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Del Monte Corporation Reports Fiscal 2013 Second Quarter Results

  Del Monte Corporation Reports Fiscal 2013 Second Quarter Results

Business Wire

SAN FRANCISCO -- December 07, 2012

Del Monte Corporation:

Announcement Highlights

For the second quarter fiscal 2013:

  *Net sales increased 1.5%

       *Pet Products sales increased 5.8% due to new product volumes and list
         pricing actions net of trade spend
       *Consumer Products sales decreased 2.3% due to existing product unit
         volume declines

  *Operating income declined 1.8%
  *Adjusted EBITDA^1 increased 1.1%
  *Total net debt was $3,737.0 million as of October 28, 2012

^1 Reflects “EBITDA” and “Consolidated EBITDA” as calculated pursuant to the
Company’s 7.625% Notes Indenture and credit agreements, respectively. Please
refer to the reconciliation of non-GAAP financial measures located at the end
of this press release.

Del Monte Foods Three Months Ended October 28, 2012

Del Monte Foods today reported net sales in the second quarter fiscal 2013 of
$1,009.7 million compared to $994.3 million in the second quarter fiscal 2012,
an increase of 1.5%. Pet new product volumes and list pricing actions net of
trade spend drove the increase. Existing product declines in both Pet and
Consumer partially offset the increase.

Operating income declined 1.8% from $107.1 million in the prior year period to
$105.2 million. The decrease was primarily driven by increased marketing and
operating costs. This was partially offset by list pricing actions net of
trade spend and lower G&A.

Adjusted EBITDA increased 1.1% to $160.7 million compared to $158.9 million in
the prior year period. The drivers of Adjusted EBITDA were similar to those of
operating income noted above. In addition, the cash impact of hedging activity
drove the increase in Adjusted EBITDA. Gains and losses on economic hedging
positions are recorded as other (income) expense. For cash flow hedges, the
effective portion of gains and losses is deferred in equity and recognized as
part of cost of products sold in the appropriate period. The cash impact of
all hedging activities is reflected in Corporate Adjusted EBITDA. In
calculating Adjusted EBITDA, the adjustment for cash benefits from economic
hedge positions is calculated pursuant to the Company’s 7.625% Notes Indenture
and credit agreements.

“The Company remains committed to long-term brand building in both Pet and
Consumer,” said Dave West, CEO of Del Monte Foods. “In November, the Company
launched a national integrated marketing campaign to support the  iconic Del
Monte brand, highlighting the brand’s vitality and nutritional appeal. Also,
we continue to support new Pet Products such as Meow Mix Tender Centers,
Pup-Peroni Mix-Stix, and Milo’s Kitchen Chicken Grillers Chicken Recipe
through increased marketing investment.”

Reportable Segments – Results for Three Months Ended October 28, 2012

Pet Products

Pet Products net sales were $497.0 million, an increase of 5.8% from net sales
of $469.6 million in the prior year period. The increase in Pet Products net
sales was driven by new product volume growth, primarily in dry cat food and
pet snacks. List pricing actions net of trade spend also positively
contributed to net sales.

Pet Products operating income increased 3.4% from $79.5 million in the second
quarter fiscal 2012 to $82.2 million in the second quarter fiscal 2013. The
increase was primarily due to list pricing actions net of trade spend
partially offset by higher marketing and operating costs.

Pet Products Adjusted EBITDA declined from $100.5 million in the second
quarter fiscal 2012 to $99.9 million in the second quarter fiscal 2013, or
0.6%.

Consumer Products

Consumer Products net sales were $512.7 million, a decline of 2.3% from net
sales of $524.7 million in the prior year period. The decline in Consumer
Products net sales was driven by unit volume declines in existing products
(retail Tomato) due to a planned shift in promotional activities and category
softness.

Consumer Products operating income declined 18.0% from $51.6 million in the
second quarter fiscal 2012 to $42.3 million in the second quarter fiscal 2013.
The decline was primarily driven by the negative impact of the topline and
higher marketing costs to support the Del Monte brand revitalization.

