Fiscal 2015 Third-quarter Highlights (% cited vs. year-ago
period amounts, where applicable):
- Diluted EPS from continuing
operations posted a loss of $(2.23) per share as reported, due to
significant non-cash impairment charges, vs. $0.52 a year ago.
After adjusting for items impacting comparability, diluted EPS of
$0.59 this quarter was ahead of expectations and below year-ago
comparable diluted EPS of $0.62.
- Consumer Foods posted flat volume,
and comparable segment operating profit increased.
- Commercial Foods sales and
comparable operating profit grew as the segment posted good
domestic results for Lamb Weston potato operations and good overall
efficiencies.
- Private Brands comparable profits
were substantially below year-ago amounts due to a continued
competitive bidding environment and execution shortfalls. Private
Brands comparable profits are expected to improve in fiscal 2016
and beyond due to execution-related initiatives being
implemented.
- The company recognized pre-tax
noncash impairment charges of approximately $1.3 billion, writing
down Private Brands goodwill and other intangible assets. This
amount is identified as an item impacting comparability.
- Due to the fiscal third quarter EPS
performance, the company has raised fiscal 2015 diluted EPS
expectations to $2.15-$2.19, adjusted for items impacting
comparability.
- The company continues to expect to
repay approximately $1 billion of debt this fiscal year. The
company has repaid more than $600 million of debt so far this
fiscal year, approximately $500 million of which reflects the
utilization of proceeds related to the Ardent Mills transaction.
Other capital allocation goals are unchanged.
- As previously announced, Sean
Connolly began his role as CEO-Elect on March 3, 2015 and becomes
CEO on April 6, 2015.
ConAgra Foods, Inc., (NYSE: CAG) one of North America’s leading
food companies, today reported results for the fiscal 2015 third
quarter ended Feb. 22, 2015. Diluted loss per share from continuing
operations was $(2.23) for the fiscal third quarter 2015, due to a
significant impairment charge, vs. diluted EPS of $0.52 as reported
for the fiscal 2014 third quarter. After adjusting for items
impacting comparability, comparable diluted EPS was $0.59 this
quarter and $0.62 in the year-ago period. Items impacting
comparability are summarized toward the end of this release and
reconciled for Regulation G purposes starting on page 11.
Gary Rodkin, ConAgra Foods’ chief executive officer, said, “We
are pleased with the performance of our Consumer Foods segment and
our domestic Commercial Foods business, as well as the robust
efficiencies we are generating across the company. Our Private
Brands segment, however, is significantly below expectations; we
are in the midst of implementing initiatives to improve execution
to drive better performance starting in fiscal 2016.”
“Given my upcoming retirement from ConAgra Foods, I would like
to thank all of our shareholders for their interest, encouragement,
and support over the last nine years as we have significantly
transformed the company. Over these years, our team made
significant strides culturally, organizationally, operationally,
and in the marketplace, generating consistently strong cash flow
and putting us in a good position to capitalize on the next set of
opportunities. I am very excited that Sean Connolly will be the
company’s next CEO, and I look forward to watching the company’s
progress under his leadership.”
Consumer Foods SegmentBranded food items
sold worldwide in retail channels.
The Consumer Foods segment posted sales of approximately $1.8
billion and operating profit of $274 million, as reported. Sales
declined 2% as reported, with flat volume, a 1% decline in
price/mix, and 1% negative impact from foreign exchange.
- Brands posting sales growth for the
quarter include ACT II, Chef Boyardee, Hebrew National, PAM, PF
Chang’s, Rosarita, and Slim Jim. The company notes good performance
in alternative channels given the focus on those opportunities this
fiscal year.
- The packaging, assortment, product, and
merchandising initiatives designed to improve the performance of
Chef Boyardee, Healthy Choice, and Orville Redenbacher’s are
underway and expected to drive continuously improving
performance.
- Other brand details are provided in the
written Q&A document accompanying this release.
Operating profit of $274 million was 3% above year-ago amounts
as reported. After adjusting for $8 million of net expense in the
current quarter and $4 million of net expense in the year-ago
period from items impacting comparability, current quarter
operating profit of $282 million increased 5% over comparable
year-ago amounts. Advertising expense declined approximately $20
million, reflecting a continually increasing focus on efficiency
and return on investment, as well as a timing shift in which some
spend has been moved from the fiscal third quarter into the fiscal
fourth quarter. Good cost savings and efficiencies more than offset
inflation.
Current quarter comparable operating profit also includes:
- $21 million of negative impact from
certain index hedge losses, discussed in the Hedging Activities
section of this document.
- $8 million of negative impact from
changes in foreign exchange rates.
Commercial Foods SegmentSpecialty
potato, seasonings, blends, flavors, and bakery products, as well
as consumer branded and private branded packaged food items, sold
to foodservice and commercial channels worldwide.
Sales for the Commercial Foods segment were $1 billion, up 1%
vs. year-ago period amounts, and segment operating profit was $145
million, 18% above year-ago period amounts, as reported. After
adjusting for items impacting comparability in the current quarter
and year-ago period, current quarter operating profit increased
4%.
Sales and operating profits for Lamb Weston potato products grew
modestly, largely reflecting good domestic performance, a better
quality raw potato crop, and good operating efficiencies;
collectively, these more than offset lower international results.
International sales and profits were weak, resulting from recent
challenges facing quick-serve restaurant customers in key Asian
markets and the slowdown in shipments from the West Coast port
labor dispute. The West Coast port labor dispute was resolved
toward the end of the company’s fiscal third quarter; the company
expects slower than normal shipments throughout the remainder of
the fiscal year due to the backlog created by the dispute. Profits
for the rest of the Commercial Foods segment grew modestly, largely
reflecting good efficiencies. Comparable segment operating profit
also includes $2 million of negative impact from certain index
hedge losses, discussed in the Hedging Activities section of this
document.
Private BrandsPrivate brand food items
sold in domestic markets.Note: On February 12, 2015 the company
lowered the fiscal 2015 outlook for this segment.
Sales for the Private Brands segment were $1 billion in the
quarter, down 5% from year-ago period amounts, reflecting 7% lower
volume. Overall volume declines for most major product lines -
pasta, cereal, snacks, condiments, and in-store bakery - more than
offset some growth in nutrition bars.
The segment posted an operating loss of $(1.3 billion), as
reported, due to an impairment of goodwill and other intangible
assets. The impairment follows further deterioration in business
results during the fiscal third quarter; as such, the profit
outlook for this segment has been significantly reduced, and it
will take longer than previously expected to manage through the
challenges for this business. After adjusting for $1.3 billion of
net expense from items impacting comparability (most of which are
significant impairment charges) in the current quarter, and $21
million of items impacting comparability in year-ago period
amounts, comparable operating profit declined 44%. Execution
challenges and higher commodity costs, notably in durum wheat and
snack nuts, played a significant role in the comparable profit
decrease; continued volume declines across most categories, largely
reflecting an intense bidding environment, also weighed on
profitability. Pricing initiatives underway should help pass on the
higher commodity costs over time. As previously discussed, the
company is implementing changes focusing on four main areas
designed to improve overall execution and customer
relationships:
- Responsiveness to customer requests for
product modifications, notably graphics changes,
- The speed of commercializing new
items,
- On-time deliveries, fill-rates, and
other core measurements of customer service, and
- The alignment between core functions
driving margins, specifically sales and supply chain, to drive
better cost management when input costs fluctuate.
These initiatives have begun and will continue over the next
several quarters, and are expected to favorably impact business
results starting in fiscal 2016. Comparable segment profit also
includes $6 million of negative impact from certain index hedge
losses, discussed in the Hedging Activities section of this
document.
Hedging Activities
Hedge gains and losses are generally aggregated, and net amounts
are reclassified from unallocated Corporate expense to the
operating segments when the underlying commodity or foreign
currency being hedged is expensed in segment cost of goods sold.
The net of these activities resulted in $6 million of favorable
impact in the current quarter and $52 million of favorable impact
in the year-ago period. The company identifies these amounts as
items impacting comparability within the discussion of unallocated
Corporate results.
Certain hedge amounts recognized directly within segments
this quarter:
As previously disclosed in the company’s fiscal second-quarter
earnings announcement, as part of its ongoing monitoring and
review, the company had determined that changes in correlations
among commodities and certain of its index hedges, exacerbated by
volatility, required the company to change its method of
recognizing certain mark-to-market amounts. The resulting method
involves recognizing the prospective changes in the fair value of
such index hedges directly into segment results as part of the
mark-to-market process, which contrasts with the company’s
historical and ongoing practice of temporarily classifying those
amounts within unallocated Corporate results (discussed above). As
such, the company has recognized approximately $28 million of
expense directly to its operating segments this quarter; without
this change in methodology, most of that expense would have been
temporarily classified within unallocated Corporate expense and
recognized within segment results over the next few quarters. The
$28 million of expense is not identified as an item impacting
comparability. The company has effectively exited the hedge
positions that necessitated this methodology change and does not
expect to have to recognize hedges in this manner in the
foreseeable future.
For its other hedges, the company will continue with its
approach of temporarily classifying hedging results within
unallocated Corporate expense prior to being recognized within
segment results.
Other Items
- Unallocated Corporate amounts were $50
million of expense in the current quarter and $45 million of
expense in the year-ago period. Current-quarter amounts include $6
million of hedge-related benefit and $5 million of net expense from
other items impacting comparability. Year-ago period amounts
include $52 million of hedge-related benefit and $68 million of
expense related to other items impacting comparability. Excluding
these amounts, unallocated Corporate expense was $51 million for
the current quarter and $29 million in the year-ago period. The
increase largely reflects higher employee benefits and incentive
accruals, as well as timing differences (across fiscal quarters)
for certain expenses.
- Equity method investment earnings were
$33 million for the current quarter and $11 million in the year-ago
period; the year-over-year increase mostly reflects the inclusion
of profits for the company’s Ardent Mills joint venture (which are
not in year-ago amounts).
- Net interest expense was $80 million in
the current quarter and $95 million in the year-ago period; the
decrease reflects significant debt repayment.
Capital Items
- The company continues to expect to
repay approximately $1 billion of debt this fiscal year, resulting
in a cumulative debt repayment of approximately $2 billion since
the acquisition of Ralcorp. The company has repaid more than $600
million of debt so far this fiscal year, approximately $500 million
of which reflects the utilization of proceeds related to the Ardent
Mills transaction. Other capital allocation goals are
unchanged.
- Dividends for the quarter totaled $107
million versus $105 million in the year-ago period, reflecting an
increase in shares outstanding.
- The company repurchased approximately 1
million shares of common stock during the quarter for approximately
$38 million.
- For the current quarter, capital
expenditures for property, plant and equipment were $116 million,
compared with $133 million in the year-ago period. The decrease
reflects several significant planned plant expansions and
improvements in the year-ago period. Depreciation and amortization
expense was approximately $145 million for the fiscal third
quarter; this compares with a total of $150 million in the year-ago
period.
Outlook
The company now expects fiscal 2015 diluted EPS, adjusted for
items impacting comparability, to be in the range of $2.15-$2.19.
The company now expects operating cash flow to approximate $1.55
billion, slightly below the prior forecast of $1.6 billion; the
revision reflects higher inventory levels due to certain crop-based
inputs and higher raw material costs. The company continues to
expect to reduce debt by a total of $1 billion in fiscal 2015,
thereby completing its broader debt reduction goals for the fiscal
2013-2015 period.
Major Items Impacting Third-quarter Fiscal 2015 EPS
Comparability
Included in the $(2.23) diluted EPS from continuing operations
for the third quarter of fiscal 2015 (EPS amounts rounded and after
tax). These include references to selling, general, and
administrative (SG&A) expense, and cost of goods sold
(COGS):
- Approximately $2.81 per diluted share
of net expense, or $1,299 million pretax, related to the impairment
of goodwill and other intangible assets in the Private Brands
segment (SG&A) as well as the impact on diluted share
count.
