US: Michael Foods 2013 earnings rise
Michael Foods sales, earnings rise
Michael Foods, the US egg-to-dairy group, has booked an increase in sales and earnings for 2013.
The company revealed today (21 March) that net earnings rose to US$50.36m in the 12 months to 28 December, up from $30.09m in the prior year. Adjusted EBITDA totalled $257.84m in the period, compared to $242.8m in 2012.
Sales growth at the company's egg and potato businesses offset a decline in cheese revenues. Total sales increased to $1.95bn in the period, compared to $1.86bn the year before.
"We saw solid growth across the egg and potato businesses behind customer wins. The cheese and dairy business began to respond in the fourth quarter to our focus on core product lines and markets. We are delighted to deliver another record year of EBITDA," chairman and CEO Jim Dwyer commented.
Michael Foods has been the subject of recent takeover speculation, with reports suggesting interest from Tyson Foods. Fresh speculation this week has added Treehouse Foods to the list of would-be acquirers.
Michael Foods Reports Fourth Quarter Results
MINNETONKA, Minn., March 21, 2014 /PRNewswire/ -- Michael Foods Group, Inc. today reported financial results for the fourth quarter of 2013.
Net sales for the quarter ended December 28, 2013 were $512.7 million, compared to $503.6 million in 2012, an increase of 1.8%. Net earnings for the quarter ended December 28, 2013 were $15.9 million, compared to $13.7 million in 2012. Net sales for the year ended December 28, 2013 were $1,948.3 million, compared to $1,856.1 million in 2012, an increase of 5%. Net earnings for the year ended December 28, 2013 were $50.4 million, compared to $30.1 million in 2012.
Earnings before interest, taxes, depreciation, amortization ("EBITDA") and other adjustments ("adjusted EBITDA," as defined in the Company's credit facility) for the quarter ended December 28, 2013 were $69.7 million, compared to $67.3 million in 2012. Adjusted EBITDA for the year ended December 28, 2013 were $257.8 million, compared to $242.8 million in 2012, an increase of 6.2%.
"Our team at Michael Foods performed well in a volatile and competitive 2013 environment, delivering excellent Q4 and full year results. We saw solid growth across the egg and potato businesses behind customer wins. The cheese and dairy business began to respond in the fourth quarter to our focus on core product lines and markets. We are delighted to deliver another record year of EBITDA." said Jim Dwyer, Chairman and CEO.
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.
Original source: Michael Foods Group
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