For the Quarter Ended December 29, 2012
|
Commission File Number 0-01989
|
New York
|
16-0733425
|
(State or other jurisdiction of
|
(I. R. S. Employer
|
incorporation or organization)
|
Identification No.)
|
3736 South Main Street, Marion, New York
|
14505
|
(Address of principal executive offices)
|
(Zip Code)
|
Class
|
Shares Outstanding at January 25, 2013
|
Common Stock Class A, $.25 Par
|
8,745,078
|
Common Stock Class B, $.25 Par
|
2,057,882
|
|
Seneca Foods Corporation
|
|
|||
|
Quarterly Report on Form 10-Q
|
|
|||
|
Table of Contents
|
|
|||
|
|
|
|||
|
|
Page
|
|||
|
|
|
|||
PART 1
|
FINANCIAL INFORMATION
|
|
|||
|
|
|
|||
Item 1
|
Financial Statements:
|
|
|||
|
|
|
|||
|
1 | ||||
|
|
||||
|
|||||
|
December 29, 2012 and December 31, 2011
|
2 | |||
|
|
||||
|
|||||
|
December 29, 2012 and December 31, 2011
|
2 | |||
|
|
||||
|
|||||
|
December 29, 2012 and December 31, 2011
|
3 | |||
|
|
||||
|
|||||
|
December 29, 2012
|
4 | |||
|
|
||||
|
5 | ||||
|
|
||||
Item 2
|
|||||
|
and Results of Operations
|
11 | |||
|
|
||||
Item 3
|
18 | ||||
|
|
||||
Item 4
|
19 | ||||
|
|
||||
PART II
|
OTHER INFORMATION
|
||||
|
|
||||
Item 1
|
20 | ||||
|
|
||||
Item 1A
|
20 | ||||
|
|
||||
Item 2
|
20 | ||||
|
|
||||
Item 3
|
20 | ||||
|
|
||||
Item 4
|
20 | ||||
|
|
||||
Item 5
|
20 | ||||
|
|
||||
Item 6
|
20 | ||||
|
|
||||
|
22 |
SENECA FOODS CORPORATION AND SUBSIDIARIES
|
||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||||||
(In Thousands, Except Per Share Data)
|
||||||||||||
|
|
|
|
|||||||||
|
Unaudited
|
Unaudited
|
|
|||||||||
|
December 29,
|
December 31,
|
March 31,
|
|||||||||
|
2012
|
2011
|
2012
|
|||||||||
ASSETS
|
|
|
|
|||||||||
|
|
|
|
|||||||||
Current Assets:
|
|
|
|
|||||||||
Cash and Cash Equivalents
|
$ | 12,507 | $ | 11,218 | $ | 9,420 | ||||||
Accounts Receivable, Net
|
70,008 | 74,678 | 77,105 | |||||||||
Loan Receivable (Note 2)
|
- | 10,000 | 10,000 | |||||||||
Inventories (Note 3):
|
||||||||||||
Finished Goods
|
443,492 | 435,933 | 307,912 | |||||||||
Work in Process
|
9,939 | 15,541 | 16,083 | |||||||||
Raw Materials and Supplies
|
74,175 | 86,389 | 108,438 | |||||||||
Total Inventories
|
527,606 | 537,863 | 432,433 | |||||||||
Deferred Income Tax Asset, Net
|
8,105 | 7,996 | 8,637 | |||||||||
Refundable Income Taxes
|
- | - | 316 | |||||||||
Other Current Assets
|
15,292 | 8,205 | 5,339 | |||||||||
Total Current Assets
|
633,518 | 649,960 | 543,250 | |||||||||
Property, Plant and Equipment, Net
|
186,354 | 185,237 | 192,825 | |||||||||
Deferred Income Tax Asset, Net
|
1,882 | - | 403 | |||||||||
Other Assets
|
1,274 | 1,653 | 1,558 | |||||||||
Total Assets
|
$ | 823,028 | $ | 836,850 | $ | 738,036 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||
|
||||||||||||
Current Liabilities:
|
||||||||||||
Accounts Payable
|
$ | 98,341 | $ | 89,588 | $ | 61,074 | ||||||
Accrued Vacation
|
10,493 | 10,308 | 10,506 | |||||||||
Accrued Payroll
|
5,694 | 6,061 | 7,793 | |||||||||
Other Accrued Expenses
|
30,517 | 33,280 | 31,459 | |||||||||
Income Taxes Payable
|
3,637 | 2,452 | - | |||||||||
Current Portion of Long-Term Debt
|
41,504 | 12,257 | 7,336 | |||||||||
Total Current Liabilities
|
190,186 | 153,946 | 118,168 | |||||||||
Long-Term Debt, Less Current Portion (Note 4)
|
228,412 | 285,910 | 226,873 | |||||||||
Deferred Income Taxes
|
- | 8,739 | - | |||||||||
