Table_Of_Contents
UNITED STATES |
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x Quarterly Report Pursuant to Section 13 or 15(d) of the SecuritiesExchange Act of 1934 |
For the quarterly period ended September 30, 2003 |
o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the transition period from to |
For the Quarter Ended September 30, 2003 Commission file number 1-800 |
WM. WRIGLEY JR. COMPANY |
(Exact name of registrant as specified in its charter) |
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Delaware |
36-1988190 |
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(State of other jurisdiction of |
(I.R.S. Employer |
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410 North Michigan Avenue |
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(Address of principal executive office) |
(Zip Code) |
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(312) 644-2121 |
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Indicate by check mark whether the Registrant: (1) has filed all |
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YES x NO o |
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Indicate by check mark whether the Registrant is an accelerated filer |
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YES x NO o |
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183,671,467 shares of Common Stock and 41,085,459 shares of Class B Common Stock were |
CONSOLIDATED BALANCE SHEET (CONDENSED) AS OF SEPTEMBER 30, 2003 AND DECEMBER 31, 2002
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONDENSED) ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK ITEM 4 - CONTROLS AND PROCEDURES PART II - OTHER INFORMATION ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K SIGNATURES INDEX TO EXHIBITS Certification of Disclosure Pursuant to 17 C.F.R. 240.13a-14(a) or 15d-14(a) - William Wrigley, Jr. Certification of Disclosure Pursuant to 17 C.F.R. 240.13a-14(a) or 15d-14(a) - Ronald V. Waters Certification Pursuant to Section 1350 of Chapter 63 of Title 8 of the United States Code - William Wrigley, Jr. Certification Pursuant to Section 1350 of Chapter 63 of Title 8 of the United States Code - Ronald V. Waters III Table of Contents
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WM. WRIGLEY JR. COMPANY |
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Page |
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PART I - FINANCIAL INFORMATION |
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Item 1 - Financial Statements |
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Consolidated Statement of Earnings (Condensed) for the Three and Nine Months Ended September 30, 2003 and 2002 |
2 |
Consolidated Statement of Cash Flows (Condensed) for the Nine Months Ended September 30, 2003 and 2002 |
3 |
Consolidated Balance Sheet (Condensed) as of September 30, 2003 and December 31, 2002 |
4 |
Notes to Consolidated Financial Statements (Condensed) |
5 - 7 |
Item 2 - Management's Discussion and Analysis of Results of Operations and Financial Condition |
8 - 10 |
Item 3 - Quantitative and Qualitative Disclosures About Market Risk |
11 |
Item 4 - Controls and Procedures |
11 |
PART II - OTHER INFORMATION |
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Item 6 - Exhibits and Reports on Form 8-K |
12 |
SIGNATURES |
13 |
INDEX TO EXHIBITS |
14 |
Rule 13a-14(a) or 15a-14(a) Certifications |
15 - 16 |
Section 1350 Certifications |
17 - 18 |
Table of Contents
FORM 10-Q |
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Three Months Ended |
Nine Months Ended |
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2003 |
2002 |
2003 |
2002 |
||||||
Net Sales |
$ |
782,877 |
699,511 |
2,247,884 |
2,007,004 |
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Cost of Sales |
336,613 |
296,993 |
931,472 |
835,538 |
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Gross Profit |
446,264 |
402,518 |
1,316,412 |
1,171,466 |
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Selling, General and Administrative Expense |
278,803 |
261,014 |
826,567 |
742,899 |
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Operating Income |
167,461 |
141,504 |
489,845 |
428,567 |
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Investment Income |
1,953 |
2,326 |
6,354 |
6,163 |
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Other Expense |
(3,138) |
(876) |
(2,057) |
(6,668) |
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Earnings before Income Taxes |
166,276 |
142,954 |
494,142 |
428,062 |
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Income Taxes |
53,208 |
44,490 |
158,125 |
134,299 |
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Net Earnings |
$ |
113,068 |
98,464 |
336,017 |
293,763 |
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Net Earnings per average share |
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of Common Stock (basic and diluted) |
$ |
0.50 |
0.44 |
1.49 |
1.30 |
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Dividends declared per share |
|||||||||
of Common Stock |
$ |
0.22 |
0.205 |
0.66 |
0.615 |
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Average number of shares |
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outstanding for the period |
224,886 |
225,308 |
225,016 |
225,154 |
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All amounts in thousands except for per share values. |
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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) |
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Nine Months Ended |
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2003 |
