KANSAS | 0-17196 | 45-4082531 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
MGP INGREDIENTS, INC. | ||
Date: August 5, 2013 | By: | /s/ Timothy W. Newkirk |
Timothy W. Newkirk, Chief Executive Officer | ||
• | Net sales of $79.3 million; decline 7 percent vs year ago due to lower industrial alcohol sales |
• | Growth in premium spirits remains strong |
• | Sales of food ingredients up 10 percent vs year ago |
• | Net income of $0.02 per diluted share compares with loss of $0.05 year ago |
• | Company focused on increasing production of premium whiskeys and bourbons at Indiana distillery |
• | Distillery products net sales for the second quarter were $63.9 million, a decrease of 10.2 percent compared to the prior year quarter. Increases in sales of premium spirits, whiskeys, bourbons and distillers feed were offset by the 95 percent reduction in the supply of bulk industrial alcohol from ICP over the same quarter a year ago. |
• | The distillery products segment reported second quarter pre-tax income of $3.1 million, or 4.9 percent of net sales, compared to pre-tax operating income of $3.7 million, or 5.3 percent of net sales, during the same quarter a year ago. Quarter over quarter, pricing for distillery products was out-paced by increased costs for raw materials. For the second quarter, the per-bushel cost of corn averaged 14.4 percent higher than a year ago. |
• | For the first six months of 2013, distillery segment sales were $134.7 million, a decrease of 6.2 percent. The distillery products segment reported pre-tax income of $7.4 million, or 5.6 percent of net sales, compared to pre-tax income of $6.4 million, or 4.5 percent of net sales, during the same period a year ago. Despite decreases in volume and pricing, the improvement in product mix led to a higher return on net sales. |
• | Ingredient segment net sales for the second quarter were $15.4 million, an increase of 9.9 percent from the prior year's quarter. Sales benefited from both higher average pricing and unit volumes, with specialty starches showing the largest net sales gains. |
• | The ingredients segment reported second quarter pre-tax operating income of $875,000 or 5.7 percent of net sales, compared with income of $987,000, or 7.0 percent of net sales, for the same quarter a year ago. Gross profit margins decreased mainly due to higher raw material costs. The most notable was for flour, which averaged approximately 23.5 percent higher per pound over the prior year. |
• | For the first six months of 2013, ingredient segment net sales were $30.8 million, an increase of 11.6 percent from the prior year period. The segment reported pre-tax income of $2.6 million, or 8.6 percent of net sales, compared to pre-tax income of $2.6 million, or 9.5 percent of net sales, during the same period a year ago. Similar to the results for the second quarter, gross profit margins for the six months decreased mainly due to higher raw material costs. The cost of flour increased by an average of 21.2 percent per pound over the prior year. |
(unaudited) | Quarter Ended | Year to Date Ended | ||||||||||||
(Dollars in thousands, except per share) | June 30, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | ||||||||||
Gross Sales | $ | 83,707 | $ | 87,263 | $ | 172,425 | $ | 175,693 | ||||||
Less Excise Taxes | 4,312 | 1,729 | 6,626 | 3,815 | ||||||||||
Net Sales | 79,395 | 85,534 | 165,799 | 171,878 | ||||||||||
Cost of Sales | 74,114 | 79,618 | 153,289 | 160,383 | ||||||||||
Gross Profit | 5,281 | 5,916 | 12,510 | 11,495 | ||||||||||
