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MGP Ingredients Reports First Quarter 2026 ResultsApril 29, 2026 7:30 AM
Business Wire
Company reaffirms full-year 2026 financial outlook and declares $0.12 quarterly dividend
MGP Ingredients, Inc. (Nasdaq: MGPI), a leading provider of branded and distilled spirits and food ingredient solutions, today reported results for the first quarter ended March 31, 2026.
“I’m pleased with our first quarter results, as sales were in-line with expectations, while adjusted EBITDA and adjusted basic EPS came in ahead of our plans. During the quarter, we remained focused on disciplined execution and long-term value creation, as we continued to navigate a challenging industry backdrop,” said Julie Francis, president and CEO. “We also maintained momentum in our premium plus portfolio, led by Penelope Bourbon and continued demand for our specialty offerings, and delivered growth in Ingredient Solutions, reflecting improvements in operational reliability. As we move through 2026, we will continue to follow our strategic roadmap and drive our key growth initiatives, while prioritizing our best opportunities for growth, taking decisive actions, and executing with discipline.”
First Quarter 2026 Financial Highlights Compared to First Quarter 2025:
Consolidated sales decreased 13% to $106.4 million.
Consolidated gross profit decreased 22% to $33.6 million. Gross margin decreased by 400 basis points to 31.6%.
Net income decreased to a loss of $134.8 million, primarily due to discrete, non-cash adjustments of $179.5 million to reduce the carrying amount of goodwill and other long-lived assets in the Branded Spirits segment. Adjusted net income decreased 57% to $3.3 million.
Basic earnings per common share decreased to $(6.30) per share from $(0.14) per share, primarily due to the adjustments described above. Adjusted basic EPS decreased 58% to $0.15 per share.
Adjusted EBITDA decreased 31% to $15.0 million.
Capital expenditures declined 75% to $2.0 million as the company continued to optimize its capital spend in light of the current industry environment.
Net debt leverage ratio was approximately 2.1x as of March 31, 2026.
Consolidated Results
First quarter 2026 sales decreased by 13% versus the prior year, primarily due to expected declines in brown goods sales in the Distilling Solutions segment. The lower brown goods sales volume also pressured profitability, resulting in declines in gross profit and gross margin. Operating income decreased to a loss of $173.2 million, primarily due to discrete, non-cash adjustments to goodwill and other long-lived assets. On an adjusted basis, operating income decreased by 49% to $7.9 million. For the quarter, adjusted EBITDA decreased 31% to $15.0 million.
First quarter advertising and promotion expenses decreased 24% to $6.2 million, as the company continued to realign spend behind its most attractive growth opportunities, with Branded Spirits advertising and promotion spend of $6.0 million or approximately 13.6% of Branded Spirits segment sales. First quarter selling, general and administrative expense declined 1%, while adjusted SG&A decreased 2% and represented 18% of consolidated sales.
During the first quarter of 2026, the company recorded a $115.7 million non-cash adjustment to the carrying value of goodwill and a $37.0 million non-cash adjustment to the carrying value of indefinite-lived intangible assets in the Branded Spirits segment, primarily due to certain unfavorable macroeconomic factors such as a higher discount rate and lower peer valuation multiples. Additionally, during the first quarter, the company recorded a $26.9 million long-lived fixed asset impairment related to equipment at its Lux Row distillery in Bardstown, KY, which, as previously announced, is being temporarily idled beginning in May 2026. These charges resulted in a net loss of $134.8 million and basic EPS loss of $(6.30) for the first quarter. On an adjusted basis, first quarter net income and basic EPS were $3.3 million and $0.15 per share, respectively.
Branded Spirits
Branded Spirits segment sales of $44.2 million decreased 8% versus the prior year quarter. Premium plus sales increased by 1.5%, as the company’s targeted focus on growth opportunities continued to gain traction. Within this portfolio, Penelope Bourbon maintained its strong growth trajectory and was up 10% versus the prior year. As expected, sales of private label bottled products within the other category declined year-over-year. Combined sales of mid- and value-priced portfolios declined by 3%, as the company continued to successfully prioritize its best performing offerings in these price tiers. Branded Spirits gross margin increased by 180 basis points to 47.8%, while gross profit moderated slightly to $21.1 million.
Distilling Solutions
Distilling Solutions segment sales of $28.0 million decreased by 40% versus the prior year, while gross profit declined 54% to $8.6 million, or 30.8% of segment sales. As expected, lower demand for aged and new distillate whiskey continued to pressure segment results and drove a 56% decline in brown goods sales for the first quarter.
Ingredient Solutions
Ingredient Solutions segment sales of $34.2 million increased by 29% versus the prior year, primarily driven by higher sales volume and price/mix of specialty wheat proteins and starches. Segment gross profit increased to $3.8 million, or 11.2% of segment sales, as higher sales of specialty protein and starch products partially offset higher waste starch stream disposal costs.
2026 Financial Outlook
MGP reaffirmed its consolidated guidance for fiscal 2026:
Sales projected to be in the range of $480 million to $500 million.
Adjusted EBITDA expected to be between $90 million to $98 million.
Adjusted basic EPS expected to be in the $1.50 to $1.80 range, with weighted average basic shares outstanding of approximately 21.4 million.
An effective tax rate of approximately 27%.
Full-year capital expenditures expected to be approximately $20 million.
Dividend Distribution
The company’s Board of Directors declared a dividend of $0.12 per share of common stock. The dividend is payable on May 29, 2026, to stockholders of record as of May 15, 2026.
Conference Call and Webcast Information
MGP Ingredients will host a conference call today at 10 a.m. ET, April 29, 2026, to discuss the results, provide a general business update, and answer questions. Please visit the News and Events section of the company’s Investor Relations website to access the webcast. Investors can also dial (844) 308-6398 or (412) 717-9605 (international) to listen to the call. A replay will be available on the company’s website approximately 24 hours after the call concludes.
About MGP Ingredients, Inc.
MGP Ingredients Inc. (Nasdaq: MGPI) has been formulating excellence since 1941 by bringing product ideas to life across the alcoholic beverage and specialty ingredient industries through three segments: Branded Spirits, Distilling Solutions, and Ingredient Solutions. MGPI is one of the leading spirits distillers with an award-winning portfolio of premium brands including Penelope, Rebel, Remus, and Yellowstone bourbons and El Mayor tequila, under the Luxco umbrella. With distilleries in Indiana and Kentucky; a tequila distillery in Arandas, Mexico; and bottling operations in Missouri, Ohio, and Northern Ireland, the company creates distilled spirits for customers including many world-renowned spirits brands. In addition, the company’s high-quality specialty fiber, protein, and starch ingredients provide functional, nutritional, and sensory solutions for a wide range of food products. To learn more visit MGPIngredients.com.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation statements about the ability of MGP Ingredients, Inc. (the “Company” or “MGP”) to drive growth initiatives, prioritize growth opportunities, take decisive actions, and execute with discipline; and the Company’s 2026 outlook, including its expectations for sales, adjusted EBITDA, adjusted basic earnings per share (“EPS”), shares outstanding, tax rate, and capital expenditures. Forward looking statements are usually identified by or are associated with words such as “intend,” “plan,” “believe,” “estimate,” “expect,” “anticipate,” “project,” “forecast,” “hopeful,” “should,” “may,” “will,” “could,” “encouraged,” “opportunities,” “potential,” and similar terminology. These forward-looking statements reflect management’s current beliefs and estimates of future economic circumstances, industry conditions, Company performance, Company financial results, and Company financial condition and are not guarantees of future performance.
All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Factors that could cause actual results to differ materially from our expectations include without limitation any effects of changes in consumer preferences and purchases and our ability to anticipate or react to those changes; our ability to compete effectively and any effects of industry dynamics and market conditions; unfavorable economic conditions; damage to our reputation or that of any of our key customers or their brands; failure to introduce successful new brands and products or have effective marketing or advertising; changes in public opinion about alcohol or our products; our reliance on our distributors to distribute our branded spirits; our reliance on fewer, more profitable customer relationships; interruptions in our operations or a catastrophic event at our facilities; decisions concerning the quantity of maturing stock of our aged distillate; any inability to successfully complete our capital projects or fund capital expenditures or any warehouse expansion issues; our reliance on a limited number of suppliers; work disruptions or stoppages; climate change and measures to address climate change; regulation and taxation and compliance with existing or future laws and regulations; tariffs, trade relations, and trade policies; excise taxes, incentives and customs duties; our ability to protect our intellectual property rights and defend against alleged intellectual property rights infringement claims; failure to secure and maintain listings in control states; labeling or warning requirements or limitations on the availability of our products; product recalls or other product liability claims; anti-corruption laws, trade sanctions, and restrictions; litigation or legal proceedings; limited rights of common stockholders and anti-takeover provisions in our governing documents; the impact of issuing shares of our common stock; higher costs or the unavailability and cost of raw materials, product ingredients, energy resources, or labor; failure of our information technology systems, networks, processes, associated sites, or service providers; inability to successfully implement our strategies; interest rate increases; reliance on key personnel; impairment charges; commercial, political, and financial risks; covenants and other provisions in our credit arrangements; pandemics or other health crises; ability to pay any dividends and make any share repurchases. For further information on these risks and uncertainties and other factors that could affect the Company’s business, see the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, as well as the Company’s other SEC filings. The Company undertakes no obligation to update any forward-looking statements or information in this press release, except as required by law.
Non-GAAP Financial Measures
In addition to reporting financial information in accordance with U.S. GAAP, the Company provides certain non-GAAP financial measures that are not in accordance with, or alternatives for, GAAP. In addition to the comparable GAAP measures, the Company has disclosed adjusted selling, general, and administrative expenses (“SG&A”), adjusted operating income, adjusted income before income taxes, adjusted net income, adjusted MGP earnings, adjusted EBITDA, net debt, net debt leverage ratio, and adjusted basic and diluted EPS, as well as guidance for adjusted EBITDA and adjusted basic EPS. The presentation of these non-GAAP financial measures should be reviewed in conjunction with SG&A, operating income, income before income taxes, net income, net income used in earnings per common share calculation, debt, and basic and diluted EPS computed in accordance with U.S. GAAP and should not be considered a substitute for the GAAP measure. We believe that the non-GAAP measures provide useful information to investors regarding the Company's performance and overall results of operations. In addition, management uses these non-GAAP measures in conjunction with GAAP measures when evaluating the Company’s operating results compared to prior periods on a consistent basis, assessing financial trends, and for forecasting purposes. Non-GAAP financial measures may not provide information that is directly comparable to other companies, even if similar terms are used to identify such measures. The attached schedules provide a full reconciliation of historical non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure. Full year 2026 guidance measures of adjusted EBITDA and adjusted basic EPS are provided on a non-GAAP basis without a reconciliation to the most directly comparable GAAP measures because the Company is unable to predict with a reasonable degree of certainty certain items contained in the GAAP measures without unreasonable efforts. Such items include without limitation, acquisition related expenses, restructuring and related expenses, and other items not reflective of the Company's ongoing operations.
