National Beverage (FIZZ) 10-Q 7 Sep 23 2024 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Jul. 29, 2023	Sep. 06, 2023
Document Information [Line Items]
Entity Central Index Key	0000069891
Entity Registrant Name	National Beverage Corp.
Amendment Flag	false
Current Fiscal Year End Date	--04-29
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2024
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 29, 2023
Document Transition Report	false
Entity File Number	1-14170
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	59-2605822
Entity Address, Address Line One	8100 SW Tenth Street, Suite 4000
Entity Address, City or Town	Fort Lauderdale
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33324
City Area Code	954
Local Phone Number	581-0922
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol	FIZZ
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		93,354,146

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Jul. 29, 2023	Apr. 29, 2023
Assets
Cash and equivalents	$ 222,769	$ 158,074
Trade receivables - net	107,680	104,918
Inventory	92,999	93,578
Prepaid and other assets	8,025	9,835
Total current assets	431,473	366,405
Property, plant and equipment - net	149,300	148,423
Right of use assets- net	39,766	39,506
Goodwill	13,145	13,145
Intangible assets	1,615	1,615
Other assets	5,108	5,248
Total assets	640,407	574,342
Liabilities and Shareholders' Equity
Accounts payable	87,323	85,106
Accrued liabilities	48,734	47,318
Operating lease liabilities	11,876	11,745
Income taxes payable	8,898	152
Total current liabilities	156,831	144,321
Deferred income taxes net	24,030	19,814
Operating lease liability - non current	29,911	29,782
Other liabilities	7,560	7,938
Total liabilities	218,332	201,855
Commitments and contingencies
Shareholders' equity:
Preferred stock, $1 par value - 1,000,000 shares authorized Series C - 150,000 shares issued	150	150
Common stock, $.01 par value - 200,000,000 shares authorized; 101,727,658 issued at July 29, 2023 and April 29, 2023	1,017	1,017
Additional paid-in capital	40,561	40,393
Retained earnings	407,976	358,345
Accumulated other comprehensive loss	(3,396)	(3,185)
Common stock - 8,374,112 shares	(19,133)	(19,133)
Total shareholders' equity	422,075	372,487
Total liabilities and shareholders' equity	640,407	574,342
Series C Preferred Stock [Member]
Shareholders' equity:
Series C preferred stock - 150,000 shares	$ (5,100)	$ (5,100)

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Jul. 29, 2023	Apr. 29, 2023
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	150,000	150,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	101,727,658	101,727,658
Common stock, shares (in shares)	8,374,112	8,374,112
Series C Preferred Stock [Member]
Series C preferred stock, shares (in shares)	150,000	150,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Jul. 29, 2023	Jul. 30, 2022
Net sales	$ 324,240	$ 318,117
Cost of sales	209,759	218,716
Gross profit	114,481	99,401
Selling, general and administrative expenses	51,377	52,923
Operating income	63,104	46,478
Other (income) expense - net	(2,063)	84
Income before income taxes	65,167	46,394
Provision for income taxes	15,536	10,940
Net income	$ 49,631	$ 35,454
Earnings per common share:
Basic (in dollars per share)	$ 53	$ 38
Diluted (in dollars per share)	$ 53	$ 38
Weighted average common shares outstanding:
Basic (in shares)	93,354	93,338
Diluted (in shares)	93,610	93,599

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jul. 29, 2023	Jul. 30, 2022
Net income	$ 49,631	$ 35,454
Cash flow hedges	(211)	(10,956)
Comprehensive income	$ 49,420	$ 24,498

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock Outstanding [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Treasury Stock, Common [Member]	Series C Preferred Stock [Member] Preferred Stock [Member]	Series C Preferred Stock [Member] Treasury Stock, Preferred [Member]
Balance (in shares)		101,712
Balance		$ 1,017	$ 39,405	$ 216,181	$ 6,918
Beginning and end of period (in shares) at Apr. 30, 2022		101,712
Beginning and end of period at Apr. 30, 2022		$ 1,017	39,405	216,181	6,918
Stock-based compensation			170
Balance at Jul. 30, 2022	$ 264,106		39,575	251,635	(4,038)	$ (19,133)	$ 150	$ (5,100)
Net income	35,454			35,454
Cash flow hedges, net of tax	(10,956)				(10,956)
Balance (in shares)						8,374	150	150
Balance	264,106		39,575	251,635	(4,038)	$ (19,133)	$ 150	$ (5,100)
Balance (in shares)		101,727
Balance	372,487	$ 1,017	40,393	358,345	(3,185)
Beginning and end of period (in shares) at Apr. 29, 2023		101,727
Beginning and end of period at Apr. 29, 2023	372,487	$ 1,017	40,393	358,345	(3,185)
Stock-based compensation			168
Balance at Jul. 29, 2023	422,075		40,561	407,976	(3,396)	$ (19,133)	$ 150	$ (5,100)
Net income	49,631			49,631
Cash flow hedges, net of tax	(211)				(211)
Balance (in shares)						8,374	150	150
Balance	$ 422,075		$ 40,561	$ 407,976	$ (3,396)	$ (19,133)	$ 150	$ (5,100)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jul. 29, 2023	Jul. 30, 2022
Operating Activities:
Net income	$ 49,631	$ 35,454
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	4,956	5,461
Deferred income taxes	4,284	1,072
Loss on disposal of property, net	3	6
Stock-based compensation	171	170
Amortization of operating right of use assets	3,329	3,164
Changes in assets and liabilities:
Trade receivables	(2,762)	(6,681)
Inventories	579	12,965
Operating lease right of use assets	(3,589)	(12,468)
Prepaid and other assets	1,475	11,656
Accounts payable	2,217	(19,148)
Accrued and other liabilities	9,562	(344)
Operating lease liabilities	287	9,310
Net cash provided by operating activities	70,143	40,617
Investing Activities:
Additions to property, plant and equipment	(5,474)	(2,609)
Proceeds from sale of property, plant and equipment	26	3
Net cash used in investing activities	(5,448)	(2,606)
Financing Activities:
Repayments of loan facility	0	(30,000)
Net cash used in financing activities	0	(30,000)
Net Increase in Cash and Equivalents	64,695	8,011
Cash and Equivalents - Beginning of Period	158,074	48,050
Cash and Equivalents - End of Period	222,769	56,061
Other Cash Flow Information:
Interest paid	112	192
Income taxes paid (refunded)	$ 1	$ (79)

Note 1 - Significant Accounting

Note 1 - Significant Accounting Policies	3 Months Ended
	Jul. 29, 2023
Notes to Financial Statements
Significant Accounting Policies [Text Block]	1. Basis of Presentation The condensed consolidated financial statements include the accounts of National Beverage Corp. and its subsidiaries. Significant intercompany transactions and accounts have been eliminated. The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and rules and regulations of the Securities and Exchange Commission for interim financial reporting. Accordingly, they do not 10 April 29, 2023. The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the interim unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Results for the interim periods presented are not Inventories Inventories are stated at the lower of first first July 29, 2023 April 29, 2023 Marketing Costs The Company utilizes a variety of marketing programs, including cooperative advertising programs with customers, to advertise and promote its products to consumers. Marketing costs are expensed when incurred, except for prepaid advertising and production costs, which are expensed when the advertising takes place. Marketing costs, which are included in selling, general and administrative expenses, totaled $10.8 million for the three July 29, 2023 three July 30, 2022. Shipping and Handling Costs Shipping and handling costs are reported in selling, general and administrative expenses in the accompanying condensed consolidated statements of income. Such costs totaled $20.9 million for the three July 29, 2023 three July 30, 2022. may not

Note 2 - Property, Plant and Eq

Note 2 - Property, Plant and Equipment	3 Months Ended
	Jul. 29, 2023
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	2. Property, plant and equipment consist of the following: (In thousands) July 29, 2023 April 29, 2023 Land $ 9,835 $ 9,835 Buildings and improvements 70,867 70,615 Machinery and equipment 294,230 289,567 Total 374,932 370,017 Less accumulated depreciation (225,632 ) (221,594 ) Property, plant and equipment – net $ 149,300 $ 148,423 Depreciation expense was $4.6 million for three July 29, 2023, three July 30, 2022.

Note 3 - Debt

Note 3 - Debt	3 Months Ended
	Jul. 29, 2023
Notes to Financial Statements
Debt Disclosure [Text Block]	3. At July 29, 2023, October 28, 2024 May 30, 2025 July 29, 2023 April 29, 2023. July 29, 2023, On December 21, 2021, July 29, 2023 April 29, 2023. December 31, 2023 .95% The Credit Facilities and Loan Facility require the subsidiary to maintain certain financial ratios, including debt to net worth and debt to EBITDA (as defined in the credit agreements), and contain other restrictions, none July 29, 2023,

Note 4 - Stock-based Compensati

Note 4 - Stock-based Compensation	3 Months Ended
	Jul. 29, 2023
Notes to Financial Statements
Share-Based Payment Arrangement [Text Block]	4. During the three July 29, 2023, July 30, 2022,

