Del Monte Foods Company Reports Fiscal 2008 First Quarter Results.SAN FRANCISCO San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden -- Del Monte Foods Del Monte Foods (NYSE: DLM) is an American food production and distribution company based in San Francisco, California. It offers canned goods in Del Monte, S&W and Contadina brands, pet foods under Kibbles n' Bits, 9Lives, Pounce, Milk-Bone and several premium brands, Company (NYSE NYSE See: New York Stock Exchange : DLM See ILM. DLM - Distributed Lock Manager on distributed VMS systems. ): Announcement Highlights * First quarter net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight growth of 11.8% reflects volume growth, including the impact of the pet acquisitions and growth from new products, as well as net pricing actions. * Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $0.02 (includes $0.01 for transformation) compares to $0.04 in Q1F07 (which included $0.05 for transformation, purchase accounting, and integration) reflects volume growth, net pricing actions, higher SG&A expense, higher inflationary in·fla·tion·ar·y adj. Of, associated with, or tending to cause inflation: inflationary prices; inflationary policies. Adj. 1. and other operational cost increases, and higher interest expense. * F08 net sales guidance of 5% to 7% above F07 net sales of $3.4 billion maintained. * F08 diluted EPS from continuing operations now expected to be at the low end of prior guidance of $0.70-$0.74 (including $0.08 for transformation), driven by additional projected operational cost increases. Del Monte Foods First Quarter Results Del Monte Foods today reported net sales for the first quarter fiscal 2008 of $753.5 million compared to $674.1 million last year, an increase of 11.8%. Income from continuing operations was $3.5 million, or $0.02 earnings per share from continuing operations (EPS), compared to $7.4 million, or $0.04 EPS in the previous year. Results for the first quarter fiscal 2008 include $0.01 of transformation-related expense, as compared to first quarter fiscal 2007 results, which included $0.05 of transformation-related expense, purchase accounting impact, and integration expense. "I am pleased with the Company's quarterly topline performance driven by last year's pet acquisitions, new products and base business growth, primarily in fruit, resulting from strong marketplace performance," said Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a G. Wolford Wolford, located in Austria, is a marketer and manufacturer of hosiery and lingerie. In the late 1990s, it ran a famous campaign featuring the work of Helmut Newton. External links
The 11.8% increase in net sales was driven by strong volume growth (resulting primarily from the full quarter impact and continued momentum of Meow Mix and Milk-Bone Milk-Bone is a brand of dog treat. It was created in 1908 by the F. H. Bennett Biscuit Company, which operated a bakery on the Lower East Side of New York City. Originally named Maltoid, the biscuit was a bone-shaped treat made from minerals, meat products, and milk. , higher fruit sales, and growth from new products) and net pricing, partially offset by the volume loss associated with price increases ("elasticity"). First quarter EPS of $0.02 was down $0.02 from first quarter fiscal 2007 EPS of $0.04. Benefiting the quarter was the absence of 2 cents of purchase accounting and integration related to the acquisitions as well as 2 cents of lower transformation expense, as compared to the prior year. The impact from the positive topline mentioned above offset higher inflationary and other operational costs and higher marketing expense. EPS was also negatively impacted by the absence of the prior year gain from the sale of the perpetual PERPETUAL. That which is to last without limitation as to time; as, a perpetual statute, which is one without limit as to time, although not expressed to be so. license for S&W beans See JavaBeans. , which appeared as a fiscal 2007 credit to G&A, and higher interest expense primarily relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the acquisitions. Reportable Segments - First Quarter Results Consumer Products For the first quarter, Consumer Products net sales were $444.6 million, an increase of 5.7% from net sales of $420.6 million in the prior year period. The increase in Consumer Products net sales was due primarily to an increase in fruit sales, resulting mainly from new products and net pricing actions, partially offset by elasticity associated with the fruit pricing actions. These gains were partially offset by lower StarKist seafood seafood Edible aquatic animals excluding mammals, but including both freshwater and ocean creatures. Seafood includes bony and cartilaginous fishes, crustaceans, mollusks, edible jellyfish, sea turtles, frogs, sea urchins, and sea cucumbers. sales primarily due to lower albacore albacore: see tuna. albacore Large oceanic tuna (Thunnus alalunga) that is noted for its fine flesh. The streamlined bodies of these voracious predators