2002 |
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OPERATING ACTIVITIES |
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Net Earnings |
$ |
336,017 |
293,763 |
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Adjustments to reconcile net earnings to net |
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cash provided by operating activities: |
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Depreciation |
80,394 |
63,506 |
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Loss on retirements of property, plant, |
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and equipment |
6,291 |
564 |
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(Increase) decrease in: |
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Accounts receivable |
(3,460) |
(20,396) |
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Inventories |
(33,652) |
(80,697) |
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Other current assets |
(6,270) |
(3,692) |
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Other assets and deferred charges |
4,970 |
(1,320) |
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Increase (decrease) in: |
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Accounts payable |
32,629 |
(13,092) |
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Accrued expenses |
5,341 |
54,795 |
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Income and other taxes payable |
142 |
10,880 |
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Deferred taxes |
4,806 |
(1,322) |
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Other noncurrent liabilities |
7,551 |
7,189 |
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Net cash provided by operating activities |
$ |
434,759 |
310,178 |
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INVESTING ACTIVITIES |
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Additions to property, plant, and equipment |
$ |
(116,012) |
(147,172) |
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Proceeds from retirements of property, plant and equipment |
3,930 |
4,687 |
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Purchases of short-term investments |
(28,273) |
(31,161) |
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Maturities of short-term investments |
32,720 |
33,697 |
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Net cash used in investing activities |
(107,635) |
(139,949) |
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FINANCING ACTIVITIES |
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Dividends paid |
(145,186) |
(135,064) |
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Net purchases of common stock |
(28,126) |
(5,649) |
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Net cash used in financing activities |
(173,312) |
(140,713) |
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Effect of exchange rate changes on cash and |
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cash equivalents |
849 |
4,606 |
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Net increase in cash and cash equivalents |
154,661 |
34,122 |
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Cash and cash equivalents at beginning of period |
279,276 |
307,785 |
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Cash and cash equivalents at end of period |
$ |
433,937 |
341,907 |
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SUPPLEMENTAL CASH FLOW INFORMATION |
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Income taxes paid |
$ |
146,913 |
132,675 |
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Interest paid |
$ |
1,437 |
1,290 |
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Interest and dividends received |
$ |
6,347 |
6,011 |
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All amounts in thousands. |
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Notes to financial statements beginning on page 5 are an integral part of these statements. | |||||||||
3 |
FORM 10-Q |
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(Unaudited) |
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Current assets: |
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Cash and cash equivalents |
$ |
433,937 |
279,276 |
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Short-term investments, at amortized cost |
22,453 |
25,621 |
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Accounts receivable |
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(less allowance for doubtful accounts; |
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Inventories - |
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Finished goods |
117,863 |
88,583 |
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Raw materials and supplies |
246,908 |
232,613 |
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364,771 |
321,196 |
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Other current assets |
55,816 |
47,720 |
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Deferred incomes taxes - current |
19,952 |
19,560 |
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Total current assets |
1,227,078 |
1,006,292 |
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Marketable equity securities at fair value |
14,731 |
19,411 |
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Deferred charges and other assets |
212,592 |
213,483 |
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Deferred income taxes - noncurrent |
34,717 |
33,000 |
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Property, plant and equipment, at cost |
1,622,103 |
1,491,749 |
