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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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 19, 1999
DEL MONTE FOODS COMPANY
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(Exact Name of Registrant as Specified in Charter)
Delaware 33-36374-01 13-3542950
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(State or Other Jurisdiction (Commission (IRS employer
of Incorporation) File Number) Identification No.)
One Market, San Francisco, California 94105
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (415) 247-3000
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Not Applicable
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(former name or former address, if changed since last report)
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Item 5. Other Events.
On January 19, 1999, Del Monte Foods Company (the "Company") reported its
financial results for the three and six months ended December 31, 1998. A copy
of the press release issued by the Company on January 19, 1999 is attached
hereto as Exhibit 99 and is incorporated by reference herein.
Item 7. Financial Statements. Pro Forma Financial Information and Exhibits.
(c) Exhibits.
99. Press release issued by Del Monte Foods Company on January 19, 1999.
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SIGNATURES
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 hereunto duly authorized.
Date: January 19, 1999
DEL MONTE FOODS COMPANY
(Registrant)
By: /s/ RICHARD G. WOLFORD
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Name: Richard G. Wolford
Title: Chief Executive Officer
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EXHIBIT INDEX
99 Press release issued by Del Monte Foods Company on January 19, 1999.
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EXHIBIT 99
DEL MONTE FOODS REPORTS FISCAL Q2 RESULTS
SAN FRANCISCO, CA, January 19, 1999, -- Del Monte Foods Company today
reported its financial results for the three and six months ended December 31,
1998. Net income for the second quarter was $10 million compared to net income
of $2 million for the same quarter of fiscal 1998. The six months ended December
31, 1998 resulted in a loss of $1 million compared to net income of $2 million
for the same period of the prior year. Net income for both years is affected by
certain unusual or one-time costs and expenses which are shown on the table
below.
During the second quarter of fiscal 1999, revenue increased by $58
million to $427 million, an increase of 16%, as a result of Contadina product
sales and higher sales of the Company's principal fruit and vegetable products.
Interest expense for the second quarter of fiscal 1999 was $22 million,
an increase of $3 million, or 16%, from the comparable prior year period due to
higher debt levels resulting from the Contadina acquisition and the
reacquisition of rights to the Del Monte brand in South America.
During the six months ended December 31, 1998, revenue increased by $125
million to $745 million, an increase of 20%. This increase was due to Contadina
product sales, strong sales of the Company's principal fruit and vegetable
products and the successful introduction of new products.
Interest expense for the six months ended December 31, 1998 was $43
million, an increase of $7 million, or 19%, from the comparable prior year
period due to higher debt levels resulting from the Contadina acquisition and
the South America acquisition.
Del Monte Foods Company, a branded marketer of premium quality,
nutritious food products, is the largest producer and distributor of canned
fruits, vegetables and tomatoes in the United States. Its principal brands
include Del Monte and Contadina. In the United States, the Company employs
2,660 full time employees and 12,000 additional seasonal workers in 14
production facilities in California, the Midwest, Washington and Texas, as well
as six distribution centers. The Company is not an affiliate of Fresh Del Monte
Produce N.A., Inc.
(Selected Financial Information Attached)
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Del Monte Foods Company
(Dollars in Millions)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
December 31, December 31,
1997 1998 1997 1998
(In millions)
<S> <C> <C> <C> <C>
Net sales $ 369 $ 427 $ 620 $ 745
Operating income 20 32 37 44
Interest expense 19 22 36 43
Net income (loss) 2 10 2 (1)
</TABLE>
Net income for both years is affected by certain unusual and one-time costs and
expenses which are shown below:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
December 31, December 31,
1997 1998 1997 1998
(In millions)
<S> <C> <C> <C> <C>
Inventory write-up
from acquisitions $ -- $ 1 $ -- $ 3
Costs of acquisitions 7 -- 7 1
Special charges related to plant
consolidation -- 5 -- 12
Costs of withdrawn transaction -- -- -- 2
---- ---- ---- ----
$ 7 $ 6 $ 7 $ 18
</TABLE>
Non-cash charges related to depreciation of plant and equipment,
leasehold amortization and amortization of intangibles were $7 million and $12
million for the three months ended December 31, 1997 and 1998 and $13 million
and $24 million for the six months ended December 31, 1997 and 1998. For the
three and six-month periods ended December 31, 1998, $3 million and $7 million
of such depreciation was related to accelerated depreciation resulting from the
effects of adjusting the assets' remaining useful lives to match the period of
use prior to plant closure.
