SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended June 30, 1996
Commission File No. 1-4582
RALSTON PURINA COMPANY
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(Exact name of registrant as specified in its charter)
MISSOURI 43-0470580
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(State of Incorporation) (I.R.S. Employer
Identification No.)
CHECKERBOARD SQUARE, ST. LOUIS MISSOURI
63164
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(Address of principal executive offices)
(Zip Code)
(314) 982-1000
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(Registrant's telephone number, including area code)
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, and (2) has been subject to such filing requirements for the
past 90 days.
YES: X NO:
Number of shares of Ralston Purina common stock, $.10 par value, outstanding as
of the close of business on August 9, 1996:
105,928,779
PART I - FINANCIAL INFORMATION
RALSTON PURINA COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL INFORMATION
----------------------------------------------------------------
Operating Results
Net earnings for the nine months ended June 30, 1996 were $269.8 million
compared to $220.7 million for the same period in the prior year. Net earnings
for the nine months ended June 30, 1996 included an extraordinary loss on the
early retirement of debt of $2.1 million, after taxes. Included in net earnings
for the nine months ended June 30, 1995, were provisions for battery products
restructuring of $32.3 million, after taxes.
Effective July 22, 1995, the Company sold its Continental Baking Company (CBC)
subsidiary. On May 15, 1995, the Company exchanged each outstanding share of
its Ralston-Continental Baking Group Common Stock (CBG Stock) for shares of its
Ralston-Ralston Purina Group Common Stock, now designated as Ralston Purina
Common Stock (RAL Stock). Pro forma earnings, assuming that each of these
events had occurred on October 1, 1994, and before the charges described in the
preceding paragraph, increased $15.9 million in the current nine months to
$271.9 million, compared to $256.0 million for the same period in 1995.
Earnings per share for the nine months ended June 30, 1996, on this basis, were
$2.57 and $2.43 on a primary and fully-diluted basis, respectively, compared to
$2.39 and $2.26 in the prior year.
The increased earnings for the first nine months of fiscal 1996 are primarily
the result of higher operating profit and a lower income tax rate, partially
offset by currency translation losses related to Mexican and Venezuelan
operations and lower returns on other investments.
For the quarter ended June 30, 1996, net earnings were $82.2 million compared to
$68.2 million for the same quarter in 1995. Exclusive of the previously
mentioned extraordinary item, results in the current quarter were $84.3 million.
Pro forma results in the third quarter of fiscal 1995 were $69.7 million,
exclusive of after-tax restructuring provisions of $4.3 million. Primary and
fully-diluted earnings per share on this basis were $.79 and $.75, respectively,
in the current quarter compared to $.64 and $.61 in the prior year. Earnings
improved $14.6 million on higher operating profit and a lower income tax rate.
Business Segments
Sales for the Pet Products segment increased 3% in the quarter over the prior
year quarter due to higher domestic prices and international volume gains. For
the nine months, sales increased 13% on the inclusion of sales from Golden Cat,
higher pet food volume and higher prices.
Operating profit for the quarter decreased slightly as the positive effect of
price increases and lower advertising and promotion spending were more than
offset by higher pet food ingredient costs. For the nine months, operating
profit increased slightly on the sales increase, nearly offset by higher
ingredient and advertising and promotion costs.
Sales of the Battery Products segment increased slightly in the quarter and nine
months over the same periods in the prior year. Increased year-to-date sales
are primarily the result of higher volume in the Asia Pacific region and higher
alkaline volume and prices and favorable mix in the United States. These gains
were partially offset by decreased sales in Pan America and by lower
rechargeable sales to Original Equipment Manufacturer customers. Additionally,
in the quarter, European sales decreased while sales in Pan Am increased
slightly, reversing the trend of decreasing sales experienced in the first and
second quarters. During the third quarter, Energizer's new alkaline on-battery
tester was introduced in the United States.
Operating profit, excluding restructuring charges, for the quarter increased
significantly on strong performances in Asia and in the United States, partially
offset by the effect of lower rechargeable sales to the OEM market segment.
For the nine months, strong performances in the current quarter were partially
offset by higher systems development costs in the first half of the year.
Margin percentages in Europe and Pan Am improved reflecting the 1995 plant
closings.
During the quarter and nine months ended June 30, 1995, the Company recorded
after tax charges of $4.3 million and $32.3 million, respectively, or $.04 per
share for the quarter and $.32 and $.29 per primary and fully diluted share,
respectively, for the nine months, in connection with the restructuring of its
worldwide carbon zinc battery production capacity.
