Tootsie Roll Industries Inc. (TR, Financial) filed Quarterly Report for the period ended 2010-07-03.
Tootsie Roll Industries Inc. has a market cap of $1.35 billion; its shares were traded at around $24.28 with a P/E ratio of 27.3 and P/S ratio of 2.8. The dividend yield of Tootsie Roll Industries Inc. stocks is 1.3%.TR is in the portfolios of John Keeley of Keeley Fund Management, Chuck Royce of Royce& Associates, Manning & Napier Advisors, Inc.
Selling, marketing and administrative expenses were $22,544 in second quarter 2010 compared to $25,728 in second quarter 2009, and first half 2010 and 2009 selling, marketing and administrative expenses were $47,870 and $47,861, respectively. Selling, marketing and administrative expenses in second quarter and first half 2010 reflect decreases of $2,907 and $1,643, respectively, in deferred compensation expense compared to the corresponding periods in the prior year. These decreases principally result from changes in the market value of investments in trading securities relating to compensation deferred in previous years and are not reflective of current operating results. Adjusting for the aforementioned changes in deferred compensation expense, selling, marketing and administrative expenses decreased from $24,774 in second quarter 2009 to $24,497 in second quarter 2010, a decrease of $277 or 1.1%, and increased from $47,165 in first half 2009 to $48,817 in first half 2010, an increase of $1,652 or 3.5%. As a percentage of net product sales, adjusted selling, marketing and administrative expenses increased from 23.0% in second
Earnings from operations were $13,865 in second quarter 2010 compared to $13,926 in second quarter 2009, and were $24,494 in first half 2010 compared to $25,889 in first half 2009. Earnings from operations include changes in deferred compensation liabilities relating to corresponding changes in the market value of trading securities that hedge these liabilities as discussed above. Adjusting for the aforementioned, operating earnings were $11,393 and $15,134 in second quarter 2010 and 2009, respectively, a decrease of $3,741 or 24.7%; and operating earnings were $23,308 and $26,770 in first half 2010 and 2009, respectively, a decrease of $3,462 or 12.9%. As a percentage of net product sales, adjusted operating earnings were 10.8% and 14.0% in second quarter 2010 and 2009, respectively, a decrease of 3.2% as a percentage of net product sales; and operating earnings were 11.2% and 13.3% in first half 2010 and 2009, respectively, a decrease of 2.1% as a percentage of net product sales. The above discussed decrease principally reflects the adverse effects of higher ingredient costs as well as higher freight, distribution and warehousing expenses as discussed above. Management believes the presentation in the preceding three paragraphs of amounts adjusted for deferred compensation expense better reflect operating results for the quarter and first half ended July 3, 2010 as compared to the quarter and first half ended July 4, 2009 and, accordingly, provides additional insight of the underlying operations of the Company.
Other income (expense), net, was $(2,058) in second quarter 2010 compared to $1,821 in second quarter 2009, a decrease of $3,879. Other income (expense), net, was $1,358 in first half 2010 compared to $1,441 in first half 2009, a decrease of $83. The second quarter decrease principally reflects a $3,680 unfavorable net decrease in the fair value of trading securities investments used to hedge deferred compensation liabilities and a $472 unfavorable net decrease in foreign exchange transactions. The first half decrease principally reflects a $2,067 unfavorable net decrease in the fair value of trading securities investments used to hedge deferred compensation liabilities which was substantially offset by $1,953 favorable net increase in foreign exchange transactions. The income (expense),on such trading securities was $(2,472) and $1,208 in second quarter 2010 and 2009, respectively, and $(1,186) and $881 in first half 2010 and 2009, respectively Such income or (expense) was substantially offset by a like amount of (expense) or income in aggregate product cost of goods sold and selling, marketing, and administrative expenses in the respective periods as discussed above. The second quarter and first half 2010 (expense) relating to trading securities principally reflects decline in the equity markets in the respective 2010 periods, and the second quarter and first half 2009 income principally reflect market appreciation in the equity markets in the respective 2009 periods.
