Freshpet Inc (NASDAQ:FRPT) Q3 2019 Earnings Conference Call - Final Transcript

Nov 04, 2019 • 04:30 pm ET


Freshpet Inc (NASDAQ:FRPT) Q3 2019 Earnings Conference Call - Final Transcript


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Greetings and welcome to the Freshpet, Inc. Third Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]

It is now my pleasure to introduce your host, Katie Turner with ICR. Thank you, Ms. Turner, you may begin.

Katie Turner

Thank you. Good afternoon and welcome to Freshpet's third quarter 2019 earnings conference call and webcast. On today's call are Billy Cyr, Chief Executive Officer and Dick Kassar, our Chief Financial Officer. Scott Morris, Chief Operating Officer, will also be available for Q&A.

Before we begin, please remember that during the course of this call, management may make forward-looking statements within the meaning of the Federal Securities Laws. These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements.

Please refer to the company's Annual Report on Form 10-K filed with the Securities and Exchange Commission and the company's press release issued today for a detailed discussion of the risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today.

Please note that on today's call, management will refer to certain non-GAAP financial measures such as EBITDA and adjusted EBITDA among others. Although the company believes these non-GAAP financial measures provide useful information for investors, the presentation of this information is not intended to be considered in isolation or the substitute for the financial information presented in accordance with GAAP. Please refer to today's press release for a reconciliation of the non-GAAP financial measures to the most comparable measures prepared in accordance with GAAP.

Finally, the company has produced a presentation that contains many of the key metrics that will be discussed on this call. The presentation can be found on the company's Investor website. Management's commentary will not specifically refer to the presentation, rather it's a summary of the results they will discuss today.

Now I'd like to turn the call over to Billy Cyr, Chief Executive Officer.

William Cyr

Thank you, Katie and good afternoon everyone. To begin, I will provide an overview of our financial highlights and recent business performance and then Dick will provide greater detail on our financial results. Finally, Dick, Scott and I will be available to answer your questions.

We are very pleased with our third quarter results. We continued the top line momentum we have been delivering since we began our Feed the Growth plan almost three years ago, bounced back from the adjusted gross margin dip we experienced in Q2 and demonstrated the strong bottom line growth potential that comes with added scale. That is the essence of our strategy and it is working.

We have created a virtuous cycle, where increased advertising drives increased velocity, which drives increased distribution and that provides the added scale to both reinvest in the business and to also strengthen our bottom line.

Our strategy is also