EXHIBIT 99.1
NEWS
Delta and Pine Land Company
P.O. Box 157
Scott, Mississippi 38772
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Contact: Investors Media
Tom Jagodinski Stephanie Pillersdorf/Keil Decker
Delta and Pine Land Company Citigate Sard Verbinnen
(662) 742-4518 (212) 687-8080
For Immediate Release
DELTA AND PINE LAND COMPANY REPORTS
FOURTH QUARTER AND FISCAL YEAR END 2003 FINANCIAL RESULTS
SCOTT, MS, October 28, 2003 -- 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 the fourth fiscal quarter and year
ended August 31, 2003.
Annual Operating Results
Net income for the year ended August 31, 2003, was $0.93 per diluted share
compared to $0.84 in the prior year, before legal expenses related to the D&PL
versus Monsanto/Pharmacia litigation of $0.21 in 2003 ($0.08 in 2002), and
special charges in 2003 of $0.02 per diluted share related to two U.S. location
shut downs and workforce reductions at two foreign locations. Diluted earnings
per share after such expenses and special charges were $0.70 for the year ended
August 31, 2003, compared to $0.76 in the prior year. Net sales for the year
increased to $281.3 million from $257.8 million in the comparable prior period.
This increase was primarily the result of higher sales of stacked gene
cottonseed products and higher soybean sales in the U.S. market. Lower
international sales and poor weather in the U.S. and Australia negatively
affected our 2003 results. The August 2003 USDA acreage report stated that there
were approximately 400,000 fewer acres planted with cotton east of Texas in 2003
than in 2002. Operating expenses increased due to higher pension and payroll
related costs.
Fourth Quarter Results
Fourth quarter net loss was $0.18 per diluted share versus last year's
fourth quarter net loss of $0.17, before legal expenses related to the D&PL
versus Monsanto/Pharmacia litigation of $0.07 in 2003 ($0.04 in 2002). Diluted
loss per share after such expenses was $0.25 per share for the current year
fourth quarter compared to $0.21 per share in the prior year. Net sales in the
fiscal 2003 fourth quarter were a negative $0.8 million due to a reduction in
revenue from crop loss and replant claims made during the fourth quarter in
excess of domestic and international sales. Net sales for the fiscal 2002 fourth
quarter were $2.3 million.
Tom Jagodinski, President and CEO said, "Although weather adversely
affected not only planted acreage, but also acres ultimately harvested, we were
pleased that we had a better year in 2003 than 2002. The successful launch of
new products (although somewhat muted by spring rains), a shift by farmers to
stacked gene varieties, and increased sales of soybeans all contributed to the
2003 results. We are well positioned for 2004 with the recent increase in cotton
fiber prices to levels not seen in years and our strong product pipeline, which
will include the launch of at least two new products in 2004 plus additional
supplies of two popular varieties launched this year."
The following table reconciles net income before unusual items to net
income at August 31.
Diluted EPS: Three Months Twelve Months
------------ --------------
2002 2003 2002 2003
---- ---- ---- ----
Net income before legal
expenses related to D&PL
versus Monsanto/Pharmacia
litigation and special charges
(a non-GAAP measure) $ (0.17) $ (0.18) $ 0.84 $ 0.93
Monsanto litigation expenses (0.04) (0.07) (0.08) (0.21)
Special charges - - - (0.02)
----------- ----------- ---------- -----------
Net income (a GAAP measure) $ (0.21) $ (0.25) $ 0.76 $ 0.70
=========== =========== ========== ===========
Stock Repurchase Plan
For the year ended August 31, 2003, the Company announced it had purchased
310,100 shares of its common stock at an aggregate purchase price of $6.1
million. As of August 31, 2003, D&PL has repurchased a total of 1,303,000 shares
at an aggregate price of $23.8 million since adoption of its current $50 million
stock buyback plan. The Company will continue to purchase its shares from time
to time depending on market conditions and other factors.
Quarterly Dividend
The Company also announced its Board of Directors had declared a dividend
of $0.10 per share for the first quarter of fiscal 2004. The dividend, payable
to shareholders of record on November 28, 2003, will be paid on December 12,
2003.
2004 Earnings Outlook
The Company also announced it will provide earnings guidance for fiscal
year 2004 later this year, once its seed production acres in Texas, Arizona, and
California have been harvested and the seed supply outlook becomes clearer.
