TOOTSIE ROLL INDUSTRIES, INC. Tootsie Roll Industries, Inc. has been engaged in chocolate covered cherries, Dots, Crows, Junior the manufacture and sale of confectionery Mints, Junior Caramels, Charleston Chew, Sugar products for 119 years. Our products are primarily Daddy, Sugar Babies, Andes, Fluffy Stuff cotton sold under the familiar brand names: Tootsie Roll, candy, Dubble Bubble, Razzles, Cry Baby and Tootsie Roll Pops, Caramel Apple Pops, Child's Nik-L-Nip.
Play, Charms, Blow Pop, Blue Razz, Cella's
We believe that the differences among companies We invest in the latest and most productive are attributable to the caliber of their people, and equipment to deliver the best quality product to therefore we strive to attract and retain superior our customers at the lowest cost.
people for each job.
Webelieve that an open family atmosphere at work We seek to outsource functions where appropriate combinedwith professional management fosters and to vertically integrate operations where it is cooperation and enables each individual to financiallyadvantageous to do so.
maximize his or her contribution to the Company
and realize the corresponding rewards.
We view our well known brands as prized assets to Wedo not jeopardize long-term growth for be aggressively advertised and promoted to each immediate, short-term results. new generation ofconsumers.
We maintain a conservative financial posture in the
deployment and management of our assets.We conduct business with the highest ethical We run a trim operation and continually strive to standards and integrity which are codified in the eliminate waste, minimize cost and implement Company's ''Code of Business Conduct and performance improvements. Ethics.''
December 31,
2015 2014
(in thousands except per share data)
Net Product Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $536,692 | $539,895 |
Net Earnings Attributable to Tootsie Roll Industries, Inc. . . . . . . . . | 66,089 | 63,298 |
Working Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 221,744 | 200,162 |
Net Property, Plant and Equipment . . . . . . . . . . . . . . . . . . . . . . . | 184,586 | 190,081 |
Shareholders' Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 698,183 | 690,809 |
Average Shares Outstanding* . . . . . . . . . . . . . . . . . . . . . . . . . . | 61,441 | 62,358 |
Per Share Items* | ||
Net Earnings Attributable to Tootsie Roll Industries, Inc. . . . . . . . . | $1.08 | $1.02 |
Cash Dividends Paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 0.35 | 0.32 |
*Adjusted for stock dividends. |
Ellen R. Gordon, Chairman and Chief Executive Officer
Net product sales in 2015 were $537 million Although our overall comparative ingredient costs compared to $540 million in 2014. The Company in 2015 were somewhat more favorable compared had another strong Halloween selling season, and to the prior year, certain key ingredient costs were many of our core brands achieved sales gains higher in 2015, and we expect overall ingredient over the prior year. Sales were, however, adversely costs to be higher in 2016. Still, we are pleased to affected by translation of sales made in foreign report that we are making progress on restoring currencies, principally Mexico and Canada, due to our margins to their historical levels while we the relative strength of the U.S. dollar. continue to strive to implement measures to
Net earnings in 2015 were $66 million compared to
improve every aspect of our operations.
$63 million in 2014, an increase of 4%. Earnings Other highlights of 2015 include:
per share were $1.08 in 2015 compared to $1.02 in •Cash dividends were paid for the seventy-
the prior year, an increase of $0.06 per share or thirdconsecutive year. 6%. Earnings per share increased at a higher rate
than earnings due to stock repurchases that • The quarterly cash dividend rate was
resulted in fewer shares outstanding in 2015. increased from 8 cents to 9 cents.
2015 net earnings benefited from lower • Our fifty-first consecutive 3% stock
distribution expenses including the effects of dividend was distributed.
declining fuel costs and improved operating • 1,047,335 shares of the Company'sefficiencies, improving manufacturing plant common stock were purchased in the openefficiencies driven by capital investments, more market for an aggregate price offavorable ingredient costs, and ongoing cost $33million.
containment programs. Net earnings in 2015 were
also favorably impacted by a lower effective • Capital expenditures were $16 million.
income tax rate.
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These actions were accomplished using internally choose. In order to succeed, our products must generated funds. We ended the year with generate the margins and sell-throughs that
$253 million of cash and investments net of interest retailers demand, and they must be presented in bearing debt and investments that hedge deferred contemporary formats, presentations and pack compensation. This financial strength enables the sizes, which are constantly evolving to meet Company to invest in the latest, highly efficient changing consumer preferences.
production technologies which are critical to us as And so it is that our brands must evolve ina low cost producer of high quality, value-oriented, responseto the changes and challenges of branded confections.today's market while they remain pure and
Our financial resources enable us to reinvest in our satisfying, preserving their iconic appeal to our well-known brands, develop new products and many long term consumers. Line extensions and line extensions, distribute dividends, repurchase new products are two of the ways we accomplish Company stock and to consider complimentary this and a number of these were introduced in business acquisition opportunities as they may 2015.
arise.We are active in all of these aspects of our Capitalizing on the popularity of our line of fruit business and can do so without jeopardizing theflavored Tootsie Rolls, in 2015 we re-launched our long-term financial stability of the Company. TootsieFruit Chews and added a companion
product, Tootsie Fruit Chew Pops. Tootsie Fruit Chews have the same chewy consistency of a
Halloween has historically been our peak selling Tootsie Roll and come in a delicious assortment season, and remained so this year. We offer a full including cherry, orange, lemon, and lime. They range of items in a variety of pack sizes and also form the centers of our new Tootsie Fruit Chew configurations, each of which is suitable for one or Pops, where they are encased in complimentary more of the diverse classes of trade in which we flavored hard candy shells to create colorful, market our products. Seasonal sales are further dual-flavored treats.
supported by targeted promotions in the most significant channels, which include mass merchandisers, drug store chains, warehouse clubs, grocery and dollar stores. Packaged goods are in strong demand in these channels, and we offer popular assortments of mixed bags as well as straight goods for Halloween and throughout the year.
We also offer market-leading items in the larger- sized ''theater box'' category, which, depending on the bulk and density of the product, generally contain between 3.5 and 7 ounces of candy. This category is not restricted to distribution in movie theaters and can be found in a variety of retail outlets. With vivid graphics on their large front panel, theater boxes give an appealing visual image and are offered at a price point that makes them an attractive consumer value.
Our products can be found virtually anywhere candy is sold. The market is intensely competitive,
and retailers are highly selective as to the products Tootsie Fruit Chews and they carry. Likewise, consumers have a wide Tootsie Fruit Chew Pops variety of confectionery items from which to
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Tootsie Roll Industries Inc. issued this content on 10 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 05 April 2016 07:53:28 UTC
