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Bemis Company Reports 2013 First Quarter Results



  Bemis Company Reports 2013 First Quarter Results

Business Wire

NEENAH, Wis. -- April 25, 2013

Bemis Company, Inc. (NYSE:BMS) today reported first quarter 2013 diluted
earnings of $0.47 per share on net sales of $1.3 billion. Excluding the effect
of facility consolidation and acquisition-related integration charges detailed
in the attached schedule, “Reconciliation of Non-GAAP Earnings Per Share”,
adjusted diluted earnings per share would have increased to $0.53 for the
first quarter of 2013 compared to $0.49 for the first quarter of 2012.
Excluding the impact of currency, net sales for the quarter decreased by 1.8
percent compared to the first quarter of 2012.

“I am pleased to report that we achieved record first quarter adjusted
earnings per share this year,” said Henry Theisen, Bemis Company's President
and Chief Executive Officer. “Our improved margin performance reflects our
increased sales of barrier packaging for refrigerated products and the
benefits of our 2012 facility consolidation program. We are building positive
momentum as we enter our seasonally stronger summer months and look forward to
continued improvement throughout the year.”

HIGHLIGHTS OF THE FIRST QUARTER OF 2013:

  * Adjusted diluted earnings per share increased 8.2 percent to $0.53, in
    line with management's guidance for the quarter.
  * Gross profit as a percent of net sales improved to 19.3 percent compared
    to 17.7 percent in the first quarter of 2012.
  * Facility consolidation charges totaled $9.3 million.
  * Bemis repurchased one million shares of its common stock at a cost of $36
    million.
  * Bemis increased its quarterly cash dividend by 4 percent, the 30^th
    consecutive annual increase.
  * Management established adjusted diluted earnings guidance for the second
    quarter of 2013 in the range of $0.57 to $0.63 per share, and confirmed
    total year 2013 earnings guidance in the range of $2.30 to $2.45 per
    share.

BUSINESS SEGMENT RESULTS

U.S. Packaging

For the first quarter of 2013, U.S. Packaging net sales of $746.0 million
represented a decrease of 2.5 percent compared to the same period of 2012.
U.S. Packaging segment operating profit for the first quarter of 2013 was
$86.0 million, or 11.5 percent of net sales, compared to $82.0 million, or
10.7 percent of net sales, in 2012. Facility consolidation program costs
negatively impacted results during each period. Excluding these costs, segment
adjusted operating profit for 2013 would have been $95.4 million, or 12.8
percent of net sales, compared to $89.6 million, or 11.7 percent of net sales,
in 2012. (See attached schedule: “Reconciliation of Non-GAAP Operating
Profit”)

Lower net sales in 2013 reflect generally lower unit sales volumes of
packaging for certain non-barrier packaging, partially offset by increased
unit sales volumes of packaging for products such as refrigerated foods where
barrier technology is a requirement. Lower unit sales volume is partially
attributable to the reduction of certain low margin sales in conjunction with
the facility consolidation program. In addition, cooler weather in many parts
of the United States this spring has delayed the start of the normally strong
season for certain grocery products that we package. The improved operating
profit levels primarily reflect the cost savings associated with those
facility consolidation activities which were completed in 2012.

Global Packaging

For the first quarter of 2013, Global Packaging net sales of $368.5 million
represented a decrease of 6.6 percent compared to the first quarter of 2012.
Acquisitions increased net sales by less than one percent, while currency
translation decreased net sales by 6.5 percent. Global Packaging segment
operating profit for the first quarter was $25.9 million, or 7.0 percent of
net sales, compared to $25.9 million, or 6.6 percent of net sales, for the
same period in 2012. Facility consolidation program and acquisition-related
integration costs impacted results during each period. Excluding these costs,
segment adjusted operating profit would have been $25.3 million, or 6.9
percent of net sales, compared to $28.3 million, or 7.2 percent of net sales,
in 2012. The net effect of currency translation decreased operating profit
during the first quarter of 2013 by $2.2 million.

