Company Reports Third Quarter Adjusted Diluted Earnings From Continuing Operations of $0.50 Per Share
Board of Directors Approves Additional $300 Million Share Repurchase Authorization
DALLAS, Nov. 2 -- Dean Foods Company (NYSE: DF) today announced that the Company earned $0.43 per diluted share from continuing operations for the quarter ended September 30, 2005, as compared to $0.24 per diluted share from continuing operations in the third quarter of 2004. Net income from continuing operations for the third quarter of 2005 totaled $66.4 million, compared with $37.8 million in the prior year third quarter.
On an adjusted basis (as defined below), diluted earnings from continuing operations increased 22% to $0.50 per share, compared to $0.41 in last year's third quarter. Adjusted net income from continuing operations for the third quarter was $77.7 million compared to $65.9 million in the third quarter of 2004.
"Our businesses performed well despite a very challenging environment which included two hurricanes and rapidly rising fuel and resin costs," said Gregg Engles, chairman and chief executive officer. "Consistent with recent trends, our Dairy Group again posted strong volume increases and our WhiteWave division posted strong growth in both net sales and profitability."
Net sales for the third quarter totaled $2.6 billion, an increase of 2.4% over the third quarter of 2004. The increase in net sales was primarily due to higher fluid dairy volumes and increased sales at WhiteWave Foods, which were offset by the pass-through of lower raw milk and butterfat costs in the Dairy Group.
Consolidated operating income from continuing operations in the third quarter totaled $145.7 million, versus $139.3 million in the third quarter of 2004. Adjusted third quarter operating income from continuing operations totaled $163.7 million, an 8.5% increase over the $150.9 million reported in the third quarter of 2004. The Company's adjusted third quarter 2005 operating margin was 6.2%, up 35 basis points over the third quarter of the prior year. The increase in adjusted operating income was primarily due to the positive impact of lower raw milk and butterfat costs and increased profitability at WhiteWave Foods, which was partially offset by higher packaging and distribution costs. Included in adjusted operating income for the third quarter of 2005 is a $3.9 million charge ($0.02 net of tax), which represents the second half of the total expense related to the accelerated vesting of stock units issued to key employees in January 2003.
Long-term debt as of September 30, 2005 was approximately $3.1 billion, including $67 million due within one year that is reported as part of current liabilities. At the end of the quarter, approximately $940 million of the Company's senior credit facility was available for future borrowings.