AUSTIN, Minn., May 24,
2018 /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a
leading global branded food company, today reported results for the
second quarter of fiscal 2018. All comparisons are to the second
quarter of fiscal 2017 unless otherwise noted.
EXECUTIVE SUMMARY
- Record diluted earnings per share of $0.44, up 13% from 2017 EPS of $0.39
- Fiscal 2018 earnings guidance reaffirmed at $1.81 to $1.95 per
share
- Record net sales of $2.3 billion,
up 7%; Organic net sales1 flat
- Volume of 1.2 billion lbs., up 3%; Organic volume1
down 1%
- Operating margin of 13.1% compared to 14.4% last year
- Effective tax rate of 20.0% compared to 33.2% last year
- Year-to-date cash flow from operations of $443 million, up 58% compared to last year
COMMENTARY
"Our team delivered record earnings per
share of $0.44 which was in line with
our expectation and keeps us on track to maintain our full year
earnings guidance," said Jim Snee,
chairman of the board, president, and chief executive officer. "We
were particularly pleased with the bottom-line performance from
Refrigerated Foods as our experienced team grew our value-added
profits while navigating through volatile markets. Our balanced
business model helped mitigate higher freight costs and a difficult
commodity environment."
"We delivered record sales led by our Refrigerated Foods and
International segments. Strong top-line growth from brands such as
Hormel® Natural Choice® and
Hormel® Bacon 1TM and
international sales of products such as Skippy®
peanut butter was complemented by the strategic acquisitions of
Fontanini, Columbus Craft Meats, and Ceratti," Snee said. "Our core
center store portfolio of brands such as SPAM®,
Dinty Moore®, and
Herdez® also showed strong growth this
quarter."
SEGMENT HIGHLIGHTS – SECOND QUARTER
Refrigerated Foods
- Volume up 6%; Organic volume1 down 1%
- Net sales up 14%; Organic net sales1 flat to last
year
- Segment profit up 18%
Volume and sales increases benefited from the inclusion of the
Columbus and Fontanini acquisitions in addition to strong retail
sales of Hormel® Natural Choice®
products and foodservice sales of Hormel®
pepperoni and Hormel® Bacon
1TM fully cooked bacon. Organic volume
decreased due to lower hog harvest volumes.
Refrigerated Foods delivered segment profit growth of 18%
despite a 25% decline in commodity profits, a double-digit increase
in per-unit freight expenses, and higher advertising expenses.
Strong results were delivered by our branded retail and foodservice
businesses in addition to the inclusion of the Fontanini and
Columbus acquisitions.
Grocery Products
- Volume down 2%
- Net sales down 1%
- Segment profit down 12%
Low-single-digit sales growth in our core Grocery Products
portfolio, led by Wholly Guacamole® dips, the
SPAM® family of products,
Herdez® salsas, Dinty
Moore® stew, and Hormel®
chili, was more than offset by significant sales declines across
the CytoSport portfolio and our contract manufacturing
business. Total Grocery Products segment profit was down due to
increased promotional activity and lower volumes at CytoSport and
lower earnings from our contract manufacturing business.
Jennie-O Turkey Store
- Volume down 3%
- Net sales down 4%
- Segment profit down 34%
Sales declines were primarily due to lower whole bird pricing
and volume as a result of continued oversupply of turkeys in the
industry and excess meat in cold storage. Sales declines of whole
birds were partially offset by increased retail sales, led by
Jennie-O® lean ground turkey and
Jennie-O® Oven Ready® products.
Segment profit decreased as a result of lower profits from whole
bird and commodity sales, double-digit increases in per-unit
freight costs, and increased advertising.
International & Other
- Volume up 14%; Organic volume1 up 1%
- Net sales up 22%; Organic net sales1 up 8%
- Segment profit up 6%
International volume and sales increases were related to strong
results in China, increased export
sales, and the inclusion of the Ceratti business. Earnings
increased on improved profitability in China due to lower raw material costs but were
partially offset by higher advertising expenses and lower branded
export margins.
SELECTED FINANCIAL DETAILS
Income Statement
- Selling, general and administrative expenses increased due to
the impact from acquisitions and higher advertising expense.
- Advertising expenses were $37
million compared to $30
million last year. Full year advertising expenses are
expected to increase by approximately 20% over last year.
- Operating margin was 13.1% compared to 14.4% last year.
- The effective tax rate was 20.0% compared to 33.2% last year
due to the passage of The Tax Cuts and Jobs Act in December 2017. The full year effective tax rate
is expected to be between 17.5% and 19.5%.
Cash Flow Statement
- Capital expenditures in the second quarter were $87 million compared to $39 million last year. Full year capital
expenditures are expected to total $425
million. Key projects include bacon capacity increases in
our Wichita, Kans., facility, a new whole bird facility in
Melrose, Minn., modernization of
the Austin, Minn., plant, and
projects designed to increase value-added capacity.
- Depreciation and amortization expense in the second quarter was
$41 million compared to $32 million last year. Full year expenses are
expected to be approximately $160
million.
- Share repurchases to date total $45
million, representing 1.3 million shares purchased.
- The Company repaid $70 million in
short-term debt in the quarter.
- The Company paid its 359th consecutive quarterly
dividend at the annual rate of $0.75
per share, a 10% increase over the prior year.
Balance Sheet
- Working capital increased to $702
million from $625 million in
the first quarter, primarily related to a higher inventories from
acquisitions and lower accounts payable.
- Cash on hand decreased to $262
million from $386 million for
the first quarter as the Company continues to pay down short-term
debt related to the Columbus Craft Meats acquisition.
- Total debt is $810 million. The
debt is split between short-term borrowings of $185 million and long-term borrowings of
$625 million.
- The Company remains in a strong financial position to fund
other capital needs.
OUTLOOK
"We are reaffirming our sales and earnings
outlook for fiscal 2018," Snee said. "Our balanced business model
allows us to manage through volatility and deliver consistent
earnings growth. We continue to execute our value-added growth
strategy in Refrigerated Foods and expect our retail and
foodservice branded businesses to offset higher freight costs and
lower pork commodity profits. Our expectation is for strong
year-over-year earnings growth for International and for Grocery
Products to return to its growth trajectory. While we are starting
to see early signs of a recovery in the turkey industry, we expect
Jennie-O Turkey Store to continue showing earnings declines for the
remainder of this year."
"We are making excellent progress on the integrations of our
recent acquisitions. These efforts, in combination with continued
execution of our strategic imperatives, will ensure we remain in a
position to deliver strong growth in the future."
|
Fiscal 2018
Outlook
|
Net Sales Guidance
(in billions)
|
$9.70 -
$10.10
|
Earnings per Share
Guidance
|
$1.81 -
$1.95
|
PRESENTATION
A conference call will be webcast at
8:00 a.m. CT on Thursday, May 24,
2018. Access is available at www.hormelfoods.com. The call
will also be available via telephone by dialing 800-239-9838 and
providing the access code 9118102. An audio replay is available by
going to www.hormelfoods.com and clicking
on Investors. The webcast replay will be available at
11:00 a.m. CT, Thursday, May 24, 2018, and will remain on the
website for one year.
ABOUT HORMEL FOODS - Inspired People. Inspired
Food.™
Hormel Foods Corporation, based in Austin, Minn., is a leading global branded
food company with over $9 billion in
annual revenues across more than 80 countries worldwide. Its brands
include Skippy®, SPAM®, Hormel® Natural Choice®,
Columbus®, Applegate®, Justin's®, Wholly Guacamole®, Hormel® Black
Label® and more than 30 other beloved brands. The company is a
member of the S&P 500 Index and the S&P 500 Dividend
Aristocrats, was named one of "The 100 Best Corporate Citizens" by
Corporate Responsibility Magazine for the tenth year in a row, and
has received numerous other awards and accolades for its corporate
responsibility and community service efforts. In 2016, the company
celebrated its 125th anniversary and announced its new vision for
the future - Inspired People. Inspired Food.™ - focusing on its
legacy of innovation. For more information, visit
www.hormelfoods.com and http://csr.hormelfoods.com/.
FORWARD-LOOKING STATEMENTS
This news release contains
forward-looking information based on management's current views and
assumptions. Actual events may differ materially. Please refer to
the cautionary statement regarding Forward-Looking Statements and
Risk Factors which appear on pages 31 - 38 in the company's Form
10-Q for the quarter ended January 28,
2018, which can be accessed
at www.hormelfoods.com under "Investors - Filings &
Reports - SEC Filings."
1 COMPARISON OF U.S. GAAP TO
NON-GAAP FINANCIAL MEASUREMENTS
The non-GAAP adjusted
financial measurements of organic net sales and organic volume are
presented to provide investors additional information to facilitate
the comparison of past and present operations. The company believes
these non-GAAP financial measurements provide useful information to
investors because they are the measurements used to evaluate
performance on a comparable year-over-year basis. Non-GAAP
measurements are not intended to be a substitute for U.S. GAAP
measurements in analyzing financial performance. These non-GAAP
measurements are not in accordance with generally accepted
accounting principles and may be different from non-GAAP measures
used by other companies.
