MGP Ingredients, Inc. Reports Second Quarter 2014 Results
08/07/2014
Highlights
- Net sales up vs year ago due to volume growth in beverage and industrial alcohol
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Net income of
$5.1 million , or$0.28 per diluted share, compared with$0.02 a year ago -
Income from operations of
$3.1 million , compared with$0.5 million in the prior year quarter
Net sales of
For the first six months of 2014 net sales were
The distillery products segment reported second quarter pre-tax operating income of
Distillery segment results for the first six months include pre-tax operating income of
Food Ingredients
The ingredients segment reported second quarter pre-tax operating income of
Ingredients segment results for the first six months include pre-tax operating income of
Summary
The Company continues to show improved operating performance compared to a year ago, driven by demand for premium beverages, positive fundamentals for industrial alcohol, and lower raw material costs. The Company's focus on costs includes reduced levels of selling, general and administrative expenses, after adjusting for severance and proxy-related costs incurred in the prior year.
About
MGP is a leading independent supplier of premium spirits, offering flavor innovations and custom distillery blends to the beverage alcohol industry. The Company also produces high quality food grade industrial alcohol and formulates grain-based starches and proteins into nutritional, as well as highly functional, innovations for the branded consumer packaged goods industry. The Company is headquartered in
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements as well as historical information. All statements, other than statements of historical facts, included in this Quarterly Report on Form 10-Q regarding the prospects of our industry and our prospects, plans, financial position and business strategy may constitute forward-looking statements. In addition, forward-looking statements are usually identified by or are associated with such words as "intend," "plan," "believe," "estimate," "expect," "anticipate," "hopeful," "should," "may," "will," "could," "encouraged," "opportunities," "potential" and/or the negatives of these terms or variations of them or similar terminology. They reflect management's current beliefs and estimates of future economic circumstances, industry conditions, Company performance and financial results and are not guarantees of future performance. All such
forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. Important factors that could cause actual results to differ materially from our expectations include, among others: (i) disruptions in operations at our
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
(unaudited) | Quarter Ended | Year to Date Ended | ||
(Dollars in thousands, except per share) |
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Sales | $ 85,903 | $ 83,707 | $ 170,485 | $ 172,425 |
Less: excise taxes | 5,336 | 4,312 | 10,922 | 6,626 |
Net sales | 80,567 | 79,395 | 159,563 | 165,799 |
Cost of sales | 72,169 | 74,114 | 144,364 | 153,289 |
Gross profit | 8,398 | 5,281 | 15,199 | 12,510 |
Selling, general and administrative expenses | 5,166 | 4,770 | 10,238 | 10,645 |
Other operating costs | 160 | — | 160 | 58 |
Income from operations | 3,072 | 511 | 4,801 | 1,807 |
Interest expense, net | (218) | (277) | (416) | (560) |
Equity method investment earnings (loss) | 2,331 | 71 | 5,666 | (871) |
Income from continuing operations before income taxes | 5,185 | 305 | 10,051 | 376 |
Provision for income taxes | 86 | 25 | 167 | 25 |
Net income from continuing operations | 5,099 | 280 | 9,884 | 351 |
Discontinued operations, net of tax | — | — | — | 1,406 |
Net income | 5,099 | 280 | 9,884 | 1,757 |
Other comprehensive income (loss), net of tax | 500 | (141) | 325 | (290) |
Comprehensive income | $ 5,599 | $ 139 | $ 10,209 | $ 1,467 |
Basic and diluted earnings per share | ||||
Net income |
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Weighted average shares outstanding - Basic | 17,277,225 | 17,003,056 | 17,261,824 | 17,003,056 |
Weighted average shares outstanding - Diluted | 17,277,225 | 17,003,081 | 17,261,824 | 17,003,081 |
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CONSOLIDATED BALANCE SHEET (UNAUDITED) | |||||
(Dollars in thousands) |
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(Dollars in thousands) |
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ASSETS | LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current Assets: | Current Liabilities: | ||||
Cash and cash equivalents | $ 883 | $ 2,857 | Current maturities of long-term debt | $ 1,583 | $ 1,557 |
Receivables | 34,737 | 27,821 | Accounts payable | 18,342 | 23,107 |
Inventory | 31,947 | 34,917 | Accounts payable to affiliate, net | 3,268 | 1,204 |
Prepaid expenses | 2,097 | 848 | Accrued expenses | 7,314 | 8,282 |
Deferred income taxes | 3,303 | 4,977 | Total Current Liabilities | 30,507 | 34,150 |
Refundable income taxes | 176 | 466 | Other Liabilities: | ||
Total Current Assets | 73,143 | 71,886 | Long-term debt, less current maturities | 2,814 | 3,611 |
Revolving credit facility | 19,009 | 18,000 | |||
Property and equipment | 196,796 | 194,687 | Deferred credit | 4,098 | 3,925 |
Less accumulated depreciation and amortization | (130,342) | (124,443) | Accrued retirement, health and life insurance benefits | 3,720 | 4,423 |
Other noncurrent liabilities | 684 | 640 | |||
Net Property, Plant | Deferred income taxes | 3,303 | 4,977 | ||
and Equipment | 66,454 | 70,244 | Total Liabilities | 64,135 | 69,726 |
Equity method investments | 12,786 | 7,123 | Stockholders' equity | 90,639 | 81,603 |
Other noncurrent assets | 2,391 | 2,076 | |||
TOTAL ASSETS | $ 154,774 | $ 151,329 | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 154,774 | $ 151,329 |
Capital Structure | |||||
Net Investment in: | Financed By: | ||||
Working capital |
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Long-term debt* |
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Property, plant and equipment | 66,454 | 70,244 | Deferred liabilities | 11,805 | 13,965 |
Other noncurrent assets | 15,177 | 9,199 | Stockholders' equity | 90,639 | 81,603 |
Total | $ 124,267 | $ 117,179 | Total | $ 124,267 | $ 117,179 |
*Excludes short-term portion. Short-term portion is included within working capital. |
CONTACT: Investors & Analysts:Source:George Zagoudis , Investor Relations 913-360-5441 or george.zagoudis@mgpingredients.com Media:Shanae Randolph , Corporate Director of Communications 913-360-5442 or shanae.randolph@mgpingredients.com
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