Lamb Weston Holdings, Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended November 27, 2017; Updates Earnings Guidance for the Fiscal 2018
January 04, 2018 at 08:37 am EST
Share
Lamb Weston Holdings, Inc. announced unaudited consolidated earnings results for the second quarter and six months ended November 27, 2017. For the quarter, the company's net sales were $824.6 million compared with $790.7 million a year ago. Income from operations was $139.8 million compared with $125.5 million a year ago. Income before income taxes and equity method earnings was $112.4 million compared with $118.7 million a year ago. Net income attributable to the company was $76.6 million or $0.52 per diluted share compared with $87.2 million or $0.59 per diluted share a year ago. Adjusted income from operations was $143.8 million compared with $134.5 million a year ago. Adjusted EBITDA including unconsolidated joint ventures increased 12% to $189 million. Diluted EPS was $0.52, compared with $0.59 in second quarter 2017. Adjusted Diluted EPS was $0.54, compared with $0.63 in second quarter 2017. Adjusted net Income attributable to the company was $79.1 million or $0.54 diluted per share compared to $92.9 or $0.63 diluted per share a year ago. Adjusted EBITDA was $178.3 million compared to $160.9 a year ago.
For the six months, the company's net sales were $1,642.1 million compared with $1,567.0 million a year ago. Income from operations was $277.4 million compared with $250.5 million a year ago. Income before income taxes and equity method earnings was $224.8 million compared with $242.2 million a year ago. Net income attributable to the company was $160.0 million or $1.08 per diluted share compared with $166.8 million or $1.13 per diluted share a year ago. Net cash provided by operating activities was $182.2 million compared with $162.4 million a year ago. Additions to property, plant and equipment was $154.0 million compared with $127.8 million a year ago. Adjusted EBITDA including unconsolidated joint ventures was $380.3 million. Adjusted Diluted EPS was $1.11. Adjusted income from operations was $283.6 million compared to $269.2 million a year ago. Adjusted net Income attributable to the company was $163.9 million or $1.11 diluted per share compared to $178.6 or $1.21 diluted per share a year ago. Adjusted EBITDA was $347.9 million compared to $321.0 a year ago.
The company has updated its outlook for fiscal 2018. The company's net sales Net sales expected to increase mid-single digits, up from a previous estimate of low-to-mid single digits Adjusted EBITDA including unconsolidated joint ventures expected to be $780 million-$790 million, up from a previous estimate of $740 million-$760 million. Interest expense was $105 million-$110 million which is an increase of approximately $45 million to $50 million from fiscal 2017 due to the full-year impact of the Company's capital structure after the spinoff from Conagra Cash used for capital expenditures approximately $250 million for fiscal 2018, an increase of $25 million versus the previous estimate of $225 million. This increase primarily relates to costs associated with the initial phase of construction of a new production line at company Hermiston, Oregon facility.
Lamb Weston Holdings, Inc. is a supplier of frozen potato, sweet potato, appetizer and vegetable products to restaurants and retailers around the world. The Companyâs segments include Global, Foodservice, Retail, and Other. The Global segment includes frozen potato products sold in North America and international markets generally to the North American based restaurant chains and international customers comprised of global and regional quick service and full-service restaurant chains, foodservice distributors, and retailers. The Foodservice segment includes frozen potato products sold throughout the United States and Canada to commercial distributors, restaurant chains generally outside the North American based restaurant chains, and non-commercial channels. The Retail segment includes consumer-facing frozen potato products sold primarily to grocery, mass merchants, club, and specialty retailers. The Other reporting segment primarily includes its vegetable and dairy businesses.
Lamb Weston Holdings, Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended November 27, 2017; Updates Earnings Guidance for the Fiscal 2018