What changed in this filing

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Item 1. Financial Statements

2026-09-10 compared with 2026-03-12 · 89 added, 129 removed, 311 unchanged (41% of the section changed)

52 unchanged sentences

( 5,100 ) ( 5,100 )

Common stock - 8,394,112 and 8,374,112 shares, respectively

Common stock - 8,394,112 shares

( 19,806 ) ( 19,806 )

9 unchanged sentences

Three Fiscal Months Ended

Nine Fiscal Months Ended

$ 330,662 $ 330,515

7 unchanged sentences

Other income, net

2,793 1,398 7,685 7,474

Income before income taxes

4 unchanged sentences

Earnings per common share:

$ .44 $ .42 $ 1.53 $ 1.52

Weighted average common shares outstanding:

7 unchanged sentences

Three Fiscal Months Ended

Nine Fiscal Months Ended

$ 47,004 $ 55,760

Other comprehensive income, net of tax:

Other comprehensive (loss) income, net of tax:

Cash flow hedges

8 unchanged sentences

Three Fiscal Months Ended

Nine Fiscal Months Ended

January 31, 2026

January 25, 2025

January 31, 2026

January 25, 2025

August 1, 2026

August 2, 2025

Series C Preferred Stock

4 unchanged sentences

Stock options exercised

- - 9 - 12 0 52 1

End of Period

5 unchanged sentences

Stock-based compensation expense

96 154 343 465

End of period

10 unchanged sentences

Beginning of period

10,915 6,506 5,604 4,911

Cash flow hedges, net of tax

1 unchanged sentence

End of period

9,414 6,743 9,414 6,743

Treasury Stock - Series C Preferred

2 unchanged sentences

Treasury Stock - Common

Beginning of Period

8,394 ( 19,806 ) 8,374 ( 19,133 ) 8,374 ( 19,133 ) 8,374 ( 19,133 )

Repurchase of common stock

- - - - 20 ( 673 ) - -

End of period

Beginning and end of period

8,394 ( 19,806 ) 8,374 ( 19,133 )

6 unchanged sentences

(In thousands)

Nine Fiscal Months Ended

Three Fiscal Months Ended

Operating Activities:

2 unchanged sentences

Depreciation and amortization

16,600 15,317

Non-cash operating lease expense

11,542 10,786

Deferred income taxes

3 unchanged sentences

( 1,466 ) ( 2,347 )

Prepaid and other assets

( 4,924 ) ( 8,807 )

Prepaid and other assets

Accounts payable

1 unchanged sentence

Accrued and other liabilities

( 2,796 ) ( 2,457 )

Operating lease liabilities

9 unchanged sentences

Financing Activities:

Proceeds from stock options exercised

Repurchase of common stock

Dividends paid on common stock

( 304,249 ) -

Proceeds from stock options exercised

Net cash used in financing activities

( 304,224 ) -

Net Increase (Decrease) in Cash and Cash Equivalents

Net (Decrease) Increase in Cash and Cash Equivalents

( 242,445 ) 55,996

6 unchanged sentences

Income taxes paid

$ 43,240 $ 46,501

Non-Cash Activities:

30 unchanged sentences

Fair Value of Financial Instruments

The carrying values of the Company’s financial instruments, including cash and cash equivalents, accounts receivable and accounts payable, approximate fair value due to the relatively short maturity of the respective instruments.

As of January 31, 2026 and May 3, 2025, cash and cash equivalents included money-market instruments of $ 166.4 million and $ 109.1 million, respectively.

The carrying values of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to the relatively short maturity of the respective instruments.

As of August 1, 2026 and May 2, 2026, cash and cash equivalents included money-market instruments of $ 56.4 million and $ 214.3 million, respectively.

These financial instruments are Level 1 as defined by the fair value hierarchy since they are based on quoted prices in active markets for identical assets and liabilities.

5 unchanged sentences

Trade Receivables, Net

The Company’s estimated allowances for credit losses as of both January 31, 2026 and May 3, 2025 were $ 1.2 million.

The Company’s trade receivable, net balances as of January 25, 2025 and April 27, 2024 were $ 90.9 million and $ 102.8 million, respectively.

The Company’s estimated allowances for credit losses were $ 1.2 million as of August 1, 2026 and May 2, 2026.

