MGP Ingredients (MGPI) Reports Prelim. FY19 Results

MGP Ingredients, Inc. (Nasdaq: MGPI), a leading supplier of premium distilled spirits and specialty wheat proteins and starches, reported today that based on preliminary financial information, it expects to deliver the following financial results for the full year ended December 31, 2019:

• Sales of approximately $362 million.
• Gross profit of approximately $76 million.
• Gross margin of approximately 21%.
• Operating income expected to be in the range of $46-$48 million.
• Effective tax rate of approximately 16%, and shares outstanding are expected to be approximately 17 million at year end.
• Earnings per share expected to be in the range of $2.20-$2.30.

(Consensus sees FY EPS of $2.57 on revenue of $391.2 million)

“The shortfall versus our previously communicated guidance is the result of us ultimately being unsuccessful in transacting a large portion of the aged whiskey sales we had forecast for the fourth quarter,” said Gus Griffin, president and CEO of MGP Ingredients.

“While this shortfall is disappointing, particularly given the line of sight we believed we had to these aged sales, we do not believe it reflects weakness in the overall American Whiskey category, our overall position in that market or the potential long-term value of our aged whiskey inventory. We are currently conducting additional analysis to better understand the aged whiskey market, and, going forward, we will continue to refine our strategies and tactics to improve the sales predictability and management of this important piece of our business.

“While it will be a number of weeks before we complete and report our final results, we wanted to provide this information now. Our final results may differ somewhat from these preliminary estimates,” concluded Griffin.

The Company expects to release its financial results before the market opens on Wednesday, February 26, 2020.

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