Church & Dwight Co., Inc. Reports That, Excluding Unusual Gains, First Quarter 2000 Earnings Rose 24% to $.26 Per Share On a 9.7% Sales Increase.Business Editors PRINCETON Princeton, borough (1990 pop. 12,016) and surrounding township (1990 pop. 13,198), Mercer co., W central N.J.; settled late 1600s, borough inc. 1813, township est. 1838. A leading education center, it is the seat of Princeton Univ. , N.J.--(BUSINESS WIRE)--April 28, 2000 Including Unusual Gains, Net Income was $11.7 Million Versus $12.4 Million Prior Year Church & Dwight Dwight , Timothy 1752-1817. American clergyman, author, and educator who was a leading supporter of Federalism and served as president of Yale University (1795-1817). His grandson Timothy (1828-1916) was also president of Yale (1886-1899). Co., Inc. (NYSE NYSE See: New York Stock Exchange :CHD CHD coronary heart disease. ChD abbr. Latin Chirurgiae Doctor (Doctor of Surgery) CHD, n.pr See disease, coronary heart. CHD canine hip dysplasia. ) today reported that for the quarter ended March 31, 2000, net income was $11.7 million, equivalent to diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. earnings of $.29 per share, compared to $12.4 million or $.30 per share in the comparable period last year. This year's results include an unusual pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern gain of $2.1 million from a reduction in deferred compensation liability related to the sharp decline in the Company's share price during the quarter; last year's results included a $6.5 million gain from the sale of mineral reserves partially offset by plant impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges. Excluding the unusual gains in both years, net income rose 24% to $10.4 million or $.26 per share compared to $8.4 million or $.21 per share last year. Sales increased 9.7% to $191.6 million from $174.7 million in the comparable period last year. This year's number includes two acquisitions completed in 1999: the Brazilian specialty chemicals A Specialty chemical is a chemical produced for a specialized use. They are produced in lower volume than bulk chemicals, of which petrochemicals, made from oil feedstocks, are the most common. However, both are produced in a chemical plant. company QGN, in which the Company acquired a controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail in May, and the two bathroom cleaners, SCRUB The term has various meanings depending on context, but typically deals with erasing or cleaning up data. See data scrubbing, memory scrubbing and audio scrubbing. FREE(R) and CLEAN SHOWER(R) acquired in December. Excluding these acquisitions, the sales of existing brands and product lines rose approximately 2% for the quarter. In the same period last year, sales increased 15% due largely to heavy promotion spending in support of new consumer products and exceptional growth for the animal nutrition business. Commenting on the results, Mr. Robert A. Davies, III, President and Chief Executive Officer, said, "We are pleased at the solid start to the year, and sales and margin growth met our expectations." On the consumer products side of the business, deodorizer deodorizer or deodorant, substance used to absorb or eliminate offensive odors. Disinfectants such as hydrogen peroxide, chlorine, and chlorine compounds eliminate odors caused by microorganisms. sales increased due to strong cat litter Cat litter (often called kitty litter) is one of any of a number of materials used in litter boxes to absorb moisture from cat feces and urine, which reduces foul odors such as ammonia and renders them more tolerable within the home. growth; laundry Laundry can be:
Before industrialization and cleaning products rose due to the newly acquired bathroom cleaner brands; and oral and personal care products were slightly higher, led by strong toothpaste toothpaste, n See dentifrice. growth. On the specialty products side, specialty chemicals increased due to the acquisition of the Brazilian business, and animal nutrition and specialty cleaner sales were flat. During the quarter, the Company broadened distribution of two major new consumer products introduced in late 1999: First, ARM & HAMMER PM(TM), a major extension to the ARM & HAMMER DENTAL CARE(R) Toothpaste line, and the first toothpaste specifically formulated for·mu·late tr.v. for·mu·lat·ed, for·mu·lat·ing, for·mu·lates 1. a. To state as or reduce to a formula. b. To express in systematic terms or concepts. c. for nighttime oral care; and second, ARM & HAMMER SUPER STOP(TM), the Company's first entry into the traditional clay litter litter /lit·ter/ (lit´er) stretcher. lit·ter n. 1. A flat supporting framework, such as a piece of canvas stretched between parallel shafts, for carrying a disabled or dead person; a market, a companion product to ARM & HAMMER SUPER SCOOP SCOOP - Structured Concurrent Object-Oriented Prolog. ["SCOOP, Structured Concurrent Object-Oriented Prolog", J. Vaucher et al, in ECOOP '88, S. Gjessing et al eds, LNCS 322, Springer 1988, pp.191-211]. (TM), our clumping clumping /clump·ing/ (klump´ing) the aggregation of particles, such as bacteria, into irregular masses. clump·ing n. The massing together of bacteria or other cells suspended in a fluid. litter introduced in 1997. Commenting on the new product activity, Mr. Davies said, "We are satisfied with the level of distribution these products have achieved so far and expect additional distribution gains later in the year. Now that the basic distribution has been established, our emphasis will shift to increasing consumer takeaway through advertising and consumer promotion." The Company also introduced into about half the country ARM & HAMMER FABRICARE(TM), a reformulated and enhanced version of ARM & HAMMER Laundry Detergent detergent (dētûr`jənt, dĭ–), substance that aids in the removal of dirt. Detergents act mainly on the oily films that trap dirt particles. Powder. This product will continue to roll out on a regional basis, and is expected to reach national distribution during the third quarter. The Company's operating profit margin Operating profit margin The ratio of operating profit to net sales. , excluding the previously described unusual gains, and including its share of affiliate income, increased by 1.3 points from 7.5% of sales last year to 8.8% this year. Gross margin was flat at 44.1% which reflects manufacturing and distribution efficiencies offset by higher raw and packaging materials for consumer products and plant startup costs. The margin improvement came mainly from holding promotion spending virtually flat while consumer products sales increased over 8%. Mr. Davies added, "Our margin improvement programs are working well. Although marketing spending will rise in the next two or three quarters, we expect to increase the Company's operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: for the full year."
