-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PLdlkxN75Fvsai6DGd/c4u8/o4U3ztBE2Dhd/38bKf5ZebKiVUhXFuexJPgQjtGK Q4H46X+1Wzne2j7/qZH4Fw== 0001047469-97-003890.txt : 19971114 0001047469-97-003890.hdr.sgml : 19971114 ACCESSION NUMBER: 0001047469-97-003890 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971112 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: SEC FILE NUMBER: 001-05277 FILM NUMBER: 97713537 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 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 1997 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: (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days. YES X NO ------- ------- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. 53,002,715 shares of Common Stock, $.10 par value, on November 3, 1997 PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS The financial statements (enclosed as Exhibit 19) are incorporated by reference into 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 nine months ended September 30, 1997. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS - THIRD QUARTER 1997 Net Sales for the third quarter of 1997 were $465.5 million compared to $423.1 million for the third quarter of 1996, an increase of 10.0 percent or $42.4 million. Net Income increased 5.7 percent to $25.4 million for the third quarter of 1997 compared to the same quarter in 1996. Excluding non-comparable operating results of the acquisition of Paramount Packaging Corporation in January 1997 and the disposition of the Company's packaging machinery business in May 1997 from both 1997 and 1996, third quarter Net Sales showed an increase of $31.2 million or 7.8 percent and operating profit showed an increase of $6.7 million or 14.8 percent. Third quarter 1997 Net Sales for the flexible packaging line of business increased 12.8 percent to $346.1 million. Operating profits increased 11.4 percent to $35.4 million. Excluding noncomparable operating results of business acquisitions and dispositions Net Sales showed an increase of $27.4 million or 9.6 percent and operating profit showed an increase of $4.0 million or 13.1 percent. Within the flexible packaging segment, third quarter Net Sales in coated and laminated films excluding acquisitions rose 11.0 percent, with the strongest sales gains in new multi-layer films. The conversion to more sophisticated film structures negatively impacted margins. The start-up of several new film manufacturing lines for this family of films, resulted in higher than normal scrap rates and lower production efficiency. In the polyethylene packaging business, Net Sales in the third quarter excluding acquisitions rose 12.0 percent. Profitability was impacted by an unusually high level of new equipment start-up as well as lower productivity resulting from the continued plant reorganizations involving the Paramount facilities acquired in the first quarter. The paper bag business reported slightly higher revenues and weaker profit amidst a continued difficult pricing environment. Reduced manufacturing volumes at the two plants which will be closed as part of the consolidation announced in the second quarter, and costs of transferring equipment and training new employees at the remaining plants also adversely impacted profitability. -2- PART I - FINANCIAL INFORMATION Third quarter 1997 Net Sales for the specialty coated and graphics line of business increased 2.7 percent to $119.4 million. Operating profits increased 14.5 percent to $17.0 million. Excluding noncomparable operating results of business acquisition and disposition Net Sales showed an increase of $3.9 million or 3.4 percent and operating profit showed an increase of $2.7 million or l8.3 percent. Net Sales grew at a modest rate with good profitability. Both revenue and profit growth were affected by unfavorable currency translation for the pressure sensitive materials business which derives about 35.0 percent of its revenue from outside North America. Cost of Products Sold increased 12.7 percent compared to Net Sales increases of 10.0 percent. The third quarter was negatively affected by several factors, including a product transition in the coated and laminated film business, continued integration costs associated with the Paramount acquisition made earlier in the year, an unusually large amount of new equipment start-ups which resulted in higher than normal scrap levels and lower productivity in certain parts of the flexible packaging business, and lower profitability in the paper bag business resulting from the consolidation activities announced at the end of the second quarter. Selling, General, and Administrative Expenses for the current quarter declined both in absolute terms, $2.2 million, and expressed as a percent of Net Sales, from 10.8 percent for the third quarter of 1996 compared to 9.3 percent in the third quarter of 1997. This favorable fluctuation resulted from a combination of factors the most significant of which was the Company's sale of its remaining packaging machinery businesses in the second quarter of 1997. The sale of the Company's remaining machinery manufacturing business during the second quarter of 1997 is also the primary reason for the $1.2 million decrease in Research and Development Expense. Increasing debt levels resulting from business unit acquisitions in 1996 and early 1997, and a very aggressive capital improvement effort principally account for the $1.2 million rise in Interest Expense compared to the third quarter of 1996. The increase in Minority Interest in Net Income reflects the improving performance of the pressure sensitive materials business. RESULTS OF OPERATIONS - NINE MONTHS ENDED SEPTEMBER 30, 1997 Net Sales for the nine-month period of 1997 increased 16.5 percent to $1.42 billion compared to the same period in 1996. Net Income was $73.3 million for 1997 compared to $70.9 million for the same nine-month period in 1996, an increase of 3.3 percent. Excluding non-comparable operating results of business acquisitions and dispositions from the first nine months of 1997 and 1996, Net Sales showed an increase of $105.2 million or 8.9 percent and operating profit showed an increase of $16.5 million or 12.4 percent. -3- PART I - FINANCIAL INFORMATION Net Sales for the flexible packaging line of business increased 21.1 percent to $1.06 billion with operating profits increasing 4.4 percent to $101.9 million compared to the same nine-month period in 1996. Net Sales for the specialty coated and graphics line of business increased 5.2 percent to $366.8 million with operating profits increasing 19.6 percent to $50.2 million compared to the same nine-month period in 1996. Excluding noncomparable operating results of business acquisitions and dispositions Net Sales for the flexible packaging line of business showed an increase of $86.9 million or 10.4 percent with operating profits increasing $8.0 million or 8.6 percent. Excluding noncomparable operating results of business acquisitions and dispositions Net Sales for the specialty coated and graphics line of business showed an increase of $18.3 million or 5.3 percent with operating profits increasing $8.6 million or 20.6 percent. Cost of Products Sold increased 19.2 percent compared to Net Sales increases of 16.5 percent generally reflecting a less favorable raw material price environment together with continued integration costs associated with the Paramount acquisition, an unusually large amount of new equipment start-ups, and lower profitability in the paper bag business resulting from the consolidation efforts announced at the end of the second quarter. The $1.0 million decrease in Research and Development Expense is primarily due to the sale of the Company's machinery manufacturing business during the second quarter. Increasing debt levels, associated with business unit acquisitions net of dispositions together with an aggressive capital investment program, account for the $4.2 million rise in Interest Expense compared to the first nine months of 1996. Other Income decreased $4.2 million largely due to the gain on the sale of Hayssen's Paper Packaging Machinery Division in January 1996 not matched in 1997. The increase in Minority Interest in Net Income results from the continued improvement in the Company's