Sunday, December 18, 2016

Stock Circles Announces the Beta Release of its Smart Auto-Trading Application to TradeKing® Customers

Los Angeles, CA: StockCircles announces the beta release of its Smart Auto-Trading application to TradeKing® customers.
The new application ‘trades on the news’ by using street sentiment and market data to screen and auto-trade elite stocks”, says Clemons, Stock Circles CMO. “The new application was trained over the course of 2 years to identify trading opportunities and to auto-trade elite stocks."
"We are very happy with the results we are seeing", said Clemons. "The application simplifies stock investing to a few steps. It truly lowers the barrier to entry for customers interested in short-term stock investing."
Stock Circles’ management anticipates that Fintech innovations like Smart Auto-Trading will eventually replace personal investment workflows. “This technology virtually eliminates the need to pay someone to watch over your portfolio", says Clemons. "With this innovation, gone are the days of staring at a Bloomberg terminal for the purpose of identifying trading opportunities."
If you are interested in short-term stock investing or just curious about how this innovation can help you become a better investor, you can try Stock Circles Smart Auto-Trading in simulation mode at "Best of all, it's free" says Clemons.
New robot ‘trades on the new’,
copyrights Stock Circles Inc. 2017

About Stock Circles

Stock Circles is a Los Angeles software company with the mission to simplify stock investing. For further information, please contact Ms. Clemons via email at:
Artificial Intelligence robot ‘trades on the new’,
copyrights Stock Circles Inc. 2017

About TradeKing

TradeKing provides and facilitates application program interface (API) access for third-party software developers. TradeKing account holders may log into their TradeKing account when utilizing a third-party site that has incorporated the TradeKing API. The API allows for those customers to connect their account to the third-party provider and integrate third-party tools with their TradeKing account. TradeKing is not affiliated with, does not sponsor, is not sponsored by, does not endorse, and is not endorsed by the third-party developers and their products that utilize the TradeKing API.

Saturday, December 10, 2016

Casey's Shareholder Letter - 2nd Quarter of Fiscal 2017

A recent investor (below) letter from Casey's:

Ankeny, IA, December 7, 2016—Casey's General Stores, Inc. (Nasdaq symbol CASY) today reported diluted earnings per share of $1.44 for the second quarter of fiscal 2017 ended October 31, 2016, compared to $2.00 per share for the same quarter a year ago. Year to date, diluted earnings per share were $3.14 versus $3.57 a year ago. "The second quarter fuel margin was 6.1 cents per gallon lower than the 24.7 cents per gallon record quarterly fuel margin from a year ago, which impacted the second quarter diluted earnings by approximately $0.52 per share," said Terry Handley, President and CEO. "For the second quarter, gross profit dollars excluding fuel were up 7.5% and total fuel gallons sold increased 7.1%. Given the ongoing challenges in the broader convenience and food service industries, we are pleased with the performance of our stores. In addition, we are well-positioned for future expansion as the number of sites under contract for new-store construction has grown to 84, which is nearly double from a year ago."

—The Company's annual goal for fiscal 2017 is to increase same-store gallons sold 2.0% with an average margin of 18.4 cents per gallon. For the quarter, same-store gallons sold were up 3.7% with an average margin above goal at 18.6 cents per gallon. "Same-store gallons sold for the quarter were well ahead of the annual goal as retail fuel prices remained low and the fuel saver programs continued to drive incremental gallon sales," said Handley. "Fuel margin per gallon for the quarter was lower than the same quarter in the prior year due to decreased volatility in wholesale fuel costs." The Company sold 17.8 million renewable fuel credits for $15.9 million during the second quarter. For the six months ended October 31, 2016, total gallons sold were up 7.0% to 1.1 billion gallons. Gross profit dollars for the same time period were down 3.3% to $203.5 million primarily due to a lower margin. Year to date, same-store sales were up 3.3% with an average margin of 19.1 cents per gallon.

Grocery & Other Merchandise
—Casey's annual goal for fiscal 2017 is to increase same-store sales 6.2% with an average margin of 32.0%. For the quarter, same-store sales were up 3.1% with an average margin of 32.0%. "A slowing of in-store traffic and tightening of consumer spending caused by the ongoing pressures in our operating area adversely impacted same-store sales throughout the quarter," said Handley. "However, the Company continues to be an industry leader in same-store sales growth of many key products within the category, including cigarettes." Year to date, same-store sales were up 3.8% with an average margin of 31.8%. Total sales for the first six months were up 6.5% to $1.1 billion while total gross profit dollars increased 5.8% to $353.7 million.

