-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, C3hlVEITonebfzDa1d95W2G/7meABTkK17uh++I04ExyR7rdHX/zEVL/QBG1LY7N swqf1cwUVdPzhIZ736gg9A== 0000902277-05-000093.txt : 20050706 0000902277-05-000093.hdr.sgml : 20050706 20050706102453 ACCESSION NUMBER: 0000902277-05-000093 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050531 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050706 DATE AS OF CHANGE: 20050706 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DELTA & PINE LAND CO CENTRAL INDEX KEY: 0000902277 STANDARD INDUSTRIAL CLASSIFICATION: AGRICULTURE PRODUCTION - CROPS [0100] IRS NUMBER: 621040440 STATE OF INCORPORATION: DE FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14136 FILM NUMBER: 05939208 BUSINESS ADDRESS: STREET 1: ONE COTTON ROW CITY: SCOTT STATE: MS ZIP: 38772 BUSINESS PHONE: 6017423351 MAIL ADDRESS: STREET 1: ONE COTTON ROW CITY: SCOTT STATE: MS ZIP: 38772 8-K 1 a8k053105.txt 8-K 3RD QUARTER UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): July 6, 2005 DELTA AND PINE LAND COMPANY (Exact name of registrant as specified in its charter) Delaware 62-1040440 (State or other jurisdiction (IRS employer of incorporation) identification No.) 000-21788 (Commission file number) One Cotton Row, Scott, Mississippi 38772 (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (662) 742-4000 N/A (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] 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)) Item 2.02. Results of Operations and Financial Condition. On July 6, 2005, Delta and Pine Land Company ("D&PL") issued a press release reporting its results of operations and financial condition for the third quarter and nine months ended May 31, 2005. This press release is attached as Exhibit 99.1. Additionally, executive management will discuss D&PL's third quarter earnings during a conference call to be held July 6, 2005 at 11 a.m. ET/10 a.m. CT. All interested parties are invited to listen to the conference call by dialing 800-374-0532 (International, 706-634-0148), pass code 7411383. Live audio of the conference call will also be accessible at www.vcall.com. Also, refer to D&PL's Investor Relations section in its News and Events section of its Internet site at www.deltaandpine.com for further instructions about accessing the conference call. Information in this report, including the Exhibit attached hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing. Item 9.01. Financial Statements and Exhibits. (c) Exhibits. Exhibit No. Description - ----------- ----------- 99.1 Press Release dated July 6, 2005. SIGNATURE 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 hereunto duly authorized. DELTA AND PINE LAND COMPANY Date: July 6, 2005 /s/ R. D. Greene -------------------------- R. D. Greene, Vice President - Finance, Treasurer and Assistant Secretary EX-99 2 ex991053105.txt EXHIBIT 99.1 Delta and Pine Land Company P.O. Box 157 Scott, Mississippi 38772 - ------------------------------------------------------------------------------- Contact: Investors Media Tom Jagodinski Jonathan Gasthalter/Amy Cohen Delta and Pine Land Company Citigate Sard Verbinnen 662-742-4518 212-687-8080 DELTA AND PINE LAND COMPANY ANNOUNCES RECORD THIRD QUARTER AND NINE-MONTH REVENUES AND RESULTS OF OPERATIONS Increases Fiscal 2005 Earnings Guidance To $1.02-$1.11 Per Share, After Certain Litigation Expenses of $0.08 to $0.10 Per Share Increases Quarterly Dividend 25% To $0.15 Per Share Announces $50 Million Stock Repurchase Plan ------------------------------------------------- SCOTT, MS, July 6, 2005 -- Delta and Pine Land Company (NYSE:DLP) ("D&PL"), a leading commercial breeder, producer and marketer of cotton planting seed, today announced financial results for its third quarter and nine months ended May 31, 2005. Third Quarter and Nine-Month Results After charges of $0.01 per diluted share related to Pharmacia/Monsanto litigation expenses, net earnings for the 2005 third quarter were $0.91 per diluted share, an increase from last year's comparable third quarter net earnings of $0.79 per diluted share. In the prior year third quarter, net earnings were reduced by $0.05 per diluted share for Pharmacia/Monsanto litigation expenses. Revenues were $203.3 million in the