Del Monte Foods Company Reports Fiscal 2005 First Quarter Results; Earnings In Line with Company Guidance.SAN FRANCISCO San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden -- Del Monte Foods Del Monte Foods (NYSE: DLM) is an American food production and distribution company based in San Francisco, California. It offers canned goods in Del Monte, S&W and Contadina brands, pet foods under Kibbles n' Bits, 9Lives, Pounce, Milk-Bone and several premium brands, Company (NYSE NYSE See: New York Stock Exchange : DLM See ILM. DLM - Distributed Lock Manager on distributed VMS systems. ) today announced 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 of $626.0 million and income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $8.6 million, or 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 of $0.04, for the quarter ended August 1, 2004. This compares to net sales of $611.3 million and income from continuing operations of $13.5 million, or $0.07 per 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. share, for the prior year period. First quarter earnings per share were consistent with the guidance the Company provided in its year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. earnings announcement. Integration costs of $8.6 million ($0.02 per share) and $7.0 million ($0.02 per share) are included in the results for the first quarter of fiscal 2005 and fiscal 2004, respectively. "We are pleased with our performance in the first quarter, as we grew our top line 2.4% and took pricing and cost reduction actions which successfully offset inflationary in·fla·tion·ar·y adj. Of, associated with, or tending to cause inflation: inflationary prices; inflationary policies. Adj. 1. pressures that were felt industry-wide," said Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a G. Wolford Wolford, located in Austria, is a marketer and manufacturer of hosiery and lingerie. In the late 1990s, it ran a famous campaign featuring the work of Helmut Newton. External links
Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth."
Net Sales by Segment
Three Months Ended
August 1, July 27,
2004 2003
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(In millions)
Consumer Products $447.0 $449.1
Pet Products 179.0 162.2
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Total Company $626.0 $611.3
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Reported net sales for the first quarter of fiscal 2005 was $626.0 million, compared to $611.3 million in the first quarter of fiscal 2004. This increase was due primarily to pricing increases. In addition, strong volume growth in the Pet Products reportable segment was partially offset by lower tuna tuna or tunny, game and food fishes, the largest members of the family Scombridae (mackerel family) and closely related to the albacore and bonito. They have streamlined bodies with two fins, and five or more finlets on the back. sales volume in the Consumer Products reportable segment.
Operating Income Segment Detail
Three Months Ended
August 1, July 27,
2004 2003
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(In millions)
Consumer Products $35.3 $31.4
Pet Products 16.8 27.0
Corporate (11.6) (6.9)
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Total Company $40.5 $51.5
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Reported operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for first quarter of 2005 totaled $40.5 million, a decrease of $11.0 million compared to the first quarter of fiscal 2004. This decrease in operating income is due in part to marketing and new product investments made to drive the business and position it for long-term growth. In addition, the Company incurred higher production and logistics logistics In military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. costs related to higher steel, energy and raw materials prices that were offset by pricing actions and cost reduction programs. During the first quarter of 2005, the increase in Corporate expenses was due to higher corporate integration costs, increased costs associated with the expensing of stock options and certain legal expenses. Outlook The Company expects sales growth in the second quarter of fiscal 2005 of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 4% to 6% over net sales of $791.6 million in the second quarter of fiscal 2004, and diluted earnings per share of approximately $0.17 to $0.21 for the second quarter of fiscal 2005. This compares to $0.19 for the second quarter of fiscal 2004. The Company expects these earnings results to be driven by increased sales volume, favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. pricing and cost reduction initiatives, offsetting inflationary and other cost increases. In addition, the Company plans to increase its marketing and new product investment over the prior year. We also expect integration costs of approximately $0.01 to $0.02 per share in the second quarter of fiscal 2005, which compares to $0.02 per share in the second quarter of fiscal 2004. The Company expects fiscal 2005 sales growth of approximately 1% to 2% over fiscal 2004 net sales of $3,129.9 million and reaffirms projected diluted earnings per share from continuing operations in fiscal 2005 of approximately $0.81 to $0.86, including integration expense of approximately $19 million, or $0.06 per share. This compares to $0.76 of diluted earnings per share from continuing operations in fiscal 2004, which included integration expense of $44.5 million, or $0.13 per share. The Company also expects cash provided by operating activities, less cash used in investing activities, to exceed $200 million in fiscal 2005. Del Monte Foods Del Monte Foods is one of the country's largest and most well-known well-known adj. 1. Widely known; familiar or famous: a well-known performer. 2. Fully known: well-known facts. producers, distributors and marketers of premium quality, branded and private label food and pet products for the U.S. retail market, generating over $3 billion in net sales in fiscal 2004. With a powerful portfolio of brands including Del Monte Monte (Italian, Portuguese and Spanish meaning mount) may refer to various things: Monte is the name of several places: In Brazil
