Press Releases
Ralcorp Holdings Announces Results for the Third Quarter of Fiscal 2009
8/6/2009 5:17:00 PM
Three Months Nine Months
Ended June 30, Ended June 30,
-------------- --------------
2009 2008 2009 2008
---- ---- ---- ----
(Loss) gain on forward sale contracts $(.27) $.53 $.20 $2.06
Gain on sale of securities .31 - .49 -
Equity in earnings of Vail Resorts, Inc. .12 .42 .17 .57
Post Foods transition and
integration costs (.15) (.04) (.31) (.04)
Third quarter diluted EPS excluding the above special items were
Other reported results for the quarter ended June 30, 2009 included:
-- Net sales increased 51%, primarily as a result of the Post Foods and
Harvest Manor Farms acquisitions, as well as higher pricing in
response to rising input costs.
-- Total segment profit contribution was up 192%, primarily due to the
acquisitions and improved selling prices, partially offset by higher
raw material costs.
-- Earnings before income taxes and equity earnings were $105.7 million
(compared to $53.5 million a year ago), including the gains and losses
on Vail forward sale contracts and sale of Vail shares, and Post
transition and integration costs.
-- Equity in earnings of Vail Resorts, Inc. (after tax) was $6.9 million
compared to $11.2 million a year ago.
-- Net earnings were $74.8 million compared to $45.8 million last year.
-- Weighted average shares for diluted EPS rose to 56.9 million from 26.3
million a year ago, primarily as a result of the 30.5 million shares
issued in the Post Foods acquisition.
-- Food EBITDA (defined below) was $157.8 million compared to $65.3
million last year, largely due to incremental EBITDA from Post Foods
partially offset by related transition and integration costs.
Segment results and other key measures are summarized in the following
tables (in millions):
Three Months Nine Months
Ended June 30, Ended June 30,
--------------- --------------
2009 2008 2009 2008
---- ---- ---- ----
Net Sales
Cereals $476.1 $194.4 $1,399.2 $556.1
Frozen Bakery Products 162.1 174.1 530.0 533.1
Snacks 219.1 166.0 583.3 508.1
Sauces and Spreads 136.7 124.1 396.2 353.6
----- ----- ----- -----
Total $994.0 $658.6 $2,908.7 $1,950.9
====== ====== ======== ========
Profit Contribution
Cereals $95.9 $20.4 $248.1 $60.5
Frozen Bakery Products 18.7 15.1 49.1 47.9
Snacks 27.4 11.7 62.9 32.1
Sauces and Spreads 8.2 4.2 26.7 9.1
--- --- ---- ---
Total segment profit contribution 150.2 51.4 386.8 149.6
Interest expense, net (23.0) (11.1) (72.9) (33.6)
(Loss) gain on forward sale
contracts (24.5) 21.7 17.6 84.0
Gain on sale of securities 28.0 - 43.8 -
Restructuring charges (.1) (.3) (.4) (1.7)
Acquired inventory valuation
adjustment (.4) - (.4) -
Stock-based compensation expense (3.0) (2.3) (10.0) (8.3)
Post Foods transition and
integration costs (13.2) (1.6) (28.1) (1.6)
Other unallocated corporate expenses (8.3) (4.3) (21.4) (16.0)
---- ---- ----- -----
Earnings before Income Taxes
and Equity Earnings $105.7 $53.5 $315.0 $172.4
====== ===== ====== ======
Reconciliation of Food EBITDA to Net Earnings
Food EBITDA $157.8 $65.3 $433.2 $189.3
Depreciation and amortization (32.6) (22.4) (106.7) (67.3)
Interest expense, net (23.0) (11.1) (72.9) (33.6)
(Loss) gain on forward sale
contracts (24.5) 21.7 17.6 84.0
Gain on sale of securities 28.0 - 43.8 -
Income taxes (37.8) (18.9) (114.3) (60.8)
Equity in earnings of
Vail Resorts, Inc. , net
of related deferred income taxes 6.9 11.2 9.8 15.1
--- ---- --- ----
Net Earnings $74.8 $45.8 $210.5 $126.7
===== ===== ====== ======
Of the third quarter's
Amortization of intangible assets other than software (mainly related to
brands and customers) increased primarily as a result of the addition of
amounts for
Special Items Related to
Earnings were affected by changes in the fair value of the Company's
forward sale contracts related to its shares of
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 in Vail Resorts, Inc. and the Post 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 of Ralcorp's food
business operations, without the effects of the Company's investment
in Vail Resorts, Inc. and related transactions.
-- Total segment profit contribution is an accumulation of the GAAP
measures of profit contribution for each reportable segment that 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
NOTE: 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 statements are
sometimes identified by their use of terms and phrases such as "should,"
"will," "believes," "anticipates," "intends," "plans," "expects," or similar
expressions. Any such forward-looking statements are made based on
information currently known and are subject to various risks and uncertainties
and are therefore qualified by the Company's cautionary statements contained
in its filings with the
RALCORP HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(Dollars in millions except per share data, shares in thousands)
Three Months Nine Months
Ended June 30, Ended June 30,
-------------- --------------
2009 2008 2009 2008
---- ---- ---- ----
Net Sales $994.0 $658.6 $2,908.7 $1,950.9
Cost of products sold (720.2) (543.7) (2,129.2) (1,620.0)
------ ------ -------- --------
Gross Profit 273.8 114.9 779.5 330.9
Selling, general and administrative
expenses (148.5) (71.7) (452.6) (207.2)
Interest expense, net (23.0) (11.1) (72.9) (33.6)
(Loss) gain on forward sale contracts (24.5) 21.7 17.6 84.0
Gain on sale of securities 28.0 - 43.8 -
Restructuring charges (.1) (.3) (.4) (1.7)
--- --- --- ----
Earnings before Income Taxes
and Equity Earnings 105.7 53.5 315.0 172.4
Income taxes (37.8) (18.9) (114.3) (60.8)
----- ----- ------ -----
Earnings before Equity Earnings 67.9 34.6 200.7 111.6
Equity in earnings of
Vail Resorts, Inc. , net
of related deferred income taxes 6.9 11.2 9.8 15.1
--- ---- --- ----
Net Earnings $74.8 $45.8 $210.5 $126.7
===== ===== ====== ======
Earnings per Share
Basic $1.33 $1.79 $3.74 $4.95
Diluted $1.31 $1.73 $3.69 $4.81
Weighted Average Shares
for Basic Earnings per Share 56,140 25,498 56,099 25,478
Dilutive effect of:
Stock options 406 561 455 560
Stock appreciation rights 136 104 141 81
Restricted stock awards 262 104 225 93
--- --- --- --
Weighted Average Shares
for Diluted Earnings per Share 56,944 26,267 56,920 26,212
====== ====== ====== ======
SOURCEBackRalcorp Holdings, Inc. -0-08/06/2009 /CONTACT:Scott Monette ofRalcorp , +1-314-877-7113/ (RAH MTN) CO:Ralcorp Holdings, Inc. ;Vail Resorts, Inc. ;Post Foods ST:Missouri IN: REA FOD SU: ERN ERP PR -- CG58107 -- 060708/06/2009 17:15 EDT http://www.prnewswire.com