Bemis Company Inc. Reports Operating Results (10-Q)
Bemis Company Inc. has a market cap of $3.44 billion; its shares were traded at around $31.52 with a P/E ratio of 15.2 and P/S ratio of 1. The dividend yield of Bemis Company Inc. stocks is 2.9%. Bemis Company Inc. had an annual average earning growth of 2.7% over the past 10 years.BMS is in the portfolios of Bill Frels of Mairs & Power Inc. , John Keeley of Keeley Fund Management, Paul Tudor Jones of The Tudor Group, Chuck Royce of Royce& Associates, Bruce Kovner of Caxton Associates, Manning & Napier Advisors, Inc, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations: Under the terms of an order signed by the U.S. District Court for the District of Columbia on February 25, 2010, a portion of the Food Americas business acquired on March 1, 2010 was sold on July 13, 2010 to Exopack Holding Corp., an affiliate of private investment firm Sun Capital Partners, Inc. The transaction was completed for a cash purchase price, net of selling costs, of $75.2 million. The divested business recorded 2009 net sales of approximately $156 million and manufactures flexible packaging for retail natural cheese and shrink bags for fresh red meat. Operating results associated with this business have been classified as discontinued operations since the Food Americas acquisition.
Net sales for the third quarter ended September 30, 2010, were $1.29 billion compared to $898.9 million in the third quarter of 2009, an increase of 44 percent. We estimate that acquisitions increased net sales by approximately 36 percent during the quarter. The effect of currency translation on net sales was not significant. The remaining 8 percent increase in net sales primarily reflects higher prices and improved unit sales volume from existing and acquired operations.
Net income for the third quarter of 2010 reflects the positive impact of the acquisition of Food Americas on March 1, 2010. Diluted earnings per share from continuing operations for the third quarter of 2010 included a $0.01 charge for acquisition-related costs including legal, severance costs for workforce reductions, and equipment relocation costs. We reported a net loss of $0.01 per share from discontinued operations for the third quarter of 2010. Diluted earnings per share for the third quarter of 2009 included a $0.09 per share charge for acquisition-related legal, accounting and other professional fees. In addition, prior year third quarter diluted earnings per share were reduced by a total of $0.08 related to the impact of the July 2009 issuance of public bonds and common stock. Results for the third quarter of 2009 also included a $0.02 per share gain on the sale of property in Brazil.
For the third quarter of 2010, other operating income, net, included $3.5 million of fiscal incentive income, a decrease of $1.1 million compared to the third quarter of 2009. Fiscal incentives are associated with certain Brazilian operations and are included in flexible packaging segment operating profit. In 2010, other operating income also included $1.2 million of transaction costs primarily associated with the acquisition of the Food Americas business. Food Americas related transaction costs totaled $16.0 million for the same period of 2009.
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