Seneca(SENEA) ZACKS·2024-11-07 18:11Core Viewpoint - Seneca Foods Corporation reported a significant decline in earnings per share (EPS) for the second quarter of fiscal 2025, alongside mixed revenue performance across its product segments [1][7]. Revenue Performance - Seneca Foods registered revenues of $425.5 million in the fiscal second quarter, reflecting a year-over-year increase of 4.4% due to higher sales volumes, product mix, and increased selling prices [2]. - Canned vegetables revenues were $351.3 million, up 6.9% from the previous year, while frozen vegetables revenues decreased by 9.2% to $39.1 million [3]. - Fruit products revenues were $22.3 million, down 2.1%, snack products revenues were $4 million, down 5.1%, and revenues in the Other category totaled $8.8 million, down 0.3% [4]. Profitability Metrics - The gross margin for the quarter was 10.1%, a decrease from 14.3% in the prior year, primarily due to elevated costs [5]. - Operating income totaled $24.7 million, down 35.8% year over year, and net income was $13.3 million, down 46.3% [7]. - FIFO EBITDA for the quarter was $53.5 million, reflecting a decline of 13.5% from the previous year [7]. Operating Expenses - Selling, general, and administrative expenses decreased by 14.1% year over year to $18.1 million [6]. Liquidity and Debt Management - At the end of the second quarter, cash and cash equivalents were $9.5 million, up from $5.5 million at the end of the first quarter, while total debt decreased to $514.5 million from $580.5 million [8]. - Cumulative net cash provided by operating activities was $125.9 million, compared to a net cash used of $26.3 million a year ago [9]. Overall Assessment - The company showed encouraging top-line results, particularly in the canned vegetables segment, but faced disappointing bottom-line results and lower revenues from most product categories, alongside a contraction in gross margin [10].