Guidance for Continuing Operations Increased Due to Strength in Dairy Group
and WhiteWave Foods
Guidance Also Updated to Reflect Upcoming Second Quarter Spin-Off of TreeHouse
Foods
DALLAS, June 14 /PRNewswire-FirstCall/ — In anticipation of the upcoming
spin-off of its TreeHouse Foods subsidiary, Dean Foods Company (NYSE: DF)
today announced updated guidance for the second quarter and full year 2005.
The updated guidance reflects both the impact of the anticipated second
quarter spin-off of TreeHouse Foods and an improved business outlook for the
company’s Dairy Group and WhiteWave Foods operations.
Entering the second quarter, the company had expected TreeHouse Foods’
businesses to contribute approximately $0.09 per diluted share to expected
adjusted earnings (as defined below) of between $0.54 and $0.56 per diluted
share in the second quarter. To reflect the upcoming spin-off, which is
expected to be completed on or about June 27, 2005, Dean Foods has removed the
$0.09 per share attributable to TreeHouse Foods’ businesses from its
expectations for the second quarter. Additionally, due to strength in its
Dairy Group and WhiteWave Foods operations in the second quarter, expectations
for adjusted earnings from continuing operations for the quarter have been
increased by $0.05 to a revised range of $0.50 to $0.52 per diluted share.
Inclusive of the TreeHouse Foods businesses, Dean Foods had previously
expected full year 2005 adjusted earnings of between $2.28 and $2.33 per
diluted share. Imbedded in this estimate were expectations of $0.37 to $0.39
adjusted earnings per diluted share contribution from TreeHouse Foods’
businesses. To reflect the impact of the upcoming spin-off, Dean Foods has
removed $0.37 per diluted share from its previously issued guidance for the
year. In addition, as a result of the increase in expected earnings from
continuing operations for the second quarter and an expectation of continued
positive business trends, adjusted earnings expectations for the full year
have been increased by $0.07 per share, resulting in revised expectations for
adjusted earnings per diluted share of $1.98 to $2.03 for the full year. A
reconciliation of previous and revised adjusted earnings expectations is
provided in the table that follows.
(all items per Dean Foods share) Second Quarter 2005 Full Year 2005 Previous Expectations: $0.54 - $0.56 $2.28 - $2.33 TreeHouse Contribution to Previous Expectations: $0.09 $0.37 - $0.39 Previous Expectations - Continuing Operations: $0.45 - $0.47 $1.91 - $1.96 Increase in Expectations for Continuing Ops: +$.05 +$.07 Revised Expectations: $0.50 - $0.52 $1.98 - $2.03
The businesses to be spun-off as part of TreeHouse Foods include the
company’s Specialty Foods Group segment, the Mocha Mix and Second Nature
businesses currently included in the company’s WhiteWave Foods segment and the
foodservice salad dressings business currently conducted in both the WhiteWave
Foods segment and the Dairy Group.
Historical Contribution
Following the spin-off, Dean Foods will restate its past results to
reclassify the historical contribution of the businesses included in TreeHouse
Foods as discontinued operations. TreeHouse Foods’ contributions to Dean
Foods’ previously reported quarterly earnings per diluted share for the
following periods are summarized in the table below.
GAAP Adjusted Q1 2005 (a) $0.07 $0.08 Q4 2004 $0.06 $0.06 Q3 2004 (b) $0.01 $0.05 Q2 2004 $0.08 $0.08 Q1 2004 $0.08 $0.08 Comparison of Adjusted Information to GAAP Information
The historical adjusted earnings per diluted share contributions reported
above differ from the GAAP contributions by excluding the following facility
closing, reorganization and non-recurring charges:
a) $3.5 million ($2.2 million net of tax) of transaction costs related to the spin-off of TreeHouse Foods and the closing of TreeHouse Foods' Benton Harbor, MI facility, and b) $9.3 million ($6.1 million net of tax) related to the closing of TreeHouse Foods' Benton Harbor, MI facility.
The adjusted financial results contained in this press release are
non-GAAP financial measures that eliminate the net expense or net gain related
to the items identified above. These numbers are provided in order to allow
investors to make meaningful comparisons of the company’s operating
performance between periods and to view the company’s business from the same
perspective as the company’s management. Because the company cannot predict
the timing and amount of charges associated with facility closings and
reorganizations or non-recurring items associated with the company’s
operations, management does not consider facility closing or reorganization
costs when evaluating the company’s performance, when making decisions
regarding the allocation of resources, in determining incentive compensation
for management, or in determining earnings estimates. This non-GAAP financial
information is provided as additional information for investors and is not in
accordance with or an alternative to GAAP. These non-GAAP numbers may be
different than similar measures used by other companies.
ABOUT DEAN FOODS
Dean Foods Company is one of the leading food and beverage companies in
the United States. Its Dairy Group division is the largest processor and
distributor of milk and other dairy products in the country, with products
sold under more than 50 familiar local and regional brands and a wide array of
private labels. The company’s WhiteWave Foods subsidiary is the nation’s
leading organic foods company. WhiteWave Foods markets and sells a variety of
well-known dairy and dairy-related products, such as Silk(R) soymilk, Horizon
Organic(R) dairy products and juices, International Delight(R) coffee creamers
and LAND O’LAKES(R) creamers and cultured products. Dean Foods Company also
owns the fourth largest dairy processor in Spain and the leading brand of
organic dairy products in the United Kingdom.
FORWARD LOOKING STATEMENTS
Some of the statements in this press release are “forward-looking” and are
made pursuant to the safe harbor provision of the Securities Litigation Reform
Act of 1995. These “forward-looking” statements include statements relating
to, among other things, projected sales, operating income, net income and
earnings per share. These statements involve risks and uncertainties that may
cause results to differ materially from the statements set forth in this press
release. The company’s ability to meet targeted financial and operating
results, including targeted sales, operating income, net income and earnings
per share depends on a variety of economic, competitive and governmental
factors, including raw material costs, many of which are beyond the company’s
control and which are described in the company’s filings with the Securities
and Exchange Commission. The company’s ability to profit from its branding
initiatives depends on a number of factors including consumer acceptance of
the company’s products. The forward-looking statements in this press release
speak only as of the date of this release. The company expressly disclaims
any obligation or undertaking to release publicly any updates or revisions to
such statements to reflect any change in its expectations with regard thereto
or any changes in the events, conditions or circumstances on which any such
statement is based.
Contact: Barry Sievert
Senior Director, Investor Relations
(214) 303-3437
SOURCE Dean Foods Company
CONTACT: Barry Sievert,
Senior Director,
Investor Relations of Dean
Foods Company,
+1-214-303-3437
Web site: http://www.deanfoods.com