-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, LSZfpVvUQQ7O4CwCnqMWLenUMDr6LldXTrFO0wQ3Q+V5YvN7TIDSK0rhOtIGe6xR PBIiKOKzuIUhUdPcgUnMBA== 0000912057-94-001615.txt : 19940601 0000912057-94-001615.hdr.sgml : 19940601 ACCESSION NUMBER: 0000912057-94-001615 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940331 FILED AS OF DATE: 19940509 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BEMIS CO INC CENTRAL INDEX KEY: 0000011199 STANDARD INDUSTRIAL CLASSIFICATION: 2670 IRS NUMBER: 430178130 STATE OF INCORPORATION: MO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-05277 FILM NUMBER: 94526706 BUSINESS ADDRESS: STREET 1: 222 S 9TH ST STE 2300 CITY: MINNEAPOLIS STATE: MN ZIP: 55402-4099 BUSINESS PHONE: 6123763000 10-Q 1 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OF THE SECURITIES EXCHANGE ACT OF 1934 For the Three Months Ended March 31, 1994 Commission File Number 0-1387 BEMIS COMPANY, INC. (Exact name of registrant as specified in its charter) Missouri 43-0178130 (State or other jurisdiction of (I.R.S. Employer incorporation or organization Identification No.) 222 South 9th Street, Suite 2300 Minneapolis, Minnesota 55402-4099 (Address of principal executive offices) (Zip Code) Registrant's telephone number including area code (612) 376-3000 Indicate by check mark whether the registrant has filed all reports required to be filed by Section 13 of the Securities Exchange Act of 1934 during the preceding 12 months and has been subject to such filing requirements for the past 90 days. YES X NO ------ ------ Aggregate market value of the voting stock held by non-affiliates of the registrant 51,211,326 shares at $23.875 per share as of May 5, 1994 - $1,222,670,000 PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS The financial statements (enclosed as Exhibit 21) are incorporated by reference in this Form 10-Q. In the option of management, the financial statements reflect all adjustments necessary to a fair statement of the results for the three months ended March 31, 1994. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Net Sales for the first quarter of 1994 were $323.3 million compared to $292.6 million for the first quarter of 1993, an increase of 10.5% or $30.7 million. Net Income was $13.6 million for the first quarter of 1994 and $10.7 million for the same quarter in 1993, an increase of 26.4%. These results continue the trend of stronger operating performance that began in the fourth quarter last year. The improvement came primarily from increased demand for our products in all major segments of the business. Recent acquisitions and our restructuring program also contributed to better results. In the first quarter of 1994, The Company completed the previously announced acquisitions of Fitchburg Coated Products and Hargro Health Care Packaging. Excluding noncomparable operating results of business acquisitions and dispositions from both 1994 and 1993, Sales showed an increase of $15.1 million or 5.4% and operating profit showed an increase of $5.6 million or 26.2%. Net Sales and operating income improved for both the Flexible Packaging and the Specialty Coated and Graphics Products Lines of Business because of increased product demand and business acquisitions or dispositions made in the first quarter of 1994 or 1993. Excluding this non-comparable operating results from both 1994 and 1993 shows that Net Sales and operating profit increased 6.7% and 23.9%, respectively, for the Flexible Packaging segment and 1.8% and 32.8% , respectively, for the Specialty Coated and Graphics Products segment. Addressing the Statement of Income line item changes of consequence: Cost of Products sold increased 9.7% on total sales increases of 10.5%. Improvements in manufacturing efficiencies which resulted in lower manufacturing cost, expressed as a percent of sales, more than offset increased material cost of sales. The Interest Expense decrease of 13.1% or $.2 million relates entirely to lower effective interest rates in the current quarter. Other Income decreased $.8 million largely due to non-recurring gains on business sales which occurred in the first quarter of 1993. - 2 - PART I - FINANCIAL INFORMATION Pretax Income increased $5.0 million or 29.7% while Income Tax expense increased $2.2 million or 35.5%. The effective tax rate for the first quarter of 1994 and 1993 was 38% and 37%, respectively. The $40.9 million increase in long-term debt together with the general increase in nearly all balance sheet line items is attributable to the increased business activity resulting from business acquisitions and an increase in sales of our products in all major business segments. FINANCIAL CONDITION A statement of cash flow for the three months ended March 31, 1994 is as follows:
MILLIONS CASH FLOWS FROM OPERATING ACTIVITIES: Net income $13.6 Non-cash items: Depreciation and amortization 13.3 Minority interest .6 Deferred income taxes, non-current portion .5 Net decrease in working capital items, net of affects of business acquisitions 5.1 Net change in deferred charges and credits (4.1) ------ Net cash provided by operating activities 29.0 Cash flows from investing activities: Additions to property and equipment (27.1) Business acquisitions (33.2) Other .2 ------ Net cash used in investing activities (60.1) Cash flows from financing activities: Increase in long-term debt 40.6 Decrease in short-term (.2) Cash dividends paid (6.9) Other .1 ------ Net cash used by financing activities 33.6 Effect of exchange rates .4 Net increase in cash $ 2.9 ------ ------
- 3 - PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS There have been no significant changes during the three months ended March 31, 1994. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K Exhibit 21 - Financial Statements Furnished to Security Holders SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. BEMIS COMPANY, INC. Date May 6, 1994 S\ LeRoy F. Bazany --------------------------------- LeRoy F. Bazany, Vice President and Controller Date May 6, 1994 S\ Benjamin R. Field, III --------------------------------- Benjamin R. Field, III, Senior Vice President, Chief Financial Officer and Treasurer - 4 - EX-21 2 EX-21 EXHIBIT 21 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS BEMIS COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME (in thousands except per share amounts)
Three Months Ended March 31 ------------------- 1994 1993 -------------------- Net sales. . . . . . . . . . . . . . . . . . . . . . . $ 323,277 $ 292,628 Costs and expenses: Cost of products sold . . . . . . . . . . . . . . . 250,978 228,844 Selling, general and administrative expenses. . . . 44,494 41,758 Research and development. . . . . . . . . . . . . . 3,798 3,542 Interest expense. . . . . . . . . . . . . . . . . . 1,616 1,859 Other income. . . . . . . . . . . . . . . . . . . . (199) (990) Minority interest in net income . . . . . . . . . . 602 667 --------- --------- Income before income taxes . . . . . . . . . . . . . . 21,988 16,948 Taxes based on income - cash. . . . . . . . . . . . 7,962 9,185 Taxes based on income - deferred. . . . . . . . . . 438 (2,985) --------- --------- Net income . . . . . . . . . . . . . . . . . . . . . . $ 13,588 $ 10,748 --------- --------- --------- --------- Earnings per share of common stock . . . . . . . . . . $.26 $.21 ---- ---- ---- ---- Cash dividends paid. . . . . . . . . . . . . . . . . . $.135 $.125 ----- ----- ----- ----- Average common shares and common stock equivalents outstanding . . . . . . . . . . . 51,890 51,773 ------ ------ ------ ------
EXHIBIT 21 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS BEMIS COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (in thousands of dollars)
Mar 31 Dec 31 ASSETS 1994 1993 ------ ------ ------ Cash . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,811 $ 8,911 Accounts receivable - net. . . . . . . . . . . . . . . 177,067 161,695 Inventories. . . . . . . . . . . . . . . . . . . . . . 145,106 127,123 Prepaid expenses and deferred charges. . . . . . . . . 42,359 39,280 --------- --------- Total current assets. . . . . . . . . . . . . . . 376,343 337,009 --------- --------- Property and equipment, net. . . . . . . . . . . . . . 444,288 414,888 Excess of cost of investments in subsidiaries over net assets acquired . . . . . . . 29,801 24,814 Other assets . . . . . . . . . . . . . . . . . . . . . 