Diamond Foods reports record earnings during fiscal 2008, 75% above ...

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Diamond Foods reports record earnings during fiscal 2008, 75% abovethe prior year

Diamond Foods, Inc. today reported financial results for its fourthquarter and full year of fiscal 2008, as well as financial guidancefor fiscal year 2009. Diluted earnings per share (EPS) for thethree months ended July 31, 2008 grew 220 percent to $0.16 comparedto $0.05 for the prior year's comparable period. For the twelvemonths ended July 31, 2008, EPS grew 72 percent to $0.91 comparedto $0.53 for the prior year's comparable period. The prior year'sEPS included $0.03 in net non-recurring charges.

"We delivered exceptional profit growth during a year in whichinput costs were at record levels," said Michael J. Mendes,President and CEO. "In addition, we took a number of steps tobetter position our snack business for profitable growth, includingthe launch of several promising new products and the addition ofnew distribution in key retail accounts."

Net sales grew 1 percent to $113.1 million during the quartercompared to $112.4 million during the prior year's comparableperiod. North American retail sales, which are the focus of theCompany's growth efforts, grew 24 percent led by a 39 percent risein culinary sales. For the twelve months ended July 31, 2008, netsales grew 2 percent to $531.5 million compared to $522.6 millionfor the prior year's comparable period and North American retailsales grew 11 percent.

Recent Financial and Corporate Development Highlights

-- Net sales of $113.1 million were above the midpoint of theguidance range, and EPS of $0.16 exceeded guidance estimates.

-- Culinary sales grew 39 percent during the quarter to $51.8million, finishing 16 percent over last year for the fiscal year.This reflects price increases taken to offset higher input costs,as well as trends toward more in-home meal preparation which oftenaccompanies economic downturns.

-- Snack sales grew 3 percent during the quarter to $27.2 million,finishing the year 11 percent over last year.

-- Growth from new products such as Cocoa Roast Almonds, Sea Salt& Pepper Cashews and Breakfast on the Go was particularlyencouraging; -- Emerald's share of the snack nut market during the52-weeks ended September 6, 2008 was 6.1 percent as the core itemscontinued to gain distribution.

-- Cash flow from operations was $47.1 million compared to $3.8million last year.

-- A quarterly dividend of $0.045 per share was paid on July 30,2008 to shareholders of record as of July 21, 2008.

-- The Pop Secret microwave popcorn brand was acquired from GeneralMills for $190 million on September 15, 2008. The purchase wasfunded through a combination of cash on hand and borrowings from anew $250 million unsecured credit facility.


Source: flex-news-food.com


Publication date: 9/26/2008