MGP Ingredients, Inc. (Nasdaq: MGPI), a
leading provider of branded and distilled spirits and food
ingredient solutions, today reported results for the second quarter
ended June 30, 2024.
“This quarter, our MGP team delivered strong results driven
largely by the continued momentum in our premium plus branded
spirits portfolio and solid brown goods sales. Our increasing
investments behind our key brands and exciting new product
innovation continue to yield positive results, helping us expand
our distribution footprint and accelerate our transition into a
premier branded spirits company,” said David Bratcher, CEO and
president of MGP Ingredients.
He added, “We remain agile in a dynamic environment for the
spirits industry and given our strong first half performance, we
are reiterating our full year sales, adjusted EBITDA, and EPS
guidance.”
2024 second quarter
financial highlights compared to 2023
second quarter:
- Due primarily to
the Atchison distillery closure, sales decreased 9% to $190.8
million. Excluding the impact of the Atchison distillery,
consolidated sales increased by 7% during the quarter.
- Net income was largely flat at $32.0
million. Adjusted net income increased 15% to $38.0 million. Net
income margin increased 150 basis points to 16.8%. Adjusted net
income margin increased by 410 basis points to 19.9%.
- Adjusted EBITDA increased 7% to $57.5
million. Adjusted EBITDA margin increased by 450 basis points to
30.2%, our highest quarterly adjusted EBITDA margin.
- Basic earnings per common share (“EPS”)
decreased to $1.43 per share from $1.44 per share. Adjusted basic
EPS increased 15% to $1.71 per share from $1.49 per share.
- Capital expenditures were $22.6 million
year-to-date. We continue to expect approximately $85 million of
capital expenditures for the full year, which includes the
construction of additional warehouses to support our future
growth.
- Net debt leverage ratio stands at
approximately 1.4x as of June 30, 2024.
- Reiterate full year 2024 guidance of
sales in the range of $742 million to $756 million, adjusted EBITDA
in the range of $218 to $222 million, and adjusted basic EPS in the
range of $6.12 to $6.23.
Consolidated ResultsExcluding the impact of the
Atchison distillery, MGP consolidated sales increased by 7% in the
second quarter compared to the prior year quarter driven by higher
Distilling Solutions and Branded Spirits segment sales.
Consolidated gross profit increased 9% to $83.2 million,
representing 43.6% of sales. Excluding the impact of the Atchison
distillery, second quarter consolidated gross margin improved
approximately 80 basis points from the prior year period reflecting
strong margin expansion in the Branded Spirits segment. Second
quarter operating income and diluted EPS decreased 2% and $0.01 to
$43.4 million and $1.43 per share, respectively. On an adjusted
basis, operating income increased 12% to $51.3 million and diluted
EPS increased by 15% to $1.71 per share.
Distilling SolutionsFor the second quarter, as
expected, sales for the Distilling Solutions segment decreased 20%
to $93.4 million due to the Atchison distillery closure. Excluding
the impact of the Atchison distillery, segment sales increased 9%
to $93.3 million, including higher brown goods sales. Gross profit,
as reported, increased to $42.5 million, or 45.5% of segment sales,
compared to $38.7 million, or 33.1% of segment sales, in the second
quarter 2023.
Branded SpiritsBranded Spirits segment second
quarter sales increased 11% to $64.0 million, driven primarily by
the ongoing momentum in our premium plus portfolio. Sales of our
premium plus price tier spirits brands grew 29% during the quarter
reflecting our focused initiatives across the American whiskey and
tequila categories. Branded Spirits gross profit increased by 29%
to record-high $33.6 million, or 52.5% of segment sales, compared
to $26.0 million, or 45.1% of segment sales, in the prior year
period.
Ingredient SolutionsIngredient Solutions
segment sales decreased 3% to $33.4 million during the second
quarter. Gross profit decreased to $7.1 million, or 21.4% of
segment sales, compared to $11.6 million, or 33.6% of segment
sales, in the second quarter 2023. Excluding the impact of the
Atchison distillery and the associated intercompany credit for the
waste starch slurry by-product, gross profit decreased to $7.1
million compared to $10.0 million in the second quarter 2023.
Additional HighlightsAdvertising and promotion
expenses for the second quarter 2024 increased $3.0 million, or
35%, to $11.7 million as compared to the second quarter 2023.
Corporate selling, general, and administrative (“SG&A”)
expenses for the second quarter 2024 decreased $0.8 million, or 3%,
to $22.8 million as compared to the second quarter 2023.
During the second quarter 2024, the change in fair value of the
contingent consideration related to the Penelope acquisition
totaled $5.4 million. The corporate effective tax rate for the
second quarter 2024 was 24.0%, compared with 25.3% from the year
ago period.
2024 Financial Outlook MGP is
confirming the following consolidated guidance for fiscal 2024:
- Sales are projected to be in the range of $742 million to $756
million, following the closure of the Atchison distillery in
December 2023.
- Adjusted EBITDA is expected to be in the range of $218 million
to $222 million, inclusive of the add back of share-based
compensation expense.
- Adjusted basic earnings per common share are forecasted to be
in the $6.12 to $6.23 range, with basic weighted average shares
outstanding expected to be approximately 22.3 million at year
end.
Conference Call and Webcast
InformationMGP Ingredients will host a conference call for
analysts and institutional investors today, August 1, 2024, at 10
a.m. ET to discuss these results and current business trends.
Investors can dial 844-308-6398 or 412-717-9605 (international) to
listen to the live call. A live webcast will be available at “News
and Events” section of the company’s Investor Relations section at
ir.mgpingredients.com/news-events. A replay of the conference call
will be available on the company's website.
About MGP Ingredients, Inc.MGP Ingredients,
Inc. (Nasdaq: MGPI) is a leading producer of premium branded and
distilled spirits, as well as food ingredient solutions. Since
1941, we have combined our expertise and energy aimed at
formulating excellence, bringing product ideas to life
collaboratively with our customers.
As one of the largest distillers in the U.S., MGP’s offerings
include bourbon and rye whiskeys, gins, and vodkas, which are
created at the intersection of science and imagination, for
customers of all sizes, from crafts to multinational brands. With
distilleries in Kentucky and Indiana, and bottling operations in
Missouri, Ohio, and Northern Ireland, MGP has the infrastructure
and expertise to create on any scale.
MGP’s branded spirits portfolio covers a wide spectrum of brands
in every segment, including iconic brands from Luxco, which was
founded in 1958 by the Lux Family. Luxco is a leading producer,
supplier, importer, and bottler of beverage alcohol products. Our
branded spirits mission is to meet the needs and exceed the
expectations of consumers, associates, and business partners.
Luxco’s award-winning spirits portfolio includes well-known brands
from four distilleries: Bardstown, Kentucky-based Lux Row
Distillers, home of Ezra Brooks, Rebel, Blood Oath, David
Nicholson, and Daviess County; Lebanon, Kentucky-based Limestone
Branch Distillery, maker of Yellowstone Kentucky Straight Bourbon
Whiskey, Minor Case Straight Rye Whiskey, and Bowling & Burch
Gin; Jalisco, Mexico-based Destiladora González Lux, producer of
100% agave tequilas, El Mayor, Exotico, and Dos Primos; and the
historic Ross & Squibb Distillery in Lawrenceburg, Indiana,
where Penelope Bourbon, Remus Straight Bourbon Whiskey, and
Rossville Union Straight Rye Whiskey are produced. The innovative
and high-quality brand portfolio also includes Everclear Grain
Alcohol, Pearl Vodka, Green Hat Gin, Saint Brendan’s Irish Cream,
The Quiet Man Irish Whiskey, and other well-recognized brands.
In addition, our Ingredient Solutions segment offers specialty
proteins and starches that help customers harness the power of
plants and provide a host of functional, nutritional, and sensory
benefits for a wide range of food products.
The transformation of American grain into something more is in
the soul of our people, products, and history. We’re devoted to
unlocking the creative potential of this extraordinary resource.
For more information, visit mgpingredients.com.
Cautionary Note Regarding Forward-Looking
Statements This press release may contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, including without limitation statements about
optimism regarding investments by MGP Ingredients, Inc. (the
“Company” or “MGP”) and their ability to yield positive results,
expand its distribution footprint, and transition to a premier
branded spirits company and the Company’s 2024 outlook, including
its expectations for sales, adjusted EBITDA, adjusted basic
earnings per common share (“EPS”), and shares outstanding. Forward
looking statements are usually identified by or are associated with
words such as “intend,” “plan,” “believe,” “estimate,” “expect,”
“anticipate,” “project,” “forecast,” “hopeful,” “should,” “may,”
“will,” “could,” “encouraged,” “opportunities,” “potential,” and
similar terminology. These forward-looking statements reflect
management’s current beliefs and estimates of future economic
circumstances, industry conditions, Company performance, Company
financial results, and Company financial condition and are not
guarantees of future performance.
All forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially.
Factors that could cause actual results to differ materially from
our expectations include without limitation any effects of changes
in consumer preferences and purchases and our ability to anticipate
or react to those changes; our ability to compete effectively;
damage to our reputation or that of any of our key customers or
their brands; failure to introduce successful new brands and
products or have effective marketing or advertising; changes in
public opinion about alcohol or our products; our reliance on our
distributors to distribute our branded spirits; our reliance on
fewer, more profitable customer relationships; interruptions in our
operations or a catastrophic event at our facilities; decisions
concerning the quantity of maturing stock of our aged distillate;
warehouse expansion issues; our reliance on a limited number of
suppliers; our reliance on a limited number of suppliers; work
disruptions or stoppages; climate change and measures to address
climate change; our closure of our Atchison, Kansas distillery;
regulation and taxation and compliance with existing or future laws
and regulations; tariffs, trade relations, and trade policies;
excise taxes, incentives and customs duties; our ability to protect
our intellectual property rights and defend against alleged
intellectual property rights infringement claims; failure to secure
and maintain listings in control states; labeling or warning
requirements or limitations on the availability of our products;
product recalls or other product liability claims; anti-corruption
laws, trade sanctions and restrictions; class action or other
litigation; higher costs or the unavailability and cost of raw
materials, product ingredients, energy resources, or labor; failure
of our information technology systems, networks, processes,
associated sites, or service providers; acquisitions and potential
future acquisitions; interest rate increases; reliance on key
personnel; commercial, political, and financial risks; covenants
and other provisions in our credit arrangements; pandemics or other
health crises; ability to pay any dividends; limited rights of
common stockholders and anti-takeover provisions in our governing
documents; the impact of issuing shares of our common stock; and
the effectiveness or execution of our strategic plan. For further
information on these risks and uncertainties and other factors that
could affect the Company’s business, see the “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” sections of the Company’s Annual Report on
Form 10-K for the year ended December 31, 2023 and its Quarterly
Reports on Form 10-Q for the quarter ended March 31 and June 30,
2024, as well as the Company’s other SEC filings. The Company
undertakes no obligation to update any forward-looking statements
or information in this press release, except as required by
law.
Non-GAAP Financial Measures In addition to
reporting financial information in accordance with U.S. GAAP, the
Company provides certain non-GAAP financial measures that are not
in accordance with, or alternatives for, GAAP. In addition to the
comparable GAAP measures, the Company has disclosed measures
excluding the impact of the Atchison disclosure, adjusted operating
income, adjusted income before income taxes, adjusted net income,
adjusted net income margin, adjusted MGP earnings, adjusted EBITDA,
adjusted EBITDA margin, net debt, net debt leverage ratio, and
adjusted basic and diluted EPS, as well as guidance for adjusted
EBITDA and adjusted basic EPS. The presentation of these non-GAAP
financial measures should be reviewed in conjunction with operating
income, income before income taxes, net income, net income used in
earnings per common share calculation, debt, and basic and diluted
EPS computed in accordance with U.S. GAAP and should not be
considered a substitute for the GAAP measure. We believe that the
non-GAAP measures provide useful information to investors regarding
the Company's performance and overall results of operations. In
addition, management uses these non-GAAP measures in conjunction
with GAAP measures when evaluating the Company’s operating results
compared to prior periods on a consistent basis, assessing
financial trends, and for forecasting purposes. Non-GAAP financial
measures may not provide information that is directly comparable to
other companies, even if similar terms are used to identify such
measures. The attached schedules provide a full reconciliation of
historical non-GAAP financial measures to the most directly
comparable U.S. GAAP financial measure. Full year 2024 guidance
measures of adjusted EBITDA and adjusted basic EPS are provided on
a non-GAAP basis without a reconciliation to the most directly
comparable GAAP measures because the Company is unable to predict
with a reasonable degree of certainty certain items contained in
the GAAP measures without unreasonable efforts. Such items include
without limitation, acquisition related expenses, restructuring and
related expenses, and other items not reflective of the Company's
ongoing operations.