Net earnings were $8,471 in second quarter 2010 compared to $10,338 in second quarter 2009, and earnings per share were $0.15 and $0.18 in second quarter 2010 and second quarter 2009, respectively, a decrease of $.03 or 16.7%. First half 2010 net earnings were $17,556 compared to first half 2009 net earnings of $18,658, a $1,102 or 5.9% decrease. First half net earnings per share were $0.31 in 2010 compared to $0.32 per share in first half 2009, a decrease of $0.01 per share or 3.1%. Earnings per share for second quarter and first half 2010 did benefit from the reduction in average shares outstanding resulting from Common Stock purchases in the open market by the Company. Average shares outstanding decreased from 57,910 in second quarter 2009 to 57,105 in second quarter 2010, and from 58,059 in first half 2009 to 57,197 in first half 2010.
The aforementioned net working capital amounts are principally reflected in aggregate cash and cash equivalents and short-term investments which totaled $67,088 as of the end of second quarter 2010 compared to $49,003 and $99,653 as of the end of second quarter 2009 and fourth quarter 2009, respectively. In addition, long term investments, principally debt securities comprising municipal bonds, were $61,721 (including $8,279 of Jefferson County auction rate securities (ARS) discussed below) as of the end of second quarter 2010, as compared to $49,488 and $58,136 as of the end of second quarter 2009 and fourth quarter 2009, respectively. Aggregate cash and cash equivalents and short and long-term investments were $128,809, $98,491, $157,789, for second quarter ended 2010 and 2009, and fourth quarter 2009, respectively. Investments in municipal bonds and other debt securities that matured during second quarters 2010 and 2009 were generally used to purchase the Companys Common Stock or were replaced with debt securities of similar maturities.
Read the The complete Report
Tootsie Roll Industries Inc. has a market cap of $1.35 billion; its shares were traded at around $24.28 with a P/E ratio of 27.3 and P/S ratio of 2.8. The dividend yield of Tootsie Roll Industries Inc. stocks is 1.3%.TR is in the portfolios of John Keeley of Keeley Fund Management, Chuck Royce of Royce& Associates, Manning & Napier Advisors, Inc.
Highlight of Business Operations:
Product cost of goods sold were $69,360 in second quarter 2010 compared to $68,807 in second quarter 2009, and first half 2010 product cost of goods sold were $137,483 compared to $129,526. Product cost of goods sold in second quarter and first half 2010 reflect decreases of $773 and $424, respectively, in deferred compensation expense compared to the corresponding periods in the prior year. These decreases principally result from changes in the market value of investments in trading securities relating to compensation deferred in previous years and are not reflective of current operating results. Adjusting for the aforementioned changes in deferred compensation expense, product cost of goods sold increased from $68,553 in second quarter 2009 to $69,879 in second quarter 2010, an increase of $1,326 or 1.9%, and increased from $129,341 in first half 2009 to $137,722 in first half 2010, an increase of $8,381 or 6.5%. As a percentage of net product sales, adjusted product cost of goods sold increased from 63.6% in second quarter 2009 to 66.5% in second quarter 2010, an increase of 2.9% as a percent of sales, and from 64.1% in first half 2009 to 66.1% in first half 2010, an increase of 2.0% as a percent of sales. These unfavorable increases principally reflect higher ingredient unit costs, primarily relating to sugar. The Company expects its sugar and most other ingredient costs to be significantly higher throughout 2010 compared to 2009.Selling, marketing and administrative expenses were $22,544 in second quarter 2010 compared to $25,728 in second quarter 2009, and first half 2010 and 2009 selling, marketing and administrative expenses were $47,870 and $47,861, respectively. Selling, marketing and administrative expenses in second quarter and first half 2010 reflect decreases of $2,907 and $1,643, respectively, in deferred compensation expense compared to the corresponding periods in the prior year. These decreases principally result from changes in the market value of investments in trading securities relating to compensation deferred in previous years and are not reflective of current operating results. Adjusting for the aforementioned changes in deferred compensation expense, selling, marketing and administrative expenses decreased from $24,774 in second quarter 2009 to $24,497 in second quarter 2010, a decrease of $277 or 1.1%, and increased from $47,165 in first half 2009 to $48,817 in first half 2010, an increase of $1,652 or 3.5%. As a percentage of net product sales, adjusted selling, marketing and administrative expenses increased from 23.0% in second
Earnings from operations were $13,865 in second quarter 2010 compared to $13,926 in second quarter 2009, and were $24,494 in first half 2010 compared to $25,889 in first half 2009. Earnings from operations include changes in deferred compensation liabilities relating to corresponding changes in the market value of trading securities that hedge these liabilities as discussed above. Adjusting for the aforementioned, operating earnings were $11,393 and $15,134 in second quarter 2010 and 2009, respectively, a decrease of $3,741 or 24.7%; and operating earnings were $23,308 and $26,770 in first half 2010 and 2009, respectively, a decrease of $3,462 or 12.9%. As a percentage of net product sales, adjusted operating earnings were 10.8% and 14.0% in second quarter 2010 and 2009, respectively, a decrease of 3.2% as a percentage of net product sales; and operating earnings were 11.2% and 13.3% in first half 2010 and 2009, respectively, a decrease of 2.1% as a percentage of net product sales. The above discussed decrease principally reflects the adverse effects of higher ingredient costs as well as higher freight, distribution and warehousing expenses as discussed above. Management believes the presentation in the preceding three paragraphs of amounts adjusted for deferred compensation expense better reflect operating results for the quarter and first half ended July 3, 2010 as compared to the quarter and first half ended July 4, 2009 and, accordingly, provides additional insight of the underlying operations of the Company.
