1-7275 | 47-0248710 | |
(Commission File Number) | (IRS Employer Identification No.) | |
One ConAgra Drive Omaha, NE |
68102 | |
(Address of Principal Executive Offices) | (Zip Code) |
CONAGRA FOODS, INC. |
||||
Date: June 23, 2011 | By: | /s/ Colleen Batcheler | ||
Name: | Colleen Batcheler | |||
Title: | Executive Vice President, General Counsel and Corporate Secretary |
Exhibit 99.1
|
Press Release issued June 23, 2011 | |
Exhibit 99.2
|
Questions and Answers |
![]() |
News Release |
For more information, contact: | ||
Teresa Paulsen MEDIA | ||
Vice President, Corporate Communication | ||
ConAgra Foods, Inc. | ||
tel: 402-240-5210 | ||
Chris Klinefelter ANALYSTS | ||
Vice President, Investor Relations | ||
ConAgra Foods, Inc. | ||
tel: 402-240-4154 | ||
www.conagrafoods.com |
| Fiscal 2011 fourth-quarter diluted EPS from continuing operations was $0.62 as reported and $0.47 adjusted for items impacting comparability, up 130% as reported and up 24% on a comparable basis. |
| The Consumer Foods segment continued to be challenged by difficult conditions in the quarter, but made progress with pricing actions, as price/mix contributed 2 points to the segments sales. Despite price increases and strong cost savings, the Consumer Foods segments profitability declined for the quarter on a comparable basis, reflecting the impact of 9% inflation in the segments cost of goods sold. |
| Commercial Foods operating profits increased 14% for the quarter due to Lamb Westons ongoing recovery and continued strong flour milling results. |
| Lower incentive compensation expense and recent share repurchases contributed to the quarters EPS results. |
| Full fiscal year 2011 diluted EPS from continuing operations was $1.90 as reported, and diluted EPS adjusted for items impacting comparability was $1.75. |
| Full fiscal year 2011 operating cash flow exceeded $1.3 billion, in line with targets. |
| The company currently expects fiscal 2012 diluted EPS, adjusted for items impacting comparability, to grow at a low- to mid-single-digit rate over the comparable base of $1.75 earned in fiscal 2011. |
| Brands posting sales growth for the quarter included Hebrew National, Marie Callenders, Peter Pan, Reddi-wip, Ro*Tel, Slim Jim, Wesson, and others. |
| More brand details can be found in the Q&A document accompanying this release. |
| Corporate expense was $58 million for the quarter and $124 million in the year-ago period. Current-quarter amounts include $7 million of net hedging benefit, and prior-year amounts |
include $18 million of expense from other items impacting comparability. Excluding these amounts, Corporate expense was $66 million for the current quarter and $106 million in the year-ago period; the decrease largely reflects lower incentive compensation expense, and, to a lesser extent, other benefits from ongoing cost reduction efforts. |
| Net interest expense was $55 million in the current quarter, compared with $39 million in the year-ago period. The increase is due primarily to a former debtors repayment in full of the payment-in-kind notes receivable related to the divestiture of the Trading & Merchandising operations, and thus the company no longer receives interest income from those notes. Prior-year amounts included $22 million of income from those notes. |
| The company repurchased approximately $138 million, or approximately 6 million shares, of its common stock during the quarter. The company has approximately $125 million remaining on its existing share repurchase authorization. |
| Equity method investment earnings were $9 million in the current quarter and $4 million in the year-ago period. |
| The effective tax rate for continuing operations for the quarter was approximately 33%. |
