USA: WLR Foods reports first quarter results
For the first quarter of fiscal 2001, the Company reported net income of $3.9 million, or $0.24 per diluted share, an increase of 53.6% over net income of $2.5 million, or $0.15 per diluted share, in the first quarter of fiscal 2000. Net sales in the fiscal 2001 first quarter increased 4.9% to $211.9 million versus net sales of $202.0 million in the year-ago first quarter.
The Company's fiscal 2001 first quarter results reflect improved profitability within both its chicken and turkey operations as a result of enhanced live performance, improved chicken processing costs and increased sales of the Company's value-added turkey products. This increased profitability more than offset lower chicken pricing and slightly higher grain costs.
Commenting on these results, James L. Keeler, President and Chief Executive Officer of WLR Foods, stated, "We are very pleased to have accomplished such strong results despite the continued challenging conditions in the chicken markets. By maintaining our focus on careful cost management during this period, we were able to improve live performance and reduce chicken processing costs, allowing the Company's chicken division to report a profitable quarter for the first time in five quarters."
Mr. Keeler continued, "The fiscal first quarter also saw our turkey operations continue to strengthen, with profitability in this division improving over 50% from a year ago. While turkey commodity pricing has improved slightly from year-ago levels, the majority of our profitability improvement in this division resulted from an 8% increase in sales of our value-added turkey products. The improved sales mix and increased profitability within our turkey division indicate that we have begun to benefit from our recently implemented strategic plan."
As previously announced during the quarter, the Company has signed a definitive agreement with Pilgrim's Pride Corporation (NYSE: CHX, CHX.A) through which Pilgrim's Pride has agreed to acquire all the outstanding stock of WLR Foods for $14.25 per share. The merger is subject to customary closing conditions, including the receipt of regulatory approval and the approval of WLR Foods' shareholders. The transaction has received the unanimous approval of both companies' Boards of Directors and is expected to be completed in January 2001.
WLR Foods is a fully integrated provider of high quality value-added turkey and chicken products primarily under the Wampler Foods® brand. It is nationally ranked as the seventh largest poultry food processor by sales volume and is an international leader in poultry exports. WLR Foods has processing operations in Virginia, North Carolina, West Virginia, and Pennsylvania.
Statements contained in this press release that state the intentions, beliefs, expectations or predictions of the future of WLR Foods and its management are forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. For example, no assurance is or can be given that the merger described above will be consummated. Factors that could cause actual results to differ materially from those projected in such forward-looking statements also include: changes in commodity prices of chicken products, turkey products and feed ingredients; flock health; the impact of current and future laws and regulations; and other risks described in the company's SEC filings. The foregoing release is not intended to solicit proxies in connection with the merger and shall not be deemed to be a proxy solicitation. WLR Foods will separately solicit proxies by means of a proxy statement that will be distributed to its shareholders.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(in thousands, except per share data)
Thirteen Weeks Ended
Net sales $ 211,881 $ 202,007
Cost of sales 179,265 172,705
Gross profit 32,616 29,302
Selling, general and administrative expenses 25,218 24,355
Operating income 7,398 4,947
Interest expense 1,506 1,233
Other income, net (26) (371)
Earnings before income taxes 5,918 4,085
Income tax expense 2,012 1,542
Net earnings $ 3,906 $ 2,543
Diluted earnings per common share $ 0.24 $ 0.15
Diluted weighted average common shares 16,516 16,857
Capital expenditures $ 2,237 $ 2,254
Depreciation expense 4,378 4,615
CONSOLIDATED BALANCE SHEETS
Cash and cash equivalents $ 120 $ 85
Accounts receivable, net 63,220 59,541
Inventories 108,244 110,980
Other current assets 3,975 3,032
Total current assets 175,559 173,638
Property, plant and equipment, net 99,915 102,070
Other assets 5,676 7,807
Total Assets $ 281,150 $283,515
Liabilities and Shareholders' Equity
Current maturities of long-term debt $ 6,299 $ 6,052
Trade accounts payable 34,878 38,641
Accrued payroll and related benefits 14,891 15,148
Other current liabilities 21,999 21,384
Total current liabilities 78,067 81,225
Long-term debt, excluding current maturities 50,229 51,036
Other liabilities and deferred credits 7,652 7,250
Shareholders' equity 145,202 144,004
Total Liabilities and Shareholders' Equity $ 281,150 $ 283,515
Companies: Pilgrim’s Pride
Poultry producer Pilgrim's Pride Corporation has received an innovation award from fastfood company Wendy's International....
US poultry processor Pilgrim's Pride has said its results for the fourth quarter and full year were at the top end of its earnings expectations....
US poultry processor Pilgrim's Pride has announced that it has acquired a prepared foods plant in Bossier City, Louisiana, supporting the company's long-term strategy to add value through continued gr...
US poultry processor Pilgrim's Pride has announced that it is raising its previously issued earnings guidance for the fourth quarter of fiscal 2005 to a range of $1.07 to $1.12 per share from the $0.9...
US poultry producer Pilgrim's Pride has reported that it received virtually no damage to its company-owned facilities and minimal damage to its contracted growing facilities as Hurricane Rita passed t...
Packaged food company ConAgra Foods Inc has reported a sharp rise in income for the first quarter ended 28 August 2005, reflecting a large gain on its sale of a stake in Pilgrim's Pride....
US poultry producer Pilgrim's Pride has said its facilities were not directly affected by hurricane Katrina and it therefore expects to see a short-term benefit from the lower US chicken production....
US poultry processor Pilgrim's Pride has reaffirmed its fourth-quarter earnings guidance for fiscal 2005 of between $0.90 and $1.00 per share....
- Price an underlying tension across European FMCG
- Interview: UK trade body on Brexit's policy impact
- Danone's Q3 sales - what the analysts say
- Interview: UK trade body on the impact of Brexit
- It won't just be Unilever to push for Brexit hikes
- Nestle lowers outlook on "softer environment"
- UK announces "action plan" to drive food exports
- Bel takes majority stake in MOM Group
- Online snack seller Graze makes US retail debut
- Kraft Heinz: Innovation more important than ever
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Omega-3 in Food and Beverage:Time for a Reboot?
- Global Food Packaging: Innovating for Greater Convenience and Quality Image
- Packaged Food: Quarterly Statement Q3 2016
- Constellation Brands, Inc. (STZ) - Financial and Strategic SWOT Analysis Review