Consolidated sales increased 14% from prior year period
Continued strength across each business segment
2022 third quarter consolidated results compared to 2021 third quarter
- Sales increased 14% to
$201.2 million , as a result of record third quarter sales across all three business segments. - Gross profit increased 3% to
$59.1 million , representing 29.4% of sales. - Operating income increased 3% to
$33.9 million . Adjusted operating income increased 2% from$33.2 million . - Net income decreased slightly to
$23.6 million . Adjusted net income decreased 1% from$23.9 million . - Adjusted EBITDA increased 1% to
$38.7 million . - Basic earnings per common share (“EPS”) decreased to
$1.07 per share from$1.08 per share. Adjusted basic EPS decreased to$1.07 per share from$1.09 per share. - Diluted EPS decreased to
$1.06 per share from$1.08 per share. Adjusted diluted EPS decreased to$1.06 per share from$1.09 per share.
“Our strong performance this quarter demonstrates sustained momentum across each of our segments and the value we bring to our global customer base,” said
Distilling Solutions
In the third quarter 2022, sales for the Distilling Solutions segment increased 19% to a record
For the third quarter 2022, sales for the
Ingredient Solutions
In the third quarter of 2022, sales in the Ingredient Solutions segment increased 24% to a record
Other
Advertising and promotion expenses for the third quarter 2022 increased
Corporate selling, general and administrative ("SG&A") expenses for the third quarter 2022 decreased
The corporate effective tax rate for the third quarter 2022 was 24.2%, compared with 24.5% from the year ago period.
2022 Outlook
MGP is revising upward its previous consolidated guidance for fiscal 2022:
- Sales are projected to be in the range of
$765 million to$780 million . - Adjusted EBITDA is expected to be in the range of
$162 million to$167 million . - Adjusted basic earnings per common share are forecasted to be in the
$4.62 to$4.80 range, with basic weighted average shares outstanding expected to be approximately 22.0 million at year end.
Full year 2022 guidance measures of adjusted EBITDA and adjusted basic EPS are provided on a non-GAAP basis without a reconciliation to the most directly comparable GAAP measures because MGP is unable to predict with a reasonable degree of certainty certain items contained in the GAAP measures without unreasonable efforts. Such items include, but are not limited to, acquisition related expenses, restructuring and related expenses, and other items not reflective of MGP’s ongoing operations.
Conference Call and Webcast Information
Webcast: | ir.mgpingredients.com on the Events & Presentations page | |
Conference Call: | 844-308-6398 (domestic) or 412-717-9605 (international) |
About
As one of the largest distillers in the
MGP’s branded spirits portfolio covers a wide spectrum of brands in every segment, including iconic brands from
In addition, our Ingredient Solutions segment offers specialty proteins and starches that help customers harness the power of plants and provide a host of functional, nutritional and sensory benefits for a wide range of food products.
The transformation of American grain into something more is in the soul of our people, products, and history. We’re devoted to unlocking the creative potential of this extraordinary resource. For more information, visit mgpingredients.com.
Cautionary Note Regarding Forward-Looking Statements
The forward-looking statements contained herein include, but are not limited to, statements about the expected effects on
