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Section 1: 8-K (8-K)

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

 

Washington, D. C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15 (d) of

the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported)   November 21, 2017

 

HORMEL FOODS CORPORATION

(Exact name of registrant as specified in its charter)

 

Delaware

1-2402

41-0319970

(State or Other
Jurisdiction of
Incorporation)

(Commission File
Number)

(IRS Employer
Identification
Number)

 

1 Hormel Place

Austin, MN  55912

(Address of Principal Executive Office)

 

Registrant’s telephone number, including area code:  (507) 437-5611

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

[  ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

[  ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

[  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

[  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company   [  ]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

 



 

Section 2 – FINANCIAL INFORMATION

 

Item 2.02 Results of Operations and Financial Condition

 

On November 21, 2017, the Company issued an earnings release announcing its financial results for the fourth quarter ended October 29, 2017.  A copy of the earnings release is furnished as Exhibit 99 to this Form 8-K and is incorporated herein by reference.

 

 

Section 9 – FINANCIAL STATEMENTS AND EXHIBITS

 

Item 9.01 Financial Statements and Exhibits

 

(d)    Exhibits furnished pursuant to Item 2.02

 

99

Earnings release issued November 21, 2017

 

 

 

 

 

 

 

SIGNATURES

 

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

HORMEL FOODS CORPORATION

 

 

(Registrant)

 

 

 

Dated: November 21, 2017

By

/s/ JAMES P. SNEE

 

 

JAMES P. SNEE

 

 

President and

 

 

Chief Executive Officer

 

 

 

 

 

 

 

 

 

Dated: November 21, 2017

By

/s/ JAMES N. SHEEHAN

 

 

JAMES N. SHEEHAN

 

 

Senior Vice President and

 

 

Chief Financial Officer

 

2


(Back To Top)

Section 2: EX-99 (EX-99)

 

 

 

Exhibit 99

INVESTOR CONTACT:

Nathan Annis

(507) 437-5248

ir@hormel.com

 

MEDIA CONTACT:        

Wendy Watkins       

(507) 437-5345        

media@hormel.com      

 

HORMEL FOODS ANNOUNCES FULL YEAR AND FOURTH QUARTER RESULTS AND PROVIDES GUIDANCE FOR FISCAL 2018

 

The company continues to make progress towards its key strategic initiatives

 

AUSTIN, Minn. (November 21, 2017) – Hormel Foods Corporation (NYSE: HRL) today reported results for the fourth quarter of fiscal year 2017.

 

EXECUTIVE SUMMARY – FISCAL 2017

 

·                 Three of five segments delivered record segment profit

·                 Volume down 8%; Organic volume1 up 2%

·                 Sales of $9.2 billion, down 4%; Organic net sales1 up 3%

·                 Diluted earnings per share of $1.57, down 4% from 2016 EPS of $1.64

·                 Second most profitable year in the company’s history

·                 Record operating margin of 14.0%

·                 Record cash flow from operations of $1.01 billion, up 2%

 

EXECUTIVE SUMMARY – FOURTH QUARTER

 

·                 Volume down 10%; Organic volume up 2%

·                 Sales of $2.5 billion, down 5%; Organic net sales up 5%

·                 Diluted EPS of $0.41, down 9% from 2016 EPS of $0.45

·                 Operating margin of 13.2%

·                 Record cash flow from operations of $499 million, up 34%

 

FISCAL 2018 OUTLOOK

 

“Fiscal 2018 represents a return to growth with the addition of three strategic acquisitions and contributions from innovative new items such as HORMEL® BACON 1TM fully cooked bacon and SKIPPY® PB BITES,” said Jim Snee, chairman of the board, president and chief executive officer. “The earnings power we are creating with acquisitions, major capital investments in value-added capacity, a supply chain reorganization, the union of the Grocery Products and Specialty Products segments, and an intense focus on strategic cost management sets us up for renewed earnings growth in 2018 and beyond.”

