-----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, Q/rPkVPk6wcMzQ/oWwwliVEJEdjxNxMR9Qqzy+kA6jWdT1HN7UOcGI7NBV9Q34ua J/wYriJA7FkGigiwxZAm0w== 0001047469-98-020588.txt : 19980518 0001047469-98-020588.hdr.sgml : 19980518 ACCESSION NUMBER: 0001047469-98-020588 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980515 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: 98623466 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 OF THE SECURITIES EXCHANGE ACT OF 1934 For the Three Months Ended March 31, 1998 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. 53,380,001 shares of Common Stock, $.10 par value on April 30, 1998. PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS The financial statements, enclosed as Exhibit 19, 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, 1998. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Net sales for the first quarter of 1998 were $451.5 million compared to $475.5 million for the first quarter of 1997, a decrease of 5.0 percent or $24.0 million. Net income was $21.9 million, or $.41 per share, for the first quarter of 1998 compared to $19.9 million, or $.37 per share, for the same quarter in 1997, an increase of 10.8 percent. Excluding noncomparable business activity, principally the packaging machinery operations which were divested in the second quarter of 1997, net sales declined 0.1 percent while operating income increased 13.0 percent. Flexible packaging net sales, adjusted for noncomparable business activity, declined 0.4 percent while operating income increased 25.1 percent. Pressure sensitive materials net sales, adjusted for noncomparable business activity, increased 0.7 percent while operating income declined 9.3 percent. Within flexible packaging, net sales of plastic packaging products rose 3.3 percent, paced by solid growth in the coated and laminated films. Profits in plastic packaging grew faster than sales in the quarter on improved margins in coated and laminated films and polyethylene packaging. Sales in paper packaging declined due to the reorganization of the business, including the shutdown of two manufacturing facilities. Weather related factors also hurt sales in the quarter. Paper packaging profitability was impacted by the lower sales volumes and inefficiencies related to the reorganization. Net sales in the pressure sensitive materials business were flat compared to an unusually strong first quarter a year earlier, and were affected by customer inventory adjustments and softness in selected markets. Negative currency translation effects also reduced pressure sensitive sales by about 3.0 percent in the quarter. Profitability was reduced by the lower than expected volumes and an unfavorable sales mix. The Company has made significant progress in digesting acquisitions made in 1997 together with the large volume of new equipment installed throughout the Company. During the first quarter of 1998, the Company completed an investment in a joint venture with Dixie Toga S.A., a major packaging company in Brazil and recently reached an agreement to acquire Techy International S.A., a Belgian flexible packaging company. The joint venture investment is recorded on the Balance Sheet in Other Assets and in Excess of Cost of Investments in Subsidiaries Over Net Assets Acquired while the Income Statement includes joint venture income with Other (Income) Costs, Net. These actions are part of a continuing strategy of offering the Company's packaging capabilities to key customers in international markets. - 2 - PART I - FINANCIAL INFORMATION Addressing the Statement of Income line item changes of consequence: Selling, General, and Administrative Expenses declined $7.8 million or 14.3 percent as a result of the 1997 sale of the Company's machinery operations, reorganization efforts surrounding paper packaging operations, and successfully absorbing 1997 business unit acquisitions. Higher average debt levels resulting from increased capital expenditure during the first quarter together with a business unit acquisition account for the 18.6 percent increase in Interest Expense. The 1997 sale of the Company's machinery operations also accounted for the $0.5 million decline in Research and Development Expense. Minority Interest decreases results from lower operating income in the Company's pressure sensitive materials business segment. The effective tax rate for the first quarter of 1998 and 1997 was 38.8 percent and 38.2 percent, respectively. FINANCIAL CONDITION A statement of cash flow for the three months ended March 31, 1998, is as follows:
