Dean Foods Company reported fourth quarter and full year 2015 results. Net cash provided by continuing operations for the twelve months ended December 31, 2015, totaled $408 million.
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Q4 net income per diluted share was $0.20 and adjusted net income per diluted share was $0.36.
Full year net loss per diluted share was $0.09 and adjusted net income per diluted share was $1.23.
The fourth quarter 2015 average Class I Mover, a measure of raw milk costs, was $16.34 per hundred-weight, a 0.2% sequential decrease from the third quarter of 2015 and a decrease of 31% from the fourth quarter of 2014.
On a full year basis, the average Class I Mover was $16.34 per hundred-weight, a 30% decrease over full year 2014. The first quarter 2016 average Class I Mover of $14.49 per hundred-weight represents an approximately 11% decline sequentially and an approximately 14% decline year-over-year.
Total volume across all products was 658 million gallons for the fourth quarter of 2015, a 3.6% decline compared to total volume of 683 million gallons in the fourth quarter of 2014.
Full year 2015 volumes totaled 2.6 billion gallons, a 3.1% decline versus full year 2014. For the first quarter 2016, as compared to the prior year period, the Company expects total volumes to decline in the low single digits.
Based on the USDA's recently published category data, fluid milk volumes remained essentially flat sequentially from a 1% decline in the third quarter to a 1.1% decline in the fourth quarter on an unadjusted basis. On this same basis, Dean Foods' share of U.S. fluid milk volumes decreased 50 basis points sequentially and 90 basis points year-over-year to 34.7%.
Net cash provided by continuing operations for the twelve months ended December 31, 2015, totaled $408 million.
Free cash flow provided by continuing operations, which is defined as net cash provided by continuing operations less capital expenditures, was $246 million for the twelve months ended December 31, 2015, a $242 million increase as compared to the prior year period.
Capital expenditures totaled $163 million for 2015, including approximately $13 million for the fourth quarter acquisition of an ice cream production facility in Utah.
Total debt at December 31, 2015, net of $61 million cash on hand, was approximately $782 million. The Company's funded net debt to EBITDA ratio, on an all cash netted basis, improved sequentially to 1.89 times at the end of the fourth quarter of 2015 with strong free cash flow and increased EBITDA. ■
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