These forward-looking statements reflect management’s current beliefs and estimates of future economic circumstances, industry conditions, Company performance, and Company financial results and financial condition and are not guarantees of future performance. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. Important factors that could cause actual results to differ materially from our expectations include, (i) disruptions in the operations at any of our facilities, (ii) the availability and cost of grain, flour, and agave, and fluctuations in energy costs, (iii) the effectiveness of our grain purchasing program to mitigate our exposure to commodity price fluctuations, (iv) the effectiveness or execution of our strategic plan, (v) potential adverse effects to operations and our system of internal controls related to the loss of key management personnel, (vi) the competitive environment and related market conditions, (vii) the impact of COVID-19 and other pandemics, (viii) the effects of inflation and our ability to effectively pass raw material and other price increases on to customers, (ix) our ability to maintain compliance with all applicable loan agreement covenants, (x) increases in interest rates, (xi) our ability to realize operating efficiencies, (xii) actions of governments, and (xiii) consumer tastes and preferences. For further information on these and other risks and uncertainties that may affect our business, including risks specific to our Distilling Solutions,
Non-GAAP Financial Measures
In addition to reporting financial information in accordance with
For More Information
Investors & Analysts:
646-475-2998 or investor.relations@mgpingredients.com
Media:
913-360-5440 or greg.manis@mgpingredients.com
OPERATING INCOME ROLLFORWARD
(Dollars in thousands)
Operating income, quarter versus quarter | Operating Income | Change | ||||||
Operating income for quarter ended | $ | 32,884 | ||||||
Increase in gross profit - | 1,850 | 5 | pp(a) | |||||
Increase in gross profit - Ingredient Solutions segment | 1,176 | 4 | pp | |||||
Decrease in gross profit - Distilling Solutions segment | (1,064 | ) | (3 | ) | pp | |||
Increase in Advertising and promotion expenses | (1,615 | ) | (5 | ) | pp | |||
Decrease in SG&A expenses | 623 | 2 | pp | |||||
Change in Other operating income (expense), net | 10 | — | pp | |||||
Operating income for quarter ended | $ | 33,864 | 3 | % |
Operating income, year to date versus year to date | Operating Income | Change | ||||||
Operating income for year to date ended | $ | 81,047 | ||||||
Increase in gross profit - | 29,072 | 36 | pp(a) | |||||
Increase in gross profit - Distilling Solutions segment | 7,419 | 9 | pp | |||||
Increase in gross profit - Ingredient Solutions segment | 7,390 | 9 | pp | |||||
Increase in Advertising and promotion expenses | (8,960 | ) | (11 | ) | pp | |||
Decrease in SG&A expenses | 3,237 | 4 | pp | |||||
Change in Other operating income (expense), net | 45 | — | pp | |||||
Operating income for year to date | $ | 119,250 | 47 | % |
(a) Percentage points (“pp”).
EARNINGS PER COMMON SHARE (“EPS”) ROLLFORWARD
Change in basic and diluted EPS, quarter versus quarter | Basic and Diluted EPS | Change | |||||||
Basic and diluted EPS for quarter ended | $ | 1.08 | |||||||
Increase in Operating income(b) | 0.03 | 3 | pp(a) | ||||||
Change in other income (expense), net(b) | (0.03 | ) | (3 | ) | pp | ||||
Change in interest expense, net(b) | (0.01 | ) | (1 | ) | pp | ||||
Basic EPS for quarter ended | $ | 1.07 | (1 | ) | % | ||||
Impact of dilutive shares outstanding | (0.01 | ) | (1 | ) | pp | ||||
Diluted EPS for quarter ended | $ | 1.06 | (2 | ) | % |
Change in basic and diluted EPS, year to date versus year to date | Basic and Diluted EPS | Change | ||||||
Basic and diluted EPS for year to date ended | $ | 2.91 | ||||||
Increase in Operating income(b) | 1.63 | 56 | pp(a) | |||||
Change in interest expense, net(b) | (0.08 | ) | (3 | ) | pp | |||
Change in other income (expense), net(b) | (0.06 | ) | (2 | ) | pp | |||
Tax: Change in effective tax rate | 0.02 | 1 | pp | |||||
Change in weighted average shares outstanding | (0.51 | ) | (18 | ) | pp | |||
Basic and diluted EPS for year to date ended | $ | 3.91 | 34 | % |
(a) Percentage points (“pp”).
(b) Items are net of tax based on the effective tax rate for the base year (2021).
