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 $0.12 per diluted share last year.
A table summarizing fourth quarter fiscal 2010 results from continuing operations is shown below:
|Penford Corporation – Financial Highlights|
|(In thousands except per share data)||4Q FY10||4Q FY09||FY10||FY09|
|Operating income (loss)||(5,098||)||745||(11,512||)||(11,154||)||(1||)|
|Operating income (loss)||(2,796||)||3,183||(4,860||)||(6,449||)|
|Net income (loss) from continuing operations||(3,126||)||1,339||(9,629||)||(6,645||)||(1||)|
|Diluted income (loss) per share – continuing operations||$||(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.
- 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.
- 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.
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