Conference Call
D&PL will hold a conference call with the investment community to review
this announcement on Tuesday, October 28, 2003, at 11:00 a.m. ET/ 10:00 a.m. CT.
The call can be accessed by dialing 888-270-8028 (International, 706-679-0236),
pass code: 3307787. 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 12:00 p.m. ET/ 11:00 a.m. CT on Tuesday,
October 28th through 3:00 p.m. ET/2:00 p.m. CT on Monday, November 3, 2003, by
dialing 800-642-1687 (International, 706-645-9291) and entering the pass code:
3307787.
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 website at 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 to 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)
August 31, August 31,
2002 2003
----------------- ------------------
NET SALES AND LICENSING FEES $ 2,301 $ (796)
COST OF SALES 1,728 (779)
----------------- ------------------
GROSS PROFIT 573 (17)
OPERATING EXPENSES:
Research and development 4,684 4,943
Selling 2,423 2,736
General and administrative 3,543 3,645
----------------- ------------------
10,650 11,324
----------------- ------------------
SPECIAL CHARGES - -
----------------- ------------------
OPERATING LOSS (10,077) (11,341)
INTEREST INCOME, net 151 358
OTHER EXPENSE (2,863) (3,298)
EQUITY IN NET LOSS OF AFFILIATE (305) (485)
MINORITY INTEREST IN LOSS /
(EARNINGS) OF SUBSIDIARIES 663 (308)
----------------- ------------------
LOSS BEFORE INCOME TAXES (12,431) (15,074)
INCOME TAX BENEFIT (4,416) (5,713)
----------------- ------------------
NET LOSS (8,015) (9,361)
DIVIDENDS ON PREFERRED STOCK (54) (107)
----------------- ------------------
NET LOSS APPLICABLE TO COMMON SHARES $ (8,069) $ (9,468)
================= ==================
BASIC AND DILUTED NET LOSS PER SHARE $ (0.21) $ (0.25)
================= ==================
NUMBER OF SHARES USED IN BASIC AND DILUTED
PER SHARE CALCULATIONS 38,267 38,103
================= ==================
DIVIDENDS PER COMMON SHARE $ 0.05 $ 0.10
================= ==================
DELTA AND PINE LAND COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE TWELVE MONTHS ENDED
(in thousands, except per share amounts)
(Unaudited)
August 31, August 31,
2002 2003
----------------- ------------------
NET SALES AND LICENSING FEES $ 257,807 $ 281,276
COST OF SALES 165,258 178,983
----------------- ------------------
GROSS PROFIT 92,549 102,293
OPERATING EXPENSES:
Research and development 18,122 18,295
Selling 10,591 10,971
General and administrative 14,006 15,424
----------------- ------------------
42,719 44,690
----------------- ------------------
SPECIAL CHARGES - (962)
----------------- ------------------
OPERATING INCOME 49,830 56,641
INTEREST INCOME, net 1,247 1,100
OTHER EXPENSE (6,468) (12,112)
EQUITY IN NET LOSS OF AFFILIATE (305) (1,977)
MINORITY INTEREST IN LOSS/
(EARNINGS) OF SUBSIDIARIES 2,729 (1,104)
----------------- ------------------
INCOME BEFORE INCOME TAXES 47,033 42,548
INCOME TAX PROVISION 16,694 14,743
----------------- ------------------
NET INCOME 30,339 27,805
DIVIDENDS ON PREFERRED STOCK (213) (288)
----------------- ------------------
NET INCOME APPLICABLE TO COMMON SHARES $ 30,126 $ 27,517
================= ==================
NET INCOME APPLICABLE TO COMMON SHARES
BEFORE SPECIAL CHARGES $ 30,126 $ 28,146
================= ==================
BASIC EARNINGS PER SHARE:
NET INCOME BEFORE SPECIAL CHARGES $ 0.79 $ 0.74
SPECIAL CHARGES, net of tax - (0.02)
----------------- ------------------
NET INCOME $ 0.79 $ 0.72
================= ==================
DILUTED EARNINGS PER SHARE:
NET INCOME BEFORE SPECIAL CHARGES $ 0.76 $ 0.72
SPECIAL CHARGES, net of tax - (0.02)
----------------- ------------------
NET INCOME $ 0.76 $ 0.70
================= ==================
NUMBER OF SHARES USED IN BASIC EARNINGS
PER SHARE CALCULATIONS 38,362 38,113
================= ==================
NUMBER OF SHARES USED IN DILUTED EARNINGS
PER SHARE CALCULATIONS 39,781 39,594
================= ==================
DIVIDENDS PER COMMON SHARE $ 0.20 $ 0.27
================= ==================
DELTA AND PINE LAND COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
(Unaudited)
August 31, August 31,
2002 2003
