-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ty0+cb1qyPPsgcK2NVtQnERyHzHeU6n1qNaN45avtTAznxphE6fXrrTcDV53aNVJ sT/cuqNUrmQjLBJd8GaGqQ== 0000950116-02-001450.txt : 20020628 0000950116-02-001450.hdr.sgml : 20020628 20020628142002 ACCESSION NUMBER: 0000950116-02-001450 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20011231 FILED AS OF DATE: 20020628 FILER: COMPANY DATA: COMPANY CONFORMED NAME: A C MOORE ARTS & CRAFTS INC CENTRAL INDEX KEY: 0001042809 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-HOBBY, TOY & GAME SHOPS [5945] IRS NUMBER: 223527763 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-23157 FILM NUMBER: 02691038 BUSINESS ADDRESS: STREET 1: 500 UNIVERSITY COURT CITY: BLACKWOOD STATE: NJ ZIP: 08012 BUSINESS PHONE: 6092286700 MAIL ADDRESS: STREET 1: 500 UNIVERSITY COURT CITY: BLACKWOOD STATE: NJ ZIP: 08012 11-K 1 p31918811k.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 11-K (Mark One) /x/ ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED) For the fiscal year ended December 31, 2001 or / / TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED) For the transition period from _____ to _____ Commission file number 000-23157 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: A. C. MOORE ARTS & CRAFTS, INC. 401(K) PLAN B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: A. C. MOORE ARTS & CRAFTS, INC. 500 University Court Blackwood, NJ 08012 A. C. MOORE ARTS & CRAFTS, INC. 401(K) PLAN In 1999, A. C. Moore Arts & Crafts, Inc. (the "Employer" or the "Company") established the A. C. Moore Arts & Crafts, Inc. 401(k) Plan (the "Plan"). The name of the issuer of the securities held pursuant to the Plan and the address of its principal executive office is A. C. Moore Arts & Craft, Inc., 500 University Court, Blackwood, NJ 08012. Contributions Under the Plan. Employees may elect to contribute up to 20 percent of their annual compensation, not to exceed $10,500 for 2001. The Company made a matching contribution of 25 percent of the first 6 percent of the employee compensation contributed as an elective deferral subject to a maximum of $1,500 for 2001. Administration of the Plan. An officer of the Company at its principal executive office administers the Plan. Certain administrative functions may be delegated to employees of the Company. Officers and employees do not receive compensation from the Plan. Custodian of Investments. The assets of the Plan are held in trust and managed by the Plan's trustee. During 2001, the Plan changed trustees from Merrill Lynch Trust Services to Frontier Trust Company. Effective November 15, 2000, BISYS Plan Services began providing record keeping services for the Plan's trustee. Reports to Participating Employees: Each participant in the Plan receives quarterly statements of their accounts each plan year. SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the administrator has duly caused this annual report to be signed on behalf of the Plan by the undersigned hereunto duly authorized. A.C. MOORE ARTS & CRAFTS, INC. 401(K) PLAN Date: June 27, 2002 By: /s/ LESLIE H. GORDON ---------------------------------------- Leslie H. Gordon Administrator CONSENT OF INDEPENDENT AUDITORS We consent to the incorporation by reference in the Registration Statement (Form S-8) and related Prospectus pertaining to A. C. Moore Arts & Crafts, Inc. 401(k) Plan of our report dated June 3, 2002, with respect to the financial statements and supplementary schedules of the A. C. Moore Arts & Crafts, Inc. 401(k) Plan included in this Annual Report (Form 11-K) for the year ended December 31, 2001. /s/ STOCKTON BATES, LLP -------------------------------- Stockton Bates, LLP Philadelphia, Pennsylvania June 3, 2002 A.C. MOORE ARTS & CRAFTS, INC. 401(k) PLAN Financial Statements December 31, 2001 A.C. Moore Arts & Crafts, Inc. 401(k) Plan December 31, 2001 CONTENTS Page ---- Independent Auditors' Report 1 Financial Statements: Statement of Net Assets Available for Benefits as of December 31, 2001 and 2000 2 Statement of Changes in Net Assets Available for Benefits for the Year Ended December 31, 2001 3 Notes to Financial Statements 4 - 8 Supplementary Information: Schedule of Assets Held for Investment Purposes as of December 31, 2001 9 Schedule of Non-Exempt Transactions as of December 31, 2001 10 INDEPENDENT AUDITORS' REPORT To the Trustees A.C. Moore Arts & Crafts, Inc. 401(k) Plan Blackwood, New Jersey We were engaged to audit the financial statements and supplemental schedules of the A.C. Moore Arts & Crafts, Inc. 401(k) Plan (the "Plan") as of December 31, 2001 and 2000, and for the years then ended as listed in the accompanying table of contents. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements and supplemental schedules based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and supplemental schedules are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and supplemental schedules referred to above present fairly, in all material respects, the net assets available for benefits of the A.C. Moore Arts & Crafts, Inc. 401(k) Plan as of December 31, 2001 and 2000, and the changes in net assets available for benefits for the year ended December 31, 2001, in conformity with accounting principles generally accepted in the United States of America. /s/ Stockton Bates, LLP Certified Public Accountants Philadelphia, Pennsylvania June 3, 2002 Page 2 A.C. Moore Arts & Crafts, Inc. 401(k) Plan Statement Of Net Assets Available For Benefits December 31: 2001 2000 - ------------------------------------------------------------------------------- ASSETS: Cash $ 1,483 $ 2,003 - ------------------------------------------------------------------------------- Investments, at fair value: Corporate stocks - common 2,043,514 390,707 Common/collective trusts 508,714 321,032 Registered investment companies 2,443,226 1,608,882 Participant loans 94,427 45,121 - ------------------------------------------------------------------------------- Total investments 5,089,881 2,365,742 Receivables: Accrued income receivable - 1,018 Employer contributions 14,935 10,511 Employees' contributions 84,801 66,821 - ------------------------------------------------------------------------------- 99,736 78,350 - ------------------------------------------------------------------------------- Total assets 5,191,100 2,446,095 LIABILITIES - - - ------------------------------------------------------------------------------- NET ASSETS AVAILABLE FOR BENEFITS $5,191,100 $2,446,095 =============================================================================== See Accompanying Notes Page 3 A.C. Moore Arts & Crafts, Inc. 401(k) Plan Statement Of Changes In Net Assets Available For Benefits Year Ended December 31, 2001: - ------------------------------------------------------------------------------- ADDITIONS: Additions to net assets attributable to: Investment income: Net appreciation in fair value of investments (See Note 4) $1,141,184 - ------------------------------------------------------------------------------- Interest and dividends 97,794 - ------------------------------------------------------------------------------- 1,238,978 Contributions: Employer 209,713 - ------------------------------------------------------------------------------- Participants 1,430,296 - ------------------------------------------------------------------------------- 1,640,009 - ------------------------------------------------------------------------------- Total additions 2,878,987 DEDUCTIONS: Deductions from net assets attributed to: - ------------------------------------------------------------------------------- Benefits paid to participants 132,732 Administrative expenses 1,250 Total deductions 133,982 - ------------------------------------------------------------------------------- Net increase 2,745,005 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 2,446,095 - ------------------------------------------------------------------------------- End of year $5,191,100 =============================================================================== See Accompanying Notes Page 4 A.C. Moore Arts & Crafts, Inc. 401(k) Plan Notes To Financial Statements December 31, 2001 1. DESCRIPTION OF PLAN: The following description of the A.C. Moore Arts & Crafts, Inc. 401(k) Plan provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan's provisions. The A.C. Moore Arts & Crafts, Inc. 401(k) Plan (the Plan) was established in 1999 by A.C. Moore Arts & Crafts, Inc. (the Company) to provide for retirement income and financial protection in the event of death or retirement of covered employees and to provide for the financial protection and compensation of employees in the event of permanent disability. The Plan is subject to the Employee Retirement Income Security Act of 1974 (ERISA). Substantially all administrative expenses are paid directly by the Company. For the period January 1, 2000 to August 31, 2000, all employees of the employer and participating affiliates who are at least 21 years of age and have completed one year of service of at least 1,000 hours were eligible to participate in this Plan, except non-resident aliens, and employees who are members of a union who bargained separately for retirement benefits during negotiations. Effective September 1, 2000, the Plan was amended whereby employees are eligible to participate upon attaining 21 years of age and