Wednesday, 10 February 2010

Dean Foods Reports Fourth Quarter and Full Year 2009 Results

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Wednesday, 10 February 2010

–2009 Full Year Diluted Earnings per Share Up 15%, Adjusted Diluted Earnings per Share Up 22% –2009 Cash from Continuing Operations Reaches $659 million, Free Cash Flow Reaches $391 million –Fourth Quarter Diluted Earnings per Share of $0.27, Adjusted Diluted Earnings per Share of $0.31 –Retailer and Competitive Pressures and Rising Commodities Impact Fourth Quarter Results –Company Expects 2010 Adjusted Diluted Earnings of Between $1.54 and $1.64 per ShareDALLAS, Feb 10, 2010 /PRNewswire via COMTEX/ — Dean Foods Company (NYSE: DF) today announced that the Company earned $1.38 per diluted share for the full year 2009, as compared to $1.20 per diluted share for the full year 2008. On an adjusted basis (as defined below), the Company earned $1.59 per diluted share for the full year 2009, an increase of 22% over $1.30 for the full year 2008.

For the fourth quarter 2009, the Company earned $0.27 per diluted share, as compared to fourth quarter 2008 earnings of $0.42 per diluted share. On an adjusted basis, fourth quarter diluted earnings per share were $0.31, compared to the $0.46 per diluted share earned in the prior year’s fourth quarter.

“The fourth quarter was a challenging finish to an otherwise highly successful year for Dean Foods,” said Gregg Engles, Chairman and CEO. “2009 operating profits, in total, and for each of our business segments, were the highest in our history. Full year adjusted operating income grew 10% in 2009, on top of the 7% growth we reported in 2008. Moreover, we built the necessary capability to transform our business, and our initiatives to reduce cost took hold. We delivered over $75 million in cost savings in the first year of our $300 million cost reduction program. Additionally, we strategically built our portfolio, adding Alpro to become the clear global soy leader, and Heartland and Foremost Farms to strengthen our core fluid milk franchise.

“However, while our 2009 results demonstrate a strong step forward for the business, our fourth quarter performance was below our expectations. As the year came to a close, several of our businesses fell short of expectations. At Fresh Dairy Direct, retailer and competitive pressures that had been apparent through much of the year became significantly more pronounced in the second half of the fourth quarter, and were exacerbated by sharply rising commodities. Morningstar profits were challenged by volume softness, steep commodity inflation and a charge incurred to renegotiate a distributor contract. At WhiteWave, we significantly stepped up advertising and marketing to support our brands and invest behind very strong performance from new innovation in our creamer business.”

Net income attributable to Dean Foods totaled $240 million for the full year 2009, compared with $184 million in the previous year. On an adjusted basis, net income for the full year 2009 totaled $276 million, compared to $199 million in 2008.

For the fourth quarter of 2009, net income attributable to Dean Foods totaled $50 million, compared with $66 million in the prior year’s fourth quarter. Adjusted net income for the fourth quarter was $58 million, compared to adjusted net income of $71 million in the fourth quarter of 2008.

CONSOLIDATED NET SALES

Net sales for the twelve months ended December 31, 2009 totaled $11.2 billion, compared to $12.5 billion for the same period last year, due to the pass-through of lower overall dairy commodity costs, offset by higher volumes at Fresh Dairy Direct and increased sales at WhiteWave-Morningstar.

Net sales for the fourth quarter totaled $3.0 billion, compared to $3.1 billion of net sales in the fourth quarter of 2008. Net sales decreased in the quarter due to the pass-through of lower overall dairy commodity costs that were partially offset by acquisition-aided growth at Fresh Dairy Direct and WhiteWave-Morningstar.

CONSOLIDATED OPERATING INCOME

For the full year 2009, consolidated operating income totaled $622 million, compared to $609 million for 2008. On an adjusted basis, full year 2009 consolidated operating income totaled $693 million, compared to $631 million for the 2008 reporting period. The increase in adjusted consolidated operating income in the year was driven by strong full year operating profit growth at Fresh Dairy Direct and WhiteWave-Morningstar, offset by growth in corporate expense related to the development of foundational capabilities to support the Company’s transformation initiatives, as well as higher legal, incentive compensation, and pension expense.

Consolidated operating income in the fourth quarter totaled $136 million, compared to $184 million in the fourth quarter of 2008. Adjusted fourth quarter consolidated operating income totaled $151 million, compared to $190 million in the fourth quarter of 2008. The decline in fourth quarter consolidated operating income is due to lower operating income at Fresh Dairy Direct and WhiteWave-Morningstar and higher corporate expense.



