senea20231231

senea20231231_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark one)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 30, 2023

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 0-01989

Seneca Foods Corporation

(Exact name of Registrant as specified in its charter)

New York	16-0733425
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

350 WillowBrook Office Park, Fairport, New York	14450
(Address of principal executive offices)	(Zip code)

(585) 495-4100

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol

Name of Exchange on

Which Registered

Common Stock Class A, $.25 Par

SENEA

NASDAQ Global Select Market

Common Stock Class B, $.25 Par

SENEB

NASDAQ Global Select Market

Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐

Accelerated filer ☒

Non-accelerated filer ☐

Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by checkmark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares outstanding of each of the Registrant’s classes of common stock as of January 26, 2024, are as follows:

Class	Shares Outstanding
Common Stock Class A, $0.25 Par	5,456,549
Common Stock Class B, $0.25 Par	1,660,953

Table of Contents

Seneca Foods Corporation

Quarterly Report on Form 10-Q

Table of Contents

PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets (Unaudited)	1
Condensed Consolidated Statements of Net Earnings (Unaudited)	2
Condensed Consolidated Statements of Comprehensive Income (Unaudited)	2
Condensed Consolidated Statements of Cash Flows (Unaudited)	3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited)	4
Notes to Condensed Consolidated Financial Statements (Unaudited)	5
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3. Quantitative and Qualitative Disclosures about Market Risk	23
Item 4. Controls and Procedures	23
PART II. OTHER INFORMATION
Item 1. Legal Proceedings	24
Item 1A. Risk Factors	24
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	24
Item 3. Defaults Upon Senior Securities	24
Item 4. Mine Safety Disclosures	24
Item 5. Other Information	25
Item 6. Exhibits	25
SIGNATURES	26

SENECA FOODS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

(Unaudited)


	December 30, 2023			December 31, 2022			March 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	7,168		$	5,579		$	5,236
Restricted cash		7,251			6,937			7,020
Accounts receivable, net of allowance for credit losses of $51, $77 and $34, respectively		89,928			94,947			97,101
Inventories		968,889			774,121			670,898
Refundable income taxes		1,153			-			6,976
Other current assets		3,906			5,898			6,808
Total current assets		1,078,295			887,482			794,039
Property, plant and equipment, net		307,714			297,676			301,212
Right-of-use assets operating, net		20,538			26,012			23,235
Right-of-use assets financing, net		23,146			33,882			33,571
Pension assets		59,003			51,786			59,304
Other assets		841			1,670			1,360
Total assets	$	1,489,537		$	1,298,508		$	1,212,721


Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	125,182		$	156,065		$	69,232
Deferred revenue		8,708			14,412			9,956
Accrued vacation		10,997			11,682			11,143
Accrued payroll		13,083			12,469			16,772
Other accrued expenses		29,530			26,921			23,293
Income taxes payable		5,967			2,427			-
Current portion of long-term debt and lease obligations		30,582			21,344			25,792
Total current liabilities		224,049			245,320			156,188
Long-term debt, less current portion		611,349			399,948			432,695
Operating lease obligations, less current portion		13,617			17,219			16,675
Financing lease obligations, less current portion		13,102			17,382			17,293
Deferred income tax liability, net		30,820			34,434			31,481
Other liabilities		3,162			3,933			3,639
Total liabilities		896,099			718,236			657,971
Commitments and contingencies
Stockholders' equity:
Preferred stock		351			607			351
Common stock, $0.25 par value per share		3,050			3,043			3,049
Additional paid-in capital		99,430			98,862			99,152
Treasury stock, at cost		(195,706	)		(170,088	)		(168,573	)
Accumulated other comprehensive loss		(20,488	)		(26,468	)		(20,488	)
Retained earnings		706,801			674,316			641,259
Total stockholders' equity		593,438			580,272			554,750
Total liabilities and stockholders’ equity	$	1,489,537		$	1,298,508		$	1,212,721

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Table of Contents

SENECA FOODS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF NET EARNINGS

(In thousands, except per share data)

(Unaudited)

	Three Months Ended					Nine Months Ended
	December 30, 2023			December 31, 2022		December 30, 2023			December 31, 2022
Net sales	$	444,481		$	473,254	$	1,150,620		$	1,178,289

Costs and expenses:
Cost of product sold		390,448			419,465		983,180			1,059,878
Selling, general and administrative		22,921			21,914		63,801			60,636
Plant restructuring		(42	)		1,829		107			1,937
Other operating expense (income), net		392			229		(1,151	)		(2,411	)
Total costs and expenses		413,719			443,437		1,045,937			1,120,040
Operating income		30,762			29,817		104,683			58,249
Other income and expenses:

SEC Form 10-Q filed by Seneca Foods Corp.