TWNK - Earnings call transcript Q2 2018

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Operator

Greetings, and welcome to the Hostess Brands Incorporated Second Quarter 2018 Earnings Conference Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Ms. Relations. Investor Turner, Katie madam. ahead go Please

Katie Turner

XX, Good afternoon Earnings access Second XXXX p.m. ended Hostess the afternoon out at approximately welcome Call. By to X:XX June period Conference the have Time. release Brands' that now, went earnings this Quarter Eastern for and XXXX everyone to should

Hostess call remind the available and webcast, a that will be not If available will number Hostess’ being you received include have to website statements. of is on the would company’s today’s discussion forward website. on it’s you release, at like www.hostessbrands.com. This a replay looking

references If release will remember differ these forward-looking company’s see no the company to or company’s that you you company release of with materially to statements. most on business from revise comparable undertakes forward-looking these number reconciliation will most financial trends of discussion the earnings included refer to factors of a and investors financial the non-GAAP Hostess’ as well the of provide full obligation non-GAAP the results GAAP measures the Please a has The The filings, statements. to could earnings recent in make useful update underlying SEC measures. cause these growth as actual its to measures. a the company measures perspective believes

Callahan. like turn Andy would Hostess CEO, the to and I Brands' Now call over President to

Andrew Callahan

passion businesses. Hostess and differentiating for customers investing spent business. of opportunities great Hostess foundational to cash on also profitable to assets I flow Hostess the months want clear business to to me knowledge continued to speed growth have start by remained members, and the adjacent enthusiasm thanking the who terrific Katie. been as get on this partners, Hostess and time for core is strong as has strong. Thanks, past is Hostess and boarding for within continued value many over leading the extra pillars acquire It’s and creation energy well three operating the paths clear. unlock the up What's the industry multiple growth team

cost the miss support We detail growth. retail the escalating to impacted in QX inventory partner allowance significant and inflationary a one supply due on will focus from the drive are currently to versus and large Tom sharpening quickly impactful with as in retail well the directly which expectations. in promotional discuss our a chain decline more as was pull support lower customers consumer by additional pillars QX were most results growth. to

the transformation to the the were XXXX, and first line we it optimistic of in a in hostess Despite XXXX which Sweet accretive Goods provides very ahead original in of with of category to impact acquisition with associated Baked opportunities rate Chicago of beyond. expenses short-term model continue at for XXXX purchase the significant consumers remain is the the foundation half expect headwinds, these Although perform growth. about in and our the long-term

sales gained nearly net points. QX dollars. point-of-sale and significant XX.X% was important up of Hostess represent XX% Brands' market share channels. Hostess XX Point-of-sale of for sub-brands X.X%. for ended seven some through sub-brands XX-week This is category. ahead of June highlights. second branded well XX. go the the X.X% increased me increased point-of-sale Let period These the Hostess quarter revenue market and Brands our XX% in top Hostess growth share total basis also point-of-sale

high XXX points new XXX% for was and additionally, channel Point-of-sale up to and was up us. the me quarter an for basis XX through a dollars points Hostess up position Hostess Brands' record which to was highlights club the XXX and basis was X.X% up some points. in up in share this channel. number within And Let company point-of-sale XX.X%, up is all-time convenience food X.X% go were within was solidifies Point-of-sale also here. important XX.X%, one channel share market while for basis share share

increase was the to expect impressive corporate inventory reduction philosophy by and retail due product into moderate this display XX.X% will we lower in merchandising. half retail mentioned, I partially the forward As back-to-school POS offset consumption corresponding large change as move at which the in back a a we moving partner

