MARION, N.Y., May 22, 2014 /PRNewswire/ -- Seneca Foods
Corporation (NASDAQ: SENEA, SENEB) reported that net earnings for
the fiscal year ended March 31, 2014,
decreased to $13.8 million, or
$1.23 per diluted share, compared to
$41.4 million, or $3.57 per diluted share, in the fiscal year ended
March 31, 2013. Net sales for
the fiscal year ended March 31, 2014,
increased from the fiscal year ended March
31, 2013 by 5.0%, to $1,340.2
million. The increase is attributable to increased
sales volume of $79.1 million
partially offset by lower selling prices/less favorable sales mix
of $15.2 million.
Net sales for the fourth quarter ended March 31, 2014, increased from the fourth
quarter ended March 31, 2013, by
6.9%, to $293.8 million. The
increase is attributable to increased sales volume of $33.1 million partially offset by lower selling
prices/less favorable sales mix of $14.3
million. Net loss for the fiscal fourth quarter of
2014 was $1.0 million, or
$(0.09) per diluted share, compared
to net earnings of $3.9 million, or
$0.35 per diluted share, in the
fiscal fourth quarter of 2013.
Excluding a non-cash after-tax LIFO credit of $1.1 million, net loss per diluted share was
$(0.19) during the quarter ended
March 31, 2014 versus net earnings of
$0.17 during the quarter ended
March 31, 2013, which included a
non-cash after-tax LIFO credit of $2.0
million. Excluding a non-cash after-tax LIFO charge of
$13.2 million, net earnings per
diluted share were $2.42 during the
year ended March 31, 2014, versus
$3.33 per diluted share during the
year ended March 31, 2013, which
included a non-cash after-tax LIFO credit of $2.7 million.
Other operating income in 2014 included a gain of $2.9 million from a break-up fee earned as a
result of the Company being named the stalking horse bidder in an
attempt to acquire substantially all the operating assets of
Allens, Inc. in a bankruptcy court supervised auction, a gain of
$0.7 million from the sale of two
aircraft and a gain of $0.1 million
as a result of adjustments related to the purchase of
Sunnyside. The Company also recorded a loss of $0.5 million on the disposal of a warehouse
located in Sunnyside, Washington
and a net gain of $0.2 from the sale
of other fixed assets.
Other operating income in 2013 included a gain of $1.9 million as a result of the estimated fair
market value of the net assets acquired exceeding the purchase
price of Sunnyside. The Company also recorded a gain of
$0.3 million from the sale of
property located in Cambria,
Wisconsin and a net loss of $0.3
million on the disposal of certain other fixed assets.
About Seneca Foods Corporation
Seneca Foods is
North America's leading provider
of packaged fruits and vegetables, with facilities located
throughout the United States. Its
high quality products are primarily sourced from over 2,000
American farms. Seneca holds
the largest share of the retail private label, food service, and
export canned vegetable markets, distributing to over 90
countries. Products are also sold under the highly
regarded brands of Libby's®, Aunt Nellie's®, READ®, Seneca Farms®
and Seneca labels, including
Seneca snack chips. In
addition, Seneca provides
vegetable products under an alliance with General Mills Operations,
LLC, a subsidiary of General Mills, Inc., 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 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,
2014
|
|
March 31,
2013
|
|
|
Income
|
|
Diluted
|
|
Income
|
|
Diluted
|
|
|
(in
millions)
|
|
EPS
|
|
(in
millions)
|
|
EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) earnings,
as reported:
|
$
|
(1.0)
|
|
$
|
(0.09)
|
|
$
|
3.9
|
|
$
|
0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO credit,
after tax at statutory federal rate
|
|
(1.1)
|
|
|
(0.10)
|
|
|
(2.0)
|
|
|
(0.18)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) earnings, excluding LIFO impact
|
$
|
(2.1)
|
|
$
|
(0.19)
|
|
$
|
1.9
|
|
$
|
0.17
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares outstanding
(in
thousands)
|
|
|
|
|
10,816
|
|
|
|
|
|
10,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
March 31,
2014
|
|
March 31,
2013
|
|
|
Income
|
|
Diluted
|
|
Income
|
|
Diluted
|
|
|
(in
millions)
|
|
EPS
|
|
(in
millions)
|
|
EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings, as
reported:
|
|
$
|
13.8
|
|
$
|
1.23
|
|
$
|
41.4
|
|
$
|
3.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO charge
(credit), after tax at statutory federal rate
|
|
13.2
|
|
|
1.19
|
|
|
(2.7)
|
|
|
(0.24)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings, excluding LIFO impact
|
$
|
27.0
|
|
$
|
2.42
|
|
$
|
38.7
|
|
$
|
3.33
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares outstanding
(in
thousands)
|
|
|
|
|
10,819
|
|
|
|
|
|
11,219
|
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,
2014
|
|
March 31,
2013
|
|
(In
thousands)
|
|
|
|
|
Net
earnings
|
$13,779
|
|
$41,413
|
Interest expense, net
of interest income
|
6,262
|
|
7,486
|
Income tax
expense
|
3,563
|
|
22,035
|
Depreciation and
amortization
|
23,281
|
|
23,251
|
Interest
amortization
|
(300)
|
|
(300)
|
EBITDA
|
46,585
|
|
93,885
|
LIFO charge
(credit)
|
20,370
|
|
(4,213)
|
FIFO
EBITDA
|
$66,955
|
|
$89,672
|
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
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Unaudited Condensed
Consolidated Statements of Net Earnings
|
|
|
|
For the Periods Ended
March 31, 2014 and 2013
|
|
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(In thousands of
dollars, except share data)
|
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Quarter
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|
Year-to-Date
|
|
|
|
|
Fiscal
2014
|
|
Fiscal
2013
|
|
Fiscal
2014
|
|
Fiscal
2013
|
|
|
|
|
|
|
|
|
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|
|
|
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|
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|
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|
Net sales
|
$
|
293,759
|
|
$
|
274,922
|
|
$
|
1,340,208
|
|
$
|
1,276,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plant restructuring
expense (note 3)
|
$
|
-
|
|
$
|
987
|
|
$
|
501
|
|
$
|
3,497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating
income, net (note 4)
|
$
|
2,848
|
|
$
|
1,641
|
|
$
|
3,271
|
|
$
|
1,971
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (notes 1 and 2)
|
$
|
2,491
|
|
$
|
7,760
|
|
$
|
23,604
|
|
$
|
70,934
|
|
|
|
Interest expense,
net
|
|
1,463
|
|
|
2,229
|
|
|
6,262
|
|
|
7,486
|
|
|
|
Earnings before
income taxes
|
$
|
1,028
|
|
$
|
5,531
|
|
$
|
17,342
|
|
$
|
63,448
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
2,045
|
|
|
1,620
|
|
|
3,563
|
|
|
22,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss)
|
$
|
(1,017)
|
|
$
|
3,911
|
|
$
|
13,779
|
|
$
|
41,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(loss) attributable to common stock (note 5)
|
$
|
(991)
|
|
$
|
3,780
|
|
$
|
13,318
|
|
$
|
39,984
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
$
|
(0.09)
|
|
$
|
0.35
|
|
$
|
1.24
|
|
$
|
3.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
$
|
(0.09)
|
|
$
|
0.35
|
|
$
|
1.23
|
|
$
|
3.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding basic
|
|
10,744,322
|
|
|
10,758,534
|
|
|
10,746,867
|
|
|
11,146,652
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding diluted
|
|
10,816,242
|
|
|
10,830,864
|
|
|
10,818,787
|
|
|
11,218,982
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1:
|
The effect of the
LIFO inventory valuation method on fourth quarter pre-tax results
was to increase operating earnings by $1,741,000 for the three
month period ended March 31, 2014 and increase operating earnings
$3,037,000 for the three month period ended March 31,
2013.
|
Note 2:
|
The effect of the
LIFO inventory valuation method on year-to-date pre-tax results was
to reduce operating earnings by $20,370,000 for the year ended
March 31, 2014 and increase operating earnings by $4,213,000, for
the year ended March 31, 2013.
|
Note 3:
|
The three month
period ended March 31, 2013 included a restructuring charge for
product rationalization costs of $987,000.
|
Note 4:
|
Other income for the
current year of $3,271,000 represents a gain of $2,873,000 from a
break-up fee earned as a result of being named the stalking horse
bidder in an attempt to acquire Allens, Inc, a $691,000 gain on the
sale of two aircraft and a gain of $75,000 related to adjustments
related to the purchase of Sunnyside. The Company also recorded a
loss of $0.5 million on the disposal of a warehouse located in
Sunnyside, Washington and a net gain of $0.2 from the sale of other
fixed assets.
|
|
Other income for the
prior 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.
|
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.
|
SOURCE Seneca Foods Corporation