Prepared Food & Fountain
—The goal for fiscal 2017 is to increase same-store sales 10.2% with an average margin of 62.5%. Same-store sales for the quarter were up 5.1% with an average margin of 62.9%. "Consistent with reports from other food service operators, we continued to experience a softening of in-store traffic that resulted in same-store sales below our annual goal. Total sales for the second quarter were up 8.3%, while our same-store sales remained consistent with first quarter results," said Handley. "The growth programs continue to provide strong sales lifts, and we are encouraged by the growth in sales coming from on-line orders." Year to date, total prepared food and fountain sales were up 8.7% to $492 million, and total gross profit dollars were up 8.5% to $309.4 million. For the first six months, same-store sales were up 5.1% with an average margin of 62.9%.

Operating Expenses
—In the second quarter, operating expenses increased 10.2% to 295.3 million. Year to date, operating expenses increased 10.5% to $587.4 million. "Both the quarter-to-date and year-to-date increases were in-line with our expectations, and primarily driven by an increase in wages due to operating more stores this year compared to the same period one year ago, the continued rollout of the various growth programs, and wage rate increases," said Handley. "The Company remains committed to offering competitive wages and benefits in an effort to be the employer of choice in our industry." Store-level operating expenses for the quarter were up 4.9% at stores not impacted by growth programs.
Expansion—The Company's annual goal for fiscal 2017 is to build or acquire 77 to 116 stores, replace 35 existing locations, and complete 100 major remodels. Through six months, the Company built and opened 11 new stores, acquired six stores, completed 12 replacements, and remodeled 24 stores. In addition, the Company currently has 39 new stores, 22 replacement stores, and 37 major remodel stores under construction. Finally, the Company has 84 sites under contract for future new store construction and 15 acquisition stores under contract to purchase. "We have made strides in ramping up store growth as the number of sites under contract for new builds continues to accelerate," said Handley. "There has been increased dialogue with acquisition targets compared to a year ago; however, we will remain disciplined in our evaluation of these opportunities. We are excited about the Company's future growth."

Dividend— At its December meeting, the Board of Directors declared a quarterly dividend of $0.24 per share. The dividend is payable February 15, 2017 to shareholders of record on February 1, 2017.

Certain statements in this news release, including any discussion of management expectations for future periods, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from future results expressed or implied by those statements. Casey's disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.

Corporate information is available at this Web site: Earnings will be reported during a conference call on December 8, 2016. The call will be broadcast live over the Internet at 9:30 a.m. CST via the Investor Relations section of our Web site and will be available in an archived format.

Thursday, December 8, 2016

Wheely's Cafe

Are you interested in having your own Cafe or coffee-shop? Interested in the food truck concept? I recently found a site that will help in moving you to your dream. Check them out today.
 Wheelys Café
 Revolutionary mobile coffee shop has taken the world by storm. 72 countries! Start your own café for $7999

Friday, November 11, 2016

Gores Holdings, Inc. Completes Acquisition of Hostess Brands, LLC, Maker of Twinkies®

