-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, MbzluFZ1slirYuAMdzOJjRcS2Rh9Y8/1L8h3B/a9Ir29vBJ1RdU+buvD16Zh8/aO 8CRRqhGQnP4laiPSDB0w7w== 0000950110-95-000390.txt : 19950517 0000950110-95-000390.hdr.sgml : 19950516 ACCESSION NUMBER: 0000950110-95-000390 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950512 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTERNATIONAL FLAVORS & FRAGRANCES INC CENTRAL INDEX KEY: 0000051253 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL ORGANIC CHEMICALS [2860] IRS NUMBER: 131432060 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-04858 FILM NUMBER: 95537154 BUSINESS ADDRESS: STREET 1: 521 W 57TH ST CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2127655500 MAIL ADDRESS: STREET 2: 521 W 57TH ST CITY: NEW YORK STATE: NY ZIP: 10019 FORMER COMPANY: FORMER CONFORMED NAME: VANAMERIGEN HAEBLER INC DATE OF NAME CHANGE: 19680426 10-Q 1 FOR QUARTER ENDED 03/31/95 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended March 31, 1995 Commission file number 1-4858 INTERNATIONAL FLAVORS & FRAGRANCES INC. (Exact Name of Registrant as specified in its charter) New York 13-1432060 - --------------------------------------------- --------------------------- (State or other jurisdiction of incorporation (IRS Employer or organization) Identification No.) 521 West 57th Street, New York, N.Y. 10019-2905 - --------------------------------------------- --------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (212) 765-5500 Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Sections 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No --------- ---------- Number of shares outstanding as of May 9,1995: 111,576,729 PART. I FINANCIAL INFORMATION 1 Item 1. Financial Statements INTERNATIONAL FLAVORS & FRAGRANCES INC. CONSOLIDATED BALANCE SHEET (Dollars in thousands) 3/31/95 12/31/94 ---------- ---------- Assets Current Assets: Cash & Cash Equivalents ....................... $ 219,652 $ 230,581 Short-term Investments ........................ 78,877 71,227 Trade Receivables ............................. 290,603 228,434 Allowances For Doubtful Accounts .............. (7,983) (7,448) Inventories: Raw Materials .................... 234,953 211,071 Work in Process .................. 27,964 25,600 Finished Goods ................... 133,424 125,434 ---------- ---------- Total Inventories ................ 396,341 362,105 Other Current Assets .......................... 82,558 79,587 ---------- ---------- Total Current Assets .......................... 1,060,048 964,486 ---------- ---------- Property, Plant & Equipment, At Cost ............ 785,516 736,912 Accumulated Depreciation ........................ (354,126) (331,182) ---------- ---------- 431,390 405,730 Other Assets .................................... 28,203 29,509 ---------- ---------- Total Assets .................................... $1,519,641 $1,399,725 ========== ========== Liabilities and Shareholders' Equity Current Liabilities: Bank Loans .................................... $ 11,021 $ 9,740 Accounts Payable--Trade ....................... 69,874 56,861 Dividends Payable ............................. 34,603 34,554 Income Taxes .................................. 85,232 70,505 Other Current Liabilities ..................... 91,865 88,063 ---------- ---------- Total Current Liabilities ..................... 292,595 259,723 ---------- ---------- Other Liabilities: Deferred Income Taxes ......................... 10,294 14,350 Long-term Debt ................................ 15,102 14,342 Other ......................................... 106,328 103,231 ---------- ---------- Total Other Liabilities ......................... 131,724 131,923 ---------- ---------- Shareholders' Equity: Common Stock (115,761,840 shares issued in '95 and in '94) ................... 14,470 14,470 Capital in Excess of Par Value ................ 144,225 146,022 Retained Earnings ............................. 997,200 961,847 Cumulative Translation Adjustment ............. 89,720 41,798 ---------- ---------- 1,245,615 1,164,137 Treasury Stock, at cost--4,138,785 shares in '95 and 4,297,540 in '94 ................. (150,293) (156,058) ---------- ---------- Total Shareholders' Equity .................... 1,095,322 1,008,079 ---------- ---------- Total Liabilities and Shareholders' Equity ...... $1,519,641 $1,399,725 ========== ========== See Notes to Consolidated Financial Statements INTERNATIONAL FLAVORS & FRAGRANCES INC. 2 CONSOLIDATED STATEMENT OF INCOME (Dollars in thousands except per share amounts) 3 Months Ended 3/31 -------------------------- 1995 1994 ---------- ---------- Net Sales ....................................... $ 373,594 $ 323,537 ---------- ---------- Cost of Goods Sold .............................. 190,784 165,620 Research and Development Expenses ............... 22,141 19,353 Selling and Administrative Expenses ............. 53,562 48,845 Interest Expense ................................ 565 6,165 Other (Income) Expense, Net ..................... (4,500) (10,454) ---------- ---------- 262,552 229,529 ---------- ---------- Income Before Taxes on Income ................... 111,042 94,008 Taxes on Income ................................. 41,086 35,067 ---------- ---------- Net Income ...................................... $ 69,956 $ 58,941 ========== ========== Earnings Per Share .............................. $0.63 $0.53 Average Number of Shares Outstanding (000) ............................. 111,531 111,883 Dividends Paid Per Share ........................ $0.31 $0.27 See Notes to Consolidated Financial Statements INTERNATIONAL FLAVORS & FRAGRANCES INC. 3 CONSOLIDATED STATEMENT OF CASH FLOWS (Dollars in thousands) 3 Months Ended 3/31 ------------------------ 1995 1994 -------- -------- Cash Flows From Operating Activities: Net Income ...................................... $ 69,956 $ 58,941 Adjustments to Reconcile to Net Cash Provided by Operations: Depreciation ................................ 9,724 8,673 Deferred Income Taxes ....................... 1,350 7,533 Changes in Assets and Liabilities: Current Receivables ....................... (53,797) (45,100) Inventories ............................... (21,384) 3,045 Current Payables .......................... 28,141 15,869 Other, Net ................................ (6,436) (5,529) -------- -------- Net Cash Provided by Operations ................. 27,554 43,432 -------- -------- Cash Flows From Investing Activities: Proceeds From Sale/Maturities Short-Term Investments ...................... 19,473 64,852 Purchases of Short-Term Investments ........... (25,051) (9,389) Additions to Property, Plant & Equipment, Net of Minor Disposals ...................... (18,059) (16,081) -------- -------- Net Cash Provided by (Used in) Investing Activities .................................. (23,637) 39,382 -------- -------- Cash Flows From Financing Activities: Cash Dividends Paid to Shareholders ........... (34,554) (30,260) Increase (Decrease) in Bank Loans ............. 820 (19,427) Increase (Decrease) in Long-Term Debt ......... (1,054) 16,693 Proceeds From Issuance of Stock Under Stock Option Plans .......................... 3,852 1,708 Purchase of Treasury Stock .................... 0 (22,942) -------- -------- Net Cash Used In Financing Activities ......... (30,936) (54,228) -------- -------- Effect of Exchange Rate Changes on Cash and Cash Equivalents ........................ 17,063 2,986 -------- -------- Net Change in Cash and Cash Equivalents ....... (9,956) 31,572 Cash and Cash Equivalents at Beginning of Year ..................................... 229,608 187,205 -------- -------- Cash and Cash Equivalents at End of Period .... $219,652 $218,777 ======== ======== Interest Paid .............................. $ 717 $ 5,950 Income Taxes Paid .......................... $ 27,121 $ 28,661 See Notes to Consolidated Financial Statements 4 Notes to Consolidated Financial Statements These interim statements and management's related discussion and analysis should be read in conjunction with the consolidated financial statements and their related notes, and management's discussion and analysis of results of operations and financial condition included in the Company's 1994 Annual Report to Shareholders. In the opinion of the Company's management, all normal recurring adjustments necessary for a fair statement of the results for the interim periods have been made. Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition Operations Worldwide net sales for the first quarter of 1995 increased 15% over the prior year to $373,594,000, with sales increases in both flavor and fragrance products. The sales increase in the first quarter of 1995 was favorably affected by translating foreign currencies into the U.S. dollar; if the exchange rates had remained the same during 1995 and 1994, the sales increase for the quarter would have approximated 10%. Net income for the first quarter of 1995 increased 19% to $69,956,000 from $58,941,000 in the prior year quarter. The profit growth recorded by the Company was primarily the result of the sales increase for the period. Earnings per share for the quarter were $.63, as compared to $.53 in the prior year quarter. The percentage relationship of cost of goods sold and other operating expenses to sales for the first quarter 1995 and 1994 remained fairly constant, especially on an overall basis. First Quarter ------------------ 1995 1994 ----- ----- Cost of Goods Sold .......................... 51.1% 51.2% Research and Development Expense ............ 5.9% 6.0% Selling and Administrative Expense .......... 14.3% 15.1% Interest expense was $565,000 for the first quarter of 1995, compared to $6,165,000 for the same period in 1994. The lower interest expense in 1995 resulted primarily from the lower average level of borrowings and lower interest rates in Brazil, where such borrowings were used as hedges against devaluations in that country. In both periods, the borrowing levels in Brazil generated substantially offsetting exchange gains which were included in Other income. Other income for the first quarter 1995 was $4,500,000, compared to $10,454,000 in the same period in 1994; the decline in 1995 was primarily due to lower exchange gains resulting from the hedging activities in Brazil, mentioned above. The effective tax rate for the first quarter 1995 was 37.0% as compared to 37.3% for the same period in 1994. 5 Financial Condition The financial condition of the Company continued to be strong during the first quarter. Cash, cash equivalents and short-term investments totaled $298,529,000 at March 31, 1995. At March 31, 1995, working capital was $767,453,000 compared to $704,763,000 at December 31, 1994. Gross additions to property, plant and equipment during the first quarter of 1995 were $18,198,000. In January 1995, the Company's cash dividend was increased 14.8% to an annual rate of $1.24 per share, and $.31 per share was paid to shareholders in the first quarter. The Company anticipates that its growth, capital expenditure programs and share repurchase program will be funded from internal sources. The cumulative translation adjustment component of Shareholders' Equity at March 31, 1995 was $89,720,000 compared to $41,798,000 at December 31, 1994. Changes in the component result from translating the net assets of the majority of the Company's foreign subsidiaries into U.S. dollars at current exchange rates as required by the Statement of Financial Accounting Standards No. 52 on accounting for foreign currency translation. 6 PART II OTHER INFORMATION ITEM 6. Exhibits and Reports on Form 8-K (a) Exhibits Exhibit 27--Financial Data Schedule (b) Reports on Form 8-K Registrant filed no report on Form 8-K during the quarter for which this report on Form 10-Q is filed. 7 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. INTERNATIONAL FLAVORS & FRAGRANCES INC. Dated: May 11, 1995 By: /s/ THOMAS H. HOPPEL -------------------------------- Thomas H. Hoppel, Vice-President & Treasurer Dated: May 11, 1995 By: /s/ STEPHEN A. BLOCK -------------------------------- Stephen A. Block, Vice-President Law and Secretary EX-27 2 3-MOS ENDED MAR-31-95
5 The schedule contains summary financial information extracted from the Consolidated Balance Sheet & Consolidated Statement of Income and is qualified in its entirety by reference to such financial statements. Amounts in thousands of dollars, except per share amounts. 3-MOS DEC-31-1995 MAR-31-1995 219,652 78,877 290,603 (7,983) 396,341 1,060,048 785,516 (354,126) 1,519,641 292,595 15,102 14,470 0 0 1,080,852 1,519,641 373,594 373,594 190,784 266,487 (4,500) 0 565 111,042 41,086 69,956 0 0 0 69,956 0.63 0.63
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