Excluding the impact of acquisitions and currency translation, net sales
decreased modestly reflecting the impact of lower unit sales volumes
substantially offset by higher selling prices. Three low margin facilities in
the global packaging business segment were closed during 2012 as part of the
facility consolidation program.

Pressure Sensitive Materials

Pressure Sensitive Materials net sales totaled $140.5 million for the first
quarter, a 3.3 percent decrease from the same period in 2012. Currency effects
were insignificant to net sales during the period. First quarter operating
profit was $7.7 million, or 5.5 percent of net sales, compared to $9.7
million, or 6.7 percent of net sales, for the first quarter of 2012. Currency
translation did not significantly impact results for the first quarter.

Higher unit sales volumes of label products substantially offset lower unit
volumes for both graphic and technical products, resulting in a less favorable
sales mix and lower operating profit margins during the quarter.

2013 OUTLOOK

Commenting on the year ahead, Theisen stated, “Our outlook for 2013 is
unchanged, as we anticipate volume levels to be consistent with 2012, coupled
with a generally stable raw material cost environment. The facility
consolidation activities are substantially completed, and we are maintaining
our cost savings objective of $45 million for 2013. In a low growth
environment, cost management continues to be a priority. We expect our
continued prudent investments in barrier technology and related capacity will
deliver improving returns once market growth returns.”

Management expects adjusted diluted earnings per share for the second quarter
of 2013 to be in the range of $0.57 to $0.63. This excludes charges associated
with the facility consolidation program, which will continue through the
second quarter of 2013 as the remaining production is transitioned and
properties are prepared for sale.

Management confirmed its guidance for adjusted diluted earnings per share for
the full year 2013 in the range of $2.30 to $2.45 per share. The incremental
savings of the facility consolidation activities are expected to be
approximately $37 million in 2013. The annualized savings rate of $50 million
is expected to be achieved during the second quarter of 2013. The effective
income tax rate for the remaining quarters of 2013 is expected to be
approximately 35.3 percent.

Management also confirmed that it expects its total year 2013 cash provided by
operating activities to total approximately $430 million and capital
expenditures to total approximately $175 million.

OTHER OPERATING (INCOME) EXPENSE, NET

For the first quarter of 2013, other operating income and expense included
$2.9 million of fiscal government incentive income, compared to $5.2 million
for the first quarter of 2012. Fiscal government incentives are associated
with net sales and manufacturing activities in certain Brazilian operations
and are included in global packaging segment operating profit. The decrease in
fiscal incentive income reflects lower sales volumes as well as reductions of
available fiscal incentives.

CAPITAL STRUCTURE AND CASH FLOW

Net debt to adjusted EBITDA was 2.3 times at March 31, 2013, consistent with
the first quarter of 2012. Net debt is defined as total debt less cash, and
adjusted EBITDA is defined as adjusted last twelve months operating income
plus depreciation and amortization. Increased levels of working capital at the
end of the quarter reflect generally higher inventory levels in anticipation
of increased shipments during the seasonally strong second quarter.

Cash flow from operations of $8.4 million reflects the impact of the increased
levels of working capital and $10.8 million of cash paid related to the
facility consolidation program. The decrease in interest expense for the
period primarily reflects a higher proportion of low cost commercial paper as
a percent of total debt outstanding compared to the first quarter of 2012.

EFFECTIVE INCOME TAX RATE

The effective tax rate for the quarter was 31.0 percent. During the quarter, a
$4.5 million tax benefit was recognized for the reversal of non-US tax
liabilities that were assumed in a past acquisition. Bemis also recognized an
equal amount of non-operating expense for the write-off of related
receivables. These equal and offsetting items had no impact on operating
profit and net income.

