-----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, PY/WsVbHheyfUWKUoRdsoutYYZUBIc5lLP5OCMUJWklN3SGYO+Z+naQ6XS3Uk8Ak 102HDVOREKdJmzYdUvtV2g== 0000916641-96-000798.txt : 19960924 0000916641-96-000798.hdr.sgml : 19960924 ACCESSION NUMBER: 0000916641-96-000798 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960803 FILED AS OF DATE: 19960923 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: BEST PRODUCTS CO INC CENTRAL INDEX KEY: 0000011821 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-MISC GENERAL MERCHANDISE STORES [5399] IRS NUMBER: 540853592 STATE OF INCORPORATION: VA FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-24178 FILM NUMBER: 96633403 BUSINESS ADDRESS: STREET 1: 1400 BEST PLAZA CITY: RICHMOND STATE: VA ZIP: 23227 BUSINESS PHONE: 8042612000 MAIL ADDRESS: STREET 2: P.O. BOX 26303 CITY: RICHMOND STATE: VA ZIP: 23260-6303 10-Q 1 SECOND QUARTER 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q -------------- [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 3, 1996 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 0-24178 -------------- BEST PRODUCTS CO., INC. (Exact name of registrant as specified in its charter) Virginia 54-0853592 (State or other jurisdiction (I. R. S. Employer Identification No.) of incorporation or organization) 1400 Best Plaza, Richmond, Virginia 23227-1125 (Address of principal executive offices) (Zip Code) (804) 261-2000 (Registrant's telephone number, including area code) 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 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X NO Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. YES X NO Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practical date. As of August 30, 1996, the registrant had 31,019,969 common shares outstanding. Additionally 322,360 common shares will be issued upon the settlement of certain claims which are currently unresolved. BEST PRODUCTS CO., INC. TABLE OF CONTENTS PART I - FINANCIAL INFORMATION ITEM 1: Financial Statements Pages Statements of Operations for the thirteen weeks ended August 3, 1996 and July 29, 1995 3 Statements of Operations for the twenty-six weeks ended August 3, 1996 and July 29, 1995 4 Balance Sheets as of August 3, 1996 and February 3, 1996 5 Statements of Cash Flows for the twenty-six weeks ended August 3, 1996 and July 29, 1995 6 Notes to Financial Statements 7-8 ITEM 2: Management's Discussion and Analysis of Financial Condition and Results of Operations 9-11 PART II - OTHER INFORMATION ITEM 1: Legal Proceedings 12 ITEM 3: Defaults Upon Senior Securities 12 ITEM 4: Submission of Matters to a Vote of Security Holders 12 ITEM 6: Exhibits and Reports on Form 8-K 12 SIGNATURES 13
2 BEST PRODUCTS CO., INC. STATEMENTS OF OPERATIONS (Unaudited)
Thirteen weeks ended ---------------------------------------------------- August 3, July 29, 1996 1995 ------------------ ------------------- (Dollar amounts in thousands, except per share amounts) Net sales $ 267,963 $ 311,841 Cost of goods sold 210,578 237,378 ------------- ------------- Gross margin 57,385 74,463 Selling, general and administrative expenses 76,296 78,648 Depreciation and amortization 5,297 3,634 Interest expense, net 7,313 4,101 ------------- ------------- Loss before income tax benefit (31,521) (11,920) Income tax benefit - 4,769 ------------- ------------- Net loss $ (31,521) $ (7,151) ============= ============== Net loss per common share $ (1.01) $ (0.23) ============= ============== Weighted average common shares outstanding 31,342,329 31,630,029 ============= ==============
See accompanying notes to financial statements. 3 BEST PRODUCTS CO., INC. STATEMENTS OF OPERATIONS (Unaudited)
Twenty-six weeks ended ---------------------------------------------------- August 3, July 29, 1996 1995 ------------------ ------------------- (Dollar amounts in thousands, except per share amounts) Net sales $ 537,754 $ 584,600 Cost of goods sold 422,188 443,545 ------------- ------------- Gross margin 115,566 141,055 Selling, general and administrative expenses 156,073 150,860 Depreciation and amortization 10,800 7,252 Interest expense, net 14,859 8,295 ------------- ------------- Loss before income tax benefit (66,166) (25,352) Income tax benefit - 10,142 ------------- ------------- Net loss $ (66,166) $ (15,210) ============= ============== Net loss per common share $ (2.11) $ (0.48) ============= ============== Weighted average common shares outstanding 31,342,219 31,645,369 ============= ==============
See accompanying notes to financial statements. 4 BEST PRODUCTS CO., INC. BALANCE SHEETS
August 3, February 3, 1996 1996 --------------- -------------- (Dollar amounts in thousands) (Unaudited) Assets Current assets: Cash and cash equivalents $ 1,580 $ 29,003 Merchandise inventories 467,281 481,847 Other current assets 23,244 19,796 ---------------- ---------------- Total current assets 492,105 530,646 Property and equipment, net 168,674 173,239 Other assets, net 9,144 12,755 ---------------- ---------------- Total Assets $ 669,923 $ 716,640 ================ ================ Liabilities and Stockholders' Equity Current liabilities: Short-term borrowings $ 68,662 $ - Current maturities of long-term debt and capital lease obligations 22,820 20,895 Accounts payable 105,167 128,834 Accrued expenses and other 44,236 44,426 Accrued insurance 11,857 10,870 Accrued restructuring charges 16,408 28,400 ---------------- ---------------- Total current liabilities 269,150 233,425 Long-term debt 119,571 129,833 Capital lease obligations 77,500 83,312 Other liabilities 14,634 14,996 ---------------- ---------------- Total Liabilities 480,855 461,566 ---------------- ---------------- Stockholders' Equity Common stock 31,342 31,345 Additional paid-in capital 297,646 297,643 Accumulated deficit (136,740) (70,574) ---------------- ---------------- 192,248 258,414 Loans under Stock Purchase Loan Plan (3,180) (3,340) ---------------- ---------------- Total Stockholders' Equity 189,068 255,074 ---------------- ---------------- Total Liabilities and Stockholders' Equity $ 669,923 $ 716,640 ================ ================
See accompanying notes to financial statements. 5 BEST PRODUCTS CO., INC. STATEMENTS OF CASH FLOWS (Unaudited)
Twenty-six weeks ended --------------------------------- August 3, July 29, 1996 1995 --------------- --------------- (Dollar amounts in thousands) Cash Provided By (Used For): Operating Activities Net loss $ (66,166) $ (15,210) Adjustments to reconcile net loss to net cash used for operating activities: Depreciation and amortization 10,800 7,252 Deferred income taxes - (10,142) Deferred finance cost amortization 2,729 - Changes in operating assets and liabilities: Merchandise inventories 14,566 (10,165) Other current assets 445 (8,800) Accounts payable (23,667) 17,809 Accrued expenses and other (9,034) (13,284) Other, net 3,347 (1,186) ---------------- -------------- Net cash used for operating activities (66,980) (33,726) ---------------- -------------- Investing Activities Purchases of property and equipment (8,633) (14,406) Proceeds from sales of property and equipment 891 109 Other investing activities (780) (4,994) ---------------- -------------- Net cash used for investing activities (8,522) (19,291) ---------------- -------------- Financing Activities Short-term borrowings, net 68,662 - Net payments on capital lease obligations (5,505) (3,683) Payments on long-term debt (8,456) (1,135) Payments for deferred financing costs and other (6,622) - ---------------- -------------- Net cash provided by (used for) financing activities 48,079 (4,818) ---------------- -------------- Decrease in cash and cash equivalents (27,423) (57,835) Cash and cash equivalents at beginning of period 29,003 136,770 ---------------- -------------- Cash and cash equivalents at end of period $ 1,580 $ 78,935 ================ ==============
See accompanying notes to financial statements. 6 BEST PRODUCTS CO., INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) 1. The Company Best Products Co., Inc. (the "Company") is a specialty retailer offering category-dominant assortments of jewelry and home furnishings and operates 169 stores in 23 states. The home furnishings category includes ready-to-assemble furniture, housewares/tabletop, leisure/juvenile/fitness and electronics. 2. Opinion of Management In the opinion of management, the accompanying unaudited financial statements contain all adjustments (consisting of normal recurring accruals and accounting estimates) considered necessary to present fairly the Company's financial position as of August 3, 1996 and February 3, 1996 and its results of operations for the thirteen and twenty-six weeks ended August 3, 1996 and July 29, 1995 and its cash flows for the twenty-six weeks ended August 3, 1996 and July 29, 1995. The accompanying unaudited financial statements are presented in accordance with the requirements of Form 10-Q and consequently do not include all disclosures normally required by generally accepted accounting principles nor those normally disclosed in the annual financial statements; however, management considers the disclosures adequate to make the information presented not misleading. The accompanying financial statements should be read in conjunction with the annual financial statements and notes thereto filed in the Company's annual report on Form 10-K for the fiscal year ended February 3, 1996. 3. Contingencies Due to the continuing decline in sales and earnings and the deterioration of vendor support, the Company is reviewing all options available to it. A filing for relief under chapter 11 of Title 11 of the United States Bankruptcy Code may be imminent. The Company has suspended certain payments to vendors and suppliers and has stopped receiving certain merchandise shipments. The financial statements have been prepared on a going concern basis of accounting which assumes continuity of operations and the realization of assets and liquidation of liabilities in the ordinary course of business. Such financial statements, consequently, do not reflect any adjustments that may result should the Company be unable to continue as a going concern. The continued appropriateness of the Company's use of the going concern basis is dependent upon, among other things, its ability to comply with current financing agreements, its ability to achieve profitable operations as a result of attempts to restructure the business, and its ability to generate sufficient cash from operations to meet its obligations. If the Company is involved in a bankruptcy proceeding, it may sell or otherwise realize proceeds upon disposition of assets and liquidate or settle liabilities for amounts other than those reflected in the financial statements. Further, a plan of reorganization could materially change the amounts currently recorded in the financial statements. The financial statements do not give effect to any adjustment to the value of assets, or amounts and classifications of liabilities that might be necessary as a consequence of these matters. See "MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS". 4. Interim LIFO Estimates Quarterly estimates of the last-in, first-out ("LIFO") provision are based on estimates of year-end inventory levels, the inflation rate, purchases and sales for a fiscal year. 5. Per Share Information Per share amounts have been computed based upon the weighted average shares of common stock currently outstanding. Stock options and warrants issued are not considered for purposes of computing per share amounts since their effect would be anti-dilutive. 6. Seasonality Operating results are subject to significant seasonal fluctuations. Net earnings (loss) of any quarter are seasonally disproportionate to sales since many operating expenses are relatively constant throughout a year. As a consequence, interim results should not be relied upon as necessarily indicative of results for any entire year. 7 BEST PRODUCTS CO., INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) 7. Accrued Restructuring Charges During the fourth quarter of fiscal 1995, the Company decided to close 10 underperforming stores, exit unprofitable merchandise categories and terminate or assign the leases for nine stores previously intended to open during 1996 and 1997. Some of the costs associated with these activities were recorded as accrued restructuring charges, which had a balance of $28.4 million as of February 3, 1996. In addition, a $6.1 million reserve for inventory disposition losses was reflected as a reduction of merchandise inventories as of February 3, 1996. Approximately $1.1 million of the $35.6 million restructuring charge was paid in fiscal year 1995. Amounts applied to accrued restructuring charges and the inventory loss reserve for the first and second quarters of fiscal 1996 include the following:
