Thursday, 4 August 2011

Dean Foods Reports Second Quarter 2011 Results

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Thursday, 4 August 2011

Second Quarter Loss per Share of $0.28 Includes Charge Related to Tennessee Litigation; Company Reports Adjusted Diluted Earnings per Share of $0.18

Third Quarter Guidance of $0.12-$0.17 per Adjusted Diluted Share; Full Year Guidance Reiterated at $0.67-$0.75 per Adjusted Diluted Share


DALLAS, Aug 04, 2011 /PRNewswire via COMTEX/ — Dean Foods Company (NYSE: DF) announced today that the Company reported a loss of $0.28 per diluted share, as compared to second quarter 2010 earnings of $0.25 per diluted share. The loss per share in the quarter includes a $131 million charge related to the previously disclosed Tennessee dairy farmer class action litigation. On an adjusted basis, second quarter 2011 diluted earnings per share were $0.18, compared to $0.29 per adjusted diluted share in the prior year’s second quarter. A full reconciliation between GAAP earnings per share and adjusted earnings per share is provided in the tables below.


For the second quarter of 2011, the net loss attributable to Dean Foods totaled $51 million, compared to net income of $45 million in the prior year’s second quarter. Adjusted net income for the second quarter was $32 million, compared to adjusted net income of $53 million in the second quarter of 2010.


“In many ways the second quarter of 2011 is a continuation of the trends we have seen over the last several quarters.” said Gregg Engles, Chairman and CEO. “WhiteWave-Alpro again posted strong results and Fresh Dairy Direct-Morningstar continued to make progress toward profit stability against a backdrop of weak industry volumes. We continued to execute our plan to drive costs out of the business, and progress in this area has been solid.”


CONSOLIDATED NET SALES


Net sales for the second quarter totaled $3.3 billion, compared to $3.0 billion of net sales in the second quarter of 2010. Net sales for the second quarter increased due to the pass-through of higher dairy and overall commodity costs that were partially offset by lower volumes at Fresh Dairy Direct-Morningstar, as well as continued solid sales growth at WhiteWave-Alpro.


CONSOLIDATED OPERATING INCOME / LOSS


Consolidated operating loss in the second quarter totaled $16 million, compared to consolidated operating income of $125 million in the second quarter of 2010. Second quarter consolidated adjusted operating income totaled $114 million, compared to $133 million in the second quarter of 2010. The decline in second quarter consolidated adjusted operating income was due to a $31 million decline in operating income at Fresh Dairy Direct-Morningstar, offset by $6 million of operating income growth at WhiteWave-Alpro, and a $6 million decline in corporate expense driven by the Company’s ongoing cost savings initiatives.






































































































Summary of Dean Foods Second Quarter 2011 Operating Results










Q2 2011






$ millions


Y/Y





(except EPS)


Change







Consolidated Adjusted Operating Income


$114


-14%







Interest Expense


$63


+30%







Consolidated Adjusted Net Income


$32


-40%







Adjusted Diluted Earnings per Share


$0.18


-38%







FRESH DAIRY DIRECT-MORNINGSTAR


Fresh Dairy Direct-Morningstar fluid milk volumes decreased by 1.1% in the second quarter, compared to the overall industry that experienced a volume decline of approximately 1.9% on a year-over-year basis, based on USDA data and Company estimates. The Company’s outperformance of the industry was driven primarily by the addition of new customers. Other product categories served by Fresh Dairy Direct-Morningstar remained soft, including ice cream, cottage cheese and sour cream. Total volumes from the Fresh Dairy Direct-Morningstar segment declined 4.3% from the second quarter of 2010, including the impact from the divestiture of its yogurt businesses. The soft volume in the quarter was offset by the pass-through of higher average commodity costs, resulting in Fresh Dairy Direct-Morningstar net sales of $2.8 billion, a 12% increase from $2.5 billion in net sales for the second quarter of 2010. The second quarter average Class I mover, a measure of the Company’s cost of milk, was $19.83 per hundred-weight, 21% above the previous quarter and 41% above the second quarter of 2010.
























































































Second Quarter 2011 Fresh Dairy Direct-Morningstar Summary










Q2 2011


Y/Y





$ millions


Change







Fluid Milk Volume



-1.1%







Operating Income


$116


-21%







Class I Mover


$19.83/cwt.


+41%







Class II Butterfat


$2.28/lb.


