Post Holdings Updates Certain Fiscal 2014 Guidance
ST. LOUIS, March 10, 2014
ST. LOUIS, March 10, 2014 /PRNewswire/ --Post Holdings, Inc. (NYSE:POST) (the
"Company") today updated its previously issued Adjusted EBITDA guidance for
fiscal 2014. This release should be read in conjunction with the financial
statements and management's discussion and analysis included in the Company's
filings with the Securities and Exchange Commission, as well as the matters
discussed under "Risk Factors" in the Company's second Form 8-K filed today,
March 10, 2014.
Post Holdings, Inc. Logo.
Including the partial year expected results of Dakota Growers Pasta Company,
Inc. ("Dakota") (acquired on January 1, 2014), as well as Golden Boy Foods
Ltd. and Dymatize Enterprises, LLC (both acquired on February 1, 2014), and
excluding the pending acquisition of the PowerBar and Musashi brands from
Nestle S.A., Post management now expects fiscal 2014 Adjusted EBITDA to be
between $300 and $320 million.
The updated Adjusted EBITDA guidance reflects adjustments for continued
holding company costs supporting M&A activity, delays in new business volume
at Dakota and softness in the ready-to-eat (RTE) cereal category in Post's
second fiscal quarter.
Further Discussion of Updated Guidance
Post management expects continued elevated holding company costs supporting
M&A activity, primarily consisting of increased audit fees for pending or
completed acquisitions, due diligence fees on abandoned acquisitions, outside
service fees related to IT integrations, and increased headcount to support a
larger footprint.Management will continue to prioritize investment in
integration and additional M&A over near-term profit targets.
Additionally, as expected, in late 2013 and early 2014, certain customers of
Dakota in-sourced ingredient purchases. The replacement of volume is
developing more slowly than expected. Management believes Dakota has a strong
pipeline of business development opportunities. Some are under contract and
some in the late stage of discussions. Management expects to return to
historical volume levels in 2015.
Finally, Post management has seen on-going softness in the RTE cereal category
in Post's second fiscal quarter resulting in a revision to the outlook for the
Post Foods business for fiscal 2014. Management believes the RTE cereal
category will return to a single digit growth rate in 2015.
Prospective Financial Information
Prospective financial information is necessarily speculative in nature, and it
can be expected that some or all of the assumptions upon which the prospective
financial information described above will not materialize or will vary
significantly from actual results. For further discussion of some of the
factors that may cause actual results to vary materially from the information
provided above see "Forward-Looking Statements" below. Accordingly, the
prospective financial information provided above is only an estimate of what
Post management believes is realizable as of the date of this press release.
It should also be recognized that the reliability of any forecasted financial
data diminishes the farther in the future that the data is forecast. In light
of the foregoing, the information should be viewed in context and undue
reliance should not be placed upon it.
Conference Call to Discuss Updated Guidance
The Company will host a conference call on Monday, March 10, 2014 at 4:30 p.m.
Eastern Time to discuss the updated guidance. The call will be hosted by
Robert V. Vitale, Post's Chief Financial Officer.
Interested parties may join the conference call by dialing (877) 540-0891 in
the United States and (678) 408-4007 from outside the United States. The
conference identification number is 11394798. Shareholders, employees, the
media and the public are invited to listen to the webcast of the conference
call, which can be accessed by visiting the Investor Relations section of the
Company's website at www.postholdings.com.
During the conference call, the Company will respond to questions regarding
the updated guidance, and may comment on other business or financial matters.
The Company's responses to these questions, as well as other matters discussed
during the conference call, may contain or constitute information that has not
been previously disclosed.
A replay of the conference call will be available through Monday, March 17,
2014, by dialing (800) 585-8367 in the United States and (404) 537-3406 from
outside the United States and using the conference identification number
11394798. A webcast replay will also be available for a limited period on the
Company's website in the Investor Relations section.
