Jun. 13, 2019 | Earnings Reports
Seneca Foods Corporation (NASDAQ: SENEA, SENEB) today announced financial results for the fourth quarter and year ended March 31, 2019.
Highlights (vs. year-ago, year-to-date results):
- Net sales increased 3.2% to $1,199.6 million.
- Gross margin percentage from continuing operations decreased from 7.0% to 3.3% as compared to the prior year twelve months. Cost increases and a $40.5 million LIFO charge all contributed to the lower gross margin percentage.
- The Company has applied discontinued operations treatment as related to its Modesto operations.
- Net earnings from discontinued operations increased by $60.8 million as compared to the prior year. Included in the year ended March 31, 2019 discontinued operations earnings was a $24.2 million pre-tax non-cash gain as result of the Modesto LIFO layer liquidation and a pre-tax cash gain of $56.4 million on the sale of the Modesto plant and equipment.
“Fiscal year 2019 was challenging for a variety of reasons. We exited some unprofitable business operations and cut future costs with strategic plant rationalization. The operating loss from continuing operations of $38.1 million included a non-cash pre-tax LIFO charge of $40.5 million. We were able to offset these losses with gains primarily from the sale of assets. We are looking forward to an improved year ahead.”
- Kraig Kayser, President and Chief Executive Officer.