SALES BY OPERATING SEGMENT
(Dollars in thousands)
DISTILLING SOLUTIONS SALES | |||||||||||||||
Quarter Ended | Quarter versus Quarter Sales Change Increase/(Decrease) | ||||||||||||||
2022 | 2021 | $ Change | % Change | ||||||||||||
Brown goods | $ | 57,423 | $ | 42,793 | $ | 14,630 | 34 | % | |||||||
White goods | 20,469 | 21,187 | (718 | ) | (3 | ) | |||||||||
Premium beverage alcohol | 77,892 | 63,980 | 13,912 | 22 | |||||||||||
Industrial alcohol | 10,761 | 14,790 | (4,029 | ) | (27 | ) | |||||||||
Food grade alcohol | 88,653 | 78,770 | 9,883 | 13 | |||||||||||
Fuel grade alcohol | 3,713 | 3,592 | 121 | 3 | |||||||||||
Distillers feed and related co-products | 9,943 | 4,016 | 5,927 | 148 | |||||||||||
Warehouse services | 6,335 | 4,666 | 1,669 | 36 | |||||||||||
Total Distilling Solutions | $ | 108,644 | $ | 91,044 | $ | 17,600 | 19 | % |
BRANDED SPIRITS SALES | |||||||||||||||
Quarter Ended | Quarter versus Quarter Sales Change Increase/(Decrease) | ||||||||||||||
2022 | 2021 | $ Change | % Change | ||||||||||||
Ultra premium | $ | 13,804 | $ | 11,363 | $ | 2,441 | 21 | % | |||||||
Super premium | 3,350 | 2,798 | 552 | 20 | |||||||||||
Premium | 6,013 | 5,683 | 330 | 6 | |||||||||||
Mid | 20,834 | 22,992 | (2,158 | ) | (9 | ) | |||||||||
Value | 12,097 | 12,756 | (659 | ) | (5 | ) | |||||||||
Other | 6,663 | 5,969 | 694 | 12 | |||||||||||
$ | 62,761 | $ | 61,561 | $ | 1,200 | 2 | % |
INGREDIENT SOLUTIONS SALES | |||||||||||||||
Quarter Ended | Quarter versus Quarter Sales Change Increase / (Decrease) | ||||||||||||||
2022 | 2021 | $ Change | % Change | ||||||||||||
Specialty wheat starches | $ | 16,241 | $ | 12,231 | $ | 4,010 | 33 | % | |||||||
Specialty wheat proteins | 9,697 | 8,901 | 796 | 9 | |||||||||||
Commodity wheat starches | 3,803 | 2,626 | 1,177 | 45 | |||||||||||
Commodity wheat proteins | — | 248 | (248 | ) | (100 | ) | |||||||||
Total Ingredient Solutions | $ | 29,741 | $ | 24,006 | $ | 5,735 | 24 | % |
SALES BY OPERATING SEGMENT
(Dollars in thousands)
DISTILLING SOLUTIONS SALES | |||||||||||||||
Year to Date Ended | Year to Date versus Year to date Sales Change Increase/(Decrease) | ||||||||||||||
2022 | 2021 | $ Change | % Change | ||||||||||||
Brown goods | $ | 175,899 | $ | 129,600 | $ | 46,299 | 36 | % | |||||||
White goods | 57,996 | 56,049 | 1,947 | 3 | |||||||||||
Premium beverage alcohol | 233,895 | 185,649 | 48,246 | 26 | |||||||||||
Industrial alcohol | 35,141 | 46,896 | (11,755 | ) | (25 | ) | |||||||||
Food grade alcohol | 269,036 | 232,545 | 36,491 | 16 | |||||||||||
Fuel grade alcohol | 10,307 | 10,862 | (555 | ) | (5 | ) | |||||||||
Distillers feed and related co-products | 30,127 | 13,660 | 16,467 | 121 | |||||||||||
Warehouse services | 17,821 | 12,949 | 4,872 | 38 | |||||||||||
Total Distilling Soutions | $ | 327,291 | $ | 270,016 | $ | 57,275 | 21 | % |
BRANDED SPIRITS SALES | |||||||||||||||
Year to Date Ended | Year to Date versus Year to date Sales Change Increase/(Decrease) | ||||||||||||||
2022 | 2021 | $ Change | % Change | ||||||||||||
Ultra premium | $ | 35,836 | $ | 19,491 | $ | 16,345 | 84 | % | |||||||
Super premium | 9,522 | 6,393 | 3,129 | 49 | |||||||||||
Premium | 17,928 | 11,012 | 6,916 | 63 | |||||||||||
Mid | 63,408 | 48,399 | 15,009 | 31 | |||||||||||
Value | 36,304 | 25,984 | 10,320 | 40 | |||||||||||
Other | 14,080 | 11,278 | 2,802 | 25 | |||||||||||
$ | 177,078 | $ | 122,557 | $ | 54,521 | 44 | % |
INGREDIENT SOLUTIONS SALES | |||||||||||||||
Year to Date Ended | Year to Date versus Year to date Sales Change Increase/(Decrease) | ||||||||||||||
2022 | 2021 | $ Change | % Change | ||||||||||||
Specialty wheat starches | $ | 47,445 | $ | 35,051 | $ | 12,394 | 35 | % | |||||||
Specialty wheat proteins | 29,225 | 23,299 | 5,926 | 25 | |||||||||||
Commodity wheat starches | 10,286 | 7,572 | 2,714 | 36 | |||||||||||
