Michael Foods Group, Inc., which serves commercial foodservice, reported financial results for the fourth quarter of 2011.
Net earnings for the quarter ended Dec. 31, 2011 were $19.3 million, compared to $9.1 million in 2010, an increase of $10.2 million. Net sales for the quarter ended Dec. 31, 2011 were $470 million, compared to $428.9 million in 2010, an increase of 9.6 percent. Net earnings for the year ended Dec. 31, 2011 were $14.3 million, compared to a net loss of $31 million in 2010. Net sales for the year ended Dec. 31, 2011 were $1,766.6 million, compared to $1,602.3 million in 2010, an increase of $164.3 million, or 10.3 percent. The 2010 merger transaction had a significant impact on earnings in all periods presented, with transaction-related costs impacting 2010, and higher depreciation, amortization of intangibles and interest expense impacting 2011 and the second half of 2010.
Earnings before interest, taxes, depreciation, amortization (EBITDA) and other adjustments as defined in the company’s credit facility for the quarter ended Dec. 31, 2011 were $70.9 million, compared to $63.3 million in 2010, an increase of 11.9 percent. Adjusted EBITDA for the year ended Dec. 31, 2011 increased $2.9 million or 1.3 percent to $230 million compared to $227.1 million in 2010.
On June 29, 2010, M-Foods Holdings, Inc. together with its subsidiaries, merged with and into MFI Acquisition Corp., and the surviving entity was renamed Michael Foods Group, Inc. The merger was accounted for as a business combination and a new accounting basis was established. The accounting policies followed by us in the preparation of the company’s consolidated financial statements are consistent with those used prior to the merger transaction.