CORRECTING and REPLACING -- MGP Ingredients, Inc. Reports Third Quarter 2012 Results

CORRECTING and REPLACING -- MGP Ingredients, Inc. Reports Third Quarter 2012

Growth in Premium Spirits Drives Improving Product Mix

ATCHISON, Kansas, Nov. 14, 2012 (GLOBE NEWSWIRE) -- In a press release issued
with the same headline on Nov. 8, 2012 by MGP Ingredients, Inc. (Nasdaq:MGPI),
please note that Income (Loss) from Operations for the Year to Date Ended
Sept. 30, 2012 was incorrectly reported by GlobeNewswireas $1,914 in the
Consolidated Statements of Comprehensive Income (Loss) table. The correct
figure should read $ (1,914). The full, corrected version of the press release


  *Strong contribution from new Indiana distillery offsets a reduction in
    sales for lower-value industrial applications
  *Q3 net income per share of $0.02 vs. net loss of $0.33 in prior year
  *Capacity expansion and cost reductions at Indiana distillery will set
    stage for profitable spirits growth in 2013

MGP Ingredients, Inc. (Nasdaq:MGPI) (the "Company") today reported results for
the third quarter ended September 30, 2012. Net income of $418,000, or $0.02
per diluted share, compared favorably with a net loss of $5.5 million, or
$0.33 per diluted share, in the prior year.

Net sales for the third quarter were approximately even with the same quarter
a year ago. Significantly higher beverage alcohol sales were offset by a
reduction in sales for certain industrial alcohol applications. The recently
acquired Lawrenceburg, Indiana, distillery continues to increase production of
premium spirits, including bourbon and rye whiskeys. The food ingredients
segment reported lower sales for the period due to decreased volume partially
offset by improved pricing.

Net income for the third quarter was favorably impacted by unrealized hedging
gains as recorded in the cost of sales. This was partially offset by the
record-high corn basis, combined with competitive pricing in certain
industrial alcohol markets. Net income compares favorably to the same period
last year in which the Company reported an operating loss of $2.6 million,
including significant losses on open derivative commodity contracts. Net
income for the third quarter of 2012 also included a net loss of $135,000 from
the ICP joint venture, which compares favorably to the prior-year period's net
loss of $2.9 million from the ICP joint venture.

Net income for the first nine months of 2012 improved to $1.4 million, or
$0.08 per diluted share, compared with a net loss of $15.1 million, or $0.91
per diluted share over the same period a year ago. Net sales for the first
nine months of 2012 were $247.9 million, an increase of 18.6 percent over the
same period last year.

"This was the most challenging quarter of the year in our alcohol markets,
characterized by record-high corn prices and increased competition from fuel
alcohol producers who are facing negative margins," said Tim Newkirk,
President and Chief Executive Officer. "We most likely lost some market share
at the lower end of the value spectrum, which tends to be more
price-sensitive. Other products performed well, which is more reflective of
our unique formulations and value-added services. The decline in industrial
sales for the quarter was substantially offset by growth in our premium
spirits. So, while our third quarter alcohol sales were relatively flat, our
profit profile actually improved due to a stronger contribution from

Post-acquisition progress continues at the Indiana distillery. Production
rates have more than doubled since the company assumed ownership in December
2011. Capital improvements and cost reduction programs, including a switch to
natural gas, are expected to further increase manufacturing capacity at a
lower cost per unit. Newkirk added, "We've made great inroads with our line of
premium spirits this year, despite the fact that most of the important
year-end order activity for 2012 took place before we acquired the facility.
Our new beverage sales team is encouraged by the high level of interest among
our key customers."

Segment Review: Premium Spirits and Industrial Alcohol

  *Distillery products sales for the third quarter were $61.5 million, an
    increase of 1.6 percent compared to the prior year quarter. Increases in
    sales of premium spirits and distillers feed were offset by declines in
    lower-grade industrial products as previously mentioned. Results from the
    prior-year period did not include beverage sales from the Indiana
    distillery, as well as fees related to the storage of barrels used in the
    aging of whiskey and bourbon.
  *The distillery products segment reported third quarter pre-tax operating
    income of $3.5 million, or 5.7 percent of sales, compared to $379,000, or
    less than 1 percent, during the same quarter a year ago. Quarter over
    quarter, pricing for distillery products out-paced the increased costs for
    corn, excluding the impact of accounting for open commodity contracts.
    Current quarter cost of sales related to open commodity contracts had a
    $1.7 million favorable impact compared with an unfavorable impact of $2.6
    million in the prior year. For the third quarter, the per-bushel cost of
    corn averaged 9.2 percent higher than a year ago, with natural gas
    declining by an average of 19.6 percent over the same period.
  *Distillery products sales for the first nine months of 2012 were $205.1
    million, an increase of 25 percent over the prior year period. Pre-tax
    segment operating income for the nine months was $9.9 million, an increase
    of 113 percent over the same period a year ago.