Use of Non-GAAP Measures
Management has determined that Adjusted EBITDA is a key metric that will help
investors understand the ultimate income and near-term cash flows generated by
our business. Adjusted EBITDA is a non-GAAP measure which represent net
earnings excluding income taxes, net interest expense, net other nonoperating
income/expense, depreciation and amortization, non-cash stock based
compensation, restructuring and plant closure costs, acquisition related
transaction costs, inventory revaluation adjustments on acquired businesses,
costs to effect Post's separation from Ralcorp Holdings, Inc. ("Ralcorp") and
to establish stand-alone systems and processes, mark to market adjustments on
economic hedges, losses on hedge of purchase price of acquisitions and
intangible asset impairments, if any. The Company believes that Adjusted
EBITDA is useful to an investor in evaluating the Company's operating
performance and liquidity because (i) it is widely used to measure a company's
operating performance without regard to items such as depreciation and
amortization, which can vary depending upon accounting methods and the book
value of assets, (ii) it presents a meaningful measure of corporate
performance exclusive of the Company's capital structure and the method by
which the assets were acquired, and (iii) it is a widely accepted financial
indicator of a company's ability to service its debt, as the Company is
required to comply with certain covenants and limitations that are based on
variations of EBITDA in the Company's financing documents. The calculation of
Adjusted EBITDA is not specified by United States generally accepted
accounting principles. The calculation of Adjusted EBITDA may not be
comparable to similarly-titled measures of other companies. The Company has
not provided a quantitative reconciliation between Adjusted EBITDA presented
above to the most comparable financial measure or measures calculated and
presented in accordance with GAAP because it is not reasonably practicable to
produce such reconciliation for this prospective financial information.
Reconciliations to other non-GAAP financial measures that are not included in
this press release but may be discussed during the conference call will also
be available in the Investor Relations section of the Company's website at
www.postholdings.com prior to the start of the conference call.
The Adjusted EBITDA guidance for fiscal 2014, our expectations regarding the
replacement of the lost Dakota business and Post management's expectation for
the RTE cereal category growth discussed in this press release are
forward-looking statements. Such statements involve certain risks and
uncertainties that could cause actual results to differ materially from those
in the forward-looking statements. Potential risks and uncertainties include
our high leverage and substantial debt, including covenants that restrict the
operation of our business; our ability to service our outstanding debt or
obtain additional financing; our ability to continue to compete in our product
markets and our ability to retain our market position; our ability to identify
and complete acquisitions, manage our growth and integrate acquisitions;
changes in our cost structure, management, financing and business operations;
significant increases in the costs of certain commodities, packaging or energy
used to manufacture our products; our ability to recognize the expected
benefits of the closing of our Modesto, California manufacturing facility; our
ability to maintain competitive pricing, successfully introduce new products
or successfully manage our costs; our ability to successfully implement
business strategies to reduce costs; impairment in the carrying value of
goodwill or other intangibles; the loss or bankruptcy of a significant
customer; allegations that our products cause injury or illness, product
recalls and product liability claims and other litigation; our ability to
anticipate changes in consumer preferences and trends; changes in economic
conditions and consumer demand for our products; disruptions in the U.S. and
global capital and credit markets; labor strikes or work stoppages by our
employees; legal and regulatory factors, including changes in food safety,
advertising and labeling laws and regulations; our ability to comply with
increased regulatory scrutiny related to certain of our products and/or
international sales; disruptions or inefficiencies in supply chain; our
reliance on third party manufacturers for certain of our products;
fluctuations in foreign currency exchange rates; consolidations among the
retail grocery and foodservice industries; change in estimates in critical
accounting judgments and changes to or new laws and regulations affecting our
business; losses or increased funding and expenses related to our qualified
pension plans; loss of key employees; our ability to protect our intellectual
property; changes in weather conditions, natural disasters and other events
beyond our control; our ability to successfully operate our international
operations in compliance with applicable regulations; our ability to operate
effectively as a stand-alone, publicly traded company; our ability to satisfy
the requirements of Section 404 of the Sarbanes-Oxley Act of 2002, including
with respect to acquired companies; business disruptions caused by information
technology failures; and other risks described in the Company's filings with
the Securities and Exchange Commission. These forward-looking statements
represent the Company's judgment as of the date of this press release. The
Company disclaims, however, any intent or obligation to update these
SOURCE Post Holdings, Inc.
Contact: Investor Relations, Brad Harper, firstname.lastname@example.org, (314)
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