Seminis,
Inc., the world's largest developer, producer and marketer of
vegetable and fruit seeds, today reported final results for the three-month
and nine-month periods ended June 27, 2003. The company released preliminary
third quarter results late last month due to filing requirements of its
majority shareholder, Savia S.A. de C.V.
RESULTS FOR THE THREE-MONTH PERIOD ENDED JUNE 27, 2003
Net sales for the three months ended June 27, 2003 were $113.1 million
compared to $106.6 million for the same period last year. This represents an
increase of 6.1% from the same period last year. The increase was primarily
due to increased sales in the Asia sales region as well as in the Europe,
Middle East and Africa sales region. The increase in the EMEA region was
mainly attributable to favorable exchange rate fluctuations in that region.
Gross profit increased to $71.0 million or 62.8% of sales compared to
$65.0 million or 61.0% for the same period last year. This increase was
primarily due to the continued optimization of our internal processes.
Operating expenses in the reported period increased by $4.1 million to
$63.3 million, compared to $59.2 million for the same period last year, an
increase of 6.9%. This increase was primarily due to exchange rate
fluctuations as well as increases in legal and administrative fees related to
the transaction proposed by Savia S.A. de C.V. and Fox Paine & Company, LLC in
December 2002.
Operating income for the period was $8.1 million compared to $6.3 million
for the same period last year, an increase of $1.8 million or 29.2%.
Net loss for the period was $3.3 million compared to net income of
$4.3 million during the same quarter last year. Net loss available to common
shareholders was $8.0 million or $0.12 per share compared to a net loss
available to common shareholders of $0.4 million or $0.01 per share during the
same period last year.
The total outstanding syndicated bank debt as of June 27, 2003 was
$216.6 million compared to $238.7 million as of June 28, 2002, a reduction of
$22.1 million or 9.3%.
Seminis Chairman and Chief Executive Officer, Mr. Alfonso Romo, commented:
"The successful implementation of our value-added pricing strategy has shown
that the market recognizes the benefits that our products offer growers,
retailers and consumers. Together with a streamlined organization, we have the
financial strength and flexibility to move aggressively into new markets in
Asia and South America, while continuing to fully fund our R&D engine, the
largest in the vegetable seed industry."
RESULTS FOR THE NINE-MONTH PERIOD ENDED JUNE 27, 2003
Total sales for the nine months ended June 27, 2003 increased 4.1% to
$352.7 million from $339.0 million during the same period last year. Net seed
sales reached $340.6 million during the nine-month period, an increase of 5.1%
compared to $324.1 million for the same period of last year. The increase was
primarily due to favorable currency fluctuations.
Gross profit for the period increased to 63.0%, from 62.1% for the same
period last year, partly due to the previously stated optimization strategies.
Total operating expenses for the period increased by 4.1% to
$184.9 million, from $177.5 million for the same period last year. The
increase was primarily due to the previously mentioned increase in operating
expenses during the three-month period ended June 27,2003 as well as severance
expenses incurred mainly during the second quarter of the fiscal year.
Operating income for the period was $38.9 million, inline with the
$38.8 million reported for the same period last year.
Net loss available to common shareholders for the period was $4.9 million
or $0.08 per share compared with a net loss available to common shareholders
of $3.3 million, or $0.05 per share for the same period last year.
Total outstanding syndicated bank debt was reduced by $13.1 million during
the nine months ended June 28, 2003.
FOX PAINE TRANSACTION
Seminis also announced that proxy statements have been mailed to all
shareholders of record regarding the proposed transaction with Fox Paine, and
that a shareholders' meeting will be held in early September to complete the
voting process. With shareholders' approval, the company expects to complete
the transaction by the end of September, the close of its fiscal year.
"This is an historic crossroad for Seminis. Having acquired the world's
leading vegetable seed brands and fully integrating them into a single Seminis
organization, we are ready to take on new partners that will allow us to
continue growing and expanding the reach and capabilities of the company,"
said Mr. Romo.
ABOUT SEMINIS
Seminis, Inc. is the largest developer, producer and marketer of vegetable
and fruit seeds in the world. The company uses seeds as the delivery vehicle
for innovative agricultural technology. Its products are designed to reduce
the need for agricultural chemicals, increase crop yield, reduce spoilage,
offer longer shelf life, create better tasting foods and foods with better
nutritional content. Seminis has established a worldwide presence and global
distribution network that spans 150 countries and territories.
SEMINIS, INC.
Consolidated Balance Sheets
(In thousands)
As of As of
June 27, September 30,
2003 2002
ASSETS:
Current assets
Cash and cash equivalents $28,130 $36,805
Accounts receivable, net 175,269 140,315
Inventories 266,150 272,527
Prepaid expenses and other current assets 4,329 2,427
Total current assets 473,878 452,074
Property, plant and equipment, net 163,564 168,729
Goodwill, net 102,706 98,931
Intangible assets, net 54,514 61,872
Other assets 20,035 18,391
$814,697 $799,997
LIABILITIES, MANDATORILY REDEEMABLE STOCK AND STOCKHOLDERS' EQUITY:
Current liabilities
Short-term borrowings $39,774 $28,532
Current maturities of long-term debt 219,454 21,709
Accounts payable 22,784 38,179
Accrued liabilities 97,218 98,624
Total current liabilities 379,230 187,044
Long-term debt 14,965 228,293
Deferred income taxes 18,740 15,753
Minority interest in subsidiaries 1,677 1,902
Total liabilities 414,612 432,992
Commitments and contingencies
Total mandatorily redeemable stock 31,000 29,500
Total stockholders' equity 369,085 337,505
$814,697 $799,997
SEMINIS, INC.
Consolidated Statements of Operations
(In thousands, except per share data)
For the three For the nine
months ended months ended
June 27, June 28, June 27, June 28,
2003 2002 2003 2002
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Net sales $113,088 $106,564 $352,705 $338,952
Cost of goods sold 42,113 41,581 130,354 128,325
Gross profit 70,975 64,983 222,351 210,627
Research and development expenses 12,564 10,973 34,942 32,483
Selling, general and
administrative expenses 46,685 43,973 138,022 132,501
Amortization of intangible assets 4,014 4,235 11,907 12,537
Total operating expenses 63,263 59,181 184,871 177,521
Gain on sale of assets 366 447 1,457 5,723
Income from operations 8,078 6,249 38,937 38,829
Other expense
Interest expense, net (8,800) (7,082) (23,735) (21,184)
Other, net (779) 3,559 (303) (1,094)
Total non-operating expense (9,579) (3,523) (24,038) (22,278)
Income (loss) before income taxes (1,501) 2,726 14,899 16,551
Income tax benefit (expense) (1,843) 1,538 (5,983) (5,944)
Net income (loss) (3,344) 4,264 8,916 10,607
Preferred stock dividends (4,660) (3,496) (13,844) (10,423)
Additional capital contribution
dividends -- (1,164) -- (3,467)
Net loss available for common
stockholders $(8,004) $(396) $(4,928) $(3,283)
Net loss available for common
stockholders per common share:
Basic/diluted $(0.12) $(0.01) $(0.08) $(0.05)
Seminis Inc.
Net Seed Sales
Currency stated at Actual Exchange rates
(In US Million $)
Third Quarter Ended Nine Months Ended
FY 2003 FY 2002 %Change FY 2003 FY 2002 %Change
North America $34.2 $36.3 -5.7% $119.1 $122.0 -2.3%
Europe & Middle East 53.5 45.0 18.7% 160.0 135.2 18.4%
Far East 13.8 11.7 18.1% 40.6 43.2 -6.1%
South America 8.3 9.2 -9.8% 20.9 23.7 -12.1%
Total Seed Sales $109.8 $102.2 7.4% $340.6 $324.1 5.1%