Other Long-Term Liabilities
|
40,595 | 21,363 | 38,322 | |||||||||
Total Liabilities
|
459,193 | 469,958 | 383,363 | |||||||||
Commitments
|
||||||||||||
Stockholders' Equity:
|
||||||||||||
Preferred Stock
|
5,467 | 6,271 | 6,268 | |||||||||
Common Stock, $.25 Par Value Per Share
|
2,955 | 2,938 | 2,938 | |||||||||
Additional Paid-in Capital
|
93,001 | 92,088 | 92,139 | |||||||||
Treasury Stock, at cost
|
(29,883 | ) | (785 | ) | (1,435 | ) | ||||||
Accumulated Other Comprehensive Loss
|
(23,266 | ) | (13,884 | ) | (23,319 | ) | ||||||
Retained Earnings
|
315,561 | 280,264 | 278,082 | |||||||||
Total Stockholders' Equity
|
363,835 | 366,892 | 354,673 | |||||||||
Total Liabilities and Stockholders’ Equity
|
$ | 823,028 | $ | 836,850 | $ | 738,036 | ||||||
|
||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
|
SENECA FOODS CORPORATION AND SUBSIDIARIES
|
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF NET EARNINGS
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
(In Thousands, Except Per Share Data)
|
||||||||||||||||
|
|
|
|
|
||||||||||||
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
|
December 29,
|
December 31,
|
December 29,
|
December 31,
|
||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
|
|
|
|
|
||||||||||||
Net Sales
|
$ | 452,731 | $ | 446,891 | $ | 1,001,375 | $ | 987,416 | ||||||||
|
||||||||||||||||
Costs and Expenses:
|
||||||||||||||||
Cost of Product Sold
|
407,740 | 396,854 | 886,404 | 910,170 | ||||||||||||
Selling and Administrative
|
18,544 | 19,195 | 49,617 | 50,708 | ||||||||||||
Restructuring
|
2,510 | - | 2,510 | 39 | ||||||||||||
Other Operating Income
|
(38 | ) | (707 | ) | (330 | ) | (876 | ) | ||||||||
Total Costs and Expenses
|
428,756 | 415,342 | 938,201 | 960,041 | ||||||||||||
Operating Income
|
23,975 | 31,549 | 63,174 | 27,375 | ||||||||||||
Interest Expense, Net
|
1,943 | 2,164 | 5,257 | 5,830 | ||||||||||||
Earnings Before Income Taxes
|
22,032 | 29,385 | 57,917 | 21,545 | ||||||||||||
|
||||||||||||||||
Income Taxes
|
7,242 | 10,855 | 20,415 | 8,107 | ||||||||||||
Net Earnings
|
$ | 14,790 | $ | 18,530 | $ | 37,502 | $ | 13,438 | ||||||||
|
||||||||||||||||
Earnings Attributable to Common Stock
|
$ | 14,265 | $ | 17,897 | $ | 36,188 | $ | 12,964 | ||||||||
|
||||||||||||||||
Basic Earnings per Common Share (Note 10)
|
$ | 1.32 | $ | 1.53 | $ | 3.21 | $ | 1.10 | ||||||||
|
||||||||||||||||
Diluted Earnings per Common Share (Note 10)
|
$ | 1.32 | $ | 1.52 | $ | 3.19 | $ | 1.10 | ||||||||
|
||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
|
SENECA FOODS CORPORATION AND SUBSIDIARIES
|
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
(In Thousands)
|
||||||||||||||||
|
|
|
|
|
||||||||||||
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
|
December 29,
|
December 31,
|
December 29,
|
December 31,
|
||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
|
|
|
|
|
||||||||||||
Comprehensive income:
|
|
|
|
|
||||||||||||
Net earnings
|
$ | 14,790 | $ | 18,530 | $ | 37,502 | $ | 13,438 | ||||||||
Change in pension and post retirement benefits (net of tax)
|
(11 | ) | 278 | 53 | 98 | |||||||||||
Total
|
$ | 14,779 | $ | 18,808 | $ | 37,555 | $ | 13,536 | ||||||||
|
||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
|
SENECA FOODS CORPORATION AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(Unaudited)
|
||||||||
(In Thousands)