pressure sensitive materials business segment. The first quarter 1997 acquisition of Paramount Packaging Corporation and the second quarter 1997 sale of the Company's packaging machinery business combined with the working capital effects of added sales and an aggressive capital additions program account for all significant increases in our balance sheet accounts. -4- PART I - FINANCIAL INFORMATION FINANCIAL CONDITION A statement of cash flow for the nine months ended September 30, 1997, is as follows: Millions -------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income. . . . . . . . . . . . . . . . . . . . . . . . . $ 73.3 Non-cash items: Depreciation and amortization. . . . . . . . . . . . . . 60.7 Minority interest. . . . . . . . . . . . . . . . . . . . 3.8 Deferred income taxes, non-current portion . . . . . . . 1.6 Net increase in working capital items net of effects of acquisitions and divestitures. . . . . . . . . . . (5.2) Net change in deferred charges and credits.. . . . . . . (8.7) -------- Net cash provided by operating activities. . . . . . . . . . . 125.5 CASH FLOWS FROM INVESTING ACTIVITIES: Additions to property and equipment.. . . . . . . . . . . . (117.5) Business acquisitions . . . . . . . . . . . . . . . . . . . (6.9) Business divestitures . . . . . . . . . . . . . . . . . . . 28.0 Proceeds from sales of property and equipment.. . . . . . . 1.8 -------- Net cash used in investing activities. . . . . . . . . . . . . (94.6) -------- CASH FLOWS FROM FINANCING ACTIVITIES: Change in long-term debt. . . . . . . . . . . . . . . . . . 15.9 Change in short-term debt . . . . . . . . . . . . . . . . . .5 Cash dividends paid . . . . . . . . . . . . . . . . . . . . (31.8) Subsidiary dividends to minority stockholders . . . . . . . (1.8) Common stock purchased for the treasury.. . . . . . . . . . (3.7) -------- Net cash used by financing activities. . . . . . . . . . . . . (20.9) -------- Effect of exchange rates on cash.. . . . . . . . . . . . . . . (.9) -------- Net increase in cash.. . . . . . . . . . . . . . . . . . . . . $ 9.1 -------- -------- -5- PART II - OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K EXHIBITS (a) The following documents are filed as part of this report: 3(a) Restated Articles of Incorporation of the Registrant, as amended. (1) 3(b) By-Laws of the Registrant, as amended. (2) 4(a) Rights Agreement, dated as of August 3, 1989, between the Registrant and Norwest Bank Minnesota, National Association. (3) 4(b) Form of Indenture dated as of June 15, 1995, between the Registrant and First Trust National Association, as Trustee. (4) 10(a) Bemis Company, Inc. 1987 Stock Option Plan. *(5) 10(b) Bemis Company, Inc. 1994 Stock Incentive Plan. *(6) 10(c) Bemis Company, Inc. 1984 Stock Award Plan .*(2) 10(d) Bemis Retirement Plan, as amended effective January 1, 1994.*(2) 10(e) Bemis Company, Inc. Supplemental Retirement Plan dated October 20, 1988.*(2) 10(f) Bemis Executive Incentive Plan dated April 1, 1990.*(2) 10(g) Bemis Company, Inc. Long Term Deferred Compensation Plan.*(2) 10(h) Bemis Company, Inc. 1997 Executive Officer Performance Plan. *(1) 10(i) Amended and Restated Credit Agreement among the Registrant, the Banks Listed therein and Morgan Guaranty Trust Company of New York, as Agent, originally dated as of August 1, 1986, Amended and Restated as of August 1, 1991, as amended by amendment No. 1 dated as of May 1, 1992, as amended by Amendment No. 2 dated December 1, 1992, as amended by Amendment No. 3 dated January 22, 1993, as amended by Amendment No. 4 dated March 15, 1994, as amended by Amendment No. 5 dated June 1, 1994; and as amended by Amendment No. 6 dated February 1, 1995. (2) 19 Financial Statements Furnished to Security Holders. 