This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

ConAgra Foods Reports Strong Fiscal 2014 Second-Quarter EPS; Fiscal 2014 EPS Reaffirmed

Regulation G Disclosure

Below is a reconciliation of Q2 FY14 and Q2 FY13 diluted earnings per share from continuing operations, Consumer Foods segment operating profit, Commercial Foods segment operating profit, and Private Brands segment operating profit. Amounts may be impacted by rounding.

     
Q2 FY14 & Q2 FY13 Diluted EPS from Continuing Operations
 
Q2 FY14 Q2 FY13 % change
Diluted EPS from continuing operations $ 0.54 $ 0.52 4%
Items impacting comparability:
Restructuring, integration, and transactions costs (including acquisition-related restructuring) 0.05 0.03
Net expense related to unallocated mark-to-market impact of derivatives 0.01 0.02
Net expense related to impairment costs in the Commercial Foods segment 0.01 -
Net expense related to re-measurement of pensions at an international joint venture   0.01   -  
Diluted EPS adjusted for items impacting comparability $ 0.62 $ 0.57 9%
 
Consumer Foods Segment Operating Profit Reconciliation
 
(Dollars in millions) Q2 FY14 Q2 FY13 % change
Consumer Foods Segment Operating Profit $ 289 $ 257 13%
Restructuring, integration, and transactions costs (including acquisition-related restructuring)   4   6  
Consumer Foods Segment Adjusted Operating Profit $ 293 $ 263 11%
 
Commercial Foods Segment Operating Profit Reconciliation
 
(Dollars in millions) Q2 FY14 Q2 FY13 % change
Commercial Foods Segment Operating Profit $ 169 $ 195 -13%
Net expense related to impairment costs   9   -  
Commercial Foods Segment Adjusted Operating Profit $ 178 $ 195 -9%
 
Private Brands Segment Operating Profit Reconciliation
 
(Dollars in millions) Q2 FY14
Private Brands Segment Operating Profit $ 89
Restructuring, integration, and transactions costs (including acquisition-related restructuring)   2
Private Brands Segment Adjusted Operating Profit $ 91
 
ConAgra Foods, Inc.      
Segment Operating Results
(in millions)
(unaudited)
SECOND QUARTER
 
13 Weeks Ended 13 Weeks Ended
 

November 24, 2013

November 25, 2012 Percent Change

SALES

Consumer Foods $ 2,016.1 $ 2,023.5 (0.4)%
Commercial Foods 1,574.0 1,526.3 3.1%
Private Brands   1,123.8     177.4   533.5%
Total   4,713.9     3,727.2   26.5%
 

OPERATING PROFIT

Consumer Foods $ 288.9 $ 256.7 12.5%
Commercial Foods 169.2 194.7 (13.1)%
Private Brands   89.4     7.0   1177.1%
Total operating profit for segments 547.5 458.4 19.4%
 
Reconciliation of total operating profit to income from continuing operations before income taxes and equity method investment earnings
Items excluded from segment operating profit:
General corporate expense (105.5 ) (90.6 ) 16.4%
Interest expense, net   (95.4 )   (53.4 ) 78.7%
Income from continuing operations before income taxes and equity method investment earnings $ 346.6   $ 314.4   10.2%
 

Segment operating profit excludes general corporate expense, equity method investment earnings, and net interest expense. Management believes such amounts are not directly associated with segment performance results for the period. Management believes the presentation of total operating profit for segments facilitates period-to-period comparison of results of segment operations.

ConAgra Foods, Inc.

     
Segment Operating Results
(in millions)
(unaudited)
SECOND QUARTER
 
26 Weeks Ended 26 Weeks Ended
 

November 24, 2013

November 25, 2012 Percent Change

SALES

Consumer Foods $ 3,665.5 $ 3,690.3 (0.7)%
Commercial Foods 3,107.9 2,988.9 4.0%
Private Brands   2,138.0     350.3   510.3%
Total   8,911.4     7,029.5   26.8%
 

OPERATING PROFIT

Consumer Foods $ 456.0 $ 465.4 (2.0)%
Commercial Foods 330.3 355.7 (7.1)%
Private Brands   156.4     13.9   1025.2%
Total operating profit for segments 942.7 835.0 12.9%
 
Reconciliation of total operating profit to income from continuing operations before income taxes and equity method investment earnings
Items excluded from segment operating profit:
General corporate expense (229.2 ) (49.1 ) 366.8%
Interest expense, net   (191.0 )   (102.7 ) 86.0%
Income from continuing operations before income taxes and equity method investment earnings $ 522.5   $ 683.2   (23.5)%
 

Segment operating profit excludes general corporate expense, equity method investment earnings, and net interest expense. Management believes such amounts are not directly associated with segment performance results for the period. Management believes the presentation of total operating profit for segments facilitates period-to-period comparison of results of segment operations.

