Replies to post #310 on Monument Circle Acquisition Corp (MON)

[DewDiligence]

Slide sets from MON’s Investor Day webcast today:

http://www.monsanto.com/investors/Documents/2012/Hugh_Grant_Biennial_Investor_Event_11-10-11.pdf (Hugh Grant, CEO, 17 slides)

http://www.monsanto.com/investors/Documents/2012/Kerry_Preete_Biennial_Investor_Event_11-10-11.pdf (Kerry Preete, SVP Strategy, 14 slides)

http://www.monsanto.com/investors/Documents/2012/Brett_Begemann_Biennial_Investor_Event_11-10-11.pdf (Brent Begemann, Chief Commercial Officer, 18 slides)

http://www.monsanto.com/investors/Documents/2012/Pierre_Courduroux_Biennial_Investor_Event_11-10-11.pdf (Pierre Courduroux, CFO, 20 slides)

http://www.monsanto.com/investors/Documents/2012/Robb_Fraley_Biennial_Investor_Event_11-10-11.pdf (Robb Fraley, CTO, 34 slides)

[DewDiligence]

Increased EPS guidance for FY1Q12 is $0.10-0.15:

#msg-69689756

[DewDiligence]

MON Reports FY1Q12 Results—Guides to High-End of Prior EPS Range for Full Fiscal Year

[This PR, issued last Thursday, caused a 7% pop in the share price last week and pushed the share price to within a hair of its highest level in 2 years. FY1Q12 non-GAAP EPS of 0.23 exceeded MON’s guidance of $0.15-0.20; MON also raised the lower bound of the FY2012 non-GAAP EPS guidance so the range is now #3.39-3.44 (vs the prior range of $3.34-3.44 previously). MON also issued its annual pipeline update, reported in a separate PR.

Financial CC slides at http://www.monsanto.com/investors/Documents/2012/FINAL-%20Q112%20Financial%20Slides%2001-05-12.pdf ; please see separate post for MON’s annual pipeline update and CC slides.]

http://www.sec.gov/Archives/edgar/data/1110783/000111078312000003/q1earnings.htm

›5-Jan-2012 8:00 am ET

LATIN AMERICA SEED GROWTH LIFTS MONSANTO TO STRONGER-THAN-EXPECTED FIRST QUARTER AS COMPANY GUIDES TO HIGH END OF FISCAL YEAR EPS OUTLOOK

ST. LOUIS, Jan. 5, 2012 – Monsanto Company (NYSE: MON) delivered above-estimate results for the first quarter of its fiscal year 2012 and pointed to the high end of its previously reported earnings per share guidance for the year on the strength of its seed business. The company also previewed a strong U.S. order book and announced 14 phase advancements across its breeding, biotechnology, and chemistry and agronomic research and development platforms, representing a record number of advancements for its annual pipeline update.




"We've seen a very strong start to the year, with real growth in Latin America and early orders in the United States that underscore our sustained momentum carrying into 2012," said Hugh Grant , chairman, president and chief executive officer for Monsanto. "We are pleased growers have recognized the value of our products and the benefits they provide on farm. Our pipeline progress continues to be a competitive differentiator, and that's ever more important as we put an even greater focus on delivering yield to growers."

Results of Operations

The company achieved a strong first quarter that reflected the expected structural change in its earnings pattern based on improved sales in the growing Latin America market. Net sales increased 33 percent over the prior year's quarter to $2.4 billion , with significant gains in corn driven by the Latin America market. Gross profit for the total company increased 33 percent to $1.1 billion , and gross profit as a percent of sales was even with the prior year at 45 percent.

Selling, general and administrative (SG&A) expenses increased to $500 million as a result of inflation and commissions from higher sales. R&D expenses increased to $351 million based in part on investments in breeding facilities to support international and U.S. corn.

The company's first quarter earnings per share (EPS) was $0.23 on an ongoing and as-reported basis. (For a reconciliation of ongoing EPS, see note 1.)

Cash Flow

The strong first quarter was evident in the company's free cash flow, which was $856 million compared to $500 million for the prior year first quarter. The increase reflects growth in net income as well as an increase in customer prepayments ahead of the U.S. selling season. (For a reconciliation of free cash flow, see note 1.)

Net cash provided by operating activities was $1.1 billion , compared to $624 million in the first quarter last year. Net cash required by investing activities for the first quarter of fiscal 2012 was $254 million , compared with a use of $124 million for the year-ago quarter. Net cash required by financing activities was $340 million , even with the prior year's first quarter.

Outlook

The company affirmed its guidance of free cash flow for fiscal year 2012 in the range of $1.3 billion to $1.5 billion , reflecting an investment of $600 to $700 million in capital expenditures. The company expects net cash provided by operating activities to be $2.2 billion to $2.5 billion , and net cash required by investing activities to be approximately $900 million to $1 billion for fiscal year 2012. (For a reconciliation of free cash flow, see note 1.)

The company guided to the high end of its full-year 2012 ongoing EPS mid-teens earnings growth guidance, expecting to achieve $3.39 to $3.44 of ongoing and as-reported EPS. (For a reconciliation of EPS, see note 1.)



The Seeds and Genomics segment consists of the company's global seeds and related traits business.

Sales for Monsanto's Seeds and Genomics segment increased 32 percent in the first quarter to $1.5 billion , reflecting the strength of the Latin America business and some timing benefits from the Australian cotton business.

Corn seed and traits net sales increased 46 percent over last year's quarter to $895 million , driven by volume growth and a mix benefit that came from significant trait expansion in Brazil and Argentina .

Cotton seed and traits net sales increased 73 percent to $194 million based on a timing effect in Australia , where growers' decisions to purchase technology upfront advanced revenues to the first quarter that would traditionally have been expected following harvest based on growers' yields in the fourth quarter of this fiscal year. Higher planted hectares in Australia compared to the prior year also were a contributor.

In soybeans, seed and trait sales were up 7 percent to $242 million . Vegetable sales were $157 million , a decrease from the prior year.

The company noted the pace of its U.S. order book is ahead of the same point in time last year and tracking well with 2012 targets.



The Agricultural Productivity segment consists of the crop protection products including Roundup® and other herbicides, and lawn-and-garden herbicide products. Sales in the first quarter of fiscal 2012 for Monsanto's Agricultural Productivity segment increased 34 percent or $232 million.‹