Consolidated gross profit from continuing operations in the third quarter of fiscal 2013 was $22.3 million compared to $20.0 million in the same period last year. The increase of $2.3 million in gross profit in the third quarter was largely the result of the continuing shift in product mix to higher value-added products, particularly feed supplements and blocks, and an increase in average unit margins relative to last year when feed ingredient prices were declining.
Operating expenses, which include technical services, selling, administration expenses and research and development, were $13.3 compared to $14.2 million last year. Operating expenses last year included a $0.3 million loss on the sale of facilities and charges of $1.7 million for restructuring and plant impairment related to the closure of two feed production facilities in fiscal 2012. Excluding exceptions, the increase of $1.1 million in operating expenses over last year reflects generally higher sales and marketing expenditures as well as an increase in reserves for performance based employee incentives.
EBITDA is comprised of operating income of continuing operations before depreciation, amortization and exceptions. For the three months ended March 31, 2013 EBITDA was $10.7 million compared to $9.6 million for the same period last year. The increase of $1.1 million in EBITDA is mainly comprised of the $2.3 million increase in gross profit, partly offset by the $1.2 million increase in overhead expenses. There were no material exceptions in the third quarter of this year. As noted above, exceptions last year totaled $2.0 million from the closure of two feed production facilities in fiscal 2012.
Net income from continuing operations, net of income tax expense, for the third quarter of fiscal 2013 was $5.7 million ($0.45 per share) compared to $3.7 million ($0.29 per share) in the same period of fiscal 2012.
Discontinued operations are comprised of the Company's feed manufacturing business in Canada, previously reported as the Canadian Feed Operations (CFO) segment, which was merged into a limited partnership with Masterfeeds Inc. in the second quarter this year. Prior period results of CFO have been re- presented as discontinued operations. Net loss from discontinued operations in the third quarter of fiscal 2013 was $0.1 million compared to net income of $0.2 million last year.
The Company owns a non-controlling interest in the limited partnership, Masterfeeds LP. The Company's share of the earnings of Masterfeeds LP is reported as share of income of associate, which amounted to $0.3 million in the third quarter of fiscal 2013.
Including income from discontinued operations, the Company reported net income after taxes for the third quarter of $5.6 million ($0.44 per share) compared to $4.0 million ($0.30 per share) in the same period last year.
Consolidated Nine Months Results
For the nine months ended March 31, 2013, revenue of $444.7 million from continuing operations was $35.0 million higher than the same period last year. Higher feed ingredient prices accounted for the major part of the increase in revenues in the nine months of fiscal 2013. An increase of 1.7% in sales volume, mainly in feed supplements and blocks, also contributed to the 8.5% increase in sales revenue in the year- to-date. Factors bearing on sales volume in the nine months of fiscal 2013 included generally favorable economic conditions for livestock and poultry producers and increased demand for feed supplementation during the drought in the U.S.
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