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SINGAPORE, Nov. 18, 2024 /PRNewswire/ — Trip.com Group Limited TCOM HKEX: 9961)) (“Trip.com Group” or the “Company”), a leading one-stop travel service provider of accommodation reservation, transportation ticketing, packaged tours, and corporate travel management, today announced its unaudited financial results for the third quarter of 2024.

Key Highlights for the Third Quarter of 2024

• International businesses experienced robust growth across all segments in the third quarter of 2024

–        Outbound hotel and air reservations rebounded to approximately 120% of the pre-COVID level for the same period in 2019. 
–        Air ticket and hotel reservations on the Company’s international OTA brand increased by over 60% year-over-year.

• The Company delivered solid results in the third quarter of 2024

–        Net revenue for the third quarter grew by 16% year-over-year. 
–        Net income for the third quarter was RMB6.8 billion (US$970 million), compared to RMB4.6 billion for the same period in 2023. 
–        Adjusted EBITDA for the third quarter was RMB5.7 billion (US$808 million), improving from RMB4.6 billion for the same period last year.

“During the third quarter of 2024, both domestic and international travel exhibited robust growth,” said James Liang, Executive Chairman. “With increasing consumer confidence and heightened travel sentiment, we are optimistic about the continued growth of the travel industry. Additionally, we are confident that the AI-driven technological revolution will play a pivotal role in shaping the future of the global travel industry.”

“We are delighted to witness the resilience of the travel market. Through our hard work, we are proud to create new job opportunities for young people and bring new business volume to our partners in the travel industry,” said Jane Sun, Chief Executive Officer. “Travel is a catalyst for economic growth, a bridge to understanding, and a pathway to a peaceful world. We will continue to offer excellent service, drive business for our partners, and introduce China to the world through travel.” 

Third Quarter of 2024 Financial Results and Business Updates

For the third quarter of 2024, Trip.com Group reported net revenue of RMB15.9 billion (US$2.3 billion), representing a 16% increase from the same period in 2023, primarily driven by stronger travel demand. Net revenue for the third quarter of 2024 increased by 24% from the previous quarter, primarily due to seasonality.

Accommodation reservation revenue for the third quarter of 2024 was RMB6.8 billion (US$969 million), representing a 22% increase from the same period in 2023, primarily driven by an increase in accommodation reservations. Accommodation reservation revenue for the third quarter of 2024 increased by 32% from the previous quarter, primarily due to seasonality.

Transportation ticketing revenue for the third quarter of 2024 was RMB5.7 billion (US$805 million), representing a 5% increase from the same period in 2023 primarily driven by an increase in transportation reservations. Transportation ticketing revenue for the third quarter of 2024 increased by 16% from the previous quarter, primarily due to seasonality.

Packaged-tour revenue for the third quarter of 2024 was RMB1.6 billion (US$222 million), representing a 17% increase from the same period in 2023, primarily driven by an increase in packaged-tour reservations. Packaged-tour revenue for the third quarter of 2024 increased by 52% from the previous quarter, primarily due to seasonality.

Corporate travel revenue for the third quarter of 2024 was RMB656 million (US$93 million), representing an 11% increase from the same period in 2023, primarily driven by an increase in corporate travel reservations. Corporate travel revenue for the third quarter of 2024 increased by 4% from the previous quarter.

Cost of revenue for the third quarter of 2024 increased by 13% to RMB2.8 billion (US$399 million) from the same period in 2023 and increased by 21% from the previous quarter, which was generally in line with the increase in net revenue from the respective periods. Cost of revenue as a percentage of net revenue was 18% for the third quarter of 2024.

Product development expenses for the third quarter of 2024 increased by 2% to RMB3.6 billion (US$519 million) from the same period in 2023 and increased by 22% from the previous quarter, primarily due to an increase in product development personnel related expenses. Product development expenses as a percentage of net revenue was 23% for the third quarter of 2024.

Sales and marketing expenses for the third quarter of 2024 increased by 23% to RMB3.4 billion (US$482 million) from the same period in 2023 and increased by 19% from the previous quarter, primarily due to the increase in expenses relating to sales and marketing promotion activities. Sales and marketing expenses as a percentage of net revenue was 21% for the third quarter of 2024.

General and administrative expenses for the third quarter of 2024 increased by 2% to RMB1.0 billion (US$149 million) from the same period in 2023 and decreased by 3% from the previous quarter. General and administrative expenses as a percentage of net revenue was 7% for the third quarter of 2024.

Income tax expense for the third quarter of 2024 was RMB721 million (US$103 million), compared to RMB448 million for the same period in 2023 and RMB693 million for the previous quarter. The change in Trip.com Group’s effective tax rate was primarily due to the combined impacts of changes in respective profitability of its subsidiaries with different tax rates, changes in deferred tax liabilities relating to withholding tax, certain non-taxable income or loss resulting from the fair value changes in equity securities investments and exchangeable senior notes recorded in other income/(expense), and changes in valuation allowance provided for deferred tax assets.

Net income for the third quarter of 2024 was RMB6.8 billion (US$970 million), compared to RMB4.6 billion for the same period in 2023 and RMB3.9 billion for the previous quarter. Adjusted EBITDA for the third quarter of 2024 was RMB5.7 billion (US$808 million), compared to RMB4.6 billion for the same period in 2023 and RMB4.4 billion for the previous quarter.

