MARION, N.Y., Aug. 1, 2013 /PRNewswire/ -- Seneca Foods
Corporation (NASDAQ: SENEA, SENEB) reported net earnings for the
fiscal quarter ended June 29, 2013 of
$1.3 million, or $0.12 per diluted share, compared to $8.2 million, or $0.67 per diluted share for the same period in
the prior year. In the first quarter of fiscal 2014, net sales
increased $1.1 million, or 0.5% to
$232.1 million. The increase in net
sales is attributable to higher sales volume of $12.5 million partially offset by lower selling
prices/unfavorable sales mix of $11.4
million.
Excluding a non-cash after-tax LIFO charge of $3.8 million, net earnings per diluted share were
$0.46 during the quarter ended
June 29, 2013 versus $0.74 during the quarter ended June 30, 2012, which included a non-cash LIFO
charge of $0.8 million.
About Seneca Foods Corporation
Seneca Foods is a processor of canned fruits and vegetables with
manufacturing facilities located throughout the United States. Its products are sold under
the Libby's, Blue Boy, 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 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 enhance the understanding of the Company's historical
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
|
|
|
June 29,
2013
|
|
June 30,
2012
|
|
|
Income
|
|
Diluted
|
|
Income
|
|
Diluted
|
|
|
(in
millions)
|
|
EPS
|
|
(in
millions)
|
|
EPS
|
|
|
|
|
|
|
|
|
|
Net earnings, as
reported:
|
$
|
1.3
|
$
|
0.12
|
$
|
8.2
|
$
|
0.67
|
|
|
|
|
|
|
|
|
|
LIFO charge, after
tax at statutory federal rate
|
$
|
3.8
|
$
|
0.34
|
$
|
0.8
|
$
|
0.07
|
|
|
|
|
|
|
|
|
|
Net earnings,
excluding LIFO impact
|
$
|
5.1
|
$
|
0.46
|
$
|
9.0
|
$
|
0.74
|
|
|
|
|
|
|
|
|
|
Diluted
weighted average common shares outstanding
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
|
|
10,825
|
|
|
|
11,759
|
|
|
|
|
|
|
|
|
|
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.
|
|
Three Months
Ended
|
EBITDA and FIFO
EBITDA:
|
|
June 29,
2013
|
|
June 30,
2012
|
|
|
(In
thousands)
|
|
Net
earnings
|
$
|
1,347
|
$
|
8,191
|
Income taxes
expense
|
|
614
|
|
4,596
|
Interest expense, net
of interest income
|
|
1,827
|
|
1,478
|
Depreciation and
amortization
|
|
5,861
|
|
5,689
|
Interest
amortization
|
|
(75)
|
|
(75)
|
EBITDA
|
|
9,574
|
|
19,879
|
LIFO
charge
|
|
5,798
|
|
1,262
|
FIFO
EBITDA
|
$
|
15,372
|
$
|
21,141
|
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
June 29, 2013 and June 30, 2012
|
(In thousands of
dollars, except share data)
|
|
|
|
|
|
|
|
Quarter
|
|
|
Fiscal
2014
|
|
Fiscal
2013
|
|
|
|
|
|
Net sales
|
$
|
232,127
|
$
|
231,051
|
|
|
|
|
|
Plant restructuring
expense (note 2)
|
$
|
154
|
$
|
-
|
|
|
|
|
|
Other operating
income net (note 3)
|
$
|
(181)
|
$
|
(18)
|
|
|
|
|
|
Operating income
(note 1)
|
$
|
3,788
|
$
|
14,265
|
Interest expense,
net
|
|
1,827
|
|
1,478
|
Earnings before
income taxes
|
$
|
1,961
|
$
|
12,787
|
|
|
|
|
|
Income taxes
expense
|
|
614
|
|
4,596
|
|
|
|
|
|
Net
earnings
|
$
|
1,347
|
$
|
8,191
|
|
|
|
|
|
Earnings attributable
to common stock (note 4)
|
$
|
1,298
|
$
|
7,907
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.12
|
$
|
0.68
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
0.12
|
$
|
0.67
|
|
|
|
|
|
Weighted average
shares outstanding basic
|
|
10,752,503
|
|
11,687,215
|
|
|
|
|
|
Weighted average
shares outstanding diluted
|
|
10,825,508
|
|
11,759,711
|
|
|
|
|
|
Note 1:
|
The effect
of the LIFO inventory valuation method on first quarter
pre-tax results was to reduce operating earnings by
$5,798,000 for the three
month period ended June 29, 2013 and $1,262,000 for the three month
period ended June 30, 2012.
|
Note 2:
|
The three month
period ended June 29, 2013 included a restructuring charge for
product rationalization costs of $154,000.
|
Note 3:
|
Other income for the
current year of $181,000 represents a net gain on the sale of
unused fixed assets of $752,000 partially offset
by a loss of $571,000 to adjust the
bargain purchase gain on the Sunnyside acquisition.
Other income for the prior year of $18,000 represents
a net gain on the sale of unused fixed assets.
|
Note 4:
|
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 11,107,327 as of June 29, 2013.
|
SOURCE Seneca Foods Corporation