NYSE$TR

Tootsie Roll Industries Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Net sales and net earnings decreased due to the Covid-19 pandemic.

Tootsie Roll Industries reported a decrease in net sales and net earnings for the second quarter of 2020, primarily due to the adverse effects of the Covid-19 pandemic, which led to closures of businesses and changes in consumer shopping habits.

  • Second quarter net sales decreased by 25% to $79,796,000 compared to $106,021,000 in 2019.
  • Second quarter net earnings decreased to $7,388,000 from $11,556,000 in the prior year.
  • Net earnings per share decreased by 35% to $0.11 compared to $0.17 in 2019.
  • Sales decline and lost profit margin were the principal drivers of the decline in net earnings.

Headline financials

Total Revenue

$80.6M

Previous: $107M-24.6%
EPS (adj)

$0.11

Previous: $0.17-35.3%
Capital Expenditures

-$6.41M

Previous: -$9.95M+35.5%
Free Cash Flow

$978K

Previous: $1.61M-39.3%
Net Income

$7.39M

Previous: $11.6M-36.1%
Operating Income

$493K

Previous: $12.5M-96.1%
Gross Profit

$30.1M

Previous: $40.7M-26.2%
Cash & Equivalents

$106M

Previous: $57.9M+83.7%
Total Assets

$975M

Previous: $949M+2.7%

Revenue & EPS history

Tootsie Roll · Revenue · Quarterly

$80.6M

Q2 2020-24.6%vs Q2 2019

Forward guidance

The company anticipates that the adverse trends experienced in the second quarter of 2020 will continue to affect net earnings in the third and fourth quarters of 2020.

Tailwinds

  • The Company is well positioned to return to higher sales and profits when the adverse effects of the Covid-19 pandemic subside.
  • We are focused on the longer term.
  • We are continuing to make investments in plant manufacturing operations to meet new consumer and customer demands.
  • Achieve product quality improvements.
  • Increase operational efficiencies and provide genuine value to consumers.

Headwinds

  • The Company has continued to experience declines in customer orders and sales in third quarter 2020.
  • This trend is expected to adversely affect net earnings in third quarter 2020
  • This trend is likely to affect net earnings in fourth quarter 2020 as well.
  • The effects of Covid-19 pandemic are unprecedented.
  • The Company is unable to determine its effects on its sales and net earnings for the balance of 2020

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.2%

Avg return

Earnings day

-0.3%

Avg return

5 days after

+1.4%

Avg return

30 days after

46%

31 / 67 earnings

Positive

+4.0%

Q3 2023

Best reaction

-6.8%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.8%+2.8%-4.3%
Q3 2025-6.8%-15.2%-8.5%
Q1 2025+2.8%+1.2%+9.3%
Q4 2024-1.0%-1.1%+0.4%
Q3 2024+0.7%+2.2%+11.5%
Q2 2024-0.9%-2.5%+9.5%
Q1 2024-0.7%-1.1%-3.7%
Q4 2023+0.6%+1.1%+2.0%
Q3 2023+4.0%+5.5%+17.2%
Q2 2023-2.0%-2.8%-9.7%
Q1 2023+1.7%-2.5%-0.2%
Q4 2022-3.1%+1.5%+1.6%
Q3 2022-1.8%+1.0%+10.0%
Q2 2022+1.4%+2.9%+7.8%
Q1 2022-2.6%-2.5%-9.4%
Q4 2021+0.7%+1.3%+4.5%
Q3 2021+1.1%+2.9%+1.6%
Q2 2021-2.1%+1.4%-6.6%
Q1 2021-2.0%-3.8%-4.8%
Q4 2020-4.3%+0.2%+11.8%
Q3 2020+0.7%+4.9%-0.2%
Q2 2020-4.3%-3.2%-1.2%
Q1 2020+0.6%-1.3%-5.3%
Q4 2019-1.0%+0.4%+7.2%
Q3 2019+1.0%-1.0%+1.7%
Q2 2019-1.9%+1.4%-0.6%
Q1 2019+1.8%-0.6%+2.7%
Q4 2018-0.3%+0.4%+1.7%
Q3 2018+3.5%+1.3%+14.8%
Q2 2018+1.0%-0.3%-2.2%
Q1 2018+0.0%+0.5%-1.2%
Q4 2017+1.6%+1.8%-9.0%
Q3 2017-2.5%-3.6%-0.4%
Q2 2017+0.8%-0.1%-1.4%
Q1 2017+2.5%-1.6%-6.9%
Q4 2016+0.4%-1.6%+3.7%
Q3 2016+1.7%+1.4%+9.9%
Q2 2016-0.2%-2.0%+0.3%
Q1 2016+1.4%
Q4 2015-0.7%
Q3 2015-0.7%
Q2 2015-1.6%
Q1 2015-0.3%
Q4 2014+0.4%
Q3 2014+0.2%
Q2 2014+0.2%
Q1 2014-2.2%
Q4 2013-1.2%
Q3 2013+2.1%
Q2 2013-0.6%
Q1 2013-2.3%
Q2 2012+2.2%
Q4 2012+0.8%
Q3 2012-1.7%
Q1 2012+1.3%
Q2 2011-1.0%
Q4 2008-1.0%
Q4 2011-1.0%
Q3 2011+2.2%
Q1 2010+0.5%
Q1 2011+0.5%
Q2 2010-2.0%
Q4 2010-2.0%
Q3 2009-1.0%
Q3 2010-1.0%
Q4 2009-0.3%
Q2 2009-0.3%

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