| For the quarter, capital expenditures from continuing operations for property, plant, and equipment were $119 million, compared with $123 million in the year-ago period. Depreciation and amortization expense from continuing operations was approximately $97 million for the quarter; this compares with a total of $85 million in the year-ago period. |
| Dividends for the quarter totaled $98 million versus $89 million for the year-ago period, reflecting an increase in the dividend rate earlier this fiscal year, which was partially offset by the impact of fewer shares outstanding. |
| The company settled its property and business interruption claims related to the June 2009 Garner, N.C., event. In connection with this settlement, the company recorded a pretax gain of approximately $105 million in the fourth quarter, which has been classified as an item impacting comparability in the Consumer Foods results. |
| During the quarter, the company sold its frozen handheld operations, which generated approximately $50 million in net sales in fiscal 2011. The results of those operations, which were not material, have been reclassified to discontinued operations for all periods presented. |
| Subsequent to quarter end, the company purchased the Marie Callenders brand trademarks from Marie Callender Pie Shops, Inc., for approximately $58 million. |
| Approximately $0.16 per diluted share of gain, or $105 million pretax, resulting from an insurance settlement related to the Garner, N.C., event that occurred in 2009. This is classified as a reduction of selling, general, and administrative (SG&A) expense within the Consumer Foods segment. |
| Restructuring charges of approximately $0.02 per share, or $11 million pretax, classified as $9 million of cost of goods sold and $2 million of SG&A within the Consumer Foods segment. These charges relate to the companys decision to move manufacturing activities for efficiency purposes, as well as other plans to optimize manufacturing and distribution networks. |
| Approximately $0.01 per diluted share of net benefit, or $7 million pretax, related to the mark-to-market impact of derivatives used to hedge input costs, temporarily classified in unallocated Corporate expense. These amounts will later be reclassified to the operating segments when underlying hedged items are expensed in cost of goods sold. |
| Approximately $0.05 per diluted share of restructuring expense resulting primarily from the companys decision to move manufacturing activities in Garner, N.C., to Troy, Ohio, as well as the companys decision to move administrative functions in Edina, Minn., to Naperville, Ill. Pretax costs of $39 million are classified as $3 million of cost of goods sold and $32 million of SG&A expense within the Consumer Foods segment, and $4 million of SG&A expense classified within unallocated Corporate expense. |
| Approximately $0.05 per diluted share of impairment charges in the Consumer Foods segment resulting from an updated assessment of manufacturing strategies and the related impact on an existing facility. The $33 million of pretax impairment charge is classified as SG&A. |
| Approximately $0.02 per diluted share of expense, or $14 million of pretax transaction-related costs associated with securing federal tax benefits related to the Delhi, La., sweet potato project. |
| Approximately $0.01 per diluted share of net income tax benefits resulting in a lower-than-planned effective income tax rate. |
| NOTE: Gilroy Foods & Flavors dehydrated vegetable operations generated approximately $0.01 of EPS in the fourth quarter of fiscal 2010. Given the divestiture of those operations, the $0.01 of EPS is classified as discontinued operations. While not included in EPS from continuing operations, the $0.01 is included in the comparable EPS base for fiscal 2010 because those earnings were included in guidance for that year. |
Percent | ||||||||||||
Q4 FY11 | Q4 FY10 | Change | ||||||||||
Diluted EPS from continuing operations |
$ | 0.62 | $ | 0.27 | 130 | % | ||||||
Items impacting comparability: |
||||||||||||
