Bob Evans Farms, Inc. Reports Impressive First Quarter FY 2018 Results And Raises Guidance -

Bob Evans Farms, Inc. Reports Impressive First Quarter FY 2018 Results And Raises Guidance

Aug 30, 2017Jeremy ParkinsonFinance0

Bob Evans Farms, Inc. (BOBE) reports that it is well positioned to continue driving robust growth of their refrigerated sides portfolio with the additional capacity and product capabilities provided through the acquisition of Pineland Farms on May 1, 2017.

About Bob Evans Farms, Inc.

Bob Evans Farms is a leading producer and distributor of refrigerated potato, pasta and vegetable-based side dishes, pork sausage, and a variety of
refrigerated and frozen convenience food items under the Bob Evans and Owens brand names.

First Quarter FY 2018 Results (as compared to the comparable period last year)

Net sales: UP 27.1% to $109.3 million (UP 11.1% excluding Pineland net sales and sales to Bob Evans Restaurants (now 3^rd party);

Retail side-dish and sausage pounds-sold: UP 18.1% (excluding Pineland) and 13.0%, respectively;

GAAP net income per diluted share: UP 52.2% to $0.35;

Non-GAAP net income per diluted share: UP 60.9% to $0.37;

Adjusted EBITDA: UP 38.3% to $19.5 million

Fiscal Year 2018 Guidance

Chief Administrative and Chief Financial Officer Mark Hood reported that the company was raising its:

Non-GAAP diluted earnings per share guidance from a range of $2.06 to $2.24 that we issued last quarter to a range of $2.10 to $2.30 per share.

net sales guidance from $474 million to $486 million

and adjusted EBITDA guidance from $104 million to $110 million

Non-GAAP diluted earnings per share to $2.10-$2.30

Sow cost (per hundredweight) from $48 to $52

Capital expenditures from $25 to $30 million

Net interest expense from $3.7 to $4.2 million

Tax rate from 34.5% to 35.5%

First-quarter Fiscal 2018 Commentary by Mike Townsley, President and Chief Executive Officer

“We are very pleased with the strong start to the fiscal year, delivering significant volume growth in both refrigerated side dishes and sausage during the first quarter.

We continued to grow household penetration of refrigerated sides and increased market share by 250 basis points from the year ago period.

With the additional capacity and product capabilities provided through the acquisition of Pineland Farms on May 1, 2017, we are well positioned to continue driving robust growth of our refrigerated sides portfolio.

Despite a nearly 15% increase in sow costs driven by increased domestic and export demand for pork products that impacted sausage margins, we were able to deliver a 38.3% increase in adjusted EBITDA.”