Flowers Foods (FLO) 8-K Flowers Foods, Inc. Reports Fourth Quarter

Exhibit 99.1

Company Press Release

February 5, 2020 Flowers Foods (NYSE: FLO)            

FLOWERS FOODS, INC. REPORTS FOURTH QUARTER

AND FULL YEAR 2019 RESULTS

THOMASVILLE, Ga. – Flowers Foods, Inc. (NYSE: FLO), producer ofNature’s Own,Dave’s Killer Bread,Wonder,Tastykake,and other bakery foods, today reported financial results for the company’s12-week fourth quarter ended December 28, 2019.

Fiscal 2019 Summary:

Compared to the prior year where applicable

• Sales increased 4.4% to $4.124 billion; excluding the acquisition ofCanyon Bakehouse, net sales increased 2.2%.

• Diluted EPS increased $0.04 to $0.78.

• Adjusted diluted EPS⁽¹⁾ increased $0.02 to $0.96.

Fourth Quarter Summary:

Compared to the prior year fourth quarter where applicable

• Sales increased 4.2% to $917.8 million; excluding the acquisition ofCanyon Bakehouse, net sales increased 1.2%.

• Diluted EPS decreased $0.09 to $0.01.

• Adjusted diluted EPS⁽¹⁾ increased $0.02 to $0.18.

(1) Adjusted for items affecting comparability. See reconciliations ofnon-GAAP measures in the financial statements following this release.

CEO’s Remarks:

Ryals McMullian, Flowers Foods’ president and CEO, said, “We are pleased to report solid fourth quarter performance and record sales and operating cash flow for the full year. In the quarter, results were better than expected, driven by continuedtop-line momentum and improved profitability. During the quarter, we saw growth from our key brands, made important progress in our portfolio and supply chain optimization efforts, and continued to invest in our team’s capabilities. As a result, we ended the year on the right trajectory, demonstrating clear progress against our dual imperatives of sales growth and margin expansion.”

McMullian continued, “Looking ahead, our 2020 plans engage the core value creation strategies we have put in place to focus on brands, manage costs, pursue smart acquisitions, and develop our team. We expect fiscal 2020 sales growthin-line with our long-term targets driven by the strength of our national brands and the expected stabilization and growth of our foodservice and cake businesses. We intend to drive earnings growth by executing against our initiatives to improve manufacturing efficiencies, optimize our portfolio and supply chain network, and reduce fixed costs. We made great strides in 2019 and are now moving aggressively to capture the opportunities we see in 2020 that we believe can enhance shareholder value.”

Fiscal 2020 Outlook:

For the53-week fiscal 2020 the company expects

• Sales in the range of approximately $4.206 billion to $4.289 billion, representing growth of approximately 2.0% to 4.0%.

• Diluted EPS in the range of approximately $0.50 to $0.64, including charges related to the termination of a defined benefit pension plan in the range of $125 million to $143 million.

• Adjusted diluted EPS⁽¹⁾ in the range of approximately $1.00 to $1.08, representing growth of approximately 4.2% to 12.5%.

(1) Adjusted for items affecting comparability. See reconciliations of non-GAAP measures in the financial statements following this release.

The company’s outlook assumes the following:

• Depreciation and amortization in the range of $140 million to $145 million

• Other pension expense of approximately $2 million

• Net interest expense in the range of $8 million to $10 million

• An effective tax rate of approximately 24%

• Weighted average diluted share count for the year of approximately 212.5 million shares

• Capital expenditures for the year in the range of $105 million to $115 million

Matters Affecting Comparability:

Reconciliation of Earnings per Share to Adjusted Earnings per Share
	For the 12 Weeks Ended
	Dec. 28, 2019		Dec. 29, 2018
Net income per diluted common share	$	0.01	$	0.10
Loss on inferior ingredients		NM		NM
Restructuring and related impairment charges		0.06		0.03
Project Centennial consulting costs		NM		NM
Impairment of assets		—		0.01
Legal settlements		0.10		NM
Acquisition costs		—		0.02
Pension plan settlement loss		—		NM
Adjusted net income per diluted common share	$	0.18	$	0.16
NM - Not Meaningful Certain amounts may not compute due to rounding.