LOS ANGELES--(BUSINESS WIRE)--Gores Holdings, Inc. (“Gores Holdings”) (NASDAQ CM: GRSHU, GRSH, GRSHW), a special purpose acquisition company sponsored by an affiliate of The Gores Group, LLC (“The Gores Group” or “Gores”), today announced that it completed the acquisition of Hostess Brands, LLC (“Hostess Brands”), the maker of Hostess® Twinkies®, Ding Dongs® and CupCakes. The transaction has been unanimously approved by the Boards of Directors of both Gores Holdings and the indirect parent of Hostess Brands, and was approved at a special meeting of Gores Holdings’ shareholders on November 3, 2016. In connection with the transaction, Gores Holdings has been renamed Hostess Brands, Inc. (“Hostess” or “the Company”), and its common stock and warrants will trade on NASDAQ under the symbols “TWNK” and “TWNKW”, respectively.
As previously announced, along with the $375 million of Gores Holdings’ shareholder equity, additional investors comprising large institutional investors, C. Dean Metropoulos (through $50 million of additional rollover contribution) and Gores affiliates participated in a $350 million private placement, led by Alec Gores, Chairman and CEO of The Gores Group. Additionally, funds managed by affiliates of Apollo Global Management, LLC (together with its consolidated subsidiaries, “Apollo”) (NYSE: APO) and C. Dean Metropoulos and family, the prior majority owners of Hostess, will continue to hold an approximately 42% combined stake in the Company. Dean Metropoulos and William Toler continue to lead Hostess as Executive Chairman and Chief Executive Officer, respectively.
Dean Metropoulos, Executive Chairman of Hostess, stated, “We are excited to introduce Hostess as a public company and I am extremely proud of the job our team has done in repositioning and growing Hostess during the past four years. I believe the Company has strong growth potential and can think of no one better to partner with in this next journey than Alec Gores and the Gores team who have a well-earned reputation for not only identifying, but adding value to the businesses with which they affiliate.”
Alec Gores, Chairman and CEO of The Gores Group, said, “Hostess and its best-known product are the epitome of American icons. Dean, Bill and their team have done an outstanding job of positioning the Company for future, profitable growth. We are thrilled to be part of the next stage in this Company’s life and look forward to helping create value for our shareholders.”
Andrew Jhawar, Senior Partner and Head of the Consumer & Retail Group at Apollo, added, “Hostess has many exciting levers for continued growth going forward, and the Company is well positioned given its strong leadership, dedicated team members and loyal customer base. Becoming a public company is the next evolution in the revitalization of Hostess. Our team at Apollo looks forward to working with the Gores team, the Company’s new Board members and Dean, Bill and the rest of the management team in assisting to drive profitable growth and future shareholder value at Hostess.”
In 2013, C. Dean Metropoulos and certain funds affiliated with Apollo acquired select Hostess assets out of the liquidation of the old Hostess Brands company. That summer, they returned Hostess products to store shelves after a months-long absence in what became one of the biggest news stories of the year. Since that time, the management team has successfully rebuilt the business and the brand through investments to enhance operations, creative product innovation, expanded distribution through a direct-to-warehouse system, targeted acquisitions and a competitive business model. Hostess had revenues for the twelve months ended June 30, 2016 of approximately $658 million and operates five baking facilities located in Emporia, KS, Indianapolis, IN, Columbus, GA and Southbridge, MA.
Upon completion of the transaction, the Hostess Board of Directors consists of Dean Metropoulos, Mark Stone, Andrew Jhawar, Larry Bodner, Neil Defeo, Jerry Kaminski and Craig Steeneck.