ConAgra Foods, Inc.      
Consolidated Statements of Earnings
(in millions, except per share amounts)
(unaudited) SECOND QUARTER
13 Weeks Ended 13 Weeks Ended
Percent
November 24, 2013 November 25, 2012 Change
Net sales $ 4,713.9 $ 3,727.2 26.5%
Costs and expenses:
Cost of goods sold 3,699.2 2,865.6 29.1%
Selling, general and administrative expenses 572.7 493.8 16.0%
Interest expense, net   95.4   53.4   78.7%

Income from continuing operations before income taxes and equity method investment earnings

346.6 314.4 10.2%
 
Income tax expense 117.9 109.7 7.5%
Equity method investment earnings   5.3   12.8   (58.6)%
Income from continuing operations 234.0 217.5 7.6%
 
Income (loss) from discontinued operations, net of tax   18.4   (1.0 ) N/A
 
Net income $ 252.4 $ 216.5   16.6%
Less: Net income attributable to noncontrolling interests   3.7   4.9   (24.5)%
Net income attributable to ConAgra Foods, Inc. $ 248.7 $ 211.6   17.5%
 
Earnings per share – basic
 
Income from continuing operations $ 0.55 $ 0.52 5.8%
Income from discontinued operations   0.04   -   100.0%
Net income attributable to ConAgra Foods, Inc. $ 0.59 $ 0.52   13.5%
 
Weighted average shares outstanding   421.1   405.9   3.7%
 
Earnings per share – diluted
 
Income from continuing operations $ 0.54 $ 0.52 3.8%
Income (loss) from discontinued operations   0.04   (0.01 ) N/A
Net income attributable to ConAgra Foods, Inc. $ 0.58 $ 0.51   13.7%
 

Weighted average share and share equivalents outstanding

  427.0   411.7   3.7%
 
ConAgra Foods, Inc.      
Consolidated Statements of Earnings
(in millions, except per share amounts)
(unaudited) SECOND QUARTER
26 Weeks Ended 26 Weeks Ended
Percent
November 24, 2013 November 25, 2012 Change
Net sales $ 8,911.4 $ 7,029.5 26.8%
Costs and expenses:
Cost of goods sold 7,065.8 5,299.3 33.3%
Selling, general and administrative expenses 1,132.1 944.3 19.9%
Interest expense, net   191.0   102.7   86.0%

Income from continuing operations before income taxes and equity method investment earnings

522.5 683.2 (23.5)%
 
Income tax expense 151.8 233.5 (35.0)%
Equity method investment earnings   9.4   20.4   (53.9)%
Income from continuing operations 380.1 470.1 (19.1)%
 
Income (loss) from discontinued operations, net of tax   19.5   (1.4 ) N/A
 
Net income $ 399.6 $ 468.7   (14.7)%
Less: Net income attributable to noncontrolling interests   6.6   7.0   (5.7)%
Net income attributable to ConAgra Foods, Inc. $ 393.0 $ 461.7   (14.9)%
 
Earnings per share – basic
 
Income from continuing operations $ 0.89 $ 1.14 (21.9)%
Income (loss) from discontinued operations   0.04   (0.01 ) N/A
Net income attributable to ConAgra Foods, Inc. $ 0.93 $ 1.13   (17.7)%
 
Weighted average shares outstanding   421.0   406.5   3.6%
 
Earnings per share – diluted
 
Income from continuing operations $ 0.87 $ 1.12 (22.3)%
Income from discontinued operations   0.05   -   100.0%
Net income attributable to ConAgra Foods, Inc. $ 0.92 $ 1.12   (17.9)%
 

