This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Penford Reports Third Quarter Fiscal Year 2013 Financial Results

Penford Corporation (Nasdaq:PENX), a leader in ingredient systems for industrial and food applications, today reported third quarter and year-to-date fiscal year 2013 results. Consolidated sales for the quarter ended May 31, 2013 increased 9% to $121.7 million from $111.3 million a year ago.

The Company reported third quarter net income of $2.1 million, or $0.16 per diluted share, compared with a net loss of $5.5 million or $0.44 per diluted share a year ago.

Consolidated sales for the first nine months of fiscal 2013 rose to $349.8 million and operating income increased to $10.8 million. The Company reported net income for this period in fiscal 2013 of $5.0 million, or $0.39 per diluted share, compared with a net loss of $5.2 million, or $0.42 per diluted share, for the preceding year.

A table summarizing quarterly and year-to-date financial results is shown below:

Penford Corporation – Financial Highlights
      Three Months Ended May 31,       Nine Months Ended May 31,
(In thousands)            










Food Ingredients Division:
Sales $ 28,535 $ 26,173 9 % $ 82,793 $ 77,001 8 %
Gross margin 9,056 8,225 10 % 25,288 24,068 5 %
Operating income 6,206 5,362 16 % 17,097 16,563 3 %
Depreciation and amortization 519 512 1,551 1,515
Industrial Ingredients Division:
Sales $ 93,184 $ 85,110 9 % $ 267,030 $ 245,927 9 %
Gross margin 4,135 3,229 28 % 12,162 8,595 42 %
Operating income (loss) 565 75 653 % 1,500 (161 )
Depreciation and amortization 2,723 2,772 8,326 8,098
Sales $ 121,719 $ 111,283 9 % $ 349,823 $ 322,928 8 %
Gross margin 13,191 11,454 15 % 37,450 32,663 15 %
Operating income 4,275 3,573 20 % 10,825 9,582 13 %
Net income (loss) 2,058 (5,452 ) 4,956 (5,200 )
Depreciation and amortization 3,324 3,632 10,128 10,718

Highlights for the quarter are as follows:

Food Ingredients Division

  • Food Ingredients reported record quarterly sales, gross margin and operating income.
  • Third quarter revenue grew 9% to $28.5 million, with volume gaining 6% and average unit pricing up 3%.
  • Sales into the gluten-free, dairy, pet and soups/sauces/gravies segments rose by double-digit rates.
  • Gross margin rose 10% in the quarter to $9.1 million and operating income increased 16% to $6.2 million, primarily from revenue and volume gains.

Industrial Ingredients Division

  • Revenue for the third quarter grew by 9% to $93.2 million on higher ethanol selling prices and industrial specialty starch volumes. Sales for the third quarter and year-to-date fiscal 2013 and 2012 include sales of co-products from the corn wet milling operations, primarily corn gluten meal, corn gluten feed and corn germ.
  • Gross margin expanded 28% to $4.1 million on higher unit pricing of industrial starch and ethanol and improved industrial starch mix.
  • Operating income rose in the third quarter of fiscal 2013 to $0.6 million from $0.1 million in the prior year. Margin expansion was partially offset by additions to the Industrial division’s sales and research and development resources.

Consolidated Results

  • Interest expense declined by 57% in the third quarter and year-to-date, reflecting lower borrowing costs due to the redemption of the Company’s Series A 15% Preferred Stock in the second half of fiscal 2012.
  • The Company’s year-to-date effective tax rate was 37%. Since the redemption of the Company’s preferred stock, the Company’s effective tax rate has stabilized at a rate approximating the statutory federal and state income tax rates.
  • Consolidated cash flow from operations improved by $13.9 million on higher earnings and lower working capital.
  • Bank loans were reduced $7.0 million in the third quarter.

Conference Call

Penford will host a conference call to discuss fiscal 2013 third quarter results today, July 9, 2013 at 8:00 a.m. Mountain Time (10:00 a.m. Eastern Time). Access information for the call and web-cast can be found at To participate in the call on July 9, 2013, please phone 1-877-407-9205 at 7:50 a.m. Mountain Time. A replay will be available at

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

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