At an event hosted for financial
analysts today and webcast live over the Internet, executives of Flowers Foods
FLO commented on the company's bid to acquire Hostess bread brands and
bakeries. Executives also provided an overview of the company's growth
objectives and operational strategies and discussed year-to-date sales and
earnings. The meeting was held at the New York Stock Exchange.
Regarding Flowers' pending acquisition of Hostess' Wonder, Nature's Pride,
Merita, Home Pride, and Butternut bread brands as well as 20 bakeries and 38
depots, George E. Deese, chairman of the board and chief executive officer,
said, "The Hostess assets would fit well with our long-term growth strategy.
We are pleased with the outcome of the bankruptcy court review in which the
court approved the sale this week, subject to the finalizing of the sales
order, which we expect to occur shortly. However, this process is not over.
Now, the transaction must continue through the regulatory process. We
anticipate completing the transaction in the second half of the year. Because
the transaction is not finalized and for competitive reasons, we will not
share any specific plans regarding the pending acquisition.
"This is an amazing time for Flowers Foods. Our long-term commitment to
investing in bakeries, constantly improving efficiencies, delivering quality
and the best customer service, and building strong brands is paying good
dividends for us. Flowers Foods' year-to-date sales are up 20% to 25% and our
earnings outlook is strong," Deese said. "We are adding new customers and
locations, and we believe we are maximizing the opportunities available to us.
Recent acquisitions like Lepage Bakeries in the Northeast and the Sara Lee
brand of fresh bread, buns, and rolls in California have helped us extend our
geographic reach. We have strong brands, great products, and a seasoned
team—all factors that give me confidence in Flowers' ability to meet or exceed
our goals."
Allen L. Shiver, president of Flowers Foods, discussed from an operations and
sales standpoint how the company is well-positioned for accelerated growth.
"Our strategy is proven. Our brands, such as Nature's Own and Tastykake, are
well established and deliver consistent quality and great taste. Flowers'
bakeries are among the most efficient in the country. Our distribution
networks for DSD ("direct-store-delivery") and our warehouse segments are
effective in delivering the products our customers need. And we believe the
Flowers team is simply the best in the industry," said Shiver.
Bradley K. Alexander, president of Flowers Bakeries, provided an update of the
company's recent Lepage Bakeries integration, as well as an overview of
Flowers' roll out of Sara Lee fresh breads, buns, and rolls in California
following the completion of the acquisition from BBU, Inc.
In his comments, R. Steve Kinsey, executive vice president and chief financial
officer, said, "We are very optimistic about our fiscal 2013 outlook. We are
seeing strong sales and earnings trends, and we expect to deliver a strong
first quarter. However, due to the pending Hostess transaction, we are limited
in regard to the information we can provide on the full year."
Deese closed the meeting by reiterating his confidence in the Flowers team.
"While the marketplace dynamics and competitive landscape continue to evolve,
I am more confident than ever in Flowers Foods' ability to execute our
strategies and continue to deliver value to our shareholders, our customers,
and our consumers," he said.
Flowers Foods broadcast the event live over the Internet. The archived
presentation can be accessed on the company's Web site www.flowersfoods.com.
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