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B&G Foods Inc. Reports Operating Results (10-Q)

July 26, 2012 | About:

10qk

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B&G Foods Inc. (BGS) filed Quarterly Report for the period ended 2012-06-30.

B&g Foods, Inc. has a market cap of $1.32 billion; its shares were traded at around $27.99 with a P/E ratio of 22.2 and P/S ratio of 2.4. The dividend yield of B&g Foods, Inc. stocks is 4%. B&g Foods, Inc. had an annual average earning growth of 2% over the past 5 years.

Highlight of Business Operations:

Inventories are stated at the lower of cost or market and include direct material, direct labor, overhead, warehousing and product transfer costs. Cost is determined using the first-in, first-out and average cost methods. Inventories have been reduced by an allowance for excess, obsolete and unsaleable inventories. The allowance is an estimate based on our managements review of inventories on hand compared to estimated future usage and sales.

Our exposure to credit loss in the event of non-payment of accounts receivable by customers is estimated in the amount of the allowance for doubtful accounts. We perform ongoing credit evaluations of our customers financial condition. Our top ten customers accounted for approximately 51.1% and 50.7% of consolidated net sales for the first two quarters of 2012 and 2011, respectively. Our top ten customers accounted for approximately 54.2% and 53.2% of our receivables as of June 30, 2012 and December 31, 2011, respectively. Other than Wal-Mart, which accounted for 19.9% and 16.5% of our consolidated net sales for the first two quarters of 2012 and 2011, no single customer accounted for more than 10.0% of our consolidated net sales for the first two quarters of 2012 or 2011. Other than Wal-Mart, which accounted for 19.2% and 14.4% of our consolidated receivables as of June 30, 2012 and December 31, 2011, respectively, no single customer accounted for more than 10.0% of our consolidated receivables. As of June 30, 2012, we do not believe we have any significant concentration of credit risk with respect to our trade accounts receivable.

During the first two quarters of 2012 and 2011, our sales to foreign countries represented approximately 3.4% and less than 1.0%, respectively, of net sales. Our foreign sales are primarily to customers in Canada.

Net sales of our Ortega and Cream of Wheat products increased by $1.5 million and $0.6 million or 4.7% and 4.9%, respectively. These increases were offset by a reduction in net sales of B&G, Las Palmas and Underwood products of $1.2 million, $0.6 million and $0.5 million or 12.5%, 7.1% and 8.1%, respectively. In the aggregate, net sales for all other brands decreased $0.1 million or 0.1%.

Net sales of our lines of Ortega and Maple Grove Farms of Vermont products increased in the amounts of $3.2 million and $1.5 million or 5.0% and 4.4%, respectively. These increases were offset by a reduction in net sales of our B&G, Cream of Wheat, Underwood and Don Pepino products of $1.9 million, $0.9 million, $0.7 million and $0.6 million or 10.9%, 3.0%, 6.7% and 7.9%. In the aggregate, net sales for all other brands decreased $0.6 million, or 0.6%.

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