+36%


Fresh Dairy Direct-Morningstar operating income in the second quarter was $116 million, a decrease of 21% from the $147 million reported in the second quarter of 2010. Volume weakness across the portfolio offset progress toward the Company’s cost reduction initiatives, resulting in the decline in operating income in the quarter.


WHITEWAVE – ALPRO


For the second quarter of 2011, the WhiteWave-Alpro segment reported net sales of $514 million, 12% above second quarter 2010 net sales of $459 million due to continued strong growth across the product portfolio. Among the key brands at WhiteWave-Alpro, net sales of Horizon Organic® branded milk increased mid-teens in the second quarter. Branded creamer sales, which includes both International Delight® and LAND O LAKES® creamers, also increased mid-teens on continued strength behind International Delight innovation. Silk® sales increased mid-single digits on continued strength of Silk PureAlmond® and Silk PureCoconut®. Alpro sales increased low-single digits in the quarter on a constant currency basis, and mid-teens after currency translation.





















































Second Quarter 2011 WhiteWave-Alpro Summary



Q2 2011


Y/Y



$ millions


Change


Net Sales


$514


+12%












Adjusted Operating Income


$47


+14%


Segment operating income in the second quarter for WhiteWave-Alpro was $44.1 million, 13% above the $39.1 million reported in second quarter of 2010. On an adjusted basis, which excludes the impact of the 50% interest in the Hero/WhiteWave joint venture that WhiteWave does not own, the segment reported operating income of $46.6 million, an increase of 14% from $41.0 million in the second quarter of 2010.


CORPORATE EXPENSE


Second quarter 2011 corporate expense totaled $48.6 million, compared to $54.4 million in the second quarter of 2010. The reduction in corporate expense was driven by management’s concerted efforts to reduce costs.


COST REDUCTION


Reducing selling, general and administrative (SG&A) expense, excluding incentive compensation and advertising expense, is an area of focus for the Company in 2011. Management expects to reduce these costs by $60 million on an annualized run-rate basis by year-end. In the second quarter these costs were approximately $30 million below second quarter 2010 levels on an annualized basis. The Company also continues to make strong progress toward its initiative to reduce supply chain costs by $125 million in 2011, completing its $300 million cost reduction program that began in 2009.


CASH FLOW


Net cash provided by continuing operations for the six months ended June 30, 2011 totaled $180 million, compared to $243 million through the second quarter of 2010. Free cash flow provided by continuing operations, which is defined as net cash provided by continuing operations less capital expenditures, totaled $61 million for the first six months of 2011, compared to $131 million over the same period in 2010. A reconciliation between net cash provided by continuing operations and free cash flow provided by continuing operations is provided in the tables below.


Year-to-date capital expenditures totaled $119 million, compared to $113 million through the first six months of 2010. Total debt outstanding, net of cash on hand, decreased by $262 million from December 31, 2010 levels. Debt repayment has been augmented by the receipt of proceeds from the sale of two yogurt businesses and a $62 million tax refund, offset by the funding of the previously announced Vermont litigation settlement in the second quarter. Total debt at June 30, 2011, net of $116 million cash on hand, was $3.7 billion. The Company’s funded debt to EBITDA ratio, as defined by its credit agreements, was 4.95x as of the end of the second quarter versus a maximum leverage ratio covenant of 5.75x. The current maximum leverage ratio remains in effect until the end of March 2012, when it steps down to 5.50x. The Company continues to focus on reducing its overall leverage and expects to exit 2011 with a leverage ratio of 4.75x or below.


LITIGATION SETTLEMENT


On July 12th, the Company announced that it had reached an agreement with the class plaintiffs to settle litigation brought on behalf of a class of dairy farmers in various Southeastern states. The case had been scheduled for trial beginning in August 2011.


The United States District Court for the Eastern District of Tennessee preliminarily approved the class-wide settlement agreement on July 14, 2011 and stayed the dairy farmer action against Dean. The proposed settlement agreement requires a total payment of up to $140 million over a period of four to five years, for distribution to dairy farmer class members in a number of Southeastern states. Following preliminary approval, Dean Foods made an initial payment of $60 million into an escrow account, to be distributed following the Court’s final approval, and issued a standby letter of credit for the remaining $80 million. The agreement calls for the Company to make a payment of up to $20 million on each of the following four anniversaries of the final approval date.