For More Information
Investors:Amit
Sharmaamit.sharma@mgpingredients.com
Media:Greg
Manisgreg.manis@mgpingredients.com 913-360-5440
MGP INGREDIENTS, INC.OPERATING INCOME
ROLLFORWARD(Dollars in thousands)
|
Operating income, quarter versus quarter |
|
Operating Income |
|
Change |
|
|
Operating income for the quarter ended June 30, 2023 |
|
$ |
44,143 |
|
|
|
|
| Decrease in gross profit -
Ingredient Solutions segment |
|
|
(4,488 |
) |
|
(10)% |
|
|
Increase in gross profit - Branded Spirits segment |
|
|
7,630 |
|
|
17 |
|
pp(a) |
| Increase in gross profit -
Distilling Solutions segment |
|
|
3,795 |
|
|
9 |
|
pp |
| Increase in advertising and
promotion expenses |
|
|
(3,026 |
) |
|
(7 |
) |
pp |
| Decrease in SG&A
expenses |
|
|
754 |
|
|
2 |
|
pp |
| Impairment of long-lived
assets and other |
|
|
(21 |
) |
|
(1 |
) |
pp |
| Change in fair value of
contingent consideration |
|
|
(5,400 |
) |
|
(12 |
) |
pp |
| Operating income for
the quarter ended June 30, 2024 |
|
$ |
43,387 |
|
|
(2)% |
|
| |
|
|
|
|
|
|
|
|
Operating income, year to date versus year to
date |
|
Operating Income |
|
Change |
|
|
Operating income for the year to date ended June 30, 2023 |
|
$ |
85,702 |
|
|
|
|
| Decrease in gross profit -
Ingredient Solutions segment |
|
|
(10,511 |
) |
|
(12)% |
|
|
Increase in gross profit - Branded Spirits segment |
|
|
5,569 |
|
|
7 |
|
pp(a) |
| Increase in gross profit -
Distilling Solutions segment |
|
|
4,850 |
|
|
6 |
|
pp |
| Increase in advertising and
promotion expenses |
|
|
(3,976 |
) |
|
(5 |
) |
pp |
| Decrease in SG&A
expenses |
|
|
307 |
|
|
— |
|
pp |
| Impairment of long-lived
assets and other |
|
|
(137 |
) |
|
— |
|
pp |
| Change in fair value of
contingent consideration |
|
|
(9,500 |
) |
|
(11 |
) |
pp |
| Operating income for
the year to date ended June 30, 2024 |
|
$ |
72,304 |
|
|
(16)% |
|
| |
|
|
|
|
|
|
|
(a) Percentage points (“pp”).
MGP INGREDIENTS, INC.EARNINGS PER
COMMON SHARE (“EPS”) ROLLFORWARD
|
Change in EPS, quarter versus quarter |
|
EPS |
|
Change |
|
|
Basic and Diluted EPS for the quarter ended June 30, 2023 |
|
$ |
1.44 |
|
|
|
|
| Change in operating income
(b) |
|
|
(0.03 |
) |
|
(2)% |
|
|
Change in interest expense, net (b) |
|
|
(0.03 |
) |
|
(2 |
) |
pp(a) |
| Change in other income
(expense), net(b) |
|
|
0.04 |
|
|
3 |
|
pp |
| Change in effective tax
rate |
|
|
0.02 |
|
|
1 |
|
pp |
| Change in weighted average
shares outstanding |
|
|
(0.01 |
) |
|
(1 |
) |
pp |
| Basic and Diluted EPS
for the quarter ended June 30, 2024 |
|
$ |
1.43 |
|
|
(1)% |
|
| |
|
|
|
|
|
|
|
|
Change in EPS, year to date versus year to
date |
|
EPS |
|
Change |
|
|
Basic EPS for the year to date ended June 30, 2023 |
|
$ |
2.84 |
|
|
|
|
| Change in operating
income(b) |
|
|
(0.46 |
) |
|
(16)% |
|
|
Change in interest expense, net (b) |
|
|
(0.07 |
) |
|
(2 |
) |
pp(a) |
| Change in other income
(expense), net(b) |
|
|
0.03 |
|
|
1 |
|
pp |
| Change in effective tax
rate |
|
|
0.03 |
|
|
1 |
|
pp |
| Change in weighted average
shares outstanding |
|
|
(0.01 |
) |
|
— |
|
pp |
| Basic and Diluted EPS
for the year to date ended June 30,
2024 |
|
$ |
2.36 |
|
|
(17)% |
|
| |
|
|
|
|
|
|
|
(a) Percentage points (“pp”).(b) Items are net of tax based on
the effective tax rate for the base year (2023).
MGP INGREDIENTS, INC.SALES BY OPERATING
SEGMENT(Dollars in thousands)
| |
DISTILLING SOLUTIONS SALES |
| |
Quarter Ended June 30, |
|
Quarter versus Quarter Sales Change
Increase/(Decrease) |
| |
|
2024 |
|
|
2023 |
|
$ Change |
|
% Change |
|
Brown goods |
$ |
75,443 |
|
$ |
73,124 |
|
$ |
2,319 |
|
|
3 |
% |
| Warehouse services |
|
8,392 |
|
|
6,747 |
|
|
1,645 |
|
|
24 |
|
| White goods and other
co-products |
|
9,553 |
|
|
36,994 |
|
|
(27,441 |
) |
|
(74 |
) |
|
Total Distilling Solutions |
$ |
93,388 |
|
$ |
116,865 |
|
$ |
(23,477 |
) |
|
(20)% |
| |
|
|
|
|
|
|
|
| |
BRANDED SPIRITS SALES |
| |
Quarter Ended June 30, |
|
Quarter versus Quarter Sales Change
Increase/(Decrease) |
| |
|
2024 |
|
|
2023 |
|
$ Change |
|
% Change |
|
Premium plus |
$ |
30,707 |
|
$ |
23,763 |
|
$ |
6,944 |
|
|
29 |
% |
| Mid |
|
17,061 |
|
|
17,090 |
|
|
(29 |
) |
|
— |
|
| Value |
|
11,655 |
|
|
11,578 |
|
|
77 |
|
|
1 |
|
| Other |
|
4,618 |
|
|
5,185 |
|
|
(567 |
) |
|
(11 |
) |
|
Total Branded Spirits |
$ |
64,041 |
|
$ |
57,616 |
|
$ |
6,425 |
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
INGREDIENT SOLUTIONS SALES |
| |
Quarter Ended June 30, |
|
Quarter versus Quarter Sales Change Increase /
(Decrease) |
| |
|
2024 |
|
|
2023 |
|
$ Change |
|
% Change |
|
Specialty wheat starches |
$ |
19,203 |
|
$ |
17,095 |
|
$ |
2,108 |
|
|
12 |
% |
| Specialty wheat proteins |
|
11,200 |
|
|
12,588 |
|
|
(1,388 |
) |
|
(11 |
) |
| Commodity wheat starches |
|
2,973 |
|
|
4,837 |
|
|
(1,864 |
) |
|
(39 |
) |
| Commodity wheat proteins |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Total Ingredient Solutions |
$ |
33,376 |
|
$ |
34,520 |
|
$ |
(1,144 |
) |
|
(3)% |
| |
|
|
|
|
|
|
|
MGP INGREDIENTS, INC.SALES BY OPERATING
SEGMENT(Dollars in thousands)
| |