Net income attributable to Trip.com Group’s shareholders for the third quarter of 2024 was RMB6.8 billion (US$962 million), compared to RMB4.6 billion for the same period in 2023 and RMB3.8 billion for the previous quarter. Excluding share-based compensation charges, fair value changes of equity securities investments and exchangeable senior notes recorded in other income/(expense), and their tax effects, non-GAAP net income attributable to Trip.com Group’s shareholders for the third quarter of 2024 was RMB6.0 billion (US$847 million), compared to RMB4.9 billion for the same period in 2023 and RMB5.0 billion for the previous quarter.

Diluted earnings per ordinary share and per ADS was RMB9.93 (US$1.42) for the third quarter of 2024. Excluding share-based compensation charges, fair value changes of equity securities investments and exchangeable senior notes recorded in other income/(expense), and their tax effects, non-GAAP diluted earnings per ordinary share and per ADS was RMB8.75 (US$1.25) for the third quarter of 2024. Each ADS currently represents one ordinary share of the Company.

As of September 30, 2024, the balance of cash and cash equivalents, restricted cash, short-term investment, and held to maturity time deposit and financial products was RMB86.9 billion (US$12.4 billion).

Conference Call

Trip.com Group’s management team will host a conference call at 7:00 PM on November 18, 2024, U.S. Eastern Time (or 8:00 AM on November 19, 2024, Hong Kong Time) following the announcement.

The conference call will be available live on Webcast and for replay at: https://investors.trip.com. The call will be archived for twelve months on our website.

All participants must pre-register to join this conference call using the Participant Registration link below:

https://register.vevent.com/register/BIacab26e628b84d85a1589994ea124dc9

Upon registration, each participant will receive details for this conference call, including dial-in numbers and a unique access PIN. To join the conference, please dial the number provided, enter your PIN, and you will join the conference instantly.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “may,” “will,” “expect,” “anticipate,” “future,” “intend,” “plan,” “believe,” “estimate,” “is/are likely to,” “confident,” or other similar statements. Among other things, quotations from management in this press release, as well as Trip.com Group’s strategic and operational plans, contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, severe or prolonged downturn in the global or Chinese economy, general declines or disruptions in the travel industry, volatility in the trading price of Trip.com Group’s ADSs or shares, Trip.com Group’s reliance on its relationships and contractual arrangements with travel suppliers and strategic alliances, failure to compete against new and existing competitors, failure to successfully manage current growth and potential future growth, risks associated with any strategic investments or acquisitions, seasonality in the travel industry in the relevant jurisdictions where Trip.com Group operates, failure to successfully develop Trip.com Group’s existing or future business lines, damage to or failure of Trip.com Group’s infrastructure and technology, loss of services of Trip.com Group’s key executives, adverse changes in economic and business conditions in the relevant jurisdictions where Trip.com Group operates, any regulatory developments in laws, regulations, rules, policies or guidelines applicable to Trip.com Group and other risks outlined in Trip.com Group’s filings with the U.S. Securities and Exchange Commission or the Stock Exchange of Hong Kong Limited. All information provided in this press release and in the attachments is as of the date of the issuance, and Trip.com Group does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

About Non-GAAP Financial Measures

To supplement Trip.com Group’s consolidated financial statements, which are prepared and presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), Trip.com Group uses non-GAAP financial information related to adjusted net income attributable to Trip.com Group Limited, adjusted EBITDA, adjusted EBITDA margin, and adjusted diluted earnings per ordinary share and per ADS, each of which is adjusted from the most comparable GAAP result to exclude the share-based compensation charges that are not tax deductible, fair value changes of equity securities investments and exchangeable senior notes recorded in other income/(expense), net of tax, and other applicable items. Trip.com Group’s management believes the non-GAAP financial measures facilitate better understanding of operating results from quarter to quarter and provide management with a better capability to plan and forecast future periods.

Non-GAAP information is not prepared in accordance with GAAP, does not have a standardized meaning under GAAP, and may be different from non-GAAP methods of accounting and reporting used by other companies. The presentation of this additional information should not be considered a substitute for GAAP results. A limitation of using non-GAAP financial measures is that non-GAAP measures exclude share-based compensation charges, fair value changes of equity securities investments and exchangeable senior notes recorded in other income/(expense), and their tax effects that have been and will continue to be significant recurring expenses in Trip.com Group’s business for the foreseeable future.

Reconciliations of Trip.com Group’s non-GAAP financial data to the most comparable GAAP data included in the consolidated statement of operations are included at the end of this press release.

About Trip.com Group Limited

Trip.com Group Limited TCOM HKEX: 9961)) is a leading global one-stop travel platform, integrating a comprehensive suite of travel products and services and differentiated travel content. It is the go-to destination for travelers in China, and increasingly for travelers around the world, to explore travel, get inspired, make informed and cost-effective travel bookings, enjoy hassle-free on-the-go support, and share travel experience. Founded in 1999 and listed on Nasdaq in 2003 and HKEX in 2021, the Company currently operates under a portfolio of brands, including Ctrip, Qunar, Trip.com, and Skyscanner, with the mission “to pursue the perfect trip for a better world.”

For further information, please contact:

Investor Relations

Trip.com Group Limited
Tel: +86 (21) 3406-4880 X 12229
Email: iremail@trip.com

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SOURCE Trip.com Group Limited

ST. LOUIS, Nov. 18, 2024 (GLOBE NEWSWIRE) — BellRing Brands, Inc. BRBR (“BellRing”), a holding company operating in the global convenient nutrition category, today reported results for the fourth fiscal quarter and fiscal year ended September 30, 2024.

