01—Abstract
Summary
Summary of the 10-K filed September 27, 1995. Cited figures are marked; the original filing is the authoritative source.
Sysco Corporation's Form 10-K for the fiscal year ended July 1, 1995 reports sales of $12.12 billiona, up 11% from $10.94 billion in fiscal 1994, with net earnings of $251.8 million ($1.38 per share), up 16% from $216.8 million.
The company describes itself as engaged in marketing and distribution of food and related products to the foodservice or "away-from-home-eating" industry, serving traditional customers such as restaurants, hospitals, schools and hotels, as well as chain restaurants through its SYGMA Network. Restaurants made up 60%b of sales in fiscal 1995. Management cites this as the nineteenth consecutive year of increased earnings, and the filing reports a return on average shareholders' equity of approximately 19% in 1995.
Operating expenses were 14.3% of sales in fiscal 1995, unchanged from 1994, and the effective tax rate was approximately 40%. Net cash from operating activities rose to $336.9 millionc, and capital expenditures were $201.6 million, with fiscal 1996 capital spending expected in the range of $210 million to $230 million. Long-term debt was $541.6 million, with long-term debt to capitalization of 28% at July 1, 1995, down from 30% a year earlier.
Total assets reached $3.09 billiond and shareholders' equity $1.40 billion. The company issued $150 million of 6.5% senior notes due 2005 in June 1995, priced at 99.4% of par, and repurchased 2.1 million shares for $53.2 million during the year.
Quarterly dividends rose to eleven cents per share from nine cents, with annual dividends of $.40 per share. Management states that pending legal proceedings are not expected to have a material adverse effect on the company's financial position or results of operations.
02—Key points
Key Highlights
- Sales rose 11% to $12.12 billion in fiscal 1995, from $10.94 billion in fiscal 1994.
- Net earnings increased 16% to $251.8 million, or $1.38 per share, from $216.8 million, or $1.18 per share.
- Operating expenses were 14.3% of sales in fiscal 1995, consistent with 14.3% in fiscal 1994.
- Return on average shareholders' equity was approximately 19% in 1995, compared with 18% in 1994 and 1993.
- Operating cash flow reached $336.9 million, while capital expenditures totaled $201.6 million.
- Long-term debt to capitalization fell to 28% at July 1, 1995, from 30% a year earlier, and the company issued $150 million of 6.5% senior notes due 2005.
- The quarterly dividend was raised to eleven cents per share from nine cents, and the company repurchased 2.1 million shares for $53.2 million.
03—Questions
Frequently Asked Questions
How much of Sysco's business comes from restaurants, and how concentrated is its customer base?
Restaurants accounted for 60% of sales in fiscal 1995. The filing states that no single traditional foodservice customer accounted for as much as 5% of sales, and no chain restaurant customer accounted for as much as 3%.
How much is Sysco planning to spend on capital projects?
The company expects capital expenditures of $210 million to $230 million in fiscal 1996, following $201.6 million in fiscal 1995. The filing says the spending is for constructing and modernizing distribution facilities, including full-service facilities planned near Milwaukee, Wisconsin and Tampa, Florida.
What is Sysco's debt position?
Long-term debt was $541.6 million at July 1, 1995, and about 71% of total debt was at fixed rates averaging 7.42%. Long-term debt to capitalization was 28%, down from 30% a year earlier. The company also issued $150 million of 6.5% senior notes due 2005 in June 1995.
How has Sysco's earnings record been?
Management describes fiscal 1995 as the nineteenth consecutive year of increased earnings. Net earnings rose 16% to $251.8 million, and earnings per share were $1.38, compared with $1.18 in fiscal 1994.
04—Continue