On a pre-tax basis, charges for restructuring for the nine months were $41.1
million and consisted of termination benefits of $29.8 million, other cash exit
costs of $3.3 million and non-cash charges of $8.0 million, primarily related to
anticipated losses on disposal of land, buildings and machinery and equipment.
During the current nine months, 2 plants were closed and 928 employees were
severed in connection with the restructuring plan. Other activities related to
the restructuring plan during the nine month period were as follows:
(millions)
Reserve balance at September 30, 1995 $ 43.9
Cash exit costs incurred during the nine months (20.2)
Increase due to translation .3
Reserve balance at June 30, 1996 $ 24.0
Sales of the soy protein products business increased 8% in the quarter and nine
months on strong volume in food protein products. Operating profit increased on
higher volumes, partially offset by increased business development costs and, in
the current quarter, higher raw material costs.
Sales for international agricultural products increased 29% in the quarter and
24% in the nine months on higher volumes, acquisitions and higher prices in most
world areas related to increased raw material prices. Operating profit
improvements reflect increased volumes, acquisitions and purchases of minority
interests, and one-time management costs in the prior year quarter.
Results of Operations
Cost of products sold as a percentage of sales, exclusive of CBC operations in
the prior year, for the nine months increased from 58.0% in 1995 to 59.3% in the
current year. Improvements in battery and soy protein products were more than
offset by increased percentages in pet and agricultural products. The battery
products' plant closings in 1995 contributed to margin improvements. Pet and
agricultural products were unfavorably impacted by higher grain prices. Cost
percentages in the third quarter were 61.0% and 58.5% of sales in 1996 and 1995,
respectively, reflecting increased raw material and ingredient costs in pet,
agricultural and soy protein products. Price increases were insufficient to
maintain historical margin levels. In addition, sales increases in the lower
margin Agricultural Products segment negatively impacted Company margins in both
periods.
Comparisons in this paragraph exclude the results of the sold CBC operations in
the prior year costs. Selling, general and administrative expenses were 17.2%
and 17.8% of sales for 1996 and 1995 nine month periods, respectively. The
decrease in 1996 was primarily due to 1995 spending on cost reduction programs.
Advertising and promotion expense for those periods was 10.8% and 10.6% of
sales, respectively, on increases in pet products. For the current quarter,
advertising and promotion was 10.0% of sales, reflecting reduced spending in the
quarter by Pet Products. Other income/ expense, net, was unfavorable by $17.4
million for the nine months on higher foreign currency translation and exchange
losses, primarily in Mexico and Venezuela, and a lower return on other
investments.
Income taxes include federal, state and foreign taxes and were 37.3% of earnings
before income taxes for the nine months ended June 30, 1996, compared to 43.1%
in the prior year. Exclusive of the impact of restructuring provisions, the
prior year tax rate was 41%. Income taxes in the current year are lower due to
the elimination or moderation of operating losses in certain foreign
jurisdictions where valuation allowances had been established for tax benefits
on such losses and due to the realization of certain previously unrecognized net
operating loss carryforwards. The income tax percentage in the prior year was
also influenced by certain restructuring provisions which did not result in tax
benefits due to foreign tax loss situations.
Financial Condition
The Company's primary source of liquidity is cash flow generated from
operations. For the nine months ended June 30, 1996, cash flow from operations
was $327.3 million compared to $366.2 million in the nine months ended June 30,
1995. This decrease in cash flow in the current nine months is primarily due to
changes in working capital, partially offset by higher cash earnings. Current
liabilities exceeded current assets by $18.1 million at June 30, 1996, while
current assets exceeded current liabilities by $21.8 million at September 30,
1995.
Cash flow used for investing activities decreased to $229.2 million in the first
nine months of 1996 from $565.1 million during the same period of fiscal 1995.
Fiscal 1995 included the acquisition of the assets of Golden Cat Corporation and
a Mexican pet food company for $358.0 million.
