Corporate & Financial News Releases
The J. M. Smucker Company Announces Fiscal 2016 Third Quarter Results
EXECUTIVE SUMMARY
- Net sales increased
$533.9 million , or 37 percent, reflecting the contribution of Big Heart Pet Brands ("Big Heart"), acquired in fiscal 2015. - Net income per diluted share was
$1.55 , a decrease of 2 percent, as the benefit from Big Heart operations and the gain on the U.S. canned milk divestiture were offset by merger and integration costs, higher interest expense, and the impact of additional shares outstanding. - Non-GAAP income per diluted share was
$1.76 , an increase of 14 percent. Adjusted non-GAAP income per diluted share, which excludes amortization, was$2.05 , an increase of 21 percent. Both measures include a$0.14 per share gain on the U.S. canned milk divestiture. - Free cash flow was
$498.9 million , an increase of 32 percent. - The Company updated its fiscal 2016 earnings outlook to account for the gain on the U.S. canned milk divestiture, with non-GAAP income per diluted share expected to range from
$5.84 to $5.94 and its adjusted non-GAAP income per diluted share expected to range from$6.99 to $7.09 .
CHIEF EXECUTIVE OFFICER REMARKS
"We delivered another quarter of solid financial results which, most notably, was attributable to the ongoing momentum for our coffee business," said
THIRD QUARTER CONSOLIDATED RESULTS
Three Months Ended January 31, |
|||||||
% Increase |
|||||||
2016 |
2015 |
(Decrease) |
|||||
(Dollars and shares in millions, except per share data) |
|||||||
Net sales |
$ 1,973.9 |
$ 1,440.0 |
37% |
||||
Operating income |
$ 318.3 |
$ 255.1 |
25% |
||||
Non-GAAP operating income |
356.1 |
248.0 |
44% |
||||
Net income per common share - assuming dilution |
$ 1.55 |
$ 1.58 |
(2%) |
||||
Non-GAAP income per common share - assuming dilution |
1.76 |
1.54 |
14% |
||||
Adjusted non-GAAP income per common share - assuming dilution |
2.05 |
1.70 |
21% |
||||
Weighted-average shares outstanding - assuming dilution |
119.7 |
101.8 |
18% |
Results for the period ended January 31, 2016, include the operations of Big Heart, which was acquired after the comparable prior year period, and the impact of the U.S. canned milk divestiture, which closed on December 31, 2015. Adjusted non-GAAP income per diluted share excludes the noncash impact of amortization. |
Net sales increased reflecting the contribution of
Gross profit increased
Selling, distribution, and administrative expenses increased
Operating income increased
On a non-GAAP basis, gross profit increased
Net interest expense increased
For the quarter, cash provided by operating activities was
FULL-YEAR OUTLOOK
The Company updated its full-year fiscal 2016 guidance as provided below:
Current |
Previous* |
|
Net sales |
$7.8 billion |
$7.9 billion |
Non-GAAP income per common share - assuming dilution |
$5.84 - $5.94 |
$5.70 - $5.80 |
Adjusted non-GAAP income per common share - assuming dilution |
$6.99 - $7.09 |
$6.85 - $6.95 |
Free cash flow |
$975 million |
$925 million |
Capital expenditures |
$240 million |
$220 million |
*As of November 19, 2015 |
Net sales are expected to increase approximately 37 percent over 2015 reflecting a full-year contribution from Big Heart. Included in the earnings guidance range is
THIRD QUARTER SEGMENT RESULTS
Dollar amounts in the segment tables below are reported in millions.
