UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended July 3, 2004
OR
| ¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number 1-655
MAYTAG CORPORATION
| A Delaware Corporation | I.R.S. Employer Identification No. 42-0401785 |
403 West Fourth Street North, Newton, Iowa 50208
Registrant’s telephone number: 641-792-7000
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 of the Exchange Act). Yes x No ¨
The number of shares outstanding of each of the issuer’s classes of common stock, as of July 3, 2004:
Common Stock, $1.25 par value – 78,924,550
Quarterly Report on Form 10-Q
Quarter Ended July 3, 2004
INDEX
2
Consolidated Statements of Income
| Three Months Ended |
Six Months Ended |
|||||||||||||||
| In thousands, except per share data |
July 3 2004 |
June 28 2003 |
July 3 2004 |
June 28 2003 |
||||||||||||
| Net sales |
$ | 1,152,229 | $ | 1,162,893 | $ | 2,371,173 | $ | 2,298,899 | ||||||||
| Cost of sales |
1,003,726 | 948,880 | 2,011,549 | 1,884,766 | ||||||||||||
| Gross profit |
148,503 | 214,013 | 359,624 | 414,133 | ||||||||||||
| Selling, general and administrative expenses |
125,989 | 134,677 | 265,483 | 257,220 | ||||||||||||
| Restructuring and related charges |
27,852 | 27,928 | 35,847 | 37,315 | ||||||||||||
| Goodwill impairment-Commercial Products |
9,600 | — | 9,600 | — | ||||||||||||
| Front-load washer litigation |
18,500 | — | 18,500 | — | ||||||||||||
| Operating income (loss) |
(33,438 | ) | 51,408 | 30,194 | 119,598 | |||||||||||
| Interest expense |
(13,215 | ) | (14,279 | ) | (26,106 | ) | (28,058 | ) | ||||||||
| Adverse judgment on pre-acquisition distributor lawsuit |
(10,505 | ) | — | (10,505 | ) | — | ||||||||||
| Other income (loss) |
55 | 177 | 2,921 | (1,813 | ) | |||||||||||
| Income (loss) from continuing operations before income taxes |
(57,103 | ) | 37,306 | (3,496 | ) | 89,727 | ||||||||||
| Income tax expense (benefit) |
(16,019 | ) | 11,786 | (1,136 | ) | 29,609 | ||||||||||
| Income (loss) from continuing operations |
(41,084 | ) | 25,520 | (2,360 | ) | 60,118 | ||||||||||
| Discontinued operations, net of tax: |
||||||||||||||||
| Loss from discontinued operations |
— | (286 | ) | — | (404 | ) | ||||||||||
| Net income (loss) |
$ | (41,084 | ) | $ | 25,234 | $ | (2,360 | ) | $ | 59,714 | ||||||
| Basic earnings (loss) per common share: |
||||||||||||||||
| Income (loss) from continuing operations |
$ | (0.52 | ) | $ | 0.33 | $ | (0.03 | ) | $ | 0.77 | ||||||
| Discontinued operations |
— | — | — | (0.01 | ) | |||||||||||
| Net income (loss) |
$ | (0.52 | ) | $ | 0.32 | $ | (0.03 | ) | $ | 0.76 | ||||||
| Diluted earnings (loss) per common share: |
||||||||||||||||
| Income (loss) from continuing operations |
$ | (0.52 | ) | $ | 0.32 | $ | (0.03 | ) | $ | 0.76 | ||||||
| Discontinued operations |
— | — | — | (0.01 | ) | |||||||||||
| Net income (loss) |
$ | (0.52 | ) | $ | 0.32 | $ | (0.03 | ) | $ | 0.76 | ||||||
| Cash dividends paid per share |
$ | 0.18 | $ | 0.18 | $ | 0.36 | $ | 0.36 | ||||||||
3
Consolidated Balance Sheets
| In thousands, except share data |
July 3 2004 |
January 3 2004 | ||||
| Assets |
||||||
| Current assets |
||||||
| Cash and cash equivalents |
$ | 7,492 | $ | 6,756 | ||
| Accounts receivable-net |
636,929 | 596,832 | ||||
| Inventories |
591,588 | 468,345 | ||||
| Deferred income taxes |
61,335 | 63,185 | ||||
| Other current assets |
89,329 | 94,030 | ||||
| Discontinued current assets |
69,941 | 75,175 | ||||
| Total current assets |
1,456,614 | 1,304,323 | ||||
| Noncurrent assets |
||||||
| Deferred income taxes |
163,632 | 183,685 | ||||
| Prepaid pension cost |
1,499 | 1,666 | ||||
| Intangible pension asset |
66,615 | 66,615 | ||||
| Goodwill |
259,413 | 269,013 | ||||
| Other intangibles |
36,897 | 37,498 | ||||