Segment Review: Food Ingredients

  *Ingredient segment sales for the third quarter were $14.1 million, a
    decrease of approximately 8 percent from the prior year's quarter. Higher
    average pricing was offset by declines in unit volume.
  *The ingredients segment reported third quarter pre-tax operating income of
    $2.1 million, or 15.4 percent of sales, compared with $1.5 million, or
    10.3 percent, for the same quarter a year ago. Profitability improved
    significantly from the prior year due to higher average selling prices and
    lower costs for natural gas and raw materials, principally flour.
  *Ingredients segment sales for the first nine months of 2012 were $41.8
    million, a 6.1 percent decrease from the prior year period. Pre-tax
    segment operating income for the nine months improved significantly to
    $4.7 million compared with $1.5 million over the same period a year ago.

Segment Review: Biopolymers

  *Sales of the Company's plant-based biopolymers in the third quarter were
    $410,000, more than double prior year levels. The Company reported a
    pre-tax operating loss of $85,000 compared to a pre-tax loss of $112,000
    in the prior year's quarter. For the first nine months segment sales were
    $939,000 compared with $702,000. The pre-tax operating loss for the first
    nine months was $332,000 compared with a loss of $497,000 in the
    prior-year. MGP is pursuing innovations in bio-based foams, plastics, and
    other materials made from distillers dried grains and soluables.


Newkirk said, "MGP has been running on a dual track this year. We reconfigured
our resources to focus on the most promising opportunities in premium spirits.
At the same time, we needed to remove more impediments to generating
consistent profits and returns on capital. To that end we attacked the cost
side of our business through manufacturing and supply chain improvements. This
will be an ongoing commitment, with targeted savings of 2 to 4 percent per
year to combat cost inflation and free up capital for growth. Another critical
goal was to reduce the volatility of cash flows resulting from commodity price
swings. Our new sourcing agreement not only gives us a constant grain supply
in tight markets, but also minimizes the financial impacts below the operating
line, as could be seen in the most recent quarter."

He concluded, "With all the changes at MGP, we're really back to the heart of
what has made this company successful – providing quality products from
processed grains, backed by innovation and customer service. Growth
initiatives in our food ingredients segment include new opportunities in
protein delivery. In premium spirits we're pursuing beverage innovations,
including new mash bills, flavor extensions, and barrel aging techniques.

"Our task is not without continuing challenges, but we've eliminated much of
the distraction around grain pricing. The focus is now on execution. This is
particularly important as we re-introduce MGP to the world of premium

About MGP Ingredients

MGP is a leading independent supplier of premium spirits to the beverage
alcohol industry. The company also formulates grain-based starches and protein
food ingredients targeting health and wellness applications for the branded
consumer packaged goods industry. Distilled spirits are produced at facilities
in the adjacent towns of Lawrenceburg and Greendale, Ind. The company is
headquartered in Atchison, KS, where a variety of distilled alcohol products
and food ingredients are manufactured. For more information, visit

The MGP Ingredients, Inc. Logo is available at

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking statements as well as historical
information. Forward-looking statements are usually identified by or are
associated with such words as "intend," "plan," "believe," "estimate,"
"expect," "anticipate," "hopeful," "should," "may," "will," "could,"
"encouraged," "opportunities," "potential" and/or the negatives of these terms
or variations of them or similar terminology. They reflect management's
current beliefs and estimates of future economic circumstances, industry
conditions, Company performance and financial results and are not guarantees
of future performance. All such forward-looking statements are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those contemplated by the relevant forward-looking statement.
Investors should not place undue reliance upon forward-looking statements and
the Company undertakes no obligation to publicly update or revise any
forward-looking statements. Important factors that could cause actual results
to differ materially from our expectations include, among others: (i)
disruptions in operations at our Atchison facility, (ii) the availability and
cost of grain and fluctuations in energy costs, (iii) the effectiveness of our
hedging strategy, (iv) our ability to close the prospective acquisition of
Lawrenceburg Distillers Indiana, LLC and to integrate the acquired operations
into our own, (v) the competitive environment and related market conditions,
(vi) the ability to effectively pass raw material price increases on to
customers, (vii) the ability to effectively operate the Illinois Corn
Processing, LLC ("ICP") joint venture, (viii) our ability to maintain
compliance with all applicable loan agreement covenants, (ix) our ability to
realize operating efficiencies, (x) actions of governments and (xi) consumer
tastes and preferences. For further information on these and other risks and
uncertainties that may affect the Company's business, see Item 1A. Risk
Factors in Part II of the Company's Transition Report on Form 10-K for the
six-month period ended December 31, 2011.

