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freshpet Freshpet , Inc. Reports First Quarter 2021 Financial Results May 3 , 2021 Accelerating Production Driving Improved Retail Conditions Capacity Expansion Plan on Track to Support 2021 and Long - term Growth Goals SECAUCUS , N.J. , May 03 , 2021 ( GLOBE NEWSWIRE ) -- Freshpet , Inc. ( " Freshpet " or the " Company " ) ( NASDAQ : FRPT ) today reported financial results for its first quarter ended March 31 , 2021 . First Quarter 2021 Financial Highlights Compared to Prior Year Period • Net sales of $ 93.4 million , an increase of 33.3 % • Net loss of $ 10.9 million , compared with prior year net loss of $ 3.6 million • Adjusted EBITDA of $ 7.8 million , compared to $ 5.7 million , an increase of 35.3 % 1 " While it can be challenging to keep up with Freshpet's rapid growth , our team rose to the occasion and delivered a very strong performance in the first quarter . We achieved our strongest net sales growth rate in more than 5 years at 33 % , we grew Adjusted EBITDA at a rate that slightly outpaced net sales growth , and we surpassed 4 million Freshpet households for the first time , " commented Billy Cyr , Freshpet's Chief Executive Officer . " With rapidly improving retail conditions and increased capacity in place to support strong growth , we are in position to deliver our 2021 guidance and remain bullish on our 2025 ' Feed the Growth ' goals of 11 million households , $ 1.25 billion in net sales and a 25 % adjusted EBITDA margin . We are changing the way people nourish their pets forever . " First Quarter 2021 First quarter of 2021 net sales increased 33.3 % to $ 93.4 million compared to $ 70.1 million for the first quarter of 2020. Net sales for the first quarter of 2021 were driven by velocity , distribution gains , and innovation . Gross profit was $ 36.3 million , or 38.9 % as a percentage of net sales , for the first quarter of 2021 , compared to $ 31.8 million , or 45.4 % as a percentage of net sales , in the same period last year . For the first quarter 2021 , Adjusted Gross Profit was $ 43.6 million , or 46.7 % as a percentage of net sales , compared to $ 34.7 million , or 49.5 % as a percentage of net sales , in the prior year period . The decrease in Gross Profit as a percentage of net sales and Adjusted Gross Profit as a percentage of net sales was primarily due to inflation in beef , cost related to February snowstorms impacting production capability , and increased processing cost as we expand production at Kitchens South . Adjusted Gross Profit is a Non - GAAP financial measure defined under " Non - GAAP Measures , " and is reconciled to Gross Profit in the financial tables that accompany this release . Selling , general and administrative expenses ( " SG & A ” ) was $ 46.0 million for the first quarter of 2021 compared to $ 34.7 million in the prior year period . As a percentage of net sales , SG & A decreased to 49.3 % for the first quarter of 2021 compared to 49.5 % in the first quarter of 2020. Adjusted SG & A for the first quarter of 2021 was $ 35.9 million , or 38.4 % as a percentage of net sales , compared to $ 28.9 million , or 41.3 % as a percentage of net sales , in the prior year period . The decrease in SG & A as a percentage of net sales and Adjusted SG & A as a percentage of net sales was a result of increased media leverage and general and administrative expense leverage on higher net sales , partially offset by higher logistics cost as a percentage of net sales . Adjusted SG & A is a Non - GAAP financial measure defined under " Non - GAAP Measures , " and is reconciled to SG & A in the financial tables that accompany this release . Net loss was $ 10.9 million for the first quarter of 2021 compared to net loss of $ 3.6 million for the prior year period . The increase in net loss was due to increased SG & A , partially offset by higher net sales and increased gross profit . Adjusted EBITDA was $ 7.8 million , or 8.3 % as a percentage of net sales , for the first quarter of 2021 , compared to $ 5.7 million , or 8.2 % as a percentage of net sales , in the first quarter of 2020. The increase in Adjusted EBITDA was a result of higher net sales and Adjusted Gross Profit , partially offset by increased Adjusted SG & A expense . Adjusted EBITDA is a Non - GAAP financial measure defined under " Non - GAAP Measures , " and is reconciled to net loss in the financial tables that accompany this release . 1 Adjusted EBITDA , as well as certain other measures in this release , is a non - GAAP financial measure . See " Non - GAAP Measures " for how we define these measures and the financial tables that accompany this release for reconciliations of these measures to the closest comparable GAAP measures . Balance Sheet and Cash Flow As part of the Company's efforts to strengthen its liquidity position to fund ongoing capacity expansion , during the first quarter of 2021 , the Company completed a public offering of its common stock , which provided net proceeds of $ 332.5 million . In addition , on February 19 , 2021 , the Company entered into a Sixth Amended and Restated Loan and Security Agreement ( the " New Loan Agreement " ) . The New Loan Agreement provides for a $ 350.0 million senior secured credit facility ( the " New Credit Facility " ) , encompassing a $ 300.0 million delayed draw term loan facility ( the " New Delayed Draw Facility " ) and a $ 50.0 million revolving loan facility ( the " New Revolving Loan Facility " ) , which replaced the Company's prior $ 130.0 million delayed draw term loan facility and $ 35.0 million revolving loan facility . The New Credit Facility has a five year term and will mature on February 19 , 2026 . As of March 31 , 2021 , the Company had cash and cash equivalents of $ 341.0 million with no debt outstanding .