MGP INGREDIENTS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED)
(Dollars in thousands, except share and per share amounts)
Quarter Ended March 31,
2026
2025
Sales
$
106,427
$
121,653
Cost of sales
72,845
78,323
Gross profit
33,582
43,330
Advertising and promotion expenses
6,191
8,172
Selling, general, and administrative expenses
21,066
21,205
Goodwill and other long-lived assets impairment
179,526
—
Change in fair value of contingent consideration
—
14,700
Operating loss
(173,201
)
(747
)
Interest expense, net
(1,421
)
(1,854
)
Other income (expense), net
(50
)
215
Loss before income taxes
(174,672
)
(2,386
)
Income tax expense (benefit)
(39,865
)
671
Net loss
(134,807
)
(3,057
)
Attributable to noncontrolling interest
3
33
Net loss attributable to MGP Ingredients, Inc.
(134,804
)
(3,024
)
Attributable to participating securities
(35
)
30
Net loss used in earnings per common share calculation
$
(134,839
)
$
(2,994
)
Weighted average common shares
Basic
21,389,441
21,342,531
Diluted
21,389,441
21,342,531
Earnings per common share
Basic
$
(6.30
)
$
(0.14
)
Diluted
$
(6.30
)
$
(0.14
)
MGP INGREDIENTS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
March 31, 2026
December 31, 2025
ASSETS
Current Assets:
Cash and cash equivalents
$
10,357
$
18,460
Receivables, net
86,637
116,160
Inventory
403,107
382,741
Prepaid expenses
5,814
2,139
Refundable income taxes
134
3,209
Total current assets
506,049
522,709
Property, plant, and equipment
569,739
594,898
Less accumulated depreciation and amortization
(272,199
)
(266,911
)
Property, plant, and equipment, net
297,540
327,987
Operating lease right-of-use assets, net
11,885
13,847
Investment in joint venture
6,692
8,211
Intangible assets, net
206,893
244,696
Goodwill
—
115,667
Other assets
2,240
2,747
TOTAL ASSETS
$
1,031,299
$
1,235,864
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Current maturities of long-term debt
$
6,400
$
6,400
Accounts payable
49,750
54,589
Contingent consideration
110,800
110,800
Federal and state excise taxes payable
3,654
5,755
Accrued expenses and other
14,387
22,507
Total current liabilities
184,991
200,051
Long-term debt, less current maturities
42,295
49,735
Convertible senior notes
196,263
196,183
Long-term operating lease liabilities
9,007
10,561
Other noncurrent liabilities
2,246
2,534
Deferred income taxes
16,856
60,010
Total liabilities
451,658
519,074
Total equity
579,641
716,790
TOTAL LIABILITIES AND TOTAL EQUITY
$
1,031,299
$
1,235,864
MGP INGREDIENTS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in thousands)
Quarter to Date Ended March 31,
2026
2025
Cash Flows from Operating Activities
Net loss
$
(134,807
)
$
(3,057
)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization
6,265
5,808
Goodwill and other long-lived assets impairment
179,526
—
Share-based compensation
673
742
Equity method investment loss (gain)
19
(257
)
Deferred income taxes, including change in valuation allowance
(43,154
)
64
Change in fair value of contingent consideration
—
14,700
Other, net
290
73
Changes in operating assets and liabilities:
Receivables, net
29,441
40,594
Inventory
(20,299
)
(13,439
)
Prepaid expenses
(3,668
)
(1,025
)
Income taxes payable (refundable)
3,075
(2,094
)
Accounts payable
(1,285
)
(146
)
Accrued expenses and other
(6,792
)
2,857
Federal and state excise taxes payable
(2,102
)
(98
)
Other, net
(227
)
(38
)
Net cash provided by operating activities
6,955
44,684
Cash Flows from Investing Activities
Additions to property, plant, and equipment
(5,722
)
(19,926
)
Distributions from equity method investment
1,500
—
Other, net
449
—
Net cash used in investing activities
(3,773
)
(19,926
)
Cash Flows from Financing Activities
Payment of dividends and dividend equivalents
(2,598
)
(2,578
)
Repurchase of Common Stock
(886
)
(1,035
)
Proceeds from long-term debt
10,000
—
Principal payments on long-term debt
(17,600
)
(26,600
)
Net cash used in financing activities
(11,084
)
(30,213
)
Effect of exchange rate changes on cash and cash equivalents
(201
)
294
Decrease in cash and cash equivalents
(8,103
)
(5,161
)
Cash and cash equivalents, beginning of period
18,460
25,273
Cash and cash equivalents, end of period
$
10,357
$
20,112
MGP INGREDIENTS, INC.
RECONCILIATION OF SELECTED GAAP MEASURES TO ADJUSTED NON-GAAP MEASURES (UNAUDITED)
(in thousands, except per share amounts)
Quarter Ended March 31, 2026
SG&A
Operating
Income
(loss)
Income (loss)
before Income
Taxes
Net
Income
(loss)
MGP
Earnings(a)
Basic and
Diluted EPS
Reported GAAP Results
$
21,066
$
(173,201
)
$
(174,672
)
$
(134,807
)
$
(134,839
)
$
(6.30
)
Adjusted to remove:
Goodwill and other long-lived asset impairment(b)
—
179,526
179,526
137,329
137,320
6.41
Executive transition costs (c)
(333
)
333
333
173
173
0.01
Restructuring and other costs (d)
(1,197
)
1,197
1,197
621
621
0.03
Adjusted Non-GAAP results
$
19,536
$
7,855
$
6,384
$
3,316
$
3,275
$
0.15
Quarter Ended March 31, 2025
SG&A
Operating
Income
(loss)
Income (loss)
before Income
Taxes
Net
Income
(loss)
MGP
Earnings(a)
Basic and
Diluted EPS
Reported GAAP Results
$
21,205
$
(747
)
$
(2,386
)
$
(3,057
)
$
(2,994
)
$
(0.14
)
Adjusted to remove:
Executive transition costs (c)
(306
)
306
306
207
205
0.01
Restructuring and other costs (d)
(613
)
613
613
414
410
0.02
Fair value of contingent consideration(e)
—
14,700
14,700
9,937
9,839
0.46
Professional service fees (f)
(382
)
382
382
258
256
0.01
Adjusted Non-GAAP results
$
19,904
$
15,254
$
13,615
$
7,759
$
7,716
$
0.36
(a)
MGP Earnings is defined as "Net income used in Earnings Per Common Share calculation," which accounts for the impacts of the earnings attributable to noncontrolling interest and earnings attributable to participating securities.
(b)
Goodwill and other long-lived asset impairment relates to the write down of goodwill, indefinite-lived intangible assets and other long-lived fixed assets during the quarter ended March 31, 2026. It is included in the Consolidated Statement of Income (Loss) as a component of operating income and relates to the Branded Spirits segment.
(c)
The executive transition costs are included in the Condensed Consolidated Statement of Income (Loss) within the selling, general, and administrative line item. The adjustment includes costs related to the transition of certain executive and board of director positions.
(d)
The restructuring and other costs are included in the Condensed Consolidated Statement of Income (Loss) within the selling, general, and administrative line item. The adjustment includes special one-time severance costs related to the reduction in force that occurred during the period.
(e)
Fair value of contingent consideration relates to the quarterly adjustment of the contingent consideration liability related to the acquisition of Penelope Bourbon LLC. It is included in the Condensed Consolidated Statement of Income (Loss) as a component of operating income and relates to the Branded Spirits segment.
(f)
The professional services fees are included in the Condensed Consolidated Statement of Income (Loss) within the selling, general, and administrative line item. The adjustment includes costs related to professional services in conjunction with the goodwill impairment valuation.
MGP INGREDIENTS, INC.
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (UNAUDITED)
(in thousands)
Quarter Ended March 31,
2026
2025
Net loss
$
(134,807
)
$
(3,057
)
Interest expense
1,421
1,854
Income tax expense (benefit)
(39,865
)
671
Depreciation and amortization
6,265
5,808
Share based compensation (a)
923
742
Equity method investment loss (gain)
19
(257
)
Executive transition costs
333
306
Restructuring and other costs
1,197
613
Goodwill and other long-lived assets impairment
179,526
—
Fair value of contingent consideration
—
14,700
Professional service fees
—
382
Adjusted EBITDA
$
15,012
$
21,762
(a)
This amount excludes share based compensation related to executive transition costs and one-time severance costs (benefits).
The non-GAAP adjusted EBITDA measure is defined as earnings before interest expense, income tax expense (benefit), depreciation and amortization, share based compensation, equity method investment loss (gain), executive transition costs, restructuring and other costs, goodwill and other long-lived assets impairment, fair value of contingent consideration, and professional service fees.
See "Reconciliation of selected GAAP measure to adjusted non-GAAP measures" for further details on selected non-GAAP items.
MGP INGREDIENTS, INC.
NET DEBT LEVERAGE RATIO (UNAUDITED)
(in thousands)
Quarter Ended
June 30,
2025
Quarter Ended
September 30,
2025
Quarter Ended
December 31,
2025
Quarter Ended
March 31,
2026
TTM(a)
March 31,
2026
Net income (loss)
$
14,427
$
15,429
$
(134,631
)
$
(134,807
)
$
(239,582
)
Interest expense
1,897
1,739
1,554
1,421
6,611
Income tax expense (benefit)
4,308
4,276
(1,773
)
(39,865
)
(33,054
)
Depreciation and amortization
5,830
6,186
6,262
6,265
24,543
Share based compensation(c)
1,288
1,057
1,129
923
4,397
Equity method investment gain
(237
)
(375
)
(318
)
19
(911
)
Goodwill and other long-lived assets impairment
—
—
152,622
179,526
332,148
Fair value of contingent consideration
8,000
2,800
—
—
10,800
Professional service fees
—
—
113
—
113
Executive transition costs
376
1,143
953
333
2,805
Restructuring and other costs
—
—
190
1,197
1,387
Adjusted EBITDA
$
35,889
$
32,255
$
26,101
$
15,012
$
109,257
Total debt
$
244,958
Cash and cash equivalents
10,357
Net debt
$
234,601
Net debt leverage ratio(b)
2.1
(a)
TTM is defined as trailing twelve months.
(b)
Net debt leverage ratio is defined as net debt divided by adjusted EBITDA.
(c)
This amount excludes share based compensation related to executive transition costs.
See "Reconciliation of selected GAAP measure to adjusted non-GAAP measures" for further details on selected non-GAAP items.
MGP INGREDIENTS, INC.