Organic net sales and organic volume are defined as net sales
and volume excluding the impact of acquisitions and divestitures.
Organic net sales and organic volume exclude the impacts of the
acquisition of Columbus Craft Meats (November 2017), the acquisition of Fontanini
Italian Meats and Sausages (August 2017), and the divestiture
of Farmer John (January 2017) in
Refrigerated Foods and the acquisition of Ceratti
(August 2017) in International. The tables below show the
calculations to reconcile from the non-GAAP adjusted measures to
the GAAP measures in the second quarter and second quarter
year-to-date of fiscal 2018 and fiscal 2017.
NON-GAAP1 VOLUME AND SALES
DATA
|
(Unaudited) (In
thousands)
|
|
2nd
Quarter
|
|
FY
2018
|
|
FY
2017
|
|
VOLUME
(LBS.)
|
|
Reported
(GAAP)
|
|
Acquisitions
|
|
Organic
(Non-GAAP)
|
|
Reported
(GAAP)
|
|
Organic
% change
|
Grocery
Products
|
|
333,398
|
|
|
—
|
|
|
333,398
|
|
|
338,883
|
|
|
(1.6)
|
|
Refrigerated
Foods
|
|
548,319
|
|
|
(38,402)
|
|
|
509,917
|
|
|
515,490
|
|
|
(1.1)
|
|
Jennie-O Turkey
Store
|
|
197,806
|
|
|
—
|
|
|
197,806
|
|
|
203,557
|
|
|
(2.8)
|
|
International & Other
|
|
91,878
|
|
|
(10,676)
|
|
|
81,202
|
|
|
80,312
|
|
|
1.1
|
|
TOTAL
|
|
1,171,401
|
|
|
(49,078)
|
|
|
1,122,323
|
|
|
1,138,242
|
|
|
(1.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY
2018
|
|
FY
2017
|
|
NET
SALES
|
|
Reported
(GAAP)
|
|
Acquisitions
|
|
Organic
(Non-GAAP)
|
|
Reported
(GAAP)
|
|
Organic
% change
|
Grocery
Products
|
|
$
|
631,550
|
|
|
$
|
—
|
|
|
$
|
631,550
|
|
|
$
|
640,419
|
|
|
(1.4)
|
|
Refrigerated
Foods
|
|
1,166,967
|
|
|
(134,878)
|
|
|
1,032,089
|
|
|
1,027,486
|
|
|
0.4
|
|
Jennie-O Turkey
Store
|
|
371,916
|
|
|
|
|
371,916
|
|
|
388,237
|
|
|
(4.2)
|
|
International & Other
|
|
160,135
|
|
|
(19,040)
|
|
|
141,095
|
|
|
131,167
|
|
|
7.6
|
|
TOTAL
|
|
$
|
2,330,568
|
|
|
$
|
(153,918)
|
|
|
$
|
2,176,650
|
|
|
$
|
2,187,309
|
|
|
(0.5)
|
|
Year to
Date
|
|
FY
2018
|
|
FY
2017
|
|
|
VOLUME
(LBS.)
