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Del Monte ends fiscal 2011 with $205 million cash, $4 billion of debt
By Jennifer Lanning Drey
Savannah, Ga., June 17 - Del Monte Food Co. ended fiscal 2011 with $205 million of cash on hand and total debt of $4 billion at May 1, Larry Bodner, the company's chief financial officer, reported during its quarterly and year-end earnings conference call.
Last-12-months net debt to adjusted EBITDA was 5.8 times at quarter end. There were no borrowings outstanding under Del Monte's ABL facility.
During fiscal 2011, the company delivered record-free cash flow of $334 million, driven by lower inventories, lower cash payments and cash taxes, reduced capital expenditures and increased adjusted EBITDA, Bodner said.
Free cash flow was $251 million in fiscal 2010.
In the fourth quarter, Del Monte's net sales declined slightly to $951.2 million, compared to net sales of $954 million in the fourth quarter of 2010. The company said the decline was driven by increased promotional spending and consumer products unit volume declines, partially offset by new product volume growth in pets.
Del Monte's full-year net sales of $3.666 billion also showed a decline from net sales of $3.739 billion for the full-year 2010. The company said that the decrease was primarily driven by unit volume declines in consumer products and increased promotional spending in pet and consumer products.
Adjusted EBITDA grew to $150.4 million in the fourth quarter versus adjusted EBITDA of $141.6 million in the prior-year period. The increase reflected lower marketing investment, reduced general and administrative expense and new product volume growth in pets, the company said.
For the full year, adjusted EBITDA increased to $661 million, up from adjusted EBITDA of $626.9 million in the prior year. The increase again reflected lower marketing investment and general and administrative expenses.
Del Monte Foods is a San Francisco-based branded pet and consumer products company.
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