our strategy seeks the profitable growth of our products by (i) developing healthier beverages in response to the global shift in consumer buying habits and tailoring our beverage portfolio to the preferences of a diverse mix of ‘crossover consumers’ – a growing group desiring a healthier alternative to artificially sweetened and high-caloric beverages; (ii) emphasizing unique flavor development and variety throughout our brands that appeal to multiple demographic groups; (iii) maintaining points of difference through innovative marketing, packaging and consumer engagement and (iv) responding faster and more creatively to changing consumer trends than larger competitors who are burdened by legacy production and distribution complexity and costs.

 

 

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.

 

Presently, our primary market focus is the United States and Canada. Certain of our beverages are also distributed on a limited basis in other countries and options to expand distribution to other regions are being pursued. To service a diverse customer base that includes numerous national retailers, as well as thousands of smaller “up-and-down-the-street” accounts, we utilize a hybrid distribution system consisting of warehouse and direct-store delivery. The warehouse delivery system allows our retail partners to further maximize their assets by utilizing their ability to pick up beverages at our warehouses, further lowering their/our costs.

 

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.

 

RESULTS OF OPERATIONS

 

Three Months Ended January 27, 2024 (third quarter of fiscal 2024) compared to

Three Months Ended January 28, 2023 (third quarter of fiscal 2023)

 

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.

 

Gross profit for the third quarter of fiscal 2024 increased to $97.0 million from $94.9 million for the third quarter of fiscal 2023. The increase in gross profit was primarily due to the increased average selling price per case. The cost of sales per case was flat and gross margin increased to 35.9% from 35.4% for the third quarter of fiscal 2023.

 

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.

 

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.

 

 

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.

 

Nine Months Ended January 27, 2024 (first nine months of fiscal 2024) compared to

Nine Months Ended January 28, 2023 (first nine months of fiscal 2023)

 

Net sales for the first nine months of fiscal 2024 increased $8.2 million to $894.4 million from $886.2 million for the first nine months of fiscal 2023. The increase in sales resulted primarily from a 2.6% increase in average selling price per case, partially offset by a 2.1% decline in case volume. The volume decline primarily impacted Power+ Brands, partially offset by an increase in carbonated soft drink brands.

 

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.

 

Selling, general and administrative expenses for the first nine months of fiscal 2024 decreased $2.7 million to $153.8 million from $156.5 million for the first nine months 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 17.2% from 17.7% for the first nine months of fiscal 2023.

 

Other income – net includes interest income of $5.8 million for the first nine months of fiscal 2024 and $0.5 million for the first nine months of fiscal 2023. The increase in interest income is due to increased average invested balances and higher yields.

 

The Company’s effective income tax rate, based upon estimated annual income tax rates, was 22.8% for the first nine months of fiscal 2024 and 23.5% for the first nine months 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.

 

LIQUIDITY AND FINANCIAL CONDITION

 

Liquidity and Capital Resources

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.

 

Cash Flows

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.

 

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.

 

 

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.

 

Financial Position

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.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

There have been no material changes in market risks from those reported in our Annual Report on Form 10-K for the fiscal year ended April 29, 2023.

 

ITEM 4. CONTROLS AND PROCEDURES

 

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of the Company’s management, including our Chief Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our “disclosure controls and procedures” (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934). Based upon that evaluation, the Chief Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures were effective to ensure information required to be disclosed by us in reports we file or submit under the Exchange Act is (1) recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and (2) accumulated and communicated to our management, including our Chief Executive Officer and Principal Financial Officer, to allow timely decisions regarding required disclosure.

 

There were no changes in our internal control over financial reporting during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

FORWARD-LOOKING STATEMENTS

 

