Post Holdings Reports Results for the First Quarter of Fiscal Year 2014
(Logo: http://photos.prnewswire.com/prnh/20120523/CG12577LOGO)
First Quarter 2014 Highlights:
- Net sales of
$297.0 million for the first quarter, up$60.1 million from prior year resulting from acquisitions - Post Foods U.S. dollar market share up 0.3 share points to 10.6% for the 13 weeks ended
December 28, 2013 compared to the year ago quarter, according toNielsen - Adjusted EBITDA of
$55.9 million for the first quarter
First Quarter Consolidated Operating Results
Net sales for the first quarter were
Gross profit improved
Selling, general and administrative (SG&A) expenses for the first quarter increased
Adjusted EBITDA was
For the first quarter, the net loss attributable to common stockholders was ($5.0) million, or (
In the
According to
Active Nutrition
The Active Nutrition segment includes the business of
Interest and Income Tax
Net interest expense was
Income tax benefit was
Update on Acquisitions
On
In a release dated
Post management anticipates that for calendar year 2014 PowerBar and
Post completed the first phase of its
During the first quarter of 2014, Post incurred an incremental
Outlook
Including results of all completed acquisitions to date (which excludes the acquisition of the PowerBar and
Use of Non-GAAP Measures
Management has determined that the Adjusted EBITDA, segment Adjusted EBITDA, Adjusted net earnings available to common stockholders, Adjusted diluted earnings per common share and total segment profit metrics presented herein are key metrics that will help investors understand the ultimate income and near-term cash flows generated by our business.
Adjusted EBITDA and segment Adjusted EBITDA are non-GAAP measures which represent net earnings excluding income taxes, net interest expense, net other nonoperating income/expense, depreciation and amortization, non-cash stock based compensation, restructuring and plant closure costs, acquisition related transaction costs, inventory revaluation adjustments on acquired businesses, costs to effect Post’s separation from
Adjusted net earnings available to common stockholders is a non-GAAP measure which represents net earnings available to common stockholders excluding costs to effect Post’s separation from Ralcorp and to establish stand-alone systems and processes, restructuring and plant closure costs, acquisition related transaction costs, inventory revaluation adjustments on acquired businesses, losses on hedge of purchase price of acquisitions and intangible asset impairments, if any. The Company believes Adjusted net earnings available to common stockholders and Adjusted diluted earnings per common share are useful to investors in evaluating the Company’s operating performance because they exclude items that could affect the comparability of our financial results and could potentially distort the trends in business performance.
Total segment profit is a non-GAAP measure which represents the aggregation of the segment profit for each of Post’s reportable segments. The Company believes total segment profit is useful to investors in evaluating the Company’s operating performance because it facilitates period-to-period comparison of results of segment operations.
The calculations of Adjusted EBITDA, segment Adjusted EBITDA, Adjusted net earnings available to common stockholders, Adjusted diluted earnings per common share and total segment profit are not specified by
Conference Call to Discuss Earnings Results and Guidance
The Company will host a conference call on
Interested parties may join the conference call by dialing (877) 540-0891 in
A replay of the conference call will be available through
Forward-Looking Statements
Certain matters discussed in this press release and on the conference call are forward-looking statements including the expected timing of the completion of the acquisition of the PowerBar and Musashi brands and related assets, expected tax benefits of the acquisition of the PowerBar and Musashi brands, the expected Adjusted EBITDA and other financial results of the PowerBar and
About
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
