Table B
Brand
Company
Popsicle
Klondike
Eskimo Pie
Snickers
Weight Watchers
Unilever
Empire of Carolina
Eskimo Pie
Mars
H.J. Heinz
Unit Share
7.6%
5.4%
5.3%
4.8%
4.3%
Exhibit 1
1987
Income Statement Data (in thousands):
Net salesa
Cost of goods sold
Gross profita
Advertising and sales promotions
General and administrative
Operating income (loss)
Interest income
Interest expense
Other income (expense)-netb
Income taxes
Net income
Balance Sheet Data (in thousands):
Cash
Working capital
Total assets
Long-term debt
Stockholders' equity
Per Share Data:
Weighted average number
of common shares outstanding
Net income per share
Cash dividend per share
a
30,769 $
21,650
9,119
4,742
6,068
(1,691)
308
(88)
1,738
96
171 $
36,695 $
25,635
11,060
4,241
5,403
1,416
550
(107)
(77)
729
1,053 $
46,709
31,957
14,752
5,030
6,394
3,328
801
(88)
(108)
1,511
2,422
5,550
9,342
20,857
1,269
16,162
8,109
11,107
23,006
1,094
17,215
10,723
10,830
26,159
919
18,215
3,316
0.05
-
3,316
0.32
-
$
$
3,316
0.73
0.40
Beginning in 1991 the Company increased prices for products and assumed responsibility for advertising and sales promotion costs
previously shared with licensees. This change in business practice accounts for approximately one-half of the increase in net sales for
b
Includes the gain on sale of building of approximately $1,700,000 in 1987.
1990
$
$
47,198
31,780
15,418
5,130
7,063
3,225
1,004
(67)
(20)
1,616
2,526
13,191
11,735
29,518
744
19,496
3,316
0.76
0.40
Exhibit 2
Operating activities:
Net income
Depreciation
Amortization
Deferred income taxes
Pension liability and other
Decrease (increase) in receivables
Decrease (increase) in inventories and
prepaid expenses
Increase (decrease) in payables to parent
Increase (decrease) in accounts payable and
accrued expenses
Net cash provided by operating activities
2,422 $
1,006
175
250
(154)
1,212
(524)
2,054
2,526
1,352
118
(58)
(156)
(734)
(51)
(621)
143
6,595
3,006
5,382
Investing activities
Capital expendituresa
Other
Net cash used in investing activities
(2,358)
(121)
(2,479)
(1,311)
(101)
(1,412)
Financing activities
Cash dividends
Principal payments on long-term debt
Net cash used in financing activities
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
(1,327)
(175)
(1,502)
2,614
8,109
10,723 $
(1,327)
(175)
(1,502)
2,468
10,723
13,191
Capital expenditures in 1989 are principally related to equipment acquired for use by licensees and, in 1990, an expansion of an ingredients ma
ecember 31,
Exhibit 3 Distribution and Market Share of Eskimo Pie, Heath, and Welch's Frozen Novelties
1987
1988
1989
1990
1991
76.3%
78.1%
91.2%
95.6%
97.9%
3.3
3.9
5.7
6.8
7.5
Exhibit 4
Year
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
Industry
Revenues
(millions)
$590
680
770
940
1,100
1,300
1,400
1,500
1,355
1,332
1,321
Units
Sold
(millions)
N/A
N/A
457
525
577
643
681
717
637
623
590
% Change
in Sales
N.A
15.3%
13.2
22.1
17.0
18.2
7.7
7.1
-9.7
-1.7
-0.8
Average
Price
N/A
N/A
$1.69
1.79
1.90
2.02
2.06
2.09
2.13
2.19
2.24
Advertising
Spending
(millions)
$2
4
17
23
32
44
77
38
26
40
21
Exhibit 6
1991
Net Sales
Operating expenses
Operating income
Interest income
Interest expense
Pretax income
Income taxes
Tax rate
Net income
Margin
Earning per share
Average shares outstanding
a
$56,655
52,610
4,045
828
52.5
4,821
1,928
40.00%
$2,893
5.10%
$0.87
3,316.00
$59,228
54,755
4,473
890
38.5
5,324
2,130
40.00%
$3,195
5.40%
$0.96
3,316.00
$59,961
55,337
4,624
1,058
24.5
5,657
2,263
40.00%
$3,394
5.70%
$1.03
3,316.00
Exhibit 7
$
$
14.00 $
4.52
18.52 $
16.00
4.52
20.52
3,316
61,412 $
3,316
68,044
3,749 $
12.38
3,749
14.15
2,789
2,789
14.00
4.52
18.52
51, 645
16.00
4.52
20.52
57,222
Exhibit 8b
Company
Sales
Cash Flow
ab
Operating
Incomeb
Net Incomeb
97.0
6.7
10.2
3.7
354.9
24.1
37.0
15.9
243.1
16.8
37.4
8.8
35.1
2.7
3.9
1.8
2,899.2
292.3
463.0
219.5
207.9
32.5
47.2
25.5
Cash flow is defined as earnings before interest after tax (EBIAT) plus depreciation.
Total Debt
26.3
110.1
2.8
113.1
534.0
44.3
45.1
51.4
89.8
11.1
37.4
3.1
1,335.3
4,002.5
282.9
152.8
728.8
0.0
Exhibit 8c
Jan-88
Feb-88
Mar-88
Apr-88
May-88
Jun-88
Jul-88
Aug-88
Sep-88
Oct-88
Nov-88
Dec-88
Jan-89
Feb-89
Mar-89
Apr-89
May-89
Jun-89
Jul-89
Aug-89
Sep-89
Oct-89
Nov-89
Dec-89
Jan-90
Feb-90
Mar-90
Apr-90
May-90
Jun-90
Jul-90
Aug-90
Monthly Stock Returns for the S&P500 Composite and for Comparable Companies
BEN &
JERRY'S
-0.0517
0.0909
0.1500
-0.0580
-0.0462
0.0484
0.0000
-0.0308
0.0318
0.1462
-0.1544
-0.0635
0.0848
-0.0781
-0.0678
0.1636
-0.0156
-0.0476
0.1167
-0.0149
0.0152
-0.1194
0.0339
0.0328
-0.1587
0.0189
0.0370
-0.0714
0.3077
0.0147
0.0870
-0.2267
DREYER'S
0.1509
-0.0492
0.0259
0.1513
0.0073
0.1304
-0.0256
-0.0658
0.0845
0.1299
0.0115
0.0682
-0.0426
-0.1000
-0.0864
0.0811
0.2125
0.0103
0.0918
0.2056
-0.0698
-0.1583
0.1584
-0.0513
-0.0811
0.1765
0.0833
0.0154
0.1591
0.0654
-0.0245
-0.1006
EMPIRE OF
CAROLINA STEVE'S ICE
INC
CREAM
0.0677
0.9000
0.1212
-0.1842
0.0541
0.0323
0.0282
-0.0625
-0.0750
0.1000
0.0541
0.1818
0.0282
0.0256
0.1750
-0.0250
-0.1277
-0.1026
-0.0707
-0.0571
0.0000
-0.0909
0.3421
0.1000
0.0220
0.3939
0.1923
0.0761
-0.0161
-0.0505
-0.1784
0.0000
0.0600
-0.1277
0.1132
0.0976
0.3241
0.0444
0.0577
0.0000
0.1273
-0.0426
0.1629
-0.1000
-0.0694
0.0741
-0.2836
-0.0460
-0.1875
-0.1566
-0.2051
0.3000
0.1613
-0.0769
0.3056
-0.2619
-0.2979
0.0645
0.1212
-0.3636
-0.1892
0.0714
-0.1500
-0.1778
HERSHEY
FOODS
0.0561
0.0301
-0.0660
-0.0303
-0.0248
0.0591
0.0000
-0.0284
0.0526
0.0950
-0.0804
0.0400
-0.0144
-0.0029
0.0443
0.0708
0.0150
0.1572
0.0566
-0.0516
0.0000
0.0379
0.0130
0.0399
-0.1115
-0.0841
0.0948
0.0158
0.0913
0.0750
0.0266
-0.0065
TOOTSIE
ROLL
0.0122
-0.0763
0.0141
0.0443
0.0509
-0.0183
0.0370
-0.0357
0.0101
0.0408
-0.0863
0.0320
-0.0750
-0.0721
0.0372
0.0628
0.0546
0.0666
0.0931
0.0444
0.0229
-0.0451
0.0727
-0.0086
-0.0719
0.0590
0.0244
0.0386
0.1689
0.0129
-0.0114
-0.2052
S&P 500
0.0404
0.0418
-0.0333
0.0094
0.0032
0.0433
-0.0054
-0.0386
0.0397
0.0260
-0.0189
0.0147
0.0711
-0.0289
0.0208
0.0501
0.0351
-0.0079
0.0884
0.0155
-0.0065
-0.0252
0.0165
0.0214
-0.0688
0.0085
0.0243
-0.0269
0.0920
-0.0089
-0.0052
-0.0943
Sep-90
Oct-90
Nov-90
Dec-90
Jan-91
Feb-91
Mar-91
Apr-91
May-91
Jun-91
Jul-91
Aug-91
Sep-91
Oct-91
Nov-91
Dec-91
-0.0948
-0.0095
0.0577
0.0727
0.0848
0.0938
0.1000
-0.0260
0.0667
-0.0375
0.2857
0.1515
0.1491
0.0458
0.0146
0.0648
-0.0140
0.0213
0.2569
-0.0422
0.1047
0.1368
0.0944
-0.1017
0.0094
0.0766
0.0000
-0.0174
-0.0425
0.0093
0.0734
0.1897
-0.0196
0.0000
0.0000
-0.1200
0.2046
-0.0566
-0.0800
0.2174
0.2143
-0.0441
-0.0154
0.1875
0.1053
0.2143
0.0392
-0.2642
-0.4324
-0.0476
0.7000
-0.2647
-0.0800
0.1304
0.1154
0.3103
-0.1974
-0.0492
-0.0345
0.9643
-0.1273
0.6250
-0.2821
0.8214
-0.0493
-0.0450
0.0210
0.0714
0.0600
0.0088
0.0251
-0.0184
0.0991
-0.0712
0.0276
0.0059
-0.0716
0.0611
-0.0729
0.1678
0.0235
-0.0036
0.1000
0.0599
0.0215
0.0991
0.0875
0.0363
0.0225
-0.0110
0.1114
0.0178
0.0208
0.0622
0.0364
0.1453
-0.0512
-0.0067
0.0599
0.0248
0.0415
0.0673
0.0222
0.0004
0.0386
-0.0479
0.0449
0.0197
-0.0191
0.0119
-0.0439
0.1116
Exhibit 9
I. Treasury Yields
90 day
Six months
One year
Five years
Ten years
Thirty years
II. Corporate Borrowing Rates
Long-term Bond Yields
AA
A
BBB
BB
B
Floating Rates
Prime rate
Prime commercial paper (6 months)
4.56%
4.61%
4.64%
6.62%
7.42%
7.92%
8.74%
9.27%
9.56%
11.44%
14.68%
7.50%
4.76%