PRESENTATION OF NON-GAAP INFORMATION

This press release refers to non-GAAP financial measures: adjusted operating
profit, adjusted operating profit as a percentage of net sales, net debt to
adjusted EBITDA, and adjusted diluted earnings per share. These non-GAAP
financial measures adjust for factors that are unusual or unpredictable. These
measures exclude the impact of certain amounts related to facility
consolidation activities including employee-related costs, equipment
relocation costs, lease termination payments, accelerated depreciation, and
the write-down of equipment. These measures also exclude certain acquisition
related expenses including transaction expenses, due diligence expenses,
professional and legal fees, purchase accounting adjustments for inventory and
order backlog, integration expenses, the cash portion of any acquisition
earn-out payments recorded as compensation expenses, and changes in fair value
of deferred acquisition payments. This adjusted information should not be
construed as an alternative to results determined in accordance with
accounting principles generally accepted in the United States of America
(GAAP). It is provided solely to assist in an investor's understanding of the
impact of these items on the comparability of the Company's on-going business
operations.

FORWARD LOOKING STATEMENTS

Statements in this release that are not historical, including statements
relating to the expected future performance of the Company, are considered
“forward-looking” and are presented pursuant to the safe harbor provisions of
the Securities Litigation Reform Act of 1995. Such content is subject to
certain risks and uncertainties, including but not limited to future changes
in cost or availability of raw materials, our ability to adjust selling
prices, consumer buying patterns, changes in customer order patterns, the
results of competitive bid processes, costs associated with the pursuit of
business combinations, a failure in our information technology infrastructure
or applications, the funded status of our defined benefit plans, foreign
currency fluctuations, unexpected costs associated with plant closings and
disposal activities, changes in working capital requirements, changes in
government regulations, and the availability and related cost of financing
from banks and capital markets. Actual future results and trends may differ
materially from historical results or those projected in any such
forward-looking statements depending on a variety of factors which are
detailed in the Company's regular SEC filings including the most recently
filed Form 10-K for the year ended December 31, 2012.

INVESTOR CONFERENCE CALL

Bemis Company, Inc. will webcast an investor telephone conference regarding
its first quarter 2013 financial results this morning at 10 a.m., Eastern
Time. Individuals may listen to the call on the Internet at www.bemis.com
under “Investor Relations.” Listeners are urged to check the website ahead of
time to ensure their computers are configured for the audio stream.
Instructions for obtaining the required, free, downloadable software are
available in a pre-event system test on the site.

ABOUT BEMIS COMPANY, INC.

Bemis Company, Inc. is a major supplier of packaging and pressure sensitive
materials used by leading food, consumer products, healthcare, and other
companies worldwide. Founded in 1858, Bemis Company is included in the S&P 500
index of stocks and reported 2012 net sales of $5.1 billion. Bemis has a
strong technical base in polymer chemistry, film extrusion, coating and
laminating, printing, and converting. Headquartered in Neenah, Wisconsin,
Bemis employs approximately 20,000 individuals worldwide. More information
about Bemis is available at our website, www.bemis.com.

BEMIS COMPANY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(in millions, except per share amounts)
(unaudited)
                                                  
                                                    
                                                   Three Months Ended
                                                   March 31,
                                                   2013            2012
Net sales                                          $ 1,255.0       $ 1,304.8
Cost of products sold                              1,013.2         1,073.8    
Gross profit                                       241.8           231.0
                                                                    
Operating expenses:
Selling, general and administrative expenses       130.6           129.2
Research and development                           11.3            10.9
Facility consolidation and other costs             9.3             8.3
Other operating (income) expense, net              (1.5      )     (5.9      )
                                                                    
Operating income                                   92.1            88.5
                                                                    
Interest expense                                   16.6            20.5
Other non-operating (income) expense, net          4.1             0.1        
                                                                    
Income before income taxes                         71.4            67.9
                                                                    
Provision for income taxes                         22.1            23.9       
                                                                    
Net income                                         $ 49.3          $ 44.0     
                                                                    
Basic earnings per share                           $ 0.48          $ 0.42     
                                                                    
Diluted earnings per share                         $ 0.47          $ 0.42     
                                                                    
Cash dividends paid per share                      $ 0.26          $ 0.25     
                                                                    
Weighted average shares outstanding (including
participating securities):
Basic                                              103.3           104.4
Diluted                                            104.4           105.0
                                                                              

BEMIS COMPANY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in millions)
(unaudited)
                                                                 
