Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - CONAGRA BRANDS INC. | c65237e8vk.htm |
| EX-99.2 - EX-99.2 - CONAGRA BRANDS INC. | c65237exv99w2.htm |
Exhibit 99.1
|
News Release |
| For more information, contact: | ||
| Teresa Paulsen MEDIA | ||
| Vice President, Corporate Communication | ||
| ConAgra Foods, Inc. | ||
| tel: 402-240-5210 | ||
| Chris Klinefelter ANALYSTS | ||
| Vice President, Investor Relations | ||
| ConAgra Foods, Inc. | ||
| tel: 402-240-4154 | ||
| www.conagrafoods.com |
FOR IMMEDIATE RELEASE
CONAGRA FOODS REPORTS STRONG COMPARABLE FOURTH-QUARTER
EPS GROWTH AND STRONG FISCAL 2011 OPERATING CASH FLOWS
EPS GROWTH AND STRONG FISCAL 2011 OPERATING CASH FLOWS
Highlights (vs. year-ago period amounts where applicable):
| • | Fiscal 2011 fourth-quarter diluted EPS from continuing operations was $0.62 as reported and $0.47 adjusted for items impacting comparability, up 130% as reported and up 24% on a comparable basis. |
| • | The Consumer Foods segment continued to be challenged by difficult conditions in the quarter, but made progress with pricing actions, as price/mix contributed 2 points to the segment’s sales. Despite price increases and strong cost savings, the Consumer Foods segment’s profitability declined for the quarter on a comparable basis, reflecting the impact of 9% inflation in the segment’s cost of goods sold. |
| • | Commercial Foods’ operating profits increased 14% for the quarter due to Lamb Weston’s ongoing recovery and continued strong flour milling results. |
| • | Lower incentive compensation expense and recent share repurchases contributed to the quarter’s EPS results. |
| • | Full fiscal year 2011 diluted EPS from continuing operations was $1.90 as reported, and diluted EPS adjusted for items impacting comparability was $1.75. |
| • | Full fiscal year 2011 operating cash flow exceeded $1.3 billion, in line with targets. |
| • | The company currently expects fiscal 2012 diluted EPS, adjusted for items impacting comparability, to grow at a low- to mid-single-digit rate over the comparable base of $1.75 earned in fiscal 2011. |
OMAHA, Neb., June 23, 2011 — ConAgra Foods, Inc., (NYSE: CAG) one of North America’s leading
packaged food companies, today reported results for the fiscal 2011 fourth quarter, which ended
May 29, 2011. As reported, diluted EPS from continuing operations was $0.62, 130% above the
$0.27 earned in the year-ago period. Results include $0.15 of net benefit in the current
quarter
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CONAGRA FOODS
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and $0.11 of net expense in the year-ago period from items impacting comparability;
adjusting for those items, comparable diluted EPS from continuing operations of $0.47 in the
current quarter was 24% above the $0.38 earned a year ago. Items impacting comparability,
including those related to
business segment performance, for the current fiscal year and prior fiscal year are summarized
toward the end of this release and reconciled for Regulation G purposes on page 9.
Gary Rodkin, ConAgra Foods’ chief executive officer, said, “Overall marketplace and economic
conditions remain challenging, as our Consumer Foods segment incurred 9% cost inflation this
quarter. We are, however, demonstrating progress in some key areas of our business. Net
pricing has begun to improve in Consumer Foods sales, cost savings are on track, and Lamb
Weston and flour milling operations are delivering stronger results for our Commercial Foods
segment. High input costs and difficult economic conditions are expected to continue to create
challenges in fiscal 2012; additional pricing actions are under way, and productivity
initiatives should continue to be strong. Despite the challenging circumstances, we expect our
overall fiscal 2012 to show low- to mid-single digit EPS growth, adjusted for items impacting
comparability; we remain committed to our long-term EPS growth goal of 6-8% annually.”
Consumer Foods Segment (63% of fourth-quarter sales)
Branded and non-branded food sold in retail and foodservice channels.
The Consumer Foods segment posted sales of $2,027 million and operating profit of $367 million
for the fourth quarter. Sales increased slightly as reported, reflecting favorable price/mix
of 2%, approximately 2% benefit from acquisitions (net of divestitures), and an organic volume
decline of 3%. The volume decline reflects difficult market conditions, including soft demand
and the impact of price increases necessitated by high input costs. Net prices have increased
for key areas of the portfolio, including cooking oil-related products, frozen foods, and
snacks. Additional net pricing increases have been implemented early in fiscal 2012, and the
company will continue taking responsible pricing actions as market conditions require.
| • | Brands posting sales growth for the quarter included Hebrew National, Marie Callender’s, Peter Pan, Reddi-wip, Ro*Tel, Slim Jim, Wesson, and others. |
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| • | More brand details can be found in the Q&A document accompanying this release. |
Operating profit of $367 million was 63% above the $226 million in the year-ago period, as
reported. Current-quarter operating profit includes $95 million of net benefit from items
impacting comparability, the largest component of which is an insurance-related gain;
prior-year amounts include $69 million of net expense from items impacting comparability.
Adjusting for those amounts, comparable current-quarter operating profit of $273 million was 7%
below prior-year comparable operating profit of $295 million. The comparable profit decline
reflects very high input cost inflation, which approximated 9% of cost of goods sold; inflation
was partially offset by pricing actions, as discussed above, as well as strong supply chain
savings, lower advertising and promotion expense, and lower incentive compensation expense.
Commercial Foods Segment (37% of fourth-quarter sales)
Specialty potato, sweet potato, milled grain products, and seasonings, blends, and flavors sold
to
foodservice and commercial channels worldwide.
foodservice and commercial channels worldwide.
Sales for the Commercial Foods segment were $1,183 million, 15% above year-ago amounts. The
sales increase reflects higher flour milling prices given higher wheat costs, as well as
improved volumes for Lamb Weston specialty potato products and price increases necessitated by
high input costs.
Segment operating profit was $127 million, 14% above year-ago amounts. Lamb Weston
profitability improved significantly due to higher volumes and ongoing pricing initiatives, as
well as operating efficiencies resulting from improved crop quality. Lamb Weston profitability
also benefitted from good volume growth for sweet potato products and other favorable product
mix. Flour milling profits increased from year-ago amounts due to favorable market conditions
and effective commodity management in a very volatile wheat market.
Capital and Other Items
| • | Corporate expense was $58 million for the quarter and $124 million in the year-ago period. Current-quarter amounts include $7 million of net hedging benefit, and prior-year amounts |
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| include $18 million of expense from other items impacting comparability. Excluding these amounts, Corporate expense was $66 million for the current quarter and $106 million in the year-ago period; the decrease largely reflects lower incentive compensation expense, and, to a lesser extent, other benefits from ongoing cost reduction efforts. |
| • | Net interest expense was $55 million in the current quarter, compared with $39 million in the year-ago period. The increase is due primarily to a former debtor’s repayment in full of the payment-in-kind notes receivable related to the divestiture of the Trading & Merchandising operations, and thus the company no longer receives interest income from those notes. Prior-year amounts included $22 million of income from those notes. |
| • | The company repurchased approximately $138 million, or approximately 6 million shares, of its common stock during the quarter. The company has approximately $125 million remaining on its existing share repurchase authorization. |
| • | Equity method investment earnings were $9 million in the current quarter and $4 million in the year-ago period. |
| • | The effective tax rate for continuing operations for the quarter was approximately 33%. |
| • | For the quarter, capital expenditures from continuing operations for property, plant, and equipment were $119 million, compared with $123 million in the year-ago period. Depreciation and amortization expense from continuing operations was approximately $97 million for the quarter; this compares with a total of $85 million in the year-ago period. |
