J. M. Smucker Announces Year-End Results
ORRVILLE, Ohio, June 17 /PRNewswire/ -- The J. M. Smucker Company, (NYSE: SJM.A and SJM.B), today announced its financial results for the year ended April 30, 1999. Sales for the year were $602,457,000, up 6.5% over fiscal 1998 sales of $565,476,000. Earnings for the year increased approximately 4% to $37,763,000 or $1.30 per share. This compared to earnings of $36,348,000 or $1.25 per share last year, before the effect of an accounting change.
The Company also announced that sales in the fourth quarter were $156,291,000, up nearly 10% over the same period last year, while earnings for the period were $10,039,000, an increase of 3%. Earnings per share in the fourth quarter were $.35 compared to $.34 last year.
The Company reported sales increases in all areas of its business, with the majority of the growth occurring in the consumer, industrial, international, and foodservice markets. In consumer, the majority of the increase came in the traditional fruit spreads segment and from the impact of the introduction of Smucker's Snackers, the Company's convenient new shelf- stable peanut butter and jelly offering for lunches and snacks. The acquisition of the Adams natural peanut butter business in December 1998 also contributed. In the foodservice and industrial markets, sales from new products and new businesses contributed to the increase over fiscal 1998.
In international, the majority of the growth occurred in the Australasia market and was primarily due to the acquisition of the Allowrie brand of fruit spreads early in the fiscal year. Overall, acquisitions contributed approximately 10% to international sales for the year. Gains were also realized in Mexico where sales increased by nearly 50% over the prior year. The growth in international occurred despite the adverse effect of exchange rates on the results in Canada and Australia.
The Company stated that it was pleased with the increase in earnings, especially in view of investment spending during the year and higher than planned operational costs. The investment spending included costs associated with the rollout of Smucker's Snackers and the Company's consumer direct initiatives. The Company expressed optimism that the investments being made, including the ongoing investment in the upgrade of its information systems, would bring benefits and contribute to income improvements in the future.
The Company also announced today that it expects to complete the private placement of $75 million in senior long-term notes within the next several days. According to the Company, the notes will have a term of ten years, with interest payable semiannually and principle payable at the end of the term. The proceeds will be used for general corporate purposes, including retirement of current short-term borrowings, continuation of the Company's stock repurchase program, and acquisitions and other investments.
This release contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed from time to time in reports filed by the Company with the Securities and Exchange Commission, including forms 10-Q and 10-K.
The J. M. Smucker Company is the nation's leading producer of branded preserves, jams, jellies, and other fruit spread products, health and natural foods beverages, ice cream toppings, and natural peanut butter.
The J.M. Smucker Company
STATEMENTS OF CONSOLIDATED INCOME
Year Ended April 30,
1999 1998
(Dollars in thousands,
except per share data)
Net sales $ 602,457 $ 565,476
Cost of products sold 395,944 365,613
Gross Profit 206,513 199,863
Selling, distribution, and
administrative expenses 147,538 142,799
Operating Income 58,975 57,064
Interest income 1,948 2,525
Interest expense (179) (145)
Other income -- net 887 1,315
Income Before Income Taxes and Cumulative
Effect of Change in Accounting Method 61,631 60,759
Income taxes 23,868 24,411
Income Before Cumulative Effect of
Change in Accounting Method 37,763 36,348
Cumulative effect of change in accounting
method, net of tax benefit of $1,980 -- (2,958)
Net Income $37,763 $33,390
Net income per Common Share:
Income before cumulative effect of change
in accounting method $1.30 $1.25
Cumulative effect of change
in accounting method -- (.10)
Net income $1.30 $1.15
Net income per Common Share -- Assuming
Dilution:
Income before cumulative effect of change
in accounting method $1.29 $1.24
Cumulative effect of change
in accounting method -- (.10)
Net income $1.29 $1.14
Dividends declared per share:
Class A $.57 $.53
Class B $.57 $.53
Weighted-Average Shares Outstanding 29,057,593 29,038,723
Weighted-Average Shares
Outstanding -- Assuming Dilution 29,274,719 29,345,278
The J. M. Smucker Company
CONDENSED CONSOLIDATED BALANCE SHEETS
April 30,
1999 1998
(Dollars in thousands)
ASSETS
Current Assets:
Cash and cash equivalents $8,683 $36,484
Trade receivables 51,858 48,732
Inventories 114,200 103,465
Other current assets 11,401 12,825
Total Current Assets 186,142 201,506
Property, Plant & Equipment, Net 166,543 143,714
Other Noncurrent Assets 81,198 62,753
Total $ 433,883 $ 407,973
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $40,262 $41,410
Notes payable 8,966 --
Other current liabilities 38,403 43,490
Total Current Liabilities 87,631 84,900
Noncurrent Liabilities 21,923 20,896
Shareholders' Equity, Net 324,329 302,177
Total $ 433,883 $ 407,973
The J. M. Smucker Company
SUMMARY OF QUARTERLY RESULTS OF OPERATIONS
(Unaudited)
The following is a summary of unaudited quarterly results of operations
for the years ended April 30, 1999 and 1998.
(Dollars in thousands, except per share data)
Income
Before
Cumulative
Effect of
Quarter Net Gross Accounting Net
Ended Sales Profit Change Income
1999 July 31 $150,500 $53,862 $10,416 $10,416
October 31 154,894 51,690 9,063 9,063
January 31 140,772 49,055 8,245 8,245
April 30 156,291 51,906 10,039 10,039
1998 July 31 $147,389 $51,396 $9,973 $9,973
October 31 145,187 49,213 8,602 8,602
January 31 130,658 47,232 8,033 5,075
April 30 142,242 52,022 9,740 9,740
Net Income per Net Income per Common
Common Share Share -- Assuming
Dilution
Income Income
Before Before
Cumulative Cumulative
Effect of Effect of
Quarter Accounting Net Accounting Net
Ended Change Income Change Income
1999 July 31 $0.36 $0.36 $0.36 $0.36
October 31 0.31 0.31 0.31 0.31
January 31 0.28 0.28 0.28 0.28
April 30 0.35 0.35 0.34 0.34
1998 July 31 $0.34 $0.34 $0.34 $0.34
October 31 0.30 0.30 0.29 0.29
January 31 0.27 0.17 0.27 0.17
April 30 0.34 0.34 0.33 0.33
Annual earnings per share may not equal the sum of the individual quarters due to differences in the average number of shares outstanding during the respective periods.