Charges for Charges for thirteen thirteen Balance at weeks ended weeks ended Balance at February 3, May 4, August 3, August 3, 1996 1996 1996 1996 --------------- --------------- --------------- --------------- (Dollar amounts in thousands) Inventory disposition losses $ 12,000 $ 31 $ 2,690 $ 9,279 Fixed asset disposition costs 8,500 - 3,108 5,392 (primarily non-cash) Settlement of lease obligations 6,600 850 1,620 4,130 Real estate carrying costs 4,800 588 2,523 1,689 Termination benefits 2,050 699 477 874 Other 550 150 - 400 --------------- --------------- --------------- --------------- Total $ 34,500 $ 2,318 $ 10,418 $ 21,764 =============== =============== =============== ===============
8 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS LIQUIDITY AND CAPITAL RESOURCES Due to the continuing decline in sales and earnings and the deterioration of vendor support, the Company is reviewing all options available to it, including the filing for relief under chapter 11 of Title 11 of the United States Bankruptcy Code. The Company has suspended certain payments to vendors and suppliers and has stopped receiving certain merchandise shipments. See "NOTES TO FINANCIAL STATEMENTS - 3. Contingencies". As of August 3, 1996, the Company's cash and cash equivalents were $1.6 million compared to $29.0 million as of February 3, 1996. Net cash used for operating activities was approximately $67.0 million for the twenty-six weeks ended August 3, 1996 compared to a use of $33.7 million for the same period of fiscal 1995. The decrease in cash and the higher use of cash is primarily attributed to the decline in same store sales and margin during the first half of fiscal 1996, the recent deterioration of vendor support, and normal seasonal trends in cash balances and capital expenditures. Seasonality. As a retailer, the Company's business is very seasonal, with approximately 34% of its annual net sales occurring in the nine-week period of November and December. As a result, substantially all of the Company's operating earnings, if any, occur in the fourth fiscal quarter. Similar to many other retailers, the Company's performance is sensitive to the overall U.S. economic cycle and related economic conditions which influence consumer trends and spending patterns. Net earnings (loss) for any quarter are seasonally disproportionate to net sales since many operating expenses are relatively constant throughout the fiscal year. As a consequence, interim results should not be relied upon as necessarily indicative of results for an entire fiscal year. Working Capital Facility. The Company has an agreement for a $300.0 million revolving credit facility (the "1996 Working Capital Facility"). The 1996 Working Capital Facility is used to support general corporate and working capital requirements and to issue import and standby letters of credit. The 1996 Working Capital Facility is scheduled to expire on August 6, 1997 and bears interest at 1.0% over the prime rate or, at the Company's option, 3.0% over the Eurodollar rate. The 1996 Working Capital Facility is secured by a first and exclusive lien on all unencumbered assets of the Company, including inventory and general intangibles. As of August 3, 1996, the Company had outstanding borrowings and letters of credit in the amount of $68.7 million and $71.7 million, respectively. The availability of loans under the 1996 Working Capital Facility is governed by a weekly borrowing base calculation with an effective advance rate of approximately 50% of eligible inventory as defined under the agreement. There is a $100.0 million sublimit for the issuance of letters of credit. Financial covenants include (i) minimum cumulative operating performance as defined in the agreement, (ii) minimum and maximum levels of inventory and (iii) limitations on capital expenditures. Other restrictions include limitations on (i) the amount of indebtedness, (ii) the sale of certain assets, (iii) the opening and closing of stores, (iv) dividends or other distributions of assets to stockholders, (v) the acquisition of capital stock and (vi) the creation of liens on Company assets. As of September 23, 1996, the date of this filing, the Company was in compliance with the above covenants. However, the Company believes it is at risk in the short term of defaulting on certain covenants. Summary. The Company's liquidity has been adversely affected by the continued decline in sales and earnings, and the deterioration of vendor support. The Company believes that cash, cash equivalents and cash provided by operations will not be sufficient to meet the Company's needs for working capital. Although the Company is currently in compliance with the covenants under the 1996 Working Capital Facility, the remaining borrowing capacity under that facility is inadequate to meet the Company's needs for additional cash, and, in any event, the Company expects it will be in default in the near future. The Company is evaluating all options available to it but believes that filing for relief under chapter 11 of Title 11 of the United States Bankruptcy Code may be imminent. 