Our and inflation recover the our growth second is to business increases. our working focus in half cost to align XXXX of driven accelerate while

program to and across to transformation and operations continuing all on the manage support Chicago aligning top reduce increasing agenda, focused line, display the and price channels, driving to are this support key our five Bakery. profitable network continuing innovation to areas our improve We growth; distribution our the merchandising costs, of

inflation are believe systemic to of merchandising We and while the on maintaining inflationary and profitability. to CPG programs are our plans XXXX working and manage to and growth the pricing stay industry pressures restructure We for XXXX. of balance customer the here into

help offset the brand latch-on the in lot believe flexibility others As [ph] retail a for experiencing. we while to retailer headwinds with and incremental display customers growth. such, implement strong and we highly industry of our large will inflationary to and price driving covering a strength We Hostess programs is inflation and balance us profitable increase are our provides

to of impact and of We majority selling in the will in the programs half expect begin these in be XXXX. XXXX second the

programs. intently the also warehouse and execution bakery efficiency on focused We of are

to We our evaluation of on and optimize the profitability. are SKUs putting proactive deliver emphasis portfolio increased

completing bakery growth Chicago to Bakery We opportunities in other are previously continued our discussed. savings I the of optimization which locations drive an also warehouse profitable of initiatives the including evaluation

merchandising together. discussions in great had growing quarter where only impacted with share consistently loss customers share third has particular support behind since well and partners. We during examples, have in market the the The and been corporate drove sight Hostess is customer. QX not the collaborative across re-launch this my on line category. of display Hostess but and largest Consistently good through innovation, in focused partner of to philosophy retailer and change retail also increase fourth performs been them profitably for many Hostess our growing at one Hostess grow and This our a to display and hostess

have with which merchandising secured expect third the we help our during in of large customers support pleased back-to-school to quarter. all we should improvement are achieve We sequential support the period the important from

share and specifically XX very around Additionally, Petites of encouraging. extendable. Bakery the Breakfast these build to Both The platforms to the our basis and our are to platform portfolio innovations innovations and quarter. incremental distribution Bakery are Petite's highly points market for added continues

growing ECB sales to were [ph] Goods the showed the Hostess data Baked Sweet consumers XX. gain Bakery an to continue distribution four-week Recent ended XX% incremental of and in new franchise XX% Petite were period consumer Petite We June Bakery QX the XX% over nearly to category. of to that

category future. Baked Sweet we Our innovation new driving in Petite plan of this platform extend items and is to Bakery with users innovation working approach the with to the Goods new

continue base and within bar. of all products new and peanut subcategories Nutty butter Totally also develop other the wafer innovative including We snacking introduction to Up Scale

of XX% us share A XX% For drive share subcategory. breakfast, of our to branded gap share through Goods to sharable XX%. basis improvement Sweet while is the firepower addition meaningful point Hostess compared the gives category Baked products represents of currently snacking Chicago this subcategory. XXX base the when Breakfast

launch Chicago. over expect was we largest Multipack Bakery this pleased with products from category at year retailers the are which Cinnamon going about strong Breakfast the Danish Donettes, We very are the this an support prior to expanding Jumbo including including our well. very our new To on transformation and Danishes offering Rolls to Well the with margin associated fall. Chicago, excited commitments give compared compression we to is update half quarter and

have work the terrific of subcategory. We sight it we in facility to The has been customers good profit. and us platform exit expand to are expect rate into with confident continue touring growth and to year profit further Breakfast run large as gives another after the we for from feedback growth this to line and

leveraging our short are transformation strong within few infrastructure, team the has Chicago industry We and achieved pleased what a knowledge months. to extremely support our with are Hostess

returns from we in as expecting operational the Bakery and XXXX in While cost significant, both EBITDA Chicago. mentioned accretive I we be the transform short-term and was still significant to highly are future revenue Chicago will

priorities is our of enter the we urgency. of sense As rigor on half and team the XXXX second a with focused

higher taking returning while are growth. significant to inflationary costs to We steps recover

to Hostess Brand, continue As the XXXX strength that confident provides for power the growth ahead us the we fuel to sustainable our value are efforts and we look The shareholders. will provides unique portfolio of fundamental our and flexibility add and pricing right it balance will to results. our sheet deliver assets create to strong our

to results. over it turn details quarter I'll the Now to go of through the Tom

Thomas Peterson

X.X% release. other second XXXX or Net now our second Thanks, from financial $XXX.X review increase $XXX.X from million million was of a Andy. the will quarter data million. for quarter today’s revenue performance I XX.X of revenue the and quarter

