National Beverage Corp. reported its financial results for the three months ended July 27, 2024, showing a modest increase in net sales and profitability compared to the same period in the previous fiscal year. Net sales reached $329.5 million, a 1.6% increase from $324.2 million in the prior year. The gross profit also improved, totaling $122.4 million, up from $114.5 million, resulting in a gross margin increase to 37.2% from 35.3%. Operating income rose to $69.5 million from $63.1 million, while net income increased to $56.8 million, compared to $49.6 million in the prior year, leading to earnings per share of $0.61, up from $0.53.

Despite these positive trends in sales and profitability, the company experienced significant declines in its cash position and total assets. Cash and cash equivalents fell sharply to $77.0 million from $327.0 million as of April 27, 2024. Total current assets decreased to $293.2 million from $536.9 million, and total assets dropped to $522.6 million from $770.2 million. Retained earnings also saw a decline, falling to $287.7 million from $535.1 million, and total shareholders' equity decreased to $306.6 million from $559.5 million.

The decrease in cash was primarily attributed to a special cash dividend of $304.1 million paid on July 24, 2024, which was declared on June 12, 2024, at $3.25 per share. This dividend significantly impacted the company's liquidity, as evidenced by a net cash decrease of $250.0 million during the quarter, contrasting with an increase of $64.7 million in the same quarter of the previous year.

Operating cash flow also declined, with net cash provided by operating activities at $57.5 million, down from $70.1 million, attributed to increases in working capital. The company reported a decrease in working capital to $145.7 million from $398.9 million, and the current ratio fell to 2.0 from 3.9.

In terms of operational costs, shipping and handling expenses decreased to $19.5 million from $20.9 million, while marketing costs rose to $11.5 million from $10.8 million. The company continues to focus on its product portfolio, which includes sparkling waters, juices, energy drinks, and carbonated soft drinks, primarily targeting the U.S. and Canadian markets.