0000950123-11-033627.txt : 20110407 0000950123-11-033627.hdr.sgml : 20110407 20110407122517 ACCESSION NUMBER: 0000950123-11-033627 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20110407 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20110407 DATE AS OF CHANGE: 20110407 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: 11745426 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 d81259e8vk.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): April 7, 2011
Penford Corporation
(Exact name of registrant as specified in its charter)
         
Washington   0-11488   91-1221360
(State or other jurisdiction
of incorporation) 		  (Commission File Number)   (IRS Employer
Identification No.)
     
7094 South Revere Parkway,    
Centennial, Colorado   80112-3932
(Address of principal executive offices   (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 April 7, 2011, Penford Corporation issued a press release reporting its financial results for the three- and six-month periods ended February 28, 2011. 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.
Item 9.01: Financial Statements and Exhibits
(d)   Exhibits
     
Exhibit No.   Description
99.1  
Press release dated April 7, 2011

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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)  
     
April 7, 2011  /s/ Steven O. Cordier    
  Steven O. Cordier   
  Senior Vice President and Chief Financial Officer   
 
EXHIBIT INDEX
     
Exhibit No.   Description
99.1  
Press Release dated April 7, 2011

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EX-99.1 2 d81259exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
Contacts:   Steven O. Cordier
Senior Vice President and CFO
Penford Corporation
303-649-1900
steve.cordier@penx.com
Penford Reports Second Quarter Fiscal 2011 Financial Results
Revenue expanded 19% on higher average selling prices and volume increases in both segments.
Operating income of $0.5 million improved $1.6 million from the prior year period.
Demand for the Company’s value added product lines trending higher.
CENTENNIAL, Co., April 7, 2011 — Penford Corporation (Nasdaq: PENX), a leader in renewable ingredient systems for industrial and food applications, today reported that consolidated sales for the quarter ended February 28, 201l increased 19% to $74.3 million from $62.3 million a year ago. Loss from continuing operations was $1.6 million, or $(0.13) per diluted share, for the quarter ended February 28, 2011 compared with a loss from continuing operations of $1.8 million, or $(0.17) per diluted share last year.
A table summarizing quarterly financial results is shown below:
                                         
Penford Corporation — Financial Highlights                              
(In thousands except per share data)   Q2 FY11     Q1 FY11     4Q FY10     3Q FY10     Q2 FY10  
Industrial Ingredients:
                                        
Sales
   $ 56,591     $ 53,930     $ 45,633     $ 42,010     $ 46,065  
Gross margin
     1,458       2,904       (1,907 )     (3,847 )     1,229  
Operating income (loss)
     (1,103 )     142       (5,098 )     (6,847 )     (1,721 )
Depreciation and amortization
     2,696       2,713       2,716       2,709       2,707  
 
                                        
Food Ingredients:
                                        
Sales
   $ 17,713     $ 18,336     $ 17,369     $ 19,899     $ 16,228  
Gross margin
     5,385       6,353       5,406       7,112       4,833  
Operating income
     3,576       4,808       3,698       5,018       2,848  
Depreciation and amortization
     553       561       555       564       605  
 
                                        
Consolidated:
                                        
Sales
   $ 74,304     $ 72,266     $ 63,002     $ 61,909     $ 62,293  
Gross margin
     6,843       9,257       3,499       3,265       6,062  
Operating income (loss)
     488       2,969       (2,796 )     (4,091 )     (1,116 )
Depreciation and amortization
     3,618       3,643       3,642       3,631       3,717  
Food Ingredients Results
  •   Food Ingredients reported record second quarter sales, up 9% from the prior year on volume gains and product mix changes, reflecting strong demand for high performance applications as well as better prices on less modified products.
 
  •   Sales of applications in several categories grew at double-digit rates, including dairy, pet and gluten-free bakery products. Non-coating revenues totaled 60% of the segment compared with 45% two years ago.
 
  •   Product development, customer trials and commercialization activity remains strong.
 
  •   Gross margin improved 11% from last year on higher revenues and stable total unit costs. Operating income increased 26% from a year ago on top-line gains and lower costs.

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Industrial Ingredients Results
  •   Quarterly revenue grew 23% to $56.6 million in fiscal 2011 from $46.1 million from a year ago on higher average selling prices for industrial starches as well as increases in fuel ethanol volumes and pricing.
 
  •   Demand for products positioned as alternatives for petrochemical derivatives continues to expand at double-digit rates while customer trials of our new fluorochemical replacement product continue.
 
  •   Sales of ethanol in the second quarter of fiscal 2011 increased 43% to $25.8 million from $18.1 million last year. Market prices for ethanol rose 24% from a year ago. Market crush margins declined by approximately $0.25 per gallon from the second quarter of last year due to corn prices which were 69% higher than last year.
 
  •   Gross margin expanded 19% from the prior year despite higher net corn costs. Higher prices and stronger throughput rates as well as lower manufacturing costs helped offset increased input costs.
 
  •   Segment operating income changed $0.6 million on stronger ethanol activity, better industrial starch prices, improved plant efficiencies and lower operating expenses.
Consolidated Financial Results
  •   Consolidated operating expenses declined 14% from a year ago.
 
