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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 2, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Commission file Number 1-10585
CHURCH & DWIGHT CO., INC.
(Exact name of registrant as specified in its charter)
Delaware 13-4996950
(State of incorporation) (I.R.S. Employer Identification No.)
469 North Harrison Street, Princeton, N.J. 08543-5297
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code: (609) 683-5900
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 twelve 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
As of August 10, 1999, there were 19,442,222 shares of Common Stock outstanding.
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1 of 12
<PAGE>
PART I - FINANCIAL INFORMATION
CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------------------ -----------------------------
July 2, June 26, July 2, June 26,
(In thousands, except per share data) 1999 1998 1999 1998
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Sales $186,365 $173,534 $361,073 $325,545
Cost of sales 102,453 94,944 200,043 179,337
----------------------------- ------------------------------
Gross profit 83,912 78,590 161,030 146,208
Advertising, consumer and trade promotion expenses 47,296 48,707 91,868 89,502
Selling, general and administrative expenses 21,205 22,046 42,229 40,415
Gain on sale of mineral rights - - (11,772) -
Impairment and other items 435 - 5,755 -
Sale of Technology - (3,500) - (3,500)
----------------------------- ------------------------------
Income from Operations 14,976 11,337 32,950 19,791
Equity in earnings of affiliates 1,929 1,739 3,949 2,963
Investment income 343 281 715 590
Other income/(expense) 65 (169) 167 (135)
Interest expense (689) (600) (1,294) (1,172)
----------------------------- ------------------------------
Income before taxes 16,624 12,588 36,487 22,037
Income taxes 5,959 4,715 13,457 8,268
Minority Interest 209 - 209 -
----------------------------- ------------------------------
Net Income 10,456 7,873 22,821 13,769
Retained earnings at beginning of period 228,662 201,192 218,618 197,622
----------------------------- ------------------------------
239,118 209,065 241,439 211,391
Dividends paid 2,328 2,329 4,649 4,655
----------------------------- ------------------------------
Retained earnings at end of period $236,790 $206,736 $236,790 $206,736
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
Weighted average shares outstanding - Basic 19,397 19,398 19,375 19,397
Weighted average shares outstanding - Diluted 20,424 20,064 20,392 19,990
-------------------------------------------------------------------------------------------------------------------------
Earnings Per Share:
Net income per share - Basic $.54 $.41 $1.18 $.71
Net income per share - Diluted $.51 $.39 $1.12 $.69
-------------------------------------------------------------------------------------------------------------------------
Dividends Per Share: $.12 $.12 $.24 $.24
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</TABLE>
2 of 12
<PAGE>
CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
(Dollars in thousands) July 2, 1999 Dec. 31, 1998
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Assets
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Current Assets
Cash and cash equivalents $17,945 $16,189
Short-term investments 5,000 2,042
Accounts receivable, less allowances of $1,573 and $1,579 67,406 65,014
Inventories (Note 2) 71,824 60,285
Current portion of note receivable 7,673 7,485
Deferred income taxes 10,324 10,535
Prepaid expenses 6,460 5,258
--------------- ---------------
Total Current Assets 186,632 166,808
- ------------------------------------------------------------------------------------------------------------------
Property, Plant and Equipment (Note 3) 171,975 161,712
Note Receivable from Joint Venture - 2,384
Equity Investment in Affiliates 18,452 27,751
Long-Term Supply Contracts 4,511 4,918
Intangibles 33,175 25,142
Other Assets 5,879 2,723
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Total Assets $420,624 $391,438
- ------------------------------------------------------------------------------------------------------------------
Liabilities and Stockholders' Equity
- ------------------------------------------------------------------------------------------------------------------
Current Liabilities
Short-term borrowings $18,928 $ 18,500
Accounts payable and accrued expenses 100,388 98,069
Current portion of long-term debt 1,027 685
Income taxes payable 9,178 6,983
--------------- ---------------
Total Current Liabilities 129,521 124,237
- ------------------------------------------------------------------------------------------------------------------
Long-Term Debt 31,758 29,630
