EXHIBIT 19 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
Three Months Ended Six Months Ended
JUNE 30 JUNE 30
-------------------- --------------------
1997 1996 1997 1996
-------- -------- -------- --------
Net sales. . . . . . . . . . . . . . . . . . . . $481,334 $411,945 $956,807 $797,456
Costs and expenses:
Cost of products sold . . . . . . . . . . . . 379,113 315,961 759,171 618,682
Selling, general and
administrative expenses . . . . . . . . . . . 47,310 48,376 101,698 93,517
Research and development. . . . . . . . . . . . 3,282 2,816 6,716 6,461
Interest expense. . . . . . . . . . . . . . . . 4,854 3,484 9,272 6,233
Other (income). . . . . . . . . . . . . . . . . (209) (257) (414) (4,795)
Minority interest in net income . . . . . . . . 1,291 1,149 2,513 2,042
-------- -------- -------- --------
Income before income taxes . . . . . . . . . . 45,693 40,416 77,851 75,316
Taxes based on income - cash. . . . . . . . . 16,502 14,225 28,627 27,066
Taxes based on income - deferred. . . . . . . 1,198 975 1,373 1,334
-------- -------- -------- --------
Net income . . . . . . . . . . . . . . . . . . . $ 27,993 $ 25,216 $ 47,851 $ 46,916
-------- -------- -------- --------
-------- -------- -------- --------
Earnings per share of common stock . . . . . . . $ .52 $ .47 $ .89 $ .88
-------- -------- -------- --------
-------- -------- -------- --------
Cash dividends paid per share of common stock. . $ .20 $ .18 $ .40 $ .36
-------- -------- -------- --------
-------- -------- -------- --------
Average common shares and common
stock equivalents outstanding . . . . . . . . . 53,914 53,337 53,926 53,270
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EXHIBIT 19 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(IN THOUSANDS OF DOLLARS)
Jun 30 Dec 31
ASSETS 1997 1996
------ ---------- ----------
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 16,589 $ 10,223
Accounts receivable - net. . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,475 216,740
Inventories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,589 200,397
Prepaid expenses and deferred charges. . . . . . . . . . . . . . . . . . . . . . 39,477 39,561
---------- ----------
Total current assets. . . . . . . . . . . . . . . . . . . . . . . . . . . 500,130 466,921
---------- ----------
Property and equipment, net. . . . . . . . . . . . . . . . . . . . . . . . . . . 634,648 583,491
Excess of cost of investments in
subsidiaries over net assets acquired. . . . . . . . . . . . . . . . . . . . . 150,937 108,928
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,289 9,455
---------- ----------
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164,226 118,383
---------- ----------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,299,004 $1,168,795
---------- ----------
---------- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current portion of long-term debt. . . . . . . . . . . . . . . . . . . . . . . $ 4,996 $ 1,706
Short-term borrowings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,178 3,006
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179,331 164,638
Accrued salaries and wages . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,797 34,163
Accrued income and other taxes . . . . . . . . . . . . . . . . . . . . . . . . . 15,099 10,932
---------- ----------
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . 235,401 214,445
Long-term debt, less current portion . . . . . . . . . . . . . . . . . . . . . . 308,075 241,077
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,306 56,661
Other liabilities and deferred credits . . . . . . . . . . . . . . . . . . . . . 58,776 57,726
---------- ----------
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 660,558 569,909
---------- ----------
Minority interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,230 31,789
STOCKHOLDERS' EQUITY:
Common stock (58,643,557 and 57,897,316 shares) . . . . . . . . . . . . . . . 5,864 5,790
Capital in excess of par value. . . . . . . . . . . . . . . . . . . . . . . . 174,562 149,481
Retained income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 587,677 561,049
Cumulative translation adjustment . . . . . . . . . . . . . . . . . . . . . . (1,346) 6,588
Common stock held in treasury (5,640,842 and 5,536,617 shares). . . . . . . . (159,541) (155,811)
---------- ----------
Total stockholders' equity. . . . . . . . . . . . . . . . . . . . . . . . 607,216 567,097
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY . . . . . . . . . . . . . . . . . . . $1,299,004 $1,168,795
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EXHIBIT 19 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(IN THOUSANDS OF DOLLARS)
Six Months Ended
June 30
-------------------------
1997 1996
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES
- ------------------------------------
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 47,851 $ 46,916
NON-CASH ITEMS:
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . 41,249 34,514
Minority interest in net income . . . . . . . . . . . . . . . . . . . . . . . 2,513 2,042
Deferred income taxes, non-current portion. . . . . . . . . . . . . . . . . . 1,361 1,097
(Gain) loss on sale of property and equipment . . . . . . . . . . . . . . . . (118) 157
---------- ----------
Cash provided by operations. . . . . . . . . . . . . . . . . . . . . . . . . . . 92,856 84,726
Change in working capital, net of effects of
acquisitions and dispositions. . . . . . . . . . . . . . . . . . . . . . . . . (23,097) (30,958)
Net change in deferred charges and credits . . . . . . . . . . . . . . . . . . . (7,714) 4,423
---------- ----------
Net cash provided by operating activities. . . . . . . . . . . . . . . . . . . . 62,045 58,191
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
- ------------------------------------
Additions to property and equipment. . . . . . . . . . . . . . . . . . . . . . . (73,893) (48,870)
Business acquisition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,945) (63,393)
Business divestiture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,984 12,752
Proceeds from sale of property and equipment . . . . . . . . . . . . . . . . . . 1,577 1,161
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (33) 16
---------- ----------
Net cash used in investing activities. . . . . . . . . . . . . . . . . . . . . . (51,310) (98,334)
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CASH FLOWS FROM FINANCING ACTIVITIES
- ------------------------------------
Change in long-term debt excluding debt assumed in
business acquisitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,290 68,725
Change in short-term debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,665 (906)
Cash dividends paid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (21,223) (18,938)
Subsidiary dividends to minority stockholders. . . . . . . . . . . . . . . . . . (1,835) (1,841)
Common stock purchased for the treasury. . . . . . . . . . . . . . . . . . . . . (3,730) 0
Stock incentive programs and related tax effects . . . . . . . . . . . . . . . . 51 115
---------- ----------
Net cash (used) provided by financing activities . . . . . . . . . . . . . . . . (3,782) 47,155
---------- ----------
Effect of exchange rates on cash . . . . . . . . . . . . . . . . . . . . . . . . (587) (1,998)
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Net increase in cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,366 $ 5,014
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EXHIBIT 19 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS
BEMIS COMPANY, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all the information and
footnotes necessary for a comprehensive presentation of financial position and
results of operation.
It is management's opinion, however, that all material adjustments
(consisting of normal recurring accruals) have been made which are necessary for
a fair financial statement presentation. The results for the interim period are
not necessarily indicative of the results to be expected for the year.
For further information, refer to the consolidated financial statements and
footnotes included in the Company's annual report on Form 10-K for the year
ended December 31, 1996.
TAXES BASED ON INCOME
The Company's 1996 effective tax rate of 39% differs from the federal
statutory rate of 35% primarily due to state and local income taxes.