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
March 31
----------------------
1999 1998
---- ----
Net sales ............................................. $ 450,607 $ 451,491
Costs and expenses:
Cost of products sold ............................ 354,564 360,652
Selling, general, and administrative expenses .... 50,849 46,628
Research and development ......................... 2,503 2,908
Interest expense ................................. 5,144 5,240
Other (income) costs, net ........................ 6,171 (753)
Minority interest in net income .................. 982 988
--------- ---------
Income before income taxes ............................ 30,394 35,828
Taxes based on income - cash ..................... 10,291 12,950
Taxes based on income - deferred ................. 1,609 950
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Net income ............................................ $ 18,494 $ 21,928
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--------- ---------
Basic earnings per share of common stock .............. $ .35 $ .41
--------- ---------
--------- ---------
Diluted earnings per share of common stock ............ $ .35 $ .41
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--------- ---------
Cash dividends paid ................................... $ .23 $ .22
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Average common shares and common
stock equivalents outstanding ...................... 52,568 53,654
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EXHIBIT 19 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(IN THOUSANDS OF DOLLARS)
Mar 31 Dec 31
ASSETS 1999 1998
---- ----
Cash ......................................................................... $ 25,858 $ 23,738
Accounts receivable - net .................................................... 245,163 246,676
Inventories .................................................................. 222,305 212,613
Prepaid expenses and deferred charges ........................................ 35,944 34,912
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Total current assets ............................................ 529,270 517,939
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Property and equipment, net .................................................. 743,141 740,101
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Excess of cost of investments in
subsidiaries over net assets acquired ..................................... 159,567 160,819
Other assets ................................................................. 16,319 34,195
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Total .......................................................... 175,886 195,014
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TOTAL ASSETS ................................................................. $ 1,448,297 $ 1,453,054
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt ............................................ $ 2,799 $ 2,946
Short-term borrowings ........................................................ 2,928 3,553
Accounts payable ............................................................. 180,339 193,088
Accrued salaries and wages ................................................... 26,505 31,629
Accrued income and other taxes ............................................... 20,235 11,572
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Total current liabilities ...................................... 232,806 242,788
Long-term debt, less current portion ......................................... 382,215 371,363
Deferred taxes ............................................................... 77,649 76,204
Other liabilities and deferred credits ....................................... 56,471 54,655
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Total liabilities .............................................. 749,141 745,010
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Minority interest ............................................................ 36,556 37,237
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STOCKHOLDERS' EQUITY:
Common stock (59,098,203 and 59,056,047 shares) .......................... 5,910 5,906
Capital in excess of par value ........................................... 181,957 181,908
Retained income .......................................................... 697,777 691,315
Other comprehensive income (loss) ........................................ (20,838) (6,116)
Common stock held in treasury (6,786,889 and 6,786,889 shares) ........... (202,206) (202,206)
----------- -----------
Total stockholders' equity ..................................... 662,600 670,807
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY.................................... $1,448,297 $ 1,453,054
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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, 1995 $5,781 $147,119 $498,167 $ 8,590 ($146,849) $ 512,808
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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)
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Balance at December 31, 1996 $5,790 $149,481 $561,418 $ 6,219 ($155,811) $ 567,097
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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)
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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)
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Balance at December 31, 1997 $5,864 $174,562 $626,584 ($ 6,263) ($160,862) $ 639,885
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Net income for 1998 111,432 111,432
Translation adjustment for 1998 (72) (72)
Pension liability adjustment, net of $102 tax benefit 219 219
