Seneca Foods reports fiscal Q4 net loss of US$1M, compared to net earnings of US$3.9M in year-ago period; net sales rise 6.9% to US$293.8M

Nevin Barich

MARION, New York , May 22, 2014 (press release) – Seneca Foods Corporation (NASDAQ: SENEA, SENEB) reported that net earnings for the fiscal year ended March 31, 2014, decreased to $13.8 million, or $1.23 per diluted share, compared to $41.4 million, or $3.57 per diluted share, in the fiscal year ended March 31, 2013. Net sales for the fiscal year ended March 31, 2014, increased from the fiscal year ended March 31, 2013 by 5.0%, to $1,340.2 million. The increase is attributable to increased sales volume of $79.1 million partially offset by lower selling prices/less favorable sales mix of $15.2 million.

Net sales for the fourth quarter ended March 31, 2014, increased from the fourth quarter ended March 31, 2013, by 6.9%, to $293.8 million. The increase is attributable to increased sales volume of $33.1 million partially offset by lower selling prices/less favorable sales mix of $14.3 million. Net loss for the fiscal fourth quarter of 2014 was $1.0 million, or $(0.09) per diluted share, compared to net earnings of $3.9 million, or $0.35 per diluted share, in the fiscal fourth quarter of 2013.

Excluding a non-cash after-tax LIFO credit of $1.1 million, net loss per diluted share was $(0.19) during the quarter ended March 31, 2014 versus net earnings of $0.17 during the quarter ended March 31, 2013, which included a non-cash after-tax LIFO credit of $2.0 million. Excluding a non-cash after-tax LIFO charge of $13.2 million, net earnings per diluted share were $2.42 during the year ended March 31, 2014, versus $3.33 per diluted share during the year ended March 31, 2013, which included a non-cash after-tax LIFO credit of $2.7 million.

Other operating income in 2014 included a gain of $2.9 million from a break-up fee earned as a result of the Company being named the stalking horse bidder in an attempt to acquire substantially all the operating assets of Allens, Inc. in a bankruptcy court supervised auction, a gain of $0.7 million from the sale of two aircraft and a gain of $0.1 million as a result of adjustments related to the purchase of Sunnyside. The Company also recorded a loss of $0.5 million on the disposal of a warehouse located in Sunnyside, Washington and a net gain of $0.2 from the sale of other fixed assets.

Other operating income in 2013 included a gain of $1.9 million as a result of the estimated fair market value of the net assets acquired exceeding the purchase price of Sunnyside. The Company also recorded a gain of $0.3 million from the sale of property located in Cambria, Wisconsin and a net loss of $0.3 million on the disposal of certain other fixed assets.

About Seneca Foods Corporation

Seneca Foods is North America's leading provider of packaged fruits and vegetables, with facilities located throughout the United States. Its high quality products are primarily sourced from over 2,000 American farms. Seneca holds the largest share of the retail private label, food service, and export canned vegetable markets, distributing to over 90 countries. Products are also sold under the highly regarded brands of Libby's®, Aunt Nellie's®, READ®, Seneca Farms® and Seneca labels, including Seneca snack chips. In addition, Seneca provides vegetable products under an alliance with General Mills Operations, LLC, a subsidiary of General Mills, Inc., under the Green Giant label. Seneca's common stock is traded on the Nasdaq Global Stock Market under the symbols "SENEA" and "SENEB". SENEA is included the S&P SmallCap 600, Russell 2000 and Russell 3000 indices.

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