MGP Ingredients Reports Third Quarter 2024 Results
MGP Ingredients (MGPI) reported Q3 2024 results with consolidated sales decreasing 24% to $161.5 million, while net income increased 82% to $23.9 million. The company's performance showed mixed results across segments, with Distilling Solutions sales down 36% to $71.9 million, Branded Spirits sales declining 6% to $62.6 million, and Ingredient Solutions sales dropping 18% to $26.9 million. In response to softening American whiskey trends, MGP plans to reduce whiskey production and optimize costs in 2025. The company reaffirmed its revised 2024 guidance with sales expected between $695-705 million and adjusted EBITDA of $196-200 million.
MGP Ingredients (MGPI) ha riportato i risultati del terzo trimestre del 2024 con vendite consolidate in diminuzione del 24% a 161,5 milioni di dollari, mentre l'utile netto è aumentato dell'82% a 23,9 milioni di dollari. Le performance dell'azienda hanno mostrato risultati misti tra i vari segmenti, con le vendite delle Soluzioni di Distillazione in calo del 36% a 71,9 milioni di dollari, le vendite degli Spiriti di Marca che sono scese del 6% a 62,6 milioni di dollari, e le vendite delle Soluzioni per Ingredienti che hanno registrato una diminuzione del 18% a 26,9 milioni di dollari. In risposta al rallentamento delle tendenze del whiskey americano, MGP prevede di ridurre la produzione di whiskey e ottimizzare i costi nel 2025. L'azienda ha confermato le sue previsioni aggiornate per il 2024, con vendite attese tra 695 e 705 milioni di dollari e un EBITDA rettificato di 196-200 milioni di dollari.
MGP Ingredients (MGPI) informó los resultados del tercer trimestre de 2024, con ventas consolidadas disminuyendo un 24% a 161,5 millones de dólares, mientras que el ingreso neto aumentó un 82% a 23,9 millones de dólares. El desempeño de la empresa mostró resultados mixtos en los diferentes segmentos, con las ventas de Soluciones de Destilación cayendo un 36% a 71,9 millones de dólares, las ventas de Espirituosos de Marca disminuyendo un 6% a 62,6 millones de dólares, y las ventas de Soluciones de Ingredientes bajando un 18% a 26,9 millones de dólares. En respuesta a la desaceleración de las tendencias del whiskey americano, MGP planea reducir la producción de whiskey y optimizar costos en 2025. La compañía reafirmó su guía revisada para 2024, con ventas esperadas entre 695 y 705 millones de dólares y un EBITDA ajustado de 196 a 200 millones de dólares.
MGP Ingredients (MGPI)는 2024년 3분기 실적을 발표했으며, 매출이 24% 감소한 1억 6,150만 달러를 기록했고, 순이익은 82% 증가한 2천390만 달러에 달했습니다. 회사의 성과는 여러 부문에서 혼합된 결과를 보였으며, 증류 솔루션 매출은 36% 감소한 7천190만 달러, 브랜드 주류 매출은 6% 감소한 6천260만 달러, 재료 솔루션 매출은 18% 감소한 2천690만 달러로 나타났습니다. 미국 위스키 트렌드의 둔화에 대응하여 MGP는 2025년에 위스키 생산을 줄이고 비용을 최적화할 계획입니다. 회사는 수정된 2024년 가이던스를 재확인하며, 판매액은 6억 9,500만 달러에서 7억 500만 달러이고 조정된 EBITDA는 1억 9천6백만에서 2억 달러 사이로 예상하고 있습니다.
MGP Ingredients (MGPI) a annoncé les résultats du troisième trimestre 2024, avec des ventes consolidées en baisse de 24% à 161,5 millions de dollars, tandis que le bénéfice net a augmenté de 82% à 23,9 millions de dollars. Les performances de l'entreprise ont montré des résultats mixtes selon les segments, avec des ventes des Solutions de Distillation en baisse de 36% à 71,9 millions de dollars, des ventes de Spirits de Marque en déclin de 6% à 62,6 millions de dollars, et des ventes des Solutions d'Ingrédients en chute de 18% à 26,9 millions de dollars. En réponse à l'affaiblissement des tendances de whiskey américain, MGP prévoit de réduire la production de whiskey et d'optimiser les coûts en 2025. L'entreprise a réaffirmé ses prévisions révisées pour 2024, avec des ventes attendues entre 695 et 705 millions de dollars et un EBITDA ajusté de 196 à 200 millions de dollars.
MGP Ingredients (MGPI) hat die Ergebnisse des dritten Quartals 2024 veröffentlicht, wobei der konsolidierte Umsatz um 24% auf 161,5 Millionen Dollar gesunken ist, während der Nettogewinn um 82% auf 23,9 Millionen Dollar gestiegen ist. Die Unternehmensleistung zeigte gemischte Ergebnisse in den verschiedenen Segmenten, wobei die Umsätze der Destillationslösungen um 36% auf 71,9 Millionen Dollar zurückgingen, die Umsätze der Marken-Spirituosen um 6% auf 62,6 Millionen Dollar sanken und die Umsätze der Zutatenlösungen um 18% auf 26,9 Millionen Dollar fielen. In Reaktion auf die schwächeren Trends beim amerikanischen Whiskey plant MGP, die Whiskeyproduktion zu reduzieren und die Kosten im Jahr 2025 zu optimieren. Das Unternehmen hat seine angepasste Prognose für 2024 bekräftigt, mit einem erwarteten Umsatz zwischen 695 und 705 Millionen Dollar und einem bereinigten EBITDA von 196 bis 200 Millionen Dollar.
- Net income increased 82% to $23.9 million
- Net income margin improved by 860 basis points to 14.8%
- Gross margin increased by 610 basis points to 40.8%
- Premium plus sales in Branded Spirits grew 1%
- Low net debt leverage ratio of 1.3x
- Consolidated sales decreased 24% to $161.5 million
- Distilling Solutions segment sales decreased 36%
- Branded Spirits segment sales declined 6%
- Ingredient Solutions segment sales dropped 18%
- Planning to reduce whiskey production due to market softening
Insights
MGP Ingredients' Q3 results reveal significant challenges and strategic shifts.
Despite headwinds, profitability metrics show resilience - net income margin expanded
The Branded Spirits segment demonstrates strength with premium plus sales growth and improved margins, offsetting weakness in other segments. However, the revised guidance and planned production cuts suggest challenging near-term prospects, particularly in the Distilling Solutions segment.
The American whiskey market dynamics are forcing strategic adjustments across the industry. MGP's decision to reduce production and aging inventory reflects broader category softness and elevated industry-wide barrel inventories. This defensive positioning, while prudent, signals potential market oversupply issues that could persist into 2025.
