vitl-10q_20200927.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 10-Q

 

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 27, 2020

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________ to ______________

Commission File Number: 001-39411

 

 

Vital Farms, Inc.

(Exact name of registrant as specified in its charter)

 

 

Delaware

27-0496985

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

 

 

3601 South Congress Avenue

Suite C100

Austin, Texas

 

78704

(Address of principal executive offices)

(Zip Code)

(877) 455-3063

(Registrant’s telephone number, including area code)

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock,  par value $0.0001 per share

 

VITL

 

The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes No

As of November 10, 2020, the registrant had 39,432,161 shares of common stock, $0.0001 par value per share, outstanding.

 

 

 

 


Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

 

Item 1.

Financial Statements (Unaudited)

 

 

Condensed Consolidated Balance Sheets

4

 

Condensed Consolidated Statements of Operations

5

 

Condensed Statements of Redeemable Convertible Preferred Stock, Redeemable Noncontrolling Interest and Stockholders’ Equity

6

 

Condensed Consolidated Statements of Cash Flows

8

 

Notes to Unaudited Condensed Consolidated Financial Statements

9

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

23

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

39

Item 4.

Controls and Procedures

40

PART II.

OTHER INFORMATION

41

Item 1.

Legal Proceedings

41

Item 1A.

Risk Factors

41

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

66

Item 3.

Defaults Upon Senior Securities

67

Item 4.

Mine Safety Disclosures

67

Item 5.

Other Information

67

Item 6.

Exhibits

68

 

Signatures

 

 

 

 

 

 

 

i


SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains “forward-looking statements” (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding our future results of operations or financial condition, business strategy and plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will” or “would” or the negative of these words or other similar terms or expressions. These forward-looking statements include, but are not limited to, statements concerning the following:

 

the effects of the current COVID-19 pandemic, or of other global outbreaks of pandemics or contagious diseases or fear of such outbreaks, including on our supply chain, the demand for our products, and on overall economic conditions and consumer confidence and spending levels;

 

our expectations regarding our revenue, expenses and other operating results;

 

our ability to acquire new customers and successfully retain existing customers;

 

our ability to attract and retain our suppliers, distributors and co-manufacturers;

 

our ability to sustain or increase our profitability;

 

our ability to procure sufficient high quality eggs, butter and other raw materials;

 

real or perceived quality with our products or other issues that adversely affect our brand and reputation;

 

changes in the tastes and preferences of our consumers;

 

the financial condition of, and our relationships with, our suppliers, co-manufacturers, distributors, retailers and foodservice customers, as well as the health of the foodservice industry generally;

 

real or perceived quality or health issues with our products or other issues that adversely affect our brand and reputation;

 

the ability of our suppliers and co-manufacturers to comply with food safety, environmental or other laws or regulations;

 

future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements;

 

the costs and success of our marketing efforts, and our ability to promote our brand;

 

our reliance on key personnel and our ability to identify, recruit and retain skilled personnel;

 

our ability to effectively manage our growth;

 

our focus on a specific public benefit purpose and producing a positive effect for society may negatively influence our financial performance;

 

our ability to compete effectively with existing competitors and new market entrants;

 

the impact of adverse economic conditions;

 

the sufficiency of our cash to meet our liquidity needs and service our indebtedness;

 

seasonality; and

 

the growth rates of the markets in which we compete.

You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. A summary of selected risks associated with our business are set forth below. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.

1


In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this Quarterly Report on Form 10-Q. And while we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.

The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.

Summary of Selected Risks Associated with Our Business

Our business is subject to numerous risks and uncertainties, including those discussed at length in the section titled “Risk Factors.” These risks include, among others, the following:

 

Our recent, rapid growth may not be indicative of our future growth, and if we continue to grow rapidly, we may not be able to effectively manage our growth or evaluate our future prospects. If we fail to effectively manage our future growth or evaluate our future prospects, our business could be adversely affected.

 

We have incurred net losses in the past and we may not be able to maintain or increase our profitability in the future.

 

Failure to introduce new products may adversely affect our ability to continue to grow.

