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Oxnard, California
January 16, 2003
- Net income reaches $16.1
million in 2002.
- Adjusted EBITDA improves 18.7% to $85.1 million from a year
ago.
- Debt reduced by $57.6 million; successfully extends credit
facility for one year
Seminis Inc. (Nasdaq:
SMNS), the world's largest developer, producer and marketer of
vegetable and fruit seeds, reported a net income of $16.1
million for the year ended September 30, 2002. This compares to
a net loss of $134.5 million for fiscal year 2001.
After taking into account dividend accruals of $14.5 million as
well as $4.2 million of contingently payable dividends 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 $0.04 per
share. Had the exchange transaction between Savia and Seminis
been completed, net income available for common shareholders
would have been $1.6 million or $0.02 per share in fiscal year
2002. This compares to a net loss available to common
shareholders of $152.8 million or $2.55 per share in fiscal year
2001.
"The progress we are reporting today confirms that the strategic
business plan and optimization measures implemented by
management during the previous two years have borne fruit both
operationally and financially," said Seminis Chairman and Chief
Executive Officer, Mr. Alfonso Romo. "During fiscal year 2002,
and for the seventh consecutive quarter, the company delivered
on its promise to increase sales, improve margins and contain
expenses." He added: "Now we will focus on innovative strategies
that allow the company to capture value in the food chain,
consolidating Seminis' future value".
Total sales for fiscal year 2002 increased 0.6% to $452.6
million compared with $449.9 million during the same period last
year. Fiscal year 2002 total sales were impacted negatively by
$4.8 million as a result of currency fluctuations. In constant
dollars and excluding sales related to non-core and divested
businesses, net seed sales increased 4.0% to $437.2 million.
"We have improved our pricing policy and new product
introduction process and continue to simplify our overall
product portfolio," said Seminis President and Chief Operating
Officer, Mr. Eugenio Najera. "In addition to our traditional
seed business, we are currently implementing different programs
that will allow the company to grow beyond our historic customer
base. This innovative strategy will allow us to capture value
that we create throughout the food distribution chain," he said.
Gross profit for fiscal year 2002 increased to 62.0% of sales or
$280.7 million, from 61.4% or $276.0 million during the same
period last year, excluding $58.2 million of non-recurring
inventory write downs in fiscal year 2001.
Total operating expenses for fiscal year 2002 were reduced by
13.0% to $236.2 million, from $271.6 million, which includes a
$12.0 million severance provision, $7.6 in expenses related to
global restructuring and $2.6 in restricted share awards in
fiscal year 2001 and $0.8 in charges related to global
restructuring and $7.3 of restricted share awards in fiscal year
2002. This reduction was partially attributable to optimization
initiatives that reduce administrative and overhead costs.
Operating income for fiscal year 2002 increased to $52.6
million, up 18.2% from $26.6 million for fiscal year 2001
excluding the aforementioned non- recurring expenses.
EBITDA adjusted for the aforementioned charges improved 18.7%
for the year to $85.1 million from a year ago, representing
18.8% of sales.
During the twelve months ended September 30, 2002, the company
reduced its total outstanding debt by $57.6 million or 17.1%
from a year ago. Total debt outstanding as of September 30, 2002
was $278.5 million. Seminis successfully negotiated a one-year
extension of its $224.7 million outstanding syndicated credit
facility with its lenders. This amendment extends the final
maturity of the credit facility to December 31, 2003.
On December 13, 2002, Savia, S.A. de C.V., Seminis' majority
stockholder, announced that it signed a letter of intent with
Fox Paine and Company, LLC, a San Francisco private equity firm,
under which Fox Paine and certain Savia related parties will
acquire all of the outstanding shares of Seminis, Inc. In
response to the proposed transaction, Seminis formed a special
committee of the independent directors to evaluate the proposed
transaction and its fairness and to make a recommendation to the
full Board of Directors.
Details of the Exchange Agreement between Savia and Seminis can
be found in the 10-K filing for fiscal year 2002.
FINAL RESULTS FOR THE FOURTH QUARTER ENDING SEPTEMBER 30, 2002
Net income for the fourth quarter of fiscal year 2002 was $5.5
million compared to a loss of $15.4 million during the same
quarter last year. As a result of accrued dividend obligations
of $4.8 million on the preferred class B and C stock and
additional paid in capital, the company posted a net profit
available to common stockholders of $0.7 million, or $0.01 per
share. This compares to a loss available to common shareholders
of $20.2 million, or $0.34 per share, during the same quarter
last year.
