June 22 Release: Q&A Information
| Quarter 1, Fiscal 2001: | EPS = $.25* | |
| Quarter 2, Fiscal 2001: | EPS = $.54 | |
| Quarter 3, Fiscal 2001: | EPS = $.22 | |
| Year to Date Earnings, Q1- Q3: | EPS = $1.01 |
FISCAL 2001 DETAILS—QUARTERS REPORTED TO DATE
| Revision Due To: | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Quarter | Reported EPS | UAP Matters | Change in Accounting Principle—Current Quarter Operations | Change in Accounting Principle—Years Prior to Fiscal 2001 | Revised EPS | ||||||||||
| 1—FY 01 | $ | .30 | $ | .04 | $ | .00 | $ | (.09 | ) | $ | .25 | ||||
| 2—FY 01 | $ | .58 | $ | (.02 | ) | $ | (.02 | ) | $ | .00 | $ | .54 | |||
| 3—FY 01 | $ | .19 | $ | .02 | $ | .01 | $ | .00 | $ | .22 | |||||
Quarter 1: Rollforward
Amounts in $million except per share amounts
| | | Adjustment to Quarterly Results Due To: | | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | As Reported: Quarter 1 FY 2001 | Reclassification Due to Change in Accounting | Change in Accounting Principles— Current Quarter | Restatement Due to UAP Matters | Cumulative Effect Changing Accounting Principles— Prior Years | Revised Quarterly Total | |||||||||||||
| Sales—Packaged Foods | $ | 1,747.9 | $ | (37.8 | ) | $ | (21.4 | ) | $ | 1,688.7 | |||||||||
| Sales—Refrigerated Foods | $ | 3,343.6 | $ | 89.0 | $ | (4.0 | ) | $ | 3,428.6 | ||||||||||
| Sales—Agricultural Products | $ | 1,710.1 | $ | 22.5 | $ | 226.8 | $ | 1,959.4 | |||||||||||
| Total Sales | $ | 6,801.6 | $ | 73.7 | $ | (25.4 | ) | $ | 226.8 | $ | — | $ | 7,076.7 | ||||||
| Total Cost of Goods Sold | $ | 5,754.7 | $ | 199.4 | $ | 46.6 | $ | 197.3 | $ | — | $ | 6,198.0 | |||||||
| Total Gross Profit | $ | 1,046.9 | $ | (125.7 | ) | $ | (72.0 | ) | $ | 29.5 | $ | — | $ | 878.7 | |||||
| Total SG&A, exc Corporate & Amt | $ | 637.1 | $ | (125.7 | ) | $ | (70.6 | ) | $ | — | $ | — | $ | 440.8 | |||||
| Operating Profit: Packaged Foods | $ | 206.6 | $ | (3.6 | ) | $ | (1.2 | ) | $ | — | $ | — | $ | 201.8 | |||||
| Operating Profit: Refrigerated Foods | $ | 108.2 | $ | 1.5 | $ | (0.1 | ) | $ | — | $ | — | $ | 109.6 | ||||||
| Operating Profit: Agricultural Products | $ | 95.0 | $ | 2.1 | $ | (0.1 | ) | $ | 29.5 | $ | — | $ | 126.5 | ||||||
| Total Operating Income | $ | 409.8 | $ | 0.0 | $ | (1.4 | ) | $ | 29.5 | $ | — | $ | 437.9 | ||||||
| Other (Corporate, Amortization, or Interest Adjustments) | $ | 174.1 | $ | — | $ | (0.3 | ) | $ | 173.8 | ||||||||||
| Income Before Taxes | $ | 235.7 | $ | 0.0 | $ | (1.1 | ) | $ | 29.5 | $ | — | $ | 264.1 | ||||||
| Income Taxes | $ | 89.6 | $ | (0.4 | ) | $ | 10.8 | $ | 100.0 | ||||||||||
| Net Income | $ | 146.1 | $ | 0.0 | $ | (0.7 | ) | $ | 18.7 | $ | (43.9 | ) | $ | 120.2 | |||||
| Earnings Per Share | $ | 0.30 | $ | 0.00 | $ | (0.00 | ) | $ | 0.04 | $ | (0.09 | ) | $ | 0.25 | |||||
1
Quarter 2: Rollforward
Amounts in $million except per share amounts
| | | Adjustment to Quarterly Results Due To: | | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | As Reported: Quarter 2 FY 2001 | Reclassification Due to Change in Accounting | Change in Accounting Principles— Current Quarter | Restatement Due to UAP Matters | Cumulative Effect Changing Accounting Principles— Prior Years | Revised Quarterly Total | |||||||||||||
| Sales—Packaged Foods | $ | 2,413.7 | $ | — | $ | (17.1 | ) | $ | 2,396.6 | ||||||||||
| Sales—Refrigerated Foods | $ | 3,366.9 | $ | — | $ | (4.4 | ) | $ | 3,362.5 | ||||||||||
| Sales—Agricultural Products | $ | 1,425.6 | $ | — | $ | 97.2 | $ | 1,522.8 | |||||||||||
