Ridley Inc.

Ridley Inc.

September 06, 2012 18:13 ET

Ridley Inc. Reports Financial Results for Fiscal 2012 Fourth Quarter

MANKATO, MINNESOTA and WINNIPEG, MANITOBA--(Marketwire - Sept. 6, 2012) - Ridley Inc. (TSX:RCL) today reported its financial results for the three and twelve months ended June 30, 2012. All currency amounts are stated in U.S. dollars unless otherwise noted.

For the three months ended June 30, 2012, Ridley's earnings before interest, taxes, depreciation, amortization, and exceptions (EBITDA) were $4.8 million compared to $3.9 million last year. EBITDA for the twelve months of fiscal 2012 was $27.1 million compared to $25.8 million for the same period last year. Net earnings after income taxes for the fourth quarter of 2012 were $0.3 million (3 cents per share) compared to a loss in the fourth quarter last year of $0.5 million (loss of 4 cents per share). Net earnings for the twelve months of fiscal 2012 were $9.0 million (70 cents per share) compared to $9.5 million (74 cents per share) last year.

Ridley's tonnage volumes in the fourth quarter of fiscal 2012 were lower from the same period last year by 2.6% as a result of lower complete feed volumes. Volumes of higher value-added feed supplements and premixes increased in the period. For the twelve months of fiscal 2012 tonnage volumes were flat in comparison to last year. Rising feed ingredient prices resulted in higher average unit selling prices over last year, which accounted for a $62.0 million increase in revenues in fiscal 2012 over the prior year.

Gross profits in the fourth quarter increased over last by $2.2 million due to the continuing shift in Ridley's product mix toward higher value-added products and the result of gains from rising feed ingredients prices. Gross profit of $75.3 million for fiscal 2012 was $3.4 million ahead of the prior year due to improved product mix and lower manufacturing overheads.

Operating expenses in the fourth quarter of fiscal 2012 were higher than the prior year by $1.4 million as a result of less favourable foreign currency gains, less favourable pension adjustments, reclassification of certain plant management expenses, and restructuring costs. Excluding exceptions, operating expenses for the full year increased by $2.5 million over last year. Included in operating expenses this year was $2.5 million recorded for asset impairments, loss on sale of facilities and other restructuring charges on the discontinuation of operations and loss on sale of a facility.

Distributions made by Ridley's U.S. subsidiary to its Canadian parent entity are subject to withholding tax assessments. Included in income tax expense were withholding taxes of $1.3 million and $1.5 million in the fourth quarters of fiscal 2012 and fiscal 2011, respectively.

A special dividend of $25.3 million was paid in the fourth quarter of fiscal 2012. Ridley utilized cash flows from operations and borrowings to fund the dividend payment. Debt increased from $1.5 million as at June 30, 2011 to $11.0 million at June 30, 2012.

Ridley's audited consolidated financial statements and MD&A for the year ended June 30, 2012 will be filed with SEDAR and mailed to shareholders on September 28, 2012. Both documents will be contained in Ridley's 2012 annual report, which will also be available on the Company's website at www.ridleyinc.com or at www.sedar.com.

Consolidated Three months ended
June 30
Twelve months ended
June 30
($ million except for EPS) 2012 2011 2012 2011
Revenue $ 148.5 $ 146.5 $ 649.5 $ 587.5
Gross profit 17.0 14.8 75.3 71.9
Operating income 2.7 1.9 16.6 18.0
Net earnings (loss) before exceptions 0.4 (0.5 ) 10.6 9.5
Exceptions, net of income taxes (i) (0.1 ) - (1.6 ) -
Net earnings (loss) 0.3 (0.5 ) 9.0 9.5
Diluted earnings per share (EPS) $ 0.03 $ (0.04 ) $ 0.70 $ 0.74
EBITDA (ii) $ 4.8 $ 3.9 $ 27.1 $ 25.8
(i.) Exceptions - In the preceding summary data, net income was reported before exceptions. Exceptions in fiscal 2012 were comprised of a $0.2 million loss net of taxes from the sale of a previously closed facility in Syracuse, Indiana, $1.3 million net of taxes on impairment of assets, severance, and other restructuring costs related to the discontinuation of operations at facilities in Castleton, Indiana and Bushnell, Illinois.
(ii.) EBITDA - Operating income before depreciation, amortization and exceptions. Neither operating income nor EBITDA have a standardized meaning prescribed by IFRS and, therefore, is not readily comparable to similar measures presented by other companies. However, Ridley management believes that this measure provides investors with useful supplemental information.

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 and Winnipeg, Manitoba, is one of North America's leading commercial animal nutrition companies. Ridley employs more than 800 people in the United States and Canada 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.

Contact Information

  • RIDLEY Inc.
    Steve VanRoekel
    President and CEO
    (507) 388-9412

    RIDLEY Inc.
    Gordon Hildebrand
    Chief Financial Officer
    (507) 388-9577