9 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS The following table sets forth the results of operations for the thirteen and twenty-six weeks ended August 3, 1996 and July 29, 1995, expressed in dollars and as a percentage of net sales:
(Unaudited) Thirteen weeks ended Twenty-six weeks ended -------------------------------------------------- ---------------------------------------------- August 3, July 29, August 3, July 29, 1996 1995 1996 1995 ----------------------- ---------------------- ----------------------- ------------------- (Dollar amounts in millions, except per share amounts) Net sales $ 268.0 100.0% $ 311.8 100.0% $ 537.8 100.0% $ 584.6 100.0% Cost of goods sold 210.6 78.6% 237.3 76.1% 422.2 78.5% 443.5 75.9% --------------- ----- --------------- ----- --------------- ----- --------- ----- Gross margin 57.4 21.4% 74.5 23.9% 115.6 21.5% 141.1 24.1% Selling, general and administrative expenses 76.3 28.5% 78.7 25.2% 156.1 29.0% 150.9 25.8% Depreciation and amortization 5.3 2.0% 3.6 1.2% 10.8 2.0% 7.2 1.2% Interest expense, net 7.4 2.7% 4.1 1.3% 14.9 2.8% 8.3 1.4% --------------- ----- --------------- ----- --------------- ----- --------- ----- Loss before income tax benefit (31.6) (11.8)% (11.9) (3.8)% (66.2) (12.3)% (25.3) (4.3)% Income tax benefit - 0.0% 4.8 1.5% - 0.0% 10.1 1.7% --------------- ----- --------------- ----- --------------- ----- --------- ----- Net loss $ (31.6) (11.8)% $ (7.1) (2.3)% $ (66.2) (12.3)% $ (15.2) (2.6)% =============== ===== =============== ===== =============== ===== ========== ===== Net loss per common share $ (1.01) $ (0.23) $ (2.11) $ (0.48) =============== =============== =============== ========= Weighted average common shares outstanding 31,342,329 31,630,029 31,342,219 31,645,369 =============== =============== =============== ==========
Comparison of thirteen and twenty-six weeks ended August 3, 1996 and July 29, 1995 Net sales. Net sales for the thirteen and twenty-six weeks ended August 3, 1996 decreased $43.8 million and $46.8 million, respectively, primarily due to 16.1% and 11.6% decreases in same store sales compared to the same periods of fiscal 1995. The Company attributes most of the decrease in same store sales to a weaker promotional program and competitive market pressures. Gross margin. Gross margin decreased $17.1 million and $25.5 million for the second quarter and first half of fiscal 1996, respectively, compared to the same periods of fiscal 1995. This decrease is primarily due to lower same store sales and lower margin rates experienced in conjunction with the exiting of selected categories of merchandise and a higher percentage of sales occurring at promotional prices. Selling, general and administrative expenses. Selling, general and administrative expenses increased to 28.5% and 29.0% of sales for the second quarter and first half of fiscal 1996, respectively, compared to 25.2% and 25.8% for the same periods of fiscal 1995. The increase is primarily due to lower same store sales and higher expenses associated with 15 new stores that opened in the later part of fiscal 1995. Expenses were reduced by $3.5 million in the second quarter of fiscal 1996 compared to the first quarter of fiscal 1996. 