0000098677-18-000012.txt : 20181024
0000098677-18-000012.hdr.sgml : 20181024
20181024114221
ACCESSION NUMBER: 0000098677-18-000012
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20180930
ITEM INFORMATION: Results of Operations and Financial Condition
ITEM INFORMATION: Financial Statements and Exhibits
FILED AS OF DATE: 20181024
DATE AS OF CHANGE: 20181024
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: TOOTSIE ROLL INDUSTRIES INC
CENTRAL INDEX KEY: 0000098677
STANDARD INDUSTRIAL CLASSIFICATION: SUGAR & CONFECTIONERY PRODUCTS [2060]
IRS NUMBER: 221318955
STATE OF INCORPORATION: VA
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: 8-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 001-01361
FILM NUMBER: 181135829
BUSINESS ADDRESS:
STREET 1: 7401 S CICERO AVE
CITY: CHICAGO
STATE: IL
ZIP: 60629
BUSINESS PHONE: 7738383400
MAIL ADDRESS:
STREET 1: 7401 S CICERO AVE
CITY: CHICAGO
STATE: IL
ZIP: 60629
FORMER COMPANY:
FORMER CONFORMED NAME: SWEETS CO OF AMERICA INC
DATE OF NAME CHANGE: 19660921
8-K
1
sep18f8kfiling.txt
TOOTSIE ROLL INDUSTRIES, INC.
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
October 23, 2018
Date of report (Date of earliest event reported)
TOOTSIE ROLL INDUSTRIES, INC.
(Exact Name of Registrant as Specified in Its charter)
Virginia
(State or Other Jurisdiction of Incorporation)
001-01361
(Commission File Number)
22-1318955
(I.R.S. Employer Identification No.)
7401 South Cicero Avenue, Chicago, Illinois 60629
(Address of Principal Executive Offices) (Zip Code)
773-838-3400
(Registrant's Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
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))
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On October 23, 2018, Tootsie Roll Industries, Inc. issued a press release
(the "release") announcing its results of operations and financial condition for
the third quarter ended September 30, 2018. A copy of the release is attached
hereto as Exhibit 99.1 and incorporated herein by reference.
The information in the release and in this Item 2.02 is "furnished" and not
"filed" for purposes of Section 18 of the Securities and Exchange Act of 1934,
or otherwise subject to the liabilities of that section. Such information may
only be incorporated by reference in another filing under the Securities
Exchange Act of 1934 or the Securities Act of 1933 only if and to the extent
such subsequent filing specifically references such information.
Item 9.01. Financial Statements and Exhibits.
(c) The following exhibit is furnished with this report:
Exhibit 99.1 Press Release of Tootsie Roll Industries, Inc., dated
October 23, 2018.
SIGNATURE
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
under-signed thereunto duly authorized.
October 23, 2018 TOOTSIE ROLL INDUSTRIES, INC.
By: /S/G. HOWARD EMBER, JR.
G. Howard Ember, Jr.
Vice President Finance and
Chief Financial Officer
EXHIBIT INDEX
Exhibit No. Description
99.1 Press Release of Tootsie Roll Industries, Inc., dated October 23, 2018.
EX-99
2
exh99_pressrelease.txt
TOOTSIE ROLL INDUSTRIES, INC.
EXHIBIT 99.1
Tootsie Roll Industries, Inc.
7401 South Cicero Avenue
Chicago, IL 60629
Phone 773/838-3400
Fax 773/838-3534
Press Release
STOCK TRADED: NYSE FOR IMMEDIATE RELEASE
TICKER SYMBOL: TR Tuesday, October 23, 2018
CHICAGO, ILLINOIS - October 23, 2018 - Ellen R. Gordon, Chairman,
Tootsie Roll Industries, Inc.reported third quarter and nine months
2018 net sales and net earnings.
Third quarter 2018 net sales were $181,505,000 compared to $182,173,000
in third quarter 2017, a decrease of $668,000 which is less than 1%. Third
quarter 2018 net earnings were $26,104,000 compared to $26,933,000 in
third quarter 2017, and net earnings per share were $.41 and $.42 in third
quarter 2018 and 2017, respectively, a decrease of $.01 or 2%.
Nine months 2018 net sales were $387,987,000 compared to $390,495,000
in nine months 2017, a decrease of $2,508,000 which is also less than 1%.
Nine months 2018 net earnings were $44,718,000 compared to $48,879,000
in nine months 2017, and net earnings per share were $.70 and $.75 in nine
months 2018 and 2017, respectively, a decrease of $.05 per share or 7%.
Mrs. Gordon said, "The timing of certain 2018 sales between second and
third quarter in the comparative 2018 and 2017 periods caused our third
quarter 2018 sales to edge lower than third quarter 2017 sales. Third
quarter and nine months 2018 results were adversely affected by
significant increases in freight and delivery expenses. Freight and delivery
expenses reflect higher freight rates driven by increases in fuel costs and
the continuing imbalance between supply and demand for over-the-road
truck delivery.
Increases in wages and employee benefit costs, including unfavorable
experience under our self- insurance programs, and higher legal and
professional fees had an adverse impact on third quarter and nine months
2018 results. Costs relating to quality improvements in product packaging
and start-up of new manufacturing packaging lines being phased into
service also had an unfavorable impact on third quarter and nine months
2018 gross profit margins and results. The Company is continuing its
investments in its manufacturing operations and products to meet new
consumer and customer demands, achieve quality improvements to
increase consumer product acceptance, and realize operational efficiencies
and cost reductions. Manufacturing efficiencies driven by capital
investments and ongoing cost containment programs mitigated some of
these higher input costs and expenses discussed above.
Third quarter 2018 net earnings were adversely affected by unfavorable
foreign exchange, however nine months 2018 results had some favorable
impact from foreign exchange when compared to nine months 2017.
Third quarter and nine months 2018 net earnings benefited from a lower
U.S. federal income tax rate resulting from U.S. tax reform legislation
enacted in December 2017. The Company's effective income tax rates were
21.5% and 31.0% in third quarter 2018 and 2017, respectively, and 22.1%
and 29.8% in nine months 2018 and 2017, respectively. Earnings per
share benefited from stock purchases in the open market resulting in
fewer shares outstanding in both third quarter and nine months 2018."
TOOTSIE ROLL INDUSTRIES, INC.
CONSOLIDATED SUMMARY OF SALES & EARNINGS
FOR THE PERIODS ENDED
SEPTEMBER 30, 2018 & 2017
THIRD QUARTER ENDED
2018 2017
Net Product Sales $ 181,505,000 $ 182,173,000
Net Earnings $ 26,104,000 $ 26,933,000
Net Earnings Per Share * $ .41 $ .42
Average Shares Outstanding * 64,155,000 64,855,000
NINE MONTHS ENDED
2018 2017
Net Product Sales $ 387,987,000 $ 390,495,000
Net Earnings $ 44,718,000 $ 48,879,000
Net Earnings Per Share * $ .70 $ .75
Average Shares Outstanding * 64,268,000 65,155,000
*Based on average shares outstanding adjusted for 3% stock dividends
distributed April 06, 2018 and April 17, 2017.