Consolidated Fourth Quarter 2019 Operating Highlights

Compared to the prior year fourth quarter where applicable

• Sales increased 4.2% to $917.8 million.

• Percentage point change in sales attributed to:

• Pricing/mix: 2.1%

• Volume:-0.9%

• Acquisition: 3.0%

• Branded retail sales increased $29.0 million, or 5.5%, to $551.7 million, store branded retail sales increased $9.8 million, or 7.5% to $140.3 million, whilenon-retail and other sales decreased $1.7 million, or 0.8%, to $225.8 million.

• Branded retail sales increased due primarily to the Canyon acquisition, continued growth ofDave’s Killer Bread andNature’s Own Perfectly Crafted branded products and more favorable price/mix, partially offset by lower volumes for traditional loaf breads, bakery deli items, and cake products.

• Store branded retail sales increased primarily due to gluten-free, store-branded items produced by Canyon, volume growth from additional distribution, and positive price/mix, partially offset by volume declines in store branded cake and breakfast breads.

• Volume declines in foodservice, vending, and institutional products drove the decrease innon-retail and other sales.

• Net income decreased 89.4% to $2.2 million. Adjusted net income increased 11.6% to $38.1 million.

• Adjusted EBITDA increased 7.3% to $84.5 million, representing 9.2% of sales, a30-basis point increase.

• Materials, supplies, labor and other production costs (exclusive of depreciation and amortization) were 53.0% of sales, flat compared to the prior year. Higher workforce-related costs and decreased manufacturing efficiencies, were offset by improved pricing/mix and lower ingredient costs as a percent of sales.

• Selling, distribution and administrative (SD&A) expenses were 41.1% of sales, a260-basis point increase. Excluding items affecting comparability, the largest of which being a $29.2 million legal settlement in the quarter, SD&A expenses decreased by20-basis points. Higher workforce-related costs and marketing expenses were offset by lower distributor distribution fees as a percentage of sales due to a shift in product mix, and lower transportation costs.

• Depreciation and amortization (D&A) expenses were $32.9 million, 3.6% of sales, a10-basis point decrease.

Cash Flow, Capital Allocation, and Capital Return

For fiscal 2019, cash flow from operating activities increased by $71.1 million to $367.0 million, capital expenditures increased by $4.3 million to $103.7 million, and dividends paid increased by $9.8 million to $160.0 million. During fiscal 2019, the company made cash debt repayments of $114.3 million.

The company has 6.2 million remaining shares authorized for repurchase under the company’s current share repurchase plan. The company expects to continue to make opportunistic share repurchases from time to time under this plan.

Conference Call

Flowers Foods will hold a conference call to discuss its fourth quarter 2019 results at 8:30 a.m. (Eastern) on February 6, 2020. The call can be accessed by following the webcast link on flowersfoods.com. The call also will be archived on the company’s website.

About Flowers Foods

Headquartered in Thomasville, Ga., Flowers Foods, Inc. (NYSE: FLO) is one of the largest producers of fresh packaged bakery foods in the United States with 2019 sales of $4.1 billion. Flowers operates bakeries across the country that produce a wide range of bakery products. Among the company’s top brands areNature’s Own,Dave’s Killer Bread,Wonder, andTastykake. Learn more at www.flowersfoods.com.