Net sales for the fourth quarter were $113.7 million compared to
$110.7 million for the same quarter last year representing an
increase of 2.7%.
Gross profit increased to $70.1 million or 61.7% of sales
compared to $67.2 million or 60.7% for the same quarter last
year.
Operating expenses for the reported quarter of fiscal 2002 were
reduced by $5.4 million, or 8.4%, to $58.7 million, from $64.1
million.
Operating income in the fourth quarter was $11.4 million
compared to $3.1 million for the same quarter last year.
Operating income in the reported quarter increased by $8.3
million, or 267.6%.
EBITDA (Operating income/loss with depreciation and amortization
added back) for the quarter was $19.9 million compared to $14.5
million for the same quarter last year, an improvement of 37.4%.
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)
As of As of
September 30, September 30,
2002 2001
ASSETS:
Current assets
Cash and cash equivalents $36,805 $22,323
Accounts receivable, net 140,315 141,691
Other receivable-Korean asset sale -- 20,612
Inventories 272,527 279,683
Prepaid expenses and other current
assets 2,427 3,436
Total current assets 452,074 467,745
Property, plant and equipment, net 168,729 182,261
Intangible assets, net 160,803 169,664
Other assets 18,391 15,687
$799,997 $835,357
LIABILITIES, MANDATORILY REDEEMABLE
STOCK AND STOCKHOLDERS' EQUITY:
Current liabilities
Short-term borrowings $28,532 $19,665
Current maturities of long-term
debt 21,709 67,527
Accounts payable 38,179 45,423
Accrued liabilities 98,624 89,169
Total liabilities 187,044 221,784
Long-term debt 228,293 248,898
Deferred income tax 15,753 15,736
Minority interest in subsidiaries 1,902 1,721
Total liabilities 432,992 488,139
Commitments and contingencies
Total mandatorily redeemable stock 29,500 27,500
Total stockholders' equity 337,505 319,718
$799,997 $835,357
SEMINIS, INC.
Consolidated Statements of Operations
(In thousands, except per share data)
For the three months ended For the year ended
Sep 30, Sep 30, Sep 30, Sep 30,
2002 2001 2002 2001
(Unaudited)(Unaudited)
Net sales $113,655 $110,703 $452,607 $449,895
Cost of goods sold 43,567 43,539 171,892 232,067
Gross profit 70,088 67,164 280,715 217,828
Research and development 11,833 12,551 44,316 52,441
Selling, general and
administrative expenses 42,353 44,590 174,854 191,113
Amortization of intangible assets 4,528 6,929 17,065 28,034
Total operating expenses 58,714 64,070 236,235 271,588
Income (loss) from operations 11,374 3,094 44,480 (53,760)
Other income (expense)
Interest expense, net (6,535) (8,487) (27,719) (39,084)
Other, net (2,835) 793 1,794 (1,636)
Total non-operating expense (9,370) (7,694) (25,925) (40,720)
Income (loss) from continuing
operations before income taxes 2,004 (4,600) 18,555 (94,480)
Income tax benefit (expense) 3,475 (10,807) (2,469) (39,975)
Net income (loss) 5,479 (15,407) 16,086 (134,455)
Preferred stock dividends (3,595) (3,577) (14,018) (13,986)
Additional capital contribution (1,203) (1,175) (4,670) (4,338)
Net income (loss) available for
common stockholders $681 $(20,159) $(2,602) $(152,779)
Net income (loss) available for
common stockholders per common
share basic and diluted $0.01 $(0.34) $(0.04) $(2.55)
Seminis Inc.
Net Seed Sales
Currency stated at FY 2001 Exchange rates
(In US Million $)
Fourth Quarter Ended Year Ended
FY 2002 FY 2001 % Change FY 2002 FY 2001 % Change
North America $43.8 $38.7 13.2% $166.0 $160.3 3.6%
Europe & Middle East 34.4 36.6 -6.0% 169.8 158.1 7.4%
Far East 19.1 18.1 5.5% 63.0 63.0 -0.1%
SAANZ 10.8 9.0 20.0% 38.4 38.8 -0.7%
Total Seed Sales $108.1 $102.3 5.6% $437.2 $420.2 4.0%
SOURCE Seminis Inc.
Seminis Annual SEC Form 10-K Report is at http://biz.yahoo.com/e/030114/smns10-k.html
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