Dean Foods Posts Highest Adjusted Quarterly Operating Income in Its History
- Adjusted Quarterly Diluted Earnings per Share Improve 70% to
$0.46
-
Full Year 2008 Cash Flow from Continuing Operations Reaches
$719 million
-
Quarterly Operating Income of
$184 million ; Adjusted Quarterly Operating Income of$190 million
-
Company to Host Investor Meeting on
February 26th
On an adjusted basis (as defined below), fourth quarter diluted earnings
per share were
"By many measures, the fourth quarter of 2008 was the strongest in our
history," commented
Summary of Dean Foods Fourth Quarter and Full Year 2008 Segment
and Operating Results
(in millions, except EPS)
% Change % Change
4Q08 from 4Q07 FY 2008 from FY07
---- --------- ------- ---------
DSD Dairy:
Fluid Milk Volume N/A 2.8% N/A 1.5%
Operating Income $165.7 31% $591.3 10%
WhiteWave-Morningstar:
Net Sales $707.9 5% $2,650.0 10%
Operating Income $69.4 14% $205.4 0%
Cons. Adjusted Operating
Income: $190.0 27% $631.5 7%
Adjusted Diluted Earnings
per Share: $0.46 70% $1.30 8%
DEAN FOODS FOURTH QUARTER 2008 CONSOLIDATED RESULTS
Total net sales for the fourth quarter totaled
Consolidated operating income in the fourth quarter totaled
DEAN FOODS FULL YEAR 2008 CONSOLIDATED RESULTS
Net sales for the twelve months ended
Net income from continuing operations for the full year 2008 totaled
On an adjusted basis (as defined below), net income from continuing
operations for the full year 2008 totaled
"2008 was a year of tremendous progress," continued Mr. Engles. "The business overcame a slow start to post full year adjusted operating income growth of 7%, marking a solid rebound from 2007's results and returning the business to its historical longer-term trend of mid to high single digit adjusted operating income growth. Fluid milk volumes in the DSD Dairy segment grew 1.5% and full year segment operating profit increased 10%. Sales at WhiteWave-Morningstar were 10% higher than the prior year and segment profit was flat for the year, but improved materially in the fourth quarter."
"Free cash flow for the year was the highest in our history at
DSD DAIRY
DSD Dairy net sales for the fourth quarter were
DSD Dairy operating income in the fourth quarter was
For the full year, DSD Dairy net sales totaled
Total year fluid milk volumes increased 1.5% against a category that was
approximately flat on a full year basis. Full year DSD operating income was
WHITEWAVE-MORNINGSTAR
The WhiteWave-Morningstar segment reported fourth quarter net sales of
Net sales of Horizon Organic(R) milk increased nearly 15% over the year ago period even as the organic milk category showed signs of material slowing within the quarter. Silk(R) net sales increased in the mid single digits, and were impacted by the slowing of sales growth within the soymilk category, as well as the decision to exit an unprofitable foodservice business relationship. International Delight(R) net sales grew in the high single digits. LAND O'LAKES(R) portfolio net sales were modestly ahead of last year's fourth quarter results with particular strength in the creamers business offset by the loss of a specialty milk customer.
Segment operating income in the fourth quarter for WhiteWave-Morningstar
was
For the full year, WhiteWave-Morningstar net sales were
CORPORATE EXPENSE
Corporate and other expenses totaled
CASH FLOW
Net cash provided by continuing operations for the twelve months ended
Free cash flow provided by operations in the twelve months ended
Capital expenditures for the full year 2008 totaled
Through the twelve months ended
FORWARD OUTLOOK
"We feel very good about our overall performance in the fourth quarter and
the strong recovery of the business in 2008," stated
INVESTOR DAY
The Company also announced today that it will be hosting an all-day
investor meeting in
COMPARISON OF ADJUSTED INFORMATION TO GAAP INFORMATION
The adjusted financial results contained in this press release are from
continuing operations and are adjusted to eliminate the net expense or net
gain related to the items identified below. This information is provided in
order to allow investors to make meaningful comparisons of the Company's
operating performance between periods and to view the Company's business from
the same perspective
For the quarter ended
-
$6.4 million charge ($3.9 million net of income tax) related to previously announced facility closings and reorganization costs.
For the quarter ended
-
$6.7 million charge ($4.1 million net of income tax) related to the realignment of the DSD Dairy's finance and accounting organization, workforce reduction activities in the former DSD Dairy's operations and previously announced facility closings; and -
$0.6 million charge ($0.4 million net of income tax) related to non-recurring special dividend costs.
