Seneca Foods Reports Net Earnings of $6.5 Million for the Quarter Ended September 26, 2015
November 02 2015 - 4:15PM
Seneca Foods Corporation (NASDAQ:SENEA) (NASDAQ:SENEB) reported for
the second quarter of 2016, net earnings of $6.5 million, or $0.65
per diluted share, compared to a net loss of $0.6 million, or
$(0.05) per diluted share, in the fiscal second quarter of
2016. Net sales for the second quarter ended September
26, 2015 increased from the second quarter ended September 27, 2014
by 0.3%, or $1.0 million to $313.2 million. The increase is
attributable to a favorable sales mix and higher selling prices of
$4.0 million partially offset a by a sales volume decrease of $2.9
million.
The Company reported net earnings for the fiscal
six months ended September 26, 2015 of $9.5 million, or $0.94 per
diluted share, compared to a net loss of $0.7 million, or $(0.06)
per diluted share for the same period in the prior year. In the six
months ended September 27, 2014, net sales decreased $12.7 million,
or 2.3% to $539.5 million. The decrease is attributable to a sales
volume decrease of $19.5 million partially offset by favorable
sales mix and higher selling prices of $6.8 million. A major
portion of the lower sales was due to a $7.1 million reduction in
GMOL Vegetable sales.
Net earnings per diluted share were $0.65 during
the quarter ended September 26, 2015 versus $0.30 during the
quarter ended September 27, 2014, which included a non-cash LIFO
charge of $3.9 million. Excluding a non-cash after-tax LIFO credit
of $1.0 million, net earnings per diluted share were $0.84 during
the six months ended September 26, 2015, compared to $0.27 during
the six months ended September 27, 2014 which included a non-cash
LIFO charge of $3.6 million.
About Seneca Foods
CorporationSeneca 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®, 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 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 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 26, 2015 |
|
September 27, 2014 |
|
|
Income |
|
Diluted |
|
Income |
|
Diluted |
|
|
(in millions) |
|
EPS |
|
(in millions) |
|
EPS |
|
|
|
|
|
|
|
|
|
Net earnings (loss), as
reported: |
$ |
|
6.5 |
|
$ |
|
0.65 |
|
$ |
|
(0.6 |
) |
$ |
|
(0.05 |
) |
|
|
|
|
|
|
|
|
|
LIFO charge, after tax
at statutory federal rate |
$ |
|
- |
|
$ |
|
- |
|
$ |
|
3.9 |
|
$ |
|
0.35 |
|
|
|
|
|
|
|
|
|
|
Net earnings, excluding
LIFO impact |
$ |
|
6.5 |
|
$ |
|
0.65 |
|
$ |
|
3.3 |
|
$ |
|
0.30 |
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common
shares outstanding |
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
9,971 |
|
|
|
|
|
10,846 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
September 26, 2015 |
|
September 27, 2014 |
|
|
Income |
|
Diluted |
|
Income |
|
Diluted |
|
|
(in millions) |
|
EPS |
|
(in millions) |
|
EPS |
|
|
|
|
|
|
|
|
|
Net earnings (loss), as
reported: |
$ |
|
9.5 |
|
$ |
|
0.94 |
|
$ |
|
(0.7 |
) |
$ |
|
(0.06 |
) |
|
|
|
|
|
|
|
|
|
LIFO (credit) charge,
after tax at statutory federal rate |
$ |
|
(1.0 |
) |
$ |
|
(0.10 |
) |
$ |
|
3.6 |
|
$ |
|
0.33 |
|
|
|
|
|
|
|
|
|
|
Net earnings, excluding
LIFO impact |
$ |
|
8.5 |
|
$ |
|
0.84 |
|
$ |
|
2.9 |
|
$ |
|
0.27 |
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common
shares outstanding |
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
9,964 |
|
|
|
|
|
10,858 |
|
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, 2015 |
|
September 27, 2014 |
|
|
(In thousands) |
|
Net earnings
(loss) |
$ |
|
9,490 |
|
$ |
|
(685 |
) |
Income tax expense |
|
|
4,834 |
|
|
|
169 |
|
Interest expense, net
of interest income |
|
|
2,962 |
|
|
|
2,486 |
|
Depreciation and
amortization |
|
|
10,487 |
