Bemis Company Reports Higher Fourth Quarter, Full Year 1999 Sales and Earnings.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--Jan. 25, 2000 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 fourth quarter 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 $0.63 per share, up 29% from $0.49 per share in the fourth quarter of 1998. 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 rose 7% to $494 million. For all of 1999, diluted earnings rose 15% to $2.18 per share from $1.90 per share in 1998 and net sales rose 4% to a record $1.92 billion. The strong fourth quarter performance was led by the Company's Flexible Packaging business, which reported a 10% increase in net sales and a 36% increase in 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. compared to the year earlier fourth quarter. Both plastic packaging products and paper products delivered stronger results in the quarter. The Pressure Sensitive Materials business reported a 1% increase in sales and a 7% decline in operating profit as higher sales and profits in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). were offset by
lower profits in the battery label business due to reduced on-battery
tester volumes. Although below last year, this year's fourth
quarter was the strongest quarter for the Pressure Sensitive Materials
business in 1999.Commenting on the results, Chairman and Chief Executive Officer John H. Roe said, &uot;I am pleased with the way the Company finished 1999 and with our position entering 2000. Our Flexible Packaging business had an excellent year, with strength in both high barrier products and polyethylene polyethylene (pŏl'ēĕth`əlēn), widely used plastic. It is a polymer of ethylene, CH2=CH2, having the formula (-CH2-CH2-)n products. The combination of our technology leadership and manufacturing efficiency contributed to the fine results of these businesses. The paper products business has made very significant strides and is in a position to deliver substantially improved results in 2000. The reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. of the Pressure Sensitive Materials (PSM PSM PlayStation Magazine PSM Process Safety Management (chemical industry) PSM Porsche Stability Management PSM Platform-Specific Model(s) PSM Platform Support Module PSM Professional Science Master's ) business in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. is largely complete and I am optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the prospects for significant improvement in the financial performance of this business unit in 2000. Our PSM business in Europe continues to shine, delivering solid sales and profit growth in 1999 with further improvement expected in 2000. Our investment for growth continued in 1999 as capital expenditures totaled $137 million. At present, we expect capital expenditures to decline to about $110 million in 2000 as several large projects are completed. Our cash flow is strong and we have the flexibility to make strategic acquisitions as well as fund internal growth initiatives. Bemis Company is a major supplier of flexible packaging and pressure sensitive materials used by leading food, consumer products, manufacturing, and other companies worldwide. Statements in this release which are not historical are considered &uot;forward looking&uot; and are subject to certain risks and uncertainties which are detailed in the Company's regular SEC filings.
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(in thousands of dollars except per share amounts)
(unaudited)
----------------------------------------------------------------------
Three Months Ended Twelve Months Ended
December 31, December 31,
-----------------------------------------
1999 1998(a) 1999(a) 1998(a)
-----------------------------------------
Net sales $493,941 $460,421 $1,918,025 $1,848,004
Costs and expenses:
Cost of products sold 380,993 360,128 1,494,354 1,458,215
Selling, general and
administrative expenses 48,578 47,788 193,793 185,841
Research and development 2,867 3,209 11,684 12,224
Interest expense 5,558 5,532 21,218 21,866
Other costs (income), net 792 739 6,877 332
Minority interest in net
income 1,359 1,685 4,224 4,496
-----------------------------------------
Income before income taxes 53,794 41,340 185,875 165,030
Provision for income taxes 20,500 15,800 71,100 63,900
-----------------------------------------
Net income $33,294 $25,540 $114,775 $101,130
=========================================
Basic earnings per share
of common stock $.64 $.49 $2.19 $1.91
=========================================
Diluted earnings per share
of common stock $.63 $.49 $2.18 $1.90
=========================================
Cash dividends paid $.23 $.22 $.92 $.88
=========================================
Average common shares and
common stock equivalents
outstanding 52,666 52,640 52,657 53,324
======================================================================
(a) Periods prior to April 1, 1999, have been restated to reflect the
second quarter 1999 change in method of accounting for inventory
to the first-in, first-out (FIFO) method from the last-in
first-out (LIFO) method previously used for the majority of
domestic inventory.
