-----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, Vpsdp/Pcidb5np9KJZHuCPxjhy83USppWebSx2P4yYf4d/IJzXRMn2DDGWpBcDlq N2DTCJ2GkHkUIw1Gq6TGKA== 0000105770-95-000026.txt : 19951023 0000105770-95-000026.hdr.sgml : 19951023 ACCESSION NUMBER: 0000105770-95-000026 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19951020 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: WEST CO INC CENTRAL INDEX KEY: 0000105770 STANDARD INDUSTRIAL CLASSIFICATION: FABRICATED RUBBER PRODUCTS, NEC [3060] IRS NUMBER: 231210010 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-08036 FILM NUMBER: 95582899 BUSINESS ADDRESS: STREET 1: 101 GORDON DR STREET 2: P O BOX 645 CITY: LIONVILLE STATE: PA ZIP: 19341-0645 BUSINESS PHONE: 6105942900 MAIL ADDRESS: STREET 1: 101 GORDON DRIVE STREET 2: PO BOX 645 CITY: LIONVILLE STATE: PA ZIP: 19341-0645 10-Q/A 1 This report contains pages (including cover page) SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q/A1 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Quarterly Period Ended March 31, 1995 --------------- Commission File Number 1-8036 ------ THE WEST COMPANY, INCORPORATED ----------------------------------------------------------------- (Exact name of registrant as specified in its charter) Pennsylvania 23-1210010 ------------------------------------- ---------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 101 Gordon Drive, PO Box 645, Lionville, PA 19341-0645 ------------------------------------- ---------------------- (Address of principal executive (Zip Code) offices) Registrant's telephone number, including area code 610-594-2900 N/A --------------------------------------------------------------------------- Former name, former address and former fiscal year, if changed since last report. 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, and (2) has been subject to such filing requirements for the past 90 days. Yes X. No. ------ ------- March 31, 1995 --16,525,750 --------------------------------------------------------------------------- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Page 2 Index Form 10-Q for the Quarter Ended March 31, 1995 Page Part I - Financial Information Item 1. Financial Statements Consolidated Statements of Income for the Three Months ended March 31, 1995 and March 31, 1994 3 Condensed Consolidated Balance Sheets as of March 31, 1995 and December 31, 1994 4 Condensed Consolidated Statements of Cash Flows for the Three Months ended March 31, 1995 and March 31, 1994 5 Notes to Consolidated Financial Statements 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8 Part II - Other Information Item 1. Legal Proceedings 10 Item 6. Exhibits and reports on Form 8-K 10 SIGNATURES 11 Index to Exhibits F-1 Page 3 Part I - Financial Information Item 1. Financial Statements The West Company, Incorporated and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data)
Quarter Ended March 31, 1995 March 31, 1994 --------------- -------------- Net sales $95,200 100 % $87,100 100 % Cost of goods sold 63,100 66 58,200 67 ---------------------------------------------------------------------------------------------------- Gross profit 32,100 34 28,900 33 Selling, general and administrative expenses 16,800 18 15,500 18 Other expense, net - - 700 1 ---------------------------------------------------------------------------------------------------- Operating profit 15,300 16 12,700 14 Interest expense 1,400 2 600 1 ---------------------------------------------------------------------------------------------------- Income before income taxes and minority interests 13,900 14 12,100 13 Provision for income taxes 5,100 5 4,700 5 Minority interests 200 - 500 - ---------------------------------------------------------------------------------------------------- Income from consolidated operations 8,600 9 % 6,900 8 % Equity in net income (loss) of affiliated companies (400) 100 ---------------------------------------------------------------------------------------------------- Net income $ 8,200 $ 7,000 ---------------------------------------------------------------------------------------------------- Net income per share $ .50 $ .44 ---------------------------------------------------------------------------------------------------- Average shares outstanding 16,491 15,956 Page 4 See accompanying notes to interim financial statements.
Page 5 The West Company, Incorporated and Subsidiaries CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
ASSETS March 31, 1995 Dec. 31, 1994 -------------- ------------- Current assets: Cash, including equivalents $ 28,900 $ 27,200 Accounts receivable 59,000 57,800 Inventories 46,200 38,100 Other current assets 13,500 13,600 ---------------------------------------------------------------------------- Total current assets 147,600 136,700 ---------------------------------------------------------------------------- Net property, plant and equipment 200,300 192,200 Investments in affiliated companies 21,900 21,900 Intangibles and other assets 51,800 46,600 ---------------------------------------------------------------------------- Total Assets $421,600 $ 397,400 ---------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 7,800 $ 19,200 Notes payable 5,000 2,700 Accounts payable 17,000 19,300 Other current liabilities 29,100 45,100 ---------------------------------------------------------------------------- Total current liabilities 58,900 86,300 ---------------------------------------------------------------------------- Long-term debt, excluding current portion 72,000 35,900 Deferred income taxes 24,400 24,400 Other long-term liabilities 24,500 21,600 Minority interests 2,300 1,900 Shareholders' equity 239,500 227,300 ---------------------------------------------------------------------------- Total Liabilities and Shareholders' Equity $421,600 $397,400 ---------------------------------------------------------------------------- See accompanying notes to interim financial statements.
The West Company Incorporated and Subsidiaries CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)
Quarter Ended March 31, 1995 March 31, 1994 ---------------- ------------------- Cash flows from operating activities: Net income, plus net non-cash items $ 16,000 $ 13,100 Changes in assets and liabilities (9,000) (6,100) ----------------------------------------------------------------------------------------- Net cash provided by operating activities 7,000 7,000 ----------------------------------------------------------------------------------------- Cash flows from investing activities: Property, plant and equipment acquired (6,900) (4,400) Proceeds from sale of assets 100 100 Payment for acquisition, net of cash acquired (16,500) (2,900) ----------------------------------------------------------------------------------------- Net cash used in investing activities (23,300) (7,200) ----------------------------------------------------------------------------------------- Cash flows from financing activities: New long-term debt 27,800 - Repayment of long-term debt (11,200) (900) Notes payable, net 1,800 3,600 Dividend payments (2,000) (1,800) Sale of common stock, net 800 900 ----------------------------------------------------------------------------------------- Net cash provided by financing activities 17,200 1,800 ----------------------------------------------------------------------------------------- Effect of exchange rates on cash 800 100 ----------------------------------------------------------------------------------------- Net increase in cash, including equivalents $ 1,700 $ 1,700 ----------------------------------------------------------------------------------------- See accompanying notes to interim financial statements.
Page 8 The West Company, Incorporated and Subsidiaries Notes to Consolidated Financial Statements Interim results are based on the Company's accounts without audit. The interim consolidated financial statements for the quarter ended March 31, 1995 should be read in conjunction with the consolidated financial statements and notes thereto of The West Company, Incorporated appearing in the Company's 1994 Annual Report on Form 10-K. 1. Interim Period Accounting Policy --------------------------------- In the opinion of management, the unaudited Condensed Consolidated Balance Sheet as of March 31, 1995 and the related unaudited Consolidated Statement of Income and the unaudited Condensed Consolidated Statement of Cash Flows for the three month period then ended and for the comparative periods in 1994 contain all adjustments, consisting only of normal recurring accruals, necessary to present fairly the financial position as of March 31, 1995 and the results of operations and cash flows for the respective periods. The results of operations for any interim period are not necessarily indicative of results for the full year. Operating Expenses ------------------ To better relate costs to benefits received or activity in an interim period, certain operating expenses have been annualized for interim reporting purposes. Such expenses include depreciation due to use of the half year convention, certain employee benefit costs, annual quantity discounts, and advertising. Income Taxes ------------- The tax rate used for interim periods is the estimated annual effective consolidated tax rate, based on current estimates of full year results, except that taxes applicable to operating results in Brazil are recorded on a basis discrete to the period and prior year adjustments, if any, are recorded as identified. 2. Inventories at March 31, 1995 and December 31, 1994 are summarized as follows: Audited (in thousands) 1995 1994 -------- -------- Finished goods $ 19,900 $ 17,000 Work in process 8,600 5,300 Raw materials and supplies 17,700 15,800 -------- -------- $ 46,200 $ 38,100 -------- -------- -------- -------- Page 9 The West Company, Incorporated and Subsidiaries Notes to Consolidated Financial Statements (Continued) 3. The carrying value of property, plant and equipment is determined as follows: Audited (in thousands) 1995 1994 -------- -------- Property, plant and equipment $ 385,100 $ 366,800 Less accumulated depreciation 184,800 174,600 -------- -------- Net property, plant and equipment$ 200,300 $ 192,200 -------- -------- -------- -------- 4. Common stock issued at March 31, 1995 was 16,844,735 shares, of which 318,985 shares were held in treasury. Dividends of $.12 per common share were paid in the first quarter of 1995 and a dividend of $.12 per share payable to holders of record on April 19, 1995 was declared on March 7, 1995. 5. The Company has accrued the estimated cost of environmental compliance expenses related to soil or ground water contamination at current and former manufacturing facilities. The ultimate cost to be incurred by the Company and the timing of such payments cannot be fully determined. However, based on consultants' estimates of the costs of remediation in accordance with applicable regulatory requirements, the Company believes the accrued liability is sufficient to cover the future costs of required remedial actions, which will be carried out over the next two to three years. The Company has not anticipated any possible recovery from insurance or other sources. 6. Subsequent event: On April 27, 1995 the Company announced that it completed its acquisition of PACO Pharmaceutical Services, Inc., a public company traded over-the-counter. The merger follows the completion of a cash tender offer for PACO common stock at $12.25 per share. PACO will become a wholly-owned subsidiary of the Company, and will be consolidated beginning in the second quarter of 1995. The following table presents selected financial information for the year ended December 31, 1994 on a proforma basis assuming the acquisition of 100% of PACO Pharmaceuticals Services, Inc. and subsidiaries had occured on January 1, 1994 and $1.4 million of savings related to synergies of the companies had been realized. Net sales $429,900 Income before taxes 43,500 Income from consolidated operations 28,100 Net income 28,600 Net income per share 1.78 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. THE WEST COMPANY, INCORPORATED ----------------------------------- (Registrant) October 20, 1995 R. J. Land -------------------- ----------------------------------- Date (Signature) R. J. Land Sr. Vice President, Finance and Administration (Chief Financial Officer) October 20 1995 A. M. Papso -------------------- ----------------------------------- Date (Signature) A. M. Papso Vice President and Corporate Controller (Chief Accounting Officer) -----END PRIVACY-ENHANCED MESSAGE-----