Earnings....Stonville should be closing by early June...
Tuesday April 13, 9:03 pm Eastern Time
Company Press Release
SOURCE: Delta and Pine Land Company
Delta and Pine Land Company Announces Second Quarter Fiscal 1999 Operating Results
SCOTT, Miss., April 13 /PRNewswire/ -- Delta and Pine Land Company (NYSE: DLP - news), a commercial breeder, producer and marketer of cotton planting seed, today announced results for the second quarter ended February 28, 1999.
The Company reported net income before unusual charges of $6,197,000 or $0.15 per diluted share for the quarter ended February 28, 1999 compared to net income of $9,757,000 or $0.24 per diluted share in the comparable period in fiscal 1998. Net sales for the quarter ended February 28, 1999 were $72,800,000 compared to $77,245,000 in the comparable period in fiscal 1998. Net sales and licensing fees reflect an increase in domestic cotton acreage expected to be planted in 1999 over 1998 resulting in a 10% increase in gross units shipped in the quarter ended February 28, 1999 over the units shipped in the comparable 1998 quarter. However, net sales and licensing fees also reflect a reserve established for estimated seed returns in the second quarter of 1999 at a level twice that recorded in the comparable quarter in 1998 due to the present uncertainty of farmers' ability to obtain financing and the related impact on farmers' planting intentions, as well as the impact that commodity prices and weather may have on the ultimate number of acres that will be planted. Net income per share for the quarter ended February 28, 1999 after unusual charges was $2,382,000 or $0.06 per diluted share compared to net income of $9,757,000 or $0.24 per diluted share in the comparable period in fiscal 1998. The number of shares used in the determination of diluted earnings per share in 1999 was 40,819,000 compared to 40,397,000 for the comparable period in fiscal 1998.
The Company reported net income before unusual charges of $236,000 or $0.01 per diluted share for the six months ended February 28, 1999 compared to $5,122,000 or $0.13 per diluted share for the comparable period in fiscal 1998. Net sales for the six months ended February 28, 1999 were $79,996,000 compared to $82,585,000 in the same period in fiscal 1998 and were affected by establishing a reserve for seed returns in 1999 at a level that was twice the level recorded in 1998, the effect of which was partially offset by increased sales by the Company's joint venture in China and its Australia subsidiary. As planned, operating expenses (before unusual charges) increased $2,900,000 due primarily to higher research and development and general and administrative costs attributable to both domestic and foreign operations. The number of shares used in the determination of diluted earnings per share for the six months ended February 28, 1999 was 38,397,000 compared to 40,259,000 in the comparable period of fiscal 1998.
Sales are recorded (net of anticipated returns) when seed is shipped, primarily in the Company's second and third quarters. Similarly, Bollgard(TM) and Roundup Ready® gene technology license fees are recorded based on acres that are expected to be planted with such seed as it is shipped. In the fourth quarter, sales incentives, seed returns, actual licensed acres of seed containing the Bollgard and Roundup Ready gene technology and related items are finalized and adjustments made for such items which are estimated in the first three quarters. It is the nature of agricultural seed businesses that supply, demand and their timing are affected by many variables, including weather, commodity prices, farmer financing, and governmental policy. Due to the seasonal nature of the seed business, the Company typically incurs losses in its first and fourth quarters. Additional risks and uncertainties with respect to forward-looking statements are described in management's discussion and analysis contained in the Company's Form 10-K for the year ended August 31, 1998 as well as the Company's latest filings with the Securities and Exchange Commission.
Delta and Pine Land Company is a commercial breeder, producer and marketer of cotton planting seed. Headquartered in Scott, Mississippi, with multiple offices in seven states and facilities in several foreign countries, DLP also breeds, produces and markets soybean planting seed. Delta and Pine Land Company common stock trades on the NYSE under the symbol ''DLP''.
DELTA AND PINE LAND COMPANY AND SUBSIDIARIES
Consolidated Statements of Income
For The Three Months Ended February 28,
(In thousands, except per share amounts)
1998 1999
NET SALES AND LICENSING FEES $77,245 $72,800
COST OF SALES 50,098 49,684
GROSS PROFIT 27,147 23,116
OPERATING EXPENSES:
RESEARCH AND DEVELOPMENT 3,964 4,880
SELLING 4,649 3,848
GENERAL AND ADMINISTRATIVE 2,214 3,094
UNUSUAL CHARGES PRIMARILY RELATED
TO THE MERGER -- 6,125
10,827 17,947
