Exhibit 99.1
Press Release
[SEMINIS LOGO] SEMINIS INC.
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CONTACT:
Enrique Osorio
805-647-1572
enrique.osorio@seminis.com
Patrick Turner
805-647-1572
patrick.turner@seminis.com
SEMINIS REPORTS SECOND QUARTER AND SIX MONTH RESULTS
OXNARD, Calif. -- May 13, 2003 - Seminis, Inc., the world's largest developer,
producer and marketer of vegetable and fruit seeds, yesterday reported final
results for the three-month and six-month periods ended March 28, 2003. The
company released preliminary second quarter results late last month due to
filing requirements of its majority shareholder, Savia S.A. de C.V.
RESULTS FOR THE THREE-MONTH PERIOD ENDED MARCH 28, 2003
As previously announced, net sales for the three months ended March 28, 2003
were $159.0 million compared to $152.3 million for the same period last year.
This represents an increase of 4.4% from the same period last year. The increase
was primarily due to increased sales in Europe, the Middle East and Africa as a
result of favorable exchange rate fluctuations in the region.
Gross profit increased to $101.0 million or 63.5% of sales compared to $95.9
million or 62.9% for the same period last year. This increase was primarily due
to the successful implementation of new pricing strategies and product mix
optimization.
Operating expenses in the reported period increased by $5.2 million to $63.6
million, compared to $58.4 million for the same period last year, an increase of
8.9%. This increase was primarily due to an employee severance accrual as well
as increases in legal and administrative fees related to the transaction
proposed by Savia S.A. de C.V. and Fox Paine & Company, LLC in December 2002.
Operating income for the period was $39.0 million compared to $41.8 million for
the same period last year, a decrease of $2.9 million or 6.8%. This change
differs from the 3.1% or $1.2 million dollar increase highlighted in the
preliminary results published April 30, 2003 due to a reclassification of a gain
related to the divestiture of a non-core business in fiscal year 2002 that was
previously classified as non-operating income.
Net income for the period was $24.0 million compared to $25.7 million during the
same quarter last year. Net income available for common shareholders was $19.4
million or $0.30 per share compared to $21.0 million or $0.34 per share during
the same period last year.
The total outstanding syndicated bank debt as of March 28, 2003 was $223.3
million compared to $258.7 million as of March 29, 2002, a reduction of $35.4
million or 11.1%.
Seminis Chairman and Chief Executive Officer, Mr. Alfonso Romo, commented:
"These results are a testament to the strong fundamentals of the Seminis
business model and the financial soundness of the company. We continue to
improve our cash flow generation capabilities while at the same time reducing
our bank debt. In fact, we continue to earn the confidence of our creditors by
meeting and exceeding our financial covenants. Our team has a clear sense of
direction, and we have focused our attention on growing the business."
RESULTS FOR THE SIX-MONTH PERIOD ENDING MARCH 28, 2003
Total sales for the six months ended March 28, 2003 increased 3.1% to $239.6
million from $232.4 million during the same period last year. Net seed sales
reached $230.8 million during the six-month period, an increase of 4.0% compared
to $221.9 million for the same period of last year. The increase was primarily
due to favorable currency fluctuations.
Gross profit for the period increased to 63.2%, from 62.7% for the same period
last year, partly due to the previously stated new pricing strategies and
improved product mix.
Total operating expenses for the period increased by 2.8% to $121.6 million,
from $118.3 million for the same period last year, primarily due to the
previously mentioned increase in operating expenses during the three-month
period ended March 28,2003.
Operating income for the period decreased to $30.9 million, down 5.3% from $32.6
million for the same period last year.
Net income available to common shareholders for the period was $3.1 million or
$0.05 per share compared with a net loss available to common shareholders of
$2.9 million, or $0.05 per share for the same period year. The increase in net
income available to shareholders was primarily due to an overall increase in
profitability as well as favorable currency.
Total outstanding syndicated bank debt was reduced by $6.4 million during the
six months ended March 28, 2003.
Mr. Romo said: "With a stronger balance sheet, we can continue to extend our
reach into new markets, such as Asia, and further consolidate our leadership
position in Europe and North America. Our R&D organization continues to drive
innovations in our industry, offering new opportunities for Seminis and the food
industry as well as healthier, more nutritious, and more convenient products for
consumers. "
ABOUT SEMINIS
Seminis, Inc. is the largest developer, producer and marketer of vegetable and
fruit 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.
Safe Harbor Statement: 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. Further information on the factors that
could affect the company's financial results is contained in the company's
latest 10-K filed with the Securities and Exchange Commission.
<<TABLES TO FOLLOW>>
SEMINIS, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
AS OF AS OF
MARCH 28, SEPTEMBER 30,
2003 2002
---- ----
(UNAUDITED)
ASSETS:
Current assets
Cash and cash equivalents $ 34,901 $ 36,805
Accounts receivable, net 178,788 140,315
Inventories 271,174 272,527
Prepaid expenses and other current assets 4,876 2,427
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Total current assets 489,739 452,074
Property, plant and equipment, net 161,547 168,729
Goodwill, net 97,578 98,931
Intangible assets, net 56,520 61,872
Other assets 22,884 18,391
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$828,268 $799,997
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LIABILITIES, MANDATORILY REDEEMABLE STOCK AND STOCKHOLDERS' EQUITY:
Current liabilities
Short-term borrowings $ 40,990 $ 28,532
Current maturities of long-term debt 226,720 21,709
Accounts payable 31,375 38,179
Accrued liabilities 108,667 98,624
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Total current liabilities 407,752 187,044
Long-term debt 15,379 228,293
Deferred income taxes 16,503 15,753
Minority interest in subsidiaries 1,436 1,902
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Total liabilities 441,070 432,992
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Commitments and contingencies
Total mandatorily redeemable stock 30,500 29,500
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Total stockholders' equity 356,698 337,505
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$828,268 $799,997
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SEMINIS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
FOR THE THREE MONTHS ENDED FOR THE SIX MONTHS ENDED
MAR 28, MAR 29, MAR 28, MAR 29,
------- ------- ------- -------
2003 2002 2003 2002
---- ---- ---- ----
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net sales $ 159,001 $ 152,309 $ 239,617 $ 232,388
Cost of goods sold 58,008 56,458 88,241 86,744
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Gross profit 100,993 95,851 151,376 145,644
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Research and development expenses 10,953 9,611 22,378 21,510
Selling, general and administrative expenses 48,637 44,621 91,337 88,528
Amortization of intangible assets 3,966 4,144 7,893 8,302
--------- --------- --------- ---------
Total operating expenses 63,556 58,376 121,608 118,340
--------- --------- --------- ---------
Gain on sale of assets 1,537 4,359 1,091 5,275
--------- --------- --------- ---------
Income from operations 38,974 41,834 30,859 32,579
Other expense
Interest expense, net (8,445) (6,932) (14,935) (14,102)
Other, net 529 (3,066) 476 (4,652)
--------- --------- --------- ---------
Total non-operating expense (7,916) (9,998) (14,459) (18,754)
--------- --------- --------- ---------
Income before income taxes 31,058 31,836 16,400 13,825
Income tax expense (7,018) (6,182) (4,140) (7,482)
--------- --------- --------- ---------
Net income 24,040 25,654 12,260 6,343
Preferred stock dividends (4,661) (3,497) (9,184) (6,927)
Additional capital contribution dividends -- (1,164) -- (2,303)
--------- --------- --------- ---------
Net income (loss) available for common stockholders $ 19,379 $ 20,993 $ 3,076 $ (2,887)
========= ========= ========= =========
Net income (loss) available for common stockholders
per common share:
--------- --------- --------- ---------
Basic $ 0.30 $ 0.34 $ 0.05 $ (0.05)
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Diluted $ 0.29 $ 0.33 $ 0.05 $ (0.05)
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SEMINIS INC.
NET SEED SALES
CURRENCY STATED AT ACTUAL EXCHANGE RATES
(IN US MILLION $)
SECOND QUARTER ENDED SIX MONTHS ENDED
-------------------- ----------------
FY 2003 FY 2002 % CHANGE FY 2003 FY 2002 % CHANGE
------- ------- -------- ------- ------- --------
North America $ 53.0 $ 53.3 -0.5% $ 84.9 $ 85.7 -0.9%
EUROPE & MIDDLE EAST 74.2 63.7 16.5% 106.5 90.1 18.2%
FAR EAST 17.7 21.0 -16.0% 26.8 31.5 -15.0%
SOUTH AMERICA 8.3 8.8 -5.8% 12.6 14.5 -13.5%
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TOTAL SEED SALES $153.3 $146.9 4.4% $230.8 $221.9 4.0%
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