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Heinz Chairman Tells Shareholders The Company Expects To Report Strong First-Quarter Results With EPS Of $0.87

Stocks in this article: HNZ

ABOUT HEINZ: H.J. Heinz Company, offering “Good Food Every Day”™ is one of the world’s leading marketers and producers of healthy, convenient and affordable foods specializing in ketchup, sauces, meals, soups, snacks and infant nutrition. Heinz provides superior quality, taste and nutrition for all eating occasions whether in the home, restaurants, the office or “on-the-go.” Heinz is a global family of leading branded products, including Heinz® Ketchup, sauces, soups, beans, pasta and infant foods (representing over one third of Heinz’s total sales), Ore-Ida® potato products, Weight Watchers® Smart Ones® entrees, T.G.I. Friday’s® snacks, and Plasmon infant nutrition. Heinz is famous for its iconic brands on six continents, showcased by Heinz® Ketchup, The World’s Favorite Ketchup®.

 
 

H.J. Heinz Company and Subsidiaries

Non-GAAP Performance Ratios
 

The Company reports its financial results in accordance with accounting principles generally accepted in the United States of America ("GAAP"). However, management believes that certain non-GAAP performance measures and ratios, used in managing the business, may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. The following table provides the calculation of the non-GAAP performance ratios discussed in this press release:

         
Results from Continuing Operations Excluding Charges for Fiscal 2012 Productivity Initiatives
 

The following tables reconcile the Company's reported results for Q1 Fiscal 2012 to results excluding charges for productivity initiatives in Fiscal 2012 in this presentation.

     
(amounts in thousands, except per share data)

First Quarter Ended July 29, 2012

Change in Results
(Continuing Operations)

Expected Results

Excluding FY 12 Charges for Productivity Initiatives (1)

 
H.J. Heinz Company Net Income ~ $280,000 ~ 10%
Diluted EPS ~ $0.87 ~ 10%
 
       
(amounts in thousands, except per share data) First Quarter Ended July 27, 2011
(Continuing Operations) A B C=A-B

 

Charges for Results Excluding
Reported Productivity Charges for
Results Initiatives Productivity Initiatives (1)
 
H.J. Heinz Company Net Income $226,729 ($28,448) $255,177
Diluted EPS $0.70 ($0.09) $0.79
       
 

(1) Excludes charges associated with targeted workforce reductions, asset write-offs associated with factory closures and other implementation costs in order to increase manufacturing effectiveness and accelerate productivity on a global scale. Other implementation costs primarily include professional fees and relocation costs for the establishment of a European supply chain hub in the Netherlands.

 

(Totals may not add due to rounding)
 
         
H. J. Heinz Company
Estimated Constant Currency Results
 

The following tables reconcile the Company's estimated reported results to estimated constant currency results for the first quarter of Fiscal 2013 in this presentation.

         
(amounts in thousands, except per share data) First Quarter Ended July 29, 2012
(Continuing Operations) A B C D=A-B-C
Currency
Expected Currency Translation Constant Currency
Results Translation Hedges Results (2)
 
H.J. Heinz Company Net Income ~ $280,000 ~ ($18,000) ~ $4,000 ~ $294,000
         
 
     
(amounts in thousands, except per share data)

First Quarter Ended

July 27, 2011

(Continuing Operations) Results Excluding Constant Currency
Charges for
Productivity Initiatives (1) Change (3)
 
H.J. Heinz Company Net Income $255,177 ~ 15%
 
(1) See separate reconciliation and explanation of these figures compared to the reported amounts.
(2) Excludes currency translation versus FY12 average rates as well as current year currency translation hedges.
(3) Change is calculated by taking Q1 FY13 constant currency results versus the Q1 FY12 reported results.
 
(Totals may not add due to rounding)
 
 
H. J. Heinz Company
Sales Variance Analysis
                               
The following table illustrates the components of the change in net sales versus the prior year.
 
  2006* 2007* 2008 Q109   Q209   Q309   Q409   2009 Q110   Q210   Q310   Q410   2010
 
Total Heinz (Continuing Operations):
Volume 3.9% 0.8% 3.9% 5.4% (0.9%) (6.2%) (1.9%) (1.1%) (3.9%) (3.8%) 1.2% 1.6% (1.3%)
Price (0.1%) 2.2% 3.5% 5.3% 7.2% 8.1% 7.6% 7.1% 6.0% 4.6% 1.8% 1.0% 3.4%
Acquisition 5.0% 1.3% 0.7% 0.7% 1.2% 2.5% 3.4% 2.0% 3.1% 3.1% 2.9% 0.3% 2.3%
Divestiture (1.2%) (3.1%) (0.8%) 0.0% (0.2%) (0.1%) (0.2%) (0.1%) (0.2%) 0.0% 0.0% 0.0% (0.1%)
Exchange (1.4%) 2.8% 5.2% 4.1%   (3.2%)   (11.3%)   (13.9%)   (6.6%) (9.0%)   (1.0%)   6.9%   5.5%   0.5%
Total Change in Net Sales 6.1% 3.9% 12.3% 15.5%   4.0%   (7.1%)   (5.0%)   1.3% (4.0%)   2.9%   12.7%   8.3%   4.8%
Total Organic Growth (a) 3.8% 3.0% 7.4% 10.7%   6.3%   1.9%   5.7%   6.0% 2.1%   0.8%   3.0%   2.6%   2.1%
 
Q111   Q211   Q311   Q411   2011 Q112   Q212   Q312   Q412   2012**
 
Total Heinz (Continuing Operations):
Volume 2.5% 0.3% 0.5% (0.3%) 0.7% (0.7%) (2.9%) 0.4% 1.5% (0.3%)
Price 1.1% 0.6% 1.2% 1.9% 1.2% 3.8% 4.4% 4.2% 3.0% 3.8%
Acquisition 0.1% 0.1% 1.2% 1.1% 0.6% 4.6% 5.0% 3.6% 3.1% 4.0%
Divestiture 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% (0.6%) (0.7%) (0.7%) (0.5%)
Exchange (2.1%)   (2.3%)   (1.4%)   3.3%   (0.5%) 7.2%   2.4%   (0.4%)   (1.3%)   1.8%
Total Change in Net Sales 1.6%   (1.2%)   1.5%   6.0%   2.0% 14.9%   8.3%   7.2%   5.6%   8.8%
Total Organic Growth (a) 3.6%   0.9%   1.7%   1.6%   1.9% 3.1%   1.5%   4.6%   4.5%   3.5%
 
 
Total Heinz (Continuing Operations): Q113
Volume ~ 2.5%
Price ~ 2.5%
Acquisition 0.0%
Divestiture ~ (0.5)%
Exchange ~ (6.0)%
Total Change in Net Sales ~ (1.5)%
Total Organic Growth (a) ~ 5.0%
 
                                                           

(a) Organic sales growth is a non-GAAP measure that excludes the impact of foreign currency exchange rates and acquisitions/divestitures.

* Fiscal 2007 had one less week than Fiscal 2006

** Fiscal 2012 had 2 extra business days than Fiscal 2011

(Totals may not add due to rounding)

Copyright Business Wire 2010
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