0000098677-19-000009.txt : 20190725
0000098677-19-000009.hdr.sgml : 20190725
20190725162748
ACCESSION NUMBER: 0000098677-19-000009
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20190630
ITEM INFORMATION: Results of Operations and Financial Condition
ITEM INFORMATION: Financial Statements and Exhibits
FILED AS OF DATE: 20190725
DATE AS OF CHANGE: 20190725
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: 19974743
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
jun19f8kfiling.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
July 24, 2019
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 July 24, 2019, Tootsie Roll Industries, Inc. issued a press release
(the "release") announcing its results of operations and financial condition
for the second quarter ended June 30, 2019. 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
July 24, 2019.
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.
July 24, 2019 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 July 24, 2019.
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 WEDNESDAY, July 24, 2019
CHICAGO, ILLINOIS - July 24, 2019 - Ellen R. Gordon, Chairman,
Tootsie Roll Industries, Inc. reported second quarter and first
half 2019 net sales and net earnings.
Second quarter 2018 net sales were $106,021,000 compared to $105,623,000
in second quarter 2019, an increase of $398,000. Second quarter 2019
net earnings were $11,556,000 compared to $10,489,000 in second quarter
2018, and net earnings per share were $.18 and $.16 in second quarter
2019 and 2018, respectively, an increase of $.02 or 12%.
First half 2019 net sales were $207,040,000 compared to $206,482,000
in first half 2018, an increase of $558,000. First half 2019 net earnings
were $20,511,000 compared to $18,614,000 in first half 2018, and net
earnings per share were $.31 and $.28 in first half 2019 and 2018,
respectively, an increase of $.03 per share or 11%.
Mrs. Gordon said, "Second quarter and first half 2019 net sales include
increases in domestic sales of approximately 2% and 1%, respectively.
Lower foreign sales adversely affected reported consolidated sales in
both second quarter and first half 2019 compared to the corresponding
periods in 2018. Foreign sales were unfavorably impacted by the timing
of certain sales in the comparative periods as well as a stronger U.S.
dollar and the related translation of foreign sales.
Second quarter and first half 2019 net earnings benefited from higher
price realization which allowed the Company to recover some product
margin decline resulting from increasing input costs. Less favorable
foreign exchange adversely affected results in both second quarter
and first half 2019 compared to the prior year corresponding periods,
however, decreases in legal and professional fees contributed to the
improved results in second quarter and first half 2019.
The Company is continuing its investments in its plant manufacturing
operations to meet new consumer and customer demands, achieve quality
improvements, and increase operational efficiencies. Plant efficiencies
driven by capital investments and ongoing cost containment programs
contributed to the improved results discussed above. The prior year
2018 results were adversely affected by the implementation and start-up
of new manufacturing packaging lines and resulting operational
inefficiencies as well as unfavorable experience from Company
self-insurance programs.
The Company's effective income tax rate was 25.8% and 23.7% in second
quarter 2019 and 2018, respectively, and 25.2% and 22.9% in first half
2019 and 2018, respectively. These higher tax rates in 2019 principally
reflect higher state and foreign income tax expense, including the effects
of certain international tax provisions relating to U.S. tax reform
legislation that became effective at the beginning of 2018. Earnings per
share benefited from stock purchases in the open market resulting in
fewer shares outstanding in both second quarter and first half 2019."
TOOTSIE ROLL INDUSTRIES, INC.
CONSOLIDATED SUMMARY OF SALES & EARNINGS
FOR THE PERIODS ENDED
JUNE 30, 2019 & 2018
SECOND QUARTER ENDED
2019 2018
Net Product Sales $ 106,021,000 $ 105,623,000
Net Earnings $ 11,556,000 $ 10,489,000
Net Earnings Per Share * $ .18 $ .16
Average Shares Outstanding * 65,559,000 66,104,000
SIX MONTHS ENDED
2019 2018
Net Product Sales $ 207,040,000 $ 206,482,000
Net Earnings $ 20,511,000 $ 18,614,000
Net Earnings Per Share * $ .31 $ .28
Average Shares Outstanding * 65,722,000 66,232,000
*Based on average shares outstanding adjusted for 3% stock dividends
distributed April 05, 2019 and April 06, 2018.