Delaware | 001-16167 | 43-1878297 | ||
(State of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13a-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition | ||||||||
Item 9.01. Financial Statements and Exhibits | ||||||||
SIGNATURES | ||||||||
EXHIBIT INDEX | ||||||||
EX-99 |
(c) | Exhibits |
Exhibit 99
|
Press Release, dated October 5, 2011, issued by Monsanto Company |
2
MONSANTO COMPANY |
||||
Dated: October 5, 2011 | By: | /s/ Christopher A. Martin | ||
Name: | Christopher A. Martin | |||
Title: | Assistant Secretary | |||
3
Release
|
Immediately | |||
Contact
|
Media: | Kelli Powers (314-694-4003) | ||
Analysts: | Bryan Hurley (314-694-8148) |
| Cash flow, earnings per share and gross profit above estimates as new corn, soybean platforms lead U.S. improvement; Latin America helps drive 2012 guidance for EPS of $3.34 to $3.44 | ||
| Company to restate financial results for 2009, 2010, and prior 2011 quarters to reflect timing of accruals for customer incentives in glyphosate business |
o | Total revenues and costs over the three fiscal years as a whole remain unchanged | ||
o | Full-year 2011 EPS benefits by $0.05 |
Fourth Quarter | Fiscal Year | |||||||
($ in millions) | 2011 | 2011 | ||||||
Net Sales By Segment |
||||||||
Corn seed and traits |
$ | 671 | $ | 4,805 | ||||
Soybean seed and traits |
96 | 1,542 | ||||||
Cotton seeds and traits |
181 | 847 | ||||||
Vegetable seeds |
267 | 895 | ||||||
All other crops seeds and traits |
136 | 493 | ||||||
TOTAL Seeds and Genomics |
$ | 1,351 | $ | 8,582 | ||||
Agricultural productivity |
$ | 896 | $ | 3,240 | ||||
TOTAL Agricultural Productivity |
$ | 896 | $ | 3,240 | ||||
TOTAL Net Sales |
$ | 2,247 | $ | 11,822 | ||||
Gross Profit |
$ | 971 | $ | 6,079 | ||||
Operating Expenses |
$ | 1,042 | $ | 3,577 | ||||
Interest Expense Net |
$ | 21 | $ | 88 | ||||
Other Expense Net |
$ | 2 | $ | 40 | ||||
Net Income (Loss) Attributable to Monsanto Company |
$ | (112 | ) | $ | 1,607 | |||
Diluted Earnings (Loss) per Share (See note 1.) |
$ | (0.21 | ) | $ | 2.96 | |||
Items Affecting Comparability EPS Impact |
||||||||
Restructuring charges |
(0.01 | ) | | |||||
Diluted Earnings (Loss) per Share from Ongoing Business |
||||||||
(For the definition of ongoing EPS, see note 1.) |
$ | (0.22 | ) | $ | 2.96 | |||
Effective Tax Rate |
3 | % | 30 | % |
Fourth Quarter | Fiscal Year | |||||||
2011 | 2011 | |||||||
Comparison as a Percent of Net Sales: | ||||||||
Gross profit |
43 | % | 51 | % | ||||
Selling, general and administrative expenses (SG&A) |
29 | % | 19 | % | ||||
Research and development expenses |
18 | % | 12 | % | ||||
Income (Loss) from continuing operations before income taxes |
(4 | )% | 20 | % | ||||
Net income (Loss) attributable to Monsanto Company |
(5 | )% | 14 | % |
Net Sales | Gross Profit | |||||||||||||||||||||||||||||||
Fourth Quarter | Fiscal Year | Fourth Quarter | Fiscal Year | |||||||||||||||||||||||||||||
($ in millions) | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||||
Seeds and Genomics | ||||||||||||||||||||||||||||||||
Corn Seed and Traits |
$ | 671 | $ | 424 | $ | 4,805 | $ | 4,260 | $ | 340 | $ | 170 | $ | 2,864 | $ | 2,464 | ||||||||||||||||
Soybean Seed and Traits |
96 | 103 | 1,542 | 1,486 | 92 | 88 | 1,045 | 905 | ||||||||||||||||||||||||
Cotton Seed and Traits |
181 | 98 | 847 | 611 | 140 | 78 | 642 | 454 | ||||||||||||||||||||||||
Vegetable Seeds |
267 | 235 | 895 | 835 | 173 | 130 | 534 | 492 | ||||||||||||||||||||||||
All Other Crops Seeds
and Traits |
