New York
(State or Other Jurisdiction of Incorporation)
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0-01989
(Commission File Number)
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16-0733425
(IRS Employer Identification No.)
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Exhibit 99.1
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Press Release dated October 27, 2011, announcing Seneca Foods Corporation's results of operations for the second quarter and six months ended October 1, 2011
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Quarter Ended
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October 1, 2011
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October 2, 2010
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Income
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Diluted
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Income
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Diluted
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(in millions)
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EPS
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(in millions)
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EPS
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Net earnings, as reported:
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$ | 2.9 | $ | 0.24 | $ | 2.8 | $ | 0.23 | ||||||||
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LIFO charge (credit) , after tax at statutory federal rate
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$ | 8.3 | $ | 0.67 | $ | (0.4 | ) | $ | (0.03 | ) | ||||||
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Net earnings, excluding LIFO impact
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$ | 11.2 | $ | 0.91 | $ | 2.4 | $ | 0.20 | ||||||||
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Diluted weighted average common shares outstanding
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(in thousands)
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11,737 | 11,736 | ||||||||||||||
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Six Months Ended
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October 1, 2011
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October 2, 2010
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Income
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Diluted
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Income
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Diluted
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(in millions)
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EPS
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(in millions)
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EPS
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Net (loss) earnings, as reported:
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$ | (5.1 | ) | $ | (0.42 | ) | $ | 8.1 | $ | 0.66 | ||||||
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LIFO charge (credit), after tax at statutory federal rate
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$ | 12.5 | $ | 1.03 | $ | (3.1 | ) | $ | (0.25 | ) | ||||||
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Net earnings, excluding LIFO impact
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$ | 7.4 | $ | 0.61 | $ | 5.0 | $ | 0.41 | ||||||||
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Diluted weighted average common shares outstanding
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(in thousands)
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11,736 | 11,392 |
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Six Months Ended
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EBITDA and FIFO EBITDA:
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October 1, 2011
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October 2, 2010
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(In thousands)
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Net (loss) earnings
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$
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(5,092)
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$
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8,086
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Income taxes (benefit) expense
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(2,748)
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1,929
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Interest expense, net of interest income
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3,666
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4,176
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Depreciation and amortization
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11,188
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11,050
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Interest amortization
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(213)
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(243)
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EBITDA
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6,801
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24,998
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LIFO charge (credit)
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19,281
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(4,777)
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FIFO EBITDA
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$
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26,082
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$
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20,221
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·
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general economic and business conditions;
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cost and availability of commodities and other raw materials such as vegetables, steel and packaging materials;
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transportation costs;
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climate and weather affecting growing conditions and crop yields;
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·
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availability of financing;
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leverage and the Company’s ability to service and reduce its debt;
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·
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foreign currency exchange and interest rate fluctuations;
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effectiveness of the Company’s marketing and trade promotion programs;
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changing consumer preferences;
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competition;
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product liability claims;
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the loss of significant customers or a substantial reduction in orders from these customers;
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changes in, or the failure or inability to comply with, United States, foreign and local governmental regulations, including environmental and health and safety regulations; and
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·
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other risks detailed from time to time in the reports filed by the Company with the SEC.
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Seneca Foods Corporation
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Unaudited Condensed Consolidated Statements of Net Earnings
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For the Periods Ended October 1, 2011 and October 2, 2010
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(In thousands of dollars, except share data)
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Quarter
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Year-to-Date
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Fiscal 2012
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Fiscal 2011
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Fiscal 2012
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Fiscal 2011
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Net sales
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$ | 283,616 | $ | 275,448 | $ | 542,699 | $ | 495,390 | ||||||||
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Plant restructuring (income) expense (note 3)
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$ | (15 | ) | $ | 1,211 | $ | 39 | $ | 1,211 | |||||||
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Other operating income, net (note 4)
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$ | (18 | ) | $ | (8 | ) | $ | (169 | ) | $ | (84 | ) | ||||
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Operating income (loss) (notes 1 and 2)
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$ | 5,977 | $ | 4,070 | $ | (4,174 | ) | $ | 14,191 | |||||||
Interest expense, net
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1,880 | 2,240 | 3,666 | 4,176 | ||||||||||||
Earnings (loss) before income taxes
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$ | 4,097 | $ | 1,830 | $ | (7,840 | ) | $ | 10,015 | |||||||
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Income taxes expense (benefit) (note 5)
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1,214 | (981 | ) | (2,748 | ) | 1,929 | ||||||||||
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Net earnings (loss)
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$ | 2,883 | $ | 2,811 | $ | (5,092 | ) | $ | 8,086 | |||||||
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Earnings (loss) attributable to common stock (note 6)
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$ | 2,779 | $ | 2,709 | $ | (4,930 | ) | $ | 7,571 | |||||||
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Basic earnings (loss) per share
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$ | 0.24 | $ | 0.23 | $ | (0.42 | ) | $ | 0.66 | |||||||
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Diluted earnings (loss) per share
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$ | 0.24 | $ | 0.23 | $ | (0.42 | ) | $ | 0.66 | |||||||
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Weighted average shares outstanding basic
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11,737,102 | 11,735,631 | 11,736,367 | 11,392,281 | ||||||||||||
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Weighted average shares outstanding diluted
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11,808,150 | 11,806,710 | 11,807,415 | 11,463,360 |
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Note 1: The effect of the LIFO inventory valuation method on second quarter pre-tax results was to reduce operating earnings by $12,754,000 and
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increase operating earnings $645,000 for the three month periods ended October 1, 2011 and October 2, 2010, respectively.
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Note 2: The effect of the LIFO inventory valuation method on year-to-date pre-tax results was to reduce operating earnings by $19,281,000 for the
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six month period ended October 1, 2011 and increase operating earnings by $4,777,000, for the six month period ended October 2, 2010.
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Note 3: The three month periods ended October 1, 2011 and October 2, 2010 include a restructuring adjustment for severance costs of a $15,000 credit
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and $1,211,000 charge, respectively. The six month periods ended October 1, 2011 and October 2, 2010 include a restructuring charge
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for severance costs of $39,000 and $1,211,000, respectively.
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Note 4: Other income for the current year of $169,000 represents a gain on the sale of unused fixed assets.
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Other income for the prior year of $84,000 represents a gain on the sale of unused fixed assets.
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Note 5: The quarter and year-to-date ended October 2, 2010 includes a tax benefit of $1,519,000 mostly related to the settlement of an
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audit of fiscal years 2006, 2007, and 2008 with the Internal Revenue Service.
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Note 6: The Company uses the "two-class" method for basic earnings per share by dividing the earnings attributable to common shareholders
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by the weighted average of common shares outstanding during the period. The diluted earnings per share includes the effect
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of convertible shares for the each period presented. Average common and participating shares totaled 12,150,982 as of
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October 1, 2011.
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