The Company’s trade receivable, net balances as of August 2, 2025 and May 3, 2025 were $ 106.5 million and $ 104.2 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 January 31, 2026 were comprised of finished goods of $ 58.5 million and raw materials of $ 37.6 million.

Inventories at August 1, 2026 were comprised of finished goods of $ 65.3 million and raw materials of $ 35.1 million.

Inventories at May 2, 2026 were comprised of finished goods of $ 60.4 million and raw materials of $ 35.1 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 $ 17.8 million and $ 17.5 million for the three fiscal months ended January 31, 2026 and January 25, 2025, respectively.

Shipping and handling costs were $ 55.9 million and $ 55.5 million for the nine fiscal months ended January 31, 2026 and January 25, 2025, respectively.

Such costs were $ 20.7 million and $ 19.8 million for the three fiscal months ended August 1, 2026 and August 2, 2025, 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 $ 10.0 million and $ 10.1 million for the three fiscal months ended January 31, 2026 and January 25, 2025, respectively.

Marketing costs were $ 34.6 million and $ 33.2 million for the nine fiscal months ended January 31, 2026 and January 25, 2025, respectively.

Marketing costs, which are included in selling, general and administrative expenses, were $ 14.4 million and $ 13.6 million for the three fiscal months ended August 1, 2026 and August 2, 2025, 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 that amounted to 33,000 and 74,000 shares for the three fiscal months ended January 31, 2026 and January 25, 2025, respectively.

The dilutive effect of stock options amounted to 57,000 and 82,000 shares for the nine fiscal months ended January 31, 2026 and January 25, 2025, respectively.

Diluted earnings per common share is calculated in a similar manner, but includes the dilutive effect of stock options amounting to 47,000 and 79,000 shares in the three fiscal months ended August 1, 2026 and August 2, 2025, respectively.

Recently Issued Accounting Pronouncements

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 reporting periods beginning after December 15, 2024.

The Company will adopt ASU 2023 - 09 on a prospective basis and anticipates the adoption will not have a material effect on its consolidated financial statements for its fiscal year ended May 2, 2026.

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

2 unchanged sentences

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

The Company is currently evaluating the impact of adopting ASU 2024 - 03 on its consolidated financial statements and related disclosures.

The Company is currently evaluating the impact of first adopting ASU 2024 - 03 on its annual consolidated financial statements and related disclosures that will be required for the fiscal year ended April 29, 2028.

In July 2025, the FASB issued ASU 2025 - 05, “Financial Instruments – Credit Losses (Topic 326 ):

Measurement of Credit Losses for Accounts Receivable and Contract Assets,” which requires disclosure of the election of a practical expedient that assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset when estimating expected credit losses.

The election of the practical expedient is permitted on a prospective basis.

The amendment is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods.

The Company adopted ASU 2025 - 05 effective for Fiscal 2027 on a prospective basis and elected the practical expedient.

The adoption did not have a material impact on its consolidated financial statements.

In November 2025, the FASB issued ASU 2025 - 09 to amend the guidance in “Derivatives and Hedging” (Topic 815 ).

The update provides targeted improvements intended to enhance the application of hedge accounting, including expanded eligibility of forecasted transactions, additional flexibility in measuring hedge effectiveness, and clarifications related to hedging non-financial items.

The guidance is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years, and adopted on a prospective basis.

Early adoption is permitted.

The Company does not expect a material impact upon adoption.

12 unchanged sentences

$ 178,909 $ 182,160

Machinery and equipment included construction-in-progress in the amounts of $ 33.8 million and $ 37.7 million as of January 31, 2026 and May 3, 2025, respectively.

Depreciation expense was $ 5.6 million and $ 4.9 million for the three fiscal months ended January 31, 2026 and January 25, 2025, respectively.

Depreciation expense was $ 16.4 million and $ 15.0 million for the nine fiscal months ended January 31, 2026 and January 25, 2025, respectively.

Machinery and equipment included construction-in-progress in the amounts of $ 20.2 million and $ 20.3 million as of August 1, 2026 and May 2, 2026, respectively.

Depreciation expense was $ 6.3 million and $ 5.3 million for the three fiscal months ended August 1, 2026 and August 2, 2025, 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 June 2037.