For the year ended
-
$22.8 million charge ($14.0 million net of income tax) related to previously announced facility closings and reorganization costs; and -
$0.6 million charge ($0.4 million net of income tax) related to non-recurring special dividend costs.
For the year ended
-
$36.1 million charge ($22.0 million net of income tax) related to the realignment of our DSD Dairy's finance and accounting organization, the DSD Dairy's management realignment, workforce reduction activities in the former DSD Dairy's operations, and previously announced facility closings, as well as the sale of our tofu business; and -
$19.8 million charge ($12.0 million net of income tax) related to non-recurring special dividend costs, including the write-off of finance costs resulting from the completion of our new senior credit facility.
CONFERENCE CALL WEBCAST
A webcast to discuss the Company's financial results and outlook will be
held at
ABOUT
FORWARD-LOOKING STATEMENTS
Some of the statements in this press release are "forward-looking" and are
made pursuant to the safe harbor provision of the Private Securities
Litigation Reform Act of 1995. These "forward-looking" statements include
statements relating to, among other things, projected sales, operating income,
net income, adjusted diluted earnings per share, debt covenant compliance and
expected financial performance. These statements involve risks and
uncertainties that may cause results to differ materially from the statements
set forth in this press release. The Company's ability to meet targeted
financial and operating results, including targeted sales, operating income,
net income and earnings per share depends on a variety of economic,
competitive and governmental factors, including raw material availability and
costs, the demand for the Company's products, and the Company's ability to
access capital under its credit facilities or otherwise, many of which are
beyond the Company's control and which are described in the Company's filings
with the
CONTACT: Corporate Communications, Marguerite Copel, +1-214-721-1273; or
Investor Relations,
(Tables to follow)
DEAN FOODS COMPANY
Condensed Consolidated Income Statements
(Unaudited)
(In thousands, except per share data)
Three months ended Twelve months ended
December 31, December 31,
2008 2007 2008 2007
---- ---- ---- ----
Net sales $3,080,425 $3,231,713 $12,454,613 $11,821,903
Cost of sales 2,294,785 2,528,776 9,509,359 9,084,318
--------- --------- --------- ---------
Gross profit 785,640 702,937 2,945,254 2,737,585
Operating costs
and expenses 595,658 553,718 2,313,806 2,147,879
Facility closings,
reorganizations
and other costs 6,388 6,718 22,758 36,109
----- ----- ------ ------
Operating income 183,594 142,501 608,690 553,597
Interest expense 73,054 88,818 308,080 319,657
Debt refinancing
and special
dividend costs - 592 - 19,787
Other (income)
expense 418 (124) 933 (316)
--- ---- --- ----
Income from
continuing
operations before
income taxes 110,122 53,215 299,677 214,469
Income taxes 42,742 20,650 114,837 84,007
------ ------ ------- ------
Income from
continuing
operations 67,380 32,565 184,840 130,462
Income (loss) from
discontinued
operations,
net of tax (1,019) 70 (1,070) 891
------ --- ------ ---
Net income $66,361 $32,635 $183,770 $131,353
======= ======= ======== ========
Basic earnings
per share:
Income from
continuing
operations $0.44 $0.25 $1.24 $1.00
Income (loss)
from
discontinued
operations (0.01) - (0.01) 0.01
----- --- ----- ----
Net income $0.43 $0.25 $1.23 $1.01
===== ===== ===== =====
Basic average
common shares 153,967 131,630 149,267 130,311
Diluted earnings
per share:
Income from
continuing
operations $0.43 $0.24 $1.21 $0.95
Income (loss)
from
discontinued
operations (0.01) - (0.01) 0.01
----- --- ----- ----
Net income $0.42 $0.24 $1.20 $0.96
===== ===== ===== =====
Diluted average
common shares 156,127 137,787 153,396 137,292
DEAN FOODS COMPANY
Segment Information
(Unaudited)
(In thousands)
Three months ended Twelve months ended
December 31, December 31,
2008 2007 2008 2007
---- ---- ---- ----
Net sales:
DSD Dairy $2,372,550 $2,559,617 $9,804,622 $9,411,103
WhiteWave-
Morningstar 707,875 672,096 2,649,991 2,410,800
------- ------- --------- ---------
Total $3,080,425 $3,231,713 $12,454,613 $11,821,903
========== ========== =========== ===========
Segment operating
income (loss):
DSD Dairy $165,708 $126,616 $591,314 $537,963
WhiteWave-
Morningstar 69,370 60,887 205,382 204,951
Corporate / Other (45,096) (38,284) (165,248) (153,208)
------- ------- -------- --------