Consumer Products Adjusted EBITDA declined from $70.7 million in the second
quarter fiscal 2012 to $56.1 million in the second quarter fiscal 2013, or
20.7%. The drivers of the decline were similar to those of operating income
noted above.

Del Monte Foods Six Months Ended October 28, 2012

Net sales for the six months ended October 28, 2012 were $1,830.8 million
compared to $1,770.5 million for the prior year period, an increase of 3.4%.
The increase was driven by new products volume growth in Pet and list pricing
actions net of trade spend.

Operating income declined from $156.4 million in the prior year period to
$151.0 million, or 3.5%. The decline was primarily driven by increased
marketing and operating costs. List pricing actions net of trade spend and
lower G&A contributed positively to operating income.

Other income of $30.7 million for the six months ended October 28, 2012 was
comprised primarily of gains on commodity hedging contracts, partially offset
by losses on interest rate swaps. The gains on commodity hedging contracts
recorded in the period, the cash portion of which are reflected in Corporate
Adjusted EBITDA, partially offset both ingredient cost increases seen in cost
of products sold and ingredient cost increases that we expect to see in future
quarters.

Adjusted EBITDA increased 5.5% to $274.3 million compared to $260.1 million in
the prior year period. Cash benefits from economic hedge positions are
reflected in Corporate Adjusted EBITDA as noted above. List pricing actions
net of trade spend partially offset by increased marketing and operating
costs, contributed to the increase. In calculating Adjusted EBITDA, the
adjustment for cash benefits from economic hedge positions is calculated
pursuant to the Company’s 7.625% Notes Indenture and credit agreements.

Select Liquidity Data

At October 28, 2012, total debt was $3,893.3 million and cash and cash
equivalents were $156.3 million. As of October 28, 2012, there were no
outstanding borrowings under the Company’s $750.0 million ABL Facility. For
the six months ended October 28, 2012, capital expenditures totaled $42.2
million. The Company also spent $12.0 million for the acquisition of the
SnoKist assets.

Free Cash Flow^2 for the six months ended October 28, 2012 was $(133.7)
million, compared to $(90.5) million in the prior year period. The decline was
primarily due to higher working capital (inventories) and capital
expenditures. Higher Adjusted EBITDA partially offset the decline.

^2 Free Cash Flow is defined as Adjusted EBITDA less cash interest, cash taxes
(net of refunds), normal capital expenditures and plus/less decrease/increase
in working capital (excluding the impact of the Merger). Accordingly, this
excludes, among other things, $44.0 million related to tax refunds for the six
months ended October 30, 2011. Please refer to the reconciliation of non-GAAP
financial measures located at the end of this press release.

Conference Call/Webcast Information

Del Monte Foods will host a live audio webcast, accompanied by a slide
presentation, to discuss the second quarter fiscal 2013 results at 8:00 a.m.
PT (11:00 a.m. ET) today. To access the live webcast and slides, go to
http://investors.delmonte.com. Under Events, click Q2 F13 Del Monte Foods
Earnings Conference Call. Printable slides are expected to be available in
advance of the call. Historical quarterly results can be accessed at
http://investors.delmonte.com. The audio portion of the webcast may also be
accessed during the call (listen-only mode) as follows: 1-888-788-9432
(1-210-795-9068 outside the U.S. and Canada), verbal code: Del Monte Foods.
The webcast and slide presentation will be available online following the
presentation.

Merger

On March 8, 2011, Del Monte Foods Company was acquired by an investor group
led by funds affiliated with Kohlberg Kravis Roberts& Co. L.P., Vestar
Capital Partners and Centerview Capital, L.P. (collectively, the “Sponsors”).
The acquisition is referred to as the “Merger.”

