Lamb Weston Holdings, Inc. Reports Unaudited Consolidated Earnings Results for Thirteen Weeks and Thirty-Nine Weeks Ended February 25, 2018; Revises Earnings Guidance for 2018
April 05, 2018 at 02:42 pm EDT
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Lamb Weston Holdings, Inc. reported unaudited consolidated earnings results for thirteen weeks and thirty-nine weeks ended February 25, 2018. For the thirteen weeks, the company reported net sales of $863.4 million compared to $768.5 million for the same period a year ago, up 12% versus the year-ago period. Price/mix increased 7% due to pricing actions and favorable product and customer mix. Income from operations was $169.2 million compared to $145.2 million for the same period a year ago. Income before income taxes and equity method earnings was $140.7 million compared to $118.9 million for the same period a year ago. Net income attributable to the company was $156.8 million or $1.06 per diluted earnings per share compared to $84.2 million or $0.57 per basic and diluted earnings per share for the same period a year ago. Diluted EPS increased $0.49 to $1.06 from $0.57 in the prior year period. Approximately $0.31 of the increase relates to the Tax Cuts and Jobs Act enacted in December 2017, and included a $0.16 benefit from discrete items and a $0.15 benefit related to adopting a lower tax rate. The remaining increase was driven by growth in income from operations and equity method investment earnings. Adjusted EBITDA including unconsolidated joint ventures was $237.6 million compared to $190.8 million for the same period a year ago. Adjusted income from operations increased 14% to $171 million. Adjusted diluted EPS increased to $0.91 from $0.59 in third quarter 2017, and includes a $0.15 benefit from a lower tax rate as a result of U.S. tax reform.
For the thirty-nine weeks, the company reported net sales of $2,505.5 million compared to $2,335.5 million for the same period a year ago. Income from operations was $446.6 million compared to $395.7 million for the same period a year ago. Income before income taxes and equity method earnings was $365.5 million compared to $361.2 million for the same period a year ago. Net income attributable to the company was $316.8 million or $2.14 per diluted earnings per share compared to $251.0 million or $1.70 per diluted earnings per share for the same period a year ago. Adjusted EBITDA including unconsolidated joint ventures increased 25% to $238 million. Adjusted income from operations increased 14% to $171 million. Net cash provided by operating activities was $310.2 million compared to $254.1 million for the same period a year ago. Additions to property, plant and equipment was $204.4 million compared to $204.5 million for the same period a year ago. Adjusted EBITDA including unconsolidated joint ventures was $617.9 million compared to $530.7 million for the same period a year ago. Adjusted diluted EPS was $2.01 increased 12%.
For the year 2018, the company's expected net sales to increase at upper end of mid-single digits range, up from a previous estimate of mid-single digits. Adjusted EBITDA including unconsolidated joint ventures expected to be $805 million-$810 million, up from a previous estimate of $780 million-$790 million. Interest expense expected to be approximately $110 million. Effective tax rate excluding comparability items expected to be approximately 28%. Cash used for capital expenditures expected to be $270 million-$280 million up from the company's previous estimate of $250 million.
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. Reports Unaudited Consolidated Earnings Results for Thirteen Weeks and Thirty-Nine Weeks Ended February 25, 2018; Revises Earnings Guidance for 2018