1
EXHIBIT 99a
THE DEXTER CORPORATION
CONDENSED STATEMENT OF INCOME
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In thousands of dollars Three Months Ended June 30
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(except per share amounts) 1996 1995 Change
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REVENUES
Net sales $ 285,701 $ 282,991 + 1%
Other income 3,022 2,899 + 4%
--------------------- -------------------
288,723 285,890 + 1%
EXPENSES
Cost of sales 187,756 193,100 - 3%
Marketing and administrative 56,157 51,719 + 9%
Research and development 13,175 12,825 + 3%
Interest 5,376 5,196 + 3%
Gain on divestiture of product lines (2,719)
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INCOME BEFORE TAXES 28,978 23,050 +26%
Income taxes 10,287 8,298 +24%
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INCOME BEFORE MINORITY INTERESTS 18,691 14,752 +27%
Minority interests 4,298 2,794 +54%
--------------------- -------------------
NET INCOME $ 14,393 $ 11,958 +20%
===================== ===================
NET INCOME PER SHARE $0.61 $0.49 +24%
DIVIDENDS DECLARED PER SHARE $0.22 $0.22
AVERAGE SHARES OUTSTANDING (000) 23,657 24,376 - 3%
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In thousands of dollars Six Months Ended June 30
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(except per share amounts) 1996 1995 Change
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REVENUES
Net sales $ 562,928 $ 549,784 + 2%
Other income 5,197 5,938 - 12%
------------------- -----------------
568,125 555,722 + 2%
EXPENSES
Cost of sales 370,281 374,229 - 1%
Marketing and administrative 112,394 102,137 + 10%
Research and development 26,018 25,355 + 3%
Interest 10,742 10,359 + 4%
Gain on divestiture of product lines (2,719)
------------------- -----------------
INCOME BEFORE TAXES 51,409 43,642 +18%
Income taxes 18,250 15,711 +16%
------------------- -----------------
INCOME BEFORE MINORITY INTERESTS 33,159 27,931 +19%
Minority interests 7,618 5,511 +38%
------------------- -----------------
NET INCOME $ 25,541 $ 22,420 +14%
=================== =================
NET INCOME PER SHARE $1.07 $0.92 +16%
DIVIDENDS DECLARED PER SHARE $0.44 $0.44
AVERAGE SHARES OUTSTANDING (000) 23,828 24,364 - 2%
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See accompanying notes to the consolidated financial statements.
2
EXHIBIT 99b
THE DEXTER CORPORATION
CONDENSED STATEMENT OF FINANCIAL POSITION
In thousands of dollars June 30 December 31 June 30
(except per share amounts) 1996 1995 1995
---------- ----------- -----------
Assets
Cash and short-term securities $ 75,058 $ 65,542 $ 49,491
Accounts receivable, net 202,586 201,389 202,565
Inventories
Materials and supplies 58,761 60,099 64,165
In process and finished 111,640 121,644 115,935
LIFO reserve (22,502) (24,709) (23,632)
---------- --------- -----------
147,899 157,034 156,468
Prepaid and deferred expenses 33,035 32,756 30,134
---------- --------- -----------
Total current assets 458,578 456,721 438,658
Property, plant and equipment, at cost, net 311,878 325,203 328,935
Excess of cost over net assets of
businesses acquired 73,433 74,102 75,652
Other assets 82,416 78,135 84,982
---------- --------- -----------
$ 926,305 $ 934,161 $ 928,227
========== ========= ===========
Liabilities & Shareholders' Equity
Short-term debt $ 3,979 $ 13,598 $ 4,788
Current installments of long-term debt 17,903 13,648 9,307
Accounts payable 83,376 92,447 91,989
Accrued liabilities and taxes 99,371 81,659 88,237
Current environmental reserves 1,268 1,395 1,494
Dividends payable 5,175 5,351 5,363
---------- --------- -----------
Total current liabilities 211,072 208,098 201,178
Long-term debt 208,660 215,839 222,273
Deferred items 47,876 48,492 48,642
Long-term environmental reserves 15,361 15,745 17,932
Minority interests 83,411 76,372 69,268
Shareholders' equity
Common stock and paid-in capital 34,169 35,116 34,150
Retained earnings 362,654 347,544 340,101
Currency translation effects (5,206) 1,614 4,585
Treasury stock (31,692) (14,659) (9,902)
---------- --------- -----------
Total shareholders' equity 359,925 369,615 368,934
---------- --------- -----------
$ 926,305 $ 934,161 $ 928,227
========== ========= ===========
Equity per Share $15.30 $15.26 $15.13
- ------------------------------------------------------------------------------------
See accompanying notes to the consolidated financial statements.