Investor Contact: J.T. Rieck (229)227-2253

Media Contact: Paul Baltzer (229)227-2380

Forward-Looking Statements

Statements contained in this press release that are not historical facts are forward-looking statements. Forward-looking statements relate to current expectations regarding our future financial condition, performance and results of operations, planned capital expenditures, long-term objectives of management, supply and demand, pricing trends and market forces, and integration plans and expected benefits of transactions and are often identified by the use of words and phrases such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will,” “would,” “is likely to,” “is expected to” or “will continue,” or the negative of these terms or other comparable terminology. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected. Other factors that may cause actual results to differ from the forward-looking statements contained in this release and that may affect the company’s prospects in general include, but are not limited to, (a) general economic and business conditions and the competitive conditions in the baked foods industry, including promotional and price competition, (b) changes in consumer demand for our products, including changes in consumer behavior, trends and preferences, including health and whole grain trends, and the movement toward more inexpensive store-branded products, (c) the success of productivity improvements and new product introductions, (d) a significant reduction in business with any of our major customers including a reduction from adverse developments in any of our customer’s business, (e) fluctuations in commodity pricing, (f) energy and raw material costs and availability and hedging and counterparty risk, (g) our ability to fully integrate recent acquisitions into our business, (h) our ability to achieve cash flow from capital expenditures and acquisitions and the availability of new acquisitions that build shareholder value, (i) our ability to successfully implement our business strategies, including those strategies the company has initiated under Project Centennial, which may involve, among other things, the integration of recent acquisitions or the acquisition or disposition of assets at presently targeted values, the deployment of new systems and technology and an enhanced organizational structure, (j) consolidation within the baking industry and related industries, (k) disruptions in our direct-store delivery system, including litigation or an adverse ruling from a court or regulatory or government body that could affect the independent contractor classification of our independent distributors, (l) increasing legal complexity and legal proceedings that we are or may become subject to, (m) product recalls or safety concerns related to our products, and (n) the failure of our information technology systems to perform adequately, including any interruptions, intrusions or security breaches of such systems. The foregoing list of important factors does not include all such factors, nor necessarily present them in order of importance. In addition, you should consult other public disclosures made by the company, including the risk factors included in our most recently filed Annual Report on Form10-K and Quarterly Reports on Form10-Q filed with the Securities and Exchange Commission (“SEC”) and disclosures made in other filings with the SEC and company press releases, for other factors that may cause actual results to differ materially from those projected by the company. We caution you not to place undue reliance on forward-looking statements, as they speak only as of the date made and are inherently uncertain. The company undertakes no obligation to publicly revise or update such statements, except as required by law.

Information RegardingNon-GAAP Financial Measures

The company prepares its consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP). However, from time to time, the company may present in its public statements, press releases and SEC filings,non-GAAP financial measures, such as EBITDA, adjusted EBITDA, EBITDA margin, adjusted EBITDA margin, adjusted net income, adjusted operating income, adjusted EPS, adjusted income tax expense, adjusted selling, distribution and administrative expenses (SD&A), gross margin excluding depreciation and amortization and the ratio of net debt to adjusted EBITDA. The reconciliations attached provide reconciliations of thenon-GAAP measures used in this presentation or release to the most comparable GAAP financial measure. The company’s definitions of thesenon-GAAP measures may differ from similarly titled measures used by others. Thesenon-GAAP measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP.

The company defines EBITDA as earnings before interest, taxes, depreciation and amortization. The company believes that EBITDA is a useful tool for managing the operations of its business and is an indicator of the company’s ability to incur and service indebtedness and generate free cash flow. EBITDA is used as the primary performance measure in the company’s 2014 Omnibus Equity and Incentive Compensation Plan. Furthermore, pursuant to the terms of our credit facility, EBITDA is used to determine the company’s compliance with certain financial covenants. The company also believes that EBITDA measures are commonly reported and widely used by investors and other interested parties as measures of a company’s operating performance and debt servicing ability because EBITDA measures assist in comparing performance on a consistent basis without regard to depreciation or amortization, which can vary significantly. EBITDA is also a widely-accepted financial indicator of a company’s ability to incur and service indebtedness.

