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8-K - FORM 8-K - CONAGRA BRANDS INC. | c61919e8vk.htm |
EX-99.2 - EX-99.2 - CONAGRA BRANDS INC. | c61919exv99w2.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
CONAGRA FOODS REPORTS FISCAL 2011 SECOND-QUARTER RESULTS; CONTINUES TO EXPECT STRONG OPERATING CASH FLOW AND LOW-SINGLE-DIGIT EPS GROWTH IN FISCAL 2011
Highlights:
| Diluted EPS from continuing operations of $0.45 as reported and adjusted for items impacting comparability; down 15% as reported and down 12% on a comparable basis. | ||
| Consumer Foods unit volumes and unit market share increased, but profits declined reflecting difficult market conditions, weaker-than-planned response to promotions, and inflation that outpaced cost savings. | ||
| Pricing and merchandising actions currently under way, strong productivity, lower SG&A, and accelerating contribution from innovation and recently acquired businesses are expected to improve the Consumer Foods segments results. | ||
| Commercial Foods sales increased. Operating profits declined, reflecting the margin impact of selling and processing last years high-cost, unusually poor-quality potato crop. The new, good-quality crop currently being processed positions the segment for improvement. | ||
| Fiscal 2011 diluted EPS adjusted for items impacting comparability expected to grow at a low-single-digit rate over comparable fiscal 2010 EPS (Fiscal 2010 EPS: $1.67 as reported, $1.74 comparable base). | ||
| As previously disclosed, after quarter-end, the company received $554 million in cash from repayment of notes receivable related to a divestiture in 2008. The Board of Directors increased the companys share repurchase authorization by this amount. |
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CONAGRA FOODS
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OMAHA, Neb., Dec. 21, 2010 ConAgra Foods, Inc., (NYSE: CAG) one of North Americas leading
packaged food companies, today reported results for the fiscal 2011 second quarter ended
November 28, 2010. Diluted EPS from continuing operations was $0.45 as reported and on a
comparable basis. For the same period a year ago, diluted EPS from continuing operations as
reported was $0.53, which included $0.02 of net benefit from items impacting comparability.
Items impacting comparability in the current year and prior year are summarized toward the end
of this release.
Gary Rodkin, ConAgra Foods chief executive officer, said, Several challenges impacted our
results. Difficult market conditions, weaker-than-planned consumer response to promotions, and
higher-than-planned inflation weighed on Consumer Foods profits despite progress in overall
unit market shares and volume. Profitability of our Commercial Foods segment was below
expectations primarily due to selling and processing last years
high-cost, unusually low-quality potato
crop. In aggregate, it was a challenging quarter.
He continued, Several factors are expected to improve year-over-year operating results in the
second half of the fiscal year, despite the challenging environment. Very importantly, we are
increasing net pricing on a number of our products given the ongoing acceleration of cost
inflation. Some price increases have recently been implemented, and more are under way. We
are confident that the net effect of these pricing increases will be positive, despite some
potential modest volume decline. Our products will continue to deliver outstanding value to
consumers even after these pricing actions. Price increases, along with strong cost savings,
lower SG&A, accelerating contribution from innovation and
recently acquired businesses, and a good-quality potato crop
currently being processed are expected to drive improved year-over-year earnings for the rest of the fiscal year. Although the challenging environment
is expected to cause this fiscal years anticipated EPS growth to be comparatively modest, the
operating foundation of the company continues to be strong, and we are confident in our
long-term EPS growth potential.
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CONAGRA FOODS
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Consumer Foods Segment (67% of second-quarter sales)
Branded and non-branded food sold in retail and foodservice channels.
Branded and non-branded food sold in retail and foodservice channels.
The Consumer Foods segment posted sales of $2,104 million and operating profit of $284 million
for the second quarter. Sales increased 1% as reported, reflecting a 1% organic volume
increase, 3% decline in overall price/mix, and 3% benefit from acquisitions (net of
divestitures). The companys all-outlet unit market share increased for the quarter, while
dollar share was largely unchanged in aggregate.
