Riviana Foods Announces Third Quarter Earnings

Apr 26, 2001, 01:00 ET from Riviana Foods Inc.

    HOUSTON, April 26 /PRNewswire/ -- Riviana Foods Inc. (Nasdaq:   RVFD)
 reported net income for the third fiscal quarter ended April 1, 2001, of
 $2.8 million, excluding restructuring and other charges, or diluted earnings
 per share of $0.20, compared with net income of $6.6 million or diluted
 earnings per share of $0.46 last year.  Sales totaled $104.0 million compared
 to sales of $108.2 million for the same period last year, and operating
 income, excluding restructuring and other charges, was $4.0 million compared
 to $8.4 million reported last year.
     The Company recorded an after tax charge of $0.07 per diluted share for
 restructuring and other charges in the United Kingdom.  The charges include
 redundancy payments for terminated employees, excess facility costs and
 equipment and other asset write-downs.
     For the nine months, the Company reported earnings of $14.9 million,
 excluding restructuring and other charges, or diluted earnings per share of
 $1.05 on sales of $316.5 million compared to earnings of $18.9 million or
 diluted earnings per share of $1.29 on sales of $333.9 million for the third
 quarter of fiscal 2000.  The sales decline reflects a shorter reporting period
 of 13 weeks for the second quarter of fiscal 2001 versus 14 weeks for the
 year-ago period.
     For the quarter, operating profit for Riviana's domestic rice business
 declined $4.4 million to $3.9 million and sales were down $1.5 million.  These
 declines reflect the impact of a competitive domestic rice market,
 particularly in value-added instant and prepared mix categories, coupled with
 higher energy and packaging costs.  As a result of the competitive conditions,
 the Company has been unable to pass along increased product costs, and in
 certain markets, has increased promotional activities to maintain its leading
 market shares.
     Operating profit for Riviana's Central American businesses was even with
 the prior year at $2.4 million despite continuing difficult economic
 conditions in the region due to high energy costs and lower export prices for
 coffee and bananas.  Sales of processed fruits and vegetables and nectars and
 juices increased 16% but declined 4% for cookies and crackers.  Sales gains
 were primarily attributable to the introduction of new products in the market.
     Sales for the Company's European operations declined by $4.3 million
 during the quarter.  This unit reported an operating loss of $1.5 million
 after providing $1.4 million for restructuring and other charges, versus an
 operating profit of $0.3 million in the prior year.  During the third quarter,
 the Company took action to optimize profitability and restructure operations
 in its Stevens & Brotherton subsidiary, which markets and distributes branded
 and private-label rice, dried fruit and other food products in the United
 Kingdom.  Stevens & Brotherton's volumes have been lower in virtually all
 product categories due to soft retail trading conditions, competitive
 pressures and the loss of representation of two product lines.
     "We believe that these and other steps taken to reduce costs and increase
 sales will put our European operations on a more profitable footing in the
 fourth quarter of fiscal 2001," said Joseph A. Hafner, Jr., president and
 chief executive officer.
     "Riviana is a solid company with a strong balance sheet and market
 leadership," Hafner emphasized.  "We are the number one or number two rice
 marketer in 19 of the 20 top U.S. rice markets and our brands are some of the
 most recognized names in rice.  As we go forward, we will be working to reduce
 costs and improve operating efficiencies at our facilities worldwide, and we
 will continue to maintain market share and to focus on effective promotional
 efforts for our products."
     As previously reported, Riviana paid a quarterly cash dividend of
 $0.16 per common share on April 10, 2001, to stockholders of record March 6,
 2001.
     During the third quarter, Riviana completed the purchase of 27,000 shares
 of common stock under its repurchase program.  To date, the Company has
 purchased 2,022,246 shares of the total 3,000,000 authorized for repurchase.
     Riviana will hold its quarterly conference call today, Thursday, April 26,
 2001, at 10:30 a.m.  The call may be heard live on the Internet.  To access
 the call, enter http://www.att.com/confcast/attend at the URL prompt.  Enter
 the conference ID 546563 and click "go."  The conference call will be archived
 and available to replay using the same instructions until May 24, 2001.
     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 STATEMENTS OF INCOME
                    (In Thousands, Except Per Share Amounts)
                                  (Unaudited)
 
                               Three Months Ended         Nine Months Ended
                              April 1,     April 2,      April 1,     April 2,
                                2001         2000          2001         2000
     NET SALES             $  104,045   $  108,245    $  316,516   $  333,867
     COST OF SALES             70,404       70,447       212,361      225,619
       Gross profit            33,641       37,798       104,155      108,248
 
     COSTS AND EXPENSES:
       Advertising, selling
        and warehousing        24,341       23,921        67,275       66,832
       Administrative and
        general                 5,348        5,487        16,604       16,342
       Restructuring and
        other charges           1,435          ---         1,435          ---
         Total costs and
          expenses             31,124       29,408        85,314       83,174
         Income from
          operations            2,517        8,390        18,841       25,074
 