U.S. Retail Coffee
Net |
Segment |
Segment |
||||
Sales |
Profit |
Profit Margin |
||||
FY16 Q3 Results |
$575.5 |
$175.9 |
30.6% |
|||
Change vs prior year |
1% |
17% |
430bps |
Segment net sales increased
Net |
Segment |
Segment |
||||
Sales |
Profit |
Profit Margin |
||||
FY16 Q3 Results |
$569.8 |
$128.0 |
22.5% |
|||
Change vs prior year |
(5%) |
6% |
240bps |
Segment net sales decreased
Net |
Segment |
Segment |
||||
Sales |
Profit |
Profit Margin |
||||
FY16 Q3 Results |
$570.9 |
$97.2 |
17.0% |
The segment contributed net sales of
International and Foodservice
Net |
Segment |
Segment |
||||
Sales |
Profit |
Profit Margin |
||||
FY16 Q3 Results |
$257.7 |
$43.3 |
16.8% |
|||
Change vs prior year |
(4%) |
4% |
120bps |
Net sales decreased $9.7 million, as an unfavorable $17.5 million impact of foreign currency exchange more than offset a $9.4 million contribution from Big Heart. Volume/mix was favorable, contributing 1 percentage point of growth to net sales, offset by lower net price realization. Segment profit increased $1.6 million, benefiting from favorable volume/mix and a decrease in selling expense. These items were mostly offset by higher costs attributed to sourcing certain products from the U.S., reflecting the impact of a weaker Canadian dollar compared to a year ago.
Conference Call
The Company will conduct an earnings conference call and webcast today,
The J. M. Smucker Company Forward-Looking Statements
This press release contains forward-looking statements, such as projected net sales, operating results, earnings, and cash flows, that are subject to risks and uncertainties that could cause actual results to differ materially from future results expressed or implied by those forward-looking statements. The risks, uncertainties, important factors, and assumptions listed and discussed in this press release, that could cause actual results to differ materially from those expressed include: the ability to successfully integrate acquired businesses in a timely and cost-effective manner and retain key suppliers, customers, and employees; the ability to achieve synergies and cost savings related to the Big Heart acquisition in the amounts and within the time frames currently anticipated; the ability to generate sufficient cash flow to meet the Company's deleveraging objectives; volatility of commodity, energy, and other input costs; risks associated with derivative and purchasing strategies employed to manage commodity pricing risks; the availability of reliable transportation on acceptable terms; the ability to implement and realize the full benefit of price changes, and the impact of the timing of the price changes to profits and cash flow in a particular period; the success and cost of marketing and sales programs and strategies intended to promote growth in the businesses, including the introduction of new products; general competitive activity in the market, including competitors' pricing practices and promotional spending levels; the impact of food security concerns involving either the Company's or its competitors' products; the impact of accidents, extreme weather, and natural disasters; the concentration of certain of the Company's businesses with key customers and suppliers, including single-source suppliers of certain raw materials and finished goods, and the ability to manage and maintain key relationships; the timing and amount of capital expenditures and share repurchases; impairments in the carrying value of goodwill, other intangible assets, or other long-lived assets or changes in useful lives of other intangible assets; the impact of new or changes to existing governmental laws and regulations and their application; the outcome of tax examinations, changes in tax laws, and other tax matters; foreign currency and interest rate fluctuations; and risks related to other factors described under "Risk Factors" in other reports and statements filed with the Securities and Exchange Commission, including the most recent Annual Report on Form 10-K. The Company undertakes no obligation to update or revise these forward-looking statements, which speak only as of the date made, to reflect new events or circumstances.