Expense related to restructuring charges |
0.02 | 0.05 | ||||||||||
(Benefit) related to unallocated mark-to-market impact of derivatives |
(0.01 | ) | | |||||||||
(Benefit) related to receipt of insurance proceeds from Garner, N.C., accident |
(0.16 | ) | | |||||||||
Expense related to asset impairment charges |
| 0.05 | ||||||||||
Expense related to tax credit transaction related to Delhi, LA sweet potato facility |
| 0.02 | ||||||||||
(Benefit) of lower-than-planned effective income tax rate |
| (0.01 | ) | |||||||||
Diluted EPS from continuing operations, adjusted for items impacting comparability |
$ | 0.47 | $ | 0.38 | 24 | % | ||||||
Diluted EPS from Gilroy Foods & Flavors operations, reclassified to discontinued operations in
Q4 FY10, but part of the companys FY10 EPS guidance |
| 0.01 | ||||||||||
Diluted EPS adjusted for items impacting comparability |
$ | 0.47 | $ | 0.39 | 21 | % | ||||||
(Dollars in millions) | Percent | |||||||||||
Q4 FY11 | Q4 FY10 | Change | ||||||||||
Consumer Foods Segment Operating Profit |
$ | 367 | $ | 226 | 63 | % | ||||||
Expense related to restructuring charges |
11 | 36 | ||||||||||
(Benefit) related to receipt of insurance proceeds from Garner, N.C., accident |
(105 | ) | | |||||||||
Expense related to asset impairment charges |
| 33 | ||||||||||
Consumer Foods Segment Adjusted Operating Profit |
$ | 273 | $ | 295 | -7 | % | ||||||
Total | ||||
FY11 | ||||
Diluted EPS from continuing operations |
$ | 1.90 | ||
Items impacting comparability: |
||||
Expense related to restructuring charges |
0.08 | |||
(Benefit) related to unallocated mark-to-market impact of derivatives |
(0.05 | ) | ||
(Benefit) related to receipt of insurance proceeds from Garner, N.C., accident |
(0.15 | ) | ||
(Benefit) of gain on early repayment of Trading & Merchandising divestiture-related PIK note |
(0.04 | ) | ||
Rounding |
0.01 | |||
Diluted EPS adjusted for items impacting comparability |
$ | 1.75 | ||
Q1 FY11 | ||||
Diluted EPS from continuing operations |
$ | 0.32 | ||
Items impacting comparability: |
||||
Expense related to Garner, N.C., and Edina, Minn., restructuring charges |
0.01 | |||
Net expense related to unallocated mark-to-market impact of derivatives |
0.01 | |||
Diluted EPS adjusted for items impacting comparability |
$ | 0.34 | ||
FOURTH QUARTER | ||||||||||||
13 Weeks Ended | 13 Weeks Ended | |||||||||||
May 29, 2011 | May 30, 2010 | Percent Change | ||||||||||
SALES
|
||||||||||||
Consumer Foods |
$ | 2,026.9 | $ | 2,014.9 | 0.6 | % | ||||||
Commercial Foods |
1,183.1 | 1,032.6 | 14.6 | % | ||||||||
Total |
3,210.0 | 3,047.5 | 5.3 | % | ||||||||
OPERATING PROFIT |
||||||||||||
Consumer Foods |
$ | 367.3 | $ | 225.8 | 62.7 | % | ||||||
Commercial Foods |
127.3 | 111.3 | 14.4 | % | ||||||||
Total operating profit for segments |
494.6 | 337.1 | 46.7 | % | ||||||||
Reconciliation of total operating profit to
income from continuing operations before
income taxes and equity method investment
earnings |
||||||||||||
Items excluded from segment operating profit: |
||||||||||||
General corporate expense |
(58.4 | ) | (123.8 | ) | (52.8 | )% | ||||||
Interest expense, net |
(54.9 | ) | (38.8 | ) | 41.5 | % | ||||||
Income from continuing operations before
income taxes and equity method investment
earnings |
$ | 381.3 | $ | 174.5 | 118.5 | % | ||||||
FULL FISCAL YEAR | ||||||||||||
52 Weeks Ended | 52 Weeks Ended | |||||||||||
May 29, 2011 | May 30, 2010 | Percent Change | ||||||||||
SALES |
||||||||||||
Consumer Foods |
$ | 8,002.0 | $ | 7,939.7 | 0.8 | % | ||||||
Commercial Foods |
4,301.1 | 4,075.2 | 5.5 | % | ||||||||
Total |
12,303.1 | 12,014.9 | 2.4 | % | ||||||||
OPERATING PROFIT |
||||||||||||
Consumer Foods |
$ | 1,144.3 | $ | 1,109.6 | 3.1 | % | ||||||
Commercial Foods |
504.6 | 538.6 | (6.3 | )% | ||||||||
Total operating profit for segments |
1,648.9 | 1,648.2 | | % | ||||||||
Reconciliation of total operating profit to