|||||||
(in millions, except per share data) |
|||||||
Quarter Ended December 31, |
|||||||
2013 |
2012 |
||||||
Net Sales |
$ 297.0 |
$ 236.9 |
|||||
Cost of goods sold |
182.5 |
131.2 |
|||||
Gross Profit |
114.5 |
105.7 |
|||||
Selling, general and administrative expenses |
83.0 |
72.1 |
|||||
Amortization of intangible assets |
5.7 |
3.2 |
|||||
Restructuring expense |
0.5 |
— |
|||||
Other operating expenses, net |
0.1 |
0.1 |
|||||
Operating Profit |
25.2 |
30.3 |
|||||
Interest expense |
29.0 |
19.2 |
|||||
(Loss) Earnings before Income Taxes |
(3.8) |
11.1 |
|||||
Income tax (benefit) provision |
(1.4) |
3.5 |
|||||
Net (Loss) Earnings |
(2.4) |
7.6 |
|||||
Preferred stock dividends |
(2.6) |
— |
|||||
Net (Loss) Earnings Available to Common Stockholders |
$ (5.0) |
$ 7.6 |
|||||
(Loss) Earnings per Common Share: |
|||||||
Basic |
$ (0.15) |
$ 0.23 |
|||||
Diluted |
$ (0.15) |
$ 0.23 |
|||||
Weighted-Average Common Shares Outstanding: |
|||||||
Basic |
32.7 |
32.6 |
|||||
Diluted |
32.7 |
32.7 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
|||||||
(in millions) |
|||||||
December 31, 2013 |
September 30, 2013 |
||||||
ASSETS |
|||||||
Current Assets |
|||||||
Cash and cash equivalents |
$ |
884.9 |
$ |
402.0 |
|||
Restricted cash |
1.1 |
38.1 |
|||||
Receivables, net |
84.9 |
83.2 |
|||||
Inventories |
120.8 |
121.9 |
|||||
Deferred income taxes |
12.1 |
11.9 |
|||||
Prepaid expenses and other current assets |
10.8 |
11.0 |
|||||
Total Current Assets |
1,114.6 |
668.1 |
|||||
Property, net |
387.7 |
388.5 |
|||||
Goodwill |
1,489.6 |
1,489.7 |
|||||
Other intangible assets, net |
892.7 |
898.4 |
|||||
Cash advance for acquisition |
366.2 |
— |
|||||
Deferred income taxes |
2.2 |
2.4 |
|||||
Other assets |
36.1 |
26.7 |
|||||
Total Assets |
$ |
4,289.1 |
$ |
3,473.8 |
|||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||
Current Liabilities |
|||||||
Accounts payable |
$ |
56.8 |
$ |
77.1 |
|||
Other current liabilities |
94.3 |
68.9 |
|||||
Total Current Liabilities |
151.1 |
146.0 |
|||||
Long-term debt |
1,932.9 |
1,408.6 |
|||||
Deferred income taxes |
302.4 |
304.3 |
|||||
Other liabilities |
117.0 |
116.3 |
|||||
Total Liabilities |
2,503.4 |
1,975.2 |
|||||
Stockholders’ Equity |
|||||||
Preferred stock |
0.1 |
— |
|||||
Common stock |
0.3 |
0.3 |
|||||
Additional paid-in capital |
1,811.2 |
1,517.2 |
|||||
Retained earnings |
42.9 |
47.6 |
|||||
Accumulated other comprehensive loss |
(15.4) |
(13.1) |
|||||
Treasury stock, at cost |
(53.4) |
(53.4) |
|||||
Total Stockholders’ Equity |
1,785.7 |
1,498.6 |
|||||
Total Liabilities and Stockholders’ Equity |
$ |
4,289.1 |
$ |
3,473.8 |
SELECTED CONDENSED CONSOLIDATED CASH FLOW INFORMATION (Unaudited) |
|||||||
(in millions) |
|||||||
Quarter Ended December 31, |
|||||||
2013 |
2012 |
||||||
Cash provided by (used in): |
|||||||
Operating activities |
$ |
24.9 |
$ |
23.6 |
|||
Investing activities |
(345.7) |
(14.2) |
|||||
Financing activities |
804.6 |
243.4 |
|||||
Effect of exchange rates on cash and cash equivalents |
(0.9) |
(0.1) |
|||||
Net increase in cash and cash equivalents |
$ |
482.9 |
$ |
252.7 |
SEGMENT INFORMATION (Unaudited) |
|||||||||
(in millions) |
|||||||||
Quarter Ended December 31, |
|||||||||
2013 |
2012 |
||||||||
Net Sales |
|||||||||
Post Foods |
$ |
236.9 |
$ |
236.9 |
|||||
Attune Foods |
23.2 |
— |
|||||||
Active Nutrition |
37.2 |
— |
|||||||
Eliminations |
(0.3) |
— |
|||||||
Total |
$ |
297.0 |
$ |
236.9 |
|||||
Segment Profit |
|||||||||
Post Foods |
$ |
46.5 |
$ |
47.0 |
|||||
Attune Foods |
2.6 |
— |
|||||||
Active Nutrition |
4.2 |
— |
|||||||
Total segment profit |
53.3 |
47.0 |
|||||||
General corporate expenses and other |
24.9 |
16.7 |
|||||||
Accelerated depreciation on plant closure |
2.7 |
— |
|||||||
Restructuring expenses |
0.5 |
— |
|||||||
Interest expense |
29.0 |
19.2 |
|||||||
(Loss) Earnings before Income Taxes |
$ |
(3.8) |
$ |
11.1 |
RECONCILIATION OF NET EARNINGS TO ADJUSTED EBITDA (Unaudited) |
|||||||
(in millions) |
|||||||
Quarter Ended December 31, |
|||||||
2013 |
2012 |
||||||
Net (Loss) Earnings |
$ |
(2.4) |
