Bemis Company Reports 2012 Second Quarter Results

INVESTOR CONFERENCE CALL

Bemis Company, Inc. will webcast an investor telephone conference regarding its second quarter 2012 financial results this morning at 10 a.m., Eastern Time. Individuals may listen to the call on the Internet at www.bemis.com under “Investor Relations.” Listeners are urged to check the website ahead of time to ensure their computers are configured for the audio stream. Instructions for obtaining the required, free, downloadable software are available in a pre-event system test on the site.

ABOUT BEMIS COMPANY, INC.

Bemis Company, Inc. is a major supplier of flexible packaging and pressure sensitive materials used by leading food, consumer products, healthcare, and other companies worldwide. Founded in 1858, the Company is included in the S&P 500 index of stocks and reported 2011 net sales of $5.3 billion. The Company’s flexible packaging business has a strong technical base in polymer chemistry, film extrusion, coating and laminating, printing, and converting. Headquartered in Neenah, Wisconsin, Bemis employs approximately 20,000 individuals worldwide. More information about the Company is available at our website, www.bemis.com.

BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(in millions, except per share amounts)
(unaudited)
		Three Months EndedJune 30,								Six Months EndedJune 30,
		2012				2011				2012				2011
Net sales		$	1,312.7			$	1,370.2			$	2,617.5			$	2,694.6
Cost of products sold			1,079.4				1,132.2				2,153.2				2,226.8
Gross Profit			233.3				238.0				464.3				467.8
Operating expenses:
Selling, general, and administrative expenses			124.0				126.7				253.2				252.9
Research and development			10.4				10.0				21.3				17.6
Facility consolidation and other costs			19.7				-				28.0				-
Other operating (income) expense, net			(3.6	)			(4.0	)			(9.5	)			(11.2	)
Operating Income			82.8				105.3				171.3				208.5
Interest expense			17.3				18.1				37.8				36.4
Other non-operating (income) expense, net			(1.0	)			(0.4	)			(0.9	)			1.4
Income before income taxes			66.5				87.6				134.4				170.7
Provision for income taxes			24.2				32.0				48.1				62.3
Net income			42.3				55.6				86.3				108.4
Less: Net income attributable to noncontrolling interests			-				1.3				-				2.9
Net income attributable to Bemis Company, Inc.		$	42.3			$	54.3			$	86.3			$	105.5
Basic earnings per share		$	0.41			$	0.51			$	0.83			$	0.98
Diluted earnings per share		$	0.40			$	0.51			$	0.82			$	0.98
Cash dividends paid per share		$	0.25			$	0.24			$	0.50			$	0.48
Weighted average shares outstanding (includes participating securities):
Basic			104.3				106.7				104.3				107.7
Diluted			105.1				107.2				105.0				108.1

BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in millions)
(unaudited)
		June 30,				December 31,
ASSETS		2012				2011
Cash and cash equivalents		$	127.2			$	109.8
Accounts receivable, net			703.3				665.4
Inventories			645.6				646.0
Prepaid expenses and other current assets			133.8				127.8
Total current assets			1,609.9				1,549.0
Property and equipment, net			1,371.9				1,440.9
Goodwill			1,030.8				1,048.4
Other intangible assets, net			209.5				222.5
Deferred charges and other assets			73.2				59.6
Total other long-term assets			1,313.5				1,330.5
TOTAL ASSETS		$	4,295.3			$	4,320.4
LIABILITIES
Current portion of long-term debt		$	10.1			$	13.4
Short-term borrowings			5.4				1.7
Accounts payable			413.6				415.8
Accrued salaries and wages			106.3				95.8
Accrued income and other taxes			26.3				23.9
Other current liabilities			132.4				131.4
Total current liabilities			694.1				682.0
Long-term debt, less current portion			1,549.4				1,554.8
Deferred taxes			183.0				175.5
Other liabilities and deferred credits			293.6				326.0
TOTAL LIABILITIES			2,720.1				2,738.3
EQUITY
Bemis Company, Inc. shareholders' equity:
Common stock issued (127.1 and 126.9 shares)			12.7				12.7
Capital in excess of par value			539.3				532.4
Retained earnings			1,866.2				1,832.9
Accumulated other comprehensive loss			(137.8	)			(90.7	)
Common stock held in treasury (24.0 shares at cost)			(705.2	)			(705.2	)
TOTAL EQUITY			1,575.2				1,582.1
TOTAL LIABILITIES AND EQUITY		$	4,295.3			$	4,320.4

BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
(unaudited)
		Six Months Ended
		June 30,
		2012				2011
Cash flows from operating activities
Net income		$	86.3			$	108.4
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			107.0				112.1
Excess tax benefit from share-based payment arrangements			(0.2	)			(0.9	)
Share-based compensation			8.6				8.7
Deferred income taxes			2.6				10.2
Income of unconsolidated affiliated company			(1.3	)			(1.6	)
(Gain) loss on sale of property and equipment			(0.3	)			1.0
Net facility consolidation and other costs			15.5				-
Changes in working capital, excluding effect of acquisitions			(62.2	)			(153.5	)
Net change in deferred charges and credits			(12.7	)			(2.5	)
Net cash provided by operating activities			143.3				81.9
Cash flows from investing activities
Additions to property and equipment			(59.3	)			(61.3	)
Business acquisitions and adjustments, net of cash acquired			-				(15.8	)
Proceeds from sale of property and equipment			4.0				0.7
Net cash used in investing activities			(55.3	)			(76.4	)
Cash flows from financing activities
Proceeds from issuance of long-term debt			-				4.7
Repayment of long-term debt			(303.0	)			(2.1	)
Net borrowing of commercial paper			284.0				173.3
Net borrowing of short-term debt			4.1				17.6
Cash dividends paid to shareholders			(52.2	)			(51.7	)
Common stock purchased for the treasury			-				(123.1	)
Purchase of subsidiary shares of noncontrolling interests			-				(0.4	)
Excess tax benefit from share-based payment arrangements			0.2				0.9
Stock incentive programs and related withholdings			(1.9	)			(3.7	)
Net cash (used in) provided by financing activities			(68.8	)			15.5
Effect of exchange rates on cash and cash equivalents			(1.8	)			(8.7	)
Net increase in cash and cash equivalents			17.4				12.3
Cash and cash equivalents balance at beginning of year			109.8				60.4
Cash and cash equivalents balance at end of period		$	127.2			$	72.7

BEMIS COMPANY, INC. AND SUBSIDIARIES
OPERATING PROFIT AND PRETAX PROFIT
(in millions)
(unaudited)
		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2012				2011				2012				2011
Flexible Packaging operating profit		$	116.0			$	116.3			$	232.1			$	232.6
Flexible Packaging facility consolidation and other costs			(19.7	)			-				(27.9	)			-
Net Flexible Packaging operating profit			96.3				116.3				204.2				232.6
Pressure Sensitive Materials operating profit			10.9				11.8				20.6				21.7
Segment operating profit			107.2				128.1				224.8				254.3
General corporate expenses			(24.4	)			(22.8	)			(53.5	)			(45.8	)
Operating income			82.8				105.3				171.3				208.5
Interest expense			17.3				18.1				37.8				36.4
Other non-operating (income) expense, net			(1.0	)			(0.4	)			(0.9	)			1.4
Income before income taxes		$	66.5			$	87.6			$	134.4			$	170.7

BEMIS COMPANY, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP DATA
(in millions, except per share amounts)
(unaudited)
		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2012				2011				2012				2011
Reconciliation of GAAP to Non-GAAP Operating Profit and Operating Profit as a Percentage of Net Sales by Segment
Flexible Packaging
Net Sales		$	1,170.8			$	1,218.7			$	2,330.3			$	2,398.0
Operating Profit as reported			96.3				116.3				204.2				232.6
Non-GAAP adjustments:
Acquisition-related integration costs (1)			1.7				-				3.5				-
Facility consolidation and other costs (2)			19.7				-				27.9				-
Operating Profit as adjusted		$	117.7			$	116.3			$	235.6			$	232.6
Operating Profit as a percentage of Net Sales
As Reported			8.2	%			9.5	%			8.8	%			9.7	%
As Adjusted			10.1	%			9.5	%			10.1	%			9.7	%
Pressure Sensitive Materials
Net Sales		$	141.9			$	151.5			$	287.2			$	296.6
Operating Profit as reported		$	10.9			$	11.8			$	20.6			$	21.7
Operating Profit as a percentage of Net Sales as reported			7.7	%			7.8	%			7.2	%			7.3	%
Reconciliation of GAAP to Non-GAAP Earnings per Share
Diluted earnings per share, as reported		$	0.40			$	0.51			$	0.82			$	0.98
Non-GAAP adjustments per share, net of taxes:
Acquisition-related integration costs (1)			0.02				-				0.03				-
Facility consolidation and other costs (2)			0.12				-				0.18				-
Diluted earnings per share, as adjusted		$	0.54			$	0.51			$	1.03			$	0.98

(1)	Acquisition-related integration costs include earnout payments treated as compensation expense related to the Mayor Packaging acquisition.
(2)	Facility consolidation and other costs includes employee-related costs, accelerated depreciation, and write down of equipment related to the company's facility consolidation program.

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