# National Beverage Corp: Form 10-Q for the period ended Jul 29, 2023

- Company: [National Beverage Corp](/companies/fizz.md) (CIK 69891)
- Form: 10-Q
- Filed: 2023-09-07
- Accepted by EDGAR: Sep 7, 2023, 20:31 ET
- Period: 2023-07-29
- Accession: 0001437749-23-025402
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/69891/000143774923025402/fizz20230729_10q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/69891/000143774923025402/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2023-07-29.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2023-04-30 to 2023-07-29 | $324.2m | us-gaap:Revenues |
| Cost of revenue | 3 months, 2023-04-30 to 2023-07-29 | $209.8m | us-gaap:CostOfRevenue |
| Gross profit | 3 months, 2023-04-30 to 2023-07-29 | $114.5m | us-gaap:GrossProfit |
| Selling, general and administrative | 3 months, 2023-04-30 to 2023-07-29 | $51.4m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Operating income | 3 months, 2023-04-30 to 2023-07-29 | $63.1m | us-gaap:OperatingIncomeLoss |
| Income tax | 3 months, 2023-04-30 to 2023-07-29 | $15.5m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2023-04-30 to 2023-07-29 | $49.6m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2023-04-30 to 2023-07-29 | $53.00 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2023-04-30 to 2023-07-29 | $53.00 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2023-04-30 to 2023-07-29 | 93,610,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 3 months, 2023-04-30 to 2023-07-29 | $70.1m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 3 months, 2023-04-30 to 2023-07-29 | $5.5m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Cash and equivalents | at 2023-07-29 | $222.8m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2023-07-29 | $431.5m | us-gaap:AssetsCurrent |
| Total assets | at 2023-07-29 | $640.4m | us-gaap:Assets |
| Current liabilities | at 2023-07-29 | $156.8m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2023-07-29 | $218.3m | us-gaap:Liabilities |
| Shareholders' equity | at 2023-07-29 | $422.1m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 6,661 characters.

### OVERVIEW

National Beverage Corp. innovatively refreshes America with a distinctive portfolio of sparkling waters, juices, energy drinks (Power+ Brands) and, to a lesser extent, carbonated soft drinks. We believe our creative product designs, innovative packaging and imaginative flavors, along with our corporate culture and philosophy, make National Beverage unique as a stand-alone entity in the beverage industry.

Our strategy seeks the profitable growth of our products by (i) developing healthier beverages in response to the global shift in consumer buying habits and tailoring our beverage portfolio to the preferences of a diverse mix of ‘crossover consumers’ – a growing group desiring a healthier alternative to artificially sweetened and high-caloric beverages; (ii) emphasizing unique flavor development and variety throughout our brands that appeal to multiple demographic groups; (iii) maintaining points of difference through innovative marketing, packaging and consumer engagement and (iv) responding faster and more creatively to changing consumer trends than larger competitors who are burdened by legacy production and distribution complexity and costs.

The majority of our brands are geared to the active and health-conscious consumer including sparkling waters, energy drinks, and juices. Our portfolio of Power+ Brands includes LaCroix®, LaCroix Cúrate®, and LaCroix NiCola® sparkling water products; Clear Fruit® non-carbonated waters enhanced with fruit flavor; Rip It® energy drinks and shots; and Everfresh®, Everfresh Premier Varietals™ and Mr. Pure® 100% juice and juice-based products. Additionally, we produce and distribute carbonated soft drinks including Shasta® and Faygo®, iconic brands whose consumer loyalty spans more than 130 years.

Presently, our primary market focus is the United States and Canada. Certain of our products are also distributed on a limited basis in other countries and options to expand distribution to other regions are being considered. To service a diverse customer base that includes numerous national retailers, as well as thousands of smaller “up-and-down-the-street” accounts, we utilize a hybrid distribution system consisting of warehouse and direct-store delivery. The warehouse delivery system allows our retail partners to further maximize their assets by utilizing their ability to pick up product at our warehouses, further lowering their/our product costs.

Our operating results are affected by numerous factors, including fluctuations in the costs of raw materials, supply chain disruptions, holiday and seasonal programming and weather conditions. While prior years witnessed more seasonality, higher sales are realized during the summer when outdoor activities are more prevalent.

### RESULTS OF OPERATIONS

#### Three Months Ended July 29, 2023 (first quarter of fiscal 2024) compared to

#### Three Months Ended July 30, 2022 (first quarter of fiscal 2023)

Net sales for the first quarter of fiscal 2024 increased 1.9% to $324.2 million from $318.1 million for the first quarter of fiscal 2023. The increase in sales resulted primarily from a 3.9% increase in average selling price per case partially offset by a 1.9% decrease in case volume. The volume declined for Power+ Brands, partially offset by increased volume of Carbonated Soft Drink brands.

Gross profit for the first quarter of fiscal 2024 increased to $114.5 million from $99.4 million for the first quarter of fiscal 2023. The increase in gross profit is due to the increase in average selling price and a decline in packaging and ingredient costs. Gross margin was 35.3% for the first quarter of fiscal 2024 and 31.2% for the first quarter of fiscal 2023.

