Tootsie Roll Industries Inc. (TR) filed Quarterly Report for the period ended 2009-04-04.
Tootsie Roll Industries Inc. and its consolidated subsidiaries are engaged in the manufacture and sale of candy. The company's products are marketed in a variety of packages designed to be suitable for display and sale in different types of retail outlets. The company's customers include wholesale distributors of candy and groceries supermarkets variety stores chain grocers drug chains discount chains cooperative grocery associations warehouse and membership club stores vending machine operators and fund-raising charitable organizations. Tootsie Roll Industries Inc. has a market cap of $1.3 billion; its shares were traded at around $23.69 with a P/E ratio of 30.1 and P/S ratio of 2.7. The dividend yield of Tootsie Roll Industries Inc. stocks is 1.4%.
Highlight of Business Operations:
First quarter 2009 net product sales were $94,054 compared to $90,341 in first
quarter 2008, an increase of $3,713 or 4.1%. First quarter sales benefited from
successful marketing programs and selective price increases. The first quarter
2009 sales increase also reflects the timing of the comparative quarter end
reporting periods which resulted in three additional shipping days in first
quarter 2009 compared to first quarter 2008. The Company operates in thirteen
week quarterly periods which must be adjusted from time to time in order to
coincide with the Company's calendar year end reporting. Although consolidated
net sales increased in first quarter 2009, such sales reflect declines in sales
outside of the United States, including the adverse effects of certain foreign
sales, primarily in Mexico, that are translated into a stronger U.S. dollar
currency.
Other expense, net was $(380) in first quarter 2009 compared to $(1,240) in
first quarter 2008, a net decrease of $860. Other expense, net in 2009 and 2008
includes $327 and $1,970, respectively, of investment losses on trading
securities relating to deferred compensation plans; the aforementioned losses
resulted in a corresponding decrease in deferred compensation expense included
in aggregate cost of products sold and selling, marketing and administrative
expenses in the corresponding first quarter periods.
First quarter 2009 net earnings were $8,320 compared to first quarter 2008 net
earnings of $6,453. First quarter 2009 earnings per share were $0.15 compared
to $0.11 in first quarter 2008, an increase of $0.04 per share or 36%. In
addition to the factors discussed above, earnings per share benefited from fewer
shares outstanding as a result of the Company's share repurchases during the
trailing twelve months, including first quarter 2009.
The Company's current ratio (current assets divided by current liabilities) was
3.4 to 1 as of the end of first quarter 2009 as compared to 2.8 to 1 as of the
end of first quarter 2008 and 3.2 to 1 as of the end of fourth quarter 2008.
Net working capital was $124,384 as of the end of first quarter 2009 as compared
to $109,580 and $128,727 as of the end of first quarter 2008 and fourth quarter
2008, respectively. The aforementioned net working capital amounts are
principally reflected in aggregate cash and cash equivalents and short-term
investments which totaled $70,031 as of the end of first quarter 2009 compared
to $59,212 and $86,871, as of the end of first quarter 2008 and fourth quarter
2008, respectively. In addition, long term investments, principally debt
securities comprising municipal bonds, were $50,280 (including $8,410 of
Jefferson County auction rate securities (ARS) discussed below) as of the end of
first quarter 2009, as compared to $75,011 and $49,809 as of the end of first
quarter 2008 and fourth quarter 2008, respectively. Aggregate cash and cash
equivalents and short and long-term investments were $120,311, $134,223,
$136,680, for first quarter ended 2009 and 2008, and fourth quarter 2008,
respectively. Investments in municipal bonds and other debt securities that
matured during first quarters 2009 and 2008 were generally used to purchase the
Company's common stock or were replaced with debt securities of similar
maturities.
Net cash provided by operating activities was $3,481 for first quarter 2009, as
compared to $3,828 for first quarter 2008. The aforementioned change in net
cash provided by operating activities principally reflects the $1,867 increase
in net earnings for the comparative periods, and the timing of payments and cash
flows relating to inventories, income taxes payable and deferred, and accounts
payable and accrued liabilities, including the timing of the quarterly dividend
Cash dividends declared in first quarter 2009 and 2008 were $4,391 and $4,296,
respectively. However, dividends paid in cash were $8,792 and $4,339, in first
quarter 2009 and 2008, respectively. The difference between dividends declared
and dividends paid is due to the timing of the payment of the first quarter
dividends in the quarterly periods.
TR is in the portfolios of John Keeley of Keeley Fund Management.
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