What’s going on with UTZ?
Utz Brands (UTZ) stock was up 1.43% after the snack maker said it will restate previously issued fiscal year 2020 financial statements and third fiscal quarter 2020 unaudited consolidated statements in connection with a previously announced SPAC combination. Shares of UTZ were trading at $29.78 per share on Wednesday afternoon.
The restatement was announced in a Current Report on Form 8-K filed with the SEC, and pertains to the accounting treatment for public warrants, forward purchase warrants and private placement warrants outstanding when Collier Creek Holdings and Utz Brands Holdings, LLC entered a business combination on Aug. 28, 2020.
What does this mean for Utz Brands?
“Consistent with market practice among SPACs, we had been accounting for the warrants as equity under a fixed accounting model,” Utz explained in a news release. “However, consistent with the SEC’s recently issued statement, we intend to restate historical financial statements such that the warrants are accounted for as liabilities and marked-to-market each reporting period.”
Due to the restatement and the increase in the stock price of Class A Common Stock, the company expects fiscal year 2020 non-operating expenses to be in the range of $90 million to $100 million. It wouldn’t impact previously reported net cash flow or adjusted EBITDA, although Utz Brands warned the estimates were subject to change as management finishes the restatement, and the company’s independent registered public accounting firm conducts an audit.
The company said it has 7.2 million private placement warrants outstanding, or one-third of the warrants originally issued.
UTZ has a Long-Term Technical Rank of 82. Find out what this means to you and get the rest of the rankings on UTZ!
Utz Brands Inc manufactures a diverse portfolio of salty snacks under popular brands including Utz, Zapp's, Golden Flake, Good Health, Boulder Canyon, Hawaiian, TORTIYAHS!, among others. The company's products include potato chips, pretzels, cheese snacks, pork skins, pub/party mixes, and veggie snacks. Its products are distributed nationally and internationally through grocery, mass merchant, club, convenience, drug, and other channels.