Sales results reflect difficult market conditions and a very competitive environment, which
necessitated increased promotional spending. Consumer response to promotions was
weaker-than-planned given the challenging economic conditions. The company noted strong sales
results for the segments frozen business and international markets. Sales for recently
acquired and recently introduced products performed well.
v | Brands posting sales growth for the quarter included DAVID, Marie Callenders, PAM, Reddi-wip, Slim Jim, Wesson, Wolf, and others. |
v | More brand details can be found in the Q&A document accompanying this release. |
v | Based on accelerating input cost inflation, the company is in the process of implementing pricing increases; despite some potential negative effect on volumes, the company expects the net impact of the pricing increases to improve fiscal 2011 second-half profitability. |
Operating profit of $284 million was 14% below $330 million in the year-ago period, as
reported. Adjusting for approximately $5 million of restructuring charges in current-quarter
results, the comparable year-over-year decline was 13%. The lower profitability reflects the
impact of unfavorable price/mix, largely due to promotional spending, as well as inflation that
outpaced cost savings. Cost savings during the quarter were in line with expectations, at
approximately $80 million, and the company expects to deliver in excess of $275 million of cost
savings this fiscal year, with strong savings in the second half.
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CONAGRA FOODS
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The company expects the segments year-over-year profit performance to improve in the second
half of the fiscal year given the price increases under way, strong cost savings, lower SG&A,
and accelerating contribution from innovation and recently acquired businesses.
Commercial Foods Segment (33% of second-quarter sales)
Specialty potato, milled grain products, and seasonings, blends, flavors sold to foodservice and commercial channels worldwide.
Specialty potato, milled grain products, and seasonings, blends, flavors sold to foodservice and commercial channels worldwide.
Sales for the Commercial Foods segment were $1,057 million, 3% above $1,022 million in the
year-ago period. The sales increase reflects improved volumes for Lamb Weston specialty potato
products, as well as higher selling prices for the flour milling operations necessitated by
higher wheat input costs.
Segment operating profit was $126 million, 16% below $151 million in the year-ago period. The
operating profit decline reflects weaker margins at Lamb Weston, primarily due to selling and
processing last years high-cost, unusually poor-quality potato crop. The company also
incurred start up costs at the new Delhi, La., sweet potato plant, which began operations
during the quarter. The company finished its inventory of the old potato crop, and began
processing this years new, good-quality potato crop this quarter; fiscal second-half profits
for the Lamb Weston specialty potato operations are on track for year-over-year improvement.
Although still strong, flour milling profits were down from last years high levels, as
expected. Profits for the seasonings, blends, and flavors operations were in line with
year-ago amounts, as planned.
Hedging Activities This language primarily relates to operations other than the
companys milling operations.
The company recorded $9 million of net hedging benefit within unallocated Corporate
expense in the current quarter, and $6 million of net hedging benefit within unallocated
Corporate expense in the year-ago period. The company identifies both of these amounts as
items impacting comparability. Those amounts are reclassified from unallocated Corporate
expense to the operating segments when the underlying commodity or foreign currency being
hedged is expensed in segment cost of goods sold.
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CONAGRA FOODS
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Other Items
| Corporate expense was $79 million for the quarter and $94 million in the year-ago period. Current-quarter amounts include $9 million due to hedge benefit, and prior-year amounts include $6 million of hedge benefit. Excluding these amounts, Corporate expense was $88 million for the current quarter and $100 million in the year-ago period; the decrease reflects lower incentive compensation expense. The company has maintained a strong focus on overhead cost control. Incentive compensation expense is expected to be lower year-over-year, which will favorably impact EPS growth. |
| Equity method investment earnings were $5 million in the current quarter and $6 million in the year-ago period. |
| Net interest expense was $34 million in the current quarter, compared with $41 million in the year-ago period; interest income from the notes receivable held in connection with the divestiture of the Trading & Merchandising operations benefited the current quarter and the year-ago period by $19 million and $20 million, respectively. The year-over-year decline reflects the repayment of debt earlier this fiscal year, and the benefit of interest rate swaps. |
| The effective tax rate for continuing operations for the quarter was approximately 34%. The company continues to expect the continuing operations effective tax rate for the full fiscal year 2011 to be approximately 34%, adjusted for items impacting comparability. |