Weighted average share and share equivalents outstanding

  427.5   411.8   3.8%
 
ConAgra Foods, Inc.    
Consolidated Balance Sheets
(in millions)
(unaudited)

November 24, 2013

May 26, 2013

ASSETS
Current assets
Cash and cash equivalents $ 192.7 $ 183.9

Receivables, less allowance for doubtful accounts of $7.2 and $7.6

1,415.1 1,286.2
Inventories 2,776.1 2,390.3
Prepaid expenses and other current assets 371.7 515.6
Current assets held for sale   -     3.8
Total current assets

4,755.6

4,379.8

 
Property, plant and equipment, net 3,932.3 3,850.4
Goodwill 8,455.9 8,444.1
Brands, trademarks and other intangibles, net 3,355.9 3,418.1
Other assets 286.7 293.5
Noncurrent assets held for sale   -     19.4
$ 20,786.4   $ 20,405.3
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Notes payable $ 233.7 $ 185.0
Current installments of long-term debt 584.9 517.9
Accounts payable 1,783.7 1,501.6
Accrued payroll 179.2 287.2
Other accrued liabilities   948.0     909.6
Total current liabilities 3,729.5 3,401.3
 
Senior long-term debt, excluding current installments 8,575.2 8,691.0
Subordinated debt 195.9 195.9
Other noncurrent liabilities 2,724.1 2,754.1
Total stockholders' equity   5,561.7     5,363.0
$ 20,786.4   $ 20,405.3
 

ConAgra Foods, Inc. and Subsidiaries

 

Condensed Consolidated Statements of Cash Flows

(in millions)

(unaudited)

 
Twenty-six weeks ended
November 24,   November 25,
2013 2012
Cash flows from operating activities:
Net income $ 399.6 $ 468.7
Income (loss) from discontinued operations 19.5   (1.4

)

Income from continuing operations 380.1 470.1
Adjustments to reconcile income from continuing operations to net cash flows from operating activities:
Depreciation and amortization 292.4 185.3
Asset impairment charges 14.8 4.6
Earnings of affiliates less than (in excess of) distributions 1.3 (5.4

)

Share-based payments expense 32.1 27.8
Contributions to pension plans (10.1 ) (10.1

)

Pension expense (4.5 ) 11.4
Other items (4.9 ) (11.1

)

Change in operating assets and liabilities excluding effects of business acquisitions and dispositions:
Accounts receivable (133.8 ) (109.9

)

Inventory (385.7 ) (333.7

)

Deferred income taxes and income taxes payable, net 106.6 (2.8

)

Prepaid expenses and other current assets 65.3 19.7
Accounts payable 270.0 226.1
Accrued payroll (107.9 ) (13.3

)

Other accrued liabilities 40.1   21.8  
Net cash flows from operating activities — continuing operations 555.8 480.5
Net cash flows from operating activities — discontinued operations (0.1 ) (1.9

)

Net cash flows from operating activities 555.7   478.6  
Cash flows from investing activities:
Additions to property, plant and equipment (332.2 ) (179.1

)

Sale of property, plant and equipment 12.1 3.9
Purchase of businesses, net of cash acquired (39.6 ) (268.6

)

Investment in equity method investee

  (1.5

)

Net cash flows from investing activities — continuing operations (359.7 ) (445.3

)

Net cash flows from investing activities — discontinued operations 54.7   (1.3

)

Net cash flows from investing activities (305.0 ) (446.6

)

Cash flows from financing activities:
Net short-term borrowings 48.7 (40.0

)

Issuance of long-term debt

743.0
Repayment of long-term debt (50.7 ) (34.2

)

Repurchase of ConAgra Foods, Inc. common shares (100.0 ) (238.6

)

Cash dividends paid (210.4 ) (195.3

)

Exercise of stock options and issuance of other stock awards 70.3 102.9
Other items 0.8   1.5  
Net cash flows from financing activities (241.3 ) 339.3  
Effect of exchange rate changes on cash and cash equivalents (0.6 ) 2.5
Net change in cash and cash equivalents 8.8 373.8
Cash and cash equivalents at beginning of period 183.9   103.0  
Cash and cash equivalents at end of period $ 192.7   $ 476.8  




7 of 8

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs