Diamond Foods Inc. (DMND, Financial) filed Quarterly Report for the period ended 2009-01-31.
Diamond Foods is a branded food company specializing in processing marketing and distributing culinary snack in-shell and ingredient nuts under the Diamond of California and Emerald of California brands. Diamond's products include walnuts pine nuts pecans peanuts macadamia nuts hazelnuts cashews Brazil nuts and almonds. Diamond Foods Inc. has a market cap of $363.9 million; its shares were traded at around $22.23 with a P/E ratio of 20.7 and P/S ratio of 0.7. The dividend yield of Diamond Foods Inc. stocks is 0.8%.
During the six months ended January 31, 2009, cash generated from operating activities was $8.5 million compared to $29.7 million during the six months ended January 31, 2008. The decrease in cash from operating activities was primarily due to timing of payments to growers and other vendors, as well as increased working capital associated with the Pop Secret business. Cash used in investing activities was $192.8 million in 2009 compared to $3.8 million in 2008. This change was mainly due to the acquisition of the Pop Secret popcorn business. Cash provided by financing activities during the six months ended January 31, 2009 was $112.2 million compared to $0.8 million of cash used in financing activities for the six months ended January 31, 2008. The increase was mainly due to long-term borrowing to fund the Pop Secret acquisition.
On September 15, 2008, we replaced our $20 million Senior Notes due December 2013 (the Senior Notes), the Credit Agreement dated December 2, 2004, between us and Bank of the West, and the Master Loan Agreement dated February 23, 2004, between us and CoBank ACB, as amended (collectively called the Bank Debt) with a new five year unsecured $250 million Senior Credit Facility (the Credit Facility). The proceeds of the Credit Facility were used in part to fund the $190 million purchase of the Pop Secret business from General Mills and ongoing operational needs, as well as to repay the Senior Notes. An early termination fee of $2.6 million was incurred in connection with the prepayment of the Senior Notes.
The Credit Facility consists of a $125 million revolving credit line and a $125 million term loan. The term loan amortizes at a rate of $10 million, $15 million, $20 million, $25 million and $55 million, annually over the succeeding five years (due quarterly, which commenced October 31, 2008). In addition, there is a provision that requires us to pay down the term loan at a faster rate in the event cash flows exceed certain specified levels. The interest rate for the entire Credit Facility is tied to LIBOR plus a credit spread linked to our leverage ratio.
Working capital and stockholders equity were $42.6 million and $163.9 million at January 31, 2009 compared to $121.5 million and $146.2 million at July 31, 2008 and $112.8 million and $138.8 million at January 31, 2008. The decrease in working capital was due to the Pop Secret acquisition and, in part, to seasonal factors.
Read the The complete Report
Diamond Foods is a branded food company specializing in processing marketing and distributing culinary snack in-shell and ingredient nuts under the Diamond of California and Emerald of California brands. Diamond's products include walnuts pine nuts pecans peanuts macadamia nuts hazelnuts cashews Brazil nuts and almonds. Diamond Foods Inc. has a market cap of $363.9 million; its shares were traded at around $22.23 with a P/E ratio of 20.7 and P/S ratio of 0.7. The dividend yield of Diamond Foods Inc. stocks is 0.8%.
Highlight of Business Operations:
Net sales were $150.6 million and $346.1 million for the three and six months ended January 31, 2009. Net sales were $133.8 million and $318.3 million for the three and six months ended January 31, 2008. For the three months ended January 31, 2009, the increase in net sales was primarily due to increased snack sales, including Pop Secret. For the six months ended January 31, 2009, the increase in sales was primarily due to an increase in snack product sales, including Pop Secret, and higher culinary pricing, offset by lower volume.During the six months ended January 31, 2009, cash generated from operating activities was $8.5 million compared to $29.7 million during the six months ended January 31, 2008. The decrease in cash from operating activities was primarily due to timing of payments to growers and other vendors, as well as increased working capital associated with the Pop Secret business. Cash used in investing activities was $192.8 million in 2009 compared to $3.8 million in 2008. This change was mainly due to the acquisition of the Pop Secret popcorn business. Cash provided by financing activities during the six months ended January 31, 2009 was $112.2 million compared to $0.8 million of cash used in financing activities for the six months ended January 31, 2008. The increase was mainly due to long-term borrowing to fund the Pop Secret acquisition.
On September 15, 2008, we replaced our $20 million Senior Notes due December 2013 (the Senior Notes), the Credit Agreement dated December 2, 2004, between us and Bank of the West, and the Master Loan Agreement dated February 23, 2004, between us and CoBank ACB, as amended (collectively called the Bank Debt) with a new five year unsecured $250 million Senior Credit Facility (the Credit Facility). The proceeds of the Credit Facility were used in part to fund the $190 million purchase of the Pop Secret business from General Mills and ongoing operational needs, as well as to repay the Senior Notes. An early termination fee of $2.6 million was incurred in connection with the prepayment of the Senior Notes.
The Credit Facility consists of a $125 million revolving credit line and a $125 million term loan. The term loan amortizes at a rate of $10 million, $15 million, $20 million, $25 million and $55 million, annually over the succeeding five years (due quarterly, which commenced October 31, 2008). In addition, there is a provision that requires us to pay down the term loan at a faster rate in the event cash flows exceed certain specified levels. The interest rate for the entire Credit Facility is tied to LIBOR plus a credit spread linked to our leverage ratio.
Working capital and stockholders equity were $42.6 million and $163.9 million at January 31, 2009 compared to $121.5 million and $146.2 million at July 31, 2008 and $112.8 million and $138.8 million at January 31, 2008. The decrease in working capital was due to the Pop Secret acquisition and, in part, to seasonal factors.
Read the The complete Report
