Bemis Company Reports Record Second Quarter Results.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--July 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 announced record second 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 $0.66 per share, up 10% from $0.60 per share in 1999. 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 in the second quarter rose 9% to a record $525.2 million. For the first six months of 2000, diluted earnings were $1.21 per share, up 26% from $0.96 per share last year. Net sales for the six months increased 10%. In the Company's lines of business, Flexible Packaging sales were up 9% in the second quarter and 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. up 9%. In Pressure Sensitive Materials, sales were also up 9% with operating profit up 22%. Commenting on the results, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Jeffrey Curler said "Our overall results for the quarter were quite good compared to the very strong second quarter last year. We had somewhat higher raw material costs in our flexible plastic packaging business during the quarter as well as some inefficiencies due to capacity constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. in certain lines, but expect some improvement in these areas as the year progresses. Our paper packaging business had results below expectations in the quarter as a result of a temporary inventory overhang Overhang Calculated as stock options granted, plus the remaining options to still be granted, and then divided by the total shares outstanding. Notes: A high percentage for the overhang is usually a bad thing. at our customers' plants which should come back into line in the months ahead. I am very pleased with the improving results in our pressure sensitive materials business which had significantly better performance from its U.S. operations compared to a year ago, and I look for continued progress in this area. Our European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. operations again produced strong results for the quarter as it did in the first quarter, and its prospects for the balance of the year are very good." 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 "forward looking" 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 Six Months Ended
June 30, June 30,
------------------- -------------------
2000 1999 2000 1999
------------------- -------------------
Net sales $525,230 $481,259 $1,025,978 $931,866
Costs and expenses:
Cost of products sold 411,165 372,956 804,360 727,105
Selling, general and
administrative expenses 47,914 48,049 98,768 98,898
Research and development 2,448 3,653 5,024 6,156
Interest expense 6,383 5,198 12,106 10,342
Other costs (income), net 113 (864) 724 5,307
Minority interest in net
income 157 976 203 1,929
------------------- -------------------
Income before income taxes 57,050 51,291 104,793 82,129
Provision for income taxes 21,700 19,700 39,800 31,800
------------------- -------------------
Net income $35,350 $31,591 $64,993 $50,329
=================== ===================
Basic earnings per share
of common stock $.67 $.60 $1.22 $.96
=================== ===================
Diluted earnings per share
of common stock $.66 $.60 $1.21 $.96
=================== ===================
Cash dividends paid $.24 $.23 $.48 $.46
=================== ===================
Weighted average common
shares and common stock
equivalents outstanding 53,617 52,616 53,652 52,592
=================== ===================
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in thousands of dollars)
(unaudited)
June 30, Dec. 31,
ASSETS 2000 1999
------ ---------- ----------
Cash $28,712 $18,187
Accounts receivable - net 281,352 257,260
Inventories 280,655 274,597
Prepaid expenses and deferred charges 35,490 33,537
---------- ----------
Total current assets 626,209 583,581
---------- ----------
Property and equipment, net 773,604 776,241
Excess of cost of investments in
subsidiaries over net assets acquired 167,461 150,496
Other assets 21,391 21,825
---------- ----------
Total 188,852 172,321
---------- ----------
TOTAL ASSETS $1,588,665 $1,532,143
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current portion of long-term debt $984 $1,049
Short-term borrowings 3,623 5,741
Accounts payable 190,986 189,749
Accrued salaries and wages 35,906 39,861
Accrued income and other taxes 18,703 16,868
---------- ----------
Total current liabilities 250,202 253,268
Long-term debt, less current portion 409,761 372,267
Deferred taxes 90,821 89,635
Other liabilities and deferred credits 48,352 51,580
---------- ----------
Total liabilities 799,136 766,750
---------- ----------
Minority interest 1,249 39,498
Stockholders' equity:
Common stock (60,876,829 and 59,098,203
shares ) 6,088 5,910
Capital in excess of par value 237,002 181,957
Retained income 814,380 775,011
Other comprehensive income (loss) (37,786) (30,644)
Treasury common stock (7,735,188 and
6,909,488 shares) (231,404) (206,339)
---------- ----------
Total stockholders' equity 788,280 725,895
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,588,665 $1,532,143
========== ==========
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands of dollars)
(unaudited)
Six Months Ended
June 30,
---------------------
2000 1999
---------- ----------
Cash flows from operating activities
------------------------------------
Net income $64,993 $50,329
Non-cash items:
---------------
Depreciation and amortization 52,601 50,561
Minority interest in net income 203 1,929
Deferred income taxes, non-current portion 1,587 1,097
Losses of unconsolidated affiliated companies 989 5,729
(Gain) loss on sale of property and equipment (15) 125
---------- ----------
Cash provided by operations 120,358 109,770
Changes in working capital, net of effects of
acquisitions and dispositions (35,239) (32,400)
Net change in deferred charges and credits (3,401) 4,732
---------- ----------
Net cash provided by operating activities 81,718 82,102
---------- ----------
Cash flows from investing activities
------------------------------------
Additions to property and equipment (51,890) (58,349)
Business acquisitions (3,277) (1,424)
Proceeds from sale of property and equipment 247 974
Other 10 16
---------- ----------
Net cash used in investing activities (54,910) (58,783)
---------- ----------
Cash flows from financing activities
------------------------------------
Change in long-term debt excluding debt assumed
in business acquisition 37,530 (2,070)
Change in short-term debt (1,707) 169
Cash dividends paid (25,624) (24,063)
Common stock purchased for the treasury (25,065) (43)
Stock incentive programs and related tax effects 374 53
---------- ----------
Net cash used by financing activities (14,492) (25,954)
---------- ----------
Effect of exchange rates on cash (1,791) (1,609)
---------- ----------
Net increase (decrease) in cash $10,525 ($4,244)
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