| • | Dividends for the quarter totaled $98 million versus $89 million for the year-ago period, reflecting an increase in the dividend rate earlier this fiscal year, which was partially offset by the impact of fewer shares outstanding. |
| • | The company settled its property and business interruption claims related to the June 2009 Garner, N.C., event. In connection with this settlement, the company recorded a pretax gain of approximately $105 million in the fourth quarter, which has been classified as an item impacting comparability in the Consumer Foods results. |
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| • | During the quarter, the company sold its frozen handheld operations, which generated approximately $50 million in net sales in fiscal 2011. The results of those operations, which were not material, have been reclassified to discontinued operations for all periods presented. |
| • | Subsequent to quarter end, the company purchased the Marie Callender’s brand trademarks from Marie Callender Pie Shops, Inc., for approximately $58 million. |
Outlook
The company expects fiscal 2012 EPS, adjusted for items impacting comparability, to grow at a
low- to mid-single-digit rate over the comparable fiscal 2011 diluted EPS base of $1.75. The
outlook reflects pricing actions under way in both segments and the expected benefit of
productivity programs, along with an estimated 7-8% inflation in the Consumer Foods segment and
increased pension expense. Given the timing of inflation and pricing, the company expects the
fiscal 2012 EPS growth to be concentrated in the second half of the fiscal year, and for the
fiscal 2012 first quarter EPS to be below the comparable $0.34 earned in the first quarter of
fiscal 2011.
The company’s long-term EPS growth target remains 6-8% annually, adjusted for items impacting
comparability.
Major Items Impacting Fourth-quarter Fiscal 2011 EPS Comparability
Included in the $0.62 diluted EPS from continuing operations for the fourth quarter of fiscal
2011 (EPS amounts rounded and after tax):
| • | Approximately $0.16 per diluted share of gain, or $105 million pretax, resulting from an insurance settlement related to the Garner, N.C., event that occurred in 2009. This is classified as a reduction of selling, general, and administrative (SG&A) expense within the Consumer Foods segment. |
| • | Restructuring charges of approximately $0.02 per share, or $11 million pretax, classified as $9 million of cost of goods sold and $2 million of SG&A within the Consumer Foods segment. These charges relate to the company’s decision to move manufacturing activities for efficiency purposes, as well as other plans to optimize manufacturing and distribution networks. |
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| • | Approximately $0.01 per diluted share of net benefit, or $7 million pretax, related to the mark-to-market impact of derivatives used to hedge input costs, temporarily classified in unallocated Corporate expense. These amounts will later be reclassified to the operating segments when underlying hedged items are expensed in cost of goods sold. |
Included in the $0.27 diluted EPS from continuing operations for the fourth quarter of fiscal
2010 (EPS amounts rounded and after tax):
| • | Approximately $0.05 per diluted share of restructuring expense resulting primarily from the company’s decision to move manufacturing activities in Garner, N.C., to Troy, Ohio, as well as the company’s decision to move administrative functions in Edina, Minn., to Naperville, Ill. Pretax costs of $39 million are classified as $3 million of cost of goods sold and $32 million of SG&A expense within the Consumer Foods segment, and $4 million of SG&A expense classified within unallocated Corporate expense. |
| • | Approximately $0.05 per diluted share of impairment charges in the Consumer Foods segment resulting from an updated assessment of manufacturing strategies and the related impact on an existing facility. The $33 million of pretax impairment charge is classified as SG&A. |
| • | Approximately $0.02 per diluted share of expense, or $14 million of pretax transaction-related costs associated with securing federal tax benefits related to the Delhi, La., sweet potato project. |
| • | Approximately $0.01 per diluted share of net income tax benefits resulting in a lower-than-planned effective income tax rate. |
| • | NOTE: Gilroy Foods & Flavors’ dehydrated vegetable operations generated approximately $0.01 of EPS in the fourth quarter of fiscal 2010. Given the divestiture of those operations, the $0.01 of EPS is classified as discontinued operations. While not included in EPS from continuing operations, the $0.01 is included in the comparable EPS base for fiscal 2010 because those earnings were included in guidance for that year. |
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Discussion of Results
ConAgra Foods will host a conference call at 9:30 a.m. EDT today to discuss the results.
