0000048465-18-000028.txt : 20180524 0000048465-18-000028.hdr.sgml : 20180524 20180524075330 ACCESSION NUMBER: 0000048465-18-000028 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20180524 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20180524 DATE AS OF CHANGE: 20180524 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HORMEL FOODS CORP /DE/ CENTRAL INDEX KEY: 0000048465 STANDARD INDUSTRIAL CLASSIFICATION: MEAT PACKING PLANTS [2011] IRS NUMBER: 410319970 STATE OF INCORPORATION: DE FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-02402 FILM NUMBER: 18856659 BUSINESS ADDRESS: STREET 1: 1 HORMEL PL CITY: AUSTIN STATE: MN ZIP: 55912-3680 BUSINESS PHONE: (507) 437-5611 MAIL ADDRESS: STREET 1: 1 HORMEL PLACE CITY: AUSTIN STATE: MN ZIP: 55912-3680 FORMER COMPANY: FORMER CONFORMED NAME: HORMEL GEO A & CO DATE OF NAME CHANGE: 19920703 8-K 1 hormel8-k5242018.htm 8-K Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 
Washington, D. C. 20549
 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15 (d) of
the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported)   May 24, 2018
 
HORMEL FOODS CORPORATION
(Exact name of registrant as specified in its charter)
 
Delaware
1-2402
41-0319970
(State or Other
Jurisdiction of
Incorporation)
(Commission File
Number)
(IRS Employer
Identification
Number)
 
1 Hormel Place
Austin, MN  55912
(Address of Principal Executive Office)
 
Registrant’s telephone number, including area code:  (507) 437-5611
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
[  ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
[  ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
[  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
[  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company   [  ]
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]




Section 2 – FINANCIAL INFORMATION
 
Item 2.02 Results of Operations and Financial Condition
 
On May 24, 2018, the Company issued an earnings release announcing its financial results for the second quarter ended 2018.  A copy of the earnings release is furnished as Exhibit 99 to this Form 8-K and is incorporated herein by reference.

 
Section 9 – FINANCIAL STATEMENTS AND EXHIBITS
 
Item 9.01 Financial Statements and Exhibits
 
(d)    Exhibits furnished pursuant to Item 2.02
 
 
 
 
 
 
 
 
SIGNATURES
 
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
HORMEL FOODS CORPORATION
 
 
(Registrant)
 
 
 
Dated: May 24, 2018
By
/s/ JAMES P. SNEE
 
 
JAMES P. SNEE
 
 
Chairman of the Board, President and
 
 
Chief Executive Officer
 
 
 
 
 
 
 
 
 
Dated: May 24, 2018
By
/s/ JAMES N. SHEEHAN
 
 
JAMES N. SHEEHAN
 
 
Senior Vice President and
 
 
Chief Financial Officer


2
EX-99 2 hormelearningsreleaseq22018.htm EXHIBIT 99 Exhibit
Exhibit 99

 
INVESTOR CONTACT:
Nathan Annis
(507) 437-5248
ir@hormel.com
 
MEDIA CONTACT:        
Wendy Watkins       
(507) 437-5345        
media@hormel.com      

HORMEL FOODS ANNOUNCES RECORD SECOND QUARTER RESULTS
AND REAFFIRMS FULL YEAR GUIDANCE
 
Company Maintains Full Year Sales and Earnings Guidance
While Effectively Managing Commodity and Freight Headwinds
 
AUSTIN, Minn. (May 24, 2018) – Hormel Foods Corporation (NYSE: HRL), a leading global branded food company, today reported results for the second quarter of fiscal 2018. All comparisons are to the second quarter of fiscal 2017 unless otherwise noted.
 
EXECUTIVE SUMMARY
Record diluted earnings per share of $0.44, up 13% from 2017 EPS of $0.39
Fiscal 2018 earnings guidance reaffirmed at $1.81 to $1.95 per share
Record net sales of $2.3 billion, up 7%; Organic net sales1 flat
Volume of 1.2 billion lbs., up 3%; Organic volume1 down 1%
Operating margin of 13.1% compared to 14.4% last year
Effective tax rate of 20.0% compared to 33.2% last year
Year-to-date cash flow from operations of $443 million, up 58% compared to last year

COMMENTARY
"Our team delivered record earnings per share of $0.44 which was in line with our expectation and keeps us on track to maintain our full year earnings guidance," said Jim Snee, chairman of the board, president, and chief executive officer. "We were particularly pleased with the bottom-line performance from Refrigerated Foods as our experienced team grew our value-added profits while navigating through volatile markets. Our balanced business model helped mitigate higher freight costs and a difficult commodity environment."