OPERATING SEGMENT RESULTS (UNAUDITED)
(Dollars in thousands)
BRANDED SPIRITS
Quarter Ended March 31,
Quarter versus Quarter Change
Increase/(Decrease)
2026
2025
$ Change
% Change
Premium plus
$
22,651
$
22,318
$
333
1
%
Mid
13,243
13,027
216
2
Value
6,503
7,341
(838
)
(11
)
Other
1,840
5,541
(3,701
)
(67
)
Total Branded Spirits Sales
$
44,237
$
48,227
$
(3,990
)
(8
)%
Gross profit
$
21,136
$
22,198
$
(1,062
)
(5
)%
Gross margin %
47.8
%
46.0
%
1.8
pp(a)
Operating income
$
(172,372
)
$
(9,146
)
$
(163,226
)
(1,785
)%
Depreciation and amortization
$
2,159
$
2,140
$
19
1
%
DISTILLING SOLUTIONS
Quarter Ended March 31,
Quarter versus Quarter Change
Increase/(Decrease)
2026
2025
$ Change
% Change
Brown goods
$
14,909
$
33,656
$
(18,747
)
(56
)%
Warehouse services
8,292
8,077
215
3
White goods and other co-products
4,799
5,210
(411
)
(8
)
Total Distilling Solutions Sales
$
28,000
$
46,943
$
(18,943
)
(40
)%
Gross profit
$
8,625
$
18,680
$
(10,055
)
(54
)%
Gross margin %
30.8
%
39.8
%
(9.0
)
pp(a)
Operating income
$
7,835
$
17,882
$
(10,047
)
(56
)%
Depreciation and amortization
$
1,798
$
2,055
$
(257
)
(13
)%
INGREDIENT SOLUTIONS SALES
Quarter Ended March 31,
Quarter versus Quarter Change
Increase / (Decrease)
2026
2025
$ Change
% Change
Specialty wheat starches
$
18,416
$
15,853
$
2,563
16
%
Specialty wheat proteins
12,708
7,348
5,360
73
Commodity wheat starches
2,617
2,719
(102
)
(4
)
Commodity wheat proteins
383
563
(180
)
(32
)
Biofuel and other
66
—
66
n/a
Total Ingredient Solutions
$
34,190
$
26,483
$
7,707
29
%
Gross profit
$
3,821
$
2,452
$
1,369
56
%
Gross margin %
11.2
%
9.3
%
1.9
pp(a)
Operating income
$
2,941
$
1,008
$
1,933
192
%
Depreciation and amortization
$
1,958
$
1,271
$
687
54
%
(a)
Percentage points (“pp”).
MGP INGREDIENTS, INC.
DILUTIVE SHARES OUTSTANDING CALCULATION (UNAUDITED)
Quarter Ended March 31,
2026
2025
Principal amount of the bonds
$
201,250,000
$
201,250,000
Par value
$
1,000
$
1,000
Number of bonds outstanding (a)
201,250
201,250
Initial conversion rate
10.3911
10.3911
Conversion price
$
96.23620
$
96.23620
Average share price (b)
$
22.32656
$
33.45192
Impact of conversion (c)
$
—
$
—
Cash paid for principal
(201,250,000
)
(201,250,000
)
Conversion premium
$
—
$
—
Average share price
$
22.32656
$
33.45192
Conversion premium in shares (d) (e)
—
—
(a)
Number of bonds outstanding is calculated by taking the principal amount of the bonds divided by the par value.
(b)
Average share price is calculated by taking the average of the daily closing share price for the period. If the average share price is less than the conversion price of $96.23620 per share, the impact to EPS is anti-dilutive and therefore the shares were excluded from the diluted EPS calculation.
(c)
Impact of conversion is calculated by taking the number of bonds outstanding multiplied by the initial conversion rate multiplied by the average share price. If the average share price is less than the conversion price then the impact of conversion is zero.
(d)
The impacts of the Convertible Senior Notes are included in the diluted weighted average common shares outstanding if the impact is dilutive. The Convertible Senior Notes would only have a dilutive impact if the average market price per share during the quarter exceed the conversion price of $96.23620 per share.
(e)
Conversion premium in shares is calculated by taking the conversion premium divided by the average share price. If the average share price is less than the conversion price, then the conversion premium in shares is zero.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260429936677/en/
For Investor Relations:
investor.relations@mgpi.com
For Media Inquiries:
The Brand Guild
mgpcorporate@thebrandguild.com
Original: MGP Ingredients Reports First Quarter 2026 Results
US Market News
4月前
MGP Ingredients Reports Fourth-Quarter and Full-Year 2025 ResultsFebruary 25, 2026 7:30 AM
Business Wire
Full-year results above the top end of guidance; Provides 2026 financial outlook
MGP Ingredients, Inc. (Nasdaq: MGPI), a leading provider of branded and distilled spirits and food ingredient solutions, today reported results for the fourth quarter and full-year ended December 31, 2025.
“2025 was a year of deliberate repositioning for MGP,” said Julie Francis, president and CEO. “I am pleased with the team’s efforts as we did what we said we will do and made meaningful progress against each of the five initiatives we outlined at the start of the year, advanced our key priorities, and delivered full-year financial results above our prior expectations.”
She added, “From an industry standpoint, we believe that elevated inventory levels will continue to pressure our brown goods business in the near-term. However, we expect improved operational reliability in the Ingredient Solutions segment, continued premium plus momentum, and accelerated productivity and cost discipline to help partially offset these headwinds – all of which are reflected in our 2026 guidance.”
She concluded, “As we look ahead, we believe our enhanced strategic clarity, decisive actions, and disciplined execution will position the company to deliver sustained growth off of our 2026 guidance expectations. Many of these actions are well underway, and they are already changing how we operate, giving us confidence that MGP will emerge better aligned, more resilient, and well positioned for long-term value creation.”
2025 fourth quarter consolidated results compared to 2024 fourth quarter:
Consolidated sales decreased 23% to $138.3 million.
Consolidated gross profit decreased 35% to $48.3 million. Gross profit margin decreased by 630 basis points to 34.9%.
Net income decreased to a loss of $134.6 million due to a discrete, non-cash adjustment of $152.6 million to lower the carrying amount of goodwill and indefinite-lived intangible assets in the Branded Spirits segment. On an adjusted basis, net income decreased 60% to $13.7 million.
Basic earnings per common share ("EPS") decreased to $(6.22) per share from $(1.91) per share primarily due to a discrete, non-cash adjustment to goodwill and indefinite-lived intangible assets. Adjusted basic EPS decreased 60% to $0.63 per share.
Adjusted EBITDA decreased 51% to $26.1 million.
2025 full-year consolidated results compared to 2024 full year:
Consolidated sales decreased 24% to $536.4 million.
Consolidated gross profit decreased 30% to $199.4 million. Gross profit margin decreased by 350 basis points to 37.2%.
Net income decreased to a loss of $107.8 million primarily due to a discrete, non-cash adjustment to goodwill and indefinite-lived intangible assets. On an adjusted basis, net income decreased 51% to $61.5 million.
Basic EPS decreased to $(4.99) per share from $1.56 per share primarily due to a discrete, non-cash adjustment to goodwill and indefinite-lived intangible assets as well as decreased gross profit. Adjusted basic EPS decreased 49% to $2.85 per share from $5.64 per share in 2024.
Adjusted EBITDA decreased 41% to $116.0 million.
Capital expenditures of $31.9 million declined 56% from the year-ago level, and were largely in line with the company's expectations.
Cash flow from operations increased $19.3 million to record-high level of $121.5 million.
Net debt leverage ratio stands at approximately 2.0x as of December 31, 2025.
Consolidated results
Fourth quarter 2025 consolidated sales decreased by 23% compared to the prior-year period, primarily due to lower brown goods sales within the Distilling Solutions segment and the residual impact from the outage of a key piece of equipment on Ingredient Solutions segment sales. These drivers, coupled with higher waste starch stream disposal costs related to the Ingredient Solutions segment, also pressured gross profit, as fourth quarter consolidated gross profit declined by 35% to $48.3 million, while gross margin decreased 630 basis points to 34.9%. Selling, general and administrative ("SG&A") costs increased by 5% as productivity savings were more than offset by the reinstatement of incentive compensation. Advertising and promotion expenses decreased by 12%, as planned. Fourth quarter operating income decreased to a loss of $135.2 million, while adjusted operating income decreased 60% to $18.7 million and adjusted EBITDA decreased 51% to $26.1 million.
During the fourth quarter, the company recorded a $152.6 million non-cash adjustment to the carrying value of goodwill and indefinite-lived intangible assets in the Branded Spirits segment, primarily due to certain unfavorable macroeconomic factors such as a higher discount rate and lower peer valuation multiples compared to the fourth quarter of 2024. These charges resulted in a net loss of $134.6 million and basic EPS loss of $6.22 for the fourth quarter. On an adjusted basis, fourth quarter net income and basic EPS were $13.7 million and $0.63 per share, respectively.
The effective tax rate for the fourth quarter 2025 was 1.3%, compared with (31.5)% in the year-ago period. On an adjusted basis, the effective tax rate for fourth quarter 2025 was 21.7%, compared to 24.0% in the year-ago period.
For the full-year 2025, consolidated sales declined by 24% compared to full-year 2024 to $536.4 million, primarily due to the anticipated decline in Distilling Solutions segment sales. Full-year gross profit declined by 30% to $199.4 million, and gross margin decreased by 350 basis points to 37.2% driven primarily by lower brown goods volumes, the impact from the outage of a key piece of equipment, and higher waste starch disposal costs at the company's ingredients plant. Full-year SG&A expense increased 4% to $84.8 million and adjusted SG&A expense increased 7% to $80.7 million, as the company's productivity initiatives were largely offset by the reinstatement of incentive compensation. Full-year operating income decreased to a loss of $94.6 million, while adjusted operating income and adjusted EBITDA decreased 49% and 41% to $87.6 million and $116.0 million, respectively. Full-year net income and basic EPS declined to a loss of $107.8 million and $4.99, respectively, due to a discrete non-cash impairment to goodwill and indefinite-lived intangible assets and lower operating results. On an adjusted basis, net income and basic EPS declined 51% and 49% to $61.5 million and $2.85, respectively.
Despite lower net income, full-year 2025 cash flow from operations increased to $121.5 million due to a heightened focus on managing working capital, including barrel inventory. Separately, net whiskey put-away declined from $32.9 million in 2024 to $18.5 million in 2025, and capital expenditures declined by 56% to $31.9 million.
Branded Spirits
Fourth quarter 2025 Branded Spirits segment sales decreased 1% to $63.4 million compared to the prior-year period as the continued momentum in the premium plus portfolio was offset by weaker sales of mid and value priced brands. Led by Penelope Bourbon, premium plus brands posted their strongest quarterly growth of the year with 10% sales growth during the quarter. As expected, sales of mid and value priced brands, combined, decreased by double digits, consistent with the full-year trend, primarily due to lower volumes of certain tequila, liqueurs, and cordial brands. Branded Spirits gross profit decreased by 2% to $28.9 million while gross margin declined by 60 basis points to 45.6%.
For the full-year 2025, Branded Spirits sales decreased 3% to $232.9 million compared to the prior-year period. Premium plus sales increased by 5%, while sales of the mid and value priced portfolio, combined, declined by 13% as the company continued to optimize its offerings in these price tiers. Full-year gross profit decreased by 2% to $115.3 million, while gross margin improved by 40 basis points to 49.5%, benefiting from the ongoing premiumization of the Branded Spirits portfolio.
Distilling Solutions
Distilling Solutions segment sales for the fourth quarter 2025 decreased 47% from the prior-year period to $43.6 million and gross profit decreased by 54% to $16.9 million, or 38.8% of segment sales. In-line with the 2025 trend, lower demand for both aged and new distillate whiskey pressured segment results, driving a 53% decline in brown goods sales for the fourth quarter.