Deutsche Bank Securities Inc. acted as lead capital markets advisor and financial advisor, Moelis & Company and Morgan Stanley acted as joint-capital markets advisors and Weil, Gotshal & Manges LLP acted as legal advisor to Gores Holdings. Rothschild Inc., Credit Suisse Securities (USA) LLC and Perella Weinberg Partners LP acted as M&A advisors to Hostess Brands. Morgan, Lewis & Bockius LLP acted as legal advisor to Apollo and Hostess Brands. Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal advisor and UBS acted as financial advisor to Dean Metropoulos and his family.
About Hostess Brands, Inc.
Hostess is one of the largest packaged food companies focused on developing, manufacturing, marketing, selling and distributing fresh baked sweet goods in the United States. The brand’s history dates back to 1919, when the Hostess CupCake was introduced to the public, followed by Twinkies® in 1930. Today, Hostess produces a variety of new and classic treats including Ding Dongs®, Ho Hos®, Donettes® and Fruit Pies, in addition to Twinkies® and CupCakes.
For more information about Hostess products and Hostess Brands, please visit Follow Hostess on Twitter: @Hostess_Snacks; on Facebook:; on Instagram: Hostess_Snacks; and on Pinterest:
About Gores Holdings, Inc.
Gores Holdings is a special purpose acquisition company sponsored by an affiliate of The Gores Group, for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. Gores Holdings completed its initial public offering in August 2015, raising approximately $375 million in cash proceeds. Gores Holdings’ officers and certain of its directors are affiliated with The Gores Group. Founded in 1987 by Alec Gores, The Gores Group is a global investment firm focused on acquiring controlling interests in mature and growing businesses which can benefit from the firm's operating experience and flexible capital base. Over its nearly 30 year history, The Gores Group has become a leading investor having demonstrated a reliable track record of creating value in its portfolio companies alongside management. Headquartered in Los Angeles, The Gores Group maintains offices in Boulder, CO, and London. For more information, please visit
About Apollo Global Management, LLC
Apollo (NYSE: APO) is a leading global alternative investment manager with offices in New York, Los Angeles, Houston, Chicago, Bethesda, Toronto, London, Frankfurt, Madrid, Luxembourg, Singapore, Mumbai, Delhi, Shanghai and Hong Kong. Apollo had assets under management of approximately $189 billion as of September 30, 2016, in private equity, credit and real estate funds invested across a core group of nine industries where Apollo has considerable knowledge and resources. For more information about Apollo, please visit
About Metropoulos & Co.
Metropoulos & Co. is a merchant banking and management firm focused principally on the food and consumer sectors in the United States and Europe. Dean Metropoulos and his management team partners have been involved in more than 83 acquisitions with over $20 billion of aggregate transaction value. Companies where Metropoulos & Co. has been an investor and Dean Metropoulos has been an executive include: Pabst Brewing Company, Pinnacle Foods, Aurora Foods, Stella Foods, The Morningstar Group, International Home Foods, Ghirardelli Chocolates, Mumm and Perrier Jouet Champagnes and Hillsdown Holdings, PLC (Premier International Foods, Burtons Biscuits and Christie Tyler Furniture), among others.
Forward-Looking Statements
This press release contain statements reflecting our views about our future performance that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. Forward-looking statements are generally identified through the inclusion of words such as “believes,” “expects,” “intends,” “estimates,” “projects,” “anticipates,” “will,” “plan,” “may,” “should,” or similar language. Statements addressing our future operating performance and statements addressing events and developments that we expect or anticipate will occur are also considered as forward-looking statements. All forward looking statements included herein are made only as of the date hereof. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.

