 |  |  |  |  |  |  |  |  |
|
Delta and Pine Land Company Announces Second Quarter and Six-Month Operating Results
SCOTT, Miss., April 9 /PRNewswire-FirstCall/ -- Delta and Pine Land Company (NYSE: DLP) ("D&PL" or the "Company"), a leading commercial breeder, producer and marketer of cotton planting seed, today announced results for the second quarter and six-month period ended February 28, 2007. Second Quarter Results Net loss for the 2007 second quarter was $0.06 per diluted share, compared to last year's second quarter net income of $0.40 per diluted share. The second quarter net loss includes charges of $0.02 per diluted share related to the proposed merger with Monsanto. The prior year second quarter included $0.01 per diluted share in Pharmacia/Monsanto litigation expenses. Revenues were $45.0 million in the 2007 second quarter, compared to $115.0 million recorded in the year-ago quarter. The revenue decrease was largely attributable to lower domestic sales volumes, offset by increased revenues from the International division, primarily in Brazil, which continues to benefit from the introduction of transgenic cotton varieties and higher acreage, as it did in the first quarter. Domestic sales volumes were lower as a result of customer indecision related to planting intentions, as higher corn prices have increased the number of anticipated acres planted to corn. The loss for the quarter was mitigated by lower operating expenses, compared to the prior year quarter, primarily due to reduced legal fees associated with various arbitration proceedings with Monsanto that were either dismissed or stayed pending the proposed merger. Six Month Results After charges of $0.08 per diluted share related to the proposed merger with Monsanto, net loss for the 2007 six-month period was $0.35 per diluted share, compared to net income of $0.14 per diluted share for the same period last year. Net income in 2006 included a reduction of $0.03 per diluted share for Pharmacia/Monsanto litigation expenses for the six-month period. Revenues for the 2007 six-month period were $57.9 million, compared to $124.8 million in the prior year. As previously indicated, the revenue decrease was primarily attributable to lower domestic sales volumes, partially offset by higher international sales in South America. South America sales volumes benefited primarily from the introduction of transgenic cotton varieties in Brazil as well as an increase in Brazilian cotton acreage. The loss for the six-month period was partially mitigated by lower operating expenses, compared to the prior year period, largely due to reduced legal fees associated with various arbitration proceedings with Monsanto that were either dismissed or stayed pending the proposed merger. Subsequent to the issuance of the Company's 2007 first quarter consolidated financial statements, the Company recorded a correction to such previously-issued financial statements relating to a misstatement of a marketing accrual. The correction of approximately $1.3 million ($800,000 after taxes) was not material to the Company's consolidated financial position or results of operations for the previous quarter ended November 30, 2006. This correction does not impact the year-to-date results. Revised 2007 Earnings Guidance For the fiscal year 2007, assuming that cotton acreage planted declines 21% as now forecasted by the U.S. Department of Agriculture ("USDA") in its March 31 Planting Intentions Report and the Company maintains its market share and product sales mix, D&PL expects earnings per diluted share of $0.53 to $0.63, after charges of $0.26 per diluted share related to its proposed merger with Monsanto. The previously issued fiscal 2007 guidance had anticipated that planted cotton acreage would be consistent with the prior year. D&PL provides guidance based on an estimate of U.S. cotton acreage issued by the USDA. For illustrative purposes, for every 500,000 acre decrease in planted cotton acreage in states east of Texas, the Company estimates that its earnings could be reduced by as much as $0.12 to $0.14 per diluted share. Tom Jagodinski, President and Chief Executive Officer, said: "While the short-term forecast calls for U.S. cotton acreage to decline as a result of the increase in acreage planted to other crops, mainly corn, we believe that farmers will rely more than ever on our leading products for superior yield, consistency and reliability. Our farmer customers are in a period of uncertainty regarding commodity prices, the upcoming U.S. Farm bill, and international trade negotiations. Despite the fluctuating environment, we will continue to invest, as we have for over 95 years, in the necessary