EX-99 2 ex99080806.htm PRESS RELEASE 1ST QUARTER 2006 EARNINGS Press Release 1st Quarter 2006 Earnings

August 7, 2006                      FOR IMMEDIATE RELEASE
                    Contact: Kraig Kayser, CEO (608-757-6000)


PRESS RELEASE

Seneca Foods Corporation reported net sales of $148,341,000 for the quarter ended July 1, 2006, versus $156,595,000 for the comparable period last year. The current year’s net earnings were $3,659,000 or $0.33 per diluted share, compared with $2,420,000 or $0.22 per diluted share, last year. Current year-to-date pre-tax results include other income of $688,000 which represents a gain on the sale of two previously closed facilities.
Subsequent to the end of the quarter ended July 1, 2006, the Company began negotiations to acquire Signature Fruit Company, LLC. We expect this transaction to be completed by the end of August.
Seneca Foods Corporation is primarily a vegetable processing company with manufacturing facilities located throughout the United States. Its products are sold under the Libby’sÒ, Aunt Nellie’s Farm KitchenÒ, Stokely’sÒ, READÒ, and SenecaÒ labels as well as through the private label and industrial markets. In addition, under an alliance with General Mills Operations, Inc., a successor to the Pillsbury Company and a subsidiary of General Mills, Inc., Seneca produces canned and frozen vegetables, which are sold by General Mills Operations, Inc. under the Green GiantÒ label. Seneca’s common stock is traded on the Nasdaq National Stock Market under the symbols “SENEA” and “SENEB”.
 
Seneca Foods Corporation
              
Unaudited Condensed Consolidated Statements of Net Earnings
              
               
For the Periods Ended July 1, 2006 and July 2, 2005
              
(In thousands of dollars, except share data)
              
               
               
         
Quarter
      
   
2006
     
2005
 
               
Net sales
  
$
148,341
        
$
156,595
  
                     
Other operating income, net (notes 1 and 2)
    
688
         
427
 
                     
Operating income
  
$
9,568
        
$
7,962
  
Interest expense (net)
    
3,628
         
4,020
 
Earnings before income taxes
  
$
5,940
        
$
3,942
  
                     
Income taxes
    
2,281
         
1,522
 
                     
Net earnings
 
$
3,659
        
$
2,420
  
                     
Earnings applicable to common stock (note 3)
  
$
2,244
        
$
1,465
  
                     
Basic earnings per share
 
$
0.33
        
$
0.22
  
                     
Diluted earnings per share
 
$
0.33
        
$
0.22
  
                     
Weighted average shares outstanding basic
    
6,835,414
         
6,752,703
 
                     
Weighted average shares outstanding diluted
    
6,902,804
         
6,820,093
 
                     
Note 1: Other operating income in the current quarter of $688,000 represents a gain on the sale of two previously closed facilities.
                    
Note 2: Other operating income in the prior quarter of $427,000 represents a gain on the sale of a previously closed facility.
                    
Note 3: The Company uses the "two-class" method for basic earnings per share by dividing the earnings allocated to common shareholders by the weighted average of common shares outstanding during the period. The diluted earnings per share includes the effect of convertible shares for the each period presented. Average common and participating shares totaled 11,125,723 for the quarter ended
July 1, 2006.
                    
 
                    
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