Michael Foods Reports Second Quarter Results
12 Aug 2013 --- Michael Foods Group, Inc. today reported financial results for the second quarter of 2013. Net sales for the quarter ended June 29, 2013 were $464.4 million, compared to $436.7 million in 2012, an increase of 6.3%. Net earnings for the quarter ended June 29, 2013 were $9.6 million, compared to a loss of $1.7 million in 2012.
Net sales for the six months ended June 29, 2013 were $948.6 million, compared to $881.5 million in 2012, an increase of 7.6%. Net earnings for the six months ended June 29, 2013 were $23.9 million, compared to $7.6 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 June 29, 2013 were $59.5 million, compared to $52.7 million in 2012, an increase of 13%. Adjusted EBITDA for the six months ended June 29, 2013 were $126.8 million, compared to $114.5 million in 2012, an increase of 10.7%
“Michael Foods performed well in the second quarter, driven by continued growth in eggs and potatoes, cost favorability across our operations and reduced legal expenses versus year ago. Cheese and dairy products continue to lag in the face of competitive spending that we are selectively defending. Our integration of the Primera Foods egg business is going according to our acquisition plan,” 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.
Certain items contained in this release may be “forward-looking statements.” Forward-looking statements include statements concerning our plans, objectives, goals, strategies, future events, future sales or performance, capital expenditures, financing needs, ability to fund operations, intentions relating to acquisitions, our competitive strengths and weaknesses, our business strategy and the trends we anticipate in the industries and economies in which we operate and other information that is not historical information. When used herein, the words “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes” and variations of such words or similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance.
All forward-looking statements are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith, and we believe there is a reasonable basis for them, but there can be no assurance that our expectations, beliefs and projections will be realized. There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in this release, including the factors described under “Risk Factors” in our 2012 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 22, 2013. Important factors that could cause our actual results to differ materially from the forward-looking statements we make in this release include changes in domestic and international economic conditions.
