Vlasic Foods International (NYSE: VL) today announced its fiscal 2000 fourth quarter and year-end results for the period ending July 30, 2000. The Company said that its strategic review process, which it is implementing together with Lazard Freres, is progressing and continues to be on schedule. The Company also said that its introduction of new and improved products in its “Swanson” frozen foods, “Vlasic” condiments and “Open Pit” barbecue sauce businesses were on-track for success in fiscal year 2001.
Vlasic Foods reported fourth quarter sales of $206 million, compared to $275 million a year ago. Excluding sales from divested businesses, sales a year ago were $235 million. For the year, sales were $902 million, versus $967 million a year ago, excluding the impact of divested businesses. Reported sales in the prior year were $1.188 billion.
Go deeper with GlobalData
As expected, earnings before interest and taxes (operating earnings) for the fourth quarter were break even. Net earnings from continuing operations for the quarter showed a loss of $11 million, or $0.24 per share versus earnings of $1.5 million, or $0.03 per share a year ago as the Company focussed on cash generation. Net loss for the year was $30.1 million or a loss of $0.66 per share. In the prior year the net loss was $126.3 million or $2.78 per share. The prior year included special charges, principally related to the divestiture of Swift-Armour, totaling $140.5 million or $3.09 per share.
During the fourth quarter, the Company and its senior credit facility bank syndicate reached an agreement to extend its existing waiver of certain covenants of that facility through February 28, 2001.
The Company made significant progress during the quarter on several new and improved product introductions, including: two additional varieties in its successful line of “Swanson” Potato Topped Pot Pies; a new six-item line of “Vlasic” peppers; and a new premium line of “Open Pit Grill Classics” barbecue sauces. Customer acceptance for each of these initiatives has already reached more than 80 percent of their targeted goals for the year.
Forward Looking Statement
This release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company believes the assumptions underlying the forward-looking statements, including those relating to new products, consumption patterns, marketing strategies, and the strategic review process are reasonable. However, any of the assumptions could be inaccurate, and therefore there can be no assurance that the forward-looking statements contained in this release will prove to be accurate.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataAdditional information that could cause actual results to vary materially from the results anticipated may be found in the Company’s most recent Form 10-K and other reports filed with the Securities Exchange Commission. Furthermore, the Company disclaims any obligation or intent to update any such factors or forward-looking statements to disclaim future events and developments.
VLASIC FOODS INTERNATIONAL
STATEMENTS OF EARNINGS
(in thousands, except per share amounts)
QUARTERS ENDED FISCAL YEARS ENDED
July 30, August 1, July 30, August 1,
2000 1999 * 2000 1999 *
Net sales $206,231 $275,124 $901,564 $1,188,271
Costs and expenses
Cost of products
sold 130,658 182,581 594,531 805,547
Marketing and selling
expenses 64,157 66,921 242,364 240,796
Administrative
expenses 11,380 12,436 48,110 56,950
Research and development
expenses 1,681 1,982 7,739 7,497
Other expense, net (745) 683 1,550 1,436
Special items (767) (1,271) (422) 132,314
Total costs and
expenses 206,364 263,332 893,872 1,244,540
Earnings (loss)
before interest
and taxes (133) 11,792 7,692 (56,269)
Interest expense, net 13,954 11,580 49,972 43,782
Earnings (loss)
before taxes (14,087) 212 (42,280) (100,051)
Taxes on earnings (3,148) (1,329) (13,641) 19,772
Earnings (loss) from
continuing
operations (10,939) 1,541 (28,639) (119,823)
Discontinued
operations
Earnings (loss)
from discontinued
operations,
net of tax -- (4,213) (6,699) (6,508)
Gain on sale of
discontinued
operations,
net of tax 705 -- 5,276 --
Net earnings (loss) $(10,234) $(2,672) $(30,062) $(126,331)
Earnings (loss) per
share - basic
Earnings (loss) from
continuing
operations $(0.24) $0.03 $(0.63) $(2.64)
Earnings (loss)
from discontinued
operations $ 0.02 $(0.09) $(0.03) $(0.14)
Net earnings (loss) $(0.22) $(0.06) $(0.66) $(2.78)
Weighted average
shares outstanding
- basic 45,502 45,500 45,502 45,500
Earnings (loss) per
share - assuming
dilution
Earnings (loss)
from continuing
operations $(0.24) $0.03 $(0.63) $(2.64)
Earnings (loss)
from discontinued
operations $ 0.02 $(0.09) $(0.03) $(0.14)
Net earnings (loss) $(0.22) $(0.06) $(0.66) $(2.78)
Weighted average
shares outstanding
- assuming dilution 45,502 ** 45,500 45,502 ** 45,500 **
* Prior year amounts have been restated as a result of discontinued
operations.
** Excludes potentially dilutive shares as the result would be
antidilutive.
VLASIC FOODS INTERNATIONAL
SCHEDULES OF SEGMENT INFORMATION (A)
(in thousands)
QUARTERS ENDED FISCAL YEARS ENDED
July 30, August 1, Percent July 30, August 1, Percent
2000 1999 Change 2000 1999 Change
Net Sales
Frozen Foods $84,989 $100,524 -15% $480,078 $506,927 -5%
Grocery
Products 93,227 98,103 -5% 287,274 303,524 -5%
United Kingdom
Operations 28,015 36,310 -23% 134,212 156,163 -14%
Divested
Businesses -- 40,187 NM -- 221,657 NM
Total $206,231 $275,124 -25% $901,564 $1,188,271 -24%
Earnings (Loss)
Before Interest
and Taxes from
Continuing
Operations (B)
Frozen Foods $(3,299) $1,184 -379% $10,719 $40,117 -73%
Grocery
Products 4,889 7,002 -30% 6,899 35,611 -81%
United Kingdom
Operations 47 (212) 122% (2,521) 6,122 -141%
Divested
Businesses 467 6,696 NM 1,622 (127,946) NM
Unallocated
Corporate
Expenses (2,237) (2,878) 22% (9,027) (10,173) 11%
Total $(133) $11,792 -101% $7,692 $(56,269) 114%
NM - percent change is not meaningful.
