ST. LOUIS, Dec. 08, 2016< (GLOBE NEWSWIRE) — Post Holdings, Inc. (NYSE:POST), a consumer packaged goods holding company, today announced that it has reached an agreement to settle all class claims (asserted by direct purchasers of shell eggs) against Michael Foods, Inc. in In re Processed Egg Products Antitrust Litigation, a class action lawsuit filed in 2008 in federal court in the Eastern District of Pennsylvania. Michael Foods will settle all class claims with a $75 million payment. This litigation pertains to a timeframe that predates Post’s acquisition of Michael Foods, which was completed in June 2014.
“While we remain confident that our conduct has at all times been lawful and entirely appropriate, we believe this settlement is in the best interest of our shareholders, employees, customers and consumers because it effectively eliminates the distraction, expense, and exposure of this complex litigation,” said
Rob Vitale, President and Chief Executive Officer.
Post expects to record a pre-tax charge in the first quarter of its fiscal year 2017 for the settlement of this matter, which will be treated as an adjustment for purposes of calculating Adjusted EBITDA and other non-GAAP measures. Under current law, the settlement is deductible for federal income tax purposes.
The terms of the settlement must be formally documented and are subject to approval by the court following notice to all class members. While Post expects the settlement will receive the needed approval, there can be no assurance that the court will approve the agreement as proposed by the parties. This settlement does not affect the action filed on behalf of indirect purchasers of shell eggs (who were unsuccessful in class certification), or dismissed claims by direct purchasers of egg products (which dismissal is being appealed).
Use of Non-GAAP Measure
Adjusted EBITDA is a non-GAAP measure. Management uses Adjusted EBITDA as a key metric in the evaluation of underlying Company performance, in making financial, operating and planning decisions, and, in part, in the determination of cash bonuses for its executive officers and employees. Management believes the use of this non-GAAP measure provides increased transparency and assists investors in understanding the underlying operating performance of the Company and in the analysis of ongoing operating trends. Non-GAAP measures are not prepared in accordance with GAAP, as they exclude certain items, and may not be comparable to similarly titled measures of other companies.
Certain matters discussed in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including the amount and timing of the expected charges associated with the settlement. These forward-looking statements are based on the current expectations of Post and are subject to uncertainty and changes in circumstances. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made herein. These risks and uncertainties include risks and uncertainties associated with formally documenting the terms of the settlement, whether the court will approve the terms of the settlement and settlement agreement or delay in granting such approval, the ultimate impact these litigation matters, the action filed on behalf of indirect purchasers of shell eggs, the dismissed claims by direct purchasers of egg products (which dismissal is being appealed) and other litigation may have on the Company, and other risks and uncertainties described in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2016. These forward-looking statements represent the Company’s judgment as of the date of this press release. Investors are cautioned not to place undue reliance on these forward-looking statements. The Company 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, foodservice, food ingredient, private label, refrigerated and active nutrition food categories. Through its Post Consumer Brands business, Post is a leader in the ready-to-eat cereal category and offers a broad portfolio that includes recognized brands such as Honey Bunches of Oats®, Pebbles™, Great Grains®, Grape-Nuts®, Honeycomb®, Frosted Mini Spooners®, Golden Puffs®, Cinnamon Toasters®, Fruity Dyno-Bites®, Cocoa Dyno-Bites®, Berry Colossal Crunch® and Malt-O-Meal® hot wheat cereal. Post’s Michael Foods Group supplies value-added egg products, refrigerated potato products, cheese and other dairy case products and dry pasta products to the foodservice, food ingredient and private label retail channels and markets retail brands including All Whites®, Better’n Eggs®, Simply Potatoes® and Crystal Farms®. Post’s Active Nutrition platform aids consumers in adopting healthier lifestyles through brands such as PowerBar®, Premier Protein® and Dymatize®. Post’s Private Brands Group manufactures private label peanut butter and other nut butters, dried fruits, baking and snacking nuts, cereal and granola. For more information, visit www.postholdings.com.