Capital Items
| After quarter end, the company received $554 million in cash as payment in full of the principal and interest due on the two outstanding tranches of notes receivable related to the divestiture of the Trading & Merchandising operations in June 2008. The two tranches of notes had been scheduled to mature in June 2011 and June 2012. |
o | The Board of Directors increased the companys share repurchase authorization by the amount of the early payment, $554 million. | ||
o | Reflecting approximately $100 million of shares repurchased during the second quarter and the recent $554 million authorization increase, the remaining share repurchase authorization is |
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CONAGRA FOODS
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approximately $750 million. The company plans to complete its share repurchase program over the next several quarters, subject to market conditions. Repurchases may be completed through negotiated transactions or open market purchases. | |||
o | Given the expected timing of share repurchases, the EPS benefit of the share repurchases is not expected to totally offset the impact of foregone interest income in the second half of the fiscal year. The company therefore expects to have a negative impact of $0.03-$0.04 to EPS in the second half of fiscal 2011 due to these matters. The company does not expect any significant EPS impact in fiscal 2012 related to these capital allocation events. |
| Dividends for the quarter totaled $88 million versus $84 million for the year-ago period. |
| For the quarter, capital expenditures from continuing operations for property, plant, and equipment were $82 million, compared with $123 million in the year-ago period. Depreciation and amortization expense from continuing operations was approximately $89 million for the quarter; this compares with a total of $81 million in the year-ago period. |
Outlook for Fiscal 2011
The company expects fiscal 2011 full-year diluted EPS, adjusted for items impacting
comparability, to show a low-single-digit rate of growth over the comparable $1.74 earned in
fiscal 2010. This outlook reflects weaker-than-planned first-half EPS and the negative
earnings impact related to the early payment of notes receivable. The companys expectations
for improved operating results in the second half of the fiscal year are based on pricing
actions under way, strong cost savings, lower SG&A, accelerating contribution from innovation
and recently acquired businesses, as well as the benefit of a good-quality potato crop
already being processed at Lamb Weston. The company expects year-over-year EPS improvement in
the fiscal 2011 third and fourth quarters, with EPS amounts being higher in the fourth quarter
than in the third quarter largely due to the timing of price increases. The company expects
operating cash flow to be approximately $1.2 billion for the fiscal year.
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CONAGRA FOODS
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Major Items Impacting Second-quarter Fiscal 2011 EPS Comparability
Included in the $0.45 diluted EPS from continuing operations for the second quarter of fiscal
2011 (EPS amounts rounded and after tax):
| Approximately $0.01 per diluted share of net benefit, or $9 million pretax, related to the mark-to-market impact of derivatives used to hedge input costs, temporarily classified in unallocated Corporate expense. This will later be reclassified to the operating segments when underlying hedged items are expensed in segment cost of goods sold. |
| Approximately $0.01 per diluted share of expense, or $5 million pretax, related to restructuring plans; this expense is classified within the Consumer Foods segment ($4 million COGS, $1 million SG&A). |
Included in the $0.53 diluted EPS from continuing operations for the second quarter of fiscal
2010 (EPS amounts rounded and after tax):
| Approximately $0.02 per diluted share of net benefit from a lower-than-planned effective income tax rate. |
| Approximately $0.01 per diluted share of net benefit related to the mark-to-market impact of derivatives used to hedge input costs, temporarily classified in unallocated Corporate expense. This expense will later be reclassified to the operating segments when underlying hedged items are expensed in segment cost of goods sold. |
| NOTE: When reporting second quarter diluted EPS from continuing operations in fiscal 2010, there was $0.01 of EPS related to the Gilroy Foods & Flavors dehydrated vegetable operations within continuing operations. This business was subsequently divested, and the $0.01 of EPS is now included in discontinued operations. As a result of this reclassification, fiscal 2010 second quarter diluted EPS from continuing operations, excluding items impacting comparability, now rounds to $0.51 instead of the $0.52 as presented in the prior year. |
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CONAGRA FOODS
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Discussion of Results
ConAgra Foods will host a conference call at 9:30 a.m. EST today to discuss the results.
Following the companys remarks, the call will include a question-and-answer session
with the investment community. Domestic and international participants may access the
conference call toll-free by dialing 1-800-967-7141 and 1-719-457-2707, respectively.
