PARSIPPANY, N.J., Feb. 10, 2017 (GLOBE NEWSWIRE) -- Pinnacle Foods Inc. (NYSE:PF) announced today that, in the fourth quarter of fiscal 2016 during which the integration of the Boulder Brands acquisition was substantially complete, the Company reorganized its reporting structure, resulting in a change to its reportable segments. The new segments, which mirror the manner in which the businesses will be managed, are Frozen, Grocery, Boulder and Specialty.
The Boulder Brands acquisition added the Udi's, Glutino, Smart Balance, Earth Balance and EVOL brands to the Company's portfolio, as well as complementary foodservice, private label and Canadian businesses. The new segment structure aligns each of these businesses with related Pinnacle businesses into four new reportable segments, the composition of which is provided below.
The Frozen segment is comprised of the retail businesses of the Company’s legacy frozen brands, including vegetables (Birds Eye), complete bagged meals (Birds Eye Voila! and Birds Eye Signature Skillets), full-calorie single-serve frozen dinners and entrées (Hungry-Man), prepared seafood (Van de Kamp's and Mrs. Paul's), pancakes / waffles / french toast (Aunt Jemima), frozen and refrigerated bagels (Lender's) and pizza for one (Celeste). The Frozen segment also includes all of the Company’s business in Canada, including those of the Garden Protein International and Boulder Brands acquisitions.
The Grocery segment is comprised of the retail businesses of the Company’s grocery brands, including cake/brownie mixes and frostings (Duncan Hines), shelf-stable pickles (Vlasic), salad dressings (Wish-Bone, Western and Bernstein’s), table syrups (Log Cabin and Mrs. Butterworth's), refrigerated and shelf-stable spreads (Smart Balance), canned meat (Armour, Nalley and Brooks), pie and pastry fillings (Duncan Hines Comstock and Wilderness) and barbecue sauces (Open Pit).
The Boulder segment is comprised of the retail businesses of the Company’s health and wellness lifestyle brands, including gluten-free products (Udi's and Glutino), natural frozen meal offerings (EVOL), plant-based refrigerated and shelf-stable spreads (Earth Balance) and plant-based protein frozen products (gardein).
The Specialty segment includes the Company’s snack products (Tim's Cascade and Snyder of Berlin) and all of its U.S. foodservice and private label businesses, including those of the Garden Protein International and Boulder Brands acquisitions.
Segment performance is evaluated by the Company’s Chief Operating Decision Maker and is based on earnings before interest and taxes. Transfers between segments and geographic areas are recorded at cost plus markup or at market. Unallocated corporate expenses consist of corporate overhead such as executive management, finance and legal functions.
The supplemental information included herein presents the net sales and earnings before interest and taxes of the Company's new reportable business segments for the first three quarters and nine months of fiscal 2016, for each quarter and full year of fiscal 2015 and for the full year of fiscal 2014. There is no impact on the Company's previously reported consolidated balance sheets and consolidated statements of operations, cash flows and stockholders' equity. As required by the Segment Reporting Topic of the Accounting Standards Codification, the consolidated financial statements to be included in the Company's Annual Report on Form 10-K for the fiscal year ended December 25, 2016 will reflect this change in the Company's reportable segments.
This filing does not reflect any subsequent information or events other than changes to the reportable segments described above. Without limitation, this filing does not purport to update any information included in the relevant Annual and Quarterly Reports.
