Fresh Del Monte Produce Inc. Reports First Quarter 2015 Financial Results
“We are pleased to report that we continued to make progress toward our long-term initiatives during the first quarter of 2015, with positive growth in our banana business, increased volume in several product lines in our other fresh produce business and strategic improvements in the prepared food business in Europe,” said
Net sales for the first quarter of 2015 were
Gross profit for the first quarter of 2015 was
Operating income for the first quarter of 2015 was
Net income for the first quarter of 2015 was
Condensed Consolidated Statements of Income | ||||||||
(U.S. dollars in millions, except share and per share data) - (Unaudited) | ||||||||
Quarter ended | ||||||||
Income Statement: |
|
|
||||||
Net sales | $ | 1,008.4 | $ | 982.3 | ||||
Cost of products sold | 907.7 | 875.6 | ||||||
Other charges (1) | 0.3 | — | ||||||
Gross profit | 100.4 | 106.7 | ||||||
Selling, general and administrative expenses | 43.9 | 43.7 | ||||||
Gain on disposal of property, plant and equipment | 1.2 | 0.1 | ||||||
Asset impairment and other charges (credits), net (1) | 1.4 | (2.1 | ) | |||||
Operating income | 56.3 | 65.2 | ||||||
Interest expense, net | 1.2 | 1.0 | ||||||
Other expense (income), net | 5.9 | (0.7 | ) | |||||
Income before income taxes | 49.2 | |||||||
Provision for income taxes | 5.0 | 6.0 | ||||||
Net income | $ | 44.2 | $ | 58.9 | ||||
Less: Net income attributable to noncontrolling interests | 1.7 | 0.3 | ||||||
Net income attributable to |
$ | 42.5 | $ | 58.6 | ||||
Net income per ordinary share attributable to | ||||||||
$ | 0.80 | $ | 1.04 | |||||
Net income per ordinary share attributable to | ||||||||
$ | 0.80 | $ | 1.04 | |||||
Dividends declared per ordinary share | $ | 0.125 | $ | 0.125 | ||||
Weighted average number of ordinary shares: | ||||||||
Basic | 53,007,473 | 56,180,800 | ||||||
Diluted | 53,409,613 | 56,506,491 | ||||||
Selected Income Statement Data: | ||||||||
Depreciation and amortization | $ | 18.1 | $ | 18.0 | ||||
Non-GAAP Measures (per share): | ||||||||
Reported net income - Diluted | $ | 0.80 | $ | 1.04 | ||||
Asset impairment and other charges (credits), net (1) | 0.03 | (0.04 | ) | |||||
Comparable net income - Diluted (2) | $ | 0.83 | $ | 1.00 | ||||
(1) Asset impairment and other charges (credits), net, for the first quarter 2015 relates principally to unfavorable weather conditions in
(2) Management reviews comparable operating income, comparable net income and comparable net income per share and considers these measures relevant to investors because management believes they better represent the underlying business trends and performance of the Company.
Business Segment Data | |||||||||||||||||||||
(U.S. dollars in millions) - (Unaudited) | |||||||||||||||||||||
Quarter ended | |||||||||||||||||||||
Segment Data: | |||||||||||||||||||||
Net Sales | Gross Profit | Net Sales | Gross Profit | ||||||||||||||||||
Banana | $ | 454.3 | 45% | $ | 36.1 | 36% | $ | 436.9 | 45% | $ | 31.0 | 29% | |||||||||
Other |
464.6 | 46% | 50.7 | 50% | 454.3 | 46% | 64.5 | 61% | |||||||||||||
Prepared Food | 89.5 | 9% | 13.6 | 14% | 91.1 | 9% | 11.2 | 10% | |||||||||||||
$ | 1,008.4 | 100% | $ | 100.4 | 100% | $ | 982.3 | 100% | $ | 106.7 | 100% | ||||||||||
Quarter ended | ||||||||||||
Net Sales by |
|
|
||||||||||
$ | 575.6 | 57% | $ | 546.6 | 56% | |||||||
178.9 | 18% | 184.4 | 19% | |||||||||
129.3 | 13% | 129.7 | 13% | |||||||||
100.1 | 10% | 98.3 | 10% | |||||||||
Other | 24.5 | 2% | 23.3 | 2% | ||||||||
$ | 1,008.4 | 100% | $ | 982.3 | 100% | |||||||
Condensed Consolidated Balance Sheets | ||||||
(U.S. dollars in millions) - (Unaudited) | ||||||
|
|
|||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 28.6 | $ | 34.1 | ||
Trade accounts receivable, net | 387.0 | 344.6 | ||||
Other accounts receivable, net | 75.5 | 69.0 | ||||
Inventories, net | 529.8 | 516.1 | ||||
Other current assets | 87.1 | 77.1 | ||||
Total current assets | 1,108.0 | 1,040.9 | ||||
Investment in and advances to unconsolidated companies | 2.0 | 2.0 | ||||
Property, plant and equipment, net | 1,170.8 | 1,170.2 | ||||
Goodwill | 330.0 | 330.5 | ||||
Other noncurrent assets | 132.6 | 131.7 | ||||
Total assets | $ | 2,743.4 | $ | 2,675.3 | ||
Liabilities and shareholders' equity | ||||||
Current liabilities: | ||||||
Accounts payable and accrued expenses | $ | 381.4 | $ | 382.1 | ||
Current portion of long-term debt and capital lease obligations | 2.6 | 2.2 | ||||
Other current liabilities | 29.1 | 25.1 | Total current liabilities | 413.1 | 409.4 | |
Long-term debt and capital lease obligations | 339.2 | 264.7 | ||||