EBITDA should not be considered an alternative to (a) income from operations or net income (loss) as a measure of operating performance; (b) cash flows provided by operating, investing and financing activities (as determined in accordance with GAAP) as a measure of the company’s ability to meet its cash needs; or (c) any other indicator of performance or liquidity that has been determined in accordance with GAAP.

The company defines adjusted EBITDA, EBITDA margin, adjusted EBITDA margin, adjusted net income, adjusted operating income, adjusted EPS, adjusted income tax expense, adjusted SD&A expenses, respectively, to further exclude, as applicable, the impact of pension plan settlements and other costs, loss or recovery on inferior ingredients, restructuring and related impairment charges, Project Centennial consulting costs, asset impairment charges, lease terminations and legal settlements, costs related to executive retirement, acquisition-related costs, and and multi-employer pension plan withdrawal costs. Adjusted net income and adjusted income tax expense also excludes the impact of tax reform. The company believes that these measures, when considered together with its GAAP financial results, provides management and investors with a more complete understanding of its business operating results, including underlying trends, by excluding the effects of certain charges.

The ratio of debt to EBITDA is used as a measure of financial leverage employed by the company. Gross margin excluding depreciation and amortization is used as a performance measure to provide additional transparent information regarding our results of operations on a consolidated and segment basis. Changes in depreciation and amortization are separately discussed and include depreciation and amortization for materials, supplies, labor and other production costs and operating activities.

Presentation of gross margin includes depreciation and amortization in the materials, supplies, labor and other production costs in accordance with GAAP. Our method of presenting gross margin excludes the depreciation and amortization components, as discussed above.

The reconciliations attached provide reconciliations of thenon-GAAP measures used in this presentation or release to the most comparable GAAP financial measure.

Flowers Foods, Inc.

Condensed Consolidated Balance Sheets

(000’s omitted)

	December 28, 2019		December 29, 2018
Assets
Cash and Cash Equivalents	$	11,044	$	25,306
Other Current Assets		515,165		492,073
Property, Plant & Equipment, net		717,822		743,847
Right-of-Use Leases, net		399,302		—
Distributor Notes Receivable (1)		226,348		230,470
Other Assets		12,644		13,533
Cost in Excess of Net Tangible Assets, net		1,295,451		1,340,308
Total Assets	$	3,177,776	$	2,845,537
Liabilities and Stockholders’ Equity
Current Liabilities	$	463,431	$	389,443
Long-term Debt and Capital Lease Liabilities (2)		866,508		1,001,536
Right-of-Use Lease Liabilities (3)		404,503		—
Other Liabilities		179,904		196,291
Stockholders’ Equity		1,263,430		1,258,267
Total Liabilities and Stockholders’ Equity	$	3,177,776	$	2,845,537

(1) Includes current portion of $27,709 and $26,345, respectively.

(2) Includes current portion of $3,730 and $10,896, respectively.

(3) Includes current portion of $60,982.

Flowers Foods, Inc.

Consolidated Statement of Operations

(000’s omitted, except per share data)

	For the 12 Week			For the 12 Week		For the 52 Week			For the 52 Week
	Period Ended			Period Ended		Period Ended			Period Ended
	December 28, 2019			December 29, 2018		December 28, 2019			December 29, 2018
Sales	$	917,759		$	880,667	$	4,123,974		$	3,951,852
Materials, supplies, labor and other production costs
(exclusive of depreciation and amortization shown separately below)		485,960			467,155		2,155,709			2,066,828
Selling, distribution and administrative expenses		377,196			339,377		1,575,122			1,507,256
Loss (recovery) on inferior ingredients		376			1,219		(37	)		3,212
Restructuring and related impairment charges		17,482			7,210		23,524			9,767
Impairment of assets		—			3,516		—			5,999
Multi-employer pension plan withdrawal costs		—			—		—			2,322
Depreciation and amortization expense		32,884			32,175		144,228			144,124
Income from operations		3,861			30,015		225,428			212,344
Other pension cost (benefit)		519			675		2,248			(529	)
Pension plan settlement loss		—			1,148		—			7,781
Interest expense, net		2,170			1,717		11,097			7,931
Income before income taxes		1,172			26,475		212,083			197,161
Income tax expense (benefit)		(1,047	)		5,634		47,545			40,001
Net income	$	2,219		$	20,841	$	164,538		$	157,160
Net income per diluted common share	$	0.01		$	0.10	$	0.78		$	0.74
Diluted weighted average shares outstanding		212,041			211,800		211,974			211,632