10 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Depreciation and amortization. Depreciation and amortization expense increased $1.7 million for the second quarter and $3.6 million for the first half of fiscal 1996 over the same periods of fiscal 1995. The increases are primarily attributable to depreciation on 15 new stores placed in service in the later part of fiscal 1995. Interest expense, net. Interest expense, net increased $3.3 million for the second quarter and $6.6 million for the first half of fiscal 1996 over the same periods of fiscal 1995. The increase is due primarily to interest expense on short-term borrowings in the first half of fiscal 1996 and deferred financing costs under the Company's 1996 Working Capital Facility. See "--LIQUIDITY AND CAPITAL RESOURCES". Income tax benefit. No current or deferred income tax expense or benefit was recorded for the second quarter and first half of fiscal 1996 due to the uncertainty regarding the ability of the Company to realize pretax income for fiscal 1996. Income tax benefits of $4.8 million and $10.1 million were recognized for the second quarter and first half of fiscal 1995, respectively, in anticipation of the Company earning income for fiscal 1995. Net loss and net loss per share. The Company's net loss for the thirteen weeks ended August 3, 1996 was $31.6 million or $1.01 per share compared to a net loss of $7.1 million or $.23 per share for fiscal 1995. The Company's net loss for the twenty-six weeks ended August 3, 1996 was $66.2 million or $2.11 per share compared to a net loss of $15.2 million or $.48 per share for fiscal 1995. The increased loss is attributed primarily to the decrease in same store sales, lower gross margin rates, and higher interest, depreciation and amortization during the first half of fiscal 1996 compared to the same period of fiscal 1995, and higher selling, general and administrative expenses in the first quarter of fiscal 1996 compared to the first quarter of fiscal 1995. 11 BEST PRODUCTS CO., INC. Part II - Other Information ITEM 1: Legal Proceedings On September 18, 1996, Sharp Electronics filed a complaint in the U.S. District Court for the Eastern District of Virginia (the "Court") seeking reclamation, injunctive and other relief relating to certain products shipped to the Company and for which payment has not been made. On September 20, 1996, the Court ordered the Company to escrow the proceeds from the sale of certain products shipped by Sharp Electronics Corporation to preserve the status quo pending trial, which is scheduled for September 26, 1996. On September 20, 1996, another of the Company's vendors, O'Sullivan Industries, Inc., filed a similar complaint with the court, and on September 23, 1996 the court entered an order similar to that described above. The Company has received reclamation claims from numerous other vendors as well and expects that additional suits will be filed shortly. ITEM 3: Defaults Upon Senior Securities As of September 23, 1996, the date of this filing, the Company was in compliance with the covenants under the 1996 Working Capital Facility. However, the Company believes it is at risk in the short term of defaulting on certain covenants. See "MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - LIQUIDITY AND CAPITAL RESOURCES". ITEM 4: Submission of Matters to a Vote of Security Holders The Annual Meeting of Shareholders was held on August 22, 1996 to elect seven directors to hold office until the next Annual Meeting of Shareholders is held and their successors are elected. The following directors were elected as follows: Votes For Votes Withheld ---------------- ----------------- Daniel H. Levy 27,049,524 172,522 Donald D. Bennett 26,933,533 288,513 Margaret A. McKenna 26,932,638 289,408 Robert E. Northam 26,920,057 301,989 Robert A. O'Connell 26,936,043 286,003 Denis J. Taura 26,917,299 304,747 Marshall B. Wishnack 26,925,996 296,050 ITEM 6: Exhibits and Reports on Form 8-K a. Exhibits None. b. Reports on Form 8-K 1. A Current Report on Form 8-K for June 18, 1996 was filed with the Securities and Exchange Commission on June 18, 1996 to report, under item 5, a discussion of strategic initiatives for 1996. 12 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. BEST PRODUCTS CO., INC. Date: September 23, 1996 /s/ Daniel H. Levy ------------------ Daniel H. Levy Chairman and Chief Executive Officer (Duly authorized officer) September 23, 1996 /s/ Sharyn P. Hunt ------------------ Sharyn P. Hunt Vice President and Controller (Principal accounting officer) 13 EX-27 2 FINANCIAL DATA SCHEDULE
5 1,000 6-MOS FEB-03-1996 AUG-03-1996 1,580 0 8,776 676 467,281 492,105 197,586 28,912 669,923 269,150 197,071 0 0 31,342 157,726 669,923 537,754 537,754 422,188 422,188 0 0 14,859 (66,166) 0 (66,166) 0 0 0 (66,166) (2.11) (2.11)
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