Tootsie Roll Industries Inc. (TR, Financial) filed Quarterly Report for the period ended 2009-07-04.
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 $1.36 billion; its shares were traded at around $24.03 with a P/E ratio of 30.4 and P/S ratio of 2.7. The dividend yield of Tootsie Roll Industries Inc. stocks is 1.3%.
Second quarter 2009 net product sales were $107,812 compared to $101,591 in
second quarter 2008, an increase of $6,221 or 6.1%. First half 2009 net product
sales of $201,866 increased $9,934 or 5.2% from first half 2008 net product
sales of $191,932. Second quarter and first half 2009 net product sales
benefited from effective marketing programs and selective price increases as
well as the timing of certain customer orders shipped in second quarter 2009
which were shipped in third quarter 2008. Consolidated 2009 net product sales
advanced despite declines in sales outside of the U.S. reflecting lower foreign
sales when translated into a stronger U.S. dollar reporting currency.
Second quarter 2009 and 2008 selling, marketing and administrative expenses
were $25,728 and $23,188, respectively an increase of $2,540 or 11.0%; and
first half 2009 and 2008 selling, marketing and administrative expenses were
$47,861 and $43,238, respectively an increase of $4,623 or 10.7%. The
aforementioned expenses reflect increases of $895 and $2,102 related to
deferred compensation expense in second quarter and first half 2009,
respectively, compared to 2008. Such deferred compensation expense principally
results from changes in the market value of trading securities used as an
economic hedge of the Company\'s deferred compensation liabilities as further
discussed below. Adjusting for the aforementioned, selling marketing and
administrative expenses increased by $1,645 or 7.1% and $2,521 or 5.6% in
second quarter and first half 2009, respectively, when compared to the
corresponding comparative periods.
Second quarter 2009 and 2008 earnings from operations were $13,926 and 10,451,
respectively; and first half 2009 and 2008 earnings from operations were
$25,889 and 20,923, respectively. Adjusting for the above discussed deferred
compensation expenses (including amounts included in product cost of goods
sold), second quarter 2009 earnings from operations were $15,134 compared to
$10,530 in second quarter 2008, an increase of $4,604 or 43.7%; and first half
2009 earnings from operations were $26,770 compared to $19,032 in first half
2009, an increase of $7,738 or 40.7%. Results for second quarter and first half
2009 were favorably impacted by higher sales and improved gross profit margins
as well as other factors discussed above.
Other income, net was $1,821 in second quarter 2009 compared to $653 in second
quarter 2008, a net increase of $1,168. For first half 2009 other income
(expense), net was $1,441 compared to $(587) for first half 2008, a net
increase of $2,028. Other income, net includes the changes in the market value
in the Company\'s trading securities which are an economic hedge of the
Company\'s deferred compensation liabilities. The income (expense) on such
trading securities was $1,209 and $80 in second quarter 2009 and 2008,
respectively, and $883 and $(1,889) in first half 2009 and 2008, respectively.
Such income or (expense) was substantially offset by a like amount of (expense)
or income in the aggregate product cost of goods sold and selling marketing and
administrative expenses in the respective periods. Other income, net also
includes decreases in investment income on available for sale securities and
cash balances reflecting lower interest rates in the investment markets.
Second quarter 2009 net earnings were $10,338 compared to second quarter 2008
net earnings of $7,246, a $3,092 or 42.7% increase. Second quarter 2009
earnings per share were $0.18, compared to $0.13 per share in second quarter
2008, an increase of $0.05 or 38.5%. First half 2009 net earnings were $18,658
compared to first half 2008 net earnings of $13,699, a $4,959 or 36.2%
increase. First half net earnings per share were $0.33 in 2009 compared to
$0.24 per share in first half 2008, an increase of $0.09 per share or 37.5%.
The Company\'s earning per share for both second quarter and first half 2009
reflect common stock purchases in the open market resulting in fewer shares
outstanding.
The Company\'s current ratio (current assets divided by current liabilities) was
3.3 to 1 as of the end of second quarter 2009 as compared to 2.7 to 1 as of the
end of second quarter 2008 and 3.2 to 1 as of the end of fourth quarter 2008.
Net working capital was $124,851 as of the end of second quarter 2009 as
compared to $114,331 and $128,727 as of the end of second quarter 2008 and
fourth quarter 2008, respectively. The aforementioned net working capital
amounts include total cash and cash equivalents and short-term investments which
aggregated $49,003 as of the end of second quarter 2009 compared to $47,029 and
$86,871, as of the end of second quarter 2008 and fourth quarter 2008,
respectively. In addition, long-term investments, principally debt securities
comprising municipal bonds, were $49,488 (includes $8,410 of Jefferson County
auction rate securities discussed in Note 5 to the accompanying Condensed
Consolidated Financial Statements) as of the end of second quarter 2009, as
compared to $73,217 and $49,809 as of the end of second quarter 2008 and
fourth quarter 2008, respectively. Aggregate cash and cash equivalents and short
and long-term investments were $98,491, $120,246 and $136,680, respectively for
second quarter ended 2009, second quarter 2008 and fourth quarter 2008,
respectively. Except for the Jefferson County auction rate securities referenced
above, investments in municipal bonds and other debt securities that matured
during first half 2009 and 2008 were generally used to purchase the Company\'s
common stock or were replaced with debt securities of similar maturities.
Read the The complete ReportTR is in the portfolios of John Keeley of Keeley Fund Management.
