Church & Dwight Co., Inc. Reports Third Quarter 1999 Earnings Rose 40% to $.28 Per Share On a 5% Sales Increase.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)--Oct. 28, 1999-- 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 October October: see month. 1, 1999, net income increased to $11.4MM, representing a 40% increase in 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 to $.28 per share, compared to $7.8MM, or $.20 per share in the same period last year. Sales increased by 5.1% to $185.9MM from $176.8MM in last year's third quarter which included a significant increase in consumer product sales related to the introduction of two major products, 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]. (R) 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. 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. and ARM & HAMMER DENTAL CARE(R) Gum gum, colloidal plant substance gum, term commonly applied to any of a wide variety of colloidal substances somewhat similar in appearance and general characteristics, exuded by or extracted from plants. . For the first nine months of 1999, net income rose to $34.2MM, equivalent to diluted earnings of $.84 per share, compared to $21.6MM or $.54 per share in the same period last year. This year's results include a net pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern gain of $5.6MM or $.08 per share from two previously announced events - the sale of trona tro·na n. A natural vitreous gray or white mineral, Na2CO3·NaHCO3·2H2O, used as a source of sodium compounds. mineral reserves in January January: see month. , less 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 related to plant restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). activity. Last year's results included a $3.5MM gain from the sale of technology. Excluding these one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. items, net income would have risen by 55% to $.76 per share compared to $.49 per share last year. Nine month sales increased by 8.9% to $547.0MM this year compared to $502.4MM last year. Commenting on the third quarter results, Mr. Robert A. Davies, III, President and Chief Executive Officer, said, "Both the significant profit improvement and the slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in consumer sales were expected given the tremendous new product sell-in and promotional activity in the same period last year. Our retail sales increased by 5% in this year's third quarter, which we consider satisfactory ahead of the new product initiatives we plan for the next few months." Early in the fourth quarter, the Company announced the launch of two major new products. First, ARM & HAMMER SUPER STOP(TM) Cat Litter, 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 segment of the cat litter market. Second, ARM & HAMMER P.M.(TM), a major addition to the ARM & HAMMER DENTAL CARE line, and the first major toothpaste toothpaste, n See dentifrice. uniquely 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. and positioned to fight "nighttime mouth." The Company began shipping both of these products in October, and expects broad retail distribution to be achieved early next year. The Company also announced today, in a separate release, that it is planning to enter the bathroom cleaner business with the proposed acquisition of two major brands, CLEAN SHOWER(R) and 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), which together account for about a 16% share of this $450 million retail category. Referring to the Company's cost structure, Mr. Davies added, "We are pleased at the improvement in our operating profit margin Operating profit margin The ratio of operating profit to net sales. this year. Excluding the one-time items and including the income from affiliates, our operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: so far this year is 8.9% compared to 6.3% last year. This comes from a combination of plant and other operating efficiencies and lower marketing spending. Additional cost reduction programs will be completed in the fourth quarter. As a result, we expect to be able to enhance our full year operating margin next year even as we increase spending on new products."
