|
Oxnard, California
February 13, 2001
Seminis, Inc. (Nasdaq: SMNS) the world's leading developer, producer
and marketer of vegetable and fruit seeds, today announced results for the three-month period ended December 29, 2000.
Net sales for the quarter held its ground at $81.2 million, despite the impact on sales of the divested non-core businesses and the
continued weakness of the Euro and other currencies against the U.S. dollar. Excluding $1.5 million in non-core sales generated in
the first quarter of fiscal year 2000 by businesses divested during that year, sales for the quarter increased by 1.9 percent from
$79.7 million to $81.2 million, despite the absorption of a $3.3 million foreign exchange loss. In constant dollars (excluding foreign
exchange losses), and excluding the impact of divestitures of non-core businesses, sales for the quarter increased by 6.1 percent,
to $84.5 million from $79.7 million in the previous year's quarter.
North American net seed sales for the period increased by 11.9 percent to $32.7 million, from $29.2 million in the first quarter last
year, driven by improvements in the Mexican market, higher overall seed prices, and the repositioning of Seminis' sales force in the
region. Also, benefiting from the Company's sales force reorganization, South American sales improved by 25.7 percent to $7.6
million, from $6 million last year. In Europe and the Middle East, sales declined by 0.9 percent to $25.5 million from $25.7 million in
the same period last year. In the Far East, sales declined by 2.2 percent to $13 million from $13.3 million in the same quarter of
previous year, due to a weakening in demand and poor weather.
Eugenio Najera, President and COO, commented, "We are encouraged by the very first signs of improvement resulting from the
reorganization of our sales force to provide for greater flexibility and focus on each of our core markets. Our renewed focus on the
sales structure and goals is starting to pay off and promises to be an important factor in our long term growth." Gross margins for
the quarter declined to 59.4 percent, after charges of approximately $2 million related to the Company's initiative to improve its
working capital condition by selling off low margin seeds. Not taking into account the impact of this initiative, gross margins
remained flat at 62 percent.
The company believes that its efforts to streamline its cost structure are paying off and demonstrated clear improvements in this
area. Total operating expenses for the quarter declined by $6.6 million or 9.1 percent to $66 million compared to the same quarter
last year, as a result of the successful ongoing implementation of the Global Optimization Plan. Excluding non-recurring charges,
mainly $1.5 million facility moving costs related to the centralization of operations to the Company's headquarters in Oxnard, Calif.,
and $0.5 million in consulting fees related to restructuring initiatives, operating expenses for the period declined by 11.9 percent to
$64 million.
Mr. Najera added, "What we started to see in the first quarter allows us to be optimistic that we are taking the right steps to bring
the Company back to profitability. The initiatives taken as part of our Global Restructuring and Optimization Plan enabled us to
reduce operating costs and increase efficiencies throughout our organization."
"Today, we are committed to continue on this path going forward, focused as we are on growing the top line and continuing the
integration of our acquired businesses, while cutting costs and improving efficiencies."
For the quarter, as it is usual due to the cyclical nature of the business and its industry, the Company posted an operating loss of
$17.7 million, representing an improvement of 20.4 percent from a loss of $22.3 million for the same period in fiscal year 2000.
Excluding $2 million in restructuring costs, Seminis' operating loss for the quarter was $15.7 million.
Excluding $4.2 million dividends paid in kind, the Company posted a net loss for the quarter of $16.8 million, compared with a net
loss of $19.1 million for the year-ago period. Net loss available to common shareholders for the quarter was $21.1 million, or $0.35
per share, compared with a net loss of $20.7 million, or $0.35 per share, for the first quarter of fiscal 2000 as a result of the
above-mentioned dividends.
As of December 31, 2000, the Company was not in compliance with certain financial covenants under its $350 million loan
agreement. The Company requested and obtained a waiver with respect to these covenants that extends through April 30, 2001.
About Seminis
Seminis (Nasdaq: SMNS) 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, and create better tasting foods and foods with better
nutritional content. Seminis has established a worldwide presence and global distribution network that spans 120 countries.
Seminis is a majority owned subsidiary of Savia (NYSE: VAI), a Mexico-based conglomerate with leadership positions in financial
services, packaging and fresh foods.
All statements in this press release other than statements of historical facts are "forward looking" statements, including without
limitation, statements regarding the Company's financial position, business strategy, plans, and objectives of management and
industry conditions. Although the Company believes that the expectations reflected in such forward-looking statements are
reasonable, it can give no assurance that such expectations will prove to be correct. The following factors, among others, may
affect the Company's actual results and could cause such results to differ materially from those expressed in any forward-looking
statements made by or on behalf of the Company: competitive factors, agribusiness risks, governmental and economic risks
associated with foreign operations, commercial success of new products, proprietary protection of and advances in technology,
possible need for additional financing as well as the ability of the Company to successfully integrate recent acquisitions and its
management information systems and controls. Further information on the factors that could affect the Company's financial results
is contained in the Company's S-1 registration statement dated June 29, 1999, and filed with the Securities and Exchange
Commission.
SEMINIS, INC. - Net Seed Sales
| (in US Millions) |
1Q
FY 2001 |
1Q
FY 2000 |
%Change |
| North America |
$32.7 |
$29.2 |
11.9% |
| Europe & Middle East |
$25.5 |
$25.7 |
-0.9% |
| Far East |
$13.0 |
$13.3 |
-2.2% |
| South America |
$7.6 |
$6.0 |
25.7% |
| Total Seed Sales |
$78.8 |
$74.2 |
6.2% |
|
SEMINIS, INC.
Consolidated Statements of Operations
(In thousands, except per share data)
| |
For the Three Months Ended |
| |
December 29,
2000
(unaudited) |
December
31, 1999 |
| Net sales |
$81,233 |
$81,186 |
| Cost of goods sold |
32,962 |
30,850 |
| Gross profit |
48,271 |
50,336 |
| Operating expenses |
|
|
| Research and development expenses |
13,556 |
15,754 |
| Selling, general and administrative expenses |
45,133 |
49,412 |
| Amortization of intangible assets |
7,300 |
7,426 |
| Total operating expenses |
65,989 |
72,592 |
| |
|
|
| Loss
from operations |
(17,718) |
(22,256) |
| |
|
|
| Other income (expense) |
|
|
| Interest
income |
554 |
724 |
| Interest
expense |
(8,665) |
(
7,423) |
| Foreign
currency gain |
2,442 |
583 |
| Other,
net |
(101)
(5,770) |
290
(5,826) |
| Loss before income taxes |
(23,488) |
(28,082) |
| Income tax benefit |
6,651 |
9,015 |
| Net loss |
(16,837) |
(19,067) |
| |
|
|
| Preferred stock dividends |
(3,430) |
(1,639) |
| Additional capital contribution dividends |
(819) |
--- |
| Net loss available for common stockholders |
$(21,086) |
$(20,706) |
Net loss available for common stockholders per
common share, basic and diluted |
$(0.35) |
$(0.35) |
|
SEMINIS, INC.
Consolidated Balance Sheets
(In thousands, except per share data)
| |
As of
December 29, 2000
(Unaudited) |
As of
September 30, 2000 |
| ASSETS: |
|
|
| Current assets |
|
|
| Cash and cash equivalents |
$ 27,837 |
$ 22,479 |
| Accounts receivable, net |
144,955 |
162,929 |
| Inventories |
352,243 |
333,287 |
| Prepaid expenses
and other current assets |
4,804 |
3,105 |
| Total current assets |
529,839 |
521,800 |
| |
|
|
| Deferred income taxes |
15,954 |
5,699 |
| Property, plant and equipment, net |
218,534 |
226,505 |
| Intangible assets, net |
205,517 |
227,839 |
| Other assets |
16,575 |
16,194 |
| |
986,419 |
998,037 |
| LIABILITIES, MANDATORY REDEEMABLE STOCK AND STOCKHOLDERS' EQUITY: |
|
|
| Current liabilities |
|
|
| Short-term borrowings |
$19,864 |
$20,178 |
| Current maturities of long-term debt |
318,723 |
325,658 |
| Accounts payable |
54,134 |
54,955 |
| Accrued liabilities |
82,625 |
96,453 |
| Total current liabilities |
475,346 |
497,244 |
| |
|
|
| Long-term debt |
22,623 |
23,468 |
| Minority interest in subsidiaries |
1,695 |
1,445 |
| Total liabilities |
499,664 |
522,157 |
| Commitments and contingencies |
|
|
Mandatory redeemable stock
Class B Redeemable Preferred Stock, $.01 par value;
25 shares authorized as of December 29, 2000 and
September 30, 2000;
25 shares issued and outstanding as of December 29, 2000 and September 30, 2000 |
25,000 |
25,000 |
| Total mandatory
redeemable stock |
25,000 |
25,000 |
Stockholders' equity
Class C Preferred Stock, $.01 par value; 12 shares
authorized as of December 29, 2000 and September 30, 2000;
12 shares issued and outstanding as of December 29, 2000 and September 30, 2000 |
1 |
1 |
Class A Common Stock,
$.01 par value; 91,000 shares authorized as of
December 29, 2000 and September 30, 2000;
13,976 shares issued and outstanding as of
December 29, 2000 and September 30, 2000 |
140 |
140 |
Class B Common Stock,
$.01 par value; 60,229 shares authorized as of
December 29, 2000 and September 30, 2000;
45,848 shares issued and outstanding as of
December 29, 2000 and September 30, 2000 |
459 |
459 |
| Additional paid-in-capital |
762,580 |
712,981 |
| Accumulated deficit |
(265,792) |
(244,706) |
| Accumulated other comprehensive loss |
(35,633) |
(17,995) |
| Total stockholders' equity |
461,755 |
450,880 |
| |
$986,419 |
$998,037 |
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Company news release
N3318 |