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Less accumulated depreciation |
740,672 |
655,639 |
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Net property, plant, and equipment |
881,431 |
836,110 |
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Total assets |
$ |
2,370,549 |
2,108,296 |
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Current liabilities: |
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Accounts payable |
$ |
135,730 |
97,705 |
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Accrued expenses |
186,294 |
172,137 |
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Dividends payable |
49,450 |
46,137 |
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Income and other taxes payable |
65,392 |
66,893 |
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Deferred income taxes - current |
2,864 |
3,215 |
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Total current liabilities |
439,730 |
386,087 |
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Deferred income taxes - noncurrent |
77,373 |
70,589 |
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Other noncurrent liabilities |
140,493 |
129,044 |
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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 - 400,000 shares |
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Issued - |
191,341 shares at 9/30/03 |
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190,898 shares at 12/31/02 |
12,748 |
12,719 |
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Class B common stock (convertible) |
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Authorized - 80,000 shares |
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Issued and outstanding - |
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41,100 shares at 9/30/03 |
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41,543 shares at 12/31/02 |
2,748 |
2,777 |
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Additional paid-in capital |
7,587 |
4,209 |
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Retained earnings |
2,091,750 |
1,902,990 |
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Common stock in treasury, at cost - |
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(9/30/03 - 7,719 shares; 12/31/02 - 7,385 shares) |
(325,920) |
(297,156) |
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Accumulated other comprehensive income: |
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Foreign currency translation adjustment |
(82,749) |
(112,303) |
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Loss on derivative contracts |
(1,494) |
(853) |
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Unrealized holding gains on marketable |
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equity securities |
8,283 |
10,193 |
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Total accumulated other comprehensive income |
(75,960) |
(102,963) |
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Total stockholders' equity |
1,712,953 |
1,522,576 |
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Total liabilities & stockholders' equity |
$ |
2,370,549 |
2,108,296 |
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All amounts in thousands. |
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Notes to financial statements beginning on page 5 are an integral part of these statements. | ||||||||||
4 |
FORM 10-Q |
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1. |
The Consolidated Statement of Earnings (Condensed) for the three month and nine month periods ended September 30, 2003 and 2002, respectively, the Consolidated Statement of Cash Flows (Condensed) for the nine month periods ended September 30, 2003 and 2002, and the Consolidated Balance Sheet (Condensed) at September 30, 2003, are unaudited. In the Company's opinion, the accompanying financial statements reflect all normal and recurring adjustments necessary to present fairly the results for the periods and have been prepared on a basis consistent with the 2002 audited consolidated financial statements. These condensed financial statements should be read in conjunction with the 2002 consolidated financial statements and related notes which are an integral part thereof. Certain amounts recorded in 2002 have been reclassified to conform to the 2003 presentation. |
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2. |
Conformity with generally accepted accounting principles requires management to make estimates and assumptions when preparing financial statements that affect assets, liabilities, revenues and expenses. Actual results may vary from those estimates. |
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3. |
In September 2003, the Company renewed its $100 million unsecured line of credit. There were no borrowings outstanding under the line of credit at September 30, 2003. The line of credit expires in September 2004. |
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4. |
As of December 31, 2002, the Company adopted the disclosure requirements of Statement of Financial Accounting Standards (SFAS) No. 148, "Accounting for Stock-Based Compensation - Transition and Disclosure," which amends SFAS No. 123, "Accounting for Stock-Based Compensation." Under SFAS No. 148, the Company is required to disclose in the interim financial statements the method of accounting for stock-based employee compensation and the effect of the method used on reported results. In 2003, the Company continues to apply Accounting Principles Board Opinion (APB) No. 25 and related interpretations in accounting for stock-based compensation plans. APB No. 25 requires the use of the intrinsic value method, which measures compensation cost as the excess of the quoted market price of the stock at the date of grant over that amount an employee must pay to acquire the stock. As the exercise price equaled the fair market value on the date of grant, no compensation expense has been rec ognized for the Wrigley Stock Option program. The following table illustrates the effect on net earnings and earnings per share if the Company had applied the fair value recognition provisions of SFAS No. 123, to stock compensation plans. |