Flowers Foods, Inc.

Condensed Consolidated Statement of Cash Flows

(000’s omitted)

	For the 12 Week			For the 12 Week			For the 52 Week			For the 52 Week
	Period Ended			Period Ended			Period Ended			Period Ended
	December 28, 2019			December 29, 2018			December 28, 2019			December 29, 2018
Cash flows from operating activities:
Net income	$	2,219		$	20,841		$	164,538		$	157,160
Adjustments to reconcile net income to net cash from operating activities:
Totalnon-cash adjustments		63,788			48,182			203,806			198,160
Changes in assets and liabilities and pension contributions		22,845			(5,189	)		(1,392	)		(59,427	)
Net cash provided by operating activities		88,852			63,834			366,952			295,893
Cash flows from investing activities:
Purchase of property, plant and equipment		(33,075	)		(24,430	)		(103,685	)		(99,422	)
Acquisitions, net of cash acquired		—			(200,174	)		—			(200,174	)
Proceeds from sale of property, plant and equipment		101			547			2,649			1,913
Other		987			(4,336	)		3,943			(4,122	)
Net cash disbursed for investing activities		(31,987	)		(228,393	)		(97,093	)		(301,805	)
Cash flows from financing activities:
Dividends paid		(40,188	)		(37,967	)		(159,987	)		(150,214	)
Exercise of stock options		—			—			—		��	791
Stock repurchases		—			—			(7,054	)		(2,489	)
Net change in debt borrowings		(11,750	)		177,000			(114,250	)		173,250
Payments on financing leases		(952	)		—			(5,937	)		—
Other		101			1,105			3,107			4,751
Net cash provided by (disbursed for) financing activities		(52,789	)		140,138			(284,121	)		26,089
Net increase (decrease) in cash and cash equivalents		4,076			(24,421	)		(14,262	)		20,177
Cash and cash equivalents at beginning of period		6,968			49,727			25,306			5,129
Cash and cash equivalents at end of period	$	11,044		$	25,306		$	11,044		$	25,306

Flowers Foods, Inc.

Sales by Sales Class and Sales Bridge

(000’s omitted)

	For the 12 Week		For the 12 Week
Sales by Sales Class	Period Ended		Period Ended
	December 28, 2019		December 29, 2018		$ Change			% Change
Branded Retail	$	551,665	$	522,658	$	29,007			5.5	%
Store Branded Retail		140,288		130,478		9,810			7.5	%
Non-Retail and Other		225,806		227,531		(1,725	)		-0.8	%
Total Sales	$	917,759	$	880,667	$	37,092			4.2	%
	For the 52 Week		For the 52 Week
Sales by Sales Class	Period Ended		Period Ended
	December 28, 2019		December 29, 2018		$ Change			% Change
Branded Retail	$	2,481,835	$	2,346,944	$	134,891			5.7	%
Store Branded Retail		645,091		586,661		58,430			10.0	%
Non-Retail and Other		997,048		1,018,247		(21,199	)		-2.1	%
Total Sales	$	4,123,974	$	3,951,852	$	172,122			4.4	%

Sales Bridge							Sales Change
				Net			excluding			Acquisition			Total
For the 12 Week Period Ended December 28, 2019	Volume			Price/Mix			Acquisition			Contribution			Sales Change
Flowers Foods		-0.9	%		2.1	%		1.2	%		3.0	%		4.2	%
Sales Bridge							Sales Change
				Net			excluding			Acquisition			Total
For the 52 Week Period Ended December 28, 2019	Volume			Price/Mix			Acquisition			Contribution			Sales Change
Flowers Foods		-0.2	%		2.4	%		2.2	%		2.2	%		4.4	%

Flowers Foods, Inc.