The Company believes that the presentation of Adjusted Earnings before Interest and Taxes (Adjusted EBIT), a non-GAAP financial measure, when considered together with its U.S. GAAP financial measures, helps provide a more complete understanding of the factors and trends affecting its business that could be obtained absent these disclosures. Adjusted EBIT is used to assess operating results from period to period after removing the impact of unusual, non-operational or restructuring-related activities that affect comparability. This non-GAAP financial measure should be considered a supplement to the GAAP reported measures, should not be considered a replacement for, or superior to, GAAP measures and may not be comparable to similarly named measures used by other companies.
| Pinnacle Foods Inc. Reconciliation of Non-GAAP measures (Unaudited) Adjusted Segment amounts (thousands) | ||||||||||||||||||||||||
| Fiscal Year | Three months ended | Fiscal Year | ||||||||||||||||||||||
| December 28, 2014 | March 29, 2015 | June 28, 2015 | September 27, 2015 | December 27, 2015 | December 27, 2015 | |||||||||||||||||||
| Net sales - Reported | ||||||||||||||||||||||||
| Frozen | $ | 1,190,354 | $ | 320,189 | $ | 271,800 | $ | 299,767 | $ | 344,195 | $ | 1,235,951 | ||||||||||||
| Grocery | 1,050,085 | 244,863 | 260,804 | 240,068 | 278,534 | 1,024,269 | ||||||||||||||||||
| Boulder | 4,307 | 9,803 | 9,945 | 9,971 | 11,775 | 41,494 | ||||||||||||||||||
| Specialty | 346,437 | 90,426 | 89,197 | 86,481 | 87,974 | 354,078 | ||||||||||||||||||
| Total | $ | 2,591,183 | $ | 665,281 | $ | 631,746 | $ | 636,287 | $ | 722,478 | $ | 2,655,792 | ||||||||||||
| Earnings before interest & taxes - Reported | ||||||||||||||||||||||||
| Frozen | $ | 193,185 | $ | 45,818 | $ | 39,326 | $ | 53,965 | $ | 79,427 | $ | 218,536 | ||||||||||||
| Grocery | 177,381 | 42,440 | 49,788 | 43,602 | 67,316 | 203,146 | ||||||||||||||||||
| Boulder | (4,242 | ) | (2,057 | ) | (134 | ) | (2,076 | ) | (1,231 | ) | (5,498 | ) | ||||||||||||
| Specialty | 31,029 | 7,983 | 7,638 | 8,473 | 10,275 | 34,369 | ||||||||||||||||||
| Unallocated corporate expenses | 114,918 | (5,715 | ) | (6,803 | ) | (6,171 | ) | (7,162 | ) | (25,851 | ) | |||||||||||||
| Total | $ | 512,271 | $ | 88,469 | $ | 89,815 | $ | 97,793 | $ | 148,625 | $ | 424,702 | ||||||||||||
| Adjustments (Non GAAP) | ||||||||||||||||||||||||
| Frozen | $ | 16,240 | $ | 974 | $ | (1,679 | ) | $ | 2,264 | $ | (665 | ) | $ | 894 | ||||||||||
| Grocery | 27,076 | 3,354 | (928 | ) | 4,504 | 537 | 7,467 | |||||||||||||||||
| Boulder | 4,436 | 2,511 | 112 | 3,081 | 2,477 | 8,181 | ||||||||||||||||||
| Specialty | 2,637 | 167 | (317 | ) | 352 | (85 | ) | 117 | ||||||||||||||||
| Unallocated corporate expenses | (139,248 | ) | — | — | — | 1,713 | 1,713 | |||||||||||||||||
| Total | $ | (88,859 | ) | $ | 7,006 | $ | (2,812 | ) | $ | 10,201 | $ | 3,977 | $ | 18,372 | ||||||||||
