Total quarterly sales increase 21 percent above a year ago driven mainly by food grade alcohol
FY 2011 Q2 income from operations increases by $3.8 million over prior year
ATCHISON, Kan., Feb. 9, 2011 (GLOBE NEWSWIRE) -- MGP Ingredients, Inc. (Nasdaq:MGPI) today reported net income of $3,242,000, or $0.18 in diluted earnings per share, for the second quarter of fiscal 2011, which ended December 31, 2010. This compares with net income of $4,778,000, or $0.29 in diluted earnings per share, for the second quarter of the prior fiscal year. Income from operations for the second quarter of fiscal 2011 increased to $4,344,000 compared with $504,000 a year ago. Net income for the second quarter of fiscal 2010 included several one-time items, the most significant of which was an income tax benefit of $4,659,000. The year-ago results also included a loss of $3,047,000 related to the formation of the company's distillery joint venture, Illinois Corn Processing, LLC (ICP). Total sales in the second quarter of fiscal 2011 were $57,951,000, a 21 percent increase from sales of $48,094,000 for the same period one year ago. The increase was principally due to higher sales of food grade alcohol. For the first six months of fiscal 2011, net income was $8,244,000, or $0.46 in diluted earnings per share. This compares with net income of $8,516,000, or $0.51 in diluted earnings per share, for the prior year period. Income from operations for the first half of fiscal 2011 rose to $7,909,000 from $5,148,000 for the first half of fiscal 2010. Total sales for the first six months of fiscal 2011 were $114,929,000, a 17 percent increase from sales of $98,343,000 for the same period one year ago. "The key to our improved performance lies in our operating profits," said Tim Newkirk, President and Chief Executive Officer. "We are pleased to report significant increases in sales and operating profits from a year ago. We also realize that we have further to go before we are executing at our highest level. On the distillery side, our growth continues to be driven by demand for high quality food grade alcohol. Further improvements to our performance in this segment were affected by higher corn and energy costs. We also experienced longer than anticipated production slowdowns at our Atchison distillery during the quarter. These slowdowns were related to a water supply disruption, along with distillery equipment repairs and upgrades, which have recently been completed. Going forward we see stronger production rates. Our ICP joint venture is approaching peak capacity in food grade alcohol. Start-up issues at ICP are largely behind us, but our contribution from the joint venture was impacted from higher costs during the quarter as the facility has continued to step up its total capacity utilization levels. We are squarely focused on maintaining our gross margins in this segment, where the general trend is positive."