Bemis Company Reports First Quarter 2003 Results.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--April 23, 2003 Bemis Company Bemis Company, Inc. is an American manufacturer of flexible packaging products and pressure-sensitive materials, which are distributed worldwide. Bemis is part of the S&P 500 index. References
See: New York Stock Exchange :BMS BMS abbr. Bachelor of Marine Science ) today reported quarterly diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. earnings of $0.66 per share for the first quarter ended March 31, 2003, slightly ahead of the prior year's earnings of $0.65 per share. First quarter net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increased 16 percent to a record $639 million from $553 million in the prior year. Excluding the impact of acquisitions, net sales increased by 6 percent. "Bemis Bemis may refer to:
As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the terms of our existing sales agreements. I am also pleased to see organic sales volume growth in our flexible packaging business compared to the first quarter of last year and sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen compared to the fourth quarter of 2002. New high barrier film structures and features are being introduced to the market, effectively raising the bar for performance in the industry, and our polyethylene polyethylene (pŏl'ēĕth`əlēn), widely used plastic. It is a polymer of ethylene, CH2=CH2, having the formula (-CH2-CH2-)n product line is entering its seasonally strong second quarter with improved capacity. "We are disappointed in the first quarter performance of our pressure sensitive materials business after such a strong fourth quarter in 2002. This business has been operating under severe conditions of uncertainty related to generally weak economic conditions and the proposed transaction to sell the business to UPM-Kymmene. We continue to operate this business through a very tough economic environment and expect improvement in the remainder of the year." BUSINESS SEGMENTS Flexible Packaging Flexible packaging, representing 81 percent of total company net sales, reported net sales of $514 million in the first quarter, an increase of 18 percent compared to the same quarter in 2002. Excluding the impact of acquisitions, net sales increased about 6 percent. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the first quarter was $67 million, up 4.1 percent from the first quarter of 2002. As a percentage of net sales, operating profit decreased to 13.0 percent from 14.7 percent a year ago primarily reflecting the impact of the rapid increase in resin prices during the first quarter and higher pension expense for 2003. "Raw material costs increased rapidly during the first quarter," Curler said. "These increases dampened margins during the first quarter as contractual adjustments to selling prices lagged the raw material price increases. We expect results to improve during the second quarter as selling prices are adjusted to absorb absorb To offset sell orders or a new security offering with buy orders. the remaining resin price increases in accordance with defined schedules in our customer agreements. Our polyethylene product line continues to focus on cost control and improving manufacturing efficiencies. New printing capacity has substantially improved our ability to manage the seasonal increase in polyethylene product orders for specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. packaging expected during the second quarter." Pressure Sensitive Materials First quarter net sales from the pressure sensitive materials business segment were $124 million, a 5.1 percent increase from the first quarter of 2002. This segment contributed operating profit of $2.5 million or 2.0 percent of net sales for the quarter. These results are lower than the operating profit of $5.0 million or 4.3 percent of net sales recorded in the first quarter of 2002. On August 21, 2002, the Company announced an agreement to sell its pressure sensitive materials business segment to UPM-Kymmene for $420 million. The European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. regulatory agency regulatory agency Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S. approved the transaction on October October: see month. 16, 2002. On April 15, 2003, the U.S. Department of Justice filed a civil complaint to block the proposed sale of this business to UPM-Kymmene, citing their concern that the sale would reduce competition in the production of bulk paper labelstock for use in variable information printing and prime labeling. Commenting on the results of the pressure sensitive materials business segment, Curler said, "The uncertainties of the pending transaction magnify mag·ni·fy v. To increase the apparent size of, especially with a lens. the need for concentration on cost control and performance objectives. The leadership of this business remains focused and we continue to expect approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 4 to 6 percent annual operating profit as a percentage of net sales in this weak economic environment." Capital Structure Total debt was $722 million, nearly equal to the year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. balance of $724 million. Debt to total capitalization Total capitalization The total long-term debt and all types of equity of a company that constitutes its capital structure. total capitalization See capitalization. was 39 percent at March 31, 2003, compared to 40 percent at December December: see month. 31, 2002. 2003 Earnings Outlook Bemis expects second quarter 2003 results to range from $0.83 to $0.86 per share. For the full year 2003, management expects to deliver diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of in the $3.15 to $3.30 range. These estimates are based upon a full year of operating results for our pressure sensitive materials business segment. Bemis Company, Inc. will Webcast an investor telephone conference regarding its first quarter 2003 financial results this morning at 10 a.m., Eastern Daylight For other uses, see Daylight (disambiguation). Daylight or the light of day is the combination of all direct and indirect sunlight outdoors during the daytime (and perhaps twilight). Time. Individuals may listen to the call on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.bemis.com under "Investor Relations Investor relations The process by which the corporation communicates with its investors. ". However, they are urged to check the website ahead of time to ensure their computers are configured con·fig·ure tr.v. con·fig·ured, con·fig·ur·ing, con·fig·ures To design, arrange, set up, or shape with a view to specific applications or uses: for the audio stream. Instructions for obtaining the required, free, downloadable software are available in a pre-event system test on the site. Bemis Company is a major supplier of flexible packaging and pressure sensitive materials used by leading food, consumer products, manufacturing, and other companies worldwide. Founded in 1858, the Company reported 2002 net sales of $2.4 billion. The Company's flexible packaging business has a strong technical base in polymer chemistry Polymer chemistry or macromolecular chemistry is a multidisciplinary science that deals with the chemical synthesis and chemical properties of polymers or macromolecules. , film extrusion, coating and laminating lam·i·nate v. lam·i·nat·ed, lam·i·nat·ing, lam·i·nates v.tr. 1. To beat or compress into a thin plate or sheet. 2. To divide into thin layers. 3. , printing and converting. The Company's pressure sensitive materials business specializes in adhesive adhesive, substance capable of sticking to surfaces of other substances and bonding them to one another. The term adhesive cement is sometimes used in place of adhesive, especially when referring to a synthetic adhesive. technologies. Based in Minneapolis, Minnesota “Minneapolis” redirects here. For other uses, see Minneapolis (disambiguation). Minneapolis (pronounced IPA: /ˌmɪniˈæpəlɪs/) is the largest city in the U.S. , Bemis employs about 12,000 individuals in 56 manufacturing facilities in 10 countries around the world. More information about the company is available at our website, www.bemis.com. Statements in this release that are not historical, including statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the expected future performance of the company, are considered "forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. " and are presented pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995. Such content is subject to certain risks and uncertainties. Actual future results and trends may differ materially from historical results or those projected in any such forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. depending on a variety of factors which are detailed in the Company's regular SEC filings including the most recently filed Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2002.
