Lamb Weston Holdings, Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended November 27, 2016; Updates Earnings Guidance for the Fiscal 2017
January 10, 2017 at 01:30 pm
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Lamb Weston Holdings, Inc. announced unaudited consolidated earnings results for the second quarter and six months ended November 27, 2016. For the quarter, the company's net sales were $790.7 million compared with $740.3 million a year ago. Income from operations was $125.5 million compared with $109.5 million a year ago. The increase was largely due to favorable price/mix and volume, as well as supply chain efficiencies. Income before income taxes and equity method earnings was $118.7 million compared with $108.0 million a year ago. Net income attributable to the company was $87.2 million or $0.59 per diluted share compared with $73.3 million or $0.50 per diluted share a year ago. The increases were largely due to higher income from operations, partially offset by higher interest costs and lower equity method investment earnings. Adjusted income from operations was $134.5 million compared with $109.5 million a year ago. Adjusted net income attributable to the company was $92.9 million or $0.63 per diluted share. Adjusted EBITDA was $160.9 million compared with $133.6 million a year ago.
For the six months, the company's net sales were $1,567.0 million compared with $1,488.1 million a year ago. Income from operations was $250.5 million compared with $194.1 million a year ago. Income before income taxes and equity method earnings was $242.2 million compared with $191.3 million a year ago. Net income attributable to the company was $166.8 million or $1.13 per diluted share compared with $135.3 million or $0.92 per diluted share a year ago. Net cash provided by operating activities was $162.4 million compared with $172.9 million a year ago. Additions to property, plant and equipment was $127.8 million compared with $66.3 million a year ago. Adjusted income from operations was $269.2 million compared with $194.2 million a year ago. Adjusted net income attributable to the company was $178.6 million or $1.21 per diluted share. Adjusted EBITDA was $321.0 million compared with $242.1 million a year ago.
The company has updated its outlook for fiscal 2017. The company's net sales to grow at a mid-single digit rate, up from a previous estimate of a low single digit increase, with a relatively balanced contribution from price/mix and volume. Adjusted EBITDA including unconsolidated joint ventures to grow at a mid-teens rate, up from a previous estimate of a high single digit increase, reflecting solid sales growth and savings from supply chain efficiencies, partially offset by lower contribution from equity method investment earnings. Potato costs are expected to remain essentially flat. The company expects adjusted diluted EPS in the range of $2.20 - $2.28. In addition, the company expects total interest expense to be approximately $60 million and the effective tax rate to be approximately 34%.
Lamb Weston Holdings, Inc. is a supplier of frozen potato, sweet potato, appetizer and vegetable products to restaurants and retailers around the world. The Companyâs segments include Global, Foodservice, Retail, and Other. The Global segment includes frozen potato products sold in North America and international markets generally to the North American based restaurant chains and international customers comprised of global and regional quick service and full-service restaurant chains, foodservice distributors, and retailers. The Foodservice segment includes frozen potato products sold throughout the United States and Canada to commercial distributors, restaurant chains generally outside the North American based restaurant chains, and non-commercial channels. The Retail segment includes consumer-facing frozen potato products sold primarily to grocery, mass merchants, club, and specialty retailers. The Other reporting segment primarily includes its vegetable and dairy businesses.
Lamb Weston Holdings, Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended November 27, 2016; Updates Earnings Guidance for the Fiscal 2017