National Beverage Corp. and its representatives may make written or oral statements relating to future events or results relative to our financial, operational and business performance, achievements, objectives and strategies. These statements are “forward-looking” within the meaning of the Private Securities Litigation Reform Act of 1995 and include statements contained in this report and other filings with the Securities and Exchange Commission and in reports to our stockholders. Certain statements including, without limitation, statements containing the words “believes,” “anticipates,” “intends,” “plans,” “expects,” and “estimates” constitute “forward-looking statements” and involve known and unknown risk, uncertainties and other factors that may cause the actual results, performance or achievements of our Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the following: general economic and business conditions, pricing of competitive beverages, success of new product and flavor introductions, fluctuations in the costs and availability of raw materials and packaging supplies, ability to pass along cost increases to our customers, labor strikes or work stoppages or other interruptions in the employment of labor, continued retailer support for our beverages, changes in brand image, consumer demand and preferences and our success in creating beverages geared toward consumers’ tastes, success in implementing business strategies, changes in business strategy or development plans, government regulations, taxes or fees imposed on the sale of our beverages, unfavorable weather conditions and other factors referenced in this report, filings with the Securities and Exchange Commission and other reports to our stockholders. We disclaim an obligation to update any such factors or to publicly announce the results of any revisions to any forward-looking statements contained herein to reflect future events or developments.

 

 

PART II - OTHER INFORMATION

 

 

ITEM 1A. RISK FACTORS

 

There have been no material changes in risk factors from those reported in our Annual Report on Form 10-K for the fiscal year ended April 29, 2023.

 

ITEM 6. EXHIBITS

 

Exhibit No. Description
   
31.1 Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
   
31.2 Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
   
32.1 Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
   
32.2 Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
   
101 The following financial information from National Beverage Corp. Quarterly Report on Form 10-Q for the quarterly period ended January 27, 2024, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets (Unaudited); (ii) Condensed Consolidated Statements of Income (Unaudited); (iii) Condensed Consolidated Statements of Comprehensive Income (Unaudited); (iv) Condensed Consolidated Statements of Shareholders’ Equity (Unaudited); (v) Condensed Consolidated Statements of Cash Flows (Unaudited); and (vi) the Notes to Condensed Consolidated Financial Statements (Unaudited).
   
104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

 

 

 

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 thereunto duly authorized.

 

Date: March 7, 2024  
   
 

National Beverage Corp.

(Registrant)

     
  By: /s/ George R. Bracken
    George R. Bracken
    Executive Vice President – Finance
    (Principal Financial Officer)

 

16

 

EXHIBIT 31.1

 

CERTIFICATION

 

I, Nick A. Caporella, certify that:

 

1.

I have reviewed this quarterly report on Form 10-Q of National Beverage Corp.;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

 

a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

 

b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

Date: March 7, 2024

 

/s/ Nick A. Caporella

Nick A. Caporella

Chairman of the Board and

Chief Executive Officer

 

EXHIBIT 31.2

 

CERTIFICATION

 

I, George R. Bracken, certify that:

 

1.

I have reviewed this quarterly report on Form 10-Q of National Beverage Corp.;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

 

a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

 

b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

Date: March 7, 2024

 

/s/ George R. Bracken

George R. Bracken

Executive Vice President – Finance

(Principal Financial Officer)

 

 

EXHIBIT 32.1

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

 

In connection with the Quarterly Report of National Beverage Corp. (the “Company”) on Form 10-Q for the period ended January 27, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Nick A. Caporella, Chairman of the Board and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

 

(1)

The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Date: March 7, 2024

 

/s/ Nick A. Caporella

Nick A. Caporella

Chairman of the Board and

Chief Executive Officer

 

 

EXHIBIT 32.2

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

 

In connection with the Quarterly Report of National Beverage Corp. (the “Company”) on Form 10-Q for the period ended January 27, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, George R. Bracken, Executive Vice President - Finance of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

 

(1)

The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

 

Date: March 7, 2024

 

/s/ George R. Bracken

George R. Bracken

Executive Vice President – Finance

(Principal Financial Officer)

 

 

 

 

 

 