Reconciliation of GAAP toNon-GAAP Measures

(000’s omitted, except per share data)

	Reconciliation of Earnings per Share to Adjusted Earnings per Share
	For the 12 Week			For the 12 Week Period			For the 52 Week			For the 52 Week Period
	Period Ended			Ended			Period Ended			Ended
	December 28, 2019			December 29, 2018			December 28, 2019			December 29, 2018
Net income per diluted common share	$	0.01		$	0.10		$	0.78		$	0.74
Loss (recovery) on inferior ingredients		NM			NM			NM			0.01
Restructuring and related impairment charges		0.06			0.03			0.08			0.03
Project Centennial consulting costs		NM			NM			NM			0.03
Impairment of assets		—			0.01			—			0.01
Legal settlements (recovery)		0.10			NM			0.10			0.08
Executive retirement agreement		—			—			NM			—
Canyon acquisition costs		—			0.02			NM			0.02
Pension plan settlement loss		—			NM			—			0.03
Multi-employer pension plan withdrawal costs		—			—			—			0.01
Adjustment to prior year provisional tax reform benefit		—			—			—			(0.03	)
Adjusted net income per diluted common share	$	0.18		$	0.16		$	0.96		$	0.94
NM - not meaningful.
Certain amounts may not add due to rounding.
	Reconciliation of Gross Margin
	For the 12 Week			For the 12 Week Period			For the 52 Week			For the 52 Week Period
	Period Ended			Ended			Period Ended			Ended
	December 28, 2019			December 29, 2018			December 28, 2019			December 29, 2018
Sales	$	917,759		$	880,667		$	4,123,974		$	3,951,852
Materials, supplies, labor and other production costs (exclusive of depreciation and amortization)		485,960			467,155			2,155,709			2,066,828
Gross Margin excluding depreciation and amortization		431,799			413,512			1,968,265			1,885,024
Less depreciation and amortization for production activities		18,937			18,799			80,959			81,597
Gross Margin	$	412,862		$	394,713		$	1,887,306		$	1,803,427
Depreciation and amortization for production activities	$	18,937		$	18,799		$	80,959		$	81,597
Depreciation and amortization for selling, distribution and administrative activities		13,947			13,376			63,269			62,527
Total depreciation and amortization	$	32,884		$	32,175		$	144,228		$	144,124
	Reconciliation of Selling, Distribution and Administrative Expenses to Adjusted SD&A
	For the 12 Week			For the 12 Week Period			For the 52 Week			For the 52 Week Period
	Period Ended			Ended			Period Ended			Ended
	December 28, 2019			December 29, 2018			December 28, 2019			December 29, 2018
Selling, distribution and administrative expenses (SD&A)	$	377,196		$	339,377		$	1,575,122		$	1,507,256
Project Centennial consulting costs		(784	)		(347	)		(784	)		(9,723	)
Legal (settlements) recovery		(29,150	)		164			(28,014	)		(21,452	)
Executive retirement agreement		—			—			(763	)		—
Canyon acquisition costs		—			(4,476	)		(22	)		(4,476	)
Adjusted SD&A	$	347,262		$	334,718		$	1,545,539		$	1,471,605
	Reconciliation of Net Income to EBITDA and Adjusted EBITDA
	For the 12 Week			For the 12 Week Period			For the 52 Week			For the 52 Week Period
	Period Ended			Ended			Period Ended			Ended
	December 28, 2019			December 29, 2018			December 28, 2019			December 29, 2018
Net income	$	2,219		$	20,841		$	164,538		$	157,160
Income tax expense (benefit)		(1,047	)		5,634			47,545			40,001
Interest expense, net		2,170			1,717			11,097			7,931
Depreciation and amortization		32,884			32,175			144,228			144,124
EBITDA		36,226			60,367			367,408			349,216
Other pension cost (benefit)		519			675			2,248			(529	)
Pension plan settlement loss		—			1,148			—			7,781
Loss (recovery) on inferior ingredients		376			1,219			(37	)		3,212
Restructuring and related impairment charges		17,482			7,210			23,524			9,767
Project Centennial consulting costs		784			347			784			9,723
Impairment of assets		—			3,516			—			3,516
Legal settlements (recovery)		29,150			(164	)		28,014			21,452
Executive retirement agreement		—			—			763			—
Canyon acquisition costs		—			4,476			22			4,476
Multi-employer pension plan withdrawal costs		—			—			—			2,322
Adjusted EBITDA	$	84,537		$	78,794		$	422,726		$	410,936
Sales	$	917,759		$	880,667		$	4,123,974		$	3,951,852
Adjusted EBITDA margin		9.2	%		8.9	%		10.3	%		10.4	%