The company's pivot towards premium branded spirits shows promise, with the segment achieving
Financial results and full-year guidance in line with recently announced preliminary update
“Our third quarter performance was in line with the preliminary results we provided on October 17. In response to the softening American whiskey category trends and elevated industry-wide barrel inventories, in 2025 we plan to further lower our net aging whiskey put away, scale down our whiskey production, and optimize our cost structure to mitigate lower production volumes. While current market dynamics will likely have an even greater impact on our Distilling Solutions segment sales and profitability in 2025, we believe that these actions will strengthen the long-term competitive positioning of our brown goods business. Over the longer term, we remain confident in our Distilling Solutions business as our whiskey inventories remain an important part of the still expanding American whiskey category,” said David Bratcher, CEO and president of MGP Ingredients.
He added, “We are pleased with our progress towards becoming a premier branded spirits company. Though further inventory tightening is a headwind in the near term, we expect our continued investments behind our brands portfolio to deliver attractive organic growth. In addition, we expect our Ingredient Solutions segment to have a stronger 2025 despite current transitory headwinds.”
2024 third quarter financial highlights compared to 2023 third quarter:
-
Consolidated sales decreased
24% to . Excluding the impact of the$161.5 million Atchison distillery, consolidated sales decreased by14% . -
Net income increased
82% to . Adjusted net income decreased$23.9 million 5% to . Net income margin increased 860 basis points to$28.8 million 14.8% . Adjusted net income margin increased by 350 basis points to17.8% . -
Basic earnings per common share (“EPS”) increased to
per share from$1.07 per share. Adjusted basic EPS decreased$0.59 5% to per share from$1.29 per share.$1.36 -
Consolidated gross profit decreased
10% to . Gross margin increased by 610 basis points to$65.8 million 40.8% . Excluding the impact of theAtchison distillery, adjusted gross margin increased 30 basis points to40.8% largely due to higher Branded Spirits margins. -
Adjusted EBITDA decreased
9% to . Adjusted EBITDA margin increased by 460 basis points to$45.7 million 28.3% . -
Capital expenditures were
year-to-date.$44 million - Net debt leverage ratio stands at approximately 1.3x as of September 30, 2024.
Consolidated Results
In the third quarter 2024, excluding the impact of the
Distilling Solutions
For the third quarter 2024, Distilling Solutions segment sales decreased
Branded Spirits
Branded Spirits segment third quarter 2024 sales decreased
Ingredient Solutions
Ingredient Solutions segment sales decreased
Additional Highlights
Advertising and promotion expenses increased
Corporate selling, general, and administrative (“SG&A”) expenses for the third quarter 2024 decreased
During the third quarter 2024, the fair value of the contingent consideration liability related to the Penelope acquisition increased by
The corporate effective tax rate for the third quarter 2024 was
2024 Financial Outlook
MGP reaffirmed its recently revised consolidated guidance for fiscal 2024:
-
Sales in the range of
to$695 million , following the closure of the$705 million Atchison distillery in December 2023. -
Adjusted EBITDA in the range of
to$196 million , inclusive of the add back of share-based compensation expense.$200 million -
Adjusted basic EPS in the
to$5.55 range, with approximately 22.1 million basic weighted average shares outstanding at the year end and effective tax rate of approximately$5.65 24% . -
Full year capital expenditures of
.$78 million
As is customary, we will share our 2025 financial outlook with our fourth quarter 2024 earnings release; however, we will provide additional commentary on our 2025 outlook in our conference call discussing our third quarter results.
Conference Call and Webcast Information
MGP Ingredients will host a conference call today, October 31, 2024, at 10 a.m. ET to discuss these results and current business trends. Investors can dial 844-308-6398 or 412-717-9605 (international) to listen to the live call. A live webcast will be available at “News and Events” section of the company’s Investor Relations website at ir.mgpingredients.com/news-events. A replay of the conference call will be available on the company’s website.
About MGP Ingredients, Inc.
MGP Ingredients, Inc. (Nasdaq: MGPI) is a leading producer of premium branded and distilled spirits, as well as food ingredient solutions. Since 1941, we have combined our expertise and energy aimed at formulating excellence, bringing product ideas to life collaboratively with our customers.
As one of the largest distillers in the
MGP’s branded spirits portfolio covers a wide spectrum of brands in every segment, including iconic brands from Luxco, which was founded in 1958 by the Lux Family. Luxco is a leading producer, supplier, importer, and bottler of beverage alcohol products. Our branded spirits mission is to meet the needs and exceed the expectations of consumers, associates, and business partners. Luxco’s award-winning spirits portfolio includes well-known brands from four distilleries:
In addition, our Ingredient Solutions segment offers specialty proteins and starches that help customers harness the power of plants and provide a host of functional, nutritional, and sensory benefits for a wide range of food products.
The transformation of American grain into something more is in the soul of our people, products, and history. We’re devoted to unlocking the creative potential of this extraordinary resource. For more information, visit mgpingredients.com.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation statements about the plans of MGP Ingredients, Inc. (the “Company” or “MGP”) to lower put away, scale down production, and optimize its cost structure; the Company’s sales, profitability, competitive positioning, and confidence in its business; whiskey category expansion; the Company’s ability to transition to becoming a branded spirits company, to grow, and to have a stronger 2025; and the Company’s 2024 outlook, including its expectations for sales, adjusted EBITDA, adjusted EPS, shares outstanding, tax rate, and capital expenditures. Forward looking statements are usually identified by or are associated with words such as “intend,” “plan,” “believe,” “estimate,” “expect,” “anticipate,” “project,” “forecast,” “hopeful,” “should,” “may,” “will,” “could,” “encouraged,” “opportunities,” “potential,” and similar terminology. These forward-looking statements reflect management’s current beliefs and estimates of future economic circumstances, industry conditions, Company performance, Company financial results, and Company financial condition and are not guarantees of future performance.