Selling, general and administrative expenses for the first quarter of fiscal 2024 decreased $1.5 million to $51.4 million from $52.9 million for the first quarter of fiscal 2023. The decrease was primarily due to a decrease in shipping costs partially offset by increased selling and marketing costs. As a percent of net sales, selling, general and administrative expenses decreased to 15.8% for the first quarter of fiscal 2024 from 16.6% for the first quarter of fiscal 2023.

Other (income) expense - net includes interest income of $1.8 million for the first quarter of fiscal 2024 and $24,000 for the first quarter of fiscal 2023. The increase in interest income is due to increased average invested balances and higher yields.

The Company’s effective income tax rate, based upon estimated annual income tax rates, was 23.8% for the first quarter of fiscal 2024 and 23.6% for the first quarter of fiscal 2023. The difference between the effective rate and the federal statutory rate of 21% was primarily due to the effects of state income taxes.

### LIQUIDITY AND FINANCIAL CONDITION

### Liquidity and Capital Resources

Our principal source of funds is cash generated from operations. At July 29, 2023, we maintained $150 million unsecured revolving credit facilities, under which no borrowings were outstanding and $2.2 million was reserved for standby letters of credit. We believe existing capital resources will be sufficient to meet our liquidity and capital requirements for the next twelve months.

### Cash Flows

The Company’s cash position increased $64.7 million during the first quarter of fiscal 2024.

Net cash provided by operating activities for the first quarter of fiscal 2024 amounted to $70.1 million compared to $40.6 million for the first quarter of fiscal 2023. Net cash provided by operating activities for the first quarter of fiscal 2024 was principally provided by net income of $49.6 million, depreciation and amortization of $5.0 million, amortization of right to use assets of $3.3 million, deferred income taxes of $3.2 million and an increase in taxes payable of $8.7 million, offset in part by changes in working capital and other accounts.

Net cash used in investing activities for the first quarter of fiscal 2024 reflects capital expenditures of $5.5 million, compared to capital expenditures of $2.6 million for the first quarter of fiscal 2023. Certain production capacity and efficiency improvement projects are in progress and we anticipate fiscal 2024 capital expenditures will be in the range of $25 to $30 million.

### Financial Position

At July 29, 2023, our working capital increased to $274.6 million from $222.1 million at April 29, 2023. The current ratio was 2.8 to 1 at July 29, 2023 and 2.5 to 1 at April 29, 2023. Trade receivables increased $2.8 million and days sales outstanding improved to 30.2 from 33.6. Inventories decreased $.6 million and inventory turns improved to 8.2 times from 7.9 times

## Market risk

As filed, 147 characters.

There have been no material changes in market risks from those reported in our Annual Report on Form 10-K for the fiscal year ended April 29, 2023.

## Controls and procedures

As filed, 3,296 characters.

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of the Company’s management, including our Chief Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our “disclosure controls and procedures” (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934). Based upon that evaluation, the Chief Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures were effective to ensure information required to be disclosed by us in reports we file or submit under the Exchange Act is (1) recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and (2) accumulated and communicated to our management, including our Chief Executive Officer and Principal Financial Officer, to allow timely decisions regarding required disclosure.

There were no changes in our internal control over financial reporting during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

### FORWARD-LOOKING STATEMENTS

National Beverage Corp. and its representatives may make written or oral statements relating to future events or results relative to our financial, operational and business performance, achievements, objectives and strategies. These statements are “forward-looking” within the meaning of the Private Securities Litigation Reform Act of 1995 and include statements contained in this report and other filings with the Securities and Exchange Commission and in reports to our stockholders. Certain statements including, without limitation, statements containing the words “believes,” “anticipates,” “intends,” “plans,” “expects,” and “estimates” constitute “forward-looking statements” and involve known and unknown risk, uncertainties and other factors that may cause the actual results, performance or achievements of our Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the following: general economic and business conditions, pricing of competitive products, success of new product and flavor introductions, fluctuations in the costs and availability of raw materials and packaging supplies, ability to pass along cost increases to our customers, labor strikes or work stoppages or other interruptions in the employment of labor, continued retailer support for our products, changes in brand image, consumer demand and preferences and our success in creating products geared toward consumers’ tastes, success in implementing business strategies, changes in business strategy or development plans, government regulations, taxes or fees imposed on the sale of our products, unfavorable weather conditions and other factors referenced in this report, filings with the Securities and Exchange Commission and other reports to our stockholders. We disclaim an obligation to update any such factors or to publicly announce the results of any revisions to any forward-looking statements contained herein to reflect future events or developments.

## Risk factors

As filed, 147 characters.

There have been no material changes in risk factors from those reported in our Annual Report on Form 10-K for the fiscal year ended April 29, 2023.

Filed Sep 7, 2023.
Source: SEC EDGAR, the filing index for accession 0001437749-23-025402. Last ingested by Listed: Oct 24, 2026, 14:53 ET. No prices; not investment advice.