What changed in this filing

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Item 1. Financial Statements

2024-12-05 compared with 2024-09-05 · 123 added, 107 removed, 256 unchanged (47% of the section changed)

10 unchanged sentences

91,048 84,603

Prepaid and other assets

Prepaid and other current assets

21,401 22,385

Total current assets

25 unchanged sentences

197,296 210,641

Commitments and contingencies

Shareholders' equity:

Preferred stock, $ 1 par value - 1,000,000 shares authorized Series C - 150,000 shares issued

Preferred stock, $ 1 par value - 1,000,000 shares authorized:

Series C - 150,000 shares issued

Common stock, $ .01 par value - 200,000,000 shares authorized;

4 unchanged sentences

333,346 535,077

Accumulated other comprehensive (loss) income

( 1,142 ) 4,911

Accumulated other comprehensive loss

Treasury stock - at cost:

13 unchanged sentences

Three Months Ended

$ 329,473 $ 324,240

Six Months Ended

Cost of sales

207,041 209,759

122,432 114,481

Selling, general and administrative expenses

52,917 51,377

Operating income

69,515 63,104

Other income, net

Income before income taxes

73,862 65,167

Provision for income taxes

17,082 15,536

$ 56,780 $ 49,631

Earnings per common share:

Weighted average common shares outstanding:

93,569 93,354

93,667 93,610

See accompanying Notes to Condensed Consolidated Financial Statements.

4 unchanged sentences

Three Months Ended

$ 56,780 $ 49,631

Other comprehensive loss, net of tax:

Six Months Ended

Other comprehensive income, net of tax:

Cash flow hedges

Comprehensive income

$ 50,727 $ 49,420

See accompanying Notes to Condensed Consolidated Financial Statements.

4 unchanged sentences

Three Months Ended

July 27, 2024

July 29, 2023

Six Months Ended

October 26, 2024

October 28, 2023

October 26, 2024

October 28, 2023

Series C Preferred Stock

Beginning and end of period

150 $ 150 150 $ 150

Beginning and end of period

101,942 1,019 101,727 1,017

Beginning of period

Stock options exercised

End of Period

101,985 1,020 101,727 1,017

Additional Paid-In Capital

Beginning of period

42,588 40,393

Stock options exercised

1 unchanged sentence

End of period

43,092 40,561

Retained Earnings

Beginning of period

535,077 358,345

56,780 49,631

Common stock cash dividend

( 304,148 ) -

End of period

287,709 407,976

Accumulated Other Comprehensive (Loss) Income

Accumulated Other Comprehensive Income (Loss)

Beginning of period

4,911 ( 3,185 )

Cash flow hedges

( 6,053 ) ( 211 )

Cash flow hedges, net of tax

End of period

( 1,142 ) ( 3,396 )

Treasury Stock - Series C Preferred

Beginning and end of period

150 ( 5,100 ) 150 ( 5,100 )

Treasury Stock - Common

Beginning and end of period

8,374 ( 19,133 ) 8,374 ( 19,133 )

Total Shareholders' Equity

$ 306,596 $ 422,075

See accompanying Notes to Condensed Consolidated Financial Statements.

3 unchanged sentences

(In thousands)

Three Months Ended

Six Months Ended

Operating Activities:

$ 56,780 $ 49,631

Adjustments to reconcile net income to net cash provided by operating activities:

1 unchanged sentence

Deferred income taxes

( 312 ) 4,284

Loss on disposal of property, plant and equipment, net

3 unchanged sentences

Trade receivables

( 13,192 ) ( 2,762 )

( 6,026 ) 579

Prepaid and other assets

Accounts payable

( 4,389 ) 2,217

Accrued and other liabilities

Operating lease liabilities

( 3,520 ) ( 3,302 )

Net cash provided by operating activities

57,499 70,143

Investing Activities:

Purchases of property, plant and equipment

( 3,704 ) ( 5,474 )

Proceeds from sale of property, plant and equipment

Net cash used in investing activities

( 3,703 ) ( 5,448 )

Financing Activities:

Dividends paid on common stock

( 304,148 ) -

Proceeds from stock options exercised

Net cash used in financing activities

( 303,803 ) -

Net cash (used in) provided by financing activities

Net (Decrease) Increase in Cash and Cash Equivalents

( 250,007 ) 64,695

Cash and Cash Equivalents - Beginning of Period

327,047 158,074

Cash and Cash Equivalents - End of Period

$ 77,040 $ 222,769

Supplemental Cash Flow Information:

3 unchanged sentences

Right-of-use assets obtained in exchange for lease liabilities

$ 684 $ 3,589

See accompanying Notes to Condensed Consolidated Financial Statements.