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Three Months Ended |
Nine Months Ended |
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9/30/2003 |
9/30/2002 |
9/30/2003 |
9/30/2002 |
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Net earnings as reported |
$ |
113,068 |
98,464 |
336,017 |
293,763 |
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Add: |
Stock-based compensation expense included in net earnings, net of tax |
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Deduct: |
Total stock-based compensation expense under fair value method for all awards, net of tax |
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Pro forma net earnings |
$ |
109,220 |
95,189 |
325,288 |
285,613 |
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Basic and diluted earnings per share |
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As reported |
$ |
0.50 |
0.44 |
1.49 |
1.30 |
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Pro forma |
$ |
0.49 |
0.42 |
1.45 |
1.27 |
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All amounts in thousands except per share values. |
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5 |
FORM 10-Q |
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5. |
An analysis of the cumulative foreign currency translation adjustment follows (in thousands of dollars). |
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(Increase) Decrease to |
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Third Quarter |
2003 |
2002 |
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Balance at July 1 |
$ |
86,938 |
125,795 |
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Translation adjustment for |
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the third quarter |
(4,189) |
9,395 |
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Balance at September 30 |
$ |
82,749 |
135,190 |
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Increase to |
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Nine Months |
2003 |
2002 |
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Balance at January 1 |
$ |
112,303 |
149,310 |
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Translation adjustment for |
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the first nine months |
(29,554) |
(14,120) |
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Balance at September 30 |
$ |
82,749 |
135,190 |
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6. |
An analysis of comprehensive income is provided below (in thousands of dollars). |
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Three Months Ended |
Nine Months Ended |
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2003 |
2002 |
2003 |
2002 |
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Net earnings |
$ |
113,068 |
98,464 |
336,017 |
293,763 |
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Changes in other comprehensive income, |
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before tax: |
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Foreign currency |
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Translation adjustments |
6,168 |
(8,324) |
28,875 |
12,031 |
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Unrealized holding losses on securities |
(1,692) |
(5,977) |
(2,939) |
(11,128) |
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Loss on derivative contracts |
(92) |
(1,880) |
(867) |
(2,869) |
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Changes in other comprehensive income, |
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before tax |
4,384 |
(16,181) |
25,069 |
(1,966) |
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Changes in income tax benefit (expense) |
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related to items of other comprehensive |
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income |
(1,356) |
1,610 |
1,934 |
6,884 |
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Changes in other comprehensive income, |
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net of tax |
3,028 |
(14,571) |
27,003 |
4,918 |
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Total comprehensive income |
$ |
116,096 |
83,893 |
363,020 |
298,681 |
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6 |
FORM 10-Q |
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7. |
Segment Information |
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Management organizes the Company's chewing gum and other confectionery business based on geographic regions. Information by geographic region is as follows (in thousands of dollars): |
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Net Sales |
Three Months Ended |
Nine Months Ended |
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2003 |
2002 |
2003 |
2002 |
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Americas, principally U.S. |
$ |
308,413 |
286,014 |
880,720 |
832,687 |
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EMEAI, principally Europe |
372,344 |
324,438 |
1,044,430 |
861,338 |
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Asia |
70,803 |
62,982 |
237,525 |
236,171 |
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Pacific |
26,985 |
20,007 |
72,796 |
61,326 |
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All Other |
4,332 |
6,070 |
12,413 |
15,482 |
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Net Sales |
$ |
782,877 |
699,511 |
2,247,884 |
2,007,004 |
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"All Other" net sales consists primarily of sales of gum base to customers and sales for Wrigley Healthcare. |
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Operating Income |
Three Months Ended |
Nine Months Ended |
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2003 |
2002 |
2003 |
2002 |
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Americas, principally U.S. |
$ |
78,272 |
72,215 |
219,200 |
210,198 |
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EMEAI, principally Europe |
105,738 |
91,399 |
290,611 |
248,570 |
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Asia |
17,989 |
12,775 |
67,708 |
60,455 |
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Pacific |
8,636 |
5,498 |
22,621 |
14,946 |
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All Other |
(43,174) |
(40,383) |
(110,295) |
(105,602) |
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Operating Income |
$ |
167,461 |
141,504 |
489,845 |
428,567 |
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"All Other" operating income includes corporate expenses such as costs related to research and development, information systems, and certain administrative functions and operating results for Wrigley Healthcare. In the third quarter 2002, "All Other" operating income also included certain costs connected with the exploration of a business combination with Hershey Foods Corporation. |
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7 |
FORM 10-Q |
RESULTS OF OPERATIONS |
Net Sales |
Net sales for the third quarter were $782.9 million, up $83.4 million or 12% versus the third quarter of 2002. Higher worldwide shipments increased sales revenue by 6%. Additionally, selected selling price increases, primarily in the International regions, increased sales by approximately 1%. Translation of stronger foreign currencies, primarily in Europe, to a weaker U.S. dollar increased sales by approximately 5%. |
Net sales for the first nine months were $2,247.9 million, up $240.9 million or 12% versus the first nine months of 2002. Higher worldwide shipments increased sales revenue by approximately 5%. In addition, selected selling price increases, primarily in the International regions, increased sales by approximately 1%. Translation of foreign currencies to a weaker U.S. dollar increased sales by approximately 6%. |
Cost of Sales and Gross Profit |
Cost of sales for the third quarter were $336.6 million, up $39.6 million or 13% versus the third quarter of 2002. Higher shipments increased cost of sales by 6%. Additionally, higher product costs increased cost of sales by 2%. Translation of foreign currencies to a weaker U.S. dollar increased cost of sales by 5%. |
Gross profit for the third quarter was $446.3 million, up $43.7 million or 11% from the same period last year. The gross profit margin was 57.0%, down slightly from 57.5% in the third quarter of 2002. |
Cost of sales for the first nine months was $931.5 million, up $95.9 million or 11% versus the first nine months of 2002. Higher shipments increased cost of sales by 5%. In addition, unfavorable product mix increased cost of sales by 1%. Translation of foreign currencies to a weaker U.S. dollar increased cost of sales by approximately 5%. |
Gross profit for the first nine months was $1,316.4 million, up $144.9 million or 12% from the same period last year. The gross profit margin was 58.6%, up from 58.4% in the first nine months of 2002. |
Selling, General and Administrative Expenses |
Consolidated selling and general administrative expenses (SG&A) for the third quarter were $278.8 million, up $17.8 million or 7% from the same period last year. Translation of stronger foreign currencies to a weaker U.S. dollar increased SG&A by 4%. Higher selling and other marketing expenses to support growth in key geographies increased SG&A by 3%. Brand support expenses were essentially unchanged compared to the prior period as increased merchandising and consumer sampling/promotion activity to support new product launches in the U.S. and higher worldwide brand research were offset by lower advertising spending in the U.S. General and administrative expenses were comparable to the prior period as higher investment in information technology and research and development were offset by the absence of costs connected with the third quarter 2002 exploration of a business combination with Hershey Foods Corporation. |
For the first nine months of 2003, SG&A expenses were $826.6 million, up $83.7 million or 11% from the same period last year. Translation of stronger foreign currencies to a weaker U.S. dollar increased SG&A by 5%. Higher selling and other marketing expenses increased SG&A by 3% due primarily to investment in the U.S. and key geographies in Europe. Higher brand support, driven primarily by increased worldwide merchandising and consumer promotion spending in support of new products, increased SG&A by 2%. Finally, general and administrative expenses increased SG&A by 1%, driven primarily by investments in information technology and research and development spending in 2003, mostly offset by the absence of costs connected with the 2002 exploration of a business combination with Hershey Foods Corporation. |