 

We are dependent on the market for shell eggs.

 

Sales of pasture-raised shell eggs contribute the vast majority of our revenue, and a reduction in these sales would have an adverse effect on our financial condition.

 

Fluctuations in commodity prices and in the availability of feed grains could negatively impact our results of operations and financial condition.

 

If we fail to effectively expand our processing, manufacturing and production capacity as we continue to grow and scale our business, our business and operating results and our brand reputation could be harmed.

 

We are currently expanding Egg Central Station, and we may not successfully complete construction of or commence operations in this expansion, or the expanded facility may not operate in accordance with our expectations.

 

If we fail to effectively maintain or expand our network of small family farms, our business, operating results and brand reputation could be harmed.

 

Our future business, results of operations and financial condition may be adversely affected by reduced or limited availability of pasture-raised eggs and milk and other raw materials that meet our standards.

 

We currently have a limited number of co-manufacturers. Loss of one or more of our co-manufacturers or our failure to timely identify and establish relationships with new co-manufacturers could harm our business and impede our growth.

 

We could be adversely affected by a change in consumer preferences, perception and spending habits in the natural food industry and on animal-based products, in particular, and failure to develop or enrich our product offering or gain market acceptance of our new products could have a negative effect on our business.

 

A limited number of distributors represent the substantial majority of our sales, and the loss of one or more distributor relationships that cannot be replaced in a timely manner may adversely affect our results of operations.

 

We are dependent on hatcheries and pullet farms to supply our network of family farms with laying hens. Any disruption in that supply chain could materially and adversely affect our business, financial condition or results of operations.

 

We source substantially all of our shell egg cartons from a sole source supplier and any disruptions may impact our ability to sell our eggs.

 

Because we rely on a limited number of third-party vendors to manufacture and store our products, we may not be able to maintain manufacturing and storage capacity at the times and with the capacities necessary to produce and store our products or meet the demand for our products.

2


 

Our brand and reputation may be diminished due to real or perceived quality or food safety issues with our products, which could have an adverse effect on our business, reputation, operating results and financial condition.

 

All of our pasture-raised shell eggs are processed at Egg Central Station in Springfield, Missouri. Any damage or disruption at this facility may harm our business.

 

Demand for shell eggs is subject to seasonal fluctuations and can adversely impact our results of operations in certain quarters.

 

The COVID-19 pandemic could have a material adverse impact on our business, results of operations and financial condition.

 

Food safety and food-borne illness incidents or advertising or product mislabeling may materially and adversely affect our business by exposing us to lawsuits, product recalls or regulatory enforcement actions, increasing our operating costs and reducing demand for our product offerings.

 

Our operations are subject to FDA and USDA federal regulation, and there is no assurance that we will be in compliance with all regulations.

 

As a public benefit corporation, our duty to balance a variety of interests may result in actions that do not maximize stockholder value.

 

 

3


PART IFINANCIAL INFORMATION

 

VITAL FARMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share amounts)

 

 

 

September 27,

2020

 

 

December 29,

2019

 

 

 

(Unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

112,619

 

 

$

1,274

 

Accounts receivable, net

 

 

17,551

 

 

 

16,108

 

Inventories

 

 

11,728

 

 

 

12,947

 

Income taxes receivable

 

 

322

 

 

 

1,615

 

Prepaid expenses and other current assets

 

 

3,681

 

 

 

2,706

 

Total current assets

 

 

145,901

 

 

 

34,650

 

Property, plant and equipment, net

 

 

27,692

 

 

 

22,458

 

Notes receivable from related party

 

 

 

 

 

831

 

Goodwill

 

 

3,858

 

 

 

3,858

 

Deposits and other assets

 

 

142

 

 

 

151

 

Total assets

 

$

177,593

 

 

$

61,948

 

Liabilities, Redeemable Noncontrolling Interest, Redeemable

   Convertible Preferred Stock and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

16,052

 

 

$

13,510

 

Accrued liabilities

 

 

7,933

 

 

 

8,608

 

Current portion of long-term debt

 

