For the fiscal year ended March 31, 2017
|
Commission File Number 0‑01989
|
New York
(State or other jurisdiction of
incorporation or organization)
3736 South Main Street, Marion, New York
(Address of principal executive offices)
Registrant's telephone number, including area code
|
16‑0733425
(I.R.S. Employer Identification No.)
14505
(Zip Code)
(315) 926-8100
|
Title of Each Class
|
Name of Each Exchange on
Which Registered
|
Common Stock Class A, $.25 Par
|
NASDAQ Global Market
|
Common Stock Class B, $.25 Par
|
NASDAQ Global Market
|
(1)
|
Portions of the Annual Report to shareholders for fiscal year ended March 31, 2017 (the "2017 Annual Report") applicable to Part I, Item 1, Part II, Items 5‑9A and Part IV, Item 15 of Form 10‑K.
|
(2)
|
Portion of the Proxy Statement to be issued in connection with the Registrant's annual meeting of stockholders (the "Proxy Statement") applicable to Part III, Items 10-14 of Form 10-K.
|
TABLE OF CONTENTS
|
||
FORM 10-K ANNUAL REPORT FISCAL YEAR 2017
|
||
SENECA FOODS CORPORATION
|
||
PART I.
|
Pages
|
|
Item 1.
|
Business
|
1-4
|
Item 1A.
|
Risk Factors
|
4-8
|
Item 1B.
|
Unresolved Staff Comments
|
8
|
Item 2.
|
Properties
|
9
|
Item 3.
|
Legal Proceedings
|
10
|
Item 4.
|
Mine Safety Disclosures
|
10
|
PART II.
|
||
Item 5.
|
Market for Registrant's Common Stock, Related Security Holder Matters
|
11
|
and Issuer Purchases of Equity Securities
|
||
Item 6.
|
Selected Financial Data
|
11
|
Item 7.
|
Management's Discussion and Analysis of Financial Condition and
|
11
|
Results of Operations
|
||
Item 7A.
|
Quantitative and Qualitative Disclosures about Market Risk
|
11
|
Item 8.
|
Financial Statements and Supplementary Data
|
12
|
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and
|
12
|
Financial Disclosure
|
||
Item 9A.
|
Controls and Procedures
|
12-14
|
Item 9B.
|
Other Information
|
14
|
PART III.
|
||
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
15
|
Item 11.
|
Executive Compensation
|
15
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and
|
15
|
Related Stockholder Matters
|
||
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence
|
15
|
Item 14.
|
Principal Accountant Fees and Services
|
15
|
PART IV.
|
||
Item 15.
|
Exhibits and Financial Statement Schedules
|
15-19
|
Item 16.
|
Form 10-K Summary
|
17
|
SIGNATURES
|
20
|
Classes of similar products/services:
|
2017
|
2016
|
2015
|
|||||||||
(In thousands)
|
||||||||||||
Net Sales:
|
||||||||||||
Green Giant *
|
$
|
119,812
|
$
|
144,310
|
$
|
161,993
|
||||||
Canned vegetables
|
705,297
|
746,501
|
754,556
|
|||||||||
Frozen
|
98,597
|
94,710
|
94,648
|
|||||||||
Fruit
|
286,464
|
253,658
|
234,918
|
|||||||||
Snack
|
12,430
|
12,336
|
11,667
|
|||||||||
Other
|
23,081
|
23,845
|
28,568
|
|||||||||
Total
|
$
|
1,245,681
|
$
|
1,275,360
|
$
|
1,286,350
|
||||||
* Green Giant includes canned and frozen vegetable sales exclusively for GMOL or B&G Foods.
|
First Quarter
|
Second Quarter
|
Third Quarter
|
Fourth Quarter
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Year ended March 31, 2017:
|
||||||||||||||||
Net sales
|
$
|
252,614
|
$
|
357,247
|
$
|
369,705
|
$
|
266,115
|
||||||||
Gross margin
|
19,975
|
30,212
|
37,475
|
18,721
|
||||||||||||
Net (loss) earnings
|
(62
|
)
|
6,144
|
8,181
|
(1,650
|
)
|
||||||||||
Inventories (at quarter end)
|
586,829
|
771,996
|
656,368
|
598,056
|
||||||||||||
Revolver outstanding (at quarter end)
|
264,000
|
342,935
|
232,586
|
214,781
|
||||||||||||
Year ended March 31, 2016:
|
||||||||||||||||
Net sales
|
$
|
226,258
|
$
|
313,202
|
$
|
432,198
|
$
|
303,702
|
||||||||
Gross margin
|
20,899
|
29,073
|
53,382
|
44,041
|
||||||||||||
Net earnings
|
2,968
|
6,522
|
31,123
|
13,845
|
||||||||||||
Inventories (at quarter end)
|
482,556
|
761,703
|
631,181
|
567,707
|
||||||||||||
Revolver outstanding (at quarter end)
|
197,350
|
304,468
|
309,211
|
271,592
|
The following table sets forth domestic and export sales:
|
Fiscal Year
|
||||||||||||||
2017
|
2016
|
2015
|
||||||||||||
(In thousands, except percentages)
|
||||||||||||||
Net Sales:
|
||||||||||||||
United States
|
$
|
1,149,623
|
|
$
|
1,167,078
|
|
$
|
1,170,522
|
||||||
Export
|
96,058
|
108,282
|
115,828
|
|||||||||||
Total Net Sales
|
$
|
1,245,681
|
|
$
|
1,275,360
|
|
$
|
1,286,350
|
||||||
As a Percentage of Net Sales:
|
||||||||||||||
United States
|
92.3
|
%
|
91.5
|
%
|
91.0
|
%
|
||||||||
Export
|
7.7
|
%
|
8.5
|
%
|
9.0
|
%
|
||||||||
Total
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
|
|
· a classified board of directors;
|
|
|
|
· a requirement that special meetings of shareholders be called only by our directors or holders of 25% of the voting power of all shares outstanding and entitled to vote at the meeting;
|
|
|
|
· our board of directors has the power to classify and reclassify any of our unissued shares of capital stock into shares of capital stock with such preferences, rights, powers and restrictions as the board of directors may determine;
|
|
|
|
· the affirmative vote of two thirds of the shares present and entitled to vote is required to amend our bylaws or remove a director; and
|
|
|
|
· under the New York Business Corporation Law, in addition to certain restrictions which may apply to "business combinations" involving us and an "interested shareholder", a plan for our merger or consolidation must be approved by two-thirds of the votes of all outstanding shares entitled to vote thereon. See "Our existing shareholders, if acting together, may be able to exert control over matters requiring shareholder approval."
|
Manufacturing Plants and Warehouses
|
||||
Square
|
||||
Footage
|
Acres
|
|||
('000)
|
||||
Food Group
|
||||
Modesto, California
|
2,213
|
114
|
||
Nampa, Idaho
|
449
|
16
|
||
Payette, Idaho
|
382
|
43
|
||
Princeville, Illinois
|
265
|
478
|
||
Hart, Michigan
|
174
|
75
|
||
Blue Earth, Minnesota
|
286
|
351
|
||
Glencoe, Minnesota
|
646
|
788
|
||
LeSueur, Minnesota
|
63
|
7
|
||
Montgomery, Minnesota
|
559
|
1,010
|
||
Rochester, Minnesota
|
1,078
|
840
|
||
Geneva, New York
|
769
|
602
|
||
Leicester, New York
|
198
|
91
|
||
Marion, New York
|
348
|
181
|
||
Dayton, Oregon
|
82
|
36
|
||
Lebanon, Pennsylvania
|
138
|
16
|
||
Dayton, Washington
|
215
|
28
|
||
Sunnyside, Washington
|
570
|
50
|
||
Yakima, Washington
|
122
|
8
|
||
Baraboo, Wisconsin
|
584
|
11
|
||
Cambria, Wisconsin
|
412
|
406
|
||
Clyman, Wisconsin
|
435
|
724
|
||
Cumberland, Wisconsin
|
389
|
305
|
||
Gillett, Wisconsin
|
320
|
105
|
||
Janesville, Wisconsin
|
1,201
|
302
|
||
Mayville, Wisconsin
|
297
|
367
|
||
Oakfield, Wisconsin
|
229
|
2,277
|
||
Ripon, Wisconsin
|
589
|
75
|
||
Non-Food Group
|
||||
Penn Yan, New York
|
27
|
4
|
||
Total
|
13,040
|
9,310
|
Maximum Number (or
|
||||||||||||||||||||||||
Approximate Dollar
|
||||||||||||||||||||||||
Total Number of Shares
|
Average Price Paid per
|
Total Number of Shares
|
Value) of Shares that
|
|||||||||||||||||||||
Purchased (1)
|
Share
|
Purchased as Part of
|
May Yet Be Purchased
|
|||||||||||||||||||||
Class A
|
Class B
|
Class A
|
Class B
|
Publicly Announced
|
Under the Plans or
|
|||||||||||||||||||
Period
|
Common
|
Common
|
Common
|
Common
|
Plans or Programs (2)
|
Programs (2)
|
||||||||||||||||||
1/01/17 - 1/31/17
|
-
|
-
|
$
|
-
|
$
|
-
|
-
|
|||||||||||||||||
2/01/17 - 2/28/17
|
-
|
-
|
$
|
-
|
$
|
-
|
-
|
|||||||||||||||||
3/01/17 - 3/31/17
|
27,200
|
-
|
$
|
35.53
|
$
|
-
|
-
|
|||||||||||||||||
Total
|
27,200
|
-
|
$
|
35.53
|
$
|
-
|
-
|
1,185,361
|
||||||||||||||||
(1) No shares were purchased under the Company's share repurchase program. The purchases were made in open market transactions
|
||||||||||||||||||||||||
by the Trustees of the Seneca Foods Corporation Employees' Savings Plan, matching Trustees of Dundee Insurance Company, Inc. and
|
||||||||||||||||||||||||
the Seneca Foods, L.L.C. 401(k) Retirement Savings Plan to provide employee contributions under the Plans.
