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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A
QUARTERLY REPORT UNDER SECTION 13 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Six Months Ended June 30, 1999
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.
52,310,115 shares of Common Stock, $.10 par value on August 9, 1999
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Item 1 of the Company's quarterly report on Form 10-Q for the Six
Months Ended June 30, 1999, is hereby amended and restated to read as follows:
ITEM 1. FINANCIAL STATEMENTS
The financial statements, enclosed as Exhibit 19, are incorporated by
reference in this Form 10-Q/A. This amended quarterly Form 10-Q/A is required to
correct errors made during the process of converting that Exhibit into
electronic format. Specifically, cost of products sold and interest expense
amounts for the comparative 1998 six month period were converted incorrectly.
The correct amount for Cost of Products Sold is $732,279 for the six-month
period ending June 30, 1998. In the original filing a digit was dropped, so the
amount appeared as $32,279.
The correct amount for Interest Expense is $10,867 for the six-month period
ending June 30, 1998. In the original filing a transposition error occured, so
that the amount appeared as $10,687.
All totals, including Net Income, were correctly reported.
In addition to the above, the Company's June 30, 1999, Form 10-Q is also amended
to correct an error in the date of the signatures appearing on page 9, which
were presented as August 9, 1998. The correct date is August 9, 1999.
Actual reports furnished to security holders were correct in all respects and
did not contain the errors listed above.
In the opinion of management, the financial statements reflect all adjustments
necessary to a fair statement of the results for the six months ended June 30,
1999.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) The following documents are filed as part of this amended report:
19 Reports Furnished to Security Holders.
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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 August 23, 1999 /s/ Gene C. Wulf
-------------------------------- ----------------------------------
Gene C. Wulf, Vice President
and Controller
Date August 23, 1999 /s/ Benjamin R. Field, III
-------------------------------- -----------------------------------
Benjamin R. Field, III, Senior Vice
President, Chief Financial Officer
and Treasurer
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT DESCRIPTION FORM OF FILING
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<S> <C> <C>
19 Reports Furnished to Security Holders. Filed Electronically
</TABLE>
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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 Six Months Ended
June 30 June 30
------------------------------ -----------------------------
1999 1998 1999 1998
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net sales ................................... $ 481,259 $ 470,595 $ 931,866 $ 922,086
Costs and expenses:
Cost of products sold .................... 372,956 369,449 727,105 732,279
Selling, general and
administrative expenses ................ 48,049 46,370 98,898 92,998
Research and development ................. 3,653 3,113 6,156 6,021
Interest expense ......................... 5,198 5,627 10,342 10,867
Other costs (income) ..................... (864) (189) 5,307 (942)
Minority interest in net income .......... 976 1,086 1,929 2,014
--------- -------- -------- --------
Income before income taxes ................ 51,291 45,139 82,129 78,849
Provision for income taxes ............. 19,700 17,500 31,800 30,500
--------- -------- -------- --------
Net income .................................. $ 31,591 $ 27,639 $ 50,329 $ 48,349
--------- -------- -------- --------
--------- -------- -------- --------
Basic earnings per share of common stock .... $ .60 $ .52 $ .96 $ .91
--------- -------- -------- --------
--------- -------- -------- --------
Diluted earnings per share of common stock .. $ .60 $ .51 $ .96 $ .90
--------- -------- -------- --------
--------- -------- -------- --------
Cash dividends paid per share of common stock $ .23 $ .22 $ .46 $ .44
--------- -------- -------- --------
--------- -------- -------- --------
Average common shares and common
stock equivalents outstanding ............ 52,616 53,710 52,592 53,684
--------- -------- -------- --------
--------- -------- -------- --------
</TABLE>
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EXHIBIT 19 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(IN THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
Jun 30 Dec 31
ASSETS 1999 1998
------ ----------- -----------
<S> <C> <C>
Cash ......................................................................... $ 19,494 $ 23,738
Accounts receivable - net .................................................... 258,905 246,676
Inventories .................................................................. 267,329 241,585
Prepaid expenses and deferred charges ........................................ 34,846 34,912
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Total current assets.................................................. 580,574 546,911
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Property and equipment, net .................................................. 744,282 740,101
Excess of cost of investments in
subsidiaries over net assets acquired ..................................... 154,740 160,819
Other assets ................................................................. 19,636 34,195
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Total .............................................................. 174,376 195,014
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TOTAL ASSETS.................................................................. $ 1,499,232 $ 1,482,026