| Earnings before interest & taxes - Adjusted (Non GAAP - See separate discussion) | ||||||||||||||||||||||||
| Frozen | $ | 209,425 | $ | 46,792 | $ | 37,647 | $ | 56,229 | $ | 78,762 | $ | 219,430 | ||||||||||||
| Grocery | 204,457 | 45,794 | 48,860 | 48,106 | 67,853 | 210,613 | ||||||||||||||||||
| Boulder | 194 | 454 | (22 | ) | 1,005 | 1,246 | 2,683 | |||||||||||||||||
| Specialty | 33,666 | 8,150 | 7,321 | 8,825 | 10,190 | 34,486 | ||||||||||||||||||
| Unallocated corporate expenses | (24,330 | ) | (5,715 | ) | (6,803 | ) | (6,171 | ) | (5,449 | ) | (24,138 | ) | ||||||||||||
| Total | $ | 423,412 | $ | 95,475 | $ | 87,003 | $ | 107,994 | $ | 152,602 | $ | 443,074 | ||||||||||||
| Pinnacle Foods Inc. Reconciliation of Non-GAAP measures (Unaudited) Adjusted Segment amounts (thousands) | ||||||||||||||||
| Three months ended | Nine months ended | |||||||||||||||
| March 27, 2016 | June 26, 2016 | September 25, 2016 | September 25, 2016 | |||||||||||||
| Net sales - Reported | ||||||||||||||||
| Frozen | $ | 330,488 | $ | 288,797 | $ | 314,403 | $ | 933,688 | ||||||||
| Grocery | 250,913 | 281,005 | 258,945 | 790,863 | ||||||||||||
| Boulder | 80,161 | 94,694 | 92,433 | 267,288 | ||||||||||||
| Specialty | 92,693 | 91,885 | 93,040 | 277,618 | ||||||||||||
| Total | $ | 754,255 | $ | 756,381 | $ | 758,821 | $ | 2,269,457 | ||||||||
| Earnings before interest & taxes - Reported | ||||||||||||||||
| Frozen | $ | 51,339 | $ | 45,753 | $ | 54,201 | $ | 151,293 | ||||||||
| Grocery | 39,724 | 53,803 | 55,189 | 148,716 | ||||||||||||
| Boulder | (4,524 | ) | 5,809 | 6,965 | 8,250 | |||||||||||
| Specialty | 7,001 | 7,045 | 8,364 | 22,410 | ||||||||||||
| Unallocated corporate expenses | (13,259 | ) | (4,624 | ) | (6,451 | ) | (24,334 | ) | ||||||||
| Total | $ | 80,281 | $ | 107,786 | $ | 118,268 | $ | 306,335 | ||||||||
| Adjustments (Non GAAP) | ||||||||||||||||
| Frozen | $ | (1,418 | ) | $ | (1,252 | ) | $ | 9,601 | $ | 6,931 | ||||||
| Grocery | 6,394 | 1,631 | 204 | 8,229 | ||||||||||||
| Boulder | 13,707 | 6,338 | 5,557 | 25,602 | ||||||||||||
| Specialty | 1,020 | 291 | 938 | 2,249 | ||||||||||||
| Unallocated corporate expenses | 6,782 | — | — | 6,782 | ||||||||||||
| Total | $ | 26,485 | $ | 7,008 | $ | 16,300 | $ | 49,793 | ||||||||
| Earnings before interest & taxes - Adjusted (Non GAAP - See separate discussion) | ||||||||||||||||
| Frozen | $ | 49,921 | $ | 44,501 | $ | 63,802 | $ | 158,224 | ||||||||
| Grocery | 46,118 | 55,434 | 55,393 | 156,945 | ||||||||||||
| Boulder | 9,183 | 12,147 | 12,522 | 33,852 | ||||||||||||
| Specialty | 8,021 | 7,336 | 9,302 | 24,659 | ||||||||||||
| Unallocated corporate expenses | (6,477 | ) | (4,624 | ) | (6,451 | ) | (17,552 | ) | ||||||||
| Total | $ | 106,766 | $ | 114,794 | $ | 134,568 | $ | 356,128 | ||||||||
| Pinnacle Foods Inc. Reconciliation from Reported to Adjusted Segment Amounts Supplemental Schedule of Adjustments Detail (millions) | ||||||||||||||||||||||||
