Exhibit 99.1
Second Quarter Report |
| McCormick & Company, Incorporated |
Consolidated Income Statement
(In thousands except per-share data)
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| Three Months Ended |
| Six Months Ended |
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| 5/31/2005 |
| 5/31/2004 |
| 5/31/2005 |
| 5/31/2004 |
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Net sales |
| $ | 628,571 |
| $ | 596,164 |
| $ | 1,232,195 |
| $ | 1,168,526 |
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Cost of goods sold |
| 387,225 |
| 364,238 |
| 762,680 |
| 714,913 |
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Gross profit |
| 241,346 |
| 231,926 |
| 469,515 |
| 453,613 |
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Gross profit margin |
| 38.4 | % | 38.9 | % | 38.1 | % | 38.8 | % | ||||
Selling, general & administrative expense |
| 170,864 |
| 168,652 |
| 339,775 |
| 328,885 |
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Special charges / (credits) |
| (670 | ) | (6,448 | ) | 630 |
| (6,379 | ) | ||||
Operating income |
| 71,152 |
| 69,722 |
| 129,110 |
| 131,107 |
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Interest expense |
| 11,942 |
| 9,695 |
| 23,026 |
| 19,267 |
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Other (income) / expense, net |
| 97 |
| (536 | ) | 43 |
| (684 | ) | ||||
Income from consolidated operations before income taxes |
| 59,113 |
| 60,563 |
| 106,041 |
| 112,524 |
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Income taxes |
| 18,916 |
| 18,713 |
| 33,933 |
| 34,769 |
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Net income from consolidated operations |
| 40,197 |
| 41,850 |
| 72,108 |
| 77,755 |
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Income from unconsolidated operations |
| 3,802 |
| 1,825 |
| 9,258 |
| 5,085 |
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Minority interest |
| (1,205 | ) | (822 | ) | (2,537 | ) | (1,881 | ) | ||||
Net income |
| $ | 42,794 |
| $ | 42,853 |
| $ | 78,829 |
| $ | 80,959 |
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Earnings per share - basic |
| $ | 0.32 |
| $ | 0.31 |
| $ | 0.58 |
| $ | 0.59 |
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Earnings per share - diluted |
| $ | 0.31 |
| $ | 0.30 |
| $ | 0.56 |
| $ | 0.57 |
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Average shares outstanding - basic |
| 134,742 |
| 137,679 |
| 135,193 |
| 137,519 |
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Average shares outstanding - diluted |
| 138,739 |
| 142,494 |
| 139,586 |
| 142,133 |
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Second Quarter Report |
| McCormick & Company, Incorporated |
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Consolidated Balance Sheet |
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(In thousands) |
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| 5/31/2005 |
| 5/31/2004 |
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Assets |
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Current assets |
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Cash and cash equivalents |
| $ | 20,096 |
| $ | 16,125 |
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Receivables, net |
| 328,117 |
| 309,700 |
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Inventories |
| 345,281 |
| 373,974 |
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Prepaid expenses and other current assets |
| 45,560 |
| 37,416 |
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Total current assets |
| 739,054 |
| 737,215 |
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Property, plant and equipment, net |
| 471,495 |
| 456,556 |
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Goodwill and intangible assets, net |
| 789,719 |
| 727,505 |
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Prepaid allowances |
| 50,078 |
| 79,711 |
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Investments and other assets |
| 136,317 |
| 129,287 |
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Total assets |
| $ | 2,186,663 |
| $ | 2,130,274 |
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Liabilities and shareholders’ equity |
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Current liabilities |
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Short-term borrowings and current portion of long-term debt |
| $ | 421,455 |
| $ | 142,810 |
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Trade accounts payable |
| 167,816 |
| 166,188 |
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Other accrued liabilities |
| 293,329 |
| 295,475 |
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Total current liabilities |
| 882,600 |
| 604,473 |
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Long-term debt |
| 271,202 |
| 495,884 |
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Other long-term liabilities |
| 197,745 |
| 204,900 |
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Total liabilities |
| 1,351,547 |
| 1,305,257 |
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Minority interest |
| 29,128 |
| 23,780 |
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Shareholders’ equity |
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Common stock |
| 372,127 |
| 312,192 |
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Retained earnings |
| 375,721 |
| 448,463 |
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Accumulated other comprehensive income |
| 58,140 |
| 40,582 |
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Total shareholders’ equity |
| 805,988 |
| 801,237 |
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Total liabilities and shareholders’ equity |
| $ | 2,186,663 |
| $ | 2,130,274 |
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Second Quarter Report |
| McCormick & Company, Incorporated |
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Consolidated Statement of Cash Flows (Unaudited) |
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(In thousands) |
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| Six Months Ended |
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| 5/31/2005 |
| 5/31/2004 |
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Cash flows from operating activities |
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Net income |
| $ | 78,829 |
| $ | 80,959 |
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Adjustments to reconcile net income to net cash flow from operating activities: |
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Depreciation and amortization |
| 35,493 |
| 34,702 |
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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 |
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Net cash flow from operating activities |
| 66,580 |
| 79,533 |
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Cash flows from investing activities |
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Capital expenditures |
| (30,316 | ) | (27,654 | ) | ||
Proceeds from sale of property, plant and equipment |
| 488 |
| 1,271 |
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Net cash flow from investing activities |
| (29,828 | ) | (26,383 | ) | ||
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Cash flows from financing activities |
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Short-term borrowings, net |
| 54,686 |
| (28,686 | ) | ||
Long-term debt borrowings |
| 5 |
| 49,788 |
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Long-term debt repayments |
| (352 | ) | (260 | ) | ||
Proceeds from exercised stock options |
| 28,983 |
| 31,273 |
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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 | ) | ||
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Effect of exchange rate changes on cash and cash equivalents |
| (6,244 | ) | 5,020 |
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Decrease in cash and cash equivalents |
| (50,239 | ) | (9,016 | ) | ||
Cash and cash equivalents at beginning of period |
| 70,335 |
| 25,141 |
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Cash and cash equivalents at end of period |
| $ | 20,096 |
| $ | 16,125 |
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