----------- -----------
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LIABILITIES AND STOCKHOLDERS' EQUITY
-------------------------------------
Current portion of long-term debt ............................................ $ 2,749 $ 2,946
Short-term borrowings ........................................................ 3,449 3,553
Accounts payable ............................................................. 195,554 193,088
Accrued salaries and wages ................................................... 28,719 31,629
Accrued income and other taxes ............................................... 22,873 14,397
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Total current liabilities........................................... 253,344 245,613
Long-term debt, less current portion ......................................... 369,166 371,363
Deferred taxes ............................................................... 85,389 84,679
Other liabilities and deferred credits ....................................... 59,389 54,655
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Total liabilities................................................... 767,288 756,310
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Minority interest ............................................................ 37,582 37,862
STOCKHOLDERS' EQUITY:
Common stock (59,098,203 and 59,056,047 shares) .......................... 5,910 5,906
Capital in excess of par value ........................................... 181,957 181,908
Retained income .......................................................... 734,628 708,362
Other comprehensive income (loss) ........................................ (25,884) (6,116)
Common stock held in treasury (6,788,088 and 6,786,889 shares) ........... (202,249) (202,206)
----------- -----------
Total stockholders' equity.................................................. 694,362 687,854
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ................................... $ 1,499,232 $ 1,482,026
----------- -----------
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</TABLE>
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EXHIBIT 19 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(IN THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
Six Months Ended
June 30
-----------------------------
1999 1998
--------- ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income ....................................... $ 50,329 $ 48,349
NON-CASH ITEMS:
Depreciation and amortization ................ 50,561 45,725
Minority interest in net income .............. 1,929 2,014
Deferred income taxes, non-current portion ... 1,097 (728)
Undistributed earnings of affiliated companies 5,729 (509)
(Gain) loss on sale of property and equipment 125 (17)
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Cash provided by operations ...................... 109,770 94,834
Change in working capital, net of effects of
acquisitions and dispositions ................. (32,400) (882)
Net change in deferred charges and credits ....... 4,732 (2,446)
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Net cash provided by operating activities ........ 82,102 91,506
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CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment .............. (58,349) (74,828)
Business acquisitions ............................ (1,424) (46,319)
Proceeds from sale of property and equipment ..... 974 1,419
Other ............................................ 16 2
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Net cash used in investing activities ............ (58,783) (119,726)
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CASH FLOWS FROM FINANCING ACTIVITIES
Change in long-term debt excluding debt assumed in
business acquisitions ......................... (2,070) 47,454
Change in short-term debt ........................ 169 (329)
Cash dividends paid .............................. (24,063) 23,486)
Subsidiary dividends to minority stockholders .... (1,835)
Common stock purchased for the treasury .......... (43)
Stock incentive programs and related tax effects . 53 7,388
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Net cash (used) provided by financing activities . (25,954) 29,192
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Effect of exchange rates on cash ................. (1,609) (38)
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Net (decrease) increase in cash .................. ($ 4,244) $ 934
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</TABLE>
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EXHIBIT 19 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
<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
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1995, as previously reported $5,781 $147,119 $498,167 $8,590 ($146,849) $512,808
Cumulative effect on prior years of change in accounting
for inventory from the LIFO to FIFO method 31,553 31,553
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Balance at January 1, 1996, as restated $5,781 $147,119 $529,720 $8,590 ($146,849) $544,361
----------------------------------------------------------------------
Net income for 1996, as previously reported 101,081 101,081
1996 net income adjustment for LIFO to FIFO change 1,956 1,956
Translation adjustment for 1996 (3,917) (3,917)
Pension liability adjustment, net of $948 tax benefit 1,546 1,546
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Total comprehensive income 100,666
--------
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)
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Balance at December 31, 1996, as restated $5,790 $149,481 $594,927 $6,219 ($155,811) $600,606
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Net income for 1997, as previously reported 107,584 107,584
1997 net income adjustment for LIFO to FIFO change (6,160) (6,160)
