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Ridley Inc. Reports Financial Results for Fiscal 2013 Fourth Quarter

Ridley Inc. Reports Financial Results for Fiscal 2013 Fourth Quarter 
MANKATO, MINNESOTA -- (Marketwired) -- 09/11/13 -- Ridley Inc.
(TSX:RCL) today reported its financial results for the three and
twelve months ended June 30, 2013. All currency amounts are stated in
U.S. dollars unless otherwise noted. 
For the three months ended June 30, 2013, Ridley's earnings before
interest, taxes, depreciation and amortization (EBITDA) from
continuing operations were $5.4 million compared to $4.5 million last
year. Net income from continuing operations (net of income tax
expense) for the period was $1.7 million ($0.14 per share) compared
to $0.3 million ($0.02 per share) last year. 
Revenue from continuing operations was $130.1 million in the fourth
quarter of fiscal 2013, an increase of $11.8 million over the same
period last year. The shift in product mix from complete feeds to
higher value- added products such as feed supplements and blocks
combined with generally higher raw material prices contributed to
higher average unit selling prices for the Company's feed products.
However, most of the increase in revenue in the fourth quarter was
the result of a 7.1% increase in volumes of continuing operations as
measured in tons of feed products sold. Sales volume in the fourth
quarter continued to benefit from good producer economics in the beef
and dairy sectors. The acquisition of Stockade Brands Inc. in the
second quarter this year also contributed to increased revenues and
volumes. 
Consolidated gross profit from continuing operations in the fourth
quarter of fiscal 2013 was $16.5 million compared to $15.3 million in
the same period last year. The increase of $1.2 million in gross
profit in the fourth quarter was largely the result of increased
volumes in the quarter and higher average unit margins relative to
last year that followed from the continuing shift in product mix to
higher value-added products, particularly feed supplements and
blocks. Manufacturing and delivery costs were proportionately higher
with the increase in volumes in the period. 
Operating expenses, which include research and development, technical
services, selling and administration expenses, were $12.8 million in
continuing operations compared to $12.6 million last year. Operating
expenses last year included charges of $0.2 million for restructuring
and plant impairment related to the closure of two feed production
facilities in fiscal 2012. Excluding exceptions last year, overhead
expenses in the fourth quarter of fiscal 2013 were comparable to
those of the same period last year. 
The Company's share of the earnings of Masterfeeds LP, reported as
"share of income of associate", was $0.1 million for the fourth
quarter of fiscal 2013. Masterfeeds LP is a limited partnership
formed in November 2012 by the merger of Ridley's Canadian feed
assets with those of Masterfeeds Inc., a subsidiary of Ag Processing
Inc. Ridley owns a non-controlling interest in Masterfeeds LP. 
Distributions made by the Company's U.S. subsidiary to its Canadian
parent entity are subject to withholding tax assessments. Included in
income tax expense are withholding taxes of $0.8 million and $1.3
million in the fourth quarters of fiscal 2013 and fiscal 2012,
respectively. 
A special dividend of $19.1 million was paid in the fourth quarter of
fiscal 2013. The dividend was funded using available cash generated
from operating activities and borrowing on Ridley's credit facility.
Debt increased from $11.0 million as at June 30, 2012 to $12.0
million as at June 30, 2013. 
Discontinued operations are comprised of the Company's feed
manufacturing business in Canada, previously reported as the Canadian
Feed Operations (CFO) segment. Prior period results of CFO have been
re-presented as discontinued operations. Net income from discontinued
operations in the fourth quarter of fiscal 2013 was $0.1 million -
unchanged from last year. 
Including income from discontinued operations, the Company reported
net income after taxes for the fourth quarter of $1.8 million ($0.14
per share) compared to $0.3 million ($0.03 per share) in the same
period last year. 
Ridley's audited consolidated financial statements and MD&A for the
year ended June 30, 2013 will be filed with SEDAR on September 24,
2013 and mailed to shareholders on October 1, 2013. Both documents
will be contained in Ridley's 2013 annual report, which will also be
available on the Company's website at www.ridleyinc.com or at
www.sedar.com. 


 
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Summary of Results of Operations        3 Months             12 Months      
                                      Ended June 30        Ended June 30    
($000s)                                 2013      2012       2013      2012 
----------------------------------------------------------------------------
Continuing Operations (i)                                                   
 Revenue                             130,053   118,260    574,750   528,000 
 Gross profit                         16,472    15,255     79,819    68,387 
 Operating income                      3,670     2,612     30,152    17,131 
 Net income before exceptions          1,746       399     18,661    10,913 
 Exceptions, net of income tax                                              
  (ii)                                     -      (122)         -    (1,549)
----------------------------------------------------------------------------
 Net income from continuing                                                 
  operations                           1,746       277     18,661     9,364 
 Earnings per share (EPS), from                                             
  continuing operations            $    0.14 $    0.02  $    1.46 $    0.73 
 EBITDA (iii)                          5,433     4,462     36,970    26,502 
----------------------------------------------------------------------------
Net income (loss) from                                                      
 discontinued operations                  86        51        579      (412)
Net income for the period              1,832       328     19,240     8,952 
Earnings per share (EPS), basic                                             
 and diluted                       $    0.14 $    0.03  $    1.50 $    0.70 
----------------------------------------------------------------------------
(i)    Continuing Operations excludes the results of the Company's feed     
       manufacturing operations in Canada previously reported as the        
       Canadian Feed Operations (CFO) segment and now comprising            
       discontinued operations.                                             
(ii)   Exceptions - In the preceding summary data, net income of continuing 
       operations was reported before exceptions. There were no exceptions  
       in fiscal 2013. Exceptions in fiscal 2012 were comprised of a $0.4   
       million loss net of taxes from the sale of a previously closed       
       facility in Syracuse, Indiana and $1.2 million net of taxes on       
       impairment of assets, severance, and other restructuring costs       
       related to the closure of facilities in Castleton, Indiana and       
       Bushnell, Illinois in 2012.                                          
(iii)  EBITDA - Operating income before depreciation, amortization and      
       exceptions. EBITDA does not have a standardized meaning prescribed by
       GAAP and, therefore, is not readily comparable to similar measur
es   
       presented by other companies. However, management believes that this 
       measure provides investors with useful supplemental information.     

 
Outlook 
Generally speaking, most sectors of livestock and poultry production
in North America were profitable throughout Ridley's fiscal 2013
despite high and volatile feed prices, which comprise the majority of
the cost of animal production. Severe drought conditions at the start
of the year contributed to higher commodity prices and increased
costs to producers from replacing normal forage sources with
commercial feed supplements. Drought and rising raw material prices
were a positive factor for Ridley's volumes and unit margins in
fiscal 2013. However, current conditions are markedly changed:
drought persists in the cattle growing regions of the Western and
Southwestern U.S., but in much of Ridley's trading area in the 
Midwest there has been excessive moisture, an abundance of forage
supplies for livestock producers and expectations of improved grain
crops this fall. 
Grain prices have decreased significantly in recent months, which
will be beneficial to the economic prospects of producers and a
positive influence for the rebuilding of herd populations. However,
lower commodity prices in the coming year would be a negative factor
for Ridley's unit margins. Market prices for feed ingredients, which
generally move in tandem with commodities, directly impact the value
of Ridley's raw materials inventories and the margin between
ingredient cost and market driven prices realized on the sale of
finished feed products. Consequently, the potential for continuing
volatility in feed ingredient prices and the abundance of livestock
forage in much of the Midwest will be amongst the more significant
drivers of Ridley's results in fiscal 2014. 
Forward-Looking Information 
This report contains "forward-looking" information. The
forward-looking information includes statements concerning Ridley's
outlook for the future, as well as other statements of beliefs, plans
and strategies or anticipated events, and similar expressions
concerning matters that are not historical facts. Forward- looking
information and statements are subject to risks and uncertainties
that could cause actual results to differ materially from those
expressed in, contemplated or implied by, such statements. These
risks and uncertainties include the ability to make effective
acquisitions and successfully integrate newly acquired businesses
into existing operations, the availability and prices of raw
materials and supplies, livestock disease, product pricing, the
competitive environment and related market conditions, operating
efficiencies, access to capital, the cost of compliance with
environmental and health standards and other regulatory requirements
affecting Ridley's business, adverse results from ongoing litigation,
and actions of domestic and foreign governments. Other risks are
outlined in the Risk Management section of the MD&A included in
Ridley's Annual Report. Unless otherwise required by applicable
securities law, Ridley disclaims any intention or obligation to
publicly update or revise this information, whether as a result of
new information, future events or otherwise. Ridley cautions readers
not to place undue reliance upon forward-looking statements. 
Ridley Inc., headquartered in Mankato, Minnesota, is one of North
America's leading commercial animal nutrition companies. Ridley
employs more than 600 people in the manufacture, sales and marketing
of a full range of animal nutrition products under highly regarded
trade names. Ridley's common shares are listed on The Toronto Stock
Exchange (trading symbol: RCL). Additional information, including
Ridley's Annual Information Form (AIF), is available at
www.sedar.com.
Contacts:
RIDLEY Inc.
Steve VanRoekel
President and CEO
(507) 388-9412 
RIDLEY Inc.
Gordon Hildebrand
Chief Financial Officer
(507) 388-9577
www.ridleyinc.com