<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, 1998
Commission File Number 1-5277
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: (1) filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months, and (2) has been subject to such
filing requirements for the past 90 days.
YES X NO
--- ---
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
53,380,001 shares of Common Stock, $.10 par value on April 30, 1998.
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The financial statements, enclosed as Exhibit 19, are incorporated by
reference in this Form 10-Q. In the opinion of management, the financial
statements reflect all adjustments necessary to a fair statement of the results
for the three months ended March 31, 1998.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Net sales for the first quarter of 1998 were $451.5 million compared to
$475.5 million for the first quarter of 1997, a decrease of 5.0 percent or $24.0
million. Net income was $21.9 million, or $.41 per share, for the first quarter
of 1998 compared to $19.9 million, or $.37 per share, for the same quarter in
1997, an increase of 10.8 percent.
Excluding noncomparable business activity, principally the packaging
machinery operations which were divested in the second quarter of 1997, net
sales declined 0.1 percent while operating income increased 13.0 percent.
Flexible packaging net sales, adjusted for noncomparable business activity,
declined 0.4 percent while operating income increased 25.1 percent. Pressure
sensitive materials net sales, adjusted for noncomparable business activity,
increased 0.7 percent while operating income declined 9.3 percent.
Within flexible packaging, net sales of plastic packaging products rose 3.3
percent, paced by solid growth in the coated and laminated films. Profits in
plastic packaging grew faster than sales in the quarter on improved margins in
coated and laminated films and polyethylene packaging. Sales in paper packaging
declined due to the reorganization of the business, including the shutdown of
two manufacturing facilities. Weather related factors also hurt sales in the
quarter. Paper packaging profitability was impacted by the lower sales volumes
and inefficiencies related to the reorganization.
Net sales in the pressure sensitive materials business were flat compared
to an unusually strong first quarter a year earlier, and were affected by
customer inventory adjustments and softness in selected markets. Negative
currency translation effects also reduced pressure sensitive sales by about 3.0
percent in the quarter. Profitability was reduced by the lower than expected
volumes and an unfavorable sales mix.
The Company has made significant progress in digesting acquisitions made in
1997 together with the large volume of new equipment installed throughout the
Company. During the first quarter of 1998, the Company completed an investment
in a joint venture with Dixie Toga S.A., a major packaging company in Brazil and
recently reached an agreement to acquire Techy International S.A., a Belgian
flexible packaging company. The joint venture investment is recorded on the
Balance Sheet in Other Assets and in Excess of Cost of Investments in
Subsidiaries Over Net Assets Acquired while the Income Statement includes joint
venture income with Other (Income) Costs, Net. These actions are part of a
continuing strategy of offering the Company's packaging capabilities to key
customers in international markets.
- 2 -
<PAGE>
PART I - FINANCIAL INFORMATION
Addressing the Statement of Income line item changes of consequence:
Selling, General, and Administrative Expenses declined $7.8 million or 14.3
percent as a result of the 1997 sale of the Company's machinery operations,
reorganization efforts surrounding paper packaging operations, and
successfully absorbing 1997 business unit acquisitions.
Higher average debt levels resulting from increased capital expenditure
during the first quarter together with a business unit acquisition account
for the 18.6 percent increase in Interest Expense.
The 1997 sale of the Company's machinery operations also accounted for the
$0.5 million decline in Research and Development Expense. Minority
Interest decreases results from lower operating income in the Company's
pressure sensitive materials business segment. The effective tax rate for
the first quarter of 1998 and 1997 was 38.8 percent and 38.2 percent,
respectively.
FINANCIAL CONDITION
A statement of cash flow for the three months ended March 31, 1998, is as
follows:
<TABLE>
<CAPTION>
Millions
--------
<S> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . $ 21.9
Non-cash items:
Depreciation and amortization. . . . . . . . . . . . . . 22.9
Minority interest. . . . . . . . . . . . . . . . . . . . 1.0
Deferred income taxes, non-current portion . . . . . . . 0.9
Net increase in working capital, net of effects
of acquisition . . . . . . . . . . . . . . . . . . . . (13.9)
Net change in deferred charges and credits . . . . . . . (0.6)
Other. . . . . . . . . . . . . . . . . . . . . . . . . . (0.4)
--------
Net cash provided by operating activities . . . . . . . . . . . 31.8
--------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property and equipment. . . . . . . . . . . . . (45.2)
Business acquisition . . . . . . . . . . . . . . . . . . . . (38.9)
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4
--------
Net cash used in investing activities . . . . . . . . . . . . . (83.7)
--------
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in long-term debt . . . . . . . . . . . . . . . . . . 67.7
Cash dividends paid. . . . . . . . . . . . . . . . . . . . . (11.7)
Subsidiary dividends to minority stockholders. . . . . . . . (1.8)
Stock incentive programs and related tax effects . . . . . . 7.4
--------
Net cash provided by financing activities . . . . . . . . . . . 61.6
--------
Effect of exchange rates. . . . . . . . . . . . . . . . . . . . (0.1)
--------
Net increase in cash. . . . . . . . . . . . . . . . . . . . . . $ 9.6
--------
--------
</TABLE>
- 3 -
<PAGE>
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) The following exhibits are filed as part of the report:
3(a) Restated Articles of Incorporation of the Registrant, as
amended. (1)
3(b) By-Laws of the Registrant, as amended. (2)
4(a) Rights Agreement, dated as of August 3, 1989, between the Registrant
and Norwest Bank Minnesota, National Association. (3)
4(b) Form of Indenture dated as of June 15, 1995, between the Registrant
and First Trust National Association, as Trustee. (4)
10(a) Bemis Company, Inc. 1987 Stock Option Plan. * (5)
10(b) Bemis Company, Inc. 1994 Stock Incentive Plan. * (6)
10(c) Bemis Company, Inc. 1984 Stock Award Plan. * (2)
10(d) Bemis Retirement Plan, as amended effective January 1, 1994. * (2)
10(e) Bemis Company, Inc. Supplemental Retirement Plan dated October 20,
1988. * (2)
10(f) Bemis Executive Incentive Plan dated April 1, 1990. * (2)
10(g) Bemis Company, Inc. Long Term Deferred Compensation Plan. * (2)
10(h) Bemis Company, Inc. 1997 Executive Officer Performance Plan. * (1)
10(i) Amended and Restated Credit Agreement among the Registrant, the
Banks Listed therein and Morgan Guaranty Trust Company of New York,
as Agent, originally dated as of August 1, 1986, Amended and
Restated as of August 1, 1991, as amended by Amendment No. 1 dated
as of May 1, 1992, as amended by Amendment No. 2 dated December 1,
1992, as amended by Amendment No. 3 dated January 22, 1993, as
amended by Amendment No. 4 dated March 15, 1994, as amended by
Amendment No. 5 dated June 1, 1994, and as amended by Amendment No.
6 dated February 1, 1995. (2)
19 Reports Furnished to Security Holders.
27 Financial Data Schedule (EDGAR electronic filing only).
- 4 -
<PAGE>
PART II - OTHER INFORMATION
-----------------
* Management contract, compensatory plan or arrangement filed pursuant
to Rule 601(b)(10)(iii)(A) of Regulation S-K under the Securities
Exchange Act of 1934.
(1) Incorporated by reference to the Registrant's Definitive Proxy
Statement filed with the Securities and Exchange Commission on March
18, 1997 (File No. 1-5277).
(2) Incorporated by reference to the Registrant's Annual Report on Form
10-K/A for the year ended December 31, 1994 (File No. 1-5277).
(3) Incorporated by reference to the Registrant's Registration Statement
on Form 8-A dated August 4, 1989 (File No. 0-1387).
(4) Incorporated by reference to the Registrant's Current Report on Form
8-K dated June 30, 1995 (File No. 1-5277).
(5) Incorporated by reference to the Registrant's Registration Statement
on Form S-8 (File No. 33-50560).
(6) Incorporated by reference to the Registrant's Registration Statement
on Form S-8 (File No. 33-80666).
(b) There were no reports on Form 8-K filed during the first quarter ended
March 31, 1998.
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 4, 1998 /s/ Gene C. Wulf
------------------- ---------------------------------------
Gene C. Wulf, Vice President
and Controller
Date May 4, 1998 /s/ Benjamin R. Field, III
------------------- ---------------------------------------
Benjamin R. Field, III, Senior Vice
President, Chief Financial Officer
and Treasurer
- 5 -
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT DESCRIPTION FORM OF FILING
- ------- ----------- --------------
<C> <S> <C>
3(a) Restated Articles of Incorporation of the Registrant, as amended. (1)
3(b) By-Laws of the Registrant, as amended. (2)
4(a) Rights Agreement, dated as of August 3, 1989, between the Registrant and
Norwest Bank Minnesota, National Association. (3)
4(b) Form of Indenture dated as of June 15, 1995, between the Registrant and
First Trust National Association, as Trustee. (4)
10(a) Bemis Company, Inc. 1987 Stock Option Plan. * (5)
10(b) Bemis Company, Inc. 1994 Stock Incentive Plan. * (6)
10(c) Bemis Company, Inc. 1984 Stock Award Plan. * (2)
10(d) Bemis Retirement Plan, as amended effective January 1, 1994. * (2)
10(e) Bemis Company, Inc. Supplemental Retirement Plan dated October 20,
1988. * (2)
10(f) Bemis Executive Incentive Plan dated April 1, 1990. * (2)
10(g) Bemis Company, Inc. Long Term Deferred Compensation Plan. * (2)
10(h) Bemis Company, Inc. 1997 Executive Officer Performance Plan. * (1)
10(i) Amended and Restated Credit Agreement among the Registrant, the Banks
Listed therein and Morgan Guaranty Trust Company of New York as Agent,
originally dated as of August 1, 1986, Amended and Restated as of
August 1, 1991, as amended by Amendment No. 1 dated as of May 1, 1992,
as amended by Amendment No. 2 dated December 1, 1992, as amended by
Amendment No. 3 dated January 22, 1993, as amended by Amendment No. 4
dated March 15, 1994, as amended by Amendment No. 5 dated June 1,
1994, and as amended by Amendment No. 6 dated February 1, 1995. (2)
19 Reports Furnished to Security Holders. Electronic/EDGAR
27 Financial Data Schedule (EDGAR electronic filing only). Electronic/EDGAR
</TABLE>
-----------
* Management contract, compensatory plan or arrangement filed pursuant
to Rule 601(b)(10)(iii)(A) of Regulation S-K under the Securities
Exchange Act of 1934.
(1) Incorporated by reference to the Registrant's Definitive Proxy
Statement filed with the Securities and Exchange Commission on
March 18, 1997 (File No. 1-5277).
(2) Incorporated by reference to the Registrant's Annual Report on Form
10-K/A for the year ended December 31, 1994 (File No. 1-5277).
(3) Incorporated by reference to the Registrant's Registration Statement
on Form 8-A dated August 4, 1989 (File No. 0-1387).
(4) Incorporated by reference to the Registrant's Current Report on Form
8-K dated June 30, 1995 (File No. 1-5277).
(5) Incorporated by reference to the Registrant's Registration Statement
on Form S-8 (File No. 33-50560).
(6) Incorporated by reference to the Registrant's Registration Statement
on Form S-8 (File No. 33-80666).
- 6 -
<PAGE>
EXHIBIT 19 - 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
------------------------
1998 1997
--------- ---------
<S> <C> <C>
Net sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $451,491 $475,473
Costs and expenses:
Cost of products sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360,652 380,058
Selling, general, and administrative expenses . . . . . . . . . . . . . . . . 46,628 54,388
Research and development. . . . . . . . . . . . . . . . . . . . . . . . . . . 2,908 3,434
Interest expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,240 4,418
Other (income) costs, net . . . . . . . . . . . . . . . . . . . . . . . . . . (753) (205)
Minority interest in net income . . . . . . . . . . . . . . . . . . . . . . . 988 1,222
--------- ---------
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,828 32,158
Taxes based on income - cash. . . . . . . . . . . . . . . . . . . . . . . . . 12,950 12,125
Taxes based on income - deferred. . . . . . . . . . . . . . . . . . . . . . . 950 175
--------- ---------
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 21,928 $ 19,858
--------- ---------
--------- ---------
Basic earnings per share of common stock . . . . . . . . . . . . . . . . . . . . $.41 $.37
--------- ---------
--------- ---------
Diluted earnings per share of common stock . . . . . . . . . . . . . . . . . . . $.41 $.37
--------- ---------
--------- ---------
Cash dividends paid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $.22 $.20
--------- ---------
--------- ---------
Average common shares and common
stock equivalents outstanding . . . . . . . . . . . . . . . . . . . . . . . . 53,654 53,939
--------- ---------
--------- ---------
</TABLE>
<PAGE>
EXHIBIT 19 - 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 1998 1997
------ ---- ----
<S> <C> <C>
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 23,404 $ 13,827
Accounts receivable - net. . . . . . . . . . . . . . . . . . . . . . . . . . . . 227,041 233,547
Inventories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219,737 221,576
