Seneca Foods Reports Net Earnings Increase of $11.6 Million for the Second Fiscal Quarter of 2013

  Seneca Foods Reports Net Earnings Increase of $11.6 Million for the Second
                            Fiscal Quarter of 2013

PR Newswire

MARION, N.Y., Oct. 25, 2012

MARION, N.Y., Oct.25, 2012 /PRNewswire/ --Seneca Foods Corporation (NASDAQ:
SENEA, SENEB) reported net earnings for the fiscal second quarter of 2013 of
$14.5 million, or $1.22 per diluted share, compared to $2.9 million, or $0.24
per diluted share, in the fiscal second quarter of 2012. Net sales for the
second quarter ended September 29, 2012 increased from the second quarter
ended October 1, 2011 by 12.3%, or $34.9 million to $317.6 million. The
increase is attributable to more favorable sales mix and higher selling prices
of $23.7 million and a sales volume increase of $11.2 million. Part of the
sales volume increase can be attributed to stronger promotional activity than
in the prior year.

For the six months ended September 29, 2012, net sales increased $8.1 million,
or 1.5% to $548.6 million. The increase is attributable to higher selling
prices and a more favorable sales mix of $54.3 million partially offset by a
sales volume decrease of $46.2 million. Net earnings for the first six months
of fiscal 2013 was $22.7 million, or $1.89 per diluted share, compared to a
net loss of $5.1 million, or $(0.42) per diluted share, in the first six
months of fiscal 2012.

Excluding a non-cash after-tax LIFO credit of $2.4 million, net earnings per
diluted share were $1.02 during the quarter ended September 29, 2012 versus
$0.91 during the quarter ended October 1, 2011, which included a non-cash LIFO
charge of $8.3 million. Excluding a non-cash after-tax LIFO credit of $1.6
million, net earnings per diluted share were $1.76 during the six months ended
September 29, 2012, compared to $0.61 during the six months ended October 1,
2011 which included a non-cash LIFO charge of $12.5 million.

About Seneca Foods Corporation
Seneca Foods is a processor of canned fruits and vegetables with manufacturing
facilities located throughout the United States. Its products are sold under
the Libby's, Blue Boy, Aunt Nellie's Farm Kitchen, Stokely's, READ, Seneca
Farms and Seneca labels as well as through the private label and industrial
markets. In addition, under an alliance with General Mills Operations, LLC, a
successor to the Pillsbury Company and a subsidiary of General Mills, Inc.,
Seneca produces canned and frozen vegetables, which are sold by General Mills
Operations, LLC under the Green Giant label. Seneca's common stock is traded
on the Nasdaq Global Stock Market under the symbols "SENEA" and "SENEB". SENEA
is included the S&P SmallCap 600, Russell 2000 and Russell 3000 indices.

Non-GAAP Financial Measures—Net Earnings Excluding LIFO Impact, EBITDA and
FIFO EBITDA

Net Earnings excluding LIFO, EBITDA and FIFO EBITDA are non-GAAP financial
measures. The Company believes these non-GAAP financial measures provide a
basis for comparison to companies that do not use LIFO and enhance the
understanding of the Company's historical operating performance. The Company
does not intend for this information to be considered in isolation or as a
substitute for other measures prepared in accordance with GAAP.

Set forth below is a reconciliation of reported net earnings and reported
diluted earnings per share to net earnings excluding LIFO and diluted earnings
per share excluding LIFO.

                             Quarter Ended
                             September 29, 2012        October 1, 2011
                             Income          Diluted   Income          Diluted
                             (inmillions)   EPS       (inmillions)   EPS
Net earnings, as reported: $ 14.5          $ 1.22    $ 2.9           $ 0.24
LIFO (credit) charge,
after tax at statutory     $ (2.4)         $ (0.20)  $ 8.3           $ 0.67
federal rate
Net earnings, excluding    $ 12.1          $ 1.02    $ 11.2          $ 0.91
LIFO impact
 Diluted weighted average
common shares                                11,445                    11,808
outstanding(in thousands)
                             Six Months Ended
                             September 29, 2012        October 1, 2011
                             Income          Diluted   Income          Diluted
                             (in millions)   EPS       (in millions)   EPS
Net earnings (loss), as    $ 22.7          $ 1.89    $ (5.1)         $ (0.42)
reported:
LIFO (credit) charge,
after tax at statutory     $ (1.6)         $ (0.13)  $ 12.5          $ 1.03
federal rate
Net earnings, excluding    $ 21.1          $ 1.76    $ 7.4           $ 0.61
LIFO impact
 Diluted weighted average
common shares                                11,602                    11,807
outstanding(in thousands)

Set forth below is a reconciliation of reported net earnings to EBITDA and
FIFO EBITDA (earnings before interest, income taxes, depreciation,
amortization, non-cash charges and credits related to the LIFO inventory
valuation method). The Company does not intend for this information to be
considered in isolation or as a substitute for other measures prepared in
accordance with GAAP.

