MGP Ingredients, Inc. (Nasdaq: MGPI), a
leading provider of distilled spirits, branded spirits, and food
ingredient solutions, today reported results for the second quarter
ended June 30, 2023.
2023 second quarter
consolidated results compared to
2022 second quarter
- Sales increased 7% to $209.0
million.
- Gross profit increased 29% to $76.3
million, representing 36.5% of sales.
- Operating income increased 25% to
$44.1 million. Adjusted operating income increased 29% to $45.6
million.
- Net income increased 26% to $32.0 million. Adjusted net income
increased 31% to $33.1 million.
- Adjusted EBITDA increased 28% to $51.2 million.
- Basic and diluted earnings per common share (“EPS”) increased
to $1.44 per share from $1.15 per share. Adjusted basic and diluted
EPS increased to $1.49 per share from $1.15 per share.
“We are very pleased with our continued momentum during the
second quarter. Our strong performance underpins our long-term
strategy and the value we bring to our global customer base,” said
David Colo, president and CEO of MGP Ingredients. “Sales of brown
goods grew 30% from the prior year period, driven by strong demand
for our new distillate and aged whiskey. Within our Branded Spirits
segment, we completed the acquisition of Penelope Bourbon in June,
further strengthening our portfolio of premium plus brands, which
grew 29% in sales from the prior year period. We expect our
continued investment in premium plus spirits brands to position us
well for incremental growth and margin expansion opportunities in
the future. Our Ingredient Solutions business generated record
sales during the quarter, which continued to benefit from the shift
in consumer behavior toward plant-based diets. We believe our
strong performance underscores the strength of our business model,
and we remain committed to executing against our strategy to create
further shareholder value.”
Distilling SolutionsIn the
second quarter 2023, sales for the Distilling Solutions segment
increased 9% to $116.9 million year- over-year, reflecting a 22%
increase in sales of premium beverage alcohol, due to higher brown
goods sales. Gross profit increased to $38.7 million or 33.1% of
segment sales, compared to $29.8 million or 27.8% of segment sales
in the second quarter 2022.
Branded SpiritsFor the second quarter 2023,
sales for the Branded Spirits segment decreased 2% to $57.6
million, while sales of premium plus brands increased 29% to $23.8
million. Gross profit increased to $26.0 million, or 45.1% of
segment sales, compared to $21.0 million, or 35.8% of segment sales
in the second quarter 2022.
Ingredient SolutionsIn the second quarter 2023,
sales in the Ingredient Solutions segment increased 18% to $34.5
million year- over-year. Gross profit increased to $11.6 million,
or 33.6% of segment sales, compared to $8.5 million, or 29.0% of
segment sales in the second quarter 2022.
OtherAdvertising and promotion expenses for the
second quarter 2023 increased $2.6 million, or 42%, to $8.6 million
as compared to the second quarter 2022.
Corporate selling, general and administrative ("SG&A")
expenses for the second quarter 2023 increased $5.7 million, or
32%, to $23.5 million as compared to the second quarter 2022.
The corporate effective tax rate for the second quarter 2023 was
25.3%, compared with 22.4% from the second quarter 2022.
2023 Outlook MGP is offering the following
revised consolidated guidance for fiscal 2023:
- Sales are projected to be in the range of $815 million to $835
million.
- Adjusted EBITDA is expected to be in the range of $187 million
to $192 million.
- Adjusted basic EPS is forecasted to be in the $5.35 to $5.50
range, with basic weighted average shares outstanding expected to
be approximately 22.1 million at year end.
Conference Call and Webcast
InformationMGP Ingredients will host a conference call for
analysts and institutional investors at 10 a.m. ET today to discuss
these results and current business trends. The conference call and
webcast will be available via:
Webcast: |
ir.mgpingredients.com on the Events & Presentations
page |
Conference Call: |
844-308-6398 (domestic) or
412-717-9605 (international) |
About MGP Ingredients, Inc.MGP Ingredients,
Inc. (Nasdaq: MGPI) is a leading producer of premium distilled
spirits, branded spirits, and food ingredient solutions. Since
1941, we have combined our expertise and energy aimed at
formulating excellence, bringing product ideas to life
collaboratively with our customers.
As one of the largest distillers in the U.S., MGP’s offerings
include bourbon and rye whiskeys, gins, and vodkas, which are
created at the intersection of science and imagination, for
customers of all sizes, from crafts to multinational brands. With
distilleries in Kentucky, Indiana and Kansas, and bottling
operations in Missouri, Ohio, and Northern Ireland, MGP has the
infrastructure and expertise to create on any scale.
MGP’s branded spirits portfolio covers a wide spectrum of brands
in every segment, including iconic brands from Luxco, which was
founded in 1958 by the Lux Family. Luxco is a leading producer,
supplier, importer and bottler of beverage alcohol products. Our
branded spirits mission is to meet the needs and exceed the
expectations of consumers, associates and business partners.
Luxco’s award-winning spirits portfolio includes well-known brands
from four distilleries: Bardstown, Kentucky-based Lux Row
Distillers, home of Ezra Brooks, Rebel, Blood Oath, David Nicholson
and Daviess County; Lebanon, Kentucky-based Limestone Branch
Distillery, maker of Yellowstone Kentucky Straight Bourbon Whiskey,
Minor Case Straight Rye Whiskey and Bowling & Burch Gin;
Jalisco, Mexico-based Destiladora González Lux, producer of 100%
agave tequilas, El Mayor, Exotico and Dos Primos; and the historic
Ross & Squibb Distillery in Lawrenceburg, Indiana, where the
Remus Straight Bourbon Whiskey and Rossville Union Straight Rye
Whiskey are produced. The innovative and high-quality brand
portfolio also includes Everclear Grain Alcohol, Pearl Vodka, Green
Hat Gin, Saint Brendan’s Irish Cream, The Quiet Man Irish Whiskey
and other well-recognized brands.
In addition, our Ingredient Solutions segment offers specialty
proteins and starches that help customers harness the power of
plants and provide a host of functional, nutritional, and sensory
benefits for a wide range of food products.
The transformation of American grain into something more is in
the soul of our people, products, and history. We’re devoted to
unlocking the creative potential of this extraordinary resource.
For more information, visit mgpingredients.com.
Cautionary Note Regarding Forward-Looking
StatementsThis press release may contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, including without limitation statements about
the strategy of MGP Ingredients, Inc. (the “Company” or “MGP”),
value brought to customers, growth and margin expansion
opportunities, the ability to create shareholder value, and the
Company’s 2023 outlook, including its expectations for sales,
adjusted EBITDA, adjusted basic EPS, and shares outstanding.
Forward looking statements are usually identified by or are
associated with words such as “intend,” “plan,” “believe,”
“estimate,” “expect,” “anticipate,” “project,” “forecast,”
“hopeful,” “should,” “may,” “will,” “could,” “encouraged,”
“opportunities,” “potential,” and similar terminology. These
forward-looking statements reflect management’s current beliefs and
estimates of future economic circumstances, industry conditions,
Company performance, Company financial results, and Company
financial condition and are not guarantees of future
performance.
All forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially.
Factors that could cause actual results to differ materially from
our expectations include without limitation any effects of
disruptions in our operations or a catastrophic event at our
facilities; commodity price fluctuations; the effectiveness or
execution of our strategic plan; our reliance on a limited number
of suppliers; climate change and legal, regulatory or market
measures to address climate change; product recalls or other
product liability claims; damage to our reputation or that of any
of our key customers or their brands; adverse public opinion about
any of our specialty ingredients; warehouse expansion issues; our
reliance on fewer, more profitable customer relationships;
commercial, political, and financial risks; regulation and taxation
requirements; tariffs, trade relations, and trade policies;
labeling or warning requirements or limitations on the availability
of our products; anti-corruption laws, trade sanctions and
restrictions; changes in consumer preferences and purchases and our
ability to anticipate or react to those changes; changes in public
opinion about alcohol; our reliance on our distributors to
distribute our branded spirits within their territories; failure to
secure and maintain listings in control states; changes in excise
taxes, incentives and customs duties; class action or other
litigation; the availability and cost of raw materials, product
ingredients, energy resources, or labor; global supply chain
challenges; inflation; the ongoing military conflict between
Ukraine and Russia; our ability to protect our intellectual
property rights and defend against alleged intellectual property
rights infringement claims; our dual-class stock structure and
governing document provisions; our reliance on key information
technology systems, networks, processes, associated sites, or
service providers; acquisitions and potential future acquisitions;
our ability to compete and competitive market conditions; work
disruptions or stoppages; our reliance on key management personnel;
covenants and other provisions in our credit arrangements; interest
rate increases; pandemics or other health crises; and our planned
closure of our Atchison, Kansas distillery. For further information
on these risks and uncertainties and other factors that could
affect the Company’s business, see the “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” sections of the Company’s Annual Report on
Form 10-K for the year ended December 31, 2022 and its Quarterly
Reports on Form 10-Q for the quarters ended March 31 and June 30,
2023, as well as the Company’s other SEC filings. The Company
undertakes no obligation to update any forward-looking statements
or information in this press release, except as required by
law.
Non-GAAP Financial Measures In addition to
reporting financial information in accordance with U.S. GAAP, the
Company provides certain non-GAAP financial measures that are not
in accordance with, or alternatives for, GAAP. In
addition to the comparable GAAP measures, the Company has disclosed
adjusted gross profit, adjusted operating income, adjusted income
before income taxes, adjusted net income, adjusted MGP earnings,
adjusted EBITDA and adjusted basic and diluted EPS, as well as
guidance for adjusted EBITDA and adjusted basic EPS. The
presentation of these non-GAAP financial measures should be
reviewed in conjunction with gross profit, operating income, income
before income taxes, net income, net income used in earnings per
share calculation, and basic and diluted EPS computed in accordance
with U.S. GAAP and should not be considered a substitute for the
GAAP measure. We believe that the non-GAAP measures
provide useful information to investors regarding the Company's
performance and overall results of operations. In
addition, management uses these non-GAAP measures in conjunction
with GAAP measures when evaluating the Company’s operating results
compared to prior periods on a consistent basis, assessing
financial trends and for forecasting purposes. Non-GAAP
financial measures may not provide information that is directly
comparable to other companies, even if similar terms are used to
identify such measures. The attached schedules provide a full
reconciliation of historical non-GAAP financial measures to the
most directly comparable U.S. GAAP financial measure. Full year
2023 guidance measures of adjusted EBITDA and adjusted basic EPS
are provided on a non-GAAP basis without a reconciliation to the
most directly comparable GAAP measures because the Company is
unable to predict with a reasonable degree of certainty certain
items contained in the GAAP measures without unreasonable efforts.
Such items include without limitation, acquisition related
expenses, restructuring and related expenses, and other items not
reflective of the Company's ongoing operations.
For More InformationInvestors &
Analysts:Mike Houston646-475-2998 or
investor.relations@mgpingredients.com
Media:Greg Manis913-360-5440 or
greg.manis@mgpingredients.com
MGP INGREDIENTS, INC.OPERATING INCOME
ROLLFORWARD(Dollars in thousands) |
|
Operating income, quarter versus quarter |
|
Operating Income |
|
Change |
|
Operating income for the quarter ended June 30, 2022 |
|
$ |
35,306 |
|
|
|
|
Increase in gross profit - Distilling Solutions segment |
|
|
8,898 |
|
|
25 |
% |
|
Increase in gross profit -
Branded Spirits segment |
|
|
5,043 |
|
|
14 |
|
pp(a) |
Increase in gross profit -
Ingredient Solutions segment |
|
|
3,130 |
|
|
9 |
|
pp |
Increase in advertising and
promotion expenses |
|
|
(2,574 |
) |
|
(7 |
) |
pp |
Increase in SG&A
expenses |
|
|
(5,660 |
) |
|
(16 |
) |
pp |
Operating income for
the quarter ended June 30, 2023 |
|
$ |
44,143 |
|
|
25 |
% |
|
Operating income, year to date versus year to
date |
|
Operating Income |
|
Change |
|
Operating income for year to date ended June 30, 2022 |
|
$ |
85,386 |
|
|
|
|
Increase in gross profit - Ingredient Solutions segment |
|
|
7,227 |
|
|
8 |
% |
|
Increase in gross profit -
Branded Spirits segment |
|
|
4,854 |
|
|
6 |
|
pp(a) |
Increase in gross profit -
Distilling Solutions segment |
|
|
2,993 |
|
|
4 |
|
pp |
Increase in advertising and
promotion expenses |
|
|
(4,803 |
) |
|
(6 |
) |
pp |
Increase in SG&A
expenses |
|
|
(9,955 |
) |
|
(12 |
) |
pp |
Operating income for
year to date ended June 30, 2023 |
|
$ |
85,702 |
|
|
— |
% |
|
(a) Percentage points (“pp”).
MGP INGREDIENTS, INC.EARNINGS PER COMMON
SHARE (“EPS”) ROLLFORWARD |
|
Change in basic and diluted EPS, quarter versus
quarter |
|
Basic and Diluted EPS |
|
Change |
|
Basic and diluted EPS for the quarter ended June 30, 2022 |
|
$ |
1.15 |
|
|
|
|
Change in operating income (b) |
|
|
0.31 |
|
|
26 |
% |
|
Change in other income
(expense), net(b) |
|
|
0.03 |
|
|
3 |
|
pp(a) |
Change in interest expense,
net (b) |
|
|
0.01 |
|
|
1 |
|
pp |
Change in effective tax
rate |
|
|
(0.06 |
) |
|
(5 |
) |
pp |
Basic and Diluted EPS
for the quarter ended June 30, 2023 |
|
$ |
1.44 |
|
|
25 |
% |
|
Change in basic and diluted EPS, year to date versus year
to date |
|
Basic and Diluted EPS |
|
Change |
|
Basic and diluted EPS for year to date ended June 30, 2022 |
|
$ |
2.84 |
|
|
|
|
Change in interest expense, net(b) |
|
|
0.03 |
|
|
1 |
% |
|
Change in other income
(expense), net(b) |
|
|
0.03 |
|
|
1 |
|
pp(a) |
Change in operating
income(b) |
|
|
0.01 |
|
|
— |
|
pp |
Change in effective tax
rate |
|
|
(0.06 |
) |
|
(2 |
) |
pp |
Change in weighted average
shares outstanding |
|
|
(0.01 |
) |
|
— |
|
pp |
Basic EPS for year to
date ended June 30, 2023 |
|
$ |
2.84 |
|
|
— |
% |
|
Impact of dilutive shares
outstanding |
|
|
(0.01 |
) |
|
— |
|
pp |
Diluted EPS for the
year to date ended June 30, 2023 |
|
$ |
2.83 |
|
|
— |
% |
|
(a) Percentage points (“pp”).(b) Items are net of tax based on
the effective tax rate for the base year (2022).
MGP
INGREDIENTS, INC.SALES BY OPERATING
SEGMENT(Dollars in thousands) |
|
|
DISTILLING SOLUTIONS SALES |
|
|
Quarter Ended June 30, |
|
Quarter versus Quarter Sales Change
Increase/(Decrease) |
|
|
|
2023 |
|
|
2022 |
|
$ Change |
|
% Change |
|
Brown goods |
$ |
73,124 |
|
$ |
56,331 |
|
$ |
16,793 |
|
|
30 |
% |
|
White goods |
|
16,816 |
|
|
17,441 |
|
|
(625 |
) |
|
(4 |
) |
|
Premium beverage alcohol |
|
89,940 |
|
|
73,772 |
|
|
16,168 |
|
|
22 |
|
|
Industrial alcohol |
|
10,065 |
|
|
12,885 |
|
|
(2,820 |
) |
|
(22 |
) |
|
Food grade alcohol |
|
100,005 |
|
|
86,657 |
|
|
13,348 |
|
|
15 |
|
|
Fuel grade alcohol |
|
1,898 |
|
|
3,312 |
|
|
(1,414 |
) |
|
(43 |
) |
|
Distillers feed and related
co-products |
|
8,215 |
|
|
11,267 |
|
|
(3,052 |
) |
|
(27 |
) |
|
Warehouse services |
|
6,747 |
|
|
5,902 |
|
|
845 |
|
|
14 |
|
|
Total Distilling Solutions |
$ |
116,865 |
|
$ |
107,138 |
|
$ |
9,727 |
|
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
BRANDED SPIRITS SALES |
|
|
Quarter Ended June 30, |
|
Quarter versus Quarter Sales Change
Increase/(Decrease) |
|
|
|
2023 |
|
|
2022 |
|
$ Change |
|
% Change |
|
Ultra premium |
$ |
14,372 |
|
$ |
9,435 |
|
$ |
4,937 |
|
|
52 |
% |
|
Super premium |
|
3,130 |
|
|
3,226 |
|
|
(96 |
) |
|
(3 |
) |
|
Premium |
|
6,261 |
|
|
5,775 |
|
|
486 |
|
|
8 |
|
|
Premium plus |
|
23,763 |
|
|
18,436 |
|
|
5,327 |
|
|
29 |
|
|
Mid |
|
17,090 |
|
|
23,301 |
|
|
(6,211 |
) |
|
(27 |
) |
|
Value |
|
11,578 |
|
|
12,908 |
|
|
(1,330 |
) |
|
(10 |
) |
|
Other |
|
5,185 |
|
|
3,921 |
|
|
1,264 |
|
|
32 |
|
|
Total Branded Spirits |
$ |
57,616 |
|
$ |
58,566 |
|
$ |
(950 |
) |
|
(2 |
)% |
|
|
INGREDIENT SOLUTIONS SALES |
|
|
Quarter Ended June 30, |
|
Quarter versus Quarter Sales Change Increase /
(Decrease) |
|
|
|
2023 |
|
|
2022 |
|
$ Change |
|
% Change |
|
Specialty wheat starches |
$ |
17,095 |
|
$ |
16,001 |
|
$ |
1,094 |
|
|
7 |
% |
|
Specialty wheat proteins |
|
12,588 |
|
|
10,109 |
|
|
2,479 |
|
|
25 |
|
|
Commodity wheat starches |
|
4,837 |
|
|
3,130 |
|
|
1,707 |
|
|
55 |
|
|
Commodity wheat proteins |
|
— |
|
|
38 |
|
|
(38 |
) |
|
N/A |
|
Total Ingredient Solutions |
$ |
34,520 |
|
$ |
29,278 |
|
$ |
5,242 |
|
|
18 |
% |
|
|
|
|
|
|
|
|
|
|
MGP
INGREDIENTS, INC.SALES BY OPERATING
SEGMENT |
|
|
DISTILLING SOLUTIONS SALES |
|
|
Year to Date Ended June 30, |
|
Year to Date versus Year to date Sales Change
Increase/(Decrease) |
|
|
|
2023 |
|
|
2022 |
|
$ Change |
|
% Change |
|
Brown goods |
$ |
141,448 |
|
$ |
118,476 |
|
$ |
22,972 |
|
|
19 |
% |
|
White goods |
|
32,770 |
|
|
37,527 |
|
|
(4,757 |
) |
|
(13 |
) |
|
Premium beverage alcohol |
|
174,218 |
|
|
156,003 |
|
|
18,215 |
|
|
12 |
|
|
Industrial alcohol |
|
20,504 |
|
|
24,380 |
|
|
(3,876 |
) |
|
(16 |
) |
|
Food grade alcohol |
|
194,722 |
|
|
180,383 |
|
|
14,339 |
|
|
8 |
|
|
Fuel grade alcohol |
|
4,454 |
|
|
6,594 |
|
|
(2,140 |
) |
|
(32 |
) |
|
Distillers feed and related
co-products |
|
17,307 |
|
|
20,184 |
|
|
(2,877 |
) |
|
(14 |
) |
|
Warehouse services |
|
13,605 |
|
|
11,486 |
|
|
2,119 |
|
|
18 |
|
|
Total Distilling Solutions |
$ |
230,088 |
|
$ |
218,647 |
|
$ |
11,441 |
|
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
BRANDED SPIRITS SALES |
|
|
Year to Date Ended June 30, |
|
Year to Date versus Year to date Sales Change
Increase/(Decrease) |
|
|
|
2023 |
|
|
2022 |
|
$ Change |
|
% Change |
|
Ultra premium |
$ |
23,487 |
|
$ |
22,032 |
|
$ |
1,455 |
|
|
7 |
% |
|
Super premium |
|
5,977 |
|
|
6,172 |
|
|
(195 |
) |
|
(3 |
) |
|
Premium |
|
13,045 |
|
|
11,915 |
|
|
1,130 |
|
|
9 |
|
|
Premium plus |
|
42,509 |
|
|
40,119 |
|
|
2,390 |
|
|
6 |
|
|
Mid |
|
37,925 |
|
|
42,574 |
|
|
(4,649 |
) |
|
(11 |
) |
|
Value |
|
24,999 |
|
|
24,207 |
|
|
792 |
|
|
3 |
|
|
Other |
|
9,066 |
|
|
7,417 |
|
|
1,649 |
|
|
22 |
|
|
Total Branded Spirits |
$ |
114,499 |
|
$ |
114,317 |
|
$ |
182 |
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
INGREDIENT SOLUTIONS SALES |
|
|
Year to Date Ended June 30, |
|
Year to Date versus Year to date Sales Change
Increase/(Decrease) |
|
|
|
2023 |
|
|
2022 |
|
$ Change |
|
% Change |
|
Specialty wheat starches |
$ |
31,781 |
|
$ |
31,204 |
|
$ |
577 |
|
2 |
% |
|
Specialty wheat proteins |
|
24,478 |
|
|
19,528 |
|
|
4,950 |
|
25 |
|
|
Commodity wheat starches |
|
8,644 |
|
|
6,483 |
|
|
2,161 |
|
33 |
|
|
Commodity wheat proteins |
|
521 |
|
|
38 |
|
|
483 |
|
1,271 |
|
|
Total Ingredient Solutions |
$ |
65,424 |
|
$ |
57,253 |
|
$ |
8,171 |
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
MGP
INGREDIENTS, INC.CONDENSED CONSOLIDATED STATEMENTS
OF INCOME (UNAUDITED)(Dollars in thousands, except
share and per share amounts) |
|
|
Quarter Ended June 30, |
|
Year to Date Ended June 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Sales |
|
$ |
209,001 |
|
|
$ |
194,982 |
|
|
$ |
410,011 |
|
|
$ |
390,217 |
|
Cost of sales |
|
|
132,706 |
|
|
|
135,758 |
|
|
|
263,892 |
|
|
|
259,172 |
|
Gross profit |
|
|
76,295 |
|
|
|
59,224 |
|
|
|
146,119 |
|
|
|
131,045 |
|
|
|
|
|
|
|
|
|
|
Advertising and promotion
expenses |
|
|
8,639 |
|
|
|
6,065 |
|
|
|
16,372 |
|
|
|
11,569 |
|
Selling, general, and
administrative expenses |
|
|
23,513 |
|
|
|
17,853 |
|
|
|
44,045 |
|
|
|
34,090 |
|
Operating income |
|
|
44,143 |
|
|
|
35,306 |
|
|
|
85,702 |
|
|
|
85,386 |
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(1,282 |
) |
|
|
(1,543 |
) |
|
|
(2,277 |
) |
|
|
(3,141 |
) |
Other income (expense),
net |
|
|
(93 |
) |
|
|
(1,062 |
) |
|
|
30 |
|
|
|
(1,008 |
) |
Income before income taxes |
|
|
42,768 |
|
|
|
32,701 |
|
|
|
83,455 |
|
|
|
81,237 |
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
10,804 |
|
|
|
7,339 |
|
|
|
20,459 |
|
|
|
18,504 |
|
Net income |
|
|
31,964 |
|
|
|
25,362 |
|
|
|
62,996 |
|
|
|
62,733 |
|
|
|
|
|
|
|
|
|
|
Net loss attributable to
noncontrolling interest |
|
|
162 |
|
|
|
198 |
|
|
|
201 |
|
|
|
264 |
|
Net income attributable to MGP Ingredients,
Inc. |
|
|
32,126 |
|
|
|
25,560 |
|
|
|
63,197 |
|
|
|
62,997 |
|
|
|
|
|
|
|
|
|
|
Income attributable to
participating securities |
|
|
(324 |
) |
|
|
(217 |
) |
|
|
(633 |
) |
|
|
(535 |
) |
Net income used in earnings per common share
calculation |
|
$ |
31,802 |
|
|
$ |
25,343 |
|
|
$ |
62,564 |
|
|
$ |
62,462 |
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares |
|
|
|
|
|
|
|
|
Basic |
|
|
22,062,142 |
|
|
|
22,002,385 |
|
|
|
22,051,244 |
|
|
|
21,995,779 |
|
Diluted |
|
|
22,139,663 |
|
|
|
22,002,385 |
|
|
|
22,106,113 |
|
|
|
21,995,779 |
|
|
|
|
|
|
|
|
|
|
Earnings per common
share |
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.44 |
|
|
$ |
1.15 |
|
|
$ |
2.84 |
|
|
$ |
2.84 |
|
Diluted |
|
$ |
1.44 |
|
|
$ |
1.15 |
|
|
$ |
2.83 |
|
|
$ |
2.84 |
|
MGP
INGREDIENTS, INC.CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED)(Dollars in
thousands) |
|
June 30, 2023 |
|
December 31, 2022 |
ASSETS |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ |
21,959 |
|
|
$ |
47,889 |
|
Receivables, net |
|
147,570 |
|
|
|
109,267 |
|
Inventory |
|
343,826 |
|
|
|
289,722 |
|
Prepaid expenses |
|
5,177 |
|
|
|
2,957 |
|
Refundable income taxes |
|
2,317 |
|
|
|
4,327 |
|
Total Current Assets |
|
520,849 |
|
|
|
454,162 |
|
|
|
|
|
Property, plant, and
equipment |
|
475,472 |
|
|
|
450,800 |
|
Less accumulated depreciation
and amortization |
|
(224,823 |
) |
|
|
(215,168 |
) |
Property, Plant, and Equipment, net |
|
250,649 |
|
|
|
235,632 |
|
Operating lease right-of-use
assets, net |
|
17,122 |
|
|
|
15,042 |
|
Investment in joint
ventures |
|
4,955 |
|
|
|
5,534 |
|
Intangible assets, net |
|
271,440 |
|
|
|
216,768 |
|
Goodwill |
|
325,713 |
|
|
|
226,294 |
|
Other assets |
|
4,401 |
|
|
|
4,779 |
|
TOTAL ASSETS |
$ |
1,395,129 |
|
|
$ |
1,158,211 |
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
Current Liabilities: |
|
|
|
Current maturities of long-term debt |
$ |
6,400 |
|
|
$ |
5,600 |
|
Accounts payable |
|
84,921 |
|
|
|
66,432 |
|
