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Dean Foods Company (DF) filed Quarterly Report for the period ended 2011-09-30.
Dean Foods Co. has a market cap of $1.92 billion; its shares were traded at around $10.48 with a P/E ratio of 17.4 and P/S ratio of 0.2.
This is the annual revenues and earnings per share of DF over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of DF.
Highlight of Business Operations:
Income Taxes — Income tax benefit was recorded at an effective rate of 19.6% in the third quarter of 2011 compared to a 38.3% effective tax expense rate in the same period of 2010. Generally, our effective tax rate varies primarily based on our profitability level and the relative earnings of our business units. In the third quarter of 2011, our tax benefit rate was decreased by nondeductible goodwill related to the impairment charge. Excluding the impact of the goodwill impairment, our effective tax rate was 35.5%, which reflected the relative profitability of our foreign operations and a favorable settlement of taxing authority examinations.Net Sales — Fresh Dairy Direct-Morningstar’s net sales increased $304.4 million, or 11.8%, during the third quarter of 2011 compared to the third quarter of 2010 primarily due to improved pass-through of higher commodity costs. This increase was partially offset by volume declines in our ice cream and cultured products, and the impact of the divestiture of our yogurt operations also contributed to the offset. Fresh fluid milk category volume was flat for the quarter, which accounts for approximately 70% of our total volume at Fresh Dairy Direct-Morningstar.The industry and our Fresh Dairy Direct-Morningstar segment continue to experience declining volume trends. The continued recessionary environment during the third quarter of 2011 continues to have a negative impact on consumer spending, which has had a pronounced impact on sales in the fluid milk category. We expect these trends to continue in the near term.
Income Taxes — Income tax benefit was recorded at an effective rate of 19.7% in the first nine months of 2011 compared to a 37.0% effective tax expense rate in the same period of 2010. Generally, our effective tax rate varies primarily based on our profitability level and the relative earnings of our business units. In the first nine months of 2011, our tax benefit rate was decreased by nondeductible goodwill related to the impairment charge. Excluding the impact of the goodwill impairment, our effective tax benefit rate was 25.4%, which reflected the impact of changes in certain state tax laws on comparatively low income (loss) from continuing operations before income taxes. Favorable settlements of taxing authority examinations impacted the rate for the first nine months of 2011 and 2010.
Net Sales — Fresh Dairy Direct-Morningstar’s net sales increased $649.6 million, or 8.6%, during the first nine months of 2011 versus the first nine months of 2010 primarily due to improved pass-through of higher commodity costs, partially offset by a 1% volume decline in our fresh fluid milk category, which accounts for approximately 70% of our total volume at Fresh Dairy Direct-Morningstar. Additionally, volume declines in our ice cream and cultured products, as well as the impact of our divestiture of our yogurt operations, contributed to the offset. The industry and our Fresh Dairy Direct-Morningstar segment continue to experience declining volume trends. The continued recessionary environment during the first nine months of 2011 continues to have a negative impact on consumer spending, which has had a pronounced impact on the fluid milk category. We expect these trends to continue in the near term.
Income tax benefit was recorded at an effective rate of 19.7%, or 25.4% excluding the impact of the goodwill impairment charge, in the first nine months of 2011 compared to a 37.0% effective tax expense rate in the first nine months of 2010. Changes in the collective and relative profitability of our operating segments, as well as changes to federal, state, and foreign tax laws, may cause the rate to change from historical rates.
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