----------------- ------------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 109,091 $ 143,285
Receivables, net 145,876 166,952
Inventories 40,021 32,231
Prepaid expenses 2,266 2,116
Deferred income taxes 11,214 10,677
----------------- ------------------
Total current assets 308,468 355,261
PROPERTY, PLANT and EQUIPMENT, net 63,401 64,441
EXCESS OF COST OVER NET ASSETS OF
BUSINESS ACQUIRED, net 4,187 4,183
INTANGIBLES, net 4,032 5,470
INVESTMENT IN AFFILIATE 695 328
OTHER ASSETS 2,359 1,869
----------------- ------------------
Total non-current assets 74,674 76,291
----------------- ------------------
$ 383,142 $ 431,552
================= ==================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable $ 1,763 $ 40
Accounts payable 16,447 17,966
Accrued expenses 143,533 176,150
Income taxes payable 12,381 9,894
----------------- ------------------
Total current liabilities 174,124 204,050
----------------- ------------------
LONG-TERM DEBT, less current maturities 1,176 1,557
----------------- ------------------
DEFERRED INCOME TAXES 3,121 5,220
----------------- ------------------
MINORITY INTEREST IN SUBSIDIARIES 2,514 3,618
----------------- ------------------
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 $0.10 per
share; 1,066,667 shares authorized, issued and outstanding 107 107
Common stock, par value $0.10 per share; 100,000,000 shares authorized;
39,311,571 and 39,525,116 shares issued;
38,204,405 and 38,107,850 shares outstanding 3,931 3,953
Capital in excess of par value 51,563 54,850
Retained earnings 172,381 189,610
Accumulated other comprehensive loss (5,939) (5,442)
Treasury stock, at cost; 1,107,166 and 1,417,266 shares (19,836) (25,971)
----------------- ------------------
Total stockholders' equity 202,207 217,107
----------------- ------------------
$ 383,142 $ 431,552
================= ==================
DELTA AND PINE LAND COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE TWELVE MONTHS ENDED
(in thousands)
(Unaudited)
August 31, August 31,
2002 2003
------------------ -----------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 30,339 $ 27,805
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization 6,815 7,759
Noncash items associated with special charges and disposition of
assets 910 (34)
Equity in net loss of affiliate 305 1,977
Minority interest in net (loss) / income of subsidiaries (2,729) 1,104
Change in deferred income taxes (3,061) 3,315
Changes in assets and liabilities:
Receivables 31,198 (20,804)
Inventories (4,048) 7,849
Prepaid expenses (21) 144
Intangibles and other assets (115) (133)
Accounts payable 1,616 1,473
Accrued expenses (34,443) 30,114
Income taxes payable (2,956) (1,557)
------------------ -----------------
Net cash provided by operating activities 23,810 59,012
------------------ -----------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (8,384) (8,298)
Sale of investments and property 411 79
Investment in affiliate (1,000) (1,610)
Purchase of minority interest in subsidiary (4,838) -
------------------ -----------------
Net cash used in investing activities (13,811) (9,829)
------------------ -----------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments of short-term debt (3,173) (2,109)
Payments of long-term debt (73) -
Dividends paid (7,881) (10,576)
Proceeds from long-term debt 978 -
Proceeds from short-term debt 3,044 467
Payments to acquire treasury stock (9,960) (6,135)
Minority interest in dividends paid by subsidiaries (446) -
Proceeds from exercise of stock options 2,527 2,484
------------------ -----------------
Net cash used in financing activities (14,984) (15,869)
------------------ -----------------
EFFECTS OF FOREIGN CURRENCY EXCHANGE RATES 73 880
------------------ -----------------
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (4,912) 34,194
CASH AND CASH EQUIVALENTS, beginning of year 114,003 109,091
------------------ -----------------
CASH AND CASH EQUIVALENTS, end of year $ 109,091 $ 143,285
================== =================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interest, net of capitalized interest $ 900 $ 60
Income taxes $ 21,100 $ 13,400
Noncash financing activities:
Tax benefit of stock option exercises $ 700 $ 800