Highlights:

• Fourth quarter net sales of $555.8 million, operating profit of $112.1 million, net earnings of $71.7 million and Adjusted EBITDA* of $116.5 million
• Fiscal year net sales of $1,996.2 million, operating profit of $387.7 million, net earnings of $246.5 million and Adjusted EBITDA* of $440.2 million
• Generated $199.6 million in cash from operations in fiscal year 2024
• Fiscal year 2025 net sales and Adjusted EBITDA* expected to range between $2.24-$2.32 billion and $460-$490 million, respectively

*Adjusted EBITDA is a non-GAAP measure. For additional information regarding non-GAAP measures, see the related explanations presented under “Use of Non-GAAP Measures” later in this release. BellRing provides Adjusted EBITDA guidance only on a non-GAAP basis and does not provide a reconciliation of its forward-looking Adjusted EBITDA non-GAAP guidance measure to the most directly comparable GAAP measure due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including the adjustments described under “Outlook” later in this release.

“We finished the year strong, with our results coming in at the high end of our expectations. Premier Protein consumption accelerated, lifted by better in stocks and meaningful distribution gains. Additionally, Premier Protein achieved all time highs this quarter for household penetration and total distribution points, and saw strong market share gains in both shakes and powders,” said Darcy H. Davenport, President and Chief Executive Officer of BellRing. “Our momentum remains high as we enter 2025. The convenient nutrition category continues to provide strong tailwinds, with ready-to-drink shakes and powders in the early stages of growth. We have leading mainstream brands that deeply resonate with consumers, giving us confidence in the long-term prospects for our company.”

Dollar consumption of Premier Protein ready-to-drink (“RTD”) shakes and Premier Protein powder products increased 14.4% and 42.7%, respectively, and Dymatize powder products decreased 10.1% in the 13-week period ended September 29, 2024, as compared to the same period in 2023 (inclusive of Circana United States (“U.S.”) Multi Outlet including Convenience and management estimates of untracked channels). For additional information regarding consumption metrics, see the supplemental slide presentation on BellRing’s website, which can be accessed by visiting the Investor Relations section.

Fourth Quarter Results

Net sales were $555.8 million, an increase of 17.6%, or $83.2 million, compared to the prior year period, driven by 18.9% increase in volume and 1.3% decrease in price/mix.

Premier Protein net sales increased 20.3%, driven by 19.5% volume growth and 0.8% increase in price/mix. Premier Protein RTD shake net sales increased 20.7%, driven by 19.6% increase in volume and 1.1% increase in price/mix. Volume gains were driven by organic growth and distribution gains.

Dymatize net sales increased 3.9%, driven by 6.7% increase in volume which was partially offset by a 2.8% decrease in price/mix. Volume gains were driven by strength in the international channel, partially offset by declines in domestic channels. The decrease in price/mix was driven by promotional activity and unfavorable mix.

Gross profit was $205.1 million, or 36.9% of net sales, an increase of 32.1%, or $49.8 million, compared to $155.3 million, or 32.9% of net sales, in the prior year period. Gross profit included mark-to-market adjustments on commodity hedges, which were favorable by $5.7 million and $0.8 million in the fourth quarter of 2024 and 2023, respectively, and were treated as adjustments for non-GAAP measures. The higher gross profit margin was driven by net input cost deflation and $3.5 million of production attainment fees received in the fourth quarter of 2024 from shake contract manufacturers.

Selling, general and administrative (“SG&A”) expenses were $88.7 million, or 16.0% of net sales, an increase of $23.5 million compared to $65.2 million, or 13.8% of net sales, in the prior year period. SG&A expenses included a $5.0 million provision for legal matters in the fourth quarter of 2023, which was treated as an adjustment for non-GAAP measures. SG&A expenses in the fourth quarter of 2024 included higher marketing and consumer advertising expenses of $12.8 million, as well as increased employee expenses and distribution and warehousing expenses on higher volumes.

Operating profit was $112.1 million, an increase of 43.5%, or $34.0 million, compared to $78.1 million in the prior year period. Operating profit in the fourth quarter of 2023 was negatively impacted by $7.1 million of accelerated amortization incurred in connection with the discontinuance of the North American PowerBar business, which was treated as an adjustment for non-GAAP measures.

Interest expense, net was $14.5 million and $16.1 million in the fourth quarter of 2024 and 2023, respectively, with the decline primarily driven by lower borrowings outstanding under BellRing’s revolving credit facility. Income tax expense was $25.9 million in the fourth quarter of 2024, an effective income tax rate of 26.5%, compared to $15.9 million in the fourth quarter of 2023, an effective income tax rate of 25.6%.

Net earnings were $71.7 million, an increase of 55.5%, or $25.6 million, compared to $46.1 million in the prior year period. Net earnings per diluted common share were $0.55, an increase of 57.1%, compared to $0.35 in the prior year period. Adjusted net earnings* were $67.1 million, an increase of 22.7%, compared to $54.7 million in the prior year period. Adjusted net earnings per common share* were $0.51, an increase of 24.4%, compared to $0.41 in the prior year period.

Adjusted EBITDA* was $116.5 million, an increase of 18.3%, or $18.0 million, compared to $98.5 million in the prior year period.

*Adjusted net earnings, Adjusted diluted earnings per common share and Adjusted EBITDA are non-GAAP measures. For additional information regarding non-GAAP measures, see the related explanations presented under “Use of Non-GAAP Measures” later in this release.