12 unchanged sentences

and its subsidiaries.

All significant intercompany transactions and accounts have been eliminated.

Significant intercompany transactions and accounts have been eliminated.

The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles and rules and regulations of the Securities and Exchange Commission for interim financial reporting.

2 unchanged sentences

The accounting policies used in these interim unaudited condensed consolidated financial statements are consistent with those used in the annual consolidated financial statements.

Segment Reporting

The Company operates as a single operating segment for purposes of presenting financial information and evaluating performance.

As such, the accompanying consolidated financial statements present financial information in a format that is consistent with the internal financial information used by management.

Use of Estimates

10 unchanged sentences

See Note 5 -Derivative Financial Instruments.

Trade Receivables, Net

The Company’s estimated allowances for credit losses as of

October 26, 2024 and

April 27, 2024 were

$ 1.0 million and

$ 0.9 million, respectively.

Inventories are stated at the lower of first -in, first -out cost or net realizable value.

Adjustments, if required, to reduce the cost of the inventory to net realizable value are made for estimated excess, obsolete or impaired balances.

Inventories at July 27, 2024 were comprised of finished goods of $ 49.0 million and raw materials of $ 41.6 million.

Inventories at October 26, 2024 were comprised of finished goods of $ 49.0 million and raw materials of $ 42.1 million.

Inventories at April 27, 2024 were comprised of finished goods of $ 50.3 million and raw materials of $ 34.3 million.

1 unchanged sentence

Shipping and handling costs are reported in selling, general and administrative expenses in the accompanying condensed consolidated statements of income.

Such costs were $ 19.5 million and $ 20.9 million for the three months ended July 27, 2024 and July 29, 2023, respectively.

Such costs were $ 18.4 million and $ 19.7 million for the three months ended October 26, 2024 and October 28, 2023, respectively.

Shipping and handling costs were $ 38.0 million and $ 40.6 million for the six months ended October 26, 2024 and October 28, 2023, respectively.

Although our classification is consistent with many beverage companies, our gross margin may not be comparable to companies that include shipping and handling costs in cost of sales.

2 unchanged sentences

Marketing costs are expensed when incurred, except for prepaid advertising and production costs, which are expensed when the advertising takes place.

Marketing costs, which are included in selling, general and administrative expenses, were $ 11.5 million and $ 10.8 million for the three months ended July 27, 2024 and July 29, 2023, respectively.

Marketing costs, which are included in selling, general and administrative expenses, were $ 11.6 million and $ 13.3 million for the three months ended October 26, 2024 and October 28, 2023, respectively.

Marketing costs were $ 23.1 million and $ 24.1 million for the six months ended October 26, 2024 and October 28, 2023, respectively.

Earnings Per Common Share

Basic earnings per common share is computed by dividing earnings available to common shareholders by the weighted average number of common shares outstanding during the period.

Diluted earnings per common share is calculated in a similar manner, but includes the dilutive effect of stock options amounting to 98,000 and 256,000 shares in the three months ended July 27, 2024 and July 29, 2023, respectively.

Diluted earnings per common share is calculated in a similar manner, but includes the dilutive effect of stock options that was 73,000 and 244,000 shares in the three months ended October 26, 2024 and October 28, 2023, respectively.

The dilutive effect of stock options was 86,000 and 250,000 shares in the six months ended October 26, 2024 and October 28, 2023, respectively.

Recently Issued Accounting Pronouncements

In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024 - 03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220 - 40 ):

Disaggregation of Income Statement Expenses,” which requires entities to disaggregate operating expenses into specific categories such as employee compensation, depreciation, and intangible asset amortization, by relevant expense caption on the statement of operations.

The standard is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027.

Early adoption is permitted on either a prospective or retrospective basis.

We are currently evaluating the impact of adopting ASU 2024 - 03 on our consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023 - 09, “Income Taxes (Topic 740 ):

Improvements to Income Tax Disclosures,” which requires disclosure of specific categories in the rate reconciliation, including additional information for reconciling items that meet a quantitative threshold and specific disaggregation of income taxes paid and tax expense.

The amendment is effective for annual periods beginning after December 15, 2024.

Early adoption is permitted.

