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EX - 99.1 2 a991_pressreleasexq1x2021.htm EX - 99.1 Simply Good FOODS COMPANY ™ The Simply Good Foods Company Reports Fiscal First Quarter 2021 Financial Results ; Updates Fiscal First Half of Year 2021 Outlook Denver , CO , January 6 , 2021 - The Simply Good Foods Company ( Nasdaq : SMPL ) ( " Simply Good Foods , " or the " Company " ) , a developer , marketer and seller of branded nutritional foods and snacking products , today reported financial results for the thirteen weeks ended November 28 , 2020. Year ago amounts for the first quarter ended November 30 , 2019 represents thirteen weeks of legacy Atkins and approximately three weeks of Quest Nutrition , LLC ( " Quest ” ) . The Company's references to " legacy Atkins ” in this press release encompasses Simply Goods Foods ' business excluding Quest . Highlights : ( 1 ) • Net sales increased 51.9 % driven by the Quest acquisition • Net income of $ 22.5 million versus a net loss of $ 4.8 million • • Earnings ( loss ) per diluted share ( " EPS ” ) of $ 0.23 versus $ ( 0.05 ) • Adjusted Diluted EPS ( 3 ) of $ 0.29 versus $ 0.22 • Adjusted EBITDA ( 2 ) increased 53.2 % to $ 48.7 million Outlook for the first half of fiscal 2021 updated : ° Net Sales expected to be in the $ 455-465 million range , greater than the previous estimate of $ 425-435 million Adjusted EBITDA ( 2 ) expected to be in the $ 85-90 million , greater than the previous estimate of $ 77-82 million " We are pleased that our fiscal first quarter performance exceeded our expectations despite the ongoing challenges of operating in the COVID - 19 environment , ” said Joseph E. Scalzo , President and Chief Executive Officer of Simply Good Foods . " We delivered another quarter of sequential improvement in both net sales and earnings driven primarily by strong e - commerce growth , retail takeaway that exceeded our expectations and the timing of shipments related to the seasonal inventory build by certain retailers . " " Total Simply Good Foods retail takeaway for the thirteen weeks ending November 28 , 2020 , increased 1.4 % in the U.S. measured channels of IRI MULO + Convenience Stores , and outpaced the category . We estimate that total Simply Goods Foods U.S. retail takeaway in measured and unmeasured channels increased mid - single - digits , on a percentage basis versus last year , driven by solid Quest measured channel performance and a combined 55 % year over year increase of Atkins and Quest within the e - commerce channel . The Atkins and Quest brands are tightly aligned with the consumer mega - trends of both health and wellness and convenience and on - the - go nutrition , attributes that consumers tell us are important when making snacking decisions . We believe that as consumer mobility improves in 2021 that the benefits of our products will become increasingly more relevant and that we are well positioned to win in the marketplace . ” Fiscal First Quarter 2021 Results Net sales increased $ 79.0 million , or 51.9 % , to $ 231.2 million . The Quest acquisition closed on November 7 , 2019 , therefore the majority of the net sales growth in the quarter is driven by the acquisition . Specifically , Quest net sales increased $ 78.7 million to $ 95.8 million , a contribution of 51.7 % to total Simply Good Foods first quarter net sales growth . Legacy Atkins net sales increased 0.2 % , including the divestiture of the SimplyProtein® brand on September 24 , 2020 , which is a 1.7 % headwind . Atkins and Quest performance exceeded internal forecasts due to better than expected e - commerce retail takeaway and the timing of shipments related to the seasonal inventory build by certain retailers . Gross profit was $ 94.0 million for the first quarter of fiscal 2021 , an increase of $ 31.8 million or 51.2 % . The increase in gross profit was primarily driven by the Quest acquisition . Gross margin was 40.7 % in the first quarter of fiscal 2021 , a decline of 20 basis points versus last year due to unfavorable product mix and the full quarter impact of the lower margin Quest business . Gross profit in the prior year was affected by a non - cash $ 2.4 million inventory purchase accounting step - up adjustment related to the Quest acquisition . Recall , the non- cash inventory purchase accounting step - up was a 160 basis point headwind in the first quarter of fiscal 2020 . 1