SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended August 31, 2003
Commission File Number 001-14920
(Exact name of registrant as specified in its charter)
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MARYLAND |
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52-0408290 |
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(State or other
jurisdiction of |
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(I.R.S. Employer |
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18 Loveton Circle, P. O. Box 6000, Sparks, MD |
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21152-6000 |
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(Address of principal executive offices) |
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(Zip Code) |
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Registrant’s telephone number, including area code (410) 771-7301 |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ý No o
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
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Shares
Outstanding |
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Common Stock |
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15,220,332 |
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Common Stock Non-Voting |
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123,601,767 |
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TABLE OF CONTENTS
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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
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2
McCORMICK & COMPANY, INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
(in thousands except per share amounts)
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Three
Months Ended |
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Nine
Months Ended |
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2003 |
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2002 |
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2003 |
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2002 |
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Net sales |
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$ |
557,612 |
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$ |
477,319 |
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$ |
1,570,973 |
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$ |
1,419,939 |
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Cost of goods sold |
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345,131 |
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302,653 |
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974,587 |
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891,731 |
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Gross profit |
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212,481 |
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174,666 |
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596,386 |
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528,208 |
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Selling, general and administrative expense |
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148,403 |
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117,920 |
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420,326 |
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367,911 |
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Special charges |
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1,349 |
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2,786 |
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1,942 |
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4,692 |
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Operating income |
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62,729 |
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53,960 |
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174,118 |
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155,605 |
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Interest expense |
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10,027 |
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9,611 |
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29,216 |
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29,570 |
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Other income, net |
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(703 |
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(359 |
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(7,317 |
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(1,034 |
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Income from consolidated operations before income taxes |
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53,405 |
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44,708 |
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152,219 |
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127,069 |
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Income taxes |
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17,098 |
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14,257 |
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46,988 |
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39,420 |
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Net income from consolidated operations |
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36,307 |
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30,451 |
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105,231 |
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87,649 |
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Income from unconsolidated operations |
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4,401 |
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4,376 |
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9,728 |
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14,195 |
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Minority interest |
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(628 |
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(875 |
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(2,954 |
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(2,454 |
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Net income from continuing operations |
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40,080 |
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33,952 |
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112,005 |
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99,390 |
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Discontinued operations (net of tax): |
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Net income from discontinued operations |
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1,665 |
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1,225 |
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4,838 |
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3,241 |
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Gain on sale of discontinued operations |
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9,561 |
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— |
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9,561 |
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— |
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Net income |
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$ |
51,306 |
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$ |
35,177 |
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$ |
126,404 |
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$ |
102,631 |
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Earnings per common share: |
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Basic: |
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Net income from continuing operations |
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$ |
0.29 |
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$ |
0.24 |
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$ |
0.80 |
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$ |
0.71 |
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Net income from discontinued operations |
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$ |
0.01 |
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$ |
0.01 |
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$ |
0.03 |
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$ |
0.02 |
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Gain on sale of discontinued operations |
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$ |
0.07 |
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$ |
— |
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$ |
0.07 |
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$ |
— |
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Net income |
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$ |
0.37 |
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$ |
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