DISTILLING SOLUTIONS SALES |
| |
Year to Date Ended June 30, |
|
Year to Date versus Year to Date Sales Change
Increase/(Decrease) |
| |
|
2024 |
|
|
2023 |
|
$ Change |
|
% Change |
|
Brown goods |
$ |
141,774 |
|
$ |
141,448 |
|
$ |
326 |
|
|
— |
% |
| Warehouse services |
|
16,348 |
|
|
13,605 |
|
|
2,743 |
|
|
20 |
|
| White goods and other
co-products |
|
20,118 |
|
|
75,035 |
|
|
(54,917 |
) |
|
(73 |
) |
|
Total Distilling Solutions |
$ |
178,240 |
|
$ |
230,088 |
|
$ |
(51,848 |
) |
|
(23)% |
| |
|
|
|
|
|
|
|
| |
BRANDED SPIRITS SALES |
| |
Year to Date Ended June 30, |
|
Year to Date versus Year to Date Sales Change
Increase/(Decrease) |
| |
|
2024 |
|
|
2023 |
|
$ Change |
|
% Change |
|
Premium plus |
$ |
51,613 |
|
$ |
42,509 |
|
$ |
9,104 |
|
|
21 |
% |
| Mid |
|
31,822 |
|
|
37,925 |
|
|
(6,103 |
) |
|
(16 |
) |
| Value |
|
21,664 |
|
|
24,999 |
|
|
(3,335 |
) |
|
(13 |
) |
| Other |
|
9,088 |
|
|
9,066 |
|
|
22 |
|
|
— |
|
|
Total Branded Spirits |
$ |
114,187 |
|
$ |
114,499 |
|
$ |
(312 |
) |
|
— |
% |
| |
|
|
|
|
|
|
|
| |
INGREDIENT SOLUTIONS SALES |
| |
Year to Date Ended June 30, |
|
Year to Date versus Year to Date Sales Change
Increase/(Decrease) |
| |
|
2024 |
|
|
2023 |
|
$ Change |
|
% Change |
|
Specialty wheat starches |
$ |
41,474 |
|
$ |
31,781 |
|
$ |
9,693 |
|
|
30 |
% |
| Specialty wheat proteins |
|
21,195 |
|
|
24,478 |
|
|
(3,283 |
) |
|
(13 |
) |
| Commodity wheat starches |
|
6,235 |
|
|
8,644 |
|
|
(2,409 |
) |
|
(28 |
) |
| Commodity wheat proteins |
|
37 |
|
|
521 |
|
|
(484 |
) |
|
(93 |
) |
|
Total Ingredient Solutions |
$ |
68,941 |
|
$ |
65,424 |
|
$ |
3,517 |
|
|
5 |
% |
| |
|
|
|
|
|
|
|
MGP INGREDIENTS, INC.CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)(Dollars in
thousands, except share and per share amounts)
| |
|
Quarter Ended June 30, |
|
Year to Date Ended June 30, |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Sales |
|
$ |
190,805 |
|
|
$ |
209,001 |
|
|
$ |
361,368 |
|
|
$ |
410,011 |
|
| Cost of sales |
|
|
107,573 |
|
|
|
132,706 |
|
|
|
215,341 |
|
|
|
263,892 |
|
|
Gross profit |
|
|
83,232 |
|
|
|
76,295 |
|
|
|
146,027 |
|
|
|
146,119 |
|
| |
|
|
|
|
|
|
|
|
| Advertising and promotion
expenses |
|
|
11,665 |
|
|
|
8,639 |
|
|
|
20,348 |
|
|
|
16,372 |
|
| Selling, general, and
administrative expenses |
|
|
22,759 |
|
|
|
23,513 |
|
|
|
43,738 |
|
|
|
44,045 |
|
| Impairment of long-lived
assets and other |
|
|
21 |
|
|
|
— |
|
|
|
137 |
|
|
|
— |
|
| Change in fair value of
contingent consideration |
|
|
5,400 |
|
|
|
— |
|
|
|
9,500 |
|
|
|
— |
|
|
Operating income |
|
|
43,387 |
|
|
|
44,143 |
|
|
|
72,304 |
|
|
|
85,702 |
|
| |
|
|
|
|
|
|
|
|
| Interest expense, net |
|
|
(2,205 |
) |
|
|
(1,282 |
) |
|
|
(4,224 |
) |
|
|
(2,277 |
) |
| Other income (expense),
net |
|
|
943 |
|
|
|
(93 |
) |
|
|
891 |
|
|
|
30 |
|
|
Income before income taxes |
|
|
42,125 |
|
|
|
42,768 |
|
|
|
68,971 |
|
|
|
83,455 |
|
| |
|
|
|
|
|
|
|
|
| Income tax expense |
|
|
10,108 |
|
|
|
10,804 |
|
|
|
16,370 |
|
|
|
20,459 |
|
|
Net income |
|
|
32,017 |
|
|
|
31,964 |
|
|
|
52,601 |
|
|
|
62,996 |
|
| |
|
|
|
|
|
|
|
|
| Net loss attributable to
noncontrolling interest |
|
|
68 |
|
|
|
162 |
|
|
|
119 |
|
|
|
201 |
|
|
Net income attributable to MGP Ingredients,
Inc. |
|
|
32,085 |
|
|
|
32,126 |
|
|
|
52,720 |
|
|
|
63,197 |
|
| |
|
|
|
|
|
|
|
|
| Income attributable to
participating securities |
|
|
(347 |
) |
|
|
(324 |
) |
|
|
(572 |
) |
|
|
(633 |
) |
|
Net income used in earnings per common share
calculation |
|
$ |
31,738 |
|
|
$ |
31,802 |
|
|
$ |
52,148 |
|
|
$ |
62,564 |
|
| |
|
|
|
|
|
|
|
|
| Weighted average
common shares |
|
|
|
|
|
|
|
|
|
Basic |
|
|
22,119,227 |
|
|
|
22,062,142 |
|
|
|
22,130,752 |
|
|
|
22,051,244 |
|
|
Diluted |
|
|
22,119,227 |
|
|
|
22,139,663 |
|
|
|
22,130,752 |
|
|
|
22,106,113 |
|
| |
|
|
|
|
|
|
|
|
| Earnings per common
share |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.43 |
|
|
$ |
1.44 |
|
|
$ |
2.36 |
|
|
$ |
2.84 |
|
|
Diluted |
|
$ |
1.43 |
|
|
$ |
1.44 |
|
|
$ |
2.36 |
|
|
$ |
2.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MGP INGREDIENTS, INC.CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)(Dollars in
thousands)
| |
June 30, 2024 |
|
December 31, 2023 |
| ASSETS |
|
|
|
| Current Assets: |
|
|
|
|
Cash and cash equivalents |
$ |
21,011 |
|
|
$ |
18,388 |
|
|
Receivables, net |
|
159,019 |
|
|
|
144,286 |
|
|
Inventory |
|
358,567 |
|
|
|
346,853 |
|
|
Prepaid expenses |
|
4,795 |
|
|
|
3,580 |
|
|
Refundable income taxes |
|
3,008 |
|
|
|
1,190 |
|
|
Total current assets |
|
546,400 |
|
|
|
514,297 |
|
| |
|
|
|
| Property, plant, and
equipment |
|
512,170 |
|
|
|
489,646 |
|
| Less accumulated depreciation
and amortization |
|
(236,423 |
) |
|
|
(227,343 |
) |
|
Property, plant, and equipment, net |
|
275,747 |
|
|
|
262,303 |
|
| Operating lease right-of-use
assets, net |
|
10,609 |
|
|
|
13,975 |
|
| Investment in joint
ventures |
|
5,811 |
|
|
|
5,197 |
|
| Intangible assets, net |
|
270,079 |
|
|
|
271,706 |
|
| Goodwill |
|
321,544 |
|
|
|