Millions -------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income . . . . . . . . . . . . . . . . . . . . . . . . . $ 21.9 Non-cash items: Depreciation and amortization. . . . . . . . . . . . . . 22.9 Minority interest. . . . . . . . . . . . . . . . . . . . 1.0 Deferred income taxes, non-current portion . . . . . . . 0.9 Net increase in working capital, net of effects of acquisition . . . . . . . . . . . . . . . . . . . . (13.9) Net change in deferred charges and credits . . . . . . . (0.6) Other. . . . . . . . . . . . . . . . . . . . . . . . . . (0.4) -------- Net cash provided by operating activities . . . . . . . . . . . 31.8 -------- CASH FLOWS FROM INVESTING ACTIVITIES: Additions to property and equipment. . . . . . . . . . . . . (45.2) Business acquisition . . . . . . . . . . . . . . . . . . . . (38.9) Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4 -------- Net cash used in investing activities . . . . . . . . . . . . . (83.7) -------- CASH FLOWS FROM FINANCING ACTIVITIES: Change in long-term debt . . . . . . . . . . . . . . . . . . 67.7 Cash dividends paid. . . . . . . . . . . . . . . . . . . . . (11.7) Subsidiary dividends to minority stockholders. . . . . . . . (1.8) Stock incentive programs and related tax effects . . . . . . 7.4 -------- Net cash provided by financing activities . . . . . . . . . . . 61.6 -------- Effect of exchange rates. . . . . . . . . . . . . . . . . . . . (0.1) -------- Net increase in cash. . . . . . . . . . . . . . . . . . . . . . $ 9.6 -------- --------
- 3 - PART II - OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) The following exhibits are filed as part of the 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 Reports Furnished to Security Holders. 27 Financial Data Schedule (EDGAR electronic filing only). - 4 - PART II - OTHER INFORMATION ----------------- * 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). (b) There were no reports on Form 8-K filed during the first quarter ended March 31, 1998. 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 4, 1998 /s/ Gene C. Wulf ------------------- --------------------------------------- Gene C. Wulf, Vice President and Controller Date May 4, 1998 /s/ Benjamin R. Field, III ------------------- --------------------------------------- Benjamin R. Field, III, Senior Vice President, Chief Financial Officer and Treasurer - 5 - 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. Electronic/EDGAR 27 Financial Data Schedule (EDGAR electronic filing only). Electronic/EDGAR
----------- * 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 - EX-19 2 EXHIBIT 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 March 31 ------------------------ 1998 1997 --------- --------- Net sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $451,491 $475,473 Costs and expenses: Cost of products sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360,652 380,058 Selling, general, and administrative expenses . . . . . . . . . . . . . . . . 46,628 54,388 Research and development. . . . . . . . . . . . . . . . . . . . . . . . . . . 2,908 3,434 Interest expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,240 4,418 Other (income) costs, net . . . . . . . . . . . . . . . . . . . . . . . . . . (753) (205) Minority interest in net income . . . . . . . . . . . . . . . . . . . . . . . 988 1,222 --------- --------- Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,828 32,158 Taxes based on income - cash. . . . . . . . . . . . . . . . . . . . . . . . . 12,950 12,125 Taxes based on income - deferred. . . . . . . . . . . . . . . . . . . . . . . 950 175 --------- --------- Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 21,928 $ 19,858 --------- --------- --------- --------- Basic earnings per share of common stock . . . . . . . . . . . . . . . . . . . . $.41 $.37 --------- --------- --------- --------- Diluted earnings per share of common stock . . . . . . . . . . . . . . . . . . . $.41 $.37 --------- --------- --------- --------- Cash dividends paid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $.22 $.20 --------- --------- --------- --------- Average common shares and common stock equivalents outstanding . . . . . . . . . . . . . . . . . . . . . . . . 53,654 53,939 --------- --------- --------- ---------
EXHIBIT 19 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS BEMIS COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (IN THOUSANDS OF DOLLARS)
