ST. LOUIS — Net income at Post Holdings, Inc. during the third quarter ended June 30 totaled $15.8 million, equal to 46c per share on the common stock, up sharply from $1.6 million, or 5c per share, in the same period a year ago. Adjusted EBITDA, meanwhile, totaled $61.4 million in the period, down 5% from $64.7 million in the same period a year ago. Post said the adjusted EBITDA reflects its status as a stand-alone public company and not an operating segment of Ralcorp.
Sales for the quarter were $241.9 million, down 2% from $247.7 million during the same period of the previous year. The sales decline was attributed in part to a 5.5% drop in overall volumes, partially offset by higher average net selling prices.
During the third quarter, Post said volumes of Honey Bunches of Oats and Pebbles ready-to-eat cereals were down 6.6% and 15.3%, respectively, versus the same period a year ago, while volumes of Great Grains and Grape Nuts increased 1.5% and 5.9%, respectively.
Post introduced a new line of value-priced cereals under the Good Morenings brand in June, and plans to launch a number of line extensions and product improvements over the next 6 to 12 months, including Grape Nuts Fit, new Great Grains flavors, Honey Bunches of Oats Mango Coconut, and a more “chocolatey” Cocoa Pebbles.
For the nine months ended June 30, net income was $39.1 million, or $1.14 per share, down 29% from $55.3 million, or $1.61 per share, during the same period of the previous year. Adjusted EBITDA totaled $161.1 million, down 16% from $192.2 million. Sales for the period were $711.7 million, down 3% from $730.4 million.
Post said it is also restating its financial statements for the year ended Sept. 30, 2011, and the fiscal quarter ended Dec. 31, 2011, as the result of Ralcorp Holdings’ restatement.
“While Post management is not participating in Ralcorp’s review process, Post management is not aware of any issues from such review which would affect Post beyond the correction of the goodwill impairment charge previously reported,” the company said. “However, because Post was a wholly-owned subsidiary of Ralcorp and subject to Ralcorp’s accounting and financial reporting processes during the periods affected by this review, there can be no assurance that Post will not be further impacted.”
Looking ahead to the remainder of fiscal 2012, Post affirmed its previously issued guidance of adjusted EBITDA of $200 million to $210 million for fiscal 2012, and adjusted EBITDA of $210 million to $220 million for the 12 months following the separation from Ralcorp. Full-year capital expenditures are expected to be in a range of $24 million to $26 million.
“While it is still early in Post’s planning for fiscal 2013, the recent drought has created significant commodity price volatility,” Post said. “In 2013, Post management expects to see meaningful ingredient cost inflation, and will continue to monitor the commodity landscape closely and look for opportunities to mitigate increased costs.”