Bob Evans Farms Inc. (BOBE, Financial) filed Quarterly Report for the period ended 2012-10-26.
Bob Evans Farms, Inc. has a market cap of $1.01 billion; its shares were traded at around $37.61 with a P/E ratio of 13.9 and P/S ratio of 0.6. The dividend yield of Bob Evans Farms, Inc. stocks is 3.1%. Bob Evans Farms, Inc. had an annual average earning growth of 4.8% over the past 10 years. GuruFocus rated Bob Evans Farms, Inc. the business predictability rank of 2.5-star.
BEF Foods experienced a sales increase of $4.9 million, or 6.3%, in the second quarter of fiscal 2013, compared to the corresponding period last year. The increase in net sales in the second quarter fiscal 2013 is a result of an increase in total pounds sold. Total pounds sold increased 16.1% in the second quarter of fiscal 2013. We acquired Kettle early in the second quarter of fiscal 2013, which accounted for $1.6 million in net sales and 3.4% of the increase in total pounds sold. The increase in net sales was partially offset by an increase in promotional expenses, which are a reduction from gross sales to net sales, of $4.3 million. For the six-month period ended 2013, BEF Foods experienced a sales increase of $8.2 million or 5.5%, compared to the corresponding period last year. Total pounds sold increased 11.8% for the six months ended October 26, 2012, partially offset by an increase in promotional expenses of $4.5 million.
BEF Foods cost of sales ratio was 47.4% of net sales in the second quarter of 2013 and 49.0% of net sales through six months of fiscal 2013, compared to 58.8% and 56.7% of net sales, respectively, in the corresponding periods a year ago. The decrease in BEF Foods cost of sales ratio in the second quarter and through six months of fiscal 2013 was due primarily to a decrease in sow costs and our acquisition of Kettle. Sow costs averaged $43.22 and $47.96 per hundredweight in the second quarter and through six months of fiscal 2013, respectively, compared to $67.82 and $62.72, per hundredweight, respectively in the corresponding periods last year. We expect sow costs to average $55 to $60 per hundredweight for the fiscal year. Prior to the acquisition of Kettle, all production costs were included in cost of sales. Subsequent to the acquisition, as an owned facility, labor costs and depreciation associated with production are included in operating wages and depreciation, reducing the cost of sales line.
Bob Evans Restaurants other operating expenses were 18.1% of net sales and 18.3% of net sales in the second quarter and through six months of fiscal 2013, respectively, compared to 18.0% and 17.7% of net sales, respectively, in the corresponding periods last year. The increase in other operating expense ratio in the second quarter and through six months was a result of new restaurant development and our Farm Fresh Refresh remodeling initiative. For the second quarter ended October 26, 2012, this initiative resulted in increases of $0.9 million, $0.5 million and $0.3 million due to management wages, marketing and preopening expenses, respectively. For the six months ended October 26, 2012, this initiative resulted in increases of $0.6 million, $1.0 million, $0.6 million and $0.7 million, due to additional restaurant supplies, marketing expenses, occupancy costs and preopening expenses, respectively.
BEF Foods S,G&A expenses were 23.9% of net sales and 21.1% of net sales in the second quarter and through six months of fiscal 2013, respectively, compared to 18.4% and 18.5% of net sales, respectively, in the corresponding periods last year. The increase in the S,G&A expense ratio in the second quarter and through six months of fiscal 2013 was primarily the result of $3.2 million and $3.9 million in severance and restructuring costs, respectively, $1.0 million and $1.4 million in acquisition related costs, primarily associated with our acquisition of Kettle, respectively and $0.4 million in charges associate with a product recall recorded in second quarter of fiscal 2013.
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Bob Evans Farms, Inc. has a market cap of $1.01 billion; its shares were traded at around $37.61 with a P/E ratio of 13.9 and P/S ratio of 0.6. The dividend yield of Bob Evans Farms, Inc. stocks is 3.1%. Bob Evans Farms, Inc. had an annual average earning growth of 4.8% over the past 10 years. GuruFocus rated Bob Evans Farms, Inc. the business predictability rank of 2.5-star.
