ET today to discuss the results. Adjustments to reconcile net income to net cash provided by operating activities: Change in fair value of contingent consideration, Loss on write-off of construction in progress. The risks and uncertainties referred to above include, but are not limited to: (1) 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; (2) our expectations regarding our revenue, expenses and other operating results; (3) our ability to acquire new customers and successfully retain existing customers; (4) our ability to attract and retain our suppliers, distributors and co-manufacturers; (5) our ability to sustain or increase our profitability; (6) our ability to procure sufficient high quality eggs, butter and other raw materials; (7) real or perceived quality with our products or other issues that adversely affect our brand and reputation; (8) changes in the tastes and preferences of our consumers; (9) 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; (10) real or perceived quality or health issues with our products or other issues that adversely affect our brand and reputation; (11) the ability of our suppliers and co-manufacturers to comply with food safety, environmental or other laws or regulations; (12) future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements; (13) the costs and success of our marketing efforts, and our ability to promote our brand; (14) our reliance on key personnel and our ability to identify, recruit and retain skilled personnel; (15) our ability to effectively manage our growth; (16) our focus on a specific public benefit purpose and producing a positive effect for society may negatively influence our financial performance; (17) our ability to compete effectively with existing competitors and new market entrants; (18) the impact of adverse economic conditions; (19) the sufficiency of our cash to meet our liquidity needs and service our indebtedness; (20) seasonality; and (21) the growth rates of the markets in which we compete. Adjusted EBITDA is anticipated to be in the range of $14 to $16 million. Adjusted EBITDA is a financial measure that is not required by, or presented in accordance with GAAP. The increases were primarily due to higher net sales, with a portion of the increase in gross margin also attributable to lower costs associated with warehousing and transportation of inventory. Contacts:Media:Nisha DevarajanNisha.Devarajan@vitalfarms.com, Investors:Ashley DeSimoneAshley.DeSimone@icrinc.com. Adjusted EBITDA, was $9.3 million in the second quarter of 2020 compared to $4.4 million in the second quarter of 2019, primarily driven by expanded gross margin as well as leverage over fixed operating costs. Vital Farms' ethics are exemplified by its focus on the humane treatment of farm animals and sustainable farming practices. Cash and cash equivalents as of June 28, 2020 does not include the net proceeds from the Company’s IPO, nor does it reflect the Company’s payment in full of $1.9 million in outstanding borrowings under the Company’s equipment loan with PNC Bank, which were both completed after the end of the quarter. Update on COVID-19 and Fiscal 2020 Outlook. These risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission, including in the section entitled “Risk Factors” in our quarterly report on Form 10-Q for the fiscal quarter ended June 28, 2020 and other filings and reports that we may file from time to time with the SEC. Made In NYC | The following table presents a reconciliation of Adjusted EBITDA to net income, the most directly comparable financial measure stated in accordance with GAAP, for the quarters presented: Registration on or use of this site constitutes acceptance of our, Investors shouldn't hold their breath for pre-election stimulus, Goldman Sachs says », Mobile-video app Quibi is reportedly considering shutting down after only 6 months », Less: Net (loss) income attributable to noncontrolling interests, Net income attributable to Vital Farms, Inc. stockholders. Conference Call and Webcast DetailsThe Company will host a conference call and webcast at 4:30 p.m. authorized, issued, and outstanding as of December 29, 2019 and June 28, 2020, respectively; aggregate liquidation of $40,436 as of June 28, 2020 and December 29, 2019, Common stock, $0.0001 par value per share, 40,348,565 shares authorized as of June 28, 2020, and December 29, 2019; 31,683,486 and 31,429,898 shares issued as of June 28, 2020 and, December 29, 2019, respectively; 26,188,568 and 25,934,980 shares outstanding as of June 28, 2020, Treasury stock, at cost, 5,494,918 common shares as of June 28, 2020 and December 29, 2019, Total stockholders' equity attributable to Vital Farms, Inc. common stockholders, Total liabilities, redeemable noncontrolling interest, redeemable convertible preferred stock and stockholders' equity. For the full year 2020, management expects net revenue between $205 to $210 million, an increase of greater than 45% compared to 2019. About Vital Farms Vital Farms, a Certified B Corporation, offers a range of ethically produced pasture-raised foods nationwide. In light of these risks, uncertainties and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. On September 4, 2020, subsequent to the IPO, there were 39,432,161 shares of common stock outstanding. Income from operations in the second quarter of 2020 was $9.1 million compared to $3.9 million in the second quarter of the prior year. Started on a single farm in Austin, Texas, in 2007, Vital Farms is the leading U.S. brand of pasture-raised eggs and butter by retail dollar sales. These forward-looking statements are based on Vital Farms’ current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause Vital Farms’ actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement. Get detailed information on Vital Farms stock (NASDAQ: VITL), including today’s stock quote, real-time price, news, financials, charts and more. Subsequent to the quarter end, on August 4, 2020, the Company completed its initial public offering (“IPO”), in which it issued and sold 5,040,323 shares of common stock and certain of its stockholders offered and sold 5,659,250 shares of its common stock at a public offering price of $22.00 per share for net proceeds to the Company of approximately $99.5 million, after deducting underwriting discounts, commissions and estimated offering expenses. We believe that Adjusted EBITDA, when taken together with our financial results presented in accordance with GAAP, provides meaningful supplemental information regarding our operating performance and facilitates internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. Registration on or use of this site constitutes acceptance of our Terms of Service and Privacy Policy. Net revenue increased 84% to $59.3 million in the second quarter of 2020 compared to $32.3 million in the second quarter of 2019. Commerce Policy | The Company continues to expect to use the net proceeds from the IPO for general corporate purposes, including working capital, operating expenses and capital expenditures, including to further fund the completion of an expansion of its shell egg processing facility, Egg Central Station. Net cash provided by operating activities was $17.7 million in the quarter ended June 28, 2020, compared to $2.0 million during the prior year period. Russell Diez-Canseco, President and Chief Executive Officer of Vital Farms, commented, “We are pleased to report strong second quarter results following our successful IPO, driven in part by increased at-home consumption due to COVID-19. Gross profit was $22.7 million, or 38.3% of net revenue, in the second quarter of 2020, compared to $11.0 million, or 34.1% of net revenue, in the prior year period. We calculate Adjusted EBITDA as net income, adjusted to exclude: (1) depreciation and amortization; (2) provision for income taxes; (3) stock-based compensation expense; (4) interest expense; (5) interest expense; (6) change in fair value of contingent consideration; (7) interest income; and (8) net litigation settlement gain. Net income was $5.9 million in the second quarter of 2020 compared to $2.8 million in the prior year period.Net income per diluted share increased 100.0% to $0.16 compared to $0.08 per diluted share in the prior year quarter. Adjusted EBITDA is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Adjusted EBITDA is a non-GAAP financial measure defined under “Non-GAAP Financial Measures,” and is reconciled to net income, its closest comparable GAAP measure, at the end of this release. The live conference call can be accessed by dialing (833) 519-1345 from the U.S. or (914) 800-3907 internationally and using access code 9678986.