| Other noncurrent assets |
46,893 | 54,069 | ||||
| Discontinued noncurrent assets |
61,069 | 60,336 | ||||
| Total noncurrent assets |
636,018 | 672,882 | ||||
| Property, Plant and equipment |
||||||
| Property, Plant and equipment |
2,638,398 | 2,628,985 | ||||
| Less accumulated depreciation |
1,646,955 | 1,582,050 | ||||
| Total property, plant and equipment |
991,443 | 1,046,935 | ||||
| Total assets |
$ | 3,084,075 | $ | 3,024,140 | ||
4
Maytag Corporation
Consolidated Balance Sheets - Continued
| In thousands, except share data |
July 3 2004 |
January 3 2004 |
||||||
| Liabilities and Shareowners’ Equity |
||||||||
| Current liabilities |
||||||||
| Notes payable |
$ | 200,975 | $ | 71,491 | ||||
| Accounts payable |
423,950 | 466,734 | ||||||
| Compensation to employees |
55,477 | 69,388 | ||||||
| Accrued liabilities |
279,030 | 245,935 | ||||||
| Current portion of long-term debt |
23,007 | 24,503 | ||||||
| Discontinued current liability |
100,962 | 105,739 | ||||||
| Total current liabilities |
1,083,401 | 983,790 | ||||||
| Noncurrent liabilities |
||||||||
| Long-term debt, less current portion |
870,546 | 874,832 | ||||||
| Postretirement benefit liability |
541,380 | 538,105 | ||||||
| Accrued pension cost |
337,407 | 398,495 | ||||||
| Other noncurrent liabilities |
188,888 | 144,341 | ||||||
| Discontinued noncurrent liability |
18,766 | 18,766 | ||||||
| Total noncurrent liabilities |
1,956,987 | 1,974,539 | ||||||
| Shareowners’ equity |
||||||||
| Preferred stock: |
||||||||
| Authorized—24,000,000 shares (par value $1.00) |
||||||||
| Issued—none |
||||||||
| Common stock: |
||||||||
| Authorized—200,000,000 shares (par value $1.25) |
||||||||
| Issued—117,150,593 shares, including shares in treasury |
146,438 | 146,438 | ||||||
| Additional paid-in capital |
429,000 | 432,696 | ||||||
| Retained earnings |
1,329,584 | 1,360,361 | ||||||
| Cost of common stock in treasury (2004—38,112,916 shares; 2003—38,410,885 shares) |
(1,444,413 | ) | (1,455,706 | ) | ||||
| Employee stock plans |
2,735 | (817 | ) | |||||
| Accumulated other comprehensive income |
(419,657 | ) | (417,161 | ) | ||||
| Total shareowners’ equity |
43,687 | 65,811 | ||||||
| Total liabilities and shareowners’ equity |
$ | 3,084,075 | $ | 3,024,140 | ||||
5
Consolidated Statements of Cash Flows
| Six Months Ended |
||||||||
| In thousands |
July 3 2004 |
June 28 2003 |
||||||
| Operating activities |
||||||||
| Net income (loss) |
$ | (2,360 | ) | $ | 59,714 | |||
| Adjustments to reconcile net income (loss) to net cash (used in) provided by continuing operating activities: |
||||||||
| Net loss from discontinued operations |
— | 404 | ||||||
| Depreciation |
83,434 | 80,444 | ||||||
| Amortization |
632 | 562 | ||||||
| Deferred income taxes |
21,903 | 22,103 | ||||||
| Restructuring and related charges, net of cash paid |
29,032 | 29,801 | ||||||
| Goodwill impairment-Commercial Products |
9,600 | — | ||||||
| Front-load washer litigation |
18,500 | — | ||||||
| Adverse judgment on pre-acquisition distributor lawsuit |
10,505 | — | ||||||
| Changes in working capital items exclusive of business acquisitions: |
||||||||
| Accounts receivable |
(42,258 | ) | (70,447 | ) | ||||
| Inventories |
(125,544 | ) | (49,799 | ) | ||||
| Other current assets |
3,691 | 71,229 | ||||||
| Trade payables |
(39,936 | ) | (7,710 | ) | ||||
| Other current liabilities |
17,372 | 1,234 | ||||||
| Pension expense |
31,866 | 33,300 | ||||||
| Pension contributions |
(92,744 | ) | (66,757 | ) | ||||
| Postretirement benefit liability |
3,275 | 13,035 | ||||||
| Other noncurrent liabilities |
15,542 | (8,993 | ) | |||||
| Other |
8,528 | (2,669 | ) | |||||
| Net cash (used in) provided by continuing operating activities |
$ | (48,962 | ) | $ | 105,451 | </ | ||