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Company reports Q4 diluted income of $0.14 per share vs. year-ago diluted loss per share of $0.18
Q4 pre-tax profits for ingredients segment up substantially, while pre-tax profits in distillery segment match prior year's fourth quarter level; 12-month pre-tax profits in both segments rise significantly vs. all of fiscal 2009
Full year fiscal 2010 diluted income of $0.51 per share compares with diluted loss of $4.17 in prior year
Debt reduced by $27.8 million from beginning to end of fiscal 2010
ATCHISON, Kan., Aug. 23, 2010 (GLOBE NEWSWIRE) -- MGP Ingredients, Inc. (Nasdaq:MGPI) today reported net income of $2,476,000, or $0.14 in diluted earnings per share, for the fourth quarter of fiscal 2010, which ended June 30, 2010. This compares with a net loss of $2,916,000, or $0.18 in diluted loss per share, for the fourth quarter of fiscal 2009. Total sales in the fourth quarter of fiscal 2010 were $54,359,000, a 4 percent increase above sales of $52,233,000 for the same period one year ago. The sales improvement was principally due to higher sales of high quality food grade alcohol that resulted from increased output from the company's previously announced joint venture, Illinois Corn Processing (ICP), LLC.
Historically, the company has reported its sales net of customer-paid freight costs. The fourth quarter and annual sales presented in this report, as well as previous quarterly and yearly amounts, are now stated gross, and all freight costs are now included in cost of sales.
For the 12 months of fiscal 2010, the company had net income of $8,738,000, or $0.51 in diluted earnings per share, on sales of $201,971,000. That compares to a net loss of $69,123,000, or $4.17 in diluted loss per share, on sales of $291,812,000 for fiscal 2009.
"This past fiscal year represents a significant and remarkably quick return to profitability," said Tim Newkirk, president and chief executive officer. "We ended the year on a strong note paced by higher sales of food grade alcohol and an improved sales mix of higher value specialty ingredients. At our ICP joint venture, we moved closer to full capacity volumes in the fourth quarter. The reduction in costs associated with the start-up of operations there, along with volume gains, produced a substantial upturn from the immediately preceding third quarter. In the fourth quarter, we also saw continued progress in sales of our specialty resistant wheat starch, which provides the nutritional benefits of fiber while also possessing a desirable flavor profile. With a growing focus on health and wellness, food companies are searching for new ways to make their products more nutritious and more convenient without sacrificing taste. MGPI's fiber platform is especially well-suited for a wide variety of prepared packaged foods. Our newly configured sales and customer service teams are having a positive impact as measured by a growing development pipeline and, more importantly, an increasing number of customer products being formulated with our specialty ingredients."