Bemis Company Reports Strong Operating Results for Second Quarter and Raises EPS Guidance for 2002.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--July 23, 2002 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 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 $0.82 per share for the quarter ended June June: see month. 30, 2002, a 22 percent increase from $0.67 per share in the same period a year ago. 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 for the second quarter were $585 million, slightly ahead of last year's sales of $582 million. Effective January January: see month. 1, 2002, Bemis Bemis may refer to:
SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 142, "Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. ". This new accounting standard requires that goodwill no longer be amortized into earnings but instead be reviewed for impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. . If this standard had been in effect for 2001, 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 for the second quarter of 2001 would have been increased by the amount of goodwill amortization of $0.04 per share. "Our strong performance represents sustainable, improved operating performance in both of our business segments," said Jeff Curler, Bemis Company President and Chief Executive Officer. "Combined with prudent cost management, lower interest expense and a strong balance sheet, Bemis is well positioned to continue to deliver solid results going forward." Business Segments Net sales for the flexible packaging business segment were $456 million for the quarter, compared with $458 million during the second quarter of 2001. Increased sales from the acquisition of Duralam in late 2001 were offset by lower sales in the polyethylene polyethylene (pŏl'ēĕth`əlēn), widely used plastic. It is a polymer of ethylene, CH2=CH2, having the formula (-CH2-CH2-)n product lines. 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 flexible packaging increased 7 percent to $77 million from the second quarter of 2001. As a percent of net sales, operating profit increased to 16.9 percent from 15.8 percent a year ago. "Our flexible packaging business is poised for growth, with new capacity, improved production efficiencies, and new product introductions," said Curler. "Our high barrier product lines delivered record results for the quarter with prudent management of costs and production capacity. Our paper product line has regained its trend of improving profitability with focus on material cost control and innovation. These strong results were partially offset by lower margins in our polyethylene packaging product line. New capacity and improved manufacturing efficiencies are expected to further boost operating profits in this product line by the end of the year." Second quarter net sales for the pressure sensitive materials business segment were $128 million, an increase of 4 percent from the second quarter of 2001. Roll label sales volume increased 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. and 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). compared with last year's volume levels.
Operating profit increased to $7.2 million or 5.6 percent of sales
compared with $0.1 million or nearly breakeven breakeven1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations last year. In 2001, this business was impacted by the downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in the economy and manufacturing inefficiencies. Last year's results also reflect $2.6 million of one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges in connection with adjustments to the organizational structure  This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. of this business segment. Commenting on the results for this business segment, Curler noted, "This significant improvement is a direct result of a more efficient organizational structure, the implementation of six sigma Not to be confused with Sigma 6. Six Sigma is a set of practices originally developed by Motorola to systematically improve processes by eliminating defects.[1] A defect is defined as nonconformity of a product or service to its specifications. initiatives to improve manufacturing efficiencies, and increased sales volume. We look forward to continued improvement in this business segment as sales volumes strengthen in the future." Improved Earnings Outlook Bemis expects third quarter 2002 earnings per share to be similar to the results of the second quarter or near the $0.82 per share level. As a result of this improved level of profitability, management has increased earnings per share guidance for the full year 2002 to a range of $3.05 to $3.10. Bemis Company, Inc. will Webcast an investor telephone conference regarding its second quarter 2002 financial results this morning at 10 a.m., Eastern 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. More information about the company is available at our website, www.bemis.com. Statements in this release that are not historical 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 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 December: see month. 31, 2001.
