Pinnacle Foods Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 24, 2017. For the quarter, the company reported net sales of $749.814 million against $758.821 million a year ago. Earnings before interest and taxes were $94.054 million against $118.268 million a year ago, primarily reflecting the lower gross profit and the unfavorable impact versus year-ago of items affecting comparability, including a $39 million non-cash tradename impairment charge taken in the third quarter of 2017. Also impacting the results was higher consumer marketing, partially offset by lower overhead expenses resulting from synergy capture, aggressive cost management and lower performance-based compensation. Earnings before income taxes were $64.966 million against $81.822 million a year ago. Net earnings attributable to the company and subsidiaries common shareholders were $46.581 million or $0.39 per diluted share against $52.353 million or $0.44 per diluted share a year ago. Adjusted net earnings were $69.171 million or $0.58 per share against $62.804 million or $0.53 per share a year ago. Adjusted EBIT was $130.362 million against $134.568 million a year ago. Adjusted EBITDA was $156.894 million against $161.645 million a year ago. Net sales in the third quarter of 2017 decreased 1.2% versus year-ago, reflecting strong underlying top-line growth of 3.1%. This performance was more than offset by the anticipated, unfavorable discrete impacts totaling 3.6% from both the second quarter 2017 Aunt Jemima exit and the residual impact of the 2016 Boulder UK business wind-down and SKU rationalization program. Also impacting the net sales in the quarter was the unfavorable impact estimated at approximately 0.7% of Hurricanes Harvey and Irma.

For the nine months, the company reported net sales of $2,260.496 million against $2,269.457 million a year ago. Earnings before interest and taxes were $249.282 million against $306.335 million a year ago. Earnings before income taxes were $110.984 million against $202.865 million a year ago. Net earnings attributable to the company and subsidiaries common shareholders were $88.176 million or $0.74 per diluted share against $122.973 million or $1.04 per diluted share a year ago. Net cash provided by operating activities was $178.722 million against $239.942 million a year ago. Capital expenditures were $70.515 million against $76.623 million a year ago. Adjusted net earnings were $192.614 million or $1.61 per share against $160.160 million or $1.36 per share a year ago. Adjusted EBIT was $365.031 million against $356.128 million a year ago. Adjusted EBITDA was $444.421 million against $434.877 million a year ago.

The company maintained its guidance for adjusted diluted EPS for 2017 in a range of $2.55 to $2.60, and continues to expect to be at the low end of the range, reflecting the inclusion of the full-year impact of the discrete items and hurricanes. This outlook represents growth versus year-ago approaching 19% and includes the following assumptions: The benefit of the 53rd week is expected to add approximately 1% to net sales and $0.03 to Adjusted Diluted EPS for the year. This impact will benefit the fourth quarter of 2017. Input cost inflation for the year is now estimated to be approximately 3.0%, reflecting higher than previously-expected transportation expense. Productivity for the year is now estimated to slightly exceed 4.0% of cost of products sold, excluding Boulder Brands acquisition synergies of at least $15 million that will benefit both gross margin and SG&A overhead. The discrete items that impacted performance through the third quarter are expected to impact fourth quarter Adjusted diluted EPS by approximately $0.03. Net interest expense is now forecasted at approximately $121 million. Adjusted ETR for the year, including the benefit of the new accounting standard for stock-based compensation, is now estimated to be approximately 32.5%. Capital expenditures for the year are now estimated to be approximately $100 million, excluding the $37.5 million acquisition of the frozen warehouse and packaging facility in Beaver Dam, Wisconsin.