completing 1/4 year of service (not subject to any minimum hours requirement). Employees will become a participant in the Plan on the entry date coincident with or next following the date they meet the participation requirements. The entry dates for the Plan are the first day of each month. Employees may elect to contribute up to 20 percent of their annual compensation, not to exceed $10,500 for 2001. The Company made a matching contribution of 25 percent of the first 6 percent of the employee compensation contributed as an elective deferral subject to a maximum of $1,500 for 2001. Each participant's account is credited with the participant's and employer's contribution and related plan earnings, transfer contributions and rollovers. Allocations are based on participant earnings or account balances. The benefit to which a participant is entitled is the benefit that can be provided from the participant's account. Effective December 1, 2000, BISYS Plan Services began providing record keeping services for the Plan's Trustee. During 2001, the Plan changed trustees from Merrill Lynch Trust Service to Frontier Trust Company, FSB. The employees' and employer's contributions were deposited in a fund held by the Trustee during the year. Participants may direct the investment of their account balances among alternative investment funds provided under the Plan. Participants are immediately vested in their voluntary contributions and any transfers or rollover plus actual earnings thereon. Vesting in the remainder of their accounts is based on years of continuous service. A participant is 100 percent vested after 3 years of credited service. On termination of service, the normal form of payment to a participant is a lump sum. An optional form of payment is installments payable in cash or in kind, or part cash and part in kind over a period not to exceed the participant's expected lifetime, or the joint future lifetime of the participant and spouse. Page 5 A.C. Moore Arts & Crafts, Inc. 401(k) Plan Notes To Financial Statements December 31, 2001 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basis of Accounting: The accompanying financial statements have been prepared on the accrual basis of accounting. Valuation of Investments: The Plan's investments at December 31, 2001 consist of shares in pooled investment funds and common stock of A.C. Moore Arts & Crafts, Inc. (plan sponsor) held and managed by Frontier Trust Company, FSB. Security transactions in these funds and common stock are recorded on a trade date basis. The value of the funds and common stock fluctuate to reflect the fair market values of the securities held in these funds. Use of Estimates: Management uses estimates and assumptions in preparing financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported revenues and expenses. Actual results could differ from those estimates. Forfeitures: Employer contributions for the years ended December 31, 2001 and 2000 were reduced by $15,451 and $3,965, respectively, from forfeited nonvested accounts. At December 31, 2001 forfeited nonvested accounts totaled $8,716. Loans: Loans are available to all participants in the Plan on a uniform and nondiscriminatory basis. Loans must bear a reasonable rate of interest and be adequately secured. A participant may borrow any amount up to 50% of their vested account balance, subject to a maximum of $50,000 minus their highest outstanding loan amount during the prior twelve months. Repayment of a loan must be made at least quarterly, on an after-tax basis, in level payments of principal and interest, and repaid within five years, except for the purchase of a primary residence. 3. TAX STATUS: The Plan has not yet received a determination letter. However, the plan's administrator and advisors believe that the plan and trust are currently designed and are operating in compliance with the Internal Revenue Code. Therefore, they believe that the plan was qualified and the related trust was tax exempt as of the financial statement date. Page 6 A.C. Moore Arts & Crafts, Inc. 401(k) Plan Notes To Financial Statements December 31, 2001 4. INVESTMENTS: Common Stock:
December 31, 2001: - --------------------------------------------------------------------------------------------------- Number of Shares Market or Units Cost Value - --------------------------------------------------------------------------------------------------- A.C. Moore Arts & Crafts, Inc. 69,271.7 $659,019 $2,043,514* - --------------------------------------------------------------------------------------------------- $659,019 $2,043,514 ===================================================================================================
