ATCHISON, KANSAS, U.S. — MGP Ingredients, Inc. announced on May 31 that Michael Braude was re-elected to the board of directors by holders of the company’s preferred stock, and Linda Miller and Daryl Schaller, Ph.D., were re-elected to the board by holders of the company's common stock. The terms of all three directors expire in 2015.
Results of the board elections were announced at the annual meeting of MGPI stockholders. Stockholders also ratified the selection of KPMG LLP as the company’s independent registered public accounting firm for the year ending Dec. 31, and approved, on an advisory basis, the compensation of the company’s named executive officers.
Braude has been a director since 1991. He is a member of the Nominating and Governance Committee, the Audit Committee and the Human Resources and Compensation Committee. He was the president and chief executive officer of the Kansas City Board of Trade from 1984 until his retirement in 2000.
Miller has been a director since 2000. She is chair of the Nominating and Governance Committee and a member of the Audit Committee and the Human Resources and Compensation Committee. She is an independent marketing consultant and a member of the Engineering Management Graduate Faculty at the University of Kansas.
Schaller has been a director since 1997. He is chair of the Human Resources and Compensation Committee and a member of the Audit Committee and Nominating and Governance Committee. He is an independent consultant, and formerly vice-president of research at International Multifoods Corp. Prior to that he had 25 years of service at Kellogg Co. in various capacities, including senior vice-president scientific affairs and senior vice-president research, quality and nutrition.
At MGPI’s 24th annual meeting of stockholders, President and CEO Tim Newkirk provided an overview of strategic transactions and financial results covering the six-month transition period following a change in the company’s June fiscal year to a calendar fiscal year. First quarter results of the new fiscal year included a net sales increase of 34% and were led by distillery segment sales growth of 44%.
Newkirk said, “In the span of a little more than two years, we have completely transformed the composition of our product portfolio. Today, high quality food grade alcohol makes up the vast majority of our sales. This is also our fastest-growing area. More recently, we completed a new grain sourcing agreement with a world-class corn supplier. This is a major step toward better managing our corn volatility.
“With the help of a new management team, we’ve put in place a best-in-class operating framework. Our Atchison distillery has made great progress and is currently running near record levels of product quality and yield. The recently-acquired Lawrenceburg distillery is our next major undertaking. The benefits from these actions are geared to produce not only higher customer satisfaction, but also better profits and cash flows for MGPI.
“Following a series of difficult decisions and actions to improve our profitability in the face of stubbornly high commodity prices, along came the opportunity to build our leadership position in high-quality alcohol. The acquisition of the Lawrenceburg Distillery represents much more than a product line extension in premium white and brown goods. It actually forms the basis for a stronger future in terms of untapped opportunities for profitable growth.”