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 Nine Months Ended
September 30 September 30
----------------------- -----------------------
1997 1996 1997 1996
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Net sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 465,533 $ 423,089 $1,422,340 $1,220,545
Costs and expenses:
Cost of products sold . . . . . . . . . . . . . . . . . . . . . . 372,489 330,479 1,131,660 949,161
Selling, general, and
administrative expenses. . . . . . . . . . . . . . . . . . . . . 43,519 45,716 145,217 139,233
Research and development. . . . . . . . . . . . . . . . . . . . . 2,537 3,772 9,253 10,233
Interest expense. . . . . . . . . . . . . . . . . . . . . . . . . 4,903 3,705 14,175 9,938
Other (income) costs, net . . . . . . . . . . . . . . . . . . . . (423) (223) (837) (5,018)
Minority interest in net income . . . . . . . . . . . . . . . . . 1,296 1,107 3,809 3,149
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Income before income taxes . . . . . . . . . . . . . . . . . . . . 41,212 38,533 119,063 113,849
Taxes based on income - cash. . . . . . . . . . . . . . . . . . . 15,152 14,250 43,779 41,316
Taxes based on income - deferred. . . . . . . . . . . . . . . . . 648 250 2,021 1,584
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Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25,412 $ 24,033 $ 73,263 $ 70,949
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Earnings per share of common stock.. . . . . . . . . . . . . . . . $ .47 $.45 $ 1.36 $ 1.33
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Cash dividends paid per
share of common stock . . . . . . . . . . . . . . . . . . . . . . $ .20 $.18 $ .60 $ .54
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Average common shares and common
stock equivalents outstanding . . . . . . . . . . . . . . . . . . 53,976 53,288 53,942 53,276
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EXHIBIT 19 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(IN THOUSANDS OF DOLLARS)
Sep 30 Dec 31
ASSETS 1997 1996
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Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19,307 $ 10,223
Accounts receivable - net. . . . . . . . . . . . . . . . . . . . . 229,518 216,740
Inventories. . . . . . . . . . . . . . . . . . . . . . . . . . . . 205,736 200,397
Prepaid expenses and deferred charges. . . . . . . . . . . . . . . 46,653 39,561
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Total current assets . . . . . . . . . . . . . . . . . . . . . 501,214 466,921
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Property and equipment, net. . . . . . . . . . . . . . . . . . . . 655,715 583,491
Excess of cost of investments in
subsidiaries over net assets acquired . . . . . . . . . . . . . . 149,350 108,928
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,153 9,455
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Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162,503 118,383
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TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,319,432 $1,168,795
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt. . . . . . . . . . . . . . . . . $ 1,756 $ 1,706
Short-term borrowings. . . . . . . . . . . . . . . . . . . . . . . 3,233 3,006
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . 193,777 164,638
Accrued salaries and wages . . . . . . . . . . . . . . . . . . . . 37,732 34,163
Accrued income and other taxes . . . . . . . . . . . . . . . . . . 14,604 10,932
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Total current liabilities. . . . . . . . . . . . . . . . . . . 251,102 214,445
Long-term debt, less current portion . . . . . . . . . . . . . . . 302,697 241,077
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . 58,566 56,661
Other liabilities and deferred credits . . . . . . . . . . . . . . 57,792 57,726
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Total liabilities. . . . . . . . . . . . . . . . . . . . . . . 670,157 569,909
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Minority interest. . . . . . . . . . . . . . . . . . . . . . . . . 31,943 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 . . . . . . . . . . . . . . . . . . . . . . . . . 602,489 561,049
Cumulative translation adjustment . . . . . . . . . . . . . . . . (6,042) 6,588
Common stock held in treasury (5,640,842 and 5,536,617 shares). . (159,541) (155,811)
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Total stockholders' equity.. . . . . . . . . . . . . . . . . . 617,332 567,097
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY . . . . . . . . . . . . $1,319,432 $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)
Nine Months Ended
September 30
-----------------------
1997 1996
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CASH FLOWS FROM OPERATING ACTIVITIES
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 73,263 $ 70,949
Non-cash items:
Depreciation and amortization . . . . . . . . . . . . . . . . . . 60,727 51,464
Minority interest in net income . . . . . . . . . . . . . . . . . 3,809 3,149
Deferred income taxes, non-current portion. . . . . . . . . . . . 1,635 1,584
Loss on sale of property and equipment. . . . . . . . . . . . . . 135 51
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Cash provided by operations. . . . . . . . . . . . . . . . . . . . 139,569 127,197
Changes in working capital, net of effects of
acquisitions and dispositions . . . . . . . . . . . . . . . . . . (5,242) (36,186)
Net change in deferred charges and credits.. . . . . . . . . . . . (8,718) 5,307
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Net cash provided by operating activities. . . . . . . . . . . . . 125,609 96,318
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CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment. . . . . . . . . . . . . . . . (117,456) (76,459)
Business acquisition . . . . . . . . . . . . . . . . . . . . . . . (6,945) (62,914)
Business divestiture . . . . . . . . . . . . . . . . . . . . . . . 27,984 12,752
Proceeds from sale of property and equipment.. . . . . . . . . . . 1,762 1,535
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (25) 12
Net cash used in investing activities. . . . . . . . . . . . . . . (94,680) (125,074)
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CASH FLOWS FROM FINANCING ACTIVITIES
Change in long-term debt excluding debt assumed
in business acquisitions. . . . . . . . . . . . . . . . . . . . . 15,911 68,455
Change in short-term debt . . . . . . . . . . . . . . . . . . . . 525 409
Cash dividends paid. . . . . . . . . . . . . . . . . . . . . . . . (31,823) (28,405)
Subsidiary dividends to minority stockholders. . . . . . . . . . . (1,835) (1,841)
Common stock purchased for the treasury. . . . . . . . . . . . . . (3,730) (8,962)
Stock incentive programs and related tax effects . . . . . . . . . 52 115
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Net cash (used) provided by financing activities . . . . . . . . . (20,900) 29,771
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Effect of exchange rates on cash . . . . . . . . . . . . . . . . . (945) (1,512)
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Net increase (decrease) in cash. . . . . . . . . . . . . . . . . . $ 9,084 $ (497)
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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 1997 effective tax rate of 38% differs from the federal
statutory rate of 35% primarily due to state and local income taxes.