Following the company’s 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 1-877-627-6590 and 1-719-325-4756, 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. EDT 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 1850452. A rebroadcast also will be available on the company’s 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 America’s leading food companies, with brands
in 97 percent of America’s households. Consumers find Banquet, Chef Boyardee, Egg Beaters,
Healthy Choice, Hebrew National, Hunt’s, Marie Callender’s, Orville Redenbacher’s, 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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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 management’s 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 company’s 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, including the impact of inflation; the impact of the 2009 accident at the Garner,
N.C., manufacturing facility, including the ultimate costs incurred versus the amounts received
under insurance policies; the effectiveness of its product pricing, including the ability of
the company to timely increase prices; future economic circumstances; industry conditions; the
company’s ability to execute its operating and network optimization plans; the success of the
company’s innovation, marketing, and cost-saving initiatives; the amount and timing of
repurchases of the company’s common stock, if any; the competitive environment and related
market conditions; operating efficiencies; the ultimate impact of the company’s product
recalls; access to capital; actions of governments and regulatory factors affecting the
company’s businesses, including the Patient Protection and Affordable Care Act; and other risks
described in the company’s 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.
Q4 FY11 & Q4 FY10 Diluted EPS from Continuing Operations — Reconciliation for Regulation G Purposes
| Percent | ||||||||||||
| Q4 FY11 | Q4 FY10 | Change | ||||||||||
Diluted EPS from continuing operations |
$ | 0.62 | $ | 0.27 | 130 | % | ||||||
Items impacting comparability: |
||||||||||||
Expense related to restructuring charges |
0.02 | 0.05 | ||||||||||
(Benefit) related to unallocated mark-to-market impact of derivatives |
(0.01 | ) | — | |||||||||
(Benefit) related to receipt of insurance proceeds from Garner, N.C., accident |
(0.16 | ) | — | |||||||||
Expense related to asset impairment charges |
— | 0.05 | ||||||||||
Expense related to tax credit transaction related to Delhi, LA sweet potato facility |
— | 0.02 | ||||||||||
(Benefit) of lower-than-planned effective income tax rate |
— | (0.01 | ) | |||||||||
Diluted EPS from continuing operations, adjusted for items impacting comparability |
$ | 0.47 | $ | 0.38 | 24 | % | ||||||
Diluted EPS from Gilroy Foods & Flavors operations, reclassified to discontinued operations in
Q4 FY10, but part of the company’s FY10 EPS guidance |
— | 0.01 | ||||||||||
Diluted EPS adjusted for items impacting comparability |
$ | 0.47 | $ | 0.39 | 21 | % | ||||||
Consumer Foods Segment Operating Profit — Reconciliation for Regulation G Purposes
Below is a reconciliation of segment operating profit adjusted for items impacting comparability.
| (Dollars in millions) | Percent | |||||||||||
| Q4 FY11 | Q4 FY10 | Change | ||||||||||
Consumer Foods Segment Operating Profit |
$ | 367 | $ | 226 | 63 | % | ||||||
Expense related to restructuring charges |
11 | 36 | ||||||||||
(Benefit) related to receipt of insurance proceeds from Garner, N.C., accident |
(105 | ) | — | |||||||||
Expense related to asset impairment charges |
— | 33 | ||||||||||
Consumer Foods Segment Adjusted Operating Profit |
$ | 273 | $ | 295 | -7 | % | ||||||
FY11 EPS — Reconciliation for Regulation G Purposes
Below is a reconciliation of diluted earnings per share adjusted for items impacting comparability.
| Total | ||||
| FY11 | ||||
Diluted EPS from continuing operations |
$ | 1.90 | ||
Items impacting comparability: |
||||
Expense related to restructuring charges |
0.08 | |||
(Benefit) related to unallocated mark-to-market impact of derivatives |
(0.05 | ) | ||
(Benefit) related to receipt of insurance proceeds from Garner, N.C., accident |
(0.15 | ) | ||
(Benefit) of gain on early repayment of Trading & Merchandising divestiture-related PIK note |
(0.04 | ) | ||
Rounding |
0.01 | |||
Diluted EPS adjusted for items impacting comparability |
$ | 1.75 | ||
Q1 FY11 Diluted EPS from Continuing Operations — Reconciliation for Regulation G Purposes
Below is a reconciliation of diluted earnings per share adjusted for items impacting comparability.
| Q1 FY11 | ||||
Diluted EPS from continuing operations |
$ | 0.32 | ||
Items impacting comparability: |
||||
Expense related to Garner, N.C., and Edina, Minn., restructuring charges |
0.01 | |||
Net expense related to unallocated mark-to-market impact of derivatives |
0.01 | |||
Diluted EPS adjusted for items impacting comparability |
$ | 0.34 | ||
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ConAgra Foods, Inc.
Segment Operating Results
(in millions)
(unaudited)
Segment Operating Results
(in millions)
(unaudited)
| FOURTH QUARTER | ||||||||||||
| 13 Weeks Ended | 13 Weeks Ended | |||||||||||
| May 29, 2011 | May 30, 2010 | Percent Change | ||||||||||
SALES
|
||||||||||||
Consumer Foods |
$ | 2,026.9 | $ | 2,014.9 | 0.6 | % | ||||||
Commercial Foods |
1,183.1 | 1,032.6 | 14.6 | % | ||||||||
Total |
3,210.0 | 3,047.5 | 5.3 | % | ||||||||
OPERATING PROFIT |
||||||||||||
Consumer Foods |
$ | 367.3 | $ | 225.8 | 62.7 | % | ||||||
Commercial Foods |
127.3 | 111.3 | 14.4 | % | ||||||||
Total operating profit for segments |
494.6 | 337.1 | 46.7 | % | ||||||||
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 |
(58.4 | ) | (123.8 | ) | (52.8 | )% | ||||||
Interest expense, net |
(54.9 | ) | (38.8 | ) | 41.5 | % | ||||||
Income from continuing operations before
income taxes and equity method investment
earnings |
$ | 381.3 | $ | 174.5 | 118.5 | % | ||||||
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, Inc.
Segment Operating Results
(in millions)
(unaudited)
Segment Operating Results
(in millions)
(unaudited)
| FULL FISCAL YEAR | ||||||||||||
| 52 Weeks Ended | 52 Weeks Ended | |||||||||||
| May 29, 2011 | May 30, 2010 | Percent Change | ||||||||||
SALES |
||||||||||||
Consumer Foods |
$ | 8,002.0 | $ | 7,939.7 | 0.8 | % | ||||||
Commercial Foods |
4,301.1 | 4,075.2 | 5.5 | % | ||||||||
Total |
12,303.1 | 12,014.9 | 2.4 | % | ||||||||
OPERATING PROFIT |
||||||||||||
Consumer Foods |
$ | 1,144.3 | $ | 1,109.6 | 3.1 | % | ||||||
Commercial Foods |
504.6 | 538.6 | (6.3 | )% | ||||||||
Total operating profit for segments |
1,648.9 | 1,648.2 | — | % | ||||||||
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 |
(246.5 | ) | (406.4 | ) | (39.3 | )% | ||||||
Interest expense, net |
(177.5 | ) | (160.4 | ) | 10.7 | % | ||||||
Income from continuing operations before
income taxes and equity method investment
earnings |
$ | 1,224.9 | $ | 1,081.4 | 13.3 | % | ||||||
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, Inc.
