Saticoy, California
July 27, 1999Seminis, Inc., the world's
largest developer, producer, and marketer of vegetable and fruit seeds, today announced
financial results for the third quarter and nine months ended June 30, 1999. According to
Alfonso Romo, Chairman, "Seminis has reinforced its leadership position in the
vegetable and fruit seed market by strengthening its sales and earnings growth and
building research and development, production and operations, and sales and marketing
capabilities. As the Company completes the first phase of its strategy of industry
consolidation and internal investment, the business platform will be in place to address
unmet grower, distributor, processor, and consumer needs through innovative technology
delivered in seeds.''
For the third quarter 1999, net sales increased 34% to $124.7 million from $92.8 million.
Seminis'
sales growth was driven by strong demand for its products throughout major markets,
particularly in North America and Europe. Seminis' sales growth, excluding the effect of
acquisitions, was 22%. Gross profit for the third quarter grew 39% to $77.2 million from
$55.3 million over the same quarter last year. The gross margin also grew from 59.6% to
61.9%. EBIT for the third quarter of 1999 grew significantly to $4.8 million compared to a
$2.1 million loss for the same quarter last year. EBITDA for the third quarter grew 236%
to $16.3 million for the quarter compared to $4.9 million for the same period last year.
In the third quarter of 1999, Seminis reported an extraordinary charge for the write off
of unamortized loan fees of $4.0 million related to the Company's refinancing of
its credit facility. The Company reported a net loss of $4.6 million or $(0.17) per share
before the extraordinary item compared to a net loss of $5.8 million or $(0.23) per share
for the same quarter in the prior year. For the third quarter 1999, Seminis' net loss was
$8.6 million or $(0.27) per share.
For the nine months ended June 30, 1999, sales grew 29% to $407.1 million from $315.2
million for the same period in the previous year. Gross profit for the nine months was
$252.9 million, a 31% increase over the $193.0 million reported in the first nine months
of 1998. Seminis reported a net loss before extraordinary item of $0.5 million or $(0.14)
per share, for the nine month period in 1999 compared to net income of $11.5 million or
$0.23 per share, excluding the $134.3 million deduction due to the repurchase of
redeemable common stock for the same period in 1998. The net loss in 1999 was primarily
due to increased operating expenses, interest expenses, amortization due to the
acquisitions made in 1998 and an extraordinary charge for the write off of unamortized
loan fees.
Alfonso Romo said, "With our recent initial public offering of common stock and debt
refinancing, we improved our balance sheet and we will aggressively pursue our vision to
apply technology to vegetable and fruit seeds to enhance profitability through the
vegetable and fruit production and distribution chain. Our third quarter results reflect
that our business strategy to make strategic and complementary acquisitions is working.''
Recent events:
-- Completion of the initial public offering of 13,750,000 of Class A common stock at
$15.00 per share, raising net proceeds of $191.7 million to repay debt.
-- Completion of debt refinancing of $350 million in senior credit facilities of which
$150 million is under a revolving credit facility.
-- For the first nine months, sales from newly acquired companies reached $51.8 million or
12.7% of Seminis' net sales.
-- Strengthened its sales and marketing distribution network in Poland, Turkey and
Argentina, increasing capability to cross-sell products from newly acquired companies.
Alfonso Romo said, "Our goal is to become closer to customers, understand their
needs, and direct our R&D efforts to create new products that meet those needs.
Through our enhanced cross-selling capability with our subsidiaries in Poland, Turkey and
Argentina, we can market and leverage our research and development investment across a
broader base.''
Seminis is the largest developer, producer and marketer of vegetable 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 tastier foods and create foods with
better nutritional content. Seminis has established a worldwide presence and global
distribution network that spans 120 countries with 70 research stations in 19 countries
and production sites in 32 countries. Seminis is a majority owned subsidiary of Savia, a
Mexico based conglomerate with leadership positions in financial services, packaging and
fresh foods.
SEMINIS, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(In thousands, except per share data)
| . |
Three
months ended
June 30 |
Nine
months ended
June 30 |
| . |
1999
(unaudited) |
1998
(unaudited) |
1999
(unaudited) |
1998
(unaudited) |
| Net sales |
$124,745 |
$92,817 |
$407,056 |
$315,156 |
| Cost of goods sold |
47,573 |
37,476 |
154,184 |
122,134 |
| Gross profit |
77,172 |
55,341 |
252,872 |
193,022 |
| Total operating expenses |
72,296 |
57,634 |
217,291 |
159,254 |
| Income (loss) from operations |
4,876 |
(2,293) |
35,581 |
33,768 |
| Other income (expense) |
. |
. |
. |
. |
| Interest expense, net |
(11,230) |
(7,546) |
(34,914) |
(16,828) |
| Other, net |
(100) |
145 |
(262) |
(50) |
| Total non-operating expenses |
(11,330) |
(7,401) |
(35,176) |
(16,878) |
| Income (loss) from continuing
operations before income taxes |
(6,454) |
(9,694) |
405 |
16,890 |
| Income tax benefit (expense) |
1,821 |
3,904 |
(952) |
(5,368) |
| Income (loss) before
extraordinary item |
(4,633) |
(5,790) |
(547) |
11,522 |
| Extraordinary item |
(3,973) |
-- |
(3,973) |
-- |
| Net income (loss) |
(8,606) |
(5,790) |
(4,520) |
11,522 |
| Preferred stock dividends |
(1,306) |
(500) |
(2,644) |
(1,500) |
Accretion of Old Class B
Redeemable
Common Stock |
(699) |
(677) |
(2,223) |
(3,163) |
Excess of repurchase price
over redemption value for repurchase of
Old Class B Redeemable Common Stock |
-- |
-- |
-- |
(134,289) |
| Net income (loss) available
for common stockholders |
$(10,611) |
$(6,967) |
$(9,387) |
$(127,430) |
| Income (loss) available for
common stockholders per common share: |
. |
. |
. |
. |
Basic and Diluted Income
(loss)
before extraordinary item |
$(0.17) |
$(0.23) |
$(0.14) |
$(4.25) |
| Extraordinary item |
(0.10) |
-- |
(0.10) |
-- |
| Net income (loss) available
for common stockholders |
$(0.27) |
$(0.23) |
$(0.24) |
$(4.25) |
| Weighted average shares, basic
and diluted |
39,867 |
30,000 |
38,639 |
30,000 |
|
THE "SAFE HARBOR'' STATEMENT UNDER THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.
The statements in this press release that are not historical facts are forward-looking
statements that involve risks and uncertainties, including but not limited to, risks
associated with the inherent uncertainty of research, product development and
commercialization, the impact of competitive products, patents, and other risks and
uncertainties, including those detailed from time to time in periodic reports, including
the S-1 Prospectus filed with the Securities and Exchange Commission.
Company news release
N2008 |