are adapted to fast and continuous swimming. sales. Consumer Products operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. decreased 46.1% from $25.8 million in the first quarter fiscal 2007 to $13.9 million in the first quarter fiscal 2008. The absence of the prior year gain on the sale of the S&W beans perpetual license largely accounted for the decline in operating income as compared to last year. In addition, the Company experienced higher inflationary and other operational costs. Pet Products For the first quarter, Pet Products net sales were $308.9 million, an increase of 21.9% over net sales of $253.5 million in the prior year period. The increase was driven by volume gains primarily due to the full quarter impact and continued momentum of Meow Mix and Milk-Bone. Growth from new pet products and net pricing actions also positively contributed to the increase in net sales. Pet Products operating income increased 29.5% from $36.6 million in first quarter fiscal 2007 to $47.4 million in first quarter fiscal 2008. Benefiting the quarter was the absence of $6.9 million of integration expense and purchase accounting as compared to the prior year. Also contributing to the increase in operating income was the positive volume impact of the Meow Mix and Milk-Bone acquisitions and net pricing actions, partially offset by higher raw product costs (primarily related to increased demand for alternative fuels), and higher SG&A expense (due primarily to increased marketing spending). [TABLE OMITTED] Outlook Second Quarter Fiscal 2008 For the fiscal 2008 second quarter, the Company expects to deliver sales growth of approximately 7% to 9% over net sales of $893.5 million in the second quarter of fiscal 2007. Diluted EPS from continuing operations is expected to be approximately $0.13 to $0.17, including $0.02 of transformation-related expense, as compared to $0.12 in the second quarter of fiscal 2007, which included $0.06 of transformation-related expense, purchase accounting impact, and integration expense. [TABLE OMITTED] Fiscal 2008 For fiscal 2008, the Company continues to expect sales growth of 5% to 7% over fiscal 2007 net sales of $3,414.9 million. Fiscal 2008 net sales growth is expected to be driven by growth across both the Company's Consumer Products and Pet Products segments. During the first quarter fiscal 2008, the Company announced additional pricing actions effective July 2, 2007 on select StarKist products in response to higher fish costs. The Company now expects fiscal 2008 diluted EPS from continuing operations to be at the low end of its previous guidance of $0.70 to $0.74 (including $0.08 of transformation-related expenses), reflecting additional higher projected fish costs (which are anticipated to decline going forward from current levels in line with historic seasonal trends, but to continue to be at projected levels higher than fiscal 2007 fish costs) and additional higher expected grains, fats and oils costs relating to increased demand for alternative fuels. The Company reported $0.55 diluted EPS from continuing operations in fiscal 2007, which included $0.19 of transformation-related expense, purchase accounting impact and integration expense. [TABLE OMITTED] The Company reiterated its target for fiscal 2008 cash provided by operating activities, less cash used in investing activities, which continues to be in the range of $180 to $200 million. It also reiterated that it expects interest expense to be between $150 million to $160 million (reflecting the expected impact from the full year of debt relating to the pet acquisitions partially offset by anticipated lower interest rates) and capital expenditures to be between $100 and $110 million (which includes the expected spending related to the transformation initiatives). [TABLE OMITTED] [TABLE OMITTED] 1 May not sum due to rounding. Webcast Information Del Monte Foods will host a live audio webcast, accompanied by a slide presentation, to discuss its fiscal 2008 first quarter results and second quarter and full year outlook at 7:00 a.m. PT (10:00 a.m. ET) today. To access the live webcast and slides, go to www.delmonte.com, click on the Investor Tab and under Events click Q1 Fiscal 2008 Del Monte Foods Earnings Conference Call. Printable print·a·ble adj. 1. Capable of being printed or of producing a print: printable negatives. 2. Fit for publication: printable language. slides are expected to be available in advance of the call. Historical, quarterly results can be accessed at http://investors.delmonte.com. The audio portion of the webcast may also be accessed during the call (listen-only mode) as follows: 1-888-788-9432 (1-210-795-9068 outside the U.S. and Canada), verbal code: Del Monte Foods. The webcast and slide presentation will be available online following the presentation. About Del Monte Foods Del Monte Foods is one of the country's largest and most well known producers, distributors and marketers of premium quality, branded food and pet products for the U.S. retail market, generating more than $3.4 billion in net sales in fiscal 2007. With a powerful portfolio of brands including Del Monte Monte (Italian, Portuguese and Spanish meaning mount) may refer to various things: Monte is the name of several places: In Brazil