|
|
|
11,142 |
|
Interest
amortization |
|
|
(148 |
) |
|
|
(149 |
) |
EBITDA |
|
|
27,625 |
|
|
|
12,963 |
|
LIFO (credit)
charge |
|
|
(1,587 |
) |
|
|
5,570 |
|
FIFO EBITDA |
$ |
|
26,038 |
|
$ |
|
18,533 |
|
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 (Loss) |
|
|
For the Periods Ended September 26, 2015
and September 27, 2014 |
|
|
(In thousands of dollars, except share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter |
|
Year-to-Date |
|
|
|
|
Fiscal 2016 |
|
Fiscal 2015 |
|
Fiscal 2016 |
|
Fiscal 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
|
313,202 |
|
$ |
|
312,161 |
|
$ |
539,460 |
$ |
|
552,204 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plant restructuring
(expense) income (note 2) |
$ |
|
(15 |
) |
$ |
|
- |
|
$ |
66 |
$ |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating income
(loss) net (note 3) |
$ |
|
67 |
|
$ |
|
85 |
|
$ |
403 |
$ |
|
(194 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (note
1) |
$ |
|
11,432 |
|
$ |
|
686 |
|
$ |
17,372 |
$ |
|
1,684 |
|
|
|
Loss (earnings) from
equity investment |
|
|
86 |
|
|
|
80 |
|
|
86 |
|
|
(286 |
) |
|
|
Interest expense,
net |
|
|
1,590 |
|
|
|
1,417 |
|
|
2,962 |
|
|
2,486 |
|
|
|
Earnings (loss) before
income taxes |
$ |
|
9,756 |
|
$ |
|
(811 |
) |
$ |
14,324 |
$ |
|
(516 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes expense
(benefit) |
|
|
3,234 |
|
|
|
(233 |
) |
|
4,834 |
|
|
169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss) |
$ |
|
6,522 |
|
$ |
|
(578 |
) |
$ |
9,490 |
$ |
|
(685 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
attributable to common stock (note 4) |
$ |
|
6,456 |
|
$ |
|
(576 |
) |
$ |
9,376 |
$ |
|
(684 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share |
$ |
|
0.65 |
|
$ |
|
(0.05 |
) |
$ |
0.95 |
$ |
|
(0.06 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per share |
$ |
|
0.65 |
|
$ |
|
(0.05 |
) |
$ |
0.94 |
$ |
|
(0.06 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding basic |
|
|
9,901,031 |
|
|
|
10,773,646 |
|
|
9,894,729 |
|
|
10,787,129 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding diluted |
|
|
9,970,573 |
|
|
|
10,845,566 |
|
|
9,964,271 |
|
|
10,858,331 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1:
The effect of the LIFO inventory valuation method on second
quarter pre-tax results was to decrease operating earnings by
$50,000 for the three month period ended September 26, 2015 and
decrease operating earnings by $5,919,000 for the three month
period ended September 27, 2014. The effect of the LIFO
inventory valuation method on year-to-date pre-tax results was to
increase operating earnings by $1,587,000 for the six month period
ended September 26, 2015 and decrease operating earnings by
$5,570,000 for the six month period ended September 27, 2014. |
|
Note 2:
The six month period ended September 26, 2015 included a
restructuring credit for product rationalization costs of
$66,000. |
|
Note 3:
Other gain for the six month period ended September 26, 2015 of
$403,000 represents a $200,000 credit related to a contingency
accrual for Prop 65, net gain on the sale of unused fixed
assets of $143,000 and a credit of $60,000 related to an
environmental accrual. Other net loss for the six month period
ended September 27, 2014 of $194,000 represents a $250,000 charge
related to environmental accrual and net gain on the sale of unused
fixed assets of $56,000. |
|
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. |
|
|
|
|
|
|
|
|
|
|
|
|
Contact:
Timothy J. Benjamin, Chief Financial Officer
315-926-8100
Seneca Foods (NASDAQ:SENEB)
Historical Stock Chart
From Mar 2024 to Apr 2024
Seneca Foods (NASDAQ:SENEB)
Historical Stock Chart
From Apr 2023 to Apr 2024