Federal and state excise taxes payable |
|
5,946 |
|
|
|
4,627 |
|
Accrued expenses and other |
|
21,384 |
|
|
|
28,716 |
|
Total Current Liabilities |
|
118,651 |
|
|
|
105,375 |
|
|
|
|
|
Long-term debt, less current
maturities |
|
123,319 |
|
|
|
29,510 |
|
Convertible senior notes |
|
195,385 |
|
|
|
195,225 |
|
Long-term operating lease
liabilities |
|
13,568 |
|
|
|
11,622 |
|
Contingent consideration |
|
63,900 |
|
|
|
— |
|
Other noncurrent
liabilities |
|
3,943 |
|
|
|
3,723 |
|
Deferred income taxes |
|
69,241 |
|
|
|
67,112 |
|
Total Liabilities |
|
588,007 |
|
|
|
412,567 |
|
Total equity |
|
807,122 |
|
|
|
745,644 |
|
TOTAL LIABILITIES AND TOTAL EQUITY |
$ |
1,395,129 |
|
|
$ |
1,158,211 |
|
MGP
INGREDIENTS, INC.CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS (UNAUDITED)(Dollars in
thousands) |
|
|
Year to Date Ended June 30, |
|
|
|
2023 |
|
|
|
2022 |
|
Cash Flows from Operating
Activities |
|
|
|
|
Net income |
|
$ |
62,996 |
|
|
$ |
62,733 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
Depreciation and amortization |
|
|
10,490 |
|
|
|
10,924 |
|
Share-based compensation |
|
|
3,637 |
|
|
|
2,131 |
|
Equity method investment loss |
|
|
579 |
|
|
|
180 |
|
Deferred income taxes, including change in valuation allowance |
|
|
2,129 |
|
|
|
125 |
|
Other, net |
|
|
206 |
|
|
|
(98 |
) |
Changes in operating assets and liabilities, net of effects of
acquisition: |
|
|
|
|
Receivables, net |
|
|
(35,833 |
) |
|
|
(13,142 |
) |
Inventory |
|
|
(41,020 |
) |
|
|
(27,508 |
) |
Prepaid expenses |
|
|
(2,076 |
) |
|
|
266 |
|
Income taxes payable (refundable) |
|
|
2,010 |
|
|
|
141 |
|
Accounts payable |
|
|
22,328 |
|
|
|
11,438 |
|
Accrued expenses and other |
|
|
(7,048 |
) |
|
|
(4,791 |
) |
Federal and state excise taxes payable |
|
|
1,319 |
|
|
|
681 |
|
Other, net |
|
|
439 |
|
|
|
(61 |
) |
Net cash provided by operating activities |
|
|
20,156 |
|
|
|
43,019 |
|
|
|
|
|
|
Cash Flows from Investing
Activities |
|
|
|
|
Additions to property, plant, and equipment |
|
|
(30,055 |
) |
|
|
(18,087 |
) |
Purchase of business, net of cash acquired |
|
|
(104,398 |
) |
|
|
— |
|
Contributions to equity method investment |
|
|
— |
|
|
|
(1,028 |
) |
Other, net |
|
|
(1,136 |
) |
|
|
(369 |
) |
Net cash used in investing activities |
|
|
(135,589 |
) |
|
|
(19,484 |
) |
|
|
|
|
|
Cash Flows from Financing
Activities |
|
|
|
|
Payment of dividends and dividend equivalents |
|
|
(5,337 |
) |
|
|
(5,322 |
) |
Purchase of treasury stock |
|
|
(801 |
) |
|
|
(713 |
) |
Proceeds from long-term debt |
|
|
105,000 |
|
|
|
— |
|
Principal payments on long-term debt |
|
|
(9,400 |
) |
|
|
(1,614 |
) |
Net cash provided by (used in) financing
activities |
|
|
89,462 |
|
|
|
(7,649 |
) |
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents |
|
|
41 |
|
|
|
(39 |
) |
Increase (decrease) in cash
and cash equivalents |
|
|
(25,930 |
) |
|
|
15,847 |
|
Cash and cash equivalents,
beginning of period |
|
|
47,889 |
|
|
|
21,568 |
|
Cash and cash equivalents, end
of period |
|
$ |
21,959 |
|
|
$ |
37,415 |
|
MGP
INGREDIENTS, INC.RECONCILIATION OF SELECTED GAAP
MEASURES TO ADJUSTED NON-GAAP MEASURES (UNAUDITED)(in
thousands) |
|
Quarter Ended June 30, 2023 |
|
Gross Profit |
|
Operating Income |
|
Income before Income Taxes |
|
Net Income |
|
MGP Earnings(a) |
|
Basic and Diluted EPS |
Reported GAAP Results |
$ |
76,295 |
|
$ |
44,143 |
|
$ |
42,768 |
|
$ |
31,964 |
|
$ |
31,802 |
|
$ |
1.44 |
Adjusted to remove: |
|
|
|
|
|
|
|
|
|
|
|
Business acquisition costs (b) |
|
— |
|
|
1,500 |
|
|
1,500 |
|
|
1,125 |
|
|
1,125 |
|
|
0.05 |
Adjusted Non-GAAP
results |
$ |
76,295 |
|
$ |
45,643 |
|
$ |
44,268 |
|
$ |
33,089 |
|
$ |
32,927 |
|
$ |
1.49 |
|
Quarter Ended June 30, 2022 |
|
Gross Profit |
|
Operating Income |
|
Income before Income Taxes |
|
Net Income |
|
MGP Earnings(a) |
|
Basic and Diluted EPS |
Reported GAAP Results |
$ |
59,224 |
|
$ |
35,306 |
|
$ |
32,701 |
|
$ |
25,362 |
|
$ |
25,343 |
|
$ |
1.15 |
Adjusted to remove: |
|
|
|
|
|
|
|
|
|
|
|
No adjustments for the period |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Adjusted Non-GAAP
results |
$ |
59,224 |
|
$ |
35,306 |
|
$ |
32,701 |
|
$ |
25,362 |
|
$ |
25,343 |
|
$ |
1.15 |
|
Year to Date Ended June 30, 2023 |
|
Gross Profit |
|
Operating Income |
|
Income before Income Taxes |
|
Net Income |
|
MGP Earnings(a) |
|
Basic EPS |
|
Diluted EPS |
Reported GAAP Results |
$ |
146,119 |
|
$ |
85,702 |
|
$ |
83,455 |
|
$ |
62,996 |
|
$ |
62,564 |
|
$ |
2.84 |
|
$ |
2.83 |
Adjusted to remove: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Business acquisition costs (b) |
|
— |
|
|
1,500 |
|
|
1,500 |
|
|
1,125 |
|
|
1,125 |
|
|
0.05 |
|
|
0.05 |
Adjusted Non-GAAP
results |
