Boulder Brands Share Plunge As Co-Founder Resigns, Weak Guidance Weighs

Shares of Boulder Brands Inc BDBD plunged more than 20 percent during Wednesday's pre-market session after the company announced the resignation of its Chief Executive Officer and Co-Founder Steve Hughes.

According to the company's press release, the Board of Directors believes "now is the time" for new leadership at Boulder Brands. As such, the Board appointed James B. Leighton, the company's Chief Operating Officer to serve as Interim CEO, effective immediately while a search for a permanent CEO will begin.

"This change, along with the evolving dynamics of our industry, gives us confidence that we are well-positioned to leverage customer and consumer desires for authentic and scalable natural brands to deliver sustainable results and generate meaningful value creation," the company said in its press release. "Jim has significant and diverse operational and business experience, and has been a valuable member of our management team in his role as COO during the past two years and as a member of our Board since 2007."

Leighton brings decades of leadership experience in the industry and is expected to "provide the immediate leadership necessary to deliver on our commitments to our key stakeholders."

"Since co-founding Boulder Brands nearly 10 years ago, I have had the pleasure of working with the most talented employees and management team in the industry," said Hughes. "As Boulder Brands enters a new period of development, I believe now is the right time for a leadership transition.

Second Quarter Outlook

Boulder Brands also provided the following outlook for its second quarter of 2015, ending June 30.

• Net sales to be approximately $122 million to $124 million, marking a decline of 5 percent to 7 percent from a year ago.
• The Natural Segment's sales is expected to be flat to an increase of 2 percent from a year ago while the Balance Segment's sales is expected to decline 16 to 18 percent from a year ago.
• Adjusted EBITDA is expected to be in the range of $12 million to $14 million.
• Non-GAAP diluted earnings per share is expected to be approximately $0.00 to $0.02.
• The company intends to update its full-year 2015 outlook when it announces its second quarter 2015 financial results.