MARION, N.Y., May 23, 2013 /PRNewswire/ -- Seneca Foods
Corporation (NASDAQ: SENEA, SENEB) reported that net earnings for
the fiscal year ended March 31, 2013,
increased 267.9% to $41.4 million, or
$3.57 per diluted share, compared to
$11.3 million, or $0.92 per diluted share, in the fiscal year ended
March 31, 2012. Net sales for
the fiscal year ended March 31, 2013,
increased from the fiscal year ended March
31, 2012 by 1.5%, to $1,276.3
million. The increase is attributable to increased
selling prices and improved sales mix of $34.3 million partially offset by a sales volume
reduction of $15.8 million.
Net sales for the fourth quarter ended March 31, 2013, increased from the
fourth quarter ended March 31,
2012, by 1.7%, to $274.9
million. The increase is attributable to increased
selling prices and more favorable sales mix of $2.3 million and additional sales volume of
$2.2 million. Net earnings for
the fiscal fourth quarter of 2013 was $3.9
million, or $0.35 per diluted
share, compared to a net loss of $2.2
million, or $0.18 per diluted
share, in the fiscal fourth quarter of 2012.
Excluding a non-cash after-tax LIFO credit of $2.0 million, net earnings per diluted share were
$0.17 during the quarter ended
March 31, 2013 versus $0.75 during the quarter ended March 31, 2012, which included a non-cash LIFO
charge of $11.3 million.
Excluding a non-cash after-tax LIFO credit of $2.7 million, net earnings per diluted share were
$3.33 during the year ended
March 31, 2013, versus $3.44 per diluted share during the year ended
March 31, 2012, which included a
non-cash LIFO charge of $30.7
million.
During 2013, there was a gain of $2.0
million as a result of the estimated fair market value of
the net assets acquired exceeding the purchase price of
Sunnyside, a gain of $0.3 million from the sale of certain property
located in Cambria, Wisconsin and
a loss of $0.3 from the disposal of
certain other fixed assets which are also included in other
operating (loss) income. 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 the third quarter of fiscal 2013, the Company implemented
a product rationalization program and recorded provisions for
related equipment costs, lease impairment costs and certain
inventory costs which resulted in a $3.5
million restructuring charge for fiscal 2013.
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,
2013
|
|
March 31,
2012
|
|
|
Income
|
|
Diluted
|
|
Income
|
|
Diluted
|
|
|
(in
millions)
|
|
EPS
|
|
(in
millions)
|
|
EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss), as
reported:
|
$
|
3.9
|
|
$
|
0.35
|
|
$
|
(2.2)
|
|
$
|
(0.18)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO charge
(credit), after tax at statutory federal rate
|
|
(2.0)
|
|
|
(0.18)
|
|
|
11.3
|
|
|
0.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings, excluding LIFO impact
|
$
|
1.9
|
|
$
|
0.17
|
|
$
|
9.1
|
|
$
|
0.75
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares outstanding (in thousands)
|
|
|
|
|
10,831
|
|
|
|
|
|
11,778
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
March 31,
2013
|
|
March 31,
2012
|
|
|
Income
|
|
Diluted
|
|
Income
|
|
Diluted
|
|
|
(in
millions)
|
|
EPS
|
|
(in
millions)
|
|
EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings, as
reported:
|
|
$
|
41.4
|
|
$
|
3.57
|
|
$
|
11.3
|
|
$
|
0.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO (credit)
charge, after tax at statutory federal rate
|
|
(2.7)
|
|
|
(0.24)
|
|
|
30.7
|
|
|
2.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings, excluding LIFO impact
|
$
|
38.7
|
|
$
|
3.33
|
|
$
|
42.0
|
|
$
|
3.44
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares outstanding (in thousands)
|
