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 Jonathan Gasthalter/Amy Cohen
Delta and Pine Land Company Citigate Sard Verbinnen
662-742-4518 212-687-8080
DELTA AND PINE LAND COMPANY ANNOUNCES SECOND QUARTER
AND SIX-MONTH OPERATING RESULTS
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SCOTT, MS, April 1, 2005 -- Delta and Pine Land Company (NYSE:DLP)
("D&PL"), a leading commercial breeder, producer and marketer of cotton planting
seed, today announced results for its second quarter and six months ended
February 28, 2005.
Second Quarter and Six-Month Results
After charges of $0.02 per diluted share related to Pharmacia/Monsanto
litigation expenses, net earnings for the 2005 second quarter were $0.48 per
diluted share, an increase from last year's comparable second quarter net
earnings of $0.24 per diluted share. In the prior year second quarter, net
earnings were reduced by $0.06 per diluted share for Pharmacia/Monsanto
litigation expenses.
Revenues were $119.9 million in the current year second quarter,
compared to $89.2 million recorded in the year-ago quarter. The revenue increase
was primarily due to an anticipated shift of domestic cottonseed sales into the
second quarter from the third quarter. Price increases on seed and traits in the
domestic segment also contributed to increased revenue. Higher export sales to
Greece and Mexico during the current-year quarter were partially offset by lower
sales at our Chinese joint ventures in the international segment. Operating
expenses increased, primarily due to higher research and development and
insurance costs.
After charges of $0.05 per diluted share related to Pharmacia/Monsanto
litigation expenses, net income for the 2005 six-month period was $0.37 per
diluted share, compared to net income of $0.06 per diluted share for the same
period last year. In the 2004 six-month period, net income included a reduction
of $0.10 per diluted share for Pharmacia/Monsanto litigation expenses. Revenues
for the 2005 six-month period were $137.3 million, compared to $103.0 million in
the prior year period. The revenue increase occurred primarily in the domestic
segment. International revenues also increased, resulting from higher sales 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, due to
stronger competition from local varieties. Operating expenses increased,
primarily due to higher research and development and advertising expenses.
Tom Jagodinski, President and Chief Executive Officer, said, "We are
pleased with the strong early season sales of our products that were recently
launched in the U.S. In addition, we have ample supplies of our most popular
varieties available for the U.S. market. Our international profitability also
has improved, due in large part to increased acreage and market share in certain
key markets, such as Australia, Brazil and Mexico."
Stock Repurchase Plan
As of March 31, 2005, the Company has purchased 672,600 shares of its
common stock at an aggregate purchase price of $17.8 million in the current
fiscal year. The Company will continue to purchase its shares from time to time
depending on market conditions and other factors.
U.S. Cotton Acreage Estimates
On March 31, 2005, the USDA issued its Prospective Plantings Survey for
this crop season, which estimated U.S. cotton plantings of 13.8 million acres.
The USDA estimates reflect an increase of approximately 1% over 2004 cotton
plantings of 13.7 million acres. The Company's 2005 earnings guidance was
developed using U.S. cotton plantings of 13.7 million acres, or unchanged from
the prior year. It is too early in the season to accurately forecast cotton
plantings at present and the Company is reiterating its previously issued
earnings guidance. As more information becomes available, the Company will
consider the need to update the previously issued earnings estimate.
Quarterly Dividend
The Company also announced its Board of Directors has declared a
dividend of $0.12 per share for the third quarter. The dividend will be paid on
June 14, 2005 to shareholders of record on May 31, 2005.
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 5076009. 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 2:00 p.m. ET/ 1:00 p.m. CT on Friday, April 1, 2005 through midnight on
Friday, April 8, 2005 by dialing 800-642-1687 (International, 706-645-9291) and
entering the access code 5076009.
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)
February 28, February 29,
2005 2004
----------------- ------------------
NET SALES AND LICENSING FEES $ 119,859 $ 89,172
COST OF SALES 75,175 57,008
----------------- ------------------
GROSS PROFIT 44,684 32,164
----------------- ------------------
OPERATING EXPENSES:
Research and development 5,646 4,997
Selling 3,486 3,209
General and administrative 4,905 4,533
----------------- ------------------
14,037 12,739
----------------- ------------------
OPERATING INCOME 30,647 19,425
INTEREST INCOME, NET 641 326
OTHER EXPENSE (973) (3,511)
EQUITY IN NET LOSS OF AFFILIATE (648) (1,319)
MINORITY INTEREST IN EARNINGS OF
SUBSIDIARIES (9) (416)
----------------- ------------------
INCOME BEFORE INCOME TAXES 29,658 14,505
INCOME TAX EXPENSE 10,498 5,062
----------------- ------------------
NET INCOME 19,160 9,443
DIVIDENDS ON PREFERRED STOCK (128) (128)
----------------- ------------------
NET INCOME APPLICABLE TO COMMON SHARES $ 19,032 $ 9,315
================= ==================
BASIC NET EARNINGS PER SHARE $ 0.49 $ 0.24
================= ==================
NUMBER OF SHARES USED IN BASIC EARNINGS
PER SHARE CALCULATIONS 38,763 38,138
================= ==================
DILUTED NET EARNINGS PER SHARE $ 0.48 $ 0.24
================= ==================
NUMBER OF SHARES USED IN DILUTED EARNINGS
PER SHARE CALCULATIONS 40,276 39,768
================= ==================
DIVIDENDS PER COMMON SHARE $ 0.12 $ 0.12
================= ==================
DELTA AND PINE LAND COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED
(in thousands, except per share amounts)
(Unaudited)
February 28, February 29,
2005 2004
----------------- ------------------
NET SALES AND LICENSING FEES $ 137,313 $ 103,017
COST OF SALES 83,596 65,044
----------------- ------------------
GROSS PROFIT 53,717 37,973
----------------- ------------------
OPERATING EXPENSES:
Research and development 10,076 9,133
Selling 6,552 5,951
General and administrative 9,444 9,274
----------------- ------------------
26,072 24,358
----------------- ------------------
OPERATING INCOME 27,645 13,615
INTEREST INCOME, NET 1,099 699
OTHER EXPENSE (2,480) (6,323)
EQUITY IN NET LOSS OF AFFILIATE (1,386) (1,734)
MINORITY INTEREST IN EARNINGS OF
SUBSIDIARIES (2,345) (2,405)
----------------- ------------------
INCOME BEFORE INCOME TAXES 22,533 3,852
INCOME TAX EXPENSE 7,690 1,387
----------------- ------------------
NET INCOME 14,843 2,465
DIVIDENDS ON PREFERRED STOCK (256) (235)
----------------- ------------------
NET INCOME APPLICABLE TO COMMON SHARES $ 14,587 $ 2,230
================= ==================
BASIC NET EARNINGS PER SHARE $ 0.38 $ 0.06
================= ==================
NUMBER OF SHARES USED IN BASIC EARNINGS
PER SHARE CALCULATIONS 38,653 38,118
================= ==================
DILUTED NET EARNINGS PER SHARE $ 0.37 $ 0.06
================= ==================
NUMBER OF SHARES USED IN DILUTED EARNINGS
PER SHARE CALCULATIONS 40,124 39,711
================= ==================
DIVIDENDS PER COMMON SHARE $ 0.24 $ 0.22
================= ==================
DELTA AND PINE LAND COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
(Unaudited)
February 28, August 31, February 29,
2005 2004 2004
------------------ ----------------- -----------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 110,632 $ 149,587 $ 91,617
Receivables, net 139,330 184,759 99,773
Inventories 56,861 30,151 58,081
Prepaid expenses 2,038 1,923 1,687
Deferred income taxes 6,725 9,055 8,230
------------------ ----------------- -----------------
Total current assets 315,586 375,475 259,388
PROPERTY, PLANT AND EQUIPMENT, NET 62,005 61,988 62,914
EXCESS OF COST OVER NET ASSETS OF
BUSINESSES ACQUIRED 4,183 4,183 4,183
INTANGIBLES, NET 5,757 5,471 5,382
OTHER ASSETS 1,545 1,594 1,735
