MGP Ingredients, Inc. Reports Third Quarter 2014 Results
11/12/2014
Quarterly Highlights
-
Income from operations improved
$9.6 million compared to the year ago quarter -
Net income grew
$12.6 million compared to the year ago quarter -
Selling, general and administrative expenses lower due to
$1.8 million of proxy costs in the year ago quarter -
Joint venture results improved
$1.7 million compared to the year ago quarter -
Gains from insurance recovery added
$1.9 million to operating income; income tax benefit contributed$1.2 million to net income
"Our profit growth this quarter is a result of continued improvement in our distillery products segment, and reflects a favorable shift towards premium spirits," said President and CEO,
For the first nine months of 2014 net sales were
Distillery Products
Total distillery net sales for the third quarter were
Total distillery net sales for the nine months were
Ingredient Solutions
Total ingredient net sales for the third quarter were
Total ingredient net sales for the first nine months were
Other Factors
Corporate selling, general and administrative expenses were
Joint venture (including ICP) equity method investment earnings were
Third quarter income from operations included
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 alcohol and formulates grain-based starches and proteins into nutritional and functional innovations for the 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 (LOSS) | ||||
(unaudited) | Quarter Ended | Year-to-Date Ended | ||
(Dollars in thousands, except per share) |
2014 |
2013 |
2014 |
2013 |
Sales | $ 83,966 | $ 80,709 | $ 254,451 | $ 253,134 |
Less: excise taxes | 6,451 | 538 | 17,373 | 7,164 |
Net sales | 77,515 | 80,171 | 237,078 | 245,970 |
Cost of sales | 70,204 | 79,356 | 214,658 | 232,645 |
Gross profit | 7,311 | 815 | 22,420 | 13,325 |
Selling, general and administrative expenses | 4,966 | 6,760 | 15,204 | 17,405 |
Insurance recoveries | (1,293) | — | (1,223) | — |
Other operating costs and losses on sale of assets | 1 | 1 | 1 | 59 |
Income (loss) from operations | 3,637 | (5,946) | 8,438 | (4,139) |
Interest expense, net | (199) | (269) | (615) | (829) |
Equity method investment earnings (loss) | 1,621 | (91) | 7,287 | (962) |
Income (loss) from continuing operations before income taxes | 5,059 | (6,306) | 15,110 | (5,930) |
Provision (benefit) for income taxes | (1,169) | 19 | (1,002) | 44 |
Net income (loss) from continuing operations | 6,228 | (6,325) | 16,112 | (5,974) |
Discontinued operations, net of tax | — | — | — | 1,406 |
Net income (loss) | 6,228 | (6,325) | 16,112 | (4,568) |
Other comprehensive income (loss), net of tax | (123) | (111) | 202 | (401) |
Comprehensive income (loss) | $ 6,105 | $ (6,436) | $ 16,314 | $ (4,969) |
Basic and diluted earnings (loss) per share | ||||
Net income (loss) | $ 0.34 | $ (0.37) | $ 0.89 | $ (0.27) |
Weighted average shares outstanding - Basic | 17,334,330 | 17,045,001 | 17,286,258 | 17,045,001 |
Weighted average shares outstanding - Diluted | 17,334,559 | 17,045,001 | 17,286,258 | 17,045,001 |
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CONSOLIDATED BALANCE SHEET (UNAUDITED) | |||||
(Dollars in thousands) |
September 30, 2014 |
2013 |
(Dollars in thousands) |
September 30, 2014 |
2013 |
ASSETS | LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current Assets: | Current Liabilities: | ||||
Cash and cash equivalents | $ — | $ 2,857 | Current maturities of long-term debt | $ 2,598 | $ 1,557 |
Receivables | 31,550 | 27,821 | Accounts payable | 14,101 | 23,107 |
Inventory | 31,465 | 34,917 | Accounts payable to affiliate, net | 3,424 | 1,204 |
Prepaid expenses | 1,435 | 848 | Accrued expenses | 7,987 | 8,282 |
Deferred income taxes | 2,532 | 4,977 | Total Current Liabilities | 28,110 | 34,150 |
Refundable income taxes | 225 | 466 | Other Liabilities: | ||
Total Current Assets | 67,207 | 71,886 | Long-term debt, less current maturities | 8,329 | 3,611 |
Revolving credit facility | 5,736 | 18,000 | |||
Property and equipment | 198,549 | 194,687 | Deferred credit | 4,259 | 3,925 |
Less accumulated depreciation and amortization | (133,337) | (124,443) | Accrued retirement, health and life insurance benefits | 3,654 | 4,423 |
Other noncurrent liabilities | 706 | 640 | |||
Deferred income taxes | 1,318 | 4,977 | |||
Net Property, Plant and Equipment | 65,212 | 70,244 | Total Liabilities | 52,112 | 69,726 |
Equity method investments | 14,364 | 7,123 | Stockholders' equity | 96,997 | 81,603 |
Other noncurrent assets | 2,326 | 2,076 | |||
TOTAL ASSETS | $ 149,109 | $ 151,329 | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 149,109 | $ 151,329 |
Capital Structure | |||||
Net Investment in: | Financed By: | ||||
Working capital | $ 39,097 | $ 37,736 | Long-term debt* | $ 14,065 | $ 21,611 |
Property, plant and equipment | 65,212 | 70,244 | Deferred liabilities | 9,937 | 13,965 |
Other noncurrent assets | 16,690 | 9,199 | Stockholders' equity | 96,997 | 81,603 |
Total | $ 120,999 | $ 117,179 | Total | $ 120,999 | $ 117,179 |
*Excludes short-term portion. Short-term portion is included within working capital.
CONTACT: For More Information 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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