- Approximately $0.03 per diluted share
of net expense, or $22 million pretax, resulting from restructuring
and integration costs. $9 million is classified within the Private
Brands segment ($1 million in COGS, $8 million in SG&A), $8
million is classified within the Consumer Foods segment (all
SG&A), and $5 million of this is classified as unallocated
Corporate expense (SG&A).
- Approximately $0.01 per diluted share
of net benefit, or $6 million pretax, related to the mark-to-market
impact of derivatives used to hedge input costs, temporarily
classified in unallocated Corporate expense. Hedge gains and losses
are generally aggregated, and net amounts are reclassified from
unallocated Corporate expense to the operating segments when the
underlying commodity or foreign currency being hedged is expensed
in segment cost of goods sold.
- Approximately $0.01 per diluted share
of net benefit from favorable adjustments to prior-year tax
credits.
Included in the $0.52 diluted EPS from continuing operations for
the third quarter of fiscal 2014 (EPS amounts rounded and after
tax):
- Approximately $0.08 per diluted share
of net benefit, or $52 million pretax, related to the
mark-to-market impact of derivatives used to hedge input costs,
temporarily classified in unallocated Corporate expense. Hedge
gains and losses are aggregated, and net amounts are reclassified
from unallocated Corporate expense to the operating segments when
the underlying commodity or foreign currency being hedged is
expensed in segment cost of goods sold.
- Approximately $0.08 per diluted share
of net expense, or $55 million pretax, related to the settlement of
interest rate derivative hedges that were initiated in prior years
in anticipation of refinancing debt that matured in the fourth
quarter of fiscal 2014. Based on an assessment of the company’s
debt repayment alternatives, the company decided to forego
refinancing that debt, and therefore recognized the derivative loss
in earnings immediately.
- Approximately $0.06 per diluted share
of net expense, or $38 million pretax, resulting from restructuring
and integration (including acquisition-related restructuring). $21
million of this is classified within the results of the Private
Brands segment (mostly SG&A), $13 million is classified as
unallocated Corporate expense (SG&A), and $4 million is
classified within the Consumer Foods segment (mostly
SG&A).
- Approximately $0.04 per diluted share
of net benefit due to resolving U.S. and foreign tax matters
related to transactions occurring in prior years.
- Approximately $0.02 per diluted share
of net expense, or $17 million pretax, resulting from impairment of
assets in the Commercial Foods segment (SG&A).
- Note: in the third quarter of fiscal
2014, comparable EPS included approximately $0.05 of net
contribution from items previously classified within continuing
operations (primarily profits from flour milling), which have been
reclassified to discontinued operations, as well as rounding.
Discussion of Results
ConAgra Foods will host a conference call at 9:30 a.m. EDT today
to discuss the results. Following the company’s remarks, the call
will include a question-and-answer session with the investment
community. Domestic and international participants may access the
conference call toll-free by dialing 1-877-397-0286 and
1-719-325-4824, respectively. No confirmation or pass code is
needed. This conference call also can be accessed live on the
Internet at http://investor.conagrafoods.com.
A rebroadcast of the conference call will be available after 1
p.m. EDT today. To access the digital replay, a pass code number
will be required. Domestic participants should
dial 1-888-203-1112, and international participants should
dial 1-719-457-0820 and enter pass code 9593616. A rebroadcast also
will be available on the company’s website.
In addition, the company has posted a question-and-answer
supplement relating to this release at
http://investor.conagrafoods.com. To view recent company news,
please visit http://media.conagrafoods.com.
ConAgra Foods, Inc., (NYSE: CAG) is one of North America's
largest packaged food companies with branded and private branded
food found in 99 percent of America’s households, as well as a
strong commercial foods business serving restaurants and
foodservice operations globally. Consumers can find recognized
brands such as Banquet®, Chef Boyardee®, Egg Beaters®, Healthy
Choice®, Hebrew National®, Hunt's®, Marie Callender's®, Orville
Redenbacher's®, PAM®, Peter Pan®, Reddi-wip®, Slim Jim®, Snack
Pack® and many other ConAgra Foods brands, along with food sold by
ConAgra Foods under private brand labels, in grocery, convenience,
mass merchandise, club and drug stores. Additionally, ConAgra Foods
supplies frozen potato and sweet potato products as well as other
vegetable, spice, bakery and grain products to commercial and
foodservice customers. ConAgra Foods operates ReadySetEat.com, an
interactive recipe website that provides consumers with easy dinner
recipes and more. For more information, please visit us at
www.conagrafoods.com.