income from continuing operations before
income taxes and equity method investment
earnings |
||||||||||||
Items excluded from segment operating profit: |
||||||||||||
General corporate expense |
(246.5 | ) | (406.4 | ) | (39.3 | )% | ||||||
Interest expense, net |
(177.5 | ) | (160.4 | ) | 10.7 | % | ||||||
Income from continuing operations before
income taxes and equity method investment
earnings |
$ | 1,224.9 | $ | 1,081.4 | 13.3 | % | ||||||
FOURTH QUARTER | ||||||||||||
13 Weeks Ended | 13 Weeks Ended | Percent | ||||||||||
May 29, 2011 | May 30, 2010 | Change | ||||||||||
Net sales |
$ | 3,210.0 | $ | 3,047.5 | 5.3 | % | ||||||
Costs and expenses: |
||||||||||||
Cost of goods sold |
2,505.1 | 2,310.5 | 8.4 | % | ||||||||
Selling, general and administrative expenses |
268.7 | 523.7 | (48.7 | )% | ||||||||
Interest expense, net |
54.9 | 38.8 | 41.5 | % | ||||||||
Income from continuing operations before
income taxes and equity method investment
earnings |
381.3 | 174.5 | 118.5 | % | ||||||||
Income tax expense |
130.2 | 56.4 | 130.9 | % | ||||||||
Equity method investment earnings |
9.0 | 4.4 | 104.5 | % | ||||||||
Income from continuing operations |
260.1 | 122.5 | 112.3 | % | ||||||||
Loss from discontinued operations, net of tax |
(4.5 | ) | (32.3 | ) | (86.1 | )% | ||||||
Net income |
$ | 255.6 | $ | 90.2 | 183.4 | % | ||||||
Less: Net income (loss) attributable to
noncontrolling interests |
0.7 | (0.4 | ) | N/A | ||||||||
Net income attributable to ConAgra Foods, Inc. |
$ | 254.9 | $ | 90.6 | 181.3 | % | ||||||
Earnings per share basic |
||||||||||||
Income from continuing operations |
$ | 0.63 | $ | 0.28 | 125.0 | % | ||||||
Loss from discontinued operations |
(0.01 | ) | (0.08 | ) | (87.5 | )% | ||||||
Net income attributable to ConAgra Foods, Inc. |
$ | 0.62 | $ | 0.20 | 210.0 | % | ||||||
Weighted average shares outstanding |
411.4 | 444.0 | (7.3 | )% | ||||||||
Earnings per share diluted |
||||||||||||
Income from continuing operations |
$ | 0.62 | $ | 0.27 | 129.6 | % | ||||||
Loss from discontinued operations |
(0.01 | ) | (0.07 | ) | (85.7 | )% | ||||||
Net income attributable to ConAgra Foods, Inc. |
$ | 0.61 | $ | 0.20 | 205.0 | % | ||||||
Weighted average share and share equivalents
outstanding |
416.9 | 449.4 | (7.2 | )% | ||||||||
FULL FISCAL YEAR | ||||||||||||
52 Weeks Ended | 52 Weeks Ended | Percent | ||||||||||
May 29, 2011 | May 30, 2010 | Change | ||||||||||
Net sales |
$ | 12,303.1 | $ | 12,014.9 | 2.4 | % | ||||||
Costs and expenses: |
||||||||||||
Cost of goods sold |
9,389.6 | 8,953.7 | 4.9 | % | ||||||||
Selling, general and administrative expenses |
1,511.1 | 1,819.4 | (16.9 | )% | ||||||||
Interest expense, net |
177.5 | 160.4 | 10.7 | % | ||||||||
Income from continuing operations before
income taxes and equity method investment
earnings |
1,224.9 | 1,081.4 | 13.3 | % | ||||||||
Income tax expense |
421.0 | 360.9 | 16.7 | % | ||||||||
Equity method investment earnings |
26.4 | 22.1 | 19.5 | % | ||||||||
Income from continuing operations |
830.3 | 742.6 | 11.8 | % | ||||||||
Loss from discontinued operations, net of tax |
(11.5 | ) | (19.3 | ) | (40.4 | )% | ||||||
Net income |
$ | 818.8 | $ | 723.3 | 13.2 | % | ||||||
Less: Net income (loss) attributable to
noncontrolling interests |
1.8 | (2.5 | ) | N/A | ||||||||
Net income attributable to ConAgra Foods, Inc. |
$ | 817.0 | $ | 725.8 | 12.6 | % | ||||||
Earnings per share basic |
||||||||||||
Income from continuing operations |
$ | 1.92 | $ | 1.68 | 14.3 | % | ||||||
Loss from discontinued operations |
(0.02 | ) | (0.05 | ) | (60.0 | )% | ||||||
Net income attributable to ConAgra Foods, Inc. |
$ | 1.90 | $ | 1.63 | 16.6 | % | ||||||
Weighted average shares outstanding |
429.7 | 443.6 | (3.1 | )% | ||||||||
Earnings per share diluted |
||||||||||||
Income from continuing operations |
$ | 1.90 | $ | 1.66 | 14.5 | % | ||||||
Loss from discontinued operations |
