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STOCKTON, Calif. (PRWEB) December ten, 2007

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Diamond Food items, Inc. (Nasdaq:DMND), a top branded meals company specializing in processing, marketing and advertising and distributing culinary and snack merchandise, nowadays reported financial benefits for its fiscal 2008 1st quarter.

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Internet product sales enhanced 9 % to $ 184.5 million for the a few months finished Oct 31, 2007, compared to $ 169.five million for the 3 months finished October 31, 2006. GAAP diluted earnings for every share (EPS) was $ .fifty two when compared to $ .61 for the prior year’s comparable time period. EPS for the quarter elevated 8 percent in comparison to the 2007 1st quarter non-GAAP EPS of $ .forty eight. Non-GAAP EPS for the prior 12 months excludes a acquire of $ .eleven per share from the curtailment of a pension strategy, and a web gain of $ .02 per share principally relevant to closing and promoting a generation facility and consolidating functions in an additional facility. More specifics about non-GAAP EPS are presented under beneath the heading “About Diamond’s Non-GAAP Economic Steps.”

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“We are off to a robust start in fiscal 2008,” mentioned Michael J. Mendes, President and CEO. “We have been capable to effectively improve costs in this large input price setting, enabling Diamond to beat its estimates although investing in our brands. These investments, especially for our Emerald brand name, will aid push elevated income as the year progresses. In foodstuff stores, in which Emerald is much more completely distributed than in other channels, income have developed in excess of thirty percent in 8 out of the very last eleven months. This is a sturdy indication of the fundamental strength of the manufacturer on a very same-keep revenue basis.”

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Latest Economic and Company Development Highlights

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— Exceeded revenue and EPS targets for the quarter. Whole revenue exceeded the goal of $ 170 million to $ 180 million, and EPS exceeded the goal of $ .forty two to $ .48 per share

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— Diamond’s snack income in U.S. foodstuff retailers grew 28 percent throughout the 12-weeks ended November 4, 2007, 10 instances faster than the category, bringing Emerald’s share of the snack nut market to four.6 percent. Emerald’s share of tree nuts grew to five.6 per cent for the duration of this period of time

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— Paid a quarterly dividend of $ .045 per share on Oct 23, 2007 to shareholders of report as of Oct twelve, 2007, which represented a 50 per cent boost in the dividend price when compared to prior durations.

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Fiscal 2008 Outlook

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Diamond has elevated its complete-12 months fiscal 2008 net sales guidance to between $ 535 million and $ 555 million. Beforehand, this estimate was for $ 530 million to $ 550 million.

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Other advice continues to be unchanged:

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— Snack sales progress of in between 50 p.c and sixty five percent

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— North American Retail product sales progress of at the very least 19 percent

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— Gross margin improvement of approximately a hundred basis factors more than 2007 resulting from a mix of increased-margin retail business and price savings initiatives

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— Advertising expenditures of among $ 20 million and $ 22 million

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— Earnings just before interest, revenue taxes, fairness compensation and depreciation and amortization (altered EBITDA) of $ 35.9 million to $ 38.five million.

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— Complete-calendar year EPS of amongst $ .eighty to $ .90, which includes the following-tax results of stock-based payment of $ .twenty five to $ .27 per share.

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For the three months ending January 31, 2008 Diamond expects the subsequent:

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— Web sales of among $ 130 million and $ a hundred and forty million

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— EPS of in between $ .twelve and $ .seventeen.

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Economic Final results

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Net income by merchandise line were:

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Gross margin as a percentage of internet income was 16. percent and sixteen.5 p.c for the a few months ended October 31, 2007 and 2006, respectively. Gross margin for every pound transported increased nine.2 per cent to $ .378 for the three months finished October 31, 2007, when compared to $ .346 throughout the equivalent prior 12 months period of time.

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Selling, common and administrative expenditure for the three months ended October 31, 2007 was $ eleven.4 million in comparison to $ eleven.5 million for the similar prior calendar year time period, and includes $ one.six million and $ one.3 million of stock-dependent compensation, respectively. Marketing, standard and administrative expense as a share of web sales was six.two p.c in the quarter, compared to 6.eight percent for the equivalent prior year period.

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Advertising and marketing cost for the 3 months finished October 31, 2007 was $ 4.4 million in comparison to $ 3.two million for the similar prior yr period of time.

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Net interest and other expenditures for the three months ended October 31, 2007 was $ .4 million, in comparison to $ .three million for the similar prior 12 months time period.

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As of October 31, 2007, Diamond experienced $ one.seven million in cash and funds equivalents, $ three.8 million in quick-time period financial debt, $ twenty. million in lengthy-time period financial debt, and 16 million typical shares issued and excellent. Adjusted EBITDA was $ sixteen.9 million for the duration of the quarter, compared to $ 16.three million for the prior year interval. Modified EBITDA for the two several years excludes non-money stock-based compensation adjusted EBITDA for the prior year period of time excludes a gain on the curtailment of a pension strategy, and a gain connected to closing and offering a production facility and consolidating functions in yet another facility.

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Conference Get in touch with

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Diamond will host an trader meeting get in touch with and web forged today, December ten, 2007 at 1:thirty p.m. Pacific Time to discuss fiscal 2008 initial quarter results. The dial-in quantity for the meeting get in touch with is 877-243-0333 for U.S./Canada members and 706-634-1263 for all other members. The conference ID is 246-75692.

