-----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, IssSUkqZQNK+TvPblstPW8LQ+koH5ANTRO3FoLz4q/vzjid3PgiZIBPPXOB88pVk sJ488NHt1yOvM8o22X1oGQ== 0000898430-00-000841.txt : 20000321 0000898430-00-000841.hdr.sgml : 20000321 ACCESSION NUMBER: 0000898430-00-000841 CONFORMED SUBMISSION TYPE: DEF 14A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000425 FILED AS OF DATE: 20000320 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PROVENA FOODS INC CENTRAL INDEX KEY: 0000814139 STANDARD INDUSTRIAL CLASSIFICATION: SAUSAGE, OTHER PREPARED MEAT PRODUCTS [2013] IRS NUMBER: 952782215 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: DEF 14A SEC ACT: SEC FILE NUMBER: 001-10741 FILM NUMBER: 574014 BUSINESS ADDRESS: STREET 1: 5010 EUCALYPTUS AVE CITY: CHINO STATE: CA ZIP: 91710 BUSINESS PHONE: 7146271082 MAIL ADDRESS: STREET 1: 5010 EUCALYPTUS AVENUE CITY: CHINO STATE: CA ZIP: 91710 DEF 14A 1 DEFINITIVE PROXY MATERIALS ================================================================================ SCHEDULE 14A INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 (Amendment No. ) Filed by the Registrant [X] Filed by a Party other than the Registrant [_] Check the appropriate box: [_] Preliminary Proxy Statement [_] Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) [X] Definitive Proxy Statement [_] Definitive Additional Materials [_] Soliciting Material Pursuant to Section 240.14a-11(c) or Section 240.14a-12 Provena Foods Inc. - -------------------------------------------------------------------------------- (Name of Registrant as Specified In Its Charter) - -------------------------------------------------------------------------------- (Name of Person(s) Filing Proxy Statement, if other than the Registrant) Payment of Filing Fee (Check the appropriate box): [X] No fee required [_] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11. (1) Title of each class of securities to which transaction applies: ------------------------------------------------------------------------- (2) Aggregate number of securities to which transaction applies: ------------------------------------------------------------------------- (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the filing fee is calculated and state how it was determined): ------------------------------------------------------------------------- (4) Proposed maximum aggregate value of transaction: ------------------------------------------------------------------------- (5) Total fee paid: ------------------------------------------------------------------------- [_] Fee paid previously with preliminary materials. [_] Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. (1) Amount Previously Paid: ------------------------------------------------------------------------- PROVENA FOODS INC. 5010 Eucalyptus Avenue Chino, California 91710 NOTICE OF APRIL 25, 2000 ANNUAL MEETING OF SHAREHOLDERS TO THE SHAREHOLDERS OF PROVENA FOODS INC.: NOTICE IS HEREBY GIVEN that the Annual Meeting of Shareholders of Provena Foods Inc., a California corporation, will be held on Tuesday, April 25, 2000, at 1l:OO a.m., at the Corporation's principal office at 5010 Eucalyptus Avenue, Chino, California 91710 for the following purposes: 1. To elect directors to serve until the next Annual Meeting of Shareholders; 2. To transact such other business as may properly come before the Meeting or any adjournment thereof. The Board of Directors has fixed the close of business on March 6, 2000 as the record date for the determination of shareholders entitled to receive notice of, and to vote at, said meeting or any adjournment thereof. WHETHER OR NOT YOU PLAN TO ATTEND, WE URGE YOU TO SIGN AND RETURN THE ENCLOSED PROXY, WHICH YOU MAY REVOKE PRIOR TO ITS USE. PROXY STATEMENT --------------- This Proxy Statement relates to the solicitation by the Board of Directors of Provena Foods Inc. (the "Company") of proxies to be used at the Company's. April 25, 2000 Annual Meeting of Shareholders (and any adjournment thereof) for the purposes set forth in the above Notice. This Proxy Statement is to be mailed to shareholders on or about March 13, 2000. All expenses of distributing this Proxy Statement, the Notice, and the Proxy card are to be borne by the Company. Shares represented by a Proxy card returned properly signed will be voted as directed in the Proxy card. If no direction is made for a matter, the Proxy will be voted for the matter. A Proxy may be revoked at any time before it is voted at the meeting. VOTING SECURITIES AND PRINCIPAL SHAREHOLDERS Only shareholders of record at the close of business on March 6, 2000 are entitled to vote at the meeting or any adjournment thereof. On that date the Company had outstanding 2,986,005 shares of common stock. Each share is entitled to one vote, subject to the right to cumulate votes in the election of directors, as described below under Election of Directors. IMPORTANT PLEASE SIGN AND RETURN THE ENCLOSED PROXY PROMPTLY. The following table sets forth, for each officer, director and 5% shareholder of the Company and for all officers and directors as a group (8 persons), the number and percent of outstanding shares of common stock of the Company owned on March 6, 2000.
Shares Beneficially Owned(2) ------------------------------------------------ Without Options(6) Options Exercised(7) ------------------ -------------------- Name or Category(1) Number Percent Number Percent ------------------- ------ ------- ------ ------- John D. Determan 335,327 11.2% 335,327 10.8% Penny S. Bolton (3) 378,463 12.7% 378,463 12.2% Theodore L. Arena 140,994 4.7% 232,452 7.5% Ronald A. Provera(4) 322,330 10.8% 322,330 10.4% Sam0 Zito 352,330 11.8% 352,330 11.4% Thomas J. Mulroney(5) 18,338 .6% 33,991 1.1% Louis A. Arena 288,030 9.6% 288,030 9.3% John M. Boukather 2,868 .l% 2,868 .l% Joseph W. Wolbers 12,250 .4% 12,250 .4% Officers and Directors 1,472,467 49.2% 1,579,578 51.0% Shares Outstanding 2,986,005 100% 3,093,116 100%
- -------------- (1) The address for each person is c/o Provena Foods Inc., 5010 Eucalyptus Avenue, Chino, California 91710. (2) All shares are held directly except as noted below. (3) Penny S. Bolton is the widow of James H. Bolton, former chairman of the Company. Her shares are not included in the group's shares. (4) Includes 320,930 shares held by the family trust of Ronald A. Provera and his wife, Madelyn M. Provera. (5) Includes 3,800 shares owned by Marsha Mulroney, wife of Thomas J. Mulroney. (6) Excludes options under the Company's Incentive Stock Option Plan to Theodore L. Arena to purchase 91,458 shares, to Thomas J. Mulroney to purchase 15,653 shares and to all officers and directors as a group to purchase 107,111 shares. (7) The options of Messrs. Arena, Mulroney, and the group are deemed exercised. No other person is known to the Company to own beneficially more than 5% of the outstanding shares of common stock of me Company. Based on copies of filed forms and written representations, the Company believes that all officers, directors and 10% shareholders have timely filed all Forms 3, 4 and 5 required for 1999 and (except as previously disclosed) prior years by Section 16(a) of the Securities Exchange Act. ELECTION OF DIRECTORS Eight directors are to be elected to serve until their successors are elected at the next annual meeting. Shareholders are entitled to cumulate votes for directors upon notice by a shareholder at the meeting prior to the voting. Under cumulative voting, each shareholder may cast a number of votes equal to the number of directors to be elected multiplied by the number of the shareholder's shares, and may allocate the votes to one or distribute them among some or all of the candidates. The eight candidates nominated prior to the voting receiving the highest number of votes are elected directors. Unless otherwise directed in the Proxy card, if cumulative voting is invoked, votes under proxies received pursuant to this solicitation will be distributed among the eight nominees listed below so as to elect as many of them as possible. If any nominees become unavailable, the proxies may be voted in the proxyholders' discretion for substitute nominees. -2- NOMINEES FOR BOARD OF DIRECTORS The name, age, principal position for the past five years and other relevant information for each nominee for the Board of Directors is as follows: John D. Determan, age 67, has been a vice president and director of the Company since its formation in 1972, General Counsel from 1986 to 1992, Chief Executive Officer from 1992 to February 21, 1998 and Chairman of the Board since 1992. He is a member of the audit and option committees. Theodore L. Arena, age 57, has been the General Manager of the Company's meat division since 1976, the President and a director of the Company since 1985 and the Chief Executive Officer since February 21, 1998. He is the nephew of Louis A. Arena, a director of the Company. Ronald A. Provera, age 62, has been the secretary and a director of the Company since its formation in 1972 and was the General Manager of Sav-On Food Co., the Company's distribution business, from its formation in 1960 until its liquidation in 1991. He is currently providing sales support to the Company's pasta division. He is a member of the option committee. Santo Zito, age 63, has been the Company's plant engineer since 1976, and a vice president and director of the Company since its formation in 1972. He is currently the General Manager of the pasta division. He is a member of the option committee. Thomas J. Mulroney, age 54, has been the Company's chief accountant since 1976, the Chief Financial Officer since 1987, a vice president since 1991, and a director since 1992. Louis A. Arena, age 77, has been a director of the Company since 1972, a vice president from 1972 to 1989, and General Manager of the Royal-Angelus Macaroni Co. division from 1975 until his retirement in 1989. Joseph W. Wolbers, age 70, has been a director of the Company and Chairman of the audit committee since 1990. He retired in 1989 as a vice president of First Interstate Bank where he had been employed since 1950. John M. Boukather, age 63, is a management consultant. He was the Director of Operations of PW Supermarkets from 1993 to 1994, Vice President, Retail Sales, of Certified Grocers of California, Ltd. from 1992 to 1993 and president of Pantry Food Markets from 1983 to 1987. He has been a director of the Company and member of the audit committee since 1987. BOARD COMMITTEES AND MEETINGS The Board of Directors has two committees, the audit committee and the option committee. The board has no executive, nominating or compensation committees, and the full board acts in these capacities. The audit committee's function is to oversee the Company's relationship with its independent accountants and to ensure that the Company's financial practices are adequate. The audit committee met once in 1999. The option committee's function is to grant options under and administer the Company's 1987 Incentive Stock Option Plan. The option committee did not meet in 1999. The board held four formal meetings and did not act by unanimous written consent during 1999. All members were present at all board and committee meetings. Directors who are not officers or employees of the Company are paid a fee of $1,000 for each board meeting or committee meeting attended. -3- EXECUTIVE COMPENSATION The following table sets forth for the years ended December 31, 1999, 1998 and 1997, all compensation of all executive officers of the Company serving at December 31, 1999.
Annual Restricted SEP/IRA Name and Position Year Salary Option Award Contributions ----------------- ---- ------ ------------ ------------- Shares John D. Determan, 1999 $ 80,637 $ 12,096 Chairman of the Board 1998 80,771 12,116 1997 65,568 9,849 Theodore L. Arena, 1999 127,344 19,102 President and 1998 133,749 20,062 Chief Executive Officer 1997 110,790 91,458 16,618 Ronald A. Provera, 1999 127,536 19,130 Secretary 1998 129,641 19,446 1997 105,414 15,535 Santo Zito, 1999 129,640 19,446 Vice President 1998 132,806 19,921 1997 108,195 16,229 Thomas J. Mulroney, 1999 127,757 19,164 Chief Financial Officer 1998 129,793 19,469 1997 105,552 18,291 15,833
See Incentive Stock Option Plan below for information on Incentive Stock --------------------------- Options. See Simplified Employee Pension Plan below for more information on --------------------------- SEP/IRA Contributions. The Company does not currently pay bonuses or deferred compensation to any executive officer and does not provide them with automobiles, other perquisites, employment contracts or "golden parachute" arrangements. Effective November 1, 1997, Mr. Determan's basic annual salary was raised from $60,000 to $75,000 and the basic annual salary of each of the other four officers was raised from $100,000 to $125,000. The annual salary shown above is as reported on Form W-2 and includes the cost of life insurance and other costs taxable to the officer. Simplified Employee Pension Plan - -------------------------------- In 1988, the Company adopted a Simplified Employee Pension-Individual Retirement Accounts ("SEP-IRA")plan and executed SEP-IRA Agreements with Wells Fargo Bank, N. A. and Dean Witter Reynolds Inc., covering all employees at least 18 years old who have worked at least six months and earned at least $300 during the year, except certain union employees. The Company makes contributions under the plan in the discretion of the board, allocated in proportion to compensation, to an Individual Retirement Account ("IRA")established by each eligible employee. Contributions, up to 15% of eligible compensation, are deductible by the Company and not taxable to the employee. An