$ |
146,119 |
|
$ |
87,202 |
|
$ |
84,955 |
|
$ |
64,121 |
|
$ |
63,689 |
|
$ |
2.89 |
|
$ |
2.88 |
|
Year to Date Ended June 30, 2022 |
|
Gross Profit |
|
Operating Income |
|
Income before Income Taxes |
|
Net Income |
|
MGP Earnings(a) |
|
Basic and Diluted EPS |
Reported GAAP Results |
$ |
131,045 |
|
$ |
85,386 |
|
$ |
81,237 |
|
$ |
62,733 |
|
$ |
62,462 |
|
$ |
2.84 |
Adjusted to remove: |
|
|
|
|
|
|
|
|
|
|
|
No adjustments for the period |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Adjusted Non-GAAP
results |
$ |
131,045 |
|
$ |
85,386 |
|
$ |
81,237 |
|
$ |
62,733 |
|
$ |
62,462 |
|
$ |
2.84 |
(a) MGP Earnings is defined as "Net income used in Earnings Per
Common Share calculation." (b) Business
acquisition costs are included in the Consolidated Statement of
Income within the selling, general, and administrative line item
and include transaction and integration costs associated with the
acquisition of Penelope Bourbon LLC.
MGP
INGREDIENTS, INC.RECONCILIATION OF NET INCOME TO
ADJUSTED EBITDA (UNAUDITED)(in
thousands) |
|
Quarter Ended June 30, |
|
Year to Date Ended June 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Net Income |
$ |
31,964 |
|
$ |
25,362 |
|
$ |
62,996 |
|
$ |
62,733 |
Interest expense |
|
1,282 |
|
|
1,543 |
|
|
2,277 |
|
|
3,141 |
Income tax expense |
|
10,804 |
|
|
7,339 |
|
|
20,459 |
|
|
18,504 |
Depreciation and amortization |
|
5,319 |
|
|
5,303 |
|
|
10,490 |
|
|
10,924 |
Equity method investment loss |
|
319 |
|
|
574 |
|
|
579 |
|
|
180 |
Business acquisition costs |
|
1,500 |
|
|
— |
|
|
1,500 |
|
|
— |
Adjusted EBITDA |
$ |
51,188 |
|
$ |
40,121 |
|
$ |
98,301 |
|
$ |
95,482 |
The non-GAAP adjusted EBITDA measure is defined as earnings
before interest expense, income tax expense, depreciation and
amortization, equity method investment loss (income), and business
acquisition costs. See "Reconciliation of selected GAAP measure to
adjusted non-GAAP measures" for further details.
MGP
INGREDIENTS, INC.DILUTIVE SHARES OUTSTANDING
CALCULATION (UNAUDITED) |
|
Quarter Ended June 30, |
|
Year to Date Ended June 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Principal amount of the
bonds |
$ |
201,250,000 |
|
|
$ |
201,250,000 |
|
|
$ |
201,250,000 |
|
|
$ |
201,250,000 |
|
Par value |
$ |
1,000 |
|
|
$ |
1,000 |
|
|
$ |
1,000 |
|
|
$ |
1,000 |
|
Number of bonds outstanding
(a) |
|
201,250 |
|
|
|
201,250 |
|
|
|
201,250 |
|
|
|
201,250 |
|
|
|
|
|
|
|
|
|
Initial conversion rate |
|
10.3911 |
|
|
|
10.3911 |
|
|
|
10.3911 |
|
|
|
10.3911 |
|
Conversion price |
$ |
96.23620 |
|
|
$ |
96.23620 |
|
|
$ |
96.23620 |
|
|
$ |
96.23620 |
|
|
|
|
|
|
|
|
|
Average share price (b) |
$ |
99.94097 |
|
|
$ |
93.95754 |
|
|
$ |
98.82927 |
|
|
$ |
87.19756 |
|
Impact of conversion (c) |
$ |
208,997,443 |
|
|
$ |
— |
|
|
$ |
206,672,647 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
Cash paid for principal |
|
(201,250,000 |
) |
|
|
(201,250,000 |
) |
|
|
(201,250,000 |
) |
|
|
(201,250,000 |
) |
Conversion
premium |
$ |
7,747,443 |
|
|
$ |
— |
|
|
$ |
5,422,647 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
Average share price |
$ |
99.94097 |
|
|
$ |
93.95754 |
|
|
$ |
98.82927 |
|
|
$ |
87.19756 |
|
Conversion premium in
shares (d) (e) |
|
77,520 |
|
|
|
— |
|
|
|
54,869 |
|
|
|
— |
|
(a) Number of bonds outstanding is calculated by taking the
principal amount of the bonds divided by the par value.(b) Average
share price is calculated by taking the average of the daily
closing share price for the period. If the average share price is
less than the conversion price of $96.23620 per share, the impact
to EPS is anti-dilutive and therefore the shares were excluded from
the diluted EPS calculation. (c) Impact of conversion is calculated
by taking the number of bonds outstanding multiplied by the initial
conversion rate multiplied by the average share price. If the
average share price is less than the conversion price then the
impact of conversion is zero. (d) The impacts of the Convertible
Senior Notes were included in the diluted weighted average common
shares outstanding if the impact was dilutive. The Convertible
Senior Notes would only have a dilutive impact if the average
market price per share during the quarter and year to date period
exceeds the conversion price of $96.23620 per share. For the
quarter ended June 30, 2023, the average market price per share
during the quarter exceeded $96.24 per share; however, the impact
to diluted EPS calculation was less than $0.01, which resulted in
reported basic and diluted EPS being equal at $1.44. For the year
to date ended June 30, 2023, the inclusion of the shares had a
dilutive impact and were included in the diluted EPS calculation.