The Company has entered into various non-cancelable operating lease agreements for certain of its offices, buildings, machinery and equipment expiring at various dates through June 2037.

The Company does not assume renewals in the determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement.

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

Operating lease costs were $ 4.6 million and $ 4.2 million for the three fiscal months ended January 31, 2026 and January 25, 2025, respectively.

Operating lease costs were $ 13.8 million and $ 12.5 million for the nine fiscal months ended January 31, 2026 and January 25, 2025, respectively.

As of January 31, 2026, the weighted-average remaining lease term and weighted-average discount rate of operating leases was 5.48 years and 4.57 %, respectively.

Operating lease costs were $ 4.6 million for each of the three fiscal months ended August 1, 2026 and August 2, 2025.

As of August 1, 2026, the weighted-average remaining lease term and weighted average discount rate of operating leases was 5.24 years and 4.56 %, respectively.

As of May 2, 2026, the weighted-average remaining lease term and weighted average discount rate of operating leases was 5.37 years and 4.58 %, respectively.

Cash payments were $ 4.3 million and $ 3.9 million for operating leases for the three fiscal months ended January 31, 2026 and January 25, 2025, respectively.

Cash payments were $ 13.5 million and $ 12.3 million for operating leases for the nine fiscal months ended January 31, 2026 and January 25, 2025, respectively.

The following is a summary of future minimum lease payments and related liabilities for all non-cancelable operating leases as of January 31, 2026:

Cash payments were $ 4.8 million and $ 4.7 million for operating leases for the three fiscal months ended August 1, 2026 and August 2, 2025, respectively.

The following is a summary of future minimum lease payments and related liabilities for all non-cancelable operating leases as of August 1, 2026:

(In thousands)

Fiscal 2026 – Remaining quarter

Fiscal 2027 – Remaining 3 quarters

Total minimum lease payments including interest

3 unchanged sentences

Non-current portion of lease obligations

At January 31, 2026, a subsidiary of the Company maintained unsecured revolving credit facilities with banks aggregating $ 100 million (the “Credit Facilities”).

At August 1, 2026, a subsidiary of the Company maintained unsecured revolving credit facilities with banks aggregating $ 100 million (the “Credit Facilities”).

The Credit Facilities expire from September 10, 2027 to May 30, 2028 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 January 31, 2026 or May 3, 2025.

At January 31, 2026, $ 2.7 million of the Credit Facilities was reserved for standby letters of credit and $ 97.3 million was available for borrowings.

There were no borrowings outstanding under the Credit Facilities at August 1, 2026 or May 2, 2026.

At August 1, 2026, $ 2.7 million of the Credit Facilities was reserved for standby letters of credit and $ 97.3 million was available for borrowings.

A subsidiary of the Company also maintains 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 January 31, 2026 or May 3, 2025.

There were no borrowings outstanding under the Loan Facility at August 1, 2026 or May 2, 2026.

The Loan Facility expires December 31, 2027 and 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 the Company’s operations or financial position.

At January 31, 2026, the subsidiary was in compliance with all loan covenants.

At August 1, 2026, the subsidiary was in compliance with all loan covenants.

DERIVATIVE FINANCIAL INSTRUMENTS

From time to time, the Company enters into aluminum swap contracts to partially mitigate its exposure to changes in the cost of aluminum containers.

From time to time, we enter into aluminum swap contracts to partially mitigate our exposure to changes in the cost of aluminum containers.

Such financial instruments are designated and accounted for as cash flow hedges.

Accordingly, gains or losses attributable to the effective portion of the cash flow hedge are reported in accumulated other comprehensive income (loss) (“AOCI”) and reclassified into cost of sales in the period in which the hedged transaction affects earnings.

The ineffective portion of the change in fair value of our cash flow hedge was immaterial.

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

(In thousands)

The ineffective portion of the change in fair value of our cash flow hedges was immaterial.

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

Three Fiscal Months Ended

Nine Fiscal Months Ended

August 1, 2026

August 2, 2025

Recognized in AOCI:

Income before income taxes

(Loss) gain before income taxes

$ ( 7,660 ) $ 10,652

income tax provision

income tax (benefit) provision

( 1,808 ) 2,514

2 unchanged sentences

Gain before income taxes

8,496 1,395 20,470 2,536

income tax provision

2,005 330 4,830 598

6,491 1,065 15,640 1,938

Net change to AOCI

$ ( 10,878 ) $ 4,239

As of January 31, 2026, the notional amount of our outstanding aluminum swap contracts was $ 30.9 million and, assuming no change in commodity prices, $ 11.4 million of unrealized gain before tax will be reclassified from AOCI and recognized in earnings over the next 12 fiscal months.