employee may withdraw SEP-IRA funds from the employee's IRA. Withdrawals are taxable as ordinary income, and withdrawals before age 59-l/2 may be subject to tax penalties. For 1999, the Company contributed $419,340 to IRA's under the plan. 4 Incentive Stock Option Plan - --------------------------- In April 1987, the Company adopted an Incentive Stock Option Plan under Section 422A of the Internal Revenue Code of 1986. Under the plan, as amended in 1988, for a period of 10 years from the date of adoption, an Option Committee appointed by the Board of Directors is authorized in its discretion to grant to key management employees options to purchase up to an aggregate of 261,704 shares of common stock of the Company. The options may become exercisable in such installments as may be established by the Option Committee. The purchase price of shares covered by an option may not be less than the market value of the shares on the date of grant. The term of an option may not exceed 10 years and an option may not become exercisable in any year with respect to the purchase of more than $100,000 worth of shares based on the market value on the date of grant. In August 1987, options were granted under the plan to purchase 185,000 shares at a price of $7.00 per share, 125,000 to Theodore L. Arena, 30,000 to Thomas J. Mulroney and 30,000 to another employee. In June 1988, those options were terminated and options were granted to purchase 230,000 shares at a price of $3-5/8 per share, 155,000 to Mr. Arena, 30,000 to Mr Mulroney, and the balance to three other employees. In December 1992, the outstanding options were terminated and options were granted to purchase 260,000 shares at a price of $2- 1/4 per share, 150,000 to Mr. Arena, 30,000 to Mr. Mulroney, and the balance to four other employees. In April 1997, outstanding options of Messrs. Arena and Mulroney to purchase 60,000 and 12,000 shares, respectively, were terminated and options were granted to Messrs. Arena and Mulroney to purchase 91,458 and 18,291 shares, respectively, at a price of $2-9/16 per share . In 1997 and 1998, options were exercised to purchase 20,400 and 10,000 shares, respectively, none by executive officers. In 1999, Mr. Mulroney exercised options to purchase 2,638 shares. The following table shows, for the two executive officers, the number of shares acquired on exercise of options in 1999, the value realized on exercised of options based on the year end closing price of $2-3/4, the number of unexercised options held on January 1, 2000, and their aggregate value based on the year end closing price. All unexercised options are exercisable. Aggregate Option Exercises in 1999 and Option Values at January 1, 2000 -----------------------------------------------------------------------
Shares Acquired Value Number of Unexercised Value of Unexercised In-the- Name on Exercise Realized Options at 1//1/00 Money Options at 1/1/00 ---- ----------- -------- -------------------- ------------------------- Theodore L. Arena -O- -O- 91,458 $17,148 Thomas J. Mulroney 2,638 $495 15,653 $ 2,935
Compensation Committee Interlocks and Insider Participation - ----------------------------------------------------------- The Company has no compensation committee. All executive officers are members of the board and participate in the board's deliberations concerning executive compensation. Board Report on Executive Compensation - ------------------------------------- The major Company policy affecting past and current executive compensation is to run the Company for the benefit of its shareholders and not for the benefit of management. The board members own nearly 50% of the outstanding shares of the Company. Four out of five of the executive officers are substantial shareholders of the Company. Maintaining low executive compensation and promoting management stock ownership tends to cause the executive officers who are substantial shareholders to have the same interest as the other shareholders in the long term performance of the Company. Their stock interest causes them to be directly rewarded or penalized by the extent the Company continues to pay dividends and maintain its growth, which should ultimately be reflected in the value of the Company's stock. -5- The salary