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Previous: BEMIS CO INC, 10-Q, 2000-05-11 |
Next: BIOSPHERICS INC, 424B3, 2000-05-11 |
EXHIBIT 19—FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(in thousands except per share amounts)
| |
Three Months Ended March 31 |
|||||
|---|---|---|---|---|---|---|
| |
2000 |
1999 |
||||
| Net sales | $ | 500,748 | $ | 450,607 | ||
| Costs and expenses: | ||||||
| Cost of products sold | 393,195 | 354,149 | ||||
| Selling, general, and administrative expenses | 50,854 | 50,849 | ||||
| Research and development | 2,576 | 2,503 | ||||
| Interest expense | 5,723 | 5,144 | ||||
| Other costs (income), net | 611 | 6,171 | ||||
| Minority interest in net income | 46 | 953 | ||||
| Income before income taxes | 47,743 | 30,838 | ||||
| Provision for income taxes | 18,100 | 12,100 | ||||
| Net income | $ | 29,643 | $ | 18,738 | ||
| Basic earnings per share of common stock | $ | .55 | $ | .36 | ||
| Diluted earnings per share of common stock | $ | .55 | $ | .36 | ||
| Cash dividends paid | $ | .24 | $ | .23 | ||
| Weighted-average common stock outstanding | 53,475 | 52,303 | ||||
| Weighted-average common shares and common stock equivalents outstanding | 53,687 | 52,568 | ||||
See accompanying notes to consolidated financial statements.
1
EXHIBIT 19—FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in thousands of dollars)
| |
Mar 31 2000 |
Dec 31 1999 |
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|---|---|---|---|---|---|---|---|
| ASSETS | |||||||
| Cash | $ | 20,512 | $ | 18,187 | |||
| Accounts receivable—net | 260,660 | 257,260 | |||||
| Inventories | 288,048 | 274,597 | |||||
| Prepaid expenses and deferred charges | 35,491 | 33,537 | |||||
| Total current assets | 604,711 | 583,581 | |||||
| Property and equipment, net | 776,692 | 776,241 | |||||
| Excess of cost of investments in subsidiaries over net assets acquired | 169,047 | 150,496 | |||||
| Other assets | 22,354 | 21,825 | |||||
| Total | 191,401 | 172,321 | |||||
| TOTAL ASSETS | $ | 1,572,804 | $ | 1,532,143 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current portion of long-term debt | $ | 1,032 | $ | 1,049 | |||
| Short-term borrowings | 4,392 | 5,741 | |||||
| Accounts payable | 201,423 | 189,749 | |||||
| Accrued salaries and wages | 31,186 | 39,861 | |||||
| Accrued income and other taxes | 32,145 | 16,868 | |||||
| Total current liabilities | 270,178 | 253,268 | |||||
| Long-term debt, less current portion | 395,225 | 372,267 | |||||
| Deferred taxes | 90,074 | 89,635 | |||||
| Other liabilities and deferred credits | 45,779 | 51,580 | |||||
| Total liabilities | 801,256 | 766,750 | |||||
| Minority interest | 1,164 | 39,498 | |||||
| Stockholders' equity: | |||||||
| Common stock (60,835,132 and 59,098,203 shares) | 6,084 | 5,910 | |||||
| Capital in excess of par value | 236,833 | 181,957 | |||||
| Retained income | 791,784 | 775,011 | |||||
| Other comprehensive income (loss) | (32,913 | ) | (30,644 | ) | |||
| Common stock held in treasury (7,735,188 and 6,909,488 shares) | (231,404 | ) | (206,339 | ) | |||
| Total stockholders' equity | 770,384 | 725,895 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,572,804 | $ | 1,532,143 | |||
See accompanying notes to consolidated financial statements.