Bakery contributed $XX.X retail the offsetting Our inventory large revenue top driven were million which along with Andy results a lower reduced space Chicago as already product revenue retail revenue reduction. this discussed from with line from incremental from resulting partner display by acquisitions the

the at of of impact profit last and slightly $XX.X a partner, is the margin of the year. Excluding our of million Chicago generated gross for acquisition this second XX%. revenue up revenue when gross We lower to and XXXX quarter net compared

The margin the has the Hostess transformation standalone which rebuild This $XX But resulting of integrate inflation were a which quarter for and reminder, inventory. by included significant losing fully combined reduced we structure impacted comparable been the already through have million million the cost less operations a amounts of as already we Hostess, into business acquired and As basis. was negatively we Chicago. substantially. Chicago of margins $XX in this business money on

XX% net the in EBITDA This CPG margin were inflationary we gross basis SG&A with of end other others or $XX.X was to in the corporate escalating or of resulting We XX.X% decrease prior-year. positive margin. of or for costs We transportation Consistent as and in net due compares as were of revenue large attributable including primarily of expenses EBITDA year or incremental expect XXX million inflationary a pronounced the than of to to improvement the to and second adjusted in including adjusted supply retail reduction increased of EBITDA EBITDA other $XX.X point a $XX.X and of more revenue The expect chain pressures, for higher transformation expense. in anticipated, volume net prior-year. quarter display well at Bakery, XX.X% million XX.X% dollars transportation with costs million net the XXXX. rate revenue. a amortizing incentive pressures run industry, cost revenue, lower decrease in partner. generated adjusted a the $XX.X primarily branded the SG&A The Chicago of compared was to

dollars from our Chicago new from from overall expect out the products reduce platform margins we that's EBITDA forward. this Breakfast Hostess' will although forward, margins Going Bakery of going accretive EBITDA Chicago

Our effective change Adjusted tax the quarter. Of compared $X this income of enacted interest lower tax the million share was the to decrease other to rate the resulting from impacted XX% of of compared the a tax associated effective EPS our $X.XX the factors. acquisition with including was rate by period. This EPS for in also was was non-controlling from $X.XX XX.X% which Chicago. along the reform X.X% impacted prior-year. per excludes non-controlling interest year impact The tax federal statutory rate to the net items discrete in by the allocated for proportion state prior company's the with benefit

$XX.X the the generation cash for compared of flows Our half operating with for June to cash year. continues be XX $XX.X to six of strong last first months ended flow

$XX.X property and installed investments had of million in Our net support and We mainly our half June Bakery. first $XXX.X in equipment debt new CapEx the $XXX.X cash Chicago of million was and as the million, for operations to line Columbus, year XX. cash of of equivalents cake the the Georgia of for and

ratio leverage X.XXx. Our was

display revenue $XXmillion of we range a results guidance and our our contributions organic From EBITDA perspective headwinds adjusted million. continue category grow Baked to Sweet our half the the from Goods above to year-to-date we XXXX in be million. the terms and updating the the average pressure bakery XXXX inflationary now for $XXX are reduced In expect million from to $XX of reflects to This of for outlook to $XXX expected year revised expect the be guidance revenue second profitability and expect the Chicago volume. to and in

$X.XX share. We to expect $X.XX per EPS adjusted of

our partnership Our expected XX% the effect debt tax tax purposes. the XXXX and year between is approximately to to giving leverage with interest income XX% a ratio anticipate ending X.XXx. for non-controlling rate for X.Xx We

Now some over I'll Andy turn it for final to remarks.

