WLR Foods, Inc. (Nasdaq: WLRF) yesterday reported results for its fiscal second quarter ended December 30, 2000. For the second quarter of fiscal 2001, the Company reported net earnings of $4.6 million, or $0.28 per diluted share, versus net earnings of $4.8 million, or $0.28 per diluted share, in the second quarter of fiscal 2000. Net sales in the fiscal 2001 second quarter increased 1.9% to $222.9 million versus net sales of $218.8 million in the prior year second quarter.
January 25, 2001
WLR Foods, Inc. (Nasdaq: WLRF) yesterday reported results for its fiscal second quarter ended December 30, 2000.
For the second quarter of fiscal 2001, the Company reported net earnings of $4.6 million, or $0.28 per diluted share, versus net earnings of $4.8 million, or $0.28 per diluted share, in the second quarter of fiscal 2000. Net sales in the fiscal 2001 second quarter increased 1.9% to $222.9 million versus net sales of $218.8 million in the prior year second quarter.
The Company’s fiscal 2001 second quarter profitability was driven primarily by the seasonal performance of its turkey operations around the Thanksgiving and Christmas holidays. The Company’s chicken operations were not profitable during the quarter as a result of the continued depressed pricing within the chicken industry.
Commenting on these results, James L. Keeler, president and chief executive officer of WLR Foods, stated, “We are pleased with our Company’s overall results, especially in light of the continued challenging conditions in the chicken markets. Our managers have continued to focus on reducing costs and capital spending to maintain our Company’s strong financial position during these times of industry uncertainties.”
For the first six months of fiscal 2001, net earnings were $8.5 million, or $0.52 per diluted share, versus net earnings of $7.3 million, or $0.43 per diluted share in the first half of fiscal 2000. Revenues for the fiscal 2001 six-month period totaled $434.8 million, versus $420.8 million for the same time period last year.
As previously announced, 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 approval of WLR Foods’ shareholders. If the merger is approved at the shareholders’ meeting on January 26, 2001, closing of the transaction is anticipated to occur shortly thereafter.
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 has separately solicited proxies by means of a proxy statement that was distributed to its shareholders on December 11, 2000.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(in thousands, except per share data)
Net sales $ 222,947 $ 218,803 $ 434,829 $ 420,810
Cost of sales 189,674 184,181 368,939 356,886
———- ———- ———- ———-
Gross profit 33,273 34,622 65,890 63,924
Selling, general
and administrative
expenses 25,040 26,388 50,258 50,744
———- ———- ———- ———-
Operating income 8,233 8,234 15,632 13,180
Interest expense 1,247 1,182 2,753 2,415
Other income, net 1 (633) (25) (1,004)
———- ———- ———- ———-
Earnings before
income taxes 6,985 7,685 12,904 11,769
Income tax expense 2,375 2,901 4,387 4,443
———- ———- ———- ———-
Net earnings 4,610 4,784 8,517 7,326
========== ========== ========== ==========
Diluted earnings
per common share $ 0.28 $ 0.28 $ 0.52 $ 0.43
Diluted weighted
average common
shares 16,649 16,888 16,467 16,871
Capital
expenditures $ 2,431 $ 2,780 $ 4,669 $ 5,034
Depreciation expense 4,288 4,435 8,669 9,050
CONSOLIDATED BALANCE SHEETS
(in thousands)
12/30/2000 07/01/2000
———- ———-
(unaudited)
Assets
Current assets
Cash and cash equivalents $ 179 $ 85
Accounts receivable, net 62,112 59,541
Inventories 97,471 110,980
Other current assets 2,956 3,032
———- ———-
Total current assets 162,718 173,638
Property, plant and equipment, net 98,022 102,070
Other assets 5,250 7,807
———- ———-
Total Assets $ 265,990 $ 283,515
========== ==========
Liabilities and Shareholders’ Equity
Current liabilities
Current maturities of long-term debt $ 36,172 $ 6,052
Trade accounts payable 20,269 38,641
Accrued payroll and related benefits 25,140 15,148
Other current liabilities 25,106 21,384
———- ———-
Total current liabilities 106,687 81,225
Long-term debt, excluding current maturities 453 51,036
Other liabilities and deferred credits 7,525 7,250
Shareholders’ equity 151,325 144,004
———- ———-
Total Liabilities and Shareholders’ Equity $ 265,990 $ 283,515
========== ==========
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.
Company Profile – free
sample
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