     OTHER INCOME (EXPENSE):
       Interest income
        (expense), net            (48)          45          (102)         310
       Other income, net          102        1,155         1,247        1,803
         Income before income
          taxes and minority
          interests             2,571        9,590        19,986       27,187
 
     INCOME TAX EXPENSE           757        2,877         5,965        8,140
 
     MINORITY INTERESTS IN
      EARNINGS OF CONSOLIDATED
      SUBSIDIARIES                 14           89           107          192
       NET INCOME           $   1,800    $   6,624     $  13,914    $  18,855
 
     Earnings per share:
       Basic                $    0.13    $    0.46     $    0.99    $    1.30
       Diluted                   0.13         0.46          0.98         1.29
 
     Dividends paid
      per share             $    0.16    $    0.14     $    0.44    $    0.39
 
     Weighted average common
      shares outstanding:
       Basic                   14,040       14,366        14,082       14,521
       Diluted                 14,166       14,439        14,182       14,640
 
 
                      RIVIANA FOODS INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
                                 (In Thousands)
 
                                                  April 1, 2001   July 2, 2000
                                                   (Unaudited)      (Audited)
             ASSETS
 
     CURRENT ASSETS:
       Cash and cash equivalents                     $   12,133    $   13,528
       Marketable securities                                483         1,582
       Accounts receivable                               44,578        40,826
       Inventories                                       49,819        48,923
       Prepaid expenses                                   2,577         2,366
         Total current assets                           109,590       107,225
 
     PROPERTY, PLANT AND EQUIPMENT, net                  88,744        86,124
 
     INVESTMENTS IN UNCONSOLIDATED AFFILIATES             9,657         9,402
 
     OTHER ASSETS                                         5,778         6,364
 
         Total assets                                $  213,769    $  209,115
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     CURRENT LIABILITIES:
       Current maturities and short-term debt        $   14,915    $    5,900
       Accounts payable and accrued liabilities          39,323        46,016
       Income taxes payable                               5,573         5,876
         Total current liabilities                       59,811        57,792
 
     LONG-TERM DEBT, net of current maturities            1,424         1,462
 
     DEFERRED INCOME TAXES AND OTHER LIABILITIES         13,930        14,930
 
     STOCKHOLDERS' EQUITY                               138,604       134,931
 
         Total liabilities and stockholders' equity  $  213,769    $  209,115
 
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SOURCE Riviana Foods Inc.
    HOUSTON, April 26 /PRNewswire/ -- Riviana Foods Inc. (Nasdaq:   RVFD)
 reported net income for the third fiscal quarter ended April 1, 2001, of
 $2.8 million, excluding restructuring and other charges, or diluted earnings
 per share of $0.20, compared with net income of $6.6 million or diluted
 earnings per share of $0.46 last year.  Sales totaled $104.0 million compared
 to sales of $108.2 million for the same period last year, and operating
 income, excluding restructuring and other charges, was $4.0 million compared
 to $8.4 million reported last year.
     The Company recorded an after tax charge of $0.07 per diluted share for
 restructuring and other charges in the United Kingdom.  The charges include
 redundancy payments for terminated employees, excess facility costs and
 equipment and other asset write-downs.
     For the nine months, the Company reported earnings of $14.9 million,
 excluding restructuring and other charges, or diluted earnings per share of
 $1.05 on sales of $316.5 million compared to earnings of $18.9 million or
 diluted earnings per share of $1.29 on sales of $333.9 million for the third
 quarter of fiscal 2000.  The sales decline reflects a shorter reporting period
 of 13 weeks for the second quarter of fiscal 2001 versus 14 weeks for the
 year-ago period.
     For the quarter, operating profit for Riviana's domestic rice business
 declined $4.4 million to $3.9 million and sales were down $1.5 million.  These
 declines reflect the impact of a competitive domestic rice market,
 particularly in value-added instant and prepared mix categories, coupled with
 higher energy and packaging costs.  As a result of the competitive conditions,
 the Company has been unable to pass along increased product costs, and in
 certain markets, has increased promotional activities to maintain its leading
 market shares.
     Operating profit for Riviana's Central American businesses was even with
 the prior year at $2.4 million despite continuing difficult economic
 conditions in the region due to high energy costs and lower export prices for
 coffee and bananas.  Sales of processed fruits and vegetables and nectars and
 juices increased 16% but declined 4% for cookies and crackers.  Sales gains
 were primarily attributable to the introduction of new products in the market.
     Sales for the Company's European operations declined by $4.3 million
 during the quarter.  This unit reported an operating loss of $1.5 million
 after providing $1.4 million for restructuring and other charges, versus an
 operating profit of $0.3 million in the prior year.  During the third quarter,
 the Company took action to optimize profitability and restructure operations
 in its Stevens & Brotherton subsidiary, which markets and distributes branded
 and private-label rice, dried fruit and other food products in the United
 Kingdom.  Stevens & Brotherton's volumes have been lower in virtually all
 product categories due to soft retail trading conditions, competitive
 pressures and the loss of representation of two product lines.
     "We believe that these and other steps taken to reduce costs and increase
 sales will put our European operations on a more profitable footing in the
 fourth quarter of fiscal 2001," said Joseph A. Hafner, Jr., president and
 chief executive officer.
     "Riviana is a solid company with a strong balance sheet and market
 leadership," Hafner emphasized.  "We are the number one or number two rice
 marketer in 19 of the 20 top U.S. rice markets and our brands are some of the
 most recognized names in rice.  As we go forward, we will be working to reduce
 costs and improve operating efficiencies at our facilities worldwide, and we
 will continue to maintain market share and to focus on effective promotional
 efforts for our products."
     As previously reported, Riviana paid a quarterly cash dividend of
 $0.16 per common share on April 10, 2001, to stockholders of record March 6,
 2001.
     During the third quarter, Riviana completed the purchase of 27,000 shares
 of common stock under its repurchase program.  To date, the Company has
 purchased 2,022,246 shares of the total 3,000,000 authorized for repurchase.
     Riviana will hold its quarterly conference call today, Thursday, April 26,
 2001, at 10:30 a.m.  The call may be heard live on the Internet.  To access
 the call, enter http://www.att.com/confcast/attend at the URL prompt.  Enter
 the conference ID 546563 and click "go."  The conference call will be archived
 and available to replay using the same instructions until May 24, 2001.
     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 STATEMENTS OF INCOME
                    (In Thousands, Except Per Share Amounts)
                                  (Unaudited)
 