About Del Monte Foods

Del Monte Foods is one of the country’s largest producers, distributors and
marketers of premium quality, branded pet products and food products for the
U.S. retail market, generating approximately $3.7 billion in net sales in
fiscal 2012. With a powerful portfolio of brands, Del Monte products are found
in eight out of ten U.S. households. Pet food and pet snacks brands include
Meow Mix^®, Kibbles 'n Bits^®, Milk-Bone^®, 9Lives^®, Pup-Peroni^®, Gravy
Train^®, Nature’s Recipe^®, Canine Carry Outs^®, ^  Milo’s Kitchen^®  and
other brand names. Food product brands include Del Monte^®, Contadina^®,
S&W^®, College Inn^®  and other brand names. The Company also produces and
distributes private label pet products and food products.

For more information on Del Monte Foods, visit the Company’s website at
www.delmontefoods.com.

Del Monte. Nourishing Families. Enriching Lives. Every Day.^®

Non-GAAP Financial Measures

Del Monte Corporation reports its financial results in accordance with
generally accepted accounting principles in the United States (“GAAP”). In
this press release and the accompanying webcast, Del Monte is also providing
certain non-GAAP financial measures – specifically, Adjusted EBITDA, Adjusted
EBITDA Margin, Free Cash Flow and Net Debt to Adjusted EBITDA.

Del Monte presents Adjusted EBITDA because it believes that this is an
important supplemental measure relating to its financial condition since it is
used in certain covenant calculations that may be required from time to time
under the indenture that governs its 7.625% Senior Notes due 2019 (referred to
therein as “EBITDA”) and the credit agreements relating to its Term Loan
Facility and ABL Facility (referred to therein as “Consolidated EBITDA”).
EBITDA is defined as income before interest expense, provision for income
taxes, and depreciation and amortization. Adjusted EBITDA is defined as
EBITDA, further adjusted as required by the definitions of “EBITDA” and
“Consolidated EBITDA” contained in the Company’s indenture and credit
agreements. Although Adjusted EBITDA may be useful to benchmark our
performance period to period, Del Monte’s presentation of Adjusted EBITDA has
limitations as an analytical tool. Adjusted EBITDA is not a GAAP measure of
liquidity or profitability and should not be considered as an alternative to
net income, operating income, net cash provided by operating activities or any
other measure determined in accordance with GAAP. Additionally, Adjusted
EBITDA is not intended to be a measure of cash flow available for
discretionary expenditures, as it does not take into account debt service
requirements, obligations under the monitoring agreement with Del Monte’s
Sponsors, capital expenditures or other non-discretionary expenditures that
are not deducted from the measure.

Del Monte presents Adjusted EBITDA Margin because it uses such measure
internally to focus management on year-over-year changes in the Company’s
business and believes this information is also helpful to investors. In
calculating Adjusted EBITDA Margin, the Company uses Adjusted EBITDA because
it believes its investors are familiar with Adjusted EBITDA and that
consistency in the presentation of EBITDA-related measures is helpful to
investors.

Del Monte presents Free Cash Flow because it uses such measure internally to
benchmark its performance period-to-period and believes this information is
also helpful to investors. This presentation of Free Cash Flow has limitations
as an analytical tool. Free Cash Flow does not represent the residual cash
flow available for discretionary expenditures, since it does not take into
account debt service requirements or other non-discretionary expenditures that
are not deducted from the measure.

Del Monte uses Net Debt to Adjusted EBITDA ratios internally to focus
management on year-over-year changes in the Company’s leverage and believes
this information is also helpful to investors. The Company uses Adjusted
EBITDA in this leverage measure because it believes its investors are familiar
with Adjusted EBITDA and that consistency in presentation of EBITDA-related
measures is helpful to investors.

Del Monte cautions investors that the non-GAAP financial measures presented
are intended to supplement its GAAP results and are not a substitute for such
results. Additionally, Del Monte cautions investors that the non-GAAP
financial measures used by the Company may not be comparable to similarly
titled measures of other companies.