No confirmation or pass code is needed. This conference call also can be accessed live
on the Internet at http://investor.conagrafoods.com.
A rebroadcast of the conference call will be available after 1 p.m. EST today. To
access the digital replay, a pass code number will be required. Domestic participants
should dial
1-888-203-1112, and international participants should dial 1-719-457-0820 and enter pass
code 8587409. A rebroadcast also will be available on the companys website.
In addition, the company has posted a question-and-answer supplement relating to this release
at http://investor.conagrafoods.com. To view recent company news, please visit
http://media.conagrafoods.com.
ConAgra Foods, Inc., (NYSE: CAG) is one of North Americas leading food companies, with brands
in 97 percent of Americas households. Consumers find Banquet, Chef Boyardee, Egg Beaters,
Healthy Choice, Hebrew National, Hunts, Marie Callenders, Orville Redenbachers, PAM, Peter
Pan, Reddi-wip, Slim Jim, Snack Pack and many other ConAgra Foods brands in grocery,
convenience, mass merchandise and club stores. ConAgra Foods also has a strong
business-to-business presence, supplying frozen potato and sweet potato products as well as
other vegetable, spice and grain products to a variety of well-known restaurants, foodservice
operators and commercial customers. For more information, please visit us at
www.conagrafoods.com.
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CONAGRA FOODS
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Note on Forward-looking Statements
This release contains forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are based on managements current views and
assumptions of future events and financial performance and are subject to uncertainty and
changes in circumstances. The company undertakes no responsibility for updating these
statements. Readers of this release should understand that these statements are not guarantees
of performance or results. Many factors could affect the companys actual financial results
and cause them to vary materially from the expectations contained in the forward-looking
statements. These factors include, among other things: availability and prices of raw
materials; the impact of the accident at the Garner, N.C., manufacturing facility, including
the ultimate costs incurred and the amounts received under insurance policies; the
effectiveness of its product pricing, including any price increases and promotions; future
economic circumstances; industry conditions; the companys ability to execute its operating
plans; the success of the companys innovation, marketing, and cost-saving initiatives; the
amount and timing of repurchases of the companys common stock, if any; the competitive
environment and related market conditions; operating efficiencies; the ultimate impact of the
companys product recalls; access to capital; actions of governments and regulatory factors
affecting the companys businesses, including the Patient Protection and Affordable Care Act;
and other risks described in the companys reports filed with the Securities and Exchange
Commission. The company cautions readers not to place undue reliance on any forward-looking
statements included in this release, which speak only as of the date of this release.
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CONAGRA FOODS
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Regulation G Disclosure
Below is a reconciliation of diluted earnings per share adjusted for items impacting comparability.
Q2 FY11 & Q2 FY10 Diluted EPS from Continuing Operations Reconciliation for Regulation G Purposes
Year- | ||||||||||||
over-year | ||||||||||||
Q2 FY11 | Q2 FY10 | % change | ||||||||||
Diluted EPS from continuing operations |
$ | 0.45 | $ | 0.53 | -15 | % | ||||||
Items impacting comparability: |
||||||||||||
Expense related to restructuring charges, principally Garner, N.C., and Edina, Minn. |
0.01 | | ||||||||||
(Benefit) related to unallocated mark-to-market impact of derivatives |
(0.01 | ) | (0.01 | ) | ||||||||
(Benefit) of lower-than-planned effective income tax rate |
| (0.02 | ) | |||||||||
Rounding |
| 0.01 | ||||||||||
Diluted EPS from continuing operations, excluding items impacting comparability |
$ | 0.45 | $ | 0.51 | -12 | % | ||||||
Diluted EPS from Gilroy Foods & Flavors operations, reclassified to discontinued
operations
in Q4 FY10, but part of the companys FY10 EPS guidance |
| 0.01 | ||||||||||
Diluted EPS adjusted for items impacting comparability |
$ | 0.45 | $ | 0.52 | -13 | % | ||||||
FY10 EPS Reconciliation for Regulation G Purposes
Total | ||||
FY10 | ||||
Diluted EPS from continuing operations |
$ | 1.67 | ||
Items impacting comparability: |
||||
Expense related to unallocated mark-to-market impact of derivatives (Q1) |
0.01 | |||
(Benefit) related to unallocated mark-to-market impact of derivatives (Q2) |
(0.01 | ) | ||
(Benefit)
related to gain on sale of Lucks brand (Q3) |
(0.02 | ) | ||
(Benefit) related to environmental liability estimates (Q3) |
(0.02 | ) | ||
(Benefit) of lower-than-planned effective income tax rate (Q2, Q3, Q4) |
(0.05 | ) | ||
Diluted EPS from Gilroy Foods & Flavors operations, reclassified to discontinued operations
in Q4 FY10, but part of the companys FY10 EPS guidance (Q4) |
0.04 | |||
Expense related to Garner, N.C., and Edina, Minn., restructuring charges (Q3, Q4) |
0.06 | |||
Expense related to impairment charge on an existing facility (Q4) |
0.05 | |||
Expense related to tax credit transaction related to Delhi, La., sweet potato facility (Q4) |
0.02 | |||
Rounding included in above items |
(0.01 | ) | ||
Diluted EPS adjusted for items impacting comparability |
$ | 1.74 | ||
Consumer Foods Segment
Below is a reconciliation of segment operating profit exclusive of items impacting comparability.
