SLIDE 17 Reconciliation of GAAP Results to Adjusted Loss and Adjusted EPS
17
(a) Reflects the gain on sale of the soy and corn business, net of transaction costs and post-closing adjustments, which was recorded in other income. (b) For fiscal 2019, reflects employee retention and relocation costs of $2.2 million, and professional fees of $1.4 million recorded in SG&A expenses; and employee termination costs of $8.6 million (net of the reversal
- f $4.1 million of previously recognized stock-based compensation related to forfeited awards previously granted to terminated employees), CEO and CFO recruitment costs of $1.3 million, and facility closure costs
- f $0.3 million, all recorded in other expense. For 2018, reflects the write-down of inventories of $0.1 million recorded in cost of goods sold; professional and consulting fees, and employee recruitment and
relocation costs of $0.6 million recorded in SG&A expenses; and asset impairment, facility closure and employee termination costs of $1.7 million recorded in other expense, all related to the Value Creation Plan. (c) Reflects costs related to the expansion of our Allentown, Pennsylvania, plant-based beverage facility and start-up of our new organic avocado oil facility in Ethiopia, which were recorded in cost of goods sold. (d) Reflects costs to transition premium juice production activities to new contract manufacturers, which were recorded in cost of goods sold and other expense. (e) Reflects product withdrawal and recall costs that were not eligible for reimbursement under insurance policies or exceeded the limits of those policies, including costs related to the recall of certain sunflower kernel products initiated in 2016, which were recorded in other expense. The following table presents a reconciliation of adjusted earnings/loss from net earnings/loss, which we consider to be the most directly comparable U.S. GAAP financial measure. In addition, in recognition of the sale of the soy and corn business (as described above under the heading “Sale of Soy and Corn Business”), and our exit from flexible resealable pouch and nutrition bar product lines and operations (as described above under the heading “Value Creation Plan”), we have prepared this table in a columnar format to present the effect of the disposal of these operations on our consolidated results for the current and comparative
- periods. We believe this presentation assists investors in assessing the results of the operations we have disposed of and the effect of those operations on our financial performance.
Excluding disposed
Disposed
Consolidated Excluding disposed
Disposed
Consolidated $ (32.3) $ 31.7 $ (0.6) $ (111.5) $ 2.3 $ (109.1) (0.2)
(0.1)
(8.0)
(7.9)
(40.4) 31.7 (8.8) (119.4) 2.3 (117.1)
Gain on sale of soy and corn business(a)
(44.0)
- Costs related to Value Creation Plan (b)
9.6
1.7 0.7 2.4 Plant expansion costs(c) 0.6
- 0.6
- Contract manufacturer transition costs(d)
0.4
- 0.4
- Product withdrawal and recall costs(e)
0.3
1.5
Other(f ) (2.5)
0.3
Net income tax effect(g) (0.1) 12.1 12.0 0.7 (0.2) 0.5 Goodwill impairment(h)
Inventory write-downs(i)
Equipment start-up costs(j)
New product commercialization costs(k)
Reserve for notes receivable(l)
Fair value adjustment on contingent consideration(m)
Recovery of product withdrawal costs(n)
Reversal of stock-based compensation(o)
(32.1) (0.3) (32.4) (27.3) 2.8 (24.5) (0.37) $ (0.00) $ (0.37) $ (0.31) $ 0.03 $ (0.28) $ ($ millions, except per share amounts; totals may not sum due to rounding) Net (earnings) loss Add: loss attributable to non-controlling interests Less: dividends and accretion on Series A Preferred Stock Earnings (loss) attributable to common shareholders Adjusted earnings (loss) Adjusted earnings (loss) per diluted share Fiscal 2019 Fiscal 2018