Non-GAAP Reconciliation: Adjusted EBITDA, Free Cash Flow and Adjusted EBITDA Margin
                                                                                           
                  Three Months Ended October 28, 2012             Three Months Ended October 30, 2011
                  Pet        Consumer                             Pet        Consumer
(in millions)     Products   Products   Corporate   Total         Products   Products   Corporate   Total
                                                                                                    
Reconciliation:
Operating         $  82.2    $  42.3    $ (19.3 )   $ 105.2       $  79.5    $  51.6    $ (24.0 )   $ 107.1
income
Other income         –          –         4.9         4.9            –          –         (18.1 )     (18.1 )
(expense)
Adjustments to
arrive at
EBITDA:
Depreciation
and                  17.1       13.3      8.8         39.2           17.4       13.7      6.4         37.5
amortization
expense ^a
Amortization of
debt issuance       –         –        (5.8  )    (5.8    )     –         –        (6.4  )    (6.4  )
costs and debt
discount ^b
EBITDA            $  99.3    $  55.6    $ (11.4 )   $ 143.5       $  96.9    $  65.3    $ (42.1 )   $ 120.1
                                                                                                    
Non-cash             –          –         1.4         1.4            –          –         0.5         0.5
charges
Derivative           –          –         5.5         5.5            –          –         9.8         9.8
transactions ^c
Non-cash stock
based                –          –         2.3         2.3            –          –         1.4         1.4
compensation
Non-recurring        –          0.2       2.1         2.3            –          –         3.1         3.1
(gains) losses
Merger-related       –          –         –           –              –          –         3.6         3.6
items
Business
optimization         0.6        0.3       2.7         3.6            3.3        5.1       7.3         15.7
charges
Other               –         –        2.1       2.1          0.3       0.3      4.1       4.7   
Adjusted EBITDA   $  99.9    $  56.1    $ 4.7      $ 160.7      $  100.5   $  70.7    $ (12.3 )   $ 158.9 
                                                                                                    
Net sales                                           $ 1,009.7                                       $ 994.3
                                                                                                    
Adjusted EBITDA                                       15.9    %                                       16.0  %
margin
                                                                                                    
^a Includes $3.0 million of accelerated depreciation in the three months ended October 28, 2012 related to
the closure of our Kingsburg, California facility.
                                                                                                    
^b Represents adjustments to exclude amortization of debt issuance costs and debt discount reflected in
depreciation and amortization because such costs are not deducted in arriving at operating income.
                                                                                                    
^c Represents adjustments needed to reflect only the cash impact of derivative transactions in the
calculation of Adjusted EBITDA.


                                                                                           
                  Six Months Ended October 28, 2012               Six Months Ended October 30, 2011
                  Pet        Consumer                             Pet        Consumer
(in millions)     Products   Products   Corporate   Total         Products   Products   Corporate   Total
                                                                                                    
Reconciliation:
Operating         $  133.7   $  56.1    $ (38.8 )   $ 151.0       $  135.7   $  66.0    $ (45.3 )   $ 156.4
income
Other income         –          –         30.7        30.7           –          –         (48.4 )     (48.4   )
(expense)
Adjustments to
arrive at
EBITDA:
Depreciation
and                  34.4       26.2      19.7        80.3           34.8       26.6      12.7        74.1
amortization
expense ^a
Amortization of
debt discount
and debt            –         –        (11.9 )    (11.9   )     –         –        (12.7 )    (12.7   )
issuance costs
^b
EBITDA            $  168.1   $  82.3    $ (0.3  )   $ 250.1       $  170.5   $  92.6    $ (93.7 )   $ 169.4
                                                                                                    
Non-cash             –          –         1.6         1.6            –          –         1.7         1.7
charges
Derivative           –          –         (2.1  )     (2.1    )      –          –         45.4        45.4
transactions ^c
Non-cash stock
based                –          –         4.8         4.8            –          –         2.6         2.6
compensation
Non-recurring        –          1.4       3.3         4.7            –          –         6.0         6.0
(gains) losses
Merger-related       –          –         –           -              –          –         10.6        10.6
items
Business
optimization         3.4        3.0       4.1         10.5           3.3        5.1       8.9         17.3
charges
Other               –         –        4.7       4.7          0.8       0.8      5.5       7.1     
Adjusted EBITDA   $  171.5   $  86.7    $ 16.1     $ 274.3      $  174.6   $  98.5    $ (13.0 )   $ 260.1   
                                                                                                    