|
|
Reported
(GAAP)
|
|
Acquisitions
|
|
Organic
(Non-GAAP)
|
|
Reported
(GAAP)
|
|
Divestitures
|
|
Organic
(Non-GAAP)
|
|
Organic
% change
|
Grocery
Products
|
|
667,615
|
|
|
—
|
|
|
667,615
|
|
|
677,675
|
|
|
—
|
|
|
677,675
|
|
|
(1.5)
|
|
Refrigerated
Foods
|
|
1,110,814
|
|
|
(70,062)
|
|
|
1,040,752
|
|
|
1,129,915
|
|
|
(80,454)
|
|
|
1,049,461
|
|
|
(0.8)
|
|
Jennie-O Turkey
Store
|
|
406,237
|
|
|
—
|
|
|
406,237
|
|
|
420,200
|
|
|
—
|
|
|
420,200
|
|
|
(3.3)
|
|
International & Other
|
|
177,327
|
|
|
(23,509)
|
|
|
153,818
|
|
|
155,361
|
|
|
—
|
|
|
155,361
|
|
|
(1.0)
|
|
TOTAL
|
|
2,361,993
|
|
|
(93,571)
|
|
|
2,268,422
|
|
|
2,383,151
|
|
|
(80,454)
|
|
|
2,302,697
|
|
|
(1.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY
2018
|
|
FY
2017
|
|
|
NET
SALES
|
|
Reported
(GAAP)
|
|
Acquisitions
|
|
Organic
(Non-GAAP)
|
|
Reported
(GAAP)
|
|
Divestitures
|
|
Organic
(Non-GAAP)
|
|
Organic
% change
|
Grocery
Products
|
|
$
|
1,245,420
|
|
|
$
|
—
|
|
|
$
|
1,245,420
|
|
|
$
|
1,250,793
|
|
|
$
|
—
|
|
|
$
|
1,250,793
|
|
|
(0.4)
|
|
Refrigerated
Foods
|
|
2,343,423
|
|
|
(245,895)
|
|
|
2,097,528
|
|
|
2,150,525
|
|
|
(100,231)
|
|
|
2,050,294
|
|
|
2.3
|
|
Jennie-O Turkey
Store
|
|
762,564
|
|
|
—
|
|
|
762,564
|
|
|
809,226
|
|
|
—
|
|
|
809,226
|
|
|
(5.8)
|
|
International & Other
|
|
310,454
|
|
|
(40,895)
|
|
|
269,559
|
|
|
256,992
|
|
|
—
|
|
|
256,992
|
|
|
4.9
|
|
TOTAL
|
|
$
|
4,661,861
|
|
|
$
|
(286,790)
|
|
|
$
|
4,375,071
|
|
|
$
|
4,467,536
|
|
|
$
|
(100,231)
|
|
|
$
|
4,367,305
|
|
|
0.2
|
|
Statements Follow
HORMEL FOODS
CORPORATION
|
SEGMENT
DATA
|
(Unaudited) (In
thousands)
|
|
|
|
|
|
|
|
Thirteen Weeks
Ended
|
|
|
April 29,
2018
|
|
April 30,
2017
|
|
%
Change
|
NET
SALES
|
|
|
|
|
|
|
Grocery
Products
|
|
$
|
631,550
|
|
|
$
|
640,419
|
|
|
(1.4)
|
|
Refrigerated
Foods
|
|
1,166,967
|
|
|
1,027,486
|
|
|
13.6
|
|
Jennie-O Turkey
Store
|
|
371,916
|
|
|
388,237
|
|
|
(4.2)
|
|
International & Other
|
|
160,135
|
|
|
131,167
|
|
|
22.1
|
|
TOTAL
|
|
$
|
2,330,568
|
|
|
$
|
2,187,309
|
|
|
6.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
PROFIT
|
|
|
|
|
|
|
Grocery
Products
|
|
$
|
95,651
|
|
|
$
|
108,297
|
|
|
(11.7)
|
|
Refrigerated
Foods
|
|
154,192
|
|
|
130,194
|
|
|
18.4
|
|
Jennie-O Turkey
Store
|
|
42,356
|
|
|
63,786
|
|
|
(33.6)
|
|
International & Other
|
|
20,850
|
|
|
19,617
|
|
|
6.3
|
|
TOTAL SEGMENT
OPERATING PROFIT
|
|
313,049
|
|
|
321,894
|
|
|
(2.7)
|
|
Net interest and
investment expense (income)
|
|
9,490
|
|
|
205
|
|
|
4,529.3
|
|
General corporate
expense
|
|
6,814
|
|
|
5,822
|
|
|
17.0
|
|
Noncontrolling
interest
|
|
138
|
|
|
(40)
|
|
|
445.0
|
|
EARNINGS BEFORE
INCOME TAX
|
|
$
|
296,883
|
|
|
$
|
315,827
|
|
|
(6.0)
|
|
|
|
|
|
|
|
|
Twenty-Six Weeks
Ended
|
|
|
April 29,
2018
|
|
April 30,
