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 January 26, 2012, announcing Seneca Foods Corporation's results of operations for the third quarter and nine months ended December 31, 2011
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Quarter Ended
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December 31, 2011
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January 1, 2011
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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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$ | 18.5 | $ | 1.52 | $ | 11.5 | $ | 0.94 | ||||||||
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LIFO charge (credit) , after tax at statutory federal rate
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$ | 7.0 | $ | 0.57 | $ | (1.4 | ) | $ | (0.11 | ) | ||||||
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Net earnings, excluding LIFO impact
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$ | 25.5 | $ | 2.09 | $ | 10.1 | $ | 0.83 | ||||||||
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Diluted weighted average common shares outstanding (in thousands)
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11,799 | 11,807 | ||||||||||||||
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Nine Months Ended
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December 31, 2011
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January 1, 2011
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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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$ | 13.4 | $ | 1.10 | $ | 19.5 | $ | 1.60 | ||||||||
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LIFO charge (credit), after tax at statutory federal rate
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$ | 19.6 | $ | 1.60 | $ | (4.4 | ) | $ | (0.37 | ) | ||||||
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Net earnings, excluding LIFO impact
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$ | 33.0 | $ | 2.70 | $ | 15.1 | $ | 1.23 | ||||||||
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Diluted weighted average common shares outstanding (in thousands)
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11,805 | 11,578 |
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Nine Months Ended
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EBITDA and FIFO EBITDA:
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December 31, 2011
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January 1, 2011
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(In thousands)
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Net earnings
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$
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13,438
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$
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19,548
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Income taxes expense
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8,107
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7,265
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Interest expense, net of interest income
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5,830
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6,590
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Depreciation and amortization
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16,874
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16,755
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Interest amortization
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(288)
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(365)
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EBITDA
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43,961
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49,793
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LIFO charge (credit)
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30,055
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(6,890)
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FIFO EBITDA
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$
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74,016
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$
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42,903
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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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availability of financing;
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leverage and the Company’s ability to service and reduce its debt;
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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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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 December 31, 2011 and January 1, 2011
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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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$ | 447,918 | $ | 446,250 | $ | 990,617 | $ | 941,640 | ||||||||
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Plant restructuring expense (note 3)
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$ | - | $ | 109 | $ | 39 | $ | 1,320 | ||||||||
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Other operating income, net (note 4)
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$ | (707 | ) | $ | (720 | ) | $ | (876 | ) | $ | (804 | ) | ||||
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Operating income (notes 1 and 2)
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$ | 31,549 | $ | 19,212 | $ | 27,375 | $ | 33,403 | ||||||||
Interest expense, net
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2,164 | 2,414 | 5,830 | 6,590 | ||||||||||||
Earnings before income taxes
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$ | 29,385 | $ | 16,798 | $ | 21,545 | $ | 26,813 | ||||||||
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Income taxes expense (note 5)
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10,855 | 5,336 | 8,107 | 7,265 | ||||||||||||
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Net earnings
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$ | 18,530 | $ | 11,462 | $ | 13,438 | $ | 19,548 | ||||||||
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Earnings attributable to common stock (note 6)
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$ | 17,897 | $ | 11,064 | $ | 12,964 | $ | 18,497 | ||||||||
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Basic earnings per share
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$ | 1.53 | $ | 0.94 | $ | 1.10 | $ | 1.61 | ||||||||
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Diluted earnings per share
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$ | 1.52 | $ | 0.94 | $ | 1.10 | $ | 1.60 | ||||||||
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Weighted average shares outstanding basic
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11,727,978 | 11,735,631 | 11,733,571 | 11,506,731 | ||||||||||||
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Weighted average shares outstanding diluted
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11,799,104 | 11,806,604 | 11,804,697 | 11,577,704 |
Note 1: The effect of the LIFO inventory valuation method on third quarter pre-tax results was to reduce operating earnings by $10,774,000 for the
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three month period ended December 31, 2011 and increase operating earnings $2,113,000 for the three month period ended January 1, 2011.
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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 $30,055,000 for the
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nine month period ended December 31, 2011 and increase operating earnings by $6,890,000, for the nine month period ended January 1, 2011.
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Note 3: The three month period ended January 1, 2011 included a restructuring charge for severance costs of $109,000.
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The nine month periods ended December 31, 2011 and January 1, 2011 include a restructuring charge for severance costs of
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$39,000 and $1,320,000, respectively.
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Note 4: Other income for the current year of $876,000 represents a net gain on the sale of unused fixed assets.
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Other income for the prior year of $804,000 principally represents a gain of $632,000 related to the acquisition of Lebanon Valley Cold
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Storage, LP and assets of Unilink, LLC and a net gain of $172,000 on the sale of unused fixed assets.
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Note 5: The nine month period ended January 1, 2011 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 of
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convertible shares for the each period presented. Average common and participating shares totaled 12,146,955 as of December 31, 2011.
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########
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