Prepaid expenses and deferred charges. . . . . . . . . . . . . . . . . . . . . . 46,070 47,443
---------- ----------
Total current assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 516,252 516,393
---------- ----------
Property and equipment, net. . . . . . . . . . . . . . . . . . . . . . . . . . . 707,382 685,227
Excess of cost of investments in
subsidiaries over net assets acquired . . . . . . . . . . . . . . . . . . . . 159,299 150,632
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,556 10,315
---------- ----------
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198,855 160,947
---------- ----------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,422,489 $1,362,567
---------- ----------
---------- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current portion of long-term debt. . . . . . . . . . . . . . . . . . . . . . . . $ 2,215 $ 2,173
Short-term borrowings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,931 2,105
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177,768 195,346
Accrued salaries and wages . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,976 34,892
Accrued income and other taxes . . . . . . . . . . . . . . . . . . . . . . . . . 20,562 16,671
---------- ----------
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . 228,452 251,187
Long-term debt, less current portion . . . . . . . . . . . . . . . . . . . . . . 384,524 316,791
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,953 64,066
Other liabilities and deferred credits . . . . . . . . . . . . . . . . . . . . . 56,441 56,876
---------- ----------
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 734,370 688,920
---------- ----------
Minority interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,610 33,762
STOCKHOLDERS' EQUITY:
Common stock (59,056,047 and 58,643,557 shares). . . . . . . . . . . . . . . 5,905 5,864
Capital in excess of par value . . . . . . . . . . . . . . . . . . . . . . . 181,909 174,562
Retained income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 636,768 626,584
Other comprehensive income (loss). . . . . . . . . . . . . . . . . . . . . . (8,211) (6,263)
Common stock held in treasury (5,676,046 and 5,676,046 shares) . . . . . . . (160,862) (160,862)
---------- ----------
Total stockholders' equity. . . . . . . . . . . . . . . . . . . . . . . . 655,509 639,885
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY . . . . . . . . . . . . . . . . . . . $1,422,489 $1,362,567
---------- ----------
---------- ----------
</TABLE>
<PAGE>
EXHIBIT 19 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
PERIODS PRIOR TO 1998 HAVE BEEN REVISED TO REFLECT PROVISIONS OF SFAS NO. 130
<TABLE>
<CAPTION>
Capital In Other Common Total
Common Excess Of Retained Comprehensive Stock Held Stockholder's
(IN THOUSANDS OF DOLLARS) Stock Par Value Income Income (Loss) In Treasury Equity
- --------------------------------------------------------------------------------------------------------------------------------
Balance at December 31, 1994 $5,572 $101,290 $446,132 ($1,474) ($133,493) $418,027
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net income for 1995 85,210 85,210
Translation adjustment for 1995 5,211 5,211
Pension liability adjustment, net of $2,975 tax benefit 4,853 4,853
-----------
Total comprehensive income 95,274
-----------
Cash dividends paid on common stock, $. 64 per share (33,175) (33,175)
Stock incentive programs and related tax effects 28 3,421 3,449
Common stock transactions related to an
acquisition of a subsidiary company 181 42,408 (4,961) 37,628
Purchase of 330,300 shares of common stock (8,395) (8,395)
-----------------------------------------------------------------------
Balance at December 31, 1995 $5,781 $147,119 $498,167 $8,590 ($146,849) $512,808
-----------------------------------------------------------------------
Net income for 1996 101,081 101,081
Translation adjustment for 1996 (3,917) (3,917)
Pension liability adjustment, net of $948 tax benefit 1,546 1,546
-----------
Total comprehensive income 98,710
-----------
Cash dividends paid on common stock, $.72 per share (37,830) (37,830)
Stock incentive programs and related tax effects 2 310 312
Common stock transactions related to an
acquisition of a subsidiary company 7 2,052 2,059
Purchase of 292,000 shares of common stock (8,962) (8,962)
-----------------------------------------------------------------------
Balance at December 31, 1996 $5,790 $149,481 $561,418 $6,219 ($155,811) $567,097
-----------------------------------------------------------------------
Net income for 1997 107,584 107,584
Translation adjustment for 1997 (11,109) (11,109)
Pension liability adjustment, net of $842 tax benefit (1,373) (1,373)
-----------
Total comprehensive income 95,102
-----------
Cash dividends paid on common stock, $.80 per share (42,418) (42,418)
Stock incentive programs and related tax effects 4 47 51
Common stock transactions related to an
acquisition of a subsidiary company 70 25,034 25,104
Purchase of 139,429 shares of common stock (5,051) (5,051)
-----------------------------------------------------------------------
Balance at December 31, 1997 $5,864 $174,562 $626,584 ($6,263) ($160,862) $639,885