321,544 |
|
| Other assets |
|
3,907 |
|
|
|
3,326 |
|
|
TOTAL ASSETS |
$ |
1,434,097 |
|
|
$ |
1,392,348 |
|
| |
|
|
|
| LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
| Current Liabilities: |
|
|
|
|
Current maturities of long-term debt |
$ |
6,400 |
|
|
$ |
6,400 |
|
|
Accounts payable |
|
56,056 |
|
|
|
73,594 |
|
|
Federal and state excise taxes payable |
|
4,492 |
|
|
|
2,251 |
|
|
Accrued expenses and other |
|
17,843 |
|
|
|
31,861 |
|
|
Total current liabilities |
|
84,791 |
|
|
|
114,106 |
|
| |
|
|
|
| Long-term debt, less current
maturities |
|
107,292 |
|
|
|
85,305 |
|
| Convertible senior notes |
|
195,704 |
|
|
|
195,544 |
|
| Long-term operating lease
liabilities |
|
8,567 |
|
|
|
11,292 |
|
| Contingent consideration |
|
78,700 |
|
|
|
69,200 |
|
| Other noncurrent
liabilities |
|
3,069 |
|
|
|
4,763 |
|
| Deferred income taxes |
|
63,061 |
|
|
|
63,071 |
|
|
Total liabilities |
|
541,184 |
|
|
|
543,281 |
|
| Total equity |
|
892,913 |
|
|
|
849,067 |
|
|
TOTAL LIABILITIES AND TOTAL EQUITY |
$ |
1,434,097 |
|
|
$ |
1,392,348 |
|
|
|
|
|
|
|
|
|
|
MGP INGREDIENTS, INC.CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)(Dollars in thousands)
| |
|
Year to Date Ended June 30, |
|
|
|
|
2024 |
|
|
|
2023 |
|
| Cash Flows from Operating
Activities |
|
|
|
|
|
Net income |
|
$ |
52,601 |
|
|
$ |
62,996 |
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
|
10,618 |
|
|
|
10,490 |
|
|
Share-based compensation |
|
|
1,981 |
|
|
|
3,637 |
|
|
Equity method investment loss (gain) |
|
|
(614 |
) |
|
|
579 |
|
|
Deferred income taxes, including change in valuation allowance |
|
|
(10 |
) |
|
|
2,129 |
|
|
Change in fair value of contingent consideration |
|
|
9,500 |
|
|
|
— |
|
|
Other, net |
|
|
270 |
|
|
|
206 |
|
|
Changes in operating assets and liabilities, net of effects of
acquisition: |
|
|
|
|
|
Receivables, net |
|
|
(14,766 |
) |
|
|
(35,833 |
) |
|
Inventory |
|
|
(11,754 |
) |
|
|
(41,020 |
) |
|
Prepaid expenses |
|
|
(1,217 |
) |
|
|
(2,076 |
) |
|
Income taxes payable (refundable) |
|
|
(1,818 |
) |
|
|
2,010 |
|
|
Accounts payable |
|
|
(6,345 |
) |
|
|
22,328 |
|
|
Accrued expenses and other |
|
|
(10,738 |
) |
|
|
(7,048 |
) |
|
Federal and state excise taxes payable |
|
|
2,241 |
|
|
|
1,319 |
|
|
Other, net |
|
|
(367 |
) |
|
|
439 |
|
|
Net cash provided by operating activities |
|
|
29,582 |
|
|
|
20,156 |
|
| |
|
|
|
|
| Cash Flows from Investing
Activities |
|
|
|
|
|
Additions to property, plant, and equipment |
|
|
(33,397 |
) |
|
|
(30,055 |
) |
|
Purchase of business, net of cash acquired |
|
|
— |
|
|
|
(104,398 |
) |
|
Other, net |
|
|
(260 |
) |
|
|
(1,136 |
) |
|
Net cash used in investing activities |
|
|
(33,657 |
) |
|
|
(135,589 |
) |
| |
|
|
|
|
| Cash Flows from Financing
Activities |
|
|
|
|
|
Payment of dividends and dividend equivalents |
|
|
(5,344 |
) |
|
|
(5,337 |
) |
|
Repurchase of Common Stock |
|
|
(9,735 |
) |
|
|
(801 |
) |
|
Proceeds from long-term debt |
|
|
50,000 |
|
|
|
105,000 |
|
|
Principal payments on long-term debt |
|
|
(28,200 |
) |
|
|
(9,400 |
) |
|
Net cash provided by financing activities |
|
|
6,721 |
|
|
|
89,462 |
|
| |
|
|
|
|
| Effect of exchange rate
changes on cash and cash equivalents |
|
|
(23 |
) |
|
|
41 |
|
| Increase (decrease) in cash
and cash equivalents |
|
|
2,623 |
|
|
|
(25,930 |
) |
| Cash and cash equivalents,
beginning of period |
|
|
18,388 |
|
|
|
47,889 |
|
| Cash and cash equivalents, end
of period |
|
$ |
21,011 |
|
|
$ |
21,959 |
|
| |
|
|
|
|
|
|
|
|
MGP INGREDIENTS, INC.RECONCILIATION OF
SELECTED GAAP MEASURES TO ADJUSTED NON-GAAP MEASURES
(UNAUDITED)(in thousands, except per share amounts)
| |
Quarter Ended June 30, 2024 |
| |
Operating Income |
|
Income before Income Taxes |
|
Net Income(b) |
|
MGP Earnings(a) |
|
Basic and Diluted EPS |
|
Reported GAAP Results |
$ |
43,387 |
|
$ |
42,125 |
|
$ |
32,017 |
|
$ |
31,738 |
|
$ |
1.43 |
| Adjusted to remove: |
|
|
|
|
|
|
|
|
|
|
Impairment of long-lived assets and other (c) |
|
21 |
|
|
21 |
|
|
16 |
|
|
16 |
|
|
— |
|
Fair value of contingent consideration(d) |
|
5,400 |
|
|
5,400 |
|
|
4,104 |
|
|
4,104 |
|
|
0.19 |
|
Business acquisition costs (e) |
|
15 |
|
|
15 |
|
|
11 |
|
|
11 |
|
|
— |
|
Executive transition costs (f) |
|
843 |
|
|
843 |
|
|
641 |
|
|
641 |
|
|
0.03 |
|
Unusual items costs (g) |
|
1,639 |
|
|
1,639 |
|
|
1,246 |
|
|
1,246 |
|
|
0.06 |
| Adjusted Non-GAAP
results |
$ |
51,305 |
|
$ |
50,043 |
|
$ |
38,035 |
|
$ |
37,756 |
|
$ |
1.71 |
| |
Quarter Ended June 30, 2023 |
| |
Operating Income |
|
Income before Income Taxes |
|
Net Income |
|
MGP Earnings(a) |
|
Basic and Diluted EPS |
|
Reported GAAP Results |
$ |
44,143 |
|
$ |
42,768 |
|
$ |
31,964 |
|
$ |
31,802 |
|
$ |
1.44 |
| Adjusted to remove: |
|
|
|
|
|
|
|
|
|
|
Business acquisition costs (e) |
|
1,500 |
|
|
1,500 |
|
|
1,125 |
|
|
1,125 |
|
|
0.05 |
| Adjusted Non-GAAP
results |
$ |
45,643 |
|
$ |
44,268 |
|
$ |
33,089 |
|
$ |
32,927 |
|
$ |
1.49 |
| |
Year to Date Ended June 30, 2024 |
| |
|
Operating Income |
|
Income before Income Taxes |