current year third quarter, compared to $185.6 million recorded in the year-ago quarter. The revenue increase was primarily due to higher sales of premium priced stacked trait varieties and higher trait prices in the domestic segment. Operating expenses increased, largely due to higher research expenses, legal fees and Sarbanes-Oxley compliance costs. After charges of $0.06 per diluted share related to Pharmacia/Monsanto litigation expenses, net income for the 2005 nine-month period increased more than 50% to $1.28 per diluted share, compared to net income of $0.85 per diluted share for the same period last year. In the 2004 nine-month period, net income included a reduction of $0.16 per diluted share for Pharmacia/Monsanto litigation expenses. Revenues for the 2005 nine-month period increased 18% to $340.6 million, compared to $288.1 million in the prior year period. The revenue increase was primarily the result of higher unit sales of premium priced stacked trait picker varieties, as well as increases in trait fee prices. International revenues also increased, primarily due to higher unit sales and prices in Australia and Brazil, coupled with stronger export sales to Greece, Spain and Mexico. Sales at the Company's two joint ventures in China declined, principally due to strong competition from local varieties and reduced cotton plantings. Operating expenses increased, largely as a result of higher research and development expenses related to developing products with new technologies, compensation costs, legal fees and Sarbanes-Oxley compliance costs. Tom Jagodinski, President and Chief Executive Officer, said, "We are pleased with grower acceptance of our newer stacked trait cotton varieties and expect DP555 BG/RR and DP444 BG/RR to be the top two selling varieties planted in the U.S. this year. We also have substantial seed production of new products containing Monsanto's second-generation traits, Bollgard II(R) and Roundup Ready(R) Flex, in anticipation of next year's launch of these varieties. Further, we are continuing to take steps to enhance value by returning cash to our shareholders, including the significant dividend increase and additional share repurchase authorization." Stock Repurchase Plan D&PL also announced that its Board of Directors has authorized a new share repurchase program to buy up to an additional $50 million of the Company's common stock. The Company anticipates that repurchases will be implemented over time through a variety of methods, which generally will include open market purchases. The timing and amount of repurchases under the program will depend on market conditions, legal restrictions and other factors. As of June 30, 2005, the Company had purchased approximately 3.1 million shares of its common stock at an aggregate purchase price of $82.6 million in the current fiscal year. Current year repurchases totaled approximately 8% of the Company's issued and outstanding stock as of the beginning of the fiscal year. Quarterly Dividend The Company also announced that its Board of Directors has declared a dividend of $0.15 per share for the fourth quarter, an increase of 25% over the third quarter dividend. The dividend will be paid on September 14, 2005 to shareholders of record on August 31, 2005. 2005 Earnings Outlook For the fiscal year 2005, D&PL now expects to report sales in the range of $340 million to $360 million, based on U.S. cotton plantings remaining constant with 2004 levels. The Company is revising its earlier diluted earnings per share guidance to reflect an anticipated reduction in legal fees related to its lawsuit against Pharmacia and Monsanto, which previously were estimated to be $0.13 to $0.18 per diluted share. The Company now believes the Pharmacia/Monsanto legal expenses will be between $0.08 and $0.10 per diluted share. Accordingly, the Company now expects to report earnings per diluted share in the range of $1.02 to $1.11. The earlier guidance provided related to core business earnings remains unchanged. These earnings estimates include forecasts of fourth quarter domestic and international sales, slightly higher technology fee rebates under crop loss and replant programs than was experienced in 2004, and other assumptions regarding fourth quarter results. Crop loss and replant program rebates and other grower and channel marketing programs are finalized in the fourth quarter. Conference Call D&PL will hold a conference call this morning at 11:00 a.m. ET/10:00 a.m. CT to review this announcement. The call can be accessed by dialing 800-374-0532 (International, 706-634-0148) and access code 7411383. Live audio of the conference call will also be accessible at www.vcall.com. The call will be available on the website for 90 days, and will also be available by replay from noon ET/11:00 a.m. CT on Wednesday, July 6, 2005 through midnight ET/11:00 p.m. CT on Wednesday, July 13, 2005 by dialing 800-642-1687 (International, 706-645-9291) and entering the access code 7411383. 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) May 31, May 31, 2005 2004 ----------------- ------------------ NET SALES AND LICENSING FEES $ 203,320 $ 185,649 COST OF SALES 129,747 121,094 ----------------- ------------------ GROSS PROFIT 73,573 64,555 ----------------- ------------------ OPERATING EXPENSES: Research and development 5,781 4,465 Selling 3,706 3,230 General and administrative 6,143 3,767 ----------------- ------------------ 15,630 11,462 ----------------- ------------------ OPERATING INCOME 57,943 53,093 INTEREST INCOME, NET 336 262 OTHER EXPENSE (851) (3,650) EQUITY IN NET LOSS OF AFFILIATE (781) (1,033) MINORITY INTEREST IN LOSS OF SUBSIDIARIES 394 25 ----------------- ------------------ INCOME BEFORE INCOME TAXES 57,041 48,697 INCOME TAX EXPENSE 20,757 17,268 ----------------- ------------------ NET INCOME 36,284 31,429 DIVIDENDS ON PREFERRED STOCK (128) (128) ----------------- ------------------ NET INCOME APPLICABLE TO COMMON SHARES $ 36,156 $ 31,301 ================= ================== BASIC NET EARNINGS PER SHARE $ 0.94 $ 0.82 ================= ================== NUMBER OF SHARES USED IN BASIC EARNINGS PER SHARE CALCULATIONS 38,416 38,311 ================= ================== DILUTED NET EARNINGS PER SHARE $ 0.91 $ 0.79 ================= ================== NUMBER OF SHARES USED IN DILUTED EARNINGS PER SHARE CALCULATIONS 39,839 39,799 ================= ================== DIVIDENDS PER COMMON SHARE $ 0.12 $ 0.12 ================= ==================
DELTA AND PINE LAND COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE NINE MONTHS ENDED (in thousands, except per share amounts) (Unaudited) May 31, May 31, 2005 2004 ----------------- ------------------ NET SALES AND LICENSING FEES $ 340,633 $ 288,129 COST OF SALES 213,343 185,601 ----------------- ------------------ GROSS PROFIT 127,290 102,528 ----------------- ------------------ OPERATING EXPENSES: Research and development 15,857 13,598 Selling 10,258 9,181 General and administrative 15,587 13,041 ----------------- ------------------ 41,702 35,820 ----------------- ------------------ OPERATING INCOME 85,588 66,708 INTEREST INCOME, NET 1,435 961 OTHER EXPENSE (3,331) (9,973) EQUITY IN NET LOSS OF AFFILIATE (2,167) (2,767) MINORITY INTEREST IN EARNINGS OF SUBSIDIARIES (1,951) (2,380) ----------------- ------------------ INCOME BEFORE INCOME TAXES 79,574 52,549 INCOME TAX EXPENSE 28,447 18,655 ----------------- ------------------ NET INCOME 51,127 33,894 DIVIDENDS ON PREFERRED STOCK (384) (363) ----------------- ------------------ NET INCOME APPLICABLE TO COMMON SHARES $ 50,743 $ 33,531 ================= ================== BASIC NET EARNINGS PER SHARE $ 1.32 $ 0.88 ================= ================== NUMBER OF SHARES USED IN BASIC EARNINGS PER SHARE CALCULATIONS 38,573 38,183 ================= ================== DILUTED NET EARNINGS PER SHARE $ 1.28 $ 0.85 ================= ================== NUMBER OF SHARES USED IN DILUTED EARNINGS PER SHARE CALCULATIONS 39,928 39,685 ================= ================== DIVIDENDS PER COMMON SHARE $ 0.36 $ 0.34 ================= ==================