|
||||||||
|
Nine Months Ended
|
|||||||
|
December 29, 2012
|
December 31, 2011
|
||||||
Cash Flows from Operating Activities:
|
|
|
||||||
Net Earnings
|
$ | 37,502 | $ | 13,438 | ||||
Adjustments to Reconcile Net Earnings to
|
||||||||
Net Cash Used in Operations:
|
||||||||
Depreciation & Amortization
|
17,182 | 16,874 | ||||||
Gain on the Sale of Assets
|
(330 | ) | (876 | ) | ||||
Deferred Income Tax (Benefit) Expense
|
(981 | ) | 5,127 | |||||
Changes in Operating Assets and Liabilities:
|
||||||||
Accounts Receivable
|
7,097 | 3,858 | ||||||
Inventories
|
(95,173 | ) | (82,627 | ) | ||||
Other Current Assets
|
(6,279 | ) | (8,140 | ) | ||||
Income Taxes
|
3,953 | 1,963 | ||||||
Accounts Payable, Accrued Expenses
|
||||||||
and Other Liabilities
|
36,415 | 2,389 | ||||||
Net Cash Used in Operations
|
(614 | ) | (47,994 | ) | ||||
Cash Flows from Investing Activities:
|
||||||||
Additions to Property, Plant and Equipment
|
(14,103 | ) | (13,736 | ) | ||||
Proceeds from the Sale of Assets
|
350 | 921 | ||||||
Payment of Loan Receivable
|
10,000 | - | ||||||
Net Cash Used in Investing Activities
|
(3,753 | ) | (12,815 | ) | ||||
Cash Flow from Financing Activities:
|
||||||||
Long-Term Borrowing
|
489,129 | 358,609 | ||||||
Payments on Long-Term Debt
|
(453,422 | ) | (293,061 | ) | ||||
Borrowings on Notes Payable
|
- | 3,555 | ||||||
Other
|
207 | (1,298 | ) | |||||
Purchase of Treasury Stock
|
(28,448 | ) | (528 | ) | ||||
Dividends
|
(12 | ) | (12 | ) | ||||
Net Cash Provided by Financing Activities
|
7,454 | 67,265 | ||||||
|
||||||||
Net Increase in Cash and Cash Equivalents
|
3,087 | 6,456 | ||||||
Cash and Cash Equivalents, Beginning of the Period
|
9,420 | 4,762 | ||||||
Cash and Cash Equivalents, End of the Period
|
$ | 12,507 | $ | 11,218 | ||||
|
||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
|
SENECA FOODS CORPORATION AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS STOCKHOLDERS' EQUITY
|
||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
Additional
|
|
Accumulated Other
|
|
||||||||||||||||||
|
Preferred
|
Common
|
Paid-In
|
Treasury
|
Comprehensive
|
Retained
|
||||||||||||||||||
|
Stock
|
Stock
|
Capital
|
Stock
|
Loss
|
Earnings
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Balance March 31, 2012
|
$ | 6,268 | $ | 2,938 | $ | 92,139 | $ | (1,435 | ) | $ | (23,319 | ) | $ | 278,082 | ||||||||||
Net earnings
|
- | - | - | - | - | 37,502 | ||||||||||||||||||
Cash dividends
|
||||||||||||||||||||||||
on preferred stock
|
- | - | - | - | - | (23 | ) | |||||||||||||||||
Equity incentive program
|
- | 3 | 46 | - | - | - | ||||||||||||||||||
Stock issued for profit sharing plan (Note 5)
|
- | - | 29 | - | - | - | ||||||||||||||||||
Preferred stock conversion (Note 5)
|
(801 | ) | 14 | 787 | - | - | - | |||||||||||||||||
Purchase treasury stock (Note 5)
|
(28,448 | ) | ||||||||||||||||||||||
Change in pension and post retirement
|
||||||||||||||||||||||||
benefits adjustment (net of tax benefit $34)
|
- | - | - | - | 53 | - | ||||||||||||||||||
Balance December 29, 2012
|
$ | 5,467 | $ | 2,955 | $ | 93,001 | $ | (29,883 | ) | $ | (23,266 | ) | $ | 315,561 | ||||||||||
|
||||||||||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
|
|
Other footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes included in the Company's 2012 Annual Report on Form 10-K.
|
|
All references to years are fiscal years ended or ending March 31 unless otherwise indicated. Certain percentage tables may not foot due to rounding.
|
During the quarter ended October 1, 2011, the Company acquired $10.0 million of the lending commitments (the "Loan Commitment") made by various lenders under the Third Amended and Restated Credit Agreement dated July 29, 2011 by and among the Borrower ("Borrower"), Bank of America, N.A. as administrative agent and letter of credit issuer, and various other lenders (the "Borrower Credit Facility"), and thus became a co-lender under the Borrower Credit Facility. Upon the closing of such transaction, the Company advanced a total of $10.0 million to fund (i) the Company's then current portion of total advances made to the Borrower under the Credit Agreement and (ii) the balance of the Company's $10.0 million Loan Commitment. The Company acquired the Loan Commitment in connection with negotiations between the Company and the Borrower concerning the Company's possible acquisition of the Borrower through a merger transaction. The Company and the Borrower are no longer pursuing such potential acquisition. All of the Borrower obligations under the Borrower Credit Facility, including those owing to the Company, were due to mature on March 30, 2012. In April 2012, the Company received a partial repayment or $3.7 million. In June 2012, the Company received the remaining $6.3 million due plus interest accrued and the Company has no further obligations with respect to the Loan Commitment.
|
3.
|
First-In, First-Out (“FIFO”) based inventory costs exceeded LIFO based inventory costs by $136.1 million as of the end of the third quarter of fiscal 2013 as compared to $119.9 million as of the end of the third quarter of fiscal 2012. The change in the LIFO Reserve for the three months ended December 29, 2012 was an increase of $1,268,000 as compared to an increase of $10,774,000 for the three months ended December 31, 2011. The change in the LIFO Reserve for the nine months ended December 29, 2012 was a decrease of $1,176,000 as compared to an increase of $30,055,000 for the nine months ended December 31, 2011. This reflects the projected impact of reduced inflationary cost increases expected in fiscal 2013 versus fiscal 2012.
|
The Company completed the closing of a new five year revolving credit facility (“Revolver”) on July 20, 2011. Available borrowings under the Revolver total $250,000,000 from April through July and $350,000,000 from August through March. The Revolver balance as of December 29, 2012 was $185,860,000 and is included in Long-Term Debt in the accompanying Condensed Consolidated Balance Sheet due to its five year term. The Company utilizes its Revolver for general corporate purposes, including seasonal working capital needs, to pay debt principal and interest obligations, and to fund capital expenditures and acquisitions. Seasonal working capital needs are affected by the growing cycles of the vegetables and fruits the Company processes. The majority of vegetable and fruit inventories are produced during the months of June through November and are then sold over the following year. Payment terms for vegetable and fruit produce are generally three months but can vary from a few days to seven months. Accordingly, the Company’s need to draw on the Revolver may fluctuate significantly throughout the year.
|
|
Third Quarter
|
Year-to-Date
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
(In thousands)
|
(In thousands)
|
||||||||||||||
Reported end of period:
|
|
|
|
|
||||||||||||
Outstanding borrowings
|
$ | 185,860 | $ | 206,346 | $ | 185,860 | $ | 206,346 | ||||||||
Weighted average interest rate
|
1.48 | % | 1.89 | % | 1.48 | % | 1.89 | % | ||||||||
Reported during the period:
|
||||||||||||||||
Maximum amount of borrowings
|
$ | 258,000 | $ | 268,363 | $ | 258,000 | $ | 268,363 | ||||||||
Average outstanding borrowings
|
188,302 | 215,397 | 150,773 | 163,772 | ||||||||||||
Weighted average interest rate
|
1.47 | % | 1.78 | % | 1.51 | % | 1.61 | % |
5.
|
During the nine-month period ended December 29, 2012, there were 33,760 shares, or $8,000, of Class B Common Stock (at Par), converted to Class A Common Stock and there were 52,200 shares, or $801,000 of Participating Preferred Stock, also converted to Class A Common Stock. During the nine month period ended December 29, 2012, the Company repurchased 89,046, shares or $2,518,000 of its Class A Common Stock. As of December 29, 2012, 153,879 shares or $3,953,000 of stock have been repurchased under the Company's share repurchase program. In addition, on August 30, 2012, the Company repurchased 864,334 shares of Class A Common Stock in a Board approved transaction outside of the Company's share repurchase program for $25,930,000. All shares were repurchased as Treasury Stock and are not considered outstanding. During the three month period ended June 30, 2012, there were 1,330 shares, or $29,000 of Class B Common Stock issued in lieu of cash compensation under the Company’s Profit Sharing Bonus Plan.
