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B&G Foods Declares a Dividend of $0.42 Per Share

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Price movement

B&G Foods (BGS) fell by 1.0% to close at $51.07 per share during the first week of August 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -1.0%, 7.0%, and 49.0%, respectively, as of August 5.

BGS is trading 6.1% above its 20-day moving average, 10.2% above its 50-day moving average, and 33.8% above its 200-day moving average.

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Related ETF and peers

The Guggenheim Multi-Asset Income ETF (CVY) invests 0.35% of its holdings in B&G Foods. The ETF tracks the Zacks Multi-Asset Income Index. The index aims to outperform the Dow Jones US Select Dividend Index using US stocks, ADRs (American depositary receipts), REITs, MLPs, CEFs (closed-end funds), preferred stocks, and royalty trusts. The YTD price movement of CVY was 9.1% on August 5.

The market caps of BGS’s competitors are as follows:

  • General Mills (GIS) — $42.4 billion
  • The J.M. Smucker Company (SJM) — $17.9 billion
  • TreeHouse Foods (THS) — $6.0 billion

B&G Foods declared a dividend

B&G Foods has declared a regular quarterly cash dividend of $0.42 per share on its common stock. The dividend will be paid on October 31, 2016, to shareholders of record as of September 30, 2016.

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Performance of B&G Foods in 2Q16

B&G Foods saw 2Q16 reported net sales of $306.4 million, a rise of 58.3% compared to its net sales of $193.6 million in 2Q15. The company’s gross profit margin and operating income rose by 11.8% and 67.3%, respectively, in 2Q16, compared to the prior year’s period. It reported impairment of intangible assets of $5.4 million in 2Q16.

Its net income and EPS (earnings per share) rose to $30.3 million and $0.48, respectively, in 2Q16, compared to $18.7 million and $0.33, respectively, in 2Q15. It reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) and adjusted EPS of $85.0 million and $0.57, respectively, in fiscal 2Q16, rises of 79.3% and 67.7%, respectively, compared to 2Q15.

BGS’s inventories fell by 16.0%, and its trade accounts receivable rose by 2.2% in 2Q16 compared to 4Q15. It reported cash and cash equivalents of $107.6 million in 2Q16, compared to $5.2 million in 4Q15. Its current ratio rose to 4.9x, and its debt-to-equity ratio fell to 3.1x in 2Q16, compared to its current and debt-to-equity ratios of 3.4x and 4.6x, respectively, in 4Q15.

Projections

The company has made the following projections for 2016:

  • net sales in the range of $1.39 billion–$1.42 billion
  • adjusted EBITDA in the range of $317.0 million–$327.0 million
  • adjusted EPS in the range of $2.11–$2.21

Next, we’ll discuss how Molson Coors Brewing Company performed in 2Q16.

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