|
Net Income(b) |
|
MGP Earnings(a) |
|
Basic and Diluted EPS |
|
Reported GAAP Results |
|
$ |
72,304 |
|
$ |
68,971 |
|
$ |
52,601 |
|
$ |
52,148 |
|
$ |
2.36 |
| Adjusted to remove: |
|
|
|
|
|
|
|
|
|
|
|
Impairment of long-lived assets and other (c) |
|
|
137 |
|
|
137 |
|
|
105 |
|
|
105 |
|
|
— |
|
Fair value of contingent consideration(d) |
|
|
9,500 |
|
|
9,500 |
|
|
7,249 |
|
|
7,249 |
|
|
0.33 |
|
Business acquisition costs (e) |
|
|
86 |
|
|
86 |
|
|
66 |
|
|
66 |
|
|
— |
|
Executive transition costs (f) |
|
|
1,218 |
|
|
1,218 |
|
|
929 |
|
|
929 |
|
|
0.04 |
|
Unusual items costs (g) |
|
|
1,639 |
|
|
1,639 |
|
|
1,251 |
|
|
1,251 |
|
|
0.06 |
| Adjusted Non-GAAP
results |
|
$ |
84,884 |
|
$ |
81,551 |
|
$ |
62,201 |
|
$ |
61,748 |
|
$ |
2.79 |
| |
Year to Date Ended June 30, 2023 |
| |
Operating Income |
|
Income before Income Taxes |
|
Net Income |
|
MGP Earnings(a) |
|
Basic EPS |
|
Diluted EPS |
|
Reported GAAP Results |
$ |
85,702 |
|
$ |
83,455 |
|
$ |
62,996 |
|
$ |
62,564 |
|
$ |
2.84 |
|
|
2.83 |
| Adjusted to remove: |
|
|
|
|
|
|
|
|
|
|
|
|
Business acquisition costs (e) |
|
1,500 |
|
|
1,500 |
|
|
1,125 |
|
|
1,125 |
|
|
0.05 |
|
|
0.05 |
| Adjusted Non-GAAP
results |
$ |
87,202 |
|
$ |
84,955 |
|
$ |
64,121 |
|
$ |
63,689 |
|
$ |
2.89 |
|
$ |
2.88 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MGP INGREDIENTS, INC.Description of
Non-GAAP items
|
(a) |
MGP Earnings is defined as "Net income used in Earnings Per Common
Share calculation." |
| |
|
| (b) |
The tax rate used for non-GAAP
items for the quarter and year to date ended June 30, 2024 was
24.0% and 23.7%, respectively. |
| |
|
| (c) |
The impairment of long-lived
assets and other relates to miscellaneous expenses incurred during
the quarter and year to date ended June 30, 2024 in connection with
the closure of the Atchison distillery. Impairment of long-lived
assets and other are included in the Condensed Consolidated
Statement of Income as a component of operating income and relates
to the Distilling Solutions segment. |
| |
|
| (d) |
Fair value of contingent
consideration relates to the quarterly adjustment of the contingent
consideration liability related to the acquisition of Penelope
Bourbon LLC. It is included in the Condensed Consolidated Statement
of Income as a component of operating income and relates to the
Branded Spirits segment. |
| |
|
| (e) |
Business acquisition costs are
included in the Condensed Consolidated Statement of Income within
the selling, general, and administrative line item and include
transaction and integration costs associated with the acquisition
of Penelope Bourbon LLC. |
| |
|
| (f) |
The executive transition costs
are included in the Condensed Consolidated Statement of Income
within the selling, general, and administrative line item. The
adjustment includes costs related to the transition of certain
executive positions. |
| |
|
| (g) |
The unusual items costs are
included in the Condensed Consolidated Statement of Income within
the selling, general and administrative line item. The adjustment
includes professional and legal costs associated with special
projects. |
| |
|
| (h) |
Adjusted net income margin is
defined as adjusted net income divided by net sales. |
| |
|
| (i) |
Adjusted EBITDA margin is defined
as adjusted EBITDA divided by net sales. |
| |
|
MGP INGREDIENTS, INC.RECONCILIATION OF
NET INCOME TO ADJUSTED EBITDA (UNAUDITED)(in
thousands)
| |
Quarter Ended June 30, |
|
Year to Date Ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
2024 |
|
|
|
2023 |
| Net
Income |
$ |
32,017 |
|
|
$ |
31,964 |
|
$ |
52,601 |
|
|
$ |
62,996 |
|
Interest expense |
|
2,205 |
|
|
|
1,282 |
|
|
4,224 |
|
|
|
2,277 |
|
Income tax expense |
|
10,108 |
|
|
|
10,804 |
|
|
16,370 |
|
|
|
20,459 |
|
Depreciation and amortization |
|
5,329 |
|
|
|
5,319 |
|
|
10,618 |
|
|
|
10,490 |
|
Share based compensation |
|
865 |
|
|
|
2,422 |
|
|
1,981 |
|
|
|
3,637 |
|
Equity method investment loss (gain) |
|
(910 |
) |
|
|
319 |
|
|
(614 |
) |
|
|
579 |
|
Impairment of long-lived assets and other |
|
21 |
|
|
|
— |
|
|
137 |
|
|
|
— |
|
Fair value of contingent consideration |
|
5,400 |
|
|
|
— |
|
|
9,500 |
|
|
|
— |
|
Business acquisition costs |
|
15 |
|
|
|
1,500 |
|
|
86 |
|
|
|
1,500 |
|
Executive transition costs |
|
843 |
|
|
|
— |
|
|
1,218 |
|
|
|
— |
|
Unusual items costs |
|
1,639 |
|
|
|
— |
|
|
1,639 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
57,532 |
|
|
$ |
53,610 |
|
$ |
97,760 |
|
|
$ |
101,938 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The non-GAAP adjusted EBITDA measure is defined as earnings
before interest expense, income tax expense, depreciation and
amortization, share based compensation, equity method investment
loss (gain), impairment of long-lived assets and other, fair value
of contingent consideration, business acquisition costs, executive
transition costs, and unusual items costs.
See "Reconciliation of selected GAAP measure to adjusted
non-GAAP measures" and "Description of Non-GAAP items" for further
details.