          Summary of Dean Foods Fourth Quarter and Full Year 2009
                              Operating Results
          -------------------------------------------------------

                                Q4 09               FY2009
                             $ millions   Y/Y     $ millions   Y/Y
                            (except EPS) Change  (except EPS) Change
                            ------------ ------  ------------ ------

      Consolidated
       Adjusted Operating
       Income:                      $151    -21%         $693    +10%

      Interest Expense:              $59    -20%         $246    -20%

      Consolidated
       Adjusted Net Income           $58    -19%         $276    +38%

      Adjusted Diluted
       Earnings per Share:         $0.31    -33%        $1.59    +22%




FRESH DAIRY DIRECT

Total year fluid milk volumes at Fresh Dairy Direct increased 2.7% in 2009, including the benefit of acquisitions. This strong volume growth was offset by the pass-through of lower overall commodity costs to result in Fresh Dairy Direct net sales that declined 14% to $8.5 billion for 2009 from $9.8 billion in 2008. The Class I Mover, which is an indicator of the Company’s raw milk costs, averaged $11.48 per hundred-weight for the year, down materially from the $18.00 average price in 2008. Full year Fresh Dairy Direct operating income was $642 million, 9% higher than the $591 million recorded in the previous year and the highest in the segment’s history.



        Fourth Quarter and Full Year 2009 Fresh Dairy Direct Detail
        -----------------------------------------------------------

                                Q4 09     Y/Y       FY2009     Y/Y
                             $ millions  Change   $ millions  Change
                             ----------  ------   ----------  ------

      Fluid Milk Volume               --   +4.6%           --   +2.7%

      Operating Income            $146.5    -12%       $642.4     +9%




Fresh Dairy Direct fluid milk volumes increased by 4.6% in the fourth quarter, compared to the balance of the industry that experienced approximately 1.8% volume decline on a year over year basis, based on USDA data and company estimates. The strong volume growth in the quarter was offset by the pass-through of lower average commodity costs in the quarter resulting in Fresh Dairy Direct net sales of $2.2 billion, a 6% decrease from $2.4 billion in net sales for the fourth quarter of 2008. The fourth quarter average Class I Mover was $13.07 per hundred-weight during the fourth quarter, 26% above the previous quarter, but 19% below the fourth quarter of 2008.

Fresh Dairy Direct operating income in the fourth quarter was $146 million, a decrease of 12% from the $166 million reported in the fourth quarter of 2008. Solid progress against the Company’s cost control initiatives and strong volume growth were more than offset in the quarter by increased pressure on margins driven by retailer pressure and heightened competitive activity, particularly in the second half of the fourth quarter, exacerbated by sharply rising dairy commodity prices and continued trade down to private label products. Additionally, increasing shrink costs related to rising dairy commodity costs and lower returns from excess cream sales also contributed to the decline in segment operating profits in the quarter.

WHITEWAVE – MORNINGSTAR

For the full year, WhiteWave-Morningstar net sales were $2.7 billion, a 2% increase over $2.65 billion in net sales for the full year 2008. Included in this result, WhiteWave and Alpro net sales increased 9% to $1.67 billion in 2009 from total net sales of $1.53 billion in 2008. The increase in WhiteWave and Alpro net sales was primarily driven by the benefits of the Alpro acquisition. Morningstar 2009 sales declined 9% to $1.0 billion from $1.1 billion in 2008, primarily as a result of the pass-through of lower overall commodity costs and a modest volume decline. For the full year 2009, commodity benefits at Morningstar, combined with solid pricing realization and strong operational leverage at WhiteWave, drove operating income for WhiteWave-Morningstar of $256 million, a 25% increase over 2008 full year operating income of $205 million.