| Fiscal Year | Three months ended | Fiscal Year | ||||||||||||||||||||||
| December 28, 2014 | March 29, 2015 | June 28, 2015 | September 27, 2015 | December 27, 2015 | December 27, 2015 | |||||||||||||||||||
| Frozen | ||||||||||||||||||||||||
| Employee severance | 1.6 | $ | — | $ | — | $ | 0.2 | $ | 0.2 | $ | 0.4 | |||||||||||||
| Liquidity event stock compensation expense | 4.9 | — | — | — | — | — | ||||||||||||||||||
| Unrealized mark-to-market (gain)/loss | 5.9 | — | (1.8 | ) | 2.1 | (0.9 | ) | (0.6 | ) | |||||||||||||||
| Hillshire merger termination-related employee compensation expense | 3.5 | 0.8 | — | — | — | 0.8 | ||||||||||||||||||
| Other | 0.3 | 0.2 | 0.1 | — | — | 0.3 | ||||||||||||||||||
| Total Frozen | $ | 16.2 | $ | 1.0 | $ | (1.7 | ) | $ | 2.3 | $ | (0.7 | ) | $ | 0.9 | ||||||||||
| Grocery | ||||||||||||||||||||||||
| Restructuring and acquisition integration charges | $ | 11.1 | $ | 2.4 | $ | 1.2 | $ | 2.6 | $ | 1.1 | $ | 7.3 | ||||||||||||
| Employee severance | 1.7 | — | — | 0.1 | 0.2 | 0.3 | ||||||||||||||||||
| Liquidity event stock compensation expense | 4.7 | — | — | — | — | — | ||||||||||||||||||
| Unrealized mark-to-market (gain)/loss | 5.6 | — | (2.3 | ) | 1.8 | (0.8 | ) | (1.3 | ) | |||||||||||||||
| Hillshire merger termination-related employee compensation expense | 3.4 | 0.8 | — | — | — | 0.8 | ||||||||||||||||||
| Other | 0.6 | 0.2 | 0.2 | — | — | 0.4 | ||||||||||||||||||
| Total Grocery | $ | 27.1 | $ | 3.4 | $ | (0.9 | ) | $ | 4.5 | $ | 0.5 | $ | 7.5 | |||||||||||
| Boulder | ||||||||||||||||||||||||
| Restructuring and acquisition integration charges | $ | 4.4 | $ | 2.5 | $ | 0.1 | $ | 3.1 | $ | 2.5 | $ | 8.2 | ||||||||||||
| Total Boulder | $ | 4.4 | $ | 2.5 | $ | 0.1 | $ | 3.1 | $ | 2.5 | $ | 8.2 | ||||||||||||
| Specialty | ||||||||||||||||||||||||
| Employee severance | $ | 0.2 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
| Liquidity event stock compensation expense | 0.6 | — | — | — | — | — | ||||||||||||||||||
| Unrealized mark-to-market (gain)/loss | 0.8 | — | (0.3 | ) | 0.3 | (0.1 | ) | (0.1 | ) | |||||||||||||||
| Hillshire merger termination-related employee compensation expense | 0.5 | 0.1 | — | — | — | 0.1 | ||||||||||||||||||
| Other | 0.5 | 0.1 | — | — | — | 0.1 | ||||||||||||||||||
| Total Specialty | $ | 2.6 | $ | 0.2 | $ | (0.3 | ) | $ | 0.3 | $ | (0.1 | ) | $ | 0.1 | ||||||||||
| Unallocated Corporate Expenses | ||||||||||||||||||||||||
| Hillshire Merger Termination Fee Received, net | $ | (153.0 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
| Liquidity event stock compensation expense | 13.6 | — | — | — | — | — | ||||||||||||||||||
| Boulder Acquisition Charges | — | — | — | — | 1.7 | 1.7 | ||||||||||||||||||
| Other | 0.2 | — | — | — | — | — | ||||||||||||||||||
| Total Unallocated Corporate Expenses | $ | (139.2 | ) | $ | — | $ | — | $ | — | $ | 1.7 | $ | 1.7 | |||||||||||
