Dean Foods Company (NYSE: DF) announced the first quarter 2016 results on Tuesday.
The results reflected the fifth consecutive quarter of year-over-year improvement. First-quarter earnings reached $39.2 million, compared with a loss of $73.7 million in the same period of 2015. Net income per diluted share was $0.43 and adjusted net income per diluted share was $0.45, beating estimates. Quarterly dividend also increased 29% to $0.09 per share.
Headquartered in Dallas, Texas, Dean Foods Company is a leading food and beverage company and the largest processor and direct-to-store distributor of fresh fluid milk in the United States.
Average Class I Mover decreased around 11% compared with fourth quarter of 2015 and 14% decrease compared with the same period of 2015, which means the raw milk costs decreased. Dean Foods Company also estimated a 7% decrease in the second quarter and about 15% decline year-over-year.
Total volume declined 3.2% in the first quarter, reaching 641 million gallons. The fluid milk volume fell 0.6% in the first quarter, better than that in 2015, when the volume dropped 1.1%.
Total debt was around $762 million, and the net debt to bank EBITDA ratio improved to 1.72 times in the first quarter.
"Our Q1 performance marks a strong start to 2016. Solid execution across all functions led to continued improvement in our financial and operational performance from Q4 to Q1. We continue to execute our agenda at high levels across the entire team." Chief Executive Officer Gregg Tanner said.
Tanner expected adjusted diluted earnings of between $0.32 and $0.40 per share, and he also expected volume declines in the low single digits, decreasing raw milk costs, and considering normal seasonality in the report.
Dean Foods also bought Friendly’s Ice Cream’s retail and manufacturing business for $155 million in cash on late Monday. Dean Foods will continue to produce Friendly’s Ice Cream at the old plant in Wilbraham, according to a news release.