DALLAS, May 10, 2016 /PRNewswire/ -- Dean Foods Company reported first quarter 2016 results.
Highlights
- Q1 net income per diluted share was $0.43 and adjusted net income per diluted share was $0.45, exceeding expectations
- Q1 adjusted results reflect the fifth consecutive quarter of year-over-year improved results behind strong execution across all functions
- Quarterly dividend increased to $0.09 per share, a 29% increase
- Q2 2016 adjusted diluted earnings are expected to be $0.32 to $0.40 per diluted share
Chief Executive Officer Gregg Tanner said, "Our Q1 performance marks a strong start to 2016. Solid execution across all functions led to continued improvement in our financial and operational performance from Q4 to Q1. We continue to execute our agenda at high levels across the entire team."
First Quarter 2016 Operating Results
Chief Financial Officer Chris Bellairs said, "We delivered a solid start to 2016 across our key financial measures. We delivered $29 million of free cash flow and $122 million of adjusted EBITDA for the quarter. On an all cash netted basis, our total leverage improved to 1.72 times net debt to bank EBITDA, representing our fifth sequential quarterly improvement."
The first quarter 2016 average Class I Mover, a measure of raw milk costs, was $14.49 per hundred-weight, an approximately 11% sequential decrease from the fourth quarter of 2015 and a decrease of nearly 14% from the first quarter of 2015. The second quarter 2016 average Class I Mover forecast of $13.49 per hundred-weight represents an approximately 7% decline sequentially and an approximately 15% decline year-over-year.
Total volume across all products was 641 million gallons for the first quarter of 2016, a 3.2% decline compared to total volume of 662 million gallons in the first quarter of 2015. For the second quarter 2016, as compared to the prior year period, the Company expects total volumes to decline in the low single digits.
Based on fluid milk sales data published by the USDA through February, fluid milk volumes improved sequentially from a 1.1% decline in the fourth quarter 2015 to a 0.6% decline in the first quarter 2016 on an unadjusted basis. On this same basis, Dean Foods' share of U.S. fluid milk volumes decreased by 10 basis points sequentially and 70 basis points year-over-year to 34.6% in the first quarter 2016. Full report.