                                                                   
                                                  March 31,       December 31,
                                                  2013            2012
ASSETS
                                                                   
Cash and cash equivalents                         $ 152.7         $  114.1
Accounts receivable, net                          709.7           645.2
Inventories                                       698.0           661.9
Prepaid expenses and other current assets         105.7           103.8       
Total current assets                              1,666.1         1,525.0     
                                                                   
Property and equipment, net                       1,330.9         1,351.3     
                                                                   
Goodwill                                          1,038.6         1,034.3
Other intangible assets, net                      198.1           201.2
Deferred charges and other assets                 71.7            73.9        
Total other long-term assets                      1,308.4         1,309.4     
                                                                   
TOTAL ASSETS                                      $ 4,305.4       $  4,185.7  
                                                                   
LIABILITIES
                                                                   
Current portion of long-term debt                 $ 0.2           $  0.3
Short-term borrowings                             8.4             8.6
Accounts payable                                  406.6           382.1
Accrued salaries and wages                        88.5            107.9
Accrued income and other taxes                    45.4            34.3
Other current liabilities                         92.5            109.8       
Total current liabilities                         641.6           643.0
                                                                   
Long-term debt, less current portion              1,542.8         1,417.6
Deferred taxes                                    207.9           198.3
Other liabilities and deferred credits            281.9           285.9       
                                                                   
TOTAL LIABILITIES                                 2,674.2         2,544.8     
                                                                   
EQUITY
                                                                   
Bemis Company, Inc. shareholders’ equity:
Common stock issued (127.8 and 127.2 shares,      12.8            12.7
respectively)
Capital in excess of par value                    536.2           545.4
Retained earnings                                 1,923.3         1,900.9
Accumulated other comprehensive loss              (100.3    )     (112.9     )
Common stock held in treasury (25.0 and 24.0      (740.8    )     (705.2     )
shares at cost, respectively)
TOTAL EQUITY                                      1,631.2         1,640.9     
                                                                   
TOTAL LIABILITIES AND EQUITY                      $ 4,305.4       $  4,185.7  
                                                                              

BEMIS COMPANY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
(unaudited)
                                                      
                                                       Three Months Ended
                                                       March 31,
                                                       2013          2012
Cash flows from operating activities
Net income                                             $ 49.3        $ 44.0
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization                          49.2          55.0
Excess tax benefit from share-based payment            —             0.2
arrangements
Share-based compensation                               4.5           4.9
Deferred income taxes                                  5.8           2.4
Income of unconsolidated affiliated company            (0.6    )     (0.7    )
Loss (gain) on sale of property and equipment          0.2           (0.3    )
Net facility consolidation and other costs             (1.7    )     0.3
Changes in working capital, excluding effect of        (100.7  )     (62.4   )
acquisitions
Net change in deferred charges and credits             2.4           5.4      
                                                                      
Net cash provided by operating activities              8.4           48.8     
                                                                      
Cash flows from investing activities
Additions to property and equipment                    (27.2   )     (23.7   )
Business acquisitions and adjustments, net of cash     0.2           —
acquired
Proceeds from sale of property and equipment           0.3           1.3      
                                                                      
Net cash used in investing activities                  (26.7   )     (22.4   )
                                                                      
Cash flows from financing activities
Repayment of long-term debt                            —             (1.1    )
Net borrowing of commercial paper                      129.2         4.5
Net borrowing of short-term debt                       0.1           1.0
Cash dividends paid to shareholders                    (27.2   )     (26.1   )
Common stock purchased for the treasury                (35.6   )     —
Excess tax benefit from share-based payment            —             (0.2    )
arrangements
Stock incentive programs and related tax               (12.7   )     (1.6    )
withholdings
                                                                      
Net cash provided by (used in) financing activities    53.8          (23.5   )
                                                                      
Effect of exchange rates on cash and cash              3.1           0.3      
equivalents
                                                                      
Net increase in cash and cash equivalents              38.6          3.2
                                                                      
Cash and cash equivalents balance at beginning of      114.1         109.8    
year
                                                                      