During the quarter, the Company retired $200.0 million of 9.0% notes dues in
1996 and $40.5 million of 9.5% debentures due in 2016. Additionally, subsequent
to the end of the third quarter on July 2, 1996, the Company retired $27.0
million of 9.375% debentures due in 2016. The retirement of these notes and
debentures was financed with additional short-term borrowings. In March 1996,
the Company filed a shelf registration statement for $400 million principal
amount of debt securities. Financing activities in the prior year quarter
included the issuance of $225 million of 7-7/8% fixed rate long-term debt. Cash
and cash equivalents at June 30, 1996 were $62.3 million compared to $44.3
million at September 30, 1995, an increase of $18.0 million.
On March 29, 1996, the Company announced its intention to separate its
international agricultural animal feeds business in a tax-free spin-off to
shareholders. Completion of the spin-off is expected during 1997 and is
contingent upon a favorable tax ruling from the Internal Revenue Service and
approval by the Ralston Purina Board of Directors.
As of August 6, 1996, approximately 1,439,000 shares remained under the Board of
Directors' authorization for the purchase of up to 3 million shares of RAL
Stock.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits filed with this Report:
(11) Statement, re: Computation of Per Share Earnings.
(27) Financial Data Schedule
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter
for which this report is filed.
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.
RALSTON PURINA COMPANY
----------------------
Registrant
By: James R. Elsesser
Vice President and Chief
Financial Officer
Date: August 14, 1996
EXHIBIT INDEX
- -------------
Exhibits
- --------
EX-11 Computation of Earnings Per Share
EX-27 Financial data schedule for 2nd Quarter 1996
(provided electronically)
i:\sec\10q\3qtr-96.doc
RALSTON PURINA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF EARNINGS
(Dollars in millions except per share data)
<TABLE>
<S> <C> <C>
Quarter Ended Nine Months Ended
June 30, June 30,
1996 1995 1996 1995
---- ---- ---- ----
Net Sales $ 1,485.8 $ 1,859.7 $ 4,582.3 $ 5,603.6
--------- --------- --------- ---------
Costs and Expenses
Cost of products sold 906.3 1,049.3 2,718.4 3,154.6
Selling, general and administrative 258.8 479.3 788.2 1,394.9
Advertising and promotion 148.8 162.4 492.9 481.6
Interest expense 46.2 52.8 145.4 148.5
Provision for restructuring 6.1 41.1
Other (income)/expense, net (1.4) (6.9) 13.0 (4.8)
--------- --------- --------- ---------
1,358.7 1,743.0 4,157.9 5,215.9
--------- --------- --------- ---------
Earnings before Income Taxes,
Equity Earnings and Extraordinary Item 127.1 116.7 424.4 387.7
Income Taxes (45.5) (48.5) (158.5) (167.0)
--------- --------- --------- ---------
Earnings before Equity Earnings
and Extraordinary Item 81.6 68.2 265.9 220.7
Equity Earnings, Net of Taxes 2.7 6.0
--------- --------- --------- ---------
Earnings before Extraordinary Item 84.3 68.2 271.9 220.7
Extraordinary Item-Loss on Early
Retirement of Debt (2.1) (2.1)
--------- --------- --------- ---------
Net Earnings 82.2 68.2 269.8 220.7
Preferred Stock Dividend, Net of Taxes (3.5) (4.8) (10.7) (14.4)
--------- --------- --------- ---------
Earnings Available to Common Shareholders $ 78.7 $ 63.4 $ 259.1 $ 206.3
========= ========= ========= =========
Cash Dividends Declared per RAL Common
Share $ 0.30 $ 0.30 $ 0.90 $ 0.90
========= ========= ========= =========
Earnings Per Share (pro forma in prior
year assuming one class of common stock)
Primary
Earnings before extraordinary item $ 0.79 $ 0.62 $ 2.57 $ 2.02
Extraordinary item (0.02) (0.02)
---------- --------- --------- ---------
Net earnings $ 0.77 $ 0.62 $ 2.55 $ 2.02
========= ========= ========= =========
Fully Diluted
Earnings before extraordinary item $ 0.75 $ 0.59 $ 2.43 $ 1.92
Extraordinary item (0.02) (0.02)
--------- --------- --------- ---------
Net earnings $ 0.73 $ 0.59 $ 2.41 $ 1.92
========= ========= ========= =========
RAL Stock (based on RPG Group earnings
through May 15, 1995 and consolidated
Ralston earnings thereafter):
Primary $ 0.63 $ 2.15
Fully Diluted $ 0.60 $ 2.03
CBG Stock (based on CBG Group earnings
through May 15, 1995):
Primary $ (0.02) $ (0.45)
Fully Diluted $ (0.03) $ (0.45)
See Accompanying Notes to Condensed Financial Statements.