All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Factors that could cause actual results to differ materially from our expectations include without limitation any effects of changes in consumer preferences and purchases and our ability to anticipate or react to those changes; our ability to compete effectively; damage to our reputation or that of any of our key customers or their brands; failure to introduce successful new brands and products or have effective marketing or advertising; changes in public opinion about alcohol or our products; our reliance on our distributors to distribute our branded spirits; our reliance on fewer, more profitable customer relationships; interruptions in our operations or a catastrophic event at our facilities; decisions concerning the quantity of maturing stock of our aged distillate; warehouse expansion issues; our reliance on a limited number of suppliers; work disruptions or stoppages; climate change and measures to address climate change; our closure of our
Non-GAAP Financial Measures
In addition to reporting financial information in accordance with
MGP INGREDIENTS, INC. |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
||||||||||||||||
(Dollars in thousands, except share and per share amounts) |
||||||||||||||||
|
|
Quarter Ended
|
|
Year to Date Ended
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Sales |
|
$ |
161,461 |
|
|
$ |
211,624 |
|
|
$ |
522,829 |
|
|
$ |
621,635 |
|
Cost of sales |
|
|
95,646 |
|
|
|
138,176 |
|
|
|
310,987 |
|
|
|
402,068 |
|
Gross profit |
|
|
65,815 |
|
|
|
73,448 |
|
|
|
211,842 |
|
|
|
219,567 |
|
|
|
|
|
|
|
|
|
|
||||||||
Advertising and promotion expenses |
|
|
9,647 |
|
|
|
9,505 |
|
|
|
29,995 |
|
|
|
25,877 |
|
Selling, general, and administrative expenses |
|
|
17,204 |
|
|
|
21,570 |
|
|
|
60,942 |
|
|
|
65,615 |
|
Impairment of long-lived assets and other |
|
|
— |
|
|
|
18,334 |
|
|
|
137 |
|
|
|
18,334 |
|
Change in fair value of contingent consideration |
|
|
6,400 |
|
|
|
4,200 |
|
|
|
15,900 |
|
|
|
4,200 |
|
Operating income |
|
|
32,564 |
|
|
|
19,839 |
|
|
|
104,868 |
|
|
|
105,541 |
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
|
(2,174 |
) |
|
|
(2,353 |
) |
|
|
(6,398 |
) |
|
|
(4,630 |
) |
Other income (expense), net |
|
|
1,026 |
|
|
|
(25 |
) |
|
|
1,917 |
|
|
|
5 |
|
Income before income taxes |
|
|
31,416 |
|
|
|
17,461 |
|
|
|
100,387 |
|
|
|
100,916 |
|
|
|
|
|
|
|
|
|
|
||||||||
Income tax expense |
|
|
7,554 |
|
|
|
4,373 |
|
|
|
23,924 |
|
|
|
24,832 |
|
Net income |
|
|
23,862 |
|
|
|
13,088 |
|
|
|
76,463 |
|
|
|
76,084 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net loss attributable to noncontrolling interest |
|
|
43 |
|
|
|
123 |
|
|
|
162 |
|
|
|
324 |
|
Net income attributable to MGP Ingredients, Inc. |
|
|
23,905 |
|
|
|
13,211 |
|
|
|
76,625 |
|
|
|
76,408 |
|
|
|
|
|
|
|
|
|
|
||||||||
Income attributable to participating securities |
|
|
(257 |
) |
|
|
(129 |
) |
|
|
(828 |
) |
|
|
(760 |
) |
Net income used in earnings per common share calculation |
|
$ |
23,648 |
|
|
$ |
13,082 |
|
|
$ |
75,797 |
|
|
$ |
75,648 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
22,069,885 |
|
|
|
22,066,159 |
|
|
|
22,110,315 |
|
|
|
22,056,270 |
|
Diluted |
|
|
22,069,885 |
|
|
|
22,381,516 |
|
|
|
22,110,315 |
|
|
|
22,207,031 |
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per common share |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
1.07 |
|
|
$ |
0.59 |
|
|
$ |
3.43 |
|
|
$ |
3.43 |
|
Diluted |
|
$ |
1.07 |
|
|
$ |
0.58 |
|
|
$ |
3.43 |
|
|
$ |
3.41 |
|
MGP INGREDIENTS, INC. |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
||||||||
(Dollars in thousands) |
||||||||
|
September 30, 2024 |
|
December 31, 2023 |
|||||
ASSETS |
|
|
|
|||||
Current Assets: |
|
|
|
|||||
Cash and cash equivalents |
$ |
20,772 |
|
|
$ |
18,388 |
|
|
Receivables, net |
|
130,436 |
|
|
|
144,286 |
|
|
Inventory |
|
372,153 |
|
|
|
346,853 |
|
|
Prepaid expenses |
|
4,692 |
|
|
|
3,580 |
|
|
Refundable income taxes |
|
3,955 |
|
|
|
1,190 |
|
|
Total current assets |
|
532,008 |
|
|
|
514,297 |
|
|
|
|
|
|
|||||
Property, plant, and equipment |
|
533,386 |
|
|
|
489,646 |
|
|
Less accumulated depreciation and amortization |
|
(241,243 |
) |
|
|
(227,343 |
) |
|
Property, plant, and equipment, net |
|
292,143 |
|
|
|
262,303 |
|
|
Operating lease right-of-use assets, net |
|
14,910 |
|
|
|
13,975 |
|
|
Investment in joint ventures |
|
6,643 |
|
|
|
5,197 |
|
|
Intangible assets, net |
|
269,265 |
|
|
|
271,706 |
|
|
Goodwill |
|
321,544 |
|
|
|
321,544 |
|
|
Other assets |
|
4,106 |
|
|
|
3,326 |
|
|
TOTAL ASSETS |
$ |
1,440,619 |
|
|
$ |
1,392,348 |
|
|
|
|
|
|
|||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|||||
Current Liabilities: |
|
|
|
|||||
Current maturities of long-term debt |
$ |
6,400 |
|
|
$ |
6,400 |
|
|
Accounts payable |
|
53,717 |
|
|
|
73,594 |
|
|
Federal and state excise taxes payable |
|
2,482 |
|
|
|
2,251 |
|
|
Accrued expenses and other |
|
19,739 |
|
|
|
31,861 |
|
|
Total current liabilities |
|
82,338 |
|
|
|
114,106 |
|
|
|
|
|
|
|||||
Long-term debt, less current maturities |
|
87,784 |
|
|
|
85,305 |
|
|
Convertible senior notes |
|
195,784 |
|
|
|
195,544 |
|
|
Long-term operating lease liabilities |
|
11,688 |
|
|
|
11,292 |
|
|
Contingent consideration |
|
85,100 |
|
|
|
69,200 |
|
|
