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,|
|Food Ingredients Division:|
|Depreciation and amortization||519||512||1,551||1,515|
|Industrial Ingredients Division:|
|Operating income (loss)||565||75||653||%||1,500||(161||)|
|Depreciation and amortization||2,723||2,772||8,326||8,098|
|Net income (loss)||2,058||(5,452||)||4,956||(5,200||)|
|Depreciation and amortization||3,324||3,632||10,128||10,718|
- 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.
- 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.
- 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.
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