“We delivered record sales led by our Refrigerated Foods and International segments. Strong top-line growth from brands such as Hormel® Natural Choice® and Hormel® Bacon 1TM and international sales of products such as Skippy® peanut butter was complemented by the strategic acquisitions of Fontanini, Columbus Craft Meats, and Ceratti," Snee said. "Our core center store portfolio of brands such as SPAM®, Dinty Moore®, and Herdez® also showed strong growth this quarter."
 
SEGMENT HIGHLIGHTS – SECOND QUARTER

Refrigerated Foods
 
Volume up 6%; Organic volume1 down 1%
 Net sales up 14%; Organic net sales1 flat to last year
Segment profit up 18%
 
Volume and sales increases benefited from the inclusion of the Columbus and Fontanini acquisitions in addition to strong retail sales of Hormel® Natural Choice® products and foodservice sales of Hormel® pepperoni and Hormel® Bacon 1TM fully cooked bacon. Organic volume decreased due to lower hog harvest volumes.


1


Refrigerated Foods delivered segment profit growth of 18% despite a 25% decline in commodity profits, a double-digit increase in per-unit freight expenses, and higher advertising expenses. Strong results were delivered by our branded retail and foodservice businesses in addition to the inclusion of the Fontanini and Columbus acquisitions.

Grocery Products
 
Volume down 2%
Net sales down 1%
Segment profit down 12%

Low-single-digit sales growth in our core Grocery Products portfolio, led by Wholly Guacamole® dips, the SPAM® family of products, Herdez® salsas, Dinty Moore® stew, and Hormel® chili, was more than offset by significant sales declines across the CytoSport portfolio and our contract manufacturing business. Total Grocery Products segment profit was down due to increased promotional activity and lower volumes at CytoSport and lower earnings from our contract manufacturing business.
 
Jennie-O Turkey Store
 
Volume down 3%
Net sales down 4%
Segment profit down 34%
 
Sales declines were primarily due to lower whole bird pricing and volume as a result of continued oversupply of turkeys in the industry and excess meat in cold storage. Sales declines of whole birds were partially offset by increased retail sales, led by Jennie-O® lean ground turkey and Jennie-O® Oven Ready® products. Segment profit decreased as a result of lower profits from whole bird and commodity sales, double-digit increases in per-unit freight costs, and increased advertising.

International & Other
 
Volume up 14%; Organic volume1 up 1%
Net sales up 22%; Organic net sales1 up 8%
Segment profit up 6%
 
International volume and sales increases were related to strong results in China, increased export sales, and the inclusion of the Ceratti business. Earnings increased on improved profitability in China due to lower raw material costs but were partially offset by higher advertising expenses and lower branded export margins.

SELECTED FINANCIAL DETAILS

Income Statement
Selling, general and administrative expenses increased due to the impact from acquisitions and higher advertising expense.
Advertising expenses were $37 million compared to $30 million last year. Full year advertising expenses are expected to increase by approximately 20% over last year.
Operating margin was 13.1% compared to 14.4% last year.
The effective tax rate was 20.0% compared to 33.2% last year due to the passage of The Tax Cuts and Jobs Act in December 2017. The full year effective tax rate is expected to be between 17.5% and 19.5%.

2


Cash Flow Statement
Capital expenditures in the second quarter were $87 million compared to $39 million last year. Full year capital expenditures are expected to total $425 million. Key projects include bacon capacity increases in our Wichita, Kans., facility, a new whole bird facility in Melrose, Minn., modernization of the Austin, Minn., plant, and projects designed to increase value-added capacity.
Depreciation and amortization expense in the second quarter was $41 million compared to $32 million last year. Full year expenses are expected to be approximately $160 million.
Share repurchases to date total $45 million, representing 1.3 million shares purchased.
The Company repaid $70 million in short-term debt in the quarter.
The Company paid its 359th consecutive quarterly dividend at the annual rate of $0.75 per share, a 10% increase over the prior year.