RALSTON PURINA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Condensed)
(Dollars in millions)
June 30, Sept. 30,
1996 1995
Assets --------- ---------
Current Assets
Cash and cash equivalents $ 62.3 $ 44.3
Receivables, less allowance for doubtful
accounts of $36.5 and $34.3, respectively 796.1 801.4
Inventories
Raw materials and supplies 234.4 209.1
Work in process 129.1 111.4
Finished products 473.5 445.7
Other current assets 146.8 151.1
--------- ---------
Total Current Assets 1,842.2 1,763.0
--------- ---------
Investments and Other Assets 1,454.2 1,453.3
--------- ---------
Property at Cost 2,764.9 2,606.0
Accumulated depreciation 1,349.8 1,255.1
--------- ---------
1,415.1 1,350.9
--------- ---------
Total $ 4,711.5 $ 4,567.2
========= =========
Liabilities and Shareholders Equity
Current Liabilities
Current maturities of long-term debt $ 125.7 $ 303.2
Notes payable 859.4 503.2
Accounts payable 380.2 400.5
Other current liabilities 495.0 534.3
--------- ---------
Total Current Liabilities 1,860.3 1,741.2
--------- ---------
Long-Term Debt 1,446.0 1,602.1
--------- ---------
Deferred Income Taxes 55.9 53.6
--------- ---------
Other Liabilities 509.8 479.3
--------- ---------
Redeemable Preferred Stock 327.0 348.7
--------- ---------
Unearned ESOP Compensation (121.8) (151.9)
--------- ---------
Shareholders Equity
Preferred stock
Common stock 11.5 11.5
Capital in excess of par value 195.5 169.6
Retained earnings 1,248.7 1,089.7
Cumulative translation adjustment (70.6) (50.3)
Common stock in treasury, at cost (478.1) (481.7)
Unearned portion of restricted stock (4.4) (5.3)
Value of common stock held in Grantor Trust (268.3) (239.3)
--------- ---------
Total Shareholders Equity 634.3 494.2
--------- ---------
Total $ 4,711.5 $ 4,567.2
========= =========
See Accompanying Notes to Condensed Financial Statements.
RALSTON PURINA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Condensed)
(Dollars in millions)
Nine Months Ended
June 30,
1996 1995
Cash Flow from Operations --------- ---------
Net earnings $ 269.8 $ 220.7
Extraordinary item 2.1
Non-cash items included in income 186.5 216.5
Changes in assets and liabilities
used in operations (131.3) (85.1)
Other, net 0.2 14.1
--------- ---------
Net cash flow from operations 327.3 366.2
--------- ---------
Cash Flow from Investing Activities
Acquisition of businesses (25.1) (358.0)
Property additions, net (203.8) (189.9)
Other, net (0.3) (17.2)
--------- ---------
Net cash provided (used) by investing activities (229.2) (565.1)
--------- ---------
Cash Flow from Financing Activities
Net cash flow provided (used) by debt 63.4 281.8
Dividends paid (114.6) (121.9)
Other, net (26.5) (7.4)
--------- ---------
Net cash provided (used) by financing activities (77.7) 152.5
--------- ---------
Effect of Exchange Rate Changes on Cash (2.4) (5.7)
--------- ---------
Net Increase (Decrease) in Cash and
Cash Equivalents 18.0 (52.1)
Cash and Cash Equivalents, Beginning of Period 44.3 126.0
--------- ---------
Cash and Cash Equivalents, End of Period $ 62.3 $ 73.9
========= =========
See Accompanying Notes to Condensed Financial Statements.
RALSTON PURINA COMPANY AND SUBSIDIARIES
NOTES TO CONDENSED FINANCIAL STATEMENTS
JUNE 30, 1996
(Dollars in millions except per share data)
Note 1 - The accompanying unaudited financial statements have been
prepared in accordance with the instructions for Form 10-Q and do not
include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In
the opinion of management, all adjustments considered necessary for a
fair presentation have been included. Operating results for any
quarter are not necessarily indicative of the results for any other
quarter or for the full year. These statements should be read in
conjunction with the financial statements and notes thereto included in
the Ralston Purina Company (the Company) Annual Report to Shareholders
for the year ended September 30, 1995.
