Dean Foods Q1 Profit Beats Estimates; On Track To Deliver FY18 Expectations

(RTTNews) - Dean Foods Company (DF) reported first-quarter adjusted earnings per share of $0.14 compared to $0.13, prior year. On average, 13 analysts polled by Thomson Reuters expected the company to report profit per share of $0.10 for the quarter. Analysts' estimates typically exclude special items. Adjusted net income increased to $13 million from $12 million, prior year. On a GAAP basis, the company reported break-even per share compared to a loss of $0.11, last year.

First-quarter net sales declined year-over-year to $1.98 billion from $2.00 billion. Analysts expected revenue of $1.85 billion for the quarter. The company said its volume performance and mix in-line with expectations, for the quarter. General and administrative expenses were $75.52 million, a decline from $98.66 million, prior year.

Free cash flow provided by continuing operations was $22 million for the three months ended March 31, 2018, a $3 million increase as compared to the prior year period. Total outstanding debt at March 31, 2018, net of $28 million cash on hand, was approximately $884 million.

Dean Foods CEO, Ralph Scozzafava said, "The traction that we're getting across our enterprise-wide cost productivity plan is ramping up. We will continue to build upon this momentum to deliver on our target of $150 million in incremental run-rate savings by 2020. As we move forward in 2018, we are focused on executing our commercial agenda and cost productivity initiatives that will drive our strategic plan. We have been successful in driving early results in the administrative area against our enterprise-wide productivity plan with more work to be done. We will now begin the next phase by right-sizing our network to better match volume. We are also implementing plans to mitigate expected headwinds in non-dairy input costs while executing our strategic initiatives."

For fiscal 2018, the company reaffirmed its adjusted earnings per share guidance range of $0.55 to $0.80. The full-year free cash flow and capital expenditure guidance remains unchanged.