Balance Sheet
Working capital increased to $702 million from $625 million in the first quarter, primarily related to a higher inventories from acquisitions and lower accounts payable.
Cash on hand decreased to $262 million from $386 million for the first quarter as the Company continues to pay down short-term debt related to the Columbus Craft Meats acquisition.
Total debt is $810 million. The debt is split between short-term borrowings of $185 million and long-term borrowings of $625 million.
The Company remains in a strong financial position to fund other capital needs.

OUTLOOK
"We are reaffirming our sales and earnings outlook for fiscal 2018," Snee said. "Our balanced business model allows us to manage through volatility and deliver consistent earnings growth. We continue to execute our value-added growth strategy in Refrigerated Foods and expect our retail and foodservice branded businesses to offset higher freight costs and lower pork commodity profits. Our expectation is for strong year-over-year earnings growth for International and for Grocery Products to return to its growth trajectory. While we are starting to see early signs of a recovery in the turkey industry, we expect Jennie-O Turkey Store to continue showing earnings declines for the remainder of this year."

"We are making excellent progress on the integrations of our recent acquisitions. These efforts, in combination with continued execution of our strategic imperatives, will ensure we remain in a position to deliver strong growth in the future."
 
 
Fiscal 2018 Outlook
Net Sales Guidance (in billions)
$9.70 - $10.10
Earnings per Share Guidance
$1.81 - $1.95

PRESENTATION
 
A conference call will be webcast at 8:00 a.m. CT on Thursday, May 24, 2018. Access is available at www.hormelfoods.com. The call will also be available via telephone by dialing 800-239-9838 and providing the access code 9118102. An audio replay is available by going to www.hormelfoods.com and clicking on Investors. The webcast replay will be available at 11:00 a.m. CT, Thursday, May 24, 2018, and will remain on the website for one year.



3


ABOUT HORMEL FOODS - Inspired People. Inspired Food.™
 
Hormel Foods Corporation, based in Austin, Minn., is a leading global branded food company with over $9 billion in annual revenues across more than 80 countries worldwide. Its brands include Skippy®, SPAM®, Hormel® Natural Choice®, Columbus®, Applegate®, Justin’s®, Wholly Guacamole®, Hormel® Black Label® and more than 30 other beloved brands. The company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of “The 100 Best Corporate Citizens” by Corporate Responsibility Magazine for the tenth year in a row, and has received numerous other awards and accolades for its corporate responsibility and community service efforts. In 2016, the company celebrated its 125th anniversary and announced its new vision for the future - Inspired People. Inspired Food.™ - focusing on its legacy of innovation. For more information, visit www.hormelfoods.com and http://csr.hormelfoods.com/.
 
FORWARD-LOOKING STATEMENTS
 
This news release contains forward-looking information based on management’s current views and assumptions. Actual events may differ materially. Please refer to the cautionary statement regarding Forward-Looking Statements and Risk Factors which appear on pages 31 - 38 in the company's Form 10-Q for the quarter ended January 28, 2018, which can be accessed at www.hormelfoods.com under "Investors - Filings & Reports - SEC Filings."

1 COMPARISON OF U.S. GAAP TO NON-GAAP FINANCIAL MEASUREMENTS
 
The non-GAAP adjusted financial measurements of organic net sales and organic volume are presented to provide investors additional information to facilitate the comparison of past and present operations. The company believes these non-GAAP financial measurements provide useful information to investors because they are the measurements used to evaluate performance on a comparable year-over-year basis. Non-GAAP measurements are not intended to be a substitute for U.S. GAAP measurements in analyzing financial performance. These non-GAAP measurements are not in accordance with generally accepted accounting principles and may be different from non-GAAP measures used by other companies.

Organic net sales and organic volume are defined as net sales and volume excluding the impact of acquisitions and divestitures. Organic net sales and organic volume exclude the impacts of the acquisition of Columbus Craft Meats (November 2017), the acquisition of Fontanini Italian Meats and Sausages (August 2017), and the divestiture of Farmer John (January 2017) in Refrigerated Foods and the acquisition of Ceratti (August 2017) in International. The tables below show the calculations to reconcile from the non-GAAP adjusted measures to the GAAP measures in the second quarter and second quarter year-to-date of fiscal 2018 and fiscal 2017.


4


NON-GAAP1 VOLUME AND SALES DATA
(Unaudited) (In thousands)

2nd Quarter
 
FY 2018
 
FY 2017
 
VOLUME (LBS.)
 
Reported
(GAAP)
 
Acquisitions
 
Organic
(Non-GAAP)
 
Reported
(GAAP)
 
Organic
% change
Grocery Products
 
333,398

 

 
333,398

 
338,883

 
(1.6
)
Refrigerated Foods
 
548,319

 
(38,402
)
 
509,917

 
515,490

 
(1.1
)
Jennie-O Turkey Store
 
197,806

 

 
197,806

 
203,557

 
(2.8
)
International & Other
 
91,878

 
(10,676
)
 
81,202

 
80,312

 
1.1

TOTAL
 
1,171,401

 
(49,078
)
 
1,122,323

 
1,138,242

 
(1.4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FY 2018
 
FY 2017
 
NET SALES
 
Reported
(GAAP)
 
Acquisitions
 
Organic
(Non-GAAP)
 
Reported
(GAAP)
 
Organic
% change
Grocery Products
 
$
631,550

 
$

 
$
631,550

 
$
640,419

 
(1.4
)
Refrigerated Foods
 
1,166,967

 
(134,878
)
 
1,032,089

 
1,027,486

 
0.4

Jennie-O Turkey Store
 
371,916

 

 
371,916

 
388,237

 
(4.2
)
International & Other
 
160,135

 
(19,040
)
 
141,095

 
131,167

 
7.6

TOTAL
 
$
2,330,568

 
$
(153,918
)
 
$
2,176,650

 
$
2,187,309

 
(0.5
)
 

Year to Date
 
FY 2018
 
FY 2017
 
 
VOLUME (LBS.)
 
Reported
(GAAP)
 
Acquisitions
 
Organic
(Non-GAAP)
 
Reported
(GAAP)
 
Divestitures
 
Organic
(Non-GAAP)
 
Organic
% change
Grocery Products
 
667,615

 

 
667,615

 
677,675

 

 
677,675

 
(1.5
)
Refrigerated Foods
 
1,110,814

 
(70,062
)
 
1,040,752

 
1,129,915

 
(80,454
)
 
1,049,461

 
(0.8
)
Jennie-O Turkey Store
 
406,237

 

 
406,237

 
420,200

 

 
420,200

 
(3.3
)
International & Other
 
177,327

 
(23,509
)
 
153,818

 
155,361

 

 
155,361

 
(1.0
)
TOTAL
 
2,361,993

 
(93,571
)
 
2,268,422

 
2,383,151

 
(80,454
)
 
2,302,697

 
(1.5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FY 2018
 
FY 2017
 
 
NET SALES
 
Reported
(GAAP)
 
Acquisitions
 
Organic
(Non-GAAP)
 
Reported
(GAAP)
 
Divestitures
 
Organic
(Non-GAAP)
 
Organic
% change
Grocery Products
 
$
1,245,420

 
$

 
$
1,245,420

 
$
1,250,793

 
$

 
$
1,250,793

 
(0.4
)
Refrigerated Foods
 
2,343,423

 
(245,895
)
 
2,097,528

 
2,150,525

 
(100,231
)
 
2,050,294

 
2.3

Jennie-O Turkey Store
 
762,564

 

 
762,564

 
809,226

 

 
809,226

 
(5.8
)
International & Other
 
310,454

 
(40,895
)
 
269,559

 
256,992

 

 
256,992

 
4.9

TOTAL
 
$
4,661,861

 
$
(286,790
)
 
$
4,375,071

 
$
4,467,536

 
$
(100,231
)
 
$
4,367,305

 
0.2


Statements Follow

5

HORMEL FOODS CORPORATION
SEGMENT DATA
(Unaudited) (In thousands)

 
 
 
 
 

 
 
Thirteen Weeks Ended
 
 
April 29, 2018
 
April 30, 2017
 
% Change
NET SALES
 
 
 
 
 
 
Grocery Products
 
$
631,550

 
$
640,419

 
(1.4
)
Refrigerated Foods
 
1,166,967

 
1,027,486

 
13.6

Jennie-O Turkey Store
 
371,916

 
388,237

 
(4.2
)
International & Other
 
160,135

 
131,167

 
22.1

TOTAL
 
$
2,330,568

 
$
2,187,309

 
6.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
OPERATING PROFIT
 
 

 
 

 
 

Grocery Products
 
$
95,651

 
$
108,297

 
(11.7
)
Refrigerated Foods
 
154,192

 
130,194

 
18.4

Jennie-O Turkey Store
 
42,356

 
63,786

 
(33.6
)
International & Other
 
20,850

 
19,617

 
6.3

TOTAL SEGMENT OPERATING PROFIT
 
313,049

 
321,894

 
(2.7
)
Net interest and investment expense (income)
 
9,490

 
205

 
4,529.3

General corporate expense
 
6,814

 
5,822

 
17.0

Noncontrolling interest
 
138

 
(40
)
 
445.0

EARNINGS BEFORE INCOME TAX
 
$
296,883

 
$
315,827

 
(6.0
)
 
 
 
 
 

 
 
Twenty-Six Weeks Ended
 
 
April 29, 2018
 
April 30, 2017
 
% Change
NET SALES
 
 
 
 
 
 
Grocery Products
 
$
1,245,420

 
$
1,250,793

 
(0.4
)
Refrigerated Foods
 
2,343,423

 
2,150,525

 
9.0

Jennie-O Turkey Store
 
762,564

 
809,226

 
(5.8
)
International & Other
 
310,454

 
256,992

 
20.8

TOTAL
 
$
4,661,861

 
$
4,467,536

 
4.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
OPERATING PROFIT
 
 

 
 

 
 

Grocery Products
 
$
195,628

 
$
200,673

 
(2.5
)
Refrigerated Foods
 
297,141

 
304,002

 
(2.3
)
Jennie-O Turkey Store
 
92,230

 
131,966

 
(30.1
)
International & Other
 
45,505

 
45,080

 
0.9

TOTAL SEGMENT OPERATING PROFIT
 
630,504

 
681,721

 
(7.5
)
Net interest and investment expense (income)
 
10,913

 
782

 
1,295.5

General corporate expense
 
17,785

 
10,443

 
70.3

Noncontrolling interest
 
242

 
116

 
108.6

EARNINGS BEFORE INCOME TAX
 
$
602,048

 
$
670,612

 
(10.2
)


6

HORMEL FOODS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (In thousands, except per share amounts)


 
 
 
 
 
 
 
 
 
 
 
Thirteen Weeks Ended
 
Twenty-Six Weeks Ended
 
 
April 29, 2018
 
April 30, 2017
 
April 29, 2018
 
April 30, 2017
Net sales
 
$
2,330,568

 
$
2,187,309

 
$
4,661,861

 
$
4,467,536

Cost of products sold
 
1,833,882

 
1,700,389

 
3,662,996

 
3,428,336

GROSS PROFIT
 
496,686

 
486,920

 
998,865

 
1,039,200

Selling, general and administrative
 
203,799

 
181,009

 
422,921

 
391,226

Equity in earnings of affiliates
 
13,486

 
10,121

 
37,017

 
23,420

OPERATING INCOME
 
306,373

 
316,032

 
612,961

 
671,394

Interest & investment (expense) income
 
(2,489
)
 
2,818

 
817

 
5,267

Interest expense
 
(7,001
)
 
(3,023
)
 
(11,730
)
 
(6,049
)
EARNINGS BEFORE INCOME TAXES
 
296,883

 
315,827

 
602,048

 
670,612

Provision for income taxes
 
59,361

 
104,941

 
61,315

 
224,423

(effective tax rate)
 
20.0
%
 
33.2
%
 
10.2
%
 
33.5
%
NET EARNINGS
 
237,522

 
210,886

 
540,733

 
446,189

Less: net earnings attributable to noncontrolling interest
 
138

 
(40
)
 
242

 
116

NET EARNINGS ATTRIBUTABLE TO HORMEL FOODS CORPORATION
 
$
237,384

 
$
210,926

 
$
540,491

 
$
446,073

 
 
 
 
 
 
 
 
 
NET EARNINGS PER SHARE
 
 

 
 

 
 

 
 

Basic
 
$
0.45

 
$
0.40

 
$
1.02

 
$
0.84

Diluted
 
$
0.44

 
$
0.39

 
$
1.00

 
$
0.83

 
 
 
 
 
 
 
 
 
WEIGHTED AVG. SHARES OUTSTANDING
 
 

 
 

 
 

Basic
 
529,799

 
528,712

 
529,626

 
528,649

Diluted
 
542,811

 
539,635

 
543,146

 
539,850

 
 
 
 
 
 
 
 
 
Dividends declared per share
 
$
0.1875

 
$
0.1700

 
$
0.3750

 
$
0.3400


7

HORMEL FOODS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited) (In thousands)

 
 
 
 
 
 
 
April 29, 2018
 
October 29, 2017
ASSETS
Cash and cash equivalents
 
$
261,571

 
$
444,122

Accounts receivable
 
551,392

 
618,351

Inventories
 
1,011,215

 
921,022

Income taxes receivable
 
2,930

 
22,346

Prepaid expenses
 
18,534

 
16,144

Other current assets
 
5,138

 
4,538

TOTAL CURRENT ASSETS
 
1,850,780

 
2,026,523

Intangibles
 
3,983,252

 
3,146,827

Other Assets
 
641,864

 
599,307

Property, Plant & Equipment, Net
 
1,353,853

 
1,203,251

TOTAL ASSETS
 
$
7,829,749

 
$
6,975,908

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS’ INVESTMENT
Short-term debt
 
$
185,000

 
$

Current liabilities excluding debt
 
963,461

 
1,058,212

TOTAL CURRENT LIABILITIES
 
1,148,461

 
1,058,212

Long-term debt - Less current maturities
 
624,763

 
250,000

Deferred income taxes
 
125,425

 
98,410

Other long-term liabilities
 
639,467

 
629,589

Shareholders' Investment
 
5,291,633

 
4,939,697

TOTAL LIAB. & SHAREHOLDERS’ INVESTMENT
 
$
7,829,749

 
$
6,975,908


8

HORMEL FOODS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (In thousands)


 
 
 
 
 
 
 
Twenty-Six Weeks Ended
 
 
April 29, 2018
 
April 30, 2017
OPERATING ACTIVITIES
 
 

 
 

Net earnings
 
$
540,733

 
$
446,189

Depreciation and amortization of intangibles
 
80,316

 
63,328

Increase in working capital
 
(77,785
)
 
(239,931
)
Other
 
(99,923
)
 
10,966

NET CASH PROVIDED BY OPERATING ACTIVITIES
 
443,341

 
280,552

 
 
 
 
 
INVESTING ACTIVITIES
 
 

 
 

Proceeds from sale of business
 

 
135,944

Acquisitions of businesses/intangibles
 
(857,673
)
 

Net purchases of property/equipment
 
(134,721
)
 
(75,818
)
Decrease in investments, equity in affiliates, and other assets
 
5,934

 
3,977

NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES
 
(986,460
)
 
64,103

 
 
 
 
 
FINANCING ACTIVITIES
 
 

 
 

Net proceeds (payments) from short-term debt
 
185,000

 

Net proceeds (payments) from long-term debt
 
374,763

 

Dividends paid on common stock
 
(189,139
)
 
(166,507
)
Share repurchase
 
(44,741
)
 
(49,583
)
Other
 
29,978

 
8,879

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
 
355,861

 
(207,211
)
Effect of exchange rate changes on cash
 
4,707

 
(3,686
)
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
 
(182,551
)
 
133,758

Cash and cash equivalents at beginning of year
 
444,122

 
415,143

CASH AND CASH EQUIVALENTS AT END OF QUARTER
 
$
261,571

 
$
548,901



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