|
Oxnard, California
February 11, 2003
- Adjusted EBITDA improves
to $0.2 million
- Net seed sales increase 2.3% in constant dollars
- Gross margin improves to 62.5% from 62.2%
Seminis Inc. (Nasdaq: SMNS), the world's largest developer,
producer and marketer of vegetable and fruit seeds, today
reported results for the three- month period ended December 27,
2002.
"We are very proud of our achievements to date and I am happy to present the
results of our first quarter of fiscal year 2003," said Seminis Chairman and
Chief Executive Officer Mr. Alfonso Romo. "The fundamental stability of our
business model has been clearly reflected in the financial results during the
last eight quarters. Moving forward, we expect to continue this trend of
increased profitability and cash generation."
The company reported that earnings before interest, income tax, depreciation and
amortization (EBITDA) improved by $0.9 million, reducing the loss to $0.3
million in the first quarter of fiscal year 2003 from a loss of $1.2 million in
the first quarter last year. The first quarter of Seminis' fiscal year has the
lowest sales due to the seasonal nature of the agronomic cycle.
To better reflect the results of the company's ongoing operations, excluding
non-recurring expenses incurred during the previous year and gains or losses
from sales of fixed assets, adjusted EBITDA reached $0.2 million versus a loss
of $0.5 million last fiscal year.
Mr. Eugenio Najera, President and COO of Seminis, commented: "We have
successfully molded the company into a more efficient entity with a greater
potential. The fact that for the first time we have been able to achieve a
positive adjusted EBITDA during our seasonally most difficult quarter is further
proof of how productive our efforts have been."
The company also reported that net sales for the first quarter were $80.6
million compared to $80.1 million for the same quarter last year. In constant
dollars and excluding divested non-core business sales of $2.0 million from
first quarter 2002, sales increased 2.1% to $79.8 million from $78.1 million
during the same period last year.
Gross profit increased to $50.4 million or 62.5% of sales compared to $49.8
million or 62.2% for the same quarter last year. Gross profit from net seed
sales was 63.4% versus 62.8% for the previous year.
Operating expenses for the reported quarter were reduced by $1.9 million, or
3.2%, to $58.1 million, from $60.0 million in the first quarter of fiscal year
2002. Excluding the expenses of divested non-core businesses and other
non-recurring items from fiscal year 2002, expenses would have increased by
approximately $3.0 million. Ongoing gains in operational efficiency were offset
by increased insurance costs, other costs impacted by inflation and the currency
impact on Euro and Korean Won based operating expenses.
The company's operating loss in the first quarter was reduced by $1.1 million
dollars to $8.1 million from a loss of $9.3 million for the same quarter last
year.
Net loss for the first quarter of fiscal year 2003 was $11.8 million compared to
a loss of $19.3 million during the same quarter last year. After taking into
account $4.0 million of contingent dividends payable if the Exchange Agreement
(announced August 1, 2002) reached with its majority shareholder Savia is not
consummated, the net loss per common share available to common shareholders was
$0.25 per share. Assuming the exchange transaction between Savia and Seminis had
been completed, net loss available for common shareholders would have been $12.3
million or $0.19 per share in the first quarter of fiscal year 2003. This
compares to a net loss available to common shareholders of $23.9 million or
$0.40 per share in the first quarter of fiscal year 2002.
About Seminis
Seminis Inc. (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, 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 of U.S. Dollars)
As of As of
Dec. 27, Sept. 30,
2002 2002
ASSETS:
Current assets
Cash and cash equivalents $31,957 $36,805
Accounts receivable, net 131,773 140,315
Inventories 287,393 272,527
Prepaid expenses and other current
assets 5,370 2,427
Total current assets 456,493 452,074
Property, plant and equipment, net 167,279 168,729
Goodwill, net 101,083 98,931
Intangible assets, net 58,885 61,872
Other assets 19,151 18,391
$802,891 $799,997
LIABILITIES, MANDATORILY REDEEMABLE
STOCK AND STOCKHOLDERS' EQUITY:
Current liabilities
Short-term borrowings $39,716 $28,532
Current maturities of long-term
debt 229,126 21,709
Accounts payable 38,143 38,179
Accrued liabilities 100,586 98,624
Total liabilities 407,571 187,044
Long-term debt 15,808 228,293
Deferred income tax 13,289 15,753
Minority interest in subsidiaries 1,797 1,902
Total liabilities 438,465 432,992
Commitments and contingencies
Mandatorily Redeemable Stock
Class B Redeemable Preferred Stock,
$.01 par value; 25 shares
authorized as of December 27,
2002 and September 30, 2002;
25 shares issued and
outstanding as of December 27,
2002 and September 30, 2002 30,000 29,500
Total mandatorily redeemable stock 30,000 29,500
Total stockholders' equity 334,426 337,505
$802,891 $799,997
SEMINIS, INC.
Consolidated Statements of Operations
(In thousands of U.S. dollars, except per share data)
For the 3 months ended
Dec. 27, Dec. 28,
2002 2001
Net sales $80,616 $80,079
Cost of goods sold 30,233 30,286
Gross profit 50,383 49,793
Research and development 11,425 11,899
Selling, general and administrative
expenses 42,700 43,907
Amortization of intangible assets 3,927 4,158
Total operating expenses 58,052 59,964
Gain (loss) on sale of fixed assets (446) 916
Loss from operations (8,115) (9,255)
Other expense
Interest expense, net (6,490) (7,170)
Other, net (53) (1,586)
Total non-operating expense (6,543) (8,756)
Loss from continuing operations
before income taxes (14,658) (18,011)
Income tax benefit (expense) 2,878 (1,300)
Net loss (11,780) (19,311)
Preferred stock dividends (4,523) (3,430)
Additional capital contribution -- (1,139)
Net loss available for common
stockholders $(16,303) $(23,880)
Net loss available for common
stockholders per common share
basic and diluted $(0.25) $(0.40)
SEMINIS, INC.
Consolidated Statements of Operations
(In thousands of U.S. dollars)
For the 3 months ended
Dec. 27, Dec. 28,
2002 2001
Loss from operations $(8,115) $(9,255)
Depreciation and amortization 7,821 8,050
EBITDA (294) (1,205)
Adjustments:
Consulting fees for restructuring -- 284
Gain/(loss) on sale of fixed assets 446 (916)
Restricted stock -- 1,300
Subtotal adjustments 446 668
Adjusted EBITDA $152 $(537)
Seminis Inc.
Net Seed Sales
Currency stated at FY 2002 Exchange rates
(In US Million $)
First Quarter Ended
FY 2002 FY 2001 % Change
North America $31.9 $32.4 -1.5%
Europe & Middle East 29.4 26.4 11.2%
Far East 8.6 10.5 -17.9%
South America 6.8 5.7 19.8%
Total Seed Sales $76.7 $75.0 2.3%
|