Cash and cash equivalents balance at end of period     $ 152.7       $ 113.0  
                                                                              

BEMIS COMPANY, INC. AND SUBSIDIARIES
OPERATING PROFIT AND PRETAX PROFIT
(in millions)
(unaudited)
                                                        
                                                          
                                                         Three Months Ended
                                                         March 31,
                                                         2013         2012
U.S. Packaging
Operating profit before facility consolidation and       $ 95.4       $ 89.6
other costs
Facility consolidation and other costs                   (9.4   )     (7.6   )
Operating profit                                         86.0         82.0
                                                                       
Global Packaging
Operating profit before facility consolidation and       25.8         26.6
other costs
Facility consolidation and other costs                   0.1          (0.7   )
Operating profit                                         25.9         25.9
                                                                       
Pressure Sensitive Materials
Operating profit                                         7.7          9.7     
                                                                       
Segment operating profit                                 119.6        117.6
                                                                       
Corporate
General corporate expenses                               (27.5  )     (29.1  )
                                                                       
Operating income                                         92.1         88.5
                                                                       
Interest expense                                         16.6         20.5
                                                                       
Other non-operating (income) expense, net                4.1          0.1     
                                                                       
Income before income taxes                               $ 71.4       $ 67.9  
                                                                              

BEMIS COMPANY, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP OPERATING PROFIT
(in millions, except per share amounts)
(unaudited)
                                               
                                                 
                                                Three Months Ended
                                                March 31,
                                                2013        2012
U.S. Packaging
Net sales                                       $ 746.0     $ 765.1  
                                                             
Operating profit as reported                    $ 86.0      $ 82.0
                                                             
Non-GAAP adjustments:
Facility consolidation and other costs (1)      9.4         7.6      
                                                             
Operating profit as adjusted                    $ 95.4      $ 89.6   
                                                             
Operating profit as a percentage of net sales
As reported                                     11.5    %   10.7    %
As adjusted                                     12.8    %   11.7    %
                                                             
Global Packaging
Net sales                                       $ 368.5     $ 394.4  
                                                             
Operating profit as reported                    $ 25.9      $ 25.9
                                                             
Non-GAAP adjustments:
Facility consolidation and other costs (1)      (0.1    )   0.7
Acquisition-related integration costs (2)       (0.5    )   1.7      
                                                             
Operating profit as adjusted                    $ 25.3      $ 28.3   
                                                             
Operating profit as a percentage of net sales
As reported                                     7.0     %   6.6     %
As adjusted                                     6.9     %   7.2     %
                                                             
Pressure Sensitive Materials
Net sales                                       $ 140.5     $ 145.3  
                                                             
Operating profit as reported                    $ 7.7       $ 9.7    
                                                             
Operating profit as a percentage of net sales
As reported                                     5.5     %   6.7     %

      Facility consolidation and other costs includes employee-related costs,
(1)   accelerated depreciation, write down of equipment and other costs
      related to the Company's facility consolidation program.
(2)   Acquisition related integration costs include earnout payments treated
      as compensation expense related to the Mayor Packaging acquisition.
       

BEMIS COMPANY, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP EARNINGS PER SHARE
(unaudited)
                                               
                                                 
                                                Three Months Ended
                                                March 31,
                                                2013        2012
Diluted earnings per share, as reported         $  0.47     $ 0.42
                                                             
Non-GAAP adjustments per share, net of taxes:
Facility consolidation and other costs (1)      0.06        0.05
Acquisition-related integration costs (2)       —           0.02
                                                             
Diluted earnings per share, as adjusted         $  0.53     $ 0.49

      Facility consolidation and other costs includes employee-related costs,
(1)   accelerated depreciation, write down of equipment and other costs
      related to the Company's facility consolidation program.
(2)   Acquisition related integration costs include earnout payments treated
      as compensation expense related to the Mayor Packaging acquisition.

Contact:

Bemis Company, Inc.
Melanie E. R. Miller, 920-527-5045
Vice President, Investor Relations and Treasurer
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