| Total Sales | $ | 7,206.2 | $ | — | $ | (21.5 | ) | $ | 97.2 | $ | — | $ | 7,281.9 | ||||||
| Total Cost of Goods Sold | $ | 5,970.9 | $ | — | $ | 43.3 | $ | 113.8 | $ | — | $ | 6,128.0 | |||||||
| Total Gross Profit | $ | 1,235.3 | $ | — | $ | (64.8 | ) | $ | (16.6 | ) | $ | — | $ | 1,153.9 | |||||
| Total SG&A, exc Corporate & Amt | $ | 543.4 | $ | — | $ | (48.7 | ) | $ | — | $ | — | $ | 494.7 | ||||||
| Operating Profit: Packaged Foods | $ | 397.9 | $ | — | $ | (15.4 | ) | $ | — | $ | — | $ | 382.5 | ||||||
| Operating Profit: Refrigerated Foods | $ | 154.2 | $ | — | $ | (0.7 | ) | $ | — | $ | — | $ | 153.5 | ||||||
| Operating Profit: Agricultural Products | $ | 139.8 | $ | — | $ | — | $ | (16.6 | ) | $ | — | $ | 123.2 | ||||||
| Total Operating Income | $ | 691.9 | $ | — | $ | (16.1 | ) | $ | (16.6 | ) | $ | — | $ | 659.2 | |||||
| Other (Corporate, Amortization, or Interest Adjustments) | $ | 201.4 | $ | — | $ | 0.1 | $ | 201.5 | |||||||||||
| Income Before Taxes | $ | 490.5 | $ | — | $ | (16.2 | ) | $ | (16.6 | ) | $ | — | $ | 457.7 | |||||
| Income Taxes | $ | 188.8 | $ | (6.2 | ) | $ | (6.1 | ) | $ | 176.5 | |||||||||
| Net Income | $ | 301.7 | $ | — | $ | (10.0 | ) | $ | (10.5 | ) | $ | 281.2 | |||||||
| Earnings Per Share | $ | 0.58 | $ | — | $ | (0.02 | ) | $ | (0.02 | ) | $ | 0.54 | |||||||
2
Quarter 3: Rollforward
Amounts in $million except per share amounts
| | | Adjustment to Quarterly Results Due To: | | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | As Reported: Quarter 3 FY 2001 | Reclassification Due to Change in Accounting | Change in Accounting Principles— Current Quarter | Restatement Due to UAP Matters | Cumulative Effect Changing Accounting Principles— Prior Years | Revised Quarterly Total | ||||||||||||||
| Sales—Packaged Foods | $ | 2,343.4 | $ | — | $ | (28.8 | ) | $ | 2,314.6 | |||||||||||
| Sales—Refrigerated Foods | $ | 3,166.8 | $ | — | $ | (2.4 | ) | $ | 3,164.4 | |||||||||||
| Sales—Agricultural Products | $ | 919.0 | $ | — | $ | — | $ | 919.0 | ||||||||||||
| Total Sales | $ | 6,429.2 | $ | — | $ | (31.2 | ) | $ | — | $ | — | $ | 6,398.0 | |||||||
| Total Cost of Goods Sold | $ | 5,405.2 | $ | — | $ | 38.6 | $ | 13.2 | $ | — | $ | 5,457.0 | ||||||||
| Total Gross Profit | $ | 1,024.0 | $ | — | $ | (69.8 | ) | $ | (13.2 | ) | $ | — | $ | 941.0 | ||||||
| Total SG&A, exc Corporate & Amt | $ | 696.4 | $ | — | $ | (82.0 | ) | $ | (29.0 | ) | $ | — | $ | 585.4 | ||||||
| �� | ||||||||||||||||||||
| Operating Profit: Packaged Foods | $ | 268.7 | $ | — | $ | 10.6 | $ | — | $ | — | $ | 279.3 | ||||||||
| Operating Profit: Refrigerated Foods | $ | 76.5 | $ | — | $ | 1.6 | $ | — | $ | — | $ | 78.1 | ||||||||
| Operating Profit: Agricultural Products | $ | (17.6 | ) | $ | — | $ | — | $ | 15.8 | $ | — | $ | (1.8 | ) | ||||||
| Total Operating Income | $ | 327.6 | $ | — | $ | 12.2 | $ | 15.8 | $ | — | $ | 355.6 | ||||||||
| Other (Corporate, Amortization, or Interest Adjustments) | $ | 167.4 | $ | — | $ | 0.1 | $ | 167.5 | ||||||||||||
| Income Before Taxes | $ | 160.2 | $ | — | $ | 12.1 | $ | 15.8 | $ | — | $ | 188.1 | ||||||||
| Income Taxes | $ | 61.7 | $ | 4.7 | $ | 5.9 | $ | 72.3 | ||||||||||||
| Net Income | $ | 98.5 | $ | — | $ | 7.4 | $ | 9.9 | $ | 115.8 | ||||||||||
| Earnings Per Share | $ | 0.19 | $ | — | $ | 0.01 | $ | 0.02 | $ | — | $ | 0.22 | ||||||||
ANNUAL EPS:
Excluding restructuring and related charges for fiscal 1999 and 2000 and the cumulative effect of a change in accounting for fiscal 1998.
