EX-99.1 2 h14872exv99w1.txt PRESS RELEASE DATED APRIL 29, 2004 EXHIBIT 99.1 PRESS RELEASE Contact: E. Wayne Ray, Jr. Chief Financial Officer (713) 529-3251 Elizabeth B. Woodard Vice President & General Counsel (713) 525-9502 For release at 7:00 a.m. CDT RIVIANA FOODS REPORTS THIRD QUARTER EARNINGS Houston, Texas (April 29, 2004) -- RIVIANA FOODS INC. (NASDAQ/NMS:RVFD) reported earnings of $0.43 per diluted share for the third quarter ended March 28, 2004, compared to earnings of $0.46 per diluted share for the same period last year. Net income was $6.4 million, on sales of $116.1 million, versus net income of $6.7 million, on sales of $99.4 million, for the third quarter of fiscal 2003. Operating income for the quarter was $9.1 million, up 6% from the $8.6 million reported for the prior year. For the nine months, Riviana earned $18.1 million, or diluted earnings per share of $1.22, on sales of $330.6 million. This compares to earnings of $21.5 million, or diluted earnings per share of $1.48, on sales of $292.8 million last year. Net income for the first nine months of fiscal 2003 reflected a $1.4 million, or $0.10 per diluted share, reduction in tax expense resulting from the favorable resolution of a foreign tax matter. Excluding this one-time benefit, net income for the period was $1.38 per diluted share. Operating income for the nine-month period of fiscal 2004 was $24.6 million compared $26.5 million in fiscal 2003. Riviana's domestic rice business experienced another challenging quarter. Price increases implemented in the first half of fiscal 2004 resulted in improved third quarter margins, however, the popularity of low-carbohydrate diets continued to impact retail rice volumes. The combined result of higher rice costs and sales mix yielded a 5% decline in operating income for the quarter, to $8.3 million, in spite of a 19% increase in sales, to $74.6 million. Retail unit volumes sales were down 2% -more- Page 2 with the high-margin instant and prepared rice categories experiencing a 5% decline. Foodservice volumes were up 16% and lower margin export/commodity volumes were up 51%. Industrial specialty volumes were down 10%. The Company's Central American operations reported strong sales and higher operating income for the third quarter. Sales increased 17%, to $25.2 million and operating income was up 32%, to $3.3 million. At Kern, volumes of fruit juices and refried beans were 22% higher, and volumes of cookies and crackers at Pozuelo increased 19%. In Europe, operating income was $0.3 million on sales of $14.9 million for the third quarter. The 11% increase in sales reflected volume gains in industrial rice, frozen foods and dried fruits as well as favorable currency exchange rates. In future quarters, Riviana will no longer report sales for its European operations due to the creation of a new joint venture, S&B Herba Foods Limited. The transaction, which closed effective March 29, 2004, combines Riviana's U.K. subsidiary, Stevens & Brotherton (S&B), with Joseph Heap & Sons, Ltd., a subsidiary of Ebro Puleva, S.A. S&B Herba Foods, which is owned 51% by Ebro Puleva and 49% by Riviana, will be reported by Riviana as an unconsolidated affiliate. "We are pleased by the growth in our international segments," said Joseph A. Hafner, Jr., president and chief executive officer. "Our Central American operations are reporting strong results under extremely competitive market conditions, and our European business is reaping the benefits of increased volumes and efficiency. On April 16, 2004, S&B Herba Foods acquired Vogan & Company Limited, a miller and processor of rice and pulses located in Cambridge, England. This acquisition further strengthens our position in the U.K. adding more processing capability and distribution particularly in the ethnic rice and industrial rice sectors. "During the third quarter, we began to see improvements in our domestic rice business resulting from increased pricing to cover significantly higher rice costs," he continued. "While our domestic business reported a 5% decline in operating income, this is a significant improvement over the 32% decline reported in the second quarter." Hafner also noted that the impact of low-carbohydrate diets has been material