<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Three Months Ended March 31, 1994
Commission File Number 0-1387
BEMIS COMPANY, INC.
(Exact name of registrant as specified in its charter)
Missouri 43-0178130
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization Identification No.)
222 South 9th Street, Suite 2300
Minneapolis, Minnesota 55402-4099
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code (612) 376-3000
Indicate by check mark whether the registrant has filed all reports
required to be filed by Section 13 of the Securities Exchange Act of 1934
during the preceding 12 months and has been subject to such filing
requirements for the past 90 days.
YES X NO
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Aggregate market value of the voting stock held by non-affiliates of the
registrant
51,211,326 shares at $23.875 per share
as of May 5, 1994 - $1,222,670,000
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PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The financial statements (enclosed as Exhibit 21) are incorporated by
reference in this Form 10-Q.
In the option of management, the financial statements reflect all
adjustments necessary to a fair statement of the results for the three months
ended March 31, 1994.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Net Sales for the first quarter of 1994 were $323.3 million compared to
$292.6 million for the first quarter of 1993, an increase of 10.5% or $30.7
million. Net Income was $13.6 million for the first quarter of 1994 and $10.7
million for the same quarter in 1993, an increase of 26.4%.
These results continue the trend of stronger operating performance that
began in the fourth quarter last year. The improvement came primarily from
increased demand for our products in all major segments of the business. Recent
acquisitions and our restructuring program also contributed to better results.
In the first quarter of 1994, The Company completed the previously
announced acquisitions of Fitchburg Coated Products and Hargro Health Care
Packaging. Excluding noncomparable operating results of business acquisitions
and dispositions from both 1994 and 1993, Sales showed an increase of $15.1
million or 5.4% and operating profit showed an increase of $5.6 million or
26.2%.
Net Sales and operating income improved for both the Flexible Packaging and
the Specialty Coated and Graphics Products Lines of Business because of
increased product demand and business acquisitions or dispositions made in the
first quarter of 1994 or 1993. Excluding this non-comparable operating results
from both 1994 and 1993 shows that Net Sales and operating profit increased 6.7%
and 23.9%, respectively, for the Flexible Packaging segment and 1.8% and 32.8% ,
respectively, for the Specialty Coated and Graphics Products segment.
Addressing the Statement of Income line item changes of consequence:
Cost of Products sold increased 9.7% on total sales increases of 10.5%.
Improvements in manufacturing efficiencies which resulted in lower
manufacturing cost, expressed as a percent of sales, more than offset
increased material cost of sales.
The Interest Expense decrease of 13.1% or $.2 million relates entirely to
lower effective interest rates in the current quarter.
Other Income decreased $.8 million largely due to non-recurring gains on
business sales which occurred in the first quarter of 1993.
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PART I - FINANCIAL INFORMATION
Pretax Income increased $5.0 million or 29.7% while Income Tax expense
increased $2.2 million or 35.5%. The effective tax rate for the first
quarter of 1994 and 1993 was 38% and 37%, respectively.
The $40.9 million increase in long-term debt together with the general
increase in nearly all balance sheet line items is attributable to the
increased business activity resulting from business acquisitions and an
increase in sales of our products in all major business segments.
FINANCIAL CONDITION
A statement of cash flow for the three months ended March 31, 1994 is as
follows:
<TABLE>
<CAPTION>
MILLIONS
<S> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $13.6
Non-cash items:
Depreciation and amortization 13.3
Minority interest .6
Deferred income taxes, non-current portion .5
Net decrease in working capital items,
net of affects of business acquisitions 5.1
Net change in deferred charges and credits (4.1)
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Net cash provided by operating activities 29.0
Cash flows from investing activities:
Additions to property and equipment (27.1)
Business acquisitions (33.2)
Other .2
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Net cash used in investing activities (60.1)
Cash flows from financing activities:
Increase in long-term debt 40.6
Decrease in short-term (.2)
Cash dividends paid (6.9)
Other .1
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Net cash used by financing activities 33.6
Effect of exchange rates .4
Net increase in cash $ 2.9
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</TABLE>
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PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
There have been no significant changes during the three months ended
March 31, 1994.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
Exhibit 21 - Financial Statements Furnished to Security Holders
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
BEMIS COMPANY, INC.
