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AdvancePierre Announces Third Quarter Results After Acquiring Allied Specialty Foods

AdvancePierre Announces Third Quarter Results After Acquiring Allied Specialty Foods

Thursday, November 10th, 2016

AdvancePierre Foods, a leading national producer and distributor of sandwiches, sandwich components, and other premade items announced financial results for the third quarter of 2016. This is the company's first financial report since its strategic acquisition of Allied Specialty Foods, which seemingly set the company on track for another positive quarter.
“We are pleased to report another quarter of strong financial performance, driven by continuing execution of APF Way productivity initiatives, including our dynamic pricing model, and improvement in the mix of our business” said AdvancePierre President and Chief Executive Officer John Simons.
Third quarter highlights included:

  • GAAP net income of $22.4 million, or $0.29 per diluted share
  • Adjusted net income1 of $34.8 million, or $0.46 per diluted share
  • Net sales of $393.7 million and volume growth in AdvancePierre’s core segments of 0.7%
  • Third quarter Adjusted EBITDA1 of $79.0 million
  • Reduction of net leverage to 3.4 times trailing twelve month Adjusted EBITDA

While overall sales numbers were somewhat encouraging, the company’s net sales across various industry segments were mixed:

  • Net sales in the Foodservice segment decreased 4.7% to $222.6 million in the third quarter of 2016, down from $233.5 million this same time last year
  • Net sales for the Retail segment increased 8% to $94.6 million, compared to $87.6 million last year
  • Net sales for the Convenience segment increased 11.7% to $56.5 million, up from $50.6 million last year
  • Net sales for the Industrial segment decreased 43.5% to 20.0 million, down from 35.4 million last year

Unallocated Corporate expenses detracted from the company’s bottom line, increasing to $26.5 million in the third quarter of this fiscal year from $6.1 million the same time last year.

“As demonstrated in these results as well as our recently announced strategic acquisition of Allied Specialty Foods,” Simons added, “we are delivering on our commitments to invest in our core business to continue improving our portfolio mix, and adding accretive acquisitions to accelerate our future growth.”

For more financial news on the deli industry as it happens, keep clued in to Deli Market News. 

AdvancePierre Foods