Vlasic Foods International today announced fiscal 2000 third quarter results for the period ending April 30, 2000.
Net earnings for the quarter showed a net loss of $2.3 million, or $0.05 per share, versus a net loss a year ago of $140.1 million, or $3.08 per share, including special items. Results for the quarter include a gain of $4.6 million or $0.10 per share, on the divestiture of the Company’s fresh mushroom business which was completed during the quarter.
Go deeper with GlobalData
Earnings from continuing operations showed a loss of $6.8 million, or $0.15 per share. Results were impacted by increased interest expense and lower sales volume.
Sales for the quarter were $221.8 million versus $293.3 million a year ago, which included sales from the divested Argentine beef business. Excluding sales in the prior year from divested businesses, sales decreased approximately 12 percent in the quarter as retailers reduced inventories. Consumption in the quarter for the Company’s “Vlasic” condiments and “Open Pit” barbecue sauce businesses each grew one percent. Consumption in “Swanson” frozen foods was flat in the quarter.
During the quarter the Company began selling to retailers: two additional varieties in its successful line of “Swanson” Potato Topped Pot Pies; a new six-item line of “Vlasic” peppers; and a new premium line of “Open Pit Grill Classics” barbecue sauces.
Net earnings for the first nine months showed a net loss of $19.8 million or a loss of $0.44 per share, versus a net loss a year ago of $123.7 million or a loss of $2.72 per share, reflecting the impact of special items. Earnings from continuing operations for the first nine months showed a loss of $17.7 million or $0.39 per share. Sales for the first nine months were $695.3 million versus $913.1 million a year ago. Excluding sales in the prior year from divested businesses, sales decreased five percent as retailers reduced inventories.
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 GlobalDataDuring the third quarter of fiscal 1999, the Company recognized a net charge of $143.8 million, or $3.16 per share for special items, primarily those associated with the divestiture of its Argentine beef business. Special items for the first nine months of fiscal 1999 totaled $140.6 million or $3.09 per share.
The Company noted that as it continues to focus on cash generation, it believes it may be at or near breakeven on an operating basis, before interest and taxes, in its fiscal 2000 fourth quarter.
The Company has been operating under a waiver of certain covenants to its senior credit facility that runs through June 20, 2000. The Company is negotiating with the bank syndicate to extend that waiver.
The previously announced Lazard Freres strategic review process is on schedule.
Forward Looking Statement
This release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company believes the assumptions underlying the forward-looking statements, including, among other things, those relating to interest expense, sales and earnings, debt, inventories, consumption patterns and strategic alternatives are reasonable. However, any of the assumptions could be inaccurate, and therefore there can be no assurance that the forward-looking statements contained in this release will prove to be accurate. Additional information that could cause actual results to vary materially from the results anticipated may be found in the Company’s most recent Form 10-K and Form 10-K/A and other reports filed with the Securities Exchange Commission. Furthermore, the Company disclaims any obligation or intent to update any such factors or forward-looking statements to disclaim future events and developments.
VLASIC FOODS INTERNATIONAL
STATEMENTS OF EARNINGS (unaudited)
(in thousands, except per share amounts)
QUARTERS ENDED NINE MONTHS ENDED
April 30, May 2, April 30, May 2,
2000 1999 2000 1999
Net sales $221,750 $293,261 $695,333 $913,147
Costs and expenses
Cost of products sold 147,000 196,297 463,872 622,966
Marketing and selling
expenses 58,586 61,100 178,207 173,875
Administrative expenses 11,964 9,583 36,730 44,514
Research and development
expenses 2,158 2,345 6,058 5,515
Other expense, net 426 167 2,296 753
Special items — 136,785 345 133,585
Total costs and
expenses 220,134 406,277 687,508 981,208
Earnings (loss) before
interest and taxes 1,616 (113,016) 7,825 (68,061)
Interest expense, net 12,308 10,892 36,018 32,202
Earnings (loss) before
taxes (10,692) (123,908) (28,193) (100,263)
Taxes on earnings (3,850) 13,599 (10,495) 21,101
Earnings (loss) from
continuing operations (6,842) (137,507) (17,698) (121,364)
Discontinued operations
Earnings (loss) from
discontinued operations,
net of tax — (2,621) (6,699) (2,295)
Gain on sale of
discontinued
operations,
net of tax 4,571 — 4,571 —
Net earnings (loss) $(2,271) $(140,128) $(19,826) $(123,659)
Earnings (loss) per share
– basic
Earnings (loss) from
continuing operations $(0.15) $(3.02) $(0.39) $(2.67)
Earnings (loss) from
discontinued
operations $0.10 $(0.06) $(0.05) $(0.05)
Net earnings (loss) $(0.05) $(3.08) $(0.44) $(2.72)
Weighted average shares
outstanding – basic 45,502 45,500 45,502 45,497
Earnings (loss) per share
– assuming dilution
Earnings (loss) from
continuing operations $(0.15) $(3.02) $(0.39) $(2.67)
Earnings (loss) from
discontinued
operations $0.10 $(0.06) $(0.05) $(0.05)
Net earnings (loss) $(0.05) $(3.08) $(0.44) $(2.72)
Weighted average shares
outstanding – assuming
dilution 45,502 * 45,500 * 45,502 * 45,497 *
Excludes potentially dilutive shares as the result would be antidilutive.