Date May 6, 1994 S\ LeRoy F. Bazany
---------------------------------
LeRoy F. Bazany, Vice President
and Controller
Date May 6, 1994 S\ Benjamin R. Field, III
---------------------------------
Benjamin R. Field, III, Senior Vice
President, Chief Financial Officer
and Treasurer
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<PAGE>
EXHIBIT 21 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(in thousands except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended
March 31
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1994 1993
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<S> <C> <C>
Net sales. . . . . . . . . . . . . . . . . . . . . . . $ 323,277 $ 292,628
Costs and expenses:
Cost of products sold . . . . . . . . . . . . . . . 250,978 228,844
Selling, general and administrative expenses. . . . 44,494 41,758
Research and development. . . . . . . . . . . . . . 3,798 3,542
Interest expense. . . . . . . . . . . . . . . . . . 1,616 1,859
Other income. . . . . . . . . . . . . . . . . . . . (199) (990)
Minority interest in net income . . . . . . . . . . 602 667
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Income before income taxes . . . . . . . . . . . . . . 21,988 16,948
Taxes based on income - cash. . . . . . . . . . . . 7,962 9,185
Taxes based on income - deferred. . . . . . . . . . 438 (2,985)
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Net income . . . . . . . . . . . . . . . . . . . . . . $ 13,588 $ 10,748
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Earnings per share of common stock . . . . . . . . . . $.26 $.21
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Cash dividends paid. . . . . . . . . . . . . . . . . . $.135 $.125
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Average common shares and common
stock equivalents outstanding . . . . . . . . . . . 51,890 51,773
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</TABLE>
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EXHIBIT 21 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in thousands of dollars)
<TABLE>
<CAPTION>
Mar 31 Dec 31
ASSETS 1994 1993
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<S> <C> <C>
Cash . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,811 $ 8,911
Accounts receivable - net. . . . . . . . . . . . . . . 177,067 161,695
Inventories. . . . . . . . . . . . . . . . . . . . . . 145,106 127,123
Prepaid expenses and deferred charges. . . . . . . . . 42,359 39,280
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Total current assets. . . . . . . . . . . . . . . 376,343 337,009
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Property and equipment, net. . . . . . . . . . . . . . 444,288 414,888
Excess of cost of investments in
subsidiaries over net assets acquired . . . . . . . 29,801 24,814
Other assets . . . . . . . . . . . . . . . . . . . . . 13,338 13,056
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Total. . . . . . . . . . . . . . . . . . . . . . . 43,139 37,870
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TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . $863,770 $789,767
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LIABILITIES AND STOCKHOLDERS' EQUITY
Short-term borrowings. . . . . . . . . . . . . . . . . $ 789 $
Current portion of long-term debt. . . . . . . . . . . 3,166 4,035
Accounts payable . . . . . . . . . . . . . . . . . . . 158,854 138,243
Accrued salaries and wages . . . . . . . . . . . . . . 25,694 22,015
Accrued income and other taxes . . . . . . . . . . . . 23,914 19,896
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Total current liabilities. . . . . . . . . . . . . 212,417 184,189
Long-term debt, less current portion . . . . . . . . . 164,104 123,215
Deferred taxes . . . . . . . . . . . . . . . . . . . . 36,241 35,813
Other liabilities and deferred credits . . . . . . . . 50,745 54,602
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Total liabilities . . . . . . . . . . . . . . . . . 463,507 397,819
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Minority interest. . . . . . . . . . . . . . . . . . . 22,208 21,409
Stockholders' equity:
Common stock (55,723,731 and 55,713,731 shares) . . . 5,572 5,571
Capital in excess of par value . . . . . . . . . . . 101,235 101,153
Retained income. . . . . . . . . . . . . . . . . . . 404,597 397,922
Cumulative translation adjustment. . . . . . . . . . 144 (614)
Common stock held in treasury (4,512,405 shares) . . (133,493) (133,493)
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Total stockholders' equity . . . . . . . . . . . . 378,055 370,539
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY . . . . . . $863,770 $789,767
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</TABLE>
<PAGE>
EXHIBIT 21 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(IN THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
Three Months Ended
March 31
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1994 1993
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<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income . . . . . . . . . . . . . . . . . . . . . . . . . $ 13,588 $ 10,748
Non-cash items:
Depreciation and amortization. . . . . . . . . . . . . . . 13,348 12,835
Minority interest. . . . . . . . . . . . . . . . . . . . . 602 667
Deferred income taxes, non-current portion . . . . . . . . 542 (2,277)
Loss (gain) on sale of property and equipment. . . . . . . 51 (470)
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Cash provided by operations. . . . . . . . . . . . . . . . . 28,131 21,503
Net change in receivables, inventories,
prepaid expenses and payables . . . . . . . . . . . . . . 5,103 2,655
Net changes in deferred charges and credits. . . . . . . . . (4,103) (413)
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . (160) (251)
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Net cash provided by operating activities. . . . . . . . . . 28,971 23,494
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CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment. . . . . . . . . . . . . (27,110) (16,795)
Business acquisitions, net of divestitures . . . . . . . . . (33,248) (7,684)
Proceeds from sale of property and equipment . . . . . . . . 189 56
Change in long-term receivables. . . . . . . . . . . . . . . 88 83
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Net cash used in investing activities. . . . . . . . . . . . (60,081) (24,340)
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CASH FLOWS FROM FINANCING ACTIVITIES
Increase in long-term debt . . . . . . . . . . . . . . . . . 40,614 17,481
Change in short-term debt. . . . . . . . . . . . . . . . . . (202) 492
Cash dividends paid. . . . . . . . . . . . . . . . . . . . . (6,913) (6,394)
Subsidiary cash dividends to minority stockholders . . . . . (1,703)
Stock incentive programs . . . . . . . . . . . . . . . . . . 83
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Net cash provided by financing activities. . . . . . . . . . 33,582 9,876
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Effect of exchange rates on cash . . . . . . . . . . . . . . 428 364
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Net increase in cash . . . . . . . . . . . . . . . . . . . . $ 2,900 $ 9,394
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</TABLE>
<PAGE>
EXHIBIT 21 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS
BEMIS COMPANY, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
TAXES BASED ON INCOME
The Company's 1994 effective tax rate of 38% differs from the federal
statutory rate of 35% primarily due to state and local income taxes.