Flowers Foods, Inc.

Reconciliation of GAAP toNon-GAAP Measures

(000’s omitted, except per share data)

	Reconciliation of Income Tax Expense (Benefit) to Adjusted Income Tax Expense
	For the 12 Week			For the 12 Week Period			For the 52 Week			For the 52 Week Period
	Period Ended			Ended			Period Ended			Ended
	December 28, 2019			December 29, 2018			December 28, 2019			December 29, 2018
Income tax expense (benefit)	$	(1,047	)	$	5,634		$	47,545		$	40,001
Tax impact of:
Loss (recovery) on inferior ingredients		95			308			(9	)		811
Restructuring and related impairment charges		4,414			1,821			5,940			2,466
Project Centennial consulting costs		198			88			198			2,455
Impairment of assets		—			888			—			888
Legal settlements (recovery)		7,238			(41	)		6,951			5,417
Executive retirement agreement		—			—			193			—
Canyon acquisition costs		—			1,130			6			1,130
Pension plan settlement loss		—			290			—			1,965
Multi-employer pension plan withdrawal costs		—			—			—			586
Adjustment to prior year provisional tax reform benefit		—			—			—			5,575
Adjusted income tax expense	$	10,898		$	10,118		$	60,824		$	61,294
	Reconciliation of Net Income to Adjusted Net Income
	For the 12 Week			For the 12 Week Period			For the 52 Week			For the 52 Week Period
	Period Ended			Ended			Period Ended			Ended
	December 28, 2019			December 29, 2018			December 28, 2019			December 29, 2018
Net income	$	2,219		$	20,841		$	164,538		$	157,160
Loss (recovery) on inferior ingredients		281			911			(28	)		2,401
Restructuring and related impairment charges		13,068			5,389			17,584			7,301
Project Centennial consulting costs		586			259			586			7,268
Impairment of assets		—			2,628			—			2,628
Legal settlements (recovery)		21,912			(123	)		21,063			16,035
Executive retirement agreement		—			—			570			—
Canyon acquisition costs		—			3,346			16			3,346
Pension plan settlement loss		—			858			—			5,816
Multi-employer pension plan withdrawal costs		—			—			—			1,736
Adjustment to prior year provisional tax reform benefit		—			—			—			(5,575	)
Adjusted net income	$	38,066		$	34,109		$	204,329		$	198,116

	Reconciliation of Earnings per Share - Full Year
	Fiscal 2020 Guidance
	Range Estimate
Net income per diluted common share	$	0.50	to	$	0.64
Pension plan settlement loss		0.50			0.44
Adjusted net income per diluted common share	$	1.00	to	$	1.08
Certain amounts may not add due to rounding.