-----------------------------------------------------------------------
Net income for first quarter of 1998 21,928 21,928
Translation adjustment for first quarter of 1998 (1,948) (1,948)
-----------
Total comprehensive income 19,980
-----------
Cash dividends paid on common stock, $.22 per share (11,744) (11,744)
Stock incentive programs and related tax effects 41 7,347 7,388
-----------------------------------------------------------------------
Balance at March 31, 1998 $5,905 $181,909 $636,768 ($8,211) ($160,862) $655,509
-----------------------------------------------------------------------
-----------------------------------------------------------------------
</TABLE>
<PAGE>
EXHIBIT 19 - 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
-----------------------
1998 1997
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 21,928 $ 19,858
NON-CASH ITEMS:
Depreciation and amortization. . . . . . . . . . . . . . . . . . . . . . . . 22,903 20,455
Minority interest in net income. . . . . . . . . . . . . . . . . . . . . . . 988 1,222
Deferred income taxes, non-current portion . . . . . . . . . . . . . . . . . 948 384
Undistributed earnings of affiliated companies . . . . . . . . . . . . . . . (422)
(Gain) Loss on sale of property and equipment. . . . . . . . . . . . . . . . (22) 4
--------- ---------
Cash provided by operations. . . . . . . . . . . . . . . . . . . . . . . . . . . 46,323 41,923
Changes in working capital, net of effects
of acquisitions and dispositions. . . . . . . . . . . . . . . . . . . . . . . (13,914) (37,798)
Net change in deferred charges and credits . . . . . . . . . . . . . . . . . . . (569) (14,200)
--------- ---------
Net cash provided (used) by operating activities . . . . . . . . . . . . . . . . 31,840 (10,075)
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment. . . . . . . . . . . . . . . . . . . . . . . (45,184) (28,158)
Business acquisitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (38,868) (875)
Proceeds from sale of property and equipment . . . . . . . . . . . . . . . . . . 374 179
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 (34)
--------- ---------
Net cash used in investing activities. . . . . . . . . . . . . . . . . . . . . . (83,674) (28,888)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Change in long-term debt excluding debt
assumed in business acquisition. . . . . . . . . . . . . . . . . . . . . . . . 67,733 59,103
Change in short-term debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . (16) 1,869
Cash dividends paid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,744) (10,620)
Subsidiary dividends to minority stockholders. . . . . . . . . . . . . . . . . . (1,835) (1,835)
Stock incentive programs and related tax effects . . . . . . . . . . . . . . . . 7,388 51
--------- ---------
Net cash provided by financing activities. . . . . . . . . . . . . . . . . . . . 61,526 48,568
--------- ---------
Effect of exchange rates on cash . . . . . . . . . . . . . . . . . . . . . . . . (115) (1,731)
--------- ---------
Net increase in cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,577 $ 7,874
--------- ---------
--------- ---------
</TABLE>
<PAGE>
EXHIBIT 19 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS
BEMIS COMPANY, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
TAXES BASED ON INCOME
The Company's 1998 effective tax rate of 39% differs from the federal
statutory rate of 35% primarily due to state and local income taxes.
COMPREHENSIVE INCOME
In the first quarter of 1998, the Company adopted Statement of Financial
Accounting Standards No. 130, "Reporting Comprehensive Income" (SFAS 130), which
establishes standards for reporting and display of comprehensive income and its
components. In accordance with SFAS 130, the Company has displayed the
components of "Other comprehensive income (loss)" and "Comprehensive income,"
net of their related tax effects, in the accompanying Consolidated Statement of
Stockholder's Equity. The net foreign currency translation adjustment and
components thereof have no tax effect as the Company makes no provision for U.S.
income taxes applicable to undistributed earnings of foreign subsidiaries that
are indefinitely reinvested in foreign operations. All prior-period data has
been reclassified to conform with the provisions of SFAS 130.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
MARCH 31, 1998, CONSOLIDATED STATEMENT OF INCOME AND CONSOLIDATED BALANCE
SHEET AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 23,404
<SECURITIES> 0
<RECEIVABLES> 227,041
<ALLOWANCES> 0
<INVENTORY> 219,737
<CURRENT-ASSETS> 516,252
<PP&E> 1,065,613
<DEPRECIATION> (358,231)
<TOTAL-ASSETS> 1,422,489
<CURRENT-LIABILITIES> 228,452
<BONDS> 384,524
0
0
<COMMON> 5,905
<OTHER-SE> 649,604
<TOTAL-LIABILITY-AND-EQUITY> 1,422,489
<SALES> 451,491
<TOTAL-REVENUES> 451,491
<CGS> 360,652
<TOTAL-COSTS> 360,652
<OTHER-EXPENSES> (753)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5,240
<INCOME-PRETAX> 35,828
<INCOME-TAX> 13,900
<INCOME-CONTINUING> 21,928
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 21,928
<EPS-PRIMARY> .41
<EPS-DILUTED> .41
</TABLE>