 

“We expect Refrigerated Foods, Grocery Products, and International to drive growth as Jennie-O Turkey Store continues to navigate difficult industry conditions,” Snee said.

 

Net Sales Guidance (in billions)

$9.40 - $9.80

Earnings per Share Guidance

$1.60 - $1.70

 

Fiscal 2018 net sales and earnings per share guidance exclude the pending acquisition of Columbus Craft Meats, which is expected to close in December. Total sales are approximately $300 million and the transaction is expected to be 2-3 cents per share accretive to earnings in fiscal 2018.

 

1



 

DIVIDENDS

 

“This morning we announced a 10 percent increase to our annual dividend, making the new dividend $0.75 per share,” Snee said. “This is the 52nd consecutive year in which we’ve increased our dividend.”

 

Effective November 15, 2017, the company paid its 357th consecutive quarterly dividend at the annual rate of $0.68 per share.

 

COMMENTARY – FOURTH QUARTER

 

“We delivered a quarter of strong organic volume and sales growth despite the volatile commodity markets,” Snee said. “I am proud of our team’s ability to navigate the many unique market conditions we faced while staying focused on our key strategic initiatives.”

 

SEGMENT HIGHLIGHTS – FOURTH QUARTER

 

Grocery Products

 

·                 Volume down 4%; Organic volume up 4%

·                 Net sales down 1%; Organic net sales up 7%

·                 Segment profit up 7%

 

WHOLLY GUACAMOLE® dips, SPAM® family of products, and HERDEZ® salsas all showed strong sales growth. SKIPPY® peanut butter and HORMEL® chili experienced volume declines as price increases took effect during the quarter. Segment profit increased as reductions in manufacturing and SG&A expenses more than offset higher input costs for pork, beef, and avocados.

 

Refrigerated Foods

 

·                 Volume down 17%; Organic volume up 1%

·                 Net sales down 6%; Organic net sales up 8%

·                 Segment profit down 13%

 

Volume and sales declines were related to the divestiture of the Farmer John business, which were partially offset by the acquisition of Fontanini Italian Meats and Sausages. Retail items such as HORMEL® NATURAL CHOICE® products and foodservice items such as HORMEL® BACON 1TM fully cooked bacon and HORMEL® pepperoni contributed to the organic sales growth. Segment profit declined due to the divestiture of the Farmer John business and higher input costs.

 

Jennie-O Turkey Store

 

·                 Volume down 7%; Organic volume flat

·                 Net sales down 10%; Organic net sales down 4%

·                 Segment profit down 24%

 

Decreases in sales and earnings were primarily due to the continued oversupply in the turkey industry, leading to lower turkey commodity prices. JENNIE-O® OVEN READY® products and marinated tenderloins delivered excellent sales growth.

 

2



 

International & Other

 

·                 Volume up 7%; Organic volume up 5%

·                 Net sales up 10%; Organic net sales up 12%

·                 Segment profit up 18%

 

International sales increased due to the inclusion of sales of CERATTI® branded products, continued growth of SKIPPY® peanut butter, and strong exports of SPAM® luncheon meat. Earnings growth was driven by improved performance in China and increased exports.

 

Specialty Foods

 

·                 Volume down 8%; Organic volume down 1%

·                 Net sales down 9%; Organic net sales down 2%

·                 Segment profit down 21%

 

Sales and earnings declines were mainly related to lower results from MUSCLE MILK® ready-to-drink protein products in the convenience store channel.

 

CONFERENCE CALL

 

A conference call will be webcast at 8:30 a.m. CT on Tuesday, November 21, 2017. Access is available at www.hormelfoods.com. The call will also be available via telephone by dialing 888-394-8218 and providing the access code 5906948. An audio replay is available by going to www.hormelfoods.com and clicking on Investors. The webcast replay will be available at 11:30 a.m. CT, Tuesday, November 21, 2017, 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 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®, 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 ninth 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 32 - 39 in the company’s Form 10-Q for the quarter ended July 30, 2017, which can be accessed at www.hormelfoods.com under “Investors-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.

