Pinnacle Foods Finance LLC Reports Fiscal 2012 First Quarter Results
PARSIPPANY, N.J.--(May 10, 2012)--Pinnacle Foods Finance LLC announced its financial results for the quarter March 25, 2012. Net sales in the first quarter were $617 million, a 1.8% increase compared to $606 million last year. Net earnings in the first quarter was $10 million compared to net earnings of $20 million last year.
Pinnacle's Chief Executive Officer, Bob Gamgort said, “Despite continuing significant input cost inflation and a weak consumer environment, we remained focused on building our brands by increasing our investment behind new products, including the breakthrough Duncan Hines® Frosting Creations™, and in our high impact marketing programs. We expect input cost inflation to moderate in the second half of 2012 based on our current coverage and, therefore, our profit margins to improve.”
First Quarter 2012
Net sales were $617 million in the first quarter of 2012 compared to $606 million last year, a 1.8% increase. Net sales in our North American retail businesses increased 0.9%. We experienced strong growth in Duncan Hines® baking mixes and frostings, led by the launch of our Duncan Hines® Frosting Creations™ and in Birds Eye® Steamfresh® vegetables. We also launched our new Van de Kamp's® and Mrs. Paul's® ParchmentBake™ frozen seafood items.
Earnings before interest and taxes (EBIT) were $65 million in the first quarter of 2012 compared to $85 million a year ago, a decrease of 23%. EBIT was positively impacted by net pricing actions and productivity improvements which were more than offset by significantly higher input costs. Marketing and selling expense increased in support of Birds Eye® Steamfresh® vegetables and the launch of Duncan Hines® Frosting Creations™. Administrative and research and development expenses were flat with year ago. Adjusted EBITDA was $90 million in the first quarter of 2012 compared to $107 million last year, an decrease of 16%. Adjusted EBITDA is defined below under “Non-GAAP Financial Matters”.
Interest expense declined $1.7 million as we continue to de-leverage and our tax rate of 38.9% is down slightly from last year.
Recent Refinancing Activities
During April 2012, in order to extend our debt maturities and reduce our cash interest expense, we amended our Senior Secured Credit Facility to extend the maturity of $641 million of our Tranche B Term Loans by 2 1/2 years to October 2016, to borrow $400 million of Tranche E Term Loans due October 2018, to repay $313 million of Tranche D Term Loans and to extend the maturity of our $150 million revolving credit facility to April 2017. Using the net proceeds of the Tranche E Term Loans along with available cash, we redeemed all $199 million principal of our 10.625% Senior Subordinated Notes.
Conference Call Information
We will hold a conference call on Friday, May 11, 2012 at 1:00PM (ET) to discuss results for the fiscal quarter ended March 25, 2012.
To access the call, you can dial (866) 206-6154 and reference conference name: Pinnacle Foods Q1 Earnings Call. A replay of the call will be available beginning May 11, 2012 at 4:00 PM (ET) until May 25, 2012 by dialing 1-888-266-2081 and referencing Access Code 1577866.
About Pinnacle Foods Finance LLC
Millions of times a day in more than 85% of American households, consumers reach for Pinnacle Foods brands. We are a leading producer, marketer and distributor of high-quality branded food products, which have been trusted household names for decades. Headquartered in Parsippany, NJ, our business employs an average of approximately 4,300 employees. We are a leader in the shelf stable and frozen foods segments and our brands hold the #1 or #2 market position in 8 out of 12 major category segments in which they compete. Our Duncan Hines Grocery Division manages Leadership brands such as Duncan Hines® baking mixes and frostings, Vlasic® shelf-stable pickles and Mrs. Butterworth's® and Log Cabin® table syrups and Foundation brands such as Armour® canned meats, Brooks® and Nalley® chili and chili ingredients, Comstock® and Wilderness® pie and pastry fillings and Open Pit® barbecue sauces. Our Birds Eye Frozen Division manages Leadership brands such as Birds Eye®, Birds Eye Steamfresh®, C&W®, McKenzie's®, and Fresh like® vegetables, Birds Eye Voila!® complete bagged meals and Van de Kamp's® and Mrs. Paul's® seafood and Foundation brands such as Lender's® bagels,Celeste® pizza, Hungry-Man® dinners and entrées and Aunt Jemima® frozen breakfasts. Our Specialty Foods Division manages Tim's Cascade Snacks®, Hawaiian™ Kettle Style Potato Chips, Snyder of Berlin® and Husman's® in addition to our food service and private label businesses. Further information is available at www.pinnaclefoods.com.