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): August 4, 1999
SYSCO CORPORATION
(Exact name of registrant as specified in charter)
Delaware 1-06544 74-1648137
(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification No.)
incorporation)
1390 Enclave Parkway
Houston, Texas 77077-2099
(Address of principal executive (Zip Code)
offices)
Registrant's telephone number including area code (281) 584-1390
(Former name or former address, if changed since last report)
869253v1
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ITEM 5. OTHER EVENTS.
On August 4, 1999, SYSCO Corporation ("SYSCO") issued a press release
("Press Release") announcing its results of operations for the fiscal year ended
July 3, 1999. SYSCO hereby incorporates by reference herein the information set
forth in its Press Release dated August 4, 1999, a copy of which is annexed
hereto as Exhibit 99.
Except for the historical information contained in this report, the
statements made by SYSCO are forward looking statements that involve risks and
uncertainties. All such statements are subject to the safe harbor created by the
Private Securities Litigation Reform Act of 1995. SYSCO's future financial
performance could differ significantly from the expectations of management and
from results expressed or implied in the Press Release. For further information
on other risk factors, please refer to the "Risk Factors" section of SYSCO's
Form S-4 filed on July 23, 1999.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial Statements.
Not applicable.
(b) Pro Forma Financial Information.
Not applicable.
(c) Exhibits.
Exhibit
Number Description
- ------ -----------
99 Press Release dated August 4, 1999
-1-
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
SYSCO has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
SYSCO CORPORATION
Date: August 30, 1999 By: /s/ John K. Stubblefield, Jr.
-----------------------------------------
John K. Stubblefield, Jr.
Senior Vice President,
Finance and Administration
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EXHIBIT INDEX
Exhibit
Number Description
- ------ -----------
99 Press Release dated August 4, 1999
Exhibit 99
SYSCO's Strong FY 1999 Performance Drives 14 Percent EPS and Sales Increases
HOUSTON, Aug. 4 /PRNewswire/ -- SYSCO Corporation (NYSE: SYY) today
reported that diluted earnings per share rose 14 percent to $1.08 on record
sales of $17.4 billion, also a 14 percent gain, for the 53-week fiscal year
ended July 3, 1999. In fiscal 1998 (52 weeks) diluted earnings per share were
$0.95, prior to a second quarter fiscal 1998 accounting change of $28 million,
and sales were $15.3 billion. Net earnings reached $362.3 million, 11.5 percent
higher than last year's net earnings of $324.8 million before the accounting
change.
Fourth quarter diluted earnings per share were $0.35, a gain of 21
percent as compared to the $0.29 of the previous year's fourth quarter. Sales
reached $4.8 billion for the 14-week quarter, 20.4 percent higher than the $4.0
billion attained in the 13-week quarter of 1998. Net earnings of $116.9 million,
represented a 20 percent increase above the $97.5 million achieved in last
year's fourth quarter.
"Dining out continues to be one of America's favorite forms of
entertainment and SYSCO benefited from the industry's economic health in fiscal
1999," said Bill M. Lindig, chairman and chief executive officer. "For the same
period, the industry grew at about 4 percent in real terms, according to
industry sources, while SYSCO grew at more than twice that rate. Our sales
growth momentum strengthened as the year progressed and was particularly robust
in the fourth quarter, reflecting our dedication to providing innovative product
offerings and unequaled service to help our customers meet their patrons' needs.
"As a result, marketing-associate-served territory sales grew to
approximately 56 percent of SYSCO's traditional foodservice companies' sales
volume during the fourth quarter versus 55 percent a year earlier. SYSCO brand
product sales also continue to grow and represented about 49 percent of
marketing-associate-served sales for the fourth quarter and 48 percent for
fiscal 1999, up from approximately 47 percent in fourth quarter 1998 and 45
percent for fiscal 1998."
Mr. Lindig said real sales growth was 11.6 percent for the 53-week year
versus 52 weeks, after adjusting for about 1 percent for acquisitions and
approximately 1 percent inflation. Real sales growth for the 14-week quarter
compared to the 13-week quarter in 1998 was 19.9 percent after eliminating the
effect of less than 1 percent for acquisitions and just under one-fifth of a
point deflation.
"We are very excited about the recently announced acquisitions of
Buckhead Beef Company, Doughtie's Foods, Inc. and Newport Meat Company. The
Newport acquisition as completed July 30 and the two remaining are scheduled to
close during August," Mr. Lindig continued. "Together, the two suppliers of
center-of-the-plate products to fine dining establishments solidify our position
as one of the premier providers of fresh-cut beef, pork, veal, lamb and related
products in Georgia and adjacent states as well as California and surrounding
states. By bringing Doughtie's into the SYSCO family we can combine their
business in Virginia, North Carolina and Maryland with our existing customer
base in that area to support a new "fold-out" facility and substantially enhance
our presence in the Mid-Atlantic region."
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During the quarter a tornado destroyed the facility in Stroud, Oklahoma
operated by The SYGMA Network, Inc., SYSCO's chain restaurant distribution
subsidiary. Fortunately, there were no fatalities or injuries to employees and
service to customers continued as employees at other SYGMA and SYSCO locations
rallied to deliver supplies to customers. However, the facility and its adjacent
shop were declared a total loss. The complex is covered substantially by
insurance and SYGMA will open a replacement facility approximately 100 miles
away in Pryor, Oklahoma near Tulsa, which is anticipated to be operational
November 1.
"We are very fortunate to participate in a growing industry and to have
a talented employee base that is committed to providing the most consistent
quality products and outstanding service to our customers. Fiscal 2000 marks our
30th year as a public company and opportunities abound for SYSCO to assist our
customers to continue satisfying customers' away-from-home-dining tastes," Mr.
Lindig commented in closing. "We look forward to the new millennium and will
continue to improve customer satisfaction by seeking innovative products and
providing higher service levels, while being ever mindful of achieving our
financial objectives."
SYSCO is the largest foodservice marketing and distribution
organization in North America. Generating annualized sales in excess of $17
billion, SYSCO provides its products and services to about 300,000 customers.
The SYSCO distribution network currently extends throughout the entire
contiguous United States as well as portions of Alaska and Canada.
Statements made herein regarding industry growth, sales increases,
customer mix, product cost inflation/deflation, consistency and predictability
of earnings growth, acquisitions and facility openings are forward-looking
statements under the Private Securities Litigation Reform Act of 1995. They are
based on current expectations and actual results may differ materially. Industry
growth, sales increases, customer mix, product cost inflation/deflation and the
consistency and predictability of earnings growth and acquisitions could be
affected by conditions in the economy, the industry and internal factors that
may alter planned results. Facility openings could be affected by those factors
and could vary depending upon construction schedules.
The comprehensive financial data for the fourth quarters of fiscal
years 1999 and 1998 are summarized below.
($000 omitted except for per share data) For the Period Ended
July 3, 1999 June 27, 1998
(14 Weeks) (13 Weeks)
Sales ...................................... $ 4,818,633 $ 4,001,374
Costs and expenses
Cost of sales ......................... 3,909,856 3,250,728
Operating expenses .................... 697,444 574,875
Interest expense ...................... 19,097 15,612
Other, net ............................ 641 299
Total costs and expenses ................... 4,627,038 3,841,514
Earnings before income taxes ............... 191,595 159,860
Income taxes ............................... 74,722 62,345
Net earnings ............................... $ 116,873 $ 97,515
Basic earnings per share ................... $ 0.35 $ 0.29
Diluted earnings per share ................. $ 0.35 $ 0.29
Basic average shares outstanding ........... 330,586,514 336,624,083
Diluted average shares outstanding ......... 334,811,582 340,244,952
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The comparative financial data for fiscal years 1999 and 1998 are
summarized below.
($000 omitted except for per share data) For the Period Ended
July 3, 1999 June 27, 1998
(53 Weeks) (52 Weeks)
Total sales ................................... $ 17,422,815 $ 15,327,536
Costs and expenses
Cost of sales ............................ 14,207,860 12,499,636
Operating expenses ....................... 2,547,266 2,236,932
Interest expense ......................... 72,839 58,422
Other, net ............................... 963 53
Total costs and expenses ...................... 16,828,928 14,795,043
Earnings before income taxes .................. 593,887 532,493
Income taxes .................................. 231,616 207,672
Earnings before cumulative effect of accounting
change ................................... 362,271 324,821
Cumulative effect of accounting change ........ -- (28,053)
Net earnings ............................. $ 362,271 $ 296,768
Earnings before accounting change:
Basic earnings per share ................. $ 1.09 $ 0.95
Diluted earnings per share ............... $ 1.08 $ 0.95
Cumulative effect of accounting change:
Basic earnings per share ................. -- $ (0.08)
Diluted earnings per share ............... -- $ (0.08)
Net earnings:
Basic earnings per share ................. $ 1.09 $ 0.87
Diluted earnings per share ............... $ 1.08 $ 0.86
Basic average shares outstanding .............. 332,913,546 340,380,477
Diluted average shares outstanding ............ 336,796,669 343,440,181
/CONTACT: Diane Day Sanders, Vice President and Treasurer of SYSCO Corporation,
281-584-1390/ 09:07 EDT
