Amplify Snack Brands reported financial results for the three months and full year ended December 31, 2015.
Article continues below
Q4 net sales increased 40.3% to $46.4 million compared to $33.0 million in the three months ended December 31, 2014. The increase in net sales reflects increased distribution and continued strong brand velocity across sales channels.
Amplify Snack Brands gross profit was $26.2 million, or 56.5% of net sales, compared to $18.6 million, or 56.2% of net sales for the three months ended December 31, 2014.
Gross margin for the three months ended December 31, 2015 benefitted from higher net price realization and improved rates on materials and ingredients, partially offset by a product mix shift as Amplify Snack Brands expanded into higher cost product formats and flavors.
Q4 adjusted EBITDA, which is a non-GAAP financial measure used by Amplify Snack Brands that makes certain adjustments to net income calculated under GAAP, increased 40.3% to $18.7 million from $13.4 million for the three months ended December 31, 2014, primarily reflecting higher net sales and gross profit, partially offset by higher Adjusted SG&A.
The increase in Adjusted SG&A was primarily driven by infrastructure investments in personnel and systems, increased consumer marketing activities to drive brand awareness and trial, and new costs associated with operating as a public company. As a percentage of net sales, Adjusted EBITDA was 40.4% for both three month periods ended December 31.
GAAP net income was $4.4 million, or $0.06 per fully diluted share, compared to pro forma net income of $2.3 million, or $0.03 per fully diluted share, for the three months ended December 31, 2014.
Adjusted net income, which is a non-GAAP financial measure used by Amplify Snack Brands that makes certain adjustments to net income calculated under GAAP, was $9.5 million, or $0.13 per fully diluted share, compared to pro forma adjusted net income of $6.4 million for the three months ended December 31, 2014, or $0.09 per fully diluted share.
Full year
Net sales for the full year ended December 31, 2015 increased 39.0% to $183.9 million compared to $132.4 million in fiscal 2014. Full year net sales growth was driven primarily by new distribution across sales channels and by an increase in brand level velocity.
Amplify Snack Brands adjusted EBITDA, a non-GAAP financial measure, increased 27.9% to $74.9 million from $58.5 million in fiscal 2014, primarily reflecting higher net sales and gross profit, partially offset by higher Adjusted SG&A.
he increase in Adjusted SG&A was primarily driven by infrastructure investments in personnel and systems, increased consumer marketing activities to drive brand awareness and trial, and new costs associated with operating as a public company. Adjusted EBITDA as a percentage of net sales in fiscal 2015 was 40.7% compared to 44.2% in fiscal 2014.
GAAP net income was $9.9 million, or $0.13 per fully diluted share, compared to pro forma net income of $13.6 million, or $0.20 per fully diluted share, in fiscal 2014.
The decrease in earnings was primarily due to the incurrence of costs related to Amplify Snack Brands’ initial public offering which closed in August 2015. Adjusted net income, a non-GAAP financial measure, was $37.6 million, or $0.51 per fully diluted share, compared to pro forma adjusted net income of $28.5 million for fiscal 2014, or $0.42 per fully diluted share. ■