Selling, General and Administrative Expenses | 4,770 | 6,285 | 10,645 | 14,033 | ||||||||||
Other Operating Costs and Losses on Sale of Assets | — | 176 | 58 | 250 | ||||||||||
Income (Loss) from Operations | 511 | (545 | ) | 1,807 | (2,788 | ) | ||||||||
Gain on Sale of Joint Venture Interest | — | — | — | 4,055 | ||||||||||
Interest Income (Expense), Net | (277 | ) | (230 | ) | (560 | ) | (483 | ) | ||||||
Equity in Earnings (Loss) of Joint Ventures | 71 | (143 | ) | (871 | ) | 294 | ||||||||
Income (Loss) from Continuing Operations Before Income Taxes | 305 | (918 | ) | 376 | 1,078 | |||||||||
Provision (Benefit) for Income Taxes | 25 | (68 | ) | 25 | 52 | |||||||||
Net Income (Loss) from Continuing Operations | 280 | (850 | ) | 351 | 1,026 | |||||||||
Discontinued Operations, Net of Tax | — | — | 1,406 | — | ||||||||||
Net Income (Loss) | 280 | (850 | ) | 1,757 | 1,026 | |||||||||
Other Comprehensive Income (Loss) | (141 | ) | 12 | (290 | ) | 185 | ||||||||
Comprehensive Income | $ | 139 | $ | (838 | ) | $ | 1,467 | $ | 1,211 | |||||
Basic and Diluted Earnings per Share | ||||||||||||||
Net Income | $ | 0.02 | $ | (0.05 | ) | $ | 0.10 | $ | 0.06 | |||||
Weighted average shares outstanding – Basic | 17,006,922 | 16,916,304 | 17,003,056 | 16,916,304 | ||||||||||
Weighted average shares outstanding – Diluted | 17,007,056 | 16,916,304 | 17,003,081 | 16,918,266 |
(Dollars in thousands) | June 30, 2013 | December 31, 2012 | (Dollars in thousands) | June 30, 2013 | December 31, 2012 | |||||||||||
ASSETS | LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||
Current Assets: | Current Liabilities: | |||||||||||||||
Restricted Cash | $ | — | $ | 12 | Current Maturities of Long-term Debt | $ | 1,601 | $ | 1,683 | |||||||
Receivables | 31,157 | 35,325 | Accounts Payable | 18,653 | 18,860 | |||||||||||
Inventory | 41,034 | 36,532 | Accounts Payable to Affiliate, Net | — | 4,008 | |||||||||||
Prepaid Expenses | 1,814 | 697 | Accrued Expenses | 6,716 | 5,220 | |||||||||||
Deferred Income Taxes | 4,943 | 5,283 | Total Current Liabilities | 26,970 | 29,771 | |||||||||||
Refundable Income Taxes | 235 | 242 | ||||||||||||||
Total Current Assets | 79,183 | 78,091 | Other Liabilities: | |||||||||||||
Long-term Debt, Less Current Maturities | 4,395 | 5,168 | ||||||||||||||
Revolving Credit Facility | 24,663 | 25,893 | ||||||||||||||
Property and Equipment, at Cost | 189,783 | 190,519 | Deferred Credit | 3,958 | 4,133 | |||||||||||
Less Accumulated Depreciation | (119,133 | ) | (115,128 | ) | Accrued Retirement, Health and Life | 4,913 | 5,096 | |||||||||
Insurance Benefits | 987 | 1,000 | ||||||||||||||
Net Property, Plant and | Other Noncurrent Liabilities | 4,943 | 5,283 | |||||||||||||
Equipment | 70,650 | 75,391 | Total Liabilities | 70,829 | 76,344 | |||||||||||
Equity Method Investments | 6,424 | 7,301 | Stockholders’ Equity | 87,691 | 86,827 | |||||||||||
Other Assets | 2,263 | 2,388 | ||||||||||||||
TOTAL ASSETS | $ | 158,520 | $ | 163,171 | TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 158,520 | $ | 163,171 | |||||||
Capital Structure | ||||||||||||||||
Net Investment in: | Financed By: | |||||||||||||||
Working Capital | $ | 52,213 | $ | 48,320 | Long-term Debt* | $ | 29,058 | $ | 31,061 | |||||||
Property, Plant and Equipment | 70,650 | 75,391 | Deferred Liabilities | 14,801 | 15,512 | |||||||||||
Other Noncurrent Assets | 8,687 | 9,689 | Stockholders’ Equity | 87,691 | 86,827 | |||||||||||
Total | $ | 131,550 | $ | 133,400 | Total | $ | 131,550 | $ | 133,400 |
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