VLASIC FOODS INTERNATIONAL
SCHEDULES OF SEGMENT INFORMATION (unaudited) (A)
(in thousands)
QUARTERS ENDED NINE MONTHS ENDED
April 30, May 2, Percent April 30, May 2, Percent
2000 1999 Change 2000 1999 Change
Net Sales
Frozen Foods $124,144 $138,174 -10% $395,089 $406,403 -3%
Grocery Products 67,111 81,083 -17% 194,047 205,421 -6%
United Kingdom
Operations 30,495 33,635 -9% 106,197 119,853 -11%
Divested
Businesses — 40,369 NM — 181,470 NM
Total $221,750 $293,261 -24% $695,333 $913,147 -24%
Earnings (Loss) Before Interest
and Taxes from Continuing Operations (B)
Frozen Foods $4,811 $13,031 -63% $14,018 $38,933 -64%
Grocery Products 815 11,480 -93% 2,010 28,609 -93%
United Kingdom
Operations (1,632) 3,120 -152% (2,568) 6,334 -141%
Divested
Businesses — (138,177) NM 1,155 (134,642) NM
Unallocated
Corporate
Expenses (2,378) (2,470) 4% (6,790) (7,295) 7%
Total $1,616 $(113,016) 101% $7,825 $(68,061) 111%
NM – Percent change is not meaningful.
(A) In the second quarter of fiscal 2000, we restated our segment
reporting structure as a result of the divestiture of three
businesses and to align with changes to our internal structure.
The Frozen Foods segment consists of Swanson frozen foods in the
United States and Canada and contract manufacturing of primarily
frozen foodservice products in the United States. The Grocery
Products segment includes Vlasic retail and foodservice pickles
and condiments and Open Pit barbecue sauce in the United States.
The United Kingdom Operations segment includes Freshbake frozen
foods and SonA and Rowats pickles, canned beans and vegetables in
the United Kingdom. The Divested Businesses segment includes
the aggregated results from the Kattus German gourmet foods
distribution business and the Swift-Armour Argentine beef
business. The Vlasic Fresh mushroom business has been classified
as a discontinued operation and excluded from segment
information. Prior year information has been reclassified to
conform with the current year presentation.
(B) Contributions to earnings (loss) before interest and taxes from
continuing operations included the following special items: 1)
fiscal 2000 second quarter United States restructuring charge of
$1.5 million, 2) fiscal 2000 second quarter benefit of $1.2
million relating to the sale of the Kattus business, and 3)
fiscal 1999 third quarter charge of $140.0 million for the
divestiture of Swift-Armour partially offset by a $3.2 million
benefit resulting from the reversal of a restructuring charge
that was completed, as well as a second quarter fiscal 1999
benefit of $3.2 million related to the sale of the Kattus
business.
QUARTERS ENDED NINE MONTHS ENDED
April 30, May 2, April 30, May 2,
2000 1999 2000 1999
Frozen Foods $– $– $917 $–
Grocery Products – (1,100) 583 (1,100)
United Kingdom Operations – (2,115) – (2,115)
Divested Businesses – 140,000 (1,155) 136,800
Unallocated
Corporate Expenses — — — —
Total $– $136,785 $345 $133,585
VLASIC FOODS INTERNATIONAL
SCHEDULES OF GEOGRAPHIC INFORMATION (unaudited)
(in thousands)
QUARTERS ENDED NINE MONTHS ENDED
April 30, May 2, Percent April 30, May 2, Percent
2000 1999 Change 2000 1999 Change
Net Sales
United States $184,024 $210,737 -13% $569,125 $586,443 -3%
Europe and
Canada 37,726 40,731 -7% 126,208 183,973 -31%
South America — 41,793 NM — 142,731 NM
Total $221,750 $293,261 -24% $695,333 $913,147 -24%
Earnings (Loss)
Before Interest
and Taxes from
Continuing Operations (A)
United States $2,059 $21,068 -90% $6,364 $57,569 -89%
Europe and Canada (443) 4,093 -111% 1,461 12,212 -88%
South America — (138,177) NM — (137,842) NM
Total $1,616 $(113,016) 101% $7,825 $(68,061) 111%
NM – Percent change is not meaningful.
(A) Contributions to earnings (loss) before interest and taxes from
continuing operations included the following special items: 1)
fiscal 2000 second quarter United States restructuring charge of
$1.5 million, 2) fiscal 2000 second quarter benefit of $1.2 million
relating to the sale of the Kattus business, and 3) fiscal 1999
third quarter charge of $140.0 million for the divestiture of Swift-
Armour partially offset by a $3.2 million benefit resulting from the
reversal of a restructuring charge that was completed, as well as a
second quarter fiscal 1999 benefit of $3.2 million related to the
sale of the Kattus business.
QUARTERS ENDED NINE MONTHS ENDED
April 30, May 2, April 30, May 2,
2000 1999 2000 1999
United States $– $(1,100) $1,500 $(1,100)
Europe and Canada — (2,115) (1,155) (5,315)
South America — 140,000 — 140,000
Total $– $136,785 $345 $133,585
VLASIC FOODS INTERNATIONAL
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
April 30, August 1,
2000 1999 *
(unaudited) (audited)
Cash and cash equivalents $23,413 $11,316
Restricted cash 9,100 —
Other current assets 195,101 237,925
Plant assets, net 269,709 281,677
Net assets of
discontinued operations — 45,429
Other assets, principally
intangibles, net 87,395 79,582
Total assets $584,718 $655,929
Notes Payable $285,252 $146
Other liabilities 100,912 144,487
Long-term debt 197,252 469,054
Nonpension postretirement benefits 36,020 35,921
Other liabilities 10,824 26,722
Shareowners’ equity (deficit) (45,542) (20,401)
Total liabilities and
shareowners’ equity (deficit) $584,718 $655,929
Total debt $482,504 $469,200
* Prior year amounts have been restated as a result of discontinued
operations.