Church & Dwight Co., Inc
Product Line Net Sales
Dollars in Thousands
--------------------
Three Months Ended Nine Months Ended
Oct. 1, Sept. 25, Oct. 1, Sept. 25,
1999 1998 1999 1998
-------------------- --------------------
Laundry & HH Cleaning $ 66,393 $ 64,770 $ 204,011 $ 195,978
Oral & Personal Care $ 40,958 $ 44,582 $ 122,759 $ 120,290
Deodorizing $ 42,332 $ 36,761 $ 114,776 $ 96,802
-------------------- --------------------
Total Consumer $ 149,683 $ 146,113 $ 441,546 $ 413,070
Specialty Chemicals $ 24,918 $ 19,442 $ 72,046 $ 59,766
Animal Nutrition $ 15,301 $ 13,376 $ 45,470 $ 35,600
Specialty Cleaners $ 2,745 $ 2,818 $ 7,215 $ 8,806
-------------------- --------------------
Total Specialty Products $ 42,964 $ 35,636 $ 124,731 $ 104,172
Total Internal Sales $ 192,647 $ 181,749 $ 566,277 $ 517,242
-------------------- --------------------
Unconsolidated Affiliates $ (6,698) $ (4,922) $ (19,255) $ (14,870)
-------------------- --------------------
Total External Sales $ 185,949 $ 176,827 $ 547,022 $ 502,372
==================== ====================
-0- 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 cost reduction programs. 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 Nine Months Ended
----------------------------------------------------------------------
(In thousands, except Oct. 1, Sept. 25, Oct. 1, Sept. 25,
per share data) 1999 1998 1999 1998
----------------------------------------------------------------------
Net Sales $ 185,949 $ 176,827 $ 547,022 $ 502,372
Cost of sales 100,975 97,664 301,018 277,001
----------------------------------------------------------------------
Gross profit 84,974 79,163 246,004 225,371
Advertising, consumer and
trade promotion expenses 44,459 47,774 136,327 137,276
Selling, general and
administrative expenses 22,517 19,368 64,746 59,783
Gain on sale of mineral rights - - (11,772) -
Impairment and other items 435 - 6,190 -
Sale of Technology - - - (3,500)
----------------------------------------------------------------------
Income from Operations 17,563 12,021 50,513 31,812
Equity in earnings
of affiliates 1,372 1,207 5,321 4,170
Other income (expense), net (475) (629) (887) (1,346)
----------------------------------------------------------------------
Income before taxes 18,460 12,599 54,947 34,636
Income taxes 6,873 4,765 20,330 13,033
Minority Interest 208 - 417 -
----------------------------------------------------------------------
Net Income $ 11,379 $ 7,834 $ 34,200 $ 21,603
======================================================================
Net Income per share - Basic $0.29 $0.20 $0.88 $0.56
Net Income per share - Diluted $0.28 $0.20 $0.84 $0.54
----------------------------------------------------------------------
Dividend per share $0.07 $0.06 $0.19 $0.18
----------------------------------------------------------------------
Weighted average shares
outstanding - Basic 38,837 38,746 38,780 38,778
Weighted average shares
outstanding - Diluted 41,097 40,050 40,887 40,002
======================================================================
Reflects September 1, 1999 2 for 1 stock split.
CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(Dollars in thousands) Oct. 1, 1999 Sept. 25, 1998
----------------------------------------------------------------------
Assets
======================================================================
Current Assets
Cash, equivalents and securities $ 24,108 $ 15,487
Accounts receivable 69,512 65,884
Inventories 68,351 64,314
Deferred income taxes 10,196 9,836
Prepaid expenses 6,946 4,278
Current portion of note receivable 6,540 7,393
----------------------------------------------------------------------
Total Current Assets 185,653 167,192
----------------------------------------------------------------------
Property, Plant and Equipment (Net) 177,054 160,341
Note Receivable - 3,540
Equity Investment in Affiliates 19,446 27,135
Intangibles and other assets 43,350 33,463
----------------------------------------------------------------------
Total Assets $ 425,503 $ 391,671
======================================================================
Liabilities and Stockholders' Equity
----------------------------------------------------------------------
Current Liabilities $ 130,131 $ 136,931
Long-Term Debt 30,011 24,744
Deferred Items 30,029 27,187
Nonpension Postretirement and
Postemployment Benefits 15,620 14,584
Minority Interest 3,049 -
Stockholders' Equity 216,663 188,225
----------------------------------------------------------------------
Total Liabilities and
Stockholders' Equity $ 425,503 $ 391,671
======================================================================
-0- CHURCH & DWIGHT CO., INC. DECLARES 395th REGULAR QUARTERLY DIVIDEND PRINCETON, NJ, OCTOBER 28, 1999--Church & Dwight Co., Inc. (NYSE:CHD), manufacturer of ARM & HAMMER(R) 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 December 1, 1999, to stockholders of record at the close of business on November 9, 1999. This is the Company's 395th regular quarterly dividend. |
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