For the full-year 2025, Distilling Solutions segment sales decreased 45% compared to the prior-year period to $181.4 million and gross profit decreased by 52% to $68.6 million. Full-year brown goods sales declined by 52% as the company proactively renegotiated contracts and many large customers paused purchases, including to balance their whiskey inventories and manage their working capital. Sales of warehouse services and white goods and other co-products declined by 3% and 38%, respectively, for the full year.
Ingredient Solutions
Fourth quarter 2025 Ingredient Solutions segment sales decreased by 10% as compared to the prior-year period to $31.3 million, as the impact of the failure of a key piece of equipment persisted and remained an operational headwind into the fourth quarter. As a result, specialty fiber and specialty protein sales declined by 8% and 14%, respectively, along with lower commodity starch sales during the quarter. The issue was resolved and the equipment returned to service in November 2025. On the other hand, textured protein sales benefitted from the commercialization of a new large multinational customer and biofuel sales continue to increase. Fourth quarter gross margin declined by 70% to $2.4 million due to higher waste starch stream disposal costs, lower volumes, and operational inefficiencies tied to the failure of a key piece of equipment.
For the full-year 2025, Ingredient Solutions segment sales decreased 7% year over year to $122.0 million, while gross profit declined by 41% to $15.5 million due to a significant weather impact in the first quarter, and a number of transitory headwinds, including the impact of the failure of a key equipment in the second half of the year and high waste starch stream disposal costs.
2026 Financial Guidance
The consolidated financial guidance for 2026 includes:
Sales are projected to be in the range of $480 million to $500 million.
Adjusted EBITDA is expected to be in the range of $90 million to $98 million.
Adjusted basic EPS is expected to be in the $1.50 to $1.80 range, with weighted average basic shares outstanding of approximately 21.4 million, and an effective tax rate of approximately 27%.
Full year capital expenditures are expected to be approximately $20 million.
Conference Call and Webcast Information
MGP Ingredients will host a conference call today, February 25, 2026, at 10 a.m. ET to discuss these results and current business trends. Investors can dial 844-308-6398 or 412-717-9605 (international) to listen to the live call. A live webcast will be available at the “News and Events” section of the company’s Investor Relations website at ir.mgpingredients.com/news-events. A replay of the conference call will be available on the company’s website.
About MGP Ingredients, Inc.
MGP Ingredients Inc. (Nasdaq: MGPI) has been formulating excellence since 1941 by bringing product ideas to life across the alcoholic beverage and specialty ingredient industries through three segments: Branded Spirits, Distilling Solutions, and Ingredient Solutions. MGPI is one of the leading spirits distillers with an award-winning portfolio of premium brands including Penelope, Rebel, Remus, and Yellowstone bourbons and El Mayor tequila, under the Luxco umbrella. With distilleries in Indiana and Kentucky; a tequila distillery in Arandas, Mexico; and bottling operations in Missouri, Ohio, and Northern Ireland, the company creates distilled spirits for customers including many world-renowned spirits brands. In addition, the company’s high-quality specialty fiber, protein, and starch ingredients provide functional, nutritional, and sensory solutions for a wide range of food products. To learn more visit MGPIngredients.com.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation statements about pressure on the brown goods business of MGP Ingredients, Inc. (the “Company” or “MGP”); operational reliability; premium plus momentum; productivity and cost discipline; ability to deliver growth, be better aligned, be more resilient, and be well positioned for value creation; and the Company’s 2026 outlook, including its expectations for sales, adjusted EBITDA, adjusted basic EPS, shares outstanding, tax rate, and capital expenditures. Forward-looking statements are usually identified by or are associated with words such as “intend,” “plan,” “believe,” “estimate,” “expect,” “anticipate,” “project,” “forecast,” “hopeful,” “should,” “may,” “will,” “could,” “encouraged,” “opportunities,” “potential,” and similar terminology. These forward-looking statements reflect management’s current beliefs and estimates of future economic circumstances, industry conditions, Company performance, Company financial results, and Company financial condition and are not guarantees of future performance.
All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Factors that could cause actual results to differ materially from our expectations include without limitation any effects of changes in consumer preferences and purchases and our ability to anticipate or react to those changes; our ability to compete effectively and any effects of industry dynamics and market conditions; unfavorable economic conditions; damage to our reputation or that of any of our key customers or their brands; failure to introduce successful new brands and products or have effective marketing or advertising; changes in public opinion about alcohol or our products; our reliance on our distributors to distribute our branded spirits; our reliance on fewer, more profitable customer relationships; interruptions in our operations or a catastrophic event at our facilities; decisions concerning the quantity of maturing stock of our aged distillate; any inability to successfully complete our capital projects or fund capital expenditures or any warehouse expansion issues; our reliance on a limited number of suppliers; work disruptions or stoppages; climate change and measures to address climate change; regulation and taxation and compliance with existing or future laws and regulations; tariffs, trade relations, and trade policies; excise taxes, incentives and customs duties; our ability to protect our intellectual property rights and defend against alleged intellectual property rights infringement claims; failure to secure and maintain listings in control states; labeling or warning requirements or limitations on the availability of our products; product recalls or other product liability claims; anti-corruption laws, trade sanctions, and restrictions; litigation or legal proceedings; limited rights of common stockholders and anti-takeover provisions in our governing documents; the impact of issuing shares of our common stock; higher costs or the unavailability and cost of raw materials, product ingredients, energy resources, or labor; failure of our information technology systems, networks, processes, associated sites, or service providers; inability to successfully implement our strategies; interest rate increases; reliance on key personnel; impairment charges; commercial, political, and financial risks; covenants and other provisions in our credit arrangements; pandemics or other health crises; ability to pay any dividends and make any share repurchases. For further information on these risks and uncertainties and other factors that could affect the Company’s business, see the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as well as the Company’s other SEC filings. The Company undertakes no obligation to update any forward-looking statements or information in this press release, except as required by law.
Non-GAAP Financial Measures
In addition to reporting financial information in accordance with U.S. GAAP, the Company provides certain non-GAAP financial measures that are not in accordance with, or alternatives for, GAAP. In addition to the comparable GAAP measures, the Company has disclosed adjusted selling, general, and administrative expenses (“SG&A”), adjusted operating income, adjusted income before income taxes, adjusted net income, adjusted MGP earnings, adjusted EBITDA, net debt, net debt leverage ratio, adjusted basic and diluted EPS, adjusted effective tax rate, as well as guidance for adjusted EBITDA and adjusted basic EPS. The presentation of these non-GAAP financial measures should be reviewed in conjunction with SG&A, operating income, income before income taxes, net income, net income used in earnings per common share calculation, debt, basic and diluted EPS, and effective tax rate computed in accordance with U.S. GAAP and should not be considered a substitute for the GAAP measure. We believe that the non-GAAP measures provide useful information to investors regarding the Company's performance and overall results of operations. In addition, management uses these non-GAAP measures in conjunction with GAAP measures when evaluating the Company’s operating results compared to prior periods on a consistent basis, assessing financial trends, and for forecasting purposes. Non-GAAP financial measures may not provide information that is directly comparable to other companies, even if similar terms are used to identify such measures. The attached schedules provide a full reconciliation of historical non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure. Full year 2026 guidance measures of adjusted EBITDA and adjusted basic EPS are provided on a non-GAAP basis without a reconciliation to the most directly comparable GAAP measures because the Company is unable to predict with a reasonable degree of certainty certain items contained in the GAAP measures without unreasonable efforts. Such items include without limitation, acquisition related expenses, restructuring and related expenses, and other items not reflective of the Company's ongoing operations.
MGP INGREDIENTS, INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Dollars in thousands, except share and per share amounts)
Quarter Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
Sales
$
138,316
$
180,796
$
536,375
$
703,625
Cost of sales
90,057
106,321
336,966
417,308
Gross profit
48,259
74,475
199,409
286,317
Advertising and promotion expenses
9,307
10,513
31,083
40,508
Selling, general, and administrative expenses
21,532
20,449
84,819
81,391
Impairment of long-lived assets and other
—
—
—
137
Goodwill and indefinite-lived intangible asset impairment
152,622
73,755
152,622
73,755
Change in fair value of contingent consideration
—
200
25,500
16,100
Operating income (loss)
(135,202
)
(30,442
)
(94,615
)
74,426
Interest expense, net
(1,554
)
(2,041
)
(7,044
)
(8,439
)
Other income, net
352
538
1,309
2,455
Income (loss) before income taxes
(136,404
)
(31,945
)
(100,350
)
68,442
Income tax expense (benefit)
(1,773
)
10,053
7,482
33,977
Net income (loss)
(134,631
)
(41,998
)
(107,832
)
34,465
Net loss (income) attributable to noncontrolling interest
(2
)
36
23
198
Net income (loss) attributable to MGP Ingredients, Inc.
(134,633
)
(41,962
)
(107,809
)
34,663
Income (loss) attributable to participating securities
1,638
466
1,295
(373
)
Net income (loss) used in earnings per share calculation
$
(132,995
)
$
(41,496
)
$
(106,514
)
$
34,290
Weighted average common shares
Basic
21,374,904
21,732,872
21,363,047
22,015,439
Diluted
21,374,904
21,732,872
21,363,047
22,015,439
Earnings per common share
Basic
$
(6.22
)
$
(1.91
)
$
(4.99
)
$
1.56
Diluted
$
(6.22
)
$
(1.91
)
$
(4.99
)
$
1.56
MGP INGREDIENTS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
December 31,
2025
2024
ASSETS
Current Assets:
Cash and cash equivalents
$
18,460
$
25,273
Receivables, net
116,160
148,488
Inventory
382,741
364,944
Prepaid expenses
2,139
3,983
Refundable income taxes
3,209
3,448
Total current assets
522,709
546,136
Property, plant, and equipment
594,898
562,714
Less accumulated depreciation and amortization
(266,911
)
(246,042
)
Property, plant, and equipment, net
327,987
316,672
Operating lease right-of-use assets, net
13,847
15,540
Investment in joint venture
8,211
7,024
Intangible assets, net
244,696
268,451
Goodwill
115,667
247,789
Other assets
2,747
4,173
TOTAL ASSETS
$
1,235,864
$
1,405,785
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Current maturities of long-term debt
$
6,400
$
6,400
Accounts payable
54,589
66,336
Contingent consideration
110,800
—
Federal and state excise taxes payable
5,755
5,358
Accrued expenses and other
22,507
14,356
Total current liabilities
200,051
92,450
Long-term debt, less current maturities
49,735
121,277
Convertible senior notes
196,183
195,864
Long-term operating lease liabilities
10,561
11,940
Contingent consideration
—
85,300
Other noncurrent liabilities
2,534
2,981
Deferred income taxes
60,010
63,430
Total liabilities
519,074
573,242
Total equity
716,790
832,543
TOTAL LIABILITIES AND TOTAL EQUITY
$
1,235,864
$
1,405,785
MGP INGREDIENTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
Year Ended December 31,
2025
2024
Cash Flows from Operating Activities
Net income (loss)
$
(107,832
)
$
34,465
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization
24,086
21,989
Impairment of long-lived assets and other
—
137
Goodwill and indefinite-lived intangible asset impairment
152,622
73,755
Share-based compensation
4,704
4,016
Equity method investment gain
(1,187
)
(1,827
)
Deferred income taxes, including change in valuation allowance
(3,420
)
359
Change in fair value of contingent consideration
25,500
16,100
Other, net
831
465
Changes in operating assets and liabilities:
Receivables, net
32,189
(4,375
)
Inventory
(18,145
)
(18,155
)
Prepaid expenses
1,831
(409
)
Income taxes payable (refundable)
239
(2,258
)
Accounts payable
1,619
(9,099
)
Accrued expenses and other
8,424
(15,111
)
Federal and state excise taxes payable
397
3,107
Other, net
(330
)
(881
)
Net cash provided by operating activities
121,528
102,278
Cash Flows from Investing Activities
Additions to property, plant, and equipment
(45,488
)
(71,181
)
Other, net
(37
)
(377
)
Net cash used in investing activities
(45,525
)
(71,558
)
Cash Flows from Financing Activities
Payment of dividends and dividend equivalents
(10,325
)
(10,630
)
Repurchase of Common Stock
(1,035
)
(48,773
)
Loan fees paid related to borrowings
(2,762
)
—
Proceeds from long-term debt
28,000
125,000
Principal payments on long-term debt
(97,400
)
(89,400
)
Net cash used in financing activities
(83,522
)
(23,803
)
Effect of exchange rate changes on cash and cash equivalents
706
(32
)
Increase (decrease) in cash and cash equivalents
(6,813
)
6,885
Cash and cash equivalents, beginning of period
25,273
18,388
Cash and cash equivalents, end of period
$
18,460
$
25,273
MGP INGREDIENTS, INC.