| Fiscal Year | Before Restatement | After Restatement | ||||
|---|---|---|---|---|---|---|
| 1997 | $ | 1.34 | $ | 1.33 | ||
| 1998 | $ | 1.35 | $ | 1.33 | ||
| 1999 | $ | 1.46 | $ | 1.40 | ||
| 2000 | $ | 1.67 | $ | 1.60 | ||
ANNUAL EPS:
Including restructuring and related changes for fiscal 1999 and 2000 and the cumulative effect of a change in accounting for fiscal 1998.
| Fiscal Year | Before Restatement | After Restatement | ||||
|---|---|---|---|---|---|---|
| 1997 | $ | 1.34 | $ | 1.33 | ||
| 1998 | $ | 1.32 | $ | 1.30 | ||
| 1999 | $ | 0.75 | $ | 0.69 | ||
| 2000 | $ | 0.86 | $ | 0.80 | ||
3
Amts in millions except per share amts
The specific changes to previously reported results are discussed in Note 22 of the company's 10K/A.
FINANCIAL HIGHLIGHTS : AS FILED IN APPLICABLE YR OR QTR
excludes restructuring and related charges in 1999 & 2000 and cumulative effect of change in acct. for 1998
| Reporting Period | Net Sales | Operating Income | Income Before Taxes | Net Income | Diluted EPS | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1998 | $ | 24,220 | $ | 1,573 | $ | 1,041 | $ | 642 | $ | 1.35 | |||||
| 1999 | $ | 24,594 | $ | 1,706 | $ | 1,123 | $ | 696 | $ | 1.46 | |||||
| 2000 | $ | 25,386 | $ | 1,910 | $ | 1,288 | $ | 798 | $ | 1.67 | |||||
| Q1—2001 | $ | 6,802 | $ | 410 | $ | 236 | $ | 146 | $ | 0.30 | |||||
| Q2—2001 | $ | 7,206 | $ | 692 | $ | 491 | $ | 302 | $ | 0.58 | |||||
| Q3—2001 | $ | 6,429 | $ | 328 | $ | 160 | $ | 99 | $ | 0.19 | |||||
FINANCIAL HIGHLIGHTS : AFTER REVISION
excludes restructuring and related charges in 1999 & 2000 and cumulative effect of change in acct. for 1998
| Reporting Period | Net Sales | Operating Income | Income Before Taxes | Net Income | Diluted EPS | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1998 | $ | 24,545 | $ | 1,557 | $ | 1,026 | $ | 632 | $ | 1.33 | |||||
| 1999 | $ | 24,844 | $ | 1,659 | $ | 1,076 | $ | 668 | $ | 1.40 | |||||
| 2000 | $ | 25,535 | $ | 1,860 | $ | 1,239 | $ | 768 | $ | 1.60 | |||||
| Q1—2001 | $ | 7,077 | $ | 438 | $ | 264 | $ | 120 | $ | 0.25 | |||||
| Q2—2001 | $ | 7,282 | $ | 659 | $ | 458 | $ | 281 | $ | 0.54 | |||||
| Q3—2001 | $ | 6,398 | $ | 356 | $ | 188 | $ | 116 | $ | 0.22 | |||||
FINANCIAL HIGHLIGHTS : AS FILED IN APPLICABLE YR OR QTR
includes restructuring and related charges in 1999 & 2000 and cumulative effect of change in acct. for 1998
| Reporting Period | Net Sales | Operating Income | Income Before Taxes | Net Income | Diluted EPS | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1998 | $ | 24,220 | $ | 1,573 | $ | 1,041 | $ | 627 | $ | 1.32 | |||||
| 1999 | $ | 24,594 | $ | 1,266 | $ | 682 | $ | 358 | $ | 0.75 | |||||
| 2000 | $ | 25,386 | $ | 1,288 | $ | 666 | $ | 413 | $ | 0.86 | |||||
| Q1—2001 | $ | 6,802 | $ | 410 | $ | 236 | $ | 146 | $ | 0.30 | |||||
| Q2—2001 | $ | 7,206 | $ | 692 | $ | 491 | $ | 302 | $ | 0.58 | |||||
| Q3—2001 | $ | 6,429 | $ | 328 | $ | 160 | $ | 99 | $ | 0.19 | |||||
FINANCIAL HIGHLIGHTS : AFTER REVISION
includes restructuring and related charges in 1999 & 2000 and cumulative effect of change in acct. for 1998
| Reporting Period | Net Sales | Operating Income | Income Before Taxes | Net Income | Diluted EPS | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1998 | $ | 24,545 | $ | 1,557 | $ | 1,026 | $ | 618 | $ | 1.30 | |||||