|
6.
|
The net periodic benefit cost for the Company’s pension plan consisted of:
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
|
December 29,
|
December 31,
|
December 29,
|
December 31,
|
||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
|
|
|
|
|
||||||||||||
Service Cost
|
$ | 2,925 | $ | 761 | $ | 7,369 | $ | 3,763 | ||||||||
Interest Cost
|
1,764 | 1,705 | 5,291 | 5,115 | ||||||||||||
Expected Return on Plan Assets
|
(2,291 | ) | (1,957 | ) | (6,873 | ) | (5,871 | ) | ||||||||
Amortization of Actuarial Loss
|
338 | 374 | 1,013 | 1,123 | ||||||||||||
Amortization of Transition Asset
|
(56 | ) | (69 | ) | (170 | ) | (207 | ) | ||||||||
Net Periodic Benefit Cost
|
$ | 2,680 | $ | 814 | $ | 6,630 | $ | 3,923 |
7.
|
The following table summarizes the restructuring charges recorded and the accruals established:
|
|
|
Long-Lived
|
|
|
||||||||||||
|
Severance
|
Asset Charges
|
Other Costs
|
Total
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
Balance March 31, 2012
|
$ | 37 | $ | - | $ | - | $ | 37 | ||||||||
Third Quarter Charge
|
- | 1,107 | 1,403 | 2,510 | ||||||||||||
Cash payments/write offs
|
(15 | ) | - | - | (15 | ) | ||||||||||
Balance December 29, 2012
|
$ | 22 | $ | 1,107 | $ | 1,403 | $ | 2,532 | ||||||||
|
|
During the third quarter of fiscal 2013, the Company implemented a product rationalization program and recorded a restructuring charge of $2,510,000 for related equipment costs, lease impairment costs (net of realizable value), and certain inventory costs.
|
8.
|
During the nine months ended December 29, 2012 and December 31, 2011, the Company sold some unused fixed assets which resulted in a gain of $330,000 and $876,000, respectively. During the three months ended September 29, 2012, the Company sold unused land in Cambria, Wisconsin which resulted in a book gain of $239,000. A portion of the tax gain on this sale is expected to be deferred via a Like Kind Exchange transaction within six months of the sale of this property. During the three months ended December 31, 2011, the Company sold an unused facility in LeSueur, Minnesota which resulted in a book gain of $665,000. These gains are included in other operating income in the Unaudited Condensed Consolidated Statements of Net Earnings.
|
9.
|
Recently Issued and Adopted Accounting Standards - There were no recently issued accounting pronouncements that impacted the Company’s condensed consolidated financial statements. In addition, the Company did not adopt any new accounting pronouncements during the quarter ended December 29, 2012.
|
|
10.
|
Earnings per share for the Quarters Ended December 29, 2012 and December 31, 2011 are as follows:
|
|
Q U A R T E R
|
YEAR TO DATE
|
||||||||||||||
|
Fiscal
|
Fiscal
|
Fiscal
|
Fiscal
|
||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
(In thousands, except per share amounts)
|
|||||||||||||||
Basic
|
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
Net earnings
|
$ | 14,790 | $ | 18,530 | $ | 37,502 | $ | 13,438 | ||||||||
Deduct preferred stock dividends paid
|
6 | 6 | 17 | 17 | ||||||||||||
|
||||||||||||||||
Undistributed earnings
|
14,784 | 18,524 | 37,485 | 13,421 | ||||||||||||
Earnings attributable to participating preferred
|
519 | 627 | 1,297 | 457 | ||||||||||||
|
||||||||||||||||
Earnings attributable to common shareholders
|
$ | 14,265 | $ | 17,897 | $ | 36,188 | $ | 12,964 | ||||||||
|
||||||||||||||||
Weighted average common shares outstanding
|
10,767 | 11,728 | 11,276 | 11,734 | ||||||||||||
|
||||||||||||||||
Basic earnings per common share
|
$ | 1.32 | $ | 1.53 | $ | 3.21 | $ | 1.10 | ||||||||
|
||||||||||||||||
Diluted
|
||||||||||||||||
|
||||||||||||||||
