MANKATO, MINNESOTA -- (Marketwired) -- 05/07/13 -- Ridley Inc. (TSX: RCL) today reported its financial results for the three and nine months ended March 31, 2013. All currency amounts are stated in U.S. dollars unless otherwise noted.
For the three months ended March 31, 2013, Ridley's earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations were $10.7 million compared to $9.6 million last year. Net income from continuing operations (net of income tax expense) for the period was $5.7 million ($0.45 per share) compared to $3.7 million ($0.29 per share) last year. Consolidated net income (after income taxes) for the quarter was $5.6 million ($0.44 per share) compared to $4.0 million ($0.30 per share) last year.
Ridley also reported today that it has declared a special cash dividend on its common stock of CAD $1.50 per share payable on May 31, 2013 to shareholders of record on May 21, 2013. The special dividend of approximately CAD $19.2 million is not indicative of any intention at the present time to initiate a regular dividend payment to shareholders.
For the nine months year-to-date, Ridley reported EBITDA from continuing operations of $31.5 million compared to $22.0 million for the same period last year. Net income from continuing operations (net of income tax expense) for the year-to-date was $16.9 million ($1.32 per share) compared to $9.1 million ($0.71 per share) last year. Consolidated net income for the year-to-date was $17.4 million ($1.36 per share) compared to $8.6 million ($0.67 per share) last year.
The increase of $1.1 million in Ridley's EBITDA for the third quarter of fiscal 2013 was the result of higher gross profits over last year that followed from improved average sales margins and growth in sales tonnage of higher value added products, particularly feed supplements and blocks, and the earnings contribution from a business acquisition, Stockade Brands, made earlier this year. Ridley's revenues from continuing operations grew by 5.9% to $144.6 million in the third quarter this year, primarily a result of higher raw material prices relative to the same period last year and a continuing shift in product mix towards higher value added products.
Overall tonnage volumes were lower by 1% from the same period last year. Sales volumes were stronger in the prior year as economic conditions for livestock producers in fiscal 2012 were relatively more favorable to feed demand than the present year. Gross profits increased by 11.3% in the third quarter to $22.3 million as average unit margins increased as a result of the continuing shift in product mix to higher value added products.
U.S. Feed Operations (USFO) reported a $3.1 million increase in operating income for the third quarter this year on higher average margins, increased volumes of value added products and reduced operating costs. USFO earnings last year included a charge of $2.0 million for the closure of two feed production facilities in fiscal 2012. Ridley Block Operations (RBO) reported a $0.2 million increase in operating income on improved unit margins and the contribution from Stockade Brands. Ridley Feed Ingredients (RFI) reported operating income of $0.7 million compared to $1.0 million last year on reduced volumes and higher administrative expenses.
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