| 1999 | $ | 24,844 | $ | 1,219 | $ | 636 | $ | 330 | $ | 0.69 | |||||
| 2000 | $ | 25,535 | $ | 1,239 | $ | 618 | $ | 382 | $ | 0.80 | |||||
| Q1—2001 | $ | 7,077 | $ | 438 | $ | 264 | $ | 120 | $ | 0.25 | |||||
| Q2—2001 | $ | 7,282 | $ | 659 | $ | 458 | $ | 281 | $ | 0.54 | |||||
| Q3—2001 | $ | 6,398 | $ | 356 | $ | 188 | $ | 116 | $ | 0.22 | |||||
4
Restated Financial Statements—Excluding Restructuring Charges—Quarterly Info
| FISCAL 1999 | Qtr 1 Fiscal 1999 | Qtr 2 Fiscal 1999 | Qtr 3 Fiscal 1999 | Qtr 4 Fiscal 1999 | Total Fiscal 1999 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Packaged Food : Sales | $ | 1,641.3 | $ | 2,027.8 | $ | 1,892.0 | $ | 1,834.2 | $ | 7,395.3 | ||||||
| Refrigerated Food : Sales | $ | 2,948.9 | $ | 2,976.9 | $ | 2,879.0 | $ | 3,076.9 | $ | 11,881.7 | ||||||
| Agricultural Products : Sales | $ | 2,039.5 | $ | 1,507.2 | $ | 1,015.1 | $ | 1,005.6 | $ | 5,567.4 | ||||||
| Total Sales | $ | 6,629.7 | $ | 6,511.9 | $ | 5,786.1 | $ | 5,916.7 | $ | 24,844.4 | ||||||
| Cost of Good Sold | $ | 5,812.6 | $ | 5,606.9 | $ | 5,006.0 | $ | 5,115.0 | $ | 21,540.5 | ||||||
| Gross Profit | $ | 817.1 | $ | 905.0 | $ | 780.1 | $ | 801.7 | $ | 3,303.9 | ||||||
| SG&A Expense of Reporting Segments | $ | 427.7 | $ | 413.8 | $ | 406.0 | $ | 397.0 | $ | 1,644.5 | ||||||
| Packaged Food : Operating Profit | $ | 170.0 | $ | 292.7 | $ | 267.1 | $ | 249.4 | $ | 979.2 | ||||||
| Refrigerated Food : Operating Profit | $ | 64.6 | $ | 113.7 | $ | 83.7 | $ | 107.2 | $ | 369.2 | ||||||
| Agricultural Products : Operating Profit | $ | 154.8 | $ | 84.8 | $ | 23.3 | $ | 48.1 | $ | 311.0 | ||||||
| Total Operating Profit | $ | 389.4 | $ | 491.2 | $ | 374.1 | $ | 404.7 | $ | 1,659.4 | ||||||
| Other Expense (Corporate, Amortization) | $ | 78.8 | $ | 57.5 | $ | 61.2 | $ | 68.9 | $ | 266.4 | ||||||
| Interest | $ | 77.2 | $ | 91.4 | $ | 87.1 | $ | 60.9 | $ | 316.6 | ||||||
| Earnings Before Tax | $ | 233.4 | $ | 342.3 | $ | 225.8 | $ | 274.9 | $ | 1,076.4 | ||||||
| Income Tax | $ | 90.6 | $ | 131.6 | $ | 86.3 | $ | 99.8 | $ | 408.3 | ||||||
| Cumulative Change in Accounting Principle | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||
| Net Income | $ | 142.8 | $ | 210.7 | $ | 139.5 | $ | 175.1 | $ | 668.1 | ||||||
| Earnings per Diluted Share | $ | 0.30 | $ | 0.44 | $ | 0.29 | $ | 0.37 | $ | 1.40 | ||||||
| Earnings per Diluted Share, exc. Cumulative Effect Change | $ | 0.30 | $ | 0.44 | $ | 0.29 | $ | 0.37 | $ | 1.40 | ||||||
5
Restated Financial Statements—Excluding Restructuring Charges—Quarterly Info
| FISCAL 2000 | Qtr 1 Fiscal 2000 | Qtr 2 Fiscal 2000 | Qtr 3 Fiscal 2000 | Qtr 4 Fiscal 2000 | Total Fiscal 2000 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Packaged Food : Sales | $ | 1,710.7 | $ | 2,052.6 | $ | 1,891.4 | $ | 1,956.2 | $ | 7,610.9 | ||||||
| Refrigerated Food : Sales | $ | 3,212.3 | $ | 3,199.3 | $ | 3,137.6 | $ | 3,331.6 | $ | 12,880.8 | ||||||
| Agricultural Products : Sales | $ | 1,872.0 | $ | 1,461.9 | $ | 847.0 | $ | 862.0 | $ | 5,042.9 | ||||||
| Total Sales | $ | 6,795.0 | $ | 6,713.8 | $ | 5,876.0 | $ | 6,149.8 | $ | 25,534.6 | ||||||
| Cost of Good Sold | $ | 5,919.4 | $ | 5,743.1 | $ | 5,058.5 | $ | 5,239.1 | $ | 21,960.1 | ||||||
| Gross Profit | $ | 875.6 | $ | 970.7 | $ | 817.5 | $ | 910.7 | $ | 3,574.5 | ||||||
| SG&A Expense of Reporting Segments | $ | 444.3 | $ | 441.2 | $ | 380.0 | $ | 448.6 | $ | 1,714.1 | ||||||