Deferred Income Taxes 20,061 21,178
Deferred Liabilities 9,714 6,785
Nonpension Postretirement and Postemployment Benefits 15,401 14,770
Minority Interest 3,133 -
Commitments and Contingencies (Note 12)
Stockholders' Equity
Preferred Stock - $1 par value
Authorized 2,500,000 shares, none issued - -
Common Stock - $1 par value
Authorized 100,000,000 shares, issued 23,330,494 shares 23,330 23,330
Additional paid-in capital 39,968 36,502
Retained earnings 236,790 218,618
Accumulated other comprehensive income (loss) (4,578) (782)
--------------- ---------------
295,510 277,668
Less common stock in treasury, at cost -
3,904,738 shares in 1999 and 4,019,505 shares in 1998 (83,925) (82,281)
Due from officer (549) (549)
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Total Stockholders' Equity 211,036 194,838
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Total Liabilities and Stockholders' Equity $420,624 $391,438
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</TABLE>
3 of 12
<PAGE>
CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
<TABLE>
<CAPTION>
Six Months Ended
--------------------------------------
(Dollars in thousands) July 2, 1999 June 26, 1998
- --------------------------------------------------------------------------------------------------------------------
Cash Flow From Operating Activities
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Income $22,821 $13,769
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation, depletion and amortization 9,530 8,265
Deferred income taxes (553) 313
Equity in income from affiliates (3,949) (2,963)
Gain on sale of mineral rights (11,772) -
Disposal of fixed assets 4,600 -
Other 159 56
Change in assets and liabilities:
(Increase)/decrease in short-term investments (2,958) 996
(Increase) in accounts receivable (284) (26,090)
(Increase) in inventories (8,277) (2,608)
(Increase) in prepaid expenses (1,080) (242)
(Decrease)/increase in accounts payable (720) 8,961
Increase in income taxes payable 3,441 1,918
Increase in other liabilities 3,770 2,055
- --------------------------------------------------------------------------------------------------------------------
Net Cash Provided By Operating Activities 14,728 4,430
Cash Flow From Investing Activities
- --------------------------------------------------------------------------------------------------------------------
Additions to property, plant and equipment (13,514) (13,206)
Proceeds from sale of mineral rights 16,762 -
Purchase of new product lines - (7,035)
Investment in affiliates (9,184) -
Distributions from unconsolidated affiliates 2,302 2,689
Purchase of other assets (3,002) (1,526)
Proceeds from repayment of notes receivable 2,196 2,023
- --------------------------------------------------------------------------------------------------------------------
Net Cash (Used In) Investing Activities (4,440) (17,055)
Cash Flow From Financing Activities
- --------------------------------------------------------------------------------------------------------------------
Short-term debt (repayments) borrowing (1,326) 1,500
Long-term debt (repayments) borrowing (2,622) 18,500
Payment of cash dividends (4,649) (4,655)
Proceeds from stock options exercised 4,487 2,026
Purchase of treasury stock (4,422) (4,456)
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Net Cash (Used In) Provided By Financing Activities (8,532) 12,915
Net Change In Cash and Cash Equivalents 1,756 290
Cash And Cash Equivalents At Beginning Of Year 16,189 14,949
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Cash And Cash Equivalents At End Of Period $17,945 $15,239
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</TABLE>
4 of 12
<PAGE>
CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The consolidated balance sheet as of July 2, 1999, the consolidated
statements of income and retained earnings for the three and six months ended
July 2, 1999 and June 26, 1998, and the consolidated statements of cash flow for
the six months ended July 2, 1999 and June 26, 1998 have been prepared by the
Company without audit. In the opinion of management, all adjustments (which
include only normal recurring adjustments, except for the item in Note 7)
necessary to present fairly the financial position, results of operations and
cash flow at July 2, 1999 and for all periods presented have been made.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted. It is suggested that these condensed
consolidated financial statements be read in conjunction with the financial
statements and notes thereto included in the Company's December 31, 1998 annual
report to shareholders. The results of operations for the period ended July 2,
1999 are not necessarily indicative of the operating results for the full year.
<TABLE>
<CAPTION>
2. Inventories consist of the following: July 2, Dec. 31,
(in thousands) 1999 1998
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Raw materials and supplies $21,280 $16,278
Work in process 77 160
Finished goods 50,467 43,847
--------------- --------------
$71,824 $60,285
- ----------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
3. Property, Plant and Equipment consist of the following: July 2, Dec. 31,
(in thousands) 1999 1998
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<S> <C> <C>
Land $ 5,758 $ 4,896
Buildings and improvements 78,783 73,529
Machinery and equipment 173,556 173,595
Office equipment and other assets 14,719 14,347
Software 5,421 5,311
Mineral rights 438 5,931
Construction in progress 27,030 14,148
--------------- --------------
305,705 291,757
Less accumulated depreciation and amortization 133,730 130,045
--------------- --------------
Net Property, Plant and Equipment $171,975 $161,712
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</TABLE>
5 of 12
<PAGE>
CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
4. Equity Investment In Joint Venture
The following table reflects summarized financial information for the Armand
Products Company joint venture. The Company accounts for its 50 percent interest
in the joint venture under the equity method. Product and services are provided
to the Armand Products Company by the joint venture partners at cost. As a
result, the following information would not be indicative of the financial
position or results of operation had the joint venture operated on a stand-alone
basis.
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
--------------------- ------------------
July 2, June 26, July 2, June 26,
(in thousands) 1999 1998 1999 1998
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net sales $9,436 $10,653 $19,327 $19,895
Gross profit 3,420 3,894 7,129 7,108
Net income 2,736 3,147 5,714 5,571
Company's share in net income 1,368 1,573 2,857 2,785
Elimination of Company's share of intercompany
interest expense 61 100 130 210
----------------------- --------------------------
Equity in joint venture income $1,429 $1,673 $2,987 $2,995
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
5. Earnings Per Share
Basic EPS is calculated based on income available to common shareholders and the
weighted-average number of shares outstanding during the reported period.
Diluted EPS includes additional dilution from potential common stock issuable
pursuant to the exercise of stock options outstanding.
6. Gain on Sale of Mineral Rights
As previously announced, the Company sold most of its trona mineral leases in
Wyoming for approximately $22.5 million to Solvay Minerals, Inc., resulting in a
gain of approximately $11.8 million. The terms of the note recorded as part of
the sale included annual payments beginning on January 5, 1999 and concluding on
January 5, 2011. The Company received its initial payment of $3.0 million and
assigned and sold the note to an insurance company for the present value of the
remaining payments for approximately $13.9 million.
7. Impairment and Other Items
As previously announced, the Company recorded a pre-tax charge of $5.8 million
for impairment and certain other items relating to a planned plant shutdown late
in 1999 which includes the rationalization of both toothpaste and powder laundry
detergent production. Components of the impairment charge and the outstanding
reserve balances included in accounts payable and accrued expenses consist of
the following:
<TABLE>
<CAPTION>
Impairment Adjustment Reserves at
(In thousands) Charge (Disposals/Payments) July 2, 1999
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Fixed asset impairment $4,612 $(4,612) $ -
Severance and other charges 1,143 180 1,323
-----------------------------------------------------
$5,755 $(4,432) $1,323
</TABLE>
6 of 12
<PAGE>
8. Segment Information
Segment sales and operating profit for the second quarter and year to date 1999
and 1998 are as follows:
<TABLE>
<CAPTION>
Unconsolidated
(In thousands) Consumer Specialty Affiliates Corporate Total
- ----------------------------------------------------------------------------------------------------------------------
Net Sales
<S> <C> <C> <C> <C> <C>
Second quarter 1999 $148,755 $43,857 $(6,247) - $186,365
Second quarter 1998 142,590 36,271 (5,327) - 173,534
Year to date 1999 291,863 81,767 (12,557) - 361,073
Year to date 1998 266,957 68,536 (9,948) - 325,545
Operating Profit
Second quarter 1999 9,341 8,021 (1,951) (435) 14,976
Second quarter 1998 7,704 5,343 (1,710) - 11,337
Year to date 1999 16,862 13,988 (3,917) 6,017 32,950
Year to date 1998 12,930 9,771 (2,910) - 19,791
</TABLE>
<TABLE>
<CAPTION>
Product line net sales data for the second quarter and year to date periods are as follows:
- ----------------------------------------------------------------------------------------------------------------------
Laundry and Oral and Uncon-
Household Personal Deodor- Specialty Animal Specialty solidated
Cleaners Care izing Chemicals Nutrition Cleaners Affiliates Total
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2nd Qtr 1999 $68,588 $40,950 $39,217 $26,460 $15,165 $2,232 $(6,247) $186,365
2nd Qtr 1998 67,382 41,776 33,432 21,240 11,930 3,101 (5,327) 173,534
YTD 1999 137,618 81,801 72,444 47,128 30,169 4,470 (12,557) 361,073
YTD 1998 131,208 75,708 60,041 40,324 22,224 5,988 (9,948) 325,545
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
9. Comprehensive Income
The following table presents the Company's Comprehensive Income for the three
and six months ending July 2, 1999 and June 26, 1998.