Translation adjustment for 1997 (11,109) (11,109)
Pension liability adjustment, net of $842 tax benefit (1,373) (1,373)
--------
Total comprehensive income 88,942
--------
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)
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Balance at December 31, 1997, as restated $5,864 $174,562 $653,933 ($6,263) ($160,862) $667,234
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Net income for 1998, as previously reported 111,432 111,432
1998 net income adjustment for LIFO to FIFO change (10,302) (10,302)
Translation adjustment for 1998 (72) (72)
Pension liability adjustment, net of $102 tax benefit 219 219
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Total comprehensive income 101,277
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Cash dividends paid on common stock, $.88 per share (46,701) (46,701)
Stock incentive programs and related tax effects 42 7,346 7,388
Purchase of 1,110,843 shares of common stock (41,344) (41,344)
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Balance at December 31, 1998, as restated $5,906 $181,908 $708,362 ($6,116) ($202,206) $687,854
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Net income for first six months of 1999 50,329 50,329
Translation adjustment for first six months of 1999 (19,768) (19,768)
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Total comprehensive income 30,561
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Cash dividends paid on common stock, $.46 per share (24,063) (24,063)
Stock incentive programs and related tax effects 4 49 53
Purchase of 1,199 shares of common stock (43) (43)
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Balance at June 30, 1999 $5,910 $181,957 $734,628 ($25,884) ($202,249) $694,362
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</TABLE>
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EXHIBIT 19 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS
BEMIS COMPANY, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. INVENTORY ACCOUNTING CHANGE
Inventories are valued at the lower of cost, using the first-in,
first-out (FIFO) method, or market. During the second quarter of 1999, the
Company changed its method of determining the cost of inventories from the
last-in, first-out (LIFO) method to the FIFO valuation method. Management
believes the change from LIFO to FIFO inventory valuation method benefits the
Company by providing the best matching of the applicable raw material cost of a
unit of product to the product's selling price and, therefore, presents a
clearer picture of operating results. The accounting change has been applied to
prior years by retroactively restating the financial statements, which are
available by reference to the Company's mid-August 1999, Form 8-K filing with
the United States Securities and Exchange Commission. All financial statements
and data included in this June 30, 1999, Form 10-Q filing, reflect the impact of
this accounting principle change.
NOTE 2. BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all the information and
footnotes necessary for a comprehensive presentation of financial position and
results of operation. It is management's opinion, however, that all material
adjustments (consisting of normal recurring accruals) have been made which are
necessary for a fair financial statement presentation. The results for the
interim period are not necessarily indicative of the results to be expected for
the year.
For further information, refer to the consolidated financial statements
and footnotes included in the Company's annual report on Form 10-K for the year
ended December 31, 1998.
NOTE 3. TAXES BASED ON INCOME
The Company's 1999 effective tax rate of 39% differs from the federal
statutory rate of 35% primarily due to state and local income taxes.
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NOTE 4. SEGMENTS OF BUSINESS
The Registrant's business activities are organized around its two
principal business segments, Flexible Packaging and Pressure Sensitive
Materials. Both internal and external reporting conform to this organizational
structure with no significant differences in accounting policies applied. The
Registrant evaluates the performance of its segments and allocates resources to
them based on operating profit which is defined as profit before general
corporate expense, interest expense, income taxes, and minority interest. A
summary of the Registrant's business activities reported by its two business
segments follows:
<TABLE>
<CAPTION>
FOR SIX MONTHS ENDED
------------------------------------
JUNE 30,
------------------------------------
BUSINESS SEGMENTS (IN MILLIONS OF DOLLARS) 1999 1998
- -------------------------------------------------------------------------------------------
<S> <C> <C>
Net Sales to Unaffiliated Customers:
Flexible Packaging $ 693.8 $ 681.0
Pressure Sensitive Materials 238.2 241.1
Intersegment Sales:
Flexible Packaging (0.1) (0.1)
Pressure Sensitive Materials (0.0) (0.1)
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Total $ 931.9 $ 922.1
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Operating Profit and Pretax Profit:
Flexible Packaging $ 81.6 $ 74.0
Pressure Sensitive Materials 22.4 26.6
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Total operating profit 104.0 100.6
General corporate expenses (9.7) (8.9)
Interest expense (10.3) (10.9)
Minority interest in net income (1.9) (2.0)
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Income before income taxes $ 82.1 $ 78.8
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Identifiable Assets:
Flexible Packaging $ 1,159.2 $ 1,128.0
Pressure Sensitive Materials 295.4 291.4
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Total identifiable assets 1,454.6 1,419.4
Corporate assets 44.6 50.8
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Total $ 1,499.2 $ 1,470.2
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</TABLE>