On July 28, 2011, the Court issued an order partially decertifying the dairy farmer plaintiff class with which the Company had previously settled. The plaintiffs have filed a motion that the Court re-consider its decertification order. In order to pursue certainty regarding the settlement agreement, the Company plans to file a motion with the Court concerning the impact of this order, including whether the settlement agreement remains appropriately and adequately enforceable against the entire original plaintiff class. Until the Company has further clarification, there can be no assurance that the settlement agreement will receive final approval in its current form, or at all.


The Company took a pretax charge of $131 million in the second quarter related to the settlement agreement.


FORWARD OUTLOOK


WhiteWave-Alpro continues to perform well, and management expects full-year operating income growth in the low to mid-teens.


Fresh Dairy Direct-Morningstar’s business continues to stabilize in many ways. The Company continues to cut costs across the supply chain, as well as in core SG&A.


“Consistent with our previous comments, our biggest concern over the balance of the year continues to be the volume weakness across conventional dairy categories, which has worsened in recent periods,” continued Mr. Engles. “Due to the heavy fixed-cost nature of our business, relatively small changes in volumes drive meaningful changes in bottom-line performance. We believe a recovery in volumes will not happen until the employment picture improves, particularly among the less-affluent, who continue to struggle. In the interim, our best course of action is to continue driving structural costs out of the business to offset the deleveraging effects of soft volumes.


“Given current category performance, we expect the new business we added in the second quarter, a more stable pricing environment, and our cost reduction initiatives to drive continued stabilization of Fresh Dairy Direct-Morningstar results into the third and fourth quarter, with normal seasonality driving stronger performance in the fourth quarter.


This, combined with expectations for continued solid growth from WhiteWave-Alpro and the accumulating benefits of our SG&A cost reduction initiatives, should result in earnings consistent with, to slightly above 2010 levels in the third quarter. We expect to return to year-over-year adjusted earnings per share growth in the fourth quarter.


“More specifically, for the third quarter we are expecting adjusted diluted earnings of between $0.12 and $0.17 per share. With this in mind, we are reaffirming our previous full year guidance of between $0.67 and $0.75 per adjusted diluted share.”


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 website 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 and a European leader in branded soy foods and beverages. The Company’s Fresh Dairy Direct-Morningstar segment is the largest U.S. processor and distributor of milk, creamer, and cultured dairy products. These offerings are marketed under more than 50 local and regional dairy brands, as well as through private labels. The WhiteWave-Alpro segment produces and sells an array of branded dairy, soy and plant-based beverages and foods. WhiteWave brands, including Silk® soy and almond milk, Horizon Organic® milk and dairy products, International Delight® coffee creamers, and LAND O LAKES® creamers, are category leaders and consumer favorites. Alpro is 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, cost reduction strategies, divestitures and expected financial performance and the status of our litigation matters. 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, +1-214-721-7766; or Investor Relations, Barry Sievert, +1-214-303-3438




















































































































































































































































































































































































































































































































































































DEAN FOODS COMPANY



Condensed Consolidated Statements of Operations



(Unaudited)



(In thousands, except per share data)






GAAP


ADJUSTED






Three months ended


Three months ended






June 30,


June 30,






2011


2010


2011



2010












Net sales


$ 3,298,808


$ 2,954,653


$ 3,298,808



$ 2,954,653



Cost of sales


2,539,247


2,203,230


2,539,247



2,203,230











Gross profit


759,561


751,423


759,561



751,423










Operating costs and expenses:









Selling and distribution


492,094


457,705


492,094



457,705




General and administrative


153,645


159,423


152,985


(a) (e)


159,423




Amortization of intangibles


2,637


2,807


2,637



2,807




Facility closing and reorganization costs


21,226


6,509



(b)



(b)



Litigation settlement


131,300




(c)





Other operating income


(24,898)




(a)





Loss attributable to non-controlling interest in Hero JV




(2,463)


(d)


(1,897)


(d)




Total operating costs and expenses


776,004


626,444


645,253



618,038













Operating income (loss)


(16,443)


124,979


114,308



133,385










Interest expense


63,493


55,369


63,493



48,668


(f)


Other income, net


(707)


(306)


(710)



(306)











Income (loss) from continuing operations before










income taxes


(79,229)


69,916


51,525



85,023










Income tax expense (benefit)


(26,209)


26,455


19,242


(g)


31,544


(g)









Income (loss) from continuing operations


(53,020)