Fiscal Year 2024 Results

Net sales were $1,996.2 million, an increase of 19.8%, or $329.4 million, compared to the prior year, driven by 24.1% increase in volume and 4.3% decrease in price/mix. Premier Protein net sales increased 22.9%, driven by 25.1% increase in volume and 2.2% decrease in price/mix. Dymatize net sales increased 5.6%, driven by 9.6% increase in volume and 4.0% decrease in price/mix.

Gross profit was $707.3 million, or 35.4% of net sales, an increase of 33.4%, or $177.1 million, compared to $530.2 million, or 31.8% of net sales, in the prior year. The higher gross profit margin was driven by net input cost deflation, which was partially offset by incremental promotional activity.

SG&A expenses were $284.6 million, or 14.3% of net sales, an increase of $68.3 million compared to $216.3 million, or 13.0% of net sales, in the prior year. SG&A expenses in the twelve months ended September 30, 2024 included higher employee expenses and distribution and warehousing expenses on higher volumes, as well as increased marketing and consumer advertising expenses of $20.4 million.

Operating profit was $387.7 million, an increase of 34.9%, or $100.4 million, compared to $287.3 million in the prior year. Operating profit was negatively impacted by $17.4 million and $7.1 million of accelerated amortization in the twelve months ended September 30, 2024 and 2023, respectively, which was incurred in connection with the discontinuance of the North American PowerBar business and treated as an adjustment for non-GAAP measures.

Interest expense, net was $58.3 million and $66.9 million in the twelve months ended September 30, 2024 and 2023, respectively, with the decline primarily driven by lower borrowings outstanding under BellRing’s revolving credit facility. Income tax expense was $82.9 million in the twelve months ended September 30, 2024, an effective income tax rate of 25.2%, compared to $54.9 million in the twelve months ended September 30, 2023, an effective income tax rate of 24.9%.

Net earnings were $246.5 million, an increase of 48.9%, or $81.0 million, compared to $165.5 million in the prior year. Net earnings per diluted common share were $1.86, an increase of 51.2%, compared to $1.23 in the prior year. Adjusted net earnings* were $255.5 million, an increase of 44.2%, compared to $177.2 million in the prior year. Adjusted diluted earnings per common share* were $1.93, an increase of 46.2%, compared to $1.32 in the prior year.

Adjusted EBITDA* was $440.2 million, an increase of 30.1%, or $101.9 million, compared to $338.3 million in the prior year.

*Adjusted net earnings, Adjusted diluted earnings per common share and Adjusted EBITDA are non-GAAP measures. For additional information regarding non-GAAP measures, see the related explanations presented under “Use of Non-GAAP Measures” later in this release.

Share Repurchases

During the fourth quarter of 2024, BellRing repurchased 0.7 million shares for $40.5 million at an average price of $55.97 per share. During the twelve months ended September 30, 2024, BellRing repurchased 2.6 million shares for $146.6 million at an average price of $56.12 per share. As of September 30, 2024, BellRing had $175.1 million remaining under its share repurchase authorization.

Outlook

For fiscal year 2025, BellRing management expects net sales to range between $2.24-$2.32 billion and Adjusted EBITDA to range between $460-$490 million (resulting in net sales and Adjusted EBITDA growth of 12%-16% and 5%-11%, respectively, over fiscal year 2024). BellRing management expects fiscal year 2025 capital expenditures of approximately $7 million.

BellRing provides Adjusted EBITDA guidance only on a non-GAAP basis and does not provide a reconciliation of its forward-looking Adjusted EBITDA non-GAAP guidance measure to the most directly comparable GAAP measure due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including adjustments that could be made for mark-to-market adjustments on commodity hedges and other charges reflected in BellRing’s reconciliations of historical numbers, the amounts of which, based on historical experience, could be significant. For additional information regarding BellRing’s non-GAAP measures, see the related explanations presented under “Use of Non-GAAP Measures.”

Use of Non-GAAP Measures

BellRing uses certain non-GAAP measures in this release to supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). These non-GAAP measures include Adjusted net earnings, Adjusted diluted earnings per common share, Adjusted EBITDA and Adjusted EBITDA as a percentage of net sales. The reconciliation of each of these non-GAAP measures to the most directly comparable GAAP measure is provided later in this release under “Explanation and Reconciliation of Non-GAAP Measures.”

Management uses certain of these non-GAAP measures, including Adjusted EBITDA and Adjusted EBITDA as a percentage of net sales, as key metrics in the evaluation of underlying company performance, in making financial, operating and planning decisions and, in part, in the determination of bonuses for its executive officers and employees. Additionally, BellRing is required to comply with certain covenants and limitations that are based on variations of EBITDA in its financing documents. Management believes the use of these non-GAAP measures provides increased transparency and assists investors in understanding the underlying operating performance of BellRing and in the analysis of ongoing operating trends. Non-GAAP measures are not prepared in accordance with GAAP, as they exclude certain items as described later in this release. These non-GAAP measures may not be comparable to similarly titled measures of other companies. For additional information regarding BellRing’s non-GAAP measures, see the related explanations provided under “Explanation and Reconciliation of Non-GAAP Measures” later in this release.

Conference Call to Discuss Earnings Results and Outlook

BellRing will host a conference call on Tuesday, November 19, 2024 at 9:00 a.m. EST to discuss financial results for the fourth quarter of fiscal year 2024 and fiscal year 2025 outlook and to respond to questions. Darcy H. Davenport, President and Chief Executive Officer, and Paul A. Rode, Chief Financial Officer, will participate in the call.

