MGP Ingredients Inc. (NASDAQ:MGPI) Q1 2018 Earnings Conference Call - Preliminary Transcript
May 02, 2018 • 10:00 am ET
Good day and welcome to The MGP Ingredients Inc., First quarter 2018 Results Conference Call and Webcast. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded.
I would now like to turn the conference over to Mike Houston, Investor Relations. Please go ahead.
Thank you, Debbie. Good morning everyone and thank you for joining The MGP Ingredients conference call and webcast to discuss the company's finance results for the first quarter 2018. I'm Mike Houston with Lambert Edwards, MGP's investor relations firm. And joining me are members of their management team including Gus Griffin, President and Chief Executive Officer and Tom Pigott, Vice President of Finance and Chief Financial Officer.
We will begin the call with management's prepared remarks and then open the call up to questions. However, before we begin today's call it is my responsibility to inform you that this call may involve certain forward-looking statements such as projections of revenue, earnings and capital structure as well as statements on the plans and objectives of the company's business. The company's actual results could differ materially from any forward-looking statements made today due to a number of factors including with the risk factors described in the company's most recent annual and quarterly report filed with the Securities and Exchange Commission.
The company assumes no obligation to update any forward-looking statements made during the call. If anyone does not already have a copy of the press release issued by MGP today, you can access it at the company's Web site www.mgp.ingredients.com.
At this time, I'd like to turn the call over MGP's President and Chief Executive Officer Gus Griffin. Gus?
Thank you, Mike, and thank you all for joining us. On this call, we will provide an overview of our results for the quarter updates on key financial performance metrics and a discussion of progress against our strategy. Then we will take your questions.
Now turning to results, for the first quarter both of our business segments showed growth over the prior year driving consolidated net sales for the quarter up about 1% and net income increased almost 3%. We continued to be very pleased with our progress against all parts of our strategic plan and see no change in the macro consumer trends that are powering our growth. However, our results this period do reflect quarterly volatility resulting from changes in customer order timing for premium beverage alcohol in the distillery segment.
Since the initial implementation of our strategic plan in early 2015, this is the first time we've experienced a quarterly decline either versus prior year quarter or sequential quarter in sales of premium beverage alcohol. Despite that this quarter was still a very strong period for sales of premium beverage alcohol, our third highest in recent history.
Based on that, we are reconfirming our guidance for the full year, looking at each segment individually and our distillery product segment, net sales finished the quarter up 0.6%, while gross profit declined 4.5%,