RECONCILIATION OF SELECTED GAAP MEASURES TO ADJUSTED NON-GAAP MEASURES
(UNAUDITED) (in thousands)
Quarter Ended December 31, 2025
SG&A
Operating Income (loss)
Income (loss) before Income Taxes
Net Income (loss) (b)
MGP Earnings(a)
Basic and Diluted EPS
Reported GAAP Results
$
21,532
$
(135,202
)
$
(136,404
)
$
(134,631
)
$
(132,995
)
$
(6.22
)
Goodwill and indefinite-lived intangible asset impairment(c)
—
152,622
152,622
147,374
145,562
6.81
Executive transition costs(d)
(953
)
953
953
709
700
0.03
Professional service fees(e)
(113
)
113
113
84
83
—
Restructuring and other costs(f)
(190
)
190
190
141
140
0.01
Adjusted Non-GAAP results
$
20,276
$
18,676
$
17,474
$
13,677
$
13,490
$
0.63
Quarter Ended December 31, 2024
SG&A
Operating Income (loss)
Income (loss) before Income Taxes
Net Income (loss)
MGP Earnings(a)
Basic and Diluted EPS
Reported GAAP Results
$
20,449
$
(30,442
)
$
(31,945
)
$
(41,998
)
$
(41,496
)
$
(1.91
)
Goodwill impairment(c)
—
73,755
73,755
73,755
72,943
3.36
Fair value of contingent consideration(g)
—
200
200
152
150
0.01
Business acquisition costs(h)
(15
)
15
15
11
11
—
Executive transition costs(d)
(2,857
)
2,857
2,857
2,171
2,145
0.10
Unusual items costs(i)
(408
)
408
408
310
306
0.01
Adjusted Non-GAAP results
$
17,169
$
46,793
$
45,290
$
34,401
$
34,059
$
1.57
Year Ended December 31, 2025
SG&A
Operating Income (loss)
Income (loss) before Income Taxes
Net Income (loss)(b)
MGP Earnings(a)
Basic and Diluted EPS
Reported GAAP Results
$
84,819
$
(94,615
)
$
(100,350
)
$
(107,832
)
$
(106,514
)
$
(4.99
)
Goodwill and indefinite-lived intangible asset impairment(c)
—
152,622
152,622
147,374
145,562
6.81
Fair value of contingent consideration(g)
—
25,500
25,500
18,972
18,739
0.88
Executive transition costs(d)
(2,778
)
2,778
2,778
2,067
2,041
0.10
Professional service fees(e)
(495
)
495
495
368
364
0.02
Restructuring and other costs(f)
(803
)
803
803
597
590
0.03
Adjusted Non-GAAP results
$
80,743
$
87,583
$
81,848
$
61,546
$
60,782
$
2.85
Year Ended December 31, 2024
SG&A
Operating Income
Income before Income Taxes
Net Income
MGP Earnings(a)
Basic and Diluted EPS
Reported GAAP Results
$
81,391
$
74,426
$
68,442
$
34,465
$
34,290
$
1.56
Goodwill impairment(c)
—
73,755
73,755
73,755
72,950
3.31
Impairment of long-lived assets and other(j)
—
137
137
104
103
0.01
Fair value of contingent consideration(g)
—
16,100
16,100
12,252
12,118
0.55
Business acquisition costs(h)
(116
)
116
116
88
87
—
Executive transition costs(d)
(4,075
)
4,075
4,075
3,101
3,067
0.14
Unusual items costs(i)
(2,081
)
2,081
2,081
1,584
1,566
0.07
Adjusted Non-GAAP results
$
75,119
$
170,690
$
164,706
$
125,349
$
124,181
$
5.64
MGP INGREDIENTS, INC.
DESCRIPTION OF NON-GAAP ITEMS
(a)
MGP Earnings has been defined as "Net income (loss) used in earnings per share calculation," which accounts for the impacts of the net loss (income) attributable to noncontrolling interest and income (loss) attributable to participating securities.
(b)
Excluding the impacts of the non-GAAP items, the effective tax rate was 21.7% and 24.8% for the quarter and year ended December 31, 2025, respectively.
(c)
Goodwill and indefinite-lived intangible asset impairment relates to the write down of goodwill and indefinite-lived intangible assets during the quarter and year ended December 31, 2025. Goodwill impairment relates to the write down of the goodwill during the quarter and year ended December 31, 2024. The goodwill impairment is nondeductible for income tax purposes. It is included in the Consolidated Statement of Income (Loss) as a component of operating income and relates to the Branded Spirits segment.
(d)
The executive transition costs are included in the Consolidated Statement of Income (Loss) within the selling, general and administrative line item. The adjustment includes costs related to the transition of certain executive positions.
(e)
The professional services fees are included in the Consolidated Statement of Income (Loss) within the selling, general, and administrative line item. The adjustment includes costs related to professional services in conjunction with the goodwill impairment valuation.
(f)
The restructuring and other costs are included in the Consolidated Statement of Income (Loss) within the selling, general, and administrative line item. The adjustment includes special one-time severance costs related to the reduction in force that occurred during 2025.
(g)
Fair value of contingent consideration relates to the quarterly adjustment of the contingent consideration liability related to the acquisition of Penelope Bourbon LLC. It is included in the Consolidated Statement of Income (Loss) as a component of operating income and relates to the Branded Spirits segment.
(h)
Business acquisition costs are included in the Consolidated Statement of Income (Loss) within the selling, general, and administrative line item and include transaction and integration costs associated with the acquisition of Penelope Bourbon LLC.
(i)
The unusual items costs are included in the Consolidated Statement of Income (Loss) within the selling, general, and administrative line item. The adjustment includes professional and legal costs associated with special projects.
(j)
The impairment of long-lived assets and other relates to the closure of the Company's distillery located in Atchison, Kansas. For the year ended December 31, 2024, the full expense amount relates to miscellaneous expenses. Impairment of long-lived assets and other are included in the Consolidated Statement of Income (Loss) as a component of operating income and relates to the Distilling Solutions segment.
MGP INGREDIENTS, INC.
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA AND NET DEBT LEVERAGE RATIO
(UNAUDITED) (in thousands)
Quarter Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
Net Income (loss)
$
(134,631
)
$
(41,998
)
$
(107,832
)
$
34,465
Interest expense
1,554
2,041
7,044
8,439
Income tax expense (benefit)
(1,773
)
10,053
7,482
33,977
Depreciation and amortization
6,262
5,691
24,086
21,989
Share based compensation(a)
1,129
440
4,216
3,188
Equity method investment gain
(318
)
(381
)
(1,187
)
(1,827
)
Goodwill and indefinite-lived intangible asset impairment
152,622
73,755
152,622
73,755
Executive transition costs
953
2,857
2,778
4,075
Professional service fees
113
—
495
—
Restructuring and other costs
190
—
803
—
Fair value of contingent consideration
—
200
25,500
16,100
Business acquisition costs
—
15
—
116
Unusual items costs
—
408
—
2,081
Impairment of long-lived assets and other
—
—
—
137
Adjusted EBITDA
$
26,101
$
53,081
$
116,007
$
196,495
Total debt
$
252,318
$
323,541
Cash and cash equivalents
18,460
25,273
Net debt
$
233,858
$
298,268
Net debt leverage ratio(b)
2.0
1.5
(a)
This amount excludes share based compensation related to executive transition costs
(b)
Net leverage ratio defined as net debt divided by adjusted EBITDA
The non-GAAP adjusted EBITDA measure is defined as earnings before interest expense, income tax expense (benefit), depreciation and amortization, share based compensation, equity method investment gain, goodwill and indefinite-lived intangible asset impairment, executive transition costs, professional service fees, restructuring and other costs, fair value of contingent consideration, business acquisition costs, unusual items costs and impairment of long-lived assets and other.
See "Reconciliation of selected GAAP measures to adjusted non-GAAP measures" and "Description of Non-GAAP items" for further details.
MGP INGREDIENTS, INC.
OPERATING SEGMENT RESULTS
(Dollars in thousands)
BRANDED SPIRITS
Quarter Ended December 31,
Quarter versus Quarter Sales Change Increase/(Decrease)
2025
2024
$ Change
% Change
Premium plus
$
31,194
$
28,292
$
2,902
10
%
Mid
16,131
16,844
(713
)
(4
)
Value
8,159
10,402
(2,243
)
(22
)
Other
7,962
8,467
(505
)
(6
)
Total Branded Spirits Sales
$
63,446
$
64,005
$
(559
)
(1
)%
Gross profit
$
28,918
$
29,585
$
(667
)
(2
)%
Gross margin %
45.6
%
46.2
%
(0.6
)
pp
Operating loss
$
(142,022
)
$
(63,814
)
$
(78,208
)
123
%
Depreciation and amortization
$
2,165
$
2,168
$
(3
)
—
%
DISTILLING SOLUTIONS
Quarter Ended December 31,
Quarter versus Quarter Sales Change Increase/(Decrease)
2025
2024
$ Change
% Change
Brown goods
$
31,225
$
66,989
$
(35,764
)
(53
)%
Warehouse services
8,258
8,818
(560
)
(6
)
White goods and other co-products
4,093
6,238
(2,145
)
(34
)
Total Distilling Solutions Sales
$
43,576
$
82,045
$
(38,469
)
(47
)%
Gross profit
$
16,910
$
36,727
$
(19,817
)
(54
)%
Gross margin %
38.8
%
44.8
%
(6.0
)
pp
Operating income
$
16,152
$
35,240
$
(19,088
)
(54
)%
Depreciation and amortization
$
2,056
$
1,993
$
63
3
%
INGREDIENT SOLUTIONS
Quarter Ended December 31,
Quarter versus Quarter Sales Change Increase/(Decrease)
2025
2024
$ Change
% Change
Specialty wheat starches
$
16,832
$
18,359
$
(1,527
)
(8
)%
Specialty wheat proteins
11,050
12,821
(1,771
)
(14
)
Commodity wheat starches
2,274
3,505
(1,231
)
(35
)
Commodity wheat proteins
726
61
665
1,090
%
Biofuel and other
412
—
412
n/a
Total Ingredient Solutions Sales
$
31,294
$
34,746
$
(3,452
)
(10
)%
Gross profit
$
2,431
$
8,163
$
(5,732
)
(70
)%
Gross margin %
7.8
%
23.5
%
(16
)
pp
Operating income
$
1,407
$
6,751
$
(5,344
)
(79
)%
Depreciation and amortization
$
1,686
$
1,194
$
492
41
%
MGP INGREDIENTS, INC.
