Shares of AdvancePierre Foods Holdings Inc (NYSE:APFH) fell -1.80% to reach at $24.50 during the course of session. The company has experienced volume of 1.16M shares while on average the company has a capacity of trading 891,703 shares.
AdvancePierre Foods Holdings Inc (NYSE:APFH) on August 10, 2016 reported financial results for the second quarter and year-to-date period ended July 2, 2016.
Financial Results for the Second Quarter
Net sales for the second quarter of 2016 were $370.7 million compared to $391.9 million for the second quarter of 2015. The decline was primarily attributable to the Company’s elimination of lower margin business in its Industrial segment, which reduced net sales by $13.2 million, and to strategic price and trade spending investments to reflect lower raw material costs, which reduced net sales by $16.3 million. Excluding the impact of Industrial segment volume, volume and mix in the Company’s three core segments, including sales volume growth of 3.2%, increased net sales by $8.3 million.
Gross profit for the second quarter of 2016 increased by $17.1 million to $100.9 million, or 27.2% of net sales compared to $83.8 million, or 21.4% of net sales, for the second quarter of 2015, reflecting an increase of 580 basis points of margin. Gross profit increased primarily due to productivity improvements, positive price realization net of raw material cost movements, and contributions from volume, partially offset by other increases in costs of goods sold.
Selling, general and administrative expenses for the second quarter of 2016 were $55.0 million, or 14.8% of net sales, compared to $50.2 million, or 12.8% of net sales for the second quarter of 2015. The increase was primarily due to increased marketing and R&D investments and employee compensation expenses (including non-cash stock compensation), partially offset by lower sponsor management fees and expenses.
Interest expense for the second quarter of 2016 was $38.0 million, an increase of $11.8 million compared to $26.2 million for the second quarter of 2015. This increase was a result of the $15.3 million of charges related to the refinancing of the Company’s credit facilities in June 2016 including write-off of deferred loan fees and original issue discounts, payments of loan origination fees, and prepayment penalties, partially offset by the benefit of lower rates on the refinanced debt and lower average borrowings.
Income tax benefit was $57.8 million for the second quarter of 2016, as compared to an income tax provision of $0.6 million for the second quarter of 2015. Based on an assessment of the realizability of the Company’s deferred tax assets, management determined that a full valuation allowance should no longer be recorded against the deferred tax assets. As a result, the Company reversed $56.5 million of the existing valuation allowance during the second quarter of 2016 representing a decrease to income tax expense during the period.
AdvancePierre Foods Holdings Inc (NYSE:APFH) holds the market capitalization of $1.93B along with 78.59M outstanding shares. The stock traded in the price range of $24.11 – $25.12 for the last trading session.
As of current trade, AdvancePierre Foods Holdings Inc (NYSE:APFH) has shown weekly upbeat performance of 2.00%. Year-to-date (YTD) performance of the stock illustrate upbeat trend of 2.08%. Shares of AdvancePierre Foods Holdings Inc (NYSE:APFH) currently have an ABR of 1.25, derived from a total of 2 opinions. The company’s price sits 2.11% above from its 50-day moving average of $24.02 and 2.11% above from the stock’s 200-day moving average of $24.02. The company has Average True Range (ATR 14) of 0.67. Its weekly volatility is 3.32%.
AdvancePierre Foods Holdings Inc (NYSE:APFH)’s price to sales ratio for trailing twelve months is 1.23, whereas price to cash per share for the most recent quarter is 72.51. AdvancePierre Foods Holdings Inc (NYSE:APFH)’s quick ratio for most recent quarter is 0.80 along with current ratio for most recent quarter of 1.60. AdvancePierre Foods Holdings Inc (NYSE:APFH) has a Return on Investment of 17.00%.