Andrew Callahan

impacted that impacted been by we merchandising short-term our display have and summary, escalating In Tom. costs results. Thanks, changes

However, as the that seen and of we results, rate purchase will continue. in a Hostess the category point consumers continue believe to of ahead sales at

reduce finalize With and increase and the the our see expand As turn we available to Chicago costs, innovation, to strategy transformation, that, your ahead. profitable questions merchandising, we it are Tom over execute for operator. growth I'll significant and I

Operator

Ken Thank you. is question [Operator Goldman, Instructions] JPMorgan. Please from ahead The sir. first go

Ken Goldman

in that. returning of like back much. issue year. and somewhat the the discussions very those of if anticipate you customer, some is, with get I trying more your collaborative, I little that didn't tone say have from the color official half or of terms thank I'm the half this Hi, But the have bit sounds you guess you anything to of Andy used recovery on like anything I you I question can year, in large a I the agreements your promotions also was been necessarily you just constructive on hear heard in back

to in seeing of So at a point on as guidance, of head of history the recovery or with that a at customer? marketplace I'm is in is on sense have the your or hope your based part trying a you based just get that what this that you're more your realistic least

Andrew Callahan

things, core Thanks QX the as programs you as question. half I appreciate back one on specifically we sequential QX. our we with improvement our against we Ken, forward. customer. business But very the we can sure not Two merchandising that. appreciate QX commenting will from I'm highly and to Especially profitable am of to any don't, look we move our in see are the that is confident I to

drive we in our So on do customers that March most included all well for is is Hostess across better. plans, we in forward is is, for our not highly of for customers. when Hostess this and we certainly general go I the supported being is consistently we could share are and not growth and Hostess - when are we also share mentioned and we What be our this is driving in retailers profitable speculative have it growth important merchandising that know is our

strong across continue customers. the not find build so So to speculative, to but we to it's across look of we see our ways very our board collaboration all opportunities business for

what our right best our upside on if So there any not believe, I but we would I but anticipate that now. it is merchandising, would think is is best call of

Ken Goldman

thing customers about can shelves just push that Well space little are not to a mentioned and I your guys You I promotion. one one was larger you Andy some understand that's talking talking just one clearly helpful. has right? sure bit If customer, worsening make you because customer any are but the you're of stating first about removed

am a the comes talk hearing I'm quite So can't about just to I'm I if call you not why and publicly are there's x I'm would that on and have because on of missing that to get date. that there you but trying agreements back not customer this sure kind about talking back it terms shelf vagaries some confidence confidence where that from my by sense you know something work. I'm for we really of hearing get stuff just getting specific in anything

Andrew Callahan

contracts or have improvements. do the going had a about those What sequential it customers, have agreements line I the don't of products said sight. we to – basic, the talk stores, of display, it is specific we all specific we When expands improvement, not have Well of going on I number do we what line outlay sight expands are to forward. of we're don't we

of have it we on look work and to customer to the going through improvement with year improve continue business great we'll I with their I see as degree so that. are a And majority grow the to and over confidence profitably upon

Ken Goldman

to I'm it getting of is followup in to in Hostess the of back quick profitability shelf for better a just terms as on you cost where customer? so were that to to terms terms trying And the back for previously? costing in speak the anything of terms of think get

Andrew Callahan

the customer. growth it's building with joint No, about plans

Ken Goldman

much. you Okay, so thank

Andrew Callahan

Ken. Thanks

Thomas Peterson

Thanks Ken.

Operator

is Aslam, Inc. The question ahead. Farha next Please go from Stephens

Farha Aslam

Hi, good evening.

Andrew Callahan

Farha. Hi

Thomas Peterson

Hi Farha.

Farha Aslam

cap have the includes modeling, on is quick the that I consideration you've per that se question rate a first million right? given $X

Thomas Peterson

I mean, it I don’t, doesn’t.

our it I rate. is forward XX XX include think No, to that. go the doesn’t

Farha Aslam

second operating excludes benefit you’re the Okay, tax number as quarter? that one-time

Thomas Peterson

Yes.