About The
For nearly 120 years, The
The
The J. M. Smucker Company |
||||||||||||
Unaudited Condensed Consolidated Statements of Income |
||||||||||||
Three Months Ended January 31, |
Nine Months Ended January 31, |
|||||||||||
% Increase |
% Increase |
|||||||||||
2016 |
2015 |
(Decrease) |
2016 |
2015 |
(Decrease) |
|||||||
(Dollars in millions, except per share data) |
||||||||||||
Net sales |
$ 1,973.9 |
$ 1,440.0 |
37% |
$ 6,003.6 |
$ 4,245.6 |
41% |
||||||
Cost of products sold |
1,210.1 |
917.1 |
32% |
|
3,723.8 |
2,707.5 |
38% |
|||||
Gross Profit |
763.8 |
522.9 |
46% |
2,279.8 |
1,538.1 |
48% |
||||||
Gross margin |
38.7% |
36.3% |
38.0% |
36.2% |
||||||||
Selling, distribution, and administrative |
381.1 |
237.3 |
61% |
1,158.5 |
743.1 |
56% |
||||||
Amortization |
52.2 |
25.2 |
107% |
158.2 |
75.3 |
110% |
||||||
Other special project costs |
41.4 |
5.9 |
n/m |
94.9 |
17.3 |
n/m |
||||||
Other operating (income) expense - net |
(29.2) |
(0.6) |
n/m |
(31.0) |
0.9 |
n/m |
||||||
Operating Income |
318.3 |
255.1 |
25% |
899.2 |
701.5 |
28% |
||||||
Operating margin |
16.1% |
17.7% |
15.0% |
16.5% |
||||||||
Interest expense - net |
(43.6) |
(16.8) |
160% |
(130.6) |
(50.4) |
159% |
||||||
Other income (expense) - net |
0.6 |
0.1 |
n/m |
(0.9) |
1.7 |
(153%) |
||||||
Income Before Income Taxes |
275.3 |
238.4 |
15% |
767.7 |
652.8 |
18% |
||||||
Income tax expense |
90.0 |
77.5 |
16% |
270.0 |
217.6 |
24% |
||||||
Net Income |
$ 185.3 |
$ 160.9 |
15% |
$ 497.7 |
$ 435.2 |
14% |
||||||
Net income per common share |
$ 1.55 |
$ 1.58 |
(2%) |
$ 4.16 |
$ 4.28 |
(3%) |
||||||
Net income per common share – |
||||||||||||
assuming dilution |
$ 1.55 |
$ 1.58 |
(2%) |
$ 4.16 |
$ 4.28 |
(3%) |
||||||
Dividends declared per common share |
$ 0.67 |
$ 0.64 |
5% |
$ 2.01 |
$ 1.92 |
5% |
||||||
Weighted-average shares outstanding |
119,682,362 |
101,800,825 |
18% |
119,658,138 |
101,796,891 |
18% |
||||||
Weighted-average shares outstanding – |
||||||||||||
assuming dilution |
119,734,947 |
101,801,500 |
18% |
119,683,493 |
101,801,023 |
18% |
||||||
The J. M. Smucker Company |
|||||||
Unaudited Condensed Consolidated Balance Sheets |
|||||||
January 31, 2016 |
April 30, 2015 |
January 31, 2015 |
|||||
(Dollars in millions) |
|||||||
Assets |
|||||||
Current Assets: |
|||||||
Cash and cash equivalents |
$ 140.5 |
$ 125.6 |
$ 111.7 |
||||
Trade receivables, less allowance for doubtful accounts |
503.8 |
430.1 |
373.9 |
||||
Inventories |
942.0 |
1,163.6 |
944.2 |
||||
Other current assets |
212.1 |
340.9 |
85.8 |
||||
Total Current Assets |
1,798.4 |
2,060.2 |
1,515.6 |
||||
Property, Plant, and Equipment - Net |
1,623.9 |
1,678.3 |
1,323.3 |
||||
Other Noncurrent Assets: |
|||||||
Goodwill |
5,944.9 |
6,011.6 |
3,134.9 |
||||
Other intangible assets - net |
6,715.0 |
6,950.3 |
2,973.9 |
||||
Other noncurrent assets |
199.3 |
182.2 |
141.8 |
||||
Total Other Noncurrent Assets |
12,859.2 |
13,144.1 |
6,250.6 |
||||
Total Assets |
$ 16,281.5 |
$ 16,882.6 |
$ 9,089.5 |
||||
Liabilities and Shareholders' Equity |
|||||||
Current Liabilities: |
|||||||
Accounts payable |
$ 371.0 |
$ 402.8 |
$ 232.3 |
||||
Current portion of long-term debt |
- |
- |
24.0 |
||||
Short-term borrowings |
138.0 |
226.0 |
264.0 |
||||
Other current liabilities |
497.0 |
393.8 |
189.8 |
||||
Total Current Liabilities |
1,006.0 |
1,022.6 |
710.1 |
||||
Noncurrent Liabilities: |
|||||||
Long-term debt |
5,146.3 |
5,944.9 |
1,885.7 |
||||
Other noncurrent liabilities |
2,803.7 |
2,828.2 |
1,269.5 |
||||
Total Noncurrent Liabilities |
7,950.0 |
8,773.1 |
3,155.2 |
||||
Shareholders' Equity |
7,325.5 |
7,086.9 |
5,224.2 |
||||
Total Liabilities and Shareholders' Equity |
$ 16,281.5 |
$ 16,882.6 |
$ 9,089.5 |
||||
The J. M. Smucker Company |
||||||||||
Unaudited Condensed Consolidated Statements of Cash Flow |
||||||||||
Three Months Ended January 31, |
Nine Months Ended January 31, |
|||||||||
2016 |
2015 |
2016 |
2015 |
|||||||
(Dollars in millions) |
||||||||||
Operating Activities |
||||||||||
Net income |
$ 185.3 |
$ 160.9 |
$ 497.7 |
$ 435.2 |
||||||
Adjustments to reconcile net income to net cash |
||||||||||
provided by operating activities: |
||||||||||
Depreciation |
55.1 |
37.9 |
165.5 |
114.1 |
||||||
Amortization |
52.2 |
25.2 |
158.2 |
75.3 |
||||||
Other noncash adjustments |
0.9 |
(0.4) |
(1.5) |
(0.6) |
||||||
Share-based compensation expense |
10.5 |
3.8 |
26.9 |
15.9 |
||||||
Gain on divestiture |
(25.3) |
- |
(25.3) |
- |
||||||
Loss on disposal of assets - net |
1.2 |
2.3 |
3.8 |
4.3 |
||||||
Defined benefit pension contributions |
(0.6) |
(1.2) |
(2.4) |
(4.3) |
||||||
Changes in assets and liabilities, net of effect |
||||||||||
from businesses acquired: |
||||||||||
Trade receivables |
99.5 |
75.4 |
(79.0) |
(65.3) |
||||||
Inventories |
84.5 |
113.9 |
192.1 |
(16.5) |
||||||
Accounts payable and accrued items |
95.9 |
(45.8) |
93.3 |
(129.4) |
||||||
Proceeds from settlement of interest rate swaps |
- |
53.5 |
- |
53.5 |
||||||
Income and other taxes |
0.4 |
14.3 |
66.7 |
8.2 |
||||||
Other - net |
(17.3) |
(12.1) |
26.8 |
21.2 |
||||||
Net Cash Provided by Operating Activities |
542.3 |
427.7 |
1,122.8 |
511.6 |
||||||
Investing Activities |
||||||||||
Business acquired, net of cash acquired |
- |
(0.2) |
7.9 |
(80.5) |
||||||
Equity investment in affiliate |
(16.0) |
- |
(16.0) |
- |
||||||
Additions to property, plant, and equipment |
(43.4) |
(48.4) |
(160.8) |
(162.1) |
||||||
Proceeds from divestiture |
193.7 |
- |
193.7 |
- |
||||||
Proceeds from disposal of property, plant, and equipment |
- |
0.4 |
0.2 |
1.6 |
||||||
Other - net |
(7.6) |
(10.7) |
5.7 |
(12.0) |
||||||
Net Cash Provided by (Used for) Investing Activities |
126.7 |
(58.9) |
30.7 |
(253.0) |
||||||
Financing Activities |
||||||||||
Short-term (repayments) borrowings - net |
(232.0) |
(281.9) |
(88.0) |
15.6 |
||||||
Repayments of long-term debt |
(350.0) |
- |
(800.0) |