(unaudited)                        Quarter Ended         Year to Date Ended
(Dollars in thousands, except per  Sept. 30,  Sept. 30,  Sept. 30,  Sept. 30,
share)                             2012       2011       2012       2011
Gross Sales                        $ 76,189   $ 76,138   $ 251,882  $ 209,231
Less Excise Taxes                  82         --         3,897      107
Net Sales                          $ 76,107   $ 76,138   $ 247,985  $ 209,124
Cost of Sales                      70,047     73,347     230,382    202,602
Gross Profit                       $ 6,060    $ 2,791    $ 17,603   $ 6,522
Selling, General and               $ 6,037    $ 5,074    $ 20,070   15,644
Administrative Expenses
Gain on Sale of Assets, Net        (889)      --         (841)      --
Other Operating Costs              38         294        288        719
Income (Loss) from Operations      $ 874      $ (2,577)  $ (1,914)  $ (9,841)
Gain on Joint Venture Interest     --         --         4,055      --
Other Income, Net                  (1)        46         3          51
Interest Expense                   (225)      (114)      (712)      (206)
Equity in Earnings (Loss) of Joint (130)      (2,830)    164        (5,002)
Income (Loss) Before Income Taxes  $ 518      (5,475)    $ 1,596    $ 14,998
Provision for Income Taxes         100        34         152        68
Net Income (Loss)                  $ 418      $ (5,509)  $ 1,444    $ (15,066)
Other Comprehensive Income (Loss)  826        (3,520)    1,011      (532)
Comprehensive Income (Loss)        $ 1,244    $ (9,029)  $ 2,455    $ (15,598)
Basic Earnings (Loss) Per Common   $ 0.02     $ (0.33)   $ 0.08     $ (0.91)
Diluted Earnings (Loss) Per Common $ 0.02     $ (0.33)   $ 0.08     $ (0.91)
Weighted Average Shares            16,976,054 16,847,100 16,936,366 16,709,933
Weighted Average Shares            16,976,120 16,847,100 16,936,679 16,709,933

(Dollars in       Sept. 30,  Dec. 31,  (Dollars in         Sept. 30, Dec. 31,
thousands)        2012       2011      thousands)          2012      2011
                                       LIABILITIES AND
ASSETS                               STOCKHOLDERS'                
Current Assets:                      Current                      
Cash and Cash     $ --       $ 383    Current Maturities  $ 1,710   $ 1,670
Equivalents                            on Long-term Debt
Restricted Cash   129        7,605     Revolving Credit    26,368    21,142
Receivables       30,294     27,804    Accounts Payable    15,094    22,704
Inventory         34,505     31,082    Accounts Payable to 2,572     6,167
                                       Affiliate, Net
Prepaid Expenses  1,737      958       Accrued Expenses    5,418     4,023
Deferred Income   4,763      6,056     Derivative          148       3,465
Taxes                                  Liabilities
Refundable Income 414        566       Total Current       $ 51,310  $ 59,171
Taxes                                  Liabilities
Derivative Assets 606        1,304     Other Liabilities:           
Assets Held for                        Long-term Debt,
Sale              --         2,300     Less Current        5,564     6,852
Total Current     $ 72,448   $ 78,058  Deferred Credit     3,747     4,195
                                    Accrued Retirement, 5,283     6,309
                                       Health and Life
                                    Insurance Benefits           
Property and                           Other Noncurrent
Equipment, at     189,052    185,386   Liabilities         1,460     2,144
Less Accumulated  (112,336)  (108,307) Noncurrent Deferred 4,763     6,056
Depreciation                           Income Taxes
Net Property,                        Total Other         $ 20,817  $ 25,556
Plant and                              Liabilities
Equipment         $ 76,716   $ 77,079  Total Liabilities   $ 72,127  $ 84,727
Investment in     7,762      12,147    Stockholders'       86,514    84,430
Joint Ventures                         Equity
Other Noncurrent  1,715      1,873     TOTAL LIABILITIES            
Assets                                 AND
TOTAL ASSETS      $ 158,641  $ 169,157 STOCKHOLDERS'       $ 158,641 $ 169,157
Capital Structure                                                
Net Investment                                                   
Cash and Cash     $ --       $ 383                                 
                                    Financed By:                 
Working Capital   $ 21,138   $ 18,887  Long-term Debt*     $ 5,564   $ 6,852
Property, Plant   76,716     77,079    Deferred            15,253    18,704
and Equipment                          Liabilities
Other Noncurrent  9,477      14,020    Stockholders'       86,514    84,430
Assets                                 Equity
Total             $ 107,331  $ 109,986 Total               $ 107,331 $ 109,986
*Excludes short-term portion.Short- term portion is included within working

CONTACT: For More Information
         Investors & Analysts:
         George Zagoudis, Investor Relations
         913-360-5441 or
         Shanae Randolph, Corporate Director of Communications
         913-360-5442 or

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