The Company is currently evaluating the impact of adoption of this standard on its consolidated financial statements and does not expect a material impact upon adoption.

In November 2023, the FASB issued ASU 2023 - 07, “Segment Reporting (Topic 280 ):

Improvements to Reportable Segment Disclosures,” which requires additional disclosure of significant segment expenses included in the reported measure of segment profit or loss and regularly provided to the Chief Operating Decision Maker.

This standard does not change how an entity identifies its operating segments or applies quantitative thresholds to determine its reportable segments The standard is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years beginning after December 15, 2024.

Early adoption is permitted.

The Company is currently evaluating the impact of adoption of this standard on its consolidated financial statements and does not expect a material impact upon adoption.

PROPERTY, PLANT AND EQUIPMENT, NET

11 unchanged sentences

$ 160,317 $ 159,730

Depreciation expense was $ 5.0 million and $ 4.6 million for the three months ended July 27, 2024 and July 29, 2023, respectively.

Property, plant and equipment included construction-in-progress in the amounts of $ 35.5 million and $ 32.5 million as of October 26, 2024, and April 27, 2024, respectively.

Depreciation expense was $ 5.0 million and $ 4.7 million for the three months ended October 26, 2024 and October 28, 2023, respectively.

Depreciation expense was $ 10.0 million and $ 9.3 million for the six months ended October 26, 2024 and October 28, 2023, respectively.

Depreciation expense is recorded in cost of sales and selling, general and administrative expenses.

The Company has entered into various non-cancelable operating lease agreements for certain offices, buildings and machinery and equipment which expire at various dates through May 2036.

1 unchanged sentence

Lease agreements generally do not contain material residual value guarantees or material restrictive covenants.

Operating lease costs were $ 4.1 million and $ 3.7 million for the three months ended July 27, 2024 and July 29, 2023, respectively.

As of July 27, 2024, the weighted-average remaining lease term and weighted average discount rate of operating leases was 4.69 years and 4.34 %, respectively.

Operating lease costs were $ 4.1 million and $ 4.0 million for the three months ended October 26, 2024 and October 28, 2023, respectively.

Operating lease costs were $ 8.3 million and $ 7.7 million for the six months ended October 26, 2024 and October 28, 2023, respectively.

As of October 26, 2024, the weighted-average remaining lease term and weighted average discount rate of operating leases was 4.57 years and 4.43 %, respectively.

As of April 27, 2024, the weighted-average remaining lease term and weighted average discount rate of operating leases was 4.80 years and 4.30 %, respectively.

Cash payments were $ 4.1 million and $ 3.7 million for operating leases for the three months ended July 27, 2024 and July 29, 2023, respectively.

The following is a summary of future minimum lease payments and related liabilities for all non-cancelable operating leases as of July 27, 2024:

Cash payments were $ 4.3 million and $ 4.1 million for operating leases for the three months ended October 26, 2024 and October 28, 2023, respectively.

Cash payments were $ 8.4 million and $ 7.8 million for operating leases for the six months ended October 26, 2024 and October 28, 2023, respectively.

The following is a summary of future minimum lease payments and related liabilities for all non-cancelable operating leases as of October 26, 2024:

(In thousands)

5 unchanged sentences

Non-current portion of lease obligations

At July 27, 2024, a subsidiary of the Company maintained unsecured revolving credit facilities with banks aggregating $ 100 million (the “Credit Facilities”).

The Credit Facilities expire from October 28, 2024 to May 30, 2025 and any borrowings would currently bear interest at 1.05 % above the Secured Overnight Financing Rate ( SOFR ).

There were no borrowings outstanding under the Credit Facilities at July 27, 2024 or April 27, 2024.

At July 27, 2024, $ 2.2 million of the Credit Facilities was reserved for standby letters of credit and $ 97.8 million was available for borrowings.

At October 26, 2024, a subsidiary of the Company maintained unsecured revolving credit facilities with banks aggregating $ 100 million (the “Credit Facilities”).

The Credit Facilities expire from May 30, 2025 to September 10, 2027 and any borrowings would currently bear interest at 1.15 % above the Secured Overnight Financing Rate (“ SOFR ”).

There were no borrowings outstanding under the Credit Facilities at October 26, 2024 or April 27, 2024.

At October 26, 2024, $ 2.2 million of the Credit Facilities was reserved for standby letters of credit and $ 97.8 million was available for borrowings.