Del Monte Foods will host a live audio web cast, accompanied ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. by a slide presentation, to discuss its fiscal 2005 First Quarter results at 8:00 a.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT (11:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ) today. The web cast, slide presentation, and historical, quarterly results can be accessed at www.delmonte.com/company/investors. The web cast and slide presentation will be available online following the presentation. This press release contains 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. conveying management's expectations as to the future based on plans, estimates and projections at the time the Company makes the statements. Forward-looking statements involve inherent risks and uncertainties and the Company cautions you that a number of important factors could cause actual results to differ materially from those contained in any such forward-looking statement. The forward-looking statements contained in this press release include statements related to future financial operating results and business plans. Factors that could cause actual results to differ materially from those described in this press release include, among others: general economic and business conditions; cost and availability of commodities, ingredients and other raw materials, including without limitation, steel, grains, meat by-products Meat by-products are ground and cleaned slaughtered meat carcass parts such as necks, feet, undeveloped eggs, bones, heads, and intestines (and a small amount of feathers in the case of chicken meat). , tuna and energy; ability to increase prices and reduce costs; high leverage and ability to service and reduce our debt; costs and results of efforts to improve the performance and market share of the businesses we acquired from Heinz; effectiveness of marketing and trade promotion programs; changing consumer and pet preferences; timely launch and market acceptance of new products; implementation of our trade promotion spending improvement project and of our distribution network improvement project; competition, including pricing and promotional spending levels by competitors; transportation costs; insurance coverage; product liability claims; weather conditions; crop yields; changes in U.S., foreign or local tax laws and rates; foreign currency exchange and interest rate fluctuations; the loss of significant customers or a substantial reduction in orders from these customers; acquisitions, including identification of appropriate targets and successful integration of any acquired business; changes in business strategy or development plans; availability, terms and deployment of capital; dependence on co-packers, some of whom may be competitors or sole-source suppliers; changes in, or the failure or inability to comply with, U.S., foreign and local governmental regulations, including environmental regulations; industry trends, including changes in buying, inventory and other business practices by customers; public safety and health issues; and other factors. These factors and other risks and uncertainties are described in more detail, from time to time, in the Company's filings with the Securities and Exchange Commission, including its annual report on 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 fiscal year ended May 2, 2004. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . The Company does not undertake to update any of these statements in light of new information or future events.
DEL MONTE FOODS COMPANY
Condensed Consolidated Statements of Income
(In millions, except share and per share data)
Three Months Ended
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August 1, July 27,
2004 2003
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Net sales $626.0 $611.3
Cost of products sold 479.2 456.6
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Gross profit 146.8 154.7
Selling, general and administrative expense 106.3 103.2
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Operating income 40.5 51.5
Interest expense 24.6 30.0
Other expense 2.0 0.8
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Income from continuing operations before
income taxes 13.9 20.7
Provision for income taxes 5.3 7.2
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Income from continuing operations 8.6 13.5
Income (loss) from discontinued
operations before income taxes (0.1) 1.8
Income taxes - 1.0
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Income (loss) from discontinued
operations (0.1) 0.8
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Net income $8.5 $14.3
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Earnings per common share
Basic:
Basic Average Shares 209,814,652 209,367,865
EPS - Continuing operations $0.04 $0.07
EPS - Discontinued operations - -
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EPS - Total $0.04 $0.07
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Diluted:
Diluted Average Shares 211,860,255 210,574,944
EPS - Continuing operations $0.04 $0.07
EPS - Discontinued operations - -
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EPS - Total $0.04 $0.07
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Del Monte Foods Company - Selected Financial Results
Selected Balance Sheet Data
(In millions)
August 1, 2004 May 2, 2004
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Cash and cash equivalents $5.3 $36.3
Trade accounts receivable, net of
allowance 187.8 222.3
Inventories 1,035.1 823.5
Total assets 3,583.9 3,459.7
Accounts payable and accrued expenses 454.5 427.2
Short-term borrowings 88.5 0.8
Long-term debt, including current portion 1,373.9 1,375.8
Stockholders' equity 1,141.1 1,128.9
Selected Cash Flow Data
(In millions)
Three Months Ended
August 1, July 27,
2004 2003
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Net cash used in operating activities $(104.1) $(43.3)
Net cash used in investing activities (14.4) (21.1)
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Total (118.5) (64.4)
Net cash provided by financing activities 86.8 33.2
Depreciation and amortization 22.4 21.3
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