13,338 13,056 --------- --------- Total. . . . . . . . . . . . . . . . . . . . . . . 43,139 37,870 --------- --------- TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . $863,770 $789,767 --------- --------- --------- --------- LIABILITIES AND STOCKHOLDERS' EQUITY Short-term borrowings. . . . . . . . . . . . . . . . . $ 789 $ Current portion of long-term debt. . . . . . . . . . . 3,166 4,035 Accounts payable . . . . . . . . . . . . . . . . . . . 158,854 138,243 Accrued salaries and wages . . . . . . . . . . . . . . 25,694 22,015 Accrued income and other taxes . . . . . . . . . . . . 23,914 19,896 --------- --------- Total current liabilities. . . . . . . . . . . . . 212,417 184,189 Long-term debt, less current portion . . . . . . . . . 164,104 123,215 Deferred taxes . . . . . . . . . . . . . . . . . . . . 36,241 35,813 Other liabilities and deferred credits . . . . . . . . 50,745 54,602 --------- --------- Total liabilities . . . . . . . . . . . . . . . . . 463,507 397,819 --------- --------- Minority interest. . . . . . . . . . . . . . . . . . . 22,208 21,409 Stockholders' equity: Common stock (55,723,731 and 55,713,731 shares) . . . 5,572 5,571 Capital in excess of par value . . . . . . . . . . . 101,235 101,153 Retained income. . . . . . . . . . . . . . . . . . . 404,597 397,922 Cumulative translation adjustment. . . . . . . . . . 144 (614) Common stock held in treasury (4,512,405 shares) . . (133,493) (133,493) --------- --------- Total stockholders' equity . . . . . . . . . . . . 378,055 370,539 --------- --------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY . . . . . . $863,770 $789,767 --------- --------- --------- ---------
EXHIBIT 21 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS BEMIS COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS (IN THOUSANDS OF DOLLARS)
Three Months Ended March 31 ------------------ 1994 1993 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES Net income . . . . . . . . . . . . . . . . . . . . . . . . . $ 13,588 $ 10,748 Non-cash items: Depreciation and amortization. . . . . . . . . . . . . . . 13,348 12,835 Minority interest. . . . . . . . . . . . . . . . . . . . . 602 667 Deferred income taxes, non-current portion . . . . . . . . 542 (2,277) Loss (gain) on sale of property and equipment. . . . . . . 51 (470) -------- -------- Cash provided by operations. . . . . . . . . . . . . . . . . 28,131 21,503 Net change in receivables, inventories, prepaid expenses and payables . . . . . . . . . . . . . . 5,103 2,655 Net changes in deferred charges and credits. . . . . . . . . (4,103) (413) Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . (160) (251) -------- -------- Net cash provided by operating activities. . . . . . . . . . 28,971 23,494 -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES Additions to property and equipment. . . . . . . . . . . . . (27,110) (16,795) Business acquisitions, net of divestitures . . . . . . . . . (33,248) (7,684) Proceeds from sale of property and equipment . . . . . . . . 189 56 Change in long-term receivables. . . . . . . . . . . . . . . 88 83 -------- -------- Net cash used in investing activities. . . . . . . . . . . . (60,081) (24,340) -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES Increase in long-term debt . . . . . . . . . . . . . . . . . 40,614 17,481 Change in short-term debt. . . . . . . . . . . . . . . . . . (202) 492 Cash dividends paid. . . . . . . . . . . . . . . . . . . . . (6,913) (6,394) Subsidiary cash dividends to minority stockholders . . . . . (1,703) Stock incentive programs . . . . . . . . . . . . . . . . . . 83 -------- -------- Net cash provided by financing activities. . . . . . . . . . 33,582 9,876 -------- -------- Effect of exchange rates on cash . . . . . . . . . . . . . . 428 364 -------- -------- Net increase in cash . . . . . . . . . . . . . . . . . . . . $ 2,900 $ 9,394 -------- -------- -------- --------
EXHIBIT 21 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS BEMIS COMPANY, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS TAXES BASED ON INCOME The Company's 1994 effective tax rate of 38% differs from the federal statutory rate of 35% primarily due to state and local income taxes. -----END PRIVACY-ENHANCED MESSAGE-----