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AdvancePierre Foods Reports Third Quarter 2016 Financial Results
Third Quarter Net Income of $22 million; Adjusted Net Income of $35 million; Adjusted EBITDA of $79 million
Raises full year expectation for Adjusted EBITDA to a range of $290 to $295 million; expects $0.14 per share quarterly dividend; reduces net leverage
Cincinnati, OH November 9, 2016 AdvancePierre Foods Holdings, Inc. (NYSE:APFH) (AdvancePierre or the Company), a leading national producer and distributor of sandwiches, sandwich components and other entrées and snacks, today reported financial results for the third quarter and nine months ended October 1, 2016.
Third Quarter Highlights
· Third quarter GAAP net income of $22.4 million, or $0.29 per diluted share, and Adjusted Net Income1 of $34.8 million, or $0.46 per diluted share, adversely impacted by $9.3 million, or $0.12 per diluted share, of one-time IPO-related non-cash equity compensation expenses
· Third quarter net sales of $393.7 million and volume growth in AdvancePierres core segments of 0.7%
· Third quarter Adjusted EBITDA1 of $79.0 million
· Reduction of net leverage to 3.4 times trailing twelve month Adjusted EBITDA
Full Year 2016 Outlook
· Net sales in the range of $1.545 billion to $1.575 billion, including core segment volume growth of 2.0-2.5%
· Adjusted EBITDA in the range of $290 million to $295 million
· Adjusted Diluted Net Income per Share in the range of $1.65 to $1.75
· Expect to pay quarterly dividend of $0.14 per share in the fourth quarter, subject to declaration by the board of directors
We are pleased to report another quarter of strong financial performance, driven by continuing execution of APF Way productivity initiatives, including our dynamic pricing model, and improvement in the mix of our business said AdvancePierre President and Chief Executive Officer John Simons. As demonstrated in these results as well as our recently announced strategic acquisition of Allied Specialty Foods, we are delivering on our commitments to invest in our core business to continue improving our portfolio mix, and adding accretive acquisitions to accelerate our future growth.
1 See About Non-GAAP Financial Measures
Consolidated Financial Results for the Third Quarter
Net sales for the third quarter of 2016 were $393.7 million compared to $407.2 million for the third quarter of 2015. The decline was primarily attributable to the Companys elimination of lower margin business in its Industrial segment, which reduced net sales by $14.0 million, and to strategic price and trade spending investments to reflect lower raw material costs, which reduced net sales by $8.8 million. Excluding the impact of Industrial segment volume, volume and mix in the Companys three core segments, including sales volume growth of 0.7%, increased net sales by $9.3 million.
Gross profit for the third quarter of 2016 increased by $17.7 million to $105.4 million, or 26.8% of net sales compared to $87.7 million, or 21.5% of net sales, for the third quarter of 2015, reflecting an increase of 530 basis points of margin. Gross profit increased primarily due to positive price realization net of raw material cost movements, productivity improvements, and contributions from volume, partially offset by other increases in cost of goods sold.
The following information was filed by Advancepierre Foods Holdings, Inc. (APFH) on Wednesday, November 9, 2016 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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