 

1,104

 

 

 

2,160

 

Lease obligation, current

 

 

465

 

 

 

449

 

Contingent consideration, current

 

 

138

 

 

 

270

 

Income taxes payable

 

 

364

 

 

 

 

Total current liabilities

 

 

26,056

 

 

 

24,997

 

Long-term debt, net of current portion

 

 

6,480

 

 

 

2,896

 

Lease obligation, net of current portion

 

 

447

 

 

 

797

 

Contingent consideration, non-current

 

 

32

 

 

 

382

 

Deferred tax liabilities, net

 

 

2,137

 

 

 

755

 

Other liability, non-current

 

 

422

 

 

 

272

 

Total liabilities

 

 

35,574

 

 

 

30,099

 

Commitments and contingencies (Note 15)

 

 

 

 

 

 

 

 

Redeemable noncontrolling interest

 

 

175

 

 

 

175

 

Redeemable convertible preferred stock (Series B, Series C and Series D), $0.0001 par

   value per share; 0 and 8,192,876 shares authorized, issued, and outstanding as of September 27,

   2020 (unaudited) and December 29, 2019; aggregate liquidation preference of $0 and $40,436

   as of September 27, 2020 (unaudited) and December 29, 2019

 

 

 

 

 

23,036

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock, $0.0001 par value per share, 310,000,000 and 40,348,565 shares authorized as of September 27, 2020 (unaudited) and December 29, 2019; 39,432,161 and 31,429,898 shares issued as of September 27, 2020 (unaudited) and December 29, 2019, respectively; 39,432,161 and 25,934,980 shares outstanding as of September 27, 2020 (unaudited) and December 29, 2019, respectively

 

 

5

 

 

 

3

 

Treasury stock, at cost, 5,494,918 common shares as of September 27, 2020

   (unaudited) and December 29, 2019

 

 

(16,276

)

 

 

(16,276

)

Additional paid-in capital

 

 

143,265

 

 

 

19,593

 

Retained earnings

 

 

14,825

 

 

 

5,239

 

Total stockholders’ equity attributable to Vital Farms, Inc. stockholders

 

 

141,819

 

 

 

8,559

 

Noncontrolling interests

 

 

25

 

 

 

79

 

Total stockholders’ equity

 

$

141,844

 

 

$

8,638

 

Total liabilities, redeemable noncontrolling interest, redeemable

   convertible preferred stock and stockholders’ equity

 

$

177,593

 

 

$

61,948

 

 

See accompanying notes to the unaudited condensed consolidated financial statements.

4


VITAL FARMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except share and per share data)

(Unaudited)

 

 

 

13-Weeks Ended

 

 

39-Weeks Ended

 

 

 

September 27,

2020

 

 

September 29,

2019

 

 

September 27,

2020

 

 

September 29,

2019

 

Net revenue

 

$

53,367

 

 

$

34,082

 

 

$

160,287

 

 

$

99,312

 

Cost of goods sold

 

 

35,017

 

 

 

23,484

 

 

 

103,384

 

 

 

66,208

 

Gross profit

 

 

18,350

 

 

 

10,598

 

 

 

56,903

 

 

 

33,104

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

12,185

 

 

 

7,069

 

 

 

31,832

 

 

 

16,991

 

Shipping and distribution

 

 

3,752

 

 

 

2,345

 

 

 

10,693

 

 

 

6,757

 

Total operating expenses

 

 

15,937

 

 

 

9,414

 

 

 

42,525

 

 

 

23,748

 

Income from operations

 

 

2,413

 

 

 

1,184

 

 

 

14,378

 

 

 

9,356

 

Other (expense) income, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(110

)

 

 

(85

)

 

 

(365

)

 

 

(250

)

Other (expense) income, net

 

 

(21

)

 

 

47

 

 

 

(182

)

 

 

1,369

 

Total other (expense) income, net

 

 

(131

)

 

 

(38

)

 

 

(547

)

 

 

1,119

 

Net income before income taxes

 

 

2,282

 

 

 

1,146

 