      Fourth Quarter and Full Year 2009 WhiteWave-Morningstar Detail
      --------------------------------------------------------------

                                Q4 09      Y/Y      FY2009      Y/Y
      Net Sales              $ millions  Change   $ millions  Change
      ---------              ----------  ------   ----------  ------
      WhiteWave-
       Morningstar                  $762     +8%       $2,702     +2%

        Morningstar                 $259    -10%       $1,025     -9%

        WhiteWave/Alpro             $501    +19%       $1,672     +9%


      Operating Income
      ----------------
      WhiteWave-Morningstar          $61    -12%         $256    +25%




For the fourth quarter of 2009, the WhiteWave-Morningstar segment reported net sales of $762 million, 8% higher than fourth quarter 2008 net sales of $708 million due primarily to the benefits of the Alpro acquisition. The WhiteWave and Alpro(R) branded portfolio increased sales 19% over the prior year fourth quarter to $501 million, as the benefits of the Alpro acquisition and strong sales growth in the WhiteWave creamer business offset a modest net sales decline in the balance of the portfolio. Net sales of Morningstar’s private label and foodservice cultured and creamer products decreased 10% from the fourth quarter of 2008 to $259 million due to the pass-through of lower dairy commodity costs and a modest volume decline.

Among the key brands at WhiteWave and Alpro, the creamers business, which includes both International Delight(R) and Land O’Lakes(R) creamers, increased sales in the mid-single digits on continued strength behind the International Delight innovation, particularly the CoffeeHouse Inspirations line of products. While the organic milk category remains sluggish, Horizon Organic(R) increased category share in the fourth quarter with essentially flat net sales. Silk(R) sales were essentially flat when adjusted for the exit of an unprofitable foodservice contract. Leveraging the strength of the Silk brand, WhiteWave recently introduced an exciting product extension into stores with Silk PureAlmond(R). Alpro sales increased mid-single digits in the quarter on a constant currency basis as the business continues to lead the European soy market and drive geographic expansion and increased per capita consumption.

Segment operating income in the fourth quarter for WhiteWave-Morningstar was $61 million, a decrease of 12% from $69 million in the fourth quarter of 2008. Within this, WhiteWave continued to perform well, but fourth quarter financial results were impacted by the strategic decision to increase marketing support behind WhiteWave’s branded portfolio. Morningstar segment operating profits were impacted by volume softness, steep Class II butterfat commodity inflation, and a charge incurred to renegotiate a distributor contract. Class II butterfat, a primary input for Morningstar, averaged $1.44 per pound in the fourth quarter, 15% above the previous quarter. Alpro continued to perform in-line with management expectations, reporting a solid profit quarter.

Additionally, $4 million of the decline in operating income at WhiteWave-Morningstar in the quarter is related to a change in reporting for the Company’s Hero Joint Venture, which had previously been reported as part of the corporate and other reporting segment. For the full year 2009, the Hero JV reduced WhiteWave-Morningstar operating profit by $12.5 million.

CORPORATE EXPENSE

For the full year 2009, corporate expense totaled $234 million, compared to $165 million for the full year 2008. On an adjusted basis, which excludes closed deal costs, full year 2009 corporate expense totaled $206 million, compared to $165 million in the previous year. The increase in adjusted corporate expense reflects investments in information technology, supply chain, and research and development to support the Company’s strategic initiatives, as well as higher legal, incentive compensation, and pension expense. Fourth quarter 2009 corporate expense totaled $57 million, compared to $45 million in the fourth quarter of 2008.

CASH FLOW

Net cash provided by continuing operations for the twelve months ended December 31, 2009 totaled $659 million, compared to $719 million in 2008. Free cash flow provided by operations, which is defined as net cash provided by continuing operations less capital expenditures, totaled $391 million for the twelve months ended December 31, 2009, compared to $462 million in 2008. A reconciliation between net cash provided by continuing operations and free cash flow provided by continuing operations is provided below.

Capital expenditures for the full year 2009 totaled $268 million, compared to $257 million in 2008.

Through the twelve months ended December 31, 2009, total debt outstanding decreased by $269 million. Total debt at December 31, 2009, net of $48 million in cash on hand, was approximately $4.2 billion. The Company’s funded debt to EBITDA ratio, as defined by its credit agreements, was 4.16x as of the end of the fourth quarter. The Company continues to focus on reducing its overall leverage, and expects its leverage ratio to be below 4.0x by the end of 2010 and to be approaching its goal of 3.5x funded debt to EBITDA by mid-year 2011.

STRATEGIC INITIATIVES

The Company reported solid progress against its strategic initiatives in 2009, including the development of essential capabilities in the areas of information technology, supply chain management, and research and development that will support the transformation of the business going forward. Additionally, the Company enhanced its business portfolio through strategic acquisitions, including the acquisition of Alpro, the European leader in soy beverages and related products, which, when combined with Dean’s Silk brand in the U.S., makes Dean the clear global leader in soy. The Company also made solid progress against its $300 million cost reduction goal, with $75 million of cost reduction across distribution, manufacturing and procurement in the program’s first year. The Company is targeting 2010 cost savings of at least $90 million.

