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Q4 net sales increase 22%; full year net sales increase 19%
Q4 net income of $0.01 earnings per share; prior-year net income of $0.89 per share included $0.77 per share in asset purchase gain (net of tax effect)
Operating income improves from increased sales of premium spirits and specialty ingredients, but difficult industry conditions persist
Positives for 2013 include new orders for whiskey and bourbon distillates, higher anticipated ingredient sales, and planned improvements at alcohol plants
ATCHISON, Kan., March 12, 2013 (GLOBE NEWSWIRE) -- MGP Ingredients, Inc. (Nasdaq:MGPI) (the "Company") today reported results for the fourth quarter and fiscal year ended December 31, 2012. Net income for the fourth quarter was $180,000, or $0.01 earnings per diluted share, compared with net income of $16.1 million, or $0.89 per diluted share, in the prior year. Net Income in the prior-year period includes a $13.0 million, or $0.77 per diluted share, asset acquisition gain (net of tax effect), associated with the acquisition of the company's Indiana distillery.
Net sales for the fourth quarter increased by 22 percent over the year ago period. Significantly higher beverage alcohol sales more than offset a reduction in sales of alcohol for industrial applications. The Indiana distillery continues to increase production of premium spirits, including bourbon and rye whiskeys. Higher ingredient sales in the fourth quarter were paced by strong gains for MGP's Fibersym® resistant starch, which increases dietary fiber levels while reducing the caloric content of bakery and prepared foods.
Fourth quarter gross profit improved significantly to $7.4 million, or 8.6 percent of net sales, compared with gross profit of $155,000 in the prior-year quarter. Income from operations was $970,000 compared to a loss of $7.3 million in the prior year period (excluding $13.0 million related to the above-mentioned asset purchase gain). Driving the improved profitability was a higher mix of premium products sold in both the distillery and ingredient segments. Other contributing factors include improved unit volume and pricing for the distiller's feed by-product. Net income for the current fourth quarter also included a net loss in equity earnings of $555,000 from the ICP joint venture.