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
---------------------- ------------------------
1998 1997 1998 1997
----- ---- ---- ----
Net sales . . . . . . . . . . . . . . . . . . . $470,595 $481,334 $922,086 $956,807
Costs and expenses:
Cost of products sold . . . . . . . . . . . . 365,317 379,113 725,969 759,171
Selling, general and
administrative expenses . . . . . . . . . . 46,370 47,310 92,998 101,698
Research and development. . . . . . . . . . . 3,113 3,282 6,021 6,716
Interest expense. . . . . . . . . . . . . . . 5,627 4,854 10,867 9,272
Other (income). . . . . . . . . . . . . . . . (189) (209) (942) (414)
Minority interest in net income . . . . . . . 975 1,291 1,963 2,513
------ ------ ------ ------
Income before income taxes. . . . . . . . . . 49,382 45,693 85,210 77,851
Taxes based on income - cash. . . . . . . 18,325 16,502 31,275 28,627
Taxes based on income - deferred. . . . . 875 1,198 1,825 1,373
------ ------ ------ ------
Net income. . . . . . . . . . . . . . . . . . . $ 30,182 $ 27,993 $ 52,110 $ 47,851
------- ------- ------- -------
------- ------- ------- -------
Basic earnings per share of common stock. . . . $.57 $.53 $.98 $.90
---- ---- ---- ----
---- ---- ---- ----
Diluted earnings per share of common stock. . . $.56 $.52 $.97 $.89
---- ---- ---- ----
---- ---- ---- ----
Cash dividends paid per share of common stock . $.22 $.20 $.44 $.40
---- ---- ---- ----
---- ---- ---- ----
Average common shares and common
stock equivalents outstanding. . . . . . . . 53,710 53,914 53,684 53,926
------ ------ ------ ------
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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 1998 1997
------ ------ ------
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,761 $ 13,827
Accounts receivable - net . . . . . . . . . . . . . . . . . . . . 235,595 233,547
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . 217,865 221,576
Prepaid expenses and deferred charges . . . . . . . . . . . . . . 41,615 47,443
--------- ---------
Total current assets . . . . . . . . . . . . . . . . . . . . 509,836 516,393
--------- ---------
Property and equipment, net . . . . . . . . . . . . . . . . . . . 715,387 685,227
Excess of cost of investments in
subsidiaries over net assets acquired. . . . . . . . . . . . . 167,191 150,632
Other assets. . . . . . . . . . . . . . . . . . . . . . . . . . . 38,308 10,315
--------- ---------
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . 205,499 160,947
--------- ---------
TOTAL ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . . $1,430,722 $1,362,567
--------- ---------
--------- ---------
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current portion of long-term debt . . . . . . . . . . . . . . . . $2,151 $2,173
Short-term borrowings . . . . . . . . . . . . . . . . . . . . . . 1,741 2,105
Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . 179,748 195,346
Accrued salaries and wages. . . . . . . . . . . . . . . . . . . . 29,407 34,892
Accrued income and other taxes. . . . . . . . . . . . . . . . . . 24,916 16,671
--------- ---------
Total current liabilities. . . . . . . . . . . . . . . . . . 237,963 251,187
Long-term debt, less current portion. . . . . . . . . . . . . . . 364,245 316,791
Deferred taxes. . . . . . . . . . . . . . . . . . . . . . . . . . 65,901 64,066
Other liabilities and deferred credits. . . . . . . . . . . . . . 55,025 56,876
--------- ---------
Total liabilities. . . . . . . . . . . . . . . . . . . . . . 723,134 688,920
--------- ---------
Minority interest . . . . . . . . . . . . . . . . . . . . . . . . 33,738 33,762
STOCKHOLDERS' EQUITY:
Common stock (59,056,047 and 58,643,557 shares). . . . . . . . 5,905 5,864
Capital in excess of par value . . . . . . . . . . . . . . . . 181,909 174,562
Retained income. . . . . . . . . . . . . . . . . . . . . . . . 655,208 626,584
Other comprehensive income (loss). . . . . . . . . . . . . . . (8,310) (6,263)
Common stock held in treasury (5,676,046 and 5,676,046 shares) (160,862) (160,862)
--------- ---------
Total stockholders' equity . . . . . . . . . . . . . . . . . 673,850 639,885
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY. . . . . . . . . . . . $1,430,722 $1,362,567
--------- ---------
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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
-------------------------
1998 1997
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES
Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 52,110 $ 47,851
NON-CASH ITEMS:
Depreciation and amortization . . . . . . . . . . . . . . . . . 45,725 41,249
Minority interest in net income . . . . . . . . . . . . . . . . 1,963 2,513
Deferred income taxes, non-current portion. . . . . . . . . . . 1,872 1,361
Undistributed earnings of affiliated companies. . . . . . . . . (509)
(Gain) loss on sale of property and equipment . . . . . . . . . (17) (118)
------- -------
Cash provided by operations . . . . . . . . . . . . . . . . . . . 101,144 92,856
Change in working capital, net of effects of
acquisitions and dispositions . . . . . . . . . . . . . . . . . (7,192) (23,097)
Net change in deferred charges and credits. . . . . . . . . . . . (2,446) (7,714)
------- -------
Net cash provided by operating activities . . . . . . . . . . . . 91,506 62,045
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment . . . . . . . . . . . . . . . (74,828) (73,893)
Business acquisitions . . . . . . . . . . . . . . . . . . . . . . (46,319) (6,945)