FORWARD OUTLOOK

“Looking ahead at our expectations for 2010, the first quarter presents a challenging overlap,” said Jack Callahan, Chief Financial Officer. “The first quarter of 2009 was the strongest overall performance in our Company’s history and benefitted from a lower share count before the equity offering in the second quarter of 2009. With this in mind, and reflecting the current market-driven challenges we face, we are forecasting first quarter adjusted diluted earnings to be between $0.25 and $0.30 per share. As we look at the balance of the year, however, the overlaps and commodity forecasts become much less daunting and we expect to be back to posting strong quarterly year over year growth by the back half of the year.

“For the full year, we are expecting adjusted diluted earnings per share to be between $1.54 and $1.64 inclusive of the effects of the higher number of shares outstanding related to the equity offering we completed in the second quarter of 2009.”

CONFERENCE CALL WEBCAST

A webcast to discuss the Company’s financial results and outlook will be held at 9:30 a.m. ET today and may be heard live by visiting the “Webcast” section of the Company’s site at www.deanfoods.com/investors. A slide presentation will accompany the webcast.

ABOUT DEAN FOODS

Dean Foods is one of the leading food and beverage companies in the United States. The Company’s Fresh Dairy Direct business is the largest processor and distributor of milk and other dairy products in the country. The WhiteWave-Morningstar business produces and sells a variety of nationally branded soy, dairy and dairy-related products. Popular brands include: Silk(R) soymilk, Horizon Organic(R) milk and dairy products, International Delight(R) coffee creamers, and LAND O’LAKES(R) creamers. Additionally, the WhiteWave-Morningstar segment produces and sells private label cultured and extended shelf life dairy products through the Morningstar platform. Dean Foods’ business also includes Alpro(R), the pan-European leader in branded soy food products.

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 Private Securities Litigation Reform Act of 1995. These “forward-looking” statements include statements relating to, among other things, projected sales, operating income, net income, adjusted diluted earnings per share, debt covenant compliance and expected financial performance. 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 cost reductions, sales, operating income, net income and earnings per share depends on a variety of economic, competitive and governmental factors, including raw material availability and costs, the demand for the Company’s products, and the Company’s ability to access capital under its credit facilities or otherwise, 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: Corporate Communications, Marguerite Copel, +1-214-721-1273; or Investor Relations, Barry Sievert, +1-214-303-3438

COMPARISON OF ADJUSTED INFORMATION TO GAAP INFORMATION

The adjusted financial results contained in this press release are from continuing operations and are adjusted to eliminate the net expense or net gain related to the items identified below. This information is 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 Company management. Because the Company cannot predict the timing and amount of charges associated with non-recurring items, closed or anticipated to close transaction-related costs, gains or losses on foreign exchange forward contracts or facility closings and reorganizations, management does not consider these 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 measures may be different than similar measures used by other companies.

For the three and twelve months ended December 31, 2009 and 2008, the adjusted results and certain other non-GAAP financial measures differ from the Company’s results under GAAP by excluding the following:

(a) In accordance with the change in generally accepted accounting principles, effective January 1, 2009 all transaction-related fees on acquisitions are expensed as incurred. The adjustment reflects the elimination of transaction-related fees on acquisitions that have closed or are expected to close.

(b) The adjustment reflects the elimination of charges related to announced facility closings and reorganization costs.

(c) Effective January 1, 2009 the results of operations for the Hero/WhiteWave joint venture have been consolidated for financial reporting purposes. The adjustment reflects the operating loss attributable to the 50% interest in the Hero/WhiteWave joint venture that we do not own.

(d) Dean Foods acquired the Alpro Division of Vandemoortele, N.V. on July 2, 2009. In contemplation of the transaction, we entered into a forward contract to purchase 325.0 million Euros to hedge the acquisition price. As a result of foreign exchange fluctuations between the Euro and U.S. dollar, we recognized a net gain for financial reporting purposes. The adjustment reflects the elimination of such gain.

(e) On April 2, 2007, we recapitalized our balance sheet through the completion of a new $4.8 billion secured credit facility and return of $1.94 billion to shareholders of record on March 27, 2007 through a $15 per share special cash dividend. The adjustment reflects the elimination of costs incurred in connection with the special cash dividend.

