Dean Foods Company (DF) has reported 77.66 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $32.83 million, or $0.36 a share in the quarter, compared with $18.48 million, or $0.20 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $34.21 million, or $0.38 a share compared with $32.80 million or $0.36 a share, a year ago.
Revenue during the quarter went down marginally by 0.22 percent to $2,018.01 million from $2,022.50 million in the previous year period. Gross margin for the quarter contracted 29 basis points over the previous year period to 24.85 percent. Total expenses were 96.51 percent of quarterly revenues, down from 97.75 percent for the same period last year. This has led to an improvement of 124 basis points in operating margin to 3.49 percent.
Operating income for the quarter was $70.35 million, compared with $45.41 million in the previous year period.
However, the adjusted operating income for the quarter stood at $70.31 million compared to $66.95 million in the prior year period. At the same time, adjusted operating margin improved 17 basis points in the quarter to 3.48 percent from 3.31 percent in the last year period.
Chief executive officer Ralph Scozzafava said, "2016 was a strong year for Dean Foods. In the fourth quarter, we delivered 6% growth in both adjusted operating income per gallon and adjusted earnings per share. For the full year, our operating income per gallon grew nearly 21% versus prior year. Our adjusted earnings per share of $1.57 represents a nearly 28% increase over 2015. I am very pleased with the hard work this organization has dedicated to driving improved results in support of our long-term strategic agenda."
For the first-quarter, On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.12 to $0.20.
For fiscal year 2017, the company expects diluted earnings per share to be in the range of $1.35 to $1.55 on adjusted basis.
Operating cash flow drops significantlyDean Foods Company has generated cash of $257.41 million from operating activities during the year, down 36.93 percent or $150.74 million, when compared with the last year. The company has spent $288.14 million cash to meet investing activities during the year as against cash outgo of $146.25 million in the last year. It has incurred net capital expenditure of $129.94 million on net basis during the year, down 9.80 percent or $14.11 million from year ago.
The company has spent $9.93 million cash to carry out financing activities during the year as against cash outgo of $215.90 million in the last year period.
Cash and cash equivalents stood at $17.98 million as on Dec. 31, 2016, down 70.40 percent or $42.75 million from $60.73 million on Dec. 31, 2015.
Debt moves upDean Foods Company has witnessed an increase in total debt over the last one year. It stood at $886.05 million as on Dec. 31, 2016, up 6.17 percent or $51.48 million from $834.57 million on Dec. 31, 2015. Total debt was 34 percent of total assets as on Dec. 31, 2016, compared with 33.01 percent on Dec. 31, 2015. Debt to equity ratio was at 1.45 as on Dec. 31, 2016, down from 1.53 as on Dec. 31, 2015. Interest coverage ratio improved to 4.26 for the quarter from 2.78 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