Earnings attributable to common shareholders
|
$ | 14,265 | $ | 17,897 | $ | 36,188 | $ | 12,964 | ||||||||
Add dividends on convertible preferred stock
|
5 | 5 | 15 | 15 | ||||||||||||
|
||||||||||||||||
Earnings attributable to common stock on a diluted basis
|
$ | 14,270 | $ | 17,902 | $ | 36,203 | $ | 12,979 | ||||||||
|
||||||||||||||||
Weighted average common shares outstanding-basic
|
10,767 | 11,728 | 11,276 | 11,734 | ||||||||||||
Additional shares issuable related to the
|
||||||||||||||||
equity compensation plan
|
4 | 4 | 4 | 4 | ||||||||||||
Additional shares to be issued under full
|
||||||||||||||||
conversion of preferred stock
|
67 | 67 | 67 | 67 | ||||||||||||
|
||||||||||||||||
Total shares for diluted
|
10,838 | 11,799 | 11,347 | 11,805 | ||||||||||||
|
||||||||||||||||
Diluted earnings per common share
|
$ | 1.32 | $ | 1.52 | $ | 3.19 | $ | 1.10 |
As required by Accounting Standards Codification ("ASC") 825, “Financial Instruments,” the Company estimates the fair values of financial instruments on a quarterly basis. The estimated fair value for long-term debt (classified as Level 2 in the fair value hierarchy) is determined by the quoted market prices for similar debt (comparable to the Company’s financial strength) or current rates offered to the Company for debt with the same maturities. Long-term debt, including current portion had a carrying amount of $269,916,000 and an estimated fair value of $267,050,000 as of December 29, 2012. As of March 31, 2012, the carrying amount was $234,209,000 and the estimated fair value was $231,416,000. The fair values of all the other financial instruments approximate their carrying value due to their short-term nature.
|
12.
|
In June 2010, the Company received a Notice of Violation of the California Safe Drinking Water and Toxic Enforcement Act of 1986, commonly known as Proposition 65, from the Environmental Law Foundation ("ELF"). This notice was made to the California Attorney General and various other government officials, and to 49 companies including Seneca Foods Corporation whom ELF alleges manufactured, distributed or sold packaged peaches, pears, fruit cocktail and fruit juice that contain lead without providing a clear and reasonable warning to consumers. Under California law, proper notice must be made to the State and involved firms at least 60 days before any suit under Proposition 65 may be filed by private litigants like ELF. That 60-day period has expired and to date neither the California Attorney General nor any appropriate district attorney or city attorney has initiated an action against the Company. However, private litigant ELF filed an action against the Company and 27 other named companies on September 28, 2011, in Superior Court of Alameda County, California, alleging violations of Proposition 65 and seeking various measures of relief, including injunctive and declaratory relief and civil penalties. The Company, along with the other named companies, is vigorously defending itself from such claim and has filed a responsive answer. The discovery process is ongoing and the litigation is proceeding in accordance with court schedules. As this matter is still at a very early stage, we are not able to predict the probability of the outcome or estimate of loss, if any, related to this matter. Additionally, in the ordinary course of its business, the Company is made party to certain legal proceedings seeking monetary damages, including proceedings invoking product liability claims, either directly or through indemnification obligations, and we are not able to predict the probability of the outcome or estimate of loss, if any, related to any such matter.