                               Three Months Ended         Nine Months Ended
                              April 1,     April 2,      April 1,     April 2,
                                2001         2000          2001         2000
     NET SALES             $  104,045   $  108,245    $  316,516   $  333,867
     COST OF SALES             70,404       70,447       212,361      225,619
       Gross profit            33,641       37,798       104,155      108,248
 
     COSTS AND EXPENSES:
       Advertising, selling
        and warehousing        24,341       23,921        67,275       66,832
       Administrative and
        general                 5,348        5,487        16,604       16,342
       Restructuring and
        other charges           1,435          ---         1,435          ---
         Total costs and
          expenses             31,124       29,408        85,314       83,174
         Income from
          operations            2,517        8,390        18,841       25,074
 
     OTHER INCOME (EXPENSE):
       Interest income
        (expense), net            (48)          45          (102)         310
       Other income, net          102        1,155         1,247        1,803
         Income before income
          taxes and minority
          interests             2,571        9,590        19,986       27,187
 
     INCOME TAX EXPENSE           757        2,877         5,965        8,140
 
     MINORITY INTERESTS IN
      EARNINGS OF CONSOLIDATED
      SUBSIDIARIES                 14           89           107          192
       NET INCOME           $   1,800    $   6,624     $  13,914    $  18,855
 
     Earnings per share:
       Basic                $    0.13    $    0.46     $    0.99    $    1.30
       Diluted                   0.13         0.46          0.98         1.29
 
     Dividends paid
      per share             $    0.16    $    0.14     $    0.44    $    0.39
 
     Weighted average common
      shares outstanding:
       Basic                   14,040       14,366        14,082       14,521
       Diluted                 14,166       14,439        14,182       14,640
 
 
                      RIVIANA FOODS INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
                                 (In Thousands)
 
                                                  April 1, 2001   July 2, 2000
                                                   (Unaudited)      (Audited)
             ASSETS
 
     CURRENT ASSETS:
       Cash and cash equivalents                     $   12,133    $   13,528
       Marketable securities                                483         1,582
       Accounts receivable                               44,578        40,826
       Inventories                                       49,819        48,923
       Prepaid expenses                                   2,577         2,366
         Total current assets                           109,590       107,225
 
     PROPERTY, PLANT AND EQUIPMENT, net                  88,744        86,124
 
     INVESTMENTS IN UNCONSOLIDATED AFFILIATES             9,657         9,402
 
     OTHER ASSETS                                         5,778         6,364
 
         Total assets                                $  213,769    $  209,115
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     CURRENT LIABILITIES:
       Current maturities and short-term debt        $   14,915    $    5,900
       Accounts payable and accrued liabilities          39,323        46,016
       Income taxes payable                               5,573         5,876
         Total current liabilities                       59,811        57,792
 
     LONG-TERM DEBT, net of current maturities            1,424         1,462
 
     DEFERRED INCOME TAXES AND OTHER LIABILITIES         13,930        14,930
 
     STOCKHOLDERS' EQUITY                               138,604       134,931
 
         Total liabilities and stockholders' equity  $  213,769    $  209,115
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X68532427
 
 SOURCE  Riviana Foods Inc.