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Total comprehensive income 111,579
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Cash dividends paid on common stock, $.88 per share (46,701) (46,701)
Stock incentive programs and related tax effects 42 7,346 7,388
Purchase of 1,110,843 shares of common stock (41,344) (41,344)
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Balance at December 31, 1998 $5,906 $181,908 $691,315 ($ 6,116) ($202,206) $ 670,807
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Net income for first three months of 1999 18,494 18,494
Translation adjustment for first three months of 1999 (14,722) (14,722)
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Total comprehensive income 3,772
---------
Cash dividends paid on common stock, $.23 per share (12,032) (12,032)
Stock incentive programs and related tax effects 4 49 53
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Balance at March 31, 1999 $5,910 $181,957 $697,777 ($ 20,838) ($202,206) $ 662,600
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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)
Three Months Ended
March 31
-------------------------
1999 1998
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES
Net income ............................................ $ 18,494 $ 21,928
NON-CASH ITEMS:
Depreciation and amortization ..................... 25,613 22,903
Minority interest in net income ................... 982 988
Deferred income taxes, non-current portion ........ 1,609 948
Undistributed earnings of affiliated companies .... 6,314 (422)
(Gain) Loss on sale of property and equipment ..... (13) (22)
-------- --------
Cash provided by operations ........................... 52,999 46,323
Changes in working capital, net of effects
of acquisitions and dispositions ................... (19,173) (13,914)
Net change in deferred charges and credits ............ 1,998 (569)
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Net cash provided (used) by operating activities ...... 35,824 31,840
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CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment ................... (29,833) (45,184)
Business acquisitions ................................. (1,424) (38,868)
Proceeds from sale of property and equipment .......... 139 374
Other ................................................. (3) 4
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Net cash used in investing activities ................. (31,121) (83,674)
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CASH FLOWS FROM FINANCING ACTIVITIES
Change in long-term debt excluding debt
assumed in business acquisition ..................... 11,009 67,733
Change in short-term debt ............................. (608) (16)
Cash dividends paid ................................... (12,032) (11,744)
Subsidiary dividends to minority stockholders ......... (1,835)
Stock incentive programs and related tax effects ...... 53 7,388
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Net cash provided by financing activities ............. (1,578) 61,526
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Effect of exchange rates on cash ...................... (1,005) (115)
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Net increase in cash .................................. $ 2,120 $ 9,577
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EXHIBIT 19 - FINANCIAL STATEMENTS FURNISHED TO SECURITY HOLDERS
BEMIS COMPANY, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEGMENTS OF BUSINESS
The Registrant's business activities are organized around its two principal
business segments, Flexible Packaging and Pressure Sensitive Materials. Both
internal and external reporting conform to this organizational structure with no
significant differences in accounting policies applied. The Registrant evaluates
the performance of its segments and allocates resources to them based on
operating profit which is defined as profit before general corporate expense,
interest expense, income taxes, and minority interest. A summary of the
Registrant's business activities reported by its two business segments follows:
For the Quarter Ended
March 31,
-----------------------------
Business Segments (in millions of dollars) 1999 1998
- -------------------------------------------------------------------------------
Net Sales to Unaffiliated Customers:
Flexible Packaging $ 333.6 $ 333.7
Pressure Sensitive Materials 117.1 118.0
Intersegment Sales:
Flexible Packaging (0.1) (0.1)
Pressure Sensitive Materials (0.0) (0.1)
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Total $ 450.6 $ 451.5
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Operating Profit and Pretax Profit:
Flexible Packaging $ 30.2 $ 33.2
Pressure Sensitive Materials 11.2 12.9
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Total operating profit 41.4 46.1
General corporate expenses (4.9) (4.0)
Interest expense (5.1) (5.3)
Minority interest in net income (1.0) (1.0)
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Income before income taxes $ 30.4 $ 35.8
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Identifiable Assets:
Flexible Packaging $ 1,107.6 $ 1,078.5
Pressure Sensitive Materials 291.0 293.9
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Total identifiable assets 1,398.6 1,372.4
Corporate assets 49.7 50.1
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Total $ 1,448.3 $ 1,422.5
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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, 1998.
TAXES BASED ON INCOME
The Company's 1999 effective tax rate of 39% differs from the federal
statutory rate of 35% primarily due to state and local income taxes.