Consolidated Statements of Earnings
(in millions, except per share amounts)
(unaudited)
Consolidated Statements of Earnings
(in millions, except per share amounts)
(unaudited)
| FOURTH QUARTER | ||||||||||||
| 13 Weeks Ended | 13 Weeks Ended | Percent | ||||||||||
| May 29, 2011 | May 30, 2010 | Change | ||||||||||
Net sales |
$ | 3,210.0 | $ | 3,047.5 | 5.3 | % | ||||||
Costs and expenses: |
||||||||||||
Cost of goods sold |
2,505.1 | 2,310.5 | 8.4 | % | ||||||||
Selling, general and administrative expenses |
268.7 | 523.7 | (48.7 | )% | ||||||||
Interest expense, net |
54.9 | 38.8 | 41.5 | % | ||||||||
Income from continuing operations before
income taxes and equity method investment
earnings |
381.3 | 174.5 | 118.5 | % | ||||||||
Income tax expense |
130.2 | 56.4 | 130.9 | % | ||||||||
Equity method investment earnings |
9.0 | 4.4 | 104.5 | % | ||||||||
Income from continuing operations |
260.1 | 122.5 | 112.3 | % | ||||||||
Loss from discontinued operations, net of tax |
(4.5 | ) | (32.3 | ) | (86.1 | )% | ||||||
Net income |
$ | 255.6 | $ | 90.2 | 183.4 | % | ||||||
Less: Net income (loss) attributable to
noncontrolling interests |
0.7 | (0.4 | ) | N/A | ||||||||
Net income attributable to ConAgra Foods, Inc. |
$ | 254.9 | $ | 90.6 | 181.3 | % | ||||||
Earnings per share — basic |
||||||||||||
Income from continuing operations |
$ | 0.63 | $ | 0.28 | 125.0 | % | ||||||
Loss from discontinued operations |
(0.01 | ) | (0.08 | ) | (87.5 | )% | ||||||
Net income attributable to ConAgra Foods, Inc. |
$ | 0.62 | $ | 0.20 | 210.0 | % | ||||||
Weighted average shares outstanding |
411.4 | 444.0 | (7.3 | )% | ||||||||
Earnings per share — diluted |
||||||||||||
Income from continuing operations |
$ | 0.62 | $ | 0.27 | 129.6 | % | ||||||
Loss from discontinued operations |
(0.01 | ) | (0.07 | ) | (85.7 | )% | ||||||
Net income attributable to ConAgra Foods, Inc. |
$ | 0.61 | $ | 0.20 | 205.0 | % | ||||||
Weighted average share and share equivalents
outstanding |
416.9 | 449.4 | (7.2 | )% | ||||||||
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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)
| FULL FISCAL YEAR | ||||||||||||
| 52 Weeks Ended | 52 Weeks Ended | Percent | ||||||||||
| May 29, 2011 | May 30, 2010 | Change | ||||||||||
Net sales |
$ | 12,303.1 | $ | 12,014.9 | 2.4 | % | ||||||
Costs and expenses: |
||||||||||||
Cost of goods sold |
9,389.6 | 8,953.7 | 4.9 | % | ||||||||
Selling, general and administrative expenses |
1,511.1 | 1,819.4 | (16.9 | )% | ||||||||
Interest expense, net |
177.5 | 160.4 | 10.7 | % | ||||||||
Income from continuing operations before
income taxes and equity method investment
earnings |
1,224.9 | 1,081.4 | 13.3 | % | ||||||||
Income tax expense |
421.0 | 360.9 | 16.7 | % | ||||||||
Equity method investment earnings |
26.4 | 22.1 | 19.5 | % | ||||||||
Income from continuing operations |
830.3 | 742.6 | 11.8 | % | ||||||||
Loss from discontinued operations, net of tax |
(11.5 | ) | (19.3 | ) | (40.4 | )% | ||||||
Net income |
$ | 818.8 | $ | 723.3 | 13.2 | % | ||||||
Less: Net income (loss) attributable to
noncontrolling interests |
1.8 | (2.5 | ) | N/A | ||||||||
Net income attributable to ConAgra Foods, Inc. |
$ | 817.0 | $ | 725.8 | 12.6 | % | ||||||
Earnings per share — basic |
||||||||||||
Income from continuing operations |
$ | 1.92 | $ | 1.68 | 14.3 | % | ||||||
Loss from discontinued operations |
(0.02 | ) | (0.05 | ) | (60.0 | )% | ||||||
Net income attributable to ConAgra Foods, Inc. |
$ | 1.90 | $ | 1.63 | 16.6 | % | ||||||
Weighted average shares outstanding |
429.7 | 443.6 | (3.1 | )% | ||||||||
Earnings per share — diluted |
||||||||||||
Income from continuing operations |
$ | 1.90 | $ | 1.66 | 14.5 | % | ||||||
Loss from discontinued operations |
(0.02 | ) | (0.04 | ) | (50.0 | )% | ||||||
Net income attributable to ConAgra Foods, Inc. |
$ | 1.88 | $ | 1.62 | 16.0 | % | ||||||
Weighted average share and share equivalents
outstanding |
434.3 | 447.1 | (2.9 | )% | ||||||||
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ConAgra Foods, Inc.
