Michael Foods Group, Inc. today reported financial results for the fourth quarter of 2013.
Net sales for the quarter ended December 28, 2013 were $512.7 million, compared to $503.6 million in 2012, an increase of 1.8%. Net earnings for the quarter ended December 28, 2013 were $15.9 million, compared to $13.7 million in 2012. Net sales for the year ended December 28, 2013 were $1,948.3 million, compared to $1,856.1 million in 2012, an increase of 5%. Net earnings for the year ended December 28, 2013 were $50.4 million, compared to $30.1 million in 2012.
Earnings before interest, taxes, depreciation, amortization ("EBITDA") and other adjustments ("adjusted EBITDA," as defined in the Company's credit facility) for the quarter ended December 28, 2013 were $69.7 million, compared to $67.3 million in 2012. Adjusted EBITDA for the year ended December 28, 2013 were $257.8 million, compared to $242.8 million in 2012, an increase of 6.2%.
"Our team at Michael Foods performed well in a volatile and competitive 2013 environment, delivering excellent Q4 and full year results. We saw solid growth across the egg and potato businesses behind customer wins. The cheese and dairy business began to respond in the fourth quarter to our focus on core product lines and markets. We are delighted to deliver another record year of EBITDA." said Jim Dwyer, Chairman and CEO.
Michael Foods Group, Inc. uses adjusted EBITDA as a measurement of financial results, as an indication of the relative strength of its operating performance, and to determine incentive compensation levels. Management believes that EBITDA and adjusted EBITDA provide potential investors with useful information with which to analyze and compare with other companies in our industry our operating performance and our ability to service debt.
Certain items contained in this release may be "forward-looking statements." Forward-looking statements include statements concerning our plans, objectives, goals, strategies, future events, future sales or performance, capital expenditures, financing needs, ability to fund operations, intentions relating to acquisitions, our competitive strengths and weaknesses, our business strategy and the trends we anticipate in the industries and economies in which we operate and other information that is not historical information. When used herein, the words "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes" and variations of such words or similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance.
All forward-looking statements are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith, and we believe there is a reasonable basis for them, but there can be no assurance that our expectations, beliefs and projections will be realized. There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in this release, including the factors described under "Risk Factors" in our 2012 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 22, 2013. Important factors that could cause our actual results to differ materially from the forward-looking statements we make in this release include changes in domestic and international economic conditions.
Beginning January 1, 2013, we changed our retail selling costs allocation methodology between segments. The allocation impacts the net earnings and adjusted EBITDA reported by each segment. This change increased the net earnings and adjusted EBITDA for the Cheese and Other Dairy-Case Products segment and decreased the net earnings and adjusted EBITDA for the Egg Products and Refrigerated Potato Products segments. The amounts for the December 29, 2012 periods have been restated to reflect the allocation change.
Adjusted EBITDA is a financial indicator used to analyze and compare companies on the basis of operating performance. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with generally accepted accounting principles and is not indicative of operating profit or cash flow from operations as determined under generally accepted accounting principles.
