This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Penford Reports Fourth Quarter And Fiscal 2010 Financial Results

Penford Corporation (Nasdaq: PENX), a leader in renewable ingredient systems for industrial and food applications, today reported that consolidated sales for the quarter ended August 31, 2010 were $63.0 million compared with $70.8 million a year ago. Consolidated sales for fiscal 2010 were $254.3 million compared to $255.6 million last year. Net loss from continuing operations was $3.1 million, or $0.26 per diluted share, for the quarter ended August 31, 2010 compared to net income from continuing operations of $1.3 million, or $0.12 per diluted share last year.

A table summarizing fourth quarter fiscal 2010 results from continuing operations is shown below:

Penford Corporation – Financial Highlights
               
(In thousands except per share data) 4Q FY10 4Q FY09 FY10 FY09
 
Industrial Ingredients:
Sales $ 45,633 $ 52,698 $ 184,016 $ 186,526
Gross margin (1,907 ) 3,512 461 (9,327 )
Operating income (loss) (5,098 ) 745 (11,512 ) (11,154 ) (1 )
 
Food Ingredients:
Sales $ 17,369 $ 18,059 $ 70,258 $ 69,030
Gross margin 5,406 5,940 22,993 21,618
Operating income 3,698 3,936 15,145 13,512
 
Consolidated:
Sales $ 63,002 $ 70,757 $ 254,274 $ 255,556
Gross margin 3,499 9,452 23,454 12,291
Operating income (loss) (2,796 ) 3,183 (4,860 ) (6,449 )
Net income (loss) from continuing operations (3,126 ) 1,339 (9,629 ) (6,645 ) (1 )
Diluted income (loss) per share – continuing operations $ (0.26 ) $ 0.12 $ (0.84 ) $ (0.59 )
Diluted income (loss) per share – discontinued operations   -     (3.24 )   1.41     (5.21 )
Diluted income (loss) per share $ (0.26 ) $ (3.12 ) $ 0.57   $ (5.80 )
 
Cash provided by (used in) continuing operations $ 10,068 $ (11,180 )
Shareholder Equity / Shares Outstanding $ 7.35 $ 7.04
(1) Operating loss in fiscal 2009 included $9.1 million of net insurance recoveries
 

Food Ingredients Results
  • Food Ingredients 4 th quarter sales fell 4% from prior year. French fry processors slowed orders to balance strong 3 rd quarter shipments. Second half fiscal 2010 sales were 8% above prior year.
  • Food revenue other than coatings expanded 5% this quarter, led by double-digit growth in bakery, dairy and sauces applications.
  • The pet category continues to gain momentum with annual sales increasing by 20% from the prior year.
  • Unit manufacturing costs declined by 2% in the quarter. Full year unit costs were 8% lower.
  • Full year volumes rose by 8%, led by 20% growth in non-coating formulations. These products now represent about 50% of the total food business mix.

Industrial Ingredients Results
  • Industrial Ingredient 4 th quarter sales declined $7.1 million and operating profit decreased $5.8 million on lower prices for core industrial starches serving the paper industry. Contract renewal discussions for calendar 2011 are underway.
  • Sales of Liquid Natural Additive applications grew by over 30% in the quarter.
  • Average ethanol pricing was comparable to the prior year during the fourth quarter.
  • Total industrial segment annual volumes grew 11%.
  • Unit manufacturing costs fell by 2% in the quarter. Full year unit costs were 15% lower.

Cash and Debt
  • Total debt and redeemable preferred stock were $55.6 million at year end.
  • Interest expense was $7.6 million compared with $5.6 million last year.
  • Cash provided by operations in fiscal 2010 was $10.1 million compared to cash used in operations of $11.2 million last year. Improvements in working capital contributed $4.7 million to cash in fiscal 2010.

Outlook
  • Conditions for industrial starch markets are improving, as paper industry demand strengthens modestly and supplier capacity utilization rates remain high.
  • Ethanol economics have improved significantly since the 4 th quarter, and provide an attractive return in the current market dynamics.
  • Cost containment programs will continue to improve the Company’s competitive position.
  • Product development work and customer trial activity in both food ingredients and industrial specialty products remains strong into the new fiscal year.

Conference Call

Penford will host a conference call to discuss fiscal 2010 financial and operational results today, November 12, 2010 at 9:00 a.m. Mountain time (11:00 a.m. Eastern time). Access information for the call and webcast can be found at www.penx.com. To participate in the call on November 12, 2010, please phone 1-877-407-9205 at 8:50 a.m. Mountain time. A replay will be available at www.penx.com.

About Penford Corporation

Penford Corporation develops, manufactures and markets specialty, natural-based ingredient systems for a variety of industrial and food applications. Penford has five manufacturing and/or research locations in the United States.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs