Innacle Foods Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 25, 2017; Revised Earnings Guidance for the Year 2017; Reports Tradename Impairment Charge for the Second Quarter Ended June 25, 2017
For the six months, the company reported net sales of $1,510,682,000 against $1,510,636,000 a year ago. Earnings before interest and taxes were $155,228,000 against $188,067,000 a year ago. Earnings before income taxes were $46,018,000 against $121,043,000 a year ago. Net earnings were $41,767,000 against $70,620,000 a year ago. Net earnings attributable to common shareholders were $41,595,000 or $0.35 per diluted share against $70,620,000 or $0.60 per diluted share a year ago. Net cash provided by operating activities were $120,348,000 against $165,103,000 a year ago. Capital expenditures were $49,355,000 against $60,187,000 a year ago. Adjusted net earnings were $123,443,000 or $1.03 per share against $97,356,000 or $0.83 per share a year ago. Adjusted EBIT was $234,669,000 against $221,560,000 a year ago. Adjusted EBITDA was $287,527,000 against $273,232,000 a year ago.
The company revised earnings guidance for the year 2017. The company maintained its guidance for adjusted diluted EPS for 2017 in a range of $2.55 to $2.60, and now expects to be at the low end of the range, reflecting the inclusion of the full-year impact of the discrete items. The benefit of the 53rd week is expected to add approximately 1% to net sales and $0.03 to Adjusted Diluted EPS for the year. This impact will benefit the fourth quarter of 2017. Adjusted net interest expense is now forecasted to be slightly below $123 million. Capital expenditures for the year remain estimated in the range of $115 million to $125 million. Adjusted ETR for the year, including the benefit of the new accounting standard for stock-based compensation, is now estimated in the range of 33.0% to 33.4%, with the second half ETR significantly higher than the first half. The effective tax rate for the year, including the benefit of the change in tax treatment for stock-based compensation, is now estimated in the range of 33% to 33.4%, with the second half rate expected to be significantly higher than the first half, given the timing of equity vesting being skewed to the first half of the year.
For the quarter, the company reported Tradename impairment charges of $27,430,000.