Subtotal 189,982 149,219 631,448 589,706
Facility closings,
reorganizations and
other costs (6,388) (6,718) (22,758) (36,109)
------ ------ ------- -------
Total operating
income $183,594 $142,501 $608,690 $553,597
======== ======== ======== ========
DEAN FOODS COMPANY
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
December 31, December 31,
ASSETS 2008 2007
------ ---- ----
Cash and cash equivalents $35,979 $32,555
Other current assets 1,445,214 1,499,429
--------- ---------
Total current assets 1,481,193 1,531,984
Property, plant and equipment, net 1,821,892 1,798,378
Intangibles and other assets 3,737,107 3,702,994
--------- ---------
Total Assets $7,040,192 $7,033,356
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Total current liabilities,
excluding debt $1,111,741 $907,270
Total long-term debt, including
current portion 4,489,251 5,272,351
Other long-term liabilities 880,966 802,468
Total stockholders' equity 558,234 51,267
------- ------
Total Liabilities and Stockholders'
Equity $7,040,192 $7,033,356
========== ==========
DEAN FOODS COMPANY
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
Twelve months ended
December 31,
Operating Activities 2008 2007
-------------------- ---- ----
Net cash provided by continuing operations $719,258 $350,250
Net cash used in discontinued operations (1,304) -
------ ---
Net cash provided by operating activities $717,954 $350,250
Investing Activities
--------------------
Additions to property, plant and equipment (256,965) (241,448)
Cash outflows for acquisitions and investments,
net of cash received (95,851) (132,204)
Net proceeds from divestitures - 1,536
Proceeds from sale of fixed assets 11,329 20,192
------ ------
Net cash used in investing activities (341,487) (351,924)
Net cash provided by discontinued operations - 10,705
--- ------
Net cash used in investing activities $(341,487) $(341,219)
Financing Activities
--------------------
Proceeds from the issuance (repayment) of debt (800,287) 1,899,920
Payments of financing costs - (31,281)
Issuance of common stock, net 419,663 48,114
Payment of special cash dividend - (1,942,738)
Tax savings on share-based compensation 7,581 18,369
----- ------
Net cash used in financing activities (373,043) (7,616)
-------- ------
Increase in cash and cash equivalents 3,424 1,415
Beginning cash balance 32,555 31,140
------ ------
Ending cash balance $35,979 $32,555
======= =======
DEAN FOODS COMPANY
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(In thousands, except per share data)
Three months ended Twelve months ended
December 31, December 31,
2008 2007 2008 2007
---- ---- ---- ----
Reconciliation of GAAP
to adjusted operating
income from
continuing operations
GAAP operating income
from continuing
operations $183,594 $142,501 $608,690 $553,597
Adjustment:
Facility closings,
reorganizations
and other costs 6,388 6,718 22,758 36,109
----- ----- ------ ------
Adjusted operating
income from
continuing operations $189,982 $149,219 $631,448 $589,706
======== ======== ======== ========
Reconciliation of GAAP
to adjusted net income
from continuing
operations
GAAP net income
from continuing
operations $67,380 $32,565 $184,840 $130,462
Adjustments, net of tax:
Facility closings,
reorganizations
and other costs 3,892 4,121 14,037 21,965
Debt refinancing
and special
dividend costs - 383 353 12,036
--- --- --- ------
Adjusted net income
from continuing
operations $71,272 $37,069 $199,230 $164,463
======= ======= ======== ========
Reconciliation of GAAP
to adjusted diluted
earnings per share
GAAP diluted earnings
per share from continuing
operations $0.43 $0.24 $1.21 $0.95
Adjustments, net of tax
Facility closings,
reorganizations
and other costs 0.03 0.03 0.09 0.16
Debt refinancing and
special dividend costs - - - 0.09
--- --- --- ----
Adjusted diluted earnings
per share from
continuing operations $0.46 $0.27 $1.30 $1.20
===== ===== ===== =====
Computation of Free Cash
Flow provided by operations
Net cash provided by
continuing operations $260,535 $129,561 $719,258 $350,250
Additions to property,
plant and equipment (85,957) (76,256) (256,965) (241,448)
------- ------- -------- --------
Free cash flow provided
by continuing
operations $174,578 $53,305 $462,293 $108,802
======== ======= ======== ========
SOURCE
CONTACT:
Corporate Communications, Marguerite Copel
+1-214-721-1273
or
Investor Relations
+1-214-303-3438
both of
Web Site:
http://www.deanfoods.com
Contact:
Investors:
Barry Sievert
Investor Relations
(214) 303-3437
Media:
Marguerite Copel
Corporate Communications
(214) 721-1273
SOURCE Dean Foods Company