-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WpvSxjnwkAtGWq5EbQePaYPeshcSyOcWcZhWJYMERu24rv8kEZkdwF1n+O+T8Csa f+uMptXni/GxAKL2u1YFYw== 0001035704-07-000040.txt : 20070110 0001035704-07-000040.hdr.sgml : 20070110 20070110113203 ACCESSION NUMBER: 0001035704-07-000040 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070108 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070110 DATE AS OF CHANGE: 20070110 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PENFORD CORP CENTRAL INDEX KEY: 0000739608 STANDARD INDUSTRIAL CLASSIFICATION: GRAIN MILL PRODUCTS [2040] IRS NUMBER: 911221360 STATE OF INCORPORATION: WA FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-11488 FILM NUMBER: 07522325 BUSINESS ADDRESS: STREET 1: 7094 SOUTH REVERE PARKWAY CITY: CENTENNIAL STATE: CO ZIP: 80112-3932 BUSINESS PHONE: 303-649-1900 MAIL ADDRESS: STREET 1: 7094 SOUTH REVERE PARKWAY CITY: CENTENNIAL STATE: CO ZIP: 80112-3932 FORMER COMPANY: FORMER CONFORMED NAME: PENWEST LTD DATE OF NAME CHANGE: 19920703 8-K 1 d42676e8vk.htm FORM 8-K e8vk
 

 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 8, 2007
Penford Corporation
(Exact name of registrant as specified in its charter)
         
Washington
(State or other jurisdiction
of incorporation)
  0-11488
(Commission File Number)
  91-1221360
(IRS Employer
Identification No.)
     
7094 South Revere Parkway,
Centennial, Colorado

(Address of principal executive offices
   
80112-3932

(Zip Code)
303-649-1900
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 


 

Item 2.02: Results of Operations and Financial Condition
On January 8, 2007, Penford Corporation issued a press release reporting its financial results for the three months ended November 30, 2006. A copy of the Registrant’s press release containing this information is furnished as Exhibit 99.1 to this Report on Form 8-K and is incorporated herein by reference.
The information contained in Item 2.02 of this Current Report on Form 8-K, including the exhibit attached hereto, is being furnished to the Securities and Exchange Commission and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liabilities of that Section, nor shall it be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended.
Item 9.01: Financial Statements and Exhibits
(d) Exhibits
     
Exhibit No.   Description
 
   
99.1
  Press release dated January 8, 2007

 


 

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
         
  Penford Corporation
(Registrant)
 
 
January 10, 2007  /s/ Steven O. Cordier    
  Steven O. Cordier   
  Senior Vice President and Chief Financial Officer   
 

 


 

EXHIBIT INDEX
     
Exhibit No.   Description
 
   
99.1
  Press release dated January 8, 2007

 

EX-99.1 2 d42676exv99w1.htm PRESS RELEASE exv99w1
 

Exhibit 99.1
     
Contacts:
  Steven O. Cordier
 
  Senior Vice President and CFO
 
  Penford Corporation
 
  303-649-1900
 
  steve.cordier@penx.com
Penford Corporation Reports Record First Quarter Fiscal 2007 Sales
Gross Margin Rises 27% on Sales Gain and Lower Manufacturing Costs
CENTENNIAL, Co., January 8, 2007 — Penford Corporation (Nasdaq: PENX), a global leader in ingredient systems for food and industrial applications, today reported that consolidated sales for the first quarter of fiscal 2007 rose 10% to a record $85.5 million from $77.9 million a year ago. Consolidated gross margin rose to $13.2 million from $10.4 million a year ago. First quarter operating income increased to $4.5 million from $1.2 million in fiscal 2006. Net income for the quarter ended November 30, 2006 was $2.6 million, or $0.28 per diluted share, compared to net income of $0.2 million, or $0.02 per diluted share, for the same quarter last year.
Higher volume and unit selling prices contributed equally to the revenue increase. The gross margin increase was driven by sales gains and lower manufacturing costs. Gross margin as a percent of sales expanded to 15.4% from 13.3% a year ago as unit costs for energy, labor and maintenance declined. Consolidated operating expenses decreased to $7.1 million from $7.7 million last year, reflecting a reduction of $0.6 million in employee costs from the prior year.
First quarter non-operating income was $0.5 million compared with $0.4 million a year ago. Quarterly interest expense of $1.3 million was comparable to last year. The Company will capitalize interest expense associated with the ethanol construction project. Approximately $2 million of the $75 million total debt outstanding at November 30, 2006 was assigned to the ethanol project.

 


 

Segment Results
First quarter fiscal 2007 sales at the Industrial Ingredients business rose 14% to $44.0 million. Volume expanded 4%, increases in average unit selling prices contributed 3%, and the “pass through” impact from higher corn prices added another 7% to total sales. Quarterly gross margins as a percent of sales increased to 13.6% from 9.3% a year ago on revenue gains, higher plant utilization rates, and reduced production costs. Lower energy costs contributed $1.8 million to the ratio improvement, with natural gas usage per unit of production dropping by 18% as a result of energy improvement projects implemented in the second quarter of fiscal 2006. Natural gas unit costs decreased by 29% from a year ago due to lower market prices and the implementation of land fill gas as an energy source. Operating expenses were $0.2 million below the first quarter of 2006. Operating income grew to $3.2 million from $0.6 million last year.
The project to invest $42 million at the Cedar Rapids facility to manufacture up to 40 million gallons of ethanol annually is progressing as planned. On October 5, 2006 the Company expanded its credit facility to $145 million to finance construction. Required permits have been issued and ground-breaking occurred on November 28, 2006. Site preparation is underway. Production is expected to begin by the end of calendar 2007.
First quarter sales in the Australia/New Zealand business expanded 7.7% over last year to $26.5 million. Volume increased 9%. Gross margin as a percent of sales declined to 9.1% from 10.5% a year ago due to pricing pressure on exported products and a higher proportion of basic starch products in the sales mix. Unit manufacturing costs were comparable to the prior year. Operating expenses as a percent of sales decreased to 4.6% from 6.3% last year. Quarterly income from operations rose to $0.8 million from $0.7 million a year ago.
North American Food Ingredients first quarter fiscal 2007 revenues grew 1% over last year to $15.2 million. Volumes and average unit selling prices were comparable to last year. Sales of applications in the protein segment, which includes chicken products, processed meat, and cheese, increased at double-digit rates. Gross margin increased $0.5 million to $4.8 million in the first quarter 2007, reflecting changes in product mix, improved plant productivity and lower unit energy costs. Operating income for the first quarter rose to $2.9 million from $2.4 million last year.