|
||||||||||||||||||||||||
(2) In 2012 the Company's Board of Directors authorized the repurchase of the Company's stock. The number of shares authorized
|
||||||||||||||||||||||||
for repurchase has been increased from time to time, most recently on March 10, 2015 when the repurchase program was
|
||||||||||||||||||||||||
increased to 2,500,000 shares. As of March 31, 2017, the Company has purchased 1,314,639 shares and there remains 1,185,361
|
||||||||||||||||||||||||
shares available to purchase under the program.
|
A. |
Exhibits, Financial Statements, and Supplemental Schedule
|
1. |
Financial Statements ‑ the following consolidated financial statements of the Registrant, included in the 2017 Annual Report, are incorporated by reference in Item 8:
|
2. |
Supplemental Schedule:
|
Schedule II—Valuation and Qualifying Accounts |
19
|
3. |
Exhibits:
|
Exhibit Number |
Description
|
3.1 |
The Company's Restated Certificate of Incorporation, (incorporated by reference to the Company's Current Report on Form 8-K dated August 11, 2010).
|
3.2 |
The Company's Bylaws (incorporated by reference to Exhibit 3.3 to the Company's Quarterly Report on Form 10-Q/A filed August 18, 1995 for the quarter ended July 1, 1995)
|
3.3 |
Amendment to the Company's Bylaws (incorporated by reference to Exhibit 3 to the Company's Current Report on Form 8-K dated November 6, 2007)
|
10.1 |
Third Amended and Restated Loan and Security Agreement dated as of July 5, 2016 by and among Seneca Foods Corporation, Seneca Foods, LLC, Seneca Snack Company, Green Valley Foods, LLC and certain other subsidiaries of Seneca Foods Corporation, the financial institutions party thereto as lenders, Bank of America, N.A., as agent, issuing bank, syndication agent, and lead arranger (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated July 5, 2017).
|
10.2 |
The Loan Agreement as of December 9, 2016 by and among Seneca Foods Corporation, Seneca Foods, LLC, Seneca Snack Company, Green Valley Foods, LLC and certain other subsidiaries of Seneca Foods Corporation and Farm Credit East, ACA (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated December 9, 2016).
|
10.3 |
Indemnification Agreement between the Company and the directors of the Company (incorporated by reference to Exhibit 10 to the Company's Annual report on Form 10-K for the fiscal year ended March 31, 2002)
|
13 |
The material contained in the 2017 Annual Report to Shareholders under the following headings: "Five Year Selected Financial Data", "Management's Discussion and Analysis of Financial Condition and Results of Operations", Consolidated Financial Statements and Notes thereto including Independent Auditors' Report, "Quantitative and Qualitative Disclosures about Market Risk", and "Shareholder Information and Quarterly Results" (filed herewith)
|
21 |
List of Subsidiaries (filed herewith)
|
23 |
Consent of BDO USA, LLP (filed herewith)
|
31.1 |
Certification of Kraig H. Kayser pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
|
31.2 |
Certification of Timothy J. Benjamin as Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
|
32 |
Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)
|
101 |
The following materials from Seneca Foods Corporation's Annual Report on Form 10-K for the year ended March 31, 2017, formatted in XBRL (eXtensible Business Reporting Language): (i) consolidated balance sheets, (ii) consolidated statements of net earnings, (iii) consolidated statements of comprehensive income, (iv) consolidated statements of cash flows, (v) consolidated statement of stockholders' equity and (vi) the notes to the consolidated financial statements
|
Schedule II
|
|||||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS
|
|||||||||||||||||||||
(In thousands)
|
|||||||||||||||||||||
Balance at
|
Charged/
|
Charged to
|
Deductions
|
Balance
|
|||||||||||||||||
beginning
|
(credited)
|
other
|
from
|
at end
|
|||||||||||||||||
of period
|
to income
|
accounts
|
reserve
|
of period
|
|||||||||||||||||
Year-ended March 31, 2017:
|
|||||||||||||||||||||
Allowance for doubtful accounts
|
$
|
111
|
$
|
(61
|
)
|
$
|
¾
|
$
|
¾
|
(a)
|
$
|
50
|
|||||||||
Income tax valuation allowance
|
$
|
1,861
|
$
|
17
|
$
|
118
|
$
|
(105
|
)
|
$
|
1,891
|
||||||||||
Year-ended March 31, 2016:
|
|||||||||||||||||||||
Allowance for doubtful accounts
|
$
|
145
|
$
|
(47
|
)
|
$
|
¾
|
$
|
13
|
(a)
|
$
|
111
|
|||||||||
Income tax valuation allowance
|
$
|
1,787
|
$
|
74
|
$
|
¾
|
$
|
¾
|
$
|
1,861
|
|||||||||||
Year-ended March 31, 2015:
|
|||||||||||||||||||||
Allowance for doubtful accounts
|
$
|
160
|
$
|
45
|
$
|
¾
|
$
|
(60
|
)
|
(a)
|
$
|
145
|
|||||||||
Income tax valuation allowance
|
$
|
390
|
$
|
1,397
|
$
|
¾
|
$
|
¾
|
$
|
1,787
|
|||||||||||
(a) Accounts written off, net of recoveries.
|
|||||||||||||||||||||
SENECA FOODS CORPORATION
/s/Timothy J. Benjamin
Timothy J. Benjamin
Senior Vice President, Chief Financial Officer and Treasurer
|
May 25, 2017
|
Signature
|
Title
|
Date
|
||
/s/Arthur S. Wolcott
Arthur S. Wolcott
|
Chairman and Director
|
May 25, 2017
|
||
/s/Kraig H. Kayser
Kraig H. Kayser
|
President, Chief Executive Officer, Director
|
May 25, 2017
|
||
/s/Timothy J. Benjamin
Timothy J. Benjamin |
Senior Vice President, Chief Financial Officer and Treasurer
|
May 25, 2017
|
||
/s/Jeffrey L. Van Riper
Jeffrey L. Van Riper |
Vice President, Controller, and Secretary (Principal Accounting Officer)
|
May 25, 2017
|
||
/s/Arthur H. Baer
|
Director
|
May 25, 2017
|
||
Arthur H. Baer
|
||||
/s/Peter R. Call
|
Director
|
May 25, 2017
|
||
Peter R. Call
|
||||
/s/John P. Gaylord
|
Director
|
May 25, 2017
|
||
John P. Gaylord | ||||
/s/Susan A. Henry |
Director
|
May 25, 2017
|
||
Susan A. Henry
|
||||
/s/Samuel T. Hubbard, Jr. |
Director
|
May 25, 2017
|
||
Samuel T. Hubbard, Jr.
