ST. LOUIS, June 15, 2018 (GLOBE NEWSWIRE) — Post Holdings, Inc. (NYSE:POST), a consumer packaged goods holding company, previously reported a fire took place at its Michael Foods precooked egg facility in Klingerstown, PA, and, unrelated, a water boil order was issued by the municipal water association servicing its Michael Foods Lenox, IA precooked egg facility.
The cause of the fire at Klingerstown continues to be investigated with repairs to the roof and electrical infrastructure currently in process. The plant continues to operate, with additional production anticipated to return on June 19. Remaining oven production is expected to be brought back into service by mid-July, with the plant returning to full production then.
The Lenox facility restarted partial operations on June 7, with full production levels reached on June 11.
While underlying egg product demand remains strong, this disruption has resulted in modest service level issues and lost sales revenue. Post management estimates the financial impact of both incidents, inclusive of expenses and margin on lost sales revenue, to be between $5-$7 million to Adjusted EBITDA (non-GAAP), which will be reflected in Post’s financial results in its third quarter of fiscal 2018. The financial impact of each incident is expected to be insured to the extent each incident exceeds $2.5 million, with recovery occurring in the fourth quarter of fiscal 2018 or in early fiscal 2019.
Use of Non-GAAP Measure
Post uses the non-GAAP measure Adjusted EBITDA in this release to supplement its financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP). Adjusted EBITDA is not prepared in accordance with GAAP, as it excludes certain items, and may not be comparable to similarly-titled measures of other companies.
Post management uses certain non-GAAP measures, including Adjusted EBITDA, as key metrics in the evaluation of underlying Company and segment performance, in making financial, operating and planning decisions, and, in part, in the determination of cash bonuses for its executive officers and employees. Post management believes the use of non-GAAP measures, including Adjusted EBITDA, provides increased transparency and assists investors in understanding the underlying operating performance of Post and its segments and in the analysis of ongoing operating trends.
Forward Looking Statements
Forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, are made throughout this press release. These forward-looking statements are sometimes identified from the use of forward-looking words such as “believe,” “should,” “could,” “potential,” “continue,” “expect,” “project,” “estimate,” “predict,” “anticipate,” “aim,” “intend,” “plan,” “forecast,” “target,” “is likely,” “will,” “can,” “may,” or “would” or the negative of these terms or similar expressions elsewhere in this release. All forward-looking statements are subject to a number of important factors, risks, uncertainties and assumptions that could cause actual results to differ materially from those described in any forward-looking statements. These factors and risks include, but are not limited to, the amount and timing of the financial impact, the amount and timing of any insurance recovery, the timing to resume production in Klingerstown and other financial, operational and legal risks and uncertainties detailed from time to time in Post’s cautionary statements contained in its filings with the Securities and Exchange Commission. These forward-looking statements represent Post’s judgment as of the date of this press release. Post disclaims, however, any intent or obligation to update these forward-looking statements.
About Post Holdings, Inc.
Post Holdings, Inc., headquartered in St. Louis, Missouri, is a consumer packaged goods holding company operating in the center-of-the-store, refrigerated, foodservice, food ingredient, active nutrition and private brand food categories. Through its Post Consumer Brands business, Post is a leader in the North American ready-to-eat cereal category offering a broad portfolio including recognized brands such as Honey Bunches of Oats®, Pebbles™, Great Grains® and Malt-O-Meal® bag cereal. Post also is a leader in the United Kingdom ready-to-eat cereal category with the iconic Weetabix® brand. As leader in refrigerated foods, Post brings innovative, value-added egg and refrigerated potato products to the foodservice channel and the retail refrigerated side dish category, offering side dishes and egg, sausage and cheese products through the Bob Evans®, All Whites®, Better’n Eggs®, Simply Potatoes® and Crystal Farms® brands. Post’s Active Nutrition platform aids consumers in adopting healthier lifestyles through brands such as Premier Protein®, PowerBar® and Dymatize®. Post’s Private Brands business manufactures private brand nut butter, healthy snacks and pasta. For more information, visit www.postholdings.com.