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TheStreet Open House

Hershey Announces Third Quarter Results; Updates Outlook For 2012

Live Web Cast

As previously announced, the Company will hold a conference call with analysts today at 8:30 a.m. Eastern Time. The conference call will be web cast live via Hershey's corporate website www.thehersheycompany.com. Please go to the Investor Relations section of the website for further details.

The Hershey Company
Summary of Consolidated Statements of Income
for the periods ended September 30, 2012 and October 2, 2011
(in thousands except per share amounts)
 
  Third Quarter   Nine Months
2012   2011   2012   2011
 
Net Sales $ 1,746,709     $ 1,624,249     $ 4,893,217     $ 4,513,643  
 
Costs and Expenses:
Cost of Sales 1,003,952 944,068 2,788,543 2,612,957
Selling, Marketing and Administrative 420,972 356,878 1,217,939 1,080,594

Business Realignment and Impairment Charges/(Credits), net

20,055     2,187     28,204     (5,927 )
 
Total Costs and Expenses 1,444,979     1,303,133     4,034,686     3,687,624  
 
Income Before Interest and Income Taxes (EBIT) 301,730 321,116 858,531 826,019
Interest Expense, net 24,535     23,041     72,903     70,869  
 
Income Before Income Taxes 277,195 298,075 785,628 755,150
Provision for Income Taxes 100,479     101,380     274,576     268,321  
 
Net Income $ 176,716     $ 196,695     $ 511,052     $ 486,829  
 
Net Income Per Share - Basic - Common $ 0.80     $ 0.89     $ 2.33     $ 2.20  
- Basic - Class B $ 0.73     $ 0.81     $ 2.11     $ 2.00  
- Diluted - Common $ 0.77     $ 0.86     $ 2.23     $ 2.12  
 
Shares Outstanding - Basic - Common 164,686     165,917     164,766     166,223  
- Basic - Class B 60,630     60,632     60,630     60,649  
- Diluted - Common 228,608     229,849     228,701     230,114  

Key Margins

Gross Margin

42.5

%

41.9

%

43.0

%

42.1

%

EBIT Margin

17.3

%

19.8

%

17.5

%

18.3

%

Net Margin

10.1

%

12.1

%

10.4

%

10.8

%

 
The Hershey Company
Consolidated Balance Sheets
as of September 30, 2012 and December 31, 2011
(in thousands of dollars)

Assets

  2012   2011
 
Cash and Cash Equivalents $ 466,235 $ 693,686
Accounts Receivable - Trade (Net) 649,328 399,499
Deferred Income Taxes 103,438 136,861
Inventories 726,492 648,953
Prepaid Expenses and Other 190,462   167,559
 
Total Current Assets 2,135,955 2,046,558
 
Net Plant and Property 1,618,178 1,559,717
Goodwill 594,854 516,745
Other Intangibles 220,223 111,913
Deferred Income Taxes 13,727 38,544
Other Assets 154,845   138,722
 
Total Assets $ 4,737,782   $ 4,412,199
 

Liabilities and Stockholders' Equity

 
Loans Payable $ 460,081 $ 139,673
Accounts Payable 435,283 420,017
Accrued Liabilities 644,959 612,186
Taxes Payable 12,631   1,899
 
Total Current Liabilities 1,552,954 1,173,775
 
Long-Term Debt 1,515,757 1,748,500
Other Long-Term Liabilities 636,339 617,276
Deferred Income Taxes 35,770  
 
Total Liabilities 3,740,820 3,539,551
 
Total Stockholders' Equity 996,962   872,648
 
Total Liabilities and Stockholders' Equity $ 4,737,782   $ 4,412,199




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