(0.02 | ) | (0.04 | ) | (50.0 | )% | ||||||
Net income attributable to ConAgra Foods, Inc. |
$ | 1.88 | $ | 1.62 | 16.0 | % | ||||||
Weighted average share and share equivalents
outstanding |
434.3 | 447.1 | (2.9 | )% | ||||||||
May 29, 2011 | May 30, 2010 | ||||||||
ASSETS |
|||||||||
Current assets |
|||||||||
Cash and cash equivalents |
$ | 972.4 | $ | 953.2 | |||||
Receivables, less allowance for doubtful accounts
of $7.8 and $8.5 |
849.4 | 849.6 | |||||||
Inventories |
1,803.4 | 1,597.9 | |||||||
Prepaid expenses and other current assets |
274.1 | 307.3 | |||||||
Current assets held for sale |
| 252.1 | |||||||
Total current assets |
3,899.3 | 3,960.1 | |||||||
Property, plant and equipment, net |
2,670.1 | 2,602.4 | |||||||
Goodwill |
3,609.4 | 3,549.9 | |||||||
Brands, trademarks and other intangibles, net |
936.3 | 874.8 | |||||||
Other assets |
293.6 | 695.6 | |||||||
Noncurrent assets held for sale |
| 55.2 | |||||||
$ | 11,408.7 | $ | 11,738.0 | ||||||
LIABILITIES AND STOCKHOLDERS EQUITY |
|||||||||
Current liabilities |
|||||||||
Notes payable |
$ | | $ | 0.6 | |||||
Current installments of long-term debt |
363.5 | 260.2 | |||||||
Accounts payable |
1,083.7 | 919.1 | |||||||
Accrued payroll |
124.1 | 263.9 | |||||||
Other accrued liabilities |
554.3 | 579.0 | |||||||
Current liabilities held for sale |
| 13.4 | |||||||
Total current liabilities |
2,125.6 | 2,036.2 | |||||||
Senior long-term debt, excluding current installments |
2,674.4 | 3,030.5 | |||||||
Subordinated debt |
195.9 | 195.9 | |||||||
Other noncurrent liabilities |
1,704.3 | 1,541.3 | |||||||
Noncurrent liabilities held for sale |
| 5.2 | |||||||
Total stockholders equity |
4,708.5 | 4,928.9 | |||||||
$ | 11,408.7 | $ | 11,738.0 | ||||||
52 Weeks Ended | 52 Weeks Ended | |||||||
May 29, 2011 | May 30, 2010 | |||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 818.8 | $ | 723.3 | ||||
Income from discontinued operations |
(11.5 | ) | (19.4 | ) | ||||
Income from continuing operations |
830.3 | 742.7 | ||||||
Adjustments to reconcile income from continuing operations to net
cash flows from operating activities: |
||||||||
Depreciation and amortization |
360.9 | 324.1 | ||||||
Gain on sale of businesses |
| (14.3 | ) | |||||
Asset impairment charges |
19.8 | 64.4 | ||||||
Impairment charges related to Garner accident |
| 31.5 | ||||||
Insurance recoveries recognized related to Garner accident |
(109.4 | ) | (58.1 | ) | ||||
Receipts from insurance carriers related to Garner accident |
64.5 | 50.2 | ||||||
Distributions from affiliates greater (less) than current earnings |
(13.1 | ) | 8.5 | |||||
Share-based payments expense |
44.8 | 55.8 | ||||||
Proceeds from settlement of interest rate swap |
31.5 | | ||||||
Non-cash interest income on payment-in-kind notes |
| (67.9 | ) | |||||
Receipt of interest on payment-in-kind notes earned in prior years |
102.8 | | ||||||
Gain on collection of payment-in-kind notes |
(25.0 | ) | | |||||
Contributions to Company pension plans |
(129.4 | ) | (122.6 | ) | ||||
Other items (including noncurrent deferred income taxes) |
267.5 | 95.8 | ||||||
Change in operating assets and liabilities excluding effects of
business acquisitions and dispositions: |
||||||||
Accounts receivable |
2.8 | (90.1 | ) | |||||
Inventories |
(190.7 | ) | 199.6 | |||||
Prepaid expenses and other current assets |
31.6 | (20.0 | ) | |||||
Accounts payable |
185.0 | 73.9 | ||||||
Accrued payroll |
(139.2 | ) | 96.9 | |||||
Other accrued liabilities |
5.3 | 59.6 | ||||||
Net cash flows from operating activitiescontinuing operations |
1,340.0 | 1,430.0 | ||||||
Net cash flows from operating activitiesdiscontinued operations |
12.3 | 42.7 | ||||||
Net cash flows from operating activities |
1,352.3 | 1,472.7 | ||||||
Cash flows from investing activities: |
||||||||
Additions to property, plant and equipment |
(466.2 | ) | (482.3 | ) | ||||