136 | 110 | 493 | 419 | 45 | 57 | 221 | 223 | ||||||||||||||||||||||||
TOTAL Seeds and Genomics |
$ | 1,351 | $ | 970 | $ | 8,582 | $ | 7,611 | $ | 790 | $ | 523 | $ | 5,306 | $ | 4,538 | ||||||||||||||||
Earnings (Loss) Before Interest & Taxes (EBIT) | ||||||||||||||||
Fourth Quarter | Fiscal Year | |||||||||||||||
($ in millions) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Seeds and Genomics | ||||||||||||||||
EBIT (For a reconciliation of EBIT, see note 1.) |
$ | (157 | ) | $ | (412 | ) | $ | 2,106 | $ | 1,597 | ||||||
Unusual Items Affecting EBIT: Restructuring |
$ | 4 | $ | (102 | ) | $ | (11 | ) | $ | (232 | ) |
($ in millions) | Net Sales | Gross Profit | ||||||||||||||
Fourth Quarter | Fiscal Year | Fourth Quarter | Fiscal Year | |||||||||||||
TOTAL Agricultural Productivity |
$ | 896 | $ | 3,240 | $ | 181 | $ | 773 |
($ in millions) | Earnings (Loss) Before Interest & Taxes (EBIT) | |||||||
Agricultural Productivity | 2011 | |||||||
Fourth Quarter | Fiscal Year | |||||||
EBIT (For a reconciliation of EBIT, see note 1.) |
$ | 59 | $ | 281 | ||||
Unusual Items Affecting EBIT: |
||||||||
EBIT from Discontinued Operations |
$ | (1 | ) | $ | 3 | |||
Restructuring |
$ | 4 | $ | 8 |
Three Months Ended | Twelve Months Ended | |||||||
Aug. 31, | Aug. 31, | |||||||
2011 | 2011 | |||||||
Net Sales |
$ | 2,247 | $ | 11,822 | ||||
Cost of Goods Sold |
1,276 | 5,743 | ||||||
Gross Profit |
971 | 6,079 | ||||||
Operating Expenses: |
||||||||
Selling, general and administrative expenses |
647 | 2,190 | ||||||
Research and development expenses |
404 | 1,386 | ||||||
Restructuring charges, net |
(9 | ) | 1 | |||||
Total Operating Expenses |
1,042 | 3,577 | ||||||
Income (Loss) From Operations |
(71 | ) | 2,502 | |||||
Interest Expense |
45 | 162 | ||||||
Interest Income |
(24 | ) | (74 | ) | ||||
Other Expense, Net |
2 | 40 | ||||||
Income (Loss) from Continuing Operations Before Income Taxes |
(94 | ) | 2,374 | |||||
Income Tax Provision |
3 | 717 | ||||||
Income (Loss) from Continuing Operations Including Portion
Attributable to Noncontrolling Interest |
$ | (97 | ) | $ | 1,657 | |||
Discontinued Operations: |
||||||||
Income (Loss) from Operations of Discontinued Businesses |
(1 | ) | 3 | |||||
Income Tax Provision |
| 1 | ||||||
Income (Loss) on Discontinued Operations |
(1 | ) | 2 | |||||
Net Income (Loss) |
$ | (98 | ) | $ | 1,659 | |||
Less: Net Income Attributable to Noncontrolling Interest |
14 | 52 | ||||||
Net Income (Loss) Attributable to Monsanto Company |
$ | (112 | ) | $ | 1,607 | |||
EBIT (see note 1) |
$ | (98 | ) | $ | 2,387 | |||
Basic Earnings (Loss) per Share Attributable to Monsanto Company: |
||||||||
Income (Loss) from Continuing Operations |
$ | (0.21 | ) | $ | 2.99 | |||
Income on Discontinued Operations |
| 0.01 | ||||||
Net Income (Loss) Attributable to Monsanto Company |
$ | (0.21 | ) | $ | 3.00 | |||
Diluted Earnings (Loss) per Share Attributable to Monsanto Company: |
||||||||
Income (Loss) from Continuing Operations |
$ | (0.21 | ) | $ | 2.96 | |||
Net Income (Loss) Attributable to Monsanto Company |
$ | (0.21 | ) | $ | 2.96 | |||
Weighted Average Shares Outstanding: |
||||||||
Basic |
535.1 | 536.5 | ||||||
Diluted |
535.1 | 542.4 |
As of | ||||
Aug. 31, 2011 | ||||
Assets |
||||
Current Assets: |
||||
Cash and cash equivalents (variable interest entities restricted - 2011: $96) |
$ | 2,572 | ||
Short-term investments |
302 | |||
Trade receivables, net (variable interest entities restricted - 2011: $51) |
