Ridley Inc. Reports Financial Results for Fiscal 2013 Fourth Quarter
(firmenpresse) - MANKATO, MINNESOTA -- (Marketwired) -- 09/11/13 -- Ridley Inc. (TSX: RCL) today reported its financial results for the three and twelve months ended June 30, 2013. All currency amounts are stated in U.S. dollars unless otherwise noted.
For the three months ended June 30, 2013, Ridley's earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations were $5.4 million compared to $4.5 million last year. Net income from continuing operations (net of income tax expense) for the period was $1.7 million ($0.14 per share) compared to $0.3 million ($0.02 per share) last year.
Revenue from continuing operations was $130.1 million in the fourth quarter of fiscal 2013, an increase of $11.8 million over the same period last year. The shift in product mix from complete feeds to higher value- added products such as feed supplements and blocks combined with generally higher raw material prices contributed to higher average unit selling prices for the Company's feed products. However, most of the increase in revenue in the fourth quarter was the result of a 7.1% increase in volumes of continuing operations as measured in tons of feed products sold. Sales volume in the fourth quarter continued to benefit from good producer economics in the beef and dairy sectors. The acquisition of Stockade Brands Inc. in the second quarter this year also contributed to increased revenues and volumes.
Consolidated gross profit from continuing operations in the fourth quarter of fiscal 2013 was $16.5 million compared to $15.3 million in the same period last year. The increase of $1.2 million in gross profit in the fourth quarter was largely the result of increased volumes in the quarter and higher average unit margins relative to last year that followed from the continuing shift in product mix to higher value-added products, particularly feed supplements and blocks. Manufacturing and delivery costs were proportionately higher with the increase in volumes in the period.
Operating expenses, which include research and development, technical services, selling and administration expenses, were $12.8 million in continuing operations compared to $12.6 million last year. Operating expenses last year included charges of $0.2 million for restructuring and plant impairment related to the closure of two feed production facilities in fiscal 2012. Excluding exceptions last year, overhead expenses in the fourth quarter of fiscal 2013 were comparable to those of the same period last year.
The Company's share of the earnings of Masterfeeds LP, reported as "share of income of associate", was $0.1 million for the fourth quarter of fiscal 2013. Masterfeeds LP is a limited partnership formed in November 2012 by the merger of Ridley's Canadian feed assets with those of Masterfeeds Inc., a subsidiary of Ag Processing Inc. Ridley owns a non-controlling interest in Masterfeeds LP.
Distributions made by the Company's U.S. subsidiary to its Canadian parent entity are subject to withholding tax assessments. Included in income tax expense are withholding taxes of $0.8 million and $1.3 million in the fourth quarters of fiscal 2013 and fiscal 2012, respectively.
A special dividend of $19.1 million was paid in the fourth quarter of fiscal 2013. The dividend was funded using available cash generated from operating activities and borrowing on Ridley's credit facility. Debt increased from $11.0 million as at June 30, 2012 to $12.0 million as at June 30, 2013.
Discontinued operations are comprised of the Company's feed manufacturing business in Canada, previously reported as the Canadian Feed Operations (CFO) segment. Prior period results of CFO have been re-presented as discontinued operations. Net income from discontinued operations in the fourth quarter of fiscal 2013 was $0.1 million - unchanged from last year.
Including income from discontinued operations, the Company reported net income after taxes for the fourth quarter of $1.8 million ($0.14 per share) compared to $0.3 million ($0.03 per share) in the same period last year.
Ridley's audited consolidated financial statements and MD&A for the year ended June 30, 2013 will be filed with SEDAR on September 24, 2013 and mailed to shareholders on October 1, 2013. Both documents will be contained in Ridley's 2013 annual report, which will also be available on the Company's website at or at .
Outlook
Generally speaking, most sectors of livestock and poultry production in North America were profitable throughout Ridley's fiscal 2013 despite high and volatile feed prices, which comprise the majority of the cost of animal production. Severe drought conditions at the start of the year contributed to higher commodity prices and increased costs to producers from replacing normal forage sources with commercial feed supplements. Drought and rising raw material prices were a positive factor for Ridley's volumes and unit margins in fiscal 2013. However, current conditions are markedly changed: drought persists in the cattle growing regions of the Western and Southwestern U.S., but in much of Ridley's trading area in the
Midwest there has been excessive moisture, an abundance of forage supplies for livestock producers and expectations of improved grain crops this fall.
Grain prices have decreased significantly in recent months, which will be beneficial to the economic prospects of producers and a positive influence for the rebuilding of herd populations. However, lower commodity prices in the coming year would be a negative factor for Ridley's unit margins. Market prices for feed ingredients, which generally move in tandem with commodities, directly impact the value of Ridley's raw materials inventories and the margin between ingredient cost and market driven prices realized on the sale of finished feed products. Consequently, the potential for continuing volatility in feed ingredient prices and the abundance of livestock forage in much of the Midwest will be amongst the more significant drivers of Ridley's results in fiscal 2014.
Forward-Looking Information
This report contains "forward-looking" information. The forward-looking information includes statements concerning Ridley's outlook for the future, as well as other statements of beliefs, plans and strategies or anticipated events, and similar expressions concerning matters that are not historical facts. Forward- looking information and statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, contemplated or implied by, such statements. These risks and uncertainties include the ability to make effective acquisitions and successfully integrate newly acquired businesses into existing operations, the availability and prices of raw materials and supplies, livestock disease, product pricing, the competitive environment and related market conditions, operating efficiencies, access to capital, the cost of compliance with environmental and health standards and other regulatory requirements affecting Ridley's business, adverse results from ongoing litigation, and actions of domestic and foreign governments. Other risks are outlined in the Risk Management section of the MD&A included in Ridley's Annual Report. Unless otherwise required by applicable securities law, Ridley disclaims any intention or obligation to publicly update or revise this information, whether as a result of new information, future events or otherwise. Ridley cautions readers not to place undue reliance upon forward-looking statements.
Ridley Inc., headquartered in Mankato, Minnesota, is one of North America's leading commercial animal nutrition companies. Ridley employs more than 600 people in the manufacture, sales and marketing of a full range of animal nutrition products under highly regarded trade names. Ridley's common shares are listed on The Toronto Stock Exchange (trading symbol: RCL). Additional information, including Ridley's Annual Information Form (AIF), is available at .
Contacts:
RIDLEY Inc.
Steve VanRoekel
President and CEO
(507) 388-9412
RIDLEY Inc.
Gordon Hildebrand
Chief Financial Officer
(507) 388-9577
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Datum: 11.09.2013 - 18:21 Uhr
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