Ralcorp Holdings – RAH – Reported results for the quarter

Ralcorp Holdings, Inc. (NYSE: RAH) reported results for the quarter ended September 30, 2012.

• Net sales up 14% for the year and up 8% in the quarter
• Adjusted diluted EPS $2.97 for the year, up 11%, and $.71, or flat, in the quarter
• Adjusted diluted EPS excluding acquisition-related amortization up 16% for the year
• Fiscal 2012 acquisitions contributed approximately $.30 to adjusted diluted EPS for the year
• Bloomfield issues, now mitigated, had a $5.8 million negative impact in the quarter

Ralcorp’s results include the effects of acquisitions completed during fiscal 2012, including the North American private-brand refrigerated dough business of Sara Lee Corp. (“Refrigerated Dough”), Pastificio Annoni S.p.A. (“Annoni”), Petri Baking Products, Inc. (“Petri”), and Gelit S.r.l. (“Gelit”).  The operations of the Post cereals business are presented as discontinued operations (and excluded from continuing operations) for all periods.  Unless otherwise indicated, all comparisons of results in the following discussions are for the fourth quarter ended September 30, 2012 relative to the fourth quarter ended September 30, 2011.

• Net Sales grew as a result of acquisitions completed during fiscal 2012, primarily Refrigerated Dough and Petri, as well as higher net pricing in response to rising commodity costs, partially offset by lower volumes.
• Diluted Earnings per Share (“EPS”) in this year’s and last year’s fourth quarter were negatively impacted by special items as provided for in the attached reconciliations of non-GAAP measures, primarily non-cash loss on investment in Post, non-cash impairment of intangible assets, restructuring and plant closure costs.  The effects of all of the special items are excluded from adjusted diluted EPS from continuing operations (“Adjusted Diluted EPS”).  Adjusted diluted EPS excluding acquisition-related amortization (“Adjusted Diluted EPS Excl. Acq.-related Amort.”) excludes the effect of normal amortization of intangible assets that are only recorded through business acquisitions (mostly customer relationships and trademarks) with a combined impact of $.21 per share and $.15 per share in the three months ended September 30, 2012 and 2011, respectively.
• Acquisitions contributed approximately $.05 to Adjusted Diluted EPS for the fourth quarter.

About Ralcorp Holdings, Inc. – RAH

Ralcorp (RAH) produces a variety of private‐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.  RAH’s 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 and refrigerated doughs; dry pasta; and frozen pasta meals.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.