Commodity wheat proteins | 38 | 1,378 | (1,340 | ) | (97 | ) | |||||||||
Total Ingredient Solutions | $ | 86,994 | $ | 67,300 | $ | 19,694 | 29 | % |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands, except share and per share amounts)
Quarter Ended | Year to Date Ended | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Sales | $ | 201,146 | $ | 176,611 | $ | 591,363 | $ | 459,873 | ||||||||
Cost of sales | 142,098 | 119,525 | 401,270 | 313,661 | ||||||||||||
Gross profit | 59,048 | 57,086 | 190,093 | 146,212 | ||||||||||||
Advertising and promotion expenses | 7,279 | 5,664 | 18,848 | 9,888 | ||||||||||||
Selling, general and administrative expenses | 17,904 | 18,527 | 52,029 | 55,266 | ||||||||||||
Other operating (income) expense, net | 1 | 11 | (34 | ) | 11 | |||||||||||
Operating income | 33,864 | 32,884 | 119,250 | 81,047 | ||||||||||||
Interest expense, net | (1,350 | ) | (1,116 | ) | (4,491 | ) | (2,708 | ) | ||||||||
Other income (expense), net | (1,353 | ) | (421 | ) | (2,361 | ) | (479 | ) | ||||||||
Income before income taxes | 31,161 | 31,347 | 112,398 | 77,860 | ||||||||||||
Income tax expense | 7,533 | 7,674 | 26,037 | 18,701 | ||||||||||||
Net income | 23,628 | 23,673 | 86,361 | 59,159 | ||||||||||||
Net (income) loss attributable to noncontrolling interest | 180 | 203 | 444 | 279 | ||||||||||||
Net income attributable to | 23,808 | 23,876 | 86,805 | 59,438 | ||||||||||||
Income attributable to participating securities | (188 | ) | (175 | ) | (688 | ) | (471 | ) | ||||||||
Net income used in Earnings Per Common Share calculation | $ | 23,620 | $ | 23,701 | $ | 86,117 | $ | 58,967 | ||||||||
Share information: | ||||||||||||||||
Basic weighted average common shares | 22,008,381 | 21,981,201 | 22,000,026 | 20,293,818 | ||||||||||||
Diluted weighted average common shares | 22,228,814 | 21,981,201 | 22,000,026 | 20,293,818 | ||||||||||||
Basic Earnings Per Common Share | $ | 1.07 | $ | 1.08 | $ | 3.91 | $ | 2.91 | ||||||||
Diluted Earnings Per Common Share | $ | 1.06 | $ | 1.08 | $ | 3.91 | $ | 2.91 |
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
2022 | 2021 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 50,674 | $ | 21,568 | |||
Receivables, net | 107,653 | 92,537 | |||||
Inventory | 275,478 | 245,944 | |||||
Prepaid expenses | 5,833 | 1,510 | |||||
Refundable income taxes | 1,006 | 5,539 | |||||
Total Current Assets | 440,644 | 367,098 | |||||
Property, plant, and equipment | 430,945 | 404,149 | |||||
Less accumulated depreciation and amortization | (210,254 | ) | (196,863 | ) | |||
Property, Plant, and Equipment, net | 220,691 | 207,286 | |||||
Operating lease right-of-use assets, net | 14,516 | 9,671 | |||||
Investment in joint ventures | 6,140 | 4,944 | |||||
Intangible assets, net | 217,285 | 218,838 | |||||
226,294 | 226,294 | ||||||
Other assets | 6,505 | 7,336 | |||||
TOTAL ASSETS | $ | 1,132,075 | $ | 1,041,467 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Current maturities of long-term debt | $ | 4,800 | $ | 3,227 | |||
Accounts payable | 64,858 | 53,712 | |||||
Federal and state excise taxes payable | 4,713 | 6,992 | |||||
Accrued expenses and other | 26,420 | 24,869 | |||||
Total Current Liabilities | 100,791 | 88,800 | |||||
Long-term debt, less current maturities | 31,105 | 35,266 | |||||
Convertible senior notes | 195,146 | 194,906 | |||||
Long-term operating lease liabilities | 11,327 | 6,997 | |||||
Other noncurrent liabilities | 4,047 | 5,132 | |||||
Deferred income taxes | 65,799 | 66,101 | |||||
Total Liabilities | 408,215 | 397,202 | |||||
Total equity | 723,860 | 644,265 | |||||
TOTAL LIABILITIES AND TOTAL EQUITY | $ | 1,132,075 | $ | 1,041,467 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in thousands)
Year to Date Ended | ||||||||
2022 | 2021 | |||||||
Cash Flows from Operating Activities | ||||||||