Note on Forward-looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements are based on management’s
current expectations and are subject to uncertainty and changes in
circumstances. These risks and uncertainties include, among other
things: ConAgra Foods’ ability to realize the synergies and
benefits contemplated by the acquisition of Ralcorp and its ability
to promptly and effectively integrate the business of Ralcorp;
ConAgra Foods’ ability to realize the synergies and benefits
contemplated by the Ardent Mills joint venture; risks and
uncertainties associated with intangible assets, including any
future goodwill or intangible assets impairment charges; the
availability and prices of raw materials, including any negative
effects caused by inflation or weather conditions; the
effectiveness of ConAgra Foods’ product pricing, including product
innovation, any pricing actions and changes in promotional
strategies; the ultimate outcome of litigation, including
litigation related to the lead paint and pigment matters; future
economic circumstances; industry conditions; the effectiveness of
ConAgra Foods’ hedging activities, including volatility in
commodities that could negatively impact ConAgra Foods’ derivative
positions and, in turn, ConAgra Foods’ earnings; ConAgra Foods’
ability to execute its operating and restructuring plans and
achieve operating efficiencies; the success of ConAgra Foods’
cost-saving initiatives, innovation, and marketing investments; the
competitive environment and related market conditions; the ultimate
impact of any ConAgra Foods’ product recalls; access to capital;
actions of governments and regulatory factors affecting ConAgra
Foods’ businesses, including the Patient Protection and Affordable
Care Act; the amount and timing of repurchases of ConAgra Foods’
common stock and debt, if any; the longshoremen labor dispute on
the U.S. West Coast and its impact on ConAgra Foods’ exports; and
other risks described in ConAgra Foods’ reports filed with the
Securities and Exchange Commission, including its most recent
annual report on Form 10-K and subsequent reports on Forms 10-Q and
8-K. Investors and security holders are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date they are made. ConAgra Foods disclaims any
obligation to update or revise statements contained in this press
release to reflect future events or circumstances or otherwise.
Regulation G Disclosure
Below is a reconciliation of Q3 FY15 and
Q3 FY14 diluted earnings per share from continuing operations,
Consumer Foods segment operating profit, Commercial Foods segment
operating profit, and Private Brands segment operating profit,
adjusted for items impacting comparability. Amounts may be impacted
by rounding.
Q3 FY15 & Q3 FY14 Diluted EPS from Continuing
Operations Q3 FY15 Q3 FY14 % change
Diluted EPS from continuing operations $ (2.23
) $ 0.52 N/A Items impacting
comparability: Net expense related to impairment of goodwill and
other intangible assets, including the impact on diluted share
count 2.81 - Net expense related to restructuring, transaction, and
integration costs 0.03 0.06
Net benefit related to unallocated
mark-to-market impact of derivatives
(0.01 ) (0.08 ) Net benefit related to unusual tax matters (0.01 )
(0.04 ) Net expense related to settlement of interest rate
derivatives - 0.08 Net expense related to impairment costs in the
Commercial Foods segment - 0.02 Rounding -
0.01
Diluted EPS from continuing operations, adjusted for
items impacting comparability $ 0.59 $
0.57 Net EPS contribution previously within continuing
operations and subsequently reclassified to discontinued
operations: From milling operations - 0.05