(f) The adjustment reflects the income tax impact for income from continuing operations before income taxes adjustments (a) through (e).

(g) The adjustment reflects the net income (loss) associated with previously reported discontinued operations.

(Tables to follow)



                                DEAN FOODS COMPANY
                    Condensed Consolidated Income Statements
                                   (Unaudited)
                      (In thousands, except per share data)

                                  GAAP                    ADJUSTED
                                 ------                  ----------
                            Three months ended       Three months ended
                               December 31,             December 31,
                             2009       2008        2009           2008
                             ----       ----        ----           ----

     Net sales           $3,000,657 $3,080,425  $3,000,657     $3,080,425
     Cost of sales        2,195,598  2,294,785   2,195,598      2,294,785
                          ---------  ---------   ---------      ---------

       Gross profit         805,059    785,640     805,059        785,640

     Operating costs and expenses:
       Selling and
        distribution        487,975    449,605     487,975        449,605
       General and
        administrative      173,938    141,266     167,092(a)     141,266
       Amortization of
        intangibles           3,243      4,787       3,243          4,787
       Facility closing
        and reorganization
        costs                 4,197      6,388           -(b)           -(b)
       Loss attributable
        to noncontrolling
        interest in Hero
        JV                        -          -      (3,876)(c)          -
                                ---        ---      ------            ---
         Total operating
          costs and
          expenses          669,353    602,046     654,434        595,658
                            -------    -------     -------        -------

       Operating income     135,706    183,594     150,625        189,982

     Interest expense        58,720     73,054      58,720         73,054
     Other (income)
      expense, net              158        418         158            418
                                ---        ---         ---            ---

       Income from continuing
        operations before
        income taxes         76,828    110,122      91,747        116,510

     Income taxes            33,928     42,742      34,241(f)       45,238(f)
                             ------     ------      ------         ------

     Income from
      continuing
      operations             42,900     67,380      57,506         71,272
     Income (loss) from
      discontinued
      operations, net of
      tax                       327     (1,019)          -(g)           -(g)
                                ---     ------         ---            ---

       Net income            43,227     66,361      57,506         71,272
         Net loss
          attributable to
          noncontrolling
          interest            7,039          -           -(c)           -
                              -----        ---         ---            ---
       Net income
        attributable to
        Dean Foods
        Company             $50,266    $66,361     $57,506        $71,272
                            =======    =======     =======        =======

     Average common shares:
       Basic                180,572    153,967     180,572        153,967
       Diluted              182,791    156,127     182,791        156,127

     Net Income attributable
      to Dean Foods Company
      per share:
       Basic                  $0.28      $0.43       $0.32          $0.46
       Diluted                $0.27      $0.42       $0.31          $0.46



                                   DEAN FOODS COMPANY
                       Condensed Consolidated Income Statements
                                      (Unaudited)
                         (In thousands, except per share data)

                                   GAAP                    ADJUSTED
                                  ------                  ----------
                            Twelve months ended      Twelve months ended
                                December 31,              December 31,
                             2009         2008         2009        2008
                             ----         ----         ----        ----

     Net sales           $11,158,388  $12,454,613  $11,158,388 $12,454,613
     Cost of sales         8,042,401    9,509,359    8,042,401   9,509,359
                           ---------    ---------    ---------   ---------

       Gross profit        3,115,987    2,945,254    3,115,987   2,945,254

     Operating costs
      and expenses:
       Selling and
        distribution       1,826,935    1,817,690    1,826,935   1,817,691
       General and
        administrative       627,132      486,278      598,982(a)  486,277
       Amortization of
        intangibles            9,637        9,838        9,637       9,838
       Facility
        closing
        and reorganization
        costs                 30,162       22,758            -(b)        -(b)
       Loss attributable
        to noncontrolling
        interest in Hero
        JV                         -            -      (12,461)(c)       -
                                 ---          ---      -------         ---
         Total operating
          costs and
          expenses         2,493,866    2,336,564    2,423,093   2,313,806
                           ---------    ---------    ---------   ---------

       Operating income      622,121      608,690      692,894     631,448

     Interest expense        246,494      308,080      246,494     308,080
     Other (income)
      expense, net            (4,196)         933          (29)(d)     362(e)
                              ------          ---          ---         ---

       Income from
        continuing
        operations
        before
        income taxes         379,823      299,677      446,429     323,007

     Income taxes            152,065      114,837      170,714(f)  123,777(f)
                             -------      -------      -------     -------