(A) In the second quarter of fiscal 2000, we restated our segment reporting structure as a result of the divestiture of three businesses and to align with changes to our internal structure. The Frozen Foods segment consists of Swanson frozen foods in the United States and Canada and contract manufacturing of primarily frozen foodservice products in the United States. The Grocery Products segment includes Vlasic retail and foodservice pickles and condiments and Open Pit barbecue sauce in the United States. The United Kingdom Operations segment includes Freshbake frozen foods and SonA and Rowats pickles, canned beans and vegetables in the United Kingdom. The Divested Businesses segment includes the aggregated results from the Kattus German gourmet foods distribution business and the Swift-Armour Argentine beef business. The Vlasic Fresh mushroom business has been classified as a discontinued operation and excluded from segment information. Prior year information has been reclassified to conform with the current year presentation.
(B) Contributions to earnings (loss) before interest and taxes from continuing operations included the following special items in fiscal 2000:
1) second quarter United States restructuring charge of $1.5 million of which $0.3 million was reversed in the fourth quarter,
2) second and fourth quarter benefit of $1.2 million and $0.1 million, respectively, relating to the sale of the Kattus business, and
3) fourth quarter benefit of $0.3 million relating to the divestiture of Swift-Armour.
Fiscal 1999 contributions to earnings (loss) before interest and taxes from continuing operations included the following:
1) third quarter benefit of $3.2 million resulting from the reversal of a restructuring charge that was completed,
2) second quarter benefit of $3.2 million related to the sale of the Kattus business,
3) third quarter charge of $140.0 million for the divestiture of Swift-Armour of which $2.3 million was reversed in the fourth quarter, and
4) fourth quarter $1.0 million restructuring charge for our United Kingdom business.
QUARTERS ENDED FISCAL YEARS ENDED
July 30, August 1, July 30, August 1,
2000 1999 2000 1999
Frozen Foods $(124) $-- $793 $--
Grocery Products (176) -- 407 (1,100)
United Kingdom
Operations -- 1,000 -- (1,115)
Divested Businesses (467) (2,271) (1,622) 134,529
Unallocated Corporate
Expenses -- -- -- --
Total $(767) $(1,271) $(422) $132,314
VLASIC FOODS INTERNATIONAL
SCHEDULES OF GEOGRAPHIC INFORMATION
(in thousands)
QUARTERS ENDED FISCAL YEARS ENDED
July 30, August 1, Percent July 30, August 1, Percent
2000 1999 Change 2000 1999 Change
Net Sales
United States $173,433 $190,873 -9% $742,558 $777,316 -4%
Europe and
Canada 32,798 41,942 -22% 159,006 225,915 -30%
South America -- 42,309 NM -- 185,040 NM
Total $206,231 $275,124 -25% $901,564 $1,188,271 -24%
Earnings (Loss) Before
Interest and Taxes
from Continuing
Operations (A)
United States $(765) $4,264 -118% $5,599 $61,833 -91%
Europe and
Canada 315 832 -62% 1,776 13,044 -86%
South America 317 6,696 NM 317 (131,146) NM
Total $(133) $11,792 -101% $7,692 $(56,269) 114%
NM - percent change is not meaningful.
(A) Contributions to earnings (loss) before interest and taxes from continuing operations included the following special items in fiscal 2000:
1) second quarter United States restructuring charge of $1.5 million of which $0.3 million was reversed in the fourth quarter,
2) second and fourth quarter benefit of $1.2 million and $0.1 million, respectively, relating to the sale of the Kattus business, and
3) fourth quarter benefit of $0.3 million relating to the divestiture of Swift-Armour.
Fiscal 1999 contributions to earnings (loss) before interest and taxes from continuing operations included the following:
1) third quarter benefit of $3.2 million resulting from the reversal of a restructuring charge that was completed,
2) second quarter benefit of $3.2 million related to the sale of the Kattus business,
3) third quarter charge of $140.0 million for the divestiture of Swift-Armour of which $2.3 million was reversed in the fourth quarter, and
4) fourth quarter $1.0 million restructuring charge for our United Kingdom business.
QUARTERS ENDED FISCAL YEARS ENDED
July 30, August 1, July 30, August 1,
2000 1999 2000 1999
United States $(300) $-- $1,200 $(1,100)
Europe and Canada (150) 1,000 (1,305) (4,315)
South America (317) (2,271) (317) 137,729
Total $(767) $(1,271) $(422) $132,314
VLASIC FOODS INTERNATIONAL
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
July 30, August 1,
2000 1999 *
Cash and cash equivalents $24,092 $11,316
Restricted cash 9,873 --
Other current assets 188,888 237,925
Plant assets, net 266,347 281,677
Net assets of discontinued operations -- 45,429
Other assets, principally intangibles, net 92,973 79,582
Total assets $582,173 $655,929
Notes payable $285,287 $146
Other current liabilities 111,668 144,487
Long-term debt 197,230 469,054
Nonpension postretirement benefits 36,072 35,921
Other liabilities 11,384 26,722
Shareowners' equity (deficit) (59,468) (20,401)
Total liabilities and
shareowners' equity (deficit) $582,173 $655,929
Total debt $482,517 $469,200
* Prior year amounts have been restated as a result of discontinued operations.