43,461


32,283



53,479



Loss from discontinued operations, net of tax



(609)





(h)










Net income (loss)


(53,020)


42,852


32,283



53,479





Net loss attributable to non-controlling interest


2,507


1,935



(d)



(d)



Net income (loss) attributable to Dean Foods Company


$ (50,513)


$ 44,787


$ 32,283



$ 53,479










Average common shares:









Basic


183,360


181,636


183,360



181,636




Diluted


183,360


182,391


184,144


(i)


182,391










Basic earnings (loss) per common share:









Income (loss) from continuing operations attributable to










Dean Foods Company


$ (0.28)


$ 0.25


$ 0.18



$ 0.29




Income (loss) from discontinued operations attributable to










Dean Foods Company








Net income (loss) attributable to Dean Foods Company


$ (0.28)


$ 0.25


$ 0.18



$ 0.29



Diluted earnings (loss) per common share:









Income (loss) from continuing operations attributable to










Dean Foods Company


$ (0.28)


$ 0.25


$ 0.18



$ 0.29




Income (loss) from discontinued operations attributable to










Dean Foods Company








Net income (loss) attributable to Dean Foods Company


$ (0.28)


$ 0.25


$ 0.18



$ 0.29










* See notes to Earnings Release Tables





































































































































































































































































































































































































































































































































































































































DEAN FOODS COMPANY



Condensed Consolidated Statements of Operations


(Unaudited)


(In thousands, except per share data)





GAAP


ADJUSTED






Six months ended


Six months ended






June 30,


June 30,






2011


2010


2011



2010












Net sales


$ 6,348,662


$ 5,915,796


$ 6,348,662



$ 5,915,796



Cost of sales


4,838,819


4,416,579


4,838,819



4,416,579













Gross profit



1,509,843


1,499,217


1,509,843



1,499,217












Operating costs and expenses:









Selling and distribution


977,896


930,432


977,896



930,432




General and administrative


318,307


310,388


309,796


(a) (e)


310,388




Amortization of intangibles


5,375


5,670


5,375



5,670




Facility closing and reorganization costs


31,869


8,060



(b)



(b)



Litigation settlement


131,300




(c)





Other operating income


(44,388)




(a)





Loss attributable to non-controlling interest in Hero JV




(4,300)


(d)


(4,111)


(d)




Total operating costs and expenses


1,420,359


1,254,550


1,288,767



1,242,379













Operating income


89,484


244,667


221,076



256,838












Interest expense


128,763


113,438


128,763



106,737


(f)


Other income, net


(755)


(485)


(755)



(485)













Income (loss) from continuing operations before










income taxes


(38,524)


131,714


93,068



150,586












Income tax expense (benefit)


(8,886)


48,442


35,976


(g)


54,121


(g)











Income (loss) from continuing operations


(29,638)


83,272


57,092



96,465



Gain on sale of discontinued operations, net of tax



1,837





(h)


Loss from discontinued operations, net of tax



(1,342)





(h)












Net income (loss)


(29,638)


83,767


57,092



96,465





Net loss attributable to non-controlling interest


4,388


4,172



(d)



(d)



Net income (loss) attributable to Dean Foods Company


$ (25,250)


$ 87,939


$ 57,092



$ 96,465












Average common shares:









Basic


183,090


181,436


183,090



181,436




Diluted


183,090


183,116


183,875


(i)


183,116












Basic earnings (loss) per common share:









Income (loss) from continuing operations attributable to










Dean Foods Company


$ (0.14)


$ 0.48


$ 0.31



$ 0.53




Income (loss) from discontinued operations attributable to










Dean Foods Company








Net income (loss) attributable to Dean Foods Company


$ (0.14)


$ 0.48


$ 0.31



$ 0.53












Diluted earnings (loss) per common share:









Income (loss) from continuing operations attributable to










Dean Foods Company


$ (0.14)


$ 0.48


$ 0.31



$ 0.53




Income (loss) from discontinued operations attributable to










Dean Foods Company








Net income (loss) attributable to Dean Foods Company


$ (0.14)


$ 0.48


$ 0.31



$ 0.53





















* See notes to Earnings Release Tables





















































































































































































DEAN FOODS COMPANY


Condensed Consolidated Balance Sheets


(Unaudited)


(In thousands)








