Boulder Brands Q3 Loss Widens; Guides FY15

(RTTNews) - Boulder Brands Inc. (BDBD) reported that its net loss attributable to common stockholders widened to $132.16 million or $2.17 per share from $1.58 million or $0.03 per share in the year ago quarter.

Non-GAAP net income in the third quarter of 2014 was $4.9 million, or $0.08 per share, compared with non-GAAP net income of $5.1 million, or $0.08 per share, in the third quarter of 2013. Analysts polled by Thomson Reuters expected the company to report earnings of $0.08 per share for the quarter. Analysts' estimates typically exclude special items.

The company's operating loss was $138.1 million in the third quarter of 2014 after giving effect to the Smart Balance impairment charges, compared to operating income of $8.4 million in the third quarter of 2013.

Excluding certain items, non-GAAP operating income increased to $13.3 million in the third quarter of 2014 compared to non-GAAP operating income of $11.5 million in the third quarter of 2013.

The charges impacting operating income in the third quarter of 2014 primarily consist of the Smart Balance impairment charges of $150.5 million, and to a much lesser extent, severance and relocation charges. The third quarter of 2013 was unfavorably impacted by restructuring and severance charges of $3.1 million. Third quarter 2014 operating income was also impacted by higher depreciation and amortization of approximately $0.9 million when compared to last year's third quarter.

Total Company net sales in the third quarter of 2014 increased 13.0% to $133.9 million, compared to net sales of $118.5 million in the third quarter of 2013. Wall Street analysts had a consensus revenue estimate of $133.73 million for the quarter. This performance reflected strong growth in its Natural segment. Organic net sales, which include EVOL in the third quarter of 2013 in its reported net sales, increased 8.4% in the third quarter of 2014 compared to the third quarter of 2013.

As recently announced, for the fourth quarter of 2014, the company expects net sales to be in the range of $132 million to $137 million. Non-GAAP earnings per share for the fourth quarter of 2014 is expected to be in the range of $0.04 to $0.06. Analysts expect the company to report earnings of $0.05 per share and revenues of $134.46 million for the fourth-quarter.

Looking ahead for the full year 2015, the company expects earnings per share to be in the range of $0.25 to $0.29, and net sales of $575 million - $585 million. Wall Street currently is looking for fiscal year 2015 earnings of $0.38 per share on annual revenues of $577.97 million.