2,117 | |||
Miscellaneous receivables |
629 | |||
Deferred tax assets |
446 | |||
Inventory, net |
2,623 | |||
Other current assets |
152 | |||
Total Current Assets |
8,841 | |||
Property, Plant and Equipment, Net |
4,394 | |||
Goodwill |
3,365 | |||
Other Intangible Assets, Net |
1,309 | |||
Noncurrent Deferred Tax Assets |
873 | |||
Long-Term Receivables, Net |
475 | |||
Other Assets |
619 | |||
Total Assets |
$ | 19,876 | ||
Liabilities and Shareowners Equity |
||||
Current Liabilities: |
||||
Short-term debt, including current portion of long-term debt |
678 | |||
Accounts payable |
871 | |||
Income taxes payable |
117 | |||
Accrued compensation and benefits |
427 | |||
Accrued marketing programs |
1,110 | |||
Deferred revenues |
373 | |||
Grower production accruals |
87 | |||
Dividends payable |
161 | |||
Customer payable |
94 | |||
Restructuring reserves |
24 | |||
Miscellaneous short-term accruals |
819 | |||
Total Current Liabilities |
4,761 | |||
Long-Term Debt |
1,543 | |||
Postretirement Liabilities |
509 | |||
Long-Term Deferred Revenue |
337 | |||
Noncurrent Deferred Tax Liabilities |
152 | |||
Long-Term Portion of Environmental and Litigation Reserves |
176 | |||
Other Liabilities |
682 | |||
Monsanto Shareowners Equity |
11,545 | |||
Noncontrolling Interest |
171 | |||
Total Shareowners Equity |
11,716 | |||
Total Liabilities and Shareowners Equity |
$ | 19,876 | ||
Debt to Capital Ratio: |
16 | % |
Twelve Months Ended Aug. 31, 2011 | ||||
Operating Activities: |
||||
Net Income |
$ | 1,659 | ||
Adjustments to reconcile cash provided (required) by operating activities: |
||||
Items that did not require (provide) cash: |
||||
Depreciation and amortization |
613 | |||
Bad-debt expense |
3 | |||
Stock-based compensation expense |
104 | |||
Excess tax benefits from stock-based compensation |
(36 | ) | ||
Deferred income taxes |
135 | |||
Restructuring charges, net |
1 | |||
Equity affiliate income, net |
(21 | ) | ||
Net gain on sales of a business or other assets |
(5 | ) | ||
Other items |
81 | |||
Changes in assets and liabilities that provided (required) cash, net of acquisitions: |
||||
Trade receivables, net |
(310 | ) | ||
Inventory, net |
156 | |||
Deferred revenues |
62 | |||
Accounts payable and other accrued liabilities |
893 | |||
Restructuring cash payments |
(183 | ) | ||
Pension contributions |
(291 | ) | ||
Net investment hedge settlement |
| |||
Other items |
(47 | ) | ||
Net Cash Provided by Operating Activities |
2,814 | |||
Cash Flows Provided (Required) by Investing Activities: |
||||
Purchases of short-term investments |
(732 | ) | ||
Maturities of short-term investments |
430 | |||
Capital expenditures |
(540 | ) | ||
Acquisitions of businesses, net of cash acquired |
(99 | ) | ||
Purchases of long-term equity securities |
| |||
Technology and other investments |
(55 | ) | ||
Other investments and property disposal proceeds |
21 | |||
Net Cash Required by Investing Activities |
(975 | ) | ||
Cash Flows Provided (Required) by Financing Activities: |
||||
Net change in financing with less than 90-day maturities |
69 | |||
Short-term debt proceeds |
84 | |||
Short-term debt reductions |
(74 | ) | ||
Long-term debt proceeds |
299 | |||
Long-term debt reductions |
(193 | ) | ||
Payments on other financing |
(1 | ) | ||
Debt issuance costs |
(5 | ) | ||
Treasury stock purchases |
(502 | ) | ||
Stock option exercises |
65 | |||
Excess tax benefits from stock-based compensation |
36 | |||
