Del Monte sees $3.9 billion debt, no outstanding borrowings under ABL

By Aleesia Forni

Columbus, Ohio, Dec. 9 - Del Monte Foods Co. reported total debt of $3.9 billion, with cash and cash equivalents of $117.5 million as of Oct. 30.

The company had no outstanding borrowings under its $750 ABL facility as of that date, chief financial Larry Bodner said during the company's second-quarter fiscal 2012 earnings conference call on Friday.

For the six months ended Oct. 30, Del Monte reported free cash flow of negative $90.5 million, compared to negative $122.1 million for the same period of last year.

This increase was due in part to favorable working capital and lower cash taxes, while lower adjusted EBITDA and higher cash interest payments partially offset the year-over-year improvement.

"We feel really good about how we've manager our cash flow," Bodner said.

Del Monte Foods reported net sales for the quarter of $994.3 million, compared to $940.9 million in the same quarter of fiscal 2011, while adjusted EBITDA declined to $158.9 million, compared to $172.1 million in the prior year.

"We still plan to deliver productivity in the fiscal year to help mitigate inflation," Bodner said. "In addition, we continue to manage our SG&A in a disciplined manner."

Del Monte is a manufacturer and marketer of processed foods based in San Francisco.

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