$ |
7.6 |
|||
Income tax expense |
(1.4) |
3.5 |
|||||
Interest expense, net |
29.0 |
19.2 |
|||||
Depreciation and amortization, including accelerated depreciation |
21.1 |
16.2 |
|||||
Restructuring and plant closure costs |
2.2 |
— |
|||||
Spin-Off costs/post Spin-Off non-recurring costs |
0.2 |
2.8 |
|||||
Non-cash stock-based compensation |
3.4 |
2.5 |
|||||
Losses on hedge of purchase price of acquisitions |
1.3 |
— |
|||||
Mark to market adjustments on economic hedges |
(0.9) |
0.7 |
|||||
Acquisition related transaction costs |
3.4 |
— |
|||||
Adjusted EBITDA |
$ |
55.9 |
$ |
52.5 |
|||
Adjusted EBITDA as a percentage of Net Sales |
18.8 |
% |
22.2 |
% |
RECONCILIATION OF SEGMENT PROFIT TO ADJUSTED EBITDA (Unaudited) |
|||||||||||||||||||
QUARTER ENDED DECEMBER 31, 2013 |
|||||||||||||||||||
(in millions) |
|||||||||||||||||||
Post Foods |
Attune Foods |
Active Nutrition |
Corporate/ Other |
Total |
|||||||||||||||
Segment Profit |
$ |
46.5 |
$ |
2.6 |
$ |
4.2 |
$ |
— |
$ |
53.3 |
|||||||||
General corporate expenses and other |
— |
— |
— |
(24.9) |
(24.9) |
||||||||||||||
Accelerated depreciation on plant closure |
— |
— |
— |
(2.7) |
(2.7) |
||||||||||||||
Restructuring expense |
— |
— |
— |
(0.5) |
(0.5) |
||||||||||||||
Operating Profit |
46.5 |
2.6 |
4.2 |
(28.1) |
25.2 |
||||||||||||||
Depreciation and amortization, including accelerated depreciation |
13.2 |
1.8 |
1.6 |
4.5 |
21.1 |
||||||||||||||
Restructuring and plant closure costs |
— |
— |
— |
2.2 |
2.2 |
||||||||||||||
Non-cash stock-based compensation |
— |
— |
— |
3.4 |
3.4 |
||||||||||||||
Mark to market adjustments on economic hedges |
— |
— |
— |
(0.9) |
(0.9) |
||||||||||||||
Acquisition related transaction costs |
— |
— |
— |
3.4 |
3.4 |
||||||||||||||
Losses on hedge of purchase price of acquisitions |
— |
— |
— |
1.3 |
1.3 |
||||||||||||||
Spin-Off costs/post Spin-Off non-recurring costs |
— |
— |
— |
0.2 |
0.2 |
||||||||||||||
Adjusted EBITDA |
$ |
59.7 |
$ |
4.4 |
$ |
5.8 |
$ |
(14.0) |
$ |
55.9 |
|||||||||
Adjusted EBITDA as a percentage of Net Sales |
25.2 |
% |
19.0 |
% |
15.6 |
% |
— |
18.8 |
% |
RECONCILIATION OF SEGMENT PROFIT TO ADJUSTED EBITDA (Unaudited) |
|||||||||||||||||||
QUARTER ENDED DECEMBER 31, 2012 |
|||||||||||||||||||
(in millions) |
|||||||||||||||||||
Post Foods |
Attune Foods |
Active Nutrition |
Corporate/ Other |
Total |
|||||||||||||||
Segment Profit |
$ |
47.0 |
$ |
— |
$ |
— |
$ |
— |
$ |
47.0 |
|||||||||
General corporate expenses and other |
— |
— |
— |
(16.7) |
(16.7) |
||||||||||||||
Operating Profit |
47.0 |
— |
— |
(16.7) |
30.3 |
||||||||||||||
Depreciation and amortization |
15.0 |
— |
— |
1.2 |
16.2 |
||||||||||||||
Non-cash stock-based compensation |
— |
— |
— |
2.5 |
2.5 |
||||||||||||||
Mark to market adjustments on economic hedges |
— |
— |
— |
0.7 |
0.7 |
||||||||||||||
Spin-Off costs/post Spin-Off non-recurring costs |
— |
— |
— |
2.8 |
2.8 |
||||||||||||||
Adjusted EBITDA |
$ |
62.0 |
$ |
— |
$ |
— |
$ |
(9.5) |
$ |
52.5 |
|||||||||
Adjusted EBITDA as a percentage of Net Sales |
26.2 |
% |
— |
— |
— |
22.2 |
% |
RECONCILIATION OF NET EARNINGS AVAILABLE TO COMMON STOCKHOLDERS |
||||||||
TO ADJUSTED NET EARNINGS AVAILABLE TO COMMON STOCKHOLDERS (Unaudited) |
||||||||
(in millions, except per share data) |
||||||||
Quarter Ended December 31, |
||||||||
2013 |
2012 |
|||||||
Net (Loss) Earnings Available to Common Stockholders |
$ |
(5.0) |
$ |
7.6 |
||||
Adjustments: |
||||||||
Spin-Off costs/post Spin-Off non-recurring costs |
0.2 |
2.8 |
||||||
Mark to market adjustments on economic hedges |
(0.9) |
0.7 |
||||||
Restructuring and plant closure costs, including accelerated depreciation |
4.9 |
— |
||||||
Acquisition related transaction costs |
3.4 |
— |
||||||
Losses on hedge of purchase price of acquisitions |
1.3 |
— |
||||||
Total Net Adjustments |
8.9 |
3.5 |
||||||
Income tax effect on adjustments |
(3.2) |
(1.1) |
||||||
Adjusted Net Earnings Available to Common Stockholders |
$ |
0.7 |
$ |
10.0 |
||||
Weighted-Average Shares Outstanding – Diluted |
32.7 |
32.7 |
||||||
Adjusted Diluted Earnings per Common Share |
$ |
0.02 |
$ |
0.31 |