US: Seneca Foods swings to Q1 profit
- Net profit of $8.2m from loss of $8m
- Sales slide 10.4%
Seneca's earnings amounted to US$8.2m in the quarter
US canned vegetables maker Seneca Foods returned to profitability in its first quarter, despite recording a drop in sales.
Earnings in the three months ended 2 July amounted to US$8.2m compared to a net loss of $8m in the prior-year period. Last year's comparable results included a $4.3m non-cash LIFO (inventory valuation method) charge and plant restructuring expenses of $54,000.
The company made an operating profit of $14.3m in the quarter versus an operating loss of $10.2m in the comparable period last year.
Sales, however, slid 10.4% to $26.8m. The company blamed a sales volume decrease of $57.3m, partially offset by higher selling prices and a more favourable sales mix of $30.5m.
Seneca Foods Reports Net Earnings Increase of $16.2 Million for the First Fiscal Quarter of 2013
MARION, N.Y., Aug. 3, 2012 /PRNewswire/ -- Seneca Foods Corporation (NASDAQ: SENEA, SENEB) reported net earnings for the fiscal first quarter of 2013 of $8.2 million, or $0.67 per diluted share, compared to a loss of $8.0 million, or $(0.66) per diluted share, in the fiscal first quarter of 2012. Net sales for the first quarter ended June 30, 2012 decreased from the first quarter ended July 2, 2011 by 10.4%, or $26.8 million to $231.0 million. The decrease is attributable to a sales volume decrease of $57.3 million partially offset by higher selling prices and a more favorable sales mix of $30.5 million. Part of the sales volume decrease can be attributed to the fact that last year we were selling off excess inventories while the current year inventories are more in balance.
Excluding a non-cash after-tax LIFO charge of $0.8 million, net earnings per diluted share were $0.74 during the quarter ended June 30, 2012 versus a net loss of $0.31 during the quarter ended July 2, 2011, which included a non-cash LIFO charge of $4.3 million.
About Seneca Foods Corporation
Seneca Foods is a processor of canned fruits and vegetables with manufacturing facilities located throughout the United States. Its products are sold under the Libby's, Blue Boy, Aunt Nellie's Farm Kitchen, Stokely's, READ, Seneca Farms and Seneca labels as well as through the private label and industrial markets. In addition, under an alliance with General Mills Operations, LLC, a successor to the Pillsbury Company and a subsidiary of General Mills, Inc., Seneca produces canned and frozen vegetables, which are sold by General Mills Operations, LLC under the Green Giant label. Seneca's common stock is traded on the Nasdaq Global Stock Market under the symbols "SENEA" and "SENEB". SENEA is included the S&P SmallCap 600, Russell 2000 and Russell 3000 indices.
Non-GAAP Financial Measures-Net Earnings Excluding LIFO Impact, EBITDA and FIFO EBITDA
Net Earnings excluding LIFO, EBITDA and FIFO EBITDA are non-GAAP financial measures. The Company believes these non-GAAP financial measures provide a basis for comparison to companies that do not use LIFO and enhance the understanding of the Company's historical operating performance. 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.
Set forth below is a reconciliation of reported net earnings and reported diluted earnings per share to net earnings excluding LIFO and diluted earnings per share excluding LIFO.
Original source: Seneca Foods
- Danone's Q1: four things to learn
- Who will buy Danone's Stonyfield business?
- Nestle Q1 update: four things to learn
- Interview: Sir Kensington's on sale to Unilever
- Column: Why snacking is the new meal
- Tyson shops Sara Lee bakery, Kettle and Van's
- Nestle to cut UK confectionery jobs
- PepsiCo affirms full-year target as Q1 hits mark
- Tyson to buy burger-to-entree firm AdvancePierre
- Icelandic to sell Saucy Fish Co. owner Seachill