Farha Aslam

and that’s Okay and your helpful. then just wheat on cost commodities outlook.

You inflation that how guys on the impact we highlighted off wheat at you? recent you think transportation? should run and that How think about will

Thomas Peterson

we've also packaging noted Yes, transportation inflation, some in year. some inflation so inflation next and commodities had we expect

on if – short-term over out we're impacted far this long-term date, today us have but wheat haven't pretty hasn’t the the - not increases We seen that wheat, same would, we it so hedged it’s hasn’t. to

Farha Aslam

price come to transportation, moving will need packaging think wheat? market will and for price Okay to and or you at the you back for you wheat,

Thomas Peterson

broad going also look sure our balance that levers and we’re the growth the we No, to inflation business cost. and across price for recovering make multiple across the

we we our for display across or price program it have a most example include to but comprehensive will a mix, we'll sure we So activity, bring have channels. increase all have that for customers,

Farha Aslam

Okay, thank added you for the color.

Operator

have go Sir Bill Chappell, a Please, from SunTrust. question We Mr. ahead

Bill Chappell

had space terms three half? you of in lost in six ago months shelf May, I you know what's Walmart ago I mean guess five good in I today a issue, little guidance the you've guess change Andy, to going think yes outlook already confused to back the buyers known because had didn’t second so Hi, about, they you you changed out when that think I back months on the that the I that I'm changed in afternoon. the were talked four our to

Andrew Callahan

negotiating forward magnitude had the working of through. plans was Yes, than of clearly the were kind was what the merchandising greater time to we the which specifically still we plan at merchandising very our go

meaningful The associated the sight in component was that second to. of frankly, with didn't the line we have not also but supply only days of associated inventory display, reduction that

two increases and then versus escalating were coupled May. those So with the obviously cost meaningful two quickly deltas

Bill Chappell

to the way the understand what just of magnitude systems just to you have didn’t at look go it? be, kind So quickest in to at place back is would the

Andrew Callahan

you increases? their talking about Are cost

Bill Chappell

talking about I'm Walmart. No

Andrew Callahan

our it and customer sight wasn’t merchandising, the approve with get at their forecast. you have not with associated in right of We levels that they line for reductions our systems the trying best to working place, know selling into it time. the anticipated the did understanding customer, what’s the of back, No just what inventory we was

Bill Chappell

then it going million the turned get can it right and a call do some in going breakeven it, it? was of to confidence taking the get try Got year you're back original, by then is guidance the the closer may the that way look it if Dean that sounds to to then profit to monthly goal said fourth and basis backwards the year? last end Cloverhill, quarter quarter that a next on the on it to like full be how to and to goal at get And we steps $XX

Thomas Peterson

about There's resources, the some to other cost relative to Yes, and align XXXX. the cost of we to confident place time was systems it we the get which put get significant I fundamental When get did amount picture. things, in issues. fixing SAP, business that been a just the took feel a on our full some one first build very acquired - we things the business of in cost,

piece about The is a Chicago we have is relative important sight. tremendous good line The it. of to progress

and our that economics above EBIT be acquisition both better We the and with and than revenue will confidence XXXX year believe will economics we revenue EBITDA. acquisition in exit our our

based versus the a on we we the during more pulling saw So lot together what system acquisition. just know now

Bill Chappell

over, Okay, I it turn thanks.