 

3



 

Organic net sales and organic volume are defined as net sales and volume excluding the impact of acquisitions, divestitures and the impact of the 53rd reporting week in 2016. Organic net sales and organic volume exclude the impacts of the acquisition of Justin’s (May 2016) in Grocery Products, the acquisition of Fontanini Italian Meats and Sausages (August 2017) and the divestiture of Farmer John (January 2017) in Refrigerated foods, the divestiture of Diamond Crystal Brands (May 2016) from Specialty Products, 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 fourth quarter and the full year of fiscal 2016 and fiscal 2017.

 

4th Quarter

 

 

 

 

 

 

 

 

 

 

Volume (lbs.)

FY 2017

FY 2016

 

(in thousands)

Reported
(GAAP)

Acquisitions

Divestitures

Organic
(Non-GAAP)

Reported
(GAAP)

Acquisitions

Divestitures

53rd
Week

Organic
(Non-GAAP)

Organic
% change

Grocery Products

249,141

-

-

249,141

258,386

-

-

(18,456)

239,930

3.8%

Refrigerated Foods

547,196

(16,727)

-

530,469

658,506

-

(95,246)

(40,233)

523,027

1.4%

Jennie-O Turkey Store

270,175

-

-

270,175

291,587

-

-

(20,828)

270,759

(0.2%)

Specialty Foods

117,344

-

-

117,344

127,053

-

-

(9,075)

117,978

(0.5%)

International & Other

91,414

(7,884)

-

83,530

85,454

-

-

(6,104)

79,350

5.3%

  Total Volume

1,275,270

(24,611)

-

1,250,659

1,420,986

-

(95,246)

(94,696)

1,231,044

1.6%

 

 

 

 

Net Sales

FY 2017

FY 2016

 

(in thousands)

Reported
(GAAP)

Acquisitions

Divestitures

Organic
(Non-GAAP)

Reported
(GAAP)

Acquisitions

Divestitures

53rd
Week

Organic
(Non-GAAP)

Organic
% change

Grocery Products

$

489,169

$

-

$

-

$

489,169

  $

491,724

$

-

$

-

$

(35,123)

$

456,601

7.1%

Refrigerated Foods

1,166,661

(44,450)

-

1,122,211

1,237,276

-

(123,256)

(79,573)

1,034,447

8.5%

Jennie-O Turkey Store

484,856

-

-

484,856

541,409

-

-

(38,672)

502,737

(3.6%)

Specialty Foods

196,792

-

-

196,792

216,674

-

-

(15,477)

201,197

(2.2%)

International & Other

155,130

(9,152)

-

145,978

140,858

-

-

(10,061)

130,797

11.6%

  Total Net Sales

$

2,492,608

$

(53,602)

$

-

$

2,439,006

  $

2,627,941

$

-

$

(123,256)

$

(178,906)

$

2,325,779

4.9%

 

 

 

 

Full Year

 

 

 

 

 

 

 

 

 

 

Volume (lbs.)

FY 2017

FY 2016

 

(in thousands)

Reported
(GAAP)

Acquisitions

Divestitures

Organic
(Non-GAAP)

Reported
(GAAP)

Acquisitions

Divestitures

53rd
Week

Organic
(Non-GAAP)

Organic
% change

Grocery Products

916,643

(6,430)

-

910,213

906,202

-

-

(18,456)

887,746

2.5%

Refrigerated Foods

2,180,407

(16,727)

(80,454)

2,083,226

2,493,358

-

(375,017)

(40,233)

2,078,108

0.2%

Jennie-O Turkey Store

890,518

-

-

890,518

902,073

-

-

(20,828)

881,245

1.1%

Specialty Foods

458,022

-

-

458,022

583,267

-

(133,733)

(9,075)

440,459

4.0%

International & Other

324,895

(7,884)

-

317,011

307,127

-

-

(6,104)

301,023

5.3%

  Total Volume

4,770,485

(31,041)

(80,454)

4,658,990

5,192,027

-

(508,750)

(94,696)

4,588,581

1.5%

 

 

 

 

Net Sales

FY 2017

FY 2016

 

(in thousands)

Reported
(GAAP)

Acquisitions

Divestitures

Organic
(Non-GAAP)

Reported
(GAAP)

Acquisitions

Divestitures

53rd
Week

Organic
(Non-GAAP)

Organic
% change

Grocery Products

$

1,761,105

$

(43,146)

$

-

$

1,717,959

  $

1,684,756

$

-

$

-

$

(35,123)

$

1,649,633

4.1%

Refrigerated Foods

4,403,732

(44,450)

(100,231)

4,259,051

4,647,173

-

(493,618)

(79,573)

4,073,982

4.5%

Jennie-O Turkey Store

1,663,160

-

-

1,663,160

1,740,968

-

-

(38,672)

1,702,296

(2.3%)

Specialty Foods

794,508

-

-

794,508

939,134

-

(140,084)

(15,477)

783,573

1.4%

International & Other

545,014

(9,152)

-

535,862

511,193

-

-

(10,061)

501,132

6.9%

  Total Net Sales

$

9,167,519

$

(96,748)

$

(100,231)

$

8,970,540

  $

9,523,224

$

-

$

(633,702)

$

(178,906)

$

8,710,616

3.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statements Follow

 

4



 

HORMEL FOODS CORPORATION

SEGMENT DATA

(Unaudited) (In thousands)

 

 

 

 

FOURTH QUARTER

 

 

 

 

 

13 WEEKS ENDED

 

14 WEEKS ENDED

 

 

 

 

 

 

 

 

 

 

 

NET SALES

 

October 29, 2017

 

October 30, 2016

 

% Change

 

Grocery Products

 

 

$

489,169

 

 

$

491,724

 

 

(0.5)

 

Refrigerated Foods

 

 

1,166,661

 

 

1,237,276

 

 

(5.7)

 

Jennie-O Turkey Store

 

 

484,856

 

 

541,409

 

 

(10.4)

 

Specialty Foods

 

 

196,792

 

 

216,674

 

 

(9.2)

 

International & Other

 

 

155,130

 

 

140,858

 

 

10.1

 

Total

 

 

$

2,492,608

 

 

$

2,627,941

 

 

(5.1)

 

 

 

 

 

 

 

 

 

OPERATING PROFIT

 

 

 

 

 

 

 

Grocery Products

 

 

$

88,915

 

 

$

82,734

 

 

7.5

 

Refrigerated Foods

 

 

145,613

 

 

168,040

 

 

(13.3)

 

Jennie-O Turkey Store

 

 

70,370

 

 

92,299

 

 

(23.8)

 

Specialty Foods

 

 

15,933

 

 

20,182

 

 

(21.1)

 

International & Other

 

 

23,113

 

 

19,570

 

 

18.1

 

Total segment operating profit

 

 

343,944

 

 

382,825

 

 

(10.2)

 

Net interest and investment (income) expense

 

 

(639)

 

 

1,017

 

 

(162.8)

 

General corporate expense

 

 

14,783

 

 

17,325

 

 

(14.7)

 

Less: Noncontrolling interest

 

 

209

 

 

250

 

 

(16.4)

 

Earnings before income taxes

 

 

$

330,009

 

 

$

364,733

 

 

(9.5)

 

 

 

 

YEAR TO DATE

 

 

 

 

 

52 WEEKS ENDED

 

53 WEEKS ENDED

 

 

 

 

 

 

 

 

 

 

 

NET SALES

 

October 29, 2017

 

October 30, 2016

 

% Change

 

Grocery Products

 

 

$

1,761,105

 

 

$

1,684,756

 

 

4.5

 

Refrigerated Foods

 

 

4,403,732

 

 

4,647,173

 

 

(5.2)

 

Jennie-O Turkey Store

 

 

1,663,160

 

 

1,740,968

 

 

(4.5)

 

Specialty Foods

 

 

794,508

 

 

939,134

 

 

(15.4)

 

International & Other

 

 