     Income from
      continuing
      operations             227,758      184,840      275,715     199,230
     Income (loss) from
      discontinued
      operations, net of
      tax                         89       (1,070)           -(g)        -(g)
                                 ---       ------          ---         ---

       Net income            227,847      183,770      275,715     199,230
         Net loss
          attributable to
          noncontrolling
          interest            12,461            -            -(c)        -
                              ------          ---          ---         ---
       Net income
        attributable to
        Dean Foods
        Company             $240,308     $183,770     $275,715    $199,230
                            ========     ========     ========    ========

     Average common shares:
       Basic                 170,987      149,267      170,987     149,267
       Diluted               173,858      153,396      173,858     153,396

     Net Income attributable
      to Dean Foods Company
      per share:
       Basic                   $1.41        $1.23        $1.61       $1.33
       Diluted                 $1.38        $1.20        $1.59       $1.30


     Computation of Free Cash Flow provided by continuing operations

     Net cash provided
      by continuing
      operations                                      $658,911    $719,258
     Additions to
      property, plant
      and equipment                                   (268,215)   (256,965)
                                                      --------    --------

        Free cash flow provided by
         continuing operations                        $390,696    $462,293
                                                      ========    ========



                    DEAN FOODS COMPANY
           Condensed Consolidated Balance Sheets
                        (Unaudited)
                      (In thousands)

                                    December 31,   December 31,
     ASSETS                             2009           2008
    --------                            ----           ----

     Cash and cash equivalents         $47,632        $35,979
     Other current assets            1,581,337      1,445,214
                                     ---------      ---------
       Total current assets          1,628,969      1,481,193

     Property, plant and
      equipment, net                 2,108,879      1,821,892

     Intangibles and
      other assets                   4,106,093      3,737,107
                                     ---------      ---------

     Total Assets                   $7,843,941     $7,040,192
                                    ==========     ==========


     LIABILITIES AND STOCKHOLDERS' EQUITY
    --------------------------------------

     Total current liabilities,
      excluding debt                $1,230,173     $1,111,741

     Total long-term debt,
      including current portion      4,228,979      4,489,251

     Other long-term liabilities     1,017,557        880,966

     Dean Foods stockholders'
      equity                         1,351,946        558,234
     Noncontrolling interest            15,286              -
                                        ------            ---
       Total stockholders' equity    1,367,232        558,234
                                     ---------        -------

     Total Liabilities and
      Stockholders' Equity          $7,843,941     $7,040,192
                                    ==========     ==========



                                DEAN FOODS COMPANY
                  Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)
                                  (In thousands)

                                                            Twelve months
                                                          ended December 31,
     Operating Activities                                  2009        2008
    ----------------------                                 ----        ----
       Net cash provided by continuing operations       $658,911    $719,258
       Net cash used in discontinued operations             (238)     (1,304)
                                                            ----      ------
       Net cash provided by operating activities        $658,673    $717,954

     Investing Activities
    ----------------------
     Additions to property, plant and equipment         (268,215)   (256,965)
     Payments for acquisitions, net of cash received    (581,211)    (95,851)
     Proceeds from sale of fixed assets                    8,833      11,329
                                                           -----      ------
       Net cash used in investing activities            (840,593)   (341,487)

     Financing Activities
    ----------------------
     Net repayment of debt                             (275,163)    (800,287)
     Issuance of common stock                           454,326      419,663
     Capital contribution from noncontrolling
      interest                                           12,708            -
     Other                                                  894        7,581
                                                            ---        -----
       Net cash used in financing activities            192,765     (373,043)
                                                        -------     --------

       Effect of exchange rate changes on cash
        and cash equivalents                                 808           -

     Increase in cash and cash equivalents                11,653       3,424
     Beginning cash balance                               35,979      32,555
                                                          ------      ------

     Ending cash balance                                 $47,632     $35,979
                                                         =======     =======



                                  DEAN FOODS COMPANY
         Segment Information and Reconciliation of GAAP to Adjusted Earnings
                                    (Unaudited)
                                  (In thousands)

                                          Three months ended
                                           December 31, 2009
                                           -----------------
                                                      Non-  (Income)
                                         Facility Controlling Loss
                                         Closing & Interest   Dis-
                               Closed     Reorgani-   in    continued
                                Deal       zation    Hero    Opera-
                        GAAP   Costs(a)   Costs(b)   JV(c)   tions(g) Adjusted
                        ----   --------   -------    ----   --------  --------
    Segment operating
     income (loss):