Interested parties may join the conference call by registering in advance at the following link: BellRing Q4 2024 Earnings Conference Call. Upon registration, participants will receive a dial-in number and a unique passcode to access the conference call. Interested parties are invited to listen to the webcast of the conference call, which can be accessed by visiting the Investor Relations section of BellRing’s website at www.bellring.com. A slide presentation containing supplemental material will also be available at the same location on BellRing’s website. A webcast replay also will be available for a limited period on BellRing’s website in the Investor Relations section.

Prospective Financial Information

Prospective financial information is necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying the prospective financial information described above will not materialize or will vary significantly from actual results. For further discussion of some of the factors that may cause actual results to vary materially from the information provided above, see “Forward-Looking Statements” below. Accordingly, the prospective financial information provided above is only an estimate of what BellRing’s management believes is realizable as of the date of this release. It also should be recognized that the reliability of any forecasted financial data diminishes the farther in the future that the data is forecasted. In light of the foregoing, the information should be viewed in context and undue reliance should not be placed upon it.

Forward-Looking Statements

Certain matters discussed in this release and on BellRing’s conference call are forward-looking statements, including BellRing’s net sales, Adjusted EBITDA and capital expenditures outlook for fiscal year 2025. These forward-looking statements are sometimes identified from the use of forward-looking words such as “believe,” “should,” “could,” “potential,” “continue,” “expect,” “project,” “estimate,” “predict,” “anticipate,” “aim,” “intend,” “plan,” “forecast,” “target,” “is likely,” “will,” “can,” “may” or “would” or the negative of these terms or similar expressions, and include all statements regarding future performance, earnings projections, events or developments. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made herein. These risks and uncertainties include, but are not limited to, the following:

• BellRing’s dependence on sales from its RTD protein shakes;
• BellRing’s ability to continue to compete in its product categories and its ability to retain its market position and favorable perceptions of its brands;
• disruptions or inefficiencies in BellRing’s supply chain, including as a result of BellRing’s reliance on third-party suppliers or manufacturers for the manufacturing of many of its products, pandemics and other outbreaks of contagious diseases, labor shortages, fires and evacuations related thereto, changes in weather conditions, natural disasters, agricultural diseases and pests and other events beyond BellRing’s control;
• BellRing’s dependence on third-party contract manufacturers for the manufacture of most of its products, including one manufacturer for nearly half of its RTD protein shakes;
• the ability of BellRing’s third-party contract manufacturers to produce an amount of BellRing’s products that enables BellRing to meet customer and consumer demand for the products;
• BellRing’s reliance on a limited number of third-party suppliers to provide certain ingredients and packaging;
• significant volatility in the cost or availability of inputs to BellRing’s business (including freight, raw materials, packaging, energy, labor and other supplies);
• BellRing’s ability to anticipate and respond to changes in consumer and customer preferences and behaviors and introduce new products;
• consolidation in BellRing’s distribution channels;
• BellRing’s ability to expand existing market penetration and enter into new markets;
• the loss of, a significant reduction of purchases by or the bankruptcy of a major customer;
• legal and regulatory factors, such as compliance with existing laws and regulations, as well as new laws and regulations and changes to existing laws and regulations and interpretations thereof, affecting BellRing’s business, including current and future laws and regulations regarding food safety, advertising, labeling, tax matters and environmental matters;
• fluctuations in BellRing’s business due to changes in its promotional activities and seasonality;
• BellRing’s ability to maintain the net selling prices of its products and manage promotional activities with respect to its products;
• BellRing’s ability to obtain additional financing (including both secured and unsecured debt) and its ability to service its outstanding debt (including covenants that restrict the operation of its business);
• the accuracy of BellRing’s market data and attributes and related information;
• changes in critical accounting estimates;
• uncertain or unfavorable economic conditions that limit customer and consumer demand for BellRing’s products or increase its costs;
• risks related to BellRing’s ongoing relationship with Post Holdings, Inc. (“Post”) following BellRing’s separation from Post and Post’s distribution of BellRing stock to Post’s shareholders (the “Spin-off”), including BellRing’s obligations under various agreements with Post;
• conflicting interests or the appearance of conflicting interests resulting from certain of BellRing’s directors also serving as officers or directors of Post;
• risks related to the previously completed Spin-off;
• the ultimate impact litigation or other regulatory matters may have on BellRing;
• risks associated with BellRing’s international business;
• BellRing’s ability to protect its intellectual property and other assets and to continue to use third-party intellectual property subject to intellectual property licenses;
• costs, business disruptions and reputational damage associated with technology failures, cybersecurity incidents and corruption of BellRing’s data privacy protections;
• impairment in the carrying value of goodwill or other intangible assets;
• BellRing’s ability to identify, complete and integrate or otherwise effectively execute acquisitions or other strategic transactions and effectively manage its growth;
• BellRing’s ability to hire and retain talented personnel, employee absenteeism, labor strikes, work stoppages or unionization efforts;
• BellRing’s ability to satisfy the requirements of Section 404 of the Sarbanes-Oxley Act of 2002;
• significant differences in BellRing’s actual operating results from any guidance BellRing may give regarding its performance; and
• other risks and uncertainties described in BellRing’s filings with the Securities and Exchange Commission.

These forward-looking statements represent BellRing’s judgment as of the date of this release. BellRing disclaims, however, any intent or obligation to update these forward-looking statements.

About BellRing Brands, Inc.

BellRing Brands, Inc. is a rapidly growing leader in the global convenient nutrition category offering ready-to-drink shake and powder protein products. Its primary brands, Premier Protein^® and Dymatize^®, appeal to a broad range of consumers and are distributed across a diverse network of channels including club, food, drug, mass, eCommerce, specialty and convenience. BellRing’s commitment to consumers is to strive to make highly effective products that deliver best-in-class nutritionals and superior taste. For more information, visit www.bellring.com. 