Note 2 - Primary earnings per share are based on the average number of
shares outstanding during the period, excluding 4,201,000 and
4,110,000 shares of RAL Stock held by Ralston's Grantor Trust at June
30, 1996 and 1995, respectively. Fully diluted earnings per share are
based on the average number of shares used for the primary earnings per
share calculation, adjusted for the dilutive effect of convertible
preferred stock, stock options, convertible debentures and compensation
awards, when the effects of inclusion of such securities does not
result in anti-dilution. The shares used in earnings per share
computations were as follows:
(in millions)
Quarter Quarter Nine Months Nine Months
June 30, June 30, June 30, June 30,
1996 1995 1996 1995
------- -------- --------- ---------
Primary 101.8 101.9 101.8 101.9
Fully Diluted 110.5 112.5 110.5 112.5
(Pro forma in prior year
assuming one class of
common stock)
Primary
RAL Stock 101.0 100.4
CBG Stock 20.6 20.6
Fully Diluted
RAL Stock 111.6 111.0
CBG Stock 22.4 22.4 *
* Due to anti-dilution for the nine months ended June 30, 1995, fully
diluted earnings per share as reported on the statement of earnings is
revised to exclude anti-dilutive securities from the computation.
Note 3 - As of June 30, 1996, there were 101,791,000 shares of RAL
Stock outstanding, exclusive of 8,696,000 shares held in treasury and
4,201,000 Grantor Trust shares. At September 30, 1995, there were
101,721,000 shares of RAL Stock outstanding, exclusive of 8,831,000
RAL Stock shares held in treasury and 4,135,000 RAL Stock shares held
by the Grantor Trust.
Note 4 - Other (income)/expense, net for nine months consists of the
following:
June 30, June 30,
1996 1995
--------- ---------
Net translation and exchange loss $19.2 $9.8
Investment income (6.5) (6.4)
Miscellaneous (income)/expense 0.3 (8.2)
--------- ---------
$13.0 ($4.8)
========= =========
Note 5 - Investments and Other Assets consists of the following:
June 30, Sept. 30,
1996 1995
--------- ---------
Goodwill $509.0 $519.6
Other intangible assets 265.9 286.9
Investments in affiliated companies 295.1 295.6
Deferred charges and other assets 384.2 351.2
--------- ---------
$1,454.2 $1,453.3
========= =========
Note 6 - An extraordinary loss was recognized in the current quarter in
connection with the retirement of $40.5 of 9.5% debentures.
Note 7 - During the quarter and nine months ended June 30, 1995, the
Company recorded charges of $4.3, after taxes, and $32.3, after taxes,
respectively, or $.04 per primary and fully diluted share for the
quarter and $.32 and $.29 per share, respectively, for the nine months,
in connection with its restructuring of its worldwide carbon zinc
battery production capacity.
On a pre-tax basis, charges for restructuring for the nine months were
$41.1 and consisted of termination benefits of $29.8, other cash exit
costs of $3.3 and non-cash charges of $8.0, primarily related to
anticipated losses on disposal of land, buildings and machinery and
equipment.
During the current quarter and nine months, 350 and 928 employees,
respectively, were severed in connection with the restructuring plan.
One plant was closed during the current quarter and two plants were
closed during the nine months. Cash exit costs incurred in the current
quarter and nine months related to the restructuring plan were $8.2
and $20.2, respectively.
Note 8 - During the third quarter of 1995, the Company purchased the
assets of Golden Cat Corporation and the assets of a Mexican pet food
company.
Note 9 - On May 15, 1995, in the CBG Stock Exchange, the Company
exchanged each outstanding share of Ralston-Continental Baking Group
Common Stock (CBG Stock), a class of common stock intended to reflect
separately the performance of the Company's fresh bakery products
business (the CBG Group), for .0886 shares of Ralston-Ralston Purina
Group Common Stock, which was intended to reflect separately the
performance of the Company's other businesses (the RPG Group).
Ralston-Ralston Purina Group Common Stock has now been redesignated as
Ralston Purina Common Stock (RAL Stock).
Note 10 - Effective July 22, 1995, the Company sold Continental Baking
Company (CBC) to Interstate Bakeries Corporation (IBC) and its wholly
owned subsidiary, Interstate Brands Corporation, for $220 in cash and
16,923,077 shares of common stock of IBC (the IBC Stock). The
Company's earnings and cash flows reflect the operations of CBC through
July 22, 1995.
