Free Post Earnings Research Report: Hostess Brands’ Quarterly Revenue Gained 9.7%; Adjusted EPS Advanced 13%

Stock Monitor: Youngevity Intl. Post Earnings Reporting

LONDON, UK / ACCESSWIRE / April 09, 2018 / Active-Investors.com has just released a free earnings report on Hostess Brands, Inc. (NASDAQ: TWNK). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=TWNK. Hostess Brands reported its fourth quarter and fiscal 2017 operating and financial results on February 23, 2018. The maker of Twinkies and Ding Dongs delivered better than expected sales and earnings and provided guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Youngevity International, Inc. (NASDAQ: YGYI), which also belongs to the Consumer Goods sector as the Company Hostess Brands. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Hostess Brands most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For Q4 2017, Hostess Brands' net revenue was $196.2 million, reflecting growth of 9.7%, compared to revenue of $178.8 million in Q4 2016, representing the Company's best organic growth rate quarter in FY17. The Company's strong performance was led by the introduction of the Hostess Bakery Petites, which contributed 3.1% of the net revenue increase in the reported quarter. Hostess Brands' reported numbers beat analysts' estimates of $194.0 million.

During Q4 2017, Hostess Brands' gross profit was $80.8 million, or 41.2% of net revenue, compared to $77.0 million, or 43.0% of net revenue, in Q4 2016. Higher transportation costs resulting from a tightening of shipping capacity caused a 120-basis point decrease in gross margin. Gross margin was also affected by a shift in product mix due to higher growth in multi-pack sales than other pack types.

For Q4 2017, Hostess Brands' advertising, selling, general, and administrative (SG&A) expenses were $25.9 million, or 13.2% of net revenue, compared to $26.4 million, or 14.8% of net revenue, in Q4 2016. This decrease was primarily due to forfeitures of stock-based compensation.

Hostess Brands' net income attributed to Class A stockholders was $179.7 million, or $1.74 per share, in Q4 2017, compared to $14.4 million, or $0.14 per share, in Q4 2016. The reported quarter results increase was primarily attributed to a $111.3 million tax benefit recognized due to the remeasurement of certain deferred tax items and a gain of $51.8 million on the remeasurement of the tax receivable agreement, both due to Tax Reform.

For Q4 2017, Hostess Brands' adjusted net income attributed to Class A stockholders increased to $0.17 per share compared to $0.15 per share. The increase was due to increased sales volume, lower interest expense in 2017 due to the repricing of the Company's First Lien Term Loan, and forfeitures of stock-based compensation. The Company's earnings beat Wall Street's estimates of $0.14 per share.

For FY17, Hostess Brands' net revenue totaled $776.2 million, up 6.7%, compared to $727.6 million in FY16, primarily driven by reported year product initiatives of $62.5 million, and white space opportunities growth led by In-Store Bakery and other developing sales channels, partially offset by a decrease in net revenue from 2016 innovations and discontinued items.

Hostess Brands' net income attributed to Class A shareholders was $223.9 million, or $2.13 per share, in FY17 compared to $53.7 million, or $0.54 per share, in FY16. This increase was primarily due to a $111.3 million tax benefit recognized due to the remeasurement of certain deferred tax items and a gain of $51.8 million on the remeasurement of the tax receivable agreement, both due to Tax Reform.

Hostess Brands' adjusted net income attributed to Class A common stockholders, increased to $66.7 million, or $0.63 per share, compared to $58.3 million, or $0.60 per share. The increase was attributed to lower interest expense, higher sales volume, and 2016 impairment charges not incurred in 2017.

Hostess Brands' Segment Results

During Q4 2017, the Sweet Baked Goods segment's net revenue was $185.3 million, up 9.9%, compared to $168.6 million in Q4 2016, primarily driven by net revenue from current year product innovations of $21.7 million.

The segment's gross profit was $78.4 million, or 42.3% of net revenue, compared to $74.0 million, or 43.9% of net revenue. Higher transportation costs caused a 120-basis point decrease in gross margin.

For Q4 2017, In-Store Bakery segment's net revenue was $10.9 million, up 6.5%, compared to $10.2 million primarily due to product innovation. Gross profit was $2.4 million, or 22.4% of net revenue, compared to $2.9 million, or 28.8% of net revenue.

Balance Sheet and Cash Flow

As of December 31, 2017, Hostess Brands had cash and cash equivalents of $135.7 million and approximately $96.1 million available for borrowing, net of letters of credit, under its revolving line of credit. The Company had outstanding term loan debt of $993.8 million and net debt of $858.1 million as of December 31, 2017, resulting in a leverage ratio of 3.73x.

Outlook

For FY18, Hostess Brands is forecasting adjusted earnings in the range of $0.65 to $0.70 per share, reflecting an increase of 3% to 11% on a y-o-y basis. The Company anticipates cash provided by operations of $175 million to $180 million in FY18.

Stock Performance Snapshot

April 06, 2018 - At Friday's closing bell, Hostess Brands' stock declined 1.96%, ending the trading session at $14.50.

Volume traded for the day: 1.64 million shares, which was above the 3-month average volume of 1.02 million shares.

Stock performance in the previous six-month period – up 3.94%

After last Friday's close, Hostess Brands' market cap was at $1.43 billion.

Price to Earnings (P/E) ratio was at 6.81.

The stock is part of the Consumer Goods sector, categorized under the Processed & Packaged Goods industry.

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