Other income (expense), net, was $(2,058) in second quarter 2010 compared to $1,821 in second quarter 2009, a decrease of $3,879. Other income (expense), net, was $1,358 in first half 2010 compared to $1,441 in first half 2009, a decrease of $83. The second quarter decrease principally reflects a $3,680 unfavorable net decrease in the fair value of trading securities investments used to hedge deferred compensation liabilities and a $472 unfavorable net decrease in foreign exchange transactions. The first half decrease principally reflects a $2,067 unfavorable net decrease in the fair value of trading securities investments used to hedge deferred compensation liabilities which was substantially offset by $1,953 favorable net increase in foreign exchange transactions. The income (expense),on such trading securities was $(2,472) and $1,208 in second quarter 2010 and 2009, respectively, and $(1,186) and $881 in first half 2010 and 2009, respectively Such income or (expense) was substantially offset by a like amount of (expense) or income in aggregate product cost of goods sold and selling, marketing, and administrative expenses in the respective periods as discussed above. The second quarter and first half 2010 (expense) relating to trading securities principally reflects decline in the equity markets in the respective 2010 periods, and the second quarter and first half 2009 income principally reflect market appreciation in the equity markets in the respective 2009 periods.
Net earnings were $8,471 in second quarter 2010 compared to $10,338 in second quarter 2009, and earnings per share were $0.15 and $0.18 in second quarter 2010 and second quarter 2009, respectively, a decrease of $.03 or 16.7%. First half 2010 net earnings were $17,556 compared to first half 2009 net earnings of $18,658, a $1,102 or 5.9% decrease. First half net earnings per share were $0.31 in 2010 compared to $0.32 per share in first half 2009, a decrease of $0.01 per share or 3.1%. Earnings per share for second quarter and first half 2010 did benefit from the reduction in average shares outstanding resulting from Common Stock purchases in the open market by the Company. Average shares outstanding decreased from 57,910 in second quarter 2009 to 57,105 in second quarter 2010, and from 58,059 in first half 2009 to 57,197 in first half 2010.
The aforementioned net working capital amounts are principally reflected in aggregate cash and cash equivalents and short-term investments which totaled $67,088 as of the end of second quarter 2010 compared to $49,003 and $99,653 as of the end of second quarter 2009 and fourth quarter 2009, respectively. In addition, long term investments, principally debt securities comprising municipal bonds, were $61,721 (including $8,279 of Jefferson County auction rate securities (ARS) discussed below) as of the end of second quarter 2010, as compared to $49,488 and $58,136 as of the end of second quarter 2009 and fourth quarter 2009, respectively. Aggregate cash and cash equivalents and short and long-term investments were $128,809, $98,491, $157,789, for second quarter ended 2010 and 2009, and fourth quarter 2009, respectively. Investments in municipal bonds and other debt securities that matured during second quarters 2010 and 2009 were generally used to purchase the Companys Common Stock or were replaced with debt securities of similar maturities.
Read the The complete Report