Other noncurrent liabilities |
|
3,053 |
|
|
|
4,763 |
|
|
Deferred income taxes |
|
61,987 |
|
|
|
63,071 |
|
|
Total liabilities |
|
527,734 |
|
|
|
543,281 |
|
|
Total equity |
|
912,885 |
|
|
|
849,067 |
|
|
TOTAL LIABILITIES AND TOTAL EQUITY |
$ |
1,440,619 |
|
|
$ |
1,392,348 |
|
|
MGP INGREDIENTS, INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
||||||||
(Dollars in thousands) |
||||||||
|
|
Year to Date Ended September 30, |
||||||
|
|
2024 |
|
2023 |
||||
Cash Flows from Operating Activities |
|
|
|
|
||||
Net income |
|
$ |
76,463 |
|
|
$ |
76,084 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
16,298 |
|
|
|
16,272 |
|
Impairment of long-lived assets and other |
|
|
137 |
|
|
|
18,334 |
|
Share-based compensation |
|
|
2,748 |
|
|
|
5,651 |
|
Equity method investment loss (gain) |
|
|
(1,446 |
) |
|
|
191 |
|
Deferred income taxes, including change in valuation allowance |
|
|
(1,084 |
) |
|
|
(2,112 |
) |
Change in fair value of contingent consideration |
|
|
15,900 |
|
|
|
4,200 |
|
Other, net |
|
|
292 |
|
|
|
376 |
|
Changes in operating assets and liabilities, net of effects of acquisition: |
|
|
|
|
||||
Receivables, net |
|
|
13,979 |
|
|
|
(14,980 |
) |
Inventory |
|
|
(24,979 |
) |
|
|
(42,015 |
) |
Prepaid expenses |
|
|
(1,091 |
) |
|
|
(1,517 |
) |
Income taxes payable (refundable) |
|
|
(2,765 |
) |
|
|
2,134 |
|
Accounts payable |
|
|
(10,627 |
) |
|
|
(10,069 |
) |
Accrued expenses and other |
|
|
(9,935 |
) |
|
|
(2,471 |
) |
Federal and state excise taxes payable |
|
|
231 |
|
|
|
(1,908 |
) |
Other, net |
|
|
(609 |
) |
|
|
435 |
|
Net cash provided by operating activities |
|
|
73,512 |
|
|
|
48,605 |
|
|
|
|
|
|
||||
Cash Flows from Investing Activities |
|
|
|
|
||||
Additions to property, plant, and equipment |
|
|
(52,850 |
) |
|
|
(42,062 |
) |
Purchase of business, net of cash acquired |
|
|
— |
|
|
|
(103,712 |
) |
Other, net |
|
|
(276 |
) |
|
|
(916 |
) |
Net cash used in investing activities |
|
|
(53,126 |
) |
|
|
(146,690 |
) |
|
|
|
|
|
||||
Cash Flows from Financing Activities |
|
|
|
|
||||
Payment of dividends and dividend equivalents |
|
|
(8,013 |
) |
|
|
(8,006 |
) |
Repurchase of Common Stock |
|
|
(12,235 |
) |
|
|
(801 |
) |
Proceeds from long-term debt |
|
|
70,000 |
|
|
|
105,000 |
|
Principal payments on long-term debt |
|
|
(67,800 |
) |
|
|
(18,000 |
) |
Net cash provided by (used in) financing activities |
|
|
(18,048 |
) |
|
|
78,193 |
|
|
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents |
|
|
46 |
|
|
|
33 |
|
Increase (decrease) in cash and cash equivalents |
|
|
2,384 |
|
|
|
(19,859 |
) |
Cash and cash equivalents, beginning of period |
|
|
18,388 |
|
|
|
47,889 |
|
Cash and cash equivalents, end of period |
|
$ |
20,772 |
|
|
$ |
28,030 |
|
MGP INGREDIENTS, INC. |
|||||||||||||||
SALES BY OPERATING SEGMENT |
|||||||||||||||
(Dollars in thousands) |
|||||||||||||||
|
DISTILLING SOLUTIONS SALES |
||||||||||||||
|
Quarter Ended September 30, |
Quarter versus Quarter Sales
|
|||||||||||||
|
2024 |
2023 |
$ Change |
% Change |
|||||||||||
Brown goods |
$ |
57,110 |
|
$ |
73,409 |
|
$ |
(16,299 |
) |
(22 |
)% |
||||
Warehouse services |
|
8,264 |
|
|
7,353 |
|
|
911 |
|
12 |
|
||||
White goods and other co-products |
|
6,545 |
|
|
31,091 |
|
|
(24,546 |
) |
(79 |
) |
||||
Total Distilling Solutions |
$ |
71,919 |
|
$ |
111,853 |
|
$ |
(39,934 |
) |
(36 |
)% |
|
BRANDED SPIRITS SALES |
||||||||||||||
|
Quarter Ended September 30, |
|
Quarter versus Quarter Sales
|
||||||||||||
|
2024 |
|
2023 |
|
$ Change |
|
% Change |
||||||||
Premium plus |
$ |
31,086 |
|
$ |
30,843 |
|
|
243 |
|
1 |
% |
||||
Mid |
|
14,788 |
|
|
17,650 |
|
|
(2,862 |
) |
(16 |
) |
||||
Value |
|
10,034 |
|
|
11,049 |
|
|
(1,015 |
) |
(9 |
) |
||||
Other |
|
6,716 |
|
|
7,277 |
|
|
(561 |
) |
(8 |
) |
||||
Total Branded Spirits |
$ |
62,624 |
|
$ |
66,819 |
|
$ |
(4,195 |
) |
(6 |
)% |
|
INGREDIENT SOLUTIONS SALES |
||||||||||||||
|
Quarter Ended September 30, |
Quarter versus Quarter Sales
|
|||||||||||||
|
2024 |
2023 |
$ Change |
% Change |
|||||||||||
Specialty wheat starches |
$ |
16,172 |
|
$ |
17,196 |
|
$ |
(1,024 |
) |
(6 |
)% |
||||
Specialty wheat proteins |
|
7,752 |
|
|
11,440 |
|
|
(3,688 |
) |
(32 |
) |
||||
Commodity wheat starches |
|
2,611 |
|
|
4,226 |
|
|
(1,615 |
) |
(38 |
) |
||||
Commodity wheat proteins |
|
383 |
|
|
90 |
|
|
293 |
|
326 |
|
||||
Total Ingredient Solutions |
$ |
26,918 |
|
$ |
32,952 |
|
$ |
(6,034 |
) |
(18 |
)% |
||||
|
|
|
|
|
MGP INGREDIENTS, INC. |
|||||||||||||||
SALES BY OPERATING SEGMENT |
|||||||||||||||
(Dollars in thousands) |
|||||||||||||||
|
DISTILLING SOLUTIONS SALES |
||||||||||||||
|
Year to Date Ended September 30, |
Year to Date versus Year to Date Sales
|
|||||||||||||
|
2024 |
2023 |
$ Change |
% Change |
|||||||||||
Brown goods |
$ |
198,884 |
|
$ |
214,857 |
|
$ |
(15,973 |
) |
(7 |
)% |
||||
Warehouse services |
|
24,612 |
|
|
20,958 |
|
|
3,654 |
|
17 |
|
||||
White goods and other co-products |
|
26,663 |
|
|
106,126 |
|
|
(79,463 |
) |
(75 |
) |
||||
Total Distilling Solutions |
$ |
250,159 |
|
$ |
341,941 |
|
$ |
(91,782 |
) |
(27 |
)% |
|
BRANDED SPIRITS SALES |
||||||||||||||
|
Year to Date Ended September 30, |
Year to Date versus Year to Date Sales
|
|||||||||||||
|
2024 |
2023 |
$ Change |
% Change |
|||||||||||
Premium plus |
$ |
82,699 |
|
$ |