| Packaged Food : Operating Profit | $ | 198.2 | $ | 307.6 | $ | 287.5 | $ | 293.6 | $ | 1,086.9 | ||||||
| Refrigerated Food : Operating Profit | $ | 117.7 | $ | 141.6 | $ | 110.5 | $ | 121.1 | $ | 490.9 | ||||||
| Agricultural Products : Operating Profit | $ | 115.4 | $ | 80.3 | $ | 39.5 | $ | 47.4 | $ | 282.6 | ||||||
| Total Operating Profit | $ | 431.3 | $ | 529.5 | $ | 437.5 | $ | 462.1 | $ | 1,860.4 | ||||||
| Other Expense (Corporate, Amortization) | $ | 98.3 | $ | 71.0 | $ | 71.0 | $ | 77.3 | $ | 317.6 | ||||||
| Interest | $ | 76.4 | $ | 77.3 | $ | 80.8 | $ | 69.3 | $ | 303.8 | ||||||
| Earnings Before Tax | $ | 256.6 | $ | 381.2 | $ | 285.7 | $ | 315.5 | $ | 1,239.0 | ||||||
| Income Tax | $ | 97.0 | $ | 145.2 | $ | 108.8 | $ | 120.4 | $ | 471.4 | ||||||
| Cumulative Change in Accounting Principle | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||
| Net Income | $ | 159.6 | $ | 236.0 | $ | 176.9 | $ | 195.1 | $ | 767.6 | ||||||
| Earnings per Diluted Share | $ | 0.33 | $ | 0.49 | $ | 0.37 | $ | 0.41 | $ | 1.60 | ||||||
| Earnings per Diluted Share, exc. Cumulative Effect Change | $ | 0.33 | $ | 0.49 | $ | 0.37 | $ | 0.41 | $ | 1.60 | ||||||
6
Restated Financial Statements—Including Restructuring Charges—Quarterly Info
| FISCAL 1999 | Qtr 1 Fiscal 1999 | Qtr 2 Fiscal 1999 | Qtr 3 Fiscal 1999 | Qtr 4 Fiscal 1999 | Total Fiscal 1999 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Packaged Food : Sales | $ | 1,641.3 | $ | 2,027.8 | $ | 1,892.0 | $ | 1,834.2 | $ | 7,395.3 | ||||||
| Refrigerated Food : Sales | $ | 2,948.9 | $ | 2,976.9 | $ | 2,879.0 | $ | 3,076.9 | $ | 11,881.7 | ||||||
| Agricultural Products : Sales | $ | 2,039.5 | $ | 1,507.2 | $ | 1,015.1 | $ | 1,005.6 | $ | 5,567.4 | ||||||
| Total Sales | $ | 6,629.7 | $ | 6,511.9 | $ | 5,786.1 | $ | 5,916.7 | $ | 24,844.4 | ||||||
| Cost of Good Sold | $ | 5,812.6 | $ | 5,606.9 | $ | 5,006.0 | $ | 5,115.0 | $ | 21,540.5 | ||||||
| Gross Profit | $ | 817.1 | $ | 905.0 | $ | 780.1 | $ | 801.7 | $ | 3,303.9 | ||||||
| SG&A Expense of Reporting Segments | $ | 427.7 | $ | 413.8 | $ | 406.0 | $ | 397.0 | $ | 1,644.5 | ||||||
| Restructuring Charges | $ | 440.8 | $ | 440.8 | ||||||||||||
| Packaged Food : Operating Profit | $ | 170.0 | $ | 292.7 | $ | 267.1 | $ | 210.4 | $ | 940.2 | ||||||
| Refrigerated Food : Operating Profit | $ | 64.6 | $ | 113.7 | $ | 83.7 | $ | (251.4 | ) | $ | 10.6 | |||||
| Agricultural Products : Operating Profit | $ | 154.8 | $ | 84.8 | $ | 23.3 | $ | 4.9 | $ | 267.8 | ||||||
| Total Operating Profit | $ | 389.4 | $ | 491.2 | $ | 374.1 | $ | (36.1 | ) | $ | 1,218.6 | |||||
| Other Expense (Corporate, Amortization) | $ | 78.8 | $ | 57.5 | $ | 61.2 | $ | 68.9 | $ | 266.4 | ||||||
| Interest | $ | 77.2 | $ | 91.4 | $ | 87.1 | $ | 60.9 | $ | 316.6 | ||||||
| Earnings Before Tax | $ | 233.4 | $ | 342.3 | $ | 225.8 | $ | (165.9 | ) | $ | 635.6 | |||||
| Income Tax | $ | 90.6 | $ | 131.6 | $ | 86.3 | $ | (3.1 | ) | $ | 305.4 | |||||
| Cumulative Change in Accounting Principle | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||
| Net Income | $ | 142.8 | $ | 210.7 | $ | 139.5 | $ | (162.8 | ) | $ | 330.2 | |||||
| Earnings per Diluted Share | $ | 0.30 | $ | 0.44 | $ | 0.29 | $ | (0.35 | ) | $ | 0.69 | |||||
| Earnings per Diluted Share, exc. Cumulative Effect Change | $ | 0.30 | $ | 0.44 | $ | 0.29 | $ | (0.35 | ) | $ | 0.69 | |||||
