Monsanto Company
800 North Lindbergh Blvd
St. Louis, Missouri 63167
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| Release | Immediately |
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| Contact | Media: Sara Miller (314-694-5824) |
| | Analysts: Bryan Hurley (314-694-8148) |
MONSANTO DELIVERS THIRD CONSECUTIVE YEAR OF STRONG GROWTH ON PERFORMANCE OF GLOBAL PORTFOLIO; ON TRACK FOR STRONG OPERATIONAL GROWTH FROM CORE BUSINESS IN FY14
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| • | Signs definitive agreement to acquire The Climate Corporation, accelerating opportunity of Integrated Farming Systems as transformational growth platform and unlocking next incremental yield opportunity for farmers |
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| • | Outlines continued strong business growth, with guidance for double-digit gross profit growth, margin expansion and mid-to-high-teens EBITDA growth in FY14 |
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| • | FY14 earnings per share guidance at $5.00 to $5.20 after $0.14 of acquisition related dilution |
ST. LOUIS (Oct. 2, 2013) - Monsanto Company (NYSE: MON) today announced fiscal year 2013 results near the high end of its guidance range, the third straight year of greater than 20 percent ongoing earnings growth. Executives noted the company is well-positioned for continued growth in fiscal year 2014 with the sustained performance of its core business enabling continued investment in global growth opportunities and the development of transformational new platforms. This includes today's announced agreement to acquire The Climate Corporation that will establish Monsanto as a leader in the area of data science, expanding the near- and long-term growth opportunities of its Integrated Farming Systems platform.
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| | | | | | | | | | | | | | | | |
| | | Fourth Quarter | | Fiscal Year |
| ($ in millions) | | 2013 | | 2012 | | 2013 | | 2012 |
| Net Sales by Segment | | | | | | | | |
| Corn seed and traits | | $ | 618 |
| | $ | 588 |
| | $ | 6,596 |
| | $ | 5,814 |
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| Soybean seed and traits | | 87 |
| | 142 |
| | 1,653 |
| | 1,771 |
|
| Cotton seed and traits | | 65 |
| | 29 |
| | 695 |
| | 779 |
|
| Vegetable seeds | | 250 |
| | 284 |
| | 821 |
| | 851 |
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| All other crops seeds and traits | | 165 |
| | 160 |
| | 575 |
| | 574 |
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| TOTAL Seeds and Genomics | | $ | 1,185 |
| | $ | 1,203 |
| | $ | 10,340 |
| | $ | 9,789 |
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| | | | | | | | | |
| Agricultural productivity | | $ | 1,017 |
| | $ | 895 |
| | $ | 4,521 |
| | $ | 3,715 |
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| TOTAL Agricultural Productivity | | $ | 1,017 |
| | $ | 895 |
| | $ | 4,521 |
| | $ | 3,715 |
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| | | | | | | | | |
| TOTAL Net Sales | | $ | 2,202 |
| | $ | 2,098 |
| | $ | 14,861 |
| | $ | 13,504 |
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| | | | | | | | | |
| Gross Profit | | $ | 924 |
| | $ | 881 |
| | $ | 7,653 |
| | $ | 7,045 |
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| | | | | | | | | |
| Operating Expenses | | $ | 1,213 |
| | $ | 1,137 |
| | $ | 4,083 |
| | $ | 3,897 |
|
| Interest Expense – Net | | $ | 26 |
| | $ | 34 |
| | $ | 80 |
| | $ | 114 |
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| Other Expense – Net | | $ | 26 |
| | $ | (1 | ) | | $ | 61 |
| | $ | 46 |
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| Net Income (Loss) Attributable to Monsanto Company | | $ | (249 | ) | | $ | (229 | ) | | $ | 2,482 |
| | $ | 2,045 |
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| | | | | | | | | |
Diluted Earnings (Loss) per Share (See note 1.) | | $ | (0.47 | ) | | $ | (0.42 | ) | | $ | 4.60 |
| | $ | 3.79 |
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| Items Affecting Comparability – EPS Impact | | |
| | |
| | |
| | |
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| Restructuring charges, net | | — |
| | (0.02 | ) | | — |
| | (0.02 | ) |
| Income on discontinued operations | | — |
| | — |
| | (0.02 | ) | | (0.01 | ) |
| Nitro Claims Settlement | | — |
| | — |
| | — |
| | 0.05 |
|
| Resolution of a Legacy Tax Matter | | — |
| | — |
| | (0.02 | ) | | (0.11 | ) |
Diluted Earnings per Share from Ongoing Business (For the definition of ongoing EPS, see note 1.) | | $ | (0.47 | ) | | $ | (0.44 | ) | | $ | 4.56 |
| | $ | 3.70 |
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| Effective Tax Rate | | 30 | % | | 24 | % | | 27 | % | | 30 | % |
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| | | | | | | | | |
| | | | Fourth Quarter | | Fiscal Year |
| Comparison as a Percent of Net Sales: | | 2013 | | 2012 | | 2013 | | 2012 |
| | Gross profit | | 42% | | 42% | | 51% | | 52% |
| | Selling, general and administrative expenses | | 35% | | 34% | | 17% | | 18% |
| | Research and development expenses | | 20% | | 21% | | 10% | | 11% |
| | Income (loss) from continuing operations before income taxes | | (15)% | | (14)% | | 23% | | 22% |
| | Net income (loss) attributable to Monsanto Company | | (11)% | | (11)% | | 17% | | 15% |
“The strength of our broad global portfolio enabled us to deliver a third consecutive year of strong business results, and by building off our proven strategy we're confident the key elements are in place to carry that momentum through to achieve strong business growth in 2014,” said Hugh Grant, chairman and chief executive officer for Monsanto. “The performance of our core business gives us the ability to invest efficiently in breakthrough agricultural innovation that, by making farming more precise, will enable continued improvement in agriculture sustainability in the face of mounting environmental challenges. As the innovation leader, we've staked out the early position to unlock the next wave of on-farm yield opportunity for farmers around the world.”
Results of Operations
Monsanto reported net sales of approximately $2.2 billion for the fourth quarter of fiscal year 2013, an increase over the prior year period. Net sales for the full fiscal year were approximately $14.9 billion, a 10 percent increase over fiscal year 2012. Full year net sales results were driven by the strength of the Agricultural Productivity segment and global corn seeds and traits revenue.
Seeds and Genomics segment net sales were approximately $1.2 billion for the quarter. For the fiscal year, net sales for the Seeds and Genomics segment reached $10.3 billion, an approximately six percent increase over the prior year. Agricultural Productivity segment net sales were $1 billion for the quarter. Net sales for the Agricultural Productivity segment for the fiscal year increased to $4.5 billion.
Monsanto reported a net loss of $249 million in the fourth quarter of fiscal year 2013, compared with a reported net loss of $229 million in the same period last year. Net income for fiscal year 2013 was approximately $2.5 billion, an increase over fiscal year 2012 net income of $2.1 billion.
The company's fiscal year 2013 earnings per share (EPS) was $4.56 on an ongoing basis and $4.60 on an as-reported basis. For the fourth quarter, the company reported a loss per share of $0.47 on an ongoing basis and as-reported basis. (For a reconciliation of ongoing EPS, see page 1 and note 1.)
Cash Flow
For fiscal year 2013, net cash provided by operating activities was a source of $2.7 billion, compared with a source of $3.1 billion in fiscal year 2012. Net cash required by investing activities was $777 million in fiscal year 2013, compared with net cash required of $1 billion last year. Net cash required by financing activities was $1.5 billion for fiscal year 2013, compared with net cash required of $1.2 billion in fiscal year 2012. Free cash flow was a source of nearly $2 billion for fiscal year 2013, in line with fiscal year 2012. (For a reconciliation of free cash flow, see note 1.)
In fiscal year 2013, the company used nearly 100 percent of its $2 billion in free cash flow to return cash to shareowners through buybacks and dividends, including the completion of the company's $1 billion share-repurchase authorization and the initiation of buybacks under a new $2 billion, three-year repurchase program announced in June.
Outlook
Monsanto today announced a definitive agreement to acquire The Climate Corporation for a cash purchase price of approximately $930 million. The acquisition combines Monsanto's leading R&D capabilities with The Climate Corporation's leading analytical expertise, accelerating the opportunity of Monsanto's Integrated Farming Systems platform and unlocking the next incremental yield opportunity for farmers. See today's press release and supporting information at www.monsanto.com for more information about the acquisition.
In fiscal year 2014, Monsanto expects continued strong operational growth from its core business, reflected in mid-to-high teens growth in EBITDA and overall margin expansion. Monsanto expects to achieve EPS of $5.00 to $5.20 after approximately $0.14 of dilution related to The Climate Corporation acquisition.
The total company gross profit is expected in the range of $8.4 to $8.7 billion in 2014, representing double-digit year-over-year growth. The biggest driver of the growth is expected to be from the Seeds and Genomics segment in which the company expects to achieve mid-teens gross-profit growth in fiscal year 2014 as it significantly expands gross-profit margins in the segment.
The company projects free cash flow in the range of $600 million to $800 million for fiscal year 2014, after approximately $930 million in cash for The Climate Corporation acquisition. The company expects net cash provided by operating activities to be $2.9 billion to $3.3 billion, and net cash required by investing activities to be approximately $2.3 billion to $2.5 billion for fiscal year 2014, including capital expenditures and acquisition-related costs. (For a reconciliation of free cash flow, see note 1.)
Seeds and Genomics Segment Detail
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| ($ in millions) | | Net Sales | | Gross Profit |
| | | Fourth Quarter | | Fiscal Year | | Fourth Quarter | | Fiscal Year |
| Seeds and Genomics | | 2013 | | 2012 | | 2013 | | 2012 | | 2013 | | 2012 | | 2013 | | 2012 |
| Corn Seed and Traits | | $ | 618 |
| | $ | 588 |
| | $ | 6,596 |
| | $ | 5,814 |
| | $ | 301 |
| | $ | 284 |
| | $ | 3,929 |
| | $ | 3,589 |
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| Soybean Seed and Traits | | 87 |
| | 142 |
| | 1,653 |
| | 1,771 |
| | 37 |
| | 81 |
| | 948 |
| | 1,160 |
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| Cotton Seed and Traits | | 65 |
| | 29 |
| | 695 |
| | 779 |
| | 53 |
| | 18 |
| | 519 |
| | 585 |
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| Vegetable Seeds | | 250 |
| | 284 |
| | 821 |
| | 851 |
| | 55 |
| | 159 |
| | 337 |
| | 419 |
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| All Other Crops Seeds and Traits | | 165 |
| | 160 |
| | 575 |
| | 574 |
| | 98 |
| | 89 |
| | 350 |
| | 306 |
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| TOTAL Seeds and Genomics | | $ | 1,185 |
| | $ | 1,203 |
| | $ | 10,340 |
| | $ | 9,789 |
| | $ | 544 |
| | $ | 631 |
| | $ | 6,083 |
| | $ | 6,059 |
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| | ($ in millions) | | Earnings Before Interest & Taxes (EBIT) | |
| | | | Fourth Quarter | | Fiscal Year | |
| | Seeds and Genomics | | 2013 | | 2012 | | 2013 | | 2012 | |
| | EBIT (For a reconciliation of EBIT, see note 1.) | | $ | (568 | ) | | $ | (387 | ) | | $ | 2,412 |
| | $ | 2,570 |
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The Seeds and Genomics segment consists of the company's global seeds and related traits business.
For the fiscal year, Monsanto realized Seeds and Genomics segment sales of $10.3 billion, led by its global corn portfolio that achieved a 13 percent increase over the prior year. Segment sales in the fourth quarter were approximately $1.2 billion.
The company expects continued growth in its Seeds and Genomics segment in fiscal year 2014, reflecting the opportunity in both the core U.S. and accelerating international businesses.
The opportunity begins with the company's global corn business where it is focused on continued unit volume growth and margin expansion from its better year-over-year cost position and germplasm and trait mix upgrades globally, including rapidly expanding emerging markets like Latin America and Eastern Europe.
Complementing the continued global corn opportunity in fiscal year 2014 is the expected strong soybean business growth as a result of the expanded Roundup Ready 2 Yield® opportunity in the United States and the launch of the Intacta RR2 PRO™ soybean product in Latin America.
