Press Releases
Ralcorp Holdings Announces Results for the First Quarter of Fiscal 2009
2/5/2009 5:17:00 PM
Three Months Ended
December 31,
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2008 2007
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Gain on forward sale contracts $.25 $.92
Gain on sale of securities .18 -
Post Foods transition and integration costs (.08) -
First quarter diluted EPS excluding the above special items were
Other reported results for the quarter ended
- Net sales increased 49%, primarily as a result of the
Post Foods acquisition, as well as higher pricing in response to rising input costs. - Total segment profit contribution was up 123%, primarily due to
Post Foods and improved selling prices, partially offset by higher costs. - Earnings before income taxes and equity loss were
$110.8 million (compared to$69.7 million a year ago) including the non-cash gains on Vail forward sale contracts, gain on sale of Vail shares, and Post transition and integration costs. - Equity in loss of
Vail Resorts, Inc. (after tax) was$4.1 million ($.07 per share) compared to$2.8 million ($.10 per share) a year ago. - Net earnings were
$65.5 million compared to$42.4 million last year. - Weighted average shares for diluted EPS rose to 56.9 million from 26.2
million a year ago, primarily as a result of the 30.5 million shares
issued in the
Post Foods acquisition. - Food EBITDA was
$136.1 million compared to$66.2 million last year, generally due to incremental EBITDA fromPost Foods partially offset by transition and integration costs related toPost Foods . - The Company reduced its debt by
$102.9 million as a result of strong cash flows from operations and the expansion of its trade receivables securitization program.
Segment results and other key measures are summarized in the following
tables (in millions):
Three Months Ended
December 31,
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2008 2007
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Net Sales
Cereals $449.3 $180.7
Frozen Bakery Products 191.1 182.5
Snacks 194.5 177.7
Sauces and Spreads 133.3 109.8
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Total $968.2 $650.7
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Profit Contribution
Cereals $74.1 $20.6
Frozen Bakery Products 15.0 17.7
Snacks 20.5 13.2
Sauces and Spreads 9.2 1.7
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Total segment profit contribution 118.8 53.2
Interest expense, net (26.3) (11.5)
Gain on forward sale contracts 22.5 37.8
Gain on sale of securities 15.8 -
Restructuring charges (.1) (.7)
Stock-based compensation expense (4.1) (3.2)
Post Foods transition and
integration costs (7.1) -
Other unallocated corporate
expenses (8.7) (5.9)
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Earnings before Income Taxes
and Equity Loss $110.8 $69.7
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Reconciliation of Food EBITDA to
Net Earnings
Food EBITDA $136.1 $66.2
Depreciation and amortization (37.3) (22.8)
Interest expense, net (26.3) (11.5)
Gain on forward sale contracts 22.5 37.8
Gain on sale of securities 15.8 -
Income taxes (41.2) (24.5)
Equity in loss of Vail Resorts, Inc. ,
net of related deferred income taxes (4.1) (2.8)
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Net Earnings $65.5 $42.4
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Approximately
Amortization of intangible assets other than software (primarily related
to brands and customers) increased, primarily as a result of the addition of
amounts for
Special Items Related to
Earnings were affected by gains on the Company's forward sale contracts
related to its shares of
Results for the first quarter of fiscal 2009 included a gain on the sale
of 891,600 Vail shares, including 890,000 shares subject to the forward sale
contracts. The
As planned,
Additional Information
The following measures, as reported herein, are non-GAAP financial
measures which the Company's management believes provide useful information to
investors regarding the performance of
- Diluted earnings per share excluding special items is an additional
measure for comparing the earnings generated by operations between
periods, without the effects of certain special items related to
Ralcorp's investment inVail Resorts, Inc. and thePost Foods acquisition (as described above). - Food EBITDA (earnings before interest, income taxes, depreciation, and
amortization, excluding equity method earnings and other gains or
losses related to the Company's investment in
Vail Resorts, Inc. ) provides information regarding the performance ofRalcorp's food business operations, without the effects of the Company's investment inVail Resorts, Inc. and related transactions. - Total segment profit contribution is an accumulation of the GAAP measures of profit contribution for each reportable segment which are reported to the chief operating decision maker for purposes of making decisions about allocating resources to each segment and assessing its performance, which gives investors a combined measure of these key amounts.
For additional information regarding the Company's results, refer to the
comparative statements of earnings below, as well as the financial statements
and management's discussion and analysis included in its Quarterly Report on
Form 10-Q for the period ended
Cautionary Statement on Forward-Looking Statements
Information in this press release that includes information other than
historical data contains forward-looking statements as defined by the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
are sometimes identified by their use of terms and phrases such as "will,"
"believes," "intends," "anticipates," "plans," "expects," or similar
expressions. 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, general economic conditions, changes in actual or forecasted cash
flows, competitive pressures, future sales volume, impact of costs or lower
consumer demand associated with peanut product recalls in
RALCORP HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(Dollars in millions except per share data, shares in thousands)
Three Months Ended
December 31,
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2008 2007
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Net Sales $968.2 $650.7
Cost of products sold (721.9) (537.3)
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Gross Profit 246.3 113.4
Selling, general and administrative
expenses (147.4) (69.3)
Interest expense, net (26.3) (11.5)
Gain on forward sale contracts 22.5 37.8
Gain on sale of securities 15.8 -
Restructuring charges (.1) (.7)
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Earnings before Income Taxes
and Equity Loss 110.8 69.7
Income taxes (41.2) (24.5)
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Earnings before Equity Earnings 69.6 45.2
Equity in loss of Vail Resorts, Inc. ,
net of related deferred income taxes (4.1) (2.8)
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Net Earnings $65.5 $42.4
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Earnings per Share
Basic $1.17 $1.66
Diluted $1.15 $1.61
Weighted Average Shares
for Basic Earnings per Share 56,048 25,470
Dilutive effect of:
Stock options 543 568
Stock appreciation rights 155 71
Restricted stock awards 146 84
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Weighted Average Shares for
Diluted Earnings per Share 56,892 26,193
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