The following pro forma consolidated statement of earnings reflects
the results of operations of the Company for the quarter and nine
months ended June 30, 1995 as if the sale of CBC and the CBG Stock
Exchange had occurred as of October 1, 1994. Such statement has been
prepared by adjusting the historical statement for the effects of
revenues, expenses, assets and liabilities and the recapitalization
which might have occurred had the sale of CBC and the CBG Stock
Exchange been effected as of October 1, 1994.
This pro forma financial statement may not necessarily reflect the
consolidated results of operations that would have existed had the sale
of CBC and the CBG Stock Exchange occurred as of the date specified.
PRO FORMA CONSOLIDATED STATEMENT OF EARNINGS
(Dollars in millions except per share data)
Quarter Nine Months
Ended Ended
June 30, June 30,
1995 1995
-------- --------
Net Sales (a) $1,368.9 $4,163.5
-------- --------
Costs and Expenses
Cost of products sold (a) 800.3 2,416.4
Selling, general and administrative (a) 263.9 741.2
Advertising and promotion (a) 149.4 441.3
Interest expense (b) 50.1 140.4
Provision for restructuring (a) 6.1 41.1
Other (income)/expense, net (a) (6.9) (4.4)
-------- --------
1,262.9 3,776.0
-------- --------
Earnings before Income Taxes
and Equity Earnings 106.0 387.5
Income Taxes (c) (44.2) (167.0)
-------- --------
Earnings before Equity Earnings 61.8 220.5
Equity Earnings, Net of Taxes (d) 3.6 3.2
-------- --------
Net Earnings $ 65.4 $ 223.7
======== ========
Earnings per Share (e):
Primary $ 0.60 $ 2.07
Fully Diluted $ 0.57 $ 1.97
Average Shares Outstanding Used
in Earnings per Share Computation (e):
Primary 101.9 101.9
Fully Diluted (f) 111.3 111.2
(a) Excludes results of operations for CBC.
(b) Reflects reduction of interest expense at an average rate of 6.75%
assuming debt repayment of $160 by the Company from a portion of the
sale proceeds.
(c) Reflects the applicable federal and state statutory tax rates for the
pro forma adjustments.
(d) Reflects the Company's 46% share of IBC pro forma earnings.
(e) Reflects exchange of CBG Stock for 1.8 million shares of RAL Stock.
(f) Reflects conversion of Redeemable Preferred Stock allocated to CBC
ESOP participants.
RALSTON PURINA COMPANY Exhibit 11
COMPUTATION OF EARNINGS PER SHARE (PRO FORMA
IN PRIOR YEAR ASSUMING ONE CLASS OF COMMON STOCK)
(in millions except per share data)
Nine Months Ended
June 30,
1996 1995
PRO FORMA EARNINGS PER COMMON SHARE OUTSTANDING ---------- -----------
Earnings before extraordinary item $271.9 $220.7
Dividend on Series A ESOP convertible
preferred stock, net of tax (10.7) (14.4)
---------- -----------
261.2 206.3
Extraordinary item (2.1)
---------- -----------
Earnings available to common shareholders $259.1 $206.3
========== ===========
Weighted average shares - primary
earnings per share calculation 101.8 * 101.9 *
========== ===========
Earnings per common share outstanding
Earnings before extraordinary item $2.57 $2.02
Extraordinary item (0.02)
---------- -----------
Net earnings $2.55 $2.02
========== ===========
PRO FORMA EARNINGS PER SHARE ASSUMING FULL DILUTION
Earnings before extraordinary item $271.9 $220.7
Adjustments to earnings to reflect assumed
ESOP preferred stock conversion (3.3) (4.6)
---------- -----------
268.6 216.1
Extraordinary item (2.1) 0.0
---------- -----------
Net earnings for fully diluted
earnings per share calculation $266.5 $216.1
========== ===========
Weighted average number of common shares outstanding 101.8 * 101.9 *
Convertible preferred stock 6.8 9.4
Dilutive effect of stock options 1.6 1.0
Dilutive effect of deferred compensation awards 0.3 0.2
---------- -----------
Weighted average shares - fully diluted
earnings per share calculation 110.5 112.5
========== ===========
Earnings per share assuming full dilution
Earnings before extraordinary item $2.43 $1.92
Extraordinary item (0.02)
---------- -----------
Net earnings $2.41 $1.92
========== ===========
* Excludes 4,201,000 and 4,110,000 shares held in Grantor Trust at
June 30, 1996 and 1995, respectively.