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------ ----------------
July 2, June 26, July 2, June 26,
(in thousands) 1999 1998 1999 1998
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Income $10,456 $7,873 $22,821 $13,769
Other Comprehensive Income, net of tax:
Foreign exchange translation adjustments (3,683) (163) (3,796) (62)
--------------------- -------------------------
Comprehensive Income $6,773 $7,710 $19,025 $13,707
- ----------------------------------------------------------------------------------------------------------
</TABLE>
10. Acquisition
On May 7, 1999, the Company exercised its option and purchased an additional 35%
interest in two Brazilian bicarbonate/carbonate-related chemical companies. This
brings the Company's total ownership to 75%. The acquisition, costing
approximately $9.1 million, had approximately $4.8 million allocated to Goodwill
and was financed by short-term borrowing. An additional amount of approximately
$2.0 million may be payable in March, 2001, contingent upon the performance of
the two Brazilian companies.
7 of 12
<PAGE>
11. Subsequent Events
Fluid Note Receivable
- ---------------------
In conjunction with the July 1998 purchase of the Lakewood, New Jersey,
manufacturing facility, the Company loaned Fluid Packaging Co., Inc. $3.0
million at an interest rate of 8% per annum. The note was payable no later than
July 15, 1999 and is secured by a pledge of and security interest in 65% of the
capital stock of Allied Mexico, S.A. de C.V., a wholly-owned subsidiary of Fluid
Packaging.
The note was not paid by its maturity date. The Company is proceeding toward the
resolution of the matter, leading to the collection of the note. After reviewing
the value of the collateral, the Company believes the carrying value of the note
is fully recoverable.
Stock Split
- -----------
On July 29, 1999, the Company announced a 2 for 1 stock split. The shares
resulting from the stock split will be distributed on September 1, 1999, to
stockholders of record at close of business on August 10, 1999. Pro forma
earnings and dividends per share, giving retroactive effect to the 2 for 1 split
for the three and six month periods ending July 1, 1999 and June 26, 1998, are
as follows:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
-------------------- --------------------
July 2, June 26, July 2, June 26,
(In thousands, except per share data) 1999 1998 1999 1998
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Weighted average shares outstanding - Basic 38,794 38,796 38,750 38,794
Weighted average shares outstanding - Diluted 40,828 40,128 40,784 39,980
- -------------------------------------------------------------------------------------------------------------------
Earnings Per Share:
Net income per share - Basic $.270 $.205 $.590 $.355
Net income per share - Diluted $.255 $.195 $.560 $.345
- -------------------------------------------------------------------------------------------------------------------
Dividends Per Share: $.060 $.060 $.120 $.120
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
Financial information contained elsewhere in these financial statements has not
been adjusted to reflect the impact of the stock split.
12. Contingencies
The Company, in the ordinary course of its business, is the subject of, or a
party to, various pending or threatened legal actions. The Company believes that
any ultimate liability arising from these actions will not have a material
adverse effect on its consolidated financial statements.
13. Reclassification
Certain prior year amounts have been reclassified in order to conform with the
current year presentation.