Note 5 - Derivative Financial I

Note 5 - Derivative Financial Instruments	3 Months Ended
	Jul. 29, 2023
Notes to Financial Statements
Derivative Instruments and Hedging Activities Disclosure [Text Block]	5. From time to time, the Company enters into aluminum swap contracts to partially mitigate our exposure to changes in the cost of aluminum cans. Such financial instruments are designated and accounted for as cash flow hedges. Accordingly, gains or losses are reported in accumulated other comprehensive income (loss) (“AOCI”) and reclassified into cost of sales in the period in which the hedged transaction affects earnings. The following summarizes the gains (losses) recognized in the consolidated statements of Income and AOCI for the quarters ended July 29, 2023 July 30, 2022: (In thousands) 2023 2022 Recognized in AOCI: Loss before income taxes $ (4,040 ) $ (15,010 ) Less income tax benefit (966 ) (3,590 ) Net (3,074 ) (11,420 ) Reclassified from AOCI to cost of sales: Loss before income taxes (3,763 ) (608 ) Less income tax benefit (900 ) (144 ) Net (2,863 ) (464 ) Net change to AOCI $ (211 ) $ (10,956 ) As of July 29, 2023, no 12 As of July 29, 2023, April 29, 2023, not 2

Note 6 - Leases

Note 6 - Leases	3 Months Ended
	Jul. 29, 2023
Notes to Financial Statements
Lessee, Operating Leases [Text Block]	6. The Company has entered into various non-cancelable operating lease agreements for certain of our offices, buildings, machinery and equipment expiring at various dates through July 2035. not not three July 29, 2023 July 30, 2022 July 29, 2023, April 29, 2023, three July 29, 2023 three July 30, 2022. The following is a summary of future minimum lease payments and related liabilities for all non-cancelable operating leases as of July 29, 2023: (In thousands) Fiscal 2024 – Remaining 3 quarters $ 10,061 Fiscal 2025 10,719 Fiscal 2026 8,892 Fiscal 2027 7,428 Fiscal 2028 3,522 Thereafter 4,519 Total minimum lease payments including interest 45,141 Less: Amounts representing interest (3,354 ) Present value of minimum lease payments 41,787 Less: Current portion of lease obligations (11,876 ) Non-current portion of lease obligations $ 29,911

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Jul. 29, 2023
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation The condensed consolidated financial statements include the accounts of National Beverage Corp. and its subsidiaries. Significant intercompany transactions and accounts have been eliminated. The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and rules and regulations of the Securities and Exchange Commission for interim financial reporting. Accordingly, they do not 10 April 29, 2023. The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the interim unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Results for the interim periods presented are not
Inventory, Policy [Policy Text Block]	Inventories Inventories are stated at the lower of first first July 29, 2023 April 29, 2023
Advertising Cost [Policy Text Block]	Marketing Costs The Company utilizes a variety of marketing programs, including cooperative advertising programs with customers, to advertise and promote its products to consumers. Marketing costs are expensed when incurred, except for prepaid advertising and production costs, which are expensed when the advertising takes place. Marketing costs, which are included in selling, general and administrative expenses, totaled $10.8 million for the three July 29, 2023 three July 30, 2022.
Contract With Customer Liability, Shipping and Handling Cost [Policy Text Block]	Shipping and Handling Costs Shipping and handling costs are reported in selling, general and administrative expenses in the accompanying condensed consolidated statements of income. Such costs totaled $20.9 million for the three July 29, 2023 three July 30, 2022. may not

Note 2 - Property, Plant and _2

Note 2 - Property, Plant and Equipment (Tables)	3 Months Ended
	Jul. 29, 2023
Notes Tables
Property, Plant and Equipment [Table Text Block]	(In thousands) July 29, 2023 April 29, 2023 Land $ 9,835 $ 9,835 Buildings and improvements 70,867 70,615 Machinery and equipment 294,230 289,567 Total 374,932 370,017 Less accumulated depreciation (225,632 ) (221,594 ) Property, plant and equipment – net $ 149,300 $ 148,423

Note 5 - Derivative Financial_2

Note 5 - Derivative Financial Instruments (Tables)	3 Months Ended
	Jul. 29, 2023
Notes Tables
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block]	(In thousands) 2023 2022 Recognized in AOCI: Loss before income taxes $ (4,040 ) $ (15,010 ) Less income tax benefit (966 ) (3,590 ) Net (3,074 ) (11,420 ) Reclassified from AOCI to cost of sales: Loss before income taxes (3,763 ) (608 ) Less income tax benefit (900 ) (144 ) Net (2,863 ) (464 ) Net change to AOCI $ (211 ) $ (10,956 )

Note 6 - Leases (Tables)