Diluted EPS adjusted for items impacting
comparability $ 0.59 $ 0.62
-5 % Consumer Foods Segment
Operating Profit Reconciliation (Dollars in millions)
Q3 FY15 Q3 FY14 % change Consumer Foods
Segment Operating Profit $ 274 $
265 3 % Restructuring, integration, and
transactions costs 8 4
Consumer Foods Segment Adjusted Operating Profit $
282 $ 269 5 %
Commercial Foods Segment Operating Profit
Reconciliation (Dollars in millions)
Q3 FY15
Q3 FY14 % change Commercial Foods Segment
Operating Profit $ 145 $ 123
18 % Net expense related to impairment costs -
17
Commercial Foods Segment Adjusted
Operating Profit $ 145 $ 139
4 % Private Brands Segment
Operating Profit Reconciliation (Dollars in millions)
Q3 FY15 Q3 FY14 % change Private Brands
Segment Operating Profit (Loss) $ (1,272 )
$ 45 N/A Restructuring, integration, and
transactions costs 9 21 Impairment of goodwill and other intangible
assets 1,299 -
Private Brands
Segment Adjusted Operating Profit $ 37
$ 66 -44 % ConAgra
Foods, Inc. Segment Operating Results (in millions) (unaudited)
THIRD QUARTER Thirteen weeks ended Thirteen weeks
ended February 22, 2015 February 23, 2014 Percent Change
SALES Consumer Foods $ 1,835.2 $ 1,870.3 (1.9
)% Commercial Foods 1,028.3 1,013.7 1.4 % Private Brands
1,013.2 1,063.3 (4.7 )% Total 3,876.7
3,947.3 (1.8 )%
OPERATING PROFIT (LOSS) Consumer Foods $ 274.2
$ 265.1 3.4 % Commercial Foods 145.2 122.7 18.3 % Private Brands
(1,271.6 ) 44.7
N/A
Total operating profit (loss) for segments (852.2 ) 432.5
N/A
Reconciliation of total operating profit (loss) to income
from continuing operations before income taxes and equity method
investment earnings Items excluded from segment operating
profit (loss): General corporate expense (50.1 ) (44.3 ) 13.1 %
Interest expense, net (80.3 ) (95.0 ) (15.5 )% Income
(loss) from continuing operations before income taxes and equity
method investment earnings $ (982.6 ) $ 293.2
N/A
Segment operating profit (loss) excludes
general corporate expense, equity method investment earnings, and
net interest expense. Management believes such amounts are not
directly associated with segment performance results for the
period. Management believes the presentation of total operating
profit for segments facilitates period-to-period comparison of
results of segment operations.
ConAgra Foods, Inc. Segment Operating Results (in
millions) (unaudited) THIRD QUARTER Thirty-nine weeks
Thirty-nine weeks ended ended February 22, 2015 February 23,
2014 Percent Change
SALES Consumer Foods $
5,444.7 $ 5,536.0 (1.6 )% Commercial Foods 3,237.4 3,182.4 1.7 %
Private Brands 3,045.6 3,165.8 (3.8 )%
Total 11,727.7 11,884.2 (1.3 )%
OPERATING PROFIT (LOSS) Consumer Foods $ 765.9
$ 716.0 7.0 % Commercial Foods 414.4 387.5 6.9 % Private Brands
(1,432.0 ) 200.0
N/A
Total operating profit (loss) for segments (251.7 ) 1,303.5
N/A
Reconciliation of total operating profit (loss) to income
from continuing operations before income taxes and equity method
investment earnings Items excluded from segment operating
profit (loss): General corporate expense (282.9 ) (254.6 ) 11.1 %
Interest expense, net (243.3 ) (286.3 ) (15.0 )%
Income (loss) from continuing operations before income taxes and
equity method investment earnings $ (777.9 ) $ 762.6
N/A
Segment operating profit (loss) excludes
general corporate expense, equity method investment earnings, and
net interest expense. Management believes such amounts are not
directly associated with segment performance results for the
period. Management believes the presentation of total operating
profit for segments facilitates period-to-period comparison of
results of segment operations.
