Post Holdings said this morning (22 October) that it expects to "meet or slightly exceed" its full-year earnings forecasts.
The ready-to-eat cereal maker said that it expects to hit, or beat, its previously announced EBITDA guidance range of US$200-210m for the 12 months ended 30 September. The company added that it is in the process of finalising its fiscal 2012 accounts.
In a separate announcement, Post also intends to launch a private offering of senior notes to raise $200m. Funds will be used for "general corporate purposes", which could include debt reduction and M&A, Post said.
Post Holdings, Inc. Updates Certain Fiscal 2012 Guidance
ST. LOUIS, Oct. 22, 2012 /PRNewswire-FirstCall/ -- Post Holdings, Inc. (NYSE:POST), a leading manufacturer, marketer and distributor of branded ready to eat cereals, today confirmed that management expects to meet or slightly exceed its previously issued guidance for the fiscal year ended September 30, 2012 of $200 to $210 million of Adjusted EBITDA.
Use of Non-GAAP Measures
Management has determined that the Adjusted EBITDA metric presented herein is a key metric that will help investors understand the ultimate income and near-term cash flows generated by our business. Adjusted EBITDA is a non-GAAP measure which represents net earnings excluding income taxes, net interest expense, net other nonoperating income/expense, depreciation and amortization, noncash stock based compensation, nonrecurring cash compensation for retention/severance, accounts receivable servicing fees, costs to effect Post's separation from Ralcorp Holdings, Inc. and to establish stand-alone systems and processes, mark to market adjustments on economic hedges and intangible asset impairments, if any, and including an estimate of incremental costs Post would have incurred had it been a stand-alone public company during the periods presented. The Company believes that Adjusted EBITDA is useful to an investor in evaluating the Company's operating performance and liquidity because (i) it is widely used to measure a company's operating performance without regard to items such as depreciation and amortization, which can vary depending upon accounting methods and the book value of assets, (ii) it presents a meaningful measure of corporate performance exclusive of the Company's capital structure and the method by which the assets were acquired, and (iii) it is a widely accepted financial indicator of a company's ability to service its debt, as the Company is required to comply with certain covenants and limitations that are based on variations of EBITDA in the Company's financing documents. The calculation of Adjusted EBITDA is not specified by United States generally accepted accounting principles. Our calculation of Adjusted EBITDA may not be comparable to similarly-titled measures of other companies.
Preliminary Information
Our management is currently in the process of finalizing our consolidated financial results for the fiscal year ended September 30, 2012. The information discussed in this press release is based on preliminary financial data prepared by our management, and remains subject to change as we complete year-end audit procedures. Our independent registered public accounting firm has not audited, reviewed, compiled or performed any procedures with respect to such information.
Post Holdings, Inc. Announces $200 Million Additional Senior Notes Offering
ST. LOUIS, Oct. 22, 2012 /PRNewswire/ -- Post Holdings, Inc. (NYSE:POST) announced today that it intends to commence a private offering to eligible purchasers, subject to market and other conditions, of $200 million in aggregate principal amount of 7.375% senior notes due 2022 (the "Notes"). The Notes are being offered as additional notes under an existing indenture pursuant to which the Company previously issued $775 million in aggregate principal amount of 7.375% senior notes due 2022 (the "Existing Notes"). The Notes to be issued in this offering will be equal in right of payment, will vote together with and will constitute part of the same class and be fungible with the Existing Notes. The Notes will be unsecured unsubordinated obligations of the Company and will be guaranteed by the Company's subsidiary, Post Foods, LLC. The Company intends to use the net proceeds from the proposed offering for general corporate purposes which could include pay down of debt and/or acquisitions.
The Notes and the related subsidiary guarantee are being offered in the United States to qualified institutional buyers in an offering exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to persons outside the United States in compliance with Regulation S under the Securities Act.
The Notes and the related subsidiary guarantee have not been registered under the Securities Act, or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering, solicitation or sale would be unlawful. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.
