Tootsie Roll Industries Inc 8-K, filed Feb 12, 2020
Tootsie Roll Industries Inc (TR)
About this 8-K
Tootsie Roll Industries Inc filed this 8-K on February 12, 2020.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report:
(Date of earliest event reported)
(Exact name of registrant as specified in its charter)
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(Address of principal executive offices)
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 (see General Instruction A.2. below):
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
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Item 2.02. Results of Operations and Financial Condition.
On February 12, 2020, Tootsie Roll Industries, Inc. issued a press release (the "release") announcing its results of operations and financial condition for the fourth quarter and twelve months ended December 31, 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 February 12, 2020. |
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Exhibit 104 | Cover Page Interactive Data File (formatted as inline XBRL). |
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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.
February 12, 2020 | TOOTSIE ROLL INDUSTRIES, INC. | |
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| By: | /S/ G. HOWARD EMBER, JR. |
| | G. Howard Ember, Jr. |
| Vice President Finance and Chief Financial Officer | |
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Exhibit 99.1
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TOOTSIE ROLL INDUSTRIES, INC. |
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7401 South Cicero Avenue |
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Chicago, IL 60629 |
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Phone 773/838-3400 |
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Fax 773/838-3534 |
PRESS RELEASE
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STOCK TRADED: NYSE |
FOR IMMEDIATE RELEASE |
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TICKER SYMBOL: TR |
Wednesday, February 12, 2020 |
CHICAGO, ILLINOIS – February 12, 2020 - Ellen R. Gordon, Chairman, Tootsie Roll Industries, Inc. reported fourth quarter and twelve months 2019 net sales and net earnings.
Fourth quarter 2019 net sales were $134,663,000 compared to $127,264,000 in fourth quarter 2018, an increase of $7,399,000, or 6%. Fourth quarter 2019 net earnings were $14,555,000 compared to $12,175,000 in fourth quarter 2018, and net earnings per share were $0.22 and $0.18 in fourth quarter 2019 and 2018, respectively, an increase of $0.04 or 22%.
Twelve months 2019 net sales were $523,616,000 compared to $515,251,000 in twelve months 2018, an increase of $8,365,000, or 2%. Twelve months 2019 net earnings were $64,920,000 compared to $56,893,000 in twelve months 2018, and net earnings per share were $0.99 and $0.86 in twelve months 2019 and 2018, respectively, an increase of $0.13 per share or 15%.
Mrs. Gordon said, “Successful marketing and sales programs contributed to the increases in sales for both fourth quarter and twelve months 2019 compared to the corresponding periods in the prior year. Fourth quarter 2019 sales also benefited from the timing of sales between the third and fourth quarters of 2019, however, foreign currency translation had some adverse effects on consolidated sales for the twelve months 2019 period compared to 2018.
Fourth quarter and twelve months 2019 net earnings benefited from increased sales and higher price realization which allowed the Company to recover some margin decline resulting from increases in certain input costs in recent years. Plant efficiencies driven by capital investments and ongoing cost containment programs contributed to these improved results in 2019. Prior year 2018 gross margin was adversely affected by the implementation and start-up of new manufacturing packaging lines and resulting operational inefficiencies, as well as unfavorable experience from self-insurance programs. The Company is continuing its investments in its plant manufacturing operations to meet new consumer and customer demands, achieve quality improvements, provide genuine value to consumers, and increase operational efficiencies. Lower general and administrative expenses, primarily legal and professional fees, and lower freight and delivery unit costs resulted in improvements in operating earnings in fourth quarter and twelve months 2019. In addition, increased investment income and lower foreign impairment charges also contributed to these improved results in 2019.
The Company’s effective income tax rates were 27.9% and 23.5% in fourth quarter 2019 and 2018, respectively, and 24.1% and 22.4% in twelve months 2019 and 2018, respectively. The increase in the effective tax rates for the fourth quarter and twelve months 2019 reflects higher state income taxes and increases in valuation allowances for state income tax credit carry-forwards which are not likely to be fully realized in the future. Earnings per share benefited from stock purchases in the open market resulting in fewer shares outstanding in both fourth quarter and twelve months 2019."
TOOTSIE ROLL INDUSTRIES, INC.
CONSOLIDATED SUMMARY OF SALES & EARNINGS
FOR THE PERIODS ENDED
DECEMBER 31, 2019 and 2018
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Fourth Quarter Ended |
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2019 |
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2018 |
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Net Product Sales |
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134,663,000 |
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127,264,000 |
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Net Earnings |
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14,555,000 |
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12,175,000 |
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Net Earnings Per Share* |
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0.22 |
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0.18 |
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Average Shares Outstanding* |
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65,101,000 |
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65,979,000 |
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Twelve Months Ended |
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2019 |
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2018 |
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Net Product Sales |
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$ |
523,616,000 |
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515,251,000 |
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Net Earnings |
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64,920,000 |
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56,893,000 |
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Net Earnings Per Share* |
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0.99 |
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0.86 |
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Average Shares Outstanding* |
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65,474,000 |
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66,130,000 |
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* Based on average shares outstanding adjusted for 3% stock dividends distributed April 5, 2019 and April 6, 2018.