Post Holdings Provides Financial Update on Michael Foods Klingerstown Plant Fire and Water Boil Order at Lenox Plant
June 15 2018 - 8:00AM
Post Holdings, Inc. (NYSE:POST), a consumer packaged goods holding
company, previously reported a fire took place at its Michael Foods
precooked egg facility in Klingerstown, PA, and, unrelated, a water
boil order was issued by the municipal water association servicing
its Michael Foods Lenox, IA precooked egg facility.
The cause of the fire at Klingerstown continues to be
investigated with repairs to the roof and electrical infrastructure
currently in process. The plant continues to operate, with
additional production anticipated to return on June 19. Remaining
oven production is expected to be brought back into service by
mid-July, with the plant returning to full production then.
The Lenox facility restarted partial operations on June 7, with
full production levels reached on June 11.
While underlying egg product demand remains strong, this
disruption has resulted in modest service level issues and lost
sales revenue. Post management estimates the financial impact of
both incidents, inclusive of expenses and margin on lost sales
revenue, to be between $5-$7 million to Adjusted EBITDA (non-GAAP),
which will be reflected in Post’s financial results in its third
quarter of fiscal 2018. The financial impact of each incident is
expected to be insured to the extent each incident exceeds $2.5
million, with recovery occurring in the fourth quarter of fiscal
2018 or in early fiscal 2019.
Use of Non-GAAP Measure
Post uses the non-GAAP measure Adjusted EBITDA in this release
to supplement its financial measures prepared in accordance with
U.S. generally accepted accounting principles (GAAP). Adjusted
EBITDA is not prepared in accordance with GAAP, as it excludes
certain items, and may not be comparable to similarly-titled
measures of other companies.
Post management uses certain non-GAAP measures, including
Adjusted EBITDA, as key metrics in the evaluation of underlying
Company and segment performance, in making financial, operating and
planning decisions, and, in part, in the determination of cash
bonuses for its executive officers and employees. Post management
believes the use of non-GAAP measures, including Adjusted EBITDA,
provides increased transparency and assists investors in
understanding the underlying operating performance of Post and its
segments and in the analysis of ongoing operating trends.
Forward Looking Statements
Forward-looking statements, within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, are made throughout this press release. These
forward-looking statements are sometimes identified from the use of
forward-looking words such as “believe,” “should,” “could,”
“potential,” “continue,” “expect,” “project,” “estimate,”
“predict,” “anticipate,” “aim,” “intend,” “plan,” “forecast,”
“target,” “is likely,” “will,” “can,” “may,” or “would” or the
negative of these terms or similar expressions elsewhere in this
release. All forward-looking statements are subject to a number of
important factors, risks, uncertainties and assumptions that could
cause actual results to differ materially from those described in
any forward-looking statements. These factors and risks include,
but are not limited to, the amount and timing of the financial
impact, the amount and timing of any insurance recovery, the timing
to resume production in Klingerstown and other financial,
operational and legal risks and uncertainties detailed from time to
time in Post’s cautionary statements contained in its filings with
the Securities and Exchange Commission. These forward-looking
statements represent Post’s judgment as of the date of this press
release. Post disclaims, however, any intent or obligation to
update these forward-looking statements.
About Post Holdings, Inc.
Post Holdings, Inc., headquartered in St. Louis, Missouri, is a
consumer packaged goods holding company operating in the
center-of-the-store, refrigerated, foodservice, food ingredient,
active nutrition and private brand food categories. Through its
Post Consumer Brands business, Post is a leader in the North
American ready-to-eat cereal category offering a broad portfolio
including recognized brands such as Honey Bunches of Oats®,
Pebbles™, Great Grains® and Malt-O-Meal® bag cereal. Post also is a
leader in the United Kingdom ready-to-eat cereal category with the
iconic Weetabix® brand. As leader in refrigerated foods, Post
brings innovative, value-added egg and refrigerated potato products
to the foodservice channel and the retail refrigerated side dish
category, offering side dishes and egg, sausage and cheese products
through the Bob Evans®, All Whites®, Better’n Eggs®, Simply
Potatoes® and Crystal Farms® brands. Post’s Active Nutrition
platform aids consumers in adopting healthier lifestyles through
brands such as Premier Protein®, PowerBar® and Dymatize®. Post’s
Private Brands business manufactures private brand nut butter,
healthy snacks and pasta. For more information, visit
www.postholdings.com.
Contact:
Media RelationsLisa Hanlylisa.hanly@postholdings.com(314)
665-3180
Investor RelationsJennifer
Meyerjennifer.meyer@postholdings.com(314) 644-7665
Post (NYSE:POST)
Historical Stock Chart
From Mar 2024 to Apr 2024
Post (NYSE:POST)
Historical Stock Chart
From Apr 2023 to Apr 2024