545,014

 

 

511,193

 

 

6.6

 

Total

 

 

$

9,167,519

 

 

$

9,523,224

 

 

(3.7)

 

 

 

 

 

 

 

 

 

OPERATING PROFIT

 

 

 

 

 

 

 

Grocery Products

 

 

$

290,809

 

 

$

268,461

 

 

8.3

 

Refrigerated Foods

 

 

587,929

 

 

585,652

 

 

0.4

 

Jennie-O Turkey Store

 

 

247,322

 

 

329,427

 

 

(24.9)

 

Specialty Foods

 

 

96,828

 

 

110,917

 

 

(12.7)

 

International & Other

 

 

85,304

 

 

78,409

 

 

8.8

 

Total segment operating profit

 

 

1,308,192

 

 

1,372,866

 

 

(4.7)

 

Net interest and investment expense (income)

 

 

1,824

 

 

6,680

 

 

(72.7)

 

General corporate expense

 

 

28,091

 

 

49,436

 

 

(43.2)

 

Less: Noncontrolling interest

 

 

368

 

 

465

 

 

(20.9)

 

Earnings before income taxes

 

 

$

1,278,645

 

 

$

1,317,215

 

 

(2.9)

 

 

5



 

HORMEL FOODS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited) (In thousands, except per share amounts)

 

 

 

Thirteen
Weeks Ended

 

Fourteen
Weeks Ended

 

Fifty-Two
Weeks Ended

 

Fifty-Three
Weeks Ended

 

 

 

October 29,
2017

 

October 30,
2016

 

October 29,
2017

 

October 30,
2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

 

$

2,492,608

 

 

$

2,627,941

 

 

$

9,167,519

 

 

$

9,523,224

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of products sold

 

 

1,981,054

 

 

2,029,421

 

 

7,164,356

 

 

7,365,049

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

 

511,554

 

 

598,520

 

 

2,003,163

 

 

2,158,175

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

194,218

 

 

244,006

 

 

762,104

 

 

871,974

 

Goodwill/intangible impairment

 

 

180

 

 

 

 

180

 

 

991

 

Equity in earnings of affiliates

 

 

12,214

 

 

11,236

 

 

39,590

 

 

38,685

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

329,370

 

 

365,750

 

 

1,280,469

 

 

1,323,895

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income & expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest & investment income

 

 

4,216

 

 

2,271

 

 

10,859

 

 

6,191

 

Interest expense

 

 

(3,577)

 

 

(3,288)

 

 

(12,683)

 

 

(12,871)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS BEFORE INCOME TAXES

 

 

330,009

 

 

364,733

 

 

1,278,645

 

 

1,317,215

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

111,646

 

 

120,543

 

 

431,542

 

 

426,698

 

(effective tax rate)

 

 

33.83%

 

 

33.05%

 

 

33.75%

 

 

32.39%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET EARNINGS

 

 

218,363

 

 

244,190

 

 

847,103

 

 

890,517

 

Less: net earnings attributable to noncontrolling interest

 

 

209

 

 

250

 

 

368

 

 

465

 

NET EARNINGS ATTRIBUTABLE TO HORMEL FOODS CORPORATION

 

 

$

218,154

 

 

$

243,940

 

 

$

846,735

 

 

$

890,052

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET EARNINGS PER SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

$

0.41

 

 

$

0.46

 

 

$

1.60

 

 

$

1.68

 

Diluted

 

 

$

0.41

 

 

$

0.45

 

 

$

1.57

 

 

$

1.64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WEIGHTED AVG. SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

527,990

 

 

528,778

 

 

528,363

 

 

529,290

 

Diluted

 

 

537,952

 

 

541,312

 

 

539,116

 

 

542,473

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIVIDENDS DECLARED PER SHARE

 

 

$

0.170

 

 

$

0.145

 

 

$

0.68

 

 

$

0.58

 

 

6



 

HORMEL FOODS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Unaudited) (In thousands)

 

 

 

October 29, 2017

 