DELTA AND PINE LAND COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) (Unaudited) May 31, August 31, May 31, 2005 2004 2004 ------------------ ----------------- ----------------- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 111,287 $ 149,587 $ 148,651 Receivables, net 258,087 184,759 229,759 Inventories 29,099 30,151 26,780 Prepaid expenses 1,024 1,923 807 Deferred income taxes 5,230 9,055 10,755 ------------------ ----------------- ----------------- Total current assets 404,727 375,475 416,752 PROPERTY, PLANT AND EQUIPMENT, NET 61,255 61,988 61,205 EXCESS OF COST OVER NET ASSETS OF BUSINESSES ACQUIRED 4,183 4,183 4,183 INTANGIBLES, NET 5,797 5,471 5,350 OTHER ASSETS 1,492 1,594 1,660 DEFERRED INCOME TAXES 7,603 8,312 - ------------------ ----------------- ----------------- TOTAL ASSETS $ 485,057 $ 457,023 $ 489,150 ================== ================= ================= LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES : Notes payable $ 11,491 $ 5,639 $ - Accounts payable 11,820 23,784 8,885 Accrued expenses 242,960 187,890 209,432 Income taxes payable 19,995 8,912 20,789 ------------------ ----------------- ----------------- Total current liabilities 286,266 226,225 239,106 ------------------ ----------------- ----------------- LONG-TERM DEBT 11,217 16,486 - ------------------ ----------------- ----------------- DEFERRED INCOME TAXES - - 4,183 ------------------ ----------------- ----------------- MINORITY INTEREST IN SUBSIDIARIES 5,219 4,586 4,662 ------------------ ----------------- ----------------- 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; 456,989 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; 40,857,834, 40,162,820 and 40,001,984 shares issued; 36,138,728, 38,495,354 and 38,441,718 shares outstanding 4,086 4,016 4,000 Capital in excess of par value 79,941 64,250 61,700 Retained earnings 213,891 176,808 210,129 Accumulated other comprehensive loss (1,390) (3,736) (5,314) Treasury stock, at cost; 4,719,106, 1,667,466 and 1,560,266 shares (114,280) (31,719) (29,423) ------------------ ----------------- ----------------- TOTAL STOCKHOLDERS' EQUITY 182,355 209,726 241,199 ------------------ ----------------- ----------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 485,057 $ 457,023 $ 489,150 ================== ================= =================
DELTA AND PINE LAND COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED (in thousands) (Unaudited) May 31, May 31, 2005 2004 ----------------- ----------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 51,127 $ 33,894 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 6,461 6,228 (Gain) loss on sale of assets (309) 220 Equity in net loss of affiliate 2,167 2,767 Foreign exchange (gain)loss (95) 125 Accretion of debt discount 583 - Minority interest in earnings of subsidiaries 1,951 2,380 Compensation expense of restricted stock 67 - Change in deferred taxes 4,574 (1,168) Changes in assets and liabilities: Receivables (72,774) (62,786) Inventories 1,595 5,612 Prepaid expenses 897 1,294 Intangibles and other assets (382) 41 Accounts payable (12,351) (9,195) Accrued expenses 54,853 33,063 Income taxes 13,494 13,652 ----------------- ----------------- Net cash provided by operating activities 51,858 26,127 ----------------- ----------------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (5,129) (3,101) Sale of investments and property 433 64 Investment in affiliate (2,230) (1,880) ----------------- ----------------- Net cash used in investing activities (6,926) (4,917) ----------------- ----------------- CASH FLOWS FROM FINANCING ACTIVITIES: Payments of short-term debt - (277) Payments of long-term debt - (1,607) Dividends paid (14,044) (13,375) Proceeds from short-term debt - 245 Minority interest in dividends paid by subsidiary (1,318) (1,336) Payments to acquire treasury stock (82,561) (3,452) Proceeds from exercise of stock options 13,176 4,097 ----------------- ----------------- Net cash used in financing activities (84,747) (15,705) ----------------- ----------------- EFFECTS OF FOREIGN CURRENCY EXCHANGE RATES 1,515 (139) NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (38,300) 5,366 CASH AND CASH EQUIVALENTS, August 31 149,587 143,285 ----------------- ----------------- CASH AND CASH EQUIVALENTS, May 31 $ 111,287 $ 148,651 ================= ================= SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid during the nine months for: Interest, net of capitalized interest $ - $ 10 Income taxes paid $ 9,261 $ 5,590 Noncash financing activities: Tax benefit of stock option exercises $ 2,518 $ 2,799
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