On December 21, 2021, a subsidiary of the Company entered into an unsecured revolving term loan facility with a national bank aggregating $ 50 million (the “Loan Facility”).

There were no borrowings outstanding under the Loan Facility at July 27, 2024 or April 27, 2024.

There were no borrowings outstanding under the Loan Facility at October 26, 2024 or April 27, 2024.

The Loan Facility expires December 31, 2025 and any borrowings would bear interest at 1.15 % above the adjusted daily SOFR .

The Credit Facilities and Loan Facility require the subsidiary to maintain certain financial ratios, including debt to net worth and debt to EBITDA (as defined in the credit agreements), and contain other restrictions, none of which are expected to have a material effect on operations or financial position.

At July 27, 2024, the subsidiary was in compliance with all loan covenants.

STOCK OPTIONS

During the three months ended July 27, 2024, no options were granted, options to purchase 42,700 shares were exercised and options to purchase 4,200 shares were cancelled at weighted average exercise prices of $ 8.07 and $ 15.71 , respectively.

At July 27, 2024, options to purchase 253,000 shares at a weighted average exercise price of $ 28.54 per share were outstanding and stock-based awards to purchase 5,397,605 shares of common stock were available for grant.

At October 26, 2024, the subsidiary was in compliance with all loan covenants.

DERIVATIVE FINANCIAL INSTRUMENTS

4 unchanged sentences

The following summarizes the gains (losses) recognized in the Condensed Consolidated Statements of Income and AOCI:

(In thousands)

Three Months Ended

July 27, 2024

July 29, 2023

Six Months Ended

Recognized in AOCI:

Loss before income taxes

Income (loss) before income taxes

$ 10,420 $ ( 2,341 ) $ 3,222 $ ( 6,381 )

income tax benefit

income tax provision (benefit)

2,460 ( 560 ) 755 ( 1,526 )

1 unchanged sentence

Reclassified from AOCI to cost of sales:

Gain (loss) before income taxes

Loss before income taxes

( 409 ) ( 3,464 ) ( 1,141 ) ( 7,227 )

income tax provision (benefit)

income tax benefit

( 97 ) ( 828 ) ( 269 ) ( 1,728 )

( 312 ) ( 2,636 ) ( 872 ) ( 5,499 )

Net change to AOCI

$ 7,648 $ 855 $ 1,595 $ 644

As of July 27, 2024, the notional amount of our outstanding aluminum swap contracts was $ 102.0 million and, assuming no change in commodity prices, $ 1.7 million of unrealized loss before tax will be reclassified from AOCI and recognized in earnings over the next 12 months.

As of October 28, 2024, the notional amount of our outstanding aluminum swap contracts was $ 86.0 million and, assuming no change in commodity prices, $ 5.4 million of unrealized gain before tax will be reclassified from AOCI and recognized in earnings over the next 12 months.

The maximum length of time for which the Company hedges its exposure to the variability of future cash flows is less than three years.

As of July 27, 2024, the fair value of the short-term derivative liability was $ 1.9 million, which was included in accrued liabilities , the fair value of the long-term derivative liability was $ 0.7 million, which was included in other liabilities, and the fair value of the derivative asset was $ 0.4 million, of which $ 0.2 million was included in prepaids and other assets and $ 0.2 million in other assets.

As of April 27, 2024, the fair value of the derivative asset, which was included in prepaid and other assets , was $ 5.7 million.

As of October 28, 2024, the fair value of the derivative asset was $ 7.8 million, of which $ 5.4 million was included in prepaid and other assets and $ 2.4 million in other assets.

As of April 27, 2024, the fair value of the derivative asset, which was included in prepaid and other current assets , was $ 5.7 million.

Such valuation does not entail a significant amount of judgment and the inputs that are significant to the fair value measurement are Level 2 as defined by the fair value hierarchy as they are observable market based inputs or unobservable inputs that are corroborated by market data.

RELATED PARTIES

The Company is a party to a management agreement with Corporate Management Advisors, Inc.

(CMA), a corporation owned by our Chairman and Chief Executive Officer.

The management agreement provides that the Company will pay CMA an annual base fee equal to one percent of the consolidated net sales of the Company.

Management fees to CMA were $ 2.9 million and $ 3.0 million for the three months ended October 26, 2024 and October 28, 2023, respectively.

Management fees to CMA were $ 6.2 million and $ 6.3 million for the six months ended October 26, 2024 and October 28, 2023, respectively.