BEMIS COMPANY, INC. AND SUBSIDIARIES
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CONSOLIDATED STATEMENT OF INCOME
--------------------------------
(in thousands of dollars except per share amounts)
(unaudited)
---------------------------------------------------------------------
Three Months Ended
March 31,
------------------
2003 2002
------------------
Net sales $638,559 $552,677
Costs and expenses:
Cost of products sold 507,359 432,453
Selling, general, and administrative expenses 65,830 55,085
Research and development 5,056 3,592
Interest expense 3,426 4,072
Other costs (income), net (493) 1,042
Minority interest in net income 207 140
------------------
Income before income taxes 57,174 56,293
Provision for income taxes 21,700 21,400
------------------
Net income $35,474 $34,893
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Basic earnings per share of common stock $0.67 $0.66
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Diluted earnings per share of common stock $0.66 $0.65
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Cash dividends paid per share of common stock $0.28 $0.26
==================
Weighted average common shares outstanding 53,024 52,920
==================
Weighted average common shares and common
stock equivalents outstanding 53,807 53,603
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BEMIS COMPANY, INC. AND SUBSIDIARIES
------------------------------------
CONSOLIDATED BALANCE SHEET
--------------------------
(dollars in thousands)
(unaudited)
----------------------------------------------------------------------
Mar 31, Dec 31,
ASSETS 2003 2002
------ -----------------------
Cash $70,182 $56,401
Accounts receivable, net 322,121 321,790
Inventories, net 330,988 308,344
Prepaid expenses 38,363 35,120
-----------------------
Total current assets 761,654 721,655
-----------------------
Property and equipment, net 909,641 909,953
Goodwill 448,644 448,009
Other intangible assets, net 74,748 76,176
Deferred charges and other assets 99,854 100,857
-----------------------
Total 623,246 625,042
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TOTAL ASSETS $2,294,541 $2,256,650
=======================
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current portion of long-term debt $1,015 $3,516
Short-term borrowings 3,478 1,714
Accounts payable 226,109 230,468
Accrued salaries and wages 51,071 71,610
Accrued income and other taxes 31,537 18,545
-----------------------
Total current liabilities 313,210 325,853
Long-term debt, less current portion 717,835 718,277
Deferred taxes 107,524 106,050
Deferred credits and other liabilities 150,836 143,056
-----------------------
Total liabilities 1,289,405 1,293,236
-----------------------
Minority interest 4,555 4,440
Stockholders' equity:
Common stock issued (61,501,862 and
61,344,887 shares) 6,150 6,134
Capital in excess of par value 254,356 248,206
Retained income 1,073,094 1,052,475
Other comprehensive income (loss) (82,675) (97,497)
Treasury common stock (8,401,149 and
8,401,149 shares) (250,344) (250,344)
-----------------------
Total stockholders' equity 1,000,581 958,974
-----------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,294,541 $2,256,650
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BEMIS COMPANY, INC. AND SUBSIDIARIES
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CONSOLIDATED STATEMENT OF CASH FLOWS
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(in thousands)
(unaudited)
----------------------------------------------------------------------
Three Months
Ended
March 31,
-----------------
2003 2002
-----------------
Cash flows from operating activities
------------------------------------
Net income $35,474 $34,893
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 33,197 29,406
Minority interest in net income 207 140
Stock award compensation 3,470 3,738
Deferred income taxes 1,201 3,180
Loss (gain) of unconsolidated affiliated
companies (186) 1,120
Loss (gain) on sales of property and equipment 18 279
Changes in working capital, net of effects of
acquisitions (24,528)(12,156)
Net change in deferred charges and credits 4,925 2,257
-----------------
Net cash provided by operating activities 53,778 62,857
-----------------
Cash flows from investing activities
------------------------------------
Additions to property and equipment (26,277)(15,328)
Business acquisition adjustments, net of cash
acquired (650) 35
Proceeds from sales of property and equipment 39 40
-----------------
Net cash used in investing activities (26,888)(15,253)
-----------------
Cash flows from financing activities
------------------------------------
Change in long-term debt (12)(30,609)
Change in short-term debt (690) (48)
Cash dividends paid to stockholders (14,855)(13,764)
Stock incentive programs 102
-----------------
Net cash used in financing activities (15,455)(44,421)
-----------------
Effect of exchange rates on cash 2,346 36
-----------------
Net increase in cash 13,781 3,219
Cash balance at beginning of year 56,401 35,101
-----------------
Cash balance at end of period $70,182 $38,320
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