research and development of future varieties and technologies to bring increased value to our farmer customers. With respect to the pending merger with Monsanto we continue to work with Monsanto on completing the regulatory review process in order to obtain U.S. Department of Justice clearance to complete the merger." Conference Call D&PL will hold a conference call this morning at 11:00 a.m. EDT/10:00 a.m. CDT to review this announcement. The call can be accessed by dialing 800-374- 0532 (International, 706-634-0148) and access code 2466319. Live audio of the conference call will also be accessible at http://www.vcall.com/. The call will be available on the website for 90 days, and will also be available by replay from noon EDT/ 11:00 a.m. CDT on Monday, April 9, 2007 through midnight EDT/ 11:00 p.m. CDT on Monday, April 16, 2007 by dialing 800-642-1687 (International, 706-645-9291) and entering the access code 2466319. About Delta and Pine Land Company Delta and Pine Land Company is a leading commercial breeder, producer and marketer of cotton planting seed. Headquartered in Scott, Mississippi, with multiple offices in eight states and facilities in several foreign countries, D&PL also breeds, produces and markets soybean planting seed in the U.S. For more information, please refer to the Company's Web site at http://www.deltaandpine.com/. Certain matters discussed in this release are "forward-looking statements," including statements about the Company's future plans, goals and other events, which have not yet occurred. These statements are intended to qualify for the safe harbors from liability provided by the Private Securities Litigation Reform Act of 1995. They can generally be identified because the context of such statements will include words such as "believes," "anticipates," "expects" or words of similar import. It is the nature of agricultural seed businesses that supply, demand and their timing are affected by many variables, including commodity prices, weather and government 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 of the Company's business and forward looking statements are set forth in the Company's latest filings with the Securities and Exchange Commission. DELTA AND PINE LAND COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED
(in thousands, except per share amounts)
(Unaudited)
February 28, February 28,
2007 2006
NET SALES AND LICENSING FEES $45,009 $114,977
COST OF SALES 31,327 74,145
GROSS PROFIT 13,682 40,832
OPERATING EXPENSES:
Research and development 6,206 6,145
Selling 3,426 3,910
General and administrative 5,724 7,225
Total operating expenses 15,356 17,280
OPERATING (LOSS) INCOME (1,674) 23,552
INTEREST INCOME, NET 462 177
OTHER EXPENSE, NET (2,399) (730)
EQUITY IN NET LOSS OF AFFILIATE (417) (780)
MINORITY INTEREST IN (EARNINGS) LOSS OF SUBSIDIARIES (390) 131
(LOSS) INCOME BEFORE INCOME TAXES (4,418) 22,350
INCOME TAX BENEFIT (EXPENSE) 2,348 (7,680)
NET (LOSS) INCOME (2,070) 14,670
DIVIDENDS ON PREFERRED STOCK (182) (160)
NET (LOSS) INCOME APPLICABLE TO COMMON SHARES $(2,252) $14,510
BASIC (LOSS) EARNINGS PER SHARE $(0.06) $0.41
NUMBER OF SHARES USED IN BASIC (LOSS)
EARNINGS PER SHARE CALCULATIONS 36,604 35,688
DILUTED (LOSS) EARNINGS PER SHARE $(0.06) $0.40
NUMBER OF SHARES USED IN DILUTED (LOSS)
EARNINGS PER SHARE CALCULATIONS 36,604 36,914
DIVIDENDS PER COMMON SHARE $0.17 $0.15
The accompanying notes are an integral part of these financial statements.
DELTA AND PINE LAND COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED
(in thousands, except per share amounts)
(Unaudited)
February 28, February 28,
2007 2006
NET SALES AND LICENSING FEES $57,893 $124,803
COST OF SALES 40,062 80,809
GROSS PROFIT 17,831 43,994
OPERATING EXPENSES:
Research and development 12,364 11,786
Selling 7,191 7,316
General and administrative 11,778 13,452
Total operating expenses 31,333 32,554
OPERATING (LOSS) INCOME (13,502) 11,440
INTEREST INCOME, NET 2,032 1,205
OTHER EXPENSE, NET (6,818) (1,933)
EQUITY IN NET LOSS OF AFFILIATE (958) (1,594)
MINORITY INTEREST IN EARNINGS OF SUBSIDIARIES (2,062) (701)
(LOSS) INCOME BEFORE INCOME TAXES (21,308) 8,417
INCOME TAX BENEFIT (EXPENSE) 9,053 (3,192)
NET (LOSS) INCOME (12,255) 5,225
DIVIDENDS ON PREFERRED STOCK (363) (320)
NET (LOSS) INCOME APPLICABLE TO COMMON SHARES $(12,618) $4,905
BASIC (LOSS) EARNINGS PER SHARE $(0.35) $0.14
NUMBER OF SHARES USED IN BASIC (LOSS)
EARNINGS PER SHARE CALCULATIONS 36,527 35,882
DILUTED (LOSS) EARNINGS PER SHARE $(0.35) $0.14
NUMBER OF SHARES USED IN DILUTED (LOSS)
EARNINGS PER SHARE CALCULATIONS 36,527 37,145
DIVIDENDS PER COMMON SHARE $0.34 $0.30
The accompanying notes are an integral part of these financial statements.
