-----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, T2843nQ60sgJUlv5nVo1/QtFtpEnc2WlMzRNgpLk8NXLP6WNHaTOyl+RmzKlvh+I ncN+Mi98CxXEknxXyS7dew== 0000912057-95-003056.txt : 19950503 0000912057-95-003056.hdr.sgml : 19950503 ACCESSION NUMBER: 0000912057-95-003056 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950502 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BEMIS CO INC CENTRAL INDEX KEY: 0000011199 STANDARD INDUSTRIAL CLASSIFICATION: CONVERTED PAPER & PAPERBOARD PRODS (NO CONTAINERS/BOXES) [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: 95533924 BUSINESS ADDRESS: STREET 1: 222 S 9TH ST STE 2300 CITY: MINNEAPOLIS STATE: MN ZIP: 55402-4099 BUSINESS PHONE: 6123763000 MAIL ADDRESS: STREET 2: 222 S 9TH STREET SUITE 2300 CITY: MINNEAPOLIS STATE: MN ZIP: 55402-4099 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, 1995 Commission File Number 1-5277 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 51,490,961 shares at $27.75 per share as of April 28, 1995 - $1,428,874,000 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 opinion of management, the financial statements reflect all adjustments necessary to a fair statement of the results for the three months ended March 31, 1995. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Net Sales for the first quarter of 1995 were $368.6 million compared to $323.3 million for the first quarter of 1994, an increase of 14.0% or $45.3 million. Net Income was $16.1 million for the first quarter of 1995 and $13.6 million for the same quarter in 1994, an increase of 18.4%. Both the Flexible Packaging and the Specialty Coated and Graphics Products Lines of Business had increases in Sales and Operating Profits over the first quarter of 1994, with the Specialty Coated and Graphics Products reflecting the most significant increases. Addressing the Statement of Income line item changes of consequence: Cost of Products Sold increased 15.8% compared to Net Sales increases of 14.0%. Despite numerous sales price increases in 1994 and lower manufacturing overhead compared to 1994, to date we have not fully offset the full impact of multiple raw material price increases incurred since early 1994. While upward pressure on raw material costs continued in the first quarter of 1995, we expect these increases will be less severe than in 1994. Selling, General and Administrative Expenses were 12.3% of Net Sales for the current quarter compared to 13.8% in the first quarter of 1994 on a 14.0% increase in Net Sales, reflecting cost control efforts and economies available through increasing volume. Lower Research and Development expenditures resulted from reduced product development expense in our Packaging Machinery business segment. Increasing interest rates and a higher debt level, required to sustain increased working capital and our capital expenditure program, account for the $1.4 million rise in Interest Expense. Other Income increased $.3 million largely due to currency exchange gains experienced in the first quarter of 1995 versus losses experienced in the first quarter of 1994. Minority Interest increases reflect improvements in our Pressure-Sensitive Materials business segment. - 2 - PART I - FINANCIAL INFORMATION In summary, Pretax Income increased $3.8 million or 17.3% on a 14% increase in Net Sales with lower overhead expense in relation to sales more than offsetting the effect of higher material costs and interest. Income Tax expense increased $1.3 million or 15.5%. The effective tax rate for the first quarter of 1995 and 1994 was 37.6% and 38.2%, respectively. The $20.3 million increase in Long-Term Debt results from increased working capital and capital equipment expenditures. The working capital increase relates principally to higher inventory required to sustain increased business volume and as a hedge against material cost increases. In the third quarter of 1993, a restructuring plan was announced for our Flexible Packaging Products line of business. The objective of this plan was to increase profitability through improved operating efficiency. This plan resulted in a $21 million pretax charge to Other Costs in the third quarter of 1993 and was expected to produce annual pretax savings of $8 million when fully implemented. Key aspects of the plan included redeployment of assets in both the domestic and international packaging machinery businesses ($7.2 million), the closedown of a U.S. nylon resin production facility ($6.2 million), the consolidation of two paper packaging plants into larger facilities ($5.0 million), and $2.6 million for all other expenses principally related to the write-off of nonproductive assets in the coated and laminated film business. All facility