       Fresh Dairy
        Direct       $146,457       -         $-       $-      $-    $146,457
       WhiteWave-
        Morningstar    56,980       -          -    3,876       -      60,856
       Corporate      (63,534)  6,846          -        -       -     (56,688)
       Facility
        closing
        and
        reorganization
        costs          (4,197)      -      4,197        -       -           -
                       ------     ---      -----      ---     ---         ---
         Total
          operating
          income     $135,706  $6,846     $4,197   $3,876      $-    $150,625
                     ========  ======     ======   ======     ===    ========


     Net income
      attributable to
      Dean Foods
      Company
      (f) (g)         $50,266  $4,567     $3,000       $-   $(327)    $57,506
                      =======  ======     ======      ===   =====     =======


     Diluted earnings
      per share         $0.27   $0.03      $0.01       $-      $-       $0.31
                        =====   =====      =====      ===     ===       =====


                                          Three months ended
                                           December 31, 2008
                                           -----------------
                                                      Non-  (Income)
                                         Facility Controlling Loss
                                         Closing & Interest   Dis-
                               Closed     Reorgani-   in    continued
                                Deal       zation    Hero    Opera-
                        GAAP   Costs(a)   Costs(b)   JV(c)   tions(g) Adjusted
                        ----   --------   -------    ----    -------- --------
    Segment operating
     income (loss):

       Fresh Dairy
        Direct       $165,708      $-         $-       $-      $-    $165,708
       WhiteWave-
        Morningstar    69,370       -          -        -       -      69,370
       Corporate      (45,096)      -          -        -       -     (45,096)
       Facility
        closing
        and
        reorganization
        costs          (6,388)      -      6,388        -       -           -
                       ------     ---      -----      ---     ---         ---
         Total
          operating
          income     $183,594      $-     $6,388       $-      $-    $189,982
                     ========     ===     ======      ===     ===    ========


     Net income
      attributable to
      Dean Foods
      Company
      (f) (g)         $66,361      $-     $3,892       $-  $1,019     $71,272
                      =======     ===     ======      ===  ======     =======


     Diluted
      earnings
      per share         $0.42      $-      $0.03       $-   $0.01       $0.46
                        =====     ===      =====      ===   =====       =====



                                 DEAN FOODS COMPANY
          Segment Information and Reconciliation of GAAP to Adjusted Earnings
                                    (Unaudited)
                                  (In thousands)

                                          Twelve months ended
                                           December 31, 2009
                                           -----------------
                                                      Non-
                                         Facility Controlling
                                         Closing & Interest  Other
                               Closed     Reorgani-   in     Adjust-
                                Deal       zation    Hero    ments
                        GAAP   Costs(a)   Costs(b)   JV(c)   (d)(g)   Adjusted
                        ----   --------   -------    ----    ------   --------
    Segment operating
     income (loss):

       Fresh Dairy
        Direct       $642,405      $-         $-       $-      $-    $642,405
       WhiteWave-
        Morningstar   243,903       -          -   12,461       -     256,364
       Corporate     (234,025) 28,150          -        -       -    (205,875)
       Facility closing
        and
        reorganization
        costs         (30,162)      -     30,162        -       -           -
                      -------     ---     ------      ---     ---         ---
         Total
          operating
          income     $622,121 $28,150    $30,162  $12,461      $-    $692,894
                     ======== =======    =======  =======     ===    ========


     Net income
      attributable to
      Dean Foods
      Company (f)
      (g)            $240,308 $18,812    $19,245       $- $(2,650)   $275,715
                     ======== =======    =======      === =======    ========


     Diluted
      earnings
      per share         $1.38   $0.11      $0.11       $-  $(0.02)      $1.59
                        =====   =====      =====      ===  ======       =====



                                          Twelve months ended
                                           December 31, 2008
                                           -----------------
                                                      Non-
                                         Facility Controlling
                                         Closing & Interest  Other
                               Closed     Reorgani-   in     Adjust-
                                Deal       zation    Hero    ments
                        GAAP   Costs(a)   Costs(b)   JV(c)   (e)(g)   Adjusted
                        ----   --------   -------    ----    ------   --------
    Segment operating
     income (loss):