|
||||
/s/Thomas Paulson
|
Director
|
May 25, 2017
|
||
Thomas Paulson
|
||||
/s/Susan W. Stuart
|
Director
|
May 25, 2017
|
||
Susan W. Stuart
|
Summary of Operations and Financial Condition
|
||||||||||||||||||||
(In thousands of dollars, except per share data and ratios)
|
||||||||||||||||||||
Years ended March 31,
|
2017
|
2016 (a)
|
2015
|
2014
|
2013(b)
|
|||||||||||||||
Net sales
|
$
|
1,245,681
|
$
|
1,275,360
|
$
|
1,286,350
|
$
|
1,340,208
|
$
|
1,276,297
|
||||||||||
Operating income before interest (c)
|
$
|
29,121
|
$
|
88,549
|
$
|
20,354
|
$
|
24,906
|
$
|
72,315
|
||||||||||
Interest expense, net
|
9,672
|
8,044
|
6,862
|
7,564
|
8,867
|
|||||||||||||||
Net earnings (c)
|
12,613
|
54,458
|
9,899
|
13,779
|
41,413
|
|||||||||||||||
Basic earnings per common share (c)
|
$
|
1.27
|
$
|
5.46
|
$
|
0.91
|
$
|
1.24
|
$
|
3.59
|
||||||||||
Diluted earnings per common share (c)
|
1.27
|
5.42
|
0.90
|
1.23
|
3.57
|
|||||||||||||||
Working capital
|
$
|
555,993
|
$
|
274,429
|
$
|
463,545
|
$
|
452,771
|
$
|
446,899
|
||||||||||
Inventories
|
598,056
|
567,707
|
472,412
|
451,250
|
479,730
|
|||||||||||||||
Net property, plant, and equipment
|
237,476
|
188,837
|
185,557
|
183,917
|
188,407
|
|||||||||||||||
Total assets
|
946,019
|
895,327
|
806,448
|
768,853
|
798,456
|
|||||||||||||||
Long-term debt
|
||||||||||||||||||||
less current portion
|
329,138
|
35,967
|
271,634
|
216,239
|
230,016
|
|||||||||||||||
Stockholders' equity
|
434,261
|
405,174
|
351,730
|
393,632
|
367,166
|
|||||||||||||||
Additions to property, plant, and equipment
|
$
|
32,512
|
$
|
9,966
|
$
|
23,734
|
$
|
19,448
|
$
|
16,371
|
||||||||||
Net earnings/average equity
|
3.0
|
%
|
14.4
|
%
|
2.7
|
%
|
3.6
|
%
|
11.5
|
%
|
||||||||||
Earnings before taxes/sales
|
1.6
|
%
|
6.3
|
%
|
1.1
|
%
|
1.3
|
%
|
5.0
|
%
|
||||||||||
Net earnings/sales
|
1.0
|
%
|
4.3
|
%
|
0.8
|
%
|
1.0
|
%
|
3.2
|
%
|
||||||||||
Long-term debt/equity (d)
|
83.7
|
%
|
10.1
|
%
|
77.2
|
%
|
54.9
|
%
|
62.6
|
%
|
||||||||||
Total debt/equity ratio
|
1.2:1
|
1.2:1
|
1.3:1
|
1.0:1
|
1.2:1
|
|||||||||||||||
Current ratio
|
5.2:1
|
1.7:1
|
4.8:1
|
4.5:1
|
3.8:1
|
|||||||||||||||
Total stockholders' equity per equivalent common share (e)
|
$
|
43.63
|
$
|
40.63
|
$
|
34.81
|
$
|
35.25
|
$
|
32.83
|
||||||||||
Stockholders' equity per common share
|
44.20
|
41.15
|
35.33
|
36.12
|
33.62
|
|||||||||||||||
Class A Global Market System
|
||||||||||||||||||||
closing price range
|
42.65-27.03
|
35.78-25.85
|
32.65-25.06
|
36.07-27.80
|
33.63-21.42
|
|||||||||||||||
Class B Global Market System
|
||||||||||||||||||||
closing price range
|
46.00-32.89
|
44.88-32.00
|
41.00-27.91
|
36.29-27.42
|
33.40-21.41
|
|||||||||||||||
Common cash dividends declared per share
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Price earnings ratio
|
29.00
|
6.70
|
34.00
|
25.60
|
9.20
|
|||||||||||||||
(a) The fiscal 2016 financial results include five months and one month of operating activity related to the Gray and Diana acquisitions, respectively.
|
||||||||||||||||||||
(b) The fiscal 2013 financial results include two and one-half months of operating activity related to the Sunnyside acquisition.
|
||||||||||||||||||||
(c) The effect of using the LIFO inventory valuation method in Fiscal 2017 was to increase operating earnings by $6.0 million and
|
||||||||||||||||||||
net earnings by $3.9 million or $0.40 per share ($0.40 diluted). The effect of using the LIFO inventory valuation method in fiscal 2016
|
||||||||||||||||||||
was to increase operating earnings by $24.8 million and net earnings by $16.1 million or $1.62 per share ($1.60 diluted).
|
||||||||||||||||||||
The effect of using the LIFO inventory valuation method in fiscal 2015 was to reduce operating earnings by $10.7 million and net earnings by
|
||||||||||||||||||||
$6.9 million or $0.64 per share ($0.63 diluted). The effect of using the LIFO inventory valuation method in fiscal 2014
|
||||||||||||||||||||
was to reduce operating earnings by $20.4 million and net earnings by $13.2 million or $1.19 per share ($1.19 diluted). The effect of
|
||||||||||||||||||||
using the LIFO inventory valuation method in fiscal 2013 was to increase operating earnings by $4.2 million and net
|
||||||||||||||||||||
earnings by $2.7 million or $0.24 per share ($0.24 diluted).
|
||||||||||||||||||||
(d) The long-term debt to equity percentage for fiscal 2017 and 2015-2013 include the Revolving Credit Facility as discussed
|
||||||||||||||||||||
in Note 4, Long-Term Debt. During fiscal 2016, the Revolving Credit Facility was included in current liabilities. If calculated on a
|
||||||||||||||||||||
comparable basis to other fiscal years, the fiscal 2016 percentage would be 77.2%.
|
||||||||||||||||||||
(e) Equivalent common shares are either common shares or, for convertible preferred shares, the number of common shares that the
|
||||||||||||||||||||
preferred shares are convertible into. See Note 7 of the Notes to Consolidated Financial Statements for conversion details.
|
||||||||||||||||||||
First Quarter
|
Second Quarter
|
Third Quarter
|
Fourth Quarter
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Year ended March 31, 2017:
|
||||||||||||||||
Net sales
|
$
|
252,614
|
$
|
357,247
|
$
|
369,705
|
$
|
266,115
|
||||||||
Gross margin
|
19,975
|
30,212
|
37,475
|
18,721
|
||||||||||||
Net (loss) earnings
|
(62
|
)
|
6,144
|
8,181
|
(1,650
|
)
|
||||||||||
Inventories (at quarter end)
|
586,829
|
771,996
|
656,368
|
598,056
|
||||||||||||
Revolver outstanding (at quarter end)
|
264,000
|
342,935
|
232,586
|
214,781
|
||||||||||||
Year ended March 31, 2016:
|
||||||||||||||||
Net sales
|
$
|
226,258
|
$
|
313,202
|
$
|
432,198
|
$
|
303,702
|
||||||||
Gross margin
|
20,899
|
29,073
|
53,382
|
44,041
|
||||||||||||
Net earnings
|
2,968
|
6,522
|
31,123
|
13,845
|
||||||||||||
Inventories (at quarter end)
|
482,556
|
761,703
|
631,181
|
567,707
|
||||||||||||
Revolver outstanding (at quarter end)
|
197,350
|
304,468
|
309,211
|
271,592
|
Fourth Quarter
|
Year Ended
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Reported end of period:
|
||||||||||||||||
Revolver outstanding
|
$
|
214,781
|
$
|
271,592
|
$
|
214,781
|
$
|
271,592
|
||||||||
Weighted average interest rate
|
2.22
|
%
|
1.95
|
%
|
2.22
|
%
|
1.95
|
%
|
||||||||
Reported during period:
|
||||||||||||||||
Maximum Revolver
|
$
|
245,857
|
$
|
321,000
|
$
|
361,800
|
$
|
323,980
|
||||||||
Average Revolver outstanding
|
$
|
231,946
|
$
|
304,104
|
$
|
275,647
|
$
|
260,886
|
||||||||
Weighted average interest rate
|
2.12
|
%
|
1.92
|
%
|
1.93
|
%
|
1.93
|
%
|
2018
|
$
|
3,495
|
||
2019
|
3,702
|
|||
2020
|
3,217
|
|||
2021
|
5,518
|
|||
2022
|
316,485
|
|||
Thereafter
|
216
|
|||
Total
|
$
|
332,633
|
||
|
Contractual Obligations
|
||||||||||||||||||||
March 31, 2017
|
||||||||||||||||||||
2023
|
||||||||||||||||||||
2018
|
2019-20
|
2021-22
|
and beyond
|
Total
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Long-term debt
|
$
|
3,495
|
$
|
6,919
|
$
|
322,003
|
$
|
216
|
$
|
332,633
|
||||||||||
Interest
|
10,888
|
20,585
|
14,714
|
1,255
|
47,442
|
|||||||||||||||
Operating lease obligations
|
39,794
|
65,745
|
40,672
|
14,136
|
160,347
|
|||||||||||||||
Purchase commitments
|
192,531
|
—
|
—
|
—
|
192,531
|
|||||||||||||||
Capital lease obligations
|
4,839
|
10,258
|
11,082
|
12,854
|
39,033
|
|||||||||||||||
Total
|
$
|
251,547
|
$
|
103,507
|
$
|
388,471
|
$
|
28,461
|
$
|
771,986
|
Classes of similar products/services:
|
2017
|
2016
|
2015
|
|||||||||
(In thousands)
|
||||||||||||
Net Sales:
|
||||||||||||
Green Giant *
|
$
|
119,812
|
$
|
144,310
|
$
|
161,993
|
||||||
Canned vegetables
|
705,297
|
746,501
|
754,556
|
|||||||||
Frozen
|
98,597
|
94,710
|
94,648
|
|||||||||
Fruit
|
286,464
|
253,658
|
234,918
|
|||||||||
Snack
|
12,430
|
12,336
|
11,667
|
|||||||||
Other
|
23,081
|
23,845
|
28,568
|
|||||||||
Total
|
$
|
1,245,681
|
$
|
1,275,360
|
$
|
1,286,350
|
||||||
* Green Giant includes canned and frozen vegetables exclusively for B&G Foods/General Mills.
|
Interest Rate Sensitivity of Long-Term Debt and Short-Term Investments
|
||||||||||||||||||||||||||||||||
March 31, 2017
|
||||||||||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
P A Y M E N T S B Y Y E A R
|
||||||||||||||||||||||||||||||||
Total/
|
Estimated
|
|||||||||||||||||||||||||||||||
Weighted
|
Fair
|
|||||||||||||||||||||||||||||||
2018
|
2019
|
2020
|
2021
|
2022
|
Thereafter
|
Average
|
Value
|
|||||||||||||||||||||||||
Fixed-rate L/T debt:
|
||||||||||||||||||||||||||||||||
Principal cash flows
|
$
|
3,495
|
$
|
3,702
|
$
|
3,217
|
$
|
5,518
|
$
|
1,868
|
$
|
216
|
$
|
18,016
|
$
|
18,309
|
||||||||||||||||
Average interest rate
|
5.55
|
%
|
5.55
|
%
|
5.37
|
%
|
5.74
|
%
|
7.92
|
%
|
12.00
|
%
|
6.02
|
%
|
||||||||||||||||||
Variable-rate L/T debt:
|
||||||||||||||||||||||||||||||||
Principal cash flows
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
314,617
|
$
|
-
|
$
|
314,617
|
$
|
314,617
|
||||||||||||||||
Average interest rate
|
-
|
%
|
-
|
%
|
-
|
%
|
-
|
%
|
2.50
|
%
|
-
|
%
|
2.50
|
%
|
||||||||||||||||||
Average Revolver debt:
|
||||||||||||||||||||||||||||||||
Principal cash flows
|
$
|
275,650
|
$
|
275,650
|
||||||||||||||||||||||||||||
Average interest rate
|
1.88
|
%
|
||||||||||||||||||||||||||||||
Short-term investments:
|
||||||||||||||||||||||||||||||||
Average balance
|
$
|
2,268
|
$
|
2,268
|
||||||||||||||||||||||||||||
Average interest rate
|
0.45
|
%
|
Seneca Foods Corporation and Subsidiaries
|
||||||||||||
(In thousands, except per share amounts)
|
||||||||||||
Years ended March 31,
|
2017
|
2016
|
2015
|
|||||||||
Net sales
|
$
|
1,245,681
|
$
|
1,275,360
|
$
|
1,286,350
|
||||||
Costs and expenses:
|
||||||||||||
Cost of products sold
|
1,139,298
|
1,127,965
|
1,201,987
|
|||||||||
Selling, general, and administrative expense
|
72,996
|
73,515
|
67,381
|
|||||||||
Other operating expense (income), net
|
2,437
|
(24,971
|
)
|
(4,748
|
)
|
|||||||
Plant restructuring
|
1,829
|
10,302
|
1,376
|
|||||||||
Total costs and expenses
|
1,216,560
|
1,186,811
|
1,265,996
|
|||||||||
Operating income
|
29,121
|
88,549
|
20,354
|
|||||||||
(Earnings) loss from equity investment
|
(578
|
)
|
48
|
(628
|
)
|
|||||||
Interest expense, net of interest income of
|
||||||||||||
$54, $18, and $4, respectively
|
9,672
|
8,044
|
6,862
|
|||||||||
Earnings before income taxes
|
20,027
|
80,457
|
14,120
|
|||||||||
Income tax expense
|
7,414
|
25,999
|
4,221
|
|||||||||
Net earnings
|
$
|
12,613
|
$
|
54,458
|
$
|
9,899
|
||||||
Basic earnings per common share
|
$
|
1.27
|
$
|
5.46
|
$
|
0.91
|
||||||
Diluted earnings per common share
|
$
|
1.27
|
$
|
5.42
|
$
|
0.90
|
||||||
See notes to consolidated financial statements.
|
Consolidated Statements of Comprehensive Income (Loss)
|
||||||||||||
Seneca Foods Corporation and Subsidiaries
|
||||||||||||
(In thousands)
|
||||||||||||
Years ended March 31,
|
2017
|
2016
|
2015
|
|||||||||
Comprehensive income (loss):
|
||||||||||||
Net earnings
|
$
|
12,613
|
$
|
54,458
|
$
|
9,899
|
||||||
Change in pension and postretirement benefits
|
||||||||||||
(net of income tax of $10,367, $2,179, and $13,140, respectively)
|
17,221
|
3,408
|
(20,552
|
)
|
||||||||
Total
|
$
|
29,834
|
$
|
57,866
|
$
|
(10,653
|
)
|
|||||
See notes to consolidated financial statements.
|
Seneca Foods Corporation and Subsidiaries
|
||||||||
(In thousands)
|
||||||||
March 31,
|
2017
|
2016
|
||||||
Assets
|
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
11,992
|
$
|
8,602
|
||||
Accounts receivable, less allowance for doubtful accounts
|
||||||||
of $50 and $111, respectively
|
72,080
|
76,788
|
||||||
Assets held for sale
|
-
|
5,025
|
||||||
Inventories:
|
||||||||
Finished products
|
435,247
|
366,911
|
||||||
In process
|
32,528
|
17,122
|
||||||
Raw materials and supplies
|
130,281
|
183,674
|
||||||
598,056
|
567,707
|
|||||||
Refundable income taxes
|
2,471
|
-
|
||||||
Other current assets
|
3,671
|
15,765
|
||||||
Total Current Assets
|
688,270
|
673,887
|
||||||
Deferred income tax asset, net
|
-
|
12,897
|
||||||
Other assets
|
20,273
|
19,706
|
||||||
Property, plant, and equipment:
|
||||||||
Land
|
25,219
|
22,430
|
||||||
Buildings and improvements
|
216,859
|
204,944
|
||||||
Equipment
|
414,859
|
359,927
|
||||||
656,937
|
587,301
|
|||||||
Less accumulated depreciation and amortization
|
419,461
|
398,464
|
||||||
Net property, plant, and equipment
|
237,476
|
188,837
|
||||||
Total Assets
|
$
|
946,019
|
$
|
895,327
|
||||
Liabilities and Stockholders' Equity
|
||||||||
Current Liabilities:
|
||||||||
Notes payable
|
$
|
166
|
$
|
402
|
||||
Accounts payable
|
72,824
|
67,410
|
||||||
Accrued vacation
|
11,867
|
11,792
|
||||||
Accrued payroll
|
6,593
|
9,438
|
||||||
Other accrued expenses
|
32,493
|
27,627
|
||||||
Current portion of long-term debt and capital lease obligations
|
8,334
|
279,815
|
||||||
Income taxes payable
|
-
|
2,974
|
||||||
Total Current Liabilities
|
132,277
|
399,458
|
||||||
Long-term debt, less current portion
|
329,138
|
35,967
|
||||||
Pension liabilities
|
8,193
|
37,798
|
||||||
Other liabilities
|
3,775
|
11,942
|
||||||
Deferred income taxes, net
|
4,181
|
-
|
||||||
Capital lease obligations, less current portion
|
34,194
|
4,988
|
||||||
Total Liabilities
|
511,758
|
490,153
|
||||||
Commitments and contingencies
|
||||||||
Stockholders' Equity:
|
||||||||
Preferred stock
|
1,324
|
1,344
|
||||||
Common stock
|
3,024
|
3,023
|
||||||
Additional paid-in capital
|
97,458
|
97,373
|
||||||
Treasury stock, at cost
|
(66,499
|
)
|
(65,709
|
)
|
||||
Accumulated other comprehensive loss
|
(11,175
|
)
|
(28,396
|
)
|
||||
Retained earnings
|
410,129
|
397,539
|
||||||
Total Stockholders' Equity
|
434,261
|
405,174
|
||||||
Total Liabilities and Stockholders' Equity
|
$
|
946,019
|
$
|
895,327
|
||||
See notes to consolidated financial statements.
|
Seneca Foods Corporation and Subsidiaries
|
||||||||||||
(In thousands)
|
||||||||||||
Years ended March 31,
|
2017
|
2016
|
2015
|
|||||||||
Cash flows from operating activities:
|
||||||||||||
Net earnings
|
$
|
12,613
|
$
|
54,458
|
$
|
9,899
|
||||||
Adjustments to reconcile net earnings to
|
||||||||||||
net cash provided by operations:
|
||||||||||||
Depreciation and amortization
|
24,824
|
21,737
|
21,834
|
|||||||||
Deferred income tax expense (benefit)
|
6,524
|
(533
|
)
|
(612
|
)
|
|||||||
Loss (gain) on the sale of assets
|
177
|
(432
|
)
|
2
|
||||||||
Impairment provision
|
2,881
|
10,302
|
264
|
|||||||||
(Earnings) loss from equity investment
|
(578
|
)
|
48
|
(628
|
)
|
|||||||
401(k) match stock contribution
|
2,017
|
1,820
|
2,123
|
|||||||||
Changes in operating assets and liabilities (net of acquisitions):
|
||||||||||||
Accounts receivable
|
4,708
|
1,289
|
6,373
|
|||||||||
Inventories
|
(30,349
|
)
|
(52,185
|
)
|
(21,162
|
)
|
||||||
Other current assets
|
12,094
|
12,544
|
6,155
|
|||||||||
Accounts payable, accrued expenses,
|
||||||||||||
and other liabilities
|
(5,142
|
)
|
(12,136
|
)
|
(5,690
|
)
|
||||||
Income taxes
|
(5,445
|
)
|
2,246
|
874
|
||||||||
Net cash provided by operating activities
|
24,324
|
39,158
|
19,432
|
|||||||||
Cash flows from investing activities:
|
||||||||||||
Additions to property, plant, and equipment
|
(32,139
|
)
|
(9,864
|
)
|
(26,213
|
)
|
||||||
Purchase of an equity method investment
|
-
|
-
|
(16,242
|
)
|
||||||||
Cash paid for acquisitions (net of cash acquired)
|
-
|
(38,795
|
)
|
-
|
||||||||
Proceeds from the sale of assets
|
427
|
1,026
|
337
|
|||||||||
Net cash used in investing activities
|
(31,712
|
)
|
(47,633
|
)
|
(42,118
|
)
|
||||||
Cash flows from financing activities:
|
||||||||||||
Proceeds from issuance of long-term debt
|
506,831
|
355,932
|
384,510
|
|||||||||
Payments of long-term debt and capital lease obligations
|
(491,494
|
)
|
(333,382
|
)
|
(328,862
|
)
|
||||||
Payments on notes payable
|
(236
|
)
|
(9,501
|
)
|
(2,352
|
)
|
||||||
Change in other assets
|
(1,493
|
)
|
(305
|
)
|
(312
|
)
|
||||||
Purchase of treasury stock
|
(2,807
|
)
|
(6,252
|
)
|
(33,506
|
)
|
||||||
Preferred stock dividends paid
|
(23
|
)
|
(23
|
)
|
(23
|
)
|
||||||
Net cash provided by financing activities
|
10,778
|
6,469
|
19,455
|
|||||||||
Net increase (decrease) in cash and cash equivalents
|
3,390
|
(2,006
|
)
|
(3,231
|
)
|
|||||||
Cash and cash equivalents, beginning of year
|
8,602
|
10,608
|
13,839
|
|||||||||
Cash and cash equivalents, end of year
|
$
|
11,992
|
$
|
8,602
|
$
|
10,608
|
||||||
Supplemental disclosures of cash flow information:
|
||||||||||||
Cash paid during the year for:
|
||||||||||||
Interest
|
$
|
8,352
|
$
|
6,820
|
$
|
5,116
|
||||||
Income taxes
|
6,284
|
24,108
|
6,003
|
|||||||||
Noncash transactions:
|
||||||||||||
Property, plant and equipment issued under capital lease
|
35,559
|
5,313
|
-
|
|||||||||
Assets previously held for sale reclassified back to
|
||||||||||||
property, plant and equipment
|
5,025
|
-
|
-
|
|||||||||
See notes to consolidated financial statements.
|
Seneca Foods Corporation and Subsidiaries
|
||||||||||||||||||||||||
(In thousands, except share amounts)
|
||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||
Additional
|
Other
|
|||||||||||||||||||||||
Preferred
|
Common
|
Paid-In
|
Treasury
|
Comprehensive
|
Retained
|
|||||||||||||||||||
Stock
|
Stock
|
Capital
|
Stock
|
Loss
|
Earnings
|
|||||||||||||||||||
Balance March 31, 2014
|
$
|
5,332
|
$
|
2,958
|
$
|
93,260
|
$
|
(29,894
|
)
|
$
|
(11,252
|
)
|
$
|
333,228
|
||||||||||
Net earnings
|
-
|
-
|
-
|
-
|
-
|
9,899
|
||||||||||||||||||
Cash dividends paid
|
||||||||||||||||||||||||
on preferred stock
|
-
|
-
|
-
|
-
|
-
|
(23
|
)
|
|||||||||||||||||
Equity incentive program
|
-
|
-
|
100
|
-
|
-
|
-
|
||||||||||||||||||
Stock issued for profit sharing plan
|
-
|
1
|
56
|
-
|
-
|
-
|
||||||||||||||||||
Contribution of 401(k) match
|
-
|
-
|
-
|
2,123
|
-
|
-
|
||||||||||||||||||
Purchase of treasury stock
|
-
|
-
|
-
|
(33,506
|
)
|
-
|
-
|
|||||||||||||||||
Preferred stock conversion
|
(3,213
|
)
|
51
|
3,162
|
-
|
-
|
-
|
|||||||||||||||||
Change in pension and postretirement
|
||||||||||||||||||||||||
benefits adjustment (net of tax $13,140)
|
-
|
-
|
-
|
-
|
(20,552
|
)
|
-
|
|||||||||||||||||
Balance March 31, 2015
|
2,119
|
3,010
|
96,578
|
(61,277
|
)
|
(31,804
|
)
|
343,104
|
||||||||||||||||
Net earnings
|
-
|
-
|
-
|
-
|
-
|
54,458
|
||||||||||||||||||
Cash dividends paid
|
||||||||||||||||||||||||
on preferred stock
|
-
|
-
|
-
|
-
|
-
|
(23
|
)
|
|||||||||||||||||
Equity incentive program
|
-
|
-
|
33
|
-
|
-
|
-
|
||||||||||||||||||
Contribution of 401(k) match
|
-
|
-
|
-
|
1,820
|
-
|
-
|
||||||||||||||||||
Purchase of treasury stock
|
-
|
-
|
-
|
(6,252
|
)
|
-
|
-
|
|||||||||||||||||
Preferred stock conversion
|
(775
|
)
|
13
|
762
|
-
|
-
|
-
|
|||||||||||||||||
Change in pension and postretirement
|
||||||||||||||||||||||||
benefits adjustment (net of tax $2,179)
|
-
|
-
|
-
|
-
|
3,408
|
-
|
||||||||||||||||||
Balance March 31, 2016
|
1,344
|
3,023
|
97,373
|
(65,709
|
)
|
(28,396
|
)
|
397,539
|
||||||||||||||||
Net earnings
|
-
|
-
|
-
|
-
|
-
|
12,613
|
||||||||||||||||||
Cash dividends paid
|
||||||||||||||||||||||||
on preferred stock
|
-
|
-
|
-
|
-
|
-
|
(23
|
)
|
|||||||||||||||||
Equity incentive program
|
-
|
-
|
66
|
-
|
-
|
-
|
||||||||||||||||||
Contribution of 401(k) match
|
-
|
-
|
-
|
2,017
|
-
|
-
|
||||||||||||||||||
Purchase of treasury stock
|
-
|
-
|
-
|
(2,807
|
)
|
-
|
-
|
|||||||||||||||||
Preferred stock conversion
|
(20
|
)
|
1
|
19
|
-
|
-
|
-
|
|||||||||||||||||
Change in pension and postretirement
|
||||||||||||||||||||||||
benefits adjustment (net of tax $10,367)
|
-
|
-
|
-
|
-
|
17,221
|
-
|
||||||||||||||||||
Balance March 31, 2017
|
$
|
1,324
|
$
|
3,024
|
$
|
97,458
|
$
|
(66,499
|
)
|
$
|
(11,175
|
)
|
$
|
410,129
|
Preferred Stock
|
Common Stock
|
|||||||||||||||||||||||
6
|
%
|
10
|
%
|
|||||||||||||||||||||
Cumulative Par
|
Cumulative Par
|
2003 Series
|
||||||||||||||||||||||
Value $.25
|
Value $.025
|
Participating
|
Participating
|
Class A
|
Class B
|
|||||||||||||||||||
Callable at Par
|
Convertible
|
Convertible Par
|
Convertible Par
|
Common Stock
|
Common Stock
|
|||||||||||||||||||
Voting
|
Voting
|
Value $.025
|
Value $.025
|
Par Value $.25
|
Par Value $.25
|
|||||||||||||||||||
Shares authorized and designated:
|
||||||||||||||||||||||||
March 31, 2017
|
200,000
|
1,400,000
|
90,826
|
500
|
20,000,000
|
10,000,000
|
||||||||||||||||||
Shares outstanding:
|
||||||||||||||||||||||||
March 31, 2015
|
200,000
|
807,240
|
90,826
|
50,500
|
7,926,280
|
1,967,958
|
||||||||||||||||||
March 31, 2016
|
200,000
|
807,240
|
90,826
|
500
|
7,918,069
|
1,894,599
|
||||||||||||||||||
March 31, 2017
|
200,000
|
807,240
|
89,251
|
500
|
7,910,508
|
1,884,839
|
||||||||||||||||||
Stock amount
|
$
|
50
|
$
|
202
|
$
|
1,064
|
$
|
8
|
$
|
2,520
|
$
|
504
|
||||||||||||
See notes to consolidated financial statements.
|
·
|
Level 1- Quoted prices for identical instruments in active markets.
|
·
|
Level 2- Quoted prices for similar instruments; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable.
|
·
|
Level 3- Model-derived valuations in which one or more inputs or value-drivers are both significant to the fair value measurement and unobservable.
|
Years ended March 31,
|
2017
|
2016
|
2015
|
|||||||||
(In thousands, except per share amounts)
|
||||||||||||
Basic
|
||||||||||||
Net earnings
|
$
|
12,613
|
$
|
54,458
|
$
|
9,899
|
||||||
Deduct preferred stock dividends
|
23
|
23
|
23
|
|||||||||
Undistributed earnings
|
12,590
|
54,435
|
9,876
|
|||||||||
Earnings attributable to participating
|
||||||||||||
preferred shareholders
|
115
|
544
|
160
|
|||||||||
Earnings attributable to common
|
||||||||||||
shareholders
|
$
|
12,475
|
$
|
53,891
|
$
|
9,716
|
||||||
Weighted average common shares
|
||||||||||||
outstanding
|
9,785
|
9,878
|
10,690
|
|||||||||
Basic earnings per common share
|
$
|
1.27
|
$
|
5.46
|
$
|
0.91
|
||||||
Diluted
|
||||||||||||
Earnings attributable to common
|
||||||||||||
shareholders
|
$
|
12,475
|
$
|
53,891
|
$
|
9,716
|
||||||
Add dividends on convertible
|
||||||||||||
preferred stock
|
20
|
20
|
20
|
|||||||||
Earnings attributable to common
|
||||||||||||
stock on a diluted basis
|
$
|
12,495
|
$
|
53,911
|
$
|
9,736
|
||||||
Weighted average common shares
|
||||||||||||
outstanding-basic
|
9,785
|
9,878
|
10,690
|
|||||||||
Additional shares to be issued related to
|
||||||||||||
the equity compensation plan
|
2
|
3
|
5
|
|||||||||
Additional shares to be issued under
|
||||||||||||
full conversion of preferred stock
|
67
|
67
|
67
|
|||||||||
Total shares for diluted
|
9,854
|
9,948
|
10,762
|
|||||||||
Diluted earnings per share
|
$
|
1.27
|
$
|
5.42
|
$
|
0.90
|
||||||
Purchase Price (net of cash received)
|
$
|
23.8
|
||
Allocated as follows:
|
||||
Current assets
|
$
|
36.6
|
||
Other long-term assets
|
1.4
|
|||
Property, plant and equipment
|
13.7
|
|||
Deferred taxes
|
(7.7
|
)
|
||
Current liabilities
|
(16.0
|
)
|
||
Other long-term liabilities
|
(4.2
|
)
|
||
Total
|
$
|
23.8
|
Purchase Price (net of cash received)
|
$
|
15.0
|
||
Allocated as follows:
|
||||
Current assets
|
$
|
16.8
|
||
Other long-term assets
|
0.5
|
|||
Property, plant and equipment
|
0.9
|
|||
Deferred taxes
|
0.4
|
|||
Current liabilities
|
(3.6
|
)
|
||
Total
|
$
|
15.0
|
4. Long-Term Debt
|
||||||||
2017
|
2016
|
|||||||
(In thousands)
|
||||||||
Revolving credit facility,
|
||||||||
2.22% and 1.95%, due through 2022
|
$
|
214,781
|
$
|
271,592
|
||||
Farm Credit term loan,
|
||||||||
3.38% due 2022
|
99,836
|
-
|
||||||
Secured Industrial Revenue
|
||||||||
Development Bonds, 3.02%
|
-
|
22,630
|
||||||
Secured promissory note,
|
||||||||
6.98%, due through 2022
|
10,340
|
12,114
|
||||||
Lease financing obligations,
|
||||||||
2.62%, due through 2020
|
4,679
|
5,313
|
||||||
Secured promissory note,
|
||||||||
6.35%, due through 2020
|
1,782
|
2,474
|
||||||
2.00%, due through 2021
|
999
|
1,200
|
||||||
Other
|
216
|
216
|
||||||
332,633
|
315,539
|
|||||||
Less current portion
|
3,495
|
279,572
|
||||||
$
|
329,138
|
$
|
35,967
|
Years ending March 31:
|
||||
2018
|
$
|
3,495
|
||
2019
|
3,702
|
|||
2020
|
3,217
|
|||
2021
|
5,518
|
|||
2022
|
316,485
|
|||
Thereafter
|
216
|
|||
Total
|
$
|
332,633
|
2017
|
2016
|
|||||||
Land
|
-
|
-
|
||||||
Buildings
|
5,313
|
5,313
|
||||||
Equipment
|
35,597
|
-
|
||||||
40,910
|
5,313
|
|||||||
Less accumulated amortization
|
1,706
|
89
|
||||||
39,204
|
5,224
|
Years ending March 31:
|
Operating
|
Capital
|
||||||||
2018
|
$
|
39,794
|
$
|
6,307
|
||||||
2019
|
35,297
|
6,306
|
||||||||
2020
|
30,448
|
6,307
|
||||||||
2021
|
24,506
|
6,307
|
||||||||
2022
|
16,166
|
6,307
|
||||||||
2023-2031 |
|
14,136
|
14,046
|
|||||||
Total minimum payment required
|
$
|
160,347
|
$
|
45,580
|
||||||
Less interest
|
6,547
|
|||||||||
Present value of minimum lease payments
|
39,033
|
|||||||||
Amount due within one year
|
4,839
|
|||||||||
Long-term capital lease obligation
|
$
|
34,194
|
6. Income Taxes
|
||||||||||||
The Company files a consolidated federal and various state income tax returns. The provision for income taxes is as follows:
|
||||||||||||
2017
|
2016
|
2015
|
||||||||||
(In thousands)
|
||||||||||||
Current:
|
||||||||||||
Federal
|
$
|
395
|
$
|
24,579
|
$
|
4,380
|
||||||
State
|
495
|
1,953
|
453
|
|||||||||
890
|
26,532
|
4,833
|
||||||||||
Deferred:
|
||||||||||||
Federal
|
6,259
|
(689
|
)
|
(925
|
)
|
|||||||
State
|
265
|
156
|
313
|
|||||||||
6,524
|
(533
|
)
|
(612
|
)
|
||||||||
Total income taxes
|
$
|
7,414
|
$
|
25,999
|
$
|
4,221
|
A reconciliation of the expected U.S. statutory rate to the effective rate follows:
|
|||||||
2017
|
2016
|
2015
|
|||||
Computed (expected tax rate)
|
35.0
|
%
|
35.0
|
%
|
35.0
|
%
|
|
State income taxes (net of federal tax benefit)
|
4.1
|
2.7
|
2.9
|
||||
State tax credits
|
(2.5)
|
(0.9)
|
(8.7)
|
||||
Federal credits
|
(1.8)
|
(0.4)
|
(2.4)
|
||||
Manufacturer's deduction
|
(1.7)
|
(3.9)
|
(5.0)
|
||||
(Reversal of) addition to uncertain tax positions
|
0.2
|
0.2
|
(1.0)
|
||||
Other permanent differences not deductible
|
2.4
|
(0.2)
|
0.7
|
||||
Change in valuation allowance
|
0.2
|
0.1
|
9.9
|
||||
Other
|
1.1
|
(0.3)
|
(1.5)
|
||||
Effective income tax rate
|
37.0
|
%
|
32.3
|
%
|
29.9
|
%
|
2017
|
2016
|
|||||||
(In thousands)
|
||||||||
Deferred income tax assets:
|
||||||||
Future tax credits
|
$
|
3,827
|
$
|
3,807
|
||||
Employee benefits
|
3,119
|
3,174
|
||||||
Insurance
|
924
|
881
|
||||||
Other comprehensive loss
|
7,135
|
18,154
|
||||||
Interest
|
32
|
21
|
||||||
Prepaid revenue
|
444
|
571
|
||||||
Other
|
472
|
2,804
|
||||||
Severance
|
-
|
3
|
||||||
15,953
|
29,415
|
|||||||
Deferred income tax liabilities:
|
||||||||
Property basis and depreciation difference
|
12,786
|
9,330
|
||||||
481(a) adjustment
|
429
|
880
|
||||||
Inventory valuation
|
1,032
|
1,247
|
||||||
Intangibles
|
213
|
235
|
||||||
Earnings from equity investment
|
193
|
69
|
||||||
Pension
|
3,590
|
2,896
|
||||||
18,243
|
14,657
|
|||||||
Valuation allowance - non-current
|
1,891
|
1,861
|
||||||
Net deferred income tax (liability) asset
|
$
|
(4,181
|
)
|
$
|
12,897
|
2017
|
2016
|
|||||||
(In thousands)
|
||||||||
Beginning balance
|
$
|
694
|
$
|
464
|
||||
Tax positions related to current year:
|
||||||||
Additions
|
67
|
291
|
||||||
Tax positions related to prior years:
|
||||||||
Additions
|
-
|
241
|
||||||
Reductions
|
(46
|
)
|
(7
|
)
|
||||
Settlements
|
-
|
(166
|
)
|
|||||
Lapses in statues of limitations
|
-
|
(129
|
)
|
|||||
Balance as of March 31,
|
$
|
715
|
$
|
694
|
2017
|
2016
|
|||||||
(In thousands)
|
||||||||
Change in Benefit Obligation
|
||||||||
Benefit obligation at beginning of year
|
$
|
214,036
|
$
|
212,908
|
||||
Service cost
|
8,375
|
10,502
|
||||||
Interest cost
|
7,633
|
8,902
|
||||||
Plan amendments
|
92
|
-
|
||||||
Actuarial (gain) loss
|
(3,201
|
)
|
(11,340
|
)
|
||||
Benefit payments and expenses
|
(10,913
|
)
|
(6,936
|
)
|
||||
Benefit obligation at end of year
|
$
|
216,022
|
$
|
214,036
|
||||
Change in Plan Assets
|
||||||||
Fair value of plan assets at beginning of year
|
$
|
176,238
|
$
|
157,948
|
||||
Actual gain on plan assets
|
34,304
|
2,126
|
||||||
Employer contributions
|
8,200
|
23,100
|
||||||
Benefit payments and expenses
|
(10,913
|
)
|
(6,936
|
)
|
||||
Fair value of plan assets at end of year
|
$
|
207,829
|
$
|
176,238
|
||||
Unfunded Status
|
$
|
(8,193
|
)
|
$
|
(37,798
|
)
|
2017
|
2016
|
|||||||
(In thousands)
|
||||||||
Amounts Recognized in Accumulated Other
|
||||||||
Comprehensive Pre-Tax Loss
|
||||||||
Prior service cost
|
$
|
(826
|
)
|
$
|
(843
|
)
|
||
Net loss
|
(17,580
|
)
|
(45,248
|
)
|
||||
Accumulated other comprehensive pre-tax loss
|
$
|
(18,406
|
)
|
$
|
(46,091
|
)
|
Pension and
|
||||
post retirement plan
|
||||
adjustments, net
|
||||
of tax
|
||||
(In thousands)
|
||||
Accumulated Other Comprehensive Loss
|
||||
Balance at March 31, 2016
|
$
|
(28,396
|
)
|
|
Other comprehensive gain before reclassifications
|
17,221
|
|||
Reclassified from accumulated other comprehensive loss
|
-
|
|||
Net current period other comprehensive loss
|
17,221
|
|||
Balance at March 31, 2017
|
$
|
(11,175
|
)
|
The following table provides the components of net periodic benefit cost for the Plan for fiscal years 2017, 2016, and 2015:
|
||||||||||||
2017
|
2016
|
2015
|
||||||||||
(In thousands)
|
||||||||||||
Service cost
|
$
|
8,375
|
$
|
10,502
|
$
|
8,515
|
||||||
Interest cost
|
7,633
|
8,902
|
8,236
|
|||||||||
Expected return on plan assets
|
(12,696
|
)
|
(11,685
|
)
|
(11,360
|
)
|
||||||
Amortization of net loss
|
2,858
|
3,854
|
350
|
|||||||||
Prior service cost
|
109
|
109
|
-
|
|||||||||
Net periodic benefit cost
|
$
|
6,279
|
$
|
11,682
|
$
|
5,741
|
2017
|
2016
|
|||||||
Weighted Average Assumptions for Balance Sheet Liability at End of Year:
|
||||||||
Discount rate - projected benefit obligation
|
4.35
|
%
|
4.36
|
%
|
||||
Expected return on plan assets
|
7.25
|
%
|
7.25
|
%
|
||||
Rate of compensation increase
|
3.00
|
%
|
3.00
|
%
|
||||
Weighted Average Assumptions for Benefit Cost at Beginning of Year:
|
||||||||
Discount rate - pension expense
|
4.34
|
%
|
4.15
|
%
|
||||
Discount rate - service cost
|
4.67
|
%
|
4.15
|
%
|
||||
Discount rate - interest cost
|
3.62
|
%
|
4.15
|
%
|
||||
Expected return on plan assets
|
7.25
|
%
|
7.25
|
%
|
||||
Rate of compensation increase
|
3.00
|
%
|
3.00
|
%
|
Notes to Consolidated Financial Statements
The Company's plan assets consist of the following:
|
Target
|
Percentage of Plan
|
|||||||||||
Allocation
|
Assets at March 31,
|
|||||||||||
2018
|
2017
|
2016
|
||||||||||
Plan Assets
|
||||||||||||
Equity securities
|
99
|
%
|
99
|
%
|
99
|
%
|
||||||
Debt securities
|
-
|
-
|
-
|
|||||||||
Real estate
|
-
|
-
|
-
|
|||||||||
Cash
|
1
|
1
|
1
|
|||||||||
Total
|
100
|
%
|
100
|
%
|
100
|
%
|
||||||
2017
|
2016
|
|||||||
Market Value
|
Market Value
|
|||||||
(In thousands)
|
||||||||
Assets by Industry Type
|
||||||||
Asset Category
|
||||||||
Cash and cash equivalents:
|
||||||||
Money market funds
|
$
|
1,585
|
$
|
1,497
|
||||
Total cash and cash equivalents
|
1,585
|
1,497
|
||||||
Common equity securities:
|
||||||||
Materials
|
10,952
|
9,379
|
||||||
Industrials
|
25,383
|
30,355
|
||||||
Telecommunication services
|
18,060
|
9,325
|
||||||
Consumer staples
|
43,641
|
33,048
|
||||||
Energy
|
16,110
|
14,658
|
||||||
Financials
|
33,818
|
34,891
|
||||||
Health Care
|
17,587
|
10,538
|
||||||
Information technology
|
13,887
|
9,681
|
||||||
Utilities
|
26,806
|
22,866
|
||||||
Total common equity securities
|
206,244
|
174,741
|
||||||
Total assets
|
$
|
207,829
|
$
|
176,238
|
Estimated future benefit payments reflecting expected future
|
||||||
service for the fiscal years ending March 31 (in thousands):
|
||||||
2018
|
$
|
7,784
|
||||
2019
|
8,409
|
|||||
2020
|
8,995
|
|||||
2021
|
9,682
|
|||||
2022
|
10,295
|
|||||
2023-2027 |
|
61,816
|
||||
9. Fair Value of Financial Instruments
|
||||||||||||||||
The carrying amount and estimated fair values of the Company's debt are summarized as follows:
|
||||||||||||||||
2017
|
2016
|
|||||||||||||||
Carrying
|
Estimated
|
Carrying
|
Estimated
|
|||||||||||||
Amount
|
Fair Value
|
Amount
|
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Long-term debt, including
|
||||||||||||||||
current portion
|
$
|
332,633
|
$
|
332,926
|
$
|
315,539
|
$
|
315,478
|
||||||||
Capital leases, including
|
||||||||||||||||
current portion
|
$
|
39,033
|
$
|
37,505
|
$
|
5,231
|
$
|
5,076
|
2017
|
2016
|
2015
|
||||||||||
(In thousands)
|
||||||||||||
Finished products
|
$
|
534,995
|
$
|
467,337
|
$
|
414,154
|
||||||
In process
|
35,982
|
25,855
|
22,651
|
|||||||||
Raw materials and supplies
|
160,333
|
213,790
|
199,674
|
|||||||||
731,310
|
706,982
|
636,479
|
||||||||||
Less excess of FIFO cost over LIFO cost
|
133,254
|
139,275
|
164,067
|
|||||||||
Total inventories
|
$
|
598,056
|
$
|
567,707
|
$
|
472,412
|
Fruit and
|
||||||||||||||||
Vegetable
|
Snack
|
Other
|
Total
|
|||||||||||||
(In thousands)
|
||||||||||||||||
2017:
|
||||||||||||||||
Net sales
|
$
|
1,210,170
|
$
|
12,430
|
$
|
23,081
|
$
|
1,245,681
|
||||||||
Operating income
|
26,543
|
945
|
1,633
|
29,121
|
||||||||||||
Interest expense, net
|
9,518
|
17
|
137
|
9,672
|
||||||||||||
Income tax expense
|
6,475
|
355
|
584
|
7,414
|
||||||||||||
Identifiable assets
|
940,300
|
2,833
|
2,886
|
946,019
|
||||||||||||
Capital expenditures
|
30,969
|
225
|
1,318
|
32,512
|
||||||||||||
Depreciation and amortization
|
23,525
|
346
|
953
|
24,824
|
||||||||||||
2016:
|
||||||||||||||||
Net sales
|
$
|
1,239,179
|
$
|
12,336
|
$
|
23,845
|
$
|
1,275,360
|
||||||||
Operating income
|
87,120
|
1,164
|
265
|
88,549
|
||||||||||||
Interest expense, net
|
7,923
|
18
|
103
|
8,044
|
||||||||||||
Income tax expense
|
25,551
|
372
|
76
|
25,999
|
||||||||||||
Identifiable assets
|
888,968
|
2,697
|
3,662
|
895,327
|
||||||||||||
Capital expenditures
|
9,232
|
52
|
682
|
9,966
|
||||||||||||
Depreciation and amortization
|
20,438
|
351
|
948
|
21,737
|
||||||||||||
2015:
|
||||||||||||||||
Net sales
|
$
|
1,246,115
|
$
|
11,667
|
$
|
28,568
|
$
|
1,286,350
|
||||||||
Operating income
|
18,865
|
779
|
710
|
20,354
|
||||||||||||
Interest expense, net
|
6,778
|
12
|
72
|
6,862
|
||||||||||||
Income tax expense
|
3,775
|
225
|
221
|
4,221
|
||||||||||||
Identifiable assets
|
798,640
|
3,235
|
4,573
|
806,448
|
||||||||||||
Capital expenditures
|
22,177
|
157
|
1,400
|
23,734
|
||||||||||||
Depreciation and amortization
|
20,445
|
367
|
1,022
|
21,834
|
Classes of similar products/services:
|
2017
|
2016
|
2015
|
|||||||||
(In thousands)
|
||||||||||||
Net Sales:
|
||||||||||||
Green Giant *
|
$
|
119,812
|
$
|
144,310
|
$
|
161,993
|
||||||
Canned vegetables
|
705,297
|
746,501
|
754,556
|
|||||||||
Frozen
|
98,597
|
94,710
|
94,648
|
|||||||||
Fruit
|
286,464
|
253,658
|
234,918
|
|||||||||
Snack
|
12,430
|
12,336
|
11,667
|
|||||||||
Other
|
23,081
|
23,845
|
28,568
|
|||||||||
Total
|
$
|
1,245,681
|
$
|
1,275,360
|
$
|
1,286,350
|
||||||
* Green Giant includes canned and frozen vegetables exclusively for B&G Foods.
|
Long-Lived
|
Other
|
|||||||||||||||
Severance
|
Asset
|
Costs
|
||||||||||||||
Payable
|
Impairment
|
Payable
|
Total
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Balance March 31, 2014
|
$
|
10
|
$
|
-
|
$
|
-
|
$
|
10
|
||||||||
Charge to expense
|
842
|
264
|
270
|
1,376
|
||||||||||||
Cash payments/write offs
|
(137
|
)
|
-
|
-
|
(137
|
)
|
||||||||||
Balance March 31, 2015
|
715
|
264
|
270
|
1,249
|
||||||||||||
Charge to expense
|
162
|
5,065
|
5,075
|
10,302
|
||||||||||||
Cash payments/write offs
|
(877
|
)
|
(354
|
)
|
(1,448
|
)
|
(2,679
|
)
|
||||||||
Balance March 31, 2016
|
-
|
4,975
|
3,897
|
8,872
|
||||||||||||
Charge to expense
|
1,578
|
(384
|
)
|
635
|
1,829
|
|||||||||||
Cash payments/write offs
|
(1,541
|
)
|
182
|
(4,227
|
)
|
(5,586
|
)
|
|||||||||
Balance March 31, 2017
|
$
|
37
|
$
|
4,773
|
$
|
305
|
$
|
5,115
|
Class A:
|
2017
|
2016
|
||||||||||||||
Quarter
|
High
|
Low
|
High
|
Low
|
||||||||||||
First
|
$
|
36.50
|
$
|
29.32
|
$
|
31.63
|
$
|
27.60
|
||||||||
Second
|
40.88
|
27.03
|
31.09
|
26.00
|
||||||||||||
Third
|
42.65
|
27.90
|
31.00
|
25.85
|
||||||||||||
Fourth
|
41.52
|
34.30
|
35.78
|
26.90
|
||||||||||||
Class B:
|
2017
|
2016
|
||||||||||||||
Quarter
|
High
|
Low
|
High
|
Low
|
||||||||||||
First
|
$
|
38.50
|
$
|
32.89
|
$
|
34.93
|
$
|
32.00
|
||||||||
Second
|
46.00
|
36.00
|
43.85
|
32.00
|
||||||||||||
Third
|
44.70
|
33.00
|
36.00
|
32.00
|
||||||||||||
Fourth
|
44.00
|
38.20
|
44.88
|
32.00
|
First
|
Second
|
Third
|
Fourth
|
|||||||||||||
(In thousands, except per share data)
|
||||||||||||||||
Year ended March 31, 2017:
|
||||||||||||||||
Net sales
|
$
|
252,614
|
$
|
357,247
|
$
|
369,705
|
$
|
266,115
|
||||||||
Gross margin
|
19,975
|
30,212
|
37,475
|
18,721
|
||||||||||||
Net (loss) earnings
|
(62
|
)
|
6,144
|
8,181
|
(1,650
|
)
|
||||||||||
Basic earnings per common share
|
(0.01
|
)
|
0.62
|
0.83
|
(0.17
|
)
|
||||||||||
Diluted earnings per common share
|
(0.01
|
)
|
0.62
|
0.82
|
(0.17
|
)
|
||||||||||
Year ended March 31, 2016:
|
||||||||||||||||
Net sales
|
$
|
226,258
|
$
|
313,202
|
$
|
432,198
|
$
|
303,702
|
||||||||
Gross margin
|
20,899
|
29,073
|
53,382
|
44,041
|
||||||||||||
Net earnings
|
2,968
|
6,522
|
31,123
|
13,845
|
||||||||||||
Basic earnings per common share
|
0.30
|
0.65
|
3.12
|
1.39
|
||||||||||||
Diluted earnings per common share
|
0.29
|
0.65
|
3.10
|
1.38
|
||||||||||||
Name
|
State
|
Dundee Insurance Company, Inc.
Gray & Company Gray Glace Products Company
|
Utah
Oregon Oregon |
Green Valley Foods LLC
|
Delaware
|
Lebanon Valley Cold Storage, LLC
|
Pennsylvania
|
Lebanon Valley Cold Storage, LP
|
Pennsylvania
|
Marion Foods, Inc.
Portland Food Products Company
|
New York
Oregon |
Seneca Foods, LLC
|
Delaware
|
Seneca Snack Company
|
Washington
|
1. |
I have reviewed this annual report on Form 10-K of Seneca Foods Corporation;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
|
4. |
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d) |
Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and
|
5. |
The Registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):
|
(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and
|
(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.
|
Dated: May 25, 2017
|
By: /s/Kraig H. Kayser
|
Kraig H. Kayser
President and Chief Executive Officer
|
1. |
I have reviewed this annual report on Form 10-K of Seneca Foods Corporation;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
|
4. |
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d) |
Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and
|
5. |
The Registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):
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(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and
|
(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.
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Dated: May 25, 2017
|
By: /s/ Timothy J. Benjamin
|
Timothy J. Benjamin
Senior Vice President, Chief Financial Officer and Treasurer
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
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By: /s/Kraig H. Kayser
|
|
Kraig H. Kayser
President and Chief Executive Officer
May 25, 2017
|
By: /s/Timothy J. Benjamin
|
|
Senior Vice President, Chief Financial Officer and Treasurer
May 25, 2017
|
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