 

 

13,831

 

 

 

10,475

 

Provision for income taxes

 

 

620

 

 

 

323

 

 

 

4,300

 

 

 

2,839

 

Net income

 

 

1,662

 

 

 

823

 

 

 

9,531

 

 

 

7,636

 

Less: Net (loss) income attributable to

   noncontrolling interests

 

 

(15

)

 

 

(6

)

 

 

(54

)

 

 

950

 

Net income attributable to Vital Farms, Inc. common

   stockholders

 

$

1,677

 

 

$

829

 

 

$

9,585

 

 

$

6,686

 

Net income per share attributable to Vital Farms, Inc.

   stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

$

0.05

 

 

$

0.03

 

 

$

0.33

 

 

$

0.26

 

Diluted:

 

$

0.04

 

 

$

0.02

 

 

$

0.29

 

 

$

0.18

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

 

34,044,994

 

 

 

25,929,923

 

 

 

28,664,914

 

 

 

26,197,567

 

Diluted:

 

 

39,111,018

 

 

 

37,472,406

 

 

 

33,275,902

 

 

 

36,959,507

 

 

See accompanying notes to the unaudited condensed consolidated financial statements

 

 

5


VITAL FARMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK , REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY

(Amounts in thousands, except share amounts)

(Unaudited)

 

 

 

Redeemable

Convertible

Preferred Stock

 

 

Redeemable

Noncontrolling

Interest

 

 

 

Common

Stock

 

 

Treasury

Stock

 

 

 

 

 

 

 

 

 

 

Total

Stockholders’

Equity

Attributable

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Additional

Paid-In

Capital

 

 

Retained

Earnings

 

 

to Vital

Farms, Inc.

Stockholders’

 

 

Noncontrolling

Interests

 

 

Total

Stockholders’

Equity

 

Balances at December 29, 2019

 

 

8,192,876

 

 

$

23,036

 

 

$

175

 

 

 

 

31,429,898

 

 

$

3

 

 

 

(5,494,918

)

 

$

(16,276

)

 

$

19,593

 

 

$

5,239

 

 

$

8,559

 

 

$

79

 

 

$

8,638

 

Exercise of stock options

 

 

 

 

 

 

 

 

 

 

 

 

7,588

 

 

 

 

 

 

 

 

 

 

 

 

10

 

 

 

 

 

 

10

 

 

 

 

 

 

10

 

Stock-based compensation

   expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

448

 

 

 

 

 

 

448

 

 

 

 

 

 

448

 

Net loss attributable to non-

   controlling interests -

   stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(11

)

 

 

(11

)

Net income attributable to

   Vital Farms, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,945

 

 

 

1,945

 

 

 

 

 

 

1,945

 

Balances at March 29, 2020

 

 

8,192,876

 

 

$

23,036

 

 

$

175

 

 

 

 

31,437,486

 

 

$

3

 

 

 

(5,494,918

)

 

$

(16,276

)

 

$

20,051

 

 

$

7,184

 

 

$

10,962

 

 

$

68

 

 

$

11,030

 

Exercise of stock options

 

 

 

 

 

 

 

 

 

 

 

 

49,200

 

 

 

 

 

 

 

 

 

 

 

 

160

 

 

 

 

 

 

160

 

 

 

 

 

 

160

 

Exercise of warrant

 

 

 

 

 

 

 

 

 

 

 

 

196,800

 

 

 

 

 

 

 

 

 

 

 

 

282

 

 

 

 

 

 

282

 

 

 

 

 

 

282

 

Stock-based compensation

   expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

296

 

 

 

 

 

 

296

 

 

 

 

 

 

296

 

Net loss attributable to non-

   controlling interests -

   stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(28

)

 

 

(28

)

Net income attributable to

   Vital Farms, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,964

 

 

 

5,964

 

 

 

 

 

 

5,964

 

Balances at June 28, 2020

 

 

8,192,876

 

 

$

23,036

 

 

$

175

 

 

 

 

31,683,486

 

 

$

3

 

 

 

(5,494,918

)