                                          Six Months Ended
EBITDA and FIFO EBITDA:                   September 29, 2012   October 1, 2011
                                          (In thousands)
Net earnings (loss)                     $ 22,712             $ (5,092)
Income taxes expense (benefit)            13,173               (2,748)
Interest expense, net of interest         3,314                3,666
income
Depreciation and amortization             11,424               11,188
Interest amortization                     (150)                (213)
EBITDA                                    50,473               6,801
LIFO (credit) charge                      (2,444)              19,281
FIFO EBITDA                             $ 48,029             $ 26,082

Forward-Looking Information

The information contained in this release contains, or may contain,
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements appear in a number of places
in this release 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) with respect to various matters.

Because such statements are subject to risks and uncertainties, actual results
may differ materially from those expressed or implied by such forward-looking
statements. Investors are cautioned not to place undue reliance on such
statements, which speak only as of the date the statements were made. Among
the factors that could cause actual results to differ materially are:

  ogeneral economic and business conditions;
  ocost and availability of commodities and other raw materials such as
    vegetables, steel and packaging materials;
  otransportation costs;
  oclimate and weather affecting growing conditions and crop yields;
  oavailability of financing;
  oleverage and the Company's ability to service and reduce its debt;
  oforeign currency exchange and interest rate fluctuations;
  oeffectiveness of the Company's marketing and trade promotion programs;
  ochanging consumer preferences;
  ocompetition;
  oproduct liability claims;
  othe loss of significant customers or a substantial reduction in orders
    from these customers;
  ochanges in, or the failure or inability to comply with, United States,
    foreign and local governmental regulations, including environmental and
    health and safety regulations; and
  oother risks detailed from time to time in the reports filed by the Company
    with the SEC.

Except for ongoing obligations to disclose material information as required by
the federal securities laws, the Company does not undertake any obligation to
release publicly any revisions to any forward-looking statements to reflect
events or circumstances after the date of the filing of this report or to
reflect the occurrence of unanticipated events.



Seneca Foods Corporation
Unaudited Condensed Consolidated Statements of Net Earnings
For the Periods Ended September 29, 2012 and October 1, 2011
(In thousands of dollars, except share data)
                     Quarter                         Year-to-Date
                     Fiscal 2013     Fiscal 2012     Fiscal 2013   Fiscal 2012
Net sales         $  317,593      $  282,689      $  548,644     $ 540,525
Plant
restructuring     $  -            $  (15)         $  -           $ 39
expense (note 2)
Other operating
income, net (note $  (274)        $  (18)         $  (292)       $ (169)
3)
Operating income  $  24,934       $  5,977        $  39,199      $ (4,174)
(loss) (note 1)
Interest expense,    1,836           1,880           3,314         3,666
net
Earnings (loss)
before income     $  23,098       $  4,097        $  35,885      $ (7,840)
taxes
Income taxes         8,577           1,214           13,173        (2,748)
expense (benefit)
Net earnings      $  14,521       $  2,883        $  22,712      $ (5,092)
(loss)
Earnings (loss)
attributable to   $  14,010       $  2,779        $  21,920      $ (4,930)
common stock
(note 4)
Basic earnings    $  1.23         $  0.24         $  1.90        $ (0.42)
(loss) per share
Diluted earnings  $  1.22         $  0.24         $  1.89        $ (0.42)
(loss) per share
Weighted average
shares               11,373,830      11,737,102      11,530,523    11,736,367
outstanding basic
Weighted average
shares               11,445,146      11,808,150      11,601,839    11,807,415
outstanding
diluted
Note 1: The effect of the LIFO inventory valuation method on second quarter
pre-tax results was to increase operating earnings by $3,706,000 for thethree
month period ended September 29, 2012 and decrease operating earnings by
$12,754,000 for the three month period ended October 1, 2011.
 The effect of the LIFO inventory valuation method on year-to-date
pre-tax results was to increase operating earnings by $2,444,000 for the six
month period ended September 29, 2012 and decrease operating earnings by
$19,281,000 for the six month period ended October 1, 2011.
Note 2: The six month period ended October 1, 2011 included a restructuring
charge for severance costs of $39,000.
Note 3: Other income for the current year of $292,000 represents a net gain on
the sale of unused fixed assets.
Other income for the prior year of $169,000 represents a net gain
on the sale of unused fixed assets.
Note 4: The Company uses the "two-class" method for basic earnings per share
by dividing the earnings attributable to common shareholdersby the weighted
average of common shares outstanding during the period. The diluted earnings
per share includes the effect ofconvertible shares for each period
presented. Common and participating shares totaled 11,940,849 as of September
29, 2012.



SOURCE Seneca Foods Corporation

Website: http://www.senecafoods.com
Contact: Timothy J. Benjamin, Chief Financial Officer, +1-315-926-8100