Scott, Mississippi
July 14, 1999
Delta and Pine Land Company, a commercial breeder, producer and marketer of cotton
planting seed, today announced results for the third quarter ended May 31, 1999.
The Company reported net income before unusual charges of $22,456,000 or $0.55 per diluted
share for the quarter ended May 31, 1999 compared to net income of $16,016,000 or $0.39
per diluted share in the comparable period in fiscal 1998. Net sales and licensing fees
for the quarter ended May 31, 1999 were $158,591,000 compared to $126,029,000 in the
comparable period in fiscal 1998. Net sales and licensing fees reflect an increase in
domestic cotton acreage planted in 1999 over 1998 and a continuing growth in demand for
transgenic technologies as DLP offered a full line of varieties with these new
technologies. Net sales and licensing fees also reflect significantly less than expected
soybean seed sales due in part to a decline in soybean acreage in the Company's market
area which is attributable to lower commodity prices.
Net income for the quarter ended May 31, 1999 after unusual charges was $20,724,000 or
$0.51 per diluted share compared to net income of $13,941,000 or $0.34 per diluted share
in the comparable period in fiscal 1998. Unusual charges relate primarily to costs
associated with the merger with Monsanto, the loss
on the disposal of certain fixed assets and other non-recurring items. The number of
shares used in the determination of diluted earnings per share in 1999 was 40,751,000
compared to 41,328,000 for the comparable period in fiscal 1998.
The Company reported net income before unusual charges of $23,753,000 or $0.58 per diluted
share for the nine months ended May 31, 1999 compared to $21,223,000 or $0.52 per diluted
share for the comparable period in fiscal 1998. Net sales and licensing fees for the nine
months ended May 31, 1999 were a record $238,587,000 compared to $208,614,000 in the same
period in fiscal 1998. This increase in net sales and licensing fees for thenine months
ended May 31, 1999 was attributable to an overall increase in domestic cottonseed units
sold and an increase in transgenic seed sales to approximately 80% of total unit sales in
1999 compared to 60% in 1998, the effects of which were partially offset by a decline in
export sales to Mexico due to a reduction in planted acreage due to a severe drought and a
decline in export sales to Spain due to a lack of seed availability. The Company's replant
program in Texas coupled with inclement weather in late May resulted in an increase in
shipments in late May and early June 1999 over shipments made in the comparable period in
1998. As planned, operating expenses (before unusual charges) increased $3,400,000 due
primarily to higher research and development, sales and marketing, and general and
administrative costs attributable to both domestic and foreign operations. Net income for
the nine months ended May 31, 1999 after unusual charges was $16,644,000 or $0.41per
diluted share compared to net income of $19,033,000 or $0.47 per diluted share in the
comparable period in 1998. The number of shares used in the determination of diluted
earnings per share for the nine months ended May31, 1999 was 40,810,000 compared to
40,516,000 in the comparable period offiscal1998.
Sales are recorded (net of anticipated returns) when seed is shipped, primarily in the
Company's
second and third quarters. Similarly, Bollgard(TM) and Roundup Ready(R) gene technology
license fees are recorded based on the number of acres that are expected to be planted
with such seed as it is shipped. In the fourth quarter, sales incentives, seed returns,
actual licensed acres of seed containing the Bollgard and Roundup Ready gene technologies
and related items are finalized and adjustments made for such items which are estimated in
the first three quarters. It is the nature of agricultural seed businesses that supply,
demand and their timing are affected by many variables, including weather, commodity
prices, farmer financing, and governmental policy. Due to the seasonal nature of the seed
business, the Company typically incurs losses in its first and fourth quarters. Additional
risks and uncertainties with respect to forward looking statements are described in
management's discussion and analysis contained in the Company's Form 10-K for the year
ended August 31, 1998 as well as the Company's latest filings with the Securities and
Exchange Commission.
Delta and Pine Land Company is a commercial breeder, producer and marketer of cotton
planting
seed. Headquartered in Scott, Mississippi, with multiple offices in seven states and
facilities in
several foreign countries, DLPalso breeds, produces and markets soybean planting seed.
Delta and Pine Land Company common stock trades on the NYSE under the symbol
"DLP". Company news release
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