US: B&G Foods benefiting from Unilever brands buy

B&G Foods Reports Second Quarter 2012 Financial Results

— Reaffirms Fiscal 2012 Guidance —

PARSIPPANY, N.J.--(BUSINESS WIRE)--Jul. 19, 2012-- B&G Foods, Inc. (NYSE: BGS) today announced financial results for the second quarter and first two quarters of 2012.

Highlights (vs. year-ago quarter where applicable):

Net sales increased 14.8% to $148.6 million

Net income increased 27.2% to $16.0 million

Diluted earnings per share increased 26.9% to $0.33

EBITDA* increased 30.6% to $39.6 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, “The significant increases in our net sales, net income, earnings per share and EBITDA during the second quarter reflect our continued success with the Culver Specialty Brands acquisition and our ability to achieve pricing gains in our base business to offset higher costs and volume weakness for the quarter in certain of our brands. We remain confident that we will deliver full-year results within our previously announced EBITDA guidance, which at the mid-point of the range reflects a 28% increase over fiscal 2011.”

Financial Results for the Second Quarter of 2012

Net sales for the second quarter of 2012 increased 14.8% to $148.6 million from $129.4 million for the second quarter of 2011. The Culver Specialty Brands, which B&G Foods acquired at the end of November 2011, contributed $19.5 million to our net sales for the quarter. For our base business, a sales price increase of $4.3 million offset by a $4.6 million unit volume decrease resulted in a $0.3 million net sales decline.

Gross profit for the second quarter of 2012 increased 22.7% to $51.8 million from $42.2 million in the second quarter of 2011. Gross profit expressed as a percentage of net sales increased 2.2 percentage points to 34.8% for the second quarter of 2012 from 32.6% in the second quarter of 2011. The increase in gross profit expressed as a percentage of net sales was primarily attributable to pricing gains of $4.3 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 33.3% to $35.1 million for the second quarter of 2012, from $26.3 million in the second quarter of 2011.

Net interest expense for the second quarter of 2012 increased $3.6 million or 42.2% to $11.9 million from $8.3 million for the second quarter of 2011. The increase in net interest expense for the second quarter was primarily attributable to an increase in the Company’s indebtedness to finance the Culver Specialty Brands acquisition, and an additional $0.9 million of amortization 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 $16.0 million, or $0.33 per diluted share, for the second quarter of 2012, as compared to reported net income of $12.6 million, or $0.26 per diluted share, for the second quarter of 2011. The Company’s adjusted net income for the second quarter of 2011 was $12.9 million.

For the second quarter of 2012, EBITDA increased 30.6% to $39.6 million from $30.3 million for the second quarter of 2011.

Financial Results for the First Two Quarters of 2012

Net sales for the first two quarters of 2012 increased 17.3% to $306.0 million from $260.9 million for the first two quarters of 2011. Net sales of the Culver Specialty Brands contributed $45.1 million to the Company’s net sales for the first two quarters of 2012. Net sales for the base business were flat, with a sales price increase of $6.8 million offset by a $6.8 million unit volume decline.

Gross profit for the first two quarters of 2012 increased 24.8% to $108.6 million from $87.0 million in the first two quarters of 2011. Gross profit expressed as a percentage of net sales increased 2.1 percentage points to 35.5% in the first two quarters of 2012 from 33.4% in the first two quarters of 2011. The increase in gross profit expressed as a percentage of net sales was primarily attributable to pricing gains of $6.8 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 32.2% to $73.3 million in the first two quarters of 2012, from $55.4 million in the first two quarters of 2011.

Net interest expense for the first two quarters of 2012 increased $7.4 million or 44.3% to $23.9 million from $16.5 million in the first two quarters of 2011. The increase in net interest expense for the first two quarters was primarily attributable to an increase in our indebtedness to finance the Culver Specialty Brands acquisition, and an additional $1.8 million of amortization of deferred debt financing costs and bond discount relating to the acquisition financing.

The Company’s reported net income under U.S. GAAP was $32.8 million, or $0.68 per diluted share, for the first two quarters of 2012, as compared to reported net income of $25.9 million, or $0.53 per diluted share, for the first two quarters of 2011. The Company’s adjusted net income for the first two quarters of 2011 was $26.1 million, and adjusted diluted earnings per share was $0.54.

For the first two quarters of 2012, EBITDA increased 29.7% to $82.2 million from $63.3 million for the first two quarters of 2011.

Guidance

B&G Foods reaffirmed its EBITDA guidance for fiscal 2012 of approximately $166.0 million to $170.0 million.

Original source: B&G Foods