Tax withholding on restricted stock and restricted stock units |
(4 | ) | ||
Dividend payments |
(602 | ) | ||
Proceeds from noncontrolling interests |
69 | |||
Dividend payments to noncontrolling interests |
(105 | ) | ||
Net Cash Required by Financing Activities |
(864 | ) | ||
Cash Assumed from Initial Consolidations of Variable Interest Entities |
77 | |||
Effect of Exchange Rate Changes on Cash and Cash Equivalents |
35 | |||
Net Increase in Cash and Cash Equivalents |
1,087 | |||
Cash and Cash Equivalents at Beginning of Period |
1,485 | |||
Cash and Cash Equivalents at End of Period |
$ | 2,572 | ||
1. | EBIT, Ongoing EPS and Free Cash Flow: The presentations of EBIT, ongoing EPS and free cash flow are not intended to replace net income (loss) attributable to Monsanto Company, cash flows, financial position or comprehensive income (loss), and they are not measures of financial performance as determined in accordance with generally accepted accounting principles (GAAP) in the United States. The following tables reconcile EBIT, ongoing EPS and free cash flow to the respective most directly comparable financial measure calculated in accordance with GAAP. | |
Reconciliation of EBIT to Net Income (Loss): EBIT is defined as earnings (loss) before interest and taxes. Earnings (loss) is intended to mean net income (loss) attributable to Monsanto Company as presented in the Statements of Consolidated Operations under GAAP. The following table reconciles EBIT to the most directly comparable financial measure, which is net income (loss) attributable to Monsanto. |
Three Months Ended | Twelve Months Ended | |||||||
Aug. 31, 2011 | Aug. 31, 2011 | |||||||
EBIT Seeds and Genomics Segment |
$ | (157 | ) | $ | 2,106 | |||
EBIT Agricultural Productivity Segment |
59 | 281 | ||||||
EBIT Total |
(98 | ) | 2,387 | |||||
Interest Expense, Net |
22 | 88 | ||||||
Income Tax Provision (Benefit)(A) |
(8 | ) | 692 | |||||
Net Income (Loss) Attributable to Monsanto
Company |
$ | (112 | ) | $ | 1,607 | |||
(A) | Includes the income tax provision from continuing operations, the income tax provision (benefit) on noncontrolling interest, and the income tax provision on discontinued operations. |
Reconciliation of EPS to Ongoing EPS: Ongoing EPS is calculated excluding certain after-tax items which Monsanto does not consider part of ongoing operations. |
Fiscal Year | Three Months | Twelve Months | ||||||||||||
2012 | Ended | Ended | ||||||||||||
Guidance | Aug. 31, 2011 | Aug. 31, 2011 | ||||||||||||
Diluted Earnings (Loss) per Share |
$ | 3.34-$3.44 | ($0.21 | ) | $ | 2.96 | ||||||||
Restructuring Charges, Net |
| (0.01 | ) | | ||||||||||
Income on Discontinued Operations |
| | | |||||||||||
Diluted Earnings (Loss) per Share from Ongoing Business |
$ | 3.34-$3.44 | ($0.22 | ) | $ | 2.96 | ||||||||
Fiscal Year | Twelve Months Ended | |||||||
2012 | Aug. 31, 2011 | |||||||
Net Cash Provided by Operating Activities |
$ | 2,200-2,500 | $ | 2,814 | ||||
Net Cash Required by Investing Activities |
(900)-(1,000 | ) | (975 | ) | ||||
Free Cash Flow |
$ | 1,300-1,500 | 1,839 | |||||
Net Cash Required by Financing Activities |
N/A | (864 | ) | |||||
Cash Assumed from Initial Consolidations of Variable Interest Entities |
N/A | 77 | ||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents |
N/A | 35 | ||||||
Net Increase in Cash and Cash Equivalents |
N/A | 1,087 | ||||||
Cash and Cash Equivalents at Beginning of Period |
N/A | 1,485 | ||||||
Cash and Cash Equivalents at End of Period |
N/A | $ | 2,572 |