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A taped replay of the convention phone will be available starting about two hrs right after the call’s conclusion, and will stay accessible through December seventeen, 2007 at midnight Eastern Time, and can be accessed by dialing 800-642-1687 for U.S./Canada callers and 706-645-9291 for intercontinental callers, with the conference ID earlier mentioned. To obtain the live internet solid of the contact, check out the Diamond Food items website at http://www.diamondfoods.com/ and pick “Trader Relations.” An archived web solid will also be available at http://www.diamondfoods.com/ beneath “Trader Relations.”

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Financial Statements

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Diamond’s financial results for the 3 months finished October 31, 2007 and 2006 were as follows:

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Non-GAAP Monetary Info

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Diamond has supplied the adhering to non-GAAP monetary information for the a few months ended October 31, 2007 and 2006.

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Reconciliation of GAAP to non-GAAP monetary details:

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Reconciliation of GAAP earnings from operations to non-GAAP altered EBITDA:

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(1) 2008 complete-yr inventory-primarily based payment represents the mid-point of assistance.

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About Diamond’s non-GAAP Economic Steps. This release is made up of non-GAAP economic steps of Diamond’s functionality (“non-GAAP actions”) for various intervals. Non-GAAP monetary steps must not be regarded as a substitute for monetary actions ready in accordance with GAAP. Diamond’s non-GAAP financial actions do not mirror a comprehensive program of accounting, and differ equally from GAAP financial steps and from non-GAAP fiscal actions used by other organizations. Diamond urges buyers to assessment its reconciliation of non-GAAP financial actions to GAAP economic actions and its fiscal statements to assess its company.

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Diamond believes that its non-GAAP monetary actions provide significant data concerning functioning outcomes simply because they exclude quantities that Diamond excludes when checking operating outcomes and evaluating overall performance of the organization. Diamond believes that its non-GAAP fiscal actions also facilitate comparison of final results for existing intervals and organization outlook for foreseeable future intervals. Diamond’s non-GAAP financial actions consist of adjustments for the pursuing objects:

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— Restructuring and other charges in fiscal 12 months 2007 which are principally relevant to the closure of Diamond’s Lemont facility and the fees incurred to consolidate functions in its Fisher’s facility, a achieve on the sale of the Lemont facility, the estimated charges of terminating specified contracts and specific non-recurring specialist services charges. Diamond’s management believes it is beneficial to investors to exclude these amounts because they are non-recurring in character and are not reflective of the functioning final results of Diamond on an on-heading foundation.

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— Quantities linked with terminating its pension plan for administrative staff in fiscal yr 2007 thanks to its non-recurring character.

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Diamond’s management makes use of non-GAAP actions in inside stories employed to keep track of and make decisions about its enterprise, these kinds of as regular monthly financial studies geared up for administration. The principal limitation of the non-GAAP actions is that they exclude considerable bills needed under GAAP. They also replicate the workout of management’s judgments about which changes are appropriately created. To mitigate this limitation, Diamond presents the non-GAAP measures in relationship with GAAP benefits, and suggests that investors do not give undue excess weight to them. Diamond believes that non-GAAP measures give valuable info to investors by allowing them to view the company via the eyes of management, facilitating comparison of results across historical and foreseeable future durations, and providing a focus on the fundamental running overall performance of the business.

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Observe with regards to forward-searching statements: This press launch is made up of “forward-searching statements” in the that means of Part 27A of the Securities Act of 1933 and Segment 21E of the Securities Trade Act of 1934, including those relating to Diamond’s enterprise outlook and monetary advice. Our forward-seeking statements are based on management’s existing anticipations, are not ensures of foreseeable future overall performance, and are topic to several dangers and uncertainties that could lead to actual results to vary materially from expectations. We presently take into account the following to be among the important elements that could trigger our true benefits to vary materially from expectations: (1) Merchandise recollects or worries with safety and quality of food merchandise could harm sales or result in consumers to steer clear of our merchandise. (two) Our raw supplies are matter to fluctuations in availability and price tag, offer shortages, delayed crop harvests, and/or price will increase that could harm our profitability. (3) We encounter extreme opposition from national and regional opponents, such as people in the snack foodstuff industry, and if we are not able to compete successfully, we could lose consumers or experience decreased revenue. (4) We count on a couple of significant customers for a massive proportion of our sales, and the reduction of any of these clients or substance lessen in their purchases could end result in decreased income. (five) Our development is dependent on penetrating new distribution channels and expanding distribution in existing channels. (6) Adjustments in the foodstuff market, like dietary trends and client preferences, could lessen income of our products. (seven) Acquisitions entail considerable pitfalls, such as integration of acquired operations, diversion of management consideration, hazards of getting into new marketplaces and likely reduction of key personnel of obtained corporations. (8) Our worldwide enterprise exposes us to special hazards, such as trade constraints, regulatory developments, forex price fluctuations, and offer disruptions. (nine) We anticipate fees linked with product processing and transportation, such as gas, electricity, drinking water and normal gas, to enhance, which could decrease our margins and profitability. A thorough discussion of these and other pitfalls that affect our enterprise is contained in our SEC filings, such as our Annual Report on Kind 10-K and Quarterly Studies on Sort ten-Q, notably below the heading “Risk Factors.” Copies of our SEC filings are accessible on-line from the SEC or by getting in touch with Diamond’s Investor Relations at 415-445-7430 or by clicking on Trader Relations on Diamond’s web site at http://www.diamondfoods.com/. All info in this launch is existing as of the date of this release. Diamond undertakes no obligation to update any statement in light-weight of new details or long term occasions.

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About Diamond

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Diamond is a leading branded food organization specializing in processing, marketing and advertising and distributing culinary nuts and snack items below the Diamond and Emerald brand names.

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