Penford Corporation (Nasdaq: PENX), a leader in renewable ingredient systems for industrial and food applications, today reported that consolidated sales for the quarter ended February 29, 2012 increased 16% to $86.2 million from $74.3 million a year ago. Gross margin expanded 37% to $9.4 million. The Company reported a second quarter net loss of $0.3 million or $0.03 per diluted share compared with a net loss of $1.6 million or $0.13 per diluted share last year.
A table summarizing quarterly financial results is shown below:
|Penford Corporation – Financial Highlights|
|(In thousands)||Q2 FY 12||Q1 FY 12||Q4 FY 11||Q3 FY11||Q2 FY11|
|Depreciation and amortization||498||505||486||510||553|
|Operating income (loss)||(985)||743||(3,023)||(734)||(1,103)|
|Depreciation and amortization||2,697||2,629||2,691||2,712||2,696|
|Operating income (loss)||1,650||4,359||(1,518)||2,506||488|
|Depreciation and amortization||3,574||3,512||3,556||3,598||3,618|
- Food Ingredients reported record second quarter sales, gross margin and operating income.
- Revenue grew more than 40% to $24.9 million. Sales of coating applications expanded over 30% reflecting volume growth and improved pricing. Revenue from applications for protein, bakery, companion pet treats, and gluten free segments expanded at double-digit rates.
- Gross margin increased over 40% to $7.6 million on higher pricing and volume gains from existing customers and new business.
- Operating income rose 47% to $5.2 million.
- Revenue increased 8% to $61.3 million. The increase includes revenue from the Carolina Starches business, growth in specialty starches, and higher processing fees. Improved revenue was partially offset by a 6% decline in ethanol sales partly due to production downtime to undertake equipment maintenance.
- Ethanol sales were $24.2 million. Comparable industry crush margins fell by about $0.08 per gallon or 15% from a year ago. Second quarter industry crush margins were about $0.45 per gallon or 50% below the first quarter of fiscal 2012.
- Sales of specialty bio-products grew over 25% on new business, higher volumes at existing accounts and unit pricing.
- Gross margin expanded $0.3 million from a year ago, as higher average unit selling prices for industrial starch outpaced rising corn and chemical costs. Lower natural gas costs also contributed to a higher margin.
- Corporate expense rose $0.6 million on higher professional fees, employee costs and acquisition-related charges.
- Bank debt rose to $30.7 million reflecting the $8.5 million acquisition of Carolina Starches in January 2012.
- The effective tax rate for the first half was 82%, which reflects non-deductible preferred stock dividends.
- The Company intends to provide notice to the holder of its Series A 15% Cumulative Non-Voting Non-Convertible Preferred Stock that approximately $20 million of principal and accrued dividends will be redeemed next month. The stock will be called without premium at issue price.
- The redemption will be funded by utilizing the Company’s existing revolving debt facility.
- The Company closed on the acquisition of the Carolina Starches business and the integration is proceeding as planned.
- Revenues, cost of goods sold and a portion of the selling, general and administrative expenses reported by Carolina Starches since the acquisition have been included in the results of operations of the Industrial Ingredients segment.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV