Seneca Foods Corp. (SENEA, Financial) filed Quarterly Report for the period ended 2008-12-27.
Seneca Foods Corporation is an independent publicly traded food processing company. They are a fully integrated producer having made significant investments in facilities and technologies to enhance manufacturing processes increase line speeds and guarantee premium quality. At Seneca they even develop crop seeds and manufacture their own cans to give an additional competitive advantage. Seneca Foods Corp. has a market cap of $103.34 million; its shares were traded at around $20.99 with and P/S ratio of 0.1.
Net Sales for the nine months ended December 27, 2008 were $995.5 million, which represents a 17.8%, or $150.4 million, increase from the nine months ended December 29, 2007. Selling prices/improved sales mix represented $124.5 million of the increase while sales volume accounted for $25.9 million of this increase. The increase in sales is primarily due to a $90.7 million increase in Canned Vegetable sales, a $23.3 million increase in Fruit Products sales, and a $27.7 million increase in Green Giant Alliance sales.
Basic earnings per share were $1.14 and $.12 for the three months ended December 27, 2008 and December 29, 2007, respectively. Diluted earnings per share were $1.13 and $.12 for the three months ended December 27, 2008 and December 29, 2007, respectively. Basic earnings per share were $1.33 and $.53 for the nine months ended December 27, 2008 and December 29, 2007, respectively. Diluted earnings per share were $1.31 and $.52 for the nine months ended December 27, 2008 and December 29, 2007, respectively. For details of the calculation of these amounts, refer to footnote 11 of the Notes to Condensed Consolidated Financial Statements.
As shown in the Condensed Consolidated Statements of Cash Flows, net Cash Used in Operating Activities was $34.7 million in the first nine months of fiscal 2009, compared to net Cash Used in Operating Activities of $54.1 million in the first nine months of fiscal 2008. The $19.4 million increase in cash generation is attributable to increased net earnings of $9.7 million as previously discussed, greater income tax refunds and lower income tax payments of $19.8 million as a result of implementing LIFO as discussed previously, increased inventory of $92.6 million (net of the increase in the Off-Season Reserve of $50.6 million) in the first nine months of fiscal 2009 as compared to $75.0 million increase in inventory in the first nine months of fiscal 2008 and the $20.5 million increase in Accounts Payable, Accrued Expenses and Other Liabilities as compared to the first nine months of December 29, 2007. This increase is due to higher costs including commodity and steel costs.
As compared to December 29, 2007, inventory increased $32.8 million. The components of the inventory increase reflect a $36.9 million increase in Finished Goods (net of the Off-Season Reserve), a $11.2 million increase in Work in Process and $15.3 million decrease in Raw Materials and Supplies. The Finished Goods increase reflects higher per unit costs in the current year than the prior year partially offset by lower inventory quantities due to a late harvest this year. FIFO based inventory costs exceeded LIFO based inventory costs by $70.0 million as of the end of the third quarter of 2009 as compared to $20.1 million as of the end of the third quarter of 2008. The Work in Process increase is primarily due to an increase in frozen vegetables of $13.9 million over the prior year. This is due to a combination of higher quantities and unit costs in inventory in the current year as compared to the prior year. The Off-Season Reserve decreased by $16.3 million as compared to December 2007. The difference is due to timing and mostly related to seed ($5.2 million) and warehouse costs ($4.8 million). Refer to the Critical Accounting Policies section of this Form 10-Q for further details on the Off-Season Reserve.
Cash Provided by Financing Activities was $52.8 million in the first nine months of fiscal 2009, which included borrowings of $402.4 million and the repayment of $349.8 million of Long-Term Debt principally consisting of borrowing and repayment on the revolving credit facility. The $31.7 million year-over-year reduction in net cash provided by financing activities is primarily related to a $20.5 million increase in Accounts Payable, Accrued Expenses and Other Liabilities as discussed above. There was $0.8 million of new Long Term Debt related to some energy savings projects included in the borrowings above.
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Seneca Foods Corporation is an independent publicly traded food processing company. They are a fully integrated producer having made significant investments in facilities and technologies to enhance manufacturing processes increase line speeds and guarantee premium quality. At Seneca they even develop crop seeds and manufacture their own cans to give an additional competitive advantage. Seneca Foods Corp. has a market cap of $103.34 million; its shares were traded at around $20.99 with and P/S ratio of 0.1.
Highlight of Business Operations:
Third fiscal quarter results include Net Sales of $463.3 million, which represents a 21.5% increase, or $82.1 million, from the third quarter of fiscal 2008. The increase in sales is attributable to increased selling prices/improved sales mix of $70.6 million while sales volume accounted for $11.5 million of this increase. The increase in sales is primarily from a $51.4 million increase in Canned Vegetable sales, a $16.8 million increase in Green Giant Alliance sales and a $10.2 million increase in Fruit sales.Net Sales for the nine months ended December 27, 2008 were $995.5 million, which represents a 17.8%, or $150.4 million, increase from the nine months ended December 29, 2007. Selling prices/improved sales mix represented $124.5 million of the increase while sales volume accounted for $25.9 million of this increase. The increase in sales is primarily due to a $90.7 million increase in Canned Vegetable sales, a $23.3 million increase in Fruit Products sales, and a $27.7 million increase in Green Giant Alliance sales.
Basic earnings per share were $1.14 and $.12 for the three months ended December 27, 2008 and December 29, 2007, respectively. Diluted earnings per share were $1.13 and $.12 for the three months ended December 27, 2008 and December 29, 2007, respectively. Basic earnings per share were $1.33 and $.53 for the nine months ended December 27, 2008 and December 29, 2007, respectively. Diluted earnings per share were $1.31 and $.52 for the nine months ended December 27, 2008 and December 29, 2007, respectively. For details of the calculation of these amounts, refer to footnote 11 of the Notes to Condensed Consolidated Financial Statements.
As shown in the Condensed Consolidated Statements of Cash Flows, net Cash Used in Operating Activities was $34.7 million in the first nine months of fiscal 2009, compared to net Cash Used in Operating Activities of $54.1 million in the first nine months of fiscal 2008. The $19.4 million increase in cash generation is attributable to increased net earnings of $9.7 million as previously discussed, greater income tax refunds and lower income tax payments of $19.8 million as a result of implementing LIFO as discussed previously, increased inventory of $92.6 million (net of the increase in the Off-Season Reserve of $50.6 million) in the first nine months of fiscal 2009 as compared to $75.0 million increase in inventory in the first nine months of fiscal 2008 and the $20.5 million increase in Accounts Payable, Accrued Expenses and Other Liabilities as compared to the first nine months of December 29, 2007. This increase is due to higher costs including commodity and steel costs.
As compared to December 29, 2007, inventory increased $32.8 million. The components of the inventory increase reflect a $36.9 million increase in Finished Goods (net of the Off-Season Reserve), a $11.2 million increase in Work in Process and $15.3 million decrease in Raw Materials and Supplies. The Finished Goods increase reflects higher per unit costs in the current year than the prior year partially offset by lower inventory quantities due to a late harvest this year. FIFO based inventory costs exceeded LIFO based inventory costs by $70.0 million as of the end of the third quarter of 2009 as compared to $20.1 million as of the end of the third quarter of 2008. The Work in Process increase is primarily due to an increase in frozen vegetables of $13.9 million over the prior year. This is due to a combination of higher quantities and unit costs in inventory in the current year as compared to the prior year. The Off-Season Reserve decreased by $16.3 million as compared to December 2007. The difference is due to timing and mostly related to seed ($5.2 million) and warehouse costs ($4.8 million). Refer to the Critical Accounting Policies section of this Form 10-Q for further details on the Off-Season Reserve.
Cash Provided by Financing Activities was $52.8 million in the first nine months of fiscal 2009, which included borrowings of $402.4 million and the repayment of $349.8 million of Long-Term Debt principally consisting of borrowing and repayment on the revolving credit facility. The $31.7 million year-over-year reduction in net cash provided by financing activities is primarily related to a $20.5 million increase in Accounts Payable, Accrued Expenses and Other Liabilities as discussed above. There was $0.8 million of new Long Term Debt related to some energy savings projects included in the borrowings above.
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