OPERATING SEGMENT RESULTS
(Dollars in thousands)
BRANDED SPIRITS
Year Ended December 31,
Year versus Year Sales Change Increase/(Decrease)
2025
2024
$ Change
% Change
Premium Plus
$
116,730
$
110,991
$
5,739
5
%
Mid
59,486
63,454
(3,968
)
(6
)
Value
32,606
42,100
(9,494
)
(23
)
Other
24,119
24,271
(152
)
(1
)
Total Branded Spirits Sales
$
232,941
$
240,816
$
(7,875
)
(3
)%
Gross profit
$
115,320
$
118,196
$
(2,876
)
(2
)%
Gross margin %
49.5
%
49.1
%
0.4
pp
Operating loss
$
(127,680
)
$
(48,279
)
$
(79,401
)
164
%
Depreciation and amortization
$
8,607
$
8,035
$
572
7
%
DISTILLING SOLUTIONS
Year Ended December 31,
Year versus Year Sales Change Increase/(Decrease)
2025
2024
$ Change
% Change
Brown goods
$
128,450
$
265,873
$
(137,423
)
(52
)%
Warehouse services
32,388
33,430
(1,042
)
(3
)
White goods and other co-products
20,562
32,901
(12,339
)
(38
)
Total Distilling Solutions Sales
$
181,400
$
332,204
$
(150,804
)
(45
)%
Gross profit
$
68,602
$
141,927
$
(73,325
)
(52
)%
Gross margin %
37.8
%
42.7
%
(4.9
)
pp
Operating income
$
65,079
$
137,468
$
(72,389
)
(53
)%
Depreciation and amortization
$
8,177
$
7,893
$
284
4
%
INGREDIENT SOLUTIONS
Year Ended December 31,
Year versus Year Sales Change Increase/(Decrease)
2025
2024
$ Change
% Change
Specialty wheat starches
$
68,124
$
76,005
$
(7,881
)
(10
)%
Specialty wheat proteins
39,915
41,768
(1,853
)
(4
)
Commodity wheat starches
10,371
12,351
(1,980
)
(16
)
Commodity wheat proteins
3,109
481
2,628
546
Biofuel and other
515
—
515
n/a
Total Ingredient Solutions Sales
$
122,034
$
130,605
$
(8,571
)
(7
)%
Gross profit
$
15,487
$
26,194
$
(10,707
)
(41
)%
Gross margin %
12.7
%
20.1
%
(7.4
)
pp
Operating income
$
10,514
$
20,531
$
(10,017
)
(49
)%
Depreciation and amortization
$
5,899
$
4,711
$
1,188
25
%
MGP INGREDIENTS, INC.
DILUTIVE SHARES OUTSTANDING CALCULATION
(UNAUDITED)
Quarter Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
Principal amount of the bonds
$
201,250,000
$
201,250,000
$
201,250,000
$
201,250,000
Par value
$
1,000
$
1,000
$
1,000
$
1,000
Number of bonds outstanding (b)
201,250
201,250
201,250
201,250
Initial conversion rate
10.3911
10.3911
10.3911
10.3911
Conversion price
$
96.23620
$
96.23620
$
96.23620
$
96.23620
Average share price (c)
$
24.37111
$
54.41547
$
29.08195
$
75.30083
Impact of conversion (d)
$
—
$
—
$
—
$
—
Cash paid for principal
(201,250,000
)
(201,250,000
)
(201,250,000
)
(201,250,000
)
Conversion premium
$
—
$
—
$
—
$
—
Average share price
$
24.37111
$
54.41547
$
29.08195
$
75.30083
Conversion premium in shares (a) (e)
—
—
—
—
(a)
Number of bonds outstanding is calculated by taking the principal amount of the bonds divided by the par value.
(b)
Average share price is calculated by taking the average of the daily closing share price for the period. If the average share price is less than the conversion price of $96.23620 per share, the impact to EPS is anti-dilutive and therefore the shares were excluded from the diluted EPS calculation.
(c)
Impact of conversion is calculated by taking the number of bonds outstanding multiplied by the initial conversion rate multiplied by the average share price. If the average share price is less than the conversion price then the impact of conversion is zero.
(d)
The impacts of the Convertible Senior Notes were included in the diluted weighted average common shares outstanding if the impact was dilutive. The Convertible Senior Notes would only have a dilutive impact if the average market price per share during the quarter and year to date period exceeds the conversion price of $96.23620 per share.
(e)
Conversion premium in shares is calculated by taking the conversion premium divided by the average share price. If the average share price is less than the conversion price, then the conversion premium in shares is zero.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260225941767/en/
For More Information
Investors:
Amit Sharma, a.sharma@mgpi.com
Media:
Patrick Barry, 314.540.3865, patrick@byrnepr.net
Original: MGP Ingredients Reports Fourth-Quarter and Full-Year 2025 Results
RonnieD
18年前
February 7, 2008 - 8:01 AM EST
MGP Ingredients Announces Second Quarter FY 2008 Results
Highlights:
- Q2 total sales of $93.9 million increased 7.2% over year ago
- Q2 diluted EPS of $0.31 compared with $0.40 in year-ago quarter
- Q2 net income includes $7 million pre-tax gain on litigation settlement
- Sales in ingredient solutions segment show significant improvement vs. year ago
- Distillery results impacted by lower ethanol pricing and higher corn costs
ATCHISON, Kan., Feb. 7 /PRNewswire-FirstCall/ -- MGP Ingredients, Inc. (Nasdaq: MGPI) today reported net income of $5.3 million, or $0.31 in diluted earnings per share, for the second quarter of fiscal 2008, which ended December 30, 2007. These results include a $7 million gain on settlement of litigation, net of related expenses, without which the company would have reported a loss before taxes of $2 million. This compares with net income of $6.8 million, or $0.40 in diluted earnings per share, for the second quarter of fiscal 2007. Total sales in the second quarter of fiscal 2008 were $93.9 million, an increase of 7.2 percent from sales a year ago.
Total ingredient solutions sales increased over 70 percent led principally by higher sales of vital wheat gluten. Sales of specialty ingredients improved by 35 percent compared with the previous year's quarter, while also showing a strong gain over the first quarter of the current fiscal year. The growing contribution from specialty ingredients helped to offset higher wheat costs, which increased 51.3 percent over a year ago. A pre-tax loss of $124,000 in the ingredient solutions segment included inventory write-downs of approximately $938,000. This compares with a loss of $ 2.8 million in last year's second quarter. Distillery products sales declined by 5.8 percent compared with fiscal 2007 second quarter levels. This was due to a significant decline in selling prices for fuel grade alcohol (ethanol) and reduced sales units compared with the year-ago period. The company's earnings performance in the distillery products segment was also adversely affected by higher costs for corn, the principal raw material used in the alcohol production process. The per-bushel cost of corn averaged nearly 37.8 percent higher than the prior year's second quarter. Pre-tax income in the distillery products segment declined to $1.3 million compared with $15.7 million in last year's second quarter. Pre-tax losses of $3.1 million, including inventory write-downs of approximately $356,000, were reported in the company's other segment, consisting primarily of products in development for pet and plant-based biopolymer applications.
On December 27, 2007, the company settled its two year patent infringement and contract litigation and was paid $8 million. Professional fees related to this litigation in the first and second quarters of fiscal 2008 have been netted against the gross proceeds for a net amount of $7,046,000 and recorded as a separate line item below income from operations. The company used the proceeds to reduce its line of credit. As a result of a February 6 amendment to its line of credit agreement increasing the maximum borrowing capacity to $30 million, at that date the company had $18 million available for borrowings under its line of credit.
'We have been feeling the impact of lower ethanol pricing on distillery profits since the fourth quarter of last fiscal year,' said Ladd Seaberg, chairman and chief executive officer. 'This situation in the current year's second quarter was further aggravated by near record corn prices, a major component of our cost of goods sold. We also fell short of achieving full planned distillery capacity due to some temporary fermentation issues which have since been resolved. Although corn prices have remained at or near this higher level and, based upon Chicago Board of Trade Futures, are expected to increase this summer, we are encouraged by the prospect of strengthened ethanol pricing for the balance of the fiscal year.
Seaberg added, 'The progress we are making with our ingredient solutions segment is more apparent on the top line than the bottom line. Granted we did benefit from gluten sales but we are also achieving better sales and margin improvements in our core specialty ingredients. As we continue to migrate to a higher mix of value-added products, the impact of rising wheat costs should lessen over time.'
Segment Results
The following is a summary of sales and pre-tax profits/(loss) allocated to each operating segment for the second quarter and six months ended December 30, 2007, and the second quarter and six months ended December 31, 2006. Interest expense, investment income and other general miscellaneous expenses are classified as corporate.
(In thousands) Second Qtr Second Qtr Six Months Six Months
FY 2008 FY 2007 FY 2008 FY 2007
Ingredient Solutions
Net Sales $24,963 $14,665 $47,251 $29,089
Pre-Tax Inc. (Loss) (124) (2,757) 187 (5,220)
Distillery Products
Net Sales $67,523 $71,682 $131,881 $140,687
Pre-Tax Income 1,338 15,711 2,017 30,953
Other
Net Sales $1,509 $1,298 $2,840 $2,864
Pre-Tax Income (Loss) (3,075) (2,570) (4,125) (3,669)
Corporate ($181) $974 ($567) $109
Gain on Settlement of
litigation, net of
related expenses $7,046 -- $7,046 --
Total sales of distillery products in the second quarter of fiscal 2008 declined approximately 5.8 percent to $67.5 million compared to the same quarter of fiscal 2007. This decline was due to an $8.1 million, or 21 percent, decrease in sales of fuel grade alcohol. Sales of food grade alcohol improved by $2.3 million, or 9.6 percent, over the prior year with gains in both beverage and industrial applications. Sales of distillers feed, the principal by-product of the alcohol production process, increased by approximately $846,000, or 11.7 percent, over last year's second quarter.