ConAgra Foods, Inc. Consolidated Statements of
Earnings (in millions) (unaudited) THIRD QUARTER Thirteen
weeks ended Thirteen weeks ended February 22, 2015
February 23, 2014 Percent Change Net sales $ 3,876.7 $ 3,947.3 (1.8
)% Costs and expenses: Cost of goods sold 3,052.9 3,024.2 0.9 %
Selling, general and administrative expenses 1,726.1 534.9 222.7 %
Interest expense, net 80.3 95.0 (15.5
)% Income (loss) from continuing operations before income taxes and
equity method investment earnings (982.6 ) 293.2 N/A Income
tax expense 2.5 78.2 (96.8 )% Equity method investment earnings
33.0 11.1 197.3 % Income (loss) from
continuing operations (952.1 ) 226.1 N/A Income (loss) from
discontinued operations, net of tax (0.6 ) 10.8
N/A Net income (loss) $ (952.7 ) $ 236.9 N/A Less:
Net income attributable to noncontrolling interests 1.4
2.6 (46.2 )% Net income (loss) attributable to
ConAgra Foods, Inc. $ (954.1 ) $ 234.3 N/A Earnings
(loss) per share - basic Income (loss) from continuing
operations $ (2.23 ) $ 0.53 N/A Income from discontinued operations
— 0.03 (100.0 )% Net income (loss)
attributable to ConAgra Foods, Inc. $ (2.23 ) $ 0.56 N/A
Weighted average shares outstanding 427.1
421.2 1.4 % Earnings (loss) per share -
diluted Income (loss) from continuing operations $ (2.23 ) $
0.52 N/A Income from discontinued operations —
0.03 (100.0 )% Net income (loss) attributable to ConAgra
Foods, Inc. $ (2.23 ) $ 0.55 N/A Weighted average
share and share equivalents outstanding 427.1
427.3 (0.1 )% ConAgra Foods, Inc. Consolidated
Statements of Earnings (in millions) (unaudited) THIRD
QUARTER Thirty-nine weeks Thirty-nine weeks ended
ended February 22, 2015 February 23, 2014 Percent Change Net sales
$ 11,727.7 $ 11,884.2 (1.3 )% Costs and expenses: Cost of goods
sold 9,311.6 9,209.2 1.1 % Selling, general and administrative
expenses 2,950.7 1,626.1 81.5 % Interest expense, net 243.3
286.3 (15.0 )% Income (loss) from continuing
operations before income taxes and equity method investment
earnings (777.9 ) 762.6 N/A Income tax expense 129.0 213.1
(39.5 )% Equity method investment earnings 92.6
20.4 353.9 % Income (loss) from continuing operations
(814.3 ) 569.9 N/A Income from discontinued operations, net of tax
362.0 66.6 443.5 % Net income (loss) $
(452.3 ) $ 636.5 N/A Less: Net income attributable to
noncontrolling interests 9.5 9.2 3.3 %
Net income (loss) attributable to ConAgra Foods, Inc. $ (461.8 ) $
627.3 N/A Earnings (loss) per share - basic
Income (loss) from continuing operations $ (1.94 ) $ 1.33 N/A
Income from discontinued operations 0.85 0.16
431.3 % Net income (loss) attributable to ConAgra Foods,
Inc. $ (1.09 ) $ 1.49 N/A Weighted average shares
outstanding 425.5 421.1 1.1 %
Earnings (loss) per share - diluted Income (loss) from
continuing operations $ (1.94 ) $ 1.31 N/A Income from discontinued
operations 0.85 0.15 466.7 % Net income
(loss) attributable to ConAgra Foods, Inc. $ (1.09 ) $ 1.46
N/A Weighted average share and share equivalents outstanding
425.5 427.4 (0.4 )%
ConAgra Foods, Inc. Consolidated Balance Sheet (in millions)
(unaudited) February 22, 2015 May 25, 2014
ASSETS
Current assets Cash and cash equivalents $ 137.3 $ 141.3
Receivables, less allowance for doubtful accounts of $5.0 and $4.0
1,050.7 1,058.4 Inventories 2,379.8 2,077.0 Prepaid expenses and
other current assets 355.5 322.4 Current assets held for sale —
631.7 Total current assets 3,923.3 4,230.8 Property,
plant and equipment, net 3,579.9 3,636.0 Goodwill 6,305.0 7,828.5
Brands, trademarks and other intangibles, net 3,062.8 3,204.9 Other
assets 997.9 267.3 Noncurrent assets held for sale — 198.9
$ 17,868.9 $ 19,366.4