| Pinnacle Foods Inc. Reconciliation from Reported to Adjusted Segment Amounts Supplemental Schedule of Adjustments Detail (millions) | ||||||||||||||||
| Three months ended | Nine months ended | |||||||||||||||
| March 27, 2016 | June 26, 2016 | September 25, 2016 | September 25, 2016 | |||||||||||||
| Frozen | ||||||||||||||||
| Restructuring and acquisition integration charges | $ | 0.2 | $ | 0.2 | $ | — | $ | 0.4 | ||||||||
| Unrealized mark-to-market (gain)/loss | (1.9 | ) | (1.6 | ) | (0.7 | ) | (4.2 | ) | ||||||||
| Expenses related to the write-up to fair value of inventories acquired | 0.3 | — | — | 0.3 | ||||||||||||
| Tradename Impairment charges | — | — | 10.3 | 10.3 | ||||||||||||
| Other | — | 0.1 | — | 0.1 | ||||||||||||
| Total Frozen | $ | (1.4 | ) | $ | (1.3 | ) | $ | 9.6 | $ | 6.9 | ||||||
| Grocery | ||||||||||||||||
| Restructuring and acquisition integration charges | $ | 4.5 | $ | 3.2 | $ | 0.9 | $ | 8.6 | ||||||||
| Unrealized mark-to-market (gain)/loss | (1.6 | ) | (1.8 | ) | (0.7 | ) | (4.1 | ) | ||||||||
| Expenses related to the write-up to fair value of inventories acquired | 3.5 | — | — | 3.5 | ||||||||||||
| Other | — | 0.2 | — | 0.2 | ||||||||||||
| Total Grocery | $ | 6.4 | $ | 1.6 | $ | 0.2 | $ | 8.2 | ||||||||
| Boulder | ||||||||||||||||
| Restructuring and acquisition integration charges | $ | 7.8 | $ | 6.3 | $ | 5.7 | $ | 19.8 | ||||||||
| Unrealized mark-to-market (gain)/loss | (0.1 | ) | — | (0.1 | ) | (0.2 | ) | |||||||||
| Expenses related to the write-up to fair value of inventories acquired | 6.0 | — | — | 6.0 | ||||||||||||
| Total Boulder | $ | 13.7 | $ | 6.3 | $ | 5.6 | $ | 25.6 | ||||||||
| Specialty | ||||||||||||||||
| Restructuring and acquisition integration charges | $ | 0.7 | $ | 0.6 | $ | 0.1 | $ | 1.4 | ||||||||
| Unrealized mark-to-market (gain)/loss | (0.3 | ) | (0.3 | ) | (0.1 | ) | (0.7 | ) | ||||||||
| Expenses related to the write-up to fair value of inventories acquired | 0.6 | — | — | 0.6 | ||||||||||||
| Tradename Impairment charges | — | — | 0.9 | 0.9 | ||||||||||||
| Total Specialty | $ | 1.0 | $ | 0.3 | $ | 0.9 | $ | 2.2 | ||||||||
| Unallocated Corporate Expenses | ||||||||||||||||
| Boulder Acquisition Charges | $ | 6.8 | $ | — | $ | — | $ | 6.8 | ||||||||
| Total Unallocated Corporate Expenses | $ | 6.8 | $ | — | $ | — | $ | 6.8 | ||||||||
ABOUT PINNACLE FOODS
Pinnacle Foods Inc. (NYSE:PF) is a leading manufacturer, marketer and distributor of high-quality branded food products with a mission of unleashing brand potential. With annual sales in excess of $3 billion, our portfolio includes well-known brands competing in frozen, refrigerated and shelf-stable formats, such as Birds Eye, Birds Eye Voila!, Duncan Hines, Earth Balance, EVOL, gardein, Glutino, Hungry-Man, Log Cabin, Udi’s, Vlasic, and Wish-Bone, along with many others. The company is headquartered in Parsippany, NJ and has nearly 5,000 employees across the U.S. and Canada. For more information, please visit www.pinnaclefoods.com.