Company: UTZ
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001739566-25-000153
Chunk: 106

Company: Utz Brands, Inc.
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 2
Chunk 106
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DA39.1 51.8 73.9 112.0 Certain Non-Cash Adjustments(2)5.4 4.9 11.1 8.9 Acquisitions, Divestitures and Investments(3)9.6 1.1 17.0 (37.3)Business Transformation Initiatives(4)7.1 4.5 14.5 10.3 Financing-Related Costs(5)— 0.3 0.8 0.3 Gain on Remeasurement of Warrant Liability(6) (12.5)(12.9)(23.5)(1.1)Adjusted EBITDA$48.7 $49.7 $93.8 $93.1 Net income as a % of Net Sales2.8 %7.1 %2.2 %4.0 %Adjusted EBITDA as a % of Net Sales13.3 %14.0 %13.0 %13.2 %

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(1)Interest Income (IO loans) refers to interest income that we earn from IO notes receivable that has resulted from our initiatives to transition from RSP distribution to IO distribution ("Business Transformation Initiatives"). There is a notes payable recorded that mirrors most of the IO notes receivable, and the interest expense associated with the notes payable is part of the Interest Expense, Net adjustment.

(2)Certain Non-Cash Adjustments are comprised primarily of the following:

Incentive programs – The Company incurred $2.7 million and $4.5 million of share-based compensation expense for awards to employees and directors, and compensation expense associated with the Omnibus Equity Incentive Plan (the "OEIP") for the thirteen weeks ended June 29, 2025 and June 30, 2024, respectively. The Company incurred $6.2 million and $8.4 million of share-based compensation expense for awards to employees and directors, and compensation expense associated with the OEIP for the twenty-six weeks ended June 29, 2025 and June 30, 2024, respectively.

Loss on impairment - The Company recorded an impairment charge of $0.6 million during the thirteen weeks ended June 29, 2025.

Purchase commitments and other adjustments – We have purchase commitments for specific quantities at fixed prices for certain of our products’ key ingredients. To facilitate comparisons