Adjustments to
arrive at free
cash flow:
Cash interest                                       $ (109.9  )                                     $ (110.6  )
Cash taxes (net                                       (1.3    )                                       42.3
of refunds)
Adjustment to
cash taxes to
eliminate                                             -                                               (44.0   )
impact of
Merger
Changes in
working capital                                       (254.6  )                                       (205.1  )
and other
Capital                                              (42.2   )                                      (33.2   )
expenditures
Free cash flow                                      $ (133.7  )                                     $ (90.5   )
^d
                                                                                                    
                                                                                                    
Net sales                                           $ 1,830.8                                       $ 1,770.5
                                                                                                    
Adjusted EBITDA                                       15.0    %                                       14.7    %
margin
                                                                                                    
^a Includes $7.8 million of accelerated depreciation in the six months ended October 28, 2012 related to the
closure of our Kingsburg, California facility.
                                                                                                    
^b Represents adjustments to exclude amortization of debt issuance costs and debt discount reflected in
depreciation and amortization because such costs are not deducted in arriving at operating income.
                                                                                                    
^c Represents adjustments needed to reflect only the cash impact of derivative transactions in the calculation
of Adjusted EBITDA.
                                                                                                    
^d Free Cash Flow is defined as Adjusted EBITDA less cash interest, cash taxes (net of refunds), normal capital
expenditures and plus/less decrease/ increase in working capital (excluding the impact of the Merger).
Accordingly, this excludes, among other things, $44.0 million related to tax refunds for the six months ended
October 30, 2011.


Forward-Looking Statements

This press release and the accompanying conference call may contain
forward-looking statements conveying management’s expectations as to the
future based on plans, estimates and projections at the time the Company makes
the statements. Forward-looking statements involve inherent risks and
uncertainties and the Company cautions you that a number of important factors
could cause actual results to differ materially from those contained in any
such forward-looking statement. Such forward-looking statements include
statements regarding expected productivity in fiscal 2013 as well as other
statements related to fiscal 2013.

Factors that could cause actual results to differ materially from those
described in this press release or the accompanying conference call include,
among others: our debt levels and ability to service our debt and comply with
covenants; the failure of the financial institutions that are part of the
syndicate of our revolving credit facility to extend credit to us;
competition, including pricing and promotional spending levels by competitors;
our ability to launch new products and anticipate changing pet and consumer
preferences; our ability to maintain or increase prices and persuade consumers
to purchase our branded products versus lower-priced branded and private label
offerings and shifts in consumer purchases to lower-priced or other value
offerings, particularly during economic downturns; our ability to implement
productivity initiatives to control or reduce costs; cost and availability of
inputs, commodities, ingredients and other raw materials, including without
limitation, energy (including natural gas), fuel, packaging, fruits,
vegetables, tomatoes, grains (including corn), sugar, spices, meats, meat
by-products, soybean meal, water, fats, oils and chemicals; logistics and
other transportation-related costs; hedging practices and the financial health
of the counterparties to our hedging programs; currency and interest rate
fluctuations; the loss of significant customers or a substantial reduction in
orders from these customers or the financial difficulties, bankruptcy or other
business disruption of any such customer; contaminated ingredients;
allegations that our products cause injury or illness, product recalls and
product liability claims and other litigation; transformative plans; strategic
transaction endeavors, if any, including identification of appropriate targets
and successful implementation; changes in, or the failure or inability to
comply with, U.S., foreign and local governmental regulations, including
packaging and labeling regulations, environmental regulations and
import/export regulations or duties; impairments in the book value of goodwill
or other intangible assets; sufficiency and effectiveness of marketing and
trade promotion programs; adverse weather conditions, natural disasters,
pestilences and other natural conditions that affect crop yields or other
inputs or otherwise disrupt operations; any disruption to our manufacturing or
supply chain, particularly any disruption in or shortage of seasonal pack;
reliance on certain third parties, including co-packers, our broker and
third-party distribution centers or managers; risks associated with foreign
operations; pension costs and funding requirements; protecting our
intellectual property rights or intellectual property infringement or
violation claims; failure of our information technology systems; and the
control of substantially all of our common stock by a group of private
investors and conflicts of interest potentially posed by such ownership.