 
v3.24.0.1
Document And Entity Information - shares
9 Months Ended
Jan. 27, 2024
Mar. 04, 2024
Document Information [Line Items]    
Entity Central Index Key 0000069891  
Entity Registrant Name National Beverage Corp.  
Amendment Flag false  
Current Fiscal Year End Date --04-27  
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2024  
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Entity File Number 1-14170  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 59-2605822  
Entity Address, Address Line One 8100 SW Tenth Street, Suite 4000  
Entity Address, City or Town Fort Lauderdale  
Entity Address, State or Province FL  
Entity Address, Postal Zip Code 33324  
City Area Code 954  
Local Phone Number 581-0922  
Title of 12(b) Security Common Stock, par value $.01 per share  
Trading Symbol FIZZ  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
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Entity Common Stock, Shares Outstanding   93,541,346
v3.24.0.1
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)
$ in Thousands
Jan. 27, 2024
Apr. 29, 2023
Assets    
Cash and equivalents $ 276,961 $ 158,074
Trade receivables - net 101,731 104,918
Inventories 88,670 93,578
Prepaid and other assets 21,784 9,835
Total current assets 489,146 366,405
Property, plant and equipment - net 153,805 148,423
Right-of-use assets 56,929 39,506
Goodwill 13,145 13,145
Intangible assets 1,615 1,615
Other assets 5,240 5,248
Total assets 719,880 574,342
Liabilities and Shareholders' Equity    
Accounts payable 73,310 85,106
Accrued liabilities 45,413 47,318
Operating lease obligations 13,585 11,745
Income taxes payable 789 152
Total current liabilities 133,097 144,321
Deferred income taxes net 24,889 19,814
Operating lease obligations 44,571 29,782
Other liabilities 7,102 7,938
Total liabilities 209,659 201,855
Shareholders' equity:    
Preferred stock, $1 par value - 1,000,000 shares authorized: Series C - 150,000 shares issued 150 150
Common stock, $.01 par value - 200,000,000 shares authorized; 101,908,458 shares issued (101,727,658 shares at April 29) 1,019 1,017
Additional paid-in capital 41,738 40,393
Retained earnings 491,356 358,345
Accumulated other comprehensive income (loss) 191 (3,185)
Common stock - 8,374,112 shares (19,133) (19,133)
Total shareholders' equity 510,221 372,487
Total liabilities and shareholders' equity 719,880 574,342
Series C Preferred Stock [Member]    
Shareholders' equity:    
Treasury stock - at cost: Series C preferred stock - 150,000 shares $ (5,100) $ (5,100)
v3.24.0.1
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares
Jan. 27, 2024
Apr. 29, 2023
Preferred stock, par value (in dollars per share) $ 1 $ 1
Preferred stock, shares authorized (in shares) 1,000,000 1,000,000
Preferred stock, shares issued (in shares) 150,000 150,000
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 200,000,000 200,000,000
Common stock, shares issued (in shares) 101,908,458 101,727,658
Common stock, shares (in shares) 8,374,112 8,374,112
Series C Preferred Stock [Member]    
Series C preferred stock, shares (in shares) 150,000 150,000
v3.24.0.1
Condensed Consolidated Statements of Income (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Jan. 27, 2024
Jan. 28, 2023
Jan. 27, 2024
Jan. 28, 2023
Net sales $ 270,065 $ 268,483 $ 894,379 $ 886,233
Cost of sales 173,034 173,561 575,009 591,914
Gross profit 97,031 94,922 319,370 294,319
Selling, general and administrative expenses 48,850 50,488 153,785 156,484
Operating income 48,181 44,434 165,585 137,835
Other income - net 1,967 482 6,745 484
Income before income taxes 50,148 44,916 172,330 138,319
Provision for income taxes 10,556 10,555 39,319 32,458
Net income $ 39,592 $ 34,361 $ 133,011 $ 105,861
Earnings per common share:        
Basic (in dollars per share) $ 42 $ 37 $ 1.42 $ 1.13
Diluted (in dollars per share) $ 42 $ 37 $ 1.42 $ 1.13
Weighted average common shares outstanding:        
Basic (in shares) 93,454 93,353 93,389 93,345
Diluted (in shares) 93,640 93,611 93,618 93,604
v3.24.0.1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Jan. 27, 2024
Jan. 28, 2023
Jan. 27, 2024
Jan. 28, 2023
Net income $ 39,592 $ 34,361 $ 133,011 $ 105,861
Cash flow hedges 2,732 9,856 3,376 (6,594)
Comprehensive income $ 42,324 $ 44,217 $ 136,387 $ 99,267