Receipts from insurance carriers related to Garner accident |
18.0 | 34.8 | ||||||
Sale of businesses |
| 21.7 | ||||||
Sale of property, plant and equipment |
18.9 | 88.4 | ||||||
Purchase of businesses and intangible assets |
(149.1 | ) | (106.5 | ) | ||||
Proceeds from collection of payment-in-kind notes |
412.5 | 91.9 | ||||||
Other items |
| | ||||||
Net cash flows from investing activitiescontinuing operations |
(165.9 | ) | (352.0 | ) | ||||
Net cash flows from investing activitiesdiscontinued operations |
254.8 | (3.3 | ) | |||||
Net cash flows from investing activities |
88.9 | (355.3 | ) | |||||
Cash flows from financing activities: |
||||||||
Repayment of long-term debt |
(294.3 | ) | (15.8 | ) | ||||
Repurchase of ConAgra Foods common shares |
(825.0 | ) | (100.0 | ) | ||||
Cash dividends paid |
(374.5 | ) | (346.7 | ) | ||||
Exercise of stock options and issuance of other stock awards |
59.7 | 54.7 | ||||||
Other items |
2.1 | 3.9 | ||||||
Net cash flows from financing activitiescontinuing operations |
(1,432.0 | ) | (403.9 | ) | ||||
Net cash flows from financing activitiesdiscontinued operations |
(0.1 | ) | (0.6 | ) | ||||
Net cash flows from financing activities |
(1,432.1 | ) | (404.5 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents |
10.1 | (2.9 | ) | |||||
Net change in cash and cash equivalents |
19.2 | 710.0 | ||||||
Discontinued operations cash activity included above: |
||||||||
Cash and cash equivalents at beginning of year |
953.2 | 243.2 | ||||||
Cash and cash equivalents at end of year |
$ | 972.4 | $ | 953.2 | ||||
1. | What were some examples of brands in the Consumer Foods segment posting sales growth for the quarter? | |
- Andy Capps - Blue Bonnet - DAVID - Hebrew National - Libbys - Lightlife - Marie Callenders - PAM - Peter Pan - Reddi-wip - Ro*Tel - Rosarita - Slim Jim - Van Camps - Wesson |
Sales for Parkay and Swiss Miss were in line with year-ago amounts. | ||
2. | What were some examples of brands in the Consumer Foods segment posting sales declines for the quarter? | |
- ACT II - Banquet - Chef Boyardee - Crunch n Munch - Egg Beaters - Healthy Choice - Hunts - Kid Cuisine - La Choy - Manwich - Orville Redenbachers - Snack Pack - Wolf |
3. | What were unit volume changes for the quarter in the Consumer Foods and Commercial Foods segments? | |
Consumer Foods volume was down 3%. | ||
Commercial Foods volume was up slightly. | ||
4. | How much was total depreciation and amortization from continuing operations for the quarter? | |
Approximately $97 million (versus approximately $85 million in Q4 FY10) | ||
5. | How much was total depreciation and amortization from continuing operations for the full fiscal year? | |
Approximately $361 million (versus approximately $324 million in FY10) | ||
6. | How much were capital expenditures from continuing operations for the quarter? | |
Approximately $119 million (versus approximately $123 million in Q4 FY10) |
1
7. | How much were capital expenditures from continuing operations for the full fiscal year? | |
Approximately $466 million (versus approximately $482 million in FY10) | ||
8. | What was the net interest expense for the quarter? | |
Approximately $55 million (versus approximately $39 million in Q4 FY10). The increase is due primarily to the fact that a former debtor repaid in full the payment-in-kind notes receivable related to the divestiture of the Trading & Merchandising operations, and thus the company no longer receives interest income from those notes. Prior-year amounts included $22 million of income from those notes. | ||
9. | What was the net interest expense for the full fiscal year? | |
Approximately $178 million (versus approximately $160 million in FY10) | ||
10. | What was Corporate expense for the quarter? | |
