Michael Foods Group, Inc., which serves commercial foodservice, reported financial results for the third quarter of 2012. Net sales for the quarter ended Sept. 29, 2012 were $470.9 million, compared to $459.5 million in 2011, an increase of 2.5 percent. Net earnings for the quarter ended Sept. 29, 2012 were $8.7 million, compared to $0.6 million in 2011. The earnings increase resulted from higher volumes, improved margins in 2012 due to better alignment of pricing with our input costs, and reduced interest expense of approximately $2.9 million in 2012 compared to 2011 resulting from derivative accounting on interest rate swap contracts.
Net sales for the nine months ended Sept. 29, 2012 were $1,352.4 million, compared to $1,296.6 million in 2011, an increase of 4.3 percent. Net earnings for the nine months ended Sept. 29, 2012 were $16.4 million, compared to a net loss of $5 million in 2011. The earnings increase resulted from higher volumes, improved margins in 2012 due to better alignment of pricing with our input costs, costs of approximately $8 million in 2011 related to refinancing of our credit agreement, a reduction in cash interest expense in 2012 due to lower debt levels, and reduced interest expense of approximately $4.8 million in 2012 compared to 2011 resulting from derivative accounting on interest rate swap contracts.
Earnings before interest, taxes, depreciation, amortization (EBITDA) and other adjustments (Adjusted EBITDA) as defined in the company's credit facility for the quarter ended Sept. 29, 2012 were $61 million, compared to $55.3 million in 2011, an increase of 10.3 percent. Adjusted EBITDA for the nine months ended Sept. 29, 2012 were $175.5 million, compared to $159.1 million for the same period in 2011, an increase of 10.3 percent.
"Our third quarter and year to date results reflect the success of our key growth initiatives and the strength of our underlying business processes," said Jim Dwyer, president and CEO, in a prepared statement. "Our volume and revenue growth is being driven by new distribution and increased velocity with existing customers. We are also seeing the continued effectiveness of our pass-through pricing mechanisms and continuous improvement programs."