Total ingredient solutions sales in the second quarter of fiscal 2008 increased by approximately $10.3 million, or 70.2 percent, compared to the prior year's quarter. Sales of specialty proteins and starches increased by $3.8 million, or 35.1 percent, during the quarter compared to the same quarter in fiscal 2007. The company also reported a $6.3 million increase in sales of vital wheat gluten compared to a year ago, which resulted from significantly higher volumes as well as per-unit pricing compared with year-ago levels. Revenues for commodity starch decreased $115,000, or 12.3 percent, as a result of reduced sales volume consistent with the implementation of our strategy of continued development and commercialization of our value-added wheat proteins and starches.
Sales of other products, consisting primarily of pet products and plant-based biopolymers, increased $211,000, or 16.3 percent, compared to the same quarter a year ago due to improved per-unit prices related to product mix, as well as increased unit sales.
Results for Six Months
For the first six months of fiscal 2008, the company had net income of $4.9 million, or $0.29 in diluted earnings per share, on total sales of $181.9 million, compared with net income of $13.8 million, or $0.82 in diluted earnings per share, on sales of $172.6 million for the first six months of fiscal 2007. These results include a $7 million gain on settlement of litigation, net of related expenses, without which the company would have reported a loss before taxes of $2.5 million. This increase in sales was primarily due to an $18.2 million, or 62 percent increase, in ingredients solutions sales, which resulted mainly from higher sales of vital wheat gluten. Distillery products sales declined by $8.8 million, or 6 percent, for the six month period compared to a year-ago.
Pre-tax income for the distillery segment was $2.0 million, a decrease of $28.9 million over the prior year's first six months. Pre-tax income in the ingredient solutions segment was $187,000 and compares favorably to the pre-tax loss of $5.2 million incurred in the same period in the prior fiscal year. Net income for the six months of fiscal 2008 included a net litigation settlement of $7 million.
Income Taxes
For the second quarter, the company recorded an income tax benefit of $260,000 for an effective rate of (5.2) percent compared to a provision of $4.5 million for the same quarter a year ago for an effective rate of 39.8 percent. For the six-months, the income tax benefit was $388,000 for an effective rate of (8.5) percent compared to a tax provision of $8.4 million for the previous year-to-date period for an effective rate of 37.7 percent. During the second quarter, management determined that a valuation allowance related to unused tax credits was no longer appropriate and was therefore removed, resulting in a new tax benefit in the quarter of approximately $2.0 million. Excluding certain one-time discrete items applicable to this quarter, the effective rate was 34.0 percent.
On Track with Top Line Growth in Ingredient Solutions
'We are most encouraged by our initial results in the reconfigured ingredient solutions business,' said Tim Newkirk, president and chief operating officer. 'While we still have further to go before reaching volume levels that will generate sustained profitability, the product mix continues to shift in the right direction. The key measure is our average sales price, which is up significantly over a year ago due to an improved product mix. As further evidence, we showed sequential improvement over our first quarter sales in key product lines, including our Fibersym(R) RW resistant starch, as well as our Wheatex(R) textured proteins. Along with a renewed focus on specialty sales, we have better visibility into our operations with a new ERP system. During the quarter we identified a portion of our inventories that we felt were no longer aligned with our new ingredient solutions technology platforms. This resulted in a write-down of those products, impacting pre-tax income on both our ingredient solutions and other segments. Excluding the write-downs, the ingredients segment continues to track our plan for strengthened contributions to our bottom line. It needs to be emphasized that we are still very early in the process of re-engaging our customers across a growing number of new opportunities.'
Newkirk added, 'This was a particularly challenging quarter for us on the ethanol side, where we have been dealing with lower selling prices for some time and because we fell short of our alcohol production targets, estimated to be between 10 and 15 percent of our capacity. The higher corn costs only aggravated the situation. We fully expect to ramp up production beginning in the current quarter, and from a contracting perspective we are in an ideal position to capture higher fuel pricing. If ethanol prices continue to strengthen, we would expect improvements in the second half of our fiscal year.'
Seaberg concluded, 'We continue to experience earnings volatility on the fuel alcohol side of our business, but are encouraged by the recent firming of prices. At the same time, our food grade alcohol products remain a solid contributor to our bottom line. This is not the first time in our history that we have had to deal with commodity price headwinds. With new equipment and operational improvements we remain focused on lowering our per-gallon alcohol production costs. On the ingredients side, it's all about gaining traction. With more resources than ever concentrated on our best prospects, we look forward to generating more positive results as we go forward.'
Investor Conference Call
The company will host an investor conference call today at 10 a.m. central time to review second quarter results. Stockholders and other interested parties may listen to the call live via telephone by dialing 888-603-6873 domestically or 973-582-2706 internationally by 9:50 a.m. central time, or access it on the Internet at http://www.mgpingredients.com. The conference identification number for entering the call is 32432143.
About MGP Ingredients
In business since 1941, MGP Ingredients, Inc. is a recognized pioneer in the development and production of natural grain-based products. The Company has facilities in Atchison, Kan., Pekin, Ill., Kansas City, Kan., and Onaga, Kan. that utilize the latest technologies to assure high quality products and to maintain efficient production and service capabilities.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements as well as historical information. Forward-looking statements are usually identified by or are associated with such words as 'intend,' 'plan', 'believe,' 'estimate,' 'expect,' 'anticipate,' 'hopeful,' 'should,' 'may,' 'will', 'could' and or the negatives of these terms or variations of them or similar terminology. They reflect management's current beliefs and estimates of future economic circumstances, industry conditions, company performance and financial results and are not guarantees of future performance. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. Important factors that could cause actual results to differ materially from our expectations include, among others: (i) the availability and cost of grain, (ii) fluctuations in gasoline prices, (iii) fluctuations in energy costs, (iv) competitive environment and related market conditions, (v) our ability to realize operating efficiencies, (vi) the effectiveness of our hedging programs; (vii) access to capital and (viii) actions of governments. For further information on these and other risks and uncertainties that may affect the company's business, see Item 1A. Risk Factors in the company's Annual Report on Form 10-K for the fiscal year ended July 1, 2007.
MGP INGREDIENTS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited) Quarter Ended Year to Date Ended
(Dollars in thousands, Dec. 30, Dec. 31, Dec. 30, Dec. 31,
except per share) 2007 2006 2007 2006
Net Sales $93,995 $87,645 $181,972 $172,640
Cost of Sales 90,741 71,147 172,799 140,609
Gross Profit $3,254 $16,498 $9,173 $32,031
Selling, General and
Administrative Expenses 4,815 5,108 11,094 9,967
Income from Operations $(1,561) $11,390 $(1,921) $22,064
Gain on settlement of
litigation, net of
related expenses 7,046 - 7,046 -
Other Income, Net (76) 200 114 560
Interest Expense (405) (232) (681) (451)
Income Before Income
Taxes 5,004 11,358 4,558 22,173
Provision for Income Taxes (260) 4,523 (388) 8,362
Net Income $5,264 $6,835 $4,946 $13,811
Other Comprehensive Gain
(Loss) 4,284 125 5,634 (65)
Comprehensive Income $9,548 $6,960 $10,580 $13,746
Basic Earnings Per Common
Share $0.32 $0.42 $0.30 $0.84
Diluted Earnings Per
Common Share $0.31 $0.40 $0.29 $0.82
Weighted average shares
outstanding - Basic 16,513,162 16,440,705 16,505,755 16,374,787
Weighted average shares
outstanding - Diluted 16,843,054 16,965,539 16,894,324 16,902,584
CONSOLIDATED BALANCE SHEET
Dec. 30, 2007 July 1,
(Dollars in thousands) (unaudited) 2007
ASSETS
Current Assets:
Cash and cash equivalents $- $3,900
Restricted cash 3 3,336
Receivables (less allowance of $223 34,784 34,298
and $207 respectively)
Inventories 61,287 42,595
Prepaid expenses 2,167 623
Deposits 3,247 414
Deferred income tax assets 2,394 5,759
Refundable income taxes - 364
Total Current Assets $103,882 $91,289
Property and Equipment, At Cost 363,867 360,472
Less accumulated depreciation (235,602) (228,260)
Net Property, plant and equipment $128,265 $132,212
Investment in joint venture 358 -
Other Assets 511 803
TOTAL ASSETS $233,016 $224,304
Capital Structure
Net Investment in:
Working capital $59,058 $48,704
Property, plant and equipment 128,265 132,212
Other non-current assets 869 803
Total $188,192 $181,719
Dec. 30, 2007 July 1,
(Dollars in thousands) (unaudited) 2007
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current maturities on long-term debt $3,826 $4,151
Revolving credit facility 10,000 7,000
Accounts payable 16,061 15,814
Accrued expenses 7,801 7,769
Income taxes payable 21 -
Deferred revenue 7,115 7,851
Total Current Liabilities $44,824 $42,585
Other Liabilities:
Long-Term Debt 7,169 8,940
Post-Retirement Benefits 8,115 7,860
Deferred Income Taxes 16,269 16,771
Total Other Liabilities $31,553 $33,571
Stockholders' Equity 156,639 148,148
TOTAL LIAB./STOCKHOLDERS EQ. $233,016 $224,304
Financed By:
Long-term debt* $7,169 $8,940
Deferred liabilities 24,384 24,631
Shareholders' equity 156,639 148,148
Total $188,192 $181,719
*Excludes short-term portion. Short term portion is included within
working capital.
MGP INGREDIENTS, INC.
(unaudited) Quarter Ended Year to Date Ended
Dec. 30, Dec. 31, Dec. 30, Dec. 31,
(Dollars in thousands) 2007 2006 2007 2006
Financial Highlights
EBITDA (1) $9,226 $15,111 $12,883 $29,617
Depreciation &
Amortization $3,817 $3,521 $7,644 $6,993
Capital Expenditures $1,755 $3,690 $3,228 $9,281
Working Capital $59,058 $56,205 $59,058 $56,205
(1) EBITDA equals earnings before taxes, interest, depreciation and
amortization. We have included EBITDA because we believe it provides
stockholders with additional information to measure our performance
and liquidity. EBITDA is not a recognized term under generally
accepted accounting principles and does not purport to be an
alternative to net income as a measure of operating performance or to
cash flows from operating activities as a measure of liquidity.
Additionally, it is not intended to be a measure of free cash flow for
management's discretionary use, as it does not consider certain cash
requirements such as interest payments, tax payments and debt service
requirements. Because not all companies use identical calculations,
this presentation may not be comparable to other similarly titled
measures of other companies.
The following table sets forth a reconciliation of net income to EBITDA
for the year to date periods ended December 30, 2007 and December 31, 2006 (in
thousands):
(unaudited) Quarter Ended Year to Date Ended
Dec. 30, Dec. 31, Dec. 30, Dec. 31,
(Dollars in thousands) 2007 2006 2007 2006
EBITDA Reconciliation:
Net Income $5,264 $6,835 $4,946 $13,811
Provision (benefit)
for income taxes (260) 4,523 (388) 8,362
Interest expense 405 232 681 451
Depreciation 3,817 3,521 7,644 6,993
EBITDA $9,226 $15,111 $12,883 $29,617
The following table sets forth a reconciliation of EBITDA to cash flows from operations for the year to date periods ended December 30, 2007 and December 31, 2006 (in thousands):
(unaudited) Year to Date Ended
Dec. 30, Dec. 31,
(Dollars in thousands) 2007 2006
EBITDA $12,883 $29,617
Benefit (provision) for income taxes 388 (8,362)
Interest expense (681) (451)
Non-cash charges against (credits to) net income:
Deferred income taxes 2,921 1,974
Loss (gain) on sale of assets 10 (3)
Changes in operating assets and liabilities (14,575) (12,680)
Cash flow from operations $946 $10,095
SOURCE MGP Ingredients, Inc.