Net income | $ | 86,361 | $ | 59,159 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 16,257 | 13,668 | ||||||
Share-based compensation | 3,086 | 5,247 | ||||||
Deferred income taxes, including change in valuation allowance | (302 | ) | 465 | |||||
Other, net | 1,462 | (231 | ) | |||||
Changes in operating assets and liabilities, net of effects of acquisition: | ||||||||
Receivables, net | (15,582 | ) | (5,593 | ) | ||||
Inventory | (30,599 | ) | (7,588 | ) | ||||
Prepaid expenses | 1,165 | 1,206 | ||||||
Refundable income taxes | (1,006 | ) | (2,086 | ) | ||||
Accounts payable | 12,613 | (6,678 | ) | |||||
Accrued expenses and other | 1,220 | 15,859 | ||||||
Federal and state liquor excise payable | (2,279 | ) | (1,961 | ) | ||||
Other, net | (143 | ) | (682 | ) | ||||
Net cash provided by operating activities | 72,253 | 70,785 | ||||||
Cash Flows from Investing Activities | ||||||||
Additions to property, plant, and equipment | (29,217 | ) | (37,257 | ) | ||||
Purchase of business, net of cash acquired | — | (149,613 | ) | |||||
Contributions to equity method investment | (2,232 | ) | (988 | ) | ||||
Other, net | (315 | ) | (1,308 | ) | ||||
Net cash used in investing activities | (31,764 | ) | (189,166 | ) | ||||
Cash Flows from Financing Activities | ||||||||
Payment of dividends and dividend equivalents | (7,984 | ) | (7,362 | ) | ||||
Purchase of treasury stock | (714 | ) | (767 | ) | ||||
Loan fees paid related to borrowings | — | (666 | ) | |||||
Principal payments on long-term debt | (2,603 | ) | (813 | ) | ||||
Proceeds from credit agreement - revolver | — | 242,300 | ||||||
Payments on credit agreement - revolver | — | (32,300 | ) | |||||
Payment on assumed debt as part of the Merger | — | (87,509 | ) | |||||
Net cash provided by (used in) financing activities | (11,301 | ) | 112,883 | |||||
Effect of exchange rate changes on cash | (82 | ) | (2 | ) | ||||
Increase (decrease) in cash and cash equivalents | 29,106 | (5,500 | ) | |||||
Cash and cash equivalents, beginning of period | 21,568 | 21,662 | ||||||
Cash and cash equivalents, end of period | $ | 50,674 | $ | 16,162 |
RECONCILIATION OF SELECTED GAAP MEASURES TO ADJUSTED NON-GAAP MEASURES (UNAUDITED)
(in thousands)
Quarter Ended | |||||||||||||||||||||||||||
Gross Profit | Operating Income | Income before Income Taxes | Net Income | MGP Earnings(a) | Basic EPS | Diluted EPS | |||||||||||||||||||||
Reported GAAP Results | $ | 59,048 | $ | 33,864 | $ | 31,161 | $ | 23,628 | $ | 23,620 | $ | 1.07 | $ | 1.06 | |||||||||||||
No adjustments for the period | — | — | — | — | — | — | — | ||||||||||||||||||||
Adjusted Non-GAAP results | $ | 59,048 | $ | 33,864 | $ | 31,161 | $ | 23,628 | $ | 23,620 | $ | 1.07 | $ | 1.06 |
Quarter Ended | |||||||||||||||||||||||
Gross Profit | Operating Income | Income before Income Taxes | Net Income | MGP Earnings(a) | Basic and Diluted EPS | ||||||||||||||||||
Reported GAAP Results | $ | 57,086 | $ | 32,884 | $ | 31,347 | $ | 23,673 | $ | 23,701 | $ | 1.08 | |||||||||||
Adjusted to remove: | |||||||||||||||||||||||
Business acquisition costs (b) | — | 294 | 294 | 221 | 221 | 0.01 | |||||||||||||||||
Adjusted Non-GAAP results | $ | 57,086 | $ | 33,178 | $ | 31,641 | $ | 23,894 | $ | 23,922 | $ | 1.09 |
Year to Date Ended | |||||||||||||||||||||||
Gross Profit | Operating Income | Income before Income Taxes | Net Income | MGP Earnings(a) | Basic and Diluted EPS | ||||||||||||||||||
Reported GAAP Results | $ | 190,093 | $ | 119,250 | $ | 112,398 | $ | 86,361 | $ | 86,117 | $ | 3.91 | |||||||||||
No adjustments for the period | — | — | — | — | — | — | |||||||||||||||||
Adjusted Non-GAAP results | $ | 190,093 | $ | 119,250 | $ | 112,398 | $ | 86,361 | $ | 86,117 | $ | 3.91 |
Year to Date Ended | |||||||||||||||||||||||
Gross Profit | Operating Income | Income before Income Taxes | Net Income | MGP Earnings(a) | Basic and Diluted EPS | ||||||||||||||||||