October 30, 2016

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Cash and cash equivalents

 

 

$

444,122

 

 

 

$

415,143

 

 

Accounts receivable

 

 

 

618,351

 

 

 

 

591,310

 

 

Inventories

 

 

 

921,022

 

 

 

 

985,683

 

 

Income taxes receivable

 

 

 

22,346

 

 

 

 

18,282

 

 

Prepaid expenses

 

 

 

16,144

 

 

 

 

13,775

 

 

Other current assets

 

 

 

4,538

 

 

 

 

5,719

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS

 

 

 

2,026,523

 

 

 

 

2,029,912

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DEFERRED INCOME TAXES

 

 

 

-

 

 

 

 

6,223

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTANGIBLES

 

 

 

3,146,827

 

 

 

 

2,737,755

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER ASSETS

 

 

 

599,307

 

 

 

 

490,728

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROPERTY, PLANT & EQUIPMENT, NET

 

 

 

1,203,251

 

 

 

 

1,105,449

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

 

$

6,975,908

 

 

 

$

6,370,067

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ INVESTMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

$

1,058,212

 

 

 

 

$1,053,196

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LONG-TERM DEBT – LESS CURRENT MATURITIES

 

 

 

250,000

 

 

 

 

250,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DEFERRED INCOME TAXES

 

 

 

98,410

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER LONG-TERM LIABILITIES

 

 

 

629,589

 

 

 

 

615,465

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS’ INVESTMENT

 

 

 

4,939,697

 

 

 

 

4,451,406

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIAB. & SHAREHOLDERS’ INVESTMENT

 

 

$

6,975,908

 

 

 

$

6,370,067

 

 

 

7



 

HORMEL FOODS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited) (In thousands)

 

 

 

Fifty-Two
Weeks Ended
October 29, 2017

 

Fifty-Three
Weeks Ended
October 30, 2016

 

 

 

 

 

 

 

OPERATING ACTIVITIES

 

 

 

 

 

Net earnings

 

 

$

847,103

 

 

 

$

890,517

 

 

Depreciation and amortization of intangibles

 

 

 

130,977

 

 

 

 

131,968

 

 

Goodwill/intangible impairment

 

 

 

180

 

 

 

 

991

 

 

Decrease (increase) in working capital

 

 

 

303

 

 

 

 

(51,425)

 

 

Other

 

 

 

31,633

 

 

 

 

20,797

 

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

 

 

1,010,196

 

 

 

 

992,848

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sale of business

 

 

 

135,944

 

 

 

 

110,149

 

 

Acquisitions of businesses/intangibles

 

 

 

(520,463)

 

 

 

 

(280,889)

 

 

Net purchases of property/equipment

 

 

 

(217,276)

 

 

 

 

(249,297)

 

 

Decrease (increase) in investments, equity in affiliates, and other assets

 

 

 

8,792

 

 

 

 

11,078

 

 

NET CASH USED IN INVESTING ACTIVITIES

 

 

 

(593,003)

 

 

 

 

(408,959)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

Net (payments) proceeds from short-term debt

 

 

 

-

 

 

 

 

(185,000)

 

 

Dividends paid on common stock

 

 

 

(346,010)

 

 

 

 

(296,493)

 

 

Share repurchase

 

 

 

(94,487)

 

 

 

 

(87,885)

 

 

Other

 

 

 

51,239

 

 

 

 

59,732

 

 

NET CASH USED IN FINANCING ACTIVITIES

 

 

 

(389,258)

 

 

 

 

(509,646)

 

 

Effect of exchange rate changes on cash

 

 

 

1,044

 

 

 

 

(6,339)

 

 

INCREASE IN CASH AND CASH EQUIVALENTS

 

 

 

28,979

 

 

 

 

67,904

 

 

Cash and cash equivalents at beginning of year

 

 

 

415,143

 

 

 

 

347,239

 

 

CASH AND CASH EQUIVALENTS AT END OF YEAR

 

 

$

444,122

 

 

 

$

415,143

 

 

 

8


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