Operator

question Please, ahead CL is Sir. The from King. next Michael go Gallo,

Michael Gallo

Hi, good afternoon.

for a like Just envelope year in of just Tom, embedded the sort million-ish the parse of of again, what or expectations the quarter. Cloverhill Andy of back $X kind the I look questions, couple lost you about want back half your out are in for to now

harder is by rate back mix $XX it know, the break-even it I losses or to able think kind basis million structural cadence something But of is really things to QX there short year just kind there in to of than makes to two, of we on said you lower overall are of overall? a QX. being end kind of there it's of you've of the about quarter QX, and that just about a kind think unchanged get to the view business the is of get run $XXmillion, original you how be getting saying, albeit You your that or think of might should going

Thomas Peterson

Thanks Yes, Mike.

the we is know, we'll quarter the a of get for and down fourth can to, build so equipment one, we positive. significant in the the breakfast and way production and is out a You and a said productivity in one us we then amount this in thing get deploying that improvements. automation the in we we'll now during requires significant the that well Chicago Breakfast day We'll out those in and we've in capital conference putting to the going But downtime, during and invest going build the flattened We'll amount will get get to as we're next bakery we're are gives be Hostess quarter to then and QX portfolio. back the in, year of start very EBITDA exit we'll we'll quarter of right XXXX business certain so QX that some that we'll along right, blended and rate which run just bakery. assets the turn amount

Michael Gallo

point-of-sales from to the of well. innovations of basis – And some then to obviously continues continue your do do well, just

I quite time time. you have first talk this about heard some in pricing think I is the

that’s you higher Thanks. pricing confidence get overall you'll gives you’ll able innovation category you you kind you category can share? caring that get it to what confident think push from have trends Do of to stagnated? without more losing in that the a macro are perhaps total be points Given price pricing just or

Andrew Callahan

question. the for Thanks

the have and a while So priced why going is analysis right. right, you which do are in it we we do are not

is a very part will couple you growth So one is to important mentioned program be. continue and a things, it our of innovation of

ability Our recover is additional to end the that. escalating in to to an high cost that

but amount to to pricing to be levers in that. So of going price, the able the the a will everyday look the discounts, look on absolute all it but going we've while be going at there at program we're not to and discounts all display, the put that do cost a balancing way leverage optimized component, as a We're to the that to of do together is those we're only recovery of the growth.

XXXX, that doing we to because we're So will the detailed start to right going now we it in get XXXX. impact analysis majority the of and expect be selling we're that begin to but

looking – it to be it able right. elements make going are we to we all at sure we're across do So to

Michael Gallo

you. Thank

Andrew Callahan

Thanks Mike.

Operator

We have Please a question from Mr. Steven go Strycula, Sir. UBS. ahead

Steven Strycula

this have percentage Hi, your already that a across out notifications of to is on a plan you coming just do what and in portfolio? guys sent or clarification, good so is question, be weeks the and months the first Two-part pricing, would price one the more of retailers afternoon. to

Andrew Callahan

not have our yet. We retailers out anything sent to

before of as and being across in growth. recovery We broad QX it QX expect we'll verses balance the the said in I beginning we do the the program And the timeframe. to that anticipate we'll end based

Steven Strycula

your could to of unpack range was was the or followup was to I midpoint to million numbers like EBITDA guided very just how rather a Bakery, million a that and guided company give feel Chicago variables see of that for how that across would then, a of investors that us bit midpoint, and to much round would $XX you breaks helpful? from kind customer, - you've be about down can little how just attributable Okay bit you down a was much question new Tom adjustments, that the of of lot down much little how a inventory large Tom, if unpack inflation, for $XX

Thomas Peterson

which in that the than the flattish. beginning going but guided the we display last not was can quarter think guided more or organic call the to. we're detail, we I out break you obviously more revenue numbers of At X% see Yes, decline and our quarter’s to was

So to XXX that. been that's you can we spread that’s And kind carrying that against kind X.X% of pressures the to are inflationary range of basis margin and have points the X% in they up X.X% forward. then seeing estimate and and

Steven Strycula

inflation that was of of led what point piece think to kind inflationary incremental as been the what know what pieces that the start we to this you saw the the on so I started you. delta Okay, in relative I the year, since, has the hike? February, from X.X% I were mean freight to X.X% Thank

Thomas Peterson

continuing thanks There more continuing some customers. to is we've in seen Steve. that. allowances to We're see We've material we're and wage that. to drive There involved corrugate inflation is to our involved in drive inflation that Yes, that. in growth and some and freight we're starting to of more with started benefit and growth. little bit And customer see along invest raw

Operator

ahead Brett [Operator Sir from Hundley, Vertical question go instructions] The a Mr. have We Group. Please

Brett Hundley

Hey, thanks. Good afternoon guys.