At October 26, 2024 and April 27, 2024, current liabilities included amounts due to CMA of $ 1.8 million and $ 3.0 million, respectively.

CASH DIVIDEND

22 unchanged sentences

RESULTS OF OPERATIONS

Three Months Ended July 27, 2024 (first quarter of fiscal 2025) compared to

Three Months Ended July 29, 2023 (first quarter of fiscal 2024)

Net sales for the first quarter of fiscal 2025 increased 1.6% to $329.5 million compared to $324.2 million for the first quarter of fiscal 2024.

The increase in sales resulted primarily from a 0.7% increase in case volume and a 0.7% increase in average selling price per case.

The increase in case volume primarily impacted carbonated soft drink brands, partially offset by a slight decrease in Power+ Brands.

Gross profit for the first quarter of fiscal 2025 increased to $122.4 million compared to $114.5 million for the first quarter of fiscal 2024.

The increase in gross profit was primarily due to a decline in packaging costs, the increase in average selling price per case and the increase in case volume.

The cost of sales per case decreased 1.9% and gross margin increased to 37.2% compared to 35.3% for the first quarter of fiscal 2024.

Selling, general and administrative expenses for the first quarter of fiscal 2025 increased $1.5 million to $52.9 million from $51.4 million for the first quarter of fiscal 2024.

The increase was primarily due to an increase in administrative and marketing costs, partially offset by a decrease in shipping costs.

As a percentage of net sales, selling, general and administrative expenses increased to 16.1% for the first quarter of fiscal 2025 compared to 15.8% for the first quarter of fiscal 2024.

Other income, net includes interest income of $4.3 million for the first quarter of fiscal 2025 and $1.8 million for the first quarter of fiscal 2024.

The increase in interest income is due primarily to increased average invested balances.

The Company’s effective income tax rate, based upon estimated annual income tax rates, was 23.1% for the first quarter of fiscal 2025 and 23.8% for the first quarter of fiscal 2024.

The difference between the effective rate and the federal statutory rate of 21% was primarily due to the effects of state income taxes, partially offset by excess tax benefits realized from stock options exercised.

Three Months Ended October 26, 2024 (second quarter of fiscal 2025) compared to

Three Months Ended October 28, 2023 (second quarter of fiscal 2024)

Net sales for the second quarter of fiscal 2025 decreased 3.0% to $291.2 million compared to $300.1 million for the second quarter of fiscal 2024.

The decrease in sales resulted primarily from a 4.6% decrease in case volume, partially offset by a 2.2% increase in average selling price per case.

The decrease in case volume impacted both Power + Brands and carbonated soft drink brands.

Gross profit for the second quarter of fiscal 2025 increased to $109.4 million compared to $107.9 million for the second quarter of fiscal 2024.

The increase in gross profit was primarily due to a decline in certain packaging costs and an increase in average selling price per case, partially offset by the decrease in case volume.

The average cost of sales per case decreased 0.3% and gross margin increased to 37.6% compared to 35.9% for the second quarter of fiscal 2024.

Selling, general and administrative expenses for the second quarter of fiscal 2025 decreased $2.1 million to $51.5 million from $53.6 million for the second quarter of fiscal 2024.

The decrease was primarily due to a decrease in marketing and shipping and handling costs.

As a percentage of net sales, selling, general and administrative expenses decreased to 17.7% for the second quarter of fiscal 2025 compared to 17.8% for the second quarter of fiscal 2024.

Other income, net includes interest income of $1.7 million for the second quarter of fiscal 2025 and $2.2 million for the second quarter of fiscal 2024.

The decrease in interest income is due primarily to lower average invested balances.

The Company’s effective income tax rate, based upon estimated annual income tax rates, was 23.4% for the second quarter of fiscal 2025 and 23.2% for the second quarter of fiscal 2024.

The difference between the effective rate and the federal statutory rate of 21% was primarily due to the effects of state income taxes.

Six Months Ended October 26, 2024 (first six months of fiscal 2025) compared to

Six Months Ended October 28, 2023 (first six months of fiscal 2024)

Net sales for the first six months of fiscal 2025 decreased 0.6% to $620.7 million from $624.3 million for the first six months of fiscal 2024.

The decrease in sales resulted primarily from a 1.8% decrease in case volume, partially offset by a 1.4% increase in average selling price per case.

The decrease in case volume impacted both Power+ Brands and carbonated soft drink brands.

Gross profit for the first six months of fiscal 2025 increased to $231.8 million from $222.3 million for the first six months of fiscal 2024.

