Dean Foods reports third 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)--March 22, 1995--Howard M. Dean, chairman and chief executive officer of Dean Foods Company, announced earnings per share of $.43 for the quarter ended February February: see month. 26, 1995, down from $.46 per share reported a year ago. Earnings were $17.2 million compared to $18.4 million a year ago. Sales for the third quarter were $666 million, 7% above last year. For the nine months, earnings increased 14% to $54.2 million or $1.36 per share compared to $47.7 million or $1.20 per share last year. Sales for the nine months increased 10% to $1.94 billion from $1.76 billion in the year ago period. Dean said, "The principal reasons for the lower third quarter earnings were higher interest costs and income taxes along with lower earnings by our ice cream operations. Increased borrowings associated with cash outlays Outlays Payments on obligations in the form of cash, checks, the issuance of bonds or notes, or the maturing of interest coupons. for acquisitions last year and early this fiscal year, together with higher interest rates, were principal factors for the increased interest costs. The higher effective income tax rate was largely the result of the sale of non-business related property acquired in an acquisition several years ago that had a low tax basis. There was no pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern impact from the sale of the property. Continued competitive pressure on margins and costs associated with entry into new markets and the introduction of Guilt Free, a new non-fat, no sugar added ice cream product, were largely responsible for the reduced ice cream earnings. Our Specialty Food Products segment continued their strong performance with both vegetables and 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. operations recording strong sales and earnings improvement. The Birds Eye
Dean concluded by saying, "While we are disappointed with the third quarter results, we expect the fourth quarter to meet or exceed last year's results. Dairy segment earnings should improve with the seasonal increase in ice cream consumption and projected stable raw milk costs. Satisfactory performance is expected from our Specialty Food Products segment as vegetables and pickles Pickles may refer to
An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. last year's levels. Fourth quarter cash flows will reduce seasonal crop related borrowings with a corresponding reduction in interest costs. Unit volumes for both the Dairy and Specialty Food Products segments continue to exceed last year's levels. We are confident that fiscal 1995 will be a year of record earnings." Dean Foods is a diversified diversified (di·verˑ·s food processor distributor, producing a full line of dairy and other food products, including fluid milk, cottage cheese cottage cheese a soft, uncured cheese made from soured skim milk; most of the lactose is removed with the whey. Used in low-residue diets for dogs and cats. , ice cream and frozen novelties A novelty is a small manufactured adornment, especially a personal adornment. In this sense, the word is usually used in the plural, novelties. The word is also used to denote novelty item. , frozen yogurt yogurt: see fermented milk. yogurt Semisolid, fermented, often flavoured milk food. Yogurt is known and consumed in almost all parts of the world. and specialty foods such as canned and frozen vegetables Frozen vegatables (also freeze-dried vegetables) are commercially packaged vegetables that are sold in the frozen section of the store, usually packaged in either rectangular boxes or plastic bags. , dips, pickles, relishes, powdered coffee creamers, syrups syrups, n a medicinal preparation in which herbal infusions or decoctions are mixed with glycerin, honey, or sugar. and aseptic aseptic /asep·tic/ (-tik) free from infection or septic material. a·sep·tic adj. Of, relating to, or characterized by asepsis. products. Products are sold to supermarkets, specialty food stores, foodservice The foodservice (or food service) industry (US English; catering industry in British English) encompasses those places, institutions, and companies responsible for any meal eaten away from home. facilities, other processors and internationally. -0-
DEAN FOODS COMPANY
Condensed Consolidated Statement of Earnings
For The Periods Ended
Feb. 26, 1995 and Feb. 27, 1994
(Unaudited, In thousands except for per share amounts)
Third Quarter Ended Nine Months Ended
Feb. 26, Feb. 27, Feb. 26, Feb. 27
1995 1994 1995 1994
Net sales $ 665,895 $ 622,890 $ 1,943,026 $ 1,759,654
Costs of products
sold 511,101 483,012 1,488,853 1,375,022
Delivery, selling
and administrative
costs 119,700 105,074 346,903 296,364
Interest expense 6,187 4,410 16,567 11,101
Other expense
(income), net (673) 112 (1,566) (1,279)
636,315 592,608 1,850,757 1,681,208
Income before
income taxes
and cumulative
effect of changes
in accounting
principles 29,580 30,282 92,269 78,446
Provision for
income taxes 12,404 11,840 38,107 31,963
Income before
cumulative
effect of changes
in accounting
principles 17,176 18,442 54,162 46,483
Cumulative effect
of changes in
accounting
principles, net
of taxes -- -- -- 1,179
Net income for the
period 17,176 18,442 54,162 47,662
Earnings per common share: Earnings before cumulative effect of changes in accounting principles .43 .46 1.36 1.17 Cumulative effect of changes in accounting principles -- -- -- .03 Earnings per common share .43 .46 1.36 1.20 Weighted average common shares outstanding 39,875 39,724
DEAN FOODS COMPANY
Condensed Consolidated Balance Sheets
(Unaudited)
(In Thousands)
February 26, February 27,
1995 1994
ASSETS Current Assets: Cash and temporary cash investments $ 23,771 $ 13,489 Accounts and notes receivable, net of allowance for doubtful accounts 171,602 169,328 Inventories 289,241 287,375 Other current assets 41,823 29,253
Total current assets 526,437 499,445
Property, Plant and Equipment, net 555,273 536,375 Other Assets 113,286 76,541
Total Assets $1,194,996 $1,112,361
LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Short-term notes payable $ 117,000 $ 147,121 Current installments of long-term obligations 6,792 2,272 Accounts payable and accrued expenses 232,161 224,724 Dividends payable 6,865 6,464 Federal and state income taxes 3,880 4,100
Total current liabilities 366,698 384,681
Long-Term Obligations 184,914 148,423 Deferred Liabilities 81,893 72,974 Shareholders' Equity 561,491 506,283
Total Liabilities and Shareholders'
Equity $1,194,996 $1,112,361
CONTACT: Martin E. Janis JANIS Joint Army Navy Intelligence Studies & Company Inc. Beverly Jedynak, 312/943-1100 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion