Fresh Del Monte Produce Inc. (FDP, Financial) filed Quarterly Report for the period ended 2009-06-26.
Fresh Del Monte Produce Inc. is a world leader in the production distribution and marketing of fresh produce. The products are marketed throughout the world under the DEL MONTE brand name and is a widely recognized symbol of product quality and reliability. The major products are bananas pineapples deciduous fruit and melons. The deciduous fruit the company sells includes primarily grapes plums nectarines peaches apricots cherries apples pears and citrus. Fresh Del Monte Produce Inc. has a market cap of $1.39 billion; its shares were traded at around $21.88 with a P/E ratio of 9.5 and P/S ratio of 0.3.
As of June 26, 2009, we had $335.1 million of long-term debt and capital lease obligations, including the current portion, consisting of $315.8 million outstanding under the Credit Facility (including the Term Loan), $8.3 million of capital lease obligations and $11.0 million of other long-term debt.
On July 17, 2009, we refinanced and replaced the Credit Facility (including the Term Loan) with a $500 million senior-secured revolving credit facility (the New Credit Facility) with Rabobank Nederland, New York Branch, as administrative agent and lead arranger. The New Credit Facility has a 3.5 year term, with a scheduled maturity date of January 17, 2013. The New Credit Facility includes a swing line facility and a letter of credit facility with a $100 million sublimit. Borrowings under the New Credit Facility will bear interest at a spread over LIBOR that varies with our leverage ratio. The current margin for LIBOR advances is 3.0%. The New Credit Facility is collateralized directly or indirectly by substantially all of our assets and is guaranteed by certain of our subsidiaries. At July 17, 2009, the New Credit Facility had $333.4 million outstanding, comprised of $304.3 million in loans and $29.1 million applied to the letter of credit facility, and unused commitments of $166.6 million are available for working capital needs, general corporate purposes and other uses. The New Credit Facility requires us to be in compliance with financial and other covenants, including limitations on capital expenditures, the amount and types of liens and indebtedness, material asset sales and mergers.
Cost of Product Sold. Cost of products sold was $887.4 million for the second quarter of 2009 compared with $872.6 million for the second quarter of 2008, an increase of $14.8 million. This increase in cost of products sold was primarily attributable to a charge of $17.1 million related to the write off of growing crop inventory as a result of our decision to discontinue pineapple planting in Brazil, combined with higher banana fruit production and procurement costs, partially offset by lower ocean freight rates and distribution costs that resulted from lower fuel prices.
Gross Profit. Gross profit was $91.0 million for the second quarter of 2009 compared with $99.6 million for the second quarter of 2008, a decrease of $8.6 million. The decrease in gross profit was primarily attributable to lower gross profit on other fresh produce of $13.6 million, lower gross profit on other products and services of $2.3 million, partially offset by higher gross profit on bananas of $5.7 million and higher gross profit on prepared food of $1.6 million.
Gross Profit. Gross profit was $174.8 million for the first six months of 2009 compared with $196.5 million for the first six months of 2008, a decrease of $21.7 million. The decrease in gross profit was attributable to lower gross profit on other fresh produce of $39.1 million, lower gross profit on other products and services of $4.4 million, partially offset by higher gross profit on bananas of $19.2 million and higher gross profit on prepared food of $2.6 million.
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Fresh Del Monte Produce Inc. is a world leader in the production distribution and marketing of fresh produce. The products are marketed throughout the world under the DEL MONTE brand name and is a widely recognized symbol of product quality and reliability. The major products are bananas pineapples deciduous fruit and melons. The deciduous fruit the company sells includes primarily grapes plums nectarines peaches apricots cherries apples pears and citrus. Fresh Del Monte Produce Inc. has a market cap of $1.39 billion; its shares were traded at around $21.88 with a P/E ratio of 9.5 and P/S ratio of 0.3.
Highlight of Business Operations:
Net cash used in financing activities for the first six months of 2009 was $188.4 million compared with net cash provided by financing activities of $227.7 for the first six months of 2008. Net cash used in financing activities for the first six months of 2009 consisted primarily of net repayments on long-term debt of $186.0 million. Net cash provided by financing activities for the first six months of 2008 consisted of net proceeds from long-term debt of $209.8 million and $21.3 million of cash proceeds received from stock options exercised.As of June 26, 2009, we had $335.1 million of long-term debt and capital lease obligations, including the current portion, consisting of $315.8 million outstanding under the Credit Facility (including the Term Loan), $8.3 million of capital lease obligations and $11.0 million of other long-term debt.
On July 17, 2009, we refinanced and replaced the Credit Facility (including the Term Loan) with a $500 million senior-secured revolving credit facility (the New Credit Facility) with Rabobank Nederland, New York Branch, as administrative agent and lead arranger. The New Credit Facility has a 3.5 year term, with a scheduled maturity date of January 17, 2013. The New Credit Facility includes a swing line facility and a letter of credit facility with a $100 million sublimit. Borrowings under the New Credit Facility will bear interest at a spread over LIBOR that varies with our leverage ratio. The current margin for LIBOR advances is 3.0%. The New Credit Facility is collateralized directly or indirectly by substantially all of our assets and is guaranteed by certain of our subsidiaries. At July 17, 2009, the New Credit Facility had $333.4 million outstanding, comprised of $304.3 million in loans and $29.1 million applied to the letter of credit facility, and unused commitments of $166.6 million are available for working capital needs, general corporate purposes and other uses. The New Credit Facility requires us to be in compliance with financial and other covenants, including limitations on capital expenditures, the amount and types of liens and indebtedness, material asset sales and mergers.
Cost of Product Sold. Cost of products sold was $887.4 million for the second quarter of 2009 compared with $872.6 million for the second quarter of 2008, an increase of $14.8 million. This increase in cost of products sold was primarily attributable to a charge of $17.1 million related to the write off of growing crop inventory as a result of our decision to discontinue pineapple planting in Brazil, combined with higher banana fruit production and procurement costs, partially offset by lower ocean freight rates and distribution costs that resulted from lower fuel prices.
Gross Profit. Gross profit was $91.0 million for the second quarter of 2009 compared with $99.6 million for the second quarter of 2008, a decrease of $8.6 million. The decrease in gross profit was primarily attributable to lower gross profit on other fresh produce of $13.6 million, lower gross profit on other products and services of $2.3 million, partially offset by higher gross profit on bananas of $5.7 million and higher gross profit on prepared food of $1.6 million.
Gross Profit. Gross profit was $174.8 million for the first six months of 2009 compared with $196.5 million for the first six months of 2008, a decrease of $21.7 million. The decrease in gross profit was attributable to lower gross profit on other fresh produce of $39.1 million, lower gross profit on other products and services of $4.4 million, partially offset by higher gross profit on bananas of $19.2 million and higher gross profit on prepared food of $2.6 million.
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