I'm to Just make clear. sure

margins cost increases, point is when impact to that in basis the follow to neighborhood that raw we freight, the last gross material year, XXX a around right for I am about on there? talk So question, full

Thomas Peterson

X.X% quarter. Yes, it escalated to this

Brett Hundley

Okay, and be point full-year so it as up far XXX basis as the impact that towards would number?

Thomas Peterson

we that we as to have a to estimated where transportation than more expensive. - little that's get at more continue and continues Yes,

Brett Hundley

get early I wanting recruit core on you your but to company for am Okay, order, yes, Sweet the might can in also strategies look ask I growth. you to Baked trying to an potentially appreciate time pricing about sales wanted sense what in your take Goods to I guys XXXX.

by the that hope starts better see we to results QX the in be would that approximate hope? be would that point-of-sale your trends, the So that number

Thomas Peterson

business start exception size just won't really of same at core the core sequential it sequential that disproportionate Yes, business as trial saw a that that see you the new at get of be we is but start getting growth will and behind matched you impact a Petite, one our magnitude, you better year see the seeing the we display if start will Bakery we ago. one There impact seeing break but a that this mention given will to what vehicle you was that product improvement QX out that, continue versus will to and had improvement retailers. as you large will

Brett Hundley

then guys wanted of you from one Yes, a ask hear just the you and landscape common When question potential we target then mix existing be. branded have things you deals always and just broader across But the that you talking yield M&A I how for guys I'll opportunities. of floor. evaluate important to okay is I actually our the about might the branded

So there there and acquiring attributes, maybe as in but it may that a a words, it to wasn’t made other potential out return Is case if branded potential such for ultimately a had be focused offered may I allow out it was really long compelling asset an channels, opportunities. offered there business, branded other looking guess necessarily target so as be it for distribution well?

Thomas Peterson

and it's M&A leverage are opportunity things flow. and team that headline be value the then I it the very add of and that when certainly strong close core think and would that and I really the cash creation yes. will would There that value Yes, be thinks to think our about about there

accretive have but it you and we're of expand mentioned in we be – we If a into. able was Hostess to may which urban platform the both us gave that gives some It value revenue branded, into are going Breakfast that it wasn’t purely access gives we in some other us to channels till the half. take bring didn’t Chicago going opportunist, for Cloverhill to back highly Big bend before to EBITDA Chicago it’s and as brands and that argue and to and with also Texas, Brand us example,

So by can connecting there do. of things a broad that capabilities is range we

focus shorter out our believe that forward. an the part So going is to important that’s is there answer and going and yes, opportunities be of there

Brett Hundley

Thanks for your comment.

Operator

conference reached this to I'd for end time question-and-answer Ladies the and at Gentlemen, closing the to like session. turn the we've remarks. back of management

Andrew Callahan

through the hard extremely short-term extremely were some is pieces What’s impacted just Brands recover creation fundamental close, impacts. obviously and most to growth those. working of value So as strong. important short-term to And that Hostess by remains the and We're the great our costs, through initiatives, with year urgency behind behind behind growth experienced we've year-to-date. move our great even XXXX will with back move point-of-sales accelerating the and Chicago, on we half that the maintaining of recovering we tailwinds

your it thanks up. close for So time. I now appreciate your and will questions. I thoughts

Thomas Peterson

you. Thank

Operator

This conference. today’s concludes

You time at participation. your for may thank you disconnect your and lines this

Hostess Brands (TWNK) 12 Aug 182018 Q2 Earnings call transcript