27 Financial Data Schedule (EDGAR electronic filing only). (b) There were no reports on Form 8-K filed during the third quarter ended September 30, 1997. - --------------- *Management contract, compensatory plan or arrangement filed pursuant to Rule 601(b)(10)(iii)(A) of Regulation S-K under the Securities Exchange Act of 1934. (1) Incorporated by reference to the Registrant's Definitive Proxy Statement filed with the Securities and Exchange Commission on March 18, 1997 (File No. 1-5277) (2) Incorporated by reference to the Registrant's Annual Report on Form 10-K/A for the year ended December 31, 1994 (File No. 1-5277). (3) Incorporated by reference to the Registrant's Registration Statement on Form 8-A dated August 4, 1989 (File No. 0-1387). (4) Incorporated by reference to the Registrant's Current Report on Form 8-K dated June 30, 1995 (File No. 1-5277). (5) Incorporated by reference to the Registrant's Registration Statement on Form S-8 (File No. 33-50560). (6) Incorporated by reference to the Registrant's Registration Statement on Form S-8 (File No. 33-80666). -6- 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 November 3, 1997 /s/ LeRoy F. Bazany ------------------------------ ---------------------------------------- LeRoy F. Bazany, Vice President and Controller Date November 3, 1997 /s/ Benjamin R. Field, III ------------------------------ ---------------------------------------- Benjamin R. Field, III, Senior Vice President, Chief Financial Officer and Treasurer -7- EXHIBIT INDEX
EXHIBIT DESCRIPTION FORM OF FILING 3(a) Restated Articles of Incorporation of the Registrant, as amended. (1) 3(b) By-Laws of the Registrant, as amended. (2) 4(a) Rights Agreement, dated as of August 3, 1989, between the Registrant and Norwest Bank Minnesota, National Association. (3) 4(b) Form of Indenture dated as of June 15, 1995, between the Registrant and First Trust National Association, as Trustee. (4) 10(a) Bemis Company, Inc. 1987 Stock Option Plan. * (5) 10(b) Bemis Company, Inc. 1994 Stock Incentive Plan. * (6) 10(c) Bemis Company, Inc. 1984 Stock Award Plan. * (2) 10(d) Bemis Retirement Plan, as amended effective January 1, 1994. * (2) 10(e) Bemis Company, Inc. Supplemental Retirement Plan dated October 20, 1988. * (2) 10(f) Bemis Executive Incentive Plan dated April 1, 1990. * (2) 10(g) Bemis Company, Inc. Long Term Deferred Compensation Plan. * (2) 10(h) Bemis Company, Inc. 1997 Executive Officer Performance Plan. * (1) 10(i) Amended and Restated Credit Agreement among the Registrant, the Banks Listed therein and Morgan Guaranty Trust Company of New York as Agent, originally dated as of August 1, 1986, Amended and Restated as of August 1, 1991, as amended by Amendment No. 1 dated as of May 1, 1992, as amended by Amendment No. 2 dated December 1, 1992, as amended by Amendment No. 3 dated January 22, 1993, as amended by Amendment No. 4 dated March 15, 1994, as amended by Amendment No. 5 dated June 1, 1994; and as amended by Amendment No. 6 dated February 1, 1995. (2) 19 Reports Furnished to Security Holders. Filed Electronically 27 Financial Data Schedule (EDGAR electronic Filed Electronically filing only)
--------------- * Management contract, compensatory plan or arrangement filed pursuant to Rule 601(b)(10)(iii)(A) of Regulation S-K under the Securities Exchange Act of 1934. (1) Incorporated by reference to the Registrant's Definitive Proxy Statement filed with the Securities and Exchange Commission on March 18, 1997 (File No. 1-5277). (2) Incorporated by reference to the Registrant's Annual Report on Form 10-K/A for the year ended December 31, 1994 (File No. 1-5277). (3) Incorporated by reference to the Registrant's Registration Statement on Form 8-A dated August 4, 1989 (File No. 0-1387). (4) Incorporated by reference to the Registrant's Current Report on Form 8-K dated June 30, 1995 (File No. 1-5277). (5) Incorporated by reference to the Registrant's Registration Statement on Form S-8 (File No. 33-50560). (6) Incorporated by reference to the Registrant's Registration Statement on Form S-8 (File No. 33-80666). - 8 - EX-19 2 EXH. 19 EXHIBIT 19 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS BEMIS COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME (IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
