EX-99.1 3 v90363exv99w1.txt EXHIBIT 99.1 Exhibit 99.1 Press Release [SEMINIS LOGO] SEMINIS INC. -------------------------------------------------------------------------------- CONTACT: Enrique Osorio 805-647-1572 enrique.osorio@seminis.com Patrick Turner 805-647-1572 patrick.turner@seminis.com SEMINIS REPORTS SECOND QUARTER AND SIX MONTH RESULTS OXNARD, Calif. -- May 13, 2003 - Seminis, Inc., the world's largest developer, producer and marketer of vegetable and fruit seeds, yesterday reported final results for the three-month and six-month periods ended March 28, 2003. The company released preliminary second quarter results late last month due to filing requirements of its majority shareholder, Savia S.A. de C.V. RESULTS FOR THE THREE-MONTH PERIOD ENDED MARCH 28, 2003 As previously announced, net sales for the three months ended March 28, 2003 were $159.0 million compared to $152.3 million for the same period last year. This represents an increase of 4.4% from the same period last year. The increase was primarily due to increased sales in Europe, the Middle East and Africa as a result of favorable exchange rate fluctuations in the region. Gross profit increased to $101.0 million or 63.5% of sales compared to $95.9 million or 62.9% for the same period last year. This increase was primarily due to the successful implementation of new pricing strategies and product mix optimization. Operating expenses in the reported period increased by $5.2 million to $63.6 million, compared to $58.4 million for the same period last year, an increase of 8.9%. This increase was primarily due to an employee severance accrual as well as increases in legal and administrative fees related to the transaction proposed by Savia S.A. de C.V. and Fox Paine & Company, LLC in December 2002. Operating income for the period was $39.0 million compared to $41.8 million for the same period last year, a decrease of $2.9 million or 6.8%. This change differs from the 3.1% or $1.2 million dollar increase highlighted in the preliminary results published April 30, 2003 due to a reclassification of a gain related to the divestiture of a non-core business in fiscal year 2002 that was previously classified as non-operating income. Net income for the period was $24.0 million compared to $25.7 million during the same quarter last year. Net income available for common shareholders was $19.4 million or $0.30 per share compared to $21.0 million or $0.34 per share during the same period last year. The total outstanding syndicated bank debt as of March 28, 2003 was $223.3 million compared to $258.7 million as of March 29, 2002, a reduction of $35.4 million or 11.1%. Seminis Chairman and Chief Executive Officer, Mr. Alfonso Romo, commented: "These results are a testament to the strong fundamentals of the Seminis business model and the financial soundness of the company. We continue to improve our cash flow generation capabilities while at the same time reducing our bank debt. In fact, we continue to earn the confidence of our creditors by meeting and exceeding our financial covenants. Our team has a clear sense of direction, and we have focused our attention on growing the business." RESULTS FOR THE SIX-MONTH PERIOD ENDING MARCH 28, 2003 Total sales for the six months ended March 28, 2003 increased 3.1% to $239.6 million from $232.4 million during the same period last year. Net seed sales reached $230.8 million during the six-month period, an increase of 4.0% compared to $221.9 million for the same period of last year. The increase was primarily due to favorable currency fluctuations. Gross profit for the period increased to 63.2%, from 62.7% for the same period last year, partly due to the previously stated new pricing strategies and improved product mix. Total operating expenses for the period increased by 2.8% to $121.6 million, from $118.3 million for the same period last year, primarily due to the previously mentioned increase in operating expenses during the three-month period ended March 28,2003. Operating income for the period decreased to $30.9 million, down 5.3% from $32.6 million for the same period last year. Net income available to common shareholders for the period was $3.1 million or $0.05 per share compared with a net loss available to common shareholders of $2.9 million, or $0.05 per share for the same period year. The increase in net income available to shareholders was primarily due to an overall increase in profitability as well as favorable currency. Total outstanding syndicated bank debt was reduced by $6.4 million during the six months ended March 28, 2003. Mr. Romo said: "With a stronger balance sheet, we can continue to extend our reach into new markets, such as Asia, and further consolidate our leadership position in Europe and North America. Our R&D organization continues to drive innovations in our industry, offering new opportunities for Seminis and the food industry as well as healthier, more nutritious, and more convenient products for consumers. " ABOUT SEMINIS Seminis, Inc. is the largest developer, producer and marketer of vegetable and fruit seeds in the world. The company uses seeds as the delivery vehicle for innovative agricultural technology. Its products are designed to reduce the need for agricultural chemicals, increase crop yield, reduce spoilage, offer longer shelf life, create better tasting foods and foods with better nutritional content. Seminis has established a worldwide presence and global distribution network that spans 150 countries and territories. Safe Harbor Statement: All statements in this press release other than statements of historical facts are "forward-looking" statements, including without limitation statements regarding the company's financial position, business strategy, plans, and objectives of management and industry conditions. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. The following factors, among others, may affect the company's actual results and could cause such results to differ materially from those expressed in any forward-looking statements made by or on behalf of the company: competitive factors, agribusiness risks, governmental and economic risks associated with foreign operations, commercial success of new products, proprietary protection of and advances in technology, possible need for additional financing. Further information on the factors that could affect the company's financial results is contained in the company's latest 10-K filed with the Securities and Exchange Commission. <> SEMINIS, INC. CONSOLIDATED BALANCE SHEETS (IN THOUSANDS)
AS OF AS OF MARCH 28, SEPTEMBER 30, 2003 2002 ---- ---- (UNAUDITED) ASSETS: Current assets Cash and cash equivalents $ 34,901 $ 36,805 Accounts receivable, net 178,788 140,315 Inventories 271,174 272,527 Prepaid expenses and other current assets 4,876 2,427 -------- -------- Total current assets 489,739 452,074 Property, plant and equipment, net 161,547 168,729 Goodwill, net 97,578 98,931 Intangible assets, net 56,520 61,872 Other assets 22,884 18,391 -------- -------- $828,268 $799,997 ======== ======== LIABILITIES, MANDATORILY REDEEMABLE STOCK AND STOCKHOLDERS' EQUITY: Current liabilities Short-term borrowings $ 40,990 $ 28,532 Current maturities of long-term debt 226,720 21,709 Accounts payable 31,375 38,179 Accrued liabilities 108,667 98,624 -------- -------- Total current liabilities 407,752 187,044 Long-term debt 15,379 228,293 Deferred income taxes 16,503 15,753 Minority interest in subsidiaries 1,436 1,902 -------- -------- Total liabilities 441,070 432,992 -------- -------- Commitments and contingencies Total mandatorily redeemable stock 30,500 29,500 -------- -------- Total stockholders' equity 356,698 337,505 -------- -------- $828,268 $799,997 ======== ========
SEMINIS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA)
FOR THE THREE MONTHS ENDED FOR THE SIX MONTHS ENDED MAR 28, MAR 29, MAR 28, MAR 29, ------- ------- ------- ------- 2003 2002 2003 2002 ---- ---- ---- ---- (Unaudited) (Unaudited) (Unaudited) (Unaudited) Net sales $ 159,001 $ 152,309 $ 239,617 $ 232,388 Cost of goods sold 58,008 56,458 88,241 86,744 --------- --------- --------- --------- Gross profit 100,993 95,851 151,376 145,644 --------- --------- --------- --------- Research and development expenses 10,953 9,611 22,378 21,510 Selling, general and administrative expenses 48,637 44,621 91,337 88,528 Amortization of intangible assets 3,966 4,144 7,893 8,302 --------- --------- --------- --------- Total operating expenses 63,556 58,376 121,608 118,340 --------- --------- --------- --------- Gain on sale of assets 1,537 4,359 1,091 5,275 --------- --------- --------- --------- Income from operations 38,974 41,834 30,859 32,579 Other expense Interest expense, net (8,445) (6,932) (14,935) (14,102) Other, net 529 (3,066) 476 (4,652) --------- --------- --------- --------- Total non-operating expense (7,916) (9,998) (14,459) (18,754) --------- --------- --------- --------- Income before income taxes 31,058 31,836 16,400 13,825 Income tax expense (7,018) (6,182) (4,140) (7,482) --------- --------- --------- --------- Net income 24,040 25,654 12,260 6,343 Preferred stock dividends (4,661) (3,497) (9,184) (6,927) Additional capital contribution dividends -- (1,164) -- (2,303) --------- --------- --------- --------- Net income (loss) available for common stockholders $ 19,379 $ 20,993 $ 3,076 $ (2,887) ========= ========= ========= ========= Net income (loss) available for common stockholders per common share: --------- --------- --------- --------- Basic $ 0.30 $ 0.34 $ 0.05 $ (0.05) ========= ========= ========= ========= --------- --------- --------- --------- Diluted $ 0.29 $ 0.33 $ 0.05 $ (0.05) ========= ========= ========= =========
SEMINIS INC. NET SEED SALES CURRENCY STATED AT ACTUAL EXCHANGE RATES (IN US MILLION $)
SECOND QUARTER ENDED SIX MONTHS ENDED -------------------- ---------------- FY 2003 FY 2002 % CHANGE FY 2003 FY 2002 % CHANGE ------- ------- -------- ------- ------- -------- North America $ 53.0 $ 53.3 -0.5% $ 84.9 $ 85.7 -0.9% EUROPE & MIDDLE EAST 74.2 63.7 16.5% 106.5 90.1 18.2% FAR EAST 17.7 21.0 -16.0% 26.8 31.5 -15.0% SOUTH AMERICA 8.3 8.8 -5.8% 12.6 14.5 -13.5% ------ ------ ------ ------ ------ ----- TOTAL SEED SALES $153.3 $146.9 4.4% $230.8 $221.9 4.0% ====== ====== ====== ====== ====== =====