closures and consolidations were essentially completed as of the end of 1994. One sublease and one plant sale are pending completion in 1995 as well as some ongoing severance payments and project costs. Because of these pending transactions and final restructuring actions, final adjustments to the reserve have not yet been made, however, no material gain or loss is expected. Of the $21 million total restructuring expenses, we expected $11.4 million of non-cash cost and $9.6 million of net cash expense, all of which would be internally generated. Through March 31, 1995, our cash costs have totalled $4.9 million and non-cash costs $15.1 million. The remaining $1.0 million reserve is expected to be sufficient to absorb remaining cash and non-cash expenses required to finalize this effort in 1995. - 3 - PART I - FINANCIAL INFORMATION FINANCIAL CONDITION A statement of cash flow for the three months ended March 31, 1995, is as follows:
Millions -------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income..................................................... $16.1 Non-cash items: Depreciation and amortization............................... 15.0 Minority interest........................................... 1.0 Deferred income taxes, non-current portion.................. 2.1 Net increase in working capital items....................... (25.1) Net change in deferred charges and credits.................. 0.3 Other....................................................... 0.7 ----- Net cash provided by operating activities........................ 10.1 ----- CASH FLOWS FROM INVESTING ACTIVITIES: Additions to property and equipment.......................... (24.2) Other........................................................ 0.2 ----- Net cash used in investing activities........................... (24.0) ----- CASH FLOWS FROM FINANCING ACTIVITIES: Increase in long-term debt................................... 19.4 Cash dividends paid.......................................... (8.2) Stock incentive programs..................................... 3.5 ----- Net cash provided by financing activities....................... 14.7 ----- Effect of exchange rates........................................ 1.9 ------- Net increase in cash............................................ $ 2.7 ----- -----
- 4 - PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS There have been no significant changes during the three months ended March 31, 1995. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K Exhibit 21 - Financial Statements Furnished to Security Holders. Exhibit 27 - Financial Data Schedule 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 1, 1995 S\ LeRoy F. Bazany --------------------- ------------------------------- LeRoy F. Bazany, Vice President and Controller Date May 1, 1995 S\ B. R. Field, III ---------------------- ----------------------------------- Benjamin R. Field, III, Senior Vice President, Chief Financial Officer and Treasurer - 5 - EX-21 2 EXHIBIT-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 ----------------------- 1995 1994 ---- ---- Net sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $368,551 $323,277 Costs and expenses: Cost of products sold . . . . . . . . . . . . . . . . . . . . . . 290,692 250,978 Selling, general and administrative expenses. . . . . . . . . . . 45,333 44,494 Research and development. . . . . . . . . . . . . . . . . . . . . 3,257 3,798 Interest expense. . . . . . . . . . . . . . . . . . . . . . . . . 3,029 1,616 Other (income). . . . . . . . . . . . . . . . . . . . . . . . . . (538) (199) Minority interest in net income . . . . . . . . . . . . . . . . . 988 602 -------- -------- Income before income taxes . . . . . . . . . . . . . . . . . . . . . . 25,790 21,988 Taxes based on income - cash. . . . . . . . . . . . . . . . . . . 7,588 7,962 Taxes based on income - deferred. . . . . . . . . . . . . . . . . 2,112 438 -------- -------- Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 16,090 $ 13,588 -------- -------- -------- -------- Earnings per share of common stock . . . . . . . . . . . . . . . . . . $.31 $.26 ---- ---- ---- ---- Cash dividends paid. . . . . . . . . . . . . . . . . . . . . . . . . . $.16 $.135 ---- ---- ---- ---- Average common shares and common stock equivalents outstanding . . . . . . . . . . . . . . . . . . . 51,877 51,890 ------- ------ ------- ------