8 |
FORM 10-Q |
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As a percentage of consolidated net sales, the expenses were as follows: |
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Three Months Ended |
Nine Months Ended |
||||||||
2003 |
2002 |
2003 |
2002 |
||||||
Advertising |
11.8% |
13.3% |
12.2% |
13.6% |
|||||
Merchandising and Promotion/Other |
5.3% |
5.0% |
6.1% |
5.0% |
|||||
Total Brand Support |
17.1% |
18.3% |
18.3% |
18.6% |
|||||
Selling and Other Marketing |
10.1% |
9.6% |
10.1% |
9.7% |
|||||
General and Administrative |
8.4% |
9.4% |
8.4% |
8.7% |
|||||
Total |
35.6% |
37.3% |
36.8% |
37.0% |
|||||
"Other" expenses reported in merchandising and promotion include brand research spending and royalty fees paid to third parties. |
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Investment Income |
|||||||||
Investment income for the third quarter was $2.0 million, down $0.4 million or 16% versus the third quarter of last year. The decrease was primarily due to lower worldwide yields on cash and short-term investments. |
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Investment income for the first nine months of 2003 was $6.4 million, up $0.2 million or 3% versus the first nine months last year. The increase for the first nine months of 2003 reflect gains from the sale of marketable equity securities, which were partially offset by lower worldwide yields on cash and short-term investments. |
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Other Expense |
|||||||||
Other expense for the third quarter was $3.1 million, compared to other expense of $0.9 million for the third quarter last year. The increase was primarily due to foreign currency transaction losses, mostly caused by a weaker U.S. dollar. |
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Other expense for the first nine months of 2003 was $2.1 million, compared to other expense of $6.7 million for the first nine months of last year. The improved results were driven primarily by market driven portfolio gains in 2003, compared with losses in 2002, associated with the cash surrender value of company-owned life insurance, and other non-recurring gains. |
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Income Taxes |
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Income taxes for the third quarter were $53.2 million, up $8.7 million or 20% from the third quarter of 2002. Pretax earnings were $166.3 million, an increase of $23.3 million or 16%. The consolidated effective tax rate was 32.0% compared to 31.1% for the third quarter last year. Income taxes for the first nine months were $158.1 million, up $23.8 million or 18% from the first nine months 2002. Pretax earnings were $494.1 million, an increase of $66.1 million or 15%. The consolidated effective tax rate was 32.0%, compared to 31.4% for the same period last year. The increase in the effective tax rate, for both the quarter and the first nine months, was mainly due to the mix of pretax earnings and higher U.S. taxes on repatriation of foreign earnings. |
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Net Earnings |
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Consolidated net earnings for the third quarter of 2003 totaled $113.1 million or $0.50 per share compared to last year's net earnings of $98.5 million or $0.44 per share for the same period. |
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Consolidated net earnings for the first nine months of 2003 totaled $336.0 million or $1.49 per share compared to last year's net earnings of $293.8 million or $1.30 per share for the same period. |
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LIQUIDITY AND CAPITAL RESOURCES |
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Operating Cash Flow and Current Ratio |
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Net cash provided by operating activities for the first nine months of 2003 was $434.8 million compared with $310.2 million for the same period in 2002. The change in net cash provided by operating activities is due to increased net earnings and reduced levels of working capital investment in 2003 versus 2002. The Company had a current ratio (current assets divided by current liabilities) in excess of 2.7 to 1 on September 30, 2003 and 2.6 on December 31, 2002. |
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9 |
FORM 10-Q |
Additions to Property, Plant and Equipment |
Capital expenditures for the first nine months of 2003 were $116.0 million compared to $147.2 million in 2002. The decrease in 2003 versus 2002 was due to lower spending on worldwide manufacturing capacity and investments in information technology. For the full year 2003, capital expenditures are expected to be slightly below 2002 levels and also planned to be funded from the Company's cash flow from operations. |
10 |
FORM 10-Q |
Item 3 - Quantitative and Qualitative Disclosures About Market Risk |
Market Risk |
Inherent in the Company's operations are certain risks related to foreign currency, interest rates, and the equity markets. The Company identifies these risks and mitigates their financial impact through its corporate policies and hedging activities. The Company believes that movements in market values of financial instruments used to mitigate identified risks are not expected to have a material impact on future earnings, cash flows, or reported fair values. |
Forward-Looking Statements |