  •   Interest expense, which includes dividends on preferred stock that are not deductible for income taxes, was $2.3 million compared with $1.6 million last year.
 
  •   Consolidated gross margin increased 13% to $6.8 million and consolidated operating income rose $1.6 million to $0.5 million from an operating loss of $1.1 million in the same period last year. Both business segments contributed to improved financial results in the quarter.
Conference Call
Penford will host a conference call to discuss second quarter fiscal 2011 financial and operational results today, April 7, 2011 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. To participate in the call on April 7, 2011, please phone 1-877-407-9205 at 8:50 a.m. Mountain Time. A replay will be available at www.penx.com.
About Penford Corporation
Penford Corporation develops, manufactures and markets specialty, natural-based ingredient systems for a variety of industrial and food applications. Penford has five manufacturing and/or research locations in the United States.
     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; the Company’s inability to comply with the terms of instruments governing the Company’s debt; the effects of the current economic recession as well as other 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; changes in returns on pension plan assets and/or assumptions used for determining employee benefit expense and obligations; unforeseen developments in the industries in which Penford operates; and other factors described in the “Risk Factors” section in reports filed by the Company with the Securities and Exchange Commission.
# # #
CHARTS TO FOLLOW

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    Three months ended     Six months ended  
Penford Corporation   February 28     February 28  
Financial Highlights   2011     2010     2011     2010  
(In thousands except per share data)   (unaudited)     (unaudited)  
Consolidated Results
                                
Sales
   $ 74,304     $ 62,293     $ 146,570     $ 129,363  
 
                        
 
                                
Loss from continuing operations
   $ (1,575 )   $ (1,801 )   $ (1,239 )   $ (745 )
Income from discontinued operations, net of tax
     —       13,048       —       16,531  
 
                        
Net income (loss)
   $ (1,575 )   $ 11,247     $ (1,239 )   $ 15,786  
 
                                
Loss per share, diluted — continuing operations
   $ (0.13 )   $ (0.17 )   $ (0.10 )   $ (0.08 )
Income per share, diluted — discontinued operations
     —       1.16       —       1.48  
 
                        
Income (loss) per share, diluted
   $ (0.13 )   $ 0.99     $ (0.10 )   $ 1.40  
 
                                
Cash Flows
                                
Cash flow provided by (used in) continuing operations:
                                
Operating activities
   $ (6,626 )   $ (206 )   $ (1,959 )   $ 11,613  
Investing activities
     (1,718 )     8,965       (3,403 )     16,902  
Financing activities
     8,320       (28,136 )     5,339       (34,055 )
 
                        
 
     (24 )     (19,377 )     (23 )     (5,540 )
 
                                
Net cash flow provided by (used in) discontinued operations
     —       (5,250 )     —       620  
 
                        
Total cash used
   $ (24 )   $ (24,627 )   $ (23 )   $ (4,920 )
Balance Sheets
                 
    February 28,     August 31,  
    2011     2010  
    (unaudited)        
Current assets
   $ 68,468     $ 61,115  
Property, plant and equipment, net
     108,824       111,930  
Other assets
     34,720       35,363  
 
            
Total assets
     212,012       208,408  
 
            
 
                
Current liabilities
     24,198       26,000  
Long-term debt
     27,324       21,038  
Redeemable preferred stock
     36,492       34,104  
Other liabilities
     44,211       43,694  
Shareholders’ equity
     79,787       83,572  
 
            
Total liabilities and equity
   $ 212,012     $ 208,408  
 
            

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    Three months ended     Six months ended  
Penford Corporation   February 28     February 28  
Consolidated Statements of Operations   2011     2010     2011     2010  
(In thousands except per share data)   (unaudited)     (unaudited)  
Sales
   $ 74,304     $ 62,293     $ 146,570     $ 129,363  
Cost of sales
     67,461       56,231       130,470       112,673  
 
                        
Gross margin
     6,843       6,062       16,100       16,690  
 
                                
Operating expenses
     5,235       6,054       10,430       12,542  
Research and development expenses
     1,120       1,124       2,214       2,121  
 
                        
 
                                
Income (loss) from operations
     488       (1,116 )     3,456       2,027  
 
                                
Interest expense
     2,303       1,621       4,572       3,420  
Non-operating income (expense), net
     (1 )     (27 )     88       609  
 
                        
 
                                
Loss before income taxes
     (1,816 )     (2,764 )     (1,028 )     (784 )
 
                                
Income tax expense (benefit)
     (241 )     (963 )     211       (39 )
 
                        
 
                                
Loss from continuing operations
     (1,575 )     (1,801 )     (1,239 )     (745 )
 
                                
Income from discontinued operations, net of tax
     —       13,048       —       16,531  
 
                        
 
                                
Net income (loss)
   $ (1,575 )   $ 11,247     $ (1,239 )   $ 15,786  
 
                        
 
                                
Weighted average common shares and equivalents outstanding, diluted
     12,257       11,204       12,239       11,193  
 
                                
Loss per share, diluted — continuing operations
   $ (0.13 )   $ (0.17 )   $ (0.10 )   $ (0.08 )
Income per share, diluted — discontinued operations
     —       1.16       —       1.48  
 
                        
Income (loss) per share, diluted
   $ (0.13 )   $ 0.99     $ (0.10 )   $ 1.40  
# # #

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