to Riviana and the industry in general. "Currently, the rice category, except for brown rice, is declining," he said. "We are continuing to develop strategies to mitigate the impact of these debatable diet plans, including communicating the importance of a more balanced approach to nutrition through our 'Eat Rice, Eat -more- Page 3 Right' advertising and public relations campaign." For the quarter, net interest income decreased by $0.2 million due to a reduction in invested cash, and other income was approximately even with the prior year. As previously reported, Riviana will pay a quarterly cash dividend of $0.25 per common share on July 6, 2004, to stockholders of record June 1, 2004. Riviana will hold its quarterly conference call today, April 29, 2004, at 10:30 a.m. The call may be heard live on the Internet. To access the call, at the URL prompt, enter http://audioevent.mshow.com/163671. The conference call will be archived and available for replay using the same instructions until May 29, 2004. Based in Houston, Texas, Riviana Foods Inc. is one of the largest processors, marketers and distributors of branded and private label rice products in the United States. Principal brands include MAHATMA(R), Carolina(R) and SUCCESS(R). The Company has additional food operations in Central America and Europe. This press release includes forward-looking statements under the rules of the Securities and Exchange Commission. Although the Company believes that the expectations reflected in these statements are based upon reasonable assumptions, Riviana can give no assurance that these expectations will be achieved. ##### (COMPARATIVE TABLES FOLLOW) RIVIANA FOODS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands)
March 28, 2004 June 29, 2003 -------------- ------------- (Unaudited) (Audited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 19,442 $ 22,586 Marketable securities 61 219 Accounts receivable 46,805 42,900 Inventories 67,335 54,800 Prepaid expenses 4,303 5,710 -------- -------- Total current assets 137,946 126,215 PROPERTY, PLANT AND EQUIPMENT, net 108,446 108,024 INVESTMENTS IN UNCONSOLIDATED AFFILIATES 14,629 12,797 GOODWILL 9,585 9,585 OTHER ASSETS 22,533 17,329 -------- -------- Total assets $293,139 $273,950 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Current maturities and short-term debt $ 27,110 $ 24,182 Accounts payable and accrued liabilities 44,264 40,454 Income taxes payable 4,518 3,945 -------- -------- Total current liabilities 75,892 68,581 DEFERRED INCOME TAXES AND OTHER LIABILITIES 25,618 24,319 STOCKHOLDERS' EQUITY 191,629 181,050 -------- -------- Total liabilities and stockholders' equity $293,139 $273,950 ======== ========
RIVIANA FOODS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In Thousands, Except Per Share Amounts)
Three Months Ended Nine Months Ended (Unaudited) (Unaudited) --------------------------------- --------------------------------- March 28, 2004 March 30, 2003 March 28, 2004 March 30, 2003 -------------- -------------- -------------- -------------- NET SALES $116,139 $ 99,367 $330,580 $292,810 COST OF SALES 88,065 71,784 250,094 209,988 -------- -------- -------- -------- Gross profit 28,074 27,583 80,486 82,822 -------- -------- -------- -------- COSTS AND EXPENSES: Advertising, selling and warehousing 12,763 13,115 37,627 38,425 Administrative and general 6,241 5,881 18,223 17,870 -------- -------- -------- -------- Total costs and expenses 19,004 18,996 55,850 56,295 -------- -------- -------- -------- Income from operations 9,070 8,587 24,636 26,527 OTHER INCOME: Interest income, net 47 213 733 728 Other income, net 745 707 1,601 1,076 -------- -------- -------- -------- Income before income taxes and minority interests 9,862 9,507 26,970 28,331 INCOME TAX EXPENSE 3,349 2,777 8,475 6,585 MINORITY INTERESTS IN EARNINGS OF CONSOLIDATED SUBSIDIARIES 150 25 396 236 -------- -------- -------- -------- NET INCOME $ 6,363 $ 6,705 $ 18,099 $ 21,510 ======== ======== ======== ======== Earnings per share: Basic $ 0.44 $ 0.47 $ 1.26 $ 1.51 Diluted 0.43 0.46 1.22 1.48 Dividends paid per share $ 0.25 $ 0.17 $ 0.67 $ 0.50 Weighted average common shares outstanding: Basic 14,492 14,284 14,413 14,234 Diluted 14,816 14,631 14,797 14,574