(100.0) |
||||||
Quarterly dividends paid |
(80.0) |
(65.1) |
(236.5) |
(189.0) |
||||||
Purchase of treasury shares |
(0.4) |
(4.0) |
(7.8) |
(15.3) |
||||||
Other - net |
0.1 |
0.9 |
2.6 |
10.3 |
||||||
Net Cash Used for Financing Activities |
(662.3) |
(350.1) |
(1,129.7) |
(278.4) |
||||||
Effect of exchange rate changes on cash |
(5.2) |
(12.3) |
(8.9) |
(22.0) |
||||||
Net increase (decrease) in cash and cash equivalents |
1.5 |
6.4 |
14.9 |
(41.8) |
||||||
Cash and cash equivalents at beginning of period |
139.0 |
105.3 |
125.6 |
153.5 |
||||||
Cash and Cash Equivalents at End of Period |
$ 140.5 |
$ 111.7 |
$ 140.5 |
$ 111.7 |
||||||
The J. M. Smucker Company |
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Unaudited Supplemental Schedule |
||||||||||||||||
Three Months Ended January 31, |
Nine Months Ended January 31, |
|||||||||||||||
% of |
% of |
% of |
% of |
|||||||||||||
2016 |
Net Sales |
2015 |
Net Sales |
2016 |
Net Sales |
2015 |
Net Sales |
|||||||||
(Dollars in millions) |
||||||||||||||||
Net sales |
$1,973.9 |
$1,440.0 |
$6,003.6 |
$4,245.6 |
||||||||||||
Selling, distribution, and |
||||||||||||||||
administrative expenses: |
||||||||||||||||
Marketing |
120.7 |
6.1% |
60.1 |
4.2% |
358.5 |
6.0% |
205.1 |
4.8% |
||||||||
Selling |
73.8 |
3.7% |
51.0 |
3.5% |
244.9 |
4.1% |
153.8 |
3.6% |
||||||||
Distribution |
61.3 |
3.1% |
37.9 |
2.6% |
185.3 |
3.1% |
117.6 |
2.8% |
||||||||
General and administrative |
125.3 |
6.3% |
88.3 |
6.1% |
369.8 |
6.2% |
266.6 |
6.3% |
||||||||
Total selling, distribution, and |
||||||||||||||||
administrative expenses |
$ 381.1 |
19.3% |
$ 237.3 |
16.5% |
$1,158.5 |
19.3% |
$ 743.1 |
17.5% |
||||||||
Amounts may not add due to rounding. |
The J. M. Smucker Company |
||||||||
Unaudited Reportable Segments |
||||||||
Three Months Ended January 31, |
Nine Months Ended January 31, |
|||||||
2016 |
2015 |
2016 |
2015 |
|||||
(Dollars in millions) |
||||||||
Net sales: |
||||||||
U.S. Retail Coffee |
$ 575.5 |
$ 571.8 |
$ 1,726.6 |
$ 1,607.5 |
||||
U.S. Retail Consumer Foods |
569.8 |
600.8 |
1,796.0 |
1,847.6 |
||||
U.S. Retail Pet Foods |
570.9 |
- |
1,687.5 |
- |
||||
International and Foodservice |
257.7 |
267.4 |
793.5 |
790.5 |
||||
Total net sales |
$ 1,973.9 |
$ 1,440.0 |
$ 6,003.6 |
$ 4,245.6 |
||||
Segment profit: |
||||||||
U.S. Retail Coffee |
$ 175.9 |
$ 150.5 |
$ 492.7 |
$ 439.3 |
||||
U.S. Retail Consumer Foods |
128.0 |
120.7 |
370.9 |
364.4 |
||||
U.S. Retail Pet Foods |
97.2 |
- |
275.4 |
- |
||||
International and Foodservice |
43.3 |
41.7 |
123.8 |
109.8 |
||||
Total segment profit |
$ 444.4 |
$ 312.9 |
$ 1,262.8 |
$ 913.5 |
||||
Interest expense - net |
(43.6) |
(16.8) |
(130.6) |
(50.4) |
||||
Unallocated derivative gains (losses) |
6.7 |
13.4 |
2.7 |
(0.4) |
||||
Cost of products sold - special project costs |
(3.1) |
(0.4) |
(9.2) |
(1.1) |
||||
Other special project costs |
(41.4) |
(5.9) |
(94.9) |
(17.3) |
||||
Corporate administrative expenses |
