EX-99.4 6 profomasig.htm PRO FORMA SENECA FOODS CORPORATION AND SIGNATURE FRUIT Pro Forma Seneca Foods Corporation and Signature Fruit
Exhibit 99.4
 
SENECA FOODS CORPORATION AND SUBSIDIARIES
  
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEETS
  
JULY 1, 2006 (ACQUIRER) AND APRIL 1, 2006 (ACQUIREE)
  
(In Thousands of Dollars)
  
                       
                       
   
Acquirer
                  
   
Consolidated
  
Acquiree
  
Pro Forma
  
Pro Forma
  
   
Historical
  
Historical
  
Adjustments
  
Balance
  
ASSETS
                      
Current Assets:
                      
Cash and Cash Equivalents
  
$
1,654
  
$
1,425
              
$
3,079
  
Accounts Receivable, Net
    
40,669
   
18,523
   
1,157
   
(a
)
  
60,349
 
Inventories
    
301,241
   
112,103
   
(7,231
)
  
(a
)
  
406,113
 
Off-Season Reserve
    
42,013
                     
42,013
 
Assets Held For Sale
    
901
         
21,700
   
(a
)
  
22,601
 
Deferred Income Taxes
    
6,032
                     
6,032
 
Other Current Assets
    
6,281
   
2,234
   
(214
)
  
(a
)
  
5,278
 
             
(3,023
)
  
(b
)
    
Total Current Assets
    
398,791
   
134,285
   
12,389
         
545,465
 
Property, Plant and Equipment, Net
    
146,648
   
74,333
   
(14,331
)
  
(a
)
  
174,221
 
                 
(32,429
)
  
(b
)
      
Other Assets
    
1,155
   
194
   
(191
)
  
(a
)
  
1,158
 
   
$
546,594
  
$
208,812
    
($34,562
)
    
$
720,844
  
LIABILITIES AND STOCKHOLDERS' EQUITY
                                
Current Liabilities:
                                
Notes Payable
  
$
55,483
  
$
50,539
  
$
20,000
    
(b
)
$
126,022
  
Accounts Payable
    
59,277
   
3,833
   
(1,651
)
  
(a
)
  
61,459
 
Accrued Expenses
    
37,446
   
17,163
   
1,901
   
(a
)
  
56,510
 
Income Taxes
    
2,853
                     
2,853
 
Current Portion of Long Term Debt and Capital Lease Obligations
    
9,606
   
5,817
   
(5,817
)
  
(b
)
  
9,606
 
Total Current Liabilities
    
164,665
   
77,352
   
14,433
          
256,450
 
Long Term Debt, Less Current Portion
    
137,564
   
90,467
   
(41,827
)
  
(b
)
  
186,204
 
Capital Lease Obligations, Less Current Portion
    
3,670
                     
3,670
 
Other Liabilities
    
12,710
   
7,360
   
640
   
(a
)
  
20,710
 
Deferred Income Taxes
    
6,608
               
6,608
 
Total Liabilities
    
325,217
   
175,179
   
(26,754
)
        
473,642
 
Stockholders' Equity:
                                
Preferred Stock
    
54,486
         
25,000
   
(b
)
  
79,486
 
Common Stock
    
2,890
                     
2,890
 
Additional Paid-in-Capital
    
17,810
   
53,000
   
(52,175
)
  
(b
)
  
19,419
 
                 
784
   
(c
)
      
Accumulated Other Comprehensive Loss
    
(49
)
                    
(49
)
Retained Earnings
    
146,240
   
(19,367
)
  
19,367
   
(b
)
  
145,456
 
             
(784
)
  
(c
)
    
Stockholders' Equity
    
221,377
   
33,633
   
(7,808
)
      
247,202
 
   
$
546,594
  
$
208,812
    
($34,562
)
    
$
720,844
  
                                 
The accompanying notes are an integral part of these unaudited
                        
Pro Forma Condensed Financial Statements.
                                

 
 
 


           
SENECA FOODS CORPORATION, AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF NET EARNINGS
TWELVE MONTHS ENDED MARCH 31, 2006 (ACQUIRER) AND DECEMBER 31, 2005 (ACQUIREE)
(In thousands, except per share data)
           
           
 
Acquirer
        
 
Consolidated
Acquiree
Pro Forma
  
Pro Forma
 
Historical
Historical
Adjustments
  
Balance
           
Net Sales
$883,823
$241,189
   
$1,125,012
           
Costs and Expenses:
          
           
Cost of Product Sold
796,224
223,573
(1,884)
(e)
1,017,913
Selling, General and Administrative
33,322
21,926
   
55,248
Plant Restructuring
1,920
 
 
  
1,920
Total Costs and Expenses
831,466
245,499
(1,884)
  
1,075,081
Operating Income (Loss)
52,357
(4,310)
1,884
 
49,931
Other Expense (Income), net
1,115
(944)
    
