B&G Foods reports Q1 net earnings of US$16.8M, up 26.1% from year-ago period, driven by strong performance from Culver Specialty Brands; net sales up 19.7% to US$157.3M
PARSIPPANY, New Jersey
April 19, 2012
– B&G Foods, Inc. (NYSE: BGS - News) today announced financial results for the first quarter of 2012, reporting strong net sales and earnings growth.
Key Quarter and Outlook Highlights
* Net sales increased 19.7% to $157.3 million
* Net income increased 26.1% to $16.8 million
* Diluted earnings per share increased 29.6% to $0.35
* EBITDA* increased 29.0% to $42.6 million
* EBITDA guidance remains at $166.0 million to $170.0 million for the full year
David L. Wenner, President and Chief Executive Officer of B&G Foods, stated, “We are very pleased with the record results for the quarter; our significant growth in net sales, net income and EBITDA in the first quarter reflects solid performance of the Culver Specialty Brands in our first full quarter following the acquisition. The acquisition produced results in line with our projections and has been very accretive to the overall performance of our business. Our base business, meanwhile, saw price gains as projected that more than compensated for a modest weakness in sales, caused in part by retailer and distributor inventory reductions and a warmer than usual Winter. For the full year, we are reaffirming our adjusted EBITDA guidance of $166 million to $170 million.”
Financial Results for the First Quarter of 2012
Net sales for the first quarter of 2012 increased 19.7% to $157.3 million from $131.4 million for the first quarter of 2011. Net sales of the Culver Specialty Brands, which B&G Foods acquired at the end of November 2011, contributed $25.6 million to the overall increase. The remaining $0.3 million net sales increase was attributable to $2.5 million of sales price increases largely offset by a $2.2 million unit volume decrease for the base business.
Gross profit for the first quarter of 2012 increased 26.7% to $56.8 million from $44.9 million in the first quarter of 2011. Gross profit expressed as a percentage of net sales increased 2.0 percentage points to 36.1% for the first quarter of 2012 from 34.1% in the first quarter of 2011. The increase in gross profit expressed as a percentage of net sales was primarily attributable to pricing gains of $2.5 million and a sales mix shift to higher margin products (primarily due to the Culver Specialty Brands acquisition), partially offset by commodity cost increases. Operating income increased 31.2% to $38.2 million for the first quarter of 2012, from $29.1 million in the first quarter of 2011.
Net interest expense for the first quarter of 2012 increased $3.8 million or 46.4% to $12.0 million from $8.2 million for the first quarter of 2011. The increase in net interest expense for the first quarter was primarily attributable to an increase in the Company’s indebtedness to finance the Culver Specialty Brands acquisition, and an additional $0.8 million of deferred debt financing costs and bond discount relating to the acquisition financing.
The Company’s reported net income under U.S. generally accepted accounting principles (GAAP) was $16.8 million, or $0.35 per diluted share, for the first quarter of 2012, as compared to reported net income of $13.3 million, or $0.27 per diluted share, for the first quarter of 2011.
For the first quarter of 2012, EBITDA increased 29.0% to $42.6 million from $33.0 million for the first quarter of 2011.
* Please see “About Non-GAAP Financial Measures” below for the definition of the term EBITDA and a reconciliation of EBITDA to the most comparable GAAP financial measures.
B&G Foods reaffirmed its EBITDA guidance for fiscal 2012 of approximately $166.0 million to $170.0 million.
B&G Foods will hold a webcast and conference call at 4:30 p.m. ET today, April 19, 2012. The call will be webcast live from B&G Foods’ website at www.bgfoods.com under “Investor Relations—Company Overview.” The call can also be accessed live over the phone by dialing (800) 967-7188 for U.S. callers or (719) 457-1529 for international callers.
A replay of the call will be available one hour after the call and can be accessed by dialing (877) 870-5176 or (858) 384-5517 for international callers; the password is 1400634. The replay will be available from April 19, 2012, through May 3, 2012. Investors may also access a web-based replay of the call at the Investor Relations section of B&G Foods’ website, www.bgfoods.com.
About Non-GAAP Financial Measures
“EBITDA” (net income before net interest expense, income taxes, depreciation and amortization and loss on extinguishment of debt) is a “non-GAAP financial measure.” A non-GAAP financial measure is a numerical measure of financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in B&G Foods’ consolidated balance sheets and related consolidated statements of operations and cash flows. Non-GAAP financial measures should not be considered in isolation or as a substitute for the most directly comparable GAAP measures. The Company’s non-GAAP financial measures may be different from non-GAAP financial measures used by other companies.
Additional information regarding EBITDA, and a reconciliation of EBITDA to net income and to net cash provided by operating activities is included below for the first quarters of 2012 and 2011, along with the components of EBITDA.
About B&G Foods, Inc.
B&G Foods and its subsidiaries manufacture, sell and distribute a diversified portfolio of high-quality, shelf-stable foods across the United States, Canada and Puerto Rico. B&G Foods’ products include hot cereals, fruit spreads, canned meats and beans, spices, seasonings, marinades hot sauces, wine vinegar, maple syrup, molasses, salad dressings, Mexican-style sauces, taco shells and kits, salsas, pickles, peppers and other specialty food products. B&G Foods competes in the retail grocery, food service, specialty, private label, club and mass merchandiser channels of distribution. Based in Parsippany, New Jersey, B&G Foods’ products are marketed under many recognized brands, including Ac’cent, B&G, B&M, Baker’s Joy, Brer Rabbit, Cream of Rice, Cream of Wheat, Don Pepino, Emeril’s, Grandma’s Molasses, Joan of Arc, Las Palmas, Maple Grove Farms of Vermont, Molly McButter, Mrs. Dash, Ortega, Polaner, Red Devil, Regina, Sa-són, Sclafani, Sugar Twin, Trappey’s, Underwood, Vermont Maid and Wright’s. B&G Foods also sells and distributes two branded household products, Static Guard and Kleen Guard.
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