Company profile

Ticker
BRBR
Exchange
CEO
Darcy Horn Davenport
Employees
Incorporated in
Location
Fiscal year end
Industry (SEC)
SEC CIK
IRS number
834096323

Calendar

8 May 20
14 Jul 20
30 Sep 20

News

Company financial data Financial data

Quarter (USD) Mar 20 Dec 19 Mar 19 Dec 18
Revenue 257.5M 244M 216.5M 185.8M
Net income 18.6M 31.8M 31M 25.1M
Diluted EPS 0.11 0.15 NaN NaN
Net profit margin 7.22% 13.03% 14.32% 13.51%
Operating income 35.1M 49.3M 40.8M 32.9M
Net change in cash 46.8M 27M -6.3M
Cash on hand 76.7M 29.9M 2.9M 9.2M
Cost of revenue 169.3M 152.7M 137.5M 120.2M

Financial data from company earnings reports

Date Owner Security Transaction Code 10b5-1 $Price #Shares $Value #Remaining
2 Jul 20 Erickson Thomas P BellRing Brands, Inc. Class A Common Stock Equivalents Class A Common Stock Grant Aquire A No 19.66 1,102.041 21.67K 2,335.876
2 Jul 20 Johnson Jennifer Kuperman BellRing Brands, Inc. Class A Common Stock Equivalents Class A Common Stock Grant Aquire A No 19.66 932.496 18.33K 1,976.511
1 Apr 20 Erickson Thomas P BellRing Brands, Inc. Class A Common Stock Equivalents Class A Common Stock Grant Aquire A No 17.56 1,233.834 21.67K 1,233.834
1 Apr 20 Johnson Jennifer Kuperman BellRing Brands, Inc. Class A Common Stock Equivalents Class A Common Stock Grant Aquire A No 17.56 1,044.014 18.33K 1,044.014
5 Feb 20 Johnson Jennifer Kuperman Class A Common Stock Grant Aquire A No 0 4,395 0 4,395
94.6% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 87 87
Opened positions 21 87 -75.9%
Closed positions 21 0 NEW
Increased positions 27 0 NEW
Reduced positions 31 0 NEW
13F shares
Current Prev Q Change
Total value 635.84M 818.32M -22.3%
Total shares 37.29M 38.44M -3.0%
Total puts 0 0
Total calls 13.7K 0 NEW
Total put/call ratio
Largest owners
Shares Value Change
Route One Investment 5.06M $86.29M +1.2%
Vanguard 3.54M $60.33M +2.6%
BLK BlackRock 2.66M $45.35M +10.0%
Victory Capital Management 2.47M $42.18M +150.5%
FMR 2.44M $41.56M -20.6%
BEN Franklin Resources 1.86M $31.77M +127.0%
N Price T Rowe Associates 1.86M $31.7M -53.3%
Emerald Advisers 1.68M $28.63M +2.7%
Emerald Mutual Fund Advisers Trust 1.51M $25.73M -4.0%
FRLG Goldman Sachs 1.43M $24.41M -20.3%
Largest transactions
Shares Bought/sold Change
N Price T Rowe Associates 1.86M -2.12M -53.3%
Victory Capital Management 2.47M +1.49M +150.5%
BEN Franklin Resources 1.86M +1.04M +127.0%
Norges Bank 0 -1M EXIT
FMR 2.44M -631.26K -20.6%
Two Sigma Investments 0 -460.58K EXIT
JHG Janus Henderson 1.03M -426.07K -29.2%
Candlestick Capital Management 706.86K +402.24K +132.1%
FRLG Goldman Sachs 1.43M -363.63K -20.3%
Pier Capital 303.11K +303.11K NEW