Mar 31 Dec 31 ASSETS 1998 1997 ------ ---- ---- Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 23,404 $ 13,827 Accounts receivable - net. . . . . . . . . . . . . . . . . . . . . . . . . . . . 227,041 233,547 Inventories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219,737 221,576 Prepaid expenses and deferred charges. . . . . . . . . . . . . . . . . . . . . . 46,070 47,443 ---------- ---------- Total current assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 516,252 516,393 ---------- ---------- Property and equipment, net. . . . . . . . . . . . . . . . . . . . . . . . . . . 707,382 685,227 Excess of cost of investments in subsidiaries over net assets acquired . . . . . . . . . . . . . . . . . . . . 159,299 150,632 Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,556 10,315 ---------- ---------- Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198,855 160,947 ---------- ---------- TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,422,489 $1,362,567 ---------- ---------- ---------- ---------- LIABILITIES AND STOCKHOLDERS' EQUITY ------------------------------------ Current portion of long-term debt. . . . . . . . . . . . . . . . . . . . . . . . $ 2,215 $ 2,173 Short-term borrowings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,931 2,105 Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177,768 195,346 Accrued salaries and wages . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,976 34,892 Accrued income and other taxes . . . . . . . . . . . . . . . . . . . . . . . . . 20,562 16,671 ---------- ---------- Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . 228,452 251,187 Long-term debt, less current portion . . . . . . . . . . . . . . . . . . . . . . 384,524 316,791 Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,953 64,066 Other liabilities and deferred credits . . . . . . . . . . . . . . . . . . . . . 56,441 56,876 ---------- ---------- Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 734,370 688,920 ---------- ---------- Minority interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,610 33,762 STOCKHOLDERS' EQUITY: Common stock (59,056,047 and 58,643,557 shares). . . . . . . . . . . . . . . 5,905 5,864 Capital in excess of par value . . . . . . . . . . . . . . . . . . . . . . . 181,909 174,562 Retained income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 636,768 626,584 Other comprehensive income (loss). . . . . . . . . . . . . . . . . . . . . . (8,211) (6,263) Common stock held in treasury (5,676,046 and 5,676,046 shares) . . . . . . . (160,862) (160,862) ---------- ---------- Total stockholders' equity. . . . . . . . . . . . . . . . . . . . . . . . 655,509 639,885 ---------- ---------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY . . . . . . . . . . . . . . . . . . . $1,422,489 $1,362,567 ---------- ---------- ---------- ----------
EXHIBIT 19 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS BEMIS COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY PERIODS PRIOR TO 1998 HAVE BEEN REVISED TO REFLECT PROVISIONS OF SFAS NO. 130
Capital In Other Common Total Common Excess Of Retained Comprehensive Stock Held Stockholder's (IN THOUSANDS OF DOLLARS) Stock Par Value Income Income (Loss) In Treasury Equity - -------------------------------------------------------------------------------------------------------------------------------- Balance at December 31, 1994 $5,572 $101,290 $446,132 ($1,474) ($133,493) $418,027 ----------------------------------------------------------------------- Net income for 1995 85,210 85,210 Translation adjustment for 1995 5,211 5,211 Pension liability adjustment, net of $2,975 tax benefit 4,853 4,853 ----------- Total comprehensive income 95,274 ----------- Cash dividends paid on common stock, $. 64 per share (33,175) (33,175) Stock incentive programs and related tax effects 28 3,421 3,449 Common stock transactions related to an acquisition of a subsidiary company 181 42,408 (4,961) 37,628 Purchase of 330,300 shares of common stock (8,395) (8,395) ----------------------------------------------------------------------- Balance at December 31, 1995 $5,781 $147,119 $498,167 $8,590 ($146,849) $512,808 ----------------------------------------------------------------------- Net income for 1996 101,081 101,081 Translation adjustment for 1996 (3,917) (3,917) Pension liability adjustment, net of $948 tax benefit 1,546 1,546 ----------- Total comprehensive income 98,710 ----------- Cash dividends paid on common stock, $.72 per share (37,830) (37,830) Stock incentive programs and related tax effects 2 310 312 Common stock transactions related to an acquisition of a subsidiary company 7 2,052 2,059 Purchase of 292,000 shares of common stock (8,962) (8,962) ----------------------------------------------------------------------- Balance at December 31, 1996 $5,790 $149,481 $561,418 $6,219 ($155,811) $567,097 ----------------------------------------------------------------------- Net income for 1997 107,584 107,584 Translation adjustment for 1997 (11,109) (11,109) Pension liability adjustment, net of $842 tax benefit (1,373) (1,373) ----------- Total comprehensive income 95,102 ----------- Cash dividends paid on common stock, $.80 per share (42,418) (42,418) Stock incentive programs and related tax effects 4 47 51 Common stock transactions related to an acquisition of a subsidiary company 70 25,034 25,104 Purchase of 139,429 shares of common stock (5,051) (5,051) ----------------------------------------------------------------------- Balance at December 31, 1997 $5,864 $174,562 $626,584 ($6,263) ($160,862) $639,885 ----------------------------------------------------------------------- Net income for first quarter of 1998 21,928 21,928 Translation adjustment for first quarter of 1998 (1,948) (1,948) ----------- Total comprehensive income 19,980 ----------- Cash dividends paid on common stock, $.22 per share (11,744) (11,744) Stock incentive programs and related tax effects 41 7,347 7,388 ----------------------------------------------------------------------- Balance at March 31, 1998 $5,905 $181,909 $636,768 ($8,211) ($160,862) $655,509 ----------------------------------------------------------------------- -----------------------------------------------------------------------
