-----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, DZXkklK4znySRQ9wtdUiyYWRPuUnxdN6U2S4DM/hapzaCG9coyoylDSWDWgmsxvX e3EwwJAS9GskyvlFWvYuyA== 0000916641-98-001282.txt : 19981125 0000916641-98-001282.hdr.sgml : 19981125 ACCESSION NUMBER: 0000916641-98-001282 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19981123 ITEM INFORMATION: FILED AS OF DATE: 19981124 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SMITHFIELD FOODS INC CENTRAL INDEX KEY: 0000091388 STANDARD INDUSTRIAL CLASSIFICATION: MEAT PACKING PLANTS [2011] IRS NUMBER: 520845861 STATE OF INCORPORATION: DE FISCAL YEAR END: 0427 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-02258 FILM NUMBER: 98758670 BUSINESS ADDRESS: STREET 1: 900 DOMINION TOWER STREET 2: 999 WATERSIDE DRIVE CITY: NORFOLK STATE: VA ZIP: 23510 BUSINESS PHONE: 8043653000 MAIL ADDRESS: STREET 1: 900 DOMINION TOWER STREET 2: 999 WATERSIDE DRIVE CITY: NORFOLK STATE: VA ZIP: 23510 FORMER COMPANY: FORMER CONFORMED NAME: LIBERTY EQUITIES CORP DATE OF NAME CHANGE: 19710221 FORMER COMPANY: FORMER CONFORMED NAME: LIBERTY REAL ESTATE TRUST DATE OF NAME CHANGE: 19661113 8-K 1 SMITHFIELD 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) November 23, 1998 SMITHFIELD FOODS, INC. (Exact name of registrant as specified in its charter) VIRGINIA 0-2258 52-0845861 (State or other (Commission (IRS Employer jurisdiction of File Number) Identification No.) incorporation) 200 COMMERCE STREET SMITHFIELD, VIRGINIA 23430 (Address of principal executive (Zip Code) offices) Registrant's telephone number, including area code (757) 365-3000 Item 5. Other Events Smithfield Foods today reported record second quarter earnings in fiscal 1999. Net income in the quarter ended November 1, 1998 increased to US$18.5 million, or US$.47 per diluted share, from US$15.5 million, or US$.39 per diluted share, in the same quarter a year ago. Net income in the first six months of fiscal 1999 increased to US$13.2 million, or US$.33 per diluted share, from net income of US$9.0 million, or US$.23 per diluted share, in the six month period a year ago. The net income in the first half of fiscal 1998 included a non-recurring charge of US$12.6 million (US$.32 per diluted share), which reflected penalties imposed against Smithfield Foods in a case brought by the U.S. Environmental Protection Agency. The judgment has been appealed. Excluding the non-recurring charge, Smithfield Foods had net income of US$21.6 million, or US$.55 per diluted share, in the first half of fiscal 1998. Sales for the second quarter of fiscal 1999 were US$874.4 million, down from US$982.7 million in the same quarter of fiscal 1998. Sales for the first six months of fiscal 1999 were US$1.7 billion, down from US$1.9 billion in the same six-month period a year ago. The decrease in sales in both periods was due to lower unit selling prices for Smithfield's products, reflecting substantially lower hog and raw material prices, which were not entirely offset by increased unit sales volume in each period. The record fiscal 1999 second quarter net income reflected substantially improved operating results at Smithfield's Meat Processing Group which more than compensated for losses at Smithfield's Hog Production Group. The Meat Processing Group experienced sharply higher margins, especially on sales of fresh pork, in this fiscal year's second quarter. While margins on sales of processed meats were up, overall results in the processed meats area of the Group's business were adversely affected by a sharp drop in exports of hot dogs to Russia. The Hog Production Group experienced a sharp reversal in profitability in the current year's second quarter due to the lowest hog prices since 1971. The Hog Production Group incurred a net loss of US$.22 per diluted share in this year's second quarter compared to net income of US$.08 per diluted share in the same quarter of fiscal 1998. "Our second quarter results reinforce our belief that being vertically integrated to the extent that we are takes the peaks and valleys out of our earnings and, in effect, makes them more stable as well as predictable," Luter stated. "The brisk rate of business in the first three weeks of November further confirms our expectation that fiscal 1999 third quarter earnings should set a record," Luter said. This filing contains "forward-looking" information within the meaning of United States federal securities laws. The forward-looking information may include, among other information, statements concerning Smithfield Foods' outlook for the future. There may also be other statements of beliefs, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. The forward-looking information and statements in this filing are subject to known and unknown risks and uncertainties, including availability and prices of raw materials, product pricing, competitive environment and related market conditions, operating efficiencies, access to capital, integration of acquisitions and changes in, or the failure or inability to comply with, governmental regulation, including without limitation environmental and health regulations, that could cause actual results to differ materially from those expressed in or implied by the information or statements. CONSOLIDATED STATEMENTS OF OPERATIONS SMITHFIELD FOODS, INC. AND SUBSIDIARIES (ALL FIGURES ARE IN UNITED STATES DOLLARS)
13 WEEKS ENDED 13 WEEKS ENDED 26 WEEKS ENDED 26 WEEKS ENDED (IN THOUSANDS, EXCEPT PER SHARE DATA) NOVEMBER 1, 1998 OCTOBER 26, 1997 NOVEMBER 1, 1998 OCTOBER 26, 1997 - --------------------------------------- ------------------ ------------------ ------------------ ----------------- Sales ................................. $ 874,378 $ 982,699 $ 1,740,201 $ 1,897,662 Cost of sales ......................... 756,914 888,729 1,549,960 1,728,508 --------- --------- ----------- ----------- Gross profit .......................... 117,464 93,970 190,241 169,154 Selling, general and administrative expenses ............................. 65,974 53,177 123,971 102,369 Depreciation expense .................. 14,015 10,353 26,954 20,068 Interest expense ...................... 10,916 8,036 20,622 15,403 Nonrecurring charge(1)................. -- -- -- 12,600 --------- --------- ----------- ----------- Income before income taxes(1).......... 26,559 22,404 18,694 18,714 Income taxes .......................... 8,078 6,856 5,538 9,707 --------- --------- ----------- ----------- Net income(1).......................... $ 18,481 $ 15,548 $ 13,156 $ 9,007 ========= ========= =========== =========== Net income per common share: Basic(1) .............................. $ .48 $ .41 $ .35 $ .24 Diluted(1)............................ .47 .39 .33 .23 --------- --------- ----------- ----------- Average common shares outstanding: Basic ................................ 38,273 37,527 37,905 37,527 Diluted .............................. 39,599 39,666 39,807 39,639 --------- --------- ----------- -----------
(1) Reflects a nonrecurring charge of $12.6 million ($.32 per diluted share) for the 26 weeks ended October 26, 1997 related to civil penalties in an environmental case. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. SMITHFIELD FOODS, INC. By: /s/ Aaron D. Trub Aaron D. Trub Vice President, Chief Financial Officer and Secretary Dated: November 23, 1998 -----END PRIVACY-ENHANCED MESSAGE-----