This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Penford Reports First Quarter Fiscal Year 2013 Financial Results

Stocks in this article: PENX

Penford Corporation (Nasdaq: PENX), a leader in ingredient systems for industrial and food applications, today reported first quarter 2013 results.

For the first quarter ended November 30, 2012 consolidated sales increased 4.5% to $94.9 million from $90.7 million a year ago. The Company reported first quarter net income of $1.7 million, or $0.14 per diluted share, compared with net income of $0.6 million or $0.05 per diluted share last year.

A table summarizing quarterly and annual financial results is shown below:

         
Penford Corporation – Financial Highlights
(In thousands) Q1 FY 13 Q4 FY 12 Q3 FY 12 Q2 FY 12 Q1 FY 12
 
Food Ingredients:
Sales $ 27,654 $ 25,543 $ 26,173 $ 24,904 $ 25,924
Gross margin 8,104 8,098 8,225 7,626 8,221
Operating income 5,355 5,028 5,362 5,247 5,959
Depreciation and amortization 485 473 512 498 505
 
Industrial Ingredients:
Sales $ 67,205 $ 65,962 $ 66,751 $ 61,284 $ 64,822
Gross margin 5,154 3,149 3,229 1,775 3,586
Operating income (loss) 1,387 (767 ) 75 (985 ) 743
Depreciation and amortization 2,813 2,781 2,772 2,697 2,629
 
Consolidated:
Sales $ 94,859 $ 91,505 $ 92,924 $ 86,188 $ 90,746
Gross margin 13,258 11,247 11,454 9,401 11,808
Operating income 4,020 476 3,573 1,650 4,359
Depreciation and amortization 3,383 3,409 3,632 3,574 3,512
 

Highlights for the first quarter are as follows:

Food Ingredients Division

  • Food Ingredients reported record quarterly sales of $27.7 million.
  • Revenue gains of 6.7% were primarily led by strong sales in protein and sauces end markets. The revenue increase was partially offset by a 3% decline in sales of coatings applications, which reflected a pipeline build from a new product introduction in the year ago quarter.
  • Operating income declined 10% due to higher investment spending in R&D and commercial resources.

Industrial Ingredients Division

  • Revenue for the first quarter increased 4% to $67.2 million on growth in industrial starch volumes, as well as contributions from the Carolina Starches business acquired in January 2012.
  • The revenue gain was partially offset by lower ethanol sales, down 28% from weaker pricing and lower volume. The Industrial Division shifted more of its production to higher margin starches. Ethanol revenue represented 35% of Industrial sales in the first quarter, down from 50% last year.
  • Gross margin improved 44% to $5.2 million, and operating income rose 87% over the prior year on higher starch sales, lower unit costs and better manufacturing yields, but slightly offset by increased investment in R&D and commercial support for the Company’s bioproducts platform.
  • During the quarter the Company received approval from the City of Cedar Rapids, IA for an agreement which will permit the Company to acquire an 11 acre park adjacent to the Company’s Cedar Rapids plant for future expansion of the Company’s bioproducts and other operations.

Consolidated Results

  • Interest expense declined by 55% to $1.1 million in the first quarter of fiscal 2013, reflecting the complete redemption of the Series A 15% Preferred Stock in fiscal 2012.
  • The Company’s effective tax rate in the first quarter of 2013 was 38.5% compared to 70% for the same period last year. The decrease in the effective rate was primarily due to the redemption of the Company’s preferred stock. Dividends and discount accretion on the preferred stock, which were reported as interest expense, were not deductible for tax purposes.

Conference Call

Penford will host a conference call to discuss fiscal 2013 first quarter results today, January 9, 2013 at 7:30 a.m. Mountain Time (9:30 a.m. Eastern Time). Access information for the call and webcast can be found at www.penx.com. To participate in the call on January 9, 2013, please phone 1-877-407-9205 at 7:20 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 seven manufacturing and/or research locations in the United States.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs