Delaware | 001-16167 | 43-1878297 |
State of Incorporation | (Commission File Number) | (IRS Employer Identification No.) |
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
MONSANTO COMPANY | |
By: /s/ Christopher A. Martin | |
Name: Christopher A. Martin | |
Title: Assistant Secretary |
Exhibit No. | Description of Exhibit | |
99 | Press Release, dated June 26, 2013, issued by Monsanto Company |
Release | Immediately |
Contact | Media: Sara Miller (314-694-5824) |
Analysts: Bryan Hurley (314-694-8148) |
Third Quarter | Nine Months | |||||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Net Sales by Segment | ||||||||||||||||
Corn seed and traits | $ | 1,559 | $ | 1,515 | $ | 5,978 | $ | 5,226 | ||||||||
Soybean seed and traits | 658 | 698 | 1,566 | 1,629 | ||||||||||||
Cotton seed and traits | 385 | 490 | 630 | 750 | ||||||||||||
Vegetable seeds | 216 | 195 | 571 | 567 | ||||||||||||
All other crops seeds and traits | 236 | 230 | 410 | 414 | ||||||||||||
TOTAL Seeds and Genomics | $ | 3,054 | $ | 3,128 | $ | 9,155 | $ | 8,586 | ||||||||
Agricultural productivity | $ | 1,194 | $ | 1,091 | $ | 3,504 | $ | 2,820 | ||||||||
TOTAL Agricultural Productivity | $ | 1,194 | $ | 1,091 | $ | 3,504 | $ | 2,820 | ||||||||
TOTAL Net Sales | $ | 4,248 | $ | 4,219 | $ | 12,659 | $ | 11,406 | ||||||||
Gross Profit | $ | 2,262 | $ | 2,363 | $ | 6,729 | $ | 6,164 | ||||||||
Operating Expenses | $ | 1,024 | $ | 1,013 | $ | 2,870 | $ | 2,760 | ||||||||
Interest Expense – Net | $ | 18 | $ | 18 | $ | 54 | $ | 80 | ||||||||
Other Expense (Income) – Net | $ | (4 | ) | $ | 3 | $ | 35 | $ | 46 | |||||||
Net Income Attributable to Monsanto Company | $ | 909 | $ | 937 | $ | 2,731 | $ | 2,274 | ||||||||
Diluted Earnings per Share (See note 1.) | $ | 1.68 | $ | 1.74 | $ | 5.05 | $ | 4.21 | ||||||||
Items Affecting Comparability – EPS Impact | ||||||||||||||||
Income on discontinued operations | — | — | (0.02 | ) | (0.01 | ) | ||||||||||
Nitro Claims Settlement | — | — | — | 0.05 | ||||||||||||
Resolution of a Legacy Tax Matter | (0.02 | ) | (0.11 | ) | (0.02 | ) | (0.11 | ) | ||||||||
Diluted Earnings per Share from Ongoing Business (For the definition of ongoing EPS, see note 1.) | $ | 1.66 | $ | 1.63 | $ | 5.01 | $ | 4.14 | ||||||||
Effective Tax Rate | 24 | % | 27 | % | 27 | % | 30 | % |
Third Quarter | Nine Months | ||||||||
Comparison as a Percent of Net Sales: | 2013 | 2012 | 2013 | 2012 | |||||
Gross profit | 53% | 56% | 53% | 54% | |||||
Selling, general and administrative expenses | 15% | 15% | 14% | 15% | |||||
Research and development expenses | 9% | 9% | 9% | 9% | |||||
Income from continuing operations before income taxes | 29% | 32% | 30% | 29% | |||||
Net income attributable to Monsanto Company | 21% | 22% | 22% | 20% |
($ in millions) | Net Sales | Gross Profit | ||||||||||||||||||||||||||||||
Third Quarter | Nine Months | Third Quarter | Nine Months | |||||||||||||||||||||||||||||
Seeds and Genomics | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Corn Seed and Traits | $ | 1,559 | $ | 1,515 | $ | 5,978 | $ | 5,226 | $ | 859 | $ | 927 | $ | 3,628 | $ | 3,305 | ||||||||||||||||
Soybean Seed and Traits | 658 | 698 | 1,566 | 1,629 | 398 | 463 | 911 | 1,079 | ||||||||||||||||||||||||
Cotton Seed and Traits | 385 | 490 | 630 | 750 | 295 | 385 | 466 | 567 | ||||||||||||||||||||||||
Vegetable Seeds | 216 | 195 | 571 | 567 | 93 | 94 | 282 | 260 | ||||||||||||||||||||||||
All Other Crops Seeds and Traits | 236 | 230 | 410 | 414 | 170 | 152 | 252 | 217 | ||||||||||||||||||||||||
TOTAL Seeds and Genomics | $ | 3,054 | $ | 3,128 | $ | 9,155 | $ | 8,586 | $ | 1,815 | $ | 2,021 | $ | 5,539 | $ | 5,428 |
($ in millions) | Earnings Before Interest & Taxes (EBIT) | |||||||||||||||||
Third Quarter | Nine Months | |||||||||||||||||
Seeds and Genomics | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
EBIT (For a reconciliation of EBIT, see note 1.) | $ | 920 | $ | 1,111 | $ | 2,980 | $ | 2,957 |
($ in millions) | Net Sales | Gross Profit | ||||||||||||||||||||||||||||||
Third Quarter | Nine Months | Third Quarter | Nine Months | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Agricultural Productivity | $ | 1,194 | $ | 1,091 | $ | 3,504 | $ | 2,820 | $ | 447 | $ | 342 | $ | 1,190 | $ | 736 | ||||||||||||||||
TOTAL Agricultural Productivity | $ | 1,194 | $ | 1,091 | $ | 3,504 | $ | 2,820 | $ | 447 | $ | 342 | $ | 1,190 | $ | 736 |
($ in millions) | Earnings Before Interest & Taxes (EBIT) | |||||||||||||||||
Third Quarter | Nine Months | |||||||||||||||||
Agricultural Productivity | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
EBIT (For a reconciliation of EBIT, see note 1.) | $ | 284 | $ | 190 | $ | 810 | $ | 354 | ||||||||||
Unusual Items Affecting EBIT: | ||||||||||||||||||
EBIT from Discontinued Operations | $ | — | $ | (3 | ) | $ | 17 | $ | 8 | |||||||||
Nitro Claims Settlement | $ | — | $ | — | $ | — | $ | (44 | ) |
Statements of Consolidated Operations | Three Months Ended May 31, | Nine Months Ended May 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net Sales | $ | 4,248 | $ | 4,219 | $ | 12,659 | $ | 11,406 | ||||||||
Cost of Goods Sold | 1,986 | 1,856 | 5,930 | 5,242 | ||||||||||||
Gross Profit | 2,262 | 2,363 | 6,729 | 6,164 | ||||||||||||
Operating Expenses: | ||||||||||||||||
Selling, general and administrative expenses | 632 | 638 | 1,773 | 1,681 | ||||||||||||
Research and development expenses | 392 | 375 | 1,097 | 1,079 | ||||||||||||
Total Operating Expenses | 1,024 | 1,013 | 2,870 | 2,760 | ||||||||||||
Income From Operations | 1,238 | 1,350 | 3,859 | 3,404 | ||||||||||||
Interest Expense | 37 | 39 | 123 | 139 | ||||||||||||
Interest Income | (19 | ) | (21 | ) | (69 | ) | (59 | ) | ||||||||
Other Expense (Income), Net | (4 | ) | 3 | 35 | 46 | |||||||||||
Income from Continuing Operations Before Income Taxes | 1,224 | 1,329 | 3,770 | 3,278 | ||||||||||||
Income Tax Provision | 292 | 361 | 1,017 | 971 | ||||||||||||
Income from Continuing Operations Including Portion Attributable to Noncontrolling Interest | $ | 932 | $ | 968 | $ | 2,753 | $ | 2,307 | ||||||||
Discontinued Operations: | ||||||||||||||||
Income (Loss) from Operations of Discontinued Businesses | — | (3 | ) | 17 | 8 | |||||||||||
Income Tax Provision (Benefit) | — | (1 | ) | 6 | 3 | |||||||||||
Income (Loss) on Discontinued Operations | — | (2 | ) | 11 | 5 | |||||||||||
Net Income | $ | 932 | $ | 966 | $ | 2,764 | $ | 2,312 | ||||||||
Less: Net Income Attributable to Noncontrolling Interest | 23 | 29 | 33 | 38 | ||||||||||||
Net Income Attributable to Monsanto Company | $ | 909 | $ | 937 | $ | 2,731 | $ | 2,274 | ||||||||
EBIT (see note 1) | $ | 1,204 | $ | 1,301 | $ | 3,790 | $ | 3,311 | ||||||||
Basic Earnings per Share Attributable to Monsanto Company: | ||||||||||||||||
Income from Continuing Operations | $ | 1.70 | $ | 1.76 | $ | 5.09 | $ | 4.25 | ||||||||
Income on Discontinued Operations | — | — | 0.02 | 0.01 | ||||||||||||
Net Income Attributable to Monsanto Company | $ | 1.70 | $ | 1.76 | $ | 5.11 | $ | 4.26 | ||||||||
Diluted Earnings per Share Attributable to Monsanto Company: | ||||||||||||||||
Income from Continuing Operations | $ | 1.68 | $ | 1.74 | $ | 5.03 | $ | 4.20 | ||||||||
Income on Discontinued Operations | — | — | 0.02 | 0.01 | ||||||||||||
Net Income Attributable to Monsanto Company | $ | 1.68 | $ | 1.74 | $ | 5.05 | $ | 4.21 | ||||||||
Weighted Average Shares Outstanding: | ||||||||||||||||
Basic | 534.1 | 532.9 | 534.5 | 534.2 | ||||||||||||
Diluted | 540.0 | 538.8 | 540.7 | 540.2 |
Condensed Statements of Consolidated Financial Position | As of | As of | ||||||
May 31, 2013 | Aug. 31, 2012 | |||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents (variable interest entity restricted - 2013: $175 and 2012: $120) | $ | 2,921 | $ | 3,283 | ||||
Short-term investments | 143 | 302 | ||||||
Trade receivables, net (variable interest entity restricted - 2013: $6 and 2012: $52) | 3,610 | 1,897 | ||||||
Miscellaneous receivables | 812 | 620 | ||||||
Deferred tax assets | 574 | 534 | ||||||
Inventory, net | 2,884 | 2,839 | ||||||
Other current assets | 197 | 183 | ||||||
Total Current Assets | 11,141 | 9,658 | ||||||
Property, Plant and Equipment, Net | 4,467 | 4,365 | ||||||
Goodwill | 3,510 | 3,435 | ||||||
Other Intangible Assets, Net | 1,225 | 1,237 | ||||||
Noncurrent Deferred Tax Assets | 518 | 551 | ||||||
Long-Term Receivables, Net | 242 | 376 | ||||||
Other Assets | 576 | 602 | ||||||
Total Assets | $ | 21,679 | $ | 20,224 | ||||
Liabilities and Shareowners’ Equity | ||||||||
Current Liabilities: | ||||||||
Short-term debt, including current portion of long-term debt | 169 | 36 | ||||||
Accounts payable | 745 | 794 | ||||||
Income taxes payable | 397 | 75 | ||||||
Accrued compensation and benefits | 408 | 546 | ||||||
Accrued marketing programs | 763 | 1,281 | ||||||
Deferred revenues | 322 | 396 | ||||||
Grower production accruals | 66 | 194 | ||||||
Dividends payable | — | 200 | ||||||
Miscellaneous short-term accruals | 944 | 699 | ||||||
Total Current Liabilities | 3,814 | 4,221 | ||||||
Long-Term Debt | 2,054 | 2,038 | ||||||
Postretirement Liabilities | 498 | 543 | ||||||
Long-Term Deferred Revenue | 167 | 245 | ||||||
Noncurrent Deferred Tax Liabilities | 444 | 313 | ||||||
Long-Term Portion of Environmental and Litigation Reserves | 204 | 213 | ||||||
Other Liabilities | 420 | 615 | ||||||
Monsanto Shareowners’ Equity | 13,869 | 11,833 | ||||||
Noncontrolling Interest | 209 | 203 | ||||||
Total Shareowners’ Equity | 14,078 | 12,036 | ||||||
Total Liabilities and Shareowners’ Equity | $ | 21,679 | $ | 20,224 | ||||
Debt to Capital Ratio: | 14 | % | 15 | % |
Statements of Consolidated Cash Flows | Nine Months Ended | |||||||
May 31, 2013 | May 31, 2012 | |||||||
Operating Activities: | ||||||||
Net Income | $ | 2,764 | $ | 2,312 | ||||
Adjustments to reconcile cash provided by operating activities: | ||||||||
Items that did not require (provide) cash: | ||||||||
Depreciation and amortization | 457 | 466 | ||||||
Bad-debt expense | 14 | (9 | ) | |||||
Stock-based compensation expense | 76 | 102 | ||||||
Excess tax benefits from stock-based compensation | (73 | ) | (33 | ) | ||||
Deferred income taxes | 171 | 195 | ||||||
Equity affiliate income, net | (11 | ) | (11 | ) | ||||
Net gain on sales of a business or other assets | (15 | ) | (3 | ) | ||||
Other items | (48 | ) | 51 | |||||
Changes in assets and liabilities that required cash, net of acquisitions: | ||||||||
Trade receivables, net | (1,614 | ) | (1,773 | ) | ||||
Inventory, net | (100 | ) | (134 | ) | ||||
Deferred revenues | (156 | ) | (35 | ) | ||||
Accounts payable and other accrued liabilities | (465 | ) | (171 | ) | ||||
Restructuring cash payments | — | (11 | ) | |||||
Pension contributions | (53 | ) | (57 | ) | ||||
Other items | (161 | ) | (36 | ) | ||||
Net Cash Provided by Operating Activities | 786 | 853 | ||||||
Cash Flows Provided (Required) by Investing Activities: | ||||||||
Purchases of short-term investments | (462 | ) | (444 | ) | ||||
Maturities of short-term investments | 621 | 444 | ||||||
Capital expenditures | (459 | ) | (376 | ) | ||||
Acquisitions of businesses, net of cash acquired | (120 | ) | (113 | ) | ||||
Technology and other investments | (63 | ) | (61 | ) | ||||
Other investments and property disposal proceeds | 96 | 8 | ||||||
Net Cash Required by Investing Activities | (387 | ) | (542 | ) | ||||
Cash Flows Provided (Required) by Financing Activities: | ||||||||
Net change in financing with less than 90-day maturities | 170 | (86 | ) | |||||
Short-term debt proceeds | 1 | 9 | ||||||
Short-term debt reductions | (29 | ) | (21 | ) | ||||
Long-term debt proceeds | 16 | — | ||||||
Long-term debt reductions | (2 | ) | (142 | ) | ||||
Payments on other financing | — | (2 | ) | |||||
Treasury stock purchases | (578 | ) | (423 | ) | ||||
Stock option exercises | 234 | 69 | ||||||
Excess tax benefits from stock-based compensation | 73 | 33 | ||||||
Tax withholding on restricted stock and restricted stock units | (3 | ) | (1 | ) | ||||
Dividend payments | (602 | ) | (482 | ) | ||||
Dividend payments to noncontrolling interests | (19 | ) | (76 | ) | ||||
Proceeds from noncontrolling interests | — | 101 | ||||||
Net Cash Required by Financing Activities | (739 | ) | (1,021 | ) | ||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (22 | ) | (146 | ) | ||||
Net Decrease in Cash and Cash Equivalents | (362 | ) | (856 | ) | ||||
Cash and Cash Equivalents at Beginning of Period | 3,283 | 2,572 | ||||||
Cash and Cash Equivalents at End of Period | $ | 2,921 | $ | 1,716 |
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. |
Three Months Ended May 31, | Nine Months Ended May 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
EBIT – Seeds and Genomics Segment | $ | 920 | $ | 1,111 | $ | 2,980 | $ | 2,957 | ||||||||
EBIT – Agricultural Productivity Segment | 284 | 190 | 810 | 354 | ||||||||||||
EBIT– Total | 1,204 | 1,301 | 3,790 | 3,311 | ||||||||||||
Interest Expense, Net | 18 | 18 | 54 | 80 | ||||||||||||
Income Tax Provision(A) | 277 | 346 | 1,005 | 957 | ||||||||||||
Net Income Attributable to Monsanto Company | $ | 909 | $ | 937 | $ | 2,731 | $ | 2,274 |
Fiscal Year 2013 | Three Months Ended May 31, | Nine Months Ended May 31, | ||||||||||||||||
Guidance | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Diluted Earnings per Share | $4.54-$4.59 | $ | 1.68 | $ | 1.74 | $ | 5.05 | $ | 4.21 | |||||||||
Income on Discontinued Operations | (0.02) | — | — | (0.02 | ) | (0.01 | ) | |||||||||||
Nitro Claims Settlement | — | — | — | — | 0.05 | |||||||||||||
Resolution of a Legacy Tax Matter | (0.02) | (0.02 | ) | (0.11 | ) | (0.02 | ) | (0.11 | ) | |||||||||
Diluted Earnings per Share from Ongoing Business | $4.50-$4.55 | $ | 1.66 | $ | 1.63 | $ | 5.01 | $ | 4.14 |
Fiscal Year 2013 | Nine Months Ended May 31, | |||||||||
Guidance | 2013 | 2012 | ||||||||
Net Cash Provided by Operating Activities | $ | 2,800-3,100 | $ | 786 | $ | 853 | ||||
Net Cash Required by Investing Activities | (1,000)-(1,100) | (387 | ) | (542 | ) | |||||
Free Cash Flow | $ | 1,800-2,000 | 399 | 311 | ||||||
Net Cash Required by Financing Activities | N/A | (739 | ) | (1,021 | ) | |||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | N/A | (22 | ) | (146 | ) | |||||
Net Decrease in Cash and Cash Equivalents | N/A | (362 | ) | (856 | ) | |||||
Cash and Cash Equivalents at Beginning of Period | N/A | 3,283 | 2,572 | |||||||
Cash and Cash Equivalents at End of Period | N/A | $ | 2,921 | $ | 1,716 |
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