Consumer Foods Segment Operating Profit Reconciliation
(impacted by rounding)
(impacted by rounding)
Year- | ||||||||||||
over-year | ||||||||||||
(Dollars in millions) | Q2 FY11 | Q2 FY10 | % change | |||||||||
Consumer Foods Segment Operating Profit |
$ | 284 | $ | 330 | -14 | % | ||||||
Expense related to restructuring charges, principally Garner, N.C., and Edina, Minn. |
5 | | ||||||||||
Consumer Foods Segment Adjusted Operating Profit |
$ | 289 | $ | 330 | -13 | % | ||||||
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CONAGRA FOODS
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ConAgra Foods, Inc.
Segment Operating Results
(in millions)
(unaudited)
Segment Operating Results
(in millions)
(unaudited)
SECOND QUARTER | ||||||||||||
13 Weeks Ended | 13 Weeks Ended | |||||||||||
November 28, 2010 | November 29, 2009 | Percent Change | ||||||||||
SALES |
||||||||||||
Consumer Foods |
$ | 2,104.2 | $ | 2,078.1 | 1.3 | % | ||||||
Commercial Foods |
1,056.9 | 1,022.0 | 3.4 | % | ||||||||
Total |
3,161.1 | 3,100.1 | 2.0 | % | ||||||||
OPERATING PROFIT |
||||||||||||
Consumer Foods |
$ | 283.9 | $ | 330.0 | (14.0 | )% | ||||||
Commercial Foods |
126.3 | 151.0 | (16.4 | )% | ||||||||
Total operating profit for segments |
410.2 | 481.0 | (14.7 | )% | ||||||||
Reconciliation of total operating profit to
income from continuing operations before
income taxes and equity method investment
earnings |
||||||||||||
Items excluded from segment operating profit: |
||||||||||||
General corporate expense |
(78.5 | ) | (94.5 | ) | (16.9 | )% | ||||||
Interest expense, net |
(33.7 | ) | (40.5 | ) | (16.8 | )% | ||||||
Income from continuing operations before
income taxes and equity method investment
earnings |
$ | 298.0 | $ | 346.0 | (13.9 | )% | ||||||
Segment operating profit excludes general corporate expense, equity method investment
earnings, and net interest expense. Management believes such amounts are not directly
associated with segment performance results for the period. Management believes the
presentation of total operating profit for segments facilitates period-to-period
comparison of results of segment operations.
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CONAGRA FOODS
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ConAgra Foods, Inc.