(88.3) |
(64.9) |
(262.2) |
(193.2) |
||||
Other income (expense) - net |
0.6 |
0.1 |
(0.9) |
1.7 |
||||
Income before income taxes |
$ 275.3 |
$ 238.4 |
$ 767.7 |
$ 652.8 |
||||
Segment profit margin: |
||||||||
U.S. Retail Coffee |
30.6% |
26.3% |
28.5% |
27.3% |
||||
U.S. Retail Consumer Foods |
22.5% |
20.1% |
20.7% |
19.7% |
||||
U.S. Retail Pet Foods |
17.0% |
- |
16.3% |
- |
||||
International and Foodservice |
16.8% |
15.6% |
15.6% |
13.9% |
||||
Non-GAAP Measures
The Company uses non-GAAP financial measures including: net sales excluding the noncomparable impact of acquisitions, divesture, and foreign currency exchange; non-GAAP gross profit, operating income, income, and income per diluted share; adjusted non-GAAP income and income per diluted share; earnings before interest, taxes, depreciation, and amortization ("EBITDA"); and free cash flow as key measures for purposes of evaluating performance internally. The Company believes that these measures provide useful information to investors because they are the measures used to evaluate performance on a comparable year-over-year basis. Non-GAAP profit measures exclude certain items affecting comparability. These items can significantly affect the year-over-year assessment of operating results and include specific restructuring and merger and integration projects ("special project costs") that are each nonrecurring in nature as well as unallocated gains and losses on commodity and foreign currency exchange derivatives ("unallocated derivative gains and losses"). Adjusted non-GAAP income per diluted share further excludes the noncash impact of amortization. The Company believes this provides investors an additional metric to evaluate performance and the ability to generate cash necessary to achieve its deleveraging objectives. These non-GAAP financial measures are not intended to replace the presentation of financial results in accordance with U.S. generally accepted accounting principles ("GAAP"). Rather, the presentation of these non-GAAP financial measures supplements other metrics used by management to internally evaluate its businesses, and facilitates the comparison of past and present operations and liquidity. These non-GAAP financial measures may not be comparable to similar measures used by other companies and may exclude certain nondiscretionary expenses and cash payments. A reconciliation of certain non-GAAP financial measures to the comparable GAAP financial measure for the current and prior year periods is included in the "Unaudited Non-GAAP Financial Measures" tables. The Company has also provided a reconciliation of non-GAAP financial measures for its full-year outlook. As the amount of unallocated derivative gains and losses varies depending on market conditions and levels of derivative transactions with respect to a particular fiscal year, it is not determinable on a forward-looking basis and no guidance has been provided.
