Treehouse Foods (NYSE: THS) reported Q4 EPS of $1.10, in-line with the analyst estimate of $1.10. Revenue for the quarter came in at $1.14 billion versus the consensus estimate of $1.16 billion.

"Our 2019 results demonstrated great progress. It's important to recognize how much we accomplished in the past year - we provided consistently excellent service for our customers; we designed and stood up our commercial organization; we completed the majority of non-core asset sales; and we made great strides toward building our TreeHouse culture," said Steve Oakland, Chief Executive Officer and President.

"Our efforts to improve business profitability are reflected in the full year 2019 results, as adjusted EBIT margin1 expanded 90 basis points to 6.2%, despite revenue that was 6.5% lower," said Bill Kelley, EVP and Chief Financial Officer. "Adjusted earnings per share growth of 21% to $2.39 demonstrates the hard work we have invested in continuous improvement, ongoing expense discipline, pricing execution, and debt reduction. Although underperformance in our Broth business drove a volume shortfall in the fourth quarter, we remain encouraged by our year-over-year profitability improvement across the company."

GUIDANCE:

Treehouse Foods sees FY2020 EPS of $2.40-$2.65, versus the consensus of $2.63. Treehouse Foods sees FY2020 revenue of $4.1-4.4 billion, versus the consensus of $4.32 billion.

The following are TreeHouse's 2020 guidance ranges on a continuing operations basis:

• Adjusted earnings per diluted share from continuing operations of $2.40 to $2.65
• Net sales between $4.10 to $4.40 billion
  • First half 2020 revenue expected to decline 3% to 5% due to approximately $175 - $200 million in revenue loss from the prior year that will carry over into 2020
  • Second half 2020 revenue is anticipated to accelerate to 2% to 3% growth driven by innovation and new business wins in Meal Solutions and Baked Goods
• Adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") from continuing operations1 between $480 to $510 million
• Net interest expense between $93 and $97 million
• Effective tax rate of 22% to 24%
• Diluted weighted average shares outstanding of approximately 57 million shares
• Free cash flow of $250 to $300 million, with the priority for cash proceeds to reduce debt

In regard to the first quarter of 2020, the Company expects adjusted earnings per share in the range of $0.20 to $0.30 per diluted share from continuing operations and net sales in the range of $0.98 to $1.02 billion.

"We continue to focus on our strategic goals in 2020," continued Mr. Oakland. "This year, we will continue to drive the organization toward growth and improved profitability. While our pivot to growth is taking longer than originally anticipated due to the carryover impact of business that was lost last year, we believe we have the right plans in place to demonstrate consistent delivery of top line growth in the back half of 2020."

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