<PAGE>
EXHIBIT 99.1
[IMPERIAL SUGAR COMPANY LOGO]
FOR IMMEDIATE RELEASE
NEWS
Contact:
Mark Q. Huggins
Managing Director and
Chief Financial Officer
(281) 490-9587
Investor Relations:
Morgen-Walke Associates
Gordon McCoun, Jeffrey Zack
Media Contact: Stacey Nield
(212) 850-5600
IMPERIAL SUGAR COMPANY REPORTS
FISCAL 2000 FOURTH QUARTER RESULTS
ANNOUNCES STATUS OF NEGOTIATIONS FOR FINANCIAL RESTRUCTURING
SUGAR LAND, TX, December 14, 2000 -- Imperial Sugar Company (AMEX:IHK)
today reported results for the fourth quarter and full year of the fiscal year
ended September 30, 2000, and announced the status of negotiations for financial
restructuring.
The Company indicated that it was not in compliance with certain financial
covenants under its Senior Credit Agreement at September 30, 2000, and that it
will not pay $12.2 million in interest on its $250 million 9 3/4% Senior
Subordinated Notes ("Notes") due December 15, 2000. The indenture for the Notes
provides a thirty-day grace period. The Company and its senior lenders have
entered into an interim waiver agreement waiving effective through January 8,
2001, this non-compliance and the effect of not paying the scheduled December
15th interest payment on the Notes. Under this agreement, the Senior Credit
Agreement lenders will continue to provide working capital financing for the
Company's
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Imperial Sugar Company Report Fourth Quarter Results Page 2
operations. The Company also announced that the liquidity line of credit issued
in favor of the purchaser of its accounts receivable purchase facility has been
extended to January 8, 2001.
"We and our financial advisors, Wasserstein Perella & Company, have been
working over the past several months with Harris Trust and Savings Bank, the
agent bank for our Senior Credit Agreement lenders, as well as a steering
committee of lenders under that agreement, and with an ad hoc committee of our
noteholders to develop a consensual restructuring plan that will enable us to
delever our balance sheet through a conversion of the Company's Notes into
common equity and greatly enhance the financial strength of Imperial Sugar,
while enabling it to remain an independent company under existing management,"
stated James C. Kempner, President and CEO.
"These discussions have been constructive and fruitful, and I believe we
will soon reach an agreement with both groups of creditors which will put the
Company on track to complete a restructuring during fiscal 2001," Mr. Kempner
continued. "Whether a Chapter 11 filing is utilized or not to complete the
restructuring, our discussions with the two creditor groups contemplate that our
suppliers and other trade creditors will continue to be paid in full and on
time, that agreements and contracts with customers will remain in force and that
there will be no disruption in our operations."
Net sales for the fourth quarter were $457.2 million, compared with net
sales of $487.9 million for the year-ago period. The Company reported a net
loss of $37.1 million for the quarter, or $(1.15) per diluted share, compared to
a net loss of $8.6 million, or $(0.27) per diluted share, for the same period
last year.
Net sales in the Company's sugar segment decreased year over year,
primarily as a result of lower sales prices for refined sugar. Foodservice net
sales declined primarily as a result of lower sales prices received for refined
sugar sold in foodservice markets.
Gross margin in the recent quarter decreased to $19.4 million, or 4.2% of
net sales, from $39.9 million, or 8.2% of net sales, reported in the same period
a year ago. The decrease was primarily
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Imperial Sugar Company Report Fourth Quarter Results Page 3
attributable to significantly lower sales prices for refined sugar in both the
sugar and foodservice segments as well as higher energy costs, particularly in
California, which more than offset benefits from lower raw sugar costs during
the fiscal 2000 fourth quarter.
As previously announced, the Company will discontinue processing sugar
beets in December at its two Northern California sugarbeet factories and has
ceased refining operations in its Clewiston, Florida plant. As a result, the
Company took a charge in the fourth quarter of approximately $27.5 million, or
$17.9 million ($0.55 per share) after tax, of which approximately $16.0 million
before tax is related to impairment costs. Additionally, during the fourth
quarter, the Company forfeited to the Commodity Credit Corporation ("CCC")
refined beet sugar securing $47.1 million of non-recourse loans from the CCC in
full satisfaction of the principal and interest due on those loans. The
forfeited value of the refined sugar exceeded the value realizable in a market
sale.
For fiscal 2000, the Company reported net sales of $1.8 billion, slightly
below those recorded in fiscal 1999. Net loss for the full year ended September
30, 2000, was $34.7 million, or $(1.07) per diluted share, versus a net loss of
$18.1 million, or $(0.57) per diluted share, a year ago. Excluding securities
gains of $23.3 million after tax, or $0.72 per diluted share, and the charge for
discontinuing sugar production at the facilities described above, the Company
would have reported a net loss of $40.0 million, or $(1.24) per diluted share,
in fiscal 2000. Excluding a non-recurring, non-cash charge of $10.9 million
after tax, or $(0.34) per diluted share, to write off its investment in a
limited partnership, and a gain on sales of securities of $3.0 million after
tax, or $0.10 per diluted share, the Company would have reported a net loss of
$10.2 million, or $(0.32) per diluted share, in fiscal 1999.
At September 30, 2000, available unused borrowing capacity under the Senior
Credit Agreement was $97.5 million. Available unused borrowing capacity at
December 12, 2000, was $81.4 million.
In light of its non-compliance with certain financial covenants at
September 30, 2000, the Company has classified substantially all of its long-
term debt as current liabilities.
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Imperial Sugar Company Report Fourth Quarter Results Page 4
Imperial Sugar Company is the largest processor and marketer of refined
sugar in the United States and a major distributor to the foodservice market.
The Company markets its products nationally under the Imperial(TM), Dixie
Crystals(TM), Spreckels(TM), Pioneer(TM), Holly(TM), Diamond Crystal(TM) and
Wholesome Sweeteners(TM) brands. Additional information about Imperial Sugar
may be found on its web site at www.imperialsugar.com.
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Statements regarding the status of financing arrangements, the status and
outcomes of restructuring discussions, future market prices, operating results,
synergies, sugarbeet acreage, future operating efficiencies, cost savings and
other statements which are not historical facts contained in this release are
forward-looking statements that involve certain risks, uncertainties and
assumptions. These include, but are not limited to, the negotiating positions
of various constituencies, the results of negotiations, market factors, the
effect of weather and economic conditions, farm and trade policy, the ability of
the Company to realize planned cost savings, the available supply of sugar,
available quantity and quality of sugarbeets and other factors detailed in the
Company's Securities and Exchange Commission filings. Should one or more of
these risks or uncertainties materialize, or should underlying assumptions prove
incorrect, actual outcomes may vary materially from those indicated.
- TABLES FOLLOW -
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IMPERIAL SUGAR COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In Thousands, Except Per Share Data)
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
September 30, September 30,
-------------------------- ------------------------------
2000 1999 2000 1999
-------- --------- ---------- ----------
<S> <C> <C> <C> <C>
Net Sales $457,154 $487,895 $1,821,231 $1,888,630
Cost of Sales 437,761 448,041 1,682,529 1,704,339
-------- -------- ---------- ----------
Gross Margin 19,393 39,854 138,702 184,291
Selling, General & Administrative 24,889 24,938 87,004 85,115
Asset Impairment & Other Charges 27,541 -- 27,541 --
Depreciation & Amortization 10,601 12,195 51,979 51,272
-------- -------- ---------- ----------
Operating Income (Loss) (43,638) 2,721 (27,822) 47,904
Interest Expense (13,154) (14,072) (56,656) (59,071)
Securities Gains -- 26 35,874 4,697
Loss on Equity Investment in Partnership -- -- -- (16,706)
Other 147 (522) 954 1,598
-------- -------- ---------- ----------
Loss Before Income Tax Benefit (56,645) (11,847) (47,650) (21,578)
Income Tax Benefit (19,542) (3,263) (12,973) (3,454)
-------- -------- ---------- ----------
Net Loss $(37,103) $ (8,584) $ (34,677) $ (18,124)
======== ======== ========== ==========
Basic and Diluted Loss Per Share
Common Stock: $ (1.15) $ (0.27) $ (1.07) $ (0.57)
Weighted Average Shares Outstanding 32,361,994 32,200,474 32,293,759 31,712,602
</TABLE>
Note: Includes the results of Diamond Crystal from November 2, 1998.
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IMPERIAL SUGAR COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In Thousands)
<TABLE>
<CAPTION>
September 30, September 30,
2000 1999
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<S> <C> <C>
CURRENT ASSETS:
Cash and temporary investments $ 6,533 $ 7,925
Marketable securities 4,612 65,496
Accounts receivable 63,378 64,458
Inventories:
Finished Products 97,625 157,869
Raw and in-process materials 50,261 61,299
Supplies 39,585 39,896
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Total Inventory 187,471 259,064
Deferred costs and prepaid expenses 48,251 43,461
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Total current assets 310,245 440,404
PROPERTY, PLANT AND EQUIPMENT - net 357,681 402,364
GOODWILL & OTHER INTANGIBLES - net 395,818 406,627
OTHER ASSETS 29,946 31,388
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TOTAL $1,093,690 $1,280,783
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CURRENT LIABILITIES:
Accounts payable $ 105,457 $ 141,428
Short-term borrowings 1,671 1,611
Current and deemed current maturities
of long-term debt 436,350 12,114
Deferred income taxes-net 16,285 10,719
Other current liabilities 114,646 72,443
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Total current liabilities 674,409 238,315
LONG TERM DEBT - net 20,000 553,577
DEFERRED INCOME TAXES - net 1,117 32,481
EMPLOYEE BENEFITS & OTHER CREDITS 79,563 82,986
SHAREHOLDERS' EQUITY 318,601 373,424
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TOTAL $1,093,690 $1,280,783
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Detail of Long Term Debt
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LONG TERM DEBT:
Senior Revolving Credit Facility $ 30,000 $ 91,500
Senior Term Debt 150,767 192,068
Subordinated Debt 250,000 250,000
Other 25,583 32,123
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Total long term debt 456,350 565,691
Current and deemed current maturities
of long-term debt 436,350 12,114
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LONG TERM DEBT - net $ 20,000 $ 553,577
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</TABLE>