Church & Dwight Co., Inc.
Product Line Sales
1st Quarter 2000 vs. 1999
-------------------------
2000 1999
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Oral & Personal Care $ 41,570 $ 40,851
Deodorizing $ 36,630 $ 33,227
Laundry & HH Cleaners $ 77,252 $ 69,030
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Total A&H $155,452 $143,108
Specialty Chemicals $ 25,079 $ 20,668
Animal Nutrition $ 14,970 $ 15,004
Specialty Cleaners $ 2,141 $ 2,238
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Total SPD $ 42,190 $ 37,910
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Total Internal Sales $197,642 $181,018
Unconsolidated Affiliates $ (6,010) $ (6,310)
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Total External Sales $191,632 $174,708
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Church & Dwight Co., Inc. is the manufacturer of ARM & HAMMER consumer and specialty products. This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. relating, among others, to financial objectives, sales growth and margin improvement. Many of these statements depend on factors outside the Company's control, such as economic conditions, market growth and consumer demand, competitive products and pricing, raw material costs and other matters. With regard to new product introductions, there is particular uncertainty related to trade, competitive and consumer reactions. If the Company's assumptions are incorrect, or there is a significant change in some of these key factors, the Company's performance could vary materially from the forward-looking statements in this Report.
CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (Unaudited)
Three Months Ended
(In thousands, except per share data) Mar. 31, 2000 Apr. 2, 1999
------------------------------------- ------------- ------------
Net Sales $191,632 $174,708
Cost of sales 107,155 97,590
Gross Profit 84,477 77,118
Advertising, consumer
and trade promotion expenses 44,464 44,572
Selling, general and administrative expenses 21,349 21,024
Gain on sale of mineral rights - (11,772)
Impairment and other items - 5,320
Income from Operations 18,664 17,974
Equity in earnings of affiliates 854 2,020
Other income (expense), net (808) (131)
Income before taxes 18,710 19,863
Income taxes 6,923 7,498
Minority Interest 55 -
Net Income $11,732 $12,365
Net Income Per Share - Basic $0.30 $0.32
Net Income Per Share - Diluted $0.29 $0.30
Dividends Per Share $0.07 $0.06
Weighted average shares outstanding
- Basic 38,679 38,708
Weighted average shares outstanding
- Diluted 40,449 40,724
CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(Dollars in thousands) Mar. 31, 2000 Apr. 2, 1999
---------------------- ------------- ------------
Assets
Current Assets
Cash, equivalents and securities $19,715 $23,226
Accounts receivable 65,775 61,816
Inventories 77,855 65,379
Other current assets 15,283 29,196
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Total Current Assets 178,628 179,617
Property, Plant and Equipment (Net) 183,759 153,396
Notes Receivable 3,000 12,272
Equity Investment in Affiliates 23,388 28,763
Intangibles and other assets 96,229 34,367
------- -------
Total Assets $485,004 $408,415
Liabilities and Stockholders' Equity
Current Liabilities $162,260 $128,568
Long-Term Debt 47,930 28,130
Other Long-Term Liabilities 50,882 44,877
Stockholders' Equity 223,932 206,840
-------- -------
Total Liabilities
and Stockholders' Equity $485,004 $408,415
CHURCH & DWIGHT CO., INC. DECLARES 397th REGULAR QUARTERLY DIVIDEND Church & Dwight Co., Inc. (NYSE:CHD), manufacturer of ARM & HAMMER(R) consumer and specialty products, today reported that the Board of Directors declared a regular quarterly dividend of 7 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . This dividend will be payable June 1, 2000, to stockholders of record at the close of business on May 12, 2000. This is the Company's 397th regular quarterly dividend. |
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