1
EXHIBIT 99a
THE DEXTER CORPORATION
CONDENSED STATEMENT OF INCOME
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In thousands of dollars Three Months Ended March 31
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(except per share amounts) 1996 1995 Change
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REVENUES
Net sales $ 277,227 $ 266,793 + 4%
Other income 2,175 3,039 - 28%
------------- ---------------
279,402 269,832 + 4%
EXPENSES
Cost of sales 182,525 181,129 + 1%
Marketing and administrative 56,237 50,418 + 12%
Research and development 12,843 12,530 + 2%
Interest 5,366 5,163 + 4%
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INCOME BEFORE TAXES 22,431 20,592 + 9%
Income taxes 7,963 7,413 + 7%
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INCOME BEFORE MINORITY INTERESTS 14,468 13,179 + 10%
Minority interests 3,320 2,717 + 22%
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NET INCOME $ 11,148 $ 10,462 + 7%
============= ===============
NET INCOME PER SHARE $0.46 $0.43 + 7%
DIVIDENDS DECLARED PER SHARE $0.22 $0.22
AVERAGE SHARES OUTSTANDING (000) 23,999 24,352 - 1%
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See accompanying notes to the consolidated financial statements.
2
EXHIBIT 99b
THE DEXTER CORPORATION
CONDENSED STATEMENT OF FINANCIAL POSITION
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In thousands of dollars March 31 December 31 March 31
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(except per share amounts) 1996 1995 1995
- -----------------------------------------------------------------------------------------------
ASSETS
Cash and short-term securities $ 57,222 $ 65,542 $ 46,320
Accounts receivable, net 209,415 201,389 189,276
Inventories
Materials and supplies 58,057 60,099 60,971
In process and finished 128,152 121,644 117,505
LIFO reserve (23,886) (24,709) (23,114)
--------- --------- ---------
162,323 157,034 155,362
Prepaid and deferred expenses 35,045 32,756 28,730
--------- --------- ---------
Total current assets 464,005 456,721 419,688
Property, plant and equipment, at cost, net 324,478 325,203 331,753
Excess of cost over net assets of
businesses acquired 79,744 74,102 75,822
Other assets 76,753 78,135 85,406
--------- --------- ---------
$ 944,980 $ 934,161 $ 912,669
========= ========= =========
LIABILITIES & SHAREHOLDERS' EQUITY
Short-term debt $ 25,119 $ 13,598 $ 6,678
Current installments of long-term debt 13,053 13,648 4,266
Accounts payable 90,792 92,447 89,940
Accrued liabilities and taxes 89,850 81,659 87,742
Current environmental reserves 1,364 1,395 2,354
Dividends payable 5,256 5,351 5,358
--------- --------- ---------
Total current liabilities 225,434 208,098 196,338
Long-term debt 214,874 215,839 226,925
Deferred items 48,184 48,492 48,013
Long-term environmental reserves 15,480 15,745 17,484
Minority interests 79,204 76,372 65,689
Shareholders' equity
Common stock and paid-in capital 35,172 35,116 35,239
Retained earnings 353,436 347,544 333,505
Currency translation effects (2,222) 1,614 1,092
Treasury stock (24,582) (14,659) (11,616)
--------- --------- ---------
Total shareholders' equity 361,804 369,615 358,220
--------- --------- ---------
$ 944,980 $ 934,161 $ 912,669
========= ========= =========
EQUITY PER SHARE $ 15.19 $ 15.26 $ 14.70
- -----------------------------------------------------------------------------------------------
See accompanying notes to the consolidated financial statements.
3
EXHIBIT 99c
THE DEXTER CORPORATION
CONDENSED STATEMENT OF CASH FLOWS
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Three Months Ended March 31
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1996 1995
In thousands of dollars
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OPERATIONS
Net income $ 11,148 $ 10,462
Noncash items
Depreciation and amortization 11,438 11,065
Income taxes not due 7,620 4,288
Minority interests 3,320 2,717
LIFO inventory (credit) charge (823) 286
Equity in net income of affiliates (638) (764)
Other 1,344 147
Operating working capital increase (18,849) (27,454)
-------- --------
14,560 747
-------- --------
INVESTMENTS
Property, plant and equipment (10,116) (8,372)
Acquisitions (7,203)
Joint ventures 227 (1,597)
Notes receivable 3,000
Proceeds from exercise of LTI stock options 679 382
Other (503) (48)
-------- --------
(16,916) (6,635)
-------- --------
FINANCING
Long-term debt (914) (450)
Short-term debt, net 11,546 2,872
Dividends paid (5,351) (5,357)
LTI dividends paid to minority interest
shareholders (351) (341)
Purchase of treasury stock (10,279)
Other (256) (371)
-------- --------
(5,605) (3,647)
-------- --------
DECREASE IN CASH AND SHORT-TERM SECURITIES $ (7,961) $ (9,535)
======== ========
RECONCILIATION OF DECREASE IN CASH AND
SHORT-TERM SECURITIES
Cash and short-term securities at beginning
of period $ 65,542 $ 55,012
Cash and short-term securities at end
of period 57,222 46,320
-------- --------
Decrease in cash and short-term securities
per Statement of Financial Position (8,320) (8,692)
Currency translation effects 359 (843)
-------- --------
$ (7,961) $ (9,535)
======== ========
INTEREST PAID $ 4,216 $ 3,980
======== ========
TAXES PAID $ 343 $ 3,125
======== ========
- -------------------------------------------------------------------------------
See accompanying notes to the consolidated financial statements.
4
EXHIBIT 99d
THE DEXTER CORPORATION
NET SALES BY MARKET
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Three Months Ended March 31
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In thousands of dollars 1996 1995 Change
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AEROSPACE $ 12,348 $ 11,904 + 4%
ELECTRONICS 49,456 45,031 + 10%
FOOD PACKAGING 67,381 69,866 - 4%
MEDICAL (1) 98,750 87,270 + 13%
OTHER (2) (3) 49,292 52,722 - 7%
------------ ------------
CONSOLIDATED $ 277,227 $ 266,793 + 4%
============ ============
- -------------------------------------------------------------------------------------------------------------------------
(1) The effect of businesses acquired increased net sales to the Medical
market by $3.7 million, or 4%.
(2) The effect of businesses divested decreased net sales in the "Other"
category by $3 million, or 6%.
(3) Sales previously classified in the Automotive market are now included in
the "Other" category.
5
Exhibit 99e
The Dexter Corporation
Notes to Consolidated Financial Statements
Note 1 -- In the opinion of company's management, the unaudited financial
statements reflect adjustments of a normal recurring nature
which are necessary to present a fair statement of the results
for the interim periods. The notes to the consolidated financial
statements including management's discussion in Part 1, Item 2
of this Form 10-Q are incorporated as part of these consolidated
financial statements. The year-end condensed balance sheet data
was derived from audited financial statements.
Note 2 -- Net income per share figures in the consolidated Condensed
Statement of Income are based on the weighted average number of
shares outstanding as indicated for each period. No effect has
been given to stock options or restricted stock awards
outstanding as no dilutive effect would result from the
inclusion of these items.
Note 3 -- The following are included as components of Common Stock and
Paid-In Capital.
COMMON STOCK & PAID-IN CAPITAL MARCH 31, DECEMBER 31, MARCH 31,
(IN THOUSANDS OF DOLLARS) 1996 1995 1995
- ------------------------------ --------- ------------ ---------
Common stock $24,984 $24,984 $24,984
Paid-in capital 12,510 12,316 12,061
Unrealized losses on investments (300) (128) (910)
Unearned compensation on
restricted stock (1,549) (1,583) (896)
Pension liability adjustment (473) (473)
-------- ---------- ---------
$35,172 $35,116 $35,239
======== ========= =========
6
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Directors of
The Dexter Corporation
We have reviewed the accompanying condensed statement of financial position of
The Dexter Corporation as of March 31, 1996 and 1995, and the related condensed
statements of income and cash flows for the three month periods then ended.
These financial statements are the responsibility of the company's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted
in accordance with generally accepted audited standards, the objective of which
is the expression of an opinion regarding the financial statements taken as a
whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the accompanying financial statements for them to be in conformity
with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated statement of financial position of The Dexter
Corporation as of December 31, 1995, and the related consolidated statements of
income, cash flows, and changes in shareholders' equity for the year then ended
(not presented herein); and in our report dated February 1, 1996, we expressed
an unqualified opinion on those consolidated financial statements. In our
opinion, the information set forth in the accompanying condensed statement of
financial position as of December 31, 1995, is fairly stated, in all material
respects, in relation to the consolidated statement of financial position from
which it has been derived.
/s/ Coopers & Lybrand L.L.P.
COOPERS & LYBRAND L.L.P.
Springfield, Massachusetts
April 11, 1996