The Company’s policy for the maximum length of time for which it may hedge exposure to the variability of future cash flows is three years.

As of August 1, 2026, the notional amount of our outstanding aluminum swap contracts was $ 108.2 million and, assuming no change in commodity prices, $ 2.3 million of unrealized gain before tax will be reclassified from AOCI and recognized in earnings over the next 12 months.

As of May 2, 2026, the notional amount of our outstanding aluminum swap contracts was $ 129.7 million.

The Company’s policy for the maximum length of time for which it hedges exposure to the variability of future cash flows is three years.

The Company is not subject to any legally enforceable master netting arrangements and does not offset fair value amounts recognized for derivative instruments.

As of January 31, 2026, the fair value of the derivative asset was $ 11.4 million, which was included in prepaid and other current assets.

As of May 3, 2025, the fair value of the derivative asset was $ 7.4 million, which was included in prepaid and other current assets, and the fair value of the derivative liability was $ 1.0 million, which was included in accrued liabilities .

As of August 1, 2026, the fair value of the derivative asset was $ 3.2 million, which was included in prepaid and other current assets, and the fair value of the derivative liability was $ 0.9 million which was included in accrued liabilities.

As of May 2, 2026, the fair value of the derivative asset was $ 16.5 million, of which $ 16.0 million was included in prepaid and other current assets and $ 0.5 million in other assets.

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.

3 unchanged sentences

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 $ 2.6 million and $ 2.7 million for the three fiscal months ended January 31, 2026 and January 25, 2025, respectively.

Management fees to CMA were $ 8.8 million and $ 8.9 million for the nine fiscal months ended January 31, 2026 and January 25, 2025, respectively.

At January 31, 2026 and May 3, 2025, accounts payable included amounts due to CMA of $ 1.7 million and $ 2.1 million, respectively.

Management fees to CMA were $ 3.3 million for each of the three fiscal months ended August 1, 2026 and August 2, 2025.

At August 1, 2026 and May 2, 2026, accounts payable included amounts due to CMA of $ 3.3 million and $ 3.0 million, respectively.

SEGMENT INFORMATION

1 unchanged sentence

The Company manages its business on a consolidated basis utilizing vertically integrated production facilities and a centralized supply chain infrastructure.

The Chief Operating Decision Maker (“CODM”) makes operating decisions, allocates resources and assesses financial performance based primarily upon consolidated operating income and net income as reported in the consolidated statements of income.

The Company considers the Chief Executive Officer and its President (assisted by staff) to be its Chief Operating Decision Maker ("CODM").

The CODM makes operating decisions, allocates resources and assesses financial performance based primarily upon consolidated net sales, operating income and net income as reported in the condensed consolidated statements of income.

The CODM also regularly reviews cost of sales, shipping and handling costs, and marketing costs.

These costs represent significant segment expenses and are reported elsewhere in the consolidated financial statements.

These costs represent significant segment expenses and are reported elsewhere in the condensed consolidated financial statements.

Other segment items include other selling and general administrative costs (primarily consisting of compensation-related and other overhead costs), other income (expense), net which includes interest income and interest expense, and provision for income taxes.

Depreciation and amortization expense is reported in the consolidated statements of cash flow.

The Board of Directors has authorized the Company to repurchase up to 3.2 million shares of its common stock.

During the nine fiscal months ended January 31, 2026, the Company repurchased 20,000 shares of its common stock at an average price per share of $ 33.65 for a total cost of $ 0.7 million.

As of January 31, 2026, 1,333,144 common shares were purchased under the program and 1,866,856 common shares were available for repurchase.

Depreciation and amortization expense is reported in the condensed consolidated statements of cash flow.

CASH DIVIDEND

On July 1, 2026 , the Company's board of directors declared a special cash dividend of $ 3.25 per share payable to shareholders of record on July 13, 2026 .