Hostess Brands, Inc. Announces Third Quarter 2016 Financial Results for Hostess Holdings, L.P.

KANSAS CITY, Mo.--(BUSINESS WIRE)--Hostess Brands, Inc. (NASDAQ: TWNK, TWNKW)(the “Company”), one of the largest manufacturers and marketers of sweet baked goods including Twinkies®, Ding Dongs®, Ho Hos®, Donettes® and a variety of new and classic treats, today reported third quarter ended September 30, 2016 financial results for its subsidiary Hostess Holdings, L.P. (“Hostess”).
Third quarter 2016 financial results for Hostess reflect the three months ended September 30, 2016, prior to the closing of the recent business combination (the “Business Combination”) between Hostess and the Company (f.k.a.Gores Holding, Inc.) which occurred on November 4, 2016. In connection with the closing of the Business Combination, the Company acquired a controlling interest in Hostess Holdings, L.P. and changed its name to Hostess Brands, Inc.
Third Quarter Financial Highlights
  • Net revenues increased 24.0% to $196.2 million
    • Sweet Baked Goods (sweet baked products) net revenues increased 12.6% to $174.0 million
    • Other (bread, buns and in-store bakery products) net revenues increased 502.6% to $22.2 million
  • Gross margin improved 640 basis points to 44.1%
    • Sweet Baked Goods gross margin was 45.8%
    • Other gross margin was 31.0%
  • GAAP net income was $33.5 million, up from a net loss of $4.1 million
  • Adjusted EBITDA grew 36.7% year-over-year to $55.6 million
(All comparisons above are with respect to the third quarter of 2015)
“We are very pleased with Hostess’s third quarter financial results which are evidence of the successful execution of our strategy to continue to build out our whitespace distribution opportunities and enhance our product assortment through innovation and new product development,” commented Bill Toler, President and Chief Executive Officer of the Company. “The completion of our merger with the Gores team marks an exciting milestone in Hostess’s history as we take another meaningful step forward in our business evolution. We believe Hostess has significant potential to leverage our well-established sweet baked goods brand portfolio to drive continued sales growth, profitability and value for our shareholders.”
Third Quarter 2016 Financial Results
Net revenues were $196.2 million, an increase of $38.0 million or 24.0%, compared to net revenues of $158.2 million for the third quarter of 2015 primarily due to an increase in the number of cases sold as a result of increased distribution in convenience and drug channels and expanded product offerings. Superior Cake Products, Inc. (“Superior”) acquired by Hostess on May 10, 2016, contributed $9.7 million in net revenues for third quarter of 2016. Sweet Baked Goods represented 88.7% and Other represented 11.3% of net revenues, respectively.
Gross profit was $86.6 million, or 44.1% of net revenues, compared to gross profit of $59.6 million, or 37.7% of net revenues, for the third quarter of 2015. After excluding a $4.0 million credit to recall costs related to flour and $2.6 million of incentive compensation third quarter of 2016 gross profit was $85.2 million, or 43.4% of net revenues. Ingredient costs were higher as a percentage of net revenues for the third quarter of 2015, primarily due to the reduced available egg supplies, which increased the egg ingredient prices to record highs.
Selling, general and administrative (“SG&A”) expenses were $29.1 million, an increase of $5.4 million, as compared to SG&A of $23.7 million for the third quarter of 2015. The increase in SG&A expenses were primarily attributable to increases in field marketing, increases in annual incentive compensation related to increases in operating performance, professional fees and the addition of Superior.
GAAP net income was $33.5 million compared to a net loss of $4.1 million in the third quarter of 2015.
Adjusted EBITDA was $55.6 million, an increase of $14.9 million, or 36.6%, compared to adjusted EBITDA of $40.7 million for the third quarter of 2015. Adjusted EBITDA for the third quarter of 2016 was 28.4% of net revenues, compared to adjusted EBITDA of 25.7% of net revenues in the same period last year. Adjusted EBITDA is non-GAAP financial measure. Please refer to the tables in this press release for a reconciliation of non-GAAP financial measures.
Segment Review
Hostess has two reportable segments: Sweet Baked Goods and Other. The Sweet Baked Goods segment consists of sweet baked goods and the Other segment consists of branded bread, buns and in-store bakery products. Please refer to the tables in this press release for segment financial disclosures.
Sweet Baked Goods Segment: Net revenues for quarter were $174.0 million, an increase of $19.6 million, or 12.7%, compared to net revenues of $154.4 million for the third quarter of 2015. Gross profit was $79.7 million, or 45.8% of net revenues, compared to gross profit of $58.4 million, or 37.8% of net revenues for the third quarter of 2015.
Other Segment: Net revenues for quarter were $22.2 million, an increase of $18.5 million, or 502.6%, compared to net revenues of $3.7 million for the third quarter of 2015. Gross profit was $6.9 million, or 31.1% of net revenues, compared to gross profit of $1.2 million, or 32.4% of net revenues for the third quarter of 2015.
Balance Sheet and Cash Flow
As of September 30, 2016, Hostess had cash and cash equivalents of $64.2 million and approximately $97.2 million available for borrowing, net of letters of credit, under its revolving line of credit. Following the completion of the Business Combination on November 4, 2016, the Company had cash and cash equivalents of approximately $7.5 million and net debt of $991.8 million.

