TreeHouse Foods Inc. (THS, Financial) filed Quarterly Report for the period ended 2009-03-31.
TreeHouse Foods is a food manufacturer servicing primarily the retail grocery and foodservice channels. Its products include pickles and related products; non-dairy powdered coffee creamer; and other food products including aseptic sauces refrigerated salad dressings and liquid non-dairy creamer. TreeHouse Foods Inc. has a market cap of $844.3 million; its shares were traded at around $26.76 with a P/E ratio of 17.2 and P/S ratio of 0.6.
Operating Expenses β Total operating expenses were $45.1 million during the first quarter of 2009 compared to $58.3 million in 2008. Selling and distribution expenses decreased $2.9 million or 10.1% in the first quarter of 2009 compared to the first quarter of 2008 primarily due to a reduction in freight costs related to reduced volume and a reduction in freight rates. General and administrative expenses increased $0.5 million in the first quarter of 2009 compared to 2008. The increase was primarily related to higher research and development costs. Other operating expense was $0.2 million during the first quarter of 2009, and reflected net costs incurred related to the closed Portland, Oregon plant. This is down significantly from the $10.9 million in 2008, reflecting the initial Portland plant closing costs of approximately $10.4 million and $0.5 million related to the fire at our New Hampton, Iowa facility in 2008.
Interest Expense β Interest expense decreased to $4.5 million in the first quarter of 2009, compared to $7.7 million in 2008 due to lower average interest rates and lower debt.
Foreign Currency β Foreign currency losses increased to $2.1 million for the three months ended March 31, 2009 compared to $1.9 million for the three months ended March 31, 2008, primarily due to increased foreign currency transaction losses from U.S. sourced input costs used in our Canadian operations.
Operating Income β Operating income for the first quarter of 2009 was $26.7 million, an increase of $14.6 million, or 120.8%, from operating income of $12.1 million in the first quarter of 2008. Our operating margin was 7.5% in the first quarter of 2009 compared to 3.3% in 2008 due to the significantly higher impact of the Portland plant closure and New Hampton fire in 2008.
Read the The complete ReportTHS is in the portfolios of John Keeley of Keeley Fund Management.
TreeHouse Foods is a food manufacturer servicing primarily the retail grocery and foodservice channels. Its products include pickles and related products; non-dairy powdered coffee creamer; and other food products including aseptic sauces refrigerated salad dressings and liquid non-dairy creamer. TreeHouse Foods Inc. has a market cap of $844.3 million; its shares were traded at around $26.76 with a P/E ratio of 17.2 and P/S ratio of 0.6.
Highlight of Business Operations:
Net Sales β First quarter net sales decreased 1.4% to $355.4 million in 2009 compared to $360.6 million in the first quarter of 2008. Reduced volume and the impact of foreign currency were the primary reasons for the decline in net sales. The Company was able to offset most of the impact by increasing pricing by approximately 8.9%. Net sales by segment are shown in the following table:Operating Expenses β Total operating expenses were $45.1 million during the first quarter of 2009 compared to $58.3 million in 2008. Selling and distribution expenses decreased $2.9 million or 10.1% in the first quarter of 2009 compared to the first quarter of 2008 primarily due to a reduction in freight costs related to reduced volume and a reduction in freight rates. General and administrative expenses increased $0.5 million in the first quarter of 2009 compared to 2008. The increase was primarily related to higher research and development costs. Other operating expense was $0.2 million during the first quarter of 2009, and reflected net costs incurred related to the closed Portland, Oregon plant. This is down significantly from the $10.9 million in 2008, reflecting the initial Portland plant closing costs of approximately $10.4 million and $0.5 million related to the fire at our New Hampton, Iowa facility in 2008.
Interest Expense β Interest expense decreased to $4.5 million in the first quarter of 2009, compared to $7.7 million in 2008 due to lower average interest rates and lower debt.
Foreign Currency β Foreign currency losses increased to $2.1 million for the three months ended March 31, 2009 compared to $1.9 million for the three months ended March 31, 2008, primarily due to increased foreign currency transaction losses from U.S. sourced input costs used in our Canadian operations.
Operating Income β Operating income for the first quarter of 2009 was $26.7 million, an increase of $14.6 million, or 120.8%, from operating income of $12.1 million in the first quarter of 2008. Our operating margin was 7.5% in the first quarter of 2009 compared to 3.3% in 2008 due to the significantly higher impact of the Portland plant closure and New Hampton fire in 2008.
Read the The complete ReportTHS is in the portfolios of John Keeley of Keeley Fund Management.
