Riviana Foods Inc. (Nasdaq: RVFD) reported earnings per diluted share of $0.33 for the first quarter ended September 30, 2001, versus $0.34 per diluted share for last year. Net income was $4.6 million, on sales of $93.2 million, compared to net income of $4.8 million, on sales of $94.5 million, for the first quarter last year.
Riviana’s domestic rice business reported an increase of $1.4 million, or 2%, in sales for the first fiscal quarter. Unit volume growth was strong in all segments except export and commodity, which recorded a 13% decline. Total retail unit volumes increased 3% over the prior year. Regular dried rice volumes increased 1%, volumes in the value added category of instant and prepared rice mixes increased 9% and brown rice volumes were up 20%. Sales in the foodservice segment increased 24% while industrial sales were up 26%. Due to competitive pressure in the value added retail rice segment and declines in volumes and margins in the commodity white and parboil markets, operating profit declined 10% to $6.5 million.
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In Central America, sales of cookies, crackers, processed fruits and vegetables were even with the prior year, while operating profit increased 20% to $2.2 million, despite difficult economic conditions in the region. Unit volumes for processed fruits and vegetables increased 8.5% while volumes for cookies and crackers were even with the first quarter last year. Profits were up due to improved gross margin, resulting from production efficiencies and selective price increases.
The Company’s European operations reported a $2.8 million decline in sales while operating profit was even with the prior year at $0.3 million. Sales declined due to the effects of increased competition in key markets and the previously reported loss of two distributorships in the United Kingdom. Despite the decline in sales, operating profit remained even with the prior year as a result of improvement in operating margins due to the cost savings from the restructuring and other actions undertaken in fiscal 2001.
“We are encouraged by the improvements in our domestic rice business, the strength of our Central American franchise and the stabilization of our European results,” said Joseph A. Hafner, Jr., president and chief executive officer. “Despite the current uncertainties in the U.S. and world economies and the competitive market conditions, we are optimistic that we will achieve improved operating earnings in fiscal 2002.”
The Company recorded net interest income of $0.1 million related to improved cash flow in the current period compared to a nominal amount of interest expense in the prior year. Other income declined $0.3 million due to a $0.5 million reduction in gains from the sales of marketable securities. This was partially offset by $0.2 million in increased earnings from the Company’s equity in the earnings of its unconsolidated affiliates in the rice flour and Belgian and German rice businesses.
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By GlobalDataTo date, Riviana has purchased 2,022,246 shares of the total 3,000,000 shares authorized for repurchase under its stock repurchase program.
As previously reported, Riviana paid a quarterly cash dividend of $0.16 per common share on October 9, 2001, to stockholders of record September 4, 2001.
Based in Houston, Texas, Riviana Foods Inc. is one of the largest processors, marketers and distributors of branded and private-label rice products in the United States. Principal brands include Mahatma®, Carolina® and Success®. The Company has additional food operations in Central America and Europe.
This press release includes forward-looking statements under the rules of the Securities and Exchange Commission. Although the Company believes that the expectations reflected in these statements are based upon reasonable assumptions, Riviana can give no assurance that these expectations will be achieved.
(COMPARATIVE TABLES FOLLOW)
RIVIANA FOODS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Amounts)
Three Months Ended
(Unaudited)
September 30, 2001 October 1, 2000(A)
NET SALES $93,153 $94,476
COST OF SALES 68,272 69,717
Gross profit 24,881 24,759
COSTS AND EXPENSES:
Advertising, selling and warehousing 13,002 12,451
Administrative and general 5,384 5,668
Total costs and expenses 18,386 18,119
Income from operations 6,495 6,640
OTHER INCOME (EXPENSE):
Interest income (expense), net 107 (21)
Other income, net 75 369
Income before income taxes and
minority interests 6,677 6,988
INCOME TAX EXPENSE 1,983 2,096
MINORITY INTERESTS IN EARNINGS OF
CONSOLIDATED SUBSIDIARIES 86 104
NET INCOME $ 4,608 $ 4,788
Earnings per share:
Basic $0.33 $0.34
Diluted 0.33 0.34
Dividends paid per share $0.16 $0.14
Weighted average common shares
outstanding:
Basic 14,044 14,125
Diluted 14,131 14,197
(A) In accordance with new accounting requirements issued by the
Financial Accounting Standards Board, net sales, cost of sales, gross
profit and advertising, selling and warehousing have been restated to
reflect the reclassification of certain sales incentives.
RIVIANA FOODS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands)
September 30, 2001 July 1, 2001
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $12,407 $ 14,990
Marketable securities 72 71
Accounts receivable 40,084 39,840
Inventories 51,038 45,046
Prepaid expenses 2,988 2,265
Total current assets 106,589 102,212
PROPERTY, PLANT AND EQUIPMENT, net 90,352 90,547
INVESTMENTS IN UNCONSOLIDATED
AFFILIATES 9,514 9,431
OTHER ASSETS 6,312 6,103
Total assets $212,767 $208,293
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current maturities and short-term
debt $913 $4,816
Accounts payable and accrued
liabilities 44,946 40,031
Income taxes payable 6,705 5,374
Total current liabilities 52,564 50,221
LONG-TERM DEBT, net of current
maturities 1,646 1,462
DEFERRED INCOME TAXES AND OTHER
LIABILITIES 15,366 15,776
STOCKHOLDERS’ EQUITY 143,191 140,834
Total liabilities and
stockholders’ equity $212,767 $208,293
