Bemis Company Reports Third Quarter 2000 Results.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--Oct. 23, 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 third 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 $0.60 per share, as compared to $0.59 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 third quarter rose 8% to a record $529.3 million. Excluding the net effect of acquisitions made during the third quarter, sales would have increased by 3%. For the first nine months of 2000, diluted earnings were $1.81 per share, up 17% from $1.55 per share last year. Net sales for the nine months increased 9%. Excluding acquisitions, sales would have increased 8%. In the Company's lines of business, Flexible Packaging sales were up 10% in the third quarter while 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. was up 4% from the prior year's third quarter. Sales for the nine-month period were up 11% and operating profit increased 19% compared to the same period last year. In Pressure Sensitive Materials, sales in the third quarter were approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. equal to the prior year levels and operating profit decreased by 26% compared to last year. Sales for the nine-month period increased by 3% compared to the same period last year, while operating profit increased by 2%. 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, "This quarter's results are indicative indicative: see mood. of the tough challenges of the current economic and competitive environment in the marketplace. Higher raw materials costs and lower volume, reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of a softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. economy, put pressure on both sales and profit margins for the quarter. The pressure sensitive materials business is experiencing particularly difficult market conditions in the roll label product line with increasing raw material costs coupled with an extremely competitive pricing environment. From a strategic perspective, I am pleased that we were able to complete three acquisitions during the quarter, which enhances our position in key markets in both lines of business. We expect overall business conditions to remain challenging through the fourth quarter and anticipate some dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. from our recent acquisitions. Because of these factors, we anticipate that fourth quarter 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 will be about the same as the third quarter of this year." Bemis Company, Inc. will Webcast an investor telephone conference regarding its third quarter 2000 financial results this afternoon at 2 p.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 Bemis may refer to:
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 will be posted 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 which 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 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 Nine Months Ended
September 30, September 30,
-----------------------------------------
2000 1999 2000 1999
-----------------------------------------
Net sales $529,266 $492,218 $1,555,244 $1,424,084
Costs and expenses:
Cost of products sold 420,390 386,256 1,224,750 1,113,361
Selling, general and
administrative expenses 46,020 46,317 144,788 145,215
Research and development 2,374 2,661 7,398 8,817
Interest expense 8,178 5,318 20,284 15,660
Other costs (income), net 198 778 922 6,085
Minority interest in net
income 141 936 344 2,865
-----------------------------------------
Income before income taxes 51,965 49,952 156,758 132,081
Provision for income taxes 19,800 18,800 59,600 50,600
-----------------------------------------
Net income $32,165 $31,152 $97,158 $81,481
=========================================
Basic earnings per share
of common stock $.61 $.60 $1.82 $1.56
=========================================
Diluted earnings per share
of common stock $.60 $.59 $1.81 $1.55
=========================================
Cash dividends paid $.24 $.23 $.72 $.69
=========================================
Weighted average common
shares and common stock
equivalents outstanding 53,643 52,778 53,649 52,654
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BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in thousands of dollars)
(unaudited)
----------------------------------------------------------------------
Sept. 30, Dec. 31,
ASSETS 2000 1999
------ -----------------------
Cash $27,507 $18,187
Accounts receivable - net 287,727 257,260
Inventories 293,197 274,597
Prepaid expenses and deferred charges 39,702 33,537
-----------------------
Total current assets 648,133 583,581
-----------------------
Property and equipment, net 862,003 776,241
Excess of cost of investments in
subsidiaries over net assets acquired 339,131 150,496
Other assets 30,000 21,825
-----------------------
Total 369,131 172,321
-----------------------
TOTAL ASSETS $1,879,267 $1,532,143
=======================
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current portion of long-term debt $934 $1,049
Short-term borrowings 170,446 5,741
Accounts payable 202,075 189,749
Accrued salaries and wages 39,660 39,861
Accrued income and other taxes 18,769 16,868
-----------------------
Total current liabilities 431,884 253,268
Long-term debt, less current portion 500,822 372,267
Deferred taxes 92,621 89,635
Other liabilities and deferred credits 49,718 51,580
-----------------------
Total liabilities 1,075,045 766,750
-----------------------
Minority interest 1,437 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 833,792 775,011
Other comprehensive income (loss) (42,693) (30,644)
Treasury common stock (7,735,188 and
6,909,488 shares) (231,404) (206,339)
-----------------------
Total stockholders' equity 802,785 725,895
-----------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,879,267 $1,532,143
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BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands of dollars)
(unaudited)
----------------------------------------------------------------------
Nine Months Ended
September 30,
-----------------------
2000 1999
-----------------------
Cash flows from operating activities
------------------------------------
Net income $97,158 $81,481
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 79,985 75,282
Minority interest in net income 344 2,865
Deferred income taxes, non-current portion 3,618 2,123
Losses of unconsolidated affiliated
companies 1,742 6,981
(Gain) loss on sale of property and
equipment (7) 136
Changes in working capital, net of effects
of acquisitions and dispositions (31,341) (37,595)
Net change in deferred charges and credits (2,015) 6,539
-----------------------
Net cash provided by operating activities 149,484 137,812
-----------------------
Cash flows from investing activities
------------------------------------
Additions to property and equipment (74,292) (94,428)
Business acquisitions (294,103) (1,424)
Proceeds from sale of property and equipment 402 1,006
Other 36 49
-----------------------
Net cash used in investing activities (367,957) (94,797)
-----------------------
Cash flows from financing activities
------------------------------------
Change in long-term debt excluding debt assumed
in business acquisition 128,635 (4,498)
Change in short-term debt 165,095 661
Cash dividends paid (38,377) (36,095)
Cash dividends paid to minority stockholders (51) 0
Common stock purchased for the treasury (25,065) (43)
Stock incentive programs and related tax
effects 374 53
-----------------------
Net cash provided (used) by financing
activities 230,611 (39,922)
-----------------------
Effect of exchange rates on cash (2,818) (1,835)
-----------------------
Net increase in cash $9,320 $1,258
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