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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 28, 1997
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HERSHEY FOODS CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware I-183 23-0691590
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
100 Crystal A Drive, Hershey, Pennsylvania 17033
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (717) 534-6799
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Page 1 of 3 Pages
Exhibit Index - Page 3
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INFORMATION TO BE INCLUDED IN REPORT
Item 5. Other Events
On January 28, 1997 Hershey Foods Corporation announced its financial
results for the year ending December 31, 1996. The press release announcing the
financial results is incorporated by reference and is attached hereto as Exhibit
99.
SIGNATURE
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.
Dated: March 4, 1997
HERSHEY FOODS CORPORATION
By---------------------------------
Robert M. Reese
Vice President, General Counsel
and Secretary
Page 2 of 3 Pages
Exhibit Index - Page 3
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Exhibit Index
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Exhibit No. Description
- ----------- -----------
99 Press Release dated January 28, 1997
announcing the Corporation's financial
results for 1996.
Page 3 of 3
Exhibit Index - Page 3
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EXHIBIT 99
Hershey Foods NEWS
Corporate Communications
Hershey Foods Corporation
100 Crystal A Drive
Hershey, PA 17033
FOR IMMEDIATE RELEASE CONTACT:
January 28, 1997 Natalie D. Bailey
717-534-7631
E-Mail: [email protected]
FINANCIAL CONTACT:
James A. Edris
717-534-7556
HERSHEY FOODS ANNOUNCES
FOURTH QUARTER RESULTS
RECORD SALES AND EARNINGS
FROM OPERATIONS
HERSHEY, PA --- Hershey Foods Corporation today announced record consolidated
net sales and earnings from operations for the fourth quarter ended December 31,
1996.
Record net sales were $1,189,115,000 compared with $1,119,851,000 for the fourth
quarter of 1995. Net income was $78,654,000, or $.51 per share on a post-split
basis, including a before- and after-tax loss on disposal of certain European
businesses of $35,352,000, or $.23 per share. Excluding the loss on disposal,
net income for the quarter was $114,006,000, or $.74 per share, compared to
$105,836,000, or $.68 per share, in 1995. Weighted average shares outstanding on
a post-split basis for the fourth quarter of 1996 were 153,368,000 compared with
154,669,000 for the fourth quarter of 1995.
Record net sales for the year were $3,989,308,000 compared with $3,690,667,000
in 1995. Net income for the year including the loss on disposal was
$273,186,000, or $1.77 per share.
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Excluding the impact of the loss on disposal, net income was $308,538,000, or
$2.00 per share, compared with $281,919,000, or $1.70 per share, in 1995.
Weighted average shares outstanding on a post-split basis for the full year 1996
were 153,995,000 compared with 165,687,000 for the full year 1995.
"We had a good finish to 1996," said Kenneth L. Wolfe, Chairman and Chief
Executive Officer. "In the fourth quarter, Hershey Chocolate North America
achieved solid volume growth on the strength of our successful new product
introductions and fine seasonal performance. Hershey Chocolate North America was
the principal contributor to growth in earnings from operations in the quarter,
although Hershey Pasta and Hershey International also recorded excellent
earnings increases versus last year. Lower net interest expense and fewer
average shares outstanding also contributed to per share net income growth in
the quarter.
"Sales growth for the year was attributable primarily to volume growth related
to new products such as Hershey's Sweet Escapes reduced fat and calorie
chocolate bar, Hershey's TasteTations hard candies, Hershey's Pot of Gold boxed
chocolates and Hershey's Cookies 'n Creme candy bars, as well as excellent
seasonal business, the price increase, and the acquisition of the Henry Heide
Inc. In addition, Hershey Grocery and Hershey International posted solid sales
gains for the year. These gains were offset somewhat by the disposal of
businesses in Canada and Europe, and lower sales for Hershey Pasta Group.
"Hershey Chocolate North America was the principal contributor to income growth
for the year with important contributions also made by Hershey Grocery and
Hershey International. Net interest expense increased for the year as a result
of the increased level of borrowings. The lower number of average shares
outstanding for the year contributed to net earnings per share growth.
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"We had an excellent year in 1996, and our business enters 1997 on solid
footing. Newly acquired Leaf North America will require considerable time and
effort to integrate with our North American confectionery business. While we
initially will have modest earnings dilution, we are confident we can
significantly improve the operating performance of this business. Meanwhile, we
will continue to introduce exciting new products while continuing to invest in
our core businesses. There is a lot to be accomplished in 1997, but we are
confident that Hershey's team is up to the task," Wolfe concluded.
# # #
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<TABLE>
<CAPTION>
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Hershey Foods Corporation
Summary of Consolidated Statements of Income
for the periods ended December 31, 1996 and December 31, 1995
(in thousands of dollars except per share amounts)
Fourth Quarter Twelve Months
-------------- -------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net Sales $1,189,115 $1,119,851 $3,989,308 $3,690,667
---------- ---------- ---------- ----------
Costs and Expenses:
Cost of Sales 668,569 626,707 2,302,089 2,126,274
Selling, Marketing and Administrative 318,814 305,909 1,124,087 1,053,758
----------- ----------- ---------- ----------
Total Costs and Expenses 987,383 932,616 3,426,176 3,180,032
----------- ----------- ---------- ----------
Loss on the Disposal of Businesses 35,352 -- 35,352 --
Restructuring Credit -- (3,277) -- (151)
----------- ---------- ---------- ---------
Income Before Interest and Income Taxes 166,380 190,512 527,780 510,786
Interest Expense, net 11,404 14,416 48,043 44,833
------------ ----------- ----------- ----------
Income Before Income Taxes 154,976 176,096 479,737 465,953
Provision for Income Taxes 76,322 70,260 206,551 184,034
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Net Income $ 78,654 $ 105,836 $ 273,186 $ 281,919
--------- ---------- ---------- ----------
Net Income Per Share $ .51 $ .68 $ 1.77 $ 1.70
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</TABLE>
NOTE: Income Per Share has been computed based on the weighted average
number of shares of Common Stock and Class B Common Stock outstanding
during the period. Average shares outstanding for the fourth quarter
and twelve months of 1996 were 153,368,000 and 153,995,000,
respectively, and 154,669,000 and 165,687,000, respectively, for the
comparable periods in 1995. All share and per share amounts have been
restated for the Corporation's two-for-one stock split effective
September 13, 1996.
<TABLE>
<CAPTION>
Consolidated Balance Sheets
as of December 31, 1996 and December 31, 1995
(in thousands of dollars)
Liabilities and
Assets 1996 1995 Stockholders' Equity 1996 1995
- ------ ---- ---- -------------------- ---- ----
<S> <C> <C> <C> <C>
Current Assets $ 986,229 $ 922,323 Current Liabilities $ 817,274 $ 864,355
Property and Equipment, Net 1,601,895 1,436,009 Long-Term Debt 655,289 357,034
Intangibles Resulting from Other Long-Term
Business Acquisitions 565,962 428,714 Liabilities 327,209 333,814
Other Assets 30,710 43,577 Deferred Income Taxes 224,003 192,461
Stockholders' Equity 1,161,021 1,082,959
---------- ---------- -------- --------
$3,184,796 $2,830,623 $3,184,796 $2,830,623
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</TABLE>
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