Pinnacle Foods Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 24, 2017; Provides Earnings Guidance for the Year 2017
For the nine months, the company reported net sales of $2,260.496 million against $2,269.457 million a year ago. Earnings before interest and taxes were $249.282 million against $306.335 million a year ago. Earnings before income taxes were $110.984 million against $202.865 million a year ago. Net earnings attributable to the company and subsidiaries common shareholders were $88.176 million or $0.74 per diluted share against $122.973 million or $1.04 per diluted share a year ago. Net cash provided by operating activities was $178.722 million against $239.942 million a year ago. Capital expenditures were $70.515 million against $76.623 million a year ago. Adjusted net earnings were $192.614 million or $1.61 per share against $160.160 million or $1.36 per share a year ago. Adjusted EBIT was $365.031 million against $356.128 million a year ago. Adjusted EBITDA was $444.421 million against $434.877 million a year ago.
The company maintained its guidance for adjusted diluted EPS for 2017 in a range of $2.55 to $2.60, and continues to expect to be at the low end of the range, reflecting the inclusion of the full-year impact of the discrete items and hurricanes. This outlook represents growth versus year-ago approaching 19% and includes the following assumptions: The benefit of the 53rd week is expected to add approximately 1% to net sales and $0.03 to Adjusted Diluted EPS for the year. This impact will benefit the fourth quarter of 2017. Input cost inflation for the year is now estimated to be approximately 3.0%, reflecting higher than previously-expected transportation expense. Productivity for the year is now estimated to slightly exceed 4.0% of cost of products sold, excluding Boulder Brands acquisition synergies of at least $15 million that will benefit both gross margin and SG&A overhead. The discrete items that impacted performance through the third quarter are expected to impact fourth quarter Adjusted diluted EPS by approximately $0.03. Net interest expense is now forecasted at approximately $121 million. Adjusted ETR for the year, including the benefit of the new accounting standard for stock-based compensation, is now estimated to be approximately 32.5%. Capital expenditures for the year are now estimated to be approximately $100 million, excluding the $37.5 million acquisition of the frozen warehouse and packaging facility in Beaver Dam, Wisconsin.