How do you like these apples? Book value up to 9.80/share:
Imperial Sugar Company Announces FY2002 Results
Monday December 30, 5:16 pm ET
SUGAR LAND, Texas--(BUSINESS WIRE)--Dec. 30, 2002--Imperial Sugar Company (OTCBB:IPSU - News) reported today financial results for its fiscal year ended Sept. 30, 2002. Net income was $16.4 million or $1.64 per share, including certain restructuring expenses of $7.1 million before tax and a pre-tax gain on the sale of assets of $26.5 million. Income figures for the fiscal year ended Sept. 30, 2001 are not comparable because of the Company's emergence from Chapter 11 on Aug. 29, 2001. Net sales for the 2002 fiscal year were approximately $1.30 billion, compared to net sales in the 2001 fiscal year of approximately $1.55 billion.
ADVERTISEMENT
Results during the 2002 fiscal year were impacted by the sale of certain business units, including its King Packaging operation in December 2001, its Michigan Sugar subsidiary in February 2002 and its beet factory in Worland, Wyo., in June 2002, as well as the closure of two Northern California beet factories in fiscal 2001. Also, included in fiscal 2002 results are $5.5 million of consulting and personnel-related costs incurred in connection with the rationalization of the business and the restructuring of the capital structure, as well as $1.6 million of trailing bankruptcy costs.
Results for fiscal 2002 were aided by improved margins on sugar products as refined sugar prices increased more than raw cane sugar costs during the year while sugar beet costs increased proportionately with refined prices. Additionally, reductions in manufacturing costs added to margin improvements. SG&A expenses declined $6.5 million in fiscal 2002, principally as the result of the sale of certain business units, as well as ongoing cost savings initiatives.
Net income for the fourth quarter ended Sept. 30, 2002 was $176,000 or $0.01 per share on net sales of $349.3 million. Included in these results were certain restructuring expenses of $2.5 million and a gain on the sale of assets of $4.7 million. Additionally, the quarterly results included a non-cash income tax charge of $3.9 million, resulting from a change in the estimate of the effective annual tax rate due to the finalization of tax gains on the sale of subsidiaries in earlier quarters. Income figures for the fourth quarter of fiscal 2001 are not comparable because of the Company's emergence from Chapter 11 on Aug. 29, 2001. Net sales for the fourth quarter ended Sept. 30, 2001 were $379.3 million.
"Our 2002 fiscal year was one of transitioning from the 2001 bankruptcy, reducing our leverage and creating greater liquidity, and beginning the process of building profitability to acceptable levels," said Robert A. Peiser, Imperial Sugar's president and CEO. "All of our actions are dedicated towards these objectives and I am very pleased with our progress to date.
"Likewise, the 2002 fiscal year was an important year in the sugar industry, as oversupply created by past overproduction worked its way through the markets, returning prices and margins to more traditional levels" said Peiser. "We anticipate that recent changes in the U.S. Farm Program should help maintain balanced markets."
About Imperial Sugar
The Imperial Sugar Company is one of the largest processors and marketers of refined sugar in the United States and a major distributor to the foodservice market. Imperial Sugar is a name recognized and trusted in the food industry for more than 150 years, as the company's history dates back to the mid-1800s. With packaging and refining facilities across the nation, the Company markets products nationally under the Imperial®, Dixie Crystals®, Spreckels®, Pioneer®, Holly® and Wholesome Sweeteners(TM) brands. Additional information about Imperial Sugar may be found on its Web site at www.imperialsugar.com.
Statements regarding future market prices and margins, future operating results, sugarbeet acreage, future operating efficiencies, future government and legislative action, cost savings, the future status of financing arrangements, liquidity and ability to finance our operations, proposed sales of assets or businesses and other statements which are not historical facts contained in this release are forward-looking statements that involve certain risks, uncertainties and assumptions. These include, but are not limited to, market factors, energy costs, the effect of weather and economic conditions, farm and trade policy, the ability of the Company to realize planned cost savings, the available supply of sugar, available quantity and quality of sugarbeets, court decisions and actions, the results of negotiations, actual or threatened acts of terrorism or armed hostilities, legislative and administrative actions and other factors detailed in the Company's Securities and Exchange Commission filings. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated.
IMPERIAL SUGAR COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(In Thousands, Except Per Share Data)
Twelve Months Ended Three Months Ended
September 30, September 30,
2002 2002
-------------------- -------------------
Net Sales $1,297,831 $349,307
Cost of Sales 1,196,545 320,848
-------------------- -------------------
Gross Margin 101,286 28,459
Selling, General &
Administrative Costs 64,138 17,320
Discount on Receivables Sold 3,629 784
Depreciation & Amortization 18,705 4,315
-------------------- -------------------
Operating Income 14,814 6,040
Interest Expense (22,288) (6,679)
Gain on Sale of Assets 26,523 4,737
Other 2,684 1,394
-------------------- -------------------
Income Before Income Taxes 21,733 5,492
Income Taxes 5,316 5,316
-------------------- -------------------
Net Income (Loss) $16,417 $176
==================== ===================
Basic and Diluted Earnings (Loss)
Per Share of Common Stock: $1.64 $0.01
Weighted Average Shares
Outstanding 10,000,000 10,000,000
Note: Fiscal 2002 results are not comparable to the prior year due
to the Company's emerging from bankruptcy in August 2001.
IMPERIAL SUGAR COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands of Dollars)
September 30, September 30,
2002 2001
----------------- ------------------
Current Assets $223,701 $250,587
Plant Property & Equipment 206,719 275,453
Other Assets 32,945 29,743
----------------- ------------------
Total $463,365 $555,783
================= ==================
Current Liabilities $139,928 $162,934
Long-term Debt 148,878 226,779
Other Liabilities 76,299 86,413
Shareholders' Equity 98,260 79,657
----------------- ------------------
Total $463,365 $555,783
================= ==================
--------------------------------------------------------------------------------
Contact:
Pierpont Communications, Houston
Sally Ramsay, 713/627-2223, Ext. 102
sramsay@piercom.com
--------------------------------------------------------------------------------
Source: Imperial Sugar Company |