8 of 12
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
Results of Operations
- ---------------------
For the quarter ended July 2, 1999, net income was $10.5 million, equivalent to
basic earnings of $.54 per share, from $7.9 million or $.41 per share, in last
year's second quarter. Diluted earnings were $.51 per share compared to $.39 per
share last year. This year's second quarter included a $.4 million impairment
charge and last year's included a $3.5 million gain from the sale of technology;
excluding these one time items, diluted earnings would have been $.52 per share
compared to $.28 per share last year. For the first six months of 1999, net
income was $22.8 million or basic earnings of $1.18 per share compared to $13.8
million or $.71 per share last year. Diluted earnings were $1.12 per share
compared to $.69 per share last year. The current year results include a net
pre-tax gain of $6.0 million or $.18 per share from two previously announced
events - the sale of Trona mineral reserves in January, less an impairment
charge related to a planned plant shutdown later in 1999. Excluding the one-time
items in both years, diluted earnings would have been $.94 per share this year
compared to $.58 per share last year.
Net sales for the quarter increased by 7.4% to $186.4 million from $173.5
million in the same period last year. Consumer product sales increased 4.3%, led
by higher sales of the Deodorizing product line. Last year's results reflected a
27% increase in consumer product sales relating to pipeline shipments of two
major new products introduced in late 1997 and early 1998 - ARM & HAMMER(R)
SUPER SCOOP(TM) Cat Litter and ARM & HAMMER DENTAL CARE Gum. Specialty products
sales were higher due to strong sales of animal nutrition products and the
inclusion of QGN - the Company's Brazilian subsidiary, whose results are now
consolidated.
Net sales for the first six months of 1999 were $361.1 million as compared to
$325.5 million last year, a 10.9% increase. This increase is due to the same
factors as the current quarter.
The Company's gross margin was 45.0% and 44.6% for the quarter and six month
period, respectively. This compares with 45.3% and 44.9% for the same periods
last year. The primary reasons for the decline were the use of co-packers to
meet higher than expected order requirements and the shift in the high margin
specialty cleaning business from having its results fully consolidated in 1998
to being accounted for as an equity investment in 1999. These items were
partially offset by a favorable product sales mix.
Advertising, consumer and trade promotion expenses were lower by $1.4 million in
the current quarter but $2.4 million higher in the six month period. The
reduction in the current quarter is due to lower expenses in support of ARM &
HAMMER DENTAL CARE Gum, which was introduced in 1998, partially offset by higher
expenses associated with the Laundry and Household Cleaner and Deodorizing
product lines. The six month increase is due to the higher promotion expenses in
support of Deodorizing products and Laundry and Household Cleaners, partially
offset by lower Oral and Personal Care expenses.
Selling, general and administrative expenses decreased $.8 million in the
current quarter but increased $1.8 million for the six month period. The current
quarter reduction is primarily due to the reorganization of the specialty
cleaning business and lower outside service costs, particularly in information
systems, partially offset by lower software capitalization. The increase for the
six month period is primarily due to higher personnel-related costs, outside
service costs, and lower software capitalization. These increases were partially
offset by the reorganization of the specialty cleaning business.
Earnings from affiliates increased due to the formation of the ArmaKleen Company
as a 50% owned affiliate, which product lines prior to this year were fully
consolidated.
Both investment income and interest expense increased slightly in both the three
and six month periods.
The effective tax rate for the first half was 36.9%, down from 37.5% from last
year. The decrease in the rate is a result of a lower effective tax rate
associated with the Company's Brazilian subsidiary.
Minority interest represents 25% of the net income associated with the Company's
Brazilian subsidiary.
9 of 12
<PAGE>
Liquidity and Capital Resources
- -------------------------------
The Company considers cash and short-term investments as the principal
measurement of its liquidity. At July 2, 1999, cash, including cash equivalents
and short-term investments totaled $22.9 million as compared to $18.2 million at
December 31, 1998.
During the first half of 1999, the Company generated $14.7 million of cash flow
from operating activities, received $16.8 million from the sale of mineral
rights and received $4.5 million from stock options exercised. Significant
expenditures include additions to property, plant and equipment of $13.5
million, additional investments in subsidiaries of $9.2 million, the payment of
cash dividends of $4.6 million, the purchase of treasury stock of $4.4 million
and the partial repayment of debt of $3.9 million.