MGP INGREDIENTS, INC.NET DEBT LEVERAGE
RATIO (UNAUDITED)(in thousands)
| |
Quarter Ended September 30, 2023 |
|
Quarter Ended December 31, 2023 |
|
Quarter Ended March
31, 2024 |
|
Quarter Ended June
30, 2024 |
|
TTM(a)June
30,2024 |
|
Net income |
$ |
13,088 |
|
|
$ |
31,046 |
|
$ |
20,584 |
|
$ |
32,017 |
|
|
$ |
96,735 |
|
|
Interest expense |
|
2,353 |
|
|
|
2,017 |
|
|
2,019 |
|
|
2,205 |
|
|
|
8,594 |
|
|
Income tax expense |
|
4,373 |
|
|
|
9,784 |
|
|
6,262 |
|
|
10,108 |
|
|
|
30,527 |
|
|
Depreciation and amortization |
|
5,782 |
|
|
|
5,841 |
|
|
5,289 |
|
|
5,329 |
|
|
|
22,241 |
|
|
Share based compensation |
|
2,014 |
|
|
|
1,850 |
|
|
1,116 |
|
|
865 |
|
|
|
5,845 |
|
|
Equity method investment loss (gain) |
|
(388 |
) |
|
|
146 |
|
|
296 |
|
|
(910 |
) |
|
|
(856 |
) |
|
Impairment of long-lived assets and other |
|
18,334 |
|
|
|
1,057 |
|
|
116 |
|
|
21 |
|
|
|
19,528 |
|
|
Fair value of contingent consideration |
|
4,200 |
|
|
|
2,900 |
|
|
4,100 |
|
|
5,400 |
|
|
|
16,600 |
|
|
Business acquisition costs |
|
314 |
|
|
|
246 |
|
|
71 |
|
|
15 |
|
|
|
646 |
|
|
Executive transition costs |
|
— |
|
|
|
3,134 |
|
|
375 |
|
|
843 |
|
|
|
4,352 |
|
|
Unusual items costs |
|
— |
|
|
|
— |
|
|
— |
|
|
1,639 |
|
|
|
1,639 |
|
|
Adjusted EBITDA |
$ |
50,070 |
|
|
$ |
58,021 |
|
$ |
40,228 |
|
$ |
57,532 |
|
|
$ |
205,851 |
|
| |
|
|
|
|
|
|
|
|
|
| Total debt |
|
|
|
|
|
|
|
|
$ |
309,396 |
|
|
Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
21,011 |
|
|
Net debt |
|
|
|
|
|
|
|
|
$ |
288,385 |
|
| |
|
|
|
|
|
|
|
|
|
|
Net debt leverage ratio(b) |
|
|
|
|
|
|
|
|
|
1.4 |
|
| (a) |
TTM is defined
as trailing twelve months |
| (b) |
Net leverage ratio defined as net debt dividend by adjusted
EBITDA |
| |
|
See "Reconciliation of selected GAAP measure to adjusted
non-GAAP measures," and "Description of Non-GAAP items" for further
details on selected non-GAAP items.
MGP INGREDIENTS, INC.DILUTIVE SHARES
OUTSTANDING CALCULATION (UNAUDITED)
| |
Quarter Ended June 30, |
|
Year to Date Ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Principal amount of the
bonds |
$ |
201,250,000 |
|
|
$ |
201,250,000 |
|
|
$ |
201,250,000 |
|
|
$ |
201,250,000 |
|
| Par value |
$ |
1,000 |
|
|
$ |
1,000 |
|
|
$ |
1,000 |
|
|
$ |
1,000 |
|
| Number of bonds outstanding
(a) |
|
201,250 |
|
|
|
201,250 |
|
|
|
201,250 |
|
|
|
201,250 |
|
| |
|
|
|
|
|
|
|
| Initial conversion rate |
|
10.3911 |
|
|
|
10.3911 |
|
|
|
10.3911 |
|
|
|
10.3911 |
|
| Conversion price |
$ |
96.23620 |
|
|
$ |
96.23620 |
|
|
$ |
96.23620 |
|
|
$ |
96.23620 |
|
| |
|
|
|
|
|
|
|
| Average share price (b) |
$ |
78.03794 |
|
|
$ |
99.94097 |
|
|
$ |
82.27766 |
|
|
$ |
98.82927 |
|
| Impact of conversion (c) |
$ |
163,193,633 |
|
|
$ |
208,997,443 |
|
|
$ |
172,059,773 |
|
|
$ |
206,672,647 |
|
| |
|
|
|
|
|
|
|
| Cash paid for principal |
|
(201,250,000 |
) |
|
|
(201,250,000 |
) |
|
|
(201,250,000 |
) |
|
|
(201,250,000 |
) |
| Conversion
premium |
$ |
— |
|
|
$ |
7,747,443 |
|
|
$ |
— |
|
|
$ |
5,422,647 |
|
| |
|
|
|
|
|
|
|
| Average share price |
$ |
78.03794 |
|
|
$ |
99.94097 |
|
|
$ |
82.27766 |
|
|
$ |
98.82927 |
|
| Conversion premium in
shares (d) (e) |
|
— |
|
|
|
77,520 |
|
|
|
— |
|
|
|
54,869 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Number of bonds outstanding is calculated by taking the principal
amount of the bonds divided by the par value. |
| |
|
| (b) |
Average share price is calculated
by taking the average of the daily closing share price for the
period. If the average share price is less than the conversion
price of $96.23620 per share, the impact to EPS is anti-dilutive
and therefore the shares were excluded from the diluted EPS
calculation. |
| |
|
| (c) |
Impact of conversion is
calculated by taking the number of bonds outstanding multiplied by
the initial conversion rate multiplied by the average share price.