Generally, these factors and other risks and uncertainties are described in
more detail, from time to time, in the Company’s filings with the Securities
and Exchange Commission, including its annual report on Form 10-K and
quarterly reports on Form 10-Q. All forward-looking statements in this press
release and accompanying conference call are qualified by these cautionary
statements and are made only as of the date of this press release. We
undertake no obligation, other than as required by law, to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.

                                                              
DEL MONTE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Income (Loss) (unaudited)
(in millions)
                                                                   
                         Three Months Ended          Six Months Ended
                         October 28,   October 30,   October 28,   October 30,
                         2012          2011          2012          2011
Net sales                $ 1,009.7     $   994.3     $ 1,830.8     $ 1,770.5
Cost of products sold     725.2         712.3      1,325.8     1,266.7 
Gross profit               284.5           282.0       505.0         503.8
Selling, general and      179.3         174.9      354.0       347.4   
administrative expense
Operating income           105.2           107.1       151.0         156.4
Interest expense           61.3            63.1        126.5         125.7
Other (income) expense    (4.9    )      18.1       (30.7   )    48.4    
Income (loss) from
continuing operations      48.8            25.9        55.2          (17.7   )
before income taxes
Provision (benefit)       19.2          8.7        19.3        (7.3    )
for income taxes
Net income (loss)        $ 29.6       $   17.2      $ 35.9       $ (10.4   )
                                                                   

                                                              
DEL MONTE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited)
(in millions)
                                                                   
                         Three Months Ended          Six Months Ended
                         October 28,   October 30,   October 28,   October 30,
                         2012          2011          2012          2011
Net income (loss)        $  29.6      $  17.2      $  35.9      $  (10.4  )
Other comprehensive
income (loss):
Foreign currency
translation                 0.4           (0.7  )       -             (0.8   )
adjustments
Pension and other
postretirement
benefits adjustments:
Prior service (cost)
credit arising during       -             0.1           -             (4.3   )
the period, net of tax
Loss on cash flow
hedging instruments,       (0.8  )      -           (0.8  )      -      
net of tax
Total other
comprehensive income        (0.4  )       (0.6  )       (0.8  )       (5.1   )
(loss)
                                                                
Comprehensive income     $  29.2      $  16.6      $  35.1      $  (15.5  )
(loss)
                                                                             

                                                            
DEL MONTE CORPORATION AND SUBSIDIARIES
Selected Financial Information (unaudited)
(in millions)
                                                                  
Net Sales
by Segment
              Three Months Ended                Six Months Ended
              October 28,       October 30,     October 28,       October 30,
Net sales:    2012              2011            2012              2011
Pet           $  497.0          $  469.6        $  955.3          $  891.6
Products
Consumer        512.7           524.7         875.5           878.9   
Products
Total         $  1,009.7       $  994.3       $  1,830.8       $  1,770.5 
                                                                  
                                                                  
Operating
Income by
Segment
              Three Months Ended                Six Months Ended
              October 28,       October 30,     October 28,       October 30,
Operating     2012              2011            2012              2011
income:
Pet           $  82.2           $  79.5         $  133.7          $  135.7
Products
Consumer         42.3              51.6            56.1              66.0
Products
Corporate       (19.3    )       (24.0  )       (38.8    )       (45.3   )
(a)
Total         $  105.2         $  107.1       $  151.0         $  156.4   
                                                                  
                                                                  
(a) Corporate represents expenses not directly attributable to reportable
segments. For the three and six months ended October 28, 2012, Corporate
includes $5.1 million and $11.1 million, respectively, of restructuring
related expenses.


