Hormel Foods Corporation (NYSE:HRL) Q4 2016 Earnings Conference Call Transcript

Nov 22, 2016 • 09:30 am ET

Previous

Hormel Foods Corporation (NYSE:HRL) Q4 2016 Earnings Conference Call Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
operator

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Hormel Foods' Fourth-Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. As a reminder, this conference is being recorded Tuesday, November 22, 2016. I would now like to turn the conference over to Nathan Annis, Director of Investor Relations. Please go ahead.

Executive
Nathan Annis

Good morning. Welcome to the Hormel Foods conference call for the fourth quarter of fiscal 2016. We released our results this morning before the market opened, around 6:30 a.m. Eastern. If you did not receive a copy of the release, you can find it on our website at www.hormelfoods.com under the Investor section.

On our call today is Jim Snee, President and Chief Executive Officer; and Jim Sheehan, Senior Vice President and Chief Financial Officer. Jim Snee will review each segment's performance for the fourth quarter, and also provide outlook and guidance for fiscal 2017. Jim Sheehan will provide detailed financial results for the quarter, and further assumptions relating to our FY17 outlook. The line will be opened for questions following Jim Sheehan's remarks.

As a courtesy to the other analysts, please limit yourself to one question with one follow-up. If you have additional questions, you are welcome to get back in the queue. An audio replay of this call will be available beginning at 11:30 a.m. Central Standard Time today, November 22, 2016. The dial-in number is 877-627-6590, and the access code is 5999118. It will also be posted to our website and archived for one year.

(Forward-Looking Cautionary Statements)

Additionally, please note the Company used non-GAAP results for fiscal 2015 to provide investors with a better understanding of the Company's operating performance by excluding the impact of certain non-recurring items affecting comparability. Discussion on non-GAAP information is detailed in our press release located on our corporate website. During our call today, comparisons to the fourth quarter and full year of fiscal 2015 will be made to these non-GAAP results.

I will now turn the call over to Jim Snee.

Executive
Jim Snee

Well, thank you, Nathan. Good morning, everyone. Earlier today, we announced record fourth quarter results of $0.45 per share, up 22% from last year. Sales for the quarter were up 9%, on a 9% increase in volume. For the full year, earnings per share were $1.64, up 24% versus fiscal 2015. Sales were $9.5 billion, up 3% and volume was up 2%.

For the quarter, three of our five segments reported volume sales and earnings growth demonstrating the strength of our balance business model. Refrigerated foods and Jennie-O Turkey Store posted excellent earnings, both up double-digits. Grocery products recorded solid gains, while specialty and international earnings were down for the quarter. I am particularly pleased with our top line results, with four of our segments generating sales growth.

Refrigerated foods fourth quarter operating profit increased 51%, with sales up 8%, and volume up 9%. Refrigerated foods benefited from excellent growth in both retail and foodservice channels, and from lower