171
Interest Expense
15,784
15,394
(1,757)
(d)
29,421
           
Earnings (Loss) Before Income Taxes
35,458
(18,760)
3,641
 
20,339
           
Income Taxes
13,465
(7,838)
2,102
(f)
7,729
           
Earnings (Loss) from Continued Operations
$21,993
($10,922)
$1,539
 
$12,610
           
Net Earnings (Loss) Common Stock
$13,468
($10,922)
$1,539
 
$4,804
           
Diluted Earnings Per Share
$1.96
 
 
 
$0.52
           
Weighted Average Common Shares Outstanding-Diluted
6,878
 
1,025
(b)
7,903
           
The accompanying notes are an integral part of these unaudited Pro Forma Condensed Financial Statements.
        

 
 
 


             
             
SENECA FOODS CORPORATION, AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF NET EARNINGS
THREE MONTHS ENDED JULY 1, 2006 (ACQUIRER) AND THREE MONTHS ENDED APRIL 1, 2006 (ACQUIREE)
(In thousands, except per share data)
           
           
 
Acquirer
        
 
Consolidated
Acquiree
Pro Forma
  
Pro Forma
 
Historical
Historical
Adjustments
  
Balance
         
Net Sales
$148,341
$62,054
   
$210,395
           
Costs and Expenses:
          
           
Cost of Product Sold
127,482
55,046
(471)
(e)
182,057
Selling, General and Administrative
11,979
5,459
   
17,438
Other Operating Income
(688)
 
 
  
(688)
Total Costs and Expenses
138,773
60,505
(471)
  
198,807
Operating Income
9,568
1,549
                                       471
 
11,588
Other Expense, net
  
731
   
731
Interest Expense
3,628
3,805
(439)
(d)
6,994
           
Earnings (Loss) Before Income Taxes
5,940
(2,987)
910
 
3,863
           
Income Taxes
2,281
(1,045)
232
(f)
1,468
           
Earnings (Loss) from Continued Operations
$3,659
($1,942)
$678
 
$2,395
           
Net Earnings (Loss) Common Stock
$2,244
($1,942)
$561
 
$863
           
Diluted Earnings Per Share
$0.33
 
 
 
$0.12
           
Weighted Average Common Shares Outstanding-Diluted
6,878
 
1,025
(b)
7,903
           
The accompanying notes are an integral part of these unaudited Pro Forma Condensed Financial Statements.
        
           

SENECA FOODS CORPORATION AND SUBSIDIARIES
  
NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
    
         
         
Basis of Presentation
        
         
The Acquiree Historical column reflects the
       
Addition of the assets and liabilities and related
        
income and expense accounts of the membership
        
interest in Signature Fruit Company, LLC purchased from
      
John Hancock Life Insurance Company on August 18, 2006
      
as described in Item 2.01 of this Form 8-K/A.
       
The Pro Forma adjustments in the "Purchase" column
      
are as a result of the purchase of Signature Fruit described
      
above. The adjustments in the "Sale" column are as
      
a result of the expected sale of some warehouse facilities
      
to a third party by the end of December 2006.
        
         
Purchase Price
        
         
The total purchase price for Signature Fruit of $48.1 million consists
    
of a $20.0 million cash payment, the issuance of $25.8 million of
    
Convertible Preferred Stock, and $2.3 million of direct transaction costs.
    
         
Allocation of Purchase Price
        
 
(In millions)
      
Current assets
$125.2
     
Property, plant, and equipment
31.8
     
Other assets
2.3
     
Current liabilities
(57.7)
      
Long-term debt
(45.5)
      
Other long-term liabilities
(8.0)
      
Total
$48.1
     
         
Unaudited Pro Forma Condensed Combined Balance Sheet
      
         
(a) The Pro Forma adjustments referenced as (a) reflect
      
the estimated purchase price allocation of the
        
aforementioned purchase.
        
         
(b) The Pro Forma adjustments referenced as (b) reflect the
     
the purchase of Signature Fruit and eliminate Signature's equity
      
accounts and also reflect the forgiveness of certain debt
      
and the funding of the transaction.
    
The source of the funds used includes long-term debt of
    
$45.5 million and $20.0 million from short-term borrowings.
   
In addition, preferred stock of $25.8 million was used to
     
fund the purchase.
      
       
(c) The Pro Forma adjustments referenced as (c) reflect an
      
adjustment related to the beneficial conversion of
      
Participating Preferred stock used to partially fund the acquisition.
      

 
 
 


         
Unaudited Pro Forma Condensed Combined Statement of Net Earnings
  
         
(d) To reflect the net decrease in interest expense as a result
      
of the acquisition due to the forgiveness and assumption of certain debt.
    

(e) To reflect the reduction in depreciation expense as a result of
      
the purchase price allocations to property, plant and equipment.
      
         
(f) To reflect pro forma income taxes computed at Seneca's effective rate of 38%.