Statements contained in this report may be considered to be forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward looking statements. The Company wishes to ensure that such statements are accompanied by meaningful cautionary statements to comply with the safe harbor under the Act. The Company notes that a variety of factors could cause actual results to differ materially from the anticipated results or expectations expressed in these forward-looking statements. |
Important factors that may influence the operations, performance, development and results of the Company's business include global and local business and economic conditions; currency exchange and interest rates; ingredients, labor, and other operating costs; insufficient or under utilization of manufacturing capacity; destruction of all or part of manufacturing facilities; labor strikes or unrest; political or economic instability in local markets; war or acts of terrorism; competition and other industry trends; retention of preferred retail space; effective marketing campaigns or new product introductions; consumer preferences, spending patterns, and demographic trends; legislation and governmental regulation; and accounting policies and practices. |
We caution the reader that the list of factors may not be exhaustive. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise. |
Item 4 - Controls and Procedures |
Disclosure Control and Procedures |
As of September 30, 2003, the Company's Chief Executive Officer and Chief Financial Officer conducted an evaluation of the effectiveness of the Company's disclosure controls and procedures. Based on that evaluation, the Chief Executive officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of September 30, 2003. Additionally, there have been no significant changes in the Company's internal controls that could significantly affect these controls subsequent to September 30, 2003, including any corrective actions with regard to significant deficiencies and material weaknesses. |
11 |
FORM 10-Q |
|
Item 6 - Exhibits and Reports on Form 8-K |
|
(a) |
Exhibits reference is made to the Exhibit Index on page 14. |
(b) |
On July 22, 2003, the Company filed a report on Form 8-K. The report contained a press release issued by the Company, regarding the Company's result of operations and financial condition for the fiscal quarter ended June 30, 2003. |
12 |
FORM 10-Q |
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Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. |
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WM. WRIGLEY JR. COMPANY |
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(Registrant) |
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By: |
/s/ Reuben Gamoran |
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Reuben Gamoran |
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Date: |
11/14/03 |
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13 |
WM. WRIGLEY JR. COMPANY AND WHOLLY OWNED ASSOCIATED COMPANIES |
|
INDEX TO EXHIBITS |
|
Exhibit |
|
3. |
Articles of Incorporation and By-laws. |
(i). |
Certificate of Incorporation of the Registrant. The Registrant's Amended and Restated Certificate of Incorporation, effective from March 5, 2002 is incorporated by reference to Exhibit 3(i) of the Company's Quarterly Report on Form 10-Q filed for the fiscal quarter ended March 31, 2002. |
(ii). |
By-laws of the Registrant. The Registrant's Amended and Restated By-laws effective March 5, 2002 is incorporated by reference to Exhibit 3(ii) of the Company's Quarterly Report on Form 10-Q filed for he fiscal quarter ended March 31, 2002. |
4. |
Instruments defining the rights of security holders. The Stockholder Rights Plan is incorporated by reference to Exhibit 4.1 of the Company's Report on Form 8-K filed June 5, 2001. |
10. |
Material Contracts |
10(a). |
Non-Employee Directors' Death Benefit Plan. Incorporated by reference to the Company's Form 10-K filed for the fiscal year ended December 31, 1994. |
10(b). |
Senior Executive Insurance Plan. Incorporated by reference to the Company's Form 10-K fled for the fiscal year ended December 31, 1995. |
10(c). |
Supplemental Retirement Plan. Incorporated by reference to the Company's Form 10-K filed for the fiscal year ended December 31, 1995. |
10(d). |
Deferred Compensation Plan for Non-Employee Directors. Incorporated by reference to the Company's Form 10-K filed for the fiscal year ended December 31, 1995. |
10(e). |
Stock Deferral Plan For Non-Employee Directors (formerly Stock Retirement Plan For Non-Employee Directors) as amended is incorporated by reference to Exhibit 10(e) of the Company's Annual Report on Form 10-K fled for the fiscal year ended December 31, 2002. |
10(f). |
Wm. Wrigley Jr. Company 1997 Management Incentive Plan. The Registrant's Amended Management Incentive Plan, effective from March 5, 2002, is incorporated by reference to the Company's Quarterly Report on Form 10-Q filed for the fiscal quarter ended March 31, 2002. |
10(g). |
Forms of Change-in-Control Severance Agreement. Incorporated by reference to Exhibits 10(h) and 10(i) to the Company's Quarterly Report on Form 10-Q field for the fiscal quarter ended September 30, 2001. |
31. |
Rule 13a-14(a)/15a-14(a) Certifications |
31(a). |
Certification of Mr. William Wrigley, Jr., President and Chief Executive Officer |
31(b). |
Certification of Mr. Ronald V. Waters, Senior Vice President and Chief Financial Officer |
32. |
Section 1350 Certifications |
32(a). |
Certification of Mr. William Wrigley, Jr., President and Chief Executive Officer |
32(b). |
Certification of Mr. Ronald V. Waters, Senior Vice President and Chief Financial Officer |
For copies of Exhibits not attached hereto, the Registrant will furnish them upon request and upon payment to the Registrant of a fee in the amount of $20.00 representing reproduction and handling costs. |