Three Months Ended Nine Months Ended September 30 September 30 ----------------------- ----------------------- 1997 1996 1997 1996 ---------- ---------- ---------- ---------- Net sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 465,533 $ 423,089 $1,422,340 $1,220,545 Costs and expenses: Cost of products sold . . . . . . . . . . . . . . . . . . . . . . 372,489 330,479 1,131,660 949,161 Selling, general, and administrative expenses. . . . . . . . . . . . . . . . . . . . . 43,519 45,716 145,217 139,233 Research and development. . . . . . . . . . . . . . . . . . . . . 2,537 3,772 9,253 10,233 Interest expense. . . . . . . . . . . . . . . . . . . . . . . . . 4,903 3,705 14,175 9,938 Other (income) costs, net . . . . . . . . . . . . . . . . . . . . (423) (223) (837) (5,018) Minority interest in net income . . . . . . . . . . . . . . . . . 1,296 1,107 3,809 3,149 ---------- ---------- ---------- ---------- Income before income taxes . . . . . . . . . . . . . . . . . . . . 41,212 38,533 119,063 113,849 Taxes based on income - cash. . . . . . . . . . . . . . . . . . . 15,152 14,250 43,779 41,316 Taxes based on income - deferred. . . . . . . . . . . . . . . . . 648 250 2,021 1,584 ---------- ---------- ---------- ---------- Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25,412 $ 24,033 $ 73,263 $ 70,949 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Earnings per share of common stock.. . . . . . . . . . . . . . . . $ .47 $.45 $ 1.36 $ 1.33 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Cash dividends paid per share of common stock . . . . . . . . . . . . . . . . . . . . . . $ .20 $.18 $ .60 $ .54 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Average common shares and common stock equivalents outstanding . . . . . . . . . . . . . . . . . . 53,976 53,288 53,942 53,276 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
EXHIBIT 19 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS BEMIS COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (IN THOUSANDS OF DOLLARS)
Sep 30 Dec 31 ASSETS 1997 1996 ---------- ---------- Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19,307 $ 10,223 Accounts receivable - net. . . . . . . . . . . . . . . . . . . . . 229,518 216,740 Inventories. . . . . . . . . . . . . . . . . . . . . . . . . . . . 205,736 200,397 Prepaid expenses and deferred charges. . . . . . . . . . . . . . . 46,653 39,561 ---------- ---------- Total current assets . . . . . . . . . . . . . . . . . . . . . 501,214 466,921 ---------- ---------- Property and equipment, net. . . . . . . . . . . . . . . . . . . . 655,715 583,491 Excess of cost of investments in subsidiaries over net assets acquired . . . . . . . . . . . . . . 149,350 108,928 Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,153 9,455 ---------- ---------- Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162,503 118,383 ---------- ---------- TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,319,432 $1,168,795 ---------- ---------- ---------- ---------- LIABILITIES AND STOCKHOLDERS' EQUITY Current portion of long-term debt. . . . . . . . . . . . . . . . . $ 1,756 $ 1,706 Short-term borrowings. . . . . . . . . . . . . . . . . . . . . . . 3,233 3,006 Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . 193,777 164,638 Accrued salaries and wages . . . . . . . . . . . . . . . . . . . . 37,732 34,163 Accrued income and other taxes . . . . . . . . . . . . . . . . . . 14,604 10,932 ---------- ---------- Total current liabilities. . . . . . . . . . . . . . . . . . . 251,102 214,445 Long-term debt, less current portion . . . . . . . . . . . . . . . 302,697 241,077 Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . 58,566 56,661 Other liabilities and deferred credits . . . . . . . . . . . . . . 57,792 57,726 ---------- ---------- Total liabilities. . . . . . . . . . . . . . . . . . . . . . . 670,157 569,909 ---------- ---------- Minority interest. . . . . . . . . . . . . . . . . . . . . . . . . 31,943 31,789 Stockholders' equity: Common stock (58,643,557 and 57,897,316 shares) . . . . . . . . . 5,864 5,790 Capital in excess of par value. . . . . . . . . . . . . . . . . . 174,562 149,481 Retained income . . . . . . . . . . . . . . . . . . . . . . . . . 602,489 561,049 Cumulative translation adjustment . . . . . . . . . . . . . . . . (6,042) 6,588 Common stock held in treasury (5,640,842 and 5,536,617 shares). . (159,541) (155,811) ---------- ---------- Total stockholders' equity.. . . . . . . . . . . . . . . . . . 617,332 567,097 ---------- ---------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY . . . . . . . . . . . . $1,319,432 $1,168,795 ---------- ---------- ---------- ----------