In 1995, the brand was acquired by Del Monte. ([R]), 9Lives([R]), Milk-Bone([R]), Pup-Peroni([R]), Meaty Bone([R]), Snausages([R]) and Pounce([R]), Del Monte products are found in nine out of ten U.S. households. The Company also produces, distributes and markets private label food and pet products. For more information on Del Monte Foods Company (NYSE: DLM) visit the Company's website at www.delmonte.com. Del Monte. Nourishing nour·ish tr.v. nour·ished, nour·ish·ing, nour·ish·es 1. To provide with food or other substances necessary for life and growth; feed. 2. Families. Enriching Lives. Every Day.(TM) Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains forward-looking statements conveying management's expectations as to the future based on plans, estimates and projections at the time the Company makes the statements. Forward-looking statements involve inherent risks and uncertainties and the Company cautions you that a number of important factors could cause actual results to differ materially from those contained in any such forward-looking statement. The forward-looking statements contained in this press release include statements related to future financial operating results, including expected fish costs, expected grains, fats and oils costs, the expected costs of the transformation plan, and expected interest rates. Factors that could cause actual results to differ materially from those described in this press release include, among others: general economic and business conditions; cost and availability of inputs, commodities, ingredients and other raw materials, including without limitation, energy (including natural gas), fuel, packaging, grains (including corn), meat by-products Meat by-products are ground and cleaned slaughtered meat carcass parts such as necks, feet, undeveloped eggs, bones, heads, and intestines (and a small amount of feathers in the case of chicken meat). and tuna tuna or tunny, game and food fishes, the largest members of the family Scombridae (mackerel family) and closely related to the albacore and bonito. They have streamlined bodies with two fins, and five or more finlets on the back. ; the accuracy of our assumptions regarding costs and other matters; our ability to increase prices and manage the price gap between our products and competing private label products; our ability to reduce costs; logistics and other transportation-related costs; our pet food and pet snacks recall which began in March 2007 or other product recalls; our debt levels and ability to service and reduce our debt; reduced sales, disruptions, costs or other charges to earnings or expenses that may be generated by our strategic plan and transformation plan efforts; timely launch and market acceptance of new products; competition, including pricing and promotional spending levels by competitors; efforts to improve the performance and market share of our businesses; changes in U.S., foreign or local tax laws and effective rates; effectiveness of marketing and trade promotion programs; changing consumer and pet preferences; the loss of significant customers or a substantial reduction in orders from these customers or the bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most of any such customer; availability, terms and deployment of capital; interest rate fluctuations; product liability claims and other litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. ; reliance on certain third-parties, including co-packers, our broker and third-party distribution centers or managers; acquisitions, if any, including identification of appropriate targets and successful integration of any acquired businesses; weather conditions; crop yields; any acceleration of our departure from Terminal Island, CA; changes in, or the failure or inability to comply with, U.S., foreign and local governmental regulations, including environmental regulations and import/export regulations or duties; wage rates; industry trends, including changes in buying, inventory and other business practices by customers; public safety and health issues; and other factors. These factors and other risks and uncertainties are described in more detail, from time to time, in the Company's filings with the Securities and Exchange Commission, including its annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . The Company does not undertake to update any of these statements in light of new information or future events. Our declaration of future dividends, if any, is subject to final determination by our Board of Directors each quarter after its review of our then-current strategy, applicable debt covenants, and financial performance and position, among other things. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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