Post Holdings Narrows Fiscal Year 2019 Adjusted EBITDA Guidance Range
June 24 2019 - 7:20AM
Post Holdings, Inc. (NYSE:POST) (the “Company” or “Post”) today
provided an update to its previously issued non-GAAP Adjusted
EBITDA guidance for fiscal year 2019. This release should be read
in conjunction with the financial statements and management’s
discussion and analysis included in the Company’s filings with the
Securities and Exchange Commission (the “SEC”), as well as the
matters discussed under “Risk Factors” in the Company’s Form 10-K
for the fiscal year ended September 30, 2018.
Post management has narrowed its fiscal year 2019 Adjusted
EBITDA guidance to range between $1.205-$1.225 billion, from
$1.20-$1.24 billion, which excludes the results of 8th Avenue Food
& Provisions, Inc. (“8th Avenue”) and any contribution from the
previously announced acquisition of the private label ready-to-eat
cereal business of TreeHouse Foods (the “TreeHouse RTE cereal
business”).
The Company provides Adjusted EBITDA guidance only on a non-GAAP
basis and does not provide a reconciliation of its forward-looking
Adjusted EBITDA non-GAAP guidance measure to the most directly
comparable GAAP measure due to the inherent difficulty in
forecasting and quantifying certain amounts that are necessary for
such reconciliation, including adjustments that could be made for
gain on sale of business, non-cash mark-to-market adjustments and
cash settlements on interest rate swaps, provision for legal
settlement, transaction and integration costs, restructuring and
plant closure costs, mark-to-market adjustments on commodity and
foreign exchange hedges, assets held for sale and other charges
reflected in the Company’s reconciliation of historical numbers,
the amounts of which, based on historical experience, could be
significant. For additional information regarding Post’s non-GAAP
measures, see the related explanations presented under “Use of
Non-GAAP Measure.”
Use of Non-GAAP Measure
The Company uses Adjusted EBITDA, a non-GAAP measure, 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 U.S. GAAP, as it excludes
certain items, and may not be comparable to similarly-titled
measures of other companies.
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. Additionally, the Company is
required to comply with certain covenants and limitations that are
based on variations of EBITDA in the Company’s financing documents.
Management believes the use of non-GAAP measures, including
Adjusted EBITDA, provides increased transparency and assists
investors in understanding the underlying operating performance of
the Company and its segments and in the analysis of ongoing
operating trends. Non-GAAP measures are not prepared in accordance
with GAAP, as they exclude certain items, and may not be comparable
to similarly titled measures of other companies.
Prospective Financial Information
Prospective financial information is necessarily speculative in
nature, and it can be expected that some or all of the assumptions
underlying the prospective financial information described above
will not materialize or will vary significantly from actual
results. For further discussion of some of the factors that may
cause actual results to vary materially from the information
provided above, see “Forward-Looking Statements” below.
Accordingly, the prospective financial information provided above
is only an estimate of what the Company’s management believes is
realizable as of the date of this release. It also should be
recognized that the reliability of any forecasted financial data
diminishes the farther in the future that the data is forecast. In
light of the foregoing, the information should be viewed in context
and undue reliance should not be placed upon it.
Forward-Looking Statements
The Adjusted EBITDA guidance for fiscal year 2019 is a
forward-looking statement. There are a number of risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements made herein. These risks and
uncertainties include, but are not limited to, the following:
- Post’s high leverage, Post’s ability to obtain additional
financing (including both secured and unsecured debt) and Post’s
ability to service its outstanding debt (including covenants that
restrict the operation of its business);
- Post’s ability to continue to compete in its product categories
and Post’s ability to retain its market position and favorable
perceptions of its brands;
- Post’s ability to anticipate and respond to changes in consumer
preferences and trends and introduce new products;
- the possibility that Post may not be able to consummate the
initial public offering of its Active Nutrition business on the
expected timeline or at all, that Post may not be able to create
value in its Active Nutrition business through such transaction or
that the pursuit of such transaction could be disruptive to Post
and its Active Nutrition business;
- the ability and timing to close the proposed acquisition of the
TreeHouse RTE cereal business;
- Post’s ability to identify, complete and integrate acquisitions
and manage its growth;
- Post’s ability to promptly and effectively realize the expected
synergies of its acquisition of Bob Evans Farms (“Bob Evans”)
within the expected timeframe or at all;
- higher freight costs, significant volatility in the costs or
availability of certain raw materials, commodities or packaging
used to manufacture Post’s products or higher energy costs;
- impairment in the carrying value of goodwill or other
intangibles;
- Post’s ability to successfully implement business strategies to
reduce costs;
- allegations that Post’s products cause injury or illness,
product recalls and withdrawals and product liability claims and
other litigation;
- legal and regulatory factors, such as compliance with existing
laws and regulations and changes to and new laws and regulations
affecting Post’s business, including current and future laws and
regulations regarding food safety, advertising and labeling and
animal feeding and housing operations;
- the loss of, a significant reduction of purchases by or the
bankruptcy of a major customer;
- consolidations in the retail and foodservice distribution
channels;
- losses incurred in the appraisal proceedings brought in
connection with Post’s acquisition of Bob Evans by former Bob Evans
stockholders who demanded appraisal of their shares;
- the ultimate impact litigation or other regulatory matters may
have on Post;
- disruptions or inefficiencies in the supply chain, including as
a result of Post’s reliance on third party manufacturers for
certain of its products;
- changes in weather conditions, natural disasters, agricultural
diseases and pests and other events beyond Post’s control;
- Post’s ability to successfully collaborate with the private
equity firm Thomas H. Lee Partners, L.P. (“THL”), whose affiliates
invested with Post in 8th Avenue;
- costs associated with Bob Evans’s obligations in connection
with the sale and separation of its restaurant business in April
2017, which occurred prior to Post’s acquisition of Bob Evans,
including certain indemnification obligations under the restaurants
sale agreement and Bob Evans’s payment and performance obligations
as a guarantor for certain leases;
- the ability of Post’s and Post’s customers’ private brand
products to compete with nationally branded products;
- Post’s ability to successfully operate its international
operations in compliance with applicable laws and regulations;
- changes in economic conditions, disruptions in the United
States and global capital and credit markets, changes in interest
rates and fluctuations in foreign currency exchange rates;
- the impact of the United Kingdom’s exit from the European Union
(commonly known as “Brexit”) on Post and its operations;
- changes in estimates in critical accounting judgments;
- loss of key employees, labor strikes, work stoppages or
unionization efforts;
- losses or increased funding and expenses related to Post’s
qualified pension or other postretirement plans;
- costs, business disruptions and reputational damage associated
with information technology failures, cybersecurity incidents or
information security breaches;
- Post’s ability to protect its intellectual property and other
assets;
- significant differences in Post’s and 8th Avenue’s actual
operating results from Post’s guidance regarding its and 8th
Avenue’s future performance;
- Post’s ability to satisfy the requirements of Section 404 of
the Sarbanes-Oxley Act of 2002; and
- other risks and uncertainties described in Post’s filings with
the SEC.
These forward-looking statements represent the Company’s
judgment as of the date of this release. The Company 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,
and active nutrition food categories.
Contact:Investor RelationsJennifer
Meyerjennifer.meyer@postholdings.com(314) 644-7665
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