(Dollars in thousands)

September 30, December 31,
ASSETS 2016   2015  
Current assets:
Cash and cash equivalents $ 64,220 $ 64,473
Restricted cash 8,215 4,655
Accounts receivable, net 58,853 38,860
Inventories 29,280 25,130
Assets held for sale 4,000
Prepaids and other current assets 11,550     2,041  
Total current assets 172,118 139,159
Property and equipment, net 147,025 128,078
Restricted cash 9,010 17,225
Intangible assets, net 291,947 263,579
Goodwill 81,575 56,992
Deferred finance charges 1,422 1,696
Other assets, net 7,569   7,142  
Total assets $ 710,666   $ 613,871  
Current liabilities:
Long-term debt and capital lease obligation payable within one year $ 9,401 $ 9,250
Accounts payable 46,660 28,053
Accrued expenses 24,880 20,577
Deferred distributions to partners 8,215 4,655
Other liabilities 538   565  
Total current liabilities 89,694 63,100
Long-term debt and capital lease obligation 1,189,542 1,193,667
Deferred distributions to partners 9,010 17,225
Deferred tax liability 11,457    
Total liabilities 1,299,703   1,273,992  
Commitments and contingencies
Partners’ deficit (554,601 ) (622,130 )
Noncontrolling interest (34,436 ) (37,991 )
Total liabilities and partners’ deficit $ 710,666   $ 613,871  
(Dollars in thousands)
Three Months Ended Nine Months Ended
September 30,
September 30,
September 30,
September 30,
Net revenue $ 196,197 $ 158,213 $ 548,758 $ 473,789
Cost of goods sold 113,618 95,942 309,461 269,997
Recall costs related to flour (4,000 )
Special employee incentive compensation   2,649   2,649  
Gross profit 86,579   59,622   239,297 201,143  
Operating costs and expenses:
Advertising and marketing 10,381 9,096 27,529 25,101
Selling expense 8,271 7,242 23,175 22,783
General and administrative 10,437 7,367 31,442 24,250
Amortization of customer relationships 503 155 1,003 467
Special employee incentive compensation 1,274 1,274
Impairment of property and equipment 1,525 7,300 1,950
Loss on sale/abandonment of property and equipment and bakery shutdown costs 213 90 440 1,005
Related party expenses 1,058   1,236   3,432 3,700  
Total operating costs and expenses 30,863   27,985   94,321 80,530  
Operating income 55,716 31,637 144,976 120,613
Other expense:
Interest expense, net 18,004 14,136 53,748 31,806
Loss on debt extinguishment 18,121 25,880
Other (income) expense 4,222   3,444   9,411 (8,680 )
Total other expense 22,226   35,701   63,159 49,006  
Income (loss) before income taxes 33,490 (4,064 ) 81,817 71,607
Income tax provision (benefit) (23 )   294  
Net income (loss) 33,513 (4,064 ) 81,523 71,607
Less: Net income (loss) attributable to the noncontrolling interest 2,329   (204 ) 4,110 3,580  
Net income (loss) attributable to Hostess Holdings, L.P. $ 31,184   $ (3,860 ) $ 77,413 $ 68,027  
(Dollars in thousands)
Nine Months Ended
September 30,
Nine Months Ended
September 30,
Operating activities
Net income $ 81,523 $ 71,607
Depreciation and amortization 9,054 7,158
Impairment of property and equipment 7,300 1,950
Non-cash interest expense-debt fee amortization 2,486 2,547
Non-cash loss on debt extinguishment 16,005
Unit-based compensation 689 1,264
Gain on sale/abandonment of property and equipment (153 ) (21 )
Change in operating assets and liabilities
Accounts receivable (17,871 ) (10,469 )
Inventories (1,850 ) (3,129 )
Prepaids and other current assets (9,397 ) (792 )
Accounts payable and accrued expenses 17,335 25,941
Other 397   316  
Net cash provided by operating activities 89,513   112,377  
Investing activities
Purchases of property and equipment (23,995 ) (22,306 )
Acquisition of Superior, net of cash (50,091 )
Proceeds from sale of assets 4,350 409
Proceeds from sale of marketable securities 42,960
Restricted cash release 1,762
Acquisition and development of software assets (1,917 ) (1,745 )
Net cash provided by (used in) investing activities (71,653 ) 21,080  
Financing activities
Repayments of debt and capital lease obligation (6,985 ) (496,250 )
Proceeds from issuance of long-term debt 1,225,000
Debt fees (22,819 )
Distributions to partners (10,573 ) (952,875 )
Distributions to noncontrolling interest (555 ) (46,765 )
Net cash used in financing activities (18,113 ) (293,709 )
Net decrease in cash and cash equivalents
(253 ) (160,252 )
Cash and cash equivalents at beginning of period 64,473   209,623  
Cash and cash equivalents at end of period
$ 64,220   $ 49,371  
Supplemental Disclosures Of Cash Flow Information:
Cash paid during the period for:
Interest $ 50,799   $ 18,284  
Supplemental disclosure of non-cash investing:
Accrual of purchases of property and equipment $ 2,072   $ 228  
Hostess has two reportable segments: Sweet Baked Goods and Other. The Sweet Baked Goods segment consists of sweet baked goods that are sold under the Hostess® and Dolly Madison brands. In April 2015, Hostess launched Hostess® branded bread and buns. As a result, Hostess added a reportable segment called Other, to include Hostess® branded bread and bun products. In May 2016, Hostess purchased Superior, which manufactures and distributes eclairs, madeleines, brownies, and iced cookies in the “In-Store Bakery” section of grocery and club retailers. The operations of Superior have been included in the reportable segment called Other. The Hostess® branded bread and buns operating segment, the In-Store Bakery operating segment, and other were aggregated and presented within Other as a result of not meeting the 10 percent quantitative threshold tests in accordance with FASB ASC 280-10-50-12.
Hostess evaluates performance and allocates resources based on net revenue and gross profit. Information regarding the operations of these reportable segments is as follows:
  Three Months Ended   Nine Months Ended
(In thousands)
September 30,
  September 30,
September 30,
  September 30,
Net revenue:
Sweet Baked Goods $ 173,997 $ 154,529 $ 507,813 $ 467,140
Other 22,200 3,684 40,945 6,649
Net revenue $ 196,197 $ 158,213 $ 548,758 $ 473,789
Gross profit:
Sweet Baked Goods $ 79,697 $ 58,420 $ 226,208 $ 198,784
Other 6,882 1,202 13,089 2,359
Gross profit $ 86,579 $ 59,622 $ 239,297 $ 201,143