If the average share price is less than the conversion price then
the impact of conversion is zero. |
| |
|
| (d) |
The impacts of the Convertible
Senior Notes were included in the diluted weighted average common
shares outstanding if the impact was dilutive. The Convertible
Senior Notes would only have a dilutive impact if the average
market price per share during the quarter to date period exceeds
the conversion price of $96.23620 per share. |
| |
|
| (e) |
Conversion premium in shares is
calculated by taking the conversion premium divided by the average
share price. If the average share price is less than the conversion
price, then the conversion premium in shares is zero. |
| |
|
MGP INGREDIENTS, INC.Impact of the
Closure of the Atchison Distillery Segment
Operating Results and Pro-Forma ResultsQuarter
Ended June 30, 2024(UNAUDITED) (Dollars in thousands)
| |
Distilling Solutions |
|
| |
Quarter Ended June 30, 2024 |
|
Increase/(Decrease) |
|
| |
As Reported (a) |
|
Pro-Forma(b) |
|
$ Change |
|
% Change |
|
|
Brown goods |
$ |
75,443 |
|
|
$ |
75,443 |
|
|
$ |
— |
|
|
— |
% |
|
| Warehouse services |
|
8,392 |
|
|
|
8,392 |
|
|
|
— |
|
|
— |
|
|
| White goods and other
co-products |
|
9,553 |
|
|
|
9,508 |
|
|
|
(45 |
) |
|
— |
|
|
|
Total Sales |
$ |
93,388 |
|
|
$ |
93,343 |
|
|
$ |
(45 |
) |
|
— |
% |
|
| |
|
|
|
|
|
|
|
|
| Gross
profit |
$ |
42,473 |
|
|
$ |
42,535 |
|
|
$ |
62 |
|
|
— |
% |
|
| Gross margin
% |
|
45.5 |
% |
|
|
45.6 |
% |
|
|
|
0.1 |
|
pp(c) |
| |
Ingredient Solutions |
|
| |
Quarter Ended June 30, 2024 |
|
Increase/(Decrease) |
|
| |
As Reported (a) |
|
Pro-Forma(b) |
|
$ Change |
|
% Change |
|
|
Specialty wheat starches |
$ |
19,203 |
|
|
$ |
19,203 |
|
|
$ |
— |
|
— |
% |
|
| Specialty wheat proteins |
|
11,200 |
|
|
|
11,200 |
|
|
|
— |
|
— |
|
|
| Commodity wheat starches |
|
2,973 |
|
|
|
2,973 |
|
|
|
— |
|
— |
|
|
| Commodity wheat proteins |
|
— |
|
|
|
— |
|
|
|
— |
|
— |
|
|
|
Total Sales |
$ |
33,376 |
|
|
$ |
33,376 |
|
|
$ |
— |
|
— |
% |
|
| |
|
|
|
|
|
|
|
|
| Gross
profit |
$ |
7,126 |
|
|
$ |
7,126 |
|
|
$ |
— |
(d) |
— |
% |
|
| Gross margin
% |
|
21.4 |
% |
|
|
21.4 |
% |
|
|
|
— |
|
pp(c) |
| |
Consolidated |
|
| |
Quarter Ended June 30, 2024 |
|
Increase/(Decrease) |
|
| |
As Reported (a) |
|
Pro-Forma(b) |
|
$ Change |
|
% Change |
|
|
Sales |
$ |
190,805 |
|
|
$ |
190,760 |
|
|
$ |
(45 |
) |
|
— |
% |
|
| Gross
profit |
$ |
83,232 |
|
|
$ |
83,294 |
|
|
$ |
62 |
|
|
— |
% |
|
| Gross margin
% |
|
43.6 |
% |
|
|
43.7 |
% |
|
|
|
0.1 |
|
pp(c) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Represents actual results of the Company for the quarter ended June
30, 2024, as reported in the Company's Quarterly Report on Form
10-Q for the quarter ended June 30, 2024. |
| (b) |
Represents the Company's results
for the quarter ended June 30, 2024 excluding results associated
with the Company's Atchison, Kansas distillery. These are pro-forma
unaudited financial results. In some circumstances, white goods,
industrial alcohol, fuel grade alcohol, and at times certain
co-products are produced at the Company's Lawrenceburg, Indiana
distillery. The results of the Branded Spirits segment for the
quarter ended June 30, 2024 were not impacted by a closure of the
Atchison, Kansas distillery. |
| (c) |
Percentage points (“pp”). |
| (d) |
There was no reduction in gross
profit for the Ingredient Solutions segment as the Company is no
longer receiving an intercompany credit for the waste starch slurry
by-product since the closure of the distillery in Atchison Kansas
during December 2023. |
| |
|
MGP INGREDIENTS, INC.Impact of the
Closure of the Atchison Distillery Segment
Operating Results and Pro-Forma ResultsQuarter
Ended June 30, 2023(UNAUDITED) (Dollars in thousands)
| |
Distilling Solutions |
|
| |
Quarter Ended June 30, 2023 |
|
Increase/(Decrease) |
|
| |
As Reported (a) |
|
Pro-Forma(b) |
|
$ Change |
|
% Change |
|
|
Brown goods |
$ |
73,124 |
|
|
$ |
73,124 |
|
|
$ |
— |
|
|
— |
% |
|
| Warehouse services |
|
6,747 |
|
|
|
6,747 |
|
|
|
— |
|
|
— |
|
|
| White goods and other
co-products |
|
36,994 |
|
|
|
6,092 |
|
|
|
(30,902 |
) |
|
(84 |
) |
|
|
Total Sales |
$ |
116,865 |
|
|
$ |
85,963 |
|
|
$ |
(30,902 |
) |
|
(26)% |
|
| |
|
|
|
|
|
|
|
|
| Gross
profit |
$ |
38,678 |
|
|
$ |
40,379 |
|
|
$ |
1,701 |
|
|
4 |
% |
|
| Gross margin
% |
|
33.1 |
% |
|
|
47.0 |
% |
|
|
|
13.9 |
|
pp(c) |
| |
Ingredient Solutions |
|
| |
Quarter Ended June 30, 2023 |
|
Increase/(Decrease) |
|
| |
As Reported (a) |
|
Pro-Forma(b) |
|
$ Change |
|
% Change |
|
|
Specialty wheat starches |
$ |
17,095 |
|
|
$ |
17,095 |
|
|
$ |
— |
|
|
— |
% |
|
| Specialty wheat proteins |
|
12,588 |
|
|
|
12,588 |
|
|
|
— |
|
|
— |
|
|
| Commodity wheat starches |
|
4,837 |
|
|
|
4,837 |
|
|
|
— |
|
|
— |
|
|
| Commodity wheat proteins |
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
Total Sales |
$ |
34,520 |
|
|
$ |
34,520 |
|
|
$ |
— |
|
|
— |
% |
|
| |
|
|
|
|
|
|
|
|
| Gross
profit |
$ |
11,614 |
|
|
$ |
10,012 |
|
|
$ |
(1,602 |
) |
(d) |
(14)% |
|
| Gross margin
% |
|
33.6 |
% |
|
|
29.0 |
% |
|
|
|
(4.6 |
) |
pp(c) |
| |
Consolidated |
|
| |
Quarter Ended June 30, 2023 |
|
Increase/(Decrease) |
|
| |
As Reported (a) |
|
Pro-Forma(b) |
|
$ Change |
|
% Change |
|
| Sales |
$ |
209,001 |
|
|
$ |
178,099 |
|
|
$ |
(30,902 |
) |
|
(15)% |
|
|
Gross profit |
$ |
76,295 |
|
|
$ |
76,394 |
|
|
$ |
99 |
|
|
— |
% |
|
| Gross margin
% |
|
36.5 |
% |
|
|
42.9 |
% |
|
|
|
6.4 |
|
pp(c) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Represents actual results of the Company for the quarter ended June
30, 2023, as reported in the Company's Quarterly Report on Form
10-Q for the quarter ended June 30, 2023. |
| (b) |
Represents the Company's results
for the quarter ended June 30, 2023 excluding results associated
with the Company's Atchison, Kansas distillery. These are pro-forma
unaudited financial results. In some circumstances, white goods,
industrial alcohol, fuel grade alcohol, and at times certain
co-products are produced at the Company's Lawrenceburg, Indiana
distillery. The pro-forma financial results assume the loss of the
waste starch slurry credit and no gain or loss on the disposal. The
results of the Branded Spirits segment for the quarter ended June
30, 2023 were not impacted by a closure of the Atchison, Kansas
distillery. |
| (c) |
Percentage points (“pp”). |
| (d) |
The reduction in gross profit for
the Ingredient Solutions segment is the result of increased cost of
goods sold from no longer receiving an intercompany credit for the
waste starch slurry by-product purchased by the adjoined Atchison,
Kansas distillery. The value of the intercompany credit is derived
from the value of corn which has fluctuated over time. |
| |
|
MGP Ingredients (NASDAQ:MGPI)
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