UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
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QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
For the quarterly period ended March 31, 2004
OR
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TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
For the transition period from to
Commission file number 1-13948
SCHWEITZER-MAUDUIT INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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62-1612879 |
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(State or other jurisdiction of |
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(I.R.S. Employer |
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incorporation or organization) |
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Identification No.) |
100 North Point Center East
Suite 600
Alpharetta, Georgia
30022-8246
(Address of principal executive offices)
(Zip Code)
1-800-514-0186
(Registrant’s telephone number, including area code)
No change
(Former name, former address and former fiscal year, if changed since last report)
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 such filing requirements for the past 90 days.
Yes ý. No o.
Indicate by checkmark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act).
Yes ý. No o.
As of April 30, 2004, 15,019,496 shares of the Corporation’s common stock, par value $.10 per share, together with preferred stock purchase rights associated therewith, were outstanding.
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
SCHWEITZER-MAUDUIT INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
U.S. $ in millions, except per share amounts
(Unaudited)
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For the three months |
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2004 |
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2003 |
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Net Sales |
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$ |
159.9 |
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$ |
135.7 |
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Cost of products sold |
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130.8 |
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109.8 |
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Gross Profit |
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29.1 |
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25.9 |
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Selling expense |
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7.3 |
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5.4 |
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Research expense |
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2.4 |
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2.0 |
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General expense |
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7.2 |
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5.9 |
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Operating Profit |
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12.2 |
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12.6 |
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Interest expense |
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1.0 |
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0.7 |
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Other income, net |
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— |
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0.3 |
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Income Before Income Taxes and Minority Interest |
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11.2 |
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12.2 |
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Provision for income taxes |
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2.9 |
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4.0 |
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Income Before Minority Interest |
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8.3 |
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8.2 |
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Minority interest in earnings of subsidiaries |
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1.8 |
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1.3 |
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Net Income |
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$ |
6.5 |
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$ |
6.9 |
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Net Income per Common Share: |
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Basic |
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$ |
.44 |
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$ |
.46 |
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Diluted |
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$ |
.42 |
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$ |
.45 |
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Cash Dividends Declared per Common Share |
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$ |
.15 |
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$ |
.15 |
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See Notes to Unaudited Consolidated Financial Statements
2
SCHWEITZER-MAUDUIT INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
U.S. $ in millions, except per share amounts
(Unaudited)
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March 31, |
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December
31, |
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ASSETS |
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Current Assets |
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Cash and cash equivalents |
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$ |
2.8 |
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$ |
3.7 |
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Accounts receivable |
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100.9 |
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91.9 |
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Inventories |
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98.7 |
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97.5 |
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Current income tax refunds receivable |
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1.0 |
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0.8 |
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Deferred income tax benefits |
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4.9 |
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5.5 |
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Prepaid expenses |
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5.2 |
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2.9 |
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Total Current Assets |
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213.5 |
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202.3 |
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Gross Property, at cost |
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716.1 |
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712.9 |
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Less accumulated depreciation |
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304.5 |
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301.4 |
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Net Property |
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411.6 |
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411.5 |
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Noncurrent Deferred Income Tax Benefits |
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4.4 |
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2.3 |
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Deferred Charges and Other Assets |
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21.7 |
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19.8 |
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Total Assets |
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$ |
651.2 |
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$ |
635.9 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current Liabilities |
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Current portion of long-term debt |
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$ |
17.5 |
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$ |
11.7 |
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Other short-term debt |
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42.4 |
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19.0 |
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Accounts payable |
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55.3 |
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68.8 |
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Accrued expenses |
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70.4 |
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74.1 |
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Current deferred revenue |
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6.0 |
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6.0 |
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Total Current Liabilities |
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191.6 |
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179.6 |
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Long-Term Debt |
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65.9 |
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66.2 |
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Noncurrent Deferred Income Tax Liabilities |
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29.7 |
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26.3 |
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Noncurrent Deferred Revenue |
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40.3 |
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41.6 |
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Noncurrent Pension and Other Postretirement Benefits |
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41.8 |
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47.9 |
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Other Noncurrent Liabilities |
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15.6 |
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14.6 |
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Minority Interest |
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11.1 |
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9.5 |
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Contingencies (See Notes 5 and 6) |
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Stockholders’ Equity |
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Preferred Stock -$.10 par value - 10,000,000 shares authorized, none issued |
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— |
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— |
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Common Stock -$.10 par value - 100,000,000 shares authorized, 16,078,733 shares issued at both March 31, 2004 and December 31, 2003 (14,994,766 and 14,803,268 shares outstanding at March 31, 2004 and December 31, 2003, respectively) |
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l.6 |
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1.6 |
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Additional paid-in capital |
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62.5 |
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61.5 |
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Common stock in treasury, at cost — 1,083,967 and 1,275,465 shares at March 31, 2004 and December 31, 2003, respectively |
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(18.6 |
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(21.9 |
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Retained earnings |
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248.3 |
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244.0 |
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Unearned compensation on restricted stock |
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(0.7 |
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(0.7 |
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Accumulated other comprehensive loss, net of income tax of $11.7 at both March 31, 2004 and December 31, 2003 |
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(37.9 |
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(34.3 |
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Total Stockholders’ Equity |
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255.2 |
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250.2 |
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Total Liabilities and Stockholders’ Equity |
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$ |
651.2 |
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$ |
635.9 |
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See Notes to Unaudited Consolidated Financial Statements
3
SCHWEITZER-MAUDUIT INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
U.S. $ in millions, except per share amounts
(Unaudited)
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