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8-K - FORM 8-K - RALCORP HOLDINGS INC /MO | c65477e8vk.htm |
EX-99.2 - EX-99.2 - RALCORP HOLDINGS INC /MO | c65477exv99w2.htm |
Exhibit
99.1
For Immediate Release
RALCORP HOLDINGS ANNOUNCES PRELIMINARY RESULTS FOR
THE THIRD QUARTER OF FISCAL 2011 AND UPDATES 2011 GUIDANCE
THE THIRD QUARTER OF FISCAL 2011 AND UPDATES 2011 GUIDANCE
ST. LOUIS, July 14, 2011 Ralcorp Holdings, Inc. (NYSE: RAH) today announced that, based upon
information currently available, the Company expects that diluted earnings per share for the third
quarter will be between $0.85 and $0.90. Excluding $0.24 of reductions related to economic hedges
and $0.04 of reductions related to plant closures, mergers and integration, adjusted diluted
earnings per share for the quarter is expected to be between $1.13 and $1.18.
Ralcorp currently expects diluted earnings per share for the fiscal year ending September 30, 2011
to be between $5.01 and $5.16, including $0.12 of actual year-to-date reductions related to
economic hedges and $0.07 of reductions related to provision for legal settlement, plant closures,
mergers and integration. Excluding those special items, adjusted diluted earnings per share for
the year is expected to be between $5.20 and $5.35 compared to the Companys prior expectation of
$5.45 to $5.55, as announced on May 1, 2011.
The primary factors causing the decline from prior guidance, include: a lag in pricing realization
versus changes in the cost of primary raw materials in the private brand businesses, lower than
expected volume in the Branded Cereals segment and an increased number of diluted shares
outstanding, as well as increased expense on certain share based compensation, resulting from the
increase in Ralcorps share price after May 1, 2011.
The Company reiterated that its recently announced accelerated cost reduction program is expected
to result in an additional $80 to $100 million in operating profit in total over the fiscal years
2012-2014. The Company expects to spend additional capital of $115 to $135 million to complete
these projects.
The Company plans to announce full results for the quarter ended June 30, 2011 on August 9, 2011.
Ralcorp management will host a conference call with the financial community on that date to provide
further information on the quarterly results. A live webcast will also be available by visiting
the Investor Relations section of the Companys website at www.ralcorp.com.
Non-GAAP Financial Measures and Additional Information
The non-GAAP financial measures presented herein and discussed below do not comply with accounting
principles generally accepted in the United States, or GAAP, because they are adjusted to exclude
(include) certain cash and non-cash income and expenses that would otherwise be included in
(excluded from) the most directly comparable GAAP measure in the statement of earnings. These
non-GAAP financial measures, which are not necessarily comparable to similarly titled captions of
other companies due to potential inconsistencies in the methods of calculation, should not be
considered an alternative to, or more meaningful than, related measures determined in accordance
with GAAP. As further discussed below, these non-GAAP measures supplement other metrics used by
management to internally evaluate its businesses and facilitate the comparison of operations over
time.
Adjusted diluted earnings per share is an additional measure for comparing the earnings generated
by operations between periods, without the effects of intangible asset impairments (if any),
adjustments for economic hedges, provision for legal settlement, merger and integration costs, and
amounts related to plant closures.
Cautionary Statement on Forward-Looking Language
Forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of
1934, are made throughout this release. These forward-looking statements are sometimes identified
by the use of terms and phrases such as believe, should, would, expect, project,
estimate, anticipate, intend, plan, will, can, may, 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 preliminary nature of our expected results, which are subject to change as they are
reviewed internally and by our external auditors, general economic conditions, changes in actual or
forecasted cash flows, competitive pressures, future sales volume, significant increases in the
costs of certain commodities, timely implementation of price increases, successful execution of
cost saving strategies, changes in tax laws, integration risks associated with the recent
acquisitions, changes in weighted average shares for diluted EPS, increases in transportation
costs, and other financial, operational and legal risks and uncertainties detailed from time to
time in the companys cautionary statements contained in its filings with the Securities and
Exchange Commission. The company disclaims and does not undertake any obligation to update or
revise any forward-looking statement in this press release.
About Ralcorp Holdings, Inc.
Ralcorp produces Post branded cereals, a variety of value brand and store brand foods sold under
the individual labels of various grocery, mass merchandise and drugstore retailers, and frozen
bakery products sold to in-store bakeries, restaurants and other foodservice customers. Ralcorps
diversified product mix includes: ready-to-eat and hot cereals; nutritional and cereal bars; snack
mixes, corn-based chips and extruded corn snack products; crackers and cookies; snack nuts;
chocolate candy; salad dressings; mayonnaise; peanut butter; jams and jellies; syrups; sauces;
frozen griddle products including pancakes, waffles, and French toast; frozen biscuits and other
frozen pre-baked products such as breads and muffins; frozen dough; and dry pasta. For more
information about Ralcorp, visit the Companys website at www.ralcorp.com.
Contact:
Matt Pudlowski
Director, Business Development
(314) 877-7091
Director, Business Development
(314) 877-7091