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Freshpet shares tick up amid 23% spike in fourth quarter revenues

Published 03/09/2016, 07:00 PM
Updated 03/09/2016, 07:07 PM
Freshpet swung to a gain in the fourth quarter amid expanded distribution, fresher pet food
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Investing.com -- Shares in Freshpet Inc (NASDAQ:FRPT) rose by more than 2% in after-hours trading after the New Jersey-based pet food manufacturer swung to a gain and reported stronger than expected revenues in its fourth quarter of Fiscal Year 2015.

For the quarter, Freshpet reported net profits of $2.8 million or 0.08 per share, considerably above losses of $16.4 million or Minus-4.35 per share over the same period a year earlier. The producer of refrigerated food and treats for dogs and cats also saw its revenues for the period surge 23% to $30.2 million, slightly above analysts' expectations for sales of $30 million. In the fourth quarter of 2014, the company was saddled with $15.5 million in debt fees, along with an additional $700,000 in loan origination fees.

Overall, the company increased net sales on the year by 33.9% to $116.2 million while increasing its Adjusted EBITDA doubled to $11.1 million.

"Our team made significant progress in our first year as a public company. We had great achievements along with constructive learnings in 2015, as our team executed on our strategic initiatives to expand distribution, grow velocity, and introduce a broader assortment of innovative fresh foods for dogs and cats,” said Richard Thompson, Freshpet’s Chief Executive Officer. "At the same time, we made operational investments across our manufacturing and supply chain to better position us to achieve greater leverage across our business model and enhance long-term shareholder value."

In other news, Freshpet announced that Thompson will retire from his position effective on July 1, while remaining as a consultant through November, 2017. Freshpet's board announced that it has retained a leading executive recruiting firm to assist the company in its search. Thompson has been a member of Freshpet's Board of Directors since 2010 and has served in his current role since January, 2011.

"Under Richard’s leadership, the Company successfully transitioned from a private to a public company and experienced considerable growth to the over 15,000 Freshpet fridges across the U.S. today," Freshpet chairman Charlie Norris said in a statement.

"The Company is well positioned, both culturally and financially, for future success, and has a significant opportunity, through its unique and differentiated product offering, to continue to gain share in existing retailers and expand into new retail partners."

Shares in Freshpet gained 0.16 or 2.27% to 7.20 in af

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