Business divestiture. . . . . . . . . . . . . . . . . . . . . . . 27,984
Proceeds from sale of property and equipment. . . . . . . . . . . 1,419 1,577
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 (33)
------- -------
Net cash used in investing activities . . . . . . . . . . . . . . (119,726) (51,310)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES
Change in long-term debt excluding debt assumed in
business acquisitions . . . . . . . . . . . . . . . . . . . . . 47,454 21,290
Change in short-term debt . . . . . . . . . . . . . . . . . . . . (329) 1,665
Cash dividends paid. . . . . . . . . . . . . . . . . . . . . . . (23,486) (21,223)
Subsidiary dividends to minority stockholders . . . . . . . . . . (1,835) (1,835)
Common stock purchased for the treasury . . . . . . . . . . . . . (3,730)
Stock incentive programs and related tax effects. . . . . . . . . 7,388 51
------- -------
Net cash (used) provided by financing activities. . . . . . . . . 29,192 (3,782)
------- -------
Effect of exchange rates on cash. . . . . . . . . . . . . . . . . (38) (587)
------- -------
Net increase in cash. . . . . . . . . . . . . . . . . . . . . . . $ 934 $ 6,366
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EXHIBIT 19 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
PERIODS PRIOR TO 1998 HAVE BEEN REVISED TO REFLECT
PROVISIONS OF SFAS NO. 130
Capital In Other Common Total
Common Excess Of Retained Comprehensive Stock Held Stockholder's
(IN THOUSANDS OF DOLLARS) Stock Par Value Income Income (Loss) In Treasury Equity
- -----------------------------------------------------------------------------------------------------------------------------------
Balance at December 31, 1994 $5,572 $101,290 $446,132 ($1,474) ($133,493) $418,027
-------------------------------------------------------------------------
Net income for 1995 85,210 85,210
Translation adjustment for 1995 5,211 5,211
Pension liability adjustment, net of $2,975 tax benefit 4,853 4,853
--------
Total comprehensive income 95,274
--------
Cash dividends paid on common stock, $.64 per share (33,175) (33,175)
Stock incentive programs and related tax effects 28 3,421 3,449
Common stock transactions related to an
acquisition of a subsidiary company 181 42,408 (4,961) 37,628
Purchase of 330,300 shares of common stock (8,395) (8,395)
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Balance at December 31, 1995 $5,781 $147,119 $498,167 $8,590 ($146,849) $512,808
-------------------------------------------------------------------------
Net income for 1996 101,081 101,081
Translation adjustment for 1996 (3,917) (3,917)
Pension liability adjustment, net of $948 tax benefit 1,546 1,546
--------
Total comprehensive income 98,710
--------
Cash dividends paid on common stock, $.72 per share (37,830) (37,830)
Stock incentive programs and related tax effects 2 310 312
Common stock transactions related to an
acquisition of a subsidiary company 7 2,052 2,059
Purchase of 292,000 shares of common stock (8,962) (8,962)
-------------------------------------------------------------------------
Balance at December 31, 1996 $5,790 $149,481 $561,418 $6,219 ($155,811) $567,097
-------------------------------------------------------------------------
Net income for 1997 107,584 107,584
Translation adjustment for 1997 (11,109) (11,109)
Pension liability adjustment, net of $842 tax benefit (1,373) (1,373)
--------
Total comprehensive income 95,102
--------
Cash dividends paid on common stock, $.80 per share (42,418) (42,418)
Stock incentive programs and related tax effects 4 47 51
Common stock transactions related to an
acquisition of a subsidiary company 70 25,034 25,104
Purchase of 139,429 shares of common stock (5,051) (5,051)
-------------------------------------------------------------------------
Balance at December 31, 1997 $5,864 $174,562 $626,584 ($6,263) ($160,862) $639,885
-------------------------------------------------------------------------
Net income for first half of 1998 52,110 52,110
Translation adjustment for first half of 1998 (2,047) (2,047)
--------
Total comprehensive income 50,063
--------
Cash dividends paid on common stock, $.44 per share (23,486) (23,486)
Stock incentive programs and related tax effects 41 7,347 7,388
-------------------------------------------------------------------------
Balance at June 30, 1998 $5,905 $181,909 $655,208 ($8,310) ($160,862) $673,850
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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, 1997.
COMPREHENSIVE INCOME
In the first quarter of 1998, the Company adopted Statement of Financial
Accounting Standards No. 130, "Reporting Comprehensive Income" (SFAS 130),
which establishes standards for reporting and display of comprehensive income
and its components. In accordance with SFAS 130, the Company has displayed
the components of "Other comprehensive income (loss)" and "Comprehensive
income," net of their related tax effects, in the accompanying Consolidated
Statement of Stockholder's Equity. The net foreign currency translation
adjustment and components thereof have no tax effect as the Company makes no
provision for U.S. income taxes applicable to undistributed earnings of
foreign subsidiaries that are indefinitely reinvested in foreign operations.
All prior-period data has been reclassified to conform with the provisions of
SFAS 130.
TAXES BASED ON INCOME
The Company's 1998 effective tax rate of 39% differs from the federal
statutory rate of 35% primarily due to state and local income taxes.