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities
Notes payable $ 442.0 $ 141.8 Current installments of long-term
debt 1,008.9 84.1 Accounts payable 1,334.4 1,349.3 Accrued payroll
184.7 154.3 Other accrued liabilities 746.9 748.1 Current
liabilities held for sale — 164.8 Total current
liabilities 3,716.9 2,642.4 Senior long-term debt, excluding
current installments 6,723.4 8,571.5 Subordinated debt 195.9 195.9
Other noncurrent liabilities 2,694.1 2,599.4 Noncurrent liabilities
held for sale — 2.0 Total stockholders' equity 4,538.6
5,355.2 $ 17,868.9 $ 19,366.4
ConAgra Foods, Inc. and Subsidiaries Condensed
Consolidated Statements of Cash Flows
(in millions)
(unaudited)
Thirty-nine weeks ended February 22,
February 23, 2015 2014 Cash flows from
operating activities: Net income (loss) $ (452.3 ) $ 636.5 Income
from discontinued operations 362.0 66.6
Income (loss) from continuing operations (814.3 ) 569.9 Adjustments
to reconcile income from continuing operations to net cash flows
from operating activities: Depreciation and amortization 442.9
427.5 Asset impairment charges 1,555.7 34.5 Earnings of affiliates
in excess of distributions (56.7 ) (2.7 ) Share-based payments
expense 46.4 45.5 Contributions to pension plans (10.0 ) (13.7 )
Pension expense (10.8 ) (6.7 ) Terminated forward starting swap
payable — 54.9 Other items 27.8 0.6 Change in operating assets and
liabilities excluding effects of business acquisitions and
dispositions: Accounts receivable 14.2 (8.0 ) Inventory (299.2 )
(168.2 ) Deferred income taxes and income taxes payable, net (110.7
) 45.8 Prepaid expenses and other current assets (48.8 ) (27.5 )
Accounts payable (7.7 ) 48.4 Accrued payroll 37.0 (114.0 ) Other
accrued liabilities (32.4 ) (0.1 ) Net cash flows
from operating activities — continuing operations 733.4 886.2 Net
cash flows from operating activities — discontinued operations
7.1 81.8 Net cash flows from operating
activities 740.5 968.0 Cash flows from
investing activities: Additions to property, plant and equipment
(318.4 ) (475.2 ) Sale of property, plant and equipment 19.9 15.0
Purchase of business, net of cash acquired (74.7 ) (39.9 ) Return
of investment in equity method investee 391.4
— Net cash flows from investing activities — continuing
operations 18.2 (500.1 ) Net cash flows from investing activities —
discontinued operations 114.0 30.6 Net
cash flows from investing activities 132.2
(469.5 ) Cash flows from financing activities: Net short-term
borrowings 284.1 (39.3 ) Issuance of long-term debt 550.0 —
Repayment of long-term debt (1,492.9 ) (71.2 ) Repurchase of
ConAgra Foods, Inc. common shares (35.1 ) (100.0 ) Cash dividends
paid (318.2 ) (315.5 ) Exercise of stock options and issuance of
other stock awards 113.8 87.4 Other items (12.5 ) —
Net cash flows from financing activities: (910.8 )
(438.6 ) Effect of exchange rate changes on cash and cash
equivalents (7.7 ) (4.6 ) Net change in cash and cash equivalents
(45.8 ) 55.3 Discontinued operations cash activity included above:
Add: Cash balance included in assets held for sale at beginning of
period 41.8 33.0 Less: Cash balance included in assets held for
sale at end of period — 33.7 Cash and cash equivalents at beginning
of period 141.3 150.9 Cash and cash
equivalents at end of period $ 137.3 $ 205.5
ConAgra Foods, Inc.MediaTeresa Paulsen,
402-240-5210Vice President, Communication & External
RelationsorAnalystsChris Klinefelter, 402-240-4154Vice
President, Investor Relationswww.conagrafoods.com
ConAgra Brands (NYSE:CAG)
Historical Stock Chart
From Mar 2024 to Apr 2024
ConAgra Brands (NYSE:CAG)
Historical Stock Chart
From Apr 2023 to Apr 2024