FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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(Mark One) |
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x |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended March 31, 2005
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o |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from _____________ to _____________
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For Quarter Ended March 31, 2005 |
Commission file number 1-800 |
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WM. WRIGLEY JR. COMPANY |
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(Exact name of registrant as specified in its charter) |
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DELAWARE |
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36-1988190 |
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(State or other jurisdiction of Incorporation or organization) |
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(I.R.S. Employer Identification No.) |
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410 North Michigan Avenue |
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60611 |
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(Address of principal executive offices) |
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(Zip Code) |
(Registrant’s telephone number, including area code) 312-644-2121
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.
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Yes x |
No o |
Indicate by check mark whether the Registrant is an accelerated filer (as defined under rule 12b-2 of the Securities and Exchange Act of 1934).
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Yes x |
No o |
191,661,144 shares of Common Stock and 33,421,424 shares of Class B Common Stock were outstanding as of April 29, 2005.
FORM 10-Q
PART I – FINANCIAL INFORMATION – ITEM 1
WM. WRIGLEY JR. COMPANY
CONSOLIDATED STATEMENT OF EARNINGS (CONDENSED)
(Unaudited)
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Three Months Ended |
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2005 |
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2004 |
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Net sales |
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$ |
950,390 |
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812,151 |
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Cost of sales |
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412,757 |
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353,766 |
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Gross profit |
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537,633 |
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458,385 |
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Selling, general and administrative expense |
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345,426 |
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296,716 |
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Operating income |
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192,207 |
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161,669 |
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Investment income |
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3,866 |
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2,495 |
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Other expense |
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(2,694 |
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(954 |
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Earnings before income taxes |
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193,379 |
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163,210 |
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Income taxes |
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62,365 |
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52,227 |
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Net earnings |
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$ |
131,014 |
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110,983 |
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Net earnings per average share of common stock (basic and diluted) |
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$ |
0.58 |
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0.49 |
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Dividends declared per share of common stock |
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$ |
.280 |
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0.235 |
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Average number of shares outstanding for the period |
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224,884 |
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224,795 |
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All amounts in thousands except for per share values.
Notes to financial statements beginning on page 5 are an integral part of these statements.
2
FORM 10-Q
PART I – FINANCIAL INFORMATION – ITEM 1 (Cont’d)
WM. WRIGLEY JR. COMPANY
CONSOLIDATED STATEMENT OF CASH FLOWS (CONDENSED)
(Unaudited)
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Three Months Ended |
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2005 |
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2004 |
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OPERATING ACTIVITIES |
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Net earnings |
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$ |
131,014 |
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110,983 |
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Adjustments to reconcile net earnings to net cash provided by operating activities: |
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Depreciation |
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39,712 |
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31,257 |
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Loss on retirements of property, plant, and equipment |
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2,609 |
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5,465 |
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(Increase) decrease in: |
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Accounts receivable |
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(63,008 |
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(10,202 |
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Inventories |
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(47,074 |
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(17,740 |
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Other current assets |
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(31,136 |
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(25,287 |
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Deferred charges and other assets |
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5,438 |
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129 |
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Increase (decrease) in: |
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Accounts payable |
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19,853 |
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(2,907 |
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Accrued expenses |
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9,093 |
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419 |
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Income and other taxes payable |
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23,229 |
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15,546 |
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Deferred taxes |
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(3,363 |
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(440 |
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Other noncurrent liabilities |
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3,248 |
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6,778 |
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Net cash provided by operating activities |
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89,615 |
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114,001 |
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INVESTING ACTIVITIES |
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Additions to property, plant, and equipment |
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(38,595 |
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(32,038 |
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Proceeds from retirements of property, plant, and equipment |
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1,091 |
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1,055 |
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Acquisition, net of cash acquired |
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(1,526 |
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— |
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Purchases of short-term investments |
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(4,300 |
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(10,012 |
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Maturities of short-term investments |
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4,020 |
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10,173 |
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Net cash used in investing activities |
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(39,310 |
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(30,822 |
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FINANCING ACTIVITIES |
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Dividends paid |
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(52,831 |
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(49,473 |
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Common Stock issued (purchased), net |
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8,406 |
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(27,231 |
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Net cash used in financing activities |
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(44,425 |
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(76,704 |
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Effect of exchange rate changes on cash and cash equivalents |
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(11,049 |
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2,537 |
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Net increase (decrease) in cash and cash equivalents |
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(5,169 |
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9,012 |
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Cash and cash equivalents at beginning of period |
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628,553 |
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505,217 |
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Cash and cash equivalents at end of period |
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$ |
623,384 |
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514,229 |
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SUPPLEMENTAL CASH FLOW INFORMATION |
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Income taxes paid |
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$ |
52,582 |
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42,072 |
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Interest paid |
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$ |
1,205 |
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493 |
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Interest and dividends received |
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$ |
3,866 |
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2,495 |
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All amounts in thousands.
Notes to financial statements beginning on page 5 are an integral part of these statements.
3
FORM 10-Q
PART I – FINANCIAL INFORMATION – ITEM 1 (Cont’d)
WM. WRIGLEY JR. COMPANY
CONSOLIDATED BALANCE SHEET (CONDENSED)
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March 31, |
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December 31, |
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(Unaudited) |
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Current assets: |
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Cash and cash equivalents |
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$ |
623,384 |
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628,553 |
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Short term investments, at amortized cost |
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23,041 |
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22,764 |
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Accounts receivable |
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411,741 |
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356,389 |
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Inventories - |
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Finished goods |
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147,602 |
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135,527 |
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Raw materials, work in process and supplies |
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292,674 |
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262,580 |
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440,276 |
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398,107 |
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Other current assets |
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101,031 |
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65,336 |
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Deferred income taxes - current |
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31,777 |
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34,761 |
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Total current assets |
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1,631,250 |
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1,505,910 |
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Marketable equity securities, at fair value |
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15,454 |
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16,970 |
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Deferred charges and other assets |
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249,237 |
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250,158 |
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Goodwill and other intangibles |
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260,534 |
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210,806 |
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Deferred income taxes - noncurrent |
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43,829 |
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40,239 |
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Property, plant, and equipment, at cost |
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2,027,251 |
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2,073,487 |
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Less accumulated depreciation |
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923,895 |
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930,867 |
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Net property, plant, and equipment |
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1,103,356 |
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1,142,620 |
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Total assets |
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$ |
3,303,660 |
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3,166,703 |
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Current liabilities: |
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Line of credit |
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$ |
90,000 |
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90,000 |
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Accounts payable |
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232,918 |
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216,764 |
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Accrued expenses |
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307,577 |
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271,236 |
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Dividends payable |
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62,948 |
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52,821 |
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Income and other taxes payable |
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95,347 |
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76,554 |
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Deferred income taxes - current |
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10,248 |
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10,595 |
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Total current liabilities |
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799,038 |
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717,970 |
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Deferred income taxes - noncurrent |
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86,869 |
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88,112 |
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Other noncurrent liabilities |
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181,363 |
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181,937 |
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Stockholders’ equity: |
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Preferred stock (no par value) |
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Authorized - 20,000 shares |
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Issued - None |
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Common stock (no par value) |
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Authorized – 1,000,000 and 400,000 shares |
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Issued - 199,012 shares at 3/31/05; |
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13,259 |
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13,254 |
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Class B common stock (convertible) |
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Authorized – 300,000 and 80,000 shares |
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Issued and outstanding - |
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2,237 |
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2,242 |
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Additional paid-in capital |
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21,991 |
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17,764 |
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Retained earnings |
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2,503,542 |
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2,435,838 |
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Common stock in treasury, at cost - |
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(333,881 |
) |
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(346,087 |
) |
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Accumulated other comprehensive income: |
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Foreign currency translation adjustment |
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20,801 |
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44,936 |
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Gain (loss) on derivative contracts |
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(553 |
) |
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758 |
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Unrealized holding gains on marketable equity securities |
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8,994 |
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9,979 |
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Total accumulated other comprehensive income |
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29,242 |
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55,673 |
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Total stockholders’ equity |
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2,236,390 |
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2,178,684 |
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Total liabilities & stockholders’ equity |
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$ |
3,303,660 |
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3,166,703 |
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All amounts in thousands.
Notes to financial statements beginning on page 5 are an integral part of these statements.
4
FORM 10-Q
PA