7
Restated Financial Statements—Including Restructuring Charges—Quarterly Info
| FISCAL 2000 | Qtr 1 Fiscal 2000 | Qtr 2 Fiscal 2000 | Qtr 3 Fiscal 2000 | Qtr 4 Fiscal 2000 | Total Fiscal 2000 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Packaged Food : Sales | $ | 1,710.7 | $ | 2,052.6 | $ | 1,891.4 | $ | 1,956.2 | $ | 7,610.9 | ||||||
| Refrigerated Food : Sales | $ | 3,212.3 | $ | 3,199.3 | $ | 3,137.6 | $ | 3,331.6 | $ | 12,880.8 | ||||||
| Agricultural Products : Sales | $ | 1,872.0 | $ | 1,461.9 | $ | 847.0 | $ | 862.0 | $ | 5,042.9 | ||||||
| Total Sales | $ | 6,795.0 | $ | 6,713.8 | $ | 5,876.0 | $ | 6,149.8 | $ | 25,534.6 | ||||||
| Cost of Good Sold | $ | 5,959.0 | $ | 5,802.0 | $ | 5,085.8 | $ | 5,336.1 | $ | 22,182.9 | ||||||
| Gross Profit | $ | 836.0 | $ | 911.8 | $ | 790.2 | $ | 813.7 | $ | 3,351.7 | ||||||
| SG&A Expense of Reporting Segments | $ | 448.3 | $ | 456.5 | $ | 409.5 | $ | 476.2 | $ | 1,790.5 | ||||||
| Restructuring Charges | $ | 3.5 | $ | 30.2 | $ | 27.7 | $ | 260.8 | $ | 322.2 | ||||||
| Packaged Food : Operating Profit | $ | 169.4 | $ | 239.1 | $ | 235.6 | $ | 133.3 | $ | 777.4 | ||||||
| Refrigerated Food : Operating Profit | $ | 109.6 | $ | 123.7 | $ | 98.8 | $ | (9.2 | ) | $ | 322.9 | |||||
| Agricultural Products : Operating Profit | $ | 105.2 | $ | 62.3 | $ | 18.6 | $ | (47.4 | ) | $ | 138.7 | |||||
| Total Operating Profit | $ | 384.2 | $ | 425.1 | $ | 353.0 | $ | 76.7 | $ | 1,239.0 | ||||||
| Other Expense (Corporate, Amortization) | $ | 98.3 | $ | 71.0 | $ | 71.0 | $ | 77.3 | $ | 317.6 | ||||||
| Interest | $ | 76.4 | $ | 77.3 | $ | 80.8 | $ | 69.3 | $ | 303.8 | ||||||
| Earnings Before Tax | $ | 209.5 | $ | 276.8 | $ | 201.2 | $ | (69.9 | ) | $ | 617.6 | |||||
| Income Tax | $ | 79.1 | $ | 105.5 | $ | 76.8 | $ | (26.1 | ) | $ | 235.3 | |||||
| Cumulative Change in Accounting Principle | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||
| Net Income | $ | 130.4 | $ | 171.3 | $ | 124.4 | $ | (43.8 | ) | $ | 382.3 | |||||
| Earnings per Diluted Share | $ | 0.27 | $ | 0.36 | $ | 0.26 | $ | (0.09 | ) | $ | 0.80 | |||||
| Earnings per Diluted Share, exc. Cumulative Effect Change | $ | 0.27 | $ | 0.36 | $ | 0.26 | $ | (0.09 | ) | $ | 0.80 | |||||
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Restated Financial Highlights
Excluding Restructuring Charges in 1999 & 2000
| | Fiscal 1998 | Fiscal 1999 | Fiscal 2000 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Packaged Food : Sales | $ | 7,192.5 | $ | 7,395.3 | $ | 7,610.9 | ||||
| Refrigerated Food : Sales | $ | 11,713.8 | $ | 11,881.7 | $ | 12,880.8 | ||||
| Agricultural Products : Sales | $ | 5,638.3 | $ | 5,567.4 | $ | 5,042.9 | ||||
| Total Sales | $ | 24,544.6 | $ | 24,844.4 | $ | 25,534.6 | ||||
| Cost of Good Sold | $ | 21,351.6 | $ | 21,540.5 | $ | 21,960.1 | ||||
| Gross Profit | $ | 3,193.0 | $ | 3,303.9 | $ | 3,574.5 | ||||
| SG&A Expense of Reporting Segments | $ | 1,635.6 | $ | 1,644.5 | $ | 1,714.1 | ||||
| Packaged Food : Operating Profit | $ | 968.3 | $ | 979.2 | $ | 1,086.9 | ||||
| Refrigerated Food : Operating Profit | $ | 230.1 | $ | 369.2 | $ | 490.9 | ||||
| Agricultural Products : Operating Profit | $ | 359.0 | $ | 311.0 | $ | 282.6 | ||||
| Total Operating Profit | $ | 1,557.4 | $ | 1,659.4 | $ | 1,860.4 | ||||
