Flowers Industries (NYSE: FLO) today reported sales and earnings for the second quarter ended July 15, 2000. Consolidated net sales for the quarter were $977.1 million compared with $940.3 million for last year’s second quarter. Net income for the second quarter was $5.5 million, or $.06 per share, compared to a loss of $27.7 million, or $.28 per share, reported for the second quarter last year.
For the first half of 2000, consolidated net sales were $2.3 billion compared with $2.2 billion for the 1999 first half. Net income for the first half of 2000 was $22.3 million, or $.22 per share, compared to a loss of $2.9 million, or $.03 per share, reported for the first half of 1999.
Go deeper with GlobalData
“Both Flowers Bakeries and Keebler Foods reported excellent results for the second quarter. We are making progress with the turnaround at Mrs. Smith’s Bakeries,” said Amos R. McMullian, Flowers Industries’ chairman of the board and chief executive officer.
Flowers Bakeries, the company’s fresh baked foods business, recorded higher sales and operating income in the second quarter compared to last year. Flowers Bakeries’ sales were $240.7 million, a 5.5% increase over sales in last year’s second quarter. Flowers Bakeries’ operating income, or EBIT (Earnings Before Interest and Taxes), for the quarter was $20.4 million, or 8.7% better than the EBIT reported for the second quarter of 1999. “As expected, Flowers Bakeries continues to generate increased cash flow and earnings,” McMullian said.
Keebler Foods (NYSE: KBL), the national cookie and cracker company in which Flowers Industries is the majority shareholder, reported increased sales and operating income for the second quarter of fiscal 2000. Keebler reported sales of $613.6 million for the second quarter, an increase of 4.4% over the same quarter last year. Keebler’s operating income excluding non-recurring items for the quarter was $66.5 million, a 36.5% increase over the same period in fiscal 1999. “Keebler’s performance is excellent and we continue to be pleased with our investment in this great company,” McMullian said.
Mrs. Smith’s Bakeries, Flowers Industries’ frozen baked foods business, reported sales for the quarter of $122.8 million, a decrease of 1.2% compared to last year’s second quarter. Mrs. Smith’s operating loss for the quarter was $13.9 million. “As expected, Mrs. Smith’s was not profitable this quarter. However, production equipment repairs were completed during the quarter and production of seasonal holiday desserts is underway. We anticipate continued progress going forward,” McMullian said.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataOn July 18, 2000, Flowers and Keebler announced that their respective boards of directors authorized the companies to explore strategic alternatives, including the potential sale of Keebler. At the same time, Flowers announced its intention to spin-off its non-Keebler businesses (Flowers Bakeries and Mrs. Smith’s Bakeries) to Flowers’ shareholders.
Flowers Industries, Inc., headquartered in Thomasville, Ga., is a national branded baked foods company which produces and markets a full line of fresh and frozen packaged baked foods for retail, foodservice, in-store bakery, institutional and vend providers. These products are sold under such well- known brands as Keebler, Cheez-It, Famous Amos, Mrs. Smith’s, Pet-Ritz, Nature’s Own, and Cobblestone Mill.
Statements contained in this press release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected. Other factors that may cause actual results to differ from the forward-looking statements contained in this release and that may affect the company’s prospects in general include, but are not limited to, changes in general economic and business conditions (including the baked foods markets), the company’s ability to operate the manufacturing lines according to schedule and train personnel to run the new production capacity, the availability of capital on acceptable terms, actions of competitors and customers, the extent to which the company is able to develop new products and markets for its products and such other factors as are described in the company’s filings with the Securities and Exchange Commission.
Flowers Industries, Inc.
Consolidated Statement of Income
(000's omitted, except per share data)
For the 12 Week Period Ended Percent
July 15, 2000 July 17, 1999 Change
Sales $977,086 100.0% $940,334 100.0% 3.9%
Materials,
supplies,
labor and
other
production
costs 444,788 45.5 443,928 47.2
Gross margin 532,298 54.5 496,406 52.8 7.2%
Selling,
marketing
and
administrative
expenses 426,349 43.6 431,876 45.9
Depreciation
and
amortization 41,885 4.3 32,808 3.5
Non-recurring
charge (996) (0.1) 69,208 7.4
Income (loss)
from operations
(EBIT) 65,060 6.7 (37,486) (4.0)
Interest expense,
net 27,202 2.8 18,102 1.9
Income (loss)
before income
taxes and
minority
interest 37,858 3.9 (55,588) (5.9)
Income taxes 17,160 1.8 (18,271) (1.9)
Income (loss)
before minority
interest 20,698 2.1 (37,317) (4.0)
Minority
interest (15,169) (1.6) 9,582 1.0
Net income
(loss) $5,529 0.6% $(27,735) (2.9)% 119.9%
EBITDA $106,945 10.9% $(4,678) (0.5)% 2,386.1%
Diluted Net Income (Loss) Per Common Share:
Net income
(loss) per
share $0.06 $(0.28) 121.4%
Weighted
average
shares
outstanding 100,285 100,376
Cash Dividends
Paid Per
Common
Share $0.1325 $0.1275 3.9%
Flowers Industries, Inc.
