B&G Foods Reports Strong First Quarter Net Sales and Earnings Growth
22 Apr 2013 --- B&G Foods, Inc. announced financial results for the first quarter of 2013.
Highlights (vs. year-ago quarter where applicable):
- Net sales increased 8.8% to $171.2 million
- Net income increased 17.0% to $19.6 million
- Diluted earnings per share increased 5.7% to $0.37
- EBITDA* increased 7.2% to $45.7 million
- EBITDA guidance increased to a range of approximately $180.0 million to $184.0 million for the full year
David L. Wenner, President and Chief Executive Officer of B&G Foods, stated, “Our business performed very well in the first quarter, growing by 8.8% via a healthy mix of base business volume gains and acquisition growth. The New York Style and Old London acquisition completed in October 2012 performed to expectations in both sales and earnings. Growth in the base business came from our top two tiers of brands, which together contributed a 3.0% net sales gain for the quarter.”
Financial Results for the First Quarter of 2013
Net sales for the first quarter of 2013 increased $13.9 million, or 8.8%, to $171.2 million from $157.3 million for the first quarter of 2012. Net sales of the New York Style and Old London brands, which B&G Foods acquired at the end of October 2012, contributed $11.3 million to the overall increase. Net sales from our base business increased $2.6 million, or 1.6%, of which $2.5 million was attributable to a unit volume increase and $0.1 million was attributable to net price increases.
Gross profit for the first quarter of 2013 increased 3.5% to $58.8 million from $56.8 million in the first quarter of 2012. Gross profit expressed as a percentage of net sales decreased 1.7 percentage points to 34.4% for the first quarter of 2013 from 36.1% in the first quarter of 2012. The decrease in gross profit expressed as a percentage of net sales was primarily attributable to the full quarter effect of the New York Style and Old London brands accounting for 0.8 percentage points of the decrease. Increased trade spending accounted for 0.3 percentage points of the decline, with the remainder related to a sales mix shift to lower margin products. Operating income increased 5.4% to $40.2 million for the first quarter of 2013, from $38.2 million in the first quarter of 2012.
Net interest expense for the first quarter of 2013 decreased $2.2 million or 18.5% to $9.8 million from $12.0 million for the first quarter of 2012. The decrease in net interest expense for the first quarter was primarily attributable to our redemption of $101.5 million principal amount of our outstanding senior notes in December 2012 and scheduled principal payments on our tranche A and tranche B term loans.
The Company’s reported net income under U.S. generally accepted accounting principles (GAAP) was $19.6 million, or $0.37 per diluted share, for the first quarter of 2013, as compared to reported net income of $16.8 million, or $0.35 per diluted share, for the first quarter of 2012.
For the first quarter of 2013, EBITDA increased 7.2% to $45.7 million from $42.6 million for the first quarter of 2012.
Guidance
B&G Foods increased its EBITDA guidance for fiscal 2013 to a range of approximately $180.0 million to $184.0 million.