2017
|
|
%
Change
|
NET
SALES
|
|
|
|
|
|
|
Grocery
Products
|
|
$
|
1,245,420
|
|
|
$
|
1,250,793
|
|
|
(0.4)
|
|
Refrigerated
Foods
|
|
2,343,423
|
|
|
2,150,525
|
|
|
9.0
|
|
Jennie-O Turkey
Store
|
|
762,564
|
|
|
809,226
|
|
|
(5.8)
|
|
International & Other
|
|
310,454
|
|
|
256,992
|
|
|
20.8
|
|
TOTAL
|
|
$
|
4,661,861
|
|
|
$
|
4,467,536
|
|
|
4.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
PROFIT
|
|
|
|
|
|
|
Grocery
Products
|
|
$
|
195,628
|
|
|
$
|
200,673
|
|
|
(2.5)
|
|
Refrigerated
Foods
|
|
297,141
|
|
|
304,002
|
|
|
(2.3)
|
|
Jennie-O Turkey
Store
|
|
92,230
|
|
|
131,966
|
|
|
(30.1)
|
|
International & Other
|
|
45,505
|
|
|
45,080
|
|
|
0.9
|
|
TOTAL SEGMENT
OPERATING PROFIT
|
|
630,504
|
|
|
681,721
|
|
|
(7.5)
|
|
Net interest and
investment expense (income)
|
|
10,913
|
|
|
782
|
|
|
1,295.5
|
|
General corporate
expense
|
|
17,785
|
|
|
10,443
|
|
|
70.3
|
|
Noncontrolling
interest
|
|
242
|
|
|
116
|
|
|
108.6
|
|
EARNINGS BEFORE
INCOME TAX
|
|
$
|
602,048
|
|
|
$
|
670,612
|
|
|
(10.2)
|
|
HORMEL FOODS
CORPORATION
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Unaudited) (In
thousands, except per share amounts)
|
|
|
|
Thirteen Weeks
Ended
|
|
Twenty-Six Weeks
Ended
|
|
|
April 29,
2018
|
|
April 30,
2017
|
|
April 29,
2018
|
|
April 30,
2017
|
Net sales
|
|
$
|
2,330,568
|
|
|
$
|
2,187,309
|
|
|
$
|
4,661,861
|
|
|
$
|
4,467,536
|
|
Cost of products
sold
|
|
1,833,882
|
|
|
1,700,389
|
|
|
3,662,996
|
|
|
3,428,336
|
|
GROSS
PROFIT
|
|
496,686
|
|
|
486,920
|
|
|
998,865
|
|
|
1,039,200
|
|
Selling, general and
administrative
|
|
203,799
|
|
|
181,009
|
|
|
422,921
|
|
|
391,226
|
|
Equity in earnings of
affiliates
|
|
13,486
|
|
|
10,121
|
|
|
37,017
|
|
|
23,420
|
|
OPERATING
INCOME
|
|
306,373
|
|
|
316,032
|
|
|
612,961
|
|
|
671,394
|
|
Interest &
investment (expense) income
|
|
(2,489)
|
|
|
2,818
|
|
|
817
|
|
|
5,267
|
|
Interest
expense
|
|
(7,001)
|
|
|
(3,023)
|
|
|
(11,730)
|
|
|
(6,049)
|
|
EARNINGS BEFORE
INCOME TAXES
|
|
296,883
|
|
|
315,827
|
|
|
602,048
|
|
|
670,612
|
|
Provision for income
taxes
|
|
59,361
|
|
|
104,941
|
|
|
61,315
|
|
|
224,423
|
|
(effective tax
rate)
|
|
20.0
|
%
|
|
33.2
|
%
|
|
10.2
|
%
|
|
33.5
|
%
|
NET
EARNINGS
|
|
237,522
|
|
|
210,886
|
|
|
540,733
|
|
|
446,189
|
|
Less: net earnings
attributable to noncontrolling interest
|
|
138
|
|
|
(40)
|
|
|
242
|
|
|
116
|
|
NET EARNINGS
ATTRIBUTABLE TO HORMEL FOODS CORPORATION
|
|
$
|
237,384
|
|
|
$
|
210,926
|
|
|
$
|
540,491
|
|
|
$
|
446,073
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS PER
SHARE
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.45
|
|
|
$
|
0.40
|
|
|
$
|
1.02
|
|
|
$
|
0.84
|
|
Diluted
|
|
$
|
0.44
|
|
|
$
|
0.39
|
|
|
$
|
1.00
|
|
|
$
|
0.83
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVG.
SHARES OUTSTANDING
|
|
|
|
|
|
|
|
|
Basic
|
|
529,799
|
|
|
528,712
|
|
|
529,626
|
|
|
528,649
|
|
Diluted
|
|
542,811
|
|
|
539,635
|
|
|
543,146
|
|
|
539,850
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
|
$
|
0.1875
|
|
|
$
|
0.1700
|
|
|
$
|
0.3750
|
|
|
$
|
0.3400
|
|
HORMEL FOODS
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
(Unaudited) (In
thousands)
|
|
|
|
April 29,
2018
|
|
October 29,
2017
|
ASSETS
|
Cash and cash
equivalents
|
|
$
|
261,571
|
|
|
$
|
444,122
|
|
Accounts
receivable
|
|
551,392
|
|
|
618,351
|
|
Inventories
|
|
1,011,215
|
|
|
921,022
|
|
Income taxes
receivable
|
|
2,930
|
|
|
22,346
|
|
Prepaid
expenses
|
|
18,534
|
|
|
16,144
|
|
Other current
assets
|
|
5,138
|
|
|
4,538
|
|
TOTAL CURRENT
ASSETS
|
|
1,850,780
|
|
|
2,026,523
|
|
Intangibles
|
|
3,983,252
|
|
|
3,146,827
|
|
Other
Assets
|
|
641,864
|
|
|
599,307
|
|
Property, Plant &
Equipment, Net
|
|
1,353,853
|
|
|
1,203,251
|
|
TOTAL
ASSETS
|
|
$
|
7,829,749
|
|
|
$
|
6,975,908
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' INVESTMENT
|
Short-term
debt
|
|
$
|
185,000
|
|
|
$
|
—
|
|
Current liabilities
excluding debt
|
|
963,461
|
|
|
1,058,212
|
|
TOTAL CURRENT
LIABILITIES
|
|
1,148,461
|
|
|
1,058,212
|
|
Long-term debt - Less
current maturities
|
|
624,763
|
|
|
250,000
|
|
Deferred income
taxes
|
|
125,425
|
|
|
98,410
|
|
Other long-term
liabilities
|
|
639,467
|
|
|
629,589
|
|
Shareholders'
Investment
|
|
5,291,633
|
|
|
4,939,697
|
|
TOTAL
LIAB. & SHAREHOLDERS' INVESTMENT
|
|
$
|
7,829,749
|
|
|
$
|
6,975,908
|
|
HORMEL FOODS
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited) (In
thousands)
|
|
|
|
Twenty-Six
Weeks Ended
|
|
|
April 29,
2018
|
|
April 30,
2017
|
OPERATING
ACTIVITIES
|
|
|
|
|
Net
earnings
|
|
$
|
540,733
|
|
|
$
|
446,189
|
|
Depreciation and
amortization of intangibles
|
|
80,316
|
|
|
63,328
|
|
Increase in working
capital
|
|
(77,785)
|
|
|
(239,931)
|
|
Other
|
|
(99,923)
|
|
|
10,966
|
|
NET CASH PROVIDED
BY OPERATING ACTIVITIES
|
|
443,341
|
|
|
280,552
|
|
|
|
|
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
Proceeds from sale of
business
|
|
—
|
|
|
135,944
|
|
Acquisitions of
businesses/intangibles
|
|
(857,673)
|
|
|
—
|
|
Net purchases of
property/equipment
|
|
(134,721)
|
|
|
(75,818)
|
|
Decrease in
investments, equity in affiliates, and other assets
|
|
5,934
|
|
|
3,977
|
|
NET CASH (USED IN)
PROVIDED BY INVESTING ACTIVITIES
|
|
(986,460)
|
|
|
64,103
|
|
|
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
Net proceeds
(payments) from short-term debt
|
|
185,000
|
|
|
—
|
|
Net proceeds
(payments) from long-term debt
|
|
374,763
|
|
|
—
|
|
Dividends paid on
common stock
|
|
(189,139)
|
|
|
(166,507)
|
|
Share
repurchase
|
|
(44,741)
|
|
|
(49,583)
|
|
Other
|
|
29,978
|
|
|
8,879
|
|
NET CASH PROVIDED
BY (USED IN) FINANCING ACTIVITIES
|
|
355,861
|
|
|
(207,211)
|
|
Effect of exchange
rate changes on cash
|
|
4,707
|
|
|
(3,686)
|
|
(DECREASE)
INCREASE IN CASH AND CASH EQUIVALENTS
|
|
(182,551)
|
|
|
133,758
|
|
Cash and cash
equivalents at beginning of year
|
|
444,122
|
|
|
415,143
|
|
CASH AND CASH
EQUIVALENTS AT END OF QUARTER
|
|
$
|
261,571
|
|
|
$
|
548,901
|
|
INVESTOR
CONTACT:
Nathan
Annis
(507)
437-5248
ir@hormel.com
|
|
MEDIA
CONTACT:
Wendy
Watkins
(507)
437-5345
media@hormel.com
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/hormel-foods-announces-record-second-quarter-results-and-reaffirms-full-year-guidance-300654015.html
SOURCE Hormel Foods Corporation