Post Holdings (POST) Q4 2015 earnings summary

Executive summary

• FY15 net sales rose 93% to $4,648.2M, driven by acquisitions; excluding acquisition effects, sales increased 5% YoY. Adjusted for impairment charges and acquired segment profit, operating profit rose 16%.

• Net loss was $115.3M, or $2.33 per diluted share, including $60.8M of impairment charges and $92.5M of non-cash interest-rate swap losses.

Financial highlights

• Gross profit was $1,174.4M versus $621.2M in FY14; SG&A was $734.1M and intangible amortization was $141.7M.

• Operating profit was $212.7M versus an operating loss of $207.7M in FY14; FY14 included $295.6M of goodwill and intangible impairment charges.

• Operating cash flow was $451.6M; investing cash outflow was $1,248.7M and financing cash inflow was $1,372.4M. Year-end cash was $841.4M.

Outlook and guidance

• Avian influenza is expected to continue affecting egg volumes until supply is re-established; cost mitigation included containment, customer volume management and pricing actions.

• Management expected cash on hand, operating cash flows and current or potential credit facilities to cover working capital, interest, capex, pensions and other financing needs for the foreseeable future.

• Expected FY16 contributions: $6.1M to pension plans and $2.6M to postretirement medical plans.