Reported GAAP Results | $ | 146,212 | $ | 81,047 | $ | 77,860 | $ | 59,159 | $ | 58,967 | $ | 2.91 | |||||||||||
Adjusted to remove: | |||||||||||||||||||||||
Inventory step-up - | 2,529 | 2,529 | 2,529 | 2,529 | 2,510 | 0.13 | |||||||||||||||||
Business acquisition costs (b) | — | 8,922 | 8,922 | 7,524 | 7,462 | 0.37 | |||||||||||||||||
Adjusted Non-GAAP results | $ | 148,741 | $ | 92,498 | $ | 89,311 | $ | 69,212 | $ | 68,939 | $ | 3.41 |
(a) | MGP Earnings has been defined as "Net income used in Earnings Per Common Share calculation." | |
(b) | The Business acquisition costs are included in the Condensed Consolidated Statement of Income within the Selling, general and administrative line item. The adjustment includes transaction and integration costs associated with the merger with | |
(c) | The finished goods Inventory valuation step-up costs are included in the Condensed Consolidated Statement of Income within Cost of goods by the |
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
(UNAUDITED)
(in thousands)
Quarter Ended | Year to Date Ended | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Net Income | $ | 23,628 | $ | 23,673 | $ | 86,361 | $ | 59,159 | |||||||
Interest expense | 1,350 | 1,116 | 4,491 | 2,708 | |||||||||||
Income tax expense | 7,533 | 7,674 | 26,037 | 18,701 | |||||||||||
Depreciation and amortization | 5,333 | 5,243 | 16,257 | 13,668 | |||||||||||
Equity method investment | 856 | 405 | 1,036 | 739 | |||||||||||
Inventory step-up - | — | — | — | 2,529 | |||||||||||
Business acquisition costs | — | 294 | — | 8,922 | |||||||||||
Adjusted EBITDA | $ | 38,700 | $ | 38,405 | $ | 134,182 | $ | 106,426 |
The non-GAAP adjusted EBITDA measure is defined as earnings before interest, taxes, depreciation and amortization, equity method investment and business acquisition costs. See section "reconciliation of selected GAAP measure to non-GAAP measures" for further details on each of these non-GAAP Items.
DILUTIVE SHARES OUTSTANDING CALCULATION
(UNAUDITED)
Quarter Ended | Year to Date Ended | ||||||
2022 | 2022 | ||||||
Principle amount of the bonds | $ | 201,250,000 | $ | 201,250,000 | |||
Par value | $ | 1,000 | $ | 1,000 | |||
Number of bonds outstanding (b) | 201,250 | 201,250 | |||||
Initial conversion rate | 10.3911 | 10.3911 | |||||
Conversion price | $ | 96.23620 | $ | 96.23620 | |||
Average share price (c) | $ | 107.44873 | $ | 94.08909 | |||
Impact of conversion (d) | $ | 224,697,738 | $ | — | |||
Cash paid for principle | (201,250,000 | ) | (201,250,000 | ) | |||
Conversion premium | $ | 23,447,738 | $ | — | |||
Average share price | $ | 107.44873 | $ | 94.08909 | |||
Conversion premium in shares (a) (e) | 218,223 | — |
(a) | The impacts of the Convertible Senior Notes were included in the diluted weighted average common shares outstanding if the impact was dilutive. The Convertible Senior Notes would only have a dilutive impact if the average market price per share during the quarter and year to date period exceeds the conversion price of | |
(b) | Number of bonds outstanding is calculated by taking the principle amount of the bonds divided by the par value. | |
(c) | Average share price is calculated by taking the average of the daily closing share price for the period. If the average share price is less than the conversion price of | |
(d) | Impact of conversion is calculated by taking the number of bonds outstanding multiplied by the initial conversion rate multiplied by the average share price. If the average share price is less than the conversion price then the impact of conversion is zero. | |
(e) | Conversion premium in shares is calculated by taking the conversion premium divided by the average share price. If the average share price is less than the conversion price then the conversion premium in shares is zero. |
Source:
2022 GlobeNewswire, Inc., source