73,352 |
|
$ |
9,347 |
|
13 |
% |
||||
Mid |
|
46,610 |
|
|
55,575 |
|
|
(8,965 |
) |
(16 |
) |
||||
Value |
|
31,698 |
|
|
36,048 |
|
|
(4,350 |
) |
(12 |
) |
||||
Other |
|
15,804 |
|
|
16,343 |
|
|
(539 |
) |
(3 |
) |
||||
Total Branded Spirits |
$ |
176,811 |
|
$ |
181,318 |
|
$ |
(4,507 |
) |
(2 |
)% |
|
INGREDIENT SOLUTIONS SALES |
||||||||||||||
|
Year to Date Ended September 30, |
Year to Date versus Year to Date Sales
|
|||||||||||||
|
2024 |
2023 |
$ Change |
% Change |
|||||||||||
Specialty wheat starches |
$ |
57,646 |
|
$ |
48,977 |
|
$ |
8,669 |
|
18 |
% |
||||
Specialty wheat proteins |
|
28,947 |
|
|
35,918 |
|
|
(6,971 |
) |
(19 |
) |
||||
Commodity wheat starches |
|
8,846 |
|
|
12,870 |
|
|
(4,024 |
) |
(31 |
) |
||||
Commodity wheat proteins |
|
420 |
|
|
611 |
|
|
(191 |
) |
(31 |
) |
||||
Total Ingredient Solutions |
$ |
95,859 |
|
$ |
98,376 |
|
$ |
(2,517 |
) |
(3 |
)% |
||||
|
|
|
|
|
MGP INGREDIENTS, INC. |
||||||||
OPERATING INCOME ROLLFORWARD |
||||||||
(Dollars in thousands) |
||||||||
Operating income, quarter versus quarter |
Operating
|
Change |
|
|||||
Operating income for the quarter ended September 30, 2023 |
$ |
19,839 |
|
|
|
|||
Increase in gross profit - Branded Spirits segment |
|
3,406 |
|
17 |
% |
|
||
Decrease in gross profit - Ingredient Solutions segment |
|
(6,403 |
) |
(32 |
) |
pp(a) |
||
Decrease in gross profit - Distilling Solutions segment |
|
(4,636 |
) |
(23 |
) |
pp |
||
Increase in advertising and promotion expenses |
|
(142 |
) |
(1 |
) |
pp |
||
Decrease in SG&A expenses |
|
4,366 |
|
22 |
|
pp |
||
Impairment of long-lived assets and other |
|
18,334 |
|
92 |
|
pp |
||
Change in fair value of contingent consideration |
|
(2,200 |
) |
(11 |
) |
pp |
||
Operating income for the quarter ended September 30, 2024 |
$ |
32,564 |
|
64 |
% |
|
Operating income, year to date versus year to date |
Operating
|
Change |
|
|||||
Operating income for the year to date ended September 30, 2023 |
$ |
105,541 |
|
|
|
|||
Decrease in gross profit - Ingredient Solutions segment |
|
(16,914 |
) |
(16 |
)% |
|
||
Increase in gross profit - Branded Spirits segment |
|
8,975 |
|
9 |
|
pp(a) |
||
Increase in gross profit - Distilling Solutions segment |
|
214 |
|
— |
|
pp |
||
Increase in advertising and promotion expenses |
|
(4,118 |
) |
(4 |
) |
pp |
||
Decrease in SG&A expenses |
|
4,673 |
|
4 |
|
pp |
||
Impairment of long-lived assets and other |
|
18,197 |
|
17 |
|
pp |
||
Change in fair value of contingent consideration |
|
(11,700 |
) |
(11 |
) |
pp |
||
Operating income for the year to date ended September 30, 2024 |
$ |
104,868 |
|
(1 |
)% |
|
||
(a) Percentage points (“pp”). |
MGP INGREDIENTS, INC. |
||||||||
EARNINGS PER COMMON SHARE (“EPS”) ROLLFORWARD |
||||||||
|
|
|
|
|||||
Change in EPS, quarter versus quarter |
|
EPS |
|
Change |
|
|||
Basic EPS for the quarter ended September 30, 2023 |
|
$ |
0.59 |
|
|
|
|
|
Change in operating income(b) |
|
|
0.43 |
|
|
73 |
% |
|
Change in interest expense, net(b) |
|
|
0.01 |
|
|
2 |
|
pp(a) |
Change in other income (expense), net(b) |
|
|
0.04 |
|
|
7 |
|
pp |
Change in effective tax rate |
|
|
0.01 |
|
|
2 |
|
pp |
Change in weighted average shares outstanding |
|
|
(0.01 |
) |
|
(2 |
) |
pp |
Basic and Diluted EPS for the quarter ended September 30, 2024 |
|
$ |
1.07 |
|
|
82 |
% |
|
Change in EPS, year to date versus year to date |
|
EPS |
|
Change |
|
|||
Basic EPS for the year to date ended September 30, 2023 |
|
$ |
3.43 |
|
|
|
|
|
Change in operating income(b) |
|
|
(0.02 |
) |
|
(1 |
)% |
|
Change in interest expense, net(b) |
|
|
(0.06 |
) |
|
(2 |
) |
pp(a) |
Change in other income (expense), net(b) |
|
|
0.07 |
|
|
3 |
|
pp |
Change in effective tax rate |
|
|
0.03 |
|
|
1 |
|
pp |
Change in weighted average shares outstanding |
|
|
(0.02 |
) |
|
(1 |
) |
pp |
Basic and Diluted EPS for the year to date ended September 30, 2024 |
|
$ |
3.43 |
|
|
— |
% |
|
(a) Percentage points (“pp”). |
||||||||
(b) Items are net of tax based on the effective tax rate for the base year (2023). |
||||||||
MGP INGREDIENTS, INC. |
|||||||||||||||
RECONCILIATION OF SELECTED GAAP MEASURES TO ADJUSTED NON-GAAP MEASURES (UNAUDITED) |
|||||||||||||||
(in thousands, except per share amounts) |
|||||||||||||||
|
Quarter Ended September 30, 2024 |
||||||||||||||
|
Operating Income |
|
Income before Income Taxes |
|
Net Income(b) |
|
MGP Earnings(a) |
|
Basic and Diluted EPS |
||||||
Reported GAAP Results |
$ |
32,564 |
|
$ |
31,416 |
|
$ |
23,862 |
|
$ |
23,648 |
|
$ |
1.07 |
|
Adjusted to remove: |
|
|
|
|
|
|
|
|
|
||||||
Fair value of contingent consideration(c) |
|
6,400 |
|
|
6,400 |
|
|
4,864 |
|
|
4,864 |
|
|
0.22 |
|
Business acquisition costs(d) |
|
15 |
|
|
15 |
|
|
11 |
|
|
11 |
|
|
— |
|
Unusual items costs(e) |
|
34 |
|
|
34 |
|
|
26 |
|
|
26 |
|
|
— |
|
Adjusted Non-GAAP results |
$ |
39,013 |
|
$ |
37,865 |
|
$ |
28,763 |
|
$ |
28,549 |
|
$ |
1.29 |
|
Quarter Ended September 30, 2023 |
|||||||||||||||||
|
Operating Income |
|
Income before Income Taxes |
|
Net Income |
|
MGP Earnings(a) |
|
Basic EPS |
|
Diluted EPS |
|||||||
Reported GAAP Results |
$ |
19,839 |
|
$ |
17,461 |
|
$ |
13,088 |
|
$ |
13,082 |
|
$ |
0.59 |
|
$ |
0.58 |
|
Adjusted to remove: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Impairment of long-lived assets and other(f) |
|
18,334 |
|
|
18,334 |
|
|
13,750 |
|
|
13,750 |
|
|
0.62 |
|
|
0.61 |
|
Fair value of contingent consideration(c) |
|
4,200 |
|
|
4,200 |
|
|
3,150 |
|
|
3,150 |
|
|
0.14 |
|
|
0.14 |
|
Business acquisition costs(d) |
|
314 |
|
|
314 |
|
|
235 |
|
|
235 |
|
|
0.01 |
|
|
0.01 |
|
Adjusted Non-GAAP results |
$ |
42,687 |
|
$ |
40,309 |
|
$ |
30,223 |
|
$ |
30,217 |
|
$ |
1.36 |
|
$ |
1.34 |
|
Year to Date Ended September 30, 2024 |
||||||||||||||
|
Operating Income |
Income before Income Taxes |
Net Income(b) |
MGP Earnings(a) |
Basic and Diluted EPS |
||||||||||
Reported GAAP Results |
$ |
104,868 |
$ |
100,387 |
$ |
76,463 |
$ |
75,797 |
$ |
3.43 |
|||||
Adjusted to remove: |
|
|
|
|
|
||||||||||
Impairment of long-lived assets and other(f) |
|
137 |
|
137 |
|
104 |
|
104 |
|
— |
|||||
Fair value of contingent consideration(c) |
|
15,900 |
|
15,900 |
|
12,116 |
|
12,116 |
|
0.55 |
|||||
Business acquisition costs(d) |
|
101 |
|
101 |
|
77 |
|
77 |
|
— |
|||||
Executive transition costs(g) |
|
1,218 |
|
1,218 |
|
928 |
|
928 |
|
0.04 |
|||||
Unusual items costs(e) |
|
1,673 |
|
1,673 |
|
1,275 |
|
1,275 |
|
0.06 |
|||||
Adjusted Non-GAAP results |
$ |
123,897 |
$ |
119,416 |
$ |
90,963 |
$ |
90,297 |
$ |
4.08 |
|
Year to Date Ended September 30, 2023 |
|||||||||||||||||
|
Operating Income |
|
Income before Income Taxes |
|
Net Income |
|
MGP Earnings(a) |
|
Basic EPS |
|
Diluted EPS |
|||||||
Reported GAAP Results |
$ |
105,541 |
|
$ |
100,916 |
|
$ |
76,084 |
|
$ |
75,648 |
|
$ |
3.43 |
|
|
3.41 |
|
Adjusted to remove: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Impairment of long-lived assets and other(f) |
|
18,334 |
|
|
18,334 |
|
|
13,824 |
|
|
13,824 |
|
|
0.63 |
|
|
0.62 |
|
Fair value of contingent consideration(c) |
|
4,200 |
|
|
4,200 |
|
|
3,167 |
|
|
3,167 |
|
|
0.14 |
|
|
0.14 |
|
Business acquisition costs(d) |
|
1,814 |
|
|
1,814 |
|
|
1,368 |
|
|
1,368 |
|
|
0.06 |
|
|
0.06 |
|
Adjusted Non-GAAP results |
$ |
129,889 |
|
$ |
125,264 |
|
$ |
94,443 |
|
$ |
94,007 |
|
$ |
4.26 |
|
$ |
4.23 |
|
MGP INGREDIENTS, INC.
Description of Non-GAAP items
(a) |
MGP Earnings is defined as "Net income used in Earnings Per Common Share calculation." |
|
|
|
|
(b) |
The tax rate used for non-GAAP items for the quarter and year to date ended September 30, 2024 was |
|
|
|
|
(c) |
Fair value of contingent consideration relates to the quarterly adjustment of the contingent consideration liability related to the acquisition of Penelope Bourbon LLC. It is included in the Condensed Consolidated Statement of Income as a component of operating income and relates to the Branded Spirits segment. |
|
|
|
|
(d) |
Business acquisition costs are included in the Condensed Consolidated Statement of Income within the selling, general, and administrative line item and include transaction and integration costs associated with the acquisition of Penelope Bourbon LLC. |
|
|
|
|
(e) |
The unusual items costs are included in the Condensed Consolidated Statement of Income within the selling, general and administrative line item. The adjustment includes professional and legal costs associated with special projects. |
|
|
|
|
(f) |
The impairment of long-lived assets and other relates to impairments of assets as well as miscellaneous expenses in connection with the closure of the |
|
|
|
|
(g) |
The executive transition costs are included in the Condensed Consolidated Statement of Income within the selling, general, and administrative line item. The adjustment includes costs related to the transition of certain executive positions. |
|
|
|
|
(h) |
Adjusted net income margin is defined as adjusted net income divided by net sales. |
|
|
|
|
(i) |
Adjusted EBITDA margin is defined as adjusted EBITDA divided by net sales. |
|
MGP INGREDIENTS, INC. |
||||||||||||||||
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (UNAUDITED) |
||||||||||||||||
(in thousands) |
||||||||||||||||
|
Quarter Ended
|
|
Year to Date Ended
|
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Net Income |
$ |
23,862 |
|
|
$ |
13,088 |
|
|
$ |
76,463 |
|
|
$ |
76,084 |
|
|
Interest expense |
|
2,174 |
|
|
|
2,353 |
|
|
|
6,398 |
|
|
|
4,630 |
|
|
Income tax expense |
|
7,554 |
|
|
|
4,373 |
|
|
|
23,924 |
|
|
|
24,832 |
|
|
Depreciation and amortization |
|
5,680 |
|
|
|
5,782 |
|
|
|
16,298 |
|
|
|
16,272 |
|
|
Share based compensation |
|
767 |
|
|
|
2,014 |
|
|
|
2,748 |
|
|
|
5,651 |
|
|
Equity method investment loss (gain) |
|
(832 |
) |
|
|
(388 |
) |
|
|
(1,446 |
) |
|
|
191 |
|
|
Impairment of long-lived assets and other |
|
— |
|
|
|
18,334 |
|
|
|
137 |
|
|
|
18,334 |
|
|
Fair value of contingent consideration |
|
6,400 |
|
|
|
4,200 |
|
|
|
15,900 |
|
|
|
4,200 |
|
|
Business acquisition costs |
|
15 |
|
|
|
314 |
|
|
|
101 |
|
|
|
1,814 |
|
|
Executive transition costs |
|
— |
|
|
|
— |
|
|
|
1,218 |
|
|
|
— |
|
|
Unusual items costs |
|
34 |
|
|
|
— |
|
|
|
1,673 |
|
|
|
— |
|
|
Adjusted EBITDA |
$ |
45,654 |
|
|
$ |
50,070 |
|
|
$ |
143,414 |
|
|
$ |
152,008 |
|
The non-GAAP adjusted EBITDA measure is defined as earnings before interest expense, income tax expense, depreciation and amortization, share based compensation, equity method investment loss (gain), impairment of long-lived assets and other, fair value of contingent consideration, business acquisition costs, executive transition costs, and unusual items costs.
See "Reconciliation of selected GAAP measure to adjusted non-GAAP measures" and "Description of Non-GAAP items" for further details.
MGP INGREDIENTS, INC. |
||||||||||||||||||||
NET DEBT LEVERAGE |
||||||||||||||||||||
(in thousands) |
||||||||||||||||||||
|
Quarter Ended
|
|
Quarter Ended
2024 |
|
Quarter Ended
2024 |
|
Quarter Ended
2024 |
|
TTM(a) September 30, 2024 |
|||||||||||
Net income |
$ |
31,046 |
|
|
$ |
20,584 |
|
|
$ |
32,017 |
|
|
$ |
23,862 |
|
|
$ |
107,509 |
|
|
Interest expense |
|
2,017 |
|
|
|
2,019 |
|
|
|
2,205 |
|
|
|
2,174 |
|
|
|
8,415 |
|
|
Income tax expense |
|
9,784 |
|
|
|
6,262 |
|
|
|
10,108 |
|
|
|
7,554 |
|
|
|
33,708 |
|
|
Depreciation and amortization |
|
5,841 |
|
|
|
5,289 |
|
|
|
5,329 |
|
|
|
5,680 |
|
|
|
22,139 |
|
|
Share based compensation |
|
1,850 |
|
|
|
1,116 |
|
|
|
865 |
|
|
|
767 |
|
|
|
4,598 |
|
|
Equity method investment loss (gain) |
|
146 |
|
|
|
296 |
|
|
|
(910 |
) |
|
|
(832 |
) |
|
|
(1,300 |
) |
|
Impairment of long-lived assets and other |
|
1,057 |
|
|
|
116 |
|
|
|
21 |
|
|
|
— |
|
|
|
1,194 |
|
|
Fair value of contingent consideration |
|
2,900 |
|
|
|
4,100 |
|
|
|
5,400 |
|
|
|
6,400 |
|
|
|
18,800 |
|
|
Business acquisition costs |
|
246 |
|
|
|
71 |
|
|
|
15 |
|
|
|
15 |
|
|
|
347 |
|
|
Executive transition costs |
|
3,134 |
|
|
|
375 |
|
|
|
843 |
|
|
|
— |
|
|
|
4,352 |
|
|
Unusual items costs |
|
— |
|
|
|
— |
|
|
|
1,639 |
|
|
|
34 |
|
|
|
1,673 |
|
|
Adjusted EBITDA |
$ |
58,021 |
|
|
$ |
40,228 |
|
|
$ |
57,532 |
|
|
$ |
45,654 |
|
|
$ |
201,435 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total debt |
|
|
|
|
|
|
|
|
$ |
289,968 |
|
|||||||||
Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
20,772 |
|
|||||||||
Net debt |
|
|
|
|
|
|
|
|
$ |
269,196 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net debt leverage ratio(b) |
|
|
|
|
|
|
|
|
|
1.3 |
|
|||||||||
(a) TTM is defined as trailing twelve months |
||||||||||||||||||||
(b) Net debt leverage ratio is defined as net debt divided by adjusted EBITDA |
||||||||||||||||||||
See "Reconciliation of selected GAAP measure to adjusted non-GAAP measures" and "Description of Non-GAAP items" for further details on selected non-GAAP items. |
MGP INGREDIENTS, INC. |
||||||||||||||||
DILUTIVE SHARES OUTSTANDING CALCULATION (UNAUDITED) |
||||||||||||||||
|
Quarter Ended
|
|
Year to Date Ended
|
|||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Principal amount of the bonds |
$ |
201,250,000 |
|
|
$ |
201,250,000 |
|
|
$ |
201,250,000 |
|
|
$ |
201,250,000 |
|
|
Par value |
$ |
1,000 |
|
|
$ |
1,000 |
|
|
$ |
1,000 |
|
|
$ |
1,000 |
|
|
Number of bonds outstanding(a) |
|
201,250 |
|
|
|
201,250 |
|
|
|
201,250 |
|
|
|
201,250 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Initial conversion rate |
|
10.3911 |
|
|
|
10.3911 |
|
|
|
10.3911 |
|
|
|
10.3911 |
|
|
Conversion price |
$ |
96.23620 |
|
|
$ |
96.23620 |
|
|
$ |
96.23620 |
|
|
$ |
96.23620 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Average share price(b) |
$ |
82.66859 |
|
|
$ |
113.32587 |
|
|
$ |
82.41075 |
|
|
$ |
103.71316 |
|
|
Impact of conversion(c) |
$ |
172,877,289 |
|
|
$ |
236,988,065 |
|
|
$ |
172,338,092 |
|
|
$ |
216,885,881 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Cash paid for principal |
|
(201,250,000 |
) |
|
|
(201,250,000 |
) |
|
|
(201,250,000 |
) |
|
|
(201,250,000 |
) |
|
Conversion premium |
$ |
— |
|
|
$ |
35,738,065 |
|
|
$ |
— |
|
|
$ |
15,635,881 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Average share price |
$ |
82.66859 |
|
|
$ |
113.32587 |
|
|
$ |
82.41075 |
|
|
$ |
103.71316 |
|
|
Conversion premium in shares(d) (e) |
|
— |
|
|
|
315,357 |
|
|
|
— |
|
|
|
150,761 |
|
(a) |
Number of bonds outstanding is calculated by taking the principal amount of the bonds divided by the par value. |
|
|
|
|
(b) |
Average share price is calculated by taking the average of the daily closing share price for the period. If the average share price is less than the conversion price of |
|
|
|
|
(c) |
Impact of conversion is calculated by taking the number of bonds outstanding multiplied by the initial conversion rate multiplied by the average share price. If the average share price is less than the conversion price then the impact of conversion is zero. |
|
|
|
|
(d) |
The impacts of the Convertible Senior Notes were included in the diluted weighted average common shares outstanding if the impact was dilutive. The Convertible Senior Notes would only have a dilutive impact if the average market price per share during the quarter and year to date periods exceed the conversion price of |
|
|
|
|
(e) |
Conversion premium in shares is calculated by taking the conversion premium divided by the average share price. If the average share price is less than the conversion price, then the conversion premium in shares is zero. |
MGP INGREDIENTS, INC. |
|||||||||||||||
Impact of the Closure of the Atchison Distillery |
|||||||||||||||
Segment Operating Results and Pro-Forma Results |
|||||||||||||||
Quarter Ended September 30, 2024 |
|||||||||||||||
(UNAUDITED) (Dollars in thousands) |
|||||||||||||||
|
Distilling Solutions |
|
|||||||||||||
