MGP Ingredients Reports 4Q Net Loss of $361,000, Compared to $180,000 Net Income in 4Q 2012
Date Posted: March 13, 2014
Atchison, KS—MGP Ingredients, Inc.(Nasdaq:MGPI) (the "Company") March 12 reported results for the fourth quarter ended December 31, 2013.
Net loss for the fourth quarter was $0.4 million, or ($0.02) per diluted share, compared to net income of $180,000, or $0.01 per diluted share, in the prior year.
Net loss from continuing operations for 2013 was $5.8 million, or ($0.34) per diluted share.
Income from discontinued operations was $0.8 million, or $0.05 per diluted share, resulting in a total net loss of $5 million, or ($0.29) per diluted share.
This compares with net income of $1.6 million, or $0.09 per diluted share, in 2012.
Annual results for 2013 were impacted by the record high corn basis during the third quarter, increased severance costs, and approximately $5.5 million in costs related to the proxy contest.
Net sales for the fourth quarter declined by approximately 10.5 percent from the year-ago period.
Beverage alcohol sales were down slightly, while sales of industrial alcohol saw greater volume decreases compared to the same period a year ago.
Ingredient sales in the fourth quarter declined approximately 5 percent from a year ago.
Fourth quarter loss from operations was $1.1 million compared to an operating profit of $970,000 in the fourth quarter of 2012.
The Company's gross profit during the fourth quarter was $7.9 million, or 10.2 percent of net sales, compared to $7.4 million, or 8.6 percent of net sales in the prior year.
The improvement in gross margins, especially when compared to gross profit of $815,000 in the previous quarter, was due mainly to increased profitability from the Company's white goods distillery products.
Fourth quarter corporate expenses of $8.8 million include the previously mentioned $3.4 million in costs related to the proxy contest and increased severance costs.
For the twelve months of 2013, net sales declined by 3.3 percent to $323.2 million.
The Company generated a gross profit margin of 6.6 percent compared to 7.5 percent in the prior year period.
Loss from operations for the twelve months of 2013 was $5.2 million compared to a loss of $944,000 in the prior year.
For more information, call 913-360-5442.