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 $1.36 billion; its shares were traded at around $24.03 with a P/E ratio of 30.4 and P/S ratio of 2.7. The dividend yield of Tootsie Roll Industries Inc. stocks is 1.3%.
Highlight of Business Operations:
Second quarter 2009 net product sales were $107,812 compared to $101,591 in
second quarter 2008, an increase of $6,221 or 6.1%. First half 2009 net product
sales of $201,866 increased $9,934 or 5.2% from first half 2008 net product
sales of $191,932. Second quarter and first half 2009 net product sales
benefited from effective marketing programs and selective price increases as
well as the timing of certain customer orders shipped in second quarter 2009
which were shipped in third quarter 2008. Consolidated 2009 net product sales
advanced despite declines in sales outside of the U.S. reflecting lower foreign
sales when translated into a stronger U.S. dollar reporting currency.
Second quarter 2009 and 2008 selling, marketing and administrative expenses
were $25,728 and $23,188, respectively an increase of $2,540 or 11.0%; and
first half 2009 and 2008 selling, marketing and administrative expenses were
$47,861 and $43,238, respectively an increase of $4,623 or 10.7%. The
aforementioned expenses reflect increases of $895 and $2,102 related to
deferred compensation expense in second quarter and first half 2009,
respectively, compared to 2008. Such deferred compensation expense principally
results from changes in the market value of trading securities used as an
economic hedge of the Company\'s deferred compensation liabilities as further
discussed below. Adjusting for the aforementioned, selling marketing and
administrative expenses increased by $1,645 or 7.1% and $2,521 or 5.6% in
second quarter and first half 2009, respectively, when compared to the
corresponding comparative periods.
Second quarter 2009 and 2008 earnings from operations were $13,926 and 10,451,
respectively; and first half 2009 and 2008 earnings from operations were
$25,889 and 20,923, respectively. Adjusting for the above discussed deferred
compensation expenses (including amounts included in product cost of goods
sold), second quarter 2009 earnings from operations were $15,134 compared to
$10,530 in second quarter 2008, an increase of $4,604 or 43.7%; and first half
2009 earnings from operations were $26,770 compared to $19,032 in first half
2009, an increase of $7,738 or 40.7%. Results for second quarter and first half
2009 were favorably impacted by higher sales and improved gross profit margins
as well as other factors discussed above.
Other income, net was $1,821 in second quarter 2009 compared to $653 in second
quarter 2008, a net increase of $1,168. For first half 2009 other income
(expense), net was $1,441 compared to $(587) for first half 2008, a net
increase of $2,028. Other income, net includes the changes in the market value
in the Company\'s trading securities which are an economic hedge of the
Company\'s deferred compensation liabilities. The income (expense) on such
trading securities was $1,209 and $80 in second quarter 2009 and 2008,
respectively, and $883 and $(1,889) in first half 2009 and 2008, respectively.
Such income or (expense) was substantially offset by a like amount of (expense)
or income in the aggregate product cost of goods sold and selling marketing and
administrative expenses in the respective periods. Other income, net also
includes decreases in investment income on available for sale securities and
cash balances reflecting lower interest rates in the investment markets.
Second quarter 2009 net earnings were $10,338 compared to second quarter 2008
net earnings of $7,246, a $3,092 or 42.7% increase. Second quarter 2009
earnings per share were $0.18, compared to $0.13 per share in second quarter
2008, an increase of $0.05 or 38.5%. First half 2009 net earnings were $18,658
compared to first half 2008 net earnings of $13,699, a $4,959 or 36.2%
increase. First half net earnings per share were $0.33 in 2009 compared to
$0.24 per share in first half 2008, an increase of $0.09 per share or 37.5%.
The Company\'s earning per share for both second quarter and first half 2009
reflect common stock purchases in the open market resulting in fewer shares
outstanding.
The Company\'s current ratio (current assets divided by current liabilities) was
3.3 to 1 as of the end of second quarter 2009 as compared to 2.7 to 1 as of the
end of second quarter 2008 and 3.2 to 1 as of the end of fourth quarter 2008.
Net working capital was $124,851 as of the end of second quarter 2009 as
compared to $114,331 and $128,727 as of the end of second quarter 2008 and
fourth quarter 2008, respectively. The aforementioned net working capital
amounts include total cash and cash equivalents and short-term investments which
aggregated $49,003 as of the end of second quarter 2009 compared to $47,029 and
$86,871, as of the end of second quarter 2008 and fourth quarter 2008,
respectively. In addition, long-term investments, principally debt securities
comprising municipal bonds, were $49,488 (includes $8,410 of Jefferson County
auction rate securities discussed in Note 5 to the accompanying Condensed
Consolidated Financial Statements) as of the end of second quarter 2009, as
compared to $73,217 and $49,809 as of the end of second quarter 2008 and
fourth quarter 2008, respectively. Aggregate cash and cash equivalents and short
and long-term investments were $98,491, $120,246 and $136,680, respectively for
second quarter ended 2009, second quarter 2008 and fourth quarter 2008,
respectively. Except for the Jefferson County auction rate securities referenced
above, investments in municipal bonds and other debt securities that matured
during first half 2009 and 2008 were generally used to purchase the Company\'s
common stock or were replaced with debt securities of similar maturities.
Read the The complete ReportTR is in the portfolios of John Keeley of Keeley Fund Management.