Source: PR Newswire (February 7, 2008 - 8:01 AM EST)
News by QuoteMedia
www.quotemedia.com
lowman
21年前
MGP Ingredients Announces Fiscal 2006 First Quarter Results
11/9/2005 8:01:49 AM
ATCHISON, Kan., Nov 09, 2005 /PRNewswire-FirstCall via COMTEX/ --MGP Ingredients, Inc. (MGPI) today reported net income of $3,731,000, or $0.23 per common share, for its fiscal 2006 first quarter, which ended September 30. This compares to net income of $291,000, or $0.02 per share, for the first quarter of fiscal 2005. Net sales in the current year's first quarter totaled $77,046,000 compared to net sales of $68,878,000 in the prior year's first quarter.
The company's improved first quarter performance was driven by increased sales of distillery products, which rose approximately 18 percent compared to distillery products sales in the first quarter of fiscal 2005. Sales of ingredients were down slightly due to lower sales of specialty ingredients, which principally consist of specialty wheat proteins and wheat starches. Sales of commodity ingredients, which consist primarily of commodity wheat gluten and wheat starches, rose compared to the year-ago quarter.
"External and internal factors contributed to strength in our distillery business in the first quarter," said Ladd Seaberg, president and chief executive officer. "High gasoline prices and growing interest in the use of renewable fuels have continued to buoy ethanol prices. More importantly, a planned shift toward greater, more efficient production of high quality food grade alcohol drove our performance within the distillery segment."
Ingredient sales in the first quarter were impacted by a decline in sales of the company's Chewtex(TM) line of specialty protein- and starch-based resins, produced for use in the manufacture of pet chews and related treats. This decrease was partially offset by increased sales of commodity wheat gluten during the first quarter. While gluten sales are no longer an emphasis, the company had more gluten available for sale because specialty starch sales have outpaced specialty proteins sales.
"Sales of our Fibersym(TM) line of resistant starches, which we market for incorporation in fiber-enriched, reduced carbohydrate and lower calorie foods, increased in the quarter, while performance of our Arise(R) line of specialty wheat protein isolates declined compared to the year-ago quarter," said Michael Trautschold, executive vice president of marketing and sales. "Even though we experienced sequential gains compared to the fourth quarter of fiscal 2005 in sales of Arise(R) and our Wheatex(R) line of textured proteins, our focus remains on developing additional profitable applications for proteins to keep pace with strengthening specialty starch sales."
Distillery Products
Total sales of distillery products in the first quarter of fiscal 2006 rose by approximately $8.5 million, or 18 percent, compared to the first quarter of fiscal 2005. This improvement resulted from higher selling prices for both food grade and fuel grade alcohol combined with a net volume increase driven by higher unit sales of food grade alcohol for industrial applications.
Sales of food grade alcohol rose by 74 percent, while sales of fuel grade alcohol increased by 5 percent compared to a year ago. Sales of distillers feed, the principal by-product on the alcohol production process, decreased by 17 percent due to lower prices.
Price improvements and higher unit sales resulted in a 124 percent increase in sales of food grade alcohol for industrial applications. Sales of food grade alcohol for beverage applications rose by approximately by 5 percent due to higher prices, which offset a slight reduction in unit sales. The increased sales of fuel grade alcohol also resulted from higher average selling prices, which more than offset lower unit sales compared to a year ago.
Ingredients
Total ingredient sales in the first quarter of fiscal 2006 decreased by approximately $304,000, or 1 percent, compared to the prior year's first quarter. This was due to a nearly 18 percent decline in sales of specialty ingredients for non-food applications. "We believe this decline is attributable to the impact of higher gas costs and a weakening labor market, which has contributed to weaker consumer spending and declining consumer confidence, resulting in a slowdown in pet industry sales," he added.
Sales of specialty ingredients for food applications were just slightly lower than a year ago, while sales of mill feeds and other mill products decreased by 39 percent. Sales of commodity ingredients, on the other hand, increased by approximately 47 percent compared to a year ago. This increase resulted from a significant rise in sales of commodity gluten, which more than offset a decrease in sales of commodity starches.
The decrease in sales of specialty ingredients for non-food applications principally occurred in sales of the company's protein- and starch-based resins for use in pet industry products. Sales of specialty ingredients for food applications benefited from higher sales of specialty starches and a small increase in sales of the company's Wheatex(R) line of textured wheat proteins that are sold for use in meat analog and meat extension applications. These improvements offset a decline in sales of MGPI's Arise(R) line of wheat protein isolates during the quarter. The reduction in sales of commodity starches resulted from the company's decision to place increased emphasis on the production and marketing of specialty starches. The reduction in sales of mill feeds (which is a by-product in the manufacture of flour) and other mill products resulted from the processing of less flour in the current year's first quarter for use in producing specialty proteins.
The increase in commodity gluten sales was due to higher unit sales resulting from higher quantities on hand compared to the prior year's first quarter. This increase adversely affected the company's profitability, as market prices for gluten have been below the company's cost of production. Although MGPI has deemphasized gluten sales because of such poor market conditions, gluten remains a co-product from the processing of flour. Because the company's sales of specialty proteins have not kept pace proportionately with its specialty starch sales, more gluten was available for sale during the first quarter of fiscal 2006 than in the first quarter of fiscal 2005 as less gluten has been processed into specialty proteins.
Segment Data
Complete sales and pre-tax income data by segments for the first quarter ended September 30 follow below. Pre-tax operating income for each segment is based on net sales less identifiable operating expenses. Interest expense, investment income and other general miscellaneous expenses have been excluded from segment operations and classified as Corporate:
Sales 1st QTR. 1st QTR.
FY2006 FY2005
Ingredients Segment $22,450 $22,754
Distillery Products Segment 54,596 46,124
Pre-tax income (loss)
Ingredients Segment ($219) ($115)
Distillery Products Segment 6,949 874
Corporate (536) (278)
The company also announced that plans are underway for the implementation of upgrades at its recently acquired manufacturing facility in Onaga, Kan. that it expects to use as a platform for growth of its eco-friendly, plant-based biopolymers. "Along with our recently-announced plans for a new corporate headquarters and technical center to enhance our research and development functions, these investments will position us well to pursue the exciting growth opportunities available to us in the specialty ingredients arena," added Trautschold.
Outlook
"Looking ahead, we expect that distillery sales will continue to drive our performance in the first half of fiscal 2006," Seaberg said, noting that "strong cash flow from our distillery business has given us the flexibility to pursue our growth objectives on the ingredients side. This will be even more important in the current quarter, as we continue to experience a decline in our non-food ingredients business." He further noted that "we also expect our results in the current quarter will be affected by increased energy and wheat costs compared to this year's first quarter."
Conference Call Information
The company will host an investor conference call today at 10 a.m. central time to review the first quarter results. Stockholders and other interested parties may listen to the call live via telephone by dialing 800-322-0079 by 9:50 a.m. central time, or access it on the Internet at http://www.mgpingredients.com . To see the Earnings Statement and Consolidated Balance Sheet information in .PDF format, click here.
About MGP Ingredients
In business since 1941, MGP Ingredients, Inc. is a recognized pioneer in the development and production of natural grain-based products. The Company has facilities in Atchison, Kan., Pekin, Ill., Onaga, Kan. and Kansas City, Kan. that utilize the latest technologies to assure high quality products and to maintain efficient production and service capabilities.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements as well as historical information. Forward-looking statements are usually identified by or are associated with such words such as "intend," "plan", "believe," "estimate," "expect," "anticipate," "hopeful," "should," "may," "will", "could" and or the negatives of these terms or variations of them or similar terminology. They reflect management's current beliefs and estimates of future economic circumstances, industry conditions, company performance and financial results and are not guarantees of future performance. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. Important factors that could cause actual results to differ materially from our expectations include, among others: (i) the availability and cost of grain, (ii) fluctuations in gasoline prices, (iii) fluctuations in energy costs, (iv) competitive environment and related market conditions, (vi) our ability to realize operating efficiencies, (vii) the effectiveness of our hedging programs; (viii) access to capital and (ix) actions of governments. For further information on these and other risks and uncertainties that may affect the company's business, see Item 1. Business - Risks and Uncertainties of the company's Annual Report on Form 10-K for the fiscal year ended June 30, 2005.
MGP Ingredients, Inc.
CONSOLIDATED STATEMENT OF EARNINGS
(unaudited)
(Dollars in thousands, Three Months Ended September 30
except per share) 2005 2004
NET SALES $77,046 $68,878
COST OF SALES 64,862 63,804
GROSS PROFIT 12,184 5,074
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 5,709 4,882
OTHER OPERATING INCOME 168 286
INCOME FROM OPERATIONS 6,643 478
OTHER INCOME (EXPENSE)
OTHER INCOME (NET) 116 309
INTEREST EXPENSE (565) (306)
INCOME BEFORE INCOME TAXES 6,194 481
PROVISION FOR INCOME TAXES 2,463 190
NET INCOME $3,731 $291
OTHER COMPREHENSIVE LOSS (135) (313)
COMPREHENSIVE INCOME (LOSS) 3,596 (22)
BASIC EARNINGS PER COMMON SHARE $0.23 $0.02
DILUTED EARNINGS PER COMMON SHARE $0.23 $0.01
Weighted average shares outstanding - Basic 16,006,923 15,932,913
Weighted average shares outstanding - Diluted 16,491,244 16,648,019
Consolidated Balance Sheets
(unaudited) Sept. 30 June 30
(Dollars in thousands) 2005 2005
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $3,458 $10,384
Receivables 32,985 28,097
Inventories 35,169 31,252
Prepaid expenses 2,130 628
Deferred income taxes 945 663
Refundable income taxes 213 2,622
Total Current Assets 74,900 73,646
PROPERTY AND EQUIPMENT, At Cost 324,357 317,626
Less accumulated depreciation (204,970) (201,997)
119,387 115,629
OTHER ASSETS 221 225
$194,508 $189,500
(unaudited) Sept. 30 June 30
(Dollars in thousands) 2005 2005
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Line of credit $2,000 $-
Current maturities of long-term debt 3,583 4,705
Accounts payable 14,038 11,744
Accrued expenses 7,324 5,621
Deferred income 10,554 10,948
Income taxes payable 426 -
Total Current Liabilities $37,925 $33,018
LONG-TERM DEBT 15,217 16,785
POST-RETIREMENT BENEFITS 6,469 6,342
DEFERRED INCOME TAXES 12,811 12,828
STOCKHOLDERS' EQUITY 122,086 120,527
$194,508 $189,500
SOURCE MGP Ingredients, Inc.
Steve Pickman of MGP Ingredients, Inc., +1-913-367-1480
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