3
EXHIBIT 99c
THE DEXTER CORPORATION
CONDENSED STATEMENT OF CASH FLOWS
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Six Months Ended June 30
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In thousands of dollars 1996 1995
- -------------------------------------------------------------------------------------
OPERATIONS
Net income $ 25,541 $ 22,420
Noncash items
Depreciation and amortization 22,903 22,568
Gain on divestiture of product lines (2,719)
Income taxes not due 10,250 4,721
Minority interests 7,618 5,511
LIFO inventory (credit) charge (2,207) 804
Equity in net income of affiliates (2,076) (1,286)
Other 3,367 (135)
Operating working capital increase (12,182) (39,005)
-------- --------
50,495 15,598
-------- --------
INVESTMENTS
Property, plant and equipment (22,942) (14,473)
Acquisitions (12,332)
Divestitures 34,913
Joint ventures 3,246 (2,156)
Notes receivable 3,000
Proceeds from exercise of LTI stock options 1,250 862
Other (3,656) 1,714
-------- --------
479 (11,053)
-------- --------
FINANCING
Long-term debt (1,344) (650)
Short-term debt, net (9,570) 982
Dividends paid (10,607) (10,714)
LTI dividends paid to minority interest shareholders (709) (683)
Purchase of treasury stock (21,434)
Other 2,645 (231)
-------- --------
(41,019) (11,296)
-------- --------
INCREASE (DECREASE) IN CASH AND SHORT-TERM SECURITIES $ 9,955 $ (6,751)
======== ========
RECONCILIATION OF INCREASE (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 75,058 49,491
-------- --------
Increase (Decrease) in cash and short-term securities
per Statement of Financial Position 9,516 (5,521)
Currency translation effects 439 (1,230)
-------- --------
$ 9,955 $ (6,751)
======== ========
INTEREST PAID $ 10,741 $ 10,357
======== ========
TAXES PAID $ 8,000 $ 10,990
======== ========
- -------------------------------------------------------------------------------------
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 June 30
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In thousands of dollars 1996 1995 Change
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AEROSPACE $ 12,506 $ 11,403 +10%
ELECTRONICS 48,022 48,148
FOOD PACKAGING (1) 70,124 74,958 - 6%
MEDICAL (2) 102,535 94,318 + 9%
OTHER (3) (4) 52,514 54,164 - 3%
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CONSOLIDATED $ 285,701 $ 282,991 + 1%
=================== ==================
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
Six Months Ended June 30
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In thousands of dollars 1996 1995 Change
- --------------------------------------------------------------------------------------------------------------
AEROSPACE $ 24,533 $ 23,307 + 5%
ELECTRONICS 97,478 93,179 + 5%
FOOD PACKAGING (1) 137,505 144,824 - 5%
MEDICAL (2) 201,285 181,588 +11%
OTHER (3) (4) 102,127 106,886 - 4%
-------------------- ------------------
CONSOLIDATED $ 562,928 $ 549,784 + 2%
==================== ==================
- --------------------------------------------------------------------------------------------------------------
(1) The effect of businesses acquired increased net sales to the Food
Packaging market by $0.7 million, or 1%, for the quarter.
(2) The effect of businesses acquired increased net sales to the
Medical market by $3.8 million, or 4%, for the quarter, and $7.5
million, or 4%, year-to-date.
(3) The effect of businesses divested decreased net sales in the
"Other" category by $3.5 million, or 7%, for the quarter, and $6.5
million, or 6%, year-to-date.
(4) 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 JUNE 30, DECEMBER 31, JUNE 30,
(IN THOUSANDS OF DOLLARS) 1996 1995 1995
- ------------------------------ --------- ------------ --------
Common stock $ 24,984 $ 24,984 $ 24,984
Paid-in capital 13,761 12,316 12,251
Unrealized losses on
investments (490) (128) (549)
Unearned compensation on
restricted stock (3,613) (1,583) (2,536)
Pension liability adjustment (473) (473)
-------- -------- --------
$ 34,169 $ 35,116 $ 34,150
======== ======== ========
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 June 30, 1996 and 1995, and the related condensed
statement of income for the three and six month periods ended June 30, 1996 and
1995, and the condensed statement of cash flows for the six 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 auditing 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
July 16, 1996