EXHIBIT 19 - 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 ----------------------- 1998 1997 CASH FLOWS FROM OPERATING ACTIVITIES Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 21,928 $ 19,858 NON-CASH ITEMS: Depreciation and amortization. . . . . . . . . . . . . . . . . . . . . . . . 22,903 20,455 Minority interest in net income. . . . . . . . . . . . . . . . . . . . . . . 988 1,222 Deferred income taxes, non-current portion . . . . . . . . . . . . . . . . . 948 384 Undistributed earnings of affiliated companies . . . . . . . . . . . . . . . (422) (Gain) Loss on sale of property and equipment. . . . . . . . . . . . . . . . (22) 4 --------- --------- Cash provided by operations. . . . . . . . . . . . . . . . . . . . . . . . . . . 46,323 41,923 Changes in working capital, net of effects of acquisitions and dispositions. . . . . . . . . . . . . . . . . . . . . . . (13,914) (37,798) Net change in deferred charges and credits . . . . . . . . . . . . . . . . . . . (569) (14,200) --------- --------- Net cash provided (used) by operating activities . . . . . . . . . . . . . . . . 31,840 (10,075) --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES Additions to property and equipment. . . . . . . . . . . . . . . . . . . . . . . (45,184) (28,158) Business acquisitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (38,868) (875) Proceeds from sale of property and equipment . . . . . . . . . . . . . . . . . . 374 179 Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 (34) --------- --------- Net cash used in investing activities. . . . . . . . . . . . . . . . . . . . . . (83,674) (28,888) --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES Change in long-term debt excluding debt assumed in business acquisition. . . . . . . . . . . . . . . . . . . . . . . . 67,733 59,103 Change in short-term debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . (16) 1,869 Cash dividends paid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,744) (10,620) Subsidiary dividends to minority stockholders. . . . . . . . . . . . . . . . . . (1,835) (1,835) Stock incentive programs and related tax effects . . . . . . . . . . . . . . . . 7,388 51 --------- --------- Net cash provided by financing activities. . . . . . . . . . . . . . . . . . . . 61,526 48,568 --------- --------- Effect of exchange rates on cash . . . . . . . . . . . . . . . . . . . . . . . . (115) (1,731) --------- --------- Net increase in cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,577 $ 7,874 --------- --------- --------- ---------
EXHIBIT 19 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS BEMIS COMPANY, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS TAXES BASED ON INCOME The Company's 1998 effective tax rate of 39% differs from the federal statutory rate of 35% primarily due to state and local income taxes. COMPREHENSIVE INCOME In the first quarter of 1998, the Company adopted Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive Income" (SFAS 130), which establishes standards for reporting and display of comprehensive income and its components. In accordance with SFAS 130, the Company has displayed the components of "Other comprehensive income (loss)" and "Comprehensive income," net of their related tax effects, in the accompanying Consolidated Statement of Stockholder's Equity. The net foreign currency translation adjustment and components thereof have no tax effect as the Company makes no provision for U.S. income taxes applicable to undistributed earnings of foreign subsidiaries that are indefinitely reinvested in foreign operations. All prior-period data has been reclassified to conform with the provisions of SFAS 130. EX-27 3 EXH. 27
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE MARCH 31, 1998, CONSOLIDATED STATEMENT OF INCOME AND CONSOLIDATED BALANCE SHEET AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS DEC-31-1998 JAN-01-1998 MAR-31-1998 23,404 0 227,041 0 219,737 516,252 1,065,613 (358,231) 1,422,489 228,452 384,524 0 0 5,905 649,604 1,422,489 451,491 451,491 360,652 360,652 (753) 0 5,240 35,828 13,900 21,928 0 0 0 21,928 .41 .41
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