       Fresh Dairy
        Direct       $591,314      $-         $-       $-      $-    $591,314
       WhiteWave-
        Morningstar   205,382       -          -        -       -     205,382
       Corporate     (165,248)      -          -        -       -    (165,248)
       Facility closing
        and
        reorganization
        costs         (22,758)      -     22,758        -       -           -
                      -------     ---     ------      ---     ---         ---
         Total
          operating
          income     $608,690      $-    $22,758       $-      $-    $631,448
                     ========     ===    =======      ===     ===    ========


     Net income
      attributable to
      Dean Foods
      Company (f)
      (g)            $183,770      $-    $14,037       $-  $1,423    $199,230
                     ========     ===    =======      ===  ======    ========


     Diluted earnings
      per share         $1.20      $-      $0.09       $-   $0.01       $1.30
                        =====     ===      =====      ===   =====       =====




SOURCE Dean Foods Company

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6 May, 2020
Dean Foods Completes Sale of its Miami, Florida Facility to Mana Saves McArthur, LLC
DALLAS--(BUSINESS WIRE)--Dean Foods today announced that it has completed the previously announced s...
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1 May, 2020
Dean Foods Completes Sale of Assets to Dairy Farmers of America
DALLAS--( BUSINESS WIRE )--Dean Foods Company ("Dean Foods" or the "Company") today announced that i...
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30 April, 2020
Dean Foods Completes Sales of its Uncle Matt’s Business and the Majority of the Meadow Gold Hawaii...
DALLAS--(BUSINESS WIRE)--Dean Foods ("Dean Foods" or the "Company") today announced that it has comp...
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22 April, 2020
Dean Foods Announces Asset Purchase Agreement with MGD Acquisition, LLC for the Sale of the Majority...
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13 April, 2020
Dean Foods Announces Termination of Agreement in Principle with Industrial Realty Group, LLC for the...
Reached Agreement in Principle with an Interested Party for the Sale of Dean Foods’ Hilo Facility ...
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4 April, 2020
Dean Foods Receives Court Approval for the Sale of Substantially All of Its Assets
DALLAS--(BUSINESS WIRE)--Dean Foods Company ("Dean Foods" or the "Company") today announced that the...
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1 April, 2020
Dean Foods Reaches Agreement in Principle With Industrial Realty Group, LLC for the Sale of Dean Foo...
DALLAS--(BUSINESS WIRE)--Dean Foods Company ("Dean Foods" or the "Company") today announced that it ...
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31 March, 2020
Dean Foods Announces Dairy Farmers of America as Winning Bidder for Substantially All of Its Assets
Prairie Farms Dairy, Mana Saves McArthur, LLC, Producers Dairy Foods and Harmoni, Inc. to Purchase A...
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17 February, 2020
Dean Foods Enters Into Asset Purchase Agreement with Dairy Farmers of America
Dairy Farmers of America to Serve as Proposed “Stalking Horse Bidder” in a Court-Supervised Sale...
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20 December, 2019
Dean Foods Receives Final Court Approval for $850 Million in Debtor-In-Possession Financing
DALLAS --(BUSINESS WIRE)--Dec. 20, 2019-- Dean Foods Company (NYSE: DF) (“Dean Foods” or the “...
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14 November, 2019
Dean Foods Company Receives Court Approval of “First Day” Motions to Support Normal Busi...
Obtains Interim Approval to Access DIP Financing Customers Receiving Uninterrupted Supply of Dairy P...
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12 November, 2019
Dean Foods Company Initiates Voluntary Reorganization with New Financial Support from Existing Lende...
Company Secures Commitments for $850 Million in DIP Financing to Support Operations In Advanced Disc...
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25 October, 2019
Dean Foods Company Announces Date for Third Quarter 2019 Earnings Release and Conference Call
DALLAS , Oct. 25, 2019 /PRNewswire/ --  Dean Foods Company (NYSE: DF) today announced that it will ...
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6 September, 2019
Dean Foods Concludes Strategic Alternatives Review; Focuses on Go-Forward Strategy Under New Leaders...
DALLAS , Sept. 6, 2019 /PRNewswire/ --  Dean Foods Company (NYSE: DF) (" Dean Foods " or the "Compa...
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6 August, 2019
Dean Foods Announces Second Quarter 2019 Results
DALLAS , Aug. 6, 2019 /PRNewswire/ -- Dean Foods Company (NYSE: DF) today reported second quarter 20...
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26 July, 2019
Dean Foods Appoints Eric Beringause as President and CEO
Industry Veteran Brings More Than Three Decades of Experience in Food, Beverage and Consumer Product...
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