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
|
December 29,
|
December 31,
|
December 29,
|
December 31,
|
||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Canned Vegetables
|
$ | 243.4 | $ | 239.4 | $ | 582.6 | $ | 574.0 | ||||||||
Green Giant Alliance
|
113.1 | 120.1 | 164.6 | 162.1 | ||||||||||||
Frozen
|
21.5 | 22.6 | 61.2 | 73.9 | ||||||||||||
Fruit Products
|
66.5 | 57.3 | 170.0 | 155.9 | ||||||||||||
Snack
|
2.8 | 2.8 | 8.7 | 9.3 | ||||||||||||
Other
|
5.4 | 4.7 | 14.3 | 12.2 | ||||||||||||
|
$ | 452.7 | $ | 446.9 | $ | 1,001.4 | $ | 987.4 |
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
|
December 29,
|
December 31,
|
December 29,
|
December 31,
|
||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Gross Margin
|
9.9 | % | 11.2 | % | 11.5 | % | 7.8 | % | ||||||||
|
||||||||||||||||
Selling
|
2.4 | % | 2.5 | % | 2.7 | % | 2.9 | % | ||||||||
Administrative
|
1.7 | % | 1.8 | % | 2.2 | % | 2.2 | % | ||||||||
Restructuring
|
0.6 | % | - | % | 0.3 | % | - | % | ||||||||
Other Operating Income
|
- | % | -0.2 | % | - | % | -0.1 | % | ||||||||
|
||||||||||||||||
Operating Income
|
5.2 | % | 7.1 | % | 6.3 | % | 2.8 | % | ||||||||
|
||||||||||||||||
Interest Expense, Net
|
0.4 | % | 0.5 | % | 0.5 | % | 0.6 | % | ||||||||
|
|
December 29,
|
December 31,
|
March 31,
|
March 31,
|
||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
|
|
|
|
|
||||||||||||
Working capital:
|
|
|
|
|
||||||||||||
Balance
|
$ | 443,332 | $ | 496,014 | $ | 425,082 | $ | 294,712 | ||||||||
Change during quarter
|
(32,507 | ) | (26,560 | ) | ||||||||||||
Long-term debt, less current portion
|
228,412 | 285,910 | 226,873 | 90,060 | ||||||||||||
Total stockholders' equity per equivalent
|
||||||||||||||||
common share (see Note)
|
32.41 | 30.09 | 29.14 | 28.96 | ||||||||||||
Stockholders' equity per common share
|
33.18 | 30.78 | 29.81 | 29.61 | ||||||||||||
Current ratio
|
3.33 | 4.22 | 4.60 | 2.13 |
·
|
general economic and business conditions;
|
·
|
cost and availability of commodities and other raw materials such as vegetables, steel and packaging materials;
|
·
|
transportation costs;
|
·
|
climate and weather affecting growing conditions and crop yields;
|
·
|
the availability of financing;
|
·
|
leverage and the Company’s ability to service and reduce its debt;
|
·
|
foreign currency exchange and interest rate fluctuations;
|
·
|
effectiveness of the Company’s marketing and trade promotion programs;
|
·
|
changing consumer preferences;
|
·
|
competition;
|
·
|
product liability claims;
|
·
|
the loss of significant customers or a substantial reduction in orders from these customers;
|
·
|
changes in, or the failure or inability to comply with, U.S., foreign and local governmental regulations, including environmental and health and safety regulations; and
|
·
|
other risks detailed from time to time in the reports filed by the Company with the SEC.
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
|
Total Number of
|
Average Price Paid
|
Total Number
|
Maximum Number
|
|||||||||||||||||
|
Shares Purchased (1)
|
per Share
|
of Shares
|
(or Approximate
|
|||||||||||||||||
|
|
|
|
|
Purchased as
|
Dollar Value) or
|
|||||||||||||||
|
|
|
|
|
Part of Publicly
|
Shares that May
|
|||||||||||||||
|
|
|
|
|
Announced
|
Yet Be Purchased
|
|||||||||||||||
|
Class A
|
Class B
|
Class A
|
Class B
|
Plans or
|
Under the Plans or
|
|||||||||||||||
Period
|
Common
|
Common
|
Common
|
Common
|
Programs
|
Programs
|
|||||||||||||||
10/01/12 –
|
29,592 | - | $ | 29.92 | - | 19,492 |
|
||||||||||||||
10/31/12
|
|
||||||||||||||||||||
11/01/12 –
|
6,300 | - | $ | 30.13 | $ | - | - |
|
|||||||||||||
11/30/12
|
|
||||||||||||||||||||
12/01/12 –
|
10,063 | - | $ | 30.87 | - | - |
|
||||||||||||||
12/31/12
|
|
||||||||||||||||||||
Total
|
45,955 | - | $ | 30.16 | $ | - | 19,492 |
346,121
|
31.1
|
Certification of Kraig H. Kayser pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
|
31.2
|
Certification of Timothy J. Benjamin pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
|
32
|
Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)
|
101
|
The following materials from Seneca Foods Corporation’s Quarterly Report on Form 10-Q for the quarter ended December 29, 2012, formatted in XBRL (eXtensible Business Reporting Language): (i) consolidated balance sheets, (ii) consolidated statements of net earnings, (iii) condensed consolidated statements of comprehensive income, (iv) consolidated statements of cash flows, (v) consolidated statement of stockholders’ equity and (vi) the notes to the consolidated financial statements.**
|