v3.24.0.1
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($)
$ in Thousands
Total
Common Stock Outstanding [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
AOCI Attributable to Parent [Member]
Treasury Stock, Common [Member]
Series C Preferred Stock [Member]
Preferred Stock [Member]
Series C Preferred Stock [Member]
Treasury Stock, Preferred [Member]
Balance (in shares)   101,712,000         150,000  
Balance   $ 1,017 $ 39,405 $ 216,181 $ 6,918   $ 150  
Balance (in shares) at Apr. 30, 2022   101,712,000         150,000  
Balance at Apr. 30, 2022   $ 1,017 39,405 216,181 6,918   $ 150  
Stock options exercised (in shares)   15,000            
Stock options exercised   $ 0 292          
Balance at Jan. 28, 2023 $ 339,504 $ 1,017 40,204 322,042 324 $ (19,133)   $ (5,100)
Stock-based compensation     507          
Net income 105,861     105,861        
Cash flow hedges, net of tax (6,594)       (6,594)      
Balance (in shares)   101,726,000         150,000  
Balance   $ 1,017 40,032 287,681 (9,532)   $ 150  
Balance (in shares) at Oct. 29, 2022   101,726,000         150,000  
Balance at Oct. 29, 2022   $ 1,017 40,032 287,681 (9,532)   $ 150  
Stock options exercised (in shares)   1,000            
Stock options exercised   $ 0 7          
Balance at Jan. 28, 2023 339,504 $ 1,017 40,204 322,042 324 $ (19,133)   $ (5,100)
Stock-based compensation     165          
Net income 34,361     34,361        
Cash flow hedges, net of tax 9,856       9,856      
Balance (in shares)   101,727,000       8,374,000   150,000
Balance 339,504 $ 1,017 40,204 322,042 324 $ (19,133)   $ (5,100)
Balance (in shares)   101,727,000         150,000  
Balance 372,487 $ 1,017 40,393 358,345 (3,185)   $ 150  
Balance (in shares) at Apr. 29, 2023   101,727,000         150,000  
Balance at Apr. 29, 2023 $ 372,487 $ 1,017 40,393 358,345 (3,185)   $ 150  
Stock options exercised (in shares) 180,800 181,000            
Stock options exercised   $ 2 841          
Balance at Jan. 27, 2024 $ 510,221 $ 1,019 41,738 491,356 191 (19,133)   (5,100)
Stock-based compensation     504          
Net income 133,011     133,011        
Cash flow hedges, net of tax 3,376       3,376      
Balance (in shares)   101,766,000         150,000  
Balance   $ 1,018 41,012 451,764 (2,541)   $ 150  
Balance (in shares) at Oct. 28, 2023   101,766,000         150,000  
Balance at Oct. 28, 2023   $ 1,018 41,012 451,764 (2,541)   $ 150  
Stock options exercised (in shares)   142,000            
Stock options exercised   $ 1 562          
Balance at Jan. 27, 2024 510,221 $ 1,019 41,738 491,356 191 $ (19,133)   $ (5,100)
Stock-based compensation     164          
Net income 39,592     39,592        
Cash flow hedges, net of tax 2,732       2,732      
Balance (in shares)   101,908,000       8,374,000   150,000
Balance $ 510,221 $ 1,019 $ 41,738 $ 491,356 $ 191 $ (19,133)   $ (5,100)
v3.24.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
9 Months Ended
Jan. 27, 2024
Jan. 28, 2023
Operating Activities:    
Net income $ 133,011 $ 105,861
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 15,089 15,552
Deferred income tax provision 4,024 3,266
Loss on sale of property, plant and equipment, net 3 20
Stock-based compensation 504 507
Amortization of operating right-of-use assets 10,482 9,946
Changes in assets and liabilities:    
Trade receivables 3,187 (3,512)
Inventories 4,908 9,727
Operating lease right-of-use assets (27,905) (19,539)
Prepaid and other assets (3,186) 1,832
Accounts payable (11,796) (26,311)
Accrued and other liabilities (7,485) 5,271
Operating lease obligation 16,629 9,633
Net cash provided by operating activities 137,465 112,253
Investing Activities:    
Additions to property, plant and equipment (19,464) (12,282)
Proceeds from sale of property, plant and equipment 45 11
Net cash used in investing activities (19,419) (12,271)
Financing Activities:    
Proceeds from stock options exercised 841 292
Repayments of Loan Facility 0 (30,000)
Net cash provided by (used in) financing activities 841 (29,708)
Net Increase in Cash and Equivalents 118,887 70,274
Cash and Equivalents - Beginning of Period 158,074 48,050
Cash and Equivalents - End of Period 276,961 118,324
Other Cash Flow Information:    
Interest paid 146 291
Income taxes paid $ 43,549 $ 27,411