MARION, N.Y., Nov. 5 /PRNewswire-FirstCall/ -- Seneca Foods
Corporation (NASDAQ:SENEANASDAQ:SENEB) is pleased to report that
net sales for the six months ended September 26, 2009 increased
from last year by $21.6 million, or 4.1%, to $553.7 million. The
increase in sales is attributable to increased selling
prices/improved sales mix of $45.8 million partially offset by a
sales volume reduction of $24.2 million. Net earnings increased to
$23.5 million, or $1.92 per diluted share, compared to $2.3 million
or $0.19 per diluted share in the prior year. Excluding a non-cash
after-tax LIFO charge of $6.1 million and $16.0 million, net
earnings per diluted share were $2.42 and $1.49 during the six
months periods ended September 26, 2009 and September 27, 2008,
respectively. For the quarter ended September 26, 2009, sales
increased 2.5% to $323.2 million compared to last year. The
increase in sales is attributable to increased selling
prices/improved sales mix of $15.8 million partially offset by
reduced sales volume of $8.0 million. Net earnings were $12.4
million, or $1.02 per diluted share, versus $4.4 million or $0.36
per diluted share in the quarter ended September 27, 2008.
Excluding a non-cash after-tax LIFO charge of $3.1 million and $9.3
million, net earnings per diluted share were $1.27 and $1.11 during
the quarters ended September 26, 2009 and September 27, 2008,
respectively. Pre-tax results for six months ended September 27,
2008 included a $0.3 million gain on the sale of unused equipment.
"We continue to be pleased with the strong earnings performance of
the company in the second quarter. Our retail store brands business
remains one of the key drivers in earnings growth as consumers
stretch their food budgets through the purchase of our products.
Nevertheless, sales of store brand canned fruits and vegetables
show signs of slowing as the leading brands are becoming more
aggressive in their promotional activities", said Kraig H. Kayser,
President and CEO. 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, 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".
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
---------------------------------------------------- September 26,
2009 September 27, 2008 -------------------------
----------------------- Income Diluted Income Diluted (in millions)
EPS (in millions) EPS ------------ ------- ----------- ------- Net
earnings, as reported: $12.4 $1.02 $4.4 $0.36 LIFO charge, after
tax at statutory federal rate $3.1 $0.25 $9.3 $0.75 Net earnings,
excluding LIFO impact $15.5 $1.27 $13.7 $1.11 Diluted weighted
average common shares outstanding (in thousands) 10,709 7,659
====== ===== Six Months Ended
--------------------------------------------------- September 26,
2009 September 27, 2008 ------------------------
--------------------- Income Diluted Income Diluted (in millions)
EPS (in millions) EPS ----------- ------- ----------- ------- Net
earnings, as reported: $23.5 $1.92 $2.3 $0.19 LIFO charge, after
tax at statutory federal rate $6.1 $0.50 $16.0 $1.30 Net earnings,
excluding LIFO impact $29.6 $2.42 $18.3 $1.49 Diluted weighted
average common shares outstanding (in thousands) 9,181 7,659 =====
===== 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 26, September 27, 2009 2008 ------------
------------ (In thousands) Net earnings $23,511 $2,288 Income
taxes 12,921 1,691 Interest expense, net of interest income 5,183
7,363 Depreciation and amortization 10,883 10,949 Interest
amortization (300) (319) ---- ---- EBITDA 52,198 21,972 LIFO charge
9,429 24,572 ----- ------ FIFO EBITDA $61,627 $46,544 =======
======= Forward-Looking Information The information contained in
this report 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
report 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, including (i) the Company's anticipated
needs for, and the availability of, cash, (ii) the Company's
liquidity and financing plans, (iii) the Company's ability to
successfully integrate acquisitions into its operations, (iv)
trends affecting the Company's financial condition or results of
operations, including anticipated sales price levels and
anticipated expense levels, in particular higher production, fuel
and transportation costs, (v) the Company's plans for expansion of
its business (including through acquisitions) and cost savings, and
(vi) the impact of competition. 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; -- 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, U.S., 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 26, 2009 and September 27,
2008 (In thousands of dollars, except share data) Quarter
Year-to-Date ------------------- ------------------- 2009 2008 2009
2008 -------- -------- -------- -------- Net sales $323,205
$315,418 $553,733 $532,131 ======== ======== ======== ========
Other operating income, net (note 3) $31 $12 $31 $283 === === ===
==== Operating income (note 1 and 2) $22,458 $11,073 $41,615
$11,342 Interest expense, net 2,546 3,611 5,183 7,363 ----- -----
----- ----- Earnings before income taxes $19,912 $7,462 $36,432
$3,979 Income taxes expense 7,487 3,097 12,921 1,691 ----- -----
------ ----- Net earnings $12,425 $4,365 $23,511 $2,288 =======
====== ======= ====== Earnings applicable to common stock (note 4)
$10,879 $2,722 $17,632 $1,422 ======= ====== ======= ====== Basic
earnings per share $1.02 $0.36 $1.94 $0.19 ===== ===== ===== =====
Diluted earnings per share $1.02 $0.36 $1.92 $0.19 ===== =====
===== ===== Weighted average shares outstanding basic 10,639,848
7,591,423 9,111,845 7,591,340 Weighted average shares outstanding
diluted 10,709,156 7,659,214 9,181,153 7,659,131 Note 1: The effect
of the LIFO inventory valuation method on second quarter pre-tax
results was to reduce operating earnings by $4,728,000 and
$14,296,000, for the three month periods ended September 26, 2009
and September 27, 2008, respectively. Note 2: The effect of the
LIFO inventory valuation method on year-to-date pre-tax results was
to reduce operating earnings by $9,429,000 and $24,572,000, for the
six month periods ended September 26, 2009 and September 27, 2008,
respectively. Note 3: Other operating income for the prior
year-to-date period of $283,000 principally 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 allocated 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
the each period presented. Average common and participating shares
totaled 12,146,152 as of September 26, 2009. DATASOURCE: Seneca
Foods Corporation CONTACT: Roland E. Breunig, CFO, Seneca Foods
Corporation, +1-608-757-6000 Web Site: http://www.senecafoods.com/
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