Corporate expense was $58 million for the quarter and $124 million in the year-ago period. Current-quarter amounts include $7 million of net hedging benefit, and prior-year amounts include $18 million of expense from other items impacting comparability. Excluding these amounts, Corporate expense was $66 million for the current quarter and $106 million in the year-ago period; the decrease largely reflects lower incentive compensation expense, and, to a lesser extent, other benefits from ongoing cost reduction efforts. | ||
11. | How much did the company pay in dividends during the quarter? | |
Approximately $98 million (versus approximately $89 million in Q4 FY10), reflecting an increase in the dividend rate earlier this fiscal year, which was partially offset by the impact of fewer shares outstanding. | ||
12. | How much did the company pay in dividends for the full fiscal year? | |
Approximately $375 million | ||
13. | What was the weighted average number of diluted shares outstanding for the quarter and full fiscal year (rounded)? | |
Approximately 417 million shares for the quarter; approximately 434 million shares for the full fiscal year | ||
14. | Did the company repurchase any shares during the quarter? | |
The company repurchased approximately $138 million, or approximately 6 million shares, of its common stock during the quarter. The company has approximately $125 million remaining on its existing share repurchase authorization. |
2
15. | What were the gross margins and operating margins for the quarter ($ amounts in millions, rounded)? | |
Gross margin = segment gross profit* divided by net sales | ||
Gross margin = $698/$3,210 = 22% | ||
Operating margin = segment operating profit** divided by net sales | ||
Operating margin = $495/$3,210 = 15% |
* | Gross profit = net sales - costs of goods sold ($3,210 - $2,512 = $698) | |
** | See fourth-quarter segment operating results for a reconciliation of operating profit to income from continuing operations before income taxes and equity method investment earnings (loss). Income from continuing operations before income taxes and equity method investment earnings (loss), divided by net sales = $381/$3,210 = 12%. |
16. | What is included in the companys net debt at the end of the quarter (rounded, in millions)? |
Q4 FY11 | ||||
Total debt* |
$ | 3,234 | ||
Less: Cash on hand |
$ | 972 | ||
Net debt |
$ | 2,262 |
* | Total debt = notes payable, short-term debt, long-term debt, and subordinated debt. |
17. | What is the net debt to total capital ratio at quarter end? | |
32% currently and 34% a year ago | ||
This ratio is defined as net debt divided by the sum of net debt plus shareholders equity. See question #No. 16 for the components of net debt. | ||
18. | What was the effective tax rate for the quarter? | |
The effective tax rate for continuing operations for the quarter was approximately 33%. | ||
19. | What is the projected tax rate for FY12? | |
The company expects the tax rate to be in the range of 34%, excluding items impacting comparability. The company acknowledges that the quarterly rates may be different from this, given the timing of certain matters, but that the overall rate is expected to approximate 34%. | ||
20. | What are the projected capital expenditures for FY12? | |
Total capital expenditures for fiscal 2012 are expected to be approximately $475 million. | ||
21. | What is the expected net interest expense for FY12? | |
Net interest expense is expected to be approximately $200 million. |
3
22. | What is the current presentation of the quarterly segment sales and operating profits for fiscal years 2011 and 2010, given the recent reclassification of the ConAgra Foods frozen handheld operations to discontinued operations? |
Fiscal 2010 | Fiscal 2011 | |||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Q4 | Total | |||||||||||||||||||||||||||||||
SALES |
||||||||||||||||||||||||||||||||||||||||
Consumer Foods |
$ | 1,843.5 | $ | 2,061.8 | $ | 2,019.5 | $ | 2,014.9 | $ | 7,939.7 | $ | 1,811.5 | $ | 2,091.4 | $ | 2,072.2 | $ | 2,026.9 | $ | 8,002.0 | ||||||||||||||||||||
