Pinnacle Foods Inc.

CIK:0001564822|SEC Filings

Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jun. 25, 2017	Jul. 01, 2018	Jun. 25, 2017
Income Statement [Abstract]
Net sales	$ 741,761	$ 744,608	$ 1,520,593	$ 1,510,682
Cost of products sold	530,299	580,681	1,102,701	1,136,182
Gross profit	211,462	163,927	417,892	374,500
Operating expenses
Marketing and selling expenses	50,617	49,470	99,844	105,064
Administrative expenses	35,368	33,630	70,042	69,641
Research and development expenses	4,786	4,580	9,550	8,601
Tradename impairment charges	0	27,430	0	27,430
Other expense, net	17,445	5,288	20,310	9,518
Total operating (income) expenses	108,216	120,398	199,746	220,254
Operating income	103,246	43,529	218,146	154,246
Non-operating income	802	491	1,603	982
Earnings before interest and taxes	104,048	44,020	219,749	155,228
Interest expense	30,184	28,507	72,078	109,238
Interest income	16	13	228	28
Earnings before income taxes	73,880	15,526	147,899	46,018
Provision (benefit) for income taxes	17,624	(3,092)	34,729	4,251
Net earnings	56,256	18,618	113,170	41,767
Less: Net (loss) earnings attributable to non-controlling interest	(61)	(51)	(61)	172
Net earnings attributable to Pinnacle Foods, Inc. and subsidiaries common shareholders	$ 56,317	$ 18,669	$ 113,231	$ 41,595
Net earnings per share attributable to Pinnacle Foods, Inc. and subsidiaries common shareholders:
Basic (in dollars per share)	$ 0.47	$ 0.16	$ 0.95	$ 0.35
Weighted average shares outstanding- basic (in shares)	118,773,942	118,114,090	118,635,078	117,868,921
Diluted (in dollars per share)	$ 0.47	$ 0.16	$ 0.94	$ 0.35
Weighted average shares outstanding- diluted (in shares)	119,948,321	119,606,829	119,880,526	119,469,188
Dividends declared (in dollars per share)	$ 0.325000	$ 0.285000	$ 0.65000	$ 0.57000

Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2018	Jun. 25, 2017
Cash flows from operating activities
Net earnings	$ 113,170	$ 41,767
Non-cash charges (credits) to net earnings
Depreciation and amortization	54,251	80,899
Intangible asset impairment charge	0	27,430
Amortization of debt acquisition costs and discount on term loan	1,612	2,597
Call premium on note redemptions	4,267	0
Recognition of deferred costs related to refinancing	12,681	28,494
Change in value of financial instruments, including amounts reclassified from Accumulated Other Comprehensive Loss from settlement of hedges	1,078	25,043
Equity-based compensation charges	9,979	9,656
Pension expense, net of contributions	(2,641)	(1,136)
Other long-term liabilities	(6,331)	(1,193)
Foreign exchange losses/(gains)	894	(398)
Deferred income taxes	12,348	(5,780)
Changes in working capital
Other liabilities - cash settlement of hedges related to refinancing	0	(20,722)
Accounts receivable	16,851	11,777
Inventories	(19,056)	(31,745)
Accrued trade marketing expense	(6,973)	(17,748)
Accounts payable	20,870	35,379
Accrued liabilities	1,091	(53,991)
Other current assets	659	(9,981)
Net cash provided by operating activities	214,750	120,348
Cash flows from investing activities
Capital expenditures	(60,333)	(49,355)
Proceeds from sale of plant assets	0	1,947
Other investing	608	0
Net cash used in investing activities	(59,725)	(47,408)
Cash flows from financing activities
Proceeds from bank term loans	2,289,380	2,262,000
Repayments of long-term obligations	(2,614,629)	(2,472,320)
Proceeds from short-term borrowings	0	1,634
Repayments of short-term borrowings	(2,391)	(2,240)
Borrowings under revolving credit facility	100,000	0
Repayment of capital lease obligations	(6,188)	(4,216)
Dividends paid	(78,171)	(67,412)
Net proceeds from issuance of common stock	2,046	9,051
Taxes paid related to net share settlement of equity awards	(7,572)	(8,926)
Debt acquisition costs	(6,569)	(12,937)
Net cash used in financing activities	(324,094)	(295,366)
Effect of exchange rate changes on cash	(328)	219
Net change in cash and cash equivalents	(169,397)	(222,207)
Cash and cash equivalents - beginning of period	249,828	353,076
Cash and cash equivalents - end of period	80,431	130,869
Supplemental disclosures of cash flow information:
Interest paid	60,817	62,180
Interest received	1,391	28
Income taxes paid	44,617	47,569
Non-cash investing and financing activities:
New capital leases	17,901	8,951
Dividends payable	40,066	35,244
Accrued additions to plant assets	$ 12,518	$ 10,422

Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Jul. 01, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 80,431	$ 249,828
Accounts receivable, net of allowances of $9,584 and $10,036, respectively	264,358	281,622
Inventories	507,937	489,806
Other current assets	15,889	11,061
Total current assets	868,615	1,032,317
Plant assets, net of accumulated depreciation of $566,121 and $566,202, respectively	754,114	739,713
Tradenames	2,463,172	2,463,374
Other assets, net	173,971	164,899
Goodwill	2,175,290	2,177,961
Total assets	6,435,162	6,578,264
Current liabilities:
Short-term borrowings	1,842	2,739
Current portion of long-term obligations	54,126	33,934
Accounts payable	329,035	323,062
Accrued trade marketing expense	32,113	38,975
Accrued liabilities	119,945	122,131
Dividends payable	40,066	40,470
Total current liabilities	577,127	561,311
Long-term debt	2,703,917	2,925,594
Pension and other postretirement benefits	50,134	53,251
Other long-term liabilities	28,662	34,037
Deferred tax liabilities	643,792	623,833
Total liabilities	4,003,632	4,198,026
Commitments and contingencies (Note 15)
Shareholders' equity:
Pinnacle preferred stock: $.01 per share, 50,000,000 shares authorized, none issued	0	0
Pinnacle common stock: par value $.01 per share, 500,000,000 shares authorized; issued 120,184,208 and 120,018,215, respectively	1,202	1,200
Additional paid-in-capital	1,457,492	1,453,054
Retained earnings	1,027,855	987,238
Accumulated other comprehensive loss	(23,954)	(30,250)
Capital stock in treasury, at cost, 1,000,000 common shares	(32,110)	(32,110)
Total Pinnacle Foods Inc. and subsidiaries shareholders' equity	2,430,485	2,379,132
Non-controlling interest	1,045	1,106
Total Equity	2,431,530	2,380,238
Total liabilities and equity	$ 6,435,162	$ 6,578,264