Financial report summary

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Risks
  • A substantial amount of our net sales comes from our RTD protein shakes, and a decrease in sales of our RTD protein shakes would adversely affect our business, financial condition, results of operations and cash flows.
  • We are currently dependent on a limited number of third party contract manufacturers and suppliers for the manufacturing of most of our products, including one manufacturer for the substantial majority of our RTD protein shakes. Our business could suffer as a result of a third party contract manufacturer’s inability to produce our products for us in the quantities required, on time or to our specifications or to obtain the supplies and equipment necessary for such production.
  • We operate in a category with strong competition.
  • Our reliance on a limited number of suppliers for certain ingredients and packaging materials, the price and availability of ingredients and packaging materials, higher freight costs and higher energy costs could negatively impact profits.
  • Disruption of our supply chain and changes in weather conditions could have an adverse effect on our business, financial condition, results of operations and cash flows.
  • Consolidation in our distribution channels, and competitive, economic and other pressures facing our customers, may hurt our profit margins.
  • We must identify changing consumer and customer preferences and develop and offer products to meet these preferences.
  • Our results may be adversely impacted if consumers do not maintain favorable perceptions of our brands.
  • Our sales and profit growth are dependent upon our ability to expand existing market penetration and enter into new markets.
  • If our products become adulterated or contaminated, or if they are misbranded or mislabeled, we might need to recall or withdraw those items and may experience product liability claims if consumers are injured.
  • Violations of laws or regulations by us or our third party contract manufacturers, as well as new laws or regulations or changes to existing laws or regulations, could adversely affect our business.
  • Certain of our products are subject to a higher level of regulatory scrutiny, resulting in increased costs of operations and the potential for delays in product sales.
  • We may not be able to effectively manage our growth, which could materially harm our business, financial condition, results of operations and cash flows.
  • If we pursue acquisitions or other strategic transactions, we may not be able to successfully consummate favorable transactions or successfully integrate acquired businesses.
  • Fluctuations in our business due to changes in our promotional activities and seasonality may have an adverse impact on our financial condition, results of operations and cash flows.
  • The international portion of our business subjects us to additional risks.
  • Loss of, a significant reduction of purchases by or bankruptcy of a major customer may adversely affect our business, financial condition, results of operations and cash flows.
  • Pending and future litigation may impair our reputation or lead us to incur significant costs.
  • Changes in tax laws may adversely affect us, and the Internal Revenue Service or a court may disagree with tax positions taken by BellRing Brands, Inc. or BellRing Brands, LLC, which may result in adverse effects on our financial condition or the value of our common stock.
  • Our market size and related estimates may prove to be inaccurate.
  • Agricultural diseases or pests could harm our business, financial condition, results of operations and cash flows.
  • We may not be able to operate successfully if we lose key personnel, are unable to hire qualified additional personnel or experience turnover of our management team.
  • Increases in costs of medical and other employee health and welfare benefits may reduce our profitability.
  • Economic downturns could limit consumer and customer demand for our products.
  • U.S. and global capital and credit market issues could negatively affect our liquidity, increase our costs of borrowing and disrupt the operations of our suppliers and customers.
  • Changing currency exchange rates may adversely affect our business, financial condition, results of operations and cash flows.
  • Our intellectual property rights are valuable and any inability to protect them could reduce the value of our products and brands.
  • Technology failures, cybersecurity incidents and corruption of our data privacy protections could disrupt our operations and negatively impact our business.
  • Impairment in the carrying value of intangible assets could negatively impact our financial condition and results of operations. If our goodwill or other intangible assets become impaired, we will be required to record additional impairment charges, which may be significant.
  • We and our third party contract manufacturers are subject to environmental laws and regulations that can impose significant costs and expose us to potential financial liabilities.
  • Climate change, or legal or market measures to address climate change, may negatively affect our business and operations.
  • We have significant debt and high leverage, which could have a negative impact on our financing options and liquidity position and which could adversely affect our business.
  • Despite our level of indebtedness, we may be able to incur substantially more debt, which could further exacerbate the risks described above, and we may in any event be required to maintain a minimum level of indebtedness.
  • The agreements governing our debt contain various covenants that limit our ability to take certain actions and also require us to meet financial maintenance tests, and failure to comply with these covenants could have a material adverse effect on us.
  • To service indebtedness and fund other cash needs, we will require a significant amount of cash, and our ability to generate cash depends on many factors beyond our control.
  • Increases in interest rates may negatively affect our earnings.
  • Post controls our Company and has the ability to control the direction of our business.
