Dean Foods Q3 Profit Surges; Updates FY13 Outlook - Quick Facts

(RTTNews) - Dean Foods Co. (DF) reported that its third-quarter 2013 net income attributable to the company significantly increased to $415.12 million or $4.35 per share, from $36.44 million or $0.39 per share in the same quarter last year. Adjusted net income attributable to the company totaled $11.09 million, compared to Pro forma adjusted income of $12.71 million in the prior year.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.13 per share for the quarter. Analysts' estimates typically exclude special items.

Earnings from continuing operations attributable to the company were $4.35 per share, compared to a loss of $0.02 per share third quarter 2012. On an adjusted basis, earnings from continuing operations were $0.12 per share, compared to adjusted earnings of $0.14 per share last year.

Net sales for the third quarter of 2013 totaled $2.20 billion, compared to $2.24 billion in the prior year quarter. Eleven analysts estimated revenues of $2.19 billion for the quarter.

The Company said it continues to make solid progress against its target of $120 million of cost savings in 2013, including the planned closure of eight to twelve (10-15%) of its manufacturing facilities by mid-2014.

The company also announced that the Board of Directors has increased the Company's available share repurchase authority to $300 million, providing an additional tool for shareholder value creation.

The firm also announced that it has initiated a cash tender offer for up to $400 million aggregate principal amount of its 93/4% 2018 and 7% 2016 bonds, with preference given to the 2018 bonds. The tender offer will be funded with existing cash on hand, as well as borrowings under the Company's senior secured credit facility. The company expects the transaction to close before the end of the year and to result in reduced interest expense going forward.

The company expects fourth quarter adjusted earnings per share of $0.17- $0.23 per share, resulting in full year 2013 adjusted earnings per share of between $0.85 and $0.91. Analysts expect the company to report earnings of $0.28 per share for the fourth-quarter, and $0.98 per share for fiscal 2013.

The company said it now expect full year 2013 adjusted EBITDA to be between $391 million and $400 million and adjusted free cash flow of approximately $100 million.

The company said in August that it earlier expected adjusted earnings for the fiscal year 2013 in a range of $0.47 to $0.53 per share on a pre-split basis. This roughly translated to adjusted earnings of $0.94 to $1.06 on a post-split basis.