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(in thousands, except per share amounts)
(unaudited)
----------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
-----------------------------------------
2002 2001 2002 2001
-----------------------------------------
Net sales $584,774 $581,569 $1,137,451 $1,158,964
Costs and expenses:
Cost of products sold 444,734 459,245 877,187 919,453
Selling, general and
administrative expenses 60,438 52,944 115,523 109,038
Research and development 4,724 2,704 8,316 5,188
Interest expense 3,774 8,244 7,846 18,925
Other costs (income), net (146) 922 896 564
Minority interest in net
income 257 121 397 220
-----------------------------------------
Income before income taxes 70,993 57,389 127,286 105,576
Provision for income taxes 27,000 21,900 48,400 40,400
-----------------------------------------
Net income $43,993 $35,489 $78,886 $65,176
=========================================
Basic earnings per share
of common stock $0.83 $0.67 $1.49 $1.23
=========================================
Diluted earnings per share
of common stock $0.82 $0.67 $1.47 $1.23
=========================================
Cash dividends paid $0.26 $0.25 $0.52 $0.50
=========================================
Weighted average common
shares and common stock
equivalents outstanding 53,773 52,922 53,688 52,940
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BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(dollars in thousands)
(unaudited)
----------------------------------------------------------------------
Jun 30, Dec 31,
ASSETS 2002 2001
------ ------------------------
Cash $48,685 $35,101
Accounts receivable, net 290,823 258,397
Inventories, net 285,206 259,755
Prepaid expenses 35,526 33,644
------------------------
Total current assets 660,240 586,897
------------------------
Property and equipment, net 830,552 852,720
Goodwill 363,695 333,275
Other intangible assets, net 54,164 88,614
Deferred charges, and other assets 76,189 61,468
------------------------
Total 494,048 483,357
------------------------
TOTAL ASSETS $1,984,840 $1,922,974
========================
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current portion of long-term debt $877 $3,572
Short-term borrowings 1,558 2,091
Accounts payable 209,517 173,766
Accrued salaries and wages 47,114 45,241
Accrued income and other taxes 18,793 13,512
------------------------
Total current liabilities 277,859 238,182
Long-term debt, less current portion 549,250 595,249
Deferred taxes 127,922 121,979
Other liabilities and deferred credits 81,419 79,288
------------------------
Total liabilities 1,036,450 1,034,698
------------------------
Minority interest 4,604 2,128
Stockholders' equity:
Common stock (61,342,842 and 61,270,317
shares) 6,134 6,127
Capital in excess of par value 248,168 244,978
Retained income 993,397 942,019
Other comprehensive income (loss) (53,569) (56,659)
Treasury common stock (8,401,149 and
8,400,388 shares) (250,344) (250,317)
------------------------
Total stockholders' equity 943,786 886,148
------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,984,840 $1,922,974
======================================================================
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
(unaudited)
----------------------------------------------------------------------
Six Months Ended
June 30,
------------------
2002 2001
------------------
Cash flows from operating activities
------------------------------------
Net income $78,886 $65,176
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 58,615 63,332
Minority interest in net income 397 220
Deferred income taxes, non-current portion 5,398 5,000
Losses of unconsolidated affiliated companies 1,360 1,961
Tax benefits related to stock incentive programs 375 1,400
Loss (gain) on sale of property and equipment 404 320
Changes in working capital, net of effects of
acquisitions and dispositions (12,190) 7,335
Net change in deferred charges and credits (858) (819)
------------------
Net cash provided by operating activities 132,387 143,925
------------------
Cash flows from investing activities
------------------------------------
Additions to property and equipment (32,645) (60,341)
Business acquisition adjustments 89 (605)
Proceeds from sale of property and equipment 151 414
------------------
Net cash used in investing activities (32,405) (60,532)
------------------
Cash flows from financing activities
------------------------------------
Change in long-term debt excluding debt assumed in
business acquisition (56,317) 1,513
Change in short-term debt (3,572) (52,501)
Cash dividends paid (27,508) (26,405)
Common stock recovered from business acquisition
adjustment (27) 0
Stock incentive programs (375) (1,400)
------------------
Net cash used in financing activities (87,799) (78,793)
------------------
Effect of exchange rates on cash 1,401 1,382
------------------
Net increase in cash 13,584 5,982
Cash balance at beginning of year 35,101 28,910
------------------
Cash balance at end of period $48,685 $34,892
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