Contact:
Investor Relations
Jennifer Meyer
jennifer.meyer@bellringbrands.com 
(415) 814-9388

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(in millions, except for per share data)

CONSOLIDATED BALANCE SHEETS (Unaudited)
(in millions)  

SELECTED CONDENSED CONSOLIDATED CASH FLOWS INFORMATION (Unaudited)
(in millions)

EXPLANATION AND RECONCILIATION OF NON-GAAP MEASURES

BellRing uses certain non-GAAP measures in this release to supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). These non-GAAP measures include Adjusted net earnings, Adjusted diluted earnings per common share, Adjusted EBITDA and Adjusted EBITDA as a percentage of net sales. The reconciliation of each of these non-GAAP measures to the most directly comparable GAAP measure is provided in the tables following this section. Non-GAAP measures are not prepared in accordance with GAAP, as they exclude certain items as described below. These non-GAAP measures may not be comparable to similarly titled measures of other companies.

Adjusted net earnings and Adjusted diluted earnings per common share
BellRing believes Adjusted net earnings and Adjusted diluted earnings per common share are useful to investors in evaluating BellRing’s operating performance because they exclude items that affect the comparability of BellRing’s financial results and could potentially distort an understanding of the trends in business performance.

Adjusted net earnings and Adjusted diluted earnings per common share are adjusted for the following items:

Adjusted EBITDA and Adjusted EBITDA as a percentage of net sales
BellRing believes that Adjusted EBITDA is useful to investors in evaluating BellRing’s operating performance and liquidity because (i) BellRing believes it is widely used to measure a company’s operating performance without regard to items such as depreciation and amortization, which can vary depending upon accounting methods and the book value of assets, (ii) it presents a measure of corporate performance exclusive of BellRing’s capital structure and the method by which the assets were acquired and (iii) it is a financial indicator of a company’s ability to service its debt, as BellRing is required to comply with certain covenants and limitations that are based on variations of EBITDA in its financing documents. Management uses Adjusted EBITDA to provide forward-looking guidance and to forecast future results. BellRing believes that Adjusted EBITDA as a percentage of net sales is useful to investors in evaluating BellRing’s operating performance because it allows for more meaningful comparison of operating performance across periods.

Adjusted EBITDA reflects adjustments for income tax expense, interest expense, net and depreciation and amortization including accelerated amortization, and the following adjustments discussed above: mark-to-market adjustments on commodity hedges, provision for legal matters, foreign currency gain/loss on intercompany loans and separation costs. Additionally, Adjusted EBITDA reflects an adjustment for the following item:

RECONCILIATION OF NET EARNINGS TO ADJUSTED NET EARNINGS (Unaudited)
(in millions)

RECONCILIATION OF DILUTED EARNINGS PER COMMON SHARE
TO ADJUSTED DILUTED EARNINGS PER COMMON SHARE (Unaudited)

RECONCILIATION OF NET EARNINGS TO ADJUSTED EBITDA (Unaudited)
(in millions)

• Record third quarter revenues of US$16.1 million in Q3/2024, up 82% compared to US$8.8 million in Q3/2023
• Connected TV/OTT ad-supported sales as a category increased 100% to US$12.3 million, compared to US$6.1 million in Q3/2023, representing 77% of the Company’s sales mix
• Record positive Adjusted EBITDA¹ up 37x to US$2.6 million in Q3/2024 compared to Q3/2023, with net income of US$1.75 million

TORONTO, Nov. 18, 2024 /CNW/ — Sabio Holdings Inc. SBIO SABOF (the “Company” or “Sabio“), a Los Angeles-based ad-tech company specializing in helping top 100 global brands reach, engage, and validate (R.E.V) streaming TV audiences, is pleased to announce its unaudited financial results for the third quarter ended September 30, 2024. Unless otherwise indicated, all amounts are expressed in U.S. dollars.

“Our unrelenting focus on efficiency and growth culminated in both record top line growth and profits, which exceeded our preliminary third quarter results announced in October,” said Aziz Rahimtoola, CEO of Sabio. “While we benefited from the election spend across multiple races, our core business was the key, delivering three consecutive quarters of top line double digit growth with gains from our international expansion. We are extremely excited about the overall momentum of our core business in addition to new product launches that are already helping us positively shape the rest of this year and 2025.”

“We are pleased to report the highest quarterly Adjusted EBITDA¹ result in Sabio’s history, led by a diversified set of revenue drivers and significant gains in operating leverage through a reduced cost structure,” commented Sajid Premji, CFO of Sabio. “Demonstrating the sustainability and predictability of our sales structure, revenues from our branded (excluding political & advocacy) advertising business grew 28%, as Sabio’s core offerings continue to fire on all cylinders. In addition, our robust 90% re-occurring revenue performance sets the stage for the business’s continued growth in the fourth quarter and into 2025. Moreover, the modest investments made in our political campaign apparatus culminated in material third quarter revenue contributions from multiple races, providing a diversified foundation to expand upon, including several key off-cycle contests in 2025.”

