EX-99.1 2 a05-11652_1ex99d1.htm EX-99.1

Exhibit 99.1

 

Second Quarter Report

 

McCormick & Company, Incorporated

 

Consolidated Income Statement

(In thousands except per-share data)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

5/31/2005

 

5/31/2004

 

5/31/2005

 

5/31/2004

 

Net sales

 

$

628,571

 

$

596,164

 

$

1,232,195

 

$

1,168,526

 

Cost of goods sold

 

387,225

 

364,238

 

762,680

 

714,913

 

Gross profit

 

241,346

 

231,926

 

469,515

 

453,613

 

Gross profit margin

 

38.4

%

38.9

%

38.1

%

38.8

%

Selling, general & administrative expense

 

170,864

 

168,652

 

339,775

 

328,885

 

Special charges / (credits)

 

(670

)

(6,448

)

630

 

(6,379

)

Operating income

 

71,152

 

69,722

 

129,110

 

131,107

 

Interest expense

 

11,942

 

9,695

 

23,026

 

19,267

 

Other (income) / expense, net

 

97

 

(536

)

43

 

(684

)

Income from consolidated operations before income taxes

 

59,113

 

60,563

 

106,041

 

112,524

 

Income taxes

 

18,916

 

18,713

 

33,933

 

34,769

 

Net income from consolidated operations

 

40,197

 

41,850

 

72,108

 

77,755

 

Income from unconsolidated operations

 

3,802

 

1,825

 

9,258

 

5,085

 

Minority interest

 

(1,205

)

(822

)

(2,537

)

(1,881

)

Net income

 

$

42,794

 

$

42,853

 

$

78,829

 

$

80,959

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - basic

 

$

0.32

 

$

0.31

 

$

0.58

 

$

0.59

 

Earnings per share - diluted

 

$

0.31

 

$

0.30

 

$

0.56

 

$

0.57

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding - basic

 

134,742

 

137,679

 

135,193

 

137,519

 

Average shares outstanding - diluted

 

138,739

 

142,494

 

139,586

 

142,133

 

 



 

Second Quarter Report

 

McCormick & Company, Incorporated

 

 

 

Consolidated Balance Sheet

 

 

(In thousands)

 

 

 

 

 

5/31/2005

 

5/31/2004

 

Assets

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

$

20,096

 

$

16,125

 

Receivables, net

 

328,117

 

309,700

 

Inventories

 

345,281

 

373,974

 

Prepaid expenses and other current assets

 

45,560

 

37,416

 

Total current assets

 

739,054

 

737,215

 

Property, plant and equipment, net

 

471,495

 

456,556

 

Goodwill and intangible assets, net

 

789,719

 

727,505

 

Prepaid allowances

 

50,078

 

79,711

 

Investments and other assets

 

136,317

 

129,287

 

Total assets

 

$

2,186,663

 

$

2,130,274

 

 

 

 

 

 

 

Liabilities and shareholders’ equity

 

 

 

 

 

Current liabilities

 

 

 

 

 

Short-term borrowings and current portion of long-term debt

 

$

421,455

 

$

142,810

 

Trade accounts payable

 

167,816

 

166,188

 

Other accrued liabilities

 

293,329

 

295,475

 

Total current liabilities

 

882,600

 

604,473

 

Long-term debt

 

271,202

 

495,884

 

Other long-term liabilities

 

197,745

 

204,900

 

Total liabilities

 

1,351,547

 

1,305,257

 

Minority interest

 

29,128

 

23,780

 

Shareholders’ equity

 

 

 

 

 

Common stock

 

372,127

 

312,192

 

Retained earnings

 

375,721

 

448,463

 

Accumulated other comprehensive income

 

58,140

 

40,582

 

Total shareholders’ equity

 

805,988

 

801,237

 

Total liabilities and shareholders’ equity

 

$

2,186,663

 

$

2,130,274

 

 



 

Second Quarter Report

 

McCormick & Company, Incorporated

 

 

 

Consolidated Statement of Cash Flows (Unaudited)

 

 

(In thousands)

 

 

 

 

 

Six Months Ended

 

 

 

5/31/2005

 

5/31/2004

 

Cash flows from operating activities

 

 

 

 

 

Net income

 

$

78,829

 

$

80,959

 

Adjustments to reconcile net income to net cash flow from operating activities:

 

 

 

 

 

Depreciation and amortization

 

35,493

 

34,702

 

Income from unconsolidated operations

 

(9,258

)

(5,085

)

Changes in operating assets and liabilities

 

(47,504

)

(31,943

)

Dividends from unconsolidated affiliates

 

9,020

 

900

 

Net cash flow from operating activities

 

66,580

 

79,533

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Capital expenditures

 

(30,316

)

(27,654

)

Proceeds from sale of property, plant and equipment

 

488

 

1,271

 

Net cash flow from investing activities

 

(29,828

)

(26,383

)

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Short-term borrowings, net

 

54,686

 

(28,686

)

Long-term debt borrowings

 

5

 

49,788

 

Long-term debt repayments

 

(352

)

(260

)

Proceeds from exercised stock options

 

28,983

 

31,273

 

Common stock acquired by purchase

 

(120,732

)

(80,740

)

Dividends paid

 

(43,337

)

(38,561

)

Net cash flow from financing activities

 

(80,747

)

(67,186

)

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

(6,244

)

5,020

 

Decrease in cash and cash equivalents

 

(50,239

)

(9,016

)

Cash and cash equivalents at beginning of period

 

70,335

 

25,141

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

$

20,096

 

$

16,125