Segment Operating Results
(in millions)
(unaudited)
Segment Operating Results
(in millions)
(unaudited)
SECOND QUARTER | ||||||||||||
26 Weeks Ended | 26 Weeks Ended | |||||||||||
November 28, 2010 | November 29, 2009 | Percent Change | ||||||||||
SALES |
||||||||||||
Consumer Foods |
$ | 3,928.4 | $ | 3,938.2 | (0.2 | )% | ||||||
Commercial Foods |
2,050.3 | 2,048.2 | 0.1 | % | ||||||||
Total |
5,978.7 | 5,986.4 | (0.1 | )% | ||||||||
OPERATING PROFIT |
||||||||||||
Consumer Foods |
$ | 497.9 | $ | 579.9 | (14.1 | )% | ||||||
Commercial Foods |
238.1 | 285.1 | (16.5 | )% | ||||||||
Total operating profit for segments |
736.0 | 865.0 | (14.9 | )% | ||||||||
Reconciliation of total operating profit to
income from continuing operations before
income taxes and equity method investment
earnings |
||||||||||||
Items excluded from segment operating profit: |
||||||||||||
General corporate expense |
(162.5 | ) | (194.2 | ) | (16.3 | )% | ||||||
Interest expense, net |
(71.0 | ) | (81.9 | ) | (13.3 | )% | ||||||
Income from continuing operations before
income taxes and equity method investment
earnings |
$ | 502.5 | $ | 588.9 | (14.7 | )% | ||||||
Segment operating profit excludes general corporate expense, equity method investment
earnings, and net interest expense. Management believes such amounts are not directly
associated with segment performance results for the period. Management believes the
presentation of total operating profit for segments facilitates period-to-period
comparison of results of segment operations.
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CONAGRA FOODS
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ConAgra Foods, Inc.
Consolidated Statements of Earnings
(in millions, except per share amounts)
(unaudited)
Consolidated Statements of Earnings
(in millions, except per share amounts)
(unaudited)
SECOND QUARTER | ||||||||||||
13 Weeks Ended | 13 Weeks Ended | Percent | ||||||||||
November 28, 2010 | November 29, 2009 | Change | ||||||||||
Net sales |
$ | 3,161.1 | $ | 3,100.1 | 2.0 | % | ||||||
Costs and expenses: |
||||||||||||
Cost of goods sold |
2,401.0 | 2,257.5 | 6.4 | % | ||||||||
Selling, general and administrative expenses |
428.4 | 456.1 | (6.1 | )% | ||||||||
Interest expense, net |
33.7 | 40.5 | (16.8 | )% | ||||||||
Income from continuing operations before
income taxes and equity method investment
earnings |
298.0 | 346.0 | (13.9 | )% | ||||||||
Income tax expense |
101.4 | 114.1 | (11.1 | )% | ||||||||
Equity method investment earnings |
4.6 | 5.9 | (22.0 | )% | ||||||||
Income from continuing operations |
201.2 | 237.8 | (15.4 | )% | ||||||||
Income from discontinued operations, net of tax |
0.6 | 1.4 | (57.1 | )% | ||||||||
Net income |
$ | 201.8 | $ | 239.2 | (15.6 | )% | ||||||
Less: Net income (loss) attributable to
noncontrolling interests |
0.9 | (0.5 | ) | N/A | ||||||||
Net income attributable to ConAgra Foods, Inc. |
$ | 200.9 | $ | 239.7 | (16.2 | )% | ||||||
Earnings per share basic |
||||||||||||
Income from continuing operations |
$ | 0.46 | $ | 0.54 | (14.8 | )% | ||||||
Income from discontinued operations |
| | | |||||||||
Net income |
$ | 0.46 | $ | 0.54 | (14.8 | )% | ||||||
Weighted average shares outstanding |
437.8 | 443.2 | (1.2 | )% | ||||||||
Earnings per share diluted |
||||||||||||
Income from continuing operations |
$ | 0.45 | $ | 0.53 | (15.1 | )% | ||||||
Income from discontinued operations |
| 0.01 | N/A | |||||||||
Net income |
$ | 0.45 | $ | 0.54 | (16.7 | )% | ||||||
Weighted average share and share equivalents
outstanding |
441.6 | 446.2 | (1.0 | )% | ||||||||
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CONAGRA FOODS
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ConAgra Foods, Inc.
