Utz Brands (NYSE: UTZ) reported Q3 EPS of $, versus $0.11 reported last year. Revenue for the quarter came in at $248 million versus the consensus estimate of $246.11 million.

Third Quarter 2020 Financial Highlights Compared to Prior Year Period

• Net sales of $248.0 million, an increase of 24.2% over the prior year period
• Gross Profit of $86.2 million, an increase of $16.4 million or 23.5% over the prior year period. Adjusted Gross Profit of $99.2 million, an increase of $25.6 million or 34.8% over the prior year period. Adjusted Gross Profit Margin improved to 40.0% from 36.9% in the prior year
• Net loss of $7.3 million, compared to Net income of $10.3 million in prior year; the net loss was driven by transaction-related expenses from the successful combination of Collier Creek Holdings with Utz Brands Holdings, LLC, which closed August 28, 2020 (the “Business Combination”). Adjusted Net Income of $17.9 million, compared to $8.5 million in the prior year
• Adjusted EBITDA of $38.2 million, an increase of $10.9 million or 39.8% over the prior year period
• Cash and cash equivalents of $32.0 million, total debt of $420.0 million, and net debt of $388.0 million, all as of the end of the third quarter 2020

“We are pleased to report strong financial results for our first quarter as a public company,” said Dylan Lissette, Chief Executive Officer of Utz. “Our strong portfolio of brands, competitively-advantaged manufacturing and distribution network, and strong execution helped us improve our market positions in key channels, geographies, product sub-categories, and in total. A special thank you to our dedicated associates, all of whom have helped the Company perform so well during this difficult time with COVID-19. Our growth opportunities are multi-faceted, and our results for our third quarter demonstrate our commitment to be the fastest-growing, pure-play branded salty snack company of scale in the U.S.”

Fiscal Year 2020 Outlook

For full year 2020, the Company has increased its net sales and Adjusted EBITDA outlook versus what had been previously provided in the Business Combination investor presentations. For the purpose of this 2020 outlook change, the Company has assumed (i) the macroeconomic environment continues as it has for the last several months and (ii) there is no significant change on the Company from the impact of COVID-19. The guidance excludes any results from the H.K. Anderson acquisition, which closed on November 2, 2020.

For the 53-week fiscal year ending January 3, 2021, the Company is providing the following guidance:

• Net Sales growth of 10 – 11% versus 2019 Pro Forma Net Sales of $865.5 million, with the 53rd Week representing approximately two percentage points
• Adjusted EBITDA in the range of $129 to $132 million, including an estimated 53rd Week impact of approximately $3 million. This Adjusted EBITDA range excludes estimated unrealized cost synergies of approximately $4 million related to the Kennedy Endeavors and Kitchen Cooked acquisitions and estimated unrealized public company costs of $2M
• Net leverage ratio of approximately 3x at the end of FY 2020
• Full year capital expenditures of approximately $28 million

For earnings history and earnings-related data on Utz Brands (UTZ) click here.