| Other Expense (Corporate, Amortization) | $ | 231.2 | $ | 266.4 | $ | 317.6 | ||||
| Interest | $ | 300.7 | $ | 316.6 | $ | 303.8 | ||||
| Earnings Before Tax | $ | 1,025.5 | $ | 1,076.4 | $ | 1,239.0 | ||||
| Income Tax | $ | 393.2 | $ | 408.3 | $ | 471.4 | ||||
| Cumulative Change in Accounting Principle | $ | 14.8 | $ | — | $ | — | ||||
| Net Income | $ | 617.5 | $ | 668.1 | $ | 767.6 | ||||
| Earnings per Diluted Share | $ | 1.30 | $ | 1.40 | $ | 1.60 | ||||
| Earnings per Diluted Share, exc. Cumulative Effect Change | $ | 1.33 | $ | 1.40 | $ | 1.60 | ||||
Restated Financial Highlights
Including Restructuring Charges in 1999 & 2000
| | Fiscal 1998 | Fiscal 1999 | Fiscal 2000 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Packaged Food : Sales | $ | 7,192.5 | $ | 7,395.3 | $ | 7,610.9 | ||||
| Refrigerated Food : Sales | $ | 11,713.8 | $ | 11,881.7 | $ | 12,880.8 | ||||
| Agricultural Products : Sales | $ | 5,638.3 | $ | 5,567.4 | $ | 5,042.9 | ||||
| Total Sales | $ | 24,544.6 | $ | 24,844.4 | $ | 25,534.6 | ||||
| Cost of Good Sold | $ | 21,351.6 | $ | 21,540.5 | $ | 22,182.9 | ||||
| Gross Profit | $ | 3,193.0 | $ | 3,303.9 | $ | 3,351.7 | ||||
| SG&A Expense of Reporting Segments | $ | 1,635.6 | $ | 1,644.5 | $ | 1,790.5 | ||||
| Restructuring Charges | $ | — | $ | 440.8 | $ | 322.2 | ||||
| Packaged Food : Operating Profit | $ | 968.3 | $ | 940.2 | $ | 777.4 | ||||
| Refrigerated Food : Operating Profit | $ | 230.1 | $ | 10.6 | $ | 322.9 | ||||
| Agricultural Products : Operating Profit | $ | 359.0 | $ | 267.8 | $ | 138.7 | ||||
| Total Operating Profit | $ | 1,557.4 | $ | 1,218.6 | $ | 1,239.0 | ||||
| Other Expense (Corporate, Amortization) | $ | 231.2 | $ | 266.4 | $ | 317.6 | ||||
| Interest | $ | 300.7 | $ | 316.6 | $ | 303.8 | ||||
| Earnings Before Tax | $ | 1,025.5 | $ | 635.6 | $ | 617.6 | ||||
| Income Tax | $ | 393.2 | $ | 305.4 | $ | 235.3 | ||||
| Cumulative Change in Accounting Principle | $ | 14.8 | $ | — | $ | — | ||||
| Net Income | $ | 617.5 | $ | 330.2 | $ | 382.3 | ||||
| Earnings per Diluted Share | $ | 1.30 | $ | 0.69 | $ | 0.80 | ||||
| Earnings per Diluted Share, exc. Cumulative Effect Change | $ | 1.33 | $ | 0.69 | $ | 0.80 | ||||
As we have reported in press releases dated May 23, 2001 and June 22, 2001, the company is restating current and historical results for two main reasons:
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results of the first three quarters of fiscal 2001, the effect is relatively small and the various components are quantified in schedules attached in another area of this document.
In addition to these two main issues, we have changed some expense classifications during our year. These reclassifications were reflected beginning with our second quarter of 2001, which means we are reclassifying some of the expense categorizations for the first quarter of fiscal 2001 and fiscal 2000, 1999, and 1998. These classification changes do not impact reported income before income taxes, net income, or income per share amounts, but they do alter certain line items on the income statement. These reclassifications include: 1) reclassification of shipping and handling costs from a reduction in net sales to costs of goods sold and 2) a reclassification of consumer sales incentive costs from selling, general, and administrative expenses to a reduction in net sales. Such reclassifications also conform to recently issued accounting literature.
The cumulative effect of the changes was reflected as a first quarter of fiscal 2001 charge of $43.9 million after-tax. As the press release states, there are three areas impacted by the cumulative effect of changes in accounting. They are as follows:
Yes. The accounting adjustment of $43.9 million is for periods prior to fiscal 2001, but the cumulative effect is taken as a charge in the first quarter of fiscal 2001. However, operating results for the fiscal quarters in fiscal 2001 have also been adjusted to reflect the new accounting principles, but the impact is relatively small.
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2001, given that none of the operating results for quarters in fiscal 2000 reflect the change in accounting principles, yet the quarters in fiscal 2001 do?
Regarding the change in accounting principles, the results of operations in fiscal 2001 reflect the new accounting principles, while the results of operations for fiscal 2000 do not, but the impact on operations in 2001 is relatively small. Going forward, our results reflect these changes in accounting principles.
Many of the major issues that shaped our third quarter have continued into our fourth quarter: a weakening economy, higher than normal energy costs, changing inventory levels among our major customers, increased marketing spending, weaker results for some of our business units, and other items. This has resulted in our expectation of fourth quarter EPS to be in the range of $.19 - $.23. We will discuss segment results when we officially release earnings, which is scheduled for June 28. Keep in mind that these results are estimates and are not final.
Our reported EPS is expected to be in the range of $1.20 - $1.24. The range is $1.29 - $1.33 before a $.09 reduction in EPS due to the cumulative effect of the changes in accounting.
Our projections are for a strong single-digit growth rate in EPS, and perhaps a double-digit growth rate in EPS depending on the economy. Because we look for calendar 2001 to be a tough environment, we expect much of the earnings gains to be concentrated in the second half of the fiscal year, which falls in calendar year 2002.
The numbers we provided in the May 23 press release were estimates and have changed slightly as we completed our review of the numbers. One difference between the numbers provided in previous press releases and the ones in the amended documents has to do with a change in classification for certain types of rebates: for example, in the May 23 documents we treated them as increases in revenues, and in the final amended documents they are recorded as reductions in cost of goods sold.
In our final review, we restated the May 25, 1997 retained earnings by a reduction of $7.0 million to reflect the net income effect of the adjustment for fiscal 1997 of 1) deferred delivery transactions and vendor rebates, and 2) intracompany profit on sales within UAP. The net impact reduces EPS for fiscal 1997 by $.01. The adjustment to fiscal 1998 earnings for issues related to the restatement is shown in the tables located elsewhere in this document, and generally relates to booking revenue from deferred delivery sales during the fiscal year when shipment occurred.
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