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(unaudited, in thousands of dollars)
----------------------------------------------------------------------
Dec. 31, Dec. 31,
ASSETS 1999 1998(a)
------ -----------------------
Cash $18,187 $23,738
Accounts receivable - net 257,260 246,676
Inventories 274,597 241,585
Prepaid expenses and deferred charges 33,537 34,912
-----------------------
Total current assets 583,581 546,911
-----------------------
Property and equipment, net 776,241 740,101
Excess of cost of investments in
subsidiaries over net assets acquired 150,496 160,819
Other assets 21,825 34,195
-----------------------
Total 172,321 195,014
-----------------------
TOTAL ASSETS $1,532,143 $1,482,026
=======================
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current portion of long-term debt $1,049 $2,946
Short-term borrowings 5,741 3,553
Accounts payable 189,749 193,088
Accrued salaries and wages 39,861 31,629
Accrued income and other taxes 16,868 14,397
-----------------------
Total current liabilities 253,268 245,613
Long-term debt, less current portion 372,267 371,363
Deferred taxes 89,635 84,679
Other liabilities and deferred credits 51,580 54,655
-----------------------
Total liabilities 766,750 756,310
-----------------------
Minority interest 39,498 37,862
Stockholders' equity:
Common stock (59,098,203 and 59,056,047
shares ) 5,910 5,906
Capital in excess of par value 181,957 181,908
Retained income 775,011 708,362
Other comprehensive income (loss) (30,644) (6,116)
Treasury common stock (6,909,488 and
6,786,889 shares) (206,339) (202,206)
-----------------------
Total stockholders' equity 725,895 687,854
-----------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,532,143 $1,482,026
======================================================================
(a) Periods prior to April 1, 1999, have been restated to reflect the
second quarter 1999 change in method of accounting for inventory
to the first-in, first-out (FIFO) method from the last-in
first-out (LIFO) method previously used for the majority of
domestic inventory.
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited, in thousands of dollars)
----------------------------------------------------------------------
Twelve Months Ended
December 31,
-----------------------
1999(a) 1998(a)
-----------------------
Cash flows from operating activities
------------------------------------
Net income $114,775 $101,130
Non-cash items:
---------------
Depreciation and amortization 97,717 88,910
Minority interest in net income 4,224 4,496
Deferred income taxes, non-current portion 5,478 3,516
Undistributed earnings of affiliated
companies 7,874 1,546
Loss (gain) on sale of property and
equipment 624 (74)
-----------------------
Cash provided by operations 230,692 199,524
Changes in working capital, net of effects of
acquisitions and dispositions (43,345) 21,921
Net change in deferred charges and credits (2,258) (505)
-----------------------
Net cash provided by operating activities 185,089 220,940
-----------------------
Cash flows from investing activities
------------------------------------
Additions to property and equipment (137,382) (139,833)
Business acquisitions (1,424) (50,206)
Proceeds from sale of property and equipment 2,201 3,993
Other 61 11
-----------------------
Net cash used in investing activities (136,544) (186,035)
-----------------------
Cash flows from financing activities
------------------------------------
Change in long-term debt excluding debt assumed
in business acquisition 926 55,232
Change in short-term debt 623 1,186
Cash dividends paid (48,126) (46,701)
Subsidiary dividends to minority stockholders (1,835)
Common stock purchased for the treasury (4,133) (41,344)
Stock incentive programs and related tax
effects 53 7,388
-----------------------
Net cash used by financing activities (50,657) (26,074)
-----------------------
Effect of exchange rates on cash (3,439) 1,080
-----------------------
Net (decrease) increase in cash ($5,551) $9,911
======================================================================
(a) Periods prior to April 1, 1999, have been restated to reflect the
second quarter 1999 change in method of accounting for inventory
to the first-in, first-out (FIFO) method from the last-in
first-out (LIFO) method previously used for the majority of
domestic inventory.
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