The J. M. Smucker Company |
|||||||||||||||||
Unaudited Non-GAAP Financial Measures |
|||||||||||||||||
Three Months Ended January 31, |
Nine Months Ended January 31, |
||||||||||||||||
Increase |
Increase |
||||||||||||||||
2016 |
2015 |
(Decrease) |
% |
2016 |
2015 |
(Decrease) |
% |
||||||||||
(Dollars in millions) |
|||||||||||||||||
Net sales reconciliation: |
|||||||||||||||||
Net sales |
$ 1,973.9 |
$ 1,440.0 |
$ 533.9 |
37% |
$ 6,003.6 |
$ 4,245.6 |
$ 1,758.0 |
41% |
|||||||||
Big Heart acquisition |
(580.3) |
- |
(580.3) |
(40%) |
(1,718.3) |
- |
(1,718.3) |
(40%) |
|||||||||
Sahale acquisition |
- |
- |
- |
- |
(12.0) |
- |
(12.0) |
- |
|||||||||
Milk divestiture |
- |
(11.0) |
11.0 |
1% |
- |
(11.0) |
11.0 |
- |
|||||||||
Net sales excluding acquisitions |
$ 1,393.6 |
$ 1,429.0 |
$ (35.4) |
(2%) |
$ 4,273.3 |
$ 4,234.6 |
$ 38.7 |
1% |
|||||||||
Foreign currency exchange |
17.5 |
- |
17.5 |
1% |
52.8 |
- |
52.8 |
1% |
|||||||||
Net sales excluding acquisitions, divestiture, |
|||||||||||||||||
and foreign currency exchange |
$ 1,411.1 |
$ 1,429.0 |
$ (17.9) |
(1%) |
$ 4,326.1 |
$ 4,234.6 |
$ 91.5 |
2% |
|||||||||
Amounts may not add due to rounding. |
Net sales excluding acquisitions and divestiture have been adjusted for the noncomparable impact of the Big Heart and Sahale Snacks, Inc. ("Sahale") acquisitions and the U.S. canned milk divestiture. Big Heart was acquired after the comparable prior year period, Sahale was acquired on September 2, 2014, and the U.S. canned milk business was divested on December 31, 2015. |
The J. M. Smucker Company |
||||||||||
Unaudited Non-GAAP Financial Measures |
||||||||||
Three Months Ended January 31, |
Nine Months Ended January 31, |
|||||||||
2016 |
2015 |
2016 |
2015 |
|||||||
(Dollars in millions, except per share data) |
||||||||||
Gross profit reconciliation: |
||||||||||
Gross profit |
$ 763.8 |
$ 522.9 |
$ 2,279.8 |
$ 1,538.1 |
||||||
Unallocated derivative (gains) losses |
(6.7) |
(13.4) |
(2.7) |
0.4 |
||||||
Cost of products sold - special project costs |
3.1 |
0.4 |
9.2 |
1.1 |
||||||
Non-GAAP gross profit |
$ 760.2 |
$ 509.9 |
$ 2,286.3 |
$ 1,539.6 |
||||||
% of net sales |
38.5% |
35.4% |
38.1% |
36.3% |
||||||
Operating income reconciliation: |
||||||||||
Operating income |
$ 318.3 |
$ 255.1 |
$ 899.2 |
$ 701.5 |
||||||
Unallocated derivative (gains) losses |
(6.7) |
(13.4) |
(2.7) |
0.4 |
||||||
Cost of products sold - special project costs |
3.1 |
0.4 |
9.2 |
1.1 |
||||||
Other special project costs |
41.4 |
5.9 |
94.9 |
17.3 |
||||||
Non-GAAP operating income |
$ 356.1 |
$ 248.0 |
$ 1,000.6 |
$ 720.3 |
||||||
% of net sales |
18.0% |
17.2% |
16.7% |
17.0% |
||||||
Net income reconciliation: |
||||||||||
Net income |
$ 185.3 |
$ 160.9 |
$ 497.7 |
$ 435.2 |
||||||
Income tax expense |
90.0 |
77.5 |
270.0 |
217.6 |
||||||
Unallocated derivative (gains) losses |
(6.7) |
(13.4) |
(2.7) |
0.4 |
||||||
Cost of products sold - special project costs |
3.1 |
0.4 |
9.2 |
1.1 |
||||||
Other special project costs |
41.4 |
5.9 |
94.9 |
17.3 |
||||||
Non-GAAP income before income taxes |
$ 313.1 |
$ 231.3 |
$ 869.1 |
$ 671.6 |
||||||
Income tax expense, as adjusted |
102.4 |
75.0 |
305.6 |
223.8 |
||||||
Non-GAAP income |
$ 210.7 |
$ 156.3 |
$ 563.5 |
$ 447.8 |
||||||
Non-GAAP income before income taxes |
$ 313.1 |
$ 231.3 |
$ 869.1 |
$ 671.6 |
||||||
Amortization |
52.2 |
25.2 |
158.2 |
75.3 |
||||||
Adjusted non-GAAP income before income taxes |
$ 365.3 |
$ 256.5 |
$ 1,027.3 |
$ 746.9 |
||||||
Income tax expense, as adjusted |
119.3 |
83.2 |
361.3 |
249.0 |
||||||
Adjusted non-GAAP income |
$ 246.0 |
$ 173.3 |
$ 666.0 |
$ 497.9 |
||||||
Weighted-average common shares outstanding |
119,167,720 |
101,190,896 |
119,138,552 |
101,114,223 |
||||||
Weighted-average participating shares outstanding |
514,642 |
609,929 |
519,586 |
682,668 |
||||||
Total weighted-average shares outstanding |
119,682,362 |
101,800,825 |
119,658,138 |
101,796,891 |
||||||
Dilutive effect of stock options |
52,585 |
675 |
25,355 |
4,132 |
||||||
Total weighted-average shares outstanding - |
119,734,947 |
101,801,500 |
119,683,493 |
101,801,023 |
||||||
Non-GAAP income per common share - |
$ 1.76 |
$ 1.54 |
$ 4.71 |
$ 4.40 |
||||||
Adjusted non-GAAP income per common share - |
$ 2.05 |
$ 1.70 |
$ 5.56 |
$ 4.89 |
||||||
The J. M. Smucker Company |
|||||||||||||||
Unaudited Non-GAAP Financial Measures |
|||||||||||||||
Three Months Ended January 31, |
Nine Months Ended January 31, |
||||||||||||||
2016 |
2015 |
2016 |
2015 |
||||||||||||
(Dollars in millions) |
|||||||||||||||
EBITDA reconciliation: |
|||||||||||||||
Net income |
$ 185.3 |
$ 160.9 |
$ 497.7 |
$ 435.2 |
|||||||||||
Income tax expense |
90.0 |
77.5 |
270.0 |
217.6 |
|||||||||||
Interest expense - net |
43.6 |
16.8 |
130.6 |
50.4 |
|||||||||||
Depreciation |
55.1 |
37.9 |
165.5 |
114.1 |
|||||||||||
Amortization |
52.2 |
25.2 |
158.2 |
75.3 |
|||||||||||
Earnings before interest, taxes, |
$ 426.2 |
$ 318.3 |
$ 1,222.0 |
$ 892.6 |
|||||||||||
% of net sales |
21.6% |
22.1% |
20.4% |
21.0% |
|||||||||||
Free cash flow reconciliation: |
|||||||||||||||
Net cash provided by operating activities |
$ 542.3 |
$ 427.7 |
$ 1,122.8 |
$ 511.6 |
|||||||||||
Additions to property, plant, and equipment |
(43.4) |
(48.4) |
(160.8) |
(162.1) |
|||||||||||
Free cash flow |
$ 498.9 |
$ 379.3 |
$ 962.0 |
$ 349.5 |
|||||||||||
The following tables provide a reconciliation of the Company's 2016 guidance for estimated non-GAAP income per diluted share, adjusted non-GAAP income per diluted share, and free cash flow.
Year Ending April 30, 2016 |
||||||||
Low |
High |
|||||||
Net income per common share - assuming dilution reconciliation: |
||||||||
Net income per common share - assuming dilution |
$ 5.25 |
$ 5.35 |
||||||
Special project costs |
0.59 |
0.59 |
||||||
Non-GAAP income |
$ 5.84 |
$ 5.94 |
||||||
Amortization |
1.15 |
1.15 |
||||||
Adjusted non-GAAP income |
$ 6.99 |
$ 7.09 |
||||||
Year Ending April 30, 2016 |
||||||||
(Dollars in millions) |
||||||||
Free cash flow reconciliation: |
||||||||
Net cash provided by operating activities |
$ 1,215 |
|||||||
Additions to property, plant, and equipment |
(240) |
|||||||
Free cash flow |
$ 975 |
|||||||
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SOURCE The
The J. M. Smucker Company: (330) 682-3000, or Investors: Aaron Broholm, Director, Investor Relations, Media: Maribeth Burns, Vice President, Corporate Communications