DELTA AND PINE LAND COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
(Unaudited)
February August February
28, 31, 28,
2007 2006 2006
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $21,453 $69,691 $13,420
Marketable securities - 27,600 -
Receivables, net 62,406 270,354 138,193
Income taxes receivable 6,078 - -
Inventories 73,183 31,600 69,389
Prepaid expenses 1,126 2,173 1,657
Deferred income taxes 9,495 7,849 6,047
Total current assets 173,741 409,267 228,706
PROPERTY, PLANT AND EQUIPMENT, NET 60,585 61,066 61,507
EXCESS OF COST OVER NET ASSETS OF
BUSINESSES ACQUIRED 4,183 4,183 4,183
INTANGIBLES, NET 8,368 8,276 8,459
DEFERRED INCOME TAXES 21,527 22,383 11,238
OTHER ASSETS 1,029 1,079 1,214
TOTAL ASSETS $269,433 $506,254 $315,307
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable and current maturities of
long-term debt $3,256 $6,428 $8,448
Accounts payable 20,244 28,866 21,776
Accrued expenses 71,557 275,643 120,814
Income taxes payable - 14,179 8,872
Total current liabilities 95,057 325,116 159,910
LONG-TERM DEBT - 1,455 3,471
MINORITY INTEREST IN SUBSIDIARIES 6,622 5,027 5,577
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, par value $0.10 per
share; 2,000,000 shares authorized;
Series A Junior Participating
Preferred, par value $0.10 per share;
501,989 shares authorized; no
shares issued or outstanding; - - -
Series M Convertible Non-Voting
Preferred, par value $0.l0 per share;
1,066,667 shares authorized,
issued and outstanding 107 107 107
Common stock, par value $0.10 per
share; 100,000,000 shares authorized;
42,615,436, 42,053,167 and
40,965,695 shares issued;
36,977,072, 36,415,567 and
35,495,589 shares outstanding 4,262 4,205 4,097
Capital in excess of par value 129,166 112,099 83,989
Retained earnings 172,647 197,750 193,933
Accumulated other comprehensive loss (1,381) (2,489) (3,440)
Treasury stock, at cost; 5,638,364,
5,637,600 and 5,470,106 shares (137,047) (137,016) (132,337)
TOTAL STOCKHOLDERS' EQUITY 167,754 174,656 146,349
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $269,433 $506,254 $315,307
The accompanying notes are an integral part of these financial statements.
DELTA AND PINE LAND COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED
(in thousands)
(Unaudited)
February 28, February 28,
2007 2006
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income $(12,255) $5,225
Adjustments to reconcile net (loss)
income to net cash used in
operating activities:
Depreciation and amortization 4,832 4,358
(Gain) loss on sale of assets (87) 59
Excess tax benefits from stock-
based compensation arrangements (3,682) -
Equity in net loss of affiliate 958 1,594
Foreign exchange loss 9 33
Accretion of debt discount 72 227
Minority interest in earnings of
subsidiaries 2,062 701
Stock-based compensation expense 1,271 1,641
Change in deferred income taxes (782) (229)
Changes in assets and liabilities:
Receivables 209,454 90,695
Inventories (42,560) (42,340)
Prepaid expenses 1,048 226
Intangibles and other assets (298) (52)
Accounts payable (8,801) 3,374
Accrued expenses (203,945) (101,331)
Income taxes payable (20,241) (4,070)
Net cash used in operating activities (72,945) (39,889)
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of marketable securities 27,600 -
Purchases of property and equipment (3,721) (5,336)
Sales of investments and property 162 23
Acquisition of business - (2,620)
Investment in affiliate (1,140) (1,525)
Net cash provided by
(used in) investing activities 22,901 (9,458)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from short-term debt - 266
Payments of short-term debt (4,707) (5,925)
Dividends paid (12,849) (11,034)
Payments to acquire treasury stock - (15,083)
Minority interest in dividends paid
by subsidiaries (467) -
Cash settlement of employee stock awards (31) -
Proceeds from exercise of stock options 15,854 712
Excess tax benefits from stock-based
compensation arrangements 3,682 -
Net cash provided by
(used in) financing activities 1,482 (31,064)
EFFECTS OF FOREIGN CURRENCY EXCHANGE RATES 324 756
NET DECREASE IN CASH AND CASH EQUIVALENTS (48,238) (79,655)
CASH AND CASH EQUIVALENTS, August 31 69,691 93,075
CASH AND CASH EQUIVALENTS, November 30 $21,453 $13,420
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the six months for:
Income taxes $8,272 $6,859
Noncash financing activities:
Tax benefit of stock option exercises $3,567 $54
The accompanying notes are an integral part of these financial statements.
Contact:
Investors
Tom Jagodinski
Delta and Pine Land Company
662-742-4518
Media
Jonathan Gasthalter/Cassandra Bujarski
Sard Verbinnen & Co
212-687-8080
Website: http://www.deltaandpine.com/ |
Issuers of news releases and not PR Newswire are solely responsible for the accuracy of the content.
Terms and conditions, including restrictions on
redistribution, apply.
Copyright © 1996-2003 PR Newswire Association LLC.
All Rights Reserved.
A United Business Media company.
