SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2003 or
| ¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES ACT OF 1934 |
For the transition period from to
Commission File Number 001-09781 (0-1052)
MILLIPORE CORPORATION
(Exact name of registrant as specified in its charter)
| Massachusetts | 04-2170233 | |
| (State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification No.) | |
| 290 Concord Road, Billerica, MA | 01821 | |
| (Address of principal executive offices) | (Zip Code) | |
(978) 715-4321
(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 x No ¨
Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2). Yes x No ¨
As of July 25, 2003, 48,663,741 shares of the registrant’s Common Stock were outstanding.
MILLIPORE CORPORATION
| PART I. |
FINANCIAL INFORMATION |
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| Item 1. |
Condensed Consolidated Financial Statements |
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| Condensed Consolidated Balance Sheets at June 30, 2003 and December 31, 2002 |
3 | |||
| 4 | ||||
| Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2003 and 2002 |
5 | |||
| 6 | ||||
| Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
12 | ||
| Item 3. |
23 | |||
| Item 4. |
23 | |||
| PART II. |
OTHER INFORMATION |
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| Item 4. |
23 | |||
| Item 6. |
23 | |||
| 24 | ||||
2
CONDENSED CONSOLIDATED BALANCE SHEETS
| June 30, 2003 |
December 31, 2002 |
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| (In thousands) (Unaudited) |
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| ASSETS | ||||||||
| Current assets: |
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| Cash and cash equivalents |
$ | 120,874 | $ | 101,242 | ||||
| Accounts receivable, net |
174,573 | 160,462 | ||||||
| Inventories |
127,626 | 111,332 | ||||||
| Deferred income taxes |
11,694 | 11,694 | ||||||
| Other current assets |
7,144 | 5,481 | ||||||
| Total current assets |
441,911 | 390,211 | ||||||
| Property, plant and equipment, net |
280,737 | 262,604 | ||||||
| Deferred income taxes |
87,824 | 87,824 | ||||||
| Intangible assets, net |
26,793 | 28,064 | ||||||
| Goodwill |
9,646 | 9,646 | ||||||
| Other assets |
6,833 | 7,881 | ||||||
| Total assets |
$ | 853,744 | $ | 786,230 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: |
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| Notes payable |
$ | 2,256 | $ | 1,500 | ||||
| Accounts payable |
56,675 | 57,596 | ||||||
| Accrued expenses |
62,486 | 58,431 | ||||||
| Accrued retirement plan contributions |
6,320 | 8,438 | ||||||
| Accrued income taxes payable |
10,012 | 8,464 | ||||||
| Total current liabilities |
137,749 | 134,429 | ||||||
| Long-term debt |
327,000 | 334,000 | ||||||
| Other liabilities |
32,540 | 30,297 | ||||||
| Total liabilities |
497,289 | 498,726 | ||||||
| Commitments and contingencies |
— | — | ||||||
| Shareholders’ equity: |
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| Common stock |
56,988 | 56,988 | ||||||
| Additional paid-in capital |
91,338 | 91,338 | ||||||
| Retained earnings |
475,598 | 432,139 | ||||||
| Unearned compensation |
(1,043 | ) | (1,454 | ) | ||||
| Accumulated other comprehensive loss |
(19,807 | ) | (40,700 | ) | ||||
| 603,074 | 538,311 | |||||||
| Less: Treasury stock at cost, 8,433 and 8,576 shares, respectively |
(246,619 | ) | (250,807 | ) | ||||
| Total shareholders’ equity |
356,455 | 287,504 | ||||||
| Total liabilities and shareholders’ equity |
$ | 853,744 | $ | 786,230 | ||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
3
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
| Three Months Ended June 30, |
Six Months Ended June 30, |
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| 2003 |
2002 |
2003 |
2002 |
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| (In thousands, except per share data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Net sales |
$ | 196,367 | $ | 176,124 | $ | 383,819 | $ | 342,756 | ||||||||
| Cost of sales |
88,535 | 74,819 | 170,860 | 144,050 | ||||||||||||
| Gross profit |
107,832 | 101,305 | 212,959 | 198,706 | ||||||||||||
| Selling, general and administrative expenses |
61,814 | 54,278 | 121,839 | 108,844 | ||||||||||||
| Research and development expenses |
14,069 | 13,531 | 27,878 | 25,918 | ||||||||||||
| Restructuring and other charges |
(604 | ) | 500 | (604 | ) | 500 | ||||||||||
| Operating income |
32,553 | 32,996 | 63,846 | 63,444 | ||||||||||||
| Interest income |
379 | 282 | 764 | 522 | ||||||||||||
| Interest expense |
(4,189 | ) | (4,610 | ) | (8,337 | ) | (10,093 | ) | ||||||||
| Income before income taxes |
28,743 | 28,668 | 56,273 | 53,873 | ||||||||||||
| Provision for income taxes |
6,467 | 6,307 | 12,661 | 11,852 | ||||||||||||
| Income from continuing operations |
22,276 | 22,361 | 43,612 | 42,021 | ||||||||||||
| Income on disposal of discontinued operations, net of taxes |
— | — | — | 2,900 | ||||||||||||
| Net income |
$ | 22,276 | $ | 22,361 | $ | 43,612 | $ | 44,921 | ||||||||
| Basic income per share: |
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| Continuing operations |
$ | 0.46 | $ | 0.46 | $ | 0.90 | $ | 0.87 | ||||||||
| Discontinued operations |
— | — | — | 0.06 | ||||||||||||
| Net income |
$ | 0.46 | $ | 0.46 | $ | 0.90 | $ | 0.93 | ||||||||
| Diluted income per share: |
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| Continuing operations |
$ | 0.46 | $ | 0.46 | $ | 0.90 | $ | 0.87 | ||||||||
| Discontinued operations |
— | — | — | 0.06 | ||||||||||||
| Net income |
$ | 0.46 | $ | 0.46 | $ | 0.90 | $ | 0.93 | ||||||||
| Weighted average shares outstanding: |
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| Basic |
48,460 | 48,176 | 48,432 | 48,034 | ||||||||||||
| Diluted |
48,834 | 48,476 | 48,676 | 48,477 | ||||||||||||
The accompanying notes are an integral part of the condensed consolidated financial statements.
4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| Six months ended June 30, |
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| 2003 |
2002 |
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| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| Cash flows from operating activities: |
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| Net income |
$ | 43,612 | $ | 44,921 | ||||
| Less: Income on disposal of discontinued operations, net of taxes |
— | 2,900 | ||||||
| Income from continuing operations |
43,612 | 42,021 | ||||||
| Adjustments to reconcile income from continuing operations to net cash provided by operating activities: |
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| Depreciation and amortization |
19,642 | 16,188 | ||||||
| Restructuring and other charges |
(604 | ) | 500 | |||||
| Change in operating assets and liabilities: |
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| Increase in accounts receivable |
(8,097 | ) | (1,081 | ) | ||||
| Increase in inventories |
(10,493 | ) | (13,700 | ) | ||||
| Increase in other current assets |
(1,486 | ) | (3,787 | ) | ||||
| Decrease in other assets |
966 | 315 | ||||||
| Decrease in accounts payable and accrued expenses |
(867 | ) | (11,141 | ) | ||||
| Decrease in accrued retirement plan contributions |
(2,348 | ) | (2,668 | ) | ||||
| Increase (decrease) in accrued income taxes |
1,361 | (5,749 | ) | |||||
| Increase in other |
2,119 | 1,490 | ||||||
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