Attached files
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8-K - FORM 8-K - CONAGRA BRANDS INC. | c61919e8vk.htm |
EX-99.1 - EX-99.1 - CONAGRA BRANDS INC. | c61919exv99w1.htm |
Exhibit 99.2
Q2 FY11 Question & Answer
Dec. 21, 2010
Dec. 21, 2010
1. | What were some examples of brands in the Consumer Foods segment posting sales growth for the quarter? |
- Crunch n Munch
|
- Rosarita | |
- DAVID
|
- Slim Jim | |
- Lightlife
|
- Wesson | |
- Marie Callenders
|
- Wolf | |
- PAM |
||
- Reddi-wip |
Sales for Healthy Choice and Ro*Tel were in line with last years sales for the quarter. | ||
2. | What were some examples of brands in the Consumer Foods segment posting sales declines for the quarter? |
- ACT II
|
- Hebrew National | - Orville Redenbachers | ||
- Andy Capps
|
- Hunts | - Parkay | ||
- Banquet
|
- Kid Cuisine | - Peter Pan | ||
- Blue Bonnet
|
- La Choy | - Snack Pack | ||
- Chef Boyardee
|
- Libbys | - Swiss Miss | ||
- Egg Beaters
|
- Manwich | - Van Camps |
3. | What were unit volume changes for the quarter in the Consumer Foods and Commercial Foods Segments? | |
Consumer Foods organic unit volume increased 1%. | ||
Commercial Foods volume increased 2%. |
4. | How much was total depreciation and amortization from continuing operations for the quarter? | |
Approximately $89 million (versus approximately $81 million in Q2 FY10) | ||
5. | How much were capital expenditures from continuing operations for the quarter? | |
Approximately $82 million (versus approximately $123 million in Q2 FY10) | ||
6. | What was the net interest expense for the quarter? | |
Approximately $34 million (versus approximately $41 million in Q2 FY10) |
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7. | What was corporate expense for the quarter? | |
Approximately $79 million for the quarter (versus approximately $94 million in Q2 FY10). The current quarter includes $9 million of benefit due to hedging activities. Prior-year amounts include $6 million of benefit. Excluding these amounts, corporate expense was $88 million for the current quarter and $100 million in the year-ago period. | ||
8. | How much did the company pay in dividends for the quarter? | |
Approximately $88 million (versus approximately $84 million in Q2 FY10) | ||
9. | How many shares of stock did the company repurchase during the quarter? | |
The company repurchased approximately 4.6 million shares during Q2 FY11. | ||
10. | What was the weighted average number of diluted shares outstanding for the quarter (rounded)? | |
Approximately 442 million shares for the quarter | ||
11. | What were the gross margins and operating margins for the quarter ($ amounts in millions, rounded)? |
Gross margin = segment gross profit* divided by net sales
Gross margin = $751/$3,161 = 24%
Operating margin = segment operating profit** divided by net sales
Operating margin = $410/$3,161 = 13%
* | Gross profit = net sales costs of goods sold ($3,161 $2,410 = $751) | |
** | See second-quarter segment operating results for a reconciliation of operating profit to income from continuing operations before income taxes and equity method investment earnings (loss). Income from continuing operations before income taxes and equity method investment earnings (loss), divided by net sales = $298/$3,161 = 9%. |
12. | What is included in the companys net debt at the end of the quarter (rounded, in millions)? |
Q2 FY11 | ||||
Total debt* |
$ | 3,237 | ||
Less: Cash on hand |
$ | 545 | ||
Net debt total |
$ | 2,692 |
* | Total debt = notes payable, short-term debt, long-term debt, and subordinated debt |
13. | What is the net debt to total capital ratio at quarter end? | |
The net debt to total capital ratio for the quarter was 35%. | ||
This ratio is defined as net debt divided by the sum of net debt plus shareholder equity. See question #12 for the components of net debt. |
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14. | What was the effective tax rate for the quarter? | |
The effective tax rate for continuing operations for the quarter was 34%. | ||
15. | What is the projected tax rate for FY11? | |
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. | ||
16. | What are the projected capital expenditures for FY11? | |
Total capital expenditures for FY11 are expected to be approximately $500 million, which will be partly offset by insurance proceeds related to the accident at the Garner, N.C. manufacturing facility. | ||
17. | What is the expected net interest expense for FY11? | |
Net interest expense is expected to be approximately $180 million. The previous estimate of approximately $140 million included interest income from the notes payable to the company related to the Trading & Merchandising divestiture; these notes have been repaid prior to their maturity dates, resulting in less interest income to the company. |
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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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