Consolidated Balance Sheets
(in millions)
(unaudited)
Consolidated Balance Sheets
(in millions)
(unaudited)
| May 29, 2011 | May 30, 2010 | ||||||||
ASSETS |
|||||||||
Current assets |
|||||||||
Cash and cash equivalents |
$ | 972.4 | $ | 953.2 | |||||
Receivables, less allowance for doubtful accounts
of $7.8 and $8.5 |
849.4 | 849.6 | |||||||
Inventories |
1,803.4 | 1,597.9 | |||||||
Prepaid expenses and other current assets |
274.1 | 307.3 | |||||||
Current assets held for sale |
— | 252.1 | |||||||
Total current assets |
3,899.3 | 3,960.1 | |||||||
Property, plant and equipment, net |
2,670.1 | 2,602.4 | |||||||
Goodwill |
3,609.4 | 3,549.9 | |||||||
Brands, trademarks and other intangibles, net |
936.3 | 874.8 | |||||||
Other assets |
293.6 | 695.6 | |||||||
Noncurrent assets held for sale |
— | 55.2 | |||||||
| $ | 11,408.7 | $ | 11,738.0 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||||
Current liabilities |
|||||||||
Notes payable |
$ | — | $ | 0.6 | |||||
Current installments of long-term debt |
363.5 | 260.2 | |||||||
Accounts payable |
1,083.7 | 919.1 | |||||||
Accrued payroll |
124.1 | 263.9 | |||||||
Other accrued liabilities |
554.3 | 579.0 | |||||||
Current liabilities held for sale |
— | 13.4 | |||||||
Total current liabilities |
2,125.6 | 2,036.2 | |||||||
Senior long-term debt, excluding current installments |
2,674.4 | 3,030.5 | |||||||
Subordinated debt |
195.9 | 195.9 | |||||||
Other noncurrent liabilities |
1,704.3 | 1,541.3 | |||||||
Noncurrent liabilities held for sale |
— | 5.2 | |||||||
Total stockholders’ equity |
4,708.5 | 4,928.9 | |||||||
| $ | 11,408.7 | $ | 11,738.0 | ||||||
-more-
CONAGRA FOODS
page 15
page 15
ConAgra Foods, Inc.