|
14 |
31. |
RULE 13A-14(A) OR 15A-14(A) CERTIFICATIONS |
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31(a). |
Certification of Disclosure Pursuant to 17 C.F.R. 240.13a-14(a) or 15a-14(a) |
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I, William Wrigley, Jr., certify that: |
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1. |
I have reviewed this quarterly report on Form 10-Q of the Wm. Wrigley Jr. Company; |
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2. |
Based on my knowledge, this quarterly report does not contain any untrue statement or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; |
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3. |
Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; |
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4. |
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 and 15d-15) for the registrant and we have: |
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a) |
designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; |
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b) |
evaluated the effectiveness of the registrant's disclosure controls and procedures as of September 30, 2003 (the "Evaluation Date"); and |
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c) |
presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date. |
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5. |
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): |
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a) |
all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and |
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b) |
fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control; and |
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6. |
The registrant's other certifying officer and I have indicated in this quarterly report whether or not there were significant changes in internal controls that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. |
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Date: |
November 14, 2003 |
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/s/William Wrigley, Jr. |
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William Wrigley, Jr. |
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15 |
31. |
RULE 13A-14(A) OR 15A-14(A) CERTIFICATIONS |
|||||
31(a). |
Certification of Disclosure Pursuant to 17 C.F.R. 240.13a-14(a) or 15a-14(a) |
|||||
I, Ronald V. Waters, certify that: |
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1. |
I have reviewed this quarterly report on Form 10-Q of the Wm. Wrigley Jr. Company; |
|||||
2. |
Based on my knowledge, this quarterly report does not contain any untrue statement or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; |
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3. |
Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; |
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4. |
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 and 15d-15) for the registrant and we have: |
|||||
a) |
designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; |
|||||
b) |
evaluated the effectiveness of the registrant's disclosure controls and procedures as of September 30, 2003 (the "Evaluation Date"); and |
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c) |
presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date. |
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5. |
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): |
|||||
a) |
all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and |
|||||
b) |
fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control; and |
|||||
6. |
The registrant's other certifying officer and I have indicated in this quarterly report whether or not there were significant changes in internal controls that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. |
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Date: |
November 14, 2003 |
|||||
/s/Ronald V. Waters |
||||||
Ronald V. Waters |
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16 |
(32) |
SECTION 1350 CERTIFICATIONS |
|||
(32)(a) |
Certification of Mr. William Wrigley, Jr., pursuant to Section 1350 of Chapter 63 of Title 8 of the United States Code |
|||
I, William Wrigley, Jr., the Chief Executive Officer of Wm. Wrigley Jr. Company (the "Company"), certify that to the best of my knowledge: |
||||
(i) |
The Quarterly Report of the company on Form 10-Q dated November 14, 2003 for the period ended September 30, 2003, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
|||
(ii) |
The information contained in the said Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company. |
|||
/s/William Wrigley, Jr. |
||||
William Wrigley, Jr. |
||||
Dated the 14th day of November, 2003 |
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17 |
(32) |
SECTION 1350 CERTIFICATIONS |
|||
(32)(a) |
Certification of Mr. Ronald V. Waters, pursuant to Section 1350 of Chapter 63 of Title 8 of the United States Code |
|||
I, Ronald V. Waters, the Chief Financial Officer of Wm. Wrigley Jr. Company (the "Company"), certify that to the best of my knowledge: |
||||
(i) |
the Quarterly Report of the company on Form 10-Q dated November 14, 2003 for the period ended September 30, 2003, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
|||
(ii) |
the information contained in the said Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company. |
|||
/s/Ronald V. Waters |
||||
Ronald V. Waters |
||||
Dated the 14th day of November, 2003 |
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18 |