Third Quarter 2024 Financial Highlights

• Sabio delivered consolidated revenues of US$16.1 million in Q3-2024, an increase of 82% from US$8.8 million in Q3-2023.
• Positive Adjusted EBITDA¹ of US$2.6 million in Q3-2024 compared to US$0.1 million in Q3-2023 an increase of 37x. Sabio generated positive Adjusted EBITDA for the nine months ended September 30^th, 2024 of US$1.0 million compared to an Adjusted EBITDA loss of US$3.9 million in 2023.
• Connected TV/OTT sales as a category increased by 100% to US$12.3 million, compared to US$6.1 million in the prior year’s quarter, continuing the trend of Sabio’s dominant sales category, representing 77% of the Company’s sales mix, up from 70% in the prior year’s quarter.
• Mobile display generated revenues of US$3.5 million in Q3-2024, up 36% from US$2.6 million in Q3-2023.
• Political campaigns contributed approximately US$5.0 million to Q3-2024 consolidated revenues and US$5.5 million to consolidated revenues for the nine months ended September 30^th, 2024. There were no consolidated revenues from political campaigns in the prior year’s comparative periods.
• Gross profit of US$10.1 million in Q3-2024, compared to US$5.2 million in Q3-2023. Gross margin was 63% compared to 59% in Q3-2023, as Sabio continued to leverage its end-to-end technology stack, including exclusive App Science™ (“App Science“) segments & analytics and the use of Sabio SSP supply.
• Improved operating leverage: Normalized for sales commissions and bonuses, operating expenses (“OPEX“) increased by single digits (8.4%).
• As of September 30^th, 2024, the Company had cash of US$2.9 million, up from US$2.2 million on September 30^th, 2023. Management believes it is well-funded, with sufficient cash on hand to meet its growth objectives.
• As of September 30^th, 2024, the Company had US$5.5 million outstanding under its US$10 million credit facility with SLR Digital Finance. In comparison, Sabio ended the third quarter of 2023 with US$6.5 million outstanding under its previous credit facility arrangement with Avidbank.
• Under the Normal Course Issuer Bid (“NCIB“) accepted by the TSX Venture Exchange on March 26^th, 2024, the Company repurchased a total of 2,500 shares on the open market during the third quarter of 2024 at prices ranging from CAD $0.425 to CAD $0.43 per share. The total cost of these purchases was CAD $1,080. The repurchased shares were cancelled subsequent to quarter-end.

 ¹ See “Use of Non-IFRS Measures” below.

Third Quarter 2024 Business Highlights

• On July 31^st, 2024, the Company closed a new credit facility pursuant to the terms of a credit agreement between its U.S. operating subsidiaries including Sabio, Inc., AppScience, Inc. and FWD Tech Inc. and SLR Digital Finance (“SLRDF“). The facility replaces the Company’s existing credit facility with Avidbank and provides for a US$10 million senior-secured revolving credit facility at an interest rate of the greater of: (i) Prime rate plus 2.15%, or (ii) 8.5%. The facility has a three (3)-year term and is secured against all of the assets of the Company.

Events Subsequent to September 30^th, 2024:

• Subsequent to quarter-end, under the NCIB accepted by the TSX Venture Exchange on March 26^th, 2024, the Company repurchased a total of 24,500 shares on the open market at prices ranging from CAD $0.475 to CAD $0.50 per share. The total cost of these purchases was CAD $12,027.50. Of these repurchased shares, 19,500 shares were subsequently cancelled on November 4^th, 2024, with the remaining 5,000 scheduled to be cancelled during the fourth quarter.
• On October 18, 2024 (“Grant Date”), the Company granted of 270,585 restricted share units (“RSU”) to certain independent directors to acquire an aggregate of 270,585 common shares in the capital of the Company, under the Company’s Omnibus Equity Incentive Plan. The RSUs vest on the first anniversary of the Grant Date. These grants represent compensation to the independent directors for their service to the Company in 2024. The Company does not currently pay cash to its independent directors.

Outlook

Sabio exited the third quarter with record nine-month consolidated revenues, driven by its core, branded advertising business (excluding political & advocacy) that grew by 28% in the third quarter alone. Higher revenues, complimented with a leaner cost infrastructure, further culminated in the highest quarterly Adjusted EBITDA in Sabio’s history. As Connected TV/OTT ad-supported streaming continues to be one of the fastest-growing channels in advertising, Sabio’s 61% revenue growth in this category during the nine months ended September 30^th, 2024, demonstrates that we continue to outpace the broader market and capture additional market share. Driven by a robust 90% re-occurring revenue rate through the first three quarters of the year, we expect our core business to drive further double-digit revenue gains and Adjusted EBITDA profitability in the fourth quarter ahead—providing a springboard to continued double-digit growth entering 2025.

The shift to a growing Connected TV/OTT streaming sales model and moving away from a mobile-display-dependent model has brought substantial cost efficiencies. These efficiencies have led to continued operating leverage gains in the nine months ending September 30^th, 2024, and a sharp return to full-year Adjusted EBITDA profitability. As our operating infrastructure continues to become more efficient, our sales model is becoming increasingly predictable.

This predictability helps de-risk our revenue model moving forward and sets the stage for continued sustainable growth in 2025, as supported by:

• Higher rates of reoccurring revenue, with 90% of consolidated revenues excluding political in the nine-months ended September 30^th, 2024 coming from repeat customers (78% in the same period of 2023), driven by our proprietary App Science cross-screen graph capabilities. 70% of existing top brands increased their spend with Sabio compared to the prior year’s nine-month period;
• The ongoing addition of top-tier clients, with 36% of the brands that spent with us during the nine months ended September 30^th, 2024 being new logos to Sabio; and,
• The most diversified vertical and revenue mix in Sabio’s history.