For the quarter ended and year to date ended June 30, 2023, the
inclusion of the shares had a dilutive impact and were included in
the diluted EPS calculation. There was no dilutive impact for the
quarter ended and year to date ended June 30, 2022.(e) Conversion
premium in shares is calculated by taking the conversion premium
divided by the average share price. If the average share price is
less than the conversion price, then the conversion premium in
shares is zero. MGP INGREDIENTS,
INC.Purchase Accounting - Summary of Preliminary
Fair Value Step Up(UNAUDITED)(in thousands)
The acquisition of Penelope Bourbon LLC, which closed on June 1,
2023, was accounted for as a business combination in accordance
with Accounting Standard Codification 805 “ASC 805”), Business
Combinations, and as such, assets acquired, liabilities assumed,
and consideration transferred were recorded at their estimated fair
values on the acquisition date. The fair value of the assets and
liabilities are based upon a preliminary assessment of fair value
and may change as valuations for certain tangible assets,
intangible assets and contingent liabilities are finalized and the
associated income tax impacts are determined. The Company expects
to finalize the purchase price allocation as soon as practicable,
but no longer than one year from the acquisition date. The table
below reflects the summary for distributor relationships
preliminary purchase price accounting step up to fair value, the
related amortization period and the Income Statement caption within
which the adjustment is included.
|
Step Up Value |
|
Amortization Period |
|
Income Statement Caption |
|
Q2 2023 Income Statement Impact |
Definite-lived intangible asset - Distributor relationships |
$ |
22,100 |
|
20 years |
|
SG&A |
|
$ |
92 |
MGP
INGREDIENTS, INC.Impact of the Planned Closure of
the Atchison Distillery Segment Operating Results
and Pro-Forma ResultsYear to Date Ended June 30,
2023(UNAUDITED) (in thousands) |
|
|
Distilling Solutions |
|
|
Year to Date Ended June 30, 2023 |
|
Increase/(Decrease) |
|
|
As Reported(a) |
|
Pro-Forma(b) |
|
$ Change |
|
% Change |
|
Brown Goods |
$ |
141,448 |
|
|
$ |
141,448 |
|
|
$ |
— |
|
|
— |
% |
|
White Goods |
|
32,770 |
|
|
|
6,895 |
|
|
|
(25,875 |
) |
|
(79 |
) |
|
Premium beverage alcohol |
|
174,218 |
|
|
|
148,343 |
|
|
|
(25,875 |
) |
|
(15 |
) |
|
Industrial alcohol |
|
20,504 |
|
|
|
— |
|
|
|
(20,504 |
) |
|
(100 |
) |
|
Food grade alcohol |
|
194,722 |
|
|
|
148,343 |
|
|
|
(46,379 |
) |
|
(24 |
) |
|
Fuel grade alcohol |
|
4,454 |
|
|
|
14 |
|
|
|
(4,440 |
) |
|
(100 |
) |
|
Distillers feed and related
co-products |
|
17,307 |
|
|
|
5,804 |
|
|
|
(11,503 |
) |
|
(66 |
) |
|
Warehouse services |
|
13,605 |
|
|
|
13,605 |
|
|
|
— |
|
|
— |
|
|
Total Sales |
$ |
230,088 |
|
|
$ |
167,766 |
|
|
$ |
(62,322 |
) |
|
(27 |
)% |
|
|
|
|
|
|
|
|
|
|
Gross
profit |
$ |
71,706 |
|
|
$ |
75,238 |
|
|
$ |
3,532 |
|
|
5 |
% |
|
Gross margin
% |
|
31.2 |
% |
|
|
44.8 |
% |
|
|
|
13.6 |
|
pp(c) |
|
Ingredient Solutions |
|
|
Year to Date Ended June 30, 2023 |
|
Increase/(Decrease) |
|
|
As Reported(a) |
|
Pro-Forma(b) |
|
$ Change |
|
% Change |
|
Specialty wheat starches |
$ |
31,781 |
|
|
$ |
31,781 |
|
|
$ |
— |
|
|
— |
% |
|
Specialty wheat proteins |
|
24,478 |
|
|
|
24,478 |
|
|
|
— |
|
|
— |
|
|
Commodity wheat starches |
|
8,644 |
|
|
|
8,644 |
|
|
|
— |
|
|
— |
|
|
Commodity wheat proteins |
|
521 |
|
|
|
521 |
|
|
|
— |
|
|
— |
|
|
Total Sales |
$ |
65,424 |
|
|
$ |
65,424 |
|
|
$ |
— |
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
Gross
profit |
$ |
23,817 |
|
|
$ |
20,403 |
|
|
$ |
(3,414 |
) |
(d) |
(14 |
)% |
|
Gross margin
% |
|
36.4 |
% |
|
|
31.2 |
% |
|
|
|
(5.2 |
) |
pp(c) |
|
Consolidated |
|
|
Year to Date Ended June 30, 2023 |
|
Increase/(Decrease) |
|
|
As Reported(a) |
|
Pro-Forma(b) |
|
$ Change |
|
% Change |
|
Sales |
$ |
410,011 |
|
|
$ |
347,689 |
|
|
$ |
(62,322 |
) |
|
(15 |
)% |
|
Gross profit |
$ |
146,119 |
|
|
$ |
146,237 |
|
|
$ |
118 |
|
|
— |
% |
|
Gross margin
% |
|
35.6 |
% |
|
|
42.1 |
% |
|
|
|
6.5 |
|
pp(c) |
(a) Represents actual results of the Company for the year to
date ended June 30, 2023, as reported in the Company's Quarterly
Report on Form 10-Q for the quarter ended June 30, 2023.(b)
Represents the Company's results for the year to date ended June
30, 2023 excluding results associated with the Company's Atchison,
Kansas distillery. These are pro-forma unaudited financial results
and are preliminary. In some circumstances, white goods, industrial
alcohol, fuel grade alcohol, and at times certain co-products are
produced at the Company's Lawrenceburg, Indiana distillery. The
pro-forma financial results assume the loss of the waste starch
slurry credit and no gain or loss on the disposal. The results of
the Branded Spirits segment for the year to date ended June 30,
2023 would not have been impacted by a closure of the Atchison,
Kansas distillery.(c) Percentage points (“pp”).(d) The reduction in
gross profit for the Ingredient Solutions segment is the result of
increased cost of goods sold from no longer receiving an
intercompany credit for the waste starch slurry by-product
purchased by the adjoined Atchison, Kansas distillery. The value of
the intercompany credit is derived from the value of corn which has
fluctuated over time.
