Church & Dwight Co. Inc. (CHD, Financial) filed Quarterly Report for the period ended 2009-03-27.
Church & Dwight Co Inc. is the world's leading producer of sodium bicarbonate (baking soda) a versatile chemical which performs a broad range of functions such as cleaning deodorizing leavening and buffering. The Company specializes in sodium bicarbonate and sodium bicarbonate-based products along with other products which use the same raw materials or technology. They sell their products primarily under the ARM & HAMMER(R) trademark to consumers through supermarkets drug stores and mass merchandisers;and to industrial customers/distributors. Church & Dwight Co. Inc. has a market cap of $3.86 billion; its shares were traded at around $54.98 with a P/E ratio of 19.2 and P/S ratio of 1.6. The dividend yield of Church & Dwight Co. Inc. stocks is 0.6%. Church & Dwight Co. Inc. had an annual average earning growth of 22.9% over the past 10 years. GuruFocus rated Church & Dwight Co. Inc. the business predictability rank of 5-star.
The Company had outstanding total debt of $871.2 million and cash of $280.2 million (of which approximately $41.7 million resides in foreign subsidiaries) at March 27, 2009. Total debt less cash (“net debt”) was $591.0 million at March 27, 2009. This compares to total debt of $856.1 million and cash of $198.0 million, resulting in net debt of $658.1 million at December 31, 2008.
Net Cash Used in Investing Activities – Net cash used in investing activities during the first three months of 2009 was $20.6 million, reflecting $21.3 million of property, plant and equipment expenditures (including $14.7 million for the York County plant, discussed in the following paragraph), partially offset by a $1.3 million payment received on an outstanding note.
On June 5, 2008, the Company announced plans to construct a new laundry detergent manufacturing plant and distribution center in York County, Pennsylvania and to close its existing laundry detergent manufacturing and distribution facility in North Brunswick, New Jersey. The Company anticipates that capital expenditures in connection with construction of the new facility, which is expected to be operational by the end of 2009, will be approximately $151 million, and cash expenditures relating to the closing of the North Brunswick facilities will be approximately $11 million. To build the plant and distribution center, the Company spent approximately $51 million in 2008, and approximately $15 million in the first quarter of 2009, and anticipates spending an additional $85 million in the remainder of 2009. The Company estimates it also will spend approximately $3 million in 2009 and $8 million in 2010 in connection with closing the North Brunswick facility. The costs will be funded using the Company s existing credit facilities and available cash. See Note 16 to the condensed consolidated financial statements included in this report for additional information.
Net Cash Provided by Financing Activities – Net cash provided by financing activities during the first three months of 2009 was $11.7 million. This reflects a net increase in debt of $15 million. An increase in short term borrowings of $29.0 million associated with the Company s accounts receivable securitization facility and increases in international debt of $3.0 million, were partially offset by mandatory payments on the Term Loan of $17.0 million. Payments of cash dividends of $6.3 million were offset partially by proceeds of and tax benefits from stock option exercises of $3.0 million.
The Company had outstanding total debt at March 27, 2009 of $871.2 million, of which $250.0 million or 29% carries a fixed rate of interest. The remaining debt balance is primarily comprised of $586.0 million in term loans under the Company s principal credit facilities, $30.0 million outstanding under a receivables purchase agreement and $5.2 million in international debt. The weighted average interest rate on these borrowings at March 27, 2009, excluding deferred financing costs and commitment fees, was approximately 3.4%.
Read the The complete ReportCHD is in the portfolios of Ron Baron of Baron Funds, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
Church & Dwight Co Inc. is the world's leading producer of sodium bicarbonate (baking soda) a versatile chemical which performs a broad range of functions such as cleaning deodorizing leavening and buffering. The Company specializes in sodium bicarbonate and sodium bicarbonate-based products along with other products which use the same raw materials or technology. They sell their products primarily under the ARM & HAMMER(R) trademark to consumers through supermarkets drug stores and mass merchandisers;and to industrial customers/distributors. Church & Dwight Co. Inc. has a market cap of $3.86 billion; its shares were traded at around $54.98 with a P/E ratio of 19.2 and P/S ratio of 1.6. The dividend yield of Church & Dwight Co. Inc. stocks is 0.6%. Church & Dwight Co. Inc. had an annual average earning growth of 22.9% over the past 10 years. GuruFocus rated Church & Dwight Co. Inc. the business predictability rank of 5-star.
Highlight of Business Operations:
As of March 27, 2009, the Company had $280.2 million in cash, $85.0 million available through its $115.0 million accounts receivable securitization facility, approximately $96.0 million available under its $100.0 million revolving credit facility and a $250.0 million accordion feature that enables the Company to increase the principal amount of its term loan. To ensure the safety of its cash resources, the Company invests its cash primarily in government agency money market funds.The Company had outstanding total debt of $871.2 million and cash of $280.2 million (of which approximately $41.7 million resides in foreign subsidiaries) at March 27, 2009. Total debt less cash (“net debt”) was $591.0 million at March 27, 2009. This compares to total debt of $856.1 million and cash of $198.0 million, resulting in net debt of $658.1 million at December 31, 2008.
Net Cash Used in Investing Activities – Net cash used in investing activities during the first three months of 2009 was $20.6 million, reflecting $21.3 million of property, plant and equipment expenditures (including $14.7 million for the York County plant, discussed in the following paragraph), partially offset by a $1.3 million payment received on an outstanding note.
On June 5, 2008, the Company announced plans to construct a new laundry detergent manufacturing plant and distribution center in York County, Pennsylvania and to close its existing laundry detergent manufacturing and distribution facility in North Brunswick, New Jersey. The Company anticipates that capital expenditures in connection with construction of the new facility, which is expected to be operational by the end of 2009, will be approximately $151 million, and cash expenditures relating to the closing of the North Brunswick facilities will be approximately $11 million. To build the plant and distribution center, the Company spent approximately $51 million in 2008, and approximately $15 million in the first quarter of 2009, and anticipates spending an additional $85 million in the remainder of 2009. The Company estimates it also will spend approximately $3 million in 2009 and $8 million in 2010 in connection with closing the North Brunswick facility. The costs will be funded using the Company s existing credit facilities and available cash. See Note 16 to the condensed consolidated financial statements included in this report for additional information.
Net Cash Provided by Financing Activities – Net cash provided by financing activities during the first three months of 2009 was $11.7 million. This reflects a net increase in debt of $15 million. An increase in short term borrowings of $29.0 million associated with the Company s accounts receivable securitization facility and increases in international debt of $3.0 million, were partially offset by mandatory payments on the Term Loan of $17.0 million. Payments of cash dividends of $6.3 million were offset partially by proceeds of and tax benefits from stock option exercises of $3.0 million.
The Company had outstanding total debt at March 27, 2009 of $871.2 million, of which $250.0 million or 29% carries a fixed rate of interest. The remaining debt balance is primarily comprised of $586.0 million in term loans under the Company s principal credit facilities, $30.0 million outstanding under a receivables purchase agreement and $5.2 million in international debt. The weighted average interest rate on these borrowings at March 27, 2009, excluding deferred financing costs and commitment fees, was approximately 3.4%.
Read the The complete ReportCHD is in the portfolios of Ron Baron of Baron Funds, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
