MGP Ingredients Inc. (NASDAQ:MGPI) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 10:00 am ET

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MGP Ingredients Inc. (NASDAQ:MGPI) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, and welcome to the Second Quarter 2020 Results Conference Call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Mike Houston with Lambert & Company. Please go ahead.

Executive
Mike Houston

Thank you, Ian. Good morning, everyone, and thank you for joining the MGP Ingredients' conference call and webcast to discuss the company's financial results for the second quarter 2020. I'm Mike Houston with Lambert & Company, MGP's Investor Relations firm. And joining me today are members of their management team, including Dave Colo, President and Chief Executive Officer; and Brandon Gall, Vice President of Finance and Chief Financial Officer. We'll 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 the risk factors described in the company's most recent annual and quarterly reports 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 today, you can access it at the company's website www.mgpingredients.com.

At this time, I would like to turn the call over to MGP's President and Chief Executive Officer, Dave Colo. Dave?

Executive
Dave Colo

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 the discussion of progress against our strategy. Then we will take your questions.

Turning to the results for the second quarter, we remain encouraged by the demand for our products, the improved financial results as well as a strong balance sheet with ample liquidity to weather the challenges and uncertainty related to the COVID-19 pandemic. We saw improved results across most parts of our business this quarter, including the solid sales growth of aged whiskey, stronger sales for our white beverage and industrial alcohol products as well as solid gains in both revenue and gross profit for Ingredient Solutions segment. Both of our business segments showed top line growth over the prior year and, as a result, our consolidated sales for the quarter increased more than 2%.

On a separate note this quarter, MGP was the target of a cyber-attack that temporarily disrupted production at our Atchison facilities. We have since resumed normal operations. And while there was no evidence that any sensitive or confidential data breach occurred, we take this issue and the integrity of our data and our systems very seriously and have since implemented a variety of measures to further enhance our cyber-security protection and minimize the impact of any future