MGP Ingredients(US:MGPI)2020-04-30 11:40Financial Performance - Sales for the quarter ended March 31, 2020, were $99,082, an increase of 11.2% compared to $89,096 in the same quarter of 2019[78] - Gross profit for the quarter ended March 31, 2020, was $23,211, reflecting a 39.3% increase from $16,660 in the prior year[80] - Operating income increased to $13,708 for the quarter ended March 31, 2020, up 61.0% from $8,513 in the same quarter of 2019[82] - Net income for the quarter ended March 31, 2020, was $9,842, a slight increase of 1.3% compared to $9,720 in the prior year[78] - Earnings per share (EPS) remained unchanged at $0.57 for both quarters ended March 31, 2020, and 2019[86] Tax and Expenses - The effective tax rate for the quarter ended March 31, 2020, was 24.7%, compared to a tax benefit of (17.7)% in the same quarter of 2019[85] - SG&A expenses for the quarter ended March 31, 2020, were $9,503, an increase of 16.6% compared to $8,147 in the same quarter of 2019[81] Segment Performance - Sales in the Distillery Products segment increased by $5,425, or 7.3%, to $80,002 for the quarter ended March 31, 2020[92] - Sales in the Ingredient Solutions segment rose by $4,561, or 31.4%, to $19,080 for the quarter ended March 31, 2020[95] - Total Ingredient Solutions sales for the quarter ended March 31, 2020, increased by $4,561, or 31.4% compared to the prior year quarter[98] - Gross margin for the Distillery Products segment improved to 22.8% from 20.4% in the prior year quarter[93] - Gross profit increased by $3,541, or 249.2%, with gross margin rising to 26.0% from 9.8% in the prior year quarter[99] Cash Flow and Investments - Cash provided by operating activities for the quarter ended March 31, 2020, was $542, compared to cash used of $3,789 in the same quarter of 2019, resulting in a quarter-over-quarter increase of $4,331[102] - Cash used in investing activities for the quarter ended March 31, 2020, was $8,189, primarily due to property, plant, and equipment additions of $5,645 and business acquisition costs of $2,750[105] - Cash provided by financing activities for the quarter ended March 31, 2020, was $46,997, mainly from net proceeds of debt totaling $54,600[108] Debt and Capital Expenditures - Total debt as of March 31, 2020, was $94,555, significantly up from $41,060 at December 31, 2019[114] - Capital expenditures for the quarter ended March 31, 2020, were $5,645, with expectations of approximately $19,600 in capital expenditures for the full year 2020[106] - The company incurred approximately $49,700 of the total investment for a warehouse expansion project, with an expected total investment of $49,800[107] Financial Position - The cash balance as of March 31, 2020, was $42,659, with current assets exceeding current liabilities by $200,951[117] - A 100 basis point increase in market interest rates would increase annual interest expense by $142 based on variable-rate borrowings[121]