                                                          
DEL MONTE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in millions, except share and per share data)
                                                             
                                               October 28,   April 29,
                                               2012          2012
                                                             (derived from
                                               (unaudited)   audited financial
                                                             statements)
ASSETS
                                                             
Cash and cash equivalents                      $ 156.3       $   402.8
Trade accounts receivable, net of allowance      269.3           195.3
Inventories                                      1,076.5         748.7
Prepaid expenses and other current assets       133.5         125.1     
TOTAL CURRENT ASSETS                             1,635.6         1,471.9
                                                             
Property, plant and equipment, net               732.0           729.2
Goodwill                                         2,119.7         2,119.7
Intangible assets, net                           2,749.2         2,774.2
Other assets, net                               131.2         148.1     
TOTAL ASSETS                                   $ 7,367.7    $   7,243.1   
                                                             
LIABILITIES AND STOCKHOLDER'S EQUITY
                                                             
Accounts payable and accrued expenses          $ 681.0       $   501.9
Short-term borrowings                            4.6             3.3
Current portion of long-term debt               13.2          91.1      
TOTAL CURRENT LIABILITIES                        698.8           596.3
                                                             
Long-term debt, net of discount                  3,870.3         3,883.0
Deferred tax liabilities                         967.1           953.8
Other non-current liabilities                   290.9         308.7     
TOTAL LIABILITIES                               5,827.1       5,741.8   
                                                             
Stockholder's equity:
Common stock ($0.01 par value per share,
shares authorized: 1,000: 10 issued and          -               -
outstanding)
Additional paid-in capital                       1,590.3         1,586.1
Accumulated other comprehensive income           (13.7   )       (12.9     )
(loss)
Retained earnings (accumulated deficit)         (36.0   )      (71.9     )
TOTAL STOCKHOLDER'S EQUITY                       1,540.6         1,501.3
                                                            
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY     $ 7,367.7    $   7,243.1   
                                                             

                                                                
DEL MONTE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (unaudited)
(in millions)
                                                     Six Months Ended
                                                     October 28,   October 30,
                                                     2012          2011
OPERATING ACTIVITIES:
Net income (loss)                                    $  35.9       $  (10.4  )
Adjustments to reconcile net income (loss) to net
cash used in operating activities:
Depreciation and amortization                           80.3          74.1
Deferred taxes                                          13.8          (10.8  )
Write off of debt issuance cost                         2.9           -
Loss on asset disposals                                 1.6           1.7
Stock compensation expense                              4.8           2.6
Unrealized (gain) loss on derivative financial          (38.0  )      44.5
instruments
Changes in operating assets and liabilities            (202.8 )     (146.9 )
NET CASH USED IN OPERATING ACTIVITIES                  (101.5 )     (45.2  )
                                                                   
INVESTING ACTIVITIES:
Capital expenditures                                    (42.2  )      (33.2  )
Merger, net of cash acquired                            -             (3.0   )
Payment for asset acquisition                          (12.0  )     -      
NET CASH USED IN INVESTING ACTIVITIES                  (54.2  )     (36.2  )
                                                                   
FINANCING ACTIVITIES:
Proceeds from short-term borrowings                     4.6           4.4
Payments on short-term borrowings                       (3.3   )      (8.2   )
Principal payments on long-term debt                    (91.1  )      (6.8   )
Capital contribution, net                              -           1.0    
NET CASH USED IN FINANCING ACTIVITIES                  (89.8  )     (9.6   )
Effect of exchange rate changes on cash and cash       (1.0   )     3.3    
equivalents
NET CHANGE IN CASH AND CASH EQUIVALENTS                 (246.5 )      (87.7  )
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD       402.8       205.2  
CASH AND CASH EQUIVALENTS AT END OF PERIOD           $  156.3     $  117.5  

Contact:

Media Contact
Del Monte Foods
Chrissy Trampedach, 415-247-3420
media.relations@delmonte.com
or
Analyst/Investor Contact
Del Monte Foods
Christina Um, 415-247-3382
investor.relations@delmonte.com
 
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