 


 

“Fiscal 2007 is off to a strong start. Demand for our higher value applications is growing, and process improvements and investments in operations are showing results,” said Tom Malkoski, Penford Corporation President and Chief Executive Officer. “Our Industrial business has stepped up its performance, and the ethanol expansion project is advancing as planned. We continue to develop and commercialize specialized food products in Australia and North America that should expand sales opportunities and improve returns.”
Conference Call
Penford will host a conference call to discuss first quarter financial and operational results today, January 8, 2007 at 9:00 a.m. Mountain time (11:00 a.m. Eastern time). Access information for the call and web-cast can be found at www.penx.com. A replay will be available at www.penx.com.
About Penford Corporation
Penford Corporation develops, manufactures and markets specialty natural-based ingredient systems for various applications, including papermaking, textiles and food products. Penford has nine locations in the United States, Australia and New Zealand.
     The statements contained in this release that are not historical facts are forward-looking statements that represent management’s beliefs and assumptions based on currently available information. Forward-looking statements can be identified by the use of words such as “believes,” “may,” “will,” “looks,” “should,” “could,” “anticipates,” “expects,” or comparable terminology or by discussions of strategies or trends. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurances that these expectations will prove to be correct. Such statements by their nature involve substantial risks and uncertainties that could significantly affect expected results. Actual future results could differ materially from those described in such forward-looking statements, and the Company does not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Among the factors that could cause actual results to differ materially are the risks and uncertainties discussed in this release and those described from time to time in other filings with the Securities and Exchange Commission which include, but are not limited to, competition; the possibility of interruption of business activities due to equipment problems, accidents, strikes, weather or other factors; product development risk; changes in corn and other raw material prices and availability; unanticipated ethanol facility construction or procurement delays that could result in delay in the timing of the commencement of ethanol production; unexpected cost overruns; technical difficulties, nonperformance by contractors or mandated changes in project requirements or specifications; changes in general economic conditions or developments with respect to specific industries or customers affecting demand for the Company’s products, including unfavorable shifts in product mix; unanticipated costs, expenses or third party claims; interest rate, chemical and energy cost volatility; foreign currency exchange rate fluctuations; changes in assumptions used for determining employee benefit expense and obligations; or other unforeseen developments in the industries in which Penford operates.
# # #
CHARTS TO FOLLOW

 


 

                 
Penford Corporation      
Financial Highlights   Three months ended  
    November 30,  
(In thousands except per share data)   2006     2005  
    (unaudited)  
Consolidated Results
 
               
Sales
  $ 85,500     $ 77,903  
 
               
Net income
  $ 2,573     $ 196  
 
               
Earnings per share, diluted
  $ 0.28     $ 0.02  
 
               
Results by Segment
 
               
Industrial Ingredients:
               
 
               
Sales
  $ 43,972     $ 38,480  
Gross margin
    13.6 %     9.3 %
Operating income
    3,182       574  
 
               
Food Ingredients — North America:
               
 
               
Sales
  $ 15,240     $ 15,090  
Gross margin
    31.4 %     28.1 %
Operating income
    2,853       2,401  
 
               
Australia/New Zealand:
               
 
               
Sales
  $ 26,524     $ 24,635  
Gross margin
    9.1 %     10.5 %
Operating income
    808       697  
                 
    November 30,     August 31,  
    2006     2006  
    (unaudited)          
Current assets
  $ 95,258     $ 89,916  
Property, plant and equipment, net
    129,387       124,829  
Other assets
    37,313       35,923  
 
           
Total assets
    261,958       250,668  
 
           
 
               
Current liabilities
    58,864       57,843  
Long-term debt
    61,005       53,171  
Other liabilities
    31,087       32,202  
Shareholders’ equity
    111,002       107,452  
 
           
Total liabilities and equity
  $ 261,958     $ 250,668  
 
           

 


 

                 
Penford Corporation      
Consolidated Statements of Income (unaudited)   Three months ended  
    November 30,  
(In thousands except share and per share data)   2006     2005  
 
               
Sales
  $ 85,500     $ 77,903  
 
               
Cost of sales
    72,306       67,503  
 
           
Gross margin
    13,194       10,400  
 
               
Operating expenses
    7,100       7,738  
Research and development expenses
    1,571       1,437  
 
               
Income from operations
    4,523       1,225  
 
               
Non-operating income, net
    521       362  
Interest expense
    1,304       1,333  
 
           
 
               
Income before income taxes
    3,740       254  
 
               
Income tax expense
    1,167       58  
 
           
 
               
Net income
  $ 2,573     $ 196  
 
           
 
               
Weighted average common shares and equivalents outstanding, diluted
    9,071,719       8,923,457  
 
               
Earnings per share, diluted
  $ 0.28     $ 0.02  
 
               
Dividends declared per common share
  $ 0.06     $ 0.06  

 

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