Highlight of Business Operations:
Operating income in the BEF Foods segment was $4.5 million, an increase of $0.5 million in the second quarter of fiscal 2013, compared to $4.0 million in the corresponding period last year. The factors that had the greatest positive impact on BEF Foods segments profitability were increases in total pounds sold of 16.1%, compared to the corresponding period last year, a decrease in sow costs of 36.3% and a decrease in other purchased product costs, partially offset by $3.2 million in restructuring and severance costs and $1.0 million in acquisition related costs included in S,G&A expenses. The increase in total pounds sold of 16.1% is partially related to our acquisition of the Kettle Creations® brand and manufacturing facility (Kettle) in the beginning of the second quarter of fiscal 2013, which accounted for 3.4% of the increase. Sow costs represent a significant part of BEF Foods segments cost of sales, and the volatile nature of sow costs greatly impacts the profitability of the segment. Average sow costs decreased to $43.22 per hundredweight in the second quarter of fiscal 2013, or 36.3%, from $67.82 per hundredweight in the corresponding period last year.BEF Foods experienced a sales increase of $4.9 million, or 6.3%, in the second quarter of fiscal 2013, compared to the corresponding period last year. The increase in net sales in the second quarter fiscal 2013 is a result of an increase in total pounds sold. Total pounds sold increased 16.1% in the second quarter of fiscal 2013. We acquired Kettle early in the second quarter of fiscal 2013, which accounted for $1.6 million in net sales and 3.4% of the increase in total pounds sold. The increase in net sales was partially offset by an increase in promotional expenses, which are a reduction from gross sales to net sales, of $4.3 million. For the six-month period ended 2013, BEF Foods experienced a sales increase of $8.2 million or 5.5%, compared to the corresponding period last year. Total pounds sold increased 11.8% for the six months ended October 26, 2012, partially offset by an increase in promotional expenses of $4.5 million.
BEF Foods cost of sales ratio was 47.4% of net sales in the second quarter of 2013 and 49.0% of net sales through six months of fiscal 2013, compared to 58.8% and 56.7% of net sales, respectively, in the corresponding periods a year ago. The decrease in BEF Foods cost of sales ratio in the second quarter and through six months of fiscal 2013 was due primarily to a decrease in sow costs and our acquisition of Kettle. Sow costs averaged $43.22 and $47.96 per hundredweight in the second quarter and through six months of fiscal 2013, respectively, compared to $67.82 and $62.72, per hundredweight, respectively in the corresponding periods last year. We expect sow costs to average $55 to $60 per hundredweight for the fiscal year. Prior to the acquisition of Kettle, all production costs were included in cost of sales. Subsequent to the acquisition, as an owned facility, labor costs and depreciation associated with production are included in operating wages and depreciation, reducing the cost of sales line.
Bob Evans Restaurants other operating expenses were 18.1% of net sales and 18.3% of net sales in the second quarter and through six months of fiscal 2013, respectively, compared to 18.0% and 17.7% of net sales, respectively, in the corresponding periods last year. The increase in other operating expense ratio in the second quarter and through six months was a result of new restaurant development and our Farm Fresh Refresh remodeling initiative. For the second quarter ended October 26, 2012, this initiative resulted in increases of $0.9 million, $0.5 million and $0.3 million due to management wages, marketing and preopening expenses, respectively. For the six months ended October 26, 2012, this initiative resulted in increases of $0.6 million, $1.0 million, $0.6 million and $0.7 million, due to additional restaurant supplies, marketing expenses, occupancy costs and preopening expenses, respectively.
BEF Foods S,G&A expenses were 23.9% of net sales and 21.1% of net sales in the second quarter and through six months of fiscal 2013, respectively, compared to 18.4% and 18.5% of net sales, respectively, in the corresponding periods last year. The increase in the S,G&A expense ratio in the second quarter and through six months of fiscal 2013 was primarily the result of $3.2 million and $3.9 million in severance and restructuring costs, respectively, $1.0 million and $1.4 million in acquisition related costs, primarily associated with our acquisition of Kettle, respectively and $0.4 million in charges associate with a product recall recorded in second quarter of fiscal 2013.
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