Condensed Consolidated Statements of Cash Flows
(in millions)
(unaudited)
Condensed Consolidated Statements of Cash Flows
(in millions)
(unaudited)
| 52 Weeks Ended | 52 Weeks Ended | |||||||
| May 29, 2011 | May 30, 2010 | |||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 818.8 | $ | 723.3 | ||||
Income from discontinued operations |
(11.5 | ) | (19.4 | ) | ||||
Income from continuing operations |
830.3 | 742.7 | ||||||
Adjustments to reconcile income from continuing operations to net
cash flows from operating activities: |
||||||||
Depreciation and amortization |
360.9 | 324.1 | ||||||
Gain on sale of businesses |
— | (14.3 | ) | |||||
Asset impairment charges |
19.8 | 64.4 | ||||||
Impairment charges related to Garner accident |
— | 31.5 | ||||||
Insurance recoveries recognized related to Garner accident |
(109.4 | ) | (58.1 | ) | ||||
Receipts from insurance carriers related to Garner accident |
64.5 | 50.2 | ||||||
Distributions from affiliates greater (less) than current earnings |
(13.1 | ) | 8.5 | |||||
Share-based payments expense |
44.8 | 55.8 | ||||||
Proceeds from settlement of interest rate swap |
31.5 | — | ||||||
Non-cash interest income on payment-in-kind notes |
— | (67.9 | ) | |||||
Receipt of interest on payment-in-kind notes earned in prior years |
102.8 | — | ||||||
Gain on collection of payment-in-kind notes |
(25.0 | ) | — | |||||
Contributions to Company pension plans |
(129.4 | ) | (122.6 | ) | ||||
Other items (including noncurrent deferred income taxes) |
267.5 | 95.8 | ||||||
Change in operating assets and liabilities excluding effects of
business acquisitions and dispositions: |
||||||||
Accounts receivable |
2.8 | (90.1 | ) | |||||
Inventories |
(190.7 | ) | 199.6 | |||||
Prepaid expenses and other current assets |
31.6 | (20.0 | ) | |||||
Accounts payable |
185.0 | 73.9 | ||||||
Accrued payroll |
(139.2 | ) | 96.9 | |||||
Other accrued liabilities |
5.3 | 59.6 | ||||||
Net cash flows from operating activities—continuing operations |
1,340.0 | 1,430.0 | ||||||
Net cash flows from operating activities—discontinued operations |
12.3 | 42.7 | ||||||
Net cash flows from operating activities |
1,352.3 | 1,472.7 | ||||||
Cash flows from investing activities: |
||||||||
Additions to property, plant and equipment |
(466.2 | ) | (482.3 | ) | ||||
Receipts from insurance carriers related to Garner accident |
18.0 | 34.8 | ||||||
Sale of businesses |
— | 21.7 | ||||||
Sale of property, plant and equipment |
18.9 | 88.4 | ||||||
Purchase of businesses and intangible assets |
(149.1 | ) | (106.5 | ) | ||||
Proceeds from collection of payment-in-kind notes |
412.5 | 91.9 | ||||||
Other items |
— | — | ||||||
Net cash flows from investing activities—continuing operations |
(165.9 | ) | (352.0 | ) | ||||
Net cash flows from investing activities—discontinued operations |
254.8 | (3.3 | ) | |||||
Net cash flows from investing activities |
88.9 | (355.3 | ) | |||||
Cash flows from financing activities: |
||||||||
Repayment of long-term debt |
(294.3 | ) | (15.8 | ) | ||||
Repurchase of ConAgra Foods common shares |
(825.0 | ) | (100.0 | ) | ||||
Cash dividends paid |
(374.5 | ) | (346.7 | ) | ||||
Exercise of stock options and issuance of other stock awards |
59.7 | 54.7 | ||||||
Other items |
2.1 | 3.9 | ||||||
Net cash flows from financing activities—continuing operations |
(1,432.0 | ) | (403.9 | ) | ||||
Net cash flows from financing activities—discontinued operations |
(0.1 | ) | (0.6 | ) | ||||
Net cash flows from financing activities |
(1,432.1 | ) | (404.5 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents |
10.1 | (2.9 | ) | |||||
Net change in cash and cash equivalents |
19.2 | 710.0 | ||||||
Discontinued operations cash activity included above: |
||||||||
Cash and cash equivalents at beginning of year |
953.2 | 243.2 | ||||||
Cash and cash equivalents at end of year |
$ | 972.4 | $ | 953.2 | ||||
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