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Hershey Announces Second Quarter Results; Updates Outlook For 2013

All information in this press release is as of July 25, 2013. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.

Live Webcast

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 webcast 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 June 30, 2013 and July 1, 2012
(in thousands except per share amounts)
 
      Second Quarter   Six Months
2013   2012 2013   2012
 
Net Sales $ 1,508,514   $ 1,414,444   $ 3,335,940   $ 3,146,508  
 
Costs and Expenses:
Cost of Sales 789,940 795,923 1,768,029 1,784,591
Selling, Marketing and Administrative 446,070 391,405 896,739 796,967
Business Realignment and Impairment Charges, net   3,587     4,845     10,438     8,149  
 
Total Costs and Expenses   1,239,597     1,192,173     2,675,206     2,589,707  
 
Income Before Interest and Income Taxes (EBIT) 268,917 222,271 660,734 556,801
Interest Expense, net   21,094     24,344     44,727     48,368  
 
Income Before Income Taxes 247,823 197,927 616,007 508,433
Provision for Income Taxes   88,319     62,242     214,597     174,097  
 
Net Income $ 159,504   $ 135,685   $ 401,410   $ 334,336  
 
Net Income Per Share - Basic - Common $ 0.73   $ 0.62   $ 1.84   $ 1.52  
- Basic - Class B $ 0.66   $ 0.56   $ 1.67   $ 1.38  
- Diluted - Common $ 0.70   $ 0.59   $ 1.77   $ 1.46  
 
Shares Outstanding - Basic - Common   163,295     165,021     163,537     164,810  
- Basic - Class B   60,629     60,630     60,629     60,630  
- Diluted - Common   226,840     228,853     227,274     228,752  
 
Key Margins:
Gross Margin 47.6 % 43.7 % 47.0 % 43.3 %
EBIT Margin 17.8 % 15.7 % 19.8 % 17.7 %
Net Margin 10.6 % 9.6 % 12.0 % 10.6 %
 
 
The Hershey Company
Consolidated Balance Sheets
as of June 30, 2013 and December 31, 2012
(in thousands of dollars)
   

Assets

2013 2012
Cash and Cash Equivalents $ 568,360 $ 728,272
Accounts Receivable - Trade (Net) 366,288 461,383
Deferred Income Taxes 102,762 122,224
Inventories 778,988 633,262
Prepaid Expenses and Other   182,489   168,344
 
Total Current Assets 1,998,887 2,113,485
 
Net Plant and Property 1,709,346 1,674,071
Goodwill 578,906 588,003
Other Intangibles 202,495 214,713
Deferred Income Taxes 30,925 12,448
Other Assets   176,309   152,119
 
Total Assets $ 4,696,868 $ 4,754,839
 

Liabilities and Stockholders' Equity

 
Loans Payable $ 102,397 $ 375,898
Accounts Payable 413,144 441,977
Accrued Liabilities 564,080 650,906
Taxes Payable   4,585   2,329
 
Total Current Liabilities 1,084,206 1,471,110
 
Long-Term Debt 1,794,493 1,530,967
Other Long-Term Liabilities 663,519 668,732
Deferred Income Taxes   32,923   35,657
 
Total Liabilities 3,575,141 3,706,466
 
Total Stockholders' Equity   1,121,727   1,048,373
 
Total Liabilities and Stockholders' Equity $ 4,696,868 $ 4,754,839
 




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