Agricultural Productivity Segment Detail
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($ in millions) | | Net Sales | | Gross Profit |
| | Fourth Quarter | | Fiscal Year | | Fourth Quarter | | Fiscal Year |
| | | 2013 | | 2012 | | 2013 | | 2012 | | 2013 | | 2012 | | 2013 | | 2012 |
| Agricultural Productivity | | $ | 1,017 |
| | $ | 895 |
| | $ | 4,521 |
| | $ | 3,715 |
| | $ | 380 |
| | $ | 250 |
| | $ | 1,570 |
| | $ | 986 |
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| TOTAL Agricultural Productivity | | $ | 1,017 |
| | $ | 895 |
| | $ | 4,521 |
| | $ | 3,715 |
| | $ | 380 |
| | $ | 250 |
| | $ | 1,570 |
| | $ | 986 |
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| | ($ in millions) | | Earnings Before Interest & Taxes (EBIT) | |
| | | | Fourth Quarter | | Fiscal Year | |
| | Agricultural Productivity | | 2013 | | 2012 | | 2013 | | 2012 | |
| | EBIT (For a reconciliation of EBIT, see note 1.) | | $ | 238 |
| | $ | 123 |
| | $ | 1,048 |
| | $ | 477 |
| |
| | Unusual Items Affecting EBIT: | | | | | | | | | |
| | EBIT from Discontinued Operations | | $ | — |
| | $ | 2 |
| | $ | 17 |
| | $ | 10 |
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| | Nitro Claims Settlement | | $ | — |
| | $ | — |
| | $ | — |
| | $ | (44 | ) | |
The Agricultural Productivity segment consists of the crop protection products and lawn-and-garden herbicide products.
Segment sales for the quarter reached $1 billion with gross profit of $380 million. For the fiscal year, the segment delivered net sales of $4.5 billion with gross profit of approximately $1.6 billion, with year-over-year increases that reflect the overall positive market environment and Monsanto's focused business strategy. The company anticipates the Agricultural Productivity segment to continue to be a steady-to-stronger contributor to the business in fiscal year 2014.
Webcast Information
In conjunction with this announcement, Monsanto will hold a conference call at 8:30 a.m. central time (9:30 a.m. eastern time) today. The call will focus on these results and future expectations and may include a discussion of Monsanto’s strategic initiatives, product performance and other matters related to the company’s business.
Presentation slides and a simultaneous audio webcast of the conference call may be accessed by visiting the company's website at www.monsanto.com/investors or http://edge.media-server.com/m/p/t5a96ear/lan/en.
Visitors may need to download Windows Media Player™ prior to listening to the webcast. Following the live broadcast, a replay of the webcast will be available on the Monsanto website for three weeks. Monsanto publishes details on upcoming webcasts on this website in both the Presentation and Financial Reports section and the Calendar of Events section. Investors should look to this site as the source of information on future investor conference webcasts. The site includes a calendar of upcoming investor events, details on accessing scheduled webcasts and information from previous investor events.
About Monsanto Company
Monsanto Company is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality. Monsanto remains focused on enabling both small-holder and large-scale farmers to produce more from their land while conserving more of our world's natural resources such as water and energy. To learn more about our business and our commitments, please visit: www.monsanto.com . Follow our business on Twitter® at www.twitter.com/MonsantoCo, on the company blog, Beyond the Rows at www.monsantoblog.com, or subscribe to our News Release RSS Feed.
Cautionary Statements Regarding Forward-Looking Information:
Certain statements contained in this release are "forward-looking statements," such as statements concerning the company's anticipated financial results, current and future product performance, regulatory approvals, business and financial plans and other non-historical facts. These statements are based on current expectations and currently available information. However, since these statements are based on factors that involve risks and uncertainties, the company's actual performance and results may differ materially from those described or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, among others: continued competition in seeds, traits and agricultural chemicals; the company's exposure to various contingencies, including those related to intellectual property protection, regulatory compliance and the speed with which approvals are received, and public acceptance of biotechnology products; the success of the company's research and development activities; the outcomes of major lawsuits and the previously-announced SEC investigation; developments related to foreign currencies and economies; successful operation of recent acquisitions; fluctuations in commodity prices; compliance with regulations affecting our manufacturing; the accuracy of the company's estimates related to distribution inventory levels; the company's ability to fund its short-term financing needs and to obtain payment for the products that it sells; the effect of weather conditions, natural disasters and accidents on the agriculture business or the company's facilities; and other risks and factors detailed in the company's most recent Form 10-K Report to the SEC. Undue reliance should not be placed on these forward-looking statements, which are current only as of the date of this release. The company disclaims any current intention or obligation to update any forward-looking statements or any of the factors that may affect actual results.
Notes to editors: Monsanto and the Vine Design, Roundup Ready 2 Yield and Intacta RR2 PRO are trademarks of Monsanto Company and its wholly-owned subsidiaries.
-oOo-
Monsanto Company
Selected Financial Information
(Dollars in millions, except per share amounts)
Unaudited
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| | | | | | | | | | | | | | | | |
| Statements of Consolidated Operations | | Three Months Ended Aug. 31, | | Twelve Months Ended Aug. 31, |
| | | 2013 | | 2012 | | 2013 | | 2012 |
| Net Sales | | $ | 2,202 |
| | $ | 2,098 |
| | $ | 14,861 |
| | $ | 13,504 |
|
| Cost of Goods Sold | | 1,278 |
| | 1,217 |
| | 7,208 |
| | 6,459 |
|
| Gross Profit | | 924 |
| | 881 |
| | 7,653 |
| | 7,045 |
|
| Operating Expenses: | | |
| | |
| | |
| | |
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| Selling, general and administrative expenses | | 778 |
| | 709 |
| | 2,550 |
| | 2,390 |
|
| Research and development expenses | | 435 |
| | 439 |
| | 1,533 |
| | 1,517 |
|
| Restructuring charges, net | | — |
| | (10 | ) | | — |
| | (10 | ) |
| Total Operating Expenses | | 1,213 |
| | 1,138 |
| | 4,083 |
| | 3,897 |
|
| Income (Loss) From Operations | | (289 | ) | | (257 | ) | | 3,570 |
| | 3,148 |
|
| Interest Expense | | 49 |
| | 52 |
| | 172 |
| | 191 |
|
| Interest Income | | (23 | ) | | (18 | ) | | (92 | ) | | (77 | ) |
| Other Expense (Income), Net | | 26 |
| | (1 | ) | | 61 |
| | 46 |
|
| Income (Loss) from Continuing Operations Before Income Taxes | | (341 | ) | | (290 | ) | | 3,429 |
| | 2,988 |
|
| Income Tax Provision (Benefit) | | (102 | ) | | (70 | ) | | 915 |
| | 901 |
|
| Income (Loss) from Continuing Operations Including Portion Attributable to Noncontrolling Interest | | $ | (239 | ) | | $ | (220 | ) | | $ | 2,514 |
| | $ | 2,087 |
|
| Discontinued Operations: | | |
| | |
| | |
| | |
|
| Income from Operations of Discontinued Businesses | | — |
| | 2 |
| | 17 |
| | 10 |
|
| Income Tax Provision | | — |
| | 1 |
| | 6 |
| | 4 |
|
| Income on Discontinued Operations | | — |
| | 1 |
| | 11 |
| | 6 |
|
| Net Income (Loss) | | $ | (239 | ) | | $ | (219 | ) | | $ | 2,525 |
| | $ | 2,093 |
|
| Less: Net Income Attributable to Noncontrolling Interest | | 10 |
| | 10 |
| | 43 |
| | 48 |
|
| Net Income (Loss) Attributable to Monsanto Company | | $ | (249 | ) | | $ | (229 | ) | | $ | 2,482 |
| | $ | 2,045 |
|
| | | | | | | | | |
| EBIT (see note 1) | | $ | (330 | ) | | $ | (264 | ) | | $ | 3,460 |
| | $ | 3,047 |
|
| | | | | | | | | |
| Basic Earnings (Loss) per Share Attributable to Monsanto Company: | | |
| | |
| | |
| | |
|
| Income (Loss) from Continuing Operations | | $ | (0.47 | ) | | $ | (0.43 | ) | | $ | 4.63 |
| | $ | 3.82 |
|
| Income (Loss) on Discontinued Operations | | — |
| | (0.01 | ) | | 0.02 |
| | 0.01 |
|
| Net Income (Loss) Attributable to Monsanto Company | | $ | (0.47 | ) | | $ | (0.44 | ) | | $ | 4.65 |
| | $ | 3.83 |
|
| | | | | | | | | |
| Diluted Earnings (Loss) per Share Attributable to Monsanto Company: | | |
| | |
| | |
| | |
|
| Income (Loss) from Continuing Operations | | $ | (0.47 | ) | | $ | (0.42 | ) | | $ | 4.58 |
| | $ | 3.78 |
|
| Income (Loss) on Discontinued Operations | | — |
| | — |
| | 0.02 |
| | 0.01 |
|
| Net Income (Loss) Attributable to Monsanto Company | | $ | (0.47 | ) | | $ | (0.42 | ) | | $ | 4.60 |
| | $ | 3.79 |
|
| | | | | | | | | |
| Weighted Average Shares Outstanding: | | |
| | |
| | |
| | |
|
| Basic | | 531.5 |
| | 533.5 |
| | 533.7 |
| | 534.1 |
|
| Diluted | | 531.5 |
| | 539.1 |
| | 539.7 |
| | 540.2 |
|
Monsanto Company
Selected Financial Information
(Dollars in millions, except per share amounts)
Unaudited
|
| | | | | | | | |
| Condensed Statements of Consolidated Financial Position | | As of Aug. 31, |
| | | 2013 | | 2012 |
| Assets | | | | |
| Current Assets: | | | | |
| Cash and cash equivalents (variable interest entities restricted - 2013: $140 and 2012: $120) | | $ | 3,668 |
| | $ | 3,283 |
|
| Short-term investments | | 254 |
| | 302 |
|
| Trade receivables, net (variable interest entities restricted - 2013: $0 and 2012: $52) | | 1,715 |
| | 1,897 |
|
| Miscellaneous receivables | | 748 |
| | 620 |
|
| Deferred tax assets | | 579 |
| | 534 |
|
| Inventory, net | | 2,947 |
| | 2,839 |
|
| Other current assets | | 166 |
| | 183 |
|
| Total Current Assets | | 10,077 |
| | 9,658 |
|
| Property, Plant and Equipment, Net | | 4,654 |
| | 4,365 |
|
| Goodwill | | 3,520 |
| | 3,435 |
|
| Other Intangible Assets, Net | | 1,226 |
| | 1,237 |
|
| Noncurrent Deferred Tax Assets | | 454 |
| | 551 |
|
| Long-Term Receivables, Net | | 237 |
| | 376 |
|
| Other Assets | | 496 |
| | 602 |
|
| Total Assets | | $ | 20,664 |
| | $ | 20,224 |
|
| Liabilities and Shareowners’ Equity | | |
| | |
|
| Current Liabilities: | | |
| | |
|
| Short-term debt, including current portion of long-term debt | | 51 |
| | 36 |
|
| Accounts payable | | 995 |
| | 794 |
|
| Income taxes payable | | 91 |
| | 75 |
|
| Accrued compensation and benefits | | 492 |
| | 546 |
|
| Accrued marketing programs | | 1,078 |
| | 1,281 |
|
| Deferred revenues | | 517 |
| | 396 |
|
| Grower production accruals | | 60 |
| | 194 |
|
| Dividends payable | | 228 |
| | 200 |
|
| Customer payable | | 12 |
| | 14 |
|
| Miscellaneous short-term accruals | | 812 |
| | 685 |
|
| Total Current Liabilities | | 4,336 |
| | 4,221 |
|
| Long-Term Debt | | 2,061 |
| | 2,038 |
|
| Postretirement Liabilities | | 357 |
| | 543 |
|
| Long-Term Deferred Revenue | | 138 |
| | 245 |
|
| Noncurrent Deferred Tax Liabilities | | 469 |
| | 313 |
|
| Long-Term Portion of Environmental and Litigation Reserves | | 193 |
| | 213 |
|
| Other Liabilities | | 382 |
| | 615 |
|
| Monsanto Shareowners’ Equity | | 12,559 |
| | 11,833 |
|
| Noncontrolling Interest | | 169 |
| | 203 |
|
| Total Shareowners’ Equity | | 12,728 |
| | 12,036 |
|
| Total Liabilities and Shareowners’ Equity | | $ | 20,664 |
| | $ | 20,224 |
|
| Debt to Capital Ratio: | | 14 | % | | 15 | % |
Monsanto Company
Selected Financial Information
(Dollars in millions, except per share amounts)
Unaudited |
| | | | | | | | |
| Statements of Consolidated Cash Flows | | Twelve Months Ended Aug. 31, |
| | | 2013 | | 2012 |
| Operating Activities: | | | | |
| Net Income | | $ | 2,525 |
| | $ | 2,093 |
|
| Adjustments to reconcile cash provided by operating activities: | | |
| | |
|
| Items that did not require (provide) cash: | | |
| | |
|
| Depreciation and amortization | | 615 |
| | 622 |
|
| Bad-debt expense | | 27 |
| | 3 |
|
| Stock-based compensation expense | | 100 |
| | 128 |
|
| Excess tax benefits from stock-based compensation | | (79 | ) | | (50 | ) |
| Deferred income taxes | | 262 |
| | 256 |
|
| Restructuring charges, net | | — |
| | (10 | ) |
| Equity affiliate income, net | | (17 | ) | | (19 | ) |
| Net gain on sales of a business or other assets | | (16 | ) | | (4 | ) |
| Other items, net | | (77 | ) | | 2 |
|
| Changes in assets and liabilities that provided (required) cash, net of acquisitions: | | | | |
|
| Trade receivables, net | | 222 |
| | 170 |
|
| Inventory, net | | (192 | ) | | (427 | ) |
| Deferred revenues | | 50 |
| | (39 | ) |
| Accounts payable and other accrued liabilities | | (128 | ) | | 439 |
|
| Restructuring cash payments | | — |
| | (12 | ) |
| Pension contributions | | (75 | ) | | (83 | ) |
| Other items, net | | (477 | ) | | (18 | ) |
| Net Cash Provided by Operating Activities | | 2,740 |
| | 3,051 |
|
| Cash Flows Provided (Required) by Investing Activities: | | |
| | |
|
| Purchases of short-term investments | | (716 | ) | | (746 | ) |
| Maturities of short-term investments | | 764 |
| | 746 |
|
| Capital expenditures | | (741 | ) | | (646 | ) |
| Acquisition of businesses, net of cash acquired | | (165 | ) | | (322 | ) |
| Technology and other investments | | (88 | ) | | (77 | ) |
| Other investments and property disposal proceeds | | 169 |
| | 11 |
|
| Net Cash Required by Investing Activities | | (777 | ) | | (1,034 | ) |
| Cash Flows Provided (Required) by Financing Activities: | | |
| | |
|
| Net change in financing with less than 90-day maturities | | 104 |
| | (116 | ) |
| Short-term debt proceeds | | 22 |
| | 30 |
|
| Short-term debt reductions | | (29 | ) | | (42 | ) |
| Long-term debt proceeds | | 32 |
| | 499 |
|
| Long-term debt reductions | | (2 | ) | | (629 | ) |
| Debt issuance costs | | — |
| | (5 | ) |
| Treasury stock purchases | | (1,095 | ) | | (432 | ) |
| Stock option exercises | | 257 |
| | 117 |
|
| Excess tax benefits from stock-based compensation | | 79 |
| | 50 |
|
| Tax withholding on restricted stock and restricted stock units | | (10 | ) | | (19 | ) |
| Dividend payments | | (802 | ) | | (642 | ) |
| Proceeds from noncontrolling interest | | 133 |
| | 101 |
|
| Dividend payments to noncontrolling interests | | (174 | ) | | (77 | ) |
| Net Cash Required by Financing Activities | | (1,485 | ) | | (1,165 | ) |
| Effect of Exchange Rate Changes on Cash and Cash Equivalents | | (93 | ) | | (141 | ) |
| Net Decrease in Cash and Cash Equivalents | | 385 |
| | 711 |
|
| Cash and Cash Equivalents at Beginning of Period | | 3,283 |
| | 2,572 |
|
| Cash and Cash Equivalents at End of Period | | $ | 3,668 |
| | $ | 3,283 |
|
Monsanto Company
Selected Financial Information
(Dollars in millions)
Unaudited
| |
| 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 Company.