Year 2000 Update
- ----------------
As outlined in the 10-K for the year ended December 31, 1998, the Company has
developed plans to address the possible exposures related to the impact on its
computer systems of the Year 2000. These plans have not changed materially in
terms of scope or estimated costs to complete, and are progressing according to
previously identified time schedules.
Total expenditures incurred on Y2K-related projects through the first half of
1999 are estimated at approximately $12.0 million. While the costs of the
remaining required changes is not yet fully known, we expect the total estimated
costs of the Y2K-related projects to be approximately $13.5 million.
Fluid Note Receivable
- ---------------------
In conjunction with the July 1998 purchase of the Lakewood, New Jersey,
manufacturing facility, the Company loaned Fluid Packaging Co., Inc. $3.0
million at an interest rate of 8% per annum. The note was payable no later than
July 15, 1999 and is secured by a pledge of and security interest in 65% of the
capital stock of Allied Mexico, S.A. de C.V., a wholly-owned subsidiary of Fluid
Packaging.
The note was not paid by its maturity date. The Company is proceeding toward the
resolution of the matter, leading to the collection of the note. After reviewing
the value of the collateral, the Company believes the carrying value of the note
is fully recoverable.
PART II - Other Information
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
(a) Exhibits
(11) Computation of earnings per share
(27) Financial Data Schedule
(b) No reports on Form 8-K were filed for the three months ended July
2, 1999.
10 of 12
<PAGE>
CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES
EXHIBIT 11 - Computation of Earnings Per Share
(In thousands except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------------- --------------------------
July 2, June 26, July 2, June 26,
1999 1998 1999 1998
------------ ------------ ------------ ------------
BASIC:
<S> <C> <C> <C> <C>
Net Income $10,456 $7,873 $22,821 $13,769
Weighted average shares outstanding 19,397 19,398 19,375 19,397
Basic earnings per share $.54 $.41 $1.18 $.71
DILUTED:
Net Income $10,456 $7,873 $22,821 $13,769
Weighted average shares outstanding 19,397 19,398 19,375 19,397
Incremental shares under stock option plans 1,027 666 1,017 593
------------ ------------ ------------ ------------
Adjusted weighted average shares outstanding 20,424 20,064 20,392 19,990
------------ ------------ ------------ ------------
Diluted earnings per share $.51 $.39 $1.12 $.69
</TABLE>
11 of 12
<PAGE>
SIGNATURES
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.
CHURCH & DWIGHT CO., INC.
------------------------
(REGISTRANT)
DATE: August 11, 1999 Zvi Eiref
--------------- ---------
ZVI EIREF
VICE PRESIDENT FINANCE AND
CHIEF FINANCIAL OFFICER
DATE: August 11, 1999 Gary P. Halker
--------------- --------------
GARY P. HALKER
VICE PRESIDENT, CONTROLLER AND
CHIEF INFORMATION OFFICER
12 of 12
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUL-02-1999
<CASH> 17,945
<SECURITIES> 5,000
<RECEIVABLES> 68,979
<ALLOWANCES> 1,573
<INVENTORY> 71,824
<CURRENT-ASSETS> 186,632
<PP&E> 305,705
<DEPRECIATION> 133,730
<TOTAL-ASSETS> 420,624
<CURRENT-LIABILITIES> 129,521
<BONDS> 31,758
0
0
<COMMON> 23,330
<OTHER-SE> 187,706
<TOTAL-LIABILITY-AND-EQUITY> 420,624
<SALES> 361,073
<TOTAL-REVENUES> 361,073
<CGS> 200,043
<TOTAL-COSTS> 200,043
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 100
<INTEREST-EXPENSE> 1,294
<INCOME-PRETAX> 36,487
<INCOME-TAX> 13,457
<INCOME-CONTINUING> 22,821
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 22,821
<EPS-BASIC> 1.18
<EPS-DILUTED> 1.12
</TABLE>