Consolidated Statements of Earnings
(in millions, except per share amounts)
(unaudited)
Consolidated Statements of Earnings
(in millions, except per share amounts)
(unaudited)
SECOND QUARTER | ||||||||||||
26 Weeks Ended | 26 Weeks Ended | Percent | ||||||||||
November 28, 2010 | November 29, 2009 | Change | ||||||||||
Net sales |
$ | 5,978.7 | $ | 5,986.4 | (0.1 | )% | ||||||
Costs and expenses: |
||||||||||||
Cost of goods sold |
4,566.8 | 4,437.6 | 2.9 | % | ||||||||
Selling, general and administrative expenses |
838.4 | 878.0 | (4.5 | )% | ||||||||
Interest expense, net |
71.0 | 81.9 | (13.3 | )% | ||||||||
Income from continuing operations before
income taxes and equity method investment
earnings |
502.5 | 588.9 | (14.7 | )% | ||||||||
Income tax expense |
168.4 | 202.9 | (17.0 | )% | ||||||||
Equity method investment earnings |
10.8 | 14.8 | (27.0 | )% | ||||||||
Income from continuing operations |
344.9 | 400.8 | (13.9 | )% | ||||||||
Income from discontinued operations, net of tax |
3.2 | 3.6 | (11.1 | )% | ||||||||
Net income |
$ | 348.1 | $ | 404.4 | (13.9 | )% | ||||||
Less: Net income (loss) attributable to
noncontrolling interests |
0.8 | (1.2 | ) | N/A | ||||||||
Net income attributable to ConAgra Foods, Inc. |
$ | 347.3 | $ | 405.6 | (14.4 | )% | ||||||
Earnings per share basic |
||||||||||||
Income from continuing operations |
$ | 0.78 | $ | 0.91 | (14.3 | )% | ||||||
Income from discontinued operations |
| | | |||||||||
Net income |
$ | 0.78 | $ | 0.91 | (14.3 | )% | ||||||
Weighted average shares outstanding |
439.7 | 443.2 | (0.8 | )% | ||||||||
Earnings per share diluted |
||||||||||||
Income from continuing operations |
$ | 0.77 | $ | 0.90 | (14.4 | )% | ||||||
Income from discontinued operations |
0.01 | 0.01 | | |||||||||
Net income |
$ | 0.78 | $ | 0.91 | (14.3 | )% | ||||||
Weighted average share and share equivalents
outstanding |
443.8 | 445.8 | (0.4 | )% | ||||||||
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CONAGRA FOODS
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ConAgra Foods, Inc.
Consolidated Balance Sheets
(in millions)
(unaudited)
Consolidated Balance Sheets
(in millions)
(unaudited)
November 28, 2010 | May 30, 2010 | |||||||
ASSETS |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ | 545.2 | $ | 953.2 | ||||
Receivables, less allowance for doubtful accounts
of $7.6 and $8.5 |
902.5 | 849.6 | ||||||
Inventories |
1,974.3 | 1,606.5 | ||||||
Prepaid expenses and other current assets |
771.8 | 307.3 | ||||||
Current assets held for sale |
| 243.5 | ||||||
Total current assets |
4,193.8 | 3,960.1 | ||||||
Property, plant and equipment, net |
2,666.1 | 2,625.0 | ||||||
Goodwill |
3,606.9 | 3,552.1 | ||||||
Brands, trademarks and other intangibles, net |
932.7 | 874.8 | ||||||
Other assets |
204.0 | 695.6 | ||||||
Noncurrent assets held for sale |
| 30.4 | ||||||
$ | 11,603.5 | $ | 11,738.0 | |||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities |
||||||||
Notes payable |
$ | 0.6 | $ | 0.6 | ||||
Current installments of long-term debt |
356.1 | 260.2 | ||||||
Accounts payable |
1,122.8 | 919.1 | ||||||
Accrued payroll |
123.3 | 263.9 | ||||||
Other accrued liabilities |
677.2 | 579.0 | ||||||
Current liabilities held for sale |
| 13.4 | ||||||
Total current liabilities |
2,280.0 | 2,036.2 | ||||||
Senior long-term debt, excluding current installments |
2,684.0 | 3,030.5 | ||||||
Subordinated debt |
195.9 | 195.9 | ||||||
Other noncurrent liabilities |
1,491.9 | 1,541.3 | ||||||
Noncurrent liabilities held for sale |
| 5.2 | ||||||
Total stockholders equity |
4,951.7 | 4,928.9 | ||||||
$ | 11,603.5 | $ | 11,738.0 | |||||
-more-
CONAGRA FOODS
page 16
page 16
ConAgra Foods, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in millions)