DEFFERED INCOME TAXES 9,685 8,312 -
------------------ ----------------- -----------------
TOTAL ASSETS $ 398,761 $ 457,023 $ 333,602
================== ================= =================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES :
Notes payable $ 11,405 $ 5,639 $ 248
Accounts payable 19,466 23,784 12,878
Accrued expenses 108,508 187,890 90,674
Income taxes payable 10,712 8,912 6,078
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Total current liabilities 150,091 226,225 109,878
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LONG-TERM DEBT 11,109 16,486 1,581
------------------ ----------------- -----------------
DEFERRED INCOME TAXES - - 4,304
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MINORITY INTEREST IN SUBSIDIARIES 6,572 4,586 5,600
------------------ ----------------- -----------------
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;
40,788,040, 40,162,820 and 39,811,148 shares issued;
39,120,574, 38,495,354 and 38,250,882 shares outstanding 4,079 4,016 3,982
Capital in excess of par value 78,340 64,250 59,114
Retained earnings 182,071 176,808 183,440
Accumulated other comprehensive loss (1,889) (3,736) (4,981)
Treasury stock, at cost; 1,667,466, 1,667,466 and 1,560,266 shares (31,719) (31,719) (29,423)
------------------ ----------------- -----------------
TOTAL STOCKHOLDERS' EQUITY 230,989 209,726 212,239
------------------ ----------------- -----------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 398,761 $ 457,023 $ 333,602
================== ================= =================
DELTA AND PINE LAND COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED
(in thousands)
(Unaudited)
February 28, February 29,
2005 2004
----------------- -----------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 14,843 $ 2,465
Adjustments to reconcile net income to net cash used
in operating activities:
Depreciation and amortization 4,265 4,042
(Gain) loss on sale of assets (323) 49
Equity in net loss of affiliate 1,386 1,734
Foreign exchange gain (219) (131)
Accretion of debt discount 389 -
Minority interest in earnings of subsidiaries 2,345 2,405
Change in deferred taxes 974 1,510
Changes in assets and liabilities:
Receivables 45,851 67,300
Inventories (26,260) (25,971)
Prepaid expenses (118) 417
Intangibles and other assets (370) 120
Accounts payable (4,591) (5,240)
Accrued expenses (79,431) (85,457)
Income taxes 3,987 (2,266)
----------------- -----------------
Net cash used in operating activities (37,272) (39,023)
----------------- -----------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (3,561) (2,244)
Sale of investments and property 388 47
Investment in affiliate (1,550) (1,140)
----------------- -----------------
Net cash used in investing activities (4,723) (3,337)
----------------- -----------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments of short-term debt - (40)
Dividends paid (9,580) (8,635)
Proceeds from short-term debt - 245
Minority interest in dividends paid by subsidiary (359) (424)
Payments to acquire treasury stock - (3,452)
Proceeds from exercise of stock options 11,855 2,670
----------------- -----------------
Net cash provided by (used in) financing activities 1,916 (9,636)
----------------- -----------------
EFFECTS OF FOREIGN CURRENCY EXCHANGE RATES 1,124 328
NET DECREASE IN CASH AND CASH EQUIVALENTS (38,955) (51,668)
CASH AND CASH EQUIVALENTS, August 31 149,587 143,285
----------------- -----------------
CASH AND CASH EQUIVALENTS, February 28 and February 29 $ 110,632 $ 91,617
================= =================
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the six months for:
Interest, net of capitalized interest $ - $ 10
Income taxes paid $ 1,645 $ 1,810
Noncash financing activities:
Tax benefit of stock option exercises $ 2,298 $ 1,623