PRESS RELEASE
| To return to the Penford site, please exit the browser window. | |
|
PRESS RELEASE |
|
|
Denver, Colorado -- October 17, 2002 Penford Corporation Reports Fourth Quarter and Fiscal Year Results Penford Corporation (Nasdaq: PENX) today reported results for the fourth quarter and fiscal year ended August 31, 2002. Penford Corporation reported that sales increased to $61.2 million from $59.2 million for the fourth quarter of 2002. Net income for the quarter ended August 31, 2002 was $1.0 million, or $0.13 per share versus $0.4 million, or $0.05 per share, for the same period last year. Net income included a $0.5 million, or $0.04 per share, non-cash, non-operating charge related to the complete write-off of Penford's 1997 investment in an "early stage" technology company. Pro forma earnings for the fourth quarter excluding the write-off charge were $1.3 million, or $0.17 per share. For fiscal 2002, sales increased 2.6% percent to $231.5 million from $225.7 million a year ago. Net income for fiscal 2002 including the write-off charge and a $1.4 million or $0.12 per share charge related to the corporate restructuring announced last January was $3.8 million, or $0.49 per share compared with a net loss of $0.8 million, or $0.10 per share in fiscal 2001. Fiscal 2001 results included $0.20 per share of non-recurring charges, including an extraordinary item related to early payment of debt. Pro forma earnings in fiscal 2002 excluding the write-off and restructuring charges were $5.0 million, or $0.65 per share. Thomas D. Malkoski, CEO of Penford, said, "Fiscal 2002 was a successful year of rebuilding for Penford. We have established a clear strategy for future growth that leverages our unique ability to apply advanced scientific processes to natural products in order to deliver customized solutions for our customers. This strategy is beginning to show in our results. Volumes have increased, costs are lower and profit margins are expanding. As the transition continues we expect additional improvements." After a soft first half, the industrial business had a strong finish for the year with volume gains increasing throughout the year, with double-digit growth in the fourth quarter. Paper industry customers increased orders for core products as demand for their products rose during the second half of the year. In addition, our new line of liquid natural additives penetrated new segments and contributed a meaningful profit. Lower energy costs, increased volumes and reduced operating expenses more than offset continued competitive pricing pressure throughout the industry and were primary contributors to improved operating profits for the Company. The North American food ingredients group recorded lower revenues in the fourth quarter as product substitutions and market share shifts among a limited number of customers reduced volumes. Sales to the balance of our customers remain strong and the pipeline of new initiatives in the coatings and protein product categories should continue to provide a platform for growth as our markets improve. Full year revenues increased slightly over the prior year as strong performance in the first six months of the year offset softness in the second half. Revenues from Penford Australia Limited increased in the fourth quarter and full year on higher volumes and favorable foreign currency translation rates. Profit margins decreased as cost containment programs only partially offset a less favorable product mix and the impact of high grain costs caused by continuing drought conditions in the region. The business has implemented several programs to reduce the impact of these cost factors by sharing increased costs throughout the supply chain. The integration of this fiscal 2001 acquisition has accelerated to realize synergies from several existing commercial and technology opportunities. "Penford has demonstrated its ability to deliver consistent, solid financial results despite challenging market conditions. We have maintained a strong focus on cash flow, controlling costs and reducing debt. Our strategic position in technology, specialty markets and process manufacturing provide increased value to our customers and shareholders. We expect to be able to capitalize on several growth opportunities for the Company as the general economy improves," Malkoski concluded. About Penford Corporation For automated shareholder information, please call 1-888-317-2013. This press release contains forward-looking statements concerning new product initiatives and the realization of benefits by the Company from strategic resources in research, market position and specialty manufacturing. Further, this press release contains forward-looking statements that the Company's profitability will improve, that sales of our coatings and protein products should provide a growth platform, and that we will be able to capitalize on growth opportunities. There are a variety of factors (some of which are set forth below) that could adversely affect the Company's ability to deliver new product initiatives or to capitalize on the Company's strategic resources in research, market position and specialty manufacturing. Among the factors that could adversely affect the performance described in the forward-looking statements are the performance of the economy as a whole (including the economies in markets served by the Company, such as North America and Asia) and the impact of such performance on the Company's customers, customer acceptance of new products or technologies at less than anticipated rates, issues related to lack of increases in or decreases or delays in customer demand or orders, increased competition timing and other issues related to introduction of new technologies, decreases in market share, unfavorable changes in product mix, disappointments in product development efforts and introductions, interest rate and energy cost volatility, increases in grain prices in Australia due to drought conditions, foreign exchange rate fluctuations and those listed in the Company's SEC reports, including the report on Form 10-K for the year ended August 31, 2001. - Tables Follow -
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||