MARION, N.Y., June 8, 2012 /PRNewswire/ -- Seneca Foods
Corporation (NASDAQ: SENEA, SENEB) reported that net earnings for
the fiscal year ended March 31, 2012
decreased 36.3% to $11.3 million, or
$0.92 per diluted share, compared to
$17.7 million, or $1.45 per diluted share, in the fiscal year ended
March 31, 2011. Net sales for
the fiscal year ended March 31, 2012
increased from the fiscal year ended March
31, 2011 by 5.6%, to $1,261.8
million. The increase is attributable to increased
selling prices and improved sales mix of $133.3 million partially offset by a sales volume
reduction of $66.1 million.
Net sales for the fourth quarter ended March 31, 2012 increased from the fourth
quarter ended March 31, 2011 by 7.2%,
to $271.2 million. The increase
is attributable to increased selling prices and more favorable
sales mix of $54.3 million and
partially offset by less sales volume of $36.1 million. Net loss for the fiscal
fourth quarter of 2012 was $2.2
million, or $0.18 per diluted
share, compared to a net loss of $1.9
million, or $0.15 per diluted
share, in the fiscal fourth quarter of 2011.
Excluding a non-cash after-tax LIFO charge of $11.3 million, net earnings per diluted share
were $0.74 during the quarter ended
March 31, 2012 versus a $0.20 net loss per diluted share during the
quarter ended March 31, 2011, which
included a non-cash LIFO credit of $0.6
million. Excluding a non-cash after-tax LIFO charge of
$30.7 million, net earnings per
diluted share were $3.44 during the
year ended March 31, 2012 versus
$1.03 per diluted share during the
year ended March 31, 2011, which
included a non-cash LIFO credit of $5.1
million.
During 2012, the Company recorded a gain of $0.7 million from the sale of property located in
LeSueur, Minnesota and a gain of
$0.1 million from the sale of other
property which are included in other operating (loss) income.
During 2011, there was a gain from the reversal of an environmental
reserve of $0.3 million, a gain of
$0.2 million from the sale of certain
fixed assets and a loss of $0.4 from
the disposal of certain fixed assets which are also included in
other operating (loss) income.
During the second quarter of fiscal 2011, the Company
implemented workforce reductions, at its plants in Buhl, Idaho and Mayville, Wisconsin and certain other
locations that resulted in a restructuring charge of
$1.4 million primarily for severance
costs.
About Seneca Foods Corporation
Seneca Foods is one of the country's largest processors of
canned fruits and vegetables with manufacturing facilities located
throughout the United States. Its
products are sold under the Libby's, Aunt Nellie's Farm Kitchen,
Stokely's, READ, Seneca Farms, and Seneca labels as well as through the private
label and industrial markets. In addition, under an alliance with
General Mills Operations, LLC, a successor to the Pillsbury Company
and a subsidiary of General Mills, Inc., Seneca produces canned and frozen vegetables,
which are sold by General Mills Operations, LLC under the Green
Giant label. Seneca's common stock
is traded on the Nasdaq Global Stock Market under the symbols
"SENEA" and "SENEB". SENEA is included in the S&P
SmallCap 600, Russell 2000 and Russell 3000 indices.
Non-GAAP Financial Measures—Net Earnings Excluding LIFO
Impact, EBITDA and FIFO EBITDA
Net Earnings excluding LIFO, EBITDA and FIFO EBITDA are non-GAAP
financial measures. The Company believes these non-GAAP financial
measures provide a basis for comparison to companies that do not
use LIFO and to periods prior to 2008 when the company did not use
LIFO and enhance the understanding of the company's operating
performance. The Company does not intend for this information
to be considered in isolation or as a substitute for other measures
prepared in accordance with GAAP.
Set forth below is a reconciliation of reported net earnings and
reported diluted earnings per share to net earnings excluding LIFO
and diluted earnings per share excluding LIFO.
|
|
Quarter
Ended
|
|
|
March 31,
2012
|
|
March 31,
2011
|
|
|
Income
|
|
Diluted
|
|
Income
|
|
Diluted
|
|
|
(in
millions)
|
|
EPS
|
|
(in
millions)
|
|
EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss,
as reported:
|
$
|
(2.2)
|
|
$
|
(0.18)
|
|
$
|
(1.9)
|
|
$
|
(0.15)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO charge (credit), after tax at statutory federal
rate
|
|
11.3
|
|
|
0.92
|
|
|
(0.6)
|
|
|
(0.05)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss),
excluding LIFO impact
|
$
|
9.1
|
|
$
|
0.74
|
|
$
|
(2.5)
|
|
$
|
(0.20)
|
|
|
|
|
|
|
|
|
|
Diluted
weighted average common shares outstanding (in
thousands)
|
|
|
|
|
11,778
|
|
|
|
|
|
11,808
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
|
March 31,
2012
|
|
March 31,
2011
|
|
|
Income
|
|
Diluted
|
|
Income
|
|
Diluted
|
|
|
(in
millions)
|
|
EPS
|
|
(in
millions)
|
|
EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings, as reported:
|
|
$
|
11.3
|
|
$
|
0.92
|
|
$
|
17.7
|
|
$
|
1.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO charge (credit), after tax at statutory federal
rate
|
|
30.7
|
|
|
2.52
|
|
|
(5.1)
|
|
|
(0.42)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings, excluding LIFO
impact
|
$
|
42.0
|
|
$
|
3.44
|
|
$
|
12.6
|
|
$
|
1.03
|
|
|
|
|
|
|
|
|
|
Diluted
weighted average common shares outstanding (in
thousands)
|
|
|
|
|
11,799
|
|
|
|
|
|
11,636
|
Set forth below is a reconciliation of reported net earnings to
EBITDA and FIFO EBITDA (earnings before interest, income taxes,
depreciation, amortization, non-cash charges and credits related to
the LIFO inventory valuation method). The Company does not intend
for this information to be considered in isolation or as a
substitute for other measures prepared in accordance with GAAP.
|
Year
Ended
|
EBITDA and
FIFO EBITDA:
|
March 31,
2012
|
|
March 31,
2011
|
|
(In
thousands)
|
|
|
|
|
Net
earnings
|
$
11,256
|
|
$
17,671
|
Interest
expense, net of interest income
|
8,102
|
|
8,827
|
Income
taxes
|
6,265
|
|
5,796
|
Depreciation and amortization
|
22,691
|
|
22,581
|
Interest
amortization
|
(364)
|
|
(486)
|
EBITDA
|
47,950
|
|
54,389
|
LIFO
charge (credit)
|
47,340
|
|
(7,852)
|
FIFO
EBITDA
|
$
95,290
|
|
$
46,537
|
Forward-Looking Information
The information contained in this release contains, or may
contain, forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These
statements appear in a number of places in this release and include
statements regarding the intent, belief or current expectations of
the Company or its officers (including statements preceded by,
followed by or that include the words "believes," "expects,"
"anticipates" or similar expressions) with respect to various
matters.
Because such statements are subject to risks and uncertainties,
actual results may differ materially from those expressed or
implied by such forward-looking statements. Investors are
cautioned not to place undue reliance on such statements, which
speak only as of the date the statements were made. Among the
factors that could cause actual results to differ materially
are:
- general economic and business conditions;
- cost and availability of commodities and other raw materials
such as vegetables, steel and packaging materials;
- transportation costs;
- climate and weather affecting growing conditions and crop
yields;
- availability of financing;
- leverage and the Company's ability to service and reduce its
debt;
- foreign currency exchange and interest rate fluctuations;
- effectiveness of the Company's marketing and trade promotion
programs;
- changing consumer preferences;
- competition;
- product liability claims;
- the loss of significant customers or a substantial reduction in
orders from these customers;
- changes in, or the failure or inability to comply with,
United States, foreign and local
governmental regulations, including environmental and health and
safety regulations; and
- other risks detailed from time to time in the reports filed by
the Company with the SEC.
Except for ongoing obligations to disclose material information
as required by the federal securities laws, the Company does not
undertake any obligation to release publicly any revisions to any
forward-looking statements to reflect events or circumstances after
the date of the filing of this report or to reflect the occurrence
of unanticipated events.
