Post Holdings Slips To Loss In Q4, But Revenues Beat View

(RTTNews) - Cereal maker Post Holdings, Inc. (POST) on Wednesday reported a loss for the fourth quarter as a double-digit increase in sales that was boosted by acquisitions was more than offset by one-time charges. Adjusted earnings per share missed analysts' expectations, while revenues beat their estimates.

St. Louis, Missouri-based Post Holdings, the maker of ready-to-eat breakfast cereals like the Raisin Bran, Honeycomb and Honey Bunches of Oats brands, said its net loss for the fourth quarter was $3.2 million or $0.10 per share, compared to net income of $10.8 million or $0.31 per share in the same period last year.

The latest quarter's results include spin off costs of $1.3 million, restructuring and plant closure costs of $6.6 million, acquisition-related transaction costs of $2.0 million and impairment on intangible assets of $2.9 million, among others.

The prior-year quarter's results include spin-off costs of $2.1 million and mark to market adjustments on economic hedges of $0.3 million.

Adjusted earnings for the quarter were $5.3 million or $0.16 per share, compared to $11.9 million or $0.35 per share in the year-ago quarter. On average, four analysts polled by Thomson Reuters expected the company to earn $0.21 per share for the quarter. Analysts' estimates typically exclude special items.

Post Holdings, which was spun off from the private food company Ralcorp Holdings in 2012, reported an 18 percent increase in sales for the quarter to $291.7 million from $247.2 million in the year-ago period. Analysts had a consensus revenue estimate of $276.02 million.

Net sales for the latest quarter includes $37.8 million from acquisitions.

In the Post Foods segment, which includes predominately the Post branded cereal business, net sales for the quarter rose 3 percent from last year to $253.9 million. The increase was due to higher volumes partially offset by a slight decrease in average net selling prices.

Net sales for the Attune Foods segment, which combines the results of Attune Foods acquired on December 31, 2012 and the Hearthside private label and branded cereal, granola and snack businesses, the assets of which were acquired on May 28, 2013, were $24.2 million.

The Active Nutrition segment comprises the results of Premier Nutrition Corp., which was acquired on September 1, 2013. The segment contributed $13.9 million to net sales for the fourth quarter.

For fiscal 2013, Post Holdings' net earnings were $9.8 million or $0.30 per share, down from $49.9 million or $1.45 per share in the previous year. Adjusted net earnings were $31.1 million or $0.94 per share, compared to $52.7 million or $1.53 per share in the prior year.

However, net sales for the year increased 8 percent to $1.03 billion from $958.9 million last year.

Analysts expected the company to earn $1.00 per share for the year on revenues of $1.03 billion.

Looking ahead to fiscal 2014, Post Holdings forecasts adjusted earnings before interest, tax, debt and amortization or EBITDA between $245 million and $260 million, including results of acquisitions completed through fiscal 2013. As previously announced, the company expects Dakota Growers to contribute about $42 million to $46 million to Adjusted EBITDA on a full-year basis.

POST closed Wednesday's regular trading session at $45.72, down $0.43 or 0.93 percent on a volume of 239,744 shares.