- Net sales increased $19.1 million, or 5.3% to $376.3 million.
- The increase in sales attributed to a favorable sales volume variance of $15.9 million and a favorable sales mix and higher selling price variance of $3.2 million.
- Results for the quarter include the Truitt Bros., Inc. acquisition which contributed $19.4 million in net sales.
- Net earnings decreased to a loss of $(1.1) million or $(0.11) per diluted share.
Highlights (vs. year-ago, year-to-date results):
- Net sales increased $46.6 million, or 7.6% to $656.5 million.
- The increase in sales attributed to favorable sales volume variance of $44.4 million and favorable sales mix and higher selling price variance of $2.2 million.
- Year-to-date results include the Truitt Bros., Inc. acquisition which contributed $41.1 million in net sales.
- Net earnings decreased to a loss of $(2.0) million or $(0.20) per diluted share.
Set forth below is a reconciliation of reported net earnings to EBITDA and FIFO EBITDA (earnings before interest, income taxes, depreciation, amortization, non-cash charges and credits related to the LIFO inventory valuation method). The Company does not intend for this information to be considered in isolation or as a substitute for other measures prepared in accordance with GAAP.
|Quarter Ended||Six Months Ended|
|In millions||In millions|
|FY 2018||FY 2017||FY 2018||FY 2017|
|Operating earnings, as reported:||$||1.6||$||11.2||$||2.4||$||12.8|
|Plant restructuring charge||-||0.3||0.1||1.4|
|Operating earnings, excluding LIFO and plant restructuring impact||$||12.0||$||14.0||$||20.3||$||18.6|
|Six Months Ended|
|EBITDA and FIFO EBITDA:||September 30, 2017||October 1, 2016|
|Net (loss) earnings||$||(1,951||)||$||6,082|
|Income tax (benefit) expense||(2,256||)||2,589|
|Interest expense, net of interest income||6,650||4,295|
|Depreciation and amortization||15,349||12,018|
Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Investors are cautioned not to place undue reliance on such statements, which speak only as of the date the statements were made. Among the factors that could cause actual results to differ materially are:
- general economic and business conditions;
- cost and availability of commodities and other raw materials such as vegetables, steel and packaging materials;
- transportation costs;
- climate and weather affecting growing conditions and crop yields;
- availability of financing;
- leverage and the Company's ability to service and reduce its debt;
- foreign currency exchange and interest rate fluctuations;
- effectiveness of the Company's marketing and trade promotion programs;
- changing consumer preferences;
- product liability claims;
- the loss of significant customers or a substantial reduction in orders from these customers;
- changes in, or the failure or inability to comply with, United States, foreign and local governmental regulations, including environmental and health and safety regulations; and
- other risks detailed from time to time in the reports filed by the Company with the SEC.
|Seneca Foods Corporation|
|Unaudited Selected Financial Data|
|For the Periods Ended September 30, 2017 and October 1, 2016|
|(In thousands of dollars, except share data)|
|Fiscal 2018||Fiscal 2017||Fiscal 2018||Fiscal 2017|
|Plant restructuring (credit) expense (note 2)||$||(25||)||$||277||$||56||$||1,462|
|Other operating income (expense) net (note 3)||$||20||$||(31||)||$||2,632||$||(19||)|
|Operating income (note 1)||$||1,584||$||11,202||$||2,422||$||12,799|
|Loss (earnings) from equity investment||-||270||(21||)||(167||)|
|Interest expense, net||3,433||2,151||6,650||4,295|
|(Loss) earnings before income taxes||$||(1,849||)||$||8,781||$||(4,207||)||$||8,671|
|Income taxes (benefit) expense||(737||)||2,637||(2,256||)||2,589|
|Net (loss) earnings||$||(1,112||)||$||6,144||$||(1,951||)||$||6,082|
|(Loss) earnings attributable to common stock (note 4)||$||(1,114||)||$||6,082||$||(1,952||)||$||6,014|
|Basic (loss) earnings per share||$||(0.11||)||$||0.62||$||(0.20||)||$||0.61|
|Diluted (loss) earnings per share||$||(0.11||)||$||0.62||$||(0.20||)||$||0.61|
|Weighted average shares outstanding basic||9,791,595||9,792,431||9,802,806||9,800,229|
|Weighted average shares outstanding diluted||9,791,595||9,861,865||9,802,806||9,869,663|
|Note 1: The effect of the LIFO inventory valuation method on second quarter pre-tax results decreased operating earnings by $10,398,000 for|
|the three month period ended September 30, 2017 and decreased operating earnings by $2,476,000 for the three month period ended October|
|1, 2016. The effect of the LIFO inventory valuation method on year-to-date pre-tax results decreased operating earnings by|
|$17,841,000 for the six month period ended September 30, 2017 and decreased operating earnings by $4,375,000 for the six month period|
|ended October 1, 2016.|
|Note 2: The six month period ended September 30, 2017 included a restructuring charge primarily for moving costs of $56,000.|
|The six month period ended October 1, 2016 included a restructuring charge primarily for moving costs of $1,462,000.|
|Note 3: Other operating income for the six month period ended September 30, 2017 of $2,632,000 represents a net gain on the sale of unused fixed assets|
|of $1,591,000 and a bargain purchase gain of $1,096,000 for the Truitt Bros. acquisition.|
|Other loss for the six month period ended October 1, 2016 of $19,000 represents a net loss on the sale of unused fixed assets|
|of $48,000 and a gain of $29,000 to adjust a previously recorded environmental charge.|
|Note 4: The Company uses the "two-class" method for basic earnings per share by dividing the earnings attributable to common shareholders|
|by the weighted average of common shares outstanding during the period.|