June 30,


December 31,


ASSETS


2011


2010






Cash and cash equivalents


$ 115,807


$ 92,007


Other current assets


1,621,280


1,724,209



Total current assets


1,737,087


1,816,216






Property, plant and equipment, net


2,072,442


2,113,391






Intangibles and other assets


4,020,528


4,027,060






Total Assets


$ 7,830,057


$ 7,956,667










LIABILITIES AND STOCKHOLDERS’ EQUITY








Total current liabilities, excluding debt


$ 1,313,335


$ 1,266,715






Total long-term debt, including current portion


3,828,876


4,067,525






Other long-term liabilities


1,154,014


1,108,359






Total Dean Foods Company stockholders’ equity


1,518,727


1,499,525


Non-controlling interest


15,105


14,543



Total stockholders’ equity


1,533,832


1,514,068






Total Liabilities and Stockholders’ Equity


$ 7,830,057


$ 7,956,667





















































































































































































































DEAN FOODS COMPANY


Condensed Consolidated Statements of Cash Flows


(Unaudited)


(In thousands)




Six months ended June 30,


Operating Activities


2011


2010



Net cash provided by continuing operations


$ 179,648


$ 243,486



Net cash provided by discontinued operations



793



Net cash provided by operating activities


179,648


244,279






Investing Activities




Payments for property, plant and equipment


(118,754)


(112,893)


Proceeds from divestitures


185,713



Proceeds from sale of fixed assets


4,685


5,081



Net cash provided by (used in) continuing operations


71,644


(107,812)



Net cash used in discontinued operations



(133)



Net cash provided by (used in) investing activities


71,644


(107,945)






Financing Activities




Net repayment of debt


(239,539)


(88,654)


Payments of financing costs



(34,234)


Issuance of common stock, net


3,848


1,586


Capital contribution from non-controlling interest


4,950


4,621



Net cash used in financing activities


(230,741)


(116,681)







Effect of exchange rate changes on cash and cash equivalents


3,249


(3,596)






Increase in cash and cash equivalents


23,800


16,057


Cash and cash equivalents, beginning of period


92,007


45,190






Cash and cash equivalents, end of period


$ 115,807


$ 61,247






Computation of Free Cash Flow provided by continuing operations








Net cash provided by continuing operations


$ 179,648


$ 243,486


Net additions to property, plant and equipment


(118,754)


(112,893)







Free cash flow provided by continuing operations


$ 60,894


$ 130,593










































































































































































































































































DEAN FOODS COMPANY


Segment Information and Reconciliation of GAAP to Adjusted Earnings


(Unaudited)


(In thousands)



Three months ended



June 30, 2011




Asset write-down


Facility closing &


Litigation


Non-controlling


Other





& (gain) loss on


reorganization


settlement


interest in


adjustments




GAAP


sales of assets (a)


costs (b)


(c)


Hero JV (d)


(e) (f) (h)


Adjusted










Segment operating income (loss):




















Fresh Dairy Direct – Morningstar


$ 115,705


$ –


$ –


$ –


$ –


$ –


$ 115,705



Whitewave – Alpro


44,101





2,463



46,564



Corporate


(48,621)


266





394


(47,961)



Facility closing and reorganization costs


(21,226)



21,226







Litigation settlement


(131,300)




131,300






Other operating income


24,898


(24,898)









Total operating income (loss)


$ (16,443)


$ (24,632)


$ 21,226


$ 131,300


$ 2,463


$ 394


$ 114,308






















Net income (loss) attributable to Dean Foods Company (g)


$ (50,513)


$ (15,869)


$ 13,874


$ 84,537


$ –


$ 254


$ 32,283






















Diluted earnings (loss) per share (i)


$ (0.28)


$ (0.08)


$ 0.08


$ 0.46


$ –


$ –


$ 0.18


































































































































































































































































Three months ended





June 30, 2010






Asset write-down


Facility closing &


Litigation


Non-controlling


Other







& (gain) loss on


reorganization


settlement


interest in


adjustments






GAAP


sales of assets (a)


costs (b)


(c)


Hero JV (d)


(e) (f) (h)


Adjusted












Segment operating income (loss):




















Fresh Dairy Direct – Morningstar


$ 146,799


$ –


$ –


$ –


$ –


$ –


$ 146,799



Whitewave – Alpro


39,057





1,897



40,954



Corporate


(54,368)







(54,368)



Facility closing and reorganization costs


(6,509)



6,509








Total operating income


$ 124,979


$ –


$ 6,509


$ –


$ 1,897


$ –


$ 133,385






















Net income attributable to Dean Foods Company (g)


$ 44,787


$ –


$ 3,963


$ –


$ –


$ 4,729


$ 53,479






















Diluted earnings per share


$ 0.25


$ –


$ 0.02


$ –


$ –


$ 0.02


$ 0.29










* See notes to Earnings Release Tables






















































































































































































































































































DEAN FOODS COMPANY


Segment Information and Reconciliation of GAAP to Adjusted Earnings


(Unaudited)


(In thousands)





Six months ended





June 30, 2011






Asset write-down


Facility closing &


Litigation


Non-controlling


Other







& (gain) loss on


reorganization


settlement


interest in


adjustments






GAAP


sales of assets (a)


costs (b)


(c)


Hero JV (d)


(e) (f) (h)


Adjusted












Segment operating income (loss):




















Fresh Dairy Direct – Morningstar


$ 227,187


$ –


$ –


$ –


$ –


$ –


$ 227,187



Whitewave – Alpro


90,192





4,300



94,492



Corporate


(109,114)


8,117





394


(100,603)



Facility closing and reorganization costs


(31,869)



31,869







Litigation settlement


(131,300)




131,300






Other operating income


44,388


(44,388)









Total operating income


$ 89,484


$ (36,271)


$ 31,869


$ 131,300


$ 4,300


$ 394


$ 221,076






















Net income (loss) attributable to Dean Foods Company (g)


$ (25,250)


$ (22,872)


$ 20,423


$ 84,537


$ –


$ 254


$ 57,092






















Diluted earnings (loss) per share (i)


$ (0.14)


$ (0.12)


$ 0.11


$ 0.46


$ –


$ –


$ 0.31




































































































































































































































































Six months ended





June 30, 2010






Asset write-down


Facility closing &


Litigation


Non-controlling


Other







& (gain) loss on


reorganization


settlement


interest in


adjustments






GAAP


sales of assets (a)


costs (b)


(c)


Hero JV (d)


(e) (f) (h)


Adjusted












Segment operating income (loss):




















Fresh Dairy Direct – Morningstar


$ 273,570


$ –


$ –


$ –


$ –


$ –


$ 273,570



Whitewave – Alpro


81,381





4,111



85,493



Corporate


(102,224)







(102,225)



Facility closing and reorganization costs


(8,060)



8,060








Total operating income


$ 244,667


$ –


$ 8,060


$ –


$ 4,111


$ –


$ 256,838






















Net income attributable to Dean Foods Company (g)


$ 87,939


$ –


$ 4,902


$ –


$ –


$ 3,624


$ 96,465






















Diluted earnings per share


$ 0.48


$ –


$ 0.03


$ –


$ –


$ 0.02


$ 0.53












* See notes to Earnings Release Tables


For the three and six months ended June 30, 2011 and 2010, the adjusted results and certain other non-GAAP financial measures differ from the Company’s results under GAAP by excluding the following:


(a) The adjustment reflects the elimination of a net gain resulting from the sale of our Mountain High and private label yogurt operations, which closed on February 1, 2011 and April 1, 2011, respectively. This gain was offset by charges recorded in conjunction with the pending divestiture of our fluid milk operations at our manufacturing facility in Waukesha, Wisconsin as a result of the settlement, subject to court approval, of the Department of Justice civil action related to our acquisition of Foremost Farms, as well as the pending sale and cease of use of certain corporate assets.


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


(c) The adjustment reflects the elimination of a charge associated with potential current and future payments related to a settlement agreement reached with the plaintiffs in the previously disclosed dairy farmer class action lawsuit filed in the United States District Court for the Eastern District of Tennessee. The settlement agreement, which has received preliminary court approval, is subject to final approval by the court.


(d) 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.


(e) The adjustment reflects the elimination of transaction-related fees on acquisitions and divestitures that have closed or are expected to close.


(f) The adjustment reflects financing costs expensed in association with the amendment of our senior secured credit facility in June 2010.


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


(h) The adjustment reflects the elimination of discontinued operations, net of tax.


(i) The adjustment reflects an add-back of the dilutive shares for the three and six month periods ended June 30, 2011, which were anti-dilutive for GAAP purposes.


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...
MGD Acquisition to Operate Meadow Gold Hawaii as an Ongoing Business to Continue Serving the Hawaiia...
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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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