Simply Good Foods (NASDAQ: SMPL) reported Q2 EPS of $0.15, $0.02 better than the analyst estimate of $0.13. Revenue for the quarter came in at $123.8 million versus the consensus estimate of $121.88 million.

“Our strong second quarter and year-to-date results reflect the successful execution of our annual plan as well as our strategic initiatives,” said Joseph E. Scalzo, President and Chief Executive Officer of Simply Good Foods. “We delivered double-digit sales, gross profit and adjusted EBITDA growth in both the second quarter and year-to-date periods. I’m particularly pleased that our U.S. retail takeaway, as measured by IRI for the thirteen week period ended February 23, 2019, continued to be strong and was up 22.1% versus the prior year. We continued to expand adjusted EBITDA margin while also making investments in marketing and organizational capabilities that we believe will benefit the company in the near and long term.”

Second Quarter 2019 Financial Highlights vs. Second Quarter 2018

• Net sales increased 13.2%, or $14.5 million, to $123.8 million
• Gross profit margin of 46.6%, an increase of 60 basis points
• Income tax expense was $4.0 million versus a benefit of $26.8 million in the prior year
• Net income decreased 69.3%, or $28.7 million, to $12.7 million
• Earnings per diluted share (“EPS”) of $0.15 was a decrease of $0.41 per fully diluted share
• Adjusted EBITDA(1) increased 22.1% to $23.0 million.

Outlook

Given the strength and momentum of the business in the first half of the year, the Company is more optimistic than last quarter in its ability to exceed its long-term net sales growth target of 4% to 6%. Specifically, we anticipate full-year fiscal 2019 net sales and adjusted EBITDA to both increase double digits, on a percentage basis versus last year. This outlook reflects anticipated solid volume growth and the benefit of a fifty-third week, as well as incremental strategic investments in marketing and brand building initiatives that should continue to drive growth over the long term.

For earnings history and earnings-related data on Simply Good Foods (SMPL) click here.