  • Post’s interests may conflict with our interests and the interests of our other stockholders. Conflicts of interest or disputes between Post and our Company could be resolved in a manner unfavorable to our Company and our other stockholders.
  • Our amended and restated certificate of incorporation could prevent us from benefiting from corporate opportunities that might otherwise have been available to us.
  • In order to preserve the ability of Post to distribute its beneficial retained interest in BellRing Brands, LLC on a tax-free basis, we may be prevented from pursuing opportunities to raise capital, to effectuate acquisitions or to provide equity incentives to our employees, which could hurt our ability to grow.
  • Our agreements with Post require us to indemnify Post for certain tax liabilities.
  • The tax receivable agreement with Post and BellRing Brands, LLC requires us to make cash payments to Post for certain tax benefits we may realize in the future, and these payments could be substantial.
  • We will not be reimbursed for any payments made to Post under the tax receivable agreement in the event that any tax benefits are disallowed.
  • In certain cases, future payments under the tax receivable agreement to Post may be accelerated or significantly exceed the actual benefits we realize in respect of the tax attributes subject to the tax receivable agreement.
  • Our organizational structure confers certain benefits upon Post and certain of its successors and assigns that may not benefit our Class A common stockholders to the same extent, and that could result in determinations harmful to the interests of such stockholders.
  • If the BellRing Brands, LLC Board of Managers elects to make cash payments rather than issue shares of our Class A Common Stock in future redemptions of BellRing Brands, LLC units, such cash payments may reduce the amount of overall cash flow that would otherwise be available to us.
  • Future sales or distributions of shares of our Class A Common Stock by Post could depress our Class A Common Stock price, impact our operations or result in a change in control of us.
  • The services that Post provides to us may not be sufficient to meet our needs, which may result in increased costs and otherwise adversely affect our business.
  • We have no operating history as a separate public company, and our historical financial information is not necessarily representative of the results we will achieve as a separate public company and may not be a reliable indicator of our future results.
  • We will incur additional expenses to create the corporate infrastructure to operate as a public company, and we will experience increased ongoing costs in connection with being a public company.
  • As a public company, we are required to satisfy the requirements of Section 404 of the Sarbanes-Oxley Act of 2002. If we are unable to satisfy the requirements of Section 404 of the Sarbanes-Oxley Act, or our internal control over financial reporting is not effective, the reliability of our financial statements may be questioned, and the market price of our Class A Common Stock could decline.
  • A substantial portion of our total outstanding shares of Class A Common Stock may be sold into the market at any time. These sales could cause the market price of our Class A Common Stock to drop significantly, even if our business is doing well.
  • Our issuance of additional capital stock in connection with financings, acquisitions, investments, our stock incentive plans or otherwise could dilute all other stockholders.
  • We do not expect to declare or pay any dividends on our Class A Common Stock for the foreseeable future.
  • Provisions in our amended and restated certificate of incorporation and amended and restated bylaws and provisions of Delaware law may delay or prevent our acquisition by a third party, which might diminish the value of our Class A Common Stock.
  • We are an “emerging growth company,” and our election to comply with certain reduced disclosure requirements as a public company may make our Class A Common Stock less attractive to investors.
  • We are a “controlled company” within the meaning of the NYSE corporate governance standards and we qualify for exemption from certain corporate governance requirements. We do not currently rely on any of these exemptions, but there can be no assurance that we will not rely on these exemptions in the future.
  • Actions of stockholders could cause us to incur substantial costs, divert management’s attention and resources and have an adverse effect on our business.
  • BellRing Brands, Inc.’s only material asset is its interest in BellRing Brands, LLC, and accordingly, BellRing Brands, Inc. depends on distributions from BellRing Brands, LLC to pay taxes and expenses, including payments under the tax receivable agreement. BellRing Brands, LLC’s ability to make such distributions may be subject to various limitations and restrictions.
Management Discussion
  • Net sales increased $26.9 million, or 3%, during the year ended September 30, 2019, as compared to the prior year. Sales of Premier Protein products were up $43.8 million, or 7%, with volume up 5%, driven by higher average net selling prices resulting from targeted price increases and higher RTD protein shake product volumes, partially offset by lower sales of nutrition bars. Increases in RTD protein shake product volumes for the year ended September 30, 2019 were below recent growth trends primarily due to short-term supply constraints (for further discussion, see “Industry & Company Trends” above). Sales of Dymatize products were up $4.3 million, or 4%, with volume up 3%, primarily due to distribution gains in the mass channel and organic growth in the eCommerce channel, partially offset by declines in the domestic specialty channel. Sales of PowerBar products were down $15.6 million, or 26%, with volume down 29%, driven by distribution losses and strategic sales reductions of low performing products within our North American portfolio. Sales of all other products were down $5.6 million. Current year net sales were impacted by the reclassification of certain payments to customers of $8.8 million from selling expenses to net sales in connection with the adoption of ASU 2014-09 (see below for further discussion).
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