Management plans to allocate its improved cash flows to strengthen working capital, through both debt repayment and increased cash reserves. Combined with the closing of a new, multi-year credit line during the third quarter which brings both increased liquidity and long-term stability to our balance sheet, these measures will enhance balance sheet flexibility as we capitalize on several near-term growth drivers, including a newly launched programmatic Connected TV/OTT offering.

Selected Financials

The tables below set out selected financial information relating to Sabio and should be read in conjunction with Sabio’s condensed interim consolidated financial statements, including the notes thereto, and MD&A for the three and nine months ended September 30^th, 2024, and September 30^th, 2023, copies of which can be found under Sabio’s profile on SEDAR+ at www.sedarplus.ca.

The financial disclosures in this news release are subject to a number of cautionary statements, assumptions, contingencies, and risks as set forth in this news release. The foregoing outlook and expectations constitute forward-looking statements and financial outlook and are qualified in their entirety by the “Forward-Looking Statements” cautionary statement below. Readers are cautioned that this release is for information purposes only and may not be appropriate for other purposes.

Conference Call:

The Company will release its financial results for the third quarter in a press release prior to the investor conference call.

The webinar details are below:

Webinar Details

Date: Tuesday, November 19^th, 2024

Time: 9:00 a.m. ET (6:00 a.m. PT)

Webinar Registration:

https://bit.ly/3LWdx9d  

International numbers available: https://us02web.zoom.us/u/kbmWagiHz6

Please connect five minutes prior to the conference call to ensure time for any software download that may be required.

About Sabio

Sabio Holdings SBIOSABOF is a Los Angeles-based ad-tech company specializing in helping top 100 global brands reach, engage, and validate (R.E.V) streaming TV audiences in a highly fragmented media ecosystem. Sabio leverages its complete end-to-end ad-supported streaming tech stack, which features App Science™—a non-cookie-based SaaS analytics and insights platform with a proprietary 55 million household graph and AI capabilities—alongside its ad-serving technology and direct supply. For more information, visit: sabio.inc.

Use of Non-IFRS Measures

This press release makes reference to certain non-IFRS (International Financial Reporting Standards) measures including, but not limited to, Adjusted EBITDA. These measures do not have a standardized meaning prescribed by IFRS and therefore they may not be comparable to similarly titled measures presented by other companies and should not be considered in isolation nor as a substitute for analysis of financial information reported under IFRS. Rather, these non-IFRS measures are provided as additional information to complement IFRS measures by providing a further understanding of operations from management’s perspective.

Management uses adjusted earnings before interest, income taxes, depreciation, and amortization (“Adjusted EBITDA“) as a key financial metric to evaluate Sabio’s operating performance as a complement to results provided in accordance with IFRS. The term “Adjusted EBITDA,” as defined by management, refers to net income (loss) before adjusting earnings for finance costs, income taxes, stock-based compensation, amortization, non-recurring items, and severance costs. Refer to reconciliation to Adjusted EBITDA under the “Selected Financials” section of this release and in the Company’s MD&A for the three and nine months ended September 30^th, 2024 and September 30^th, 2023, copies of which can be found under Sabio Holdings Inc.’s profile on SEDAR Plus at www.sedarplus.ca.

Management believes that the items excluded from Adjusted EBITDA are not connected to and do not represent the operating performance of Sabio. Management believes that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by Sabio’s main business activities prior to taking into consideration how those activities are financed and taxed as well as expenses related to stock-based compensation, depreciation, amortization, restructuring costs, other expense (income), and foreign exchange (gain) loss. Accordingly, management believes that this measure may also be useful to investors in enhancing their understanding of Sabio’s operating performance. It is a key measure used by Sabio’s management and board of directors to understand and evaluate Sabio’s operating performance, to prepare annual budgets, and to help develop operating plans.

Forward-Looking Statements

This press release may contain certain forward-looking information and statements (“forward-looking information”) within the meaning of applicable Canadian securities legislation, which is often, but not always, identified by the use of words such as “believes,” “anticipates,” “plans,” “intends,” “will,” “should,” “expects,” “continue,” “estimate,” “forecasts,” or the negative thereof and other similar expressions. All statements herein other than statements of historical fact constitute forward-looking information, including but not limited to statements in respect of; the Company’s operations, growth, market share, sales expectations, and business plans; results, including sales, expenses, and customer retention, of the Connected TV/OTT sales; positive adjusted EBITDA, and profitability in 2024; the Company’s outlook for the remainder of fiscal 2024, and balance sheet and cash flow management; the Company’s outlook for 2025, including expected revenue gains; expected continued sustainable growth in 2025; and management’s plans to allocate the Company’s cash flows and the effects thereof. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. The Company undertakes no obligation to comment on analyses, expectations, or statements made by third parties in respect of the Company, its securities, or financial or operating results (as applicable). Although the Company believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors, and assumptions concerning future events that may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company’s control, including the effect of the macro-economic environment adversely impacting the Company’s business more than anticipated, unexpected funding and cash flow management difficulties, and the other risk factors disclosed in the Company’s filing statement and management’s discussion and analysis (MD&A), which are publicly available on SEDAR Plus at www.sedarplus.ca. The Company has assumed that the material factors referred to herein will not cause such forward-looking statements and information to differ materially from actual results or events. However, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. The forward-looking information contained in this press release is expressly qualified by this cautionary statement and is made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events, or otherwise. 

This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

For further information: Sajid Premji, Chief Financial Officer, investor@sabio.inc, Phone: 1.844.974.2662; Aideen McDermott, Investor Relations, investor@sabio.inc

SOURCE Sabio Inc.

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