MARION, N.Y., Oct. 23,
2013 /PRNewswire/ -- Seneca Foods Corporation (NASDAQ: SENEA,
SENEB) reported for the second quarter of 2014, net earnings of
$6.6 million, or $0.59 per diluted share, compared to $14.5 million, or $1.22 per diluted share, in the fiscal second
quarter of 2013. Net sales for the second quarter ended
September 28, 2013 increased from the
second quarter ended September 29,
2012 by 6.0%, or $19.0 million to
$336.6 million. The increase is attributable to a
sales volume increase of $26.9
million partially offset by a less favorable sales mix and
lower selling prices of $7.9
million. $15.0 million
of the sales volume increase can be attributed to sales from the
Green Giant Alliance which took place in the Company's third
quarter during the prior year.
The Company reported net earnings for the fiscal six months
ended September 28, 2013 of
$8.0 million, or $0.71 per diluted share, compared to $22.7 million, or $1.89 per diluted share for the same period in
the prior year. In the six months ended September 28, 2013, net sales increased
$20.1 million, or 3.7% to
$568.8 million. The increase in net
sales is attributable to higher sales volume of $39.4 million partially offset by lower selling
prices/unfavorable sales mix of $19.3
million.
Excluding a non-cash after-tax LIFO charge of $5.6 million, net earnings per diluted share were
$1.09 during the quarter ended
September 28, 2013 versus
$1.02 during the quarter ended
September 29, 2012, which included a
non-cash LIFO credit of $2.4 million.
Excluding a non-cash after-tax LIFO charge of $9.4 million, net earnings per diluted share were
$1.55 during the six months ended
September 28, 2013, compared to
$1.76 during the six months ended
September 29, 2012 which included a
non-cash LIFO credit of $1.6
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
|
|
|
September 28,
2013
|
|
September 29,
2012
|
|
|
Income
|
|
Diluted
|
|
Income
|
|
Diluted
|
|
|
(in
millions)
|
|
EPS
|
|
(in
millions)
|
|
EPS
|
|
|
|
|
|
|
|
|
|
Net earnings, as
reported:
|
$
|
6.6
|
$
|
0.59
|
$
|
14.5
|
$
|
1.22
|
|
|
|
|
|
|
|
|
|
LIFO charge (credit),
after tax at statutory federal rate
|
$
|
5.6
|
$
|
0.50
|
$
|
(2.4)
|
$
|
(0.20)
|
|
|
|
|
|
|
|
|
|
Net earnings,
excluding LIFO impact
|
$
|
12.2
|
$
|
1.09
|
$
|
12.1
|
$
|
1.02
|
|
|
|
|
|
|
|
|
|
Diluted
weighted average common shares outstanding
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
|
|
10,819
|
|
|
|
11,445
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
September 28,
2013
|
|
September 29,
2012
|
|
|
Income
|
|
Diluted
|
|
Income
|
|
Diluted
|
|
|
(in
millions)
|
|
EPS
|
|
(in
millions)
|
|
EPS
|
|
|
|
|
|
|
|
|
|
Net earnings, as
reported:
|
$
|
8.0
|
$
|
0.71
|
$
|
22.7
|
$
|
1.89
|
|
|
|
|
|
|
|
|
|
LIFO charge (credit),
after tax at statutory federal rate
|
$
|
9.4
|
$
|
0.84
|
$
|
(1.6)
|
$
|
(0.13)
|
|
|
|
|
|
|
|
|
|
Net earnings,
excluding LIFO impact
|
$
|
17.4
|
$
|
1.55
|
$
|
21.1
|
$
|
1.76
|
|
|
|
|
|
|
|
|
|
Diluted
weighted average common shares outstanding
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
|
|
10,822
|
|
|
|
11,602
|
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.
|
|
Six Months
Ended
|
EBITDA and FIFO
EBITDA:
|
|
September 28,
2013
|
|
September 29,
2012
|
|
|
(In
thousands)
|
|
Net
earnings
|
$
|
7,950
|
$
|
22,712
|
Income taxes
(benefit) expense
|
|
(754)
|
|
13,173
|
Interest expense, net
of interest income
|
|
3,375
|
|
3,314
|
Depreciation and
amortization
|
|
11,679
|
|
11,424
|
Interest
amortization
|
|
(150)
|
|
(150)
|
EBITDA
|
|
22,100
|
|
50,473
|
LIFO charge
(credit)
|
|
14,435
|
|
(2,444)
|
FIFO
EBITDA
|
$
|
36,535
|
$
|
48,029
|
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
September 28, 2013 and September 29, 2012
|
(In thousands of
dollars, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
|
|
Year-to-Date
|
|
|
Fiscal
2014
|
|
Fiscal
2013
|
|
Fiscal
2014
|
|
Fiscal
2013
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
336,628
|
$
|
317,593
|
$
|
568,755
|
$
|
548,644
|
|
|
|
|
|
|
|
|
|
Plant restructuring
expense (note 2)
|
$
|
347
|
$
|
-
|
$
|
501
|
$
|
-
|
|
|
|
|
|
|
|
|
|
Other operating
income net (note 3)
|
$
|
(607)
|
$
|
(274)
|
$
|
(788)
|
$
|
(292)
|
|
|
|
|
|
|
|
|
|
Operating income
(note 1)
|
$
|
6,783
|
$
|
24,934
|
$
|
10,571
|
$
|
39,199
|
Interest expense,
net
|
|
1,548
|
|
1,836
|
|
3,375
|
|
3,314
|
Earnings before
income taxes
|
$
|
5,235
|
$
|
23,098
|
$
|
7,196
|
$
|
35,885
|
|
|
|
|
|
|
|
|
|
Income taxes
(benefit) expense
|
|
(1,368)
|
|
8,577
|
|
(754)
|
|
13,173
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
6,603
|
$
|
14,521
|
$
|
7,950
|
$
|
22,712
|
|
|
|
|
|
|
|
|
|
Earnings attributable
to common stock (note 4)
|
$
|
6,387
|
$
|
14,010
|
$
|
7,685
|
$
|
21,920
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.59
|
$
|
1.23
|
$
|
0.71
|
$
|
1.90
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
|
0.59
|
$
|
1.22
|
$
|
0.71
|
$
|
1.89
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding basic
|
|
10,747,729
|
|
11,373,830
|
|
10,750,116
|
|
11,530,523
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding diluted
|
|
10,819,217
|
|
11,445,146
|
|
10,821,604
|
|
11,601,839
|
|
|
|
|
|
|
|
|
|
Note 1:
|
The effect of the
LIFO inventory valuation method on second quarter pre-tax results
was to decrease operating earnings by $8,637,000 for the
three month period ended September 28, 2013 and increase operating
earnings by $3,706,000 for the three month period ended September
29, 2012. The effect of the LIFO
inventory valuation method on year-to-date pre-tax results was to
decrease operating earnings by $14,435,000 for the six month period ended September
28, 2013 and increase operating earnings by $2,444,000 for the six
month period ended September 29,
2012.
|
Note 2:
|
The six month period
ended September 28, 2013 included a restructuring charge for
product rationalization costs of $501,000.
|
Note 3:
|
Other income for the
current year of $788,000 represents a net gain on the sale of
unused fixed assets of $869,000 partially offset by a
loss of $81,000 to adjust the bargain
purchase gain on the Sunnyside acquisition. Other income for the prior year of $292,000
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
11,099,127 as of September 28, 2013.
|
|
|
|
|
|
|
|
|
|
SOURCE Seneca Foods Corporation