|
|
|
|
11,219
|
|
|
|
|
|
11,799
|
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,
2013
|
|
March 31,
2012
|
|
(In
thousands)
|
|
|
|
|
Net
earnings
|
$41,413
|
|
$11,256
|
Interest expense, net
of interest income
|
7,486
|
|
8,102
|
Income
taxes
|
22,035
|
|
6,265
|
Depreciation and
amortization
|
23,251
|
|
22,691
|
Interest
amortization
|
(300)
|
|
(364)
|
EBITDA
|
93,885
|
|
47,950
|
LIFO charge
(credit)
|
(4,213)
|
|
47,340
|
FIFO
EBITDA
|
$89,672
|
|
$95,290
|
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, 2013 and 2012
|
|
(In thousands of
dollars, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
|
|
Year-to-Date
|
|
|
Fiscal
2013
|
|
Fiscal
2012
|
|
Fiscal
2013
|
|
Fiscal
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
274,922
|
|
$
|
270,389
|
|
$
|
1,276,297
|
|
$
|
1,257,805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plant restructuring
expense (note 3)
|
$
|
987
|
|
$
|
-
|
|
$
|
3,497
|
|
$
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating
income (loss), net (note 4)
|
$
|
1,641
|
|
$
|
(62)
|
|
$
|
1,971
|
|
$
|
814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (loss) (notes 1 and 2)
|
$
|
7,760
|
|
$
|
(1,752)
|
|
$
|
70,934
|
|
$
|
25,623
|
|
Interest expense,
net
|
|
2,229
|
|
|
2,272
|
|
|
7,486
|
|
|
8,102
|
|
Earnings
(loss) before income taxes
|
$
|
5,531
|
|
$
|
(4,024)
|
|
$
|
63,448
|
|
$
|
17,521
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
expense (benefit)
|
|
1,620
|
|
|
(1,842)
|
|
|
22,035
|
|
|
6,265
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss)
|
$
|
3,911
|
|
$
|
(2,182)
|
|
$
|
41,413
|
|
$
|
11,256
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(loss) attributable to common stock (note 5)
|
$
|
3,780
|
|
$
|
(2,114)
|
|
$
|
39,984
|
|
$
|
10,851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
$
|
0.35
|
|
$
|
(0.18)
|
|
$
|
3.59
|
|
$
|
0.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
$
|
0.35
|
|
$
|
(0.18)
|
|
$
|
3.57
|
|
$
|
0.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding basic
|
|
10,758,534
|
|
|
11,706,493
|
|
|
11,146,652
|
|
|
11,726,801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding diluted
|
|
10,830,864
|
|
|
11,778,009
|
|
|
11,218,982
|
|
|
11,799,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1:
|
The effect of
the LIFO inventory valuation method on fourth quarter pre-tax
results was to increase operating earnings by $3,037,000 for the
three month period ended March 31, 2013 and reduce operating
earnings $17,285,000 for the three month period ended March 31,
2012.
|
Note 2:
|
The effect of
the LIFO inventory valuation method on year-to-date pre-tax results
was to increase operating earnings by $4,213,000 for the year ended
March 31, 2013 and reduce operating earnings by $47,340,000, for
the year ended March 31, 2012.
|
Note 3:
|
The three month
period ended March 31, 2013 included a restructuring charge for
product rationalization costs of $987,000.
|
|
The year ended March
31 2013 includes a restructuring charge for product rationalization
costs of $3,497,000.
|
|
The year ended March
31 2012 includes a restructuring charge for severance costs of
$39,000.
|
Note 4:
|
Other income for the
current year of $1,971,000 represents a gain of $1,971,000 related
to the acquisition of Sunnyside, a gain of $252,000 on the
sale of property located in Cambria, Wisconsin and a net loss of
$252,000 on the disposal of certain other fixed assets. Other
income for the prior year of $814,000 represents a net gain on the
sale of unused fixed assets.
|
Note 5:
|
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 11,538,636 as of March 31, 2013.
|
SOURCE Seneca Foods Corporation