Introduces Attractive Long-term Net Revenue, Adjusted EBITDA, and EPS Growth Algorithm
At the virtual event, Chief Executive Officer
“We believe we have built a fantastic foundation at
At today’s event,
Business in growing spaces.
Hostess Brandscompetes in, and is focused on, fast-growing snacking occasions with meaningful opportunity to grow. Our portfolio plays across a much wider occasion map than sweet baked goods alone and the Company believes it is well positioned to capitalize on these occasions.
- Best-in-class business model. The Company’s business model is built on four key pillars – wide availability, beloved brands, a unique go-to-market approach, and operational excellence with an agile, resilient supply-chain.
- Innovation and marketing capabilities. Its consumer-insight driven approach to innovation is designed to bring incremental households into the franchise and its high ROI marketing investments enables expansion into targeted snacking occasions.
The updated financial targets as part of the new long-term growth algorithm include:
- Organic revenue growth in the mid-single digits
- Adjusted EBITDA growth of 5-7%
- Earnings per share growth of 7-9%
Hostess will host a webcast of its virtual investor day today,
The presentation will be available on the Company’s website, hostessbrands.com. A replay of the full video webcast and transcript, including the Q&A session, will be available within 48 hours following the conclusion of the event here and also on the website.
Non-GAAP Financial Measures
Adjusted EBITDA is a non-GAAP financial measure defined as net income adjusted to exclude (i) interest expense, net, (ii) depreciation and amortization (iii) income taxes and (iv) share-based compensation, as further adjusted to eliminate the impact of certain items that the Company does not consider indicative of its ongoing operating performance. It should not be construed as an alternative to net income as an indicator of operating performance (as determined in accordance with GAAP). The Adjusted EBITDA target included in the Company’s long-term growth algorithm is forward-looking and does not include a reconciliation to the most directly comparable GAAP financial measure because of the inherent difficulty in forecasting and quantifying certain amounts that would be necessary for such reconciliation.
Forward Looking Statements
This press release contains statements reflecting our views about the future performance of
These statements inherently involve risks and uncertainties that could cause actual results to differ materially from those anticipated in such forward-looking statements. These risks and uncertainties include, but are not limited to; our ability to maintain, extend or expand our reputation and brand image; our ability to protect our intellectual property rights; our ability to leverage our brand value to compete against lower-priced alternative brands; our ability to correctly predict, identify and interpret changes in consumer preferences and demand and offering new products to meet those changes; our ability to operate in a highly competitive industry; our ability to maintain or add additional shelf or retail space for our products; our ability to continue to produce and successfully market products with extended shelf life; our ability to successfully integrate, achieve expected synergies and manage our acquired businesses and brands; our ability to drive revenue growth in our key products or add products that are faster-growing and more profitable; volatility in commodity, energy, and other input prices and our ability to adjust our pricing to cover any increased costs; the availability and pricing of transportation to distribute our products; our dependence on our major customers; our geographic focus; consolidation of retail customers; increased costs to comply with governmental regulation; general political, social and economic conditions; increased healthcare and labor costs; the fact that a portion of our workforce belongs to unions and strikes or work stoppages could cause our business to suffer; product liability claims, product recalls, or regulatory enforcement actions; unanticipated business disruptions; dependence on third parties for significant services; our ability to identify or complete strategic acquisitions; sufficiency of insurance coverage; failures, unavailability, or disruptions of our information technology systems; departure of key personnel or a highly skilled and diverse workforce; and our ability to finance our indebtedness on terms favorable to us; and other risks as set forth under the caption “Risk Factors” from time to time in our
As a result of a number of known and unknown risks and uncertainties, the Company's actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Risks and uncertainties are identified and discussed in Item 1A-Risk Factors in the Company's Annual Report on Form 10-K for 2021 to be filed today. All subsequent written or oral forward-looking statements attributable to us or persons acting on the Company's behalf are expressly qualified in their entirety by these risk factors. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
The long-term algorithms introduced in this presentation are goals that are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of the Company and are based on assumptions with respect to future actions which are subject to change.