Note 6 - Leases (Tables)	3 Months Ended
	Jul. 29, 2023
Notes Tables
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block]	(In thousands) Fiscal 2024 – Remaining 3 quarters $ 10,061 Fiscal 2025 10,719 Fiscal 2026 8,892 Fiscal 2027 7,428 Fiscal 2028 3,522 Thereafter 4,519 Total minimum lease payments including interest 45,141 Less: Amounts representing interest (3,354 ) Present value of minimum lease payments 41,787 Less: Current portion of lease obligations (11,876 ) Non-current portion of lease obligations $ 29,911

Note 1 - Significant Accounti_2

Note 1 - Significant Accounting Policies (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Jul. 29, 2023	Jul. 30, 2022	Apr. 29, 2023
Inventory, Finished Goods, Gross	$ 52.6		$ 54.3
Inventory, Raw Materials, Gross	40.3		$ 39.2
Marketing Expense	10.8	$ 10.3
Shipping and Handling Costs	$ 20.9	$ 23.6

Note 2 - Property, Plant and _3

Note 2 - Property, Plant and Equipment (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Jul. 29, 2023	Jul. 30, 2022
Depreciation	$ 4.6	$ 4.5

Note 2 - Property, Plant and _4

Note 2 - Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Jul. 29, 2023	Apr. 29, 2023
Land	$ 9,835	$ 9,835
Buildings and improvements	70,867	70,615
Machinery and equipment	294,230	289,567
Total	374,932	370,017
Less accumulated depreciation	(225,632)	(221,594)
Property, plant and equipment – net	$ 149,300	$ 148,423

Note 3 - Debt (Details Textual)

Note 3 - Debt (Details Textual) - USD ($) $ in Thousands		3 Months Ended
	Dec. 21, 2021	Jul. 29, 2023	Apr. 29, 2023
Term Loan Facility [Member]
Debt Instrument, Face Amount	$ 50,000
Long-Term Debt, Gross		$ 0	$ 0
Secured Overnight Financing Rate (SOFR) [Member] | Term Loan Facility [Member]
Debt Instrument, Basis Spread on Variable Rate	0.95%
Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity		100,000
Long-Term Line of Credit		0
Letters of Credit Outstanding, Amount		2,200
Line of Credit Facility, Remaining Borrowing Capacity		$ 97,800
Revolving Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) [Member]
Debt Instrument, Basis Spread on Variable Rate		1.05%

Note 4 - Stock-based Compensa_2

Note 4 - Stock-based Compensation (Details Textual) - $ / shares	Jul. 29, 2023	Jul. 30, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number (in shares)	0	536,600
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in dollars per share)		$ 18.97
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares)		5,387,005

Note 5 - Derivative Financial_3

Note 5 - Derivative Financial Instruments (Details Textual) - USD ($) $ in Millions	Jul. 29, 2023	Apr. 29, 2023
Derivative, Notional Amount	$ 49.5
Price Risk Cash Flow Hedge Unrealized Gain (Loss) to be Reclassified During Next 12 Months	4.9
Derivative Liability, Current	$ 4.9	$ 4.6

Note 5 - Derivative Financial_4

Note 5 - Derivative Financial Instruments - Derivatives Instruments, Statements of Financial Performance and Financial Position (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 29, 2023	Jul. 30, 2022
Loss before income taxes	$ (4,040)	$ (15,010)
Less income tax benefit	(966)	(3,590)
Net	(3,074)	(11,420)
Loss before income taxes	(3,763)	(608)
Less income tax benefit	(900)	(144)
Net	(2,863)	(464)
Net change to AOCI	$ (211)	$ (10,956)

Note 6 - Leases (Details Textua

Note 6 - Leases (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Jul. 29, 2023	Jul. 30, 2022	Apr. 29, 2023
Operating Lease, Cost	$ 3.7	$ 3.4
Operating Lease, Weighted Average Remaining Lease Term (Year)	4 years 4 months 24 days		4 years 4 months 2 days
Operating Lease, Weighted Average Discount Rate, Percent	3.40%		3.30%
Operating Lease, Payments	$ 3.7	$ 3.4

Note 6 - Leases - Future Minimu

Note 6 - Leases - Future Minimum Lease Payments and Related Liabilities for Non-cancelable Operating Leases (Details) - USD ($) $ in Thousands	Jul. 29, 2023	Apr. 29, 2023
Fiscal 2024 – Remaining 3 quarters	$ 10,061
Fiscal 2025	10,719
Fiscal 2026	8,892
Fiscal 2027	7,428
Fiscal 2028	3,522
Thereafter	4,519
Total minimum lease payments including interest	45,141
Less: Amounts representing interest	(3,354)
Present value of minimum lease payments	41,787
Less: Current portion of lease obligations	(11,876)	$ (11,745)
Non-current portion of lease obligations	$ 29,911	$ 29,782