Michael Foods Group expects Q1 net sales to total US$474M, EBITDA expected to be approximately US$48M; company to release official results in May
April 17, 2014
– Michael Foods Group, Inc. today reported preliminary financial results for the first quarter of 2014. Net sales for the quarter ended March 29, 2014 are expected to be $474 million.
Earnings before interest, taxes, depreciation, amortization ("EBITDA") and other adjustments ("adjusted EBITDA," as defined in the Company's credit facility) for the quarter ending March 29, 2014 are expected to be approximately $48 million.
Michael Foods Group, Inc. uses adjusted EBITDA as a measurement of financial results, as an indication of the relative strength of its operating performance, and to determine incentive compensation levels. Management believes that EBITDA and adjusted EBITDA provide potential investors with useful information with which to analyze and compare with other companies in our industry our operating performance and our ability to service debt.
Commenting on the results, President and Chief Executive Officer James E. Dwyer, Jr. said, "As discussed on our March debt holder call, our Q1 2014 results were unfavorably impacted by record high dairy costs and high soybean meal commodity costs. Also, weather-related disruptions to our manufacturing facilities, customer distribution centers and transportation-related costs as a whole were a significant headwind for the quarter. We have announced and executed various pricing actions across our businesses to reflect the current cost environment."
Michael Foods Group, Inc. will release its final results in May, after its quarterly review is complete.
Michael Foods Group, Inc., based in Minnetonka, Minnesota, is a producer and distributor of food products to the foodservice, retail and food-ingredient markets. Its principal products are egg products, refrigerated potato products, cheese and other dairy-case products.