According to the company, the decline in net income was primarily related to charges incurred as a result of the company's IPO and income taxes at an effective rate of 46%, as compared to only 4% in 2011, primarily due to the reversal of a valuation allowance on deferred tax assets in fiscal 2011.
For the fiscal 2012, net sales increased 20% to $141.3m. The net income was $9.6m, down from $20.2m the previous year, primarily due to the $11.3m reversal of a valuation allowance on deferred tax assets in fiscal 2011.
However, adjusted net income for the quarter increased 17.9% to $3.9m, while adjusted net income for fiscal 2012 increased 36.6% to $12.1m. The adjusted net income per share is based on 16.4m adjusted diluted shares of common stock, which does not include new shares issued at the IPO.
Annie's CEO John Foraker said that the fiscal 2012 was driven by strong growth in the natural and organic food market, as more parents sought healthier food options for their families.
On 2 April 2012, Annie's completed an IPO and raised net proceeds of $11.4m, which were used, in part, to pay down outstanding debt under the credit facility.
For the fiscal 2013, the company expects net sales growth in the range of 16% to 19%, and adjusted net income in the range of $14m to $14.5m representing year-over-year growth of 20% to 25%, excluding $0.5m in one-time tax benefit taken in fiscal 2012.
Annie's offers over 125 organic products in packaged food categories, which are present in over 25,000 retail locations in the US and Canada.