EXHIBIT 19 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS BEMIS COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS (IN THOUSANDS OF DOLLARS)
Nine Months Ended September 30 ----------------------- 1997 1996 ---------- ---------- CASH FLOWS FROM OPERATING ACTIVITIES Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 73,263 $ 70,949 Non-cash items: Depreciation and amortization . . . . . . . . . . . . . . . . . . 60,727 51,464 Minority interest in net income . . . . . . . . . . . . . . . . . 3,809 3,149 Deferred income taxes, non-current portion. . . . . . . . . . . . 1,635 1,584 Loss on sale of property and equipment. . . . . . . . . . . . . . 135 51 ---------- ---------- Cash provided by operations. . . . . . . . . . . . . . . . . . . . 139,569 127,197 Changes in working capital, net of effects of acquisitions and dispositions . . . . . . . . . . . . . . . . . . (5,242) (36,186) Net change in deferred charges and credits.. . . . . . . . . . . . (8,718) 5,307 ---------- ---------- Net cash provided by operating activities. . . . . . . . . . . . . 125,609 96,318 ---------- ---------- CASH FLOWS FROM INVESTING ACTIVITIES Additions to property and equipment. . . . . . . . . . . . . . . . (117,456) (76,459) Business acquisition . . . . . . . . . . . . . . . . . . . . . . . (6,945) (62,914) Business divestiture . . . . . . . . . . . . . . . . . . . . . . . 27,984 12,752 Proceeds from sale of property and equipment.. . . . . . . . . . . 1,762 1,535 Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (25) 12 Net cash used in investing activities. . . . . . . . . . . . . . . (94,680) (125,074) ---------- ---------- CASH FLOWS FROM FINANCING ACTIVITIES Change in long-term debt excluding debt assumed in business acquisitions. . . . . . . . . . . . . . . . . . . . . 15,911 68,455 Change in short-term debt . . . . . . . . . . . . . . . . . . . . 525 409 Cash dividends paid. . . . . . . . . . . . . . . . . . . . . . . . (31,823) (28,405) Subsidiary dividends to minority stockholders. . . . . . . . . . . (1,835) (1,841) Common stock purchased for the treasury. . . . . . . . . . . . . . (3,730) (8,962) Stock incentive programs and related tax effects . . . . . . . . . 52 115 ---------- ---------- Net cash (used) provided by financing activities . . . . . . . . . (20,900) 29,771 ---------- ---------- Effect of exchange rates on cash . . . . . . . . . . . . . . . . . (945) (1,512) ---------- ---------- Net increase (decrease) in cash. . . . . . . . . . . . . . . . . . $ 9,084 $ (497) ---------- ---------- ---------- ----------
EXHIBIT 19 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS BEMIS COMPANY, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position and results of operation. It is management's opinion, however, that all material adjustments (consisting of normal recurring accruals) have been made which are necessary for a fair financial statement presentation. The results for the interim period are not necessarily indicative of the results to be expected for the year. For further information, refer to the consolidated financial statements and footnotes included in the Company's annual report on Form 10-K for the year ended December 31, 1996. TAXES BASED ON INCOME The Company's 1997 effective tax rate of 38% differs from the federal statutory rate of 35% primarily due to state and local income taxes. EX-27 3 FDS
5 This schedule contains summary financial information extracted from the September 30, 1997, Consolidated Statement of Income and Consolidated Balance Sheet and is qualified in its entirety by reference to such financial statements. 1,000 9-MOS DEC-31-1997 JAN-01-1997 SEP-30-1997 19,307 0 229,518 0 205,736 501,214 1,035,890 380,175 1,319,432 251,102 302,697 0 0 5,864 611,468 1,319,432 1,422,340 1,422,340 1,131,660 1,131,660 (837) 0 14,175 119,063 45,800 73,263 0 0 0 72,263 1.36 1.36
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