MGP
INGREDIENTS, INC.Impact of the Planned Closure of
the Atchison Distillery Segment Operating Results
and Pro-Forma ResultsYear Ended December 21,
2022(UNAUDITED) (in thousands) |
|
|
Distilling Solutions |
|
|
Year Ended December 31, 2022 |
|
Increase/(Decrease) |
|
|
As Reported(a) |
|
Pro-Forma(b) |
|
$ Change |
|
% Change |
|
Brown Goods |
$ |
229,523 |
|
|
$ |
229,523 |
|
|
$ |
— |
|
|
— |
% |
|
White Goods |
|
74,510 |
|
|
|
24,110 |
|
|
|
(50,400 |
) |
|
(68 |
) |
|
Premium beverage alcohol |
|
304,033 |
|
|
|
253,633 |
|
|
|
(50,400 |
) |
|
(17 |
) |
|
Industrial alcohol |
|
46,812 |
|
|
|
907 |
|
|
|
(45,905 |
) |
|
(98 |
) |
|
Food grade alcohol |
|
350,845 |
|
|
|
254,540 |
|
|
|
(96,305 |
) |
|
(27 |
) |
|
Fuel grade alcohol |
|
13,681 |
|
|
|
41 |
|
|
|
(13,640 |
) |
|
(100 |
) |
|
Distillers feed and related
co-products |
|
40,354 |
|
|
|
9,477 |
|
|
|
(30,877 |
) |
|
(77 |
) |
|
Warehouse services |
|
23,598 |
|
|
|
23,598 |
|
|
|
— |
|
|
— |
|
|
Total Sales |
$ |
428,478 |
|
|
$ |
287,656 |
|
|
$ |
(140,822 |
) |
|
(33 |
)% |
|
|
|
|
|
|
|
|
|
|
Gross
profit |
$ |
126,282 |
|
|
$ |
132,388 |
|
|
$ |
6,106 |
|
|
5 |
% |
|
Gross margin
% |
|
29.5 |
% |
|
|
46.0 |
% |
|
|
|
16.5 |
|
pp(c) |
|
Ingredient Solutions |
|
|
Year Ended December 31, 2022 |
|
Increase/(Decrease) |
|
|
As Reported(a) |
|
Pro-Forma(b) |
|
$ Change |
|
% Change |
|
Specialty wheat starches |
$ |
62,567 |
|
|
$ |
62,567 |
|
|
$ |
— |
|
|
— |
% |
|
Specialty wheat proteins |
|
39,313 |
|
|
|
39,313 |
|
|
|
— |
|
|
— |
|
|
Commodity wheat starches |
|
14,023 |
|
|
|
14,023 |
|
|
|
— |
|
|
— |
|
|
Commodity wheat proteins |
|
38 |
|
|
|
38 |
|
|
|
— |
|
|
— |
|
|
Total Sales |
$ |
115,941 |
|
|
$ |
115,941 |
|
|
$ |
— |
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
Gross
profit |
$ |
31,503 |
|
|
$ |
26,017 |
|
|
$ |
(5,486 |
) |
(d) |
(17 |
)% |
|
Gross margin
% |
|
27.2 |
% |
|
|
22.4 |
% |
|
|
|
(4.8 |
) |
pp(c) |
|
Consolidated |
|
|
Year Ended December 31, 2022 |
|
Increase/(Decrease) |
|
|
As Reported(a) |
|
Pro-Forma(b) |
|
$ Change |
|
% Change |
|
Sales |
$ |
782,358 |
|
|
$ |
641,536 |
|
|
$ |
(140,822 |
) |
|
(18 |
)% |
|
Gross profit |
$ |
253,306 |
|
|
$ |
253,926 |
|
|
$ |
620 |
|
|
— |
% |
|
Gross margin
% |
|
32.4 |
% |
|
|
39.6 |
% |
|
|
|
7.2 |
|
pp(c) |
(a) Represents actual results of the Company for the year ended
December 31, 2022, as reported in the Company's Annual Report on
Form 10-K for the year ended December 31, 2022.(b) Represents the
Company's results for the year ended December 31, 2022 excluding
results associated with the Company's Atchison, Kansas distillery.
These are pro-forma unaudited financial results and are
preliminary. In some circumstances, white goods, industrial
alcohol, fuel grade alcohol, and at times certain co-products are
produced at the Company's Lawrenceburg, Indiana distillery. The
pro-forma financial results assume the loss of the waste starch
slurry credit and no gain or loss on the disposal. The results of
the Branded Spirits segment for the year ended December 31, 2022
would not have been impacted by a closure of the Atchison, Kansas
distillery.(c) Percentage points (“pp”).(d) The reduction in gross
profit for the Ingredient Solutions segment is the result of
increased cost of goods sold from no longer receiving an
intercompany credit for the waste starch slurry by-product
purchased by the adjoined Atchison, Kansas distillery. The value of
the intercompany credit is derived from the value of corn which has
fluctuated over time.
Grafico Azioni MGP Ingredients (NASDAQ:MGPI)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni MGP Ingredients (NASDAQ:MGPI)
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Da Set 2023 a Set 2024