|
Quarter Ended
|
|
Increase/(Decrease) |
|
|||||||||||
|
As Reported(a) |
|
Pro-Forma(b) |
|
$ Change |
|
% Change |
|
|||||||
Brown goods |
$ |
57,110 |
|
$ |
57,110 |
|
$ |
— |
— |
% |
|
||||
Warehouse services |
|
8,264 |
|
|
8,264 |
|
|
— |
— |
|
|
||||
White goods and other co-products |
|
6,545 |
|
|
6,545 |
|
|
— |
— |
|
|
||||
Total Sales |
$ |
71,919 |
|
$ |
71,919 |
|
$ |
— |
— |
% |
|
||||
|
|
|
|
|
|
||||||||||
Gross profit |
$ |
28,644 |
|
$ |
28,644 |
|
$ |
— |
— |
% |
|
||||
Gross margin % |
|
39.8 |
% |
|
39.8 |
% |
|
— |
|
pp(c) |
|
Ingredient Solutions |
|
|||||||||||||
|
Quarter Ended
|
|
Increase/(Decrease) |
|
|||||||||||
|
As Reported(a) |
|
Pro-Forma(b) |
|
$ Change |
|
% Change |
|
|||||||
Specialty wheat starches |
$ |
16,172 |
|
|
$ |
16,172 |
|
|
$ |
— |
|
— |
% |
|
|
Specialty wheat proteins |
|
7,752 |
|
|
|
7,752 |
|
|
|
— |
|
— |
|
|
|
Commodity wheat starches |
|
2,611 |
|
|
|
2,611 |
|
|
|
— |
|
— |
|
|
|
Commodity wheat proteins |
|
383 |
|
|
|
383 |
|
|
|
— |
|
— |
|
|
|
Total Sales |
$ |
26,918 |
|
|
$ |
26,918 |
|
|
$ |
— |
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Gross profit |
$ |
4,725 |
|
|
$ |
4,725 |
|
|
$ |
— |
(d) |
— |
% |
|
|
Gross margin % |
|
17.6 |
% |
|
|
17.6 |
% |
|
|
|
— |
|
pp(c) |
|
Consolidated |
|
|||||||||||||
|
Quarter Ended
|
|
Increase/(Decrease) |
|
|||||||||||
|
As Reported(a) |
|
Pro-Forma(b) |
|
$ Change |
|
% Change |
|
|||||||
Sales |
$ |
161,461 |
|
|
$ |
161,461 |
|
|
$ |
— |
|
— |
% |
|
|
Gross profit |
$ |
65,815 |
|
|
$ |
65,815 |
|
|
$ |
— |
|
— |
% |
|
|
Gross margin % |
|
40.8 |
% |
|
|
40.8 |
% |
|
|
|
— |
|
pp(c) |
(a) |
Represents actual results of the Company for the quarter ended September 30, 2024, as reported in the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2024. |
|
(b) |
Represents the Company's results for the quarter ended September 30, 2024 excluding results associated with the Company's |
|
(c) |
Percentage points (“pp”). |
|
(d) |
There was no reduction in gross profit for the Ingredient Solutions segment as the Company is no longer receiving an intercompany credit for the waste starch slurry by-product since the closure of the distillery in |
|
MGP INGREDIENTS, INC. |
||||||||||||||||
Impact of the Closure of the Atchison Distillery |
||||||||||||||||
Segment Operating Results and Pro-Forma Results |
||||||||||||||||
Quarter Ended September 30, 2023 |
||||||||||||||||
(UNAUDITED) (Dollars in thousands) |
||||||||||||||||
|
Distilling Solutions |
|
||||||||||||||
|
Quarter Ended
|
|
Increase/(Decrease) |
|
||||||||||||
|
As Reported(a) |
|
Pro-Forma(b) |
|
$ Change |
|
% Change |
|
||||||||
Brown goods |
$ |
73,409 |
|
|
$ |
73,409 |
|
|
$ |
— |
|
|
— |
% |
|
|
Warehouse services |
|
7,353 |
|
|
|
7,353 |
|
|
|
— |
|
|
— |
|
|
|
White goods and other co-products |
|
31,091 |
|
|
|
6,430 |
|
|
|
(24,661 |
) |
|
(79 |
) |
|
|
Total Sales |
$ |
111,853 |
|
|
$ |
87,192 |
|
|
$ |
(24,661 |
) |
|
(22 |
)% |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gross profit |
$ |
33,280 |
|
|
$ |
37,310 |
|
|
$ |
4,030 |
|
|
12 |
% |
|
|
Gross margin % |
|
29.8 |
% |
|
|
42.8 |
% |
|
|
|
13.0 |
|
pp(c) |
|
Ingredient Solutions |
|
||||||||||||||
|
Quarter Ended
|
|
Increase/(Decrease) |
|
||||||||||||
|
As Reported(a) |
|
Pro-Forma(b) |
|
$ Change |
|
% Change |
|
||||||||
Specialty wheat starches |
$ |
17,196 |
|
|
$ |
17,196 |
|
|
$ |
— |
|
|
— |
% |
|
|
Specialty wheat proteins |
|
11,440 |
|
|
|
11,440 |
|
|
|
— |
|
|
— |
|
|
|
Commodity wheat starches |
|
4,226 |
|
|
|
4,226 |
|
|
|
— |
|
|
— |
|
|
|
Commodity wheat proteins |
|
90 |
|
|
|
90 |
|
|
|
— |
|
|
— |
|
|
|
Total Sales |
$ |
32,952 |
|
|
$ |
32,952 |
|
|
$ |
— |
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gross profit |
$ |
11,128 |
|
|
$ |
9,408 |
|
|
$ |
(1,720 |
) |
(d) |
(15 |
)% |
|
|
Gross margin % |
|
33.8 |
% |
|
|
28.6 |
% |
|
|
|
(5.2 |
) |
pp(c) |
|
Consolidated |
|
||||||||||||||
|
Quarter Ended
|
|
Increase/(Decrease) |
|
||||||||||||
|
As Reported(a) |
|
Pro-Forma(b) |
|
$ Change |
|
% Change |
|
||||||||
Sales |
$ |
211,624 |
|
|
$ |
186,963 |
|
|
$ |
(24,661 |
) |
|
(12 |
)% |
|
|
Gross profit |
$ |
73,448 |
|
|
$ |
75,758 |
|
|
$ |
2,310 |
|
|
3 |
% |
|
|
Gross margin % |
|
34.7 |
% |
|
|
40.5 |
% |
|
|
|
5.8 |
|
pp(c) |
(a) |
Represents actual results of the Company for the quarter ended September 30, 2023, as reported in the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2023. |
|
(b) |
Represents the Company's results for the quarter ended September 30, 2023 excluding results associated with the Company's |
|
(c) |
Percentage points (“pp”). |
|
(d) |
The reduction in gross profit for the Ingredient Solutions segment is the result of increased cost of goods sold from no longer receiving an intercompany credit for the waste starch slurry by-product purchased by the adjoined |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241031029666/en/
For More Information
Investors:
Amit Sharma
amit.sharma@mgpingredients.com
Media:
Greg Manis
greg.manis@mgpingredients.com
913-360-5440
Source: MGP Ingredients, Inc.
FAQ
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