Company: UTZ
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001739566-25-000153
Chunk: 49

Company: Utz Brands, Inc.
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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-six weeks ended June 29, 2025 was $71.3 million, primarily driven by purchases of property and equipment. This compares to the cash provided by investing activity of $141.0 million for the twenty-six weeks ended June 30, 2024 primarily driven by proceeds from the Good Health and R.W. Garcia Sale of $167.5 million, and from sale of property and equipment primarily related to the Berlin, PA and Fitchburg, MA manufacturing facilities See Note 2. Divestitures.  This was partially offset by purchases of property and equipment as well as a purchase of intangibles related to an indefinite life intangible right for the use of a third-party brand name in the twenty-six weeks ended June 30, 2024.

Net cash provided by financing activities was $73.7 million for the twenty-six weeks ended June 29, 2025, primarily driven by net borrowings on line of credit, term debt and notes payable of $111.3 million, partially offset by the payment of dividends and distributions to noncontrolling interest holders, payments of employee stock awards tax withholdings and debt issuance costs. This compares to net cash used in financing activities of $126.2 million for the twenty-six weeks ended June 30, 2024, which was primarily related to the pay down of debt utilizing the proceeds from the Good Health and R.W. Garcia Sale.

Debt Covenants

The Company has a credit agreement with a syndicate of banks, led by Bank of America, N.A. ("Term Loan B").  The Term Loan B and the ABL facility are collateralized by substantially all of the assets and liabilities of UBH and its subsidiaries excluding the real estate assets secured by the Company's real estate term loan, including equity interests in certain of UBH’s subsidiaries. The credit agreements contain certain affirmative and negative covenants relating to the operations and financial condition of UBH and its subsidiaries. UBH and its subsidiaries were in compliance with their financial and other covenants under the credit agreements as of June 29, 2025. 

New Accounting Pronouncements

See Note 1. Operations and Summary of Significant Accounting Policies, to the unaudited consolidated financial statements contained in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Application of Critical Accounting Policies and Estimates

There were no changes to critical accounting policies and estimates from those disclosed in Critical Accounting Policies and Estimates under Part II. Item 7