of the one executive officer who is not a substantial shareholder is based upon the judgment of the board of how well the officer is performing his duties and how well the Company is performing. There is no specific relationship between Company performance and compensation for any executive officer, other than through stock options for two executive officers. John D. Determan Ronald A. Provera John M. Boukather Thomas J. Mulroney Theodore L. Arena Santo Zito Joseph W. Wolbers Louis A. Arena Performance Graph - ----------------- The following graph compares the yearly percentage change in the cumulative total shareholder return on the Company's common stock to the S&P 500 Stock Index and the S&P Food Group Index for five years, assuming reinvestment of dividends. 5 YEAR CUMULATIVE TOTAL RETURNS Assuming Reinvestment of Dividends [PERFORMANCE GRAPH] CUMULATIVE % CHANGE AT 12/31 OF YEAR
1994 1995 1996 1997 1998 1999 S&P 500 Stock Index 100 138 169 226 290 351 S&P Food Group Index 100 128 151 217 234 184 Provena Foods Inc. 100 145 105 134 134 129
RELATIONSHIP WITH INDEPENDENT ACCOUNTANTS KPMG LLP is the Company's firm of independent certified public accountants and is expected to continue in this capacity for the current year. Representatives of KPMG LLP have indicated that they intend to be present at the Annual Meeting and will have an opportunity to address the shareholders and respond to appropriate questions. OTHER MATTERS The Board of Directors knows of no business which will be presented for consideration at the Annual Meeting other than as stated in the Notice of Meeting. If any other business should properly come before the meeting, votes may be cast pursuant to the proxies solicited hereby with respect to such business in the discretion of the proxyholders. -6- 2000 SHAREHOLDER PROPOSALS Any proposal a shareholder of the Company wishes to have presented at the 2000 Annual Meeting of Shareholders must be received by the Company by January 1, 2001. By Order of the Board of Directors. JOHN D. DETERMAN Chino, California Chairman of the Board March 13, 2000 PLEASE SIGN AND RETURN THE ENCLOSED PROXY PROMPTLY IN THE ACCOMPANYING SELF-ADDRESSED POSTAGE PREPAID ENVELOPE. -7- - -------------------------------------------------------------------------------- PROVENA FOODS INC. SHAREHOLDER'S PROXY This Proxy is Solicited on Behalf of the Board of Directors The undersigned hereby appoints JOHN D. DETERMAN, THEODORE L. ARENA and RONALD A. PROVERA as Proxies, each with full power of substitution, to represent and to vote as directed below, all of the shares of common stock of Provena Foods Inc. held of record by the undersigned on March 6, 2000, at the Annual Meeting of Shareholders to be held on April 25, 2000 or any adjournment thereof. This Proxy, when properly executed, will be voted as the undersigned shareholder directs below. IF NO DIRECTION IS GIVEN, THIS PROXY WILL BE VOTED FOR PROPOSAL 1. (Continued and To Be Signed on Other Side) - -------------------------------------------------------------------------------- . FOLD AND DETACH HERE . - -------------------------------------------------------------------------------- [X]Please mark your votes as indicated IF NO DIRECTION IS GIVEN, THIS PROXY WILL BE VOTED FOR PROPOSAL 1. Proposal Directions -------- ---------------------------------------------------- 1. ELECTION OF DIRECTORS [_]FOR all nominees [_]WITHOUT AUTHORITY To elect the nominees except those deleted. to vote for directors. listed below. To withhold authority to vote for any nominees, please strike out their names below. John D. Determan, Theodore L. Arena, Ronald A. Provera, Louis A. Arena, Santo Zito, Thomas J. Mulroney, John M. Boukatber and Joseph W. Wolbers. 2. In their discretion, to vote on such other business as may properly come before the meeting. PLEASE MARK, DATE, SIGN AND RETURN PROXY CARD PROMPTLY IN THE ENCLOSED ENVELOPE. Mark [_] if you plan to attend meeting. Signature(s) ________________________________________ Date _________________ NOTE: Please sign exactly as name appears above. If signing as representative, state capacity. - -------------------------------------------------------------------------------- . FOLD AND DETACH HERE . -----END PRIVACY-ENHANCED MESSAGE-----