DEAN FOODS REPORTS SECOND QUARTER SALES AND EARNINGS.FRANKLIN PARK Franklin Park, village (1990 pop. 18,485), Cook co., NE Ill., a suburb of Chicago; inc. 1892. It is chiefly residential. , Ill.--(BUSINESS WIRE)--Dec. 20, 1995--Howard M. Dean, Chairman and Chief Executive Officer of Dean Foods Company, announced earnings of $16 million for the second quarter ended November November: see month. 26, 1995, down from $20 million reported a year ago. Earnings per share were $.40 as compared to $.50 a year ago. Sales for the second quarter were $705 million, 6% above last year. For the six months ended November 26, 1995, earnings were $30 million or $.74 per share compared to $37 million or $.93 per share last year. Sales for the six months increased 6% to $1.36 billion from $1.28 billion in the year ago period. Mr. Dean said, "The second quarter operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before of our 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. Foods segment are down $7.6 million or 28% compared to the $27.1 million performance of a year ago. The first quarter operating difficulties of our Specialty Foods segment continued into the second quarter, although segment sales improved to $301 million, up 7%, for the second quarter. Frozen vegetable vegetable, term originally used for any plant, now the name for many food plants, most of them annuals, and for their edible parts. There is no clear botanical distinction between vegetables and fruits. selling price improvements have commenced, although slower than anticipated, and pricing levels continue to be below last years levels. Additionally, the processing costs of our vegetable operations are higher due to a reduced pack in midwest Midwest or Middle West, region of the United States centered on the western Great Lakes and the upper-middle Mississippi valley. It is a somewhat imprecise term that has been applied to the northern section of the land between the Appalachians growing areas. The performance of canned vegetables continues to operate below our expectations. Pickle pickle, general term for fruits or vegetables preserved in vinegar or brine, usually with spices or sugar or both. Vegetables commonly pickled include the beet, cabbage, cauliflower, cucumber, olive, onion, pepper, and tomato. selling prices have been consistent with last year's levels; however, manufacturing costs are higher due to weather-related procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. problems. Our vegetable and pickle sales volumes continue to be strong and our market shares in both categories have improved versus a year ago." Mr. Dean added, "Strong Dairy Products dairy products dairy npl → produits laitier dairy products dairy npl → Milchprodukte pl, Molkereiprodukte pl sales volumes and stable raw milk costs contributed to second quarter operating earnings of $19.2 million, a 13% increase as compared to last year. Sales of Dairy Products in the second quarter increased 6% to $397 million. Although performance of our ice cream and extended shelf-life dairy products operations were below last years levels, we anticipate improved performance from both operations over the balance of the fiscal year as a result of improved pricing and lower costs." Interest expense increased by $1.6 million in the second quarter principally due to higher borrowing levels associated with acquisitions consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. since last years second quarter. Mr. Dean concluded, "We are disappointed by our level of performance and have recently initiated a comprehensive strategic review of all our operations with the purpose of enhancing shareholder value. The results of this review will be announced in 1996." Dean Foods is a diversified diversified (di·verˑ·s food processor and distributor. Nationwide, Dean is the leading producer of dairy products, ranks third in market share in processed vegetables and second in pickles Pickles may refer to
DEAN FOODS COMPANY
BUSINESS SEGMENT INFORMATION
FOR THE PERIODS ENDED
NOVEMBER 26, 1995 AND NOVEMBER 27, 1994
(Unaudited)
(In Thousands Except for Per Share Amounts)
Dairy Specialty Corporate
Products Food Products and Other Consolidated
SECOND QUARTER ENDED November 26, 1995 Net Sales $ 397,220 $ 301,310 $ 6,828 $ 705,358 Operating Earnings 19,162 19,506 (11,528) 27,140 November 27, 1994 Net Sales $ 374,817 $ 282,032 $ 5,999 $ 662,848 Operating Earnings 16,975 27,127 (10,159) 33,943 SIX MONTHS ENDED November 26, 1995 Net Sales $ 787,484 $ 556,074 $ 13,305 $ 1,356,863 Operating Earnings 39,503 32,483 (21,923) 50,063 November 27, 1994 Net Sales $ 745,973 $ 518,328 $ 12,830 $ 1,277,131 Operating Earnings 36,552 45,543 (19,406) 62,689 -0-
DEAN FOODS COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In Thousands)
November 26, November 27,
1995 1994
ASSETS
Current Assets:
Cash and temporary
cash investments $ 22,461 $ 14,615
Accounts and notes
receivable, net of
allowance for doubtful
accounts 202,188 188,203
Inventories 393,741 338,756
Other current assets 59,131 46,926
Total current assets 677,521 588,500
Property, Plant and
Equipment, net 596,344 552,186
Other Asset 139,123 112,011
Total Assets $ 1,412,988 $ 1,252,697
LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Short-term notes payable $ 173,000 $ 138,000 Current installments of long-term obligations 12,063 6,712 Accounts payable and accrued expenses 291,813 276,443 Dividends payable 7,294 6,862 Federal and state income taxes 3,626 6,430 Total current liabilities 487,796 434,447 Long-Term Obligations 232,507 185,632 Deferred Liabilities 91,317 81,586 Shareholders' Equity 601,368 551,032 Total Liabilities and Shareholders' Equity $ 1,412,988 $ 1,252,697 -0-
DEAN FOODS COMPANY
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
FOR THE PERIODS ENDED
NOVEMBER 26, 1995 AND NOVEMBER 27, 1994
(Unaudited)
(In Thousands Except for Per Share Amounts)
Second Quarter Ended Six Months Ended
Nov. 26, Nov. 27, Nov. 26, Nov. 27,
1995 1994 1995 1994
Net sales $ 705,358 662,848 $ 1,356,863 1,277,131
Costs of
products sold 547,092 504,879 1,049,912 977,752
Delivery, selling
and administrative
expenses 124,523 118,546 245,279 227,203
Interest expense 7,211 5,637 12,869 10,380
Other income, net (608) (157) (1,260) (893)
678,218 628,905 1,306,800 1,214,442
Income before
income taxes 27,140 33,943 50,063 62,689
Provision for
income taxes 11,128 13,917 20,390 25,703
Net income $ 16,012 20,026 $ 29,673 36,986
Earnings per
common share $ .40 .50 $ .74 .93
Weighted average
common shares 40,111 39,850
CONTACT: Tom Rose, President & COO (Cell Of Origin) See mobile positioning. Bill McManaman, V.P. Finance & CFO See Chief Financial Officer. (312) 625-6200 |
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