The special cash dividend of $ 304.2 million was paid on July 30, 2026 .

MANAGEMENT ’ S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

3 unchanged sentences

The majority of our brands are geared to the active and health-conscious consumer including sparkling waters, energy drinks and juices.

Our portfolio of Power+ Brands includes LaCroix® sparkling waters;

Our portfolio of Power+ Brands includes LaCroix® sparkling water;

Clear Fruit® non-carbonated water beverages enhanced with fruit flavor;

11 unchanged sentences

Our operating results are affected by numerous factors, including fluctuations in the costs of raw materials, supply chain disruptions, holiday and seasonal programming and weather conditions.

Beverage sales are seasonal with higher sales volume realized during the summer months.

Beverage sales are seasonal with higher sales volume realized during the summer months when outdoor activities are more prevalent.

RESULTS OF OPERATIONS

Three Fiscal Months Ended January 31, 2026 (third quarter of fiscal 2026) compared to

Three Fiscal Months Ended January 25, 2025 (third quarter of fiscal 2025)

Net sales for the third quarter of fiscal 2026 decreased 0.9% to $264.6 million from $267.1 million for the third quarter of fiscal 2025.

The decrease in sales resulted primarily from a 4.8% decrease in case volume, partially offset by a 4.4% 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 third quarter of fiscal 2026 increased to $99.6 million from $99.0 million for the third quarter of fiscal 2025 and gross margin increased to 37.6% from 37.1% The increase in gross margin was primarily due to the increase in average selling price per case, partially offset by increased packaging costs and the effects of reduced case volume.

The average cost of sales per case increased 3.4%.

Selling, general and administrative expenses for the third quarter of fiscal 2026 remained constant at $48.4 million for the third quarter of fiscal 2026 and fiscal 2025.

As a percentage of net sales, selling, general and administrative expenses increased to 18.3% for the third quarter of fiscal 2026 compared to 18.1% for the third quarter of fiscal 2025.

Other income, net includes interest income of $2.8 million for the third quarter of fiscal 2026 and $1.4 million for the third quarter of fiscal 2025.

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 23.6% for the third quarter of fiscal 2026 and 23.7% for the third quarter of fiscal 2025.

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

Nine Fiscal Months Ended January 31, 2026 (first nine months of fiscal 2026) compared to

Nine Fiscal Months Ended January 25, 2025 (first nine months of fiscal 2025)

Net sales for the first nine months of fiscal 2026 decreased 0.5% to $883.4 million from $887.7 million for the first nine months of fiscal 2025.

The decrease in sales resulted primarily from a 4.9% decrease in case volume, partially offset by a 4.7% 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 nine months of fiscal 2026 increased to $334.3 million from $330.7 million for the first nine months of fiscal 2025 and gross margin increased to 37.8% from 37.3%.

The increase in gross margin was primarily due to the increase in average selling price per case, partially offset by an increase in packaging and ingredient costs and the effects of reduced case volume.

The average cost of sales per case increased 3.7%

Selling, general and administrative expenses for the first nine months of fiscal 2026 increased $1.5 million to $154.3 million from $152.8 million for the first nine months of fiscal 2025.

The increase was primarily due to an increase in marketing and selling costs.

As a percentage of net sales, selling, general and administrative expenses increased to 17.5% for the first nine months of fiscal 2026 compared to 17.2% for the first nine months of fiscal 2025.

Other income, net includes interest income of $7.7 million for the first nine months of fiscal 2026 and $7.4 million for the first nine months of fiscal 2025.

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 23.6% for the first nine months of fiscal 2026 and 23.4% for the first nine months of fiscal 2025.

Three Fiscal Months Ended August 1, 2026 (first quarter of fiscal 2027) compared to

Three Fiscal Months Ended August 2, 2025 (first quarter of fiscal 2026)

Net sales for the first quarter of fiscal 2027 were $330.7 million compared to $330.5 million for the first quarter of fiscal 2026.

While average selling price per case increased by 7.1%, a 6.4% decline in case volume resulted in approximately flat sales.

Both Power+ Brands and carbonated soft drink brands were impacted by the selling price and volume changes.

Gross profit for the first quarter of fiscal 2027 was $115.8 million compared to $125.5 million for the first quarter of fiscal 2026.

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

The cost of sales per case increased 12.4%.