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended Aug. 31, | | Twelve Months Ended Aug. 31, |
| | | 2013 | | 2012 | | 2013 | | 2012 |
| EBIT – Seeds and Genomics Segment | | $ | (568 | ) | | $ | (387 | ) | | $ | 2,412 |
| | $ | 2,570 |
|
| EBIT – Agricultural Productivity Segment | | 238 |
| | 123 |
| | 1,048 |
| | 477 |
|
| EBIT– Total | | (330 | ) | | (264 | ) | | 3,460 |
| | 3,047 |
|
| Interest Expense, Net | | 26 |
| | 34 |
| | 80 |
| | 114 |
|
Income Tax Provision (Benefit)(A) | | (107 | ) | | (69 | ) | | 898 |
| | 888 |
|
| Net Income (Loss) Attributable to Monsanto Company | | $ | (249 | ) | | $ | (229 | ) | | $ | 2,482 |
| | $ | 2,045 |
|
(A) Includes the income tax provision from continuing operations, the income tax benefit (provision) on noncontrolling interest, and the income tax 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 2014 | | Three Months Ended Aug. 31, | | Twelve Months Ended Aug. 31, |
| | Guidance | | 2013 | | 2012 | | 2013 | | 2012 |
| Diluted Earnings (Loss) per Share | $5.00-$5.20 | | $ | (0.47 | ) | | $ | (0.42 | ) | | $ | 4.60 |
| | $ | 3.79 |
|
| Restructuring Charges, Net | — | | — |
| | (0.02 | ) | | — |
| | (0.02 | ) |
| Income on Discontinued Operations | — | | — |
| | — |
| | (0.02 | ) | | (0.01 | ) |
| Nitro Claims Settlement | — | | — |
| | — |
| | — |
| | 0.05 |
|
| Resolution of a Legacy Tax Matter | — | | — |
| | — |
| | (0.02 | ) | | (0.11 | ) |
| Diluted Earnings (Loss) per Share from Ongoing Business | $5.00-$5.20 | | $ | (0.47 | ) | | $ | (0.44 | ) | | $ | 4.56 |
| | $ | 3.70 |
|
Reconciliation of Free Cash Flow: Free cash flow represents the total of cash flows from operating activities and investing activities, as reflected in the Statements of Consolidated Cash Flows presented in this release. With respect to the fiscal year 2014 free cash flow guidance, Monsanto does not include any estimates or projections of Net Cash Provided (Required) by Financing Activities because in order to prepare any such estimate or projection, Monsanto would need to rely on market factors and conditions that are outside of its control.
|
| | | | | | | | | | |
| | Fiscal Year 2014 | | Twelve Months Ended Aug. 31, |
| | Guidance | | 2013 | | 2012 |
| Net Cash Provided by Operating Activities | $ | 2,900-3,300 | | $ | 2,740 |
| | $ | 3,051 |
|
| Net Cash Required by Investing Activities | | (2,300)-(2,500) | | (777 | ) | | (1,034 | ) |
| Free Cash Flow | $ | 600-800 | | 1,963 |
| | 2,017 |
|
| Net Cash Required by Financing Activities | | N/A | | (1,485 | ) | | (1,165 | ) |
| Effect of Exchange Rate Changes on Cash and Cash Equivalents | | N/A | | (93 | ) | | (141 | ) |
| Net Increase in Cash and Cash Equivalents | | N/A | | 385 |
| | 711 |
|
| Cash and Cash Equivalents at Beginning of Period | | N/A | | 3,283 |
| | 2,572 |
|
| Cash and Cash Equivalents at End of Period | | N/A | | $ | 3,668 |
| | $ | 3,283 |
|