December 31, 2000: - --------------------------------------------------------------------------------------------------- Number of Shares Market or Units Cost Value - --------------------------------------------------------------------------------------------------- A.C. Moore Arts & Crafts, Inc. 47,722.8 $300,120 $390,707* - --------------------------------------------------------------------------------------------------- $300,120 $390,707 ===================================================================================================
Common/Collective Trusts:
December 31, 2001: - --------------------------------------------------------------------------------------------------- Number of Shares Market or Units Cost Value - --------------------------------------------------------------------------------------------------- ML Ret Preservation Trust 508,713.8 $508,714 $508,714* - --------------------------------------------------------------------------------------------------- $508,714 $508,714 ===================================================================================================
December 31, 2000: - --------------------------------------------------------------------------------------------------- Number of Shares Market or Units Cost Value - --------------------------------------------------------------------------------------------------- ML Ret Preservation Trust 321,031.7 $321,032 $321,032* - --------------------------------------------------------------------------------------------------- $321,032 $321,032 ===================================================================================================
Page 7 A.C. Moore Arts & Crafts, Inc. 401(k) Plan Notes To Financial Statements December 31, 2001 4. INVESTMENTS: (Continued) Registered Investment Companies:
December 31, 2001: - ---------------------------------------------------------------------------------------------------- Number of Shares Market or Units Cost Value - ---------------------------------------------------------------------------------------------------- ML Int'l Equity Fund Class D 16,804.0 $ 160,162 $ 135,776 Mass Investors Growth Stock Fund 49,664.0 818,556 640,169* ML Basic Value Fund Class D 16,226.1 550,653 473,641* ML Core Bond Fund Inter Term Class D 33,288.6 371,809 375,829* ML S&P 500 Index Fund Class A 15,375.5 244,039 216,488 PIMCO Innovation Fund Class A 3,369.5 98,359 76,184 State Street Aurora Fund 16,233.1 407,280 525,139* - ---------------------------------------------------------------------------------------------------- $2,650,858 $2,443,226 ====================================================================================================
December 31, 2000: - --------------------------------------------------------------------------------------------------- Number of Shares Market or Units Cost Value - --------------------------------------------------------------------------------------------------- ML Int'l Equity Fund Class D 9,574.9 $ 100,820 $ 94,600 Mass Investors Growth Stock Fund 29,714.4 565,292 509,305* ML Basic Value Fund Class D 9,067.8 336,691 296,699* ML Core Bond Fund Inter Term Class D 21,034.0 232,817 234,530* ML S&P 500 Index Fund Class A 9,694.1 164,954 156,850* PIMCO Innovation Fund Class A 362.1 23,261 14,908 State Street Aurora Fund 10,812.4 235,319 301,990* - ---------------------------------------------------------------------------------------------------- $1,659,154 $1,608,882 ===================================================================================================
*Investments that represent 5% or more of fair value of the Plan assets. During 2001, the Plan's investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated in value by $1,141,184 as follows: ----------------------------------------------------------- Registered investment companies ($ 183,353) Common stock 1,324,537 ----------------------------------------------------------- $1,141,184 =========================================================== Page 8 A.C. Moore Arts & Crafts, Inc. 401(k) Plan Notes To Financial Statements December 31, 2001 5. PLAN TERMINATION: Although it has not expressed any intent to do so, the Company has the right under the Plan to terminate the Plan subject to the provisions of ERISA. In the event the Plan is terminated, participants will become 100 percent vested in their accounts. 6. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500: A reconciliation of net assets available for benefits as reported on the financial statements to that reported on the Form 5500 follows: December 31: 2001 2000 - ------------------------------------------------------------------------------- Net assets available for benefits per the financial statements $5,191,100 $2,446,095 Receivable employer contributions (14,935) (10,511) Receivable employees' contributions (84,801) (66,821) - ------------------------------------------------------------------------------- NET ASSETS AVAILABLE FOR BENEFITS, PER FORM 5500 $5,091,364 $2,368,763 =============================================================================== A reconciliation of net increase in net assets available for benefits as reported on the financial statements to that reported on Form 5500 follows: Year Ended December 31, 2001: - ------------------------------------------------------------------------------- Net increase in net assets available for benefits per the financial statements $2,745,005 Difference in employer contributions (4,424) Difference in employees' contributions (17,980) - ------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS AVAILABLE FOR BENEFITS, PER FORM 5500 $2,722,601 =============================================================================== The above differences are attributable to the financial statements being reported on the accrual basis of accounting, while certain items on Form 5500 are being reported on the cash basis, namely contributions. In addition, unrealized appreciation (depreciation) and dividend income are combined for Form 5500 reporting purposes. SUPPLEMENTARY INFORMATION A.C. Moore Arts & Crafts, Inc. 401(k) Plan Page 9 Schedule of Assets Held for Investment Purposes December 31, 2001 EI #22-3527763 Plan Number 001 Attached to form 5500, Schedule H, Part IV, (i)
(a) (b & c) (d) (e) Share Units Investment Category Price Cost/Book Value Market Value ------- ------------------- ----- --------------- ------------ CASH EQUIVALENTS 2,958.4 GM ML Retirement Preservation Trust 1.0000 2,959 2,959 505,755.4 ML Retirement Preservation Trust 1.0000 505,755 505,755 1,483.0 Contribution Account 1.0000 1,483 1,483 ------------------------------------ TOTAL CASH EQUIVALENTS 510,197 510,197 ==================================== BOND FUND 557.0 GM ML Bond Fd Intermediate Term Portfolio D 11.2900 6,216 6,289 32,731.6 ML Bond Fd Intermediate Term Portfolio D 11.2900 365,593 369,540 ------------------------------------ TOTAL BOND FUND 371,809 375,829 ==================================== EQUITY FUND 186.2 GM ML Basic Value Fund Cl A 29.1900 6,075 5,436 187.1 GM State Street Research Aurora Fund A 32.3500 5,398 6,051 16,039.9 ML Basic Value Fund Cl D 29.1900 544,578 468,205 16,046.0 State Street Research Aurora Fund A 32.3500 401,882 519,088 ------------------------------------ TOTAL EQUITY FUND 957,933 998,780 ==================================== GROWTH FUND 5.4 GM ML S&P 500 Index Fund Cl A 14.0800 76 75 271.9 GM ML International Equity Fund D 8.0800 2,518 2,197 488.9 GM Massachusetts Investors Growth A 12.8900 7,611 6,302 15,370.2 ML S&P 500 Index Fund Cl A 14.0800 243,963 216,413 16,532.1 ML International Equity Fund D 8.0800 157,644 133,579 49,175.1 Massachusetts Investors Growth A 12.8900 810,945 633,867 3,369.5 PIMCO Innovation Fund A 22.6100 98,359 76,184 ------------------------------------ TOTAL GROWTH FUND 1,321,116 1,068,617 ==================================== (*) QUALIFIED EMPLOYER SECURITIES 69,271.7 A.C. Moore Arts & Craft Stock 29.5000 659,019 2,043,514 ------------------------------------ (*) TOTAL QUALIFIED EMPLOYER SECURITIES 659,019 2,043,514 ==================================== OTHER 94,426.9 Loans 94,427 Low to high interest rate 6.5% - 10.5% Maturity date - December, 2006 ------------------------------------ TOTAL OTHER 94,427 ==================================== ------------------------------------ TOTAL ASSETS 3,820,074 5,091,364 ====================================
A.C. Moore Arts & Crafts, Inc. 401(k) Plan Page 10 Schedule of Non-Exempt Transactions December 31, 2001 EI #22-3527763 Plan Number 001
Relationship to Plan, Identity of Employer or Other Party Involved Party-In-Interest Description of Transactions - ---------------------------------------------------------------------------------------- A.C. Moore Arts & Crafts, Inc. Plan Sponsor Contributions of $100,662 for the payroll period ended March 15, 2001 were deposited May 8, 2001 A.C. Moore Arts & Crafts, Inc. Plan Sponsor Contributions of $4,366 for the payroll period ended March 15, 2001 were deposited July 27, 2001 A.C. Moore Arts & Crafts, Inc. Plan Sponsor Contributions of $24,640 for the payroll period ended November 18, 2001 were deposited December 26, 2001 A.C. Moore Arts & Crafts, Inc. Plan Sponsor Contributions of $24,415 for the payroll period ended November 25, 2001 were deposited December 27, 2001
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