OPERATING INCOME 16,320 5,169
INTEREST EXPENSE, NET OF CAPITALIZED
INTEREST OF $42 IN 1998 AND $12 IN 1999 (895) (1,093)
OTHER 100 202
INCOME BEFORE INCOME TAXES 15,525 4,278
PROVISION FOR INCOME TAXES (5,744) (1,872)
NET INCOME 9,781 2,406
DIVIDENDS ON PREFERRED STOCK (24) (24)
NET INCOME APPLICABLE TO COMMON SHARES $ 9,757 $ 2,382
BASIC EARNINGS PER SHARE:
NET INCOME PER SHARE $ 0.26 $ 0.06
NUMBER OF SHARES USED IN BASIC EARNINGS
PER SHARE CALCULATION 37,858 38,422
DILUTED EARNINGS PER SHARE:
NET INCOME PER SHARE $ 0.24 $ 0.06
NUMBER OF SHARES USED IN DILUTED EARNINGS
PER SHARE CALCULATION 40,397 40,819
DELTA AND PINE LAND COMPANY AND SUBSIDIARIES
Consolidated Statements of Income
For The Six Months Ended February 28,
(In thousands, except per share amounts)
1998 1999
NET SALES AND LICENSING FEES $82,585 $79,996
COST OF SALES 53,371 54,552
GROSS PROFIT 29,214 25,444
OPERATING EXPENSES:
RESEARCH AND DEVELOPMENT 7,596 9,115
SELLING 7,525 7,678
GENERAL AND ADMINISTRATIVE 4,816 6,053
UNUSUAL CHARGES PRIMARILY RELATED
TO THE MERGER 47 7,022
19,984 29,868
OPERATING INCOME (LOSS) 9,230 (4,424)
INTEREST EXPENSE, NET OF CAPITALIZED
INTEREST OF $99 IN 1998 AND $44 IN 1999 (1,238) (1,624)
OTHER 166 (35)
INCOME (LOSS) BEFORE INCOME TAXES 8,158 (6,083)
(PROVISION) BENEFIT FOR INCOME TAXES (3,018) 2,051
NET INCOME (LOSS) 5,140 (4,032)
DIVIDENDS ON PREFERRED STOCK (48) (48)
NET INCOME (LOSS) APPLICABLE
TO COMMON SHARES $ 5,092 $ (4,080)
BASIC EARNINGS PER SHARE:
NET INCOME (LOSS) PER SHARE $ 0.13 $ (0.11)
NUMBER OF SHARES USED IN BASIC
EARNINGS PER SHARE CALCULATION 37,786 38,397
DILUTED EARNINGS PER SHARE:
NET INCOME (LOSS) PER SHARE $ 0.13 $ (0.11)
NUMBER OF SHARES USED IN DILUTED
EARNINGS PER SHARE CALCULATION 40,259 38,397
DELTA AND PINE LAND COMPANY AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For The Six Months Ended February 28,
(In thousands)
1998 1999
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 5,140 $ (4,032)
Adjustments to reconcile net income
(loss) to net cash provided by
(used in) operating activities:
Depreciation and amortization 3,427 3,288
Noncash items associated with
unusual charges -- 2,863
Minority interest in subsidiaries 728 2,238
Changes in current assets and liabilities:
Receivables 12,676 13,943
Inventories (35,590) (56,377)
Prepaid expenses 700 (3,410)
Accounts payable 997 7,094
Accrued expenses (30,438) (15,469)
Income taxes payable 1,141 3,081
Decrease in intangible and other assets 290 243
Net cash used in operating
activities (40,929) (46,538)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (6,336) (5,023)
Proceeds from sale of investment 1,350 --
Net cash used in investing
activities (4,986) (5,023)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments of short-term debt (3,861) (12,255)
Payments of long-term debt (35,092) (182)
Dividends paid (2,319) (2,325)
Proceeds from long-term debt 40,634 9,010
Proceeds from short-term debt 42,957 56,200
Proceeds from exercise of stock
options and tax benefit of stock
option exercises 3,797 1,600
Net cash provided by financing
activities 46,116 52,048
EFFECTS OF FOREIGN CURRENCY TRANSLATION (748) 654
NET (DECREASE) INCREASE IN CASH
AND CASH EQUIVALENTS (547) 1,141
CASH AND CASH EQUIVALENTS,
as of August 31 1,890 8,062
CASH AND CASH EQUIVALENTS,
as of February 28 $ 1,343 $ 9,203
SUPPLEMENTAL DISCLOSURES FOR CASH FLOW INFORMATION:
Cash paid during the six months for:
Interest paid, net of capitalized
interest $ 725 $ 1,650
Income taxes $ -- $ 140
DELTA AND PINE LAND COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
ASSETS FEBRUARY 28, 1998 AUGUST 31, 1998 FEBRUARY 28, 1999
CURRENT ASSETS:
CASH AND CASH
EQUIVALENTS $ 1,343 $ 8,062 $ 9,203
RECEIVABLES 82,761 104,779 90,836
INVENTORIES 78,476 50,497 106,874
PREPAID EXPENSES 1,467 1,194 4,604
INCOME TAX RECEIVABLE -- 5,562 2,481
DEFERRED INCOME TAXES 3,069 4,408 4,408
TOTAL CURRENT
ASSETS 167,116 174,502 218,406
PROPERTY, PLANT AND
EQUIPMENT, net 66,131 66,840 65,772
EXCESS OF COST OVER NET
ASSETS OF BUSINESSES
ACQUIRED, net 4,650 4,583 4,523
INTANGIBLES, net 3,536 3,488 3,495
OTHER ASSETS 2,159 2,378 2,128
$243,592 $251,791 $294,324
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
NOTES PAYABLE $ 39,355 $ 1,263 $ 45,208
ACCOUNTS PAYABLE 20,110 22,831 29,925
ACCRUED EXPENSES 60,758 92,042 76,573
INCOME TAXES PAYABLE 3,097 -- --
TOTAL CURRENT
LIABILITIES 123,320 116,136 151,706
LONG-TERM DEBT, less
current maturities 36,114 47,070 55,898
DEFERRED INCOME TAXES 4,038 5,020 5,020
MINORITY INTEREST IN
SUBSIDIARIES 1,719 2,914 5,152
STOCKHOLDERS' EQUITY:
PREFERRED STOCK 80 80 80
COMMON STOCK 3,800 3,847 3,855
CAPITAL IN EXCESS
OF PAR VALUE 26,634 35,867 37,459
RETAINED EARNINGS 51,715 46,109 39,752
ACCUMULATED OTHER
COMPREHENSIVE LOSS (1,655) (3,079) (2,425)
TREASURY STOCK,
114.6 SHARES AT COST (2,173) (2,173) (2,173)
78,401 80,651 76,548
$243,592 $251,791 $294,324
SOURCE: Delta and Pine Land Company |
