BEMIS CO INC
10-Q, EX-19, 2000-08-08
CONVERTED PAPER & PAPERBOARD PRODS (NO CONTANERS/BOXES)
Previous: BEMIS CO INC, 10-Q, 2000-08-08
 Next: BEMIS CO INC, 10-Q, EX-27, 2000-08-08

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
June 30
   Six Months Ended
June 30
 
   2000
   1999
   2000
   1999
Net sales   $ 525,230   $ 481,259   $ 1,025,978   $ 931,866
Costs and expenses:                        
  Cost of products sold     411,165     372,956     804,360     727,105
  Selling, general and administrative expenses     47,914     48,049     98,768     98,898
  Research and development     2,448     3,653     5,024     6,156
  Interest expense     6,383     5,198     12,106     10,342
  Other costs (income)     113     (864 )   724     5,307
  Minority interest in net income     157     976     203     1,929
   
 
 
 
Income before income taxes     57,050     51,291     104,793     82,129
  Provision for income taxes     21,700     19,700     39,800     31,800
   
 
 
 
Net income   $ 35,350   $ 31,591   $ 64,993   $ 50,329
       
 
 
 
Basic earnings per share of common stock   $ .67   $ .60   $ 1.22   $ .96
       
 
 
 
Diluted earnings per share of common stock   $ .66   $ .60   $ 1.21   $ .96
       
 
 
 
Cash dividends paid per share of common stock   $ .24   $ .23   $ .48   $ .46
       
 
 
 
Average common shares and common stock equivalents outstanding     53,617     52,616     53,652     52,592
       
 
 
 

EXHIBIT 19—FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS

BEMIS COMPANY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(in thousands of dollars)

 
   Jun 30
2000
   Dec 31
1999
  
ASSETS  
 
Cash		  
 		  
$		  
28,712		  
 		  
$		  
18,187		  
 
Accounts receivable—net     281,352     257,260  
Inventories     280,655     274,597  
Prepaid expenses and deferred charges     35,490     33,537  
   
 
 
    Total current assets     626,209     583,581  
   
 
 
Property and equipment, net     773,604     776,241  
Excess of cost of investments in subsidiaries over net assets acquired     167,461     150,496  
Other assets     21,391     21,825  
   
 
 
    Total     188,852     172,321  
   
 
 
TOTAL ASSETS   $ 1,588,665   $ 1,532,143  
       
 
 
 
 LIABILITIES AND STOCKHOLDERS' EQUITY		  
 
 
Current portion of long-term debt		  
 		  
$		  
984		  
 		  
$		  
1,049		  
 
Short-term borrowings     3,623     5,741  
Accounts payable     190,986     189,749  
Accrued salaries and wages     35,906     39,861  
Accrued income and other taxes     18,703     16,868  
   
 
 
    Total current liabilities     250,202     253,268  
Long-term debt, less current portion     409,761     372,267  
Deferred taxes     90,821     89,635  
Other liabilities and deferred credits     48,352     51,580  
   
 
 
    Total liabilities     799,136     766,750  
   
 
 
Minority interest     1,249     39,498  
Stockholders' equity:              
  Common stock (60,876,829 and 59,098,203 shares)     6,088     5,910  
  Capital in excess of par value     237,002     181,957  
  Retained income     814,380     775,011  
  Other comprehensive income (loss)     (37,786 )   (30,644 )
  Common stock held in treasury (7,735,188 and 6,909,488 shares)     (231,404 )   (206,339 )
   
 
 
    Total stockholders' equity     788,280     725,895  
   
 
 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 1,588,665   $ 1,532,143  
       
 
 

EXHIBIT 19—FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS

BEMIS COMPANY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

(in thousands of dollars)

 
   Six Months Ended
June 30
  
 
   2000
   1999
  
Cash flows from operating activities              
Net income   $ 64,993   $ 50,329  
Non-cash items:              
  Depreciation and amortization     52,601     50,561  
  Minority interest in net income     203     1,929  
  Deferred income taxes, non-current portion     1,587     1,097  
  Losses of unconsolidated affiliated companies     989     5,729  
  (Gain) loss on sale of property and equipment     (15 )   125  
   
 
 
Cash provided by operations     120,358     109,770  
Change in working capital, net of effects of acquisitions and dispositions     (35,239 )   (32,400 )
Net change in deferred charges and credits     (3,401 )   4,732  
   
 
 
Net cash provided by operating activities     81,718     82,102  
   
 
 
Cash flows from investing activities              
Additions to property and equipment     (51,890 )   (58,349 )
Business acquisitions     (3,277 )   (1,424 )
Proceeds from sale of property and equipment     247     974  
Other     10     16  
   
 
 
Net cash used in investing activities     (54,910 )   (58,783 )
   
 
 
Cash flows from financing activities              
Change in long-term debt excluding debt assumed in business acquisitions     37,530     (2,070 )
Change in short-term debt     (1,707 )   169  
Cash dividends paid     (25,624 )   (24,063 )
Common stock purchased for the treasury     (25,065 )   (43 )
Stock incentive programs and related tax effects     374     53  
   
 
 
Net cash used by financing activities     (14,492 )   (25,954 )
   
 
 
Effect of exchange rates on cash     (1,791 )   (1,609 )
   
 
 
Net (decrease) increase in cash   $ 10,525   $ (4,244 )
       
 
 

EXHIBIT 19—FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS

BEMIS COMPANY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY

(in thousands of dollars except
 per share amounts)
   Common Stock
   Capital In Excess Of Par Value
   Retained Income
   Other Comprehensive Income (Loss)
   Common Stock Held In Treasury
   Total Stockholder's Equity
  
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 six months of 2000                 64,993                 64,993  
Translation adjustment for the first six months of 2000                       (7,142 )         (7,142 )
                                 
 
Total comprehensive income                                   57,851  
                                 
 
Cash dividends paid on common stock, $.48 per share                 (25,624 )               (25,624 )
Stock incentive programs and related tax effects     5     369                       374  
Common stock transactions related to acquisition of minority interest in a subsidiary company     173     54,676                       54,849  
Purchase of 825,700 shares of common stock                             (25,065 )   (25,065 )
   
 
 
 
 
 
 
Balance at June 30, 2000   $ 6,088   $ 237,002   $ 814,380   $ (37,786 ) $ (231,404 ) $ 788,280  
     
 
 
 
 
 
 

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:

(in thousands of dollars)

   June 31
2000
   Dec 31
1999
Raw materials and supplies   $ 95,255   $ 93,539
Work in process and finished goods     185,400     181,058
   
 
Total inventories   $ 280,655   $ 274,597
     
 

Note 3—Earnings Per Share Computations

 
   Three Months Ended
June 30,
   Six Months Ended
June 30,
 
   2000
   1999
   2000
   1999
Income available to common stockholders (numerator)   $ 35,350,000   $ 31,591,000   $ 64,993,000   $ 50,329,000
Weighted-average common shares outstanding (denominator)     53,139,293     52,311,195     53,307,062     52,307,062
Basic earnings per share of common stock   $ 0.67   $ 0.60   $ 1.22   $ 0.96
Dilutive effects of stock option and stock awards, net of windfall tax benefits     477,669     305,073     344,681     285,200
Weighted-average common shares and common stock equivalents outstanding (denominator)     53,616,962     52,616,268     53,651,743     52,592,262
Diluted earnings per share of common stock   $ 0.66   $ 0.60   $ 1.21   $ 0.96

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.

Note 5—Segments of Business

    The Company'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 Company 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 Company's business activities reported by its two business segments follows:

 
   For the Quarter Ended
June 30,
  
Business Segments (in millions of dollars)

   2000
   1999
  
Net Sales to Unaffiliated Customers:              
  Flexible Packaging   $ 776.3   $ 693.8  
  Pressure Sensitive Materials     250.6     238.2  
Intersegment Sales:              
  Flexible Packaging     (0.8 )   (0.1 )
  Pressure Sensitive Materials     (0.1 )   (0.0 )
   
 
 
    Total   $ 1,026.0   $ 931.9  
       
 
 
Operating Profit and Pretax Profit:              
  Flexible Packaging   $ 104.5   $ 81.6  
  Pressure Sensitive Materials     25.5     22.4  
   
 
 
    Total operating profit     130.0     104.0  
  General corporate expenses     (12.9 )   (9.7 )
  Interest expense     (12.1 )   (10.3 )
  Minority interest in net income     (0.2 )   (1.9 )
   
 
 
    Income before income taxes   $ 104.8   $ 82.1  
       
 
 
Identifiable Assets:              
  Flexible Packaging   $ 1,215.3   $ 1,159.2  
  Pressure Sensitive Materials     328.6     295.4  
   
 
 
    Total identifiable assets     1,543.9     1,454.6  
  Corporate assets     44.8     44.6  
   
 
 
    Total   $ 1,588.7   $ 1,499.2  
       
 
 



© 2022 IncJournal is not affiliated with or endorsed by the U.S. Securities and Exchange Commission