The increase in gross profit was primarily due to a decline in certain packaging costs and an increase in average selling price per case, partially offset by the decrease in case volume.

The average cost of sales per case decreased 1.2% and gross margin increased to 37.3% compared to 35.6% for the first six months of fiscal 2024.

Selling, general and administrative expenses for the first six months of fiscal 2025 decreased $0.5 million to $104.4 million from $104.9 million for the first six months of fiscal 2024.

The decrease was primarily due to a decrease in marketing and shipping and handling costs.

As a percentage of net sales, selling, general and administrative expenses remained at 16.8% for both of the first six months of fiscal 2025 and fiscal 2024.

Other income, net includes interest income of $6.0 million for the first six months of fiscal 2025 and $4.0 million for the first six months of fiscal 2024.

The increase in interest income is due to increased average invested balances and higher yields.

The Company’s effective income tax rate, based upon estimated annual income tax rates, was 23.3% for the first six months of fiscal 2025 and 23.5% for the first six months of fiscal 2024.

The difference between the effective rate and the federal statutory rate of 21% was primarily due to the effects of state income taxes.

LIQUIDITY AND FINANCIAL CONDITION

1 unchanged sentence

Our principal sources of liquidity are our existing cash and cash-equivalents, cash generated from operations and borrowing capacity.

At July 27, 2024, we maintained unsecured revolving Credit Facilities and Loan Facility totaling $150 million, under which no borrowings were outstanding and $2.2 million was reserved for standby letters of credit.

At October 28, 2024, we maintained unsecured credit facilities totaling $150 million, under which no borrowings were outstanding and $2.2 million was reserved for standby letters of credit.

We believe existing capital resources will be sufficient to meet our liquidity and capital requirements for the next twelve months.

The Company’s cash position decreased $250.0 million for the first quarter of fiscal 2025 compared to an increase of $64.7 million for the first quarter of fiscal 2024 primarily due to the special cash dividend of $304.1 million paid on July 24, 2024.

Net cash provided by operating activities for the first quarter of fiscal 2025 was $57.5 million compared to $70.1 million for the first quarter of fiscal 2024.

For the first quarter of fiscal 2025, cash flow provided by operating activities decreased primarily due to increases in working capital excluding cash, partially offset by an increase in operating income and interest income.

Net cash used in investing activities for the first quarter of fiscal 2025 reflects capital expenditures of $3.7 million, compared to capital expenditures of $5.5 million for the first quarter of fiscal 2024.

The Company’s cash position decreased $214.2 million for the first six months of fiscal 2025 compared to an increase of $89.6 million for the first six months of fiscal 2024 primarily due to the special cash dividend of $304.1 million paid on July 24, 2024.

Net cash provided by operating activities for the first six months of fiscal 2025 was $100.1 million compared to $102.1 million for the first six months of fiscal 2024.

For the first six months of fiscal 2025, cash flow provided by operating activities decreased primarily due to increases in working capital excluding cash, partially offset by an increase in net income.

Net cash used in investing activities for the first six months of fiscal 2025 reflects capital expenditures of $10.6 million, compared to capital expenditures of $12.8 million for the first six months of fiscal 2024.

Certain production capacity and efficiency improvement projects are in progress and we anticipate fiscal 2025 capital expenditures will be in the range of $25 to $30 million.

Net cash used in financing activities for the first quarter of fiscal 2025 reflects the payments of a special dividend of $304.1 million.

Net cash used in financing activities for the first six months of fiscal 2025 reflects the payment of a special dividend of $304.1 million.

Financial Position

At July 27, 2024, working capital decreased to $145.7 million from $398.9 million at April 27, 2024.

The current ratio was 2.0 to 1 at July 27, 2024 compared to 3.9 to 1 at April 27, 2024.

At October 26, 2024, working capital decreased to $196.8 million from $398.9 million at April 27, 2024.

The current ratio was 2.5 to 1 at October 26, 2024 compared to 3.9 to 1 at April 27, 2024.

The decrease in working capital and current ratio was due primarily to the payment of the $304.1 million cash dividend.

Trade receivables increased $13.2 million and days sales outstanding increased to 32.0 from 31.5 days.

Trade receivables decreased $3.2 million and days sales outstanding decreased to 31.1 from 31.5 days.

Inventories increased $6.4 million and inventory turns declined to 8.2 times from 8.6 times.

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements