Feb. 19, 2013
/PRNewswire/ -- Post Holdings, Inc. (NYSE: POST), a leading manufacturer, marketer and distributor of branded ready to eat cereals, today confirmed its previously issued guidance for fiscal 2013 Adjusted EBITDA to be between
$210 million and $225 million
, after considering the estimated year-over-year unfavorable commodity cost effect of between
$10 million and $15 million
. Post management continues to expect that capital expenditures will be in the range of
$30 million to $35 million
, inclusive of between
$11 million and $13 million
of capital costs associated with establishing stand-alone information systems separate from Ralcorp. Finally, management expects net interest expense to be between
$80 million and $83 million
in fiscal 2013.
Use of Non-GAAP Measures
Management has determined that the Adjusted EBITDA metric presented herein is a key metric that will help investors understand the ultimate income and near-term cash flows generated by our business. Adjusted EBITDA is a non-GAAP measure which represents net earnings excluding income taxes, net interest expense, net other nonoperating income/expense, depreciation and amortization, noncash stock based compensation, nonrecurring cash compensation for retention/severance, costs to effect Post's separation from Ralcorp and to establish stand-alone systems and processes, mark to market adjustments on economic hedges and intangible asset impairments, if any. The Company believes that Adjusted EBITDA is useful to an investor in evaluating the Company's operating performance and liquidity because (i) it is widely used to measure a company's operating performance without regard to items such as depreciation and amortization, which can vary depending upon accounting methods and the book value of assets, (ii) it presents a meaningful measure of corporate performance exclusive of the Company's capital structure and the method by which the assets were acquired, and (iii) it is a widely accepted financial indicator of a company's ability to service its debt, as the Company is required to comply with certain covenants and limitations that are based on variations of EBITDA in the Company's financing documents. The calculation of Adjusted EBITDA is not specified by
generally accepted accounting principles. Our calculation of Adjusted EBITDA may not be comparable to similarly-titled measures of other companies.