Consolidated Statement of Income
(000's omitted, except per share data)
For the 28 Week Period Ended Percent
July 15, 2000 July 17, 1999 Change
Sales $2,294,499 100.0% $2,242,029 100.0% 2.3%
Materials,
supplies,
labor and
other
production
costs 1,043,193 45.5 1,051,872 46.9
Gross
margin 1,251,306 54.5 1,190,157 53.1 5.1%
Selling,
marketing
and
administrative
expenses 998,941 43.5 990,352 44.2
Depreciation
and
amortization 88,285 3.8 73,259 3.3
Non-recurring
charge (996) (0.0) 69,208 3.1
Income from
operations
(EBIT) 165,076 7.2 57,338 2.6
Interest
expense, net 59,606 2.6 44,055 2.0
Income before
income taxes
and minority
interest 105,470 4.6 13,283 0.6
Income taxes 46,653 2.0 11,113 0.5
Income before
minority
interest 58,817 2.6 2,170 0.1
Minority
interest (36,539) (1.6) (5,070) (0.2)
Net income
(loss) $22,278 1.0% $(2,900) (0.1)% 868.2%
EBITDA $253,361 11.0% $130,597 5.8% 94.0%
Diluted Net Income (Loss) Per Common Share:
Net income
(loss) per
share $0.22 $(0.03) 833.3%
Weighted
average shares
outstanding 100,368 100,339
Cash Dividends
Paid Per
Common Share $0.2650 $0.2525 5.0%
Flowers Industries, Inc.
Segment Reporting
(000's omitted)
For the 12 Week For the 28 Week
Period Ended Period Ended
July 15, July 17, July 15, July 17,
2000 1999 2000 1999
Sales:
Flowers Bakeries,
Inc. $240,729 $228,159 $548,686 $519,621
Mrs. Smith's Bakeries,
Inc. 137,356 140,898 310,292 321,544
Keebler Foods Company 613,572 587,847 1,469,432 1,439,880
Eliminations(1) (14,571) (16,570) (33,911) (39,016)
$977,086 $940,334 $2,294,499 $2,242,029
EBITDA:
Flowers Bakeries,
Inc. $29,093 $26,243 $64,339 $56,419
Mrs. Smith's Bakeries,
Inc. (7,168) (24,015) (8,855) (7,927)
Keebler Foods Company 91,213 68,428 209,660 162,548
Flowers Industries,
Inc. (7,189) (6,126) (12,779) (11,235)
Non-recurring Charge 996 (69,208) 996 (69,208)
$106,945 $(4,678) $253,361 $130,597
Depreciation and Amortization:
Flowers Bakeries,
Inc. $8,699 $7,476 $19,646 $17,140
Mrs. Smith's Bakeries,
Inc. 6,685 4,005 14,951 9,221
Keebler Foods Company 24,682 19,696 49,433 43,171
Flowers Industries,
Inc. 1,819 1,631 4,255 3,727
$41,885 $32,808 $88,285 $73,259
Income (Loss) from Operations or EBIT:
Flowers Bakeries,
Inc. $20,394 $18,767 $44,693 $39,279
Mrs. Smith's Bakeries,
Inc. (13,853) (28,020) (23,806) (17,148)
Keebler Foods Company 66,531 48,732 160,227 119,377
Flowers Industries,
Inc. (9,008) (7,757) (17,034) (14,962)
Non-recurring Charge 996 (69,208) 996 (69,208)
$65,060 $(37,486) $165,076 $57,338
(1) Represents elimination of intersegment sales from Mrs. Smith's
Bakeries, Inc. to Flowers Bakeries, Inc., which are transferred at
standard costs.
Flowers Industries, Inc.
Condensed Consolidated Balance Sheet
(000's omitted)
July 15, January 1,
2000 2000
Assets
Current Assets $623,858 $690,538
Property, Plant & Equipment, net 1,204,701 1,149,639
Other Assets 92,967 88,715
Cost in Excess of Net Tangible Assets, net 1,176,454 971,586
Total Assets $3,097,980 $2,900,478
Liabilities and Stockholders' Equity
Current Liabilities $626,648 $655,797
Long-Term Debt 1,410,340 1,208,630
Deferred Income Taxes 145,606 162,470
Postretirement/Postemployment Obligations 64,443 64,772
Facility Closing Costs and Severance 23,657 30,188
Other Liabilities 61,941 56,289
Minority Interest 220,946 183,578
Common Stockholders' Equity 544,399 538,754
Total Liabilities and Stockholders' Equity $3,097,980 $2,900,478
