Post Holdings (POST) Q4 2013 earnings summary

Executive summary

• FY13 net sales rose 8% to $1,034.1M, supported by acquisitions and higher volumes; lower net selling prices and one-time costs pressured profitability.

• Portfolio expanded into natural and organic foods and active nutrition through Attune Foods, Hearthside assets and Premier Nutrition acquisitions.

Financial highlights

• Net earnings were $15.2M vs. $49.9M; diluted EPS was $0.30 vs. $1.45.

• Operating profit fell to $107.8M from $139.1M; gross profit was $424.9M vs. $428.9M.

• Excluding acquisitions, net sales increased 2%; reported net sales included $37.8M from Attune Foods and $13.9M from Premier Nutrition.

• Operating results included $9.6M accelerated depreciation, $3.8M restructuring, $2.9M trademark impairment, $2.7M acquisition costs and $8.9M Spin-Off costs.

Outlook and guidance

• Modesto plant transfer and closure were expected to finish by September 2014; the move was projected to generate $14.0M in annual pretax cash manufacturing savings.

• Dakota Growers acquisition was expected to close in January 2014, subject to remaining closing conditions; $37.0M was deposited in escrow toward the purchase price.

• Cash on hand, operating cash flows and capital-markets access were expected to cover working capital, R&D, capital expenditures, pension contributions and other financing needs for the foreseeable future.