MGP Ingredients Inc. Files 10-Q for Period Ending March 31, 2024

AI Summary

MGP INGREDIENTS INC (MGPI) filed a Quarterly Report (10-Q) with the SEC on May 2, 2024. MGP Ingredients Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's principal executive offices are located at 1300 Main St, Atchison, KS 66002. MGP Ingredients Inc. was formerly known as Midwest Grain Products Inc. The company operates in the Wholesale - Beer, Wine & Distilled Alcoholic Beverages sector.

Why It Matters

For investors and stakeholders tracking MGP INGREDIENTS INC, this filing contains several important signals. This filing provides investors with an update on MGP Ingredients' financial health and operational status for the first quarter of 2024. Understanding the details within this 10-Q is crucial for assessing the company's performance against previous periods and market expectations.

Risk Assessment

Risk Level: — MGP INGREDIENTS INC shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate, significant new risks or material adverse events.

Analyst Insight

Review the detailed financial statements and segment performance within the 10-Q to understand MGP Ingredients' current business trajectory.

Key Numbers

• 2024-03-31 — Period of Report (Quarterly report)
• 2024-05-02 — Filed As Of Date (Submission date)
• 0000835011 — Central Index Key (Company identifier)

Key Players & Entities

• MGP Ingredients Inc. (company) — Filer
• Midwest Grain Products Inc. (company) — Former company name
• 1300 Main St, Atchison, KS 66002 (location) — Business address
• 2024-03-31 (date) — Period of report
• 2024-05-02 (date) — Filed as of date

FAQ

Industry Context

MGP Ingredients Inc. operates within the alcoholic beverage industry, specifically in wholesale distribution of beer, wine, and distilled spirits.

Regulatory Implications

The company is subject to standard SEC reporting requirements for publicly traded companies, including the filing of quarterly 10-Q reports.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and other key performance indicators.
2. Examine any disclosed risk factors or management discussion and analysis for insights into operational challenges or opportunities.
3. Compare the reported figures to previous quarters and the same quarter in the prior year to identify trends.

Key Dates

• 2024-03-31: Quarter End — End of reporting period for the 10-Q
• 2024-05-02: Filing Date — Date the 10-Q was officially submitted to the SEC

Year-Over-Year Comparison

This is the initial 10-Q filing for the fiscal year 2024, following the 2023 annual report.

Filing Documents

• mgpi-20240331.htm (10-Q) — 949KB
• a3312024ex311.htm (EX-31.1) — 10KB
• a3312024ex312.htm (EX-31.2) — 10KB
• a3312024ex321.htm (EX-32.1) — 5KB
• a3312024ex322.htm (EX-32.2) — 5KB
• mgpi-20240331_g1.jpg (GRAPHIC) — 204KB
• 0001628280-24-019790.txt ( ) — 5790KB
• mgpi-20240331.xsd (EX-101.SCH) — 34KB
• mgpi-20240331_cal.xml (EX-101.CAL) — 83KB
• mgpi-20240331_def.xml (EX-101.DEF) — 163KB
• mgpi-20240331_lab.xml (EX-101.LAB) — 500KB
• mgpi-20240331_pre.xml (EX-101.PRE) — 353KB
• mgpi-20240331_htm.xml (XML) — 602KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Page Item 1.

Financial Statements

Financial Statements Condensed Consolidated Statements of Income (Unaudited) 3 Condensed Consolidated Statements of Comprehensive Income (Unaudited) 4 Condensed Consolidated Balance Sheets (Unaudited) 5 Condensed Consolidated Statements of Cash Flows (Unaudited) 6 Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) 7 Notes to Unaudited Condensed Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 19 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 27 Item 4.

Controls and Procedures

Controls and Procedures 27

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 28 Item 1A.

Risk Factors

Risk Factors 28 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 28 Item 3. Defaults Upon Senior Securities 28 Item 4. Mine Safety Disclosures 28 Item 5. Other Information 28 Item 6. Exhibits 29 METHOD OF PRESENTATION Throughout this Quarterly Report on Form 10-Q (this "Report"), when we refer to the "Company," "MGP," "we," "us," "our," and words of similar import, we are referring to the combined business of MGP Ingredients, Inc. and its consolidated subsidiaries, except to the extent that the context otherwise indicates. In this Report, for any references to Note 1 through Note 11, refer to the Notes to Unaudited Condensed Consolidated Financial Statements in Item 1. All amounts in this Report, except for share, par values, bushels, gallons, pounds, mmbtu, proof gallons, 9-liter cases, per share, per bushel, per gallon, per proof gallon, per 9-liter case, and percentage amounts, are shown in thousands unless otherwise noted. 2

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS MGP INGREDIENTS, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Dollars in thousands, except share and per share amounts) Quarter Ended March 31, 2024 2023 Sales $ 170,563 $ 201,010 Cost of sales 107,768 131,186 Gross profit 62,795 69,824 Advertising and promotion expenses 8,683 7,733 Selling, general, and administrative expenses 20,979 20,532 Impairment of long-lived assets and other 116 — Change in fair value of contingent consideration 4,100 — Operating income 28,917 41,559 Interest expense, net ( 2,019 ) ( 995 ) Other income (expense), net ( 52 ) 123 Income before income taxes 26,846 40,687 Income tax expense 6,262 9,655 Net income 20,584 31,032 Net loss attributable to noncontrolling interest 51 39 Net income attributable to MGP Ingredients, Inc. 20,635 31,071 Income attributable to participating securities ( 239 ) ( 311 ) Net income used in earnings per common share calculation $ 20,396 $ 30,760 Weighted average common shares Basic 22,142,277 22,040,224 Diluted 22,142,277 22,072,271 Earnings per common share Basic $ 0.92 $ 1.40 Diluted $ 0.92 $ 1.39 See accompanying notes to unaudited condensed consolidated financial statements 3 MGP INGREDIENTS, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Dollars in thousands) Quarter Ended March 31, 2024 2023 Net income attributable to MGP Ingredients, Inc. $ 20,635 $ 31,071 Other comprehensive income (loss), net of tax: Unrealized gain on foreign currency translation adjustment — 175 Change in Company-sponsored post-employment benefit plan ( 40 ) ( 107 ) Other comprehensive income (loss) ( 40 ) 68 Comprehensive income attributable to MGP Ingredients, Inc. 20,595 31,139 Comprehensive loss attributable to noncontrolling interest ( 51 ) ( 39 ) Comprehensive income $ 20,544 $ 31,100 See accompanying notes to unaudited condensed consolidated financial statements 4 MGP INGREDIENTS, INC. CONDE

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