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 1995 1994 ---- ---- Cash . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,432 $ 12,726 Accounts receivable - net. . . . . . . . . . . . . . . 195,662 197,164 Inventories. . . . . . . . . . . . . . . . . . . . . . 181,444 168,153 Prepaid expenses and deferred charges. . . . . . . . . 42,074 40,829 -------- -------- Total current assets . . . . . . . . . . . . . . . . 434,612 418,872 -------- -------- Property and equipment, net. . . . . . . . . . . . . . 471,906 461,316 Excess of cost of investments in subsidiaries over net assets acquired . . . . . . . 29,557 29,743 Other assets . . . . . . . . . . . . . . . . . . . . . 13,405 13,408 -------- -------- Total. . . . . . . . . . . . . . . . . . . . . . . . 42,962 43,151 -------- -------- TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . $949,480 $923,339 -------- -------- -------- -------- LIABILITIES AND STOCKHOLDERS' EQUITY Short-term borrowings. . . . . . . . . . . . . . . . . $ 1,671 $ 1,671 Current portion of long-term debt. . . . . . . . . . . 776 753 Accounts payable . . . . . . . . . . . . . . . . . . . 149,356 159,272 Accrued salaries and wages . . . . . . . . . . . . . . 23,361 31,956 Accrued income and other taxes . . . . . . . . . . . . 22,243 17,166 -------- -------- Total current liabilities. . . . . . . . . . . . . . 197,407 210,818 Long-term debt, less current portion . . . . . . . . . 192,019 171,728 Deferred taxes . . . . . . . . . . . . . . . . . . . . 42,218 40,013 Other liabilities and deferred credits . . . . . . . . 59,029 58,823 -------- -------- Total liabilities. . . . . . . . . . . . . . . . . . 490,673 481,382 -------- -------- Minority interest. . . . . . . . . . . . . . . . . . . 25,491 23,930 STOCKHOLDERS' EQUITY: Common stock (56,003,366 and 55,723,731 shares). . 5,600 5,572 Capital in excess of par value . . . . . . . . . . 104,711 101,290 Retained income. . . . . . . . . . . . . . . . . . 447,215 439,364 Cumulative translation adjustment. . . . . . . . . 9,283 5,294 Common stock held in treasury (4,512,405 shares) . (133,493) (133,493) -------- -------- Total stockholders' equity . . . . . . . . . . . . . 433,316 418,027 -------- -------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY . . . . . . $949,480 $923,339 -------- -------- -------- --------
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 ------------------ 1995 1994 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES Net income . . . . . . . . . . . . . . . . . . . . . . . . $ 16,090 $13,588 NON-CASH ITEMS: Depreciation and amortization. . . . . . . . . . . . . 14,948 13,348 Minority interest. . . . . . . . . . . . . . . . . . . 988 602 Deferred income taxes, non-current portion . . . . . . 2,147 542 (Gain) loss on sale of property and equipment. . . . . (3) 51 -------- -------- Cash provided by operations. . . . . . . . . . . . . . . . 34,170 28,131 Net change in receivables, inventories, prepaid expenses and payables . . . . . . . . . . . . . (25,148) 5,103 Net change in deferred charges and credits . . . . . . . . 345 (4,103) Other. . . . . . . . . . . . . . . . . . . . . . . . . . . 667 (160) -------- -------- Net cash provided by operating activities. . . . . . . . . 10,034 28,971 -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES Additions to property and equipment. . . . . . . . . . . . (24,199) (27,110) Business acquisitions. . . . . . . . . . . . . . . . . . . 0 (33,248) Proceeds from sale of property and equipment . . . . . . . 250 189 Change in long-term receivables. . . . . . . . . . . . . . (10) 88 -------- -------- Net cash used in investing activities. . . . . . . . . . . (23,959) (60,081) -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES Increase in long-term debt . . . . . . . . . . . . . . . . 19,398 40,614 Change in short-term debt. . . . . . . . . . . . . . . . . 133 (202) Cash dividends paid. . . . . . . . . . . . . . . . . . . . (8,239) (6,913) Stock incentive programs . . . . . . . . . . . . . . . . . 3,449 83 -------- -------- Net cash provided by financing activities. . . . . . . . . 14,741 33,582 -------- -------- Effect of exchange rates on cash . . . . . . . . . . . . . 1,890 428 -------- -------- Net increase in cash . . . . . . . . . . . . . . . . . . . $ 2,706 $ 2,900 -------- -------- -------- --------
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 1995 effective tax rate of 38% differs from the federal statutory rate of 35% primarily due to state and local income taxes. EX-27 3 FINANCIAL DATA SCHEDULE
5 This schedule contains summary financial information extracted from the March 31, 1995, Consolidated Statement of Income and Consolidated Balance Sheet and is qualified in its entirety by reference to such financial statements. 3-MOS DEC-31-1994 JAN-1-1995 MAR-31-1995 15,432 0 195,662 0 181,444 434,612 724,647 (252,741) 949,480 197,407 192,019 0 0 5,600 427,716 949,480 368,551 368,551 290,692 290,692 (538) 0 3,029 25,790 9,700 16,090 0 0 0 16,090 .31 .31
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