Kettle Foods integration impacts Diamond earnings
May 28, 2010
SAN FRANCISCO — More than $10 million in acquisition-related expenses, primarily associated with the purchase of Kettle Foods, contributed to a loss of $4,273,000 in the third quarter ended April 30 at Diamond Foods, Inc. The loss compared with net income of $2,700,000, equal to 16c per share on the common stock, in the same period a year ago. Sales for the quarter rose 25% to $138,734,000 from $111,010,000 behind strong performance in retail brands, which grew 39%. Excluding Kettle Foods, retail sales rose 14% in the quarter. Non-GAAP income, meanwhile, rose to $6,153,000 from $2,700,000. For the nine months ended April 30 the company had income of $19,471,000, or $1.11 per share, down narrowly from $19,540,000, or $1.19 per share, during the same period of the previous year. Sales for the period were $503,544,000, up 10% from $457,124,000. The company raised its fiscal 2011 earnings-per-share guidance 10c, to $2.35 to $2.45 per share, and also increased its fiscal 2010 guidance on advertising spending to $32 million to $35 million from $29 million to $34 million previously.