Other noncurrent liabilities | 212.5 | 213.3 | ||||
Total liabilities | 964.8 | 887.4 | ||||
Total |
1,736.9 | 1,747.9 | ||||
Noncontrolling interests | 41.7 | 40.0 | ||||
Total shareholders' equity | 1,778.6 | 1,787.9 | ||||
Total liabilities and shareholders' equity | $ | 2,743.4 | $ | 2,675.3 | ||
Selected Balance Sheet Data: | ||||||
Working capital | $ | 694.9 | $ | 631.5 | ||
Total debt | $ | 341.8 | $ | 266.9 | ||
Condensed Consolidated Statements of Cash Flows | ||||||||
(U.S. dollars in millions) - (Unaudited) | ||||||||
Quarter ended | ||||||||
|
|
|||||||
Operating activities: | ||||||||
Net income | $ | 44.2 | $ | 58.9 | ||||
Adjustments to reconcile net income to net cash | ||||||||
provided by operating activities: | ||||||||
Depreciation and amortization | 18.1 | 18.0 | ||||||
Amortization of debt issuance costs | 0.1 | 0.1 | ||||||
Asset impairment, net | 1.4 | 0.3 | ||||||
Gain on sales of property, plant and equipment | (1.2 | ) | (0.1 | ) | ||||
Foreign currency translation adjustment | (4.1 | ) | 0.3 | |||||
Other changes | 3.0 | (2.9 | ) | |||||
Changes in operating assets and liabilities: | ||||||||
Receivables, net | (49.8 | ) | (46.6 | ) | ||||
Inventories, net | (16.9 | ) | (7.1 | ) | ||||
Other current assets | (0.1 | ) | 0.8 | |||||
Accounts payable and accrued expenses | 20.4 | 23.3 | ||||||
Other noncurrent assets and liabilities | (1.6 | ) | (5.1 | ) | ||||
Net cash provided by operating activities | 13.5 | 39.9 | ||||||
Investing activities: | ||||||||
Capital expenditures | (25.2 | ) | (50.7 | ) | ||||
Proceeds from sales of property, plant and equipment | 2.9 | 0.4 | ||||||
Net cash used in investing activities | (22.3 | ) | (50.3 | ) | ||||
Financing activities: | ||||||||
Net repayments on long-term debt | 74.2 | 30.5 | ||||||
Contributions from noncontrolling interests | — | (0.1 | ) | |||||
Proceeds from stock options exercised | 17.4 | 2.8 | ||||||
Excess tax benefit from stock-based compensation | 0.2 | — | ||||||
Dividends paid | (6.5 | ) | (7.1 | ) | ||||
Repurchase and retirement of ordinary shares | (84.8 | ) | (19.8 | ) | ||||
Net cash provided by financing activities | 0.5 | 6.3 | ||||||
Effect of exchange rate changes on cash | 2.8 | 0.2 | ||||||
Net decrease in cash and cash equivalents | (5.5 | ) | (3.9 | ) | ||||
Cash and cash equivalents, beginning | 34.1 | 42.5 | ||||||
Cash and cash equivalents, ending | $ | 28.6 | $ | 38.6 | ||||
First Quarter 2015 Business Segment Performance
(As reported in business segment data)
Bananas
Net sales for the quarter increased 4% to
Other
Net sales for the quarter increased 2% to
Gold pineapple - Net sales decreased 8% to
Fresh-cut - Net sales increased 8% to
Melon - Net sales were in line with the prior year period. Volume increased 11%. Pricing decreased 10%. Unit cost was 3% lower.
Non-tropical - Net sales increased 4% to
Tomato - Net sales increased 38% to
Prepared Food
Net sales for the quarter decreased 2% to
Cash Flows
Net cash provided by operating activities for the first three months of 2015 was
Total Debt
Total debt increased from
Conference Call and Web Cast Data
Fresh
About
Fresh
Forward-looking Information
This press release contains certain forward-looking statements regarding the intent, beliefs or current expectations of the Company or its officers with respect to the Company’s plans and future performance.These forward-looking statements are based on information currently available to the Company and the Company assumes no obligation to update these statements. It is important to note that these forward-looking statements are not guarantees of future performance and involve risks and uncertainties. In this press release, these statements appear in a number of places and include statements regarding the intent, belief or current expectations of the Company or its officers (including statements preceded by, followed by or that include the words “believes,” “expects,” “anticipates” or similar expressions).The Company’s plans and performance may differ materially from those in the forward-looking statements as a result of various factors, including (i) the uncertain global economic environment and the timing and strength of a recovery in the markets the Company serves, and the extent to which adverse economic conditions continue to affect its sales volume and results, including the Company’s ability to command premium prices for certain of its principal products, or increase competitive pressures within the industry, (ii) the impact of governmental initiatives in
Assistant Vice President, Investor Relations
Source:
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News