Commercial Foods |
1,025.7 | 1,021.4 | 995.5 | 1,032.6 | 4,075.2 | 992.8 | 1,056.1 | 1,069.1 | 1,183.1 | 4,301.1 | ||||||||||||||||||||||||||||||
Total |
2,869.2 | 3,083.2 | 3,015.0 | 3,047.5 | 12,014.9 | 2,804.3 | 3,147.5 | 3,141.3 | 3,210.0 | 12,303.1 | ||||||||||||||||||||||||||||||
OPERATING PROFIT |
||||||||||||||||||||||||||||||||||||||||
Consumer Foods |
248.3 | 329.3 | 306.2 | 225.8 | 1,109.6 | 213.5 | 284.0 | 279.5 | 367.3 | 1,144.3 | ||||||||||||||||||||||||||||||
Commercial Foods |
134.0 | 150.9 | 142.4 | 111.3 | 538.6 | 111.8 | 126.2 | 139.3 | 127.3 | 504.6 | ||||||||||||||||||||||||||||||
Total operating profit for segments |
382.3 | 480.2 | 448.6 | 337.1 | 1,648.2 | 325.3 | 410.2 | 418.8 | 494.6 | 1,648.9 | ||||||||||||||||||||||||||||||
Reconciliation of total operating profit to income
from continuing operations before income taxes
and equity method investment earnings |
||||||||||||||||||||||||||||||||||||||||
Items excluded from segment operating profit: |
||||||||||||||||||||||||||||||||||||||||
General corporate expense |
(99.7 | ) | (94.5 | ) | (88.4 | ) | (123.8 | ) | (406.4 | ) | (84.0 | ) | (78.5 | ) | (25.6 | ) | (58.4 | ) | (246.5 | ) | ||||||||||||||||||||
Interest expense, net |
(41.4 | ) | (40.5 | ) | (39.7 | ) | (38.8 | ) | (160.4 | ) | (37.3 | ) | (33.7 | ) | (51.6 | ) | (54.9 | ) | (177.5 | ) | ||||||||||||||||||||
Income from continuing operations before income
taxes and equity method investment earnings |
$ | 241.2 | $ | 345.2 | $ | 320.5 | $ | 174.5 | $ | 1,081.4 | $ | 204.0 | $ | 298.0 | $ | 341.6 | $ | 381.3 | $ | 1,224.9 | ||||||||||||||||||||
4
23. | What is the current presentation of the quarterly income statement for fiscal years 2011 and 2010, given the recent reclassification of the ConAgra Foods frozen handheld operations to discontinued operations? |
Fiscal 2010 | Fiscal 2011 | |||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Q4 | Total | |||||||||||||||||||||||||||||||
Net sales |
$ | 2,869.2 | $ | 3,083.2 | $ | 3,015.0 | $ | 3,047.5 | $ | 12,014.9 | $ | 2,804.3 | $ | 3,147.5 | $ | 3,141.3 | $ | 3,210.0 | $ | 12,303.1 | ||||||||||||||||||||
Costs and expenses: |
||||||||||||||||||||||||||||||||||||||||
Cost of goods sold |
2,164.8 | 2,241.6 | 2,236.8 | 2,310.5 | 8,953.7 | 2,153.0 | 2,387.5 | 2,344.0 | 2,505.1 | 9,389.6 | ||||||||||||||||||||||||||||||
SG&A expenses |
421.8 | 455.9 | 418.0 | 523.7 | 1,819.4 | 410.0 | 428.3 | 404.1 | 268.7 | 1,511.1 | ||||||||||||||||||||||||||||||
Interest expense, net |
41.4 | 40.5 | 39.7 | 38.8 | 160.4 | 37.3 | 33.7 | 51.6 | 54.9 | 177.5 | ||||||||||||||||||||||||||||||
Income from continuing operations before
income taxes and equity method
investment earnings |
241.2 | 345.2 | 320.5 | 174.5 | 1,081.4 | 204.0 | 298.0 | 341.6 | 381.3 | 1,224.9 | ||||||||||||||||||||||||||||||
Income tax expense |
88.2 | 113.8 | 102.5 | 56.4 | 360.9 | 66.9 | 101.4 | 122.5 | 130.2 | 421.0 | ||||||||||||||||||||||||||||||
Equity method investment earnings |
8.9 | 5.9 | 2.9 | 4.4 | 22.1 | 6.2 | 4.6 | 6.6 | 9.0 | 26.4 | ||||||||||||||||||||||||||||||
Income from continuing operations |
161.9 | 237.3 | 220.9 | 122.5 | 742.6 | 143.3 | 201.2 | 225.7 | 260.1 | 830.3 | ||||||||||||||||||||||||||||||
Income (loss) from discontinued
operations, net of tax |
3.3 | 1.9 | 7.8 | (32.3 | ) | (19.3 | ) | 3.0 | 0.6 | (10.6 | ) | (4.5 | ) | (11.5 | ) | |||||||||||||||||||||||||
Net income |
165.2 | 239.2 | 228.7 | 90.2 | 723.3 | 146.3 | 201.8 | 215.1 | 255.6 | 818.8 | ||||||||||||||||||||||||||||||
Less noncontrolling interests |
(0.7 | ) | (0.5 | ) | (0.9 | ) | (0.4 | ) | (2.5 | ) | (0.1 | ) | 0.9 | 0.3 | 0.7 | 1.8 | ||||||||||||||||||||||||
Net income attributable to CAG |
$ | 165.9 | $ | 239.7 | $ | 229.6 | $ | 90.6 | $ | 725.8 | $ | 146.4 | $ | 200.9 | $ | 214.8 | $ | 254.9 | $ | 817.0 | ||||||||||||||||||||
5
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