Seneca
Foods Corporation
|
Unaudited
Condensed Consolidated Statements of Net Earnings
|
For the
Periods Ended March 31, 2012 and 2011
|
(In
thousands of dollars, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
|
|
Year-to-Date
|
|
Fiscal
2012
|
|
Fiscal
2011
|
|
Fiscal
2012
|
|
Fiscal
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
$
|
271,204
|
|
$
|
252,972
|
|
$
|
1,261,821
|
|
$
|
1,194,612
|
|
|
|
|
|
|
|
|
|
|
|
|
Plant
restructuring expense (note 3)
|
$
|
-
|
|
$
|
34
|
|
$
|
39
|
|
$
|
1,354
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
operating (loss) income, net (note 4)
|
$
|
(62)
|
|
$
|
40
|
|
$
|
814
|
|
$
|
844
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
(loss) income (notes 1 and 2)
|
$
|
(1,752)
|
|
$
|
(1,109)
|
|
$
|
25,623
|
|
$
|
32,294
|
Interest
expense, net
|
|
2,272
|
|
|
2,237
|
|
|
8,102
|
|
|
8,827
|
(Loss) earnings before income taxes
|
$
|
(4,024)
|
|
$
|
(3,346)
|
|
$
|
17,521
|
|
$
|
23,467
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes (benefit) expense (note 5)
|
|
(1,842)
|
|
|
(1,469)
|
|
|
6,265
|
|
|
5,796
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
earnings
|
$
|
(2,182)
|
|
$
|
(1,877)
|
|
$
|
11,256
|
|
$
|
17,671
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings attributable to common stock
(note 6)
|
$
|
(2,114)
|
|
$
|
(1,819)
|
|
$
|
10,851
|
|
$
|
16,797
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
(loss) earnings per share
|
$
|
(0.18)
|
|
$
|
(0.15)
|
|
$
|
0.93
|
|
$
|
1.45
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
(loss) earnings per share
|
$
|
(0.18)
|
|
$
|
(0.15)
|
|
$
|
0.92
|
|
$
|
1.45
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding basic
|
|
11,706,493
|
|
|
11,735,631
|
|
|
11,726,801
|
|
|
11,563,956
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding diluted
|
|
11,778,009
|
|
|
11,807,700
|
|
|
11,799,151
|
|
|
11,636,025
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1:
The effect of the LIFO inventory valuation method on fourth
quarter pre-tax results was to
|
reduce operating earnings
by $17,285,000 for the three month period ended March 31,
2012
|
and
increase operating earnings $962,000 for the three month
period ended March 31, 2011.
|
Note 2:
The effect of the LIFO inventory valuation method on
year-to-date pre-tax results was to reduce
operating
|
earnings
by $47,340,000 for the year ended March 31, 2012 and increase
operating earnings by
|
$7,852,000,
for the year ended March 31, 2011.
|
Note 3:
The three month period ended March 31, 2011 included a
restructuring charge for severance costs of $34,000.
|
The years ended March 31 2012 and 2011 include a restructuring
charge for severance costs of
|
$39,000 and $1,354,000, respectively.
|
Note 4:
Other income for the current year of $814,000 represents a net gain
on the sale of unused fixed assets.
|
Other income for the prior year of $844,000 represents a gain of
$736,000 related to the acquisition
|
of Lebanon, a gain from the reversal of an
environmental reserve of $250,000 and a net loss of
$142,000
|
on
the sale of unused fixed assets.
|
Note 5:
The year ended March 31, 2011 includes a tax benefit of $1,519,000
mostly related to the settlement of an
|
audit
of fiscal years 2006, 2007, and 2008 with the Internal Revenue
Service.
|
Note 6:
The Company uses the "two-class" method for basic earnings per
share by dividing the earnings
|
attributable
to common shareholders by the weighted average of
common shares outstanding
|
during the period. The diluted earnings per share includes
the effect of convertible shares for
|
each
period presented. Common and participating shares totaled
12,099,649 as of March 31, 2012.
|
|
|
SOURCE Seneca Foods Corporation