SCHWEITZER MAUDUIT INTERNATIONAL INC - 10-Q Quarterly Report

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

ý		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

		For the quarterly period ended September 30, 2004

OR

o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

		For the transition period from to

1-13948
(Commission file number)

SCHWEITZER-MAUDUIT INTERNATIONAL, INC.

(Exact name of registrant as specified in its charter)

Delaware		62-1612879
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

100 North Point Center East, Suite 600 Atlanta, Georgia		30022
(Address of principal executive offices)		(Zip code)

1-800-514-0186
(Registrant’s telephone number, including area code)

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 check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ý No o

There were 14,834,750 shares of Common Stock, par value $0.10 per share of the registrant outstanding as of November 1, 2004.

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)

	For the three months ended September 30,				For the nine months ended September 30,
	2004		2003		2004		2003

Net Sales	$	164.1	$	142.1	$	485.6	$	419.5
Cost of products sold	132.5		114.2		395.3		340.1
Gross Profit	31.6		27.9		90.3		79.4
Selling expense	6.2		5.5		20.3		16.6
Research expense	2.2		1.7		6.8		5.9
General expense	6.5		4.9		20.3		17.0
Operating Profit	16.7		15.8		42.9		39.9
Interest expense	1.1		0.3		3.1		1.6
Other income (expense), net	0.4		0.5		0.7		(0.2		)
Income Before Income Taxes and Minority Interest	16.0		16.0		40.5		38.1
Provision for income taxes	4.2		3.8		10.6		9.2
Income Before Minority Interest	11.8		12.2		29.9		28.9
Minority interest in earnings of subsidiaries	1.5		1.4		4.4		3.7
Net Income	$	10.3	$	10.8	$	25.5	$	25.2

Net Income per Common Share:
Basic	$	.69	$	.73	$	1.71	$	1.71
Diluted	$	.67	$	.72	$	1.65	$	1.67

Cash Dividends Declared per Common Share	$	.15	$	.15	$	.45	$	.45

See Notes to Unaudited Consolidated Financial Statements

SCHWEITZER-MAUDUIT INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

U.S. $ in millions, except per share amounts

(Unaudited)

	September 30, 2004		December 31, 2003

ASSETS
Current Assets
Cash and cash equivalents	$	6.7	$	3.7
Accounts receivable	103.5		91.9
Inventories	107.5		97.5
Current income tax refunds receivable	2.6

Part I	FINANCIAL INFORMATION

Item 1.	Financial Statements

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 3.	Quantitative and Qualitative Disclosures About Market Risk

Item 4.	Controls and Procedures

	Report of Independent Registered Accounting Firm

Part II	OTHER INFORMATION

Item 1.	Legal Proceedings

Item 2.	Unregistered Sale of Equity Securities and Use of Proceeds

Item 6.	Exhibits


SIGNATURES

EXHIBIT INDEX

EX 15	Letter from Deloitte & Touch LLP regarding unaudited interim financial information

EX 31.1	Section 302 Certification of CEO

EX 31.2	Section 302 Certification of CFO

EX 32.1	Section 906 Certification of CEO

EX 32.2	Section 906 Certification of CFO