Gross margin was 35.0% compared to 38.0% for the first quarter of fiscal 2026.

Aluminum costs negatively affected gross margin by approximately 600 basis points.

Selling, general and administrative expenses for the first quarter of fiscal 2027 increased $2.6 million to $57.3 million from $54.7 million for the first quarter of fiscal 2026.

The increases resulted from higher shipping costs, due primarily to increased fuel costs, and higher marketing costs.

As a percentage of net sales, selling, general and administrative expenses increased to 17.3% for the first quarter of fiscal 2027 compared to 16.5% for the first quarter of fiscal 2026.

Other income, net includes interest income of $3.3 million for the first quarter of fiscal 2027 and $2.2 million for the first quarter of fiscal 2026.

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

The Company’s effective income tax rate, based upon estimated annual income tax rates, was 23.8% for the first quarter of fiscal 2027 and 23.6% for the first quarter of fiscal 2026.

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

2 unchanged sentences

The Company’s principal sources of liquidity are its existing cash and cash-equivalents, cash generated from operating activities and borrowing capacity.

At January 31, 2026, we maintained unsecured revolving Credit Facilities and the Loan Facility totaling $150 million, under which no borrowings were outstanding and $2.7 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 increased $120.1 million for the first nine months of fiscal 2026 compared to a decrease of $177.8 million for the first nine months of fiscal 2025 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 nine months of fiscal 2026 was $135.7 million compared to $146.6 million for the first nine months of fiscal 2025.

For the first nine months of fiscal 2026, cash flow provided by operating activities decreased primarily due to a net increase in working capital, excluding cash.

Net cash used in investing activities for the first nine months of fiscal 2026 reflects capital expenditures of $15.2 million, compared to capital expenditures of $20.8 million for the first nine months of fiscal 2025.

Certain production capacity and efficiency improvement projects are in progress and we anticipate fiscal 2026 capital expenditures will not exceed fiscal 2025 capital spending.

Net cash used in financing activities for the first nine months of fiscal 2026 primarily reflects the repurchase of common shares for $0.7 million.

At August 1, 2026, we maintained the unsecured revolving Credit Facilities and the Loan Facility totaling $150 million, under which no borrowings were outstanding and $2.7 million was reserved for standby letters of credit.

The Company’s cash position decreased $242.4 million for the first quarter of fiscal 2027 compared to an increase of $56.0 million for the first quarter of fiscal 2026 due primarily to the special cash dividend of $304.2 million paid on July 30, 2026.

Net cash provided by operating activities for the first quarter of fiscal 2027 was $64.9 million compared to $59.1 million for the first quarter of fiscal 2026.

For the first quarter of fiscal 2027, cash flow provided by operating activities increased primarily due to a net decrease in working capital, excluding cash, partially offset by the decrease in net income.

Net cash used in investing activities reflects capital expenditures of $3.1 million for each of the first quarters ended fiscal 2027 and fiscal 2026.

Certain packaging and efficiency improvement projects at our production facilities are in progress and we anticipate fiscal 2027 capital expenditures to be comparable to fiscal 2026 capital spending.

Net cash used in financing activities for the first quarter of fiscal 2027 reflects the payments of a special dividend of $304.2 million.

Financial Position

At January 31, 2026, working capital increased $149.6 million to $416.0 million from $266.4 million at May 3, 2025.

The current ratio was 4.4 to 1 at January 31, 2026 compared to 2.9 to 1 at May 3, 2025.

The increase in working capital and current ratio was due primarily to an increase in cash and cash equivalents of $120.1 million, a decrease in accounts payable and accrued liabilities of $19.6 million, and other net working capital increases of $9.8 million.

Trade receivables decreased $6.7 million and days sales outstanding increased to 33.5 days from 32.5 days.

At August 1, 2026, working capital was $190.6 million compared to $457.8 million at May 2, 2026.

The current ratio was 2.4 to 1 at August 1, 2026 compared to 4.4 to 1 at May 2, 2026.

The change in working capital and current ratio was due primarily to the payment of the $304.2 million cash dividend.

Trade receivables increased $1.5 million and days sales outstanding decreased to 29.1 days from 31.9 days.

Inventories increased $4.9 million and inventory turns decreased to 7.7 times from 8.2 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