2
EXHIBIT 19—FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
| |
Common Stock |
Capital In Excess Of Par Value |
Retained Income |
Other Comprehensive Income (Loss) |
Common Stock Held In Treasury |
Total Stockholder's Equity |
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| |
(in thousands of dollars except per share amounts) |
||||||||||||||||||
| Balance at December 31, 1997 | $ | 5,864 | $ | 174,562 | $ | 653,933 | $ | (6,263 | ) | $ | (160,862 | ) | $ | 667,234 | |||||
| Net income for 1998 | 101,130 | 101,130 | |||||||||||||||||
| Translation adjustment for 1998 | (72 | ) | (72 | ) | |||||||||||||||
| Pension liability adjustment, net of $102 tax benefit | 219 | 219 | |||||||||||||||||
| Total comprehensive income | 101,277 | ||||||||||||||||||
| 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 | ) | |||||||||||||||
| Balance at December 31, 1998 | $ | 5,906 | $ | 181,908 | $ | 708,362 | $ | (6,116 | ) | $ | (202,206 | ) | $ | 687,854 | |||||
| Net income for 1999 | 114,775 | 114,775 | |||||||||||||||||
| Translation adjustment for 1999 | (24,353 | ) | (24,353 | ) | |||||||||||||||
| Pension liability adjustment, net of $536 tax benefit | (175 | ) | (175 | ) | |||||||||||||||
| Total comprehensive income | 90,247 | ||||||||||||||||||
| Cash dividends paid on common stock, $.92 per share | (48,126 | ) | (48,126 | ) | |||||||||||||||
| Stock incentive programs and related tax effects | 4 | 49 | 53 | ||||||||||||||||
| Purchase of 122,599 shares of common stock | (4,133 | ) | (4,133 | ) | |||||||||||||||
| Balance at December 31, 1999 | $ | 5,910 | $ | 181,957 | $ | 775,011 | $ | (30,644 | ) | $ | (206,339 | ) | $ | 725,895 | |||||
| Net income for first three months of 2000 | 29,643 | 29,643 | |||||||||||||||||
| Translation adjustment for the first three months of 2000 | (2,269 | ) | (2,269 | ) | |||||||||||||||
| Total comprehensive income | 27,374 | ||||||||||||||||||
| Cash dividends paid on common stock, $.24 per share | (12,870 | ) | (12,870 | ) | |||||||||||||||
| Stock incentive programs and related tax effects | 1 | 293 | 294 | ||||||||||||||||
| Common stock transactions related to acquisition of minority interest in a subsidiary company | 173 | 54,583 | 54,756 | ||||||||||||||||
| Purchase of 825,700 shares of common stock | (25,065 | ) | (25,065 | ) | |||||||||||||||
| Balance at March 31, 2000 | $ | 6,084 | $ | 236,833 | $ | 791,784 | $ | (32,913 | ) | $ | (231,404 | ) | $ | 770,384 | |||||
See accompanying notes to consolidated financial statements.
3
EXHIBIT 19—FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands of dollars)
| |
Three Months Ended March 31 |
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|---|---|---|---|---|---|---|---|
| |
2000 |
1999 |
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| Cash flows from operating activities | |||||||
| Net income | $ | 29,643 | $ | 18,738 | |||
| Non-cash items: | |||||||
| Depreciation and amortization | 26,402 | 25,613 | |||||
| Minority interest in net income | 46 | 953 | |||||
| Deferred income taxes, non-current portion | 655 | 904 | |||||
| Losses of unconsolidated affiliated companies | 623 | 6,314 | |||||
| Gain on sale of property and equipment | (11 | ) | (13 | ) | |||
| Cash provided by operations | 57,358 | 52,509 | |||||
| Changes in working capital, net of effects of acquisitions and dispositions | (1,616 | ) | (18,683 | ) | |||
| Net change in deferred charges and credits | (5,854 | ) | 1,998 | ||||
| Net cash provided by operating activities | 49,888 | 35,824 | |||||
| Cash flows from investing activities | |||||||
| Additions to property and equipment | (27,814 | ) | (29,833 | ) | |||
| Business acquisitions | (3,355 | ) | (1,424 | ) | |||
| Proceeds from sale of property and equipment | 195 | 139 | |||||
| Other | 1 | (3 | ) | ||||
| Net cash used in investing activities | (30,973 | ) | (31,121 | ) | |||
| Cash flows from financing activities | |||||||
| Change in long-term debt excluding debt assumed in business acquisition | 22,946 | 11,009 | |||||
| Change in short-term debt | (1,140 | ) | (608 | ) | |||
| Cash dividends paid | (12,870 | ) | (12,032 | ) | |||
| Common stock purchased for the treasury | (25,065 | ) | |||||
| Stock incentive programs and related tax effects | 294 | 53 | |||||
| Net cash provided by financing activities | (15,835 | ) | (1,578 | ) | |||
| Effect of exchange rates on cash | (755 | ) | (1,005 | ) | |||
| Net increase in cash | $ | 2,325 | $ | 2,120 | |||
See accompanying notes to consolidated financial statements.
4
EXHIBIT 19—FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS
BEMIS COMPANY, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1—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, 1999.
Note 2—Inventories
The Company's inventories are valued at the lower of cost, determined by the first-in, first-out (FIFO) method, or market. Inventories are summarized as follows:
| |
Mar 31 2000 |
Dec 31 1999 |
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|---|---|---|---|---|---|---|
| |
(in thousands of dollars) |
|||||
| Raw materials and supplies | $ | 102,027 | $ | 93,539 | ||
| Work in process and finished goods | 186,021 | 181,058 | ||||
| Total inventories | $ | 288,048 | $ | 274,597 | ||
Note 3—Earnings Per Share Computations
| |
Three Months Ended March 31, |
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|---|---|---|---|---|---|---|
| |
2000 |
1999 |
||||
| Income available to common stockholders (numerator) | $ | 29,643,000 | $ | 18,738,000 | ||
| Weighted-average common shares outstanding (denominator) | 53,474,831 | 52,302,883 | ||||
| Basic earnings per share of common stock | $0.55 | $0.36 | ||||
| Dilutive effects of stock option and stock awards, net of windfall tax benefits | 211,692 | 265,326 | ||||
| Weighted-average common shares and common stock equivalents outstanding (denominator) | 53,686,523 | 52,568,209 | ||||
| Diluted earnings per share of common stock | $0.55 | $0.36 | ||||
Note 4—Taxes Based On Income
The Company's 2000 effective tax rate of 38% differs from the federal statutory rate of 35% primarily due to state and local income taxes.
5
Note 5—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:
| |
For the Quarter Ended March 31, |
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|---|---|---|---|---|---|---|---|
| Business Segments |
|||||||
| 2000 |
1999 |
||||||
| |
(in millions of dollars) |
||||||
| Net Sales to Unaffiliated Customers: | |||||||
| Flexible Packaging | $ | 383.2 | $ | 333.6 | |||
| Pressure Sensitive Materials | 118.0 | 117.1 | |||||
| Intersegment Sales: | |||||||
| Flexible Packaging | (0.4 | ) | (0.1 | ) | |||
| Pressure Sensitive Materials | (0.1 | ) | (0.0 | ) | |||
| Total | $ | 500.7 | $ | 450.6 | |||
| Operating Profit and Pretax Profit: | |||||||
| Flexible Packaging | $ | 49.3 | $ | 30.9 | |||
| Pressure Sensitive Materials | 11.4 | 10.9 | |||||
| Total operating profit | 60.7 | 41.8 | |||||
| General corporate expenses | (7.2 | ) | (4.9 | ) | |||
| Interest expense | (5.7 | ) | (5.1 | ) | |||
| Minority interest in net income | (.1 | ) | (1.0 | ) | |||
| Income before income taxes | $ | 47.7 | $ | 30.8 | |||
| Identifiable Assets: | |||||||
| Flexible Packaging | $ | 1,204.8 | $ | 1,129.7 | |||
| Pressure Sensitive Materials | 323.5 | 298.5 | |||||
| Total identifiable assets | 1,528.3 | 1,428.2 | |||||
| Corporate assets | 44.5 | 49.7 | |||||
| Total | $ | 1,572.8 | $ | 1,477.9 | |||
6
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