 

$

(16,276

)

 

$

20,789

 

 

$

13,148

 

 

$

17,664

 

 

$

40

 

 

$

17,704

 

Issuance of common stock pursuant to initial public offering,

   net of issuance costs of 12,215

 

 

 

 

 

 

 

 

 

 

 

 

5,040,323

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

98,670

 

 

 

 

 

 

98,671

 

 

 

 

 

 

98,671

 

Issuance of common stock upon conversion of preferred stock

 

 

(8,192,876

)

 

 

(23,036

)

 

 

 

 

 

 

8,192,876

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

23,035

 

 

 

 

 

 

23,036

 

 

 

 

 

 

23,036

 

Exercise of stock options

 

 

 

 

 

 

 

 

 

 

 

 

10,394

 

 

 

 

 

 

 

 

 

 

 

 

34

 

 

 

 

 

 

34

 

 

 

 

 

 

34

 

Stock-based compensation

   expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

737

 

 

 

 

 

 

737

 

 

 

 

 

 

737

 

Net loss attributable to non-

   controlling interests -

   stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(15

)

 

 

(15

)

Net income attributable to

   Vital Farms, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,677

 

 

 

1,677

 

 

 

 

 

 

1,677

 

Balances at September 27, 2020

 

 

 

 

$

 

 

$

175

 

 

 

 

44,927,079

 

 

$

5

 

 

 

(5,494,918

)

 

$

(16,276

)

 

$

143,265

 

 

$

14,825

 

 

$

141,819

 

 

$

25

 

 

$

141,844

 

 

See accompanying notes to the unaudited condensed consolidated financial statements.

6


VITAL FARMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY

(Amounts in thousands, except share amounts)

(Unaudited)

 

 

 

Redeemable

Convertible

Preferred Stock

 

 

Redeemable

Noncontrolling

Interest

 

 

Common

Stock

 

 

Treasury

Stock

 

 

 

 

 

 

 

 

 

 

Total

Stockholders’

Equity

Attributable

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Additional

Paid-In

Capital

 

 

Retained

Earnings

 

 

to Vital

Farms, Inc.

Stockholders’

 

 

Noncontrolling

Interests

 

 

Total

Stockholders’

Equity

 

Balances at December 30, 2018

 

 

8,192,876

 

 

$

23,036

 

 

$

175

 

 

 

28,461,978

 

 

$

3

 

 

 

(2,642,148

)

 

$

(1,987

)

 

$

4,245

 

 

$

2,854

 

 

$

5,115

 

 

$

(848

)

 

$

4,267

 

Issuance of common stock, net of

   issuance costs of $497

 

 

 

 

 

 

 

 

 

 

 

1,407,506

 

 

 

 

 

 

 

 

 

 

 

 

7,003

 

 

 

 

 

 

7,003

 

 

 

 

 

 

7,003

 

Stock-based compensation

   expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

143

 

 

 

 

 

 

143

 

 

 

 

 

 

143

 

Net income attributable to non-

   controlling interests -

   stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

967

 

 

 

967

 

Net income attributable to Vital

   Farms, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,058

 

 

 

3,058

 

 

 

 

 

 

3,058

 

Balances at March 31, 2019

 

 

8,192,876

 

 

$

23,036

 

 

$

175

 

 

 

29,869,484

 

 

$

3

 

 

 

(2,642,148

)

 

$

(1,987

)

 

$

11,391

 

 

$

5,912

 

 

$

15,319

 

 

$

119

 

 

$

15,438

 

Issuance of common stock, net of

   issuance costs of $406

 

 

 

 

 

 

 

 

 

 

 

1,407,506

 

 

 

 

 

 

 

 

 

 

 

 

7,094

 

 

 

 

 

 

7,094

 

 

 

 

 

 

7,094

 

Exercise of stock options

 

 

 

 

 

 

 

 

 

 

 

147,840

 

 

 

 

 

 

 

 

 

 

 

 

218

 

 

 

 

 

 

218

 

 

 

 

 

 

218

 

Repurchase of common

   stock