TreeHouse Foods Inc. (THS, Financial) filed Quarterly Report for the period ended 2009-09-30.
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 $1.2 billion; its shares were traded at around $37.8 with a P/E ratio of 20.3 and P/S ratio of 0.8.
Operating Expenses β Total operating expenses were $35.4 million during the third quarter of 2009 compared to $49.1 million in 2008. Selling and distribution expenses decreased $3.4 million or 11.7% in the third quarter of 2009 compared to the third 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 $4.8 million in the third quarter of 2009 compared to 2008. The increase was primarily related to incentive based compensation expense and stock based compensation related to the Company s performance. Other operating expense decreased $15.1 million during the third quarter of 2009 compared to 2008 due to the gain related to our insurance settlement related to the fire at our New Hampton, Iowa plant.
Operating Income β Operating income for the third quarter of 2009 was $45.1 million, an increase of $21.0 million, or 87.1%, from operating income of $24.1 million in the third quarter of 2008. Our operating margin was 11.9% in the third quarter of 2009 compared to 6.4% in 2008 due to favorable pricing, cost reductions and the gain related to our insurance settlement related to the fire at our New Hampton, Iowa plant.
Interest Expense β Interest expense decreased to $4.8 million in the third quarter of 2009, compared to $6.5 million in 2008 due to lower average interest rates and lower debt levels.
Foreign Currency β The Company s foreign currency gain was $3.0 million for the three months ended September 30, 2009 compared to a loss of $1.9 million in 2008, due to fluctuations in currency exchange rates between the U.S. and Canadian dollar.
Read the The complete ReportTHS is in the portfolios of John Keeley of Keeley Fund Management, Ron Baron of Baron Funds.
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 $1.2 billion; its shares were traded at around $37.8 with a P/E ratio of 20.3 and P/S ratio of 0.8.
Highlight of Business Operations:
Net Sales β Third quarter net sales increased 1.1% to $378.9 million in 2009 compared to $374.6 million in the third quarter of 2008. The increase is primarily due to price increases taken in the second half of 2008, which more than offset the volume declines in the quarter and reduced revenues from the impact of foreign currency fluctuations. Net sales by segment are shown in the following table:Operating Expenses β Total operating expenses were $35.4 million during the third quarter of 2009 compared to $49.1 million in 2008. Selling and distribution expenses decreased $3.4 million or 11.7% in the third quarter of 2009 compared to the third 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 $4.8 million in the third quarter of 2009 compared to 2008. The increase was primarily related to incentive based compensation expense and stock based compensation related to the Company s performance. Other operating expense decreased $15.1 million during the third quarter of 2009 compared to 2008 due to the gain related to our insurance settlement related to the fire at our New Hampton, Iowa plant.
Operating Income β Operating income for the third quarter of 2009 was $45.1 million, an increase of $21.0 million, or 87.1%, from operating income of $24.1 million in the third quarter of 2008. Our operating margin was 11.9% in the third quarter of 2009 compared to 6.4% in 2008 due to favorable pricing, cost reductions and the gain related to our insurance settlement related to the fire at our New Hampton, Iowa plant.
Interest Expense β Interest expense decreased to $4.8 million in the third quarter of 2009, compared to $6.5 million in 2008 due to lower average interest rates and lower debt levels.
Foreign Currency β The Company s foreign currency gain was $3.0 million for the three months ended September 30, 2009 compared to a loss of $1.9 million in 2008, due to fluctuations in currency exchange rates between the U.S. and Canadian dollar.
Read the The complete ReportTHS is in the portfolios of John Keeley of Keeley Fund Management, Ron Baron of Baron Funds.
