Company: UTZ
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001739566-25-000111
Chunk: 18

Company: Utz Brands, Inc.
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 Company sold to Our Home its Berlin, PA and Fitchburg, MA manufacturing facilities and certain related assets (the “Manufacturing Facilities Sale”). The Company and Our Home are operating under transition services agreements related to each of the Good Health and R.W. Garcia Sale and the Manufacturing Facilities Sale, which are scheduled to expire during the first half of 2025. In addition, the parties will operate under reciprocal co-manufacturing agreements pursuant to which Our Home will co-manufacture certain of the Company's products and the Company will co-manufacture certain Good Health products. Certain Good Health products will continue to be distributed and sold on the Company's DSD network for Our Home pursuant to a distribution agreement. The Company received approximately $18.7 million in advance from Our Home for certain terms under these agreements, which the Company will recognize through income from operations over the terms of the transition services and co-manufacturing agreements.

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3.INVENTORIES

Inventories consisted of the following:(in thousands)As of March 30, 2025As of December 29, 2024Finished goods$70,493 $66,976 Raw materials29,558 27,081 Maintenance parts7,525 7,305 Total inventories$107,576 $101,362 

4.PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment, net, consisted of the following:(in thousands)As of March 30, 2025As of December 29, 2024Land$25,769 $25,861 Buildings134,237 113,227 Machinery and equipment264,883 215,529 Land improvements2,688 2,655 Building improvements2,791 2,791 Construction-in-progress76,101 107,425  506,469 467,488 Less: accumulated depreciation(131,513)(122,278)Property, plant and equipment, net$374,956 $345,210 Depreciation expense was $9.4 million and $8.7 million for the thirteen weeks ended March 30, 2025 and March 31, 2024, respectively. Depreciation expense is included in Cost of goods sold and Selling, distribution, and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income (Loss).

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5.GOODWILL AND INTANGIBLE ASSETS, NET

A roll-forward of