<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the three months ended December 31, 1995
Commission File Number 0-17039
American Rice, Inc.
(Exact Name of Registrant as Specified in its Charter)
Texas 76-0231626
(State or other Jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or Organization)
16825 Northchase, Suite 1600
Houston, Texas 77060
(Address of Principal Executive Offices) (Zip Code)
(713) 873-8800
Registrant's Telephone Number,
Including Area Code
Indicate by check mark whether the registrant (1) has 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 (or for such shorter period
that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes [X] No [ ]
The number of shares outstanding of the registrant's common stock,
$1 par value, as of February 6, 1996 is 2,443,699 shares
<PAGE>
PART 1 - FINANCIAL INFORMATION
Item 1. Financial Statements
AMERICAN RICE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands of Dollars)
(Unaudited)
Three Months Nine Months
Ended December 31, Ended December 31,
1995 1994 1995 1994
----------------------------------------
Net sales $101,440 $106,330 $278,201 $290,350
Cost of sales 93,131 96,445 250,638 260,092
----------------------------------------
Gross profit 8,309 9,885 27,563 30,258
Selling, general and
administrative expenses 6,158 6,123 18,003 17,004
Provision for loss on disposal
of property (Note 4) 7,200 - 7,200 -
----------------------------------------
Operating income (loss) (5,049) 3,762 2,360 13,254
Interest expense 4,914 3,258 12,516 9,227
Interest income (642) (172) (1,170) (522)
Minority interest (217) (17) (463) (21)
Other income and expense 100 (328) 251 (170)
----------------------------------------
Earnings (loss) before
income taxes (9,204) 1,021 (8,774) 4,740
Provision for
income taxes (benefit) (3,313) 377 (3,159) 1,754
----------------------------------------
Net earnings (loss) ($5,891) $644 ($5,615) $2,986
========================================
Preferred stock dividend
requirements 1,483 1,483 4,448 4,448
----------------------------------------
Net loss applicable
to common stock ($7,374) ($839) ($10,063) ($1,462)
========================================
Loss per applicable
common and common equivalent
share:
Primary ($3.02) ($.34) ($4.12) ($.60)
========================================
Fully diluted ($3.02) ($.34) ($4.12) ($.60)
=========================================
See Notes to Consolidated Financial Statements
Page 1<PAGE>
AMERICAN RICE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Thousands of Dollars)
December 31, March 31,
1995 1995
--------------------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $1,259 $1,864
Accounts receivable, net 42,319 33,423
Inventories
Finished goods 34,191 17,108
Raw materials 30,695 33,097
Prepaid expenses 899 793
Deferred income taxes 3,412 3,451
Net assets of Houston properties
held for sale (Note 4) 13,535 -
--------------------
Total current assets 126,310 89,736
Net assets of Houston properties held for sale - 18,767
Other assets 20,843 15,710
Receivable from ERLY 24,429 11,901
Property, plant and equipment, net 42,673 41,386
--------------------
Total assets $214,255 $177,500
====================
Continued on next page
See Notes to Consolidated Financial Statements
Page 2<PAGE>
AMERICAN RICE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (CONTINUED)
(Thousands of Dollars)
December 31, March 31,
1995 1995
--------------------
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $35,725 $33,937
Accounts payable and accrued expenses 39,266 34,372
Income taxes payable to ERLY - 1,037
Current portion of long-term debt 103 6,727
--------------------
Total current liabilities 75,094 76,073
Long-term debt 95,377 48,573
Deferred income taxes 5,187 8,616
Minority interest - 26
Stockholders' equity (Note 3):
Preferred stock, $1.00 par value; 4,000,000
shares authorized;
Series A- 777,777 convertible shares issued
and outstanding, liquidation preference
of $19,989 778 778
Series B- 2,800,000 convertible shares issued
and outstanding, liquidation preference
of $14,000 2,800 2,800
Series C- 300,000 shares issued
and outstanding, liquidation preference
of $1,500 300 300
Common stock, $1.00 par value; 10,000,000
shares authorized; 2,443,699 shares
issued and outstanding 2,444 2,444
Paid-in capital 25,286 25,286
Retained earnings 7,737 13,352
Cumulative foreign currency
translation adjustments (748) (748)
--------------------
Total stockholders' equity 38,597 44,212
--------------------
Total liabilities and stockholders' equity $214,255 $177,500
====================
See Notes to Consolidated Financial Statements
Page 3<PAGE>
AMERICAN RICE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Thousands of Dollars)
(Unaudited)
Nine Months
Ended December 31,
1995 1994
OPERATING ACTIVITIES: ------------------
Net earnings (loss) ($5,615) $2,986
Adjustments to reconcile net earnings to net cash
provided by (used in) in operating activities:
Depreciation and amortization 4,377 4,793
Mortgage note discount accretion 190 -
(Gain) loss on sales of property - 34
Provision for loss on disposal
of property (Note 4) 7,200
Deferred income taxes, net (3,390) 1,077
Changes in assets and liabilities that
provided (used) cash:
Accounts receivable (8,896) (6,717)
Inventories (14,681) 23,322
Prepaid expenses (106) (549)
Other assets 128 (451)
Receivable from ERLY (2,028) (887)
Accounts payable and accrued expenses 2,926 891
Income taxes payable to ERLY (1,037) 250
--------------------
Net cash provided (used) by
operating activities (20,932) 24,749
INVESTING ACTIVITIES:
Property, plant and equipment additions (4,390) (2,593)
Proceeds from sales of assets 85 16
Loan to ERLY (10,500) -
--------------------
Net cash used in
investing activities (14,805) (2,577)
FINANCING ACTIVITIES:
Increase(decrease)in notes payable 1,788 (18,395)
Proceeds from issuance of long-term debt 1,290 -
Proceeds from issuance of mortgage notes 94,000 -
Mortgage notes issuance costs (6,620) -
Repayment of long-term debt (55,300) (3,908)
Other, net (26) (21)
--------------------
Net cash provided by (used in)
financing activities 35,132 (22,324)
--------------------
NET DECREASE IN CASH (605) (152)
CASH:
Beginning of the period 1,864 1,721
--------------------
End of the period $1,259 $1,569
====================
See Notes to Consolidated Financial Statements
Page 4<PAGE>
<TABLE>
AMERICAN RICE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Nine Months Ended December 31, 1995
(Thousands of Dollars)
(Unaudited)
<CAPTION>
Foreign Total
Additional Currency Stock -
Preferred Common Paid-in Retained Translation Holders'
Stock Stock Capital Earnings Adjustments Equity
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Balance April 1, 1995 $3,878 $2,444 $25,286 $13,352 ($748) $44,212
Net earnings (loss) - - - (5,615) (5,615)
--------- --------- --------- --------- --------- ---------
Balance
December 31, 1995 $3,878 $2,444 $25,286 $7,737 ($748) $38,597
========= ========= ========= ========= ========= =========
<FN>
See Notes to Consolidated Financial Statements
</TABLE>
Page 5<PAGE>
AMERICAN RICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation:
The consolidated financial statements presented herein at December 31,
1995 and for each of the three and nine month periods ended December 31,
1995 and 1994 are unaudited; however, all adjustments which are, in the
opinion of management necessary for a fair presentation of the financial
position, results of operations and cash flows for the periods covered
have been made and are of a normal, recurring nature. The results of
the interim periods are not necessarily indicative of results for the
full year. The consolidated balance sheet at March 31, 1995 is derived
from the March 31, 1995 audited consolidated financial statements but
does not include all disclosures required by generally accepted
accounting principles. Although management believes the disclosures are
adequate, certain information and disclosures normally included in the
notes to the financial statements has been condensed or omitted as
permitted by the rules and regulations of the Securities and Exchange
Commission. These financial statements should be read in conjunction
with the audited financial statements and notes thereto included in
American Rice, Inc.'s ("ARI") Annual Report on Form 10-K for the fiscal
year ended March 31, 1995.
2. Notes Payable and Long-Term Debt
In a public offering completed on August 24, 1995, ARI issued
$100 million in principal amount of 13.0% mortgage notes due 2002 (the
"Notes"). Portions of the net proceeds of $94 million were used to
repay $53.8 million of existing term debt, to make a $10.5 million 15%
loan to ERLY Industries Inc. due 2002, and to reduce borrowings
outstanding under the $47.5 million revolving credit loan. The Notes
were issued pursuant to an indenture between ARI and U.S. Trust Company
of Texas, N.A. (the "Indenture").
The Notes provide for interest payments semiannually, mature on July 31,
2002, and are non callable by ARI prior to July 31, 1999, after which
date the Notes are callable at the option of ARI, in whole or in part,
at any time upon not less than 30 nor more than 60 days notice, at
107.0% of the principal amount, declining ratably to par on or after
July 31, 2001. Except under certain changes of control, upon
remarketing of the industrial revenue bonds, or asset sales, as defined
in the Indenture, ARI is not required to make mandatory redemption
payments on the Notes. The Notes accrue fixed interest at an annual
rate of 13.0%, an effective yield rate of 14.4%.
In addition to fixed interest, the Notes bear contingent interest of
4.0% of consolidated cash flow (as defined) up to a limit of $40.0
million of consolidated cash flow during the fiscal year in which such
interest accrues. Contingent interest accrues in each semiannual period
(as defined) in which consolidated cash flow in such period and the
immediately preceding semiannual period is equal to or greater than
Page 6<PAGE>
$20.0 million. Contingent interest is payable semiannually, but ARI may
elect to defer all or a portion of any such payment to the extent that
(a) the payment of such portion of contingent interest will cause ARI's
adjusted fixed charge coverage ratio (as defined) for the two
consecutive applicable semiannual periods to be less than 2.0:1 and (b)
the principal of the Notes corresponding to such contingent interest has
not then matured and become due and payable.
The Notes are secured by (a) a first or second priority security
interest in substantially all of ARI's property, plant and equipment
(including related leasehold interests), (b) a first priority security
interest in 39 acres of land in Houston, Texas held for sale, (c) a
pledge agreement creating first priority security interests in the
capital stock of ARI held by ERLY (other than 200,000 shares of ARI's
Series B preferred stock pledged to the holders of ARI's Series
C preferred stock), (d) the ERLY notes receivable and (e) a security
agreement creating a first priority security interest in all registered
U.S. trademarks and a security interest in all other registered
trademarks owned or licensed by ARI.
The Notes rank senior in right of payment to all subordinated
indebtedness and pari passu in right of payment with all existing and
future senior indebtedness of ARI, including borrowings under the
revolving credit loan. The Indenture includes covenants that in certain
instances restrict, among other things, (a) the payment of dividends,
(b) the redemption of equity interests of ARI, (c) the payment on or
redemption of indebtedness subordinate to the Notes, (d) certain
investments (as defined), (e) the incurrence of certain indebtedness and
issuance of preferred stock, (f) certain transactions with affiliates
and (g) certain mergers, consolidations or sales of assets. In
addition, the Indenture contains certain limitations on capital
expenditures, operating lease obligations and rice contract polices and
procedures. The Indenture and the revolving credit loan described below
contain cross default provisions.
The revolving credit loan, which was amended effective June 30, 1995,
bears interest at the prime rate of interest plus 0.5% and will mature
on May 24, 1996. Funds available for borrowing under this revolving
credit loan at any time may not exceed 85% of eligible accounts
receivable (or 90% of accounts receivable backed by acceptable letters
of credit from customers) and 70% of eligible inventory. The revolving
credit loan is primarily collateralized by a first priority security
interest in trade receivables, inventory, and certain key man life
insurance. At December 31, 1995, the outstanding balance on this loan
was $32 million and on January 1, 1996 the borrowing base under the loan
was $47.1 million. During the nine months ended December 31, 1995,
ARI's maximum borrowing under the loan was $33.2 million
Page 7<PAGE>
Long-term debt consisted of the following:
December 31, March 31,
1995 1995
---------------------
13.0% Mortgage Notes $100,000
Less unamortized discount (5,810)
Chase Manhattan Bank $23,755
Internationale Nederland Bank, N.V. 23,755
Texas Commerce Bank 6,842
Other notes 1,290 948
---------------------
Total 95,480 55,300
Less current maturities (103) (6,727)
---------------------
Total long-term debt $ 95,377 $48,573
=====================
3. Statement of Cash Flows
Borrowings under the revolving credit line in the nine months ended
December 31, 1995 and 1994 totaled $289 million and $248 million,
respectively, and repayments during the same periods totaled $287
million and $266 million, respectively. ARI made cash payments for
interest and financing fees of approximately $6.2 million and $6.8
million during the nine months ended December 31, 1995 and 1994,
respectively. ARI paid $1.3 million and $427 thousand for federal and
state income taxes during the nine months ended December 31, 1995 and
1994, respectively.
4. Provision for Loss on Disposal of Properties
ARI has entered into agreements to sell its properties in Houston,
Texas. The terms of the agreements require that certain conditions be
met prior to consummation of the sales including demolition of
structures and updated environmental studies. The net realizable value
of the transactions is expected to approximate $11.6 million.
Accordingly, the previous carrying value of the properties of $18.8
million is being reduced to its approximate net realizable value by a
non-recurring charge of $7.2 million in the three months ended December
31, 1995. The transactions are expected to be consummated in the third
quarter of calendar 1996.
Page 8<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Results Of Operations
The Company purchases and processes rough rice into branded and
commodity rice for sale in both international and domestic markets.
Demand for branded rice products is relatively constant and margins are
typically higher than those for commodity rice products. Demand for
commodity rice products is relatively constant globally, but demand for
U.S. grown commodity rice is dependent upon supply and its cost relative
to other sources of supply. Supply and costs for both branded and
commodity products depend on many factors including governmental
actions, crop yields and weather, and such factors can persist through
one or more fiscal years.
Three Months Ended December 31, 1995 Compared to
Three Months Ended December 31, 1994
Net Sales. Net sales decreased $4.9 million, or 4.6%, from $106.3
million in fiscal 1995 to $101.4 million in fiscal 1996. Export sales of
$65.5 million declined $7.0 million, or 9.7%, from the fiscal 1994
period while sales in the U.S. and Canada increased $2.1 million, or
6.3% to $35.9 million.
Export sales declined due to lower volume partially offset by higher
average prices. Total export sales volume declined approximately
1.7 million equivalent rough rice hundredweight's or 26%, accounting for
an $18.7 million sales decrease. Average export prices increased
approximately 22%, accounting for $11.7 million in sales increases.
Export volume was lower primarily due to decreased volume in the Middle
East and the Caribbean as a result of generally weak demand for
unbranded product. Partially offsetting these declines, sales to Japan
were higher, although shipment levels in the quarter were not as high as
expected due to port congestion and unfavorable weather conditions.
Domestic sales were higher as a result of higher average prices
partially offset by lower volume.
Gross Profit. Gross profit was 8% of sales for the fiscal 1996 quarter
and 9% for the same period in 1995. Gross profit declined $1.6 million,
or 15.9%, from $9.9 million in the fiscal 1995 third quarter to $8.3
million in fiscal 1996, due primarily to declines in gross profit from
sales in the Western Hemisphere and Middle East as a result of lower
volume, partially offset by higher gross profits from sales to Japan.
Provision for Loss on Disposal of Properties. ARI has entered into
agreements to sell its properties in Houston, Texas. The terms of the
agreements require that certain conditions be met prior to consummation
of the sales including demolition of structures and updated
environmental studies. The net realizable value of the transactions is
expected to approximate $11.6 million. Accordingly, the previous
carrying value of the properties of $18.8 million is being reduced to
Page 9<PAGE>
its approximate net realizable value by a non-recurring charge of $7.2
million in the three months ended December 31, 1995. The transactions
are expected to be consummated in the third quarter of calendar 1996.
Management believes it is in the best interest of ARI to proceed with
disposition of the property in an expeditious manner due to the
improvement in liquidity it will provide and to the Note covenant
requiring sale of the property within eighteen months of the date of
issuance of the notes to avoid certain penalties. Management expects to
invest the proceeds in other projects.
Interest. Interest expense increased $1.6 million from $3.3 million in
the fiscal 1995 period to $4.9 million in fiscal 1996 due to higher
average balances outstanding and higher average interest rates. Interest
expense in both periods includes amortization of capitalized debt
issuance costs. Interest expense in the fiscal 1996 period includes
accretion of the $6 million original issue discount on the Notes.
Partially offsetting the increase in interest expense, interest income
increased $470 thousand to $642 thousand due primarily to the $10.5
million loan to ERLY (see Note 2 of Notes to Consolidated Financial
Statements).
Nine Months Ended December 31, 1995 Compared to
Nine Months Ended December 31, 1994
Net Sales. Net sales declined $12.1 million, or 4.2%, from $290.4
million in fiscal 1995 to $278.2 million in fiscal 1996. The decline in
sales was composed of $14.7 million in decreased export sales partially
offset by $2.6 million from increased sales in the U.S. and Canada.
Export sales declined due to lower volume partially offset by higher
average prices. Total export sales volume declined approximately
3.4 million equivalent rough rice hundredweight's or 18%, accounting for
a $34.5 million sales decline. Average export prices increased
approximately 12.5%, accounting for $19.8 million in sales increases.
Export volume was lower primarily due to lower sales to Japan and the
Caribbean partially offset by higher sales to the Middle East. Domestic
sales were higher as a result of higher volume partially offset by lower
average prices.
Gross Profit. Gross profit was 10% of sales for both the fiscal 1995 and
1996 periods. Gross profit declined $2.7 million, or 8.9%, from
$30.3 million in fiscal 1995 to $27.6 million in fiscal 1996, due
primarily to lower sales to Japan partially offset by increases in gross
profit from Western Hemisphere and Middle East sales.
Selling, General and Administrative Expenses. Selling, general and
administrative expenses increased $1.0 million, or 5.9% from
$17.0 million in fiscal 1995 to $18.0 million in fiscal 1996. As a
percentage of net sales, selling, general and administrative expenses
increased from 5.9% in 1995 to 6.5% in fiscal 1996 due primarily to a
higher proportion of branded sales in 1996.
Page 10<PAGE>
Interest. Interest Expense increased $3.3 million from $9.2 million in
fiscal 1995 to $12.5 million in fiscal 1996 due to higher average
balances outstanding and higher average interest rates. Interest income
increased $648 thousand due primarily to the $10.5 million loan to ERLY.
Liquidity and Capital Resources
ARI requires liquidity and capital primarily for the purchase of rough
rice and to invest in property, plant and equipment necessary to support
operations. Historically, ARI has financed both working capital and
capital expenditures through internally generated funds and by funds
provided by credit lines.
Comparing December 31, 1995 to March 31, 1995 balances ARI accounts
receivable increased $8.9 million to $42.3 million and inventories
increased $14.7 million to $64.9 million. The accounts receivable
increase is primarily attributable to the beginning of the Japan sales.
Inventories increased due to a variety of factors which included
generally higher price levels and higher inventories in Vietnam and for
Saudi Arabia business.
Historically, the rice ARI sold in Saudi Arabia was processed and packed
in the United States and shipped to Saudi Arabia. In October 1994, ARI
entered into an agreement with Rice Milling and Trading, Ltd., Inc.
("RMT"), an operator of a receiving, processing, storage and bagging
facility in Jeddah, Saudi Arabia, to receive bulk rice from ARI and pack
rice on a exclusive basis and under strict ARI quality supervision. By
shipping rice in bulk to RMT, ARI reduces vessel loading and freight
costs. Shipments to RMT under this agreement began in June 1995, and
shipments to Saudi merchants from the RMT facility began in October
1995. Attendant with the change from processing in the United States to
processing in the Saudi Arabia, ARI experienced some inventory
increases.
In a public offering completed on August 24, 1995, ARI issued
$100 million in principal amount of 13.0% mortgage notes due 2002 (the
"Notes"). Portions of the net proceeds of $94 million were used to
repay $53.8 million of existing term debt, to make a $10.5 million 15%
loan to ERLY due 2002, and to reduce borrowings outstanding under the
$47.5 million revolving credit loan.
The Notes provide for interest payments semiannually, accruing fixed
interest at an annual rate of 13.0%, an effective yield rate of 14.4%.
In addition to fixed interest, the Notes bear contingent interest of
4.0% of consolidated cash flow (as defined) up to a limit of $40.0
million of consolidated cash flow during the fiscal year in which such
interest accrues. Contingent interest accrues in each semiannual period
(as defined) in which consolidated cash flow in such period and the
immediately preceding semiannual period is equal to or greater than
$20.0 million. Contingent interest is payable semiannually, but ARI may
elect to defer all or a portion of any such payment to the extent that
(a) the payment of such portion of contingent interest will cause ARI's
adjusted fixed charge coverage ratio (as defined) for the two
page 11<PAGE>
consecutive applicable semiannual periods to be less than 2.0:1 and (b)
the principal of the Notes corresponding to such contingent interest has
not then matured and become due and payable. As of December 31, 1995,
the total contingent interest accrued was $308,633. Relevant details are
as follows:
<TABLE>
<CAPTION>
December 31, 1994 June 30, 1995 December 31, 1995
---------------- ----------------- -----------------
<S> <C> <C> <C>
Consolidated Cash Flow:
Year Ended $24,329,000 $20,631,000 $18,564,000
Semiannual Period Ended $9,897,000 $10,735,000 $7,830,000
Contingent Interest Accrued
as of December 31, 1995:
Amount Pertaining to
Semiannual Period
Ended $17,595 $291,038 -0-
Accrual Dates August 24 - September 1 -
August 31, 1995 December 31, 1995
Contingent Interest Paid
as of December 31, 1995: -0- -0- -0-
Adjusted Fixed Cost Coverage
Ratio for Year Ended 1.9 to 1 1.4 to 1
</TABLE>
For the three month periods ended December 31, 1995 and September 30,
1995, respectively, the consolidated cash flow was $3,071,000 and
$4,759,000, respectively.
The revolving credit loan, which was amended effective June 30, 1995,
bears interest at the prime rate of interest plus 0.5% and will mature
on May 24, 1996. Funds available for borrowing under this revolving
credit loan at any time may not exceed 85% of eligible accounts
receivable (or 90% of accounts receivable backed by acceptable letters
of credit from customers) and 70% of eligible inventory. The revolving
credit loan is primarily collateralized by a first priority security
interest in trade receivables, inventory, and certain key man life
insurance. At December 31, 1995, the outstanding balance on this loan
was $32 million and on January 1, 1996 the borrowing base under the loan
was $47.1 million. During the nine months ended December 31, 1995,
ARI's maximum borrowing under the loan was $33.2 million.
Capital expenditures, limited by the Note Indenture to $5.5 million per
fiscal year (with carryover provisions as defined) if the consolidated
cash flow (as defined) does not exceed $30 million per year, were $4.4
million and $2.6 million for the nine months ended December 31, 1995 and
1994, respectively. Management anticipates the $5.5 million limitation
will allow for maintenance of existing facilities and will also support
limited growth.
ARI's Preferred B and C stock carries annual cumulative, non-
participating dividends of $5.2 million and $750 thousand respectively.
