Company Reports First Quarter Adjusted Diluted Earnings Per Share of $0.48 Full Year Adjusted Diluted Earnings Guidance Raised to a Range of $2.28 to $2.33 Per Share Company Receives Favorable IRS Ruling Regarding Its Spin-Off of Specialty Foods
DALLAS, May 4, 2005 /PRNewswire-FirstCall via COMTEX/ -- Dean Foods Company (NYSE: DF) today announced that the company earned $0.43 per diluted share for the quarter ended March 31, 2005, flat compared to $0.43 per diluted share in the first quarter of 2004. Net income for the first quarter totaled $66.2 million, compared with $69.2 million in the prior year first quarter.
On an adjusted basis (as defined below), diluted earnings per share increased 7% to $0.48, compared to $0.45 in last year's first quarter. Adjusted net income for the first quarter was $74.2 million compared with adjusted net income of $73.9 million in the first quarter of 2004.
"I am pleased with our results for the first quarter," said Gregg Engles, chairman and chief executive officer. "Our Dairy Group performed very well, exceeding our expectations, and we continued to see strong growth in demand for our national brands. Also, our strategic initiatives to consolidate our branded businesses and spin-off our Specialty Foods Group are progressing as expected. We believe this quarter marks the beginning of what should be a year of significant progress."
Net sales for the first quarter totaled $2.7 billion, an increase of 12% over the first quarter of 2004, primarily due to increased selling prices in the Dairy Group resulting from the pass through of higher raw milk costs and continued strong volume growth in the Dairy Group's fluid milk operations and at WhiteWave Foods.
Consolidated operating income in the first quarter totaled $150.1 million versus $152.4 million in the first quarter of 2004. Adjusted first quarter operating income totaled $163.1 million, a 2% increase compared to $160.0 million in the first quarter of 2004. The company's adjusted 2005 operating income margin was 5.95%, down 57 basis points versus the first quarter of the prior year. The decline in the consolidated margin was primarily due to higher raw milk costs and increased costs for resin, fuel, and other key inputs.
The company repaid a net amount of $151.7 million of debt during the quarter. Long-term debt as of March 31, 2005 was approximately $3.1 billion, including $145.7 million due within one year that is reported as part of current liabilities. At the end of the quarter, approximately $1 billion of the company's senior credit facility was available for future borrowings.