(unaudited)
Condensed Consolidated Statements of Cash Flows
(in millions)
(unaudited)
Twenty-six weeks ended | ||||||||
November 28, | November 29, | |||||||
2010 | 2009 | |||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 348.1 | $ | 404.4 | ||||
Income from discontinued operations |
3.2 | 3.6 | ||||||
Income from continuing operations |
344.9 | 400.8 | ||||||
Adjustments to reconcile income from continuing operations to net cash flows
from operating activities: |
||||||||
Depreciation and amortization |
175.5 | 159.5 | ||||||
Impairment charges related to Garner accident |
| 19.6 | ||||||
Insurance recoveries recognized related to Garner accident |
(1.8 | ) | (41.0 | ) | ||||
Advances from insurance carriers related to Garner accident |
10.9 | 28.6 | ||||||
Proceeds from interest rate swap settlement |
31.5 | | ||||||
Loss on sale of fixed assets |
3.0 | 2.8 | ||||||
Distributions from affiliates greater (less) than current earnings |
(2.7 | ) | 3.4 | |||||
Contributions to pension plans |
(112.0 | ) | (17.1 | ) | ||||
Share-based payments expense |
22.7 | 26.7 | ||||||
Non-cash interest income on payment-in-kind notes |
(37.3 | ) | (39.8 | ) | ||||
Other items |
56.2 | 36.9 | ||||||
Change in operating assets and liabilities before effects of business
acquisitions and dispositions: |
||||||||
Accounts receivable |
(47.7 | ) | (71.7 | ) | ||||
Inventory |
(353.0 | ) | (109.4 | ) | ||||
Prepaid expenses and other current assets |
59.1 | 28.6 | ||||||
Accounts payable |
207.2 | 130.9 | ||||||
Accrued payroll |
(139.9 | ) | 16.3 | |||||
Other accrued liabilities |
99.3 | 109.4 | ||||||
Net cash flows from operating activities continuing operations |
315.9 | 684.5 | ||||||
Net cash flows from operating activities discontinued operations |
3.2 | (27.3 | ) | |||||
Net cash flows from operating activities |
319.1 | 657.2 | ||||||
Cash flows from investing activities: |
||||||||
Additions to property, plant and equipment |
(211.2 | ) | (239.8 | ) | ||||
Sale of property, plant and equipment |
1.5 | 2.3 | ||||||
Advances from insurance carriers related to Garner accident |
13.1 | 10.6 | ||||||
Purchase of businesses and intangible assets |
(136.0 | ) | (3.0 | ) | ||||
Net cash flows from investing activities continuing operations |
(332.6 | ) | (229.9 | ) | ||||
Net cash flows from investing activities discontinued operations |
245.7 | 4.3 | ||||||
Net cash flows from investing activities |
$ | (86.9 | ) | $ | (225.6 | ) | ||
-more-
CONAGRA FOODS
page 17
page 17
ConAgra Foods, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (continued)
(in millions)
(unaudited)
Condensed Consolidated Statements of Cash Flows (continued)
(in millions)
(unaudited)
Twenty-six weeks ended | ||||||||
November 28, | November 29, | |||||||
2010 | 2009 | |||||||
Cash flows from financing activities: |
||||||||
Repayment of long-term debt |
$ | (289.3 | ) | $ | (9.0 | ) | ||
Repurchase of ConAgra Foods common shares |
(200.0 | ) | | |||||
Cash dividends paid |
(176.4 | ) | (169.2 | ) | ||||
Exercise of stock options and issuance of other stock awards |
21.6 | (11.7 | ) | |||||
Other items |
(0.2 | ) | 1.4 | |||||
Net cash flows from financing activities continuing operations |
(644.3 | ) | (188.5 | ) | ||||
Net cash flows from financing activities discontinued operations |
(0.1 | ) | (0.4 | ) | ||||
Net cash flows from financing activities |
(644.4 | ) | (188.9 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents |
4.2 | 4.3 | ||||||
Net change in cash and cash equivalents |
(408.0 | ) | 247.0 | |||||
Cash and cash equivalents at beginning of period |
953.2 | 243.2 | ||||||
Cash and cash equivalents at end of period |
$ | 545.2 | $ | 490.2 | ||||
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