RALSTON PURINA COMPANY Exhibit 11
COMPUTATION OF EARNINGS PER SHARE FOR RAL STOCK *
(in millions except per share data)
Nine Months Ended
June 30,
1995
EARNINGS PER COMMON SHARE OUTSTANDING ----------
Net earnings for RPG Group $228.7
Dividend on Series A ESOP convertible
preferred stock, net of tax (13.2)
----------
Earnings after preferred stock dividend $215.5
==========
Weighted average shares - primary
earnings per share calculation 100.4 **
==========
Earnings per common share outstanding $2.15
==========
EARNINGS PER SHARE ASSUMING FULL DILUTION
Net earnings for RPG Group $228.7
Adjustments to net earnings to reflect assumed
ESOP preferred stock conversion (3.7)
----------
Net earnings for fully diluted
earnings per share calculation $225.0
==========
Weighted average number of common shares outstanding 100.4 **
Convertible preferred stock 9.4
Dilutive effect of stock options 1.0
Dilutive effect of deferred compensation awards 0.2
----------
Weighted average shares - fully diluted
earnings per share calculation 111.0
==========
Earnings per share assuming full dilution $2.03
==========
* Prior to May 15, 1995, RAL Stock reflected operations of the RPG Group
only.
** Excludes 4,110,000 shares held in Grantor Trust at June 30, 1995.
RALSTON PURINA COMPANY Exhibit 11
COMPUTATION OF EARNINGS PER SHARE FOR CBG STOCK
(in millions except per share data)
34 Weeks Ended
May 15,
1995
LOSS PER COMMON SHARE OUTSTANDING ------------
Net loss for CBG Group ($15.5)
Dividend on Series A ESOP convertible
preferred stock, net of tax (1.2)
----------
Loss after preferred stock dividend ($16.7)
==========
Weighted average number of shares outstanding 20.6
Shares issuable with respect to RPG Group's
retained interest in the CBG Group 16.7
----------
Weighted average shares - primary
earnings per share calculation 37.3
==========
Loss per common share outstanding ($0.45)
==========
LOSS PER SHARE ASSUMING FULL DILUTION
Net loss for CBG Group ($15.5)
Adjustments to net loss to reflect assumed
ESOP preferred stock conversion (1.8)
----------
Net loss for fully diluted
earnings per share calculation ($17.3)
==========
Weighted average number of common shares outstanding 20.6
Shares issuable with respect to RPG Group's
retained interest in the CBG Group 16.7
Convertible preferred stock 1.7
Dilutive effect of deferred compensation awards 0.1
----------
Weighted average shares - fully diluted
earnings per share calculation 39.1
==========
Loss per share assuming full dilution ($0.44)*
==========
* Due to anti-dilution as computed above for the 34 weeks ended May 15, 1995, fully
diluted earnings per share as reported on the statement of earnings is revised to
exclude anti-dilutive securities from the computation.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE JUNE 30, 1996 RALSTON PURINA COMPANY BALANCE SHEET AND STATEMENT
OF EARNINGS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> JUN-30-1996
<CASH> 62,300
<SECURITIES> 0
<RECEIVABLES> 832,600
<ALLOWANCES> 36,500
<INVENTORY> 837,000
<CURRENT-ASSETS> 1,842,200
<PP&E> 2,764,900
<DEPRECIATION> 1,349,800
<TOTAL-ASSETS> 4,711,500
<CURRENT-LIABILITIES> 1,860,300
<BONDS> 1,446,000
<COMMON> 11,500
327,000
0
<OTHER-SE> 622,800
<TOTAL-LIABILITY-AND-EQUITY> 4,711,500
<SALES> 4,582,300
<TOTAL-REVENUES> 4,582,300
<CGS> 2,718,400
<TOTAL-COSTS> 2,718,400
<OTHER-EXPENSES> 1,294,100<F1>
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 145,400
<INCOME-PRETAX> 424,400
<INCOME-TAX> 158,500
<INCOME-CONTINUING> 271,900
<DISCONTINUED> 0
<EXTRAORDINARY> 2,100
<CHANGES> 0
<NET-INCOME> 269,800
<EPS-PRIMARY> 2.55
<EPS-DILUTED> 2.41
<FN>
<F1>LOSS-PROVISION INCLUDED IN OTHER-EXPENSE ABOVE.
</FN>
</TABLE>