No dividends have been declared or paid as of December 31, 1995. As of
December 31, 1995, the Preferred B dividends accumulated but not
Page 12<PAGE>
declared are $13.4 million and the Preferred C dividends accumulated but
not declared are $1.9 million.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings - none
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
11.1 Computation of Earnings Per Share.
27 Financial Data Schedule
(b) During the quarter ended December 31, 1995, Registrant did not file
any Form 8-K Reports.
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.
American Rice, Inc.
-------------------
Registrant
Joseph E. Westover
---------------------------
Vice-President / Controller
Page 13<PAGE>
Exhibit 11.1
AMERICAN RICE, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(Thousands of Dollars Except Per Share Data)
Three Months Nine Months
Ended December 31, Ended December 31,
1995 1994 1995 1994
--------------------------------------------
PRIMARY EARNINGS (LOSS) PER SHARE
Net earnings (loss) ($5,891) $644 ($5,615) $2,986
Less dividends on preferred stock:
Series B (1,295) (1,295) (3,885) (3,885)
Series C (188) (188) (563) (563)
--------------------------------------------
(1,483) (1,483) (4,448) (4,448)
--------------------------------------------
Loss applicable to
common stock ($7,374) ($839) ($10,063) ($1,462)
============================================
Average common and common
equivalent shares outstanding:
Common 2,444 2,444 2,444 2,444
Preferred Series A - - - -
--------------------------------------------
2,444 2,444 2,444 2,444
============================================
Loss per share
applicable to common stock ($3.02) ($.34) ($4.12) ($.60)
============================================
Continued on next page
<PAGE>
Exhibit 11.1 (Continued)
AMERICAN RICE, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(Thousands of Dollars Except Per Share Data)
Three Months Nine Months
Ended December 31, Ended December 31,
1995 1994 1995 1994
--------------------------------------------
FULLY DILUTED EARNINGS PER SHARE *
Net earnings (loss) ($5,891) $644 ($5,615) $2,986
Less dividends on preferred stock:
Series C (188) (188) (563) (563)
--------------------------------------------
Earnings (loss) applicable to
common stock ($6,079) $456 ($6,178) $2,423
============================================
Average common and common
equivalent shares outstanding:
Common 2,444 2,444 2,444 2,444
Preferred Series A 778 778 778 778
Preferred Series B 5,600 5,600 5,600 5,600
--------------------------------------------
8,822 8,822 8,822 8,822
============================================
Earnings (loss) per share
applicable to common stock ($.69) $.05 ($.70) $.27
============================================
* This calculation is presented in accordance with Regulation
S-K item 601(b)(11) although it is contrary to paragraphs 14, 30,
and 40 of APB Opinion No. 15 because it produces an antidilutive
result. The Opinion provides that a computation on a fully
diluted basis which results in an improvement in earnings
per share when compared to primary earnings per share
(antidilution) not be taken into account. Therefore fully diluted
earnings per share reported on the income statement are the same
as primary earnings per share.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> DEC-31-1995
<PERIOD-TYPE> 9-MOS
<CASH> 1,259
<SECURITIES> 0
<RECEIVABLES> 43,850
<ALLOWANCES> 1,531
<INVENTORY> 64,886
<CURRENT-ASSETS> 126,310
<PP&E> 63,460
<DEPRECIATION> 20,787
<TOTAL-ASSETS> 214,255
<CURRENT-LIABILITIES> 75,094
<BONDS> 0
0
3,878
<COMMON> 2,444
<OTHER-SE> 32,275
<TOTAL-LIABILITY-AND-EQUITY> 214,255
<SALES> 278,201
<TOTAL-REVENUES> 278,201
<CGS> 250,638
<TOTAL-COSTS> 250,638
<OTHER-EXPENSES> 16,621
<LOSS-PROVISION> 7